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CAS . #IC <br />ACCEPT BIDS FOR 1995 INSURANCE PACKAGE <br /> By: Jessie Hart, Fin'ance Officer <br /> <br />Background: <br /> <br />The City AdmiOistrator, Administrative Services Manager, Finance Officer and the City's <br />Insurance Agent !of Record met and reviewed the quotation for property and liability insurances <br />received from B~rkley Risk Services, Inc. for municipal coverage with the League of Minnesota <br />Cities Insurance~Trust. In addition, the 1995 premiums for public employee bond, the boiler <br />policy, and the i~land marine insurance for the civil defense sirens, provided by other carriers, <br />were discussed. <br /> <br />The attached Ingurance Outline, prepared by Michael Hadtrath, the City's Insurance Agent of <br />Record, details the premiums and the related costs associated with each type of coverage. The <br />synopsis is presefated on page 4 of the outline and details the 1994 premium detail and two options <br />for 1995 premitims. The first option is the same as the coverage for 1994, with pption II <br />incorporating higher deductibles for premium savings. The following compares the existing to the <br />two options: <br /> <br />Option <br /> <br /> Each <br />Deductible Occurrence <br />Per Aggregate After Premium Premium <br />0cc~rrence Deductible Deductible Amount Savings <br /> <br />1994 Existing $5,000 $5,000 $1,000 '$94,255 <br />1 $5,000 $5,000 $1,000 $90,859 <br />2 ~ $10,000 $20,000 $1,000 $84,859 <br /> <br /> Note: Workers Compensation is $500 per claim, same as in previous years. <br /> <br />$3,396 < 1994 <br />$6,000 < Opt. <br />$9,396 < 1994 <br /> <br />While the per ocCurrence.exposure is greater with Option II, the City maintains the Self-Insurance <br />Trust Fund whicl5 is where insurance dividends and refunds are recorded. At December 31, 1994, <br />the Self-InsuranCe Trust Fund had a balance of $138,014, before any interest allocation for <br />calendar 1994, which is more than sufficient to cover the added exposure of the higher deductible. <br /> <br />Staff Recommendation: <br /> <br />It is recommended that the City retain insurance coverage with the League of Minnesota Cities <br />Insurance Trust ~tnd related carders utilizing Option II, as detailed on page 4 of the Insurance <br />Outline, for a premium amount of $84,859. <br /> <br />Committee Action: <br /> <br />Motion to recommend Council approve retainage of insurance coverage with the League of <br />Minnesota Cities!Insurance Trust and related carders utilizing Option II, as detailed on page 4 of <br />the Insurance Outline, for a premium amount of $84,859. <br /> <br />Reviewed By: <br /> <br />City Administrat°r <br />Finance Officer ~ <br />Administrative Services Manager <br /> <br />FC: 1/24/95 <br /> <br /> <br />