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HomeMy WebLinkAbout[05f] ISO ReportST.JOSEPH Fire Board Agenda Item [ FIRE DEFT. MEETING DATE:August 12, 2019 AGENDA ITEM: ISO Report BACKGROUND INFORMATION: ISO is an insurance rating of the city and how they can respond to fires in their town. The lower the number the cheaper the residents and the commercial buildings can get on their insurance. We are at a 5/5X and are close to going to a 4. Lowering our number may entice more people and more businesses to move into St.Joseph. There are a few different things we can do to make these changes, but one of the biggest ones would be to ADD a second pumper. Currently we have 1 pumper and 1 ladder. The report states we need to have at least 2 pumpers and 1 (if not 2) ladder trucks. BUDGET/FISCAL IMPACT: ??? ATTACHMENTS:yes REQUESTED ACTION: Have the Fire Board think at what we need to do to lower our ISO number 5F I SC) 1000 Bishops Gate Blvd.Ste 300 Mt.Laurel,NJ 08054-5404 11.800.444.4554 Opt.2 f1.800.777.3929 June 24,2019 Ms.Judy Weyrens,Administrator Saint Joseph and Saint Joseph FD 75 Callaway Street East PO Box 668 St Joseph,Minnesota,56374 RE:Saint Joseph And Saint Joseph Fd,Stearns County,Minnesota Public Protection Classification:05/5X Effective Date:October 01,2019 Dear Ms.Judy Weyrens, We wish to thank you for your cooperation during our recent Public Protection Classification(PPC) survey.ISO has completed its analysis of the structural fire suppression delivery system provided in your community.The resulting classification is indicated above.As reported in previous correspondence,this is a retrogression from the previous classification. If you would like to know more about your community's PPC classification,or if you would like to learn about the potential effect of proposed changes to your fire suppression delivery system, please call us at the phone number listed below. ISO's Public Protection Classification Program(PPC)plays an important role in the underwriting process at insurance companies.In fact,most U.S.insurers—including the largest ones—use PPC information as part of their decision-making when deciding what business to write,coverage's to offer or prices to charge for personal or commercial property insurance. Each insurance company independently determines the premiums it charges its policyholders.The way an insurer uses ISO's information on public fire protection may depend on several things—the company's fire-loss experience,ratemaking methodology,underwriting guidelines,and its marketing strategy. Through ongoing research and loss experience analysis,we identified additional differentiation in fire loss experience within our PPC program,which resulted in the revised classifications.We based the differing fire loss experience on the fire suppression capabilities of each community.The new classifications will improve the predictive value for insurers while benefiting both commercial and residential property owners.We've published the new classifications as"X"and"Y" --formerly the 9"and"88"portion of the split classification,respectively. For example: A community currently graded as a split 6/9 classification will now be a split 6/6X classification; with the"6X"denoting what was formerly classified as"9." Similarly,a community currently graded as a split 6/88 classification will now be a split 6/6Y classification,the"6Y"denoting what was formerly classified as"88." Communities graded with single"9"or"8B"classifications will remain intact. Properties over 5 road miles from a recognized fire station would receive a class 10. PPC is important to communities and fire departments as well.Communities whose PPC improves may get lower insurance prices.PPC also provides fire departments with a valuable benchmark,and is used by many departments as a valuable tool when planning, budgeting and justifying fire protection improvements. ISO appreciates the high level of cooperation extended by local officials during the entire PPC survey process.The community protection baseline information gathered by ISO is an essential foundation upon which determination of the relative level of fire protection is made using the Fire Suppression Rating Schedule. The classification is a direct result of the information gathered,and is dependent on the resource levels devoted to fire protection in existence at the time of survey. Material changes in those resources that occur after the survey is completed may affect the classification.Although ISO maintains a pro-active process to keep baseline information as current as possible, in the event of changes please call us at 1-800-444-4554,option 2 to expedite the update activity. ISO is the leading supplier of data and analytics for the property/casualty insurance industry. Most insurers use PPC classifications for underwriting and calculating premiums for residential, commercial and industrial properties.The PPC program is not intended to analyze all aspects of a comprehensive structural fire suppression delivery system program. It is not for purposes of determining compliance with any state or local law, nor is it for making loss prevention or life safety recommendations. If you have any questions about your classification, please let us know. Sincerely, Ateez S'ialett Alex Shubert Manager-National Processing Center cc: Lieutenant Kathy Struffert,Communications Supervisor,Stearns County Dispatch Center Mr.Terry Loso,Director,Saint Benedict(College)Water Department Mr.Terry Thene,Public Works Director,St Joseph Water Department Chief Jeff Taufen,Chief,Saint Joseph Fire Department