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-~ity of <br /> <br />MEMORANDUM <br /> <br />Item #3.7. <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Mayor & City Council <br /> <br />Lori Johnson, Finance Director <br /> <br />September 11, 2000 <br /> <br />Workers Compensation Insurance Renewal <br /> <br />The League of Minnesota Cities Insurance Trust (LMCIT) has provided a <br />worker's compensation insurance quote to the city for our contract that <br />renews on October 1, 2000. The quote is based on estimated payroll for the <br />contract period and is adjusted at the end of the contract based on actual pay. <br />A copy of the quote is attached for your review. <br /> <br />In the past the city has carried a $5,000 per occurrence deductible on this <br />policy and in return receives a premium credit. This year the premium credit <br />is $13,095. Increasing the deductible to $10,000 would result in an additional <br />premium savings of $4,365. Over the past two contract years, the city has <br />saved approximately $6,000 after paying the deductible costs. <br /> <br />The city also participates in a managed care program for which the city <br />receives a five percent or $4,850 premium credit. The city will continue to <br />contract with Corvel Corporation for managed care services. <br /> <br />Action Requested <br /> <br />The City Council is asked to approve the renewal with LMCIT for worker's <br />compensation insurance for October 1, 2000 to October 1,2001. This contract <br />would include a $5,000 per occurrence deductible. If the council wishes to <br />change the per occurrence deductible, this item may be removed from the <br />consent agenda for council discussion on the deductible amount. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />