Memorandum

City of Lawrence

Administrative Services – Risk Management

TO:	David L. Corliss, City Manager
FROM:	Frank S. Reeb, Director
CC:	Cynthia Boecker, Assistant City Manager Diane Stoddard, Assistant City Manager Toni Wheeler, Legal Services Director Jonathan Douglass, Assistant to the City Manager
Date:	May 20, 2009
RE:	Public Entity Insurance Renewal 2009-2010

Late last week I received a renewal quote from our Public Entity insurance provider, Scottsdale Indemnity Company, through our broker, Calvin Eddy & Kappelman.  This umbrella coverage consists of Public Officials, Employment Practices, and Law Enforcement Liability insurance.  Because of the timing of the renewal quote and the May 18, 2009 renewal date, I advised our broker last Friday to bind coverage in order to avoid the situation in which we would be bare of coverage for a short period of time. 

As the table below illustrates, Scottsdale Indemnity Company has agreed to renew our coverage with a slight decrease of $2000 from last year’s premium.  Law Enforcement liability coverage decreased by $2767.  Public Officials coverage increased by $203 and Employment Liability coverage increased by $564.  The total quote ($71,777) is below the amount of our 2009 budget ($92,400) for this expenditure by $20,623.  

Public Entity	2009/2010 Premium	2008/2009 Premium	Dollar Difference	2009 Budget
Public Officials	$21,358	$21,155	$203	$25,400
Employment Liability	$16,668	$16,104	$564	$20,800
Law Enforcement	$33,751	$36,518	$(2767)	$46,200
Total	$71,777	$73,777	$(2000)	$92,400

Staff recommends maintaining insurance coverage with Scottsdale Indemnity Company and recommends authorizing payment to Calvin Eddy Kappelman in the amount of $71,777.