Iowa Communities Assurance Pool Extension
CITY OF DUBUQUE, IOWA
MEMORANDUM
July 13, 2000
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Iowa Communities Assurance Pool Extension
Finance Director Ken TeKippe is recommending that the City enter into a three-year
extension of our membership in the Iowa Communities Assurance Pool, which
covers the period of July 1, 2002 through July 1, 2005.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/dd
Attachment
cc: Barry Lindahl, Corporation Counsel
Tim Moerman, Assistant City Manager
Ken TeKippe, Finance Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
June 30, 2000
TO: Michael C. Van Milligen, City Manager
FROM:
~~ rfl
Ken TeKippe, Finance Director and Pauline Joyce, Administrative Services
Manager
SUBJECT: Iowa Communities Assurance Pool Extension
The purpose of this memorandum is to recommend the City of Dubuque take
advantage of an offer from the Iowa Communities Assurance Pool (ICAP) to
existing members that would extend our coverage for an additional three years
(July 1,2002 through July 1, 2005). Last year we entered into a three year
extension covering July 1, 1999 through July 1, 2002. The new extension would
freeze our contribution rate on $2,000,000 of coverage. The City currently has a
limit of $5,000,000 for all casualty coverages. Our excess coverage above the
$2,000,000 contribution would not be frozen.
Frank O'Connor has prepared the attached memo explaining how the extension
would work in terms of the portion that would be frozen and the excess coverage
that could fluctuate. If our contribution level actually decreases in any given year,
we would pay the lower amount, not the guaranteed amount. In the agreement,
ICAP reserves the right to modify contribution levels based on adverse claim
experience or the lack of loss control activity.
The action step is to forward our recommendation to City Council to authorize the
City Manager to enter into a three year extension of our membership in the Iowa
Communities Assurance Pool which covers the period of July 1, 2002 through
July 1, 2005.
Third & locust
P.O. Box 737
Oubuque,lA 52004.0737
319.557.7440
Fax 319.583.9142
An Independent
Insurance Agent
June 29, 2000
Pauline Joyce
Assistant City Manager
City of Dubuque
50 West 13th Street
Dubuque, IA 52001
Dear Pauline:
Last week when we spoke I mentioned the opportunity that the City has to
extend their affiliation with the Iowa Communities Assurance Pool and have
your casualty coverages extended an additional three years beyond the first
three-year period.
Your first three-year period runs from July 1, 1999 until July 1, 2002. The
extension takes you out an additional three years until July 1, 2005.
The extension certificate is slightly different than the original contribution freeze
in that the amount of coverage which would extend on a frozen basis is up to
$2,000,000. The City currently has a limit of $5,000,000 for all casualty
coverages. To help explain better the amount of your contribution that is frozen,
I enclose a copy of the ICAP prepared member invoice, which for general
liability shows your contribution at $146,941 with the excess contribution of
$23,816. The amount which would be frozen for the extension period is
$146,941. Similarly, the contribution for auto liability, public officials liability
and law enforcement liability is frozen for the first $2,000,000. The aggregate
contribution for all four lines of coverage is $326,385. The amount of
contribution not frozen (that representing excess coverage above $2,000,000) is
$51,884.
I recommend that the City sign the extension agreement because it is a win-win
for the City. For budgeting purposes, you know the outside limit that you will
pay for your casualty coverage and this is at a time when insurance premiums
and self insured programs are seeing tremendous increases in pricing due to a
turn around in the commercial market. On the other side of the coin, if your
contribution level actually decreases in any given year you would pay the lower
amount not the guaranteed amount.
In the agreement, ICAP reserves the right to modify contribution levels based on
adverse claim experience or the lack of loss control activity.
If you have any questions concerning the agreements, please give me a call.
Thank you.
Sincerely,
:tni)&
Frank R. O'Connor, CPCU
ciates Insurance
cc: Ken TeKippe, Finance Director
Enclosures: ICAP Agreement
2000 Member Invoice
Iowa Communities Assurance Pool
5701 GREENDALE ROAD
JOHNSTON, IA 50131
Member Invoice
~
.....--.
Member Name:
Member Address:
City, State, Zip:
Invoice Date:
Anniversary Date:
Dubuque
50 West 13th St.
Dubuque, IA 52001-4865
06/01/2000
07/01/2000
Anniversary
Member #: 3
Covera2e
Limit
Contribution
Current Year Ratin2
General Liability $5,000,000.00 $150,746.00
Excess $23,816.00
Auto Liability $5,000,000.00 $113,147.00
Excess $15,802.00
Wrongful Acts Officials Liability $5,000,000.00 $27,803.00
Excess $4,723.00
Law Enforcement Liability $5,000,000.00 $40,871.00
Excess $7,543.00
Total Casualty Rating $384,451.00
Since your entity elected the three year contribution freeze, you are being billed the lesser of the 1999 contribution
and the current contribution (above).
Actual Contribution
Covera2e
General Liability
Excess
Limit
$5,000,000.00
Contribution
Auto Liability
Excess
$5,000,000.00
$146,941.00
$23,816.00
$113,147.00
$15,802.00
$27,497.00
$4,723.00
$38,800.00
$7,543.00
$378,269.00
$61,443.00
($3,072.00)
$727.00
($36.00)
$0.00
$0.00
$0.00
($74,086.29)
$363,244.71
Wrongful Acts Officials Liability
Excess
Law Enforcement Liability
Excess
Total Casualty Rating
Auto Physical Damage
APD Credit
Property
Property Credit
BoilerlMachinery
Bonds
$5,000,000.00
$5,000,000.00
Less Member Credit
Total Due
Payable on or before: 07/01/2000
"
IOWA COMMUNITIES ASSURANCE POOL
PARAGRAPH 1 OF ARTICLE XI OF THE INTERGOVERNMENTAL CONTRACT IS
AMENDED AS FOLLOWS:
At the request of the City of Dubuque, the Board of Directors of the Iowa CommWIities Assurance Pool agrees
to maintain a level contribution for all casualty coverages with limits not exceeding $2,000,000 WItil, 2005. In
the event the exposure bases are reduced during this agreement, the contribution shall be modified accordingly,
however the contribution modification program that reflects claim experience or loss control activity shall still
apply.
The Member agrees to continue membership in the Iowa CommWlities Assurance Pool for the three year period
mentioned above, to not withdraw or terminate the Intergovernmental Contract at any time during this period,
and to not request or accept any proposals that replace any and all parts of the Intergovernmental Contract,
including any of its coverage agreements.
In Witness whereot: this amendment is executed on the
day of
,20
, by the WIdersigned duly authorized
offices of the Governmental Authority indicated below.
THIS AMENDMENT MODIFIES THE PREVIOUSLY ISSUED AMENDMENT.
Governmental Authority:
Mayo r
By:
Official
Title:
Accepted for the Iowa CommWlities Assurance Pool
By:
Administrator on behalf of all other current and future signatories
Date:
C~~;~ 02) c:j
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