Book # 76 10-22-96-3-11-97, 96-233-97-062

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Agenda Section: VT- CITY OF NEW BRIGHTON Report Number: 96-056 REQUEST FOR COUNCIL CONSIDERATION Report Date: March 4 . 1997 ITEM DESCRIPTION: AUTHORIZATION TO CONTINUE GENERAL INSURANCES WITH THE LEAGUE OF MN CITIES INSURANCE TRUST DEPT. HEAD'S APPROVAL: MANAGER'S REVIEW/RECOMMENDATION•/ No comments to supplement this report / � ir Comments attached Explanation: For many years,the City has obtained its general insurances through the League of MN Cities Insurance Trust(LMCIT). The Trust is the dominant insurer for Minnesota communities because of good coverage and reasonable premiums. The City's interests are represented to the Trust by our agent,Youngdahl and Associates. The agent is compensated by an annual fee of $10,000. General insurances consist of property, liability,worker's compensation, and bonds/other. Features of the coverage include: Deductible of$5,000 on general liability Deductible of$10,000 on property Worker's compensation premium has been reduced by 10%because of managed care Worker's compensation benefits continue to be extended to the Council Accident plan for volunteers The next table provides a comparison of premiums for 1996 and 1997. Since the Trust is a self-insured pooling of municipal risks,we receive a dividend when premiums exceed losses. The dividends have become so routine that it is budgeted as a revenue. The dividend for 1996 was close to $70,000. In the future though, dividends are expected to be smaller because the Trust has reduced premiums. Consequently, communities will enjoy the lower costs of insurances throughout the year. Property/Liability Worker's Comp Deductibles Dividends TOTAL 96 Actual $148,600 $110,000 $25,000 ($70,000) $213,600 97 Budget $147,200 $108,000 $20,000 ($45,000) $230,200 Recommendation: To approve the motion to AUTHORIZE CONTINUATION OF GENERAL INSURANCES WITH THE LEAGUE OF MN CITIES INSURANCE TRUST. iirgaret . Egan ance Director/ City Clerk G/Insurance/97/Renewals