HomeMy WebLinkAbout07.07.2003COUNCIL WORK SESSION
July 7, 2003
3:30 p.m.
Council Chambers
Members present: Mayor Rooff, Welper, Greenwood, Clark, Hurley, Getty, Kincaid.
Members absent: Jordan.
Moved by Getty, seconded by Hurley that the Agenda, as proposed, be approved. Ayes: Five.
Absent: Jordan, Kincaid. Motion carried.
Renewal of the city's liability and property insurance was reviewed. The City Clerk and
Insurance Committee is recommending approval of the renewal of the general and auto liability,
law enforcement, public officials errors and omission and umbrella insurance with St. Paul Fire
& Marine Insurance at a premium of $555,397.00. The renewal includes a $50,000 deductible,
$5 million umbrella and a stop loss of $300,000. It is also the recommendation of the Insurance
Committee and City Clerk that the renewal of property insurance with Travelers at a cost of
$179,299.00 be approved. which includes $25,000 deductible per occurrence, $250,000 stop loss
and $5 million umbrella. The property insurance includes coverage of the building, contents, fine
arts and machinery and equipment at a total value of $129,023,987.
Frank Dowie, agent with PDCM, reported that the Insurance Committee met on June 25, 2003.
The committee discussed the current deductible program with St. Paul, In addition, the
committee reviewed two other options. The Insurance Committee decided that the best option
for the city was $50,000 deductible, 300,000 stop loss and $5 million umbrella. The renewal
premium reflects 9.3 percent increase over last year's premium. The Insurance Committee
approved renewal of property coverage with Travelers, which reflects a 6 percent premium
increase over last year.
Chris Fereday, agent with PDCM, reported that they wanted to utilize all the services of St. Paul
Fire & Marine Insurance. A Risk Management Committee has been put together consisting of
Department Heads and city staff to help identify risk factors and where the experiences are at. In
addition, Asgnot has been made available on-line to the Human Resources Depaitiiient.
Councilperson Kincaid now available at 3:35 p.m.
Mr. Fereday stated they are working with St. Paul and the Police Department to develop a
driver's training program, inviting other government entities. The city will be hosting the
program, at no cost to the city. We are trying to look at ways of expanding control to the city.
Mr. Dowie distributed a copy of the quotes received last year from five companies, with
analytical program comparisons. Mr. Dowie stated that in 2001 the insurance premiums from St.
Paul c ame in at an increase of 27 percent, so PDCM went out into the market and looked at
various options. At that time, the Insurance Committee felt it was beneficial for the city to stay
with St. Paul. Mr. Dowie stated there is a process, and it is their job to go out in the market place
and get the best prices, and they try to get bids every three years.
Mr. Dowie reported that the Insurance Committee is trying to work toward a large deductible and
eventually a SIR program.
Councilperson Hurley asked if the city could build up its deductible wouldn't that dramatically
lower the premiums. Mr. Dowie responded that if the city could build up a reserve of $750,000,
we could go to a SIR Program. The SIR Program could save the city 40 percent in premiums, but
we would have other costs because St. Paul pays all attorney fees and adjusts all our losses. The
city would need to hire a private claim service.
Mr. Fereday stated that we would need to look at all the costs for a SIR Program. A benefit is the
city has had good losses over the past few years and would have saved money. Mr. Fereday
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July 7, 2003
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stated a lot of governmental entities are going back to fully insured programs because many don't
have the budget capacity to fund a SIR Program.
Councilperson Greenwood stated that Polk County and the City of Des Moines are looking at
merging the renewal processes and asked if Black Hawk County and the city could go out for
bids together. Mr. Fereday responded that he is not sure if legally we could do that, but there
could be a potential for savings. The downside is the city would lose control of its insurance
program. Mr. Dowie stated that it is a legal questions, and we need to ask the City Attorney for
an opinion on merging with Black Hawk County because they are two distinct public entities. In
addition, the city would pick up the liability exposure of the Black Hawk County Jail.
With no further business before the council, it was moved by Getty, seconded by Clark that the
meeting be adjourned at 3:56 p.m. Ayes: Six. Absent: Jordan. Motion carried.
Nancy Eckert
City Clerk
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