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<br /> <br /> <br /> <br /> <br />REQUEST FOR COUNCIL CONSIDERATION <br /> <br />ITEM DESCRIPTION: CONSIDERATION OF A RESOLUTION TO APPOINT A CITY INSURANCE AGENT <br />INTERIM DEPARTMENT HEAD’S APPROVAL: Gina Smith <br />CITY MANAGER’S APPROVAL: <br />No comments to supplement this report ___ Comments attached ___ <br /> <br />Recommendation: To adopt the resolution appointing a city insurance agent. <br /> <br />Legislative History: The City’s property/casualty and workers’ compensation insurance is provided by the <br />League of Minnesota Cities Insurance Trust (LMCIT). The LMCIT is a cooperative self-insurance pool of cities and <br />other entities and is not an insurance company by traditional standards. As a condition of participating in the <br />property/casualty and workers’ compensation programs, members are required to designate an insurance <br />agent. <br /> <br />Explanation: The City’s former Finance Director was licensed to serve as the City’s insurance agent, and is able <br />to continue to serve as agent through June 30, 2020. As this is an uncommon licensure for government finance <br />professionals to hold, the City will now need to engage the services of an external insurance agency, as it did <br />prior to 2015. The City received the following fee proposals. <br /> <br /> Insurance Agency <br />Service Period <br /> <br />Corporate Four <br />Insurance Agency <br />Ross Nesbit Agencies, <br />Inc. <br />Arthur J. Gallagher <br />Risk Management <br />Services <br />July 1 – December 31, 2020 $4,750 $6,000 $10,000 <br />January 1 – December 31, 2021 $9,500 $12,000 $20,000 <br />January 1 – December 31, 2022 $9,500 $12,000 $20,000 <br />January 1 – December 31, 2023 $9,500 $12,000 $20,000 <br /> <br />Corporate Four Insurance Agency was selected due to their expertise and experience in working with the LMCIT <br />since its inception. Account Executives Ron Youngdahl and Carl Bennetsen, formerly affiliated with Northern <br />Capital Insurance Group, also served as the City’s insurance agents for several years through December 31, <br />2014 when the former Finance Director took over this responsibility. <br /> <br />Financial Impact: The cost of this professional service was not included in the 2020 budget but will be offset by <br />personnel budget savings due to the turnover of the Finance Director position. Future years will be included in <br />the Risk Management Internal Service Fund annual budget. <br /> <br /> <br />__________________________ <br />Gina Smith <br />Interim Finance Director <br /> <br />Attachments: Resolution to Appoint a City Insurance Agent <br /> Service Fee Agreement <br />Agenda Section: Consent <br />Report Date: June 17, 2020 <br />Council Meeting Date: June 23, 2020