RES 77185 - Laserfiche WebLink

(- (- 2o A large majority of your Liability premium is based on annual payrolls. Payrolls in most of the classifications used have doubled and tripled in the three year period since the policy was renewed. Although the 1976 annual billing did reflect increased payrolls0 the payrolls are up gener- ally 20% to 30% from 1976. 3. In the Property Section, our 1974 estimated replacement cost of all Municipal buildings was $2,927,000.00. The 1976 anni- versary billing has estimated building values of $3,341,000.00. Our current renewal reflects estimated building values of $3,782,700.00. This, combined with a slight increase in Fire insurance rates, has resulted in a 250% increase in Fire in- surance premiums since 1974 and a,40% increase since 1976. 4, Our prior Special Multi-Peril policy provided limits of $300,000.00 General Bodily Injury, ~100,000.00 General Pro- perty Damage, $100,000.00/$300,000.00 Automobile Bodily Injury Liability and $100,000.00 Automobile Property Damage Liability. Our current renewal policy provides $500,000.00 Combined Single Limit of Liability, regardless of Bodily Injury or Property Damage. This results in a $14,000.00 increase in premium. 5. The 1974 specifications included coverages on eighty Municipal vehicles. The current quotation includes coverages on ninety- seven insured vehicles. Coupled with substantial annual in- creases in Automobile insurance rates, the Automobile insurance has increased four times since 1974. 6. The over-riding reason for these substantial increases is the still pervading atmosphere of social duty of municipalities toward the public. Instead of improving over the past three years, this situation has continued to worsen. Grow conditions, law enforcement practices, recreational activities, fire re- sponse and the issuance of permits have developed as target areas for complete erosion of governmental immunity. Also, the intense political polarization has created an atmosphere of Municipal responsibility for anything and everything that hap- pens within the City Limits of a particular town. We are for= tunate in Pleasanton that the experience in our basic Liability policy has been relatively good. However, several open claims exist in our books on cases that, in our opinion, should never have been considered a Munidipal responsibility- If we were to compare the programs exactly as written three years ago, we would exclude the additional premium for the increased limits of Liability. This would bring our Special Multi-Peril premium down to $158~583o00. This is approximately double the basic package premium paid in 1976. (2)