After reviewing quotes from three other agencies, Sycamore City Council members voted to renew their contract with the Illinois Municipal League Risk Management Association, IMLRMA.

IMLRMA has served Sycamore’s worker’s compensation and liability insurance coverage needs for the past 10 years and the current agreement expires Dec. 31.

“This year, as in recent years, we were not able to get other private insurers to offer coverage anywhere near the price that IMLRMA has offered us,” said City Manager Bill Nicklas.

Recent changes in state legislation and the city’s claims experience made

renewal with IMLRMA Sycamore’s best option. This year’s IMLRMA renewal rate is 20 percent, which represents a seven percent increase from last year.

The city had the option to participate in the association’s full insurance program for a one-time payment of $385,661.36. It will have a two-percent discount if the city pays before a designated date.

Another option is to choose its Minimum/Maximum program, which rewards cities with lower premiums if they do not register claims above a certain threshold.

“The problem with the Maximum/Minimum program is if you roll the dice and you lose, you could be spending a lot more money,” Nicklas said.

Sycamore’s loss ratios between the years 2003 and 2005 were more than 100 percent, Nicklas said. Those years were the time period underwriters viewed this year.

“Unfortunately, we had some pretty significant claims during that period of time,” Nicklas said. “We have proposed this year to go with IMLRMA and be fully insured rather than participate in the Minimum/Maximum program.”

Jean Tritle, city human resource director, said Sycamore has been working very hard with the safety committee and with the employees to get the city’s loss ratios down. She said the employees are doing a “fantastic job.”

“Unfortunately, that won’t be reflected for the next year or two,” Tritle said. “But I’ll be happy to come before you in two years and tell you that we’ve done a great job and our loss ratios are where they need to be so that either

IMLRMA is going to give us a great deal or we’ll be able to get insurance outside of the IMLRMA.”

Fourth Ward Alderwoman Terry Kessler said, insurance-wise, the city employs some “very high-risk professions,” including police, fire, streets and those with the water department.

“Even though this represents an increase, it really is smaller than it could have been,” Kessler said. “I believe this is the best we could do at this point.”