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<br /> ,. <br /> CITY OF ARDEN HILLS <br /> . MEMORANDUM <br /> DATE: August 18, 1994 <br /> TO: Mayor and City Councilmembers ~ <br /> FROM: Dorothy A. Person, City Administrator <br /> SUBJECT: Sheriff Contract - Insurance Coverage <br /> The Contract Cities group has been reviewing alternatives to our <br /> current insurance coverages (currently through Ramsey County Risk <br /> Management) in order to decrease costs, We currently have <br /> Workers' Compensation through State Fund Mutual ($111,135.00) ; <br /> auto liability through National Indemnity ($24,388.00) ; <br /> Professional liability through Illinois ($22,886.68 with $8,500 <br /> deductible) . <br /> Since our group is a unique employment situation where we as <br /> cities subcontract to County employees, insurance is also seen as <br /> a unique situation. The best alternative identified is through <br /> the Minnesota Counties Insurance Trust, a non-profit self <br /> . insurance pool of County functions which also covers related <br /> groups through Joint Powers Agreements. The administrative <br /> agency is Meadowbrook Insurance. Meadowbrook also provides <br /> inspection, training and other service programs. <br /> The quote provided gives a savings of $45,400, with Workers' <br /> Compensation cost at $75,291.00; Auto $9,152 (including physical <br /> damage to vehicles with $100 deductible for comprehensive and <br /> $250 deductible for collision) and Professional liability <br /> $24,461.00 ($2,500 deductible). <br /> If agreeable, Ramsey County requires a Joint Powers Agreement <br /> with MCIT. In the event that unexpected losses jeopardize the <br /> pool's reserves, the pool could be affected. In fact, however, <br /> the MCIT has provided dividends to its members in 1991 ($2.1 <br /> million) and in 1992 ($2.8 million) . The Contract Cities group <br /> must commit to a 3 year membership which requires an amendment to <br /> the Police service Agreement, accepting responsibility for its <br /> share of any surcharges made by MCIT. <br /> A concern was identified re: an inconsistency with a joint and <br /> several liability in the three year commitment with MCIT. City <br /> Attorney Filla also noted that there was no similar time <br /> commitment in the Law Enforcement Contract. His attached letter <br /> adds language to the proposed amendment which should address this <br /> issue. The City would agree to reimburse the County for its pro <br /> . rata share of any contingent liability during the term of the Law <br /> Enforcement Contract. If there is any termination of the Law <br />