12-18-2013 HUCMMINUTES
Special Meeting — Hutchinson Utilities Commission
Wednesday, December 18, 2013
Called to order at 10:30 a.m.
Members present: President Dwight Bordson; Vice President Anthony Hanson;
Secretary Monty Morrow; Commissioner Craig Lenz; Commissioner Mark Girard;
Attorney Marc Sebora; General Manager Michael Kumm.
Guests: Donna Luhring
The Board discussed the 2014 budget. Vice President Hanson commented the budget
was well put together and very thorough. A motion was made by Commissioner Lenz,
seconded by Vice President Hanson to approve the 2014 budget. Motion was
unanimously carried. (Budget attached.)
Jared Martig presented the boiler and machinery insurance quotes. As HUC has had no
past claims with Zurich, they did not increase the rate from last year. Hartford and
Travelers did visit the power plants, however, chose not to quote due to Zurich's
competitive pricing. After discussion, a motion was made by Vice President Hanson,
seconded by Commissioner Lenz to approve the boiler and machinery insurance quote
of $66,903 by Zurich. Motion was unanimously carried. (Quotes attached.)
Jan Sifferath presented the 2014 health insurance analysis as requested by the Board
at the November 27 regular commission meeting. The analysis covered the differences
between HUC and City of Hutchinson medical plans for 2013/2014 along with plan
options for 2015 and beyond. The Medica quote is currently at a 22% increase. Jan
pointed out that over the last 6 years (including 2014 renewal), HUC averaged a 9.78%
increase compared to a trend of 10.71 % increase.
After further discussion, a motion was made by Commissioner Lenz, seconded by
Commissioner Girard to approve the 2014 health insurance. Motion was unanimously
carried. (Insurance analysis attached.)
President Bordson welcomed Donna Luhring as the future new commissioner being
sworn in at the January 2, 2014 commission meeting.
There being no further business, a motion was made by Commissioner Lenz, seconded
by Vice President Hanson to adjourn the meeting at 10:32 a.m. Motion was
unanimously carried.
n (� Monty Morrow, Secretary
ATTEST:
Dwight'',bordson, President
Boiler and Machinery Insurance Quotes
Budgeted for 2014
Zurich $66,903
Hartford No Quote
Travelers No Quote
Jared Martig
From: Tony Becker [Tony_Becker @AJG.com]
Sent: Thursday, December 12, 2013 2:39 PM
To: Ann Stanton; Jared Martig
Subject: RE: Equipment/Machinery Breakdown
Jared,
Ann referenced Zurich's A +XV Best rating. That is the highest rating that A.M. Best Company gives for
insurance carriers. We don't have any reservations in recommending this carrier. They've been our carrier for
a few years and your account has been profitable for them. They probably don't feel a large increase could be
justified because they haven't paid any losses. Ann is correct in saying that you /we are in a good position with
this carrier.
The rest of the marketplace is looking for increases, so staying put with Zurich is where we want to be. We
have good coverage with Zurich.
If you have more concerns or questions, please let me know. Otherwise, we are waiting for your authorization
to bind coverage for 2014.
Thanks! Tony
1011
Tony Becker I Area Senior Vice Puositlent
Arthur J. Gallagher Risk Management Services
3600 American Blvd. W, Suite 500 Bloomington, MN 55431
www.aogrms.com :Tony Becker @a*g.com
2:952.358.7535 x:952.358.7501
This e -mail may contain information that is confidential. If you have received this e-mail in error, please notify
the sender by return e-mail and delete this message and any attachments.
From: Ann Stanton
Sent: Wednesday, December 11, 2013 1:54 PM
To: 'Jared Martig'
Cc: Tony Becker
Subject: RE: Equipment /Machinery Breakdown
Yes, we are very comfortable with Zurich. They have a A+ XV rating and do a lot of business with Gallagher throughout
the country. They have been very stable and their pricing isn't fluctuating up and down like other carriers do. I think
you are in a good position with them and you have saved money staying with this carrier.
Let me know if you have any additional questions.
Ann Stanton
Account Manager
Arthur .I. (1,111 Whcr
3600 American Blvd. W, Suite 500 1 Bloomington, MN 55431
o:952.358.7505 1 f:952.358.7501
www.aigrms.com
Arthur J. Gallagher Risk Management Services
Jared Martig
From: Ann Stanton [Ann_Stanton @AJG.com]
Sent: Wednesday, November 27, 2013 10:33 AM
To: Jared Martig
Cc: Tony Becker
Subject: FW: Hutchinson Utilities
Hartford Steam Boiler— Declined. Please see below.
Ann Stanton
Account Manager
GAnhur ). (`Aal agher &,, ('().
3600 American Blvd. W, Suite 500 1 Bloomington, MN 55431
0:952.358.7505 I f:952.358.7501
www.aigrms.com
Arthur J. Gallagher Risk Management Services
E-5 ETHICAL
N ('01M PANI'rS
This e -mail may contain information that is confidential. If you have received this e-mail in error, please notify the
sender by return e-mail and delete this message and any attachments.
From: Patti Stephen - Hartford -HSB [mailto:Stephen_Patti @HSB.com]
Sent: Wednesday, November 27, 2013 9:29 AM
To: Ann Stanton
Cc: Miller Laura - Chicago -HSB; Fash Daniel - Chicago -HSB; Delvecchio Rena - Hartford -HSB
Subject: RE: Hutchinson Utilities
Hello Ann,
Per our conversation, even though these are quality, well managed facilities; I'm just not able to get to pricing and
deductible structures that are competitive with the current program.
I do appreciate your bringing the risk to us for consideration, and hope that you keep us in mind for future prospects.
Enjoy your holiday.
Best regards,
Stephen Patti
Senior Production Underwriter
The Hartford Steam Boiler Inspection and insurance Company
Rated A ++ (SUperior) by AA1. Best Company
One State Street
P.O. Box 5024
Hartford, CT 06102 -5024
Telephone: (860) 722 -5462
Fax: (£s€ )i 722 526'3
Stephen Patti(d-)hsb.com
Jared Martig
From: Ann Stanton [Ann_Stanton @AJG.com]
Sent: Wednesday, December 11, 2013 9:30 AM
To: Jared Martig
Cc: Tony Becker
Subject: Equipment /Machinery Breakdown
Hi Jared,
I received a call from Travelers underwriter this morning. He says he has been crunching the numbers and his are
coming in 3 times what Zurich's quote is. Also, he specifically mentioned he was uncomfortable with Generator #1
because it is a Prototype. I've asked him to send me an email declination in case you need it for your City Council
meeting.
Let me know if you have any questions.
I would like to go ahead and bind the Zurich quote if that is agreeable to you. Thanks!
Ann Stanton
Account Manager
G Arthur,i. i.� t1b,,hcr �� CO, fl
3600 American Blvd. W, Suite 500 1 Bloomington, MN 55431
o:952.358.7505 I f:952.358.7501
www.aigrms.com
Arthur J. Gallagher Risk Management Services
v�01,uo S wmsf ETHICAL
C%I�CPMP'ANI FS
This e -mail may contain information that is confidential. If you have received this e-mail in error, please notify the
sender by return e-mail and delete this message and any attachments.
Jared Martig
From: Ann Stanton [Ann_Stanton @AJG.com]
Sent: Wednesday, December 11, 2013 10:21 AM
To: Jared Martig
Subject: Travelers - declined
FYI
Ann Stanton
Account Manager
ArdlUr J, GMbgh r css; Co,
3600 American Blvd. W, Suite 500 1 Bloomington, MN 55431
o:952.358.7505 I f:952.358.7501
www.algrms.com
Arthur J. Gallagher Risk Management Services
E") _ _ " H I CA L
cQ COINIPANIF
This e -mail may contain information that is confidential. If you have received this e-mail in error, please notify the
sender by return e-mail and delete this message and any attachments.
From: Goossens,Greg F [ mailto:GGOOSSEN(d)travelers.com]
Sent: Wednesday, December 11, 2013 9:35 AM
To: Ann Stanton
Cc: Wheeler,Lane
Subject: RE: Please send me Email decline
Ann,
Per our conversation, due to Engineering issues and current terms and conditions as well as rate targets — we are not
able to be competitive on this account.
Thanks for the opportunity and look forward to working with you on another account soon!
Have a Great Day—
Greg Goossens I Travelers Boiler & Machinery
�cr�v €arTt E�z„t�uiik� �ifr�:�r
2730 Voyagieur Dr ( VVoodbUry, vlN 55125
Phone: 651.735.1319' 1 Fax: 65`.73:5.3910
€ goossenCcOtravelers com
From: Ann Stanton [mailto:Ann Stanton@)A]G.com]
Sent: Wednesday, December 11, 2013 9:26 AM
To: Goossens,Greg F
Subject: Please send me Email decline
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