Laserfiche WebLink
<br /> <br />*Itern 3.2.* <br /> <br />MEMORANDUM <br /> <br />TO: Mayor and City Council <br /> <br />FROM: Lori Johnson, Finance and Administrative Services Director <br /> <br />DATE: September 12, 2005 <br /> <br />SUBJECT: Consider Worker's Compensation Insurance Renewal with <br />League of Minnesota Cities Insurance Trust <br /> <br />TIle rene'\val proposal for tlle \vorkers compensation insurance beginning October 1, 2005, <br />Ilas been received from the League of1Iinnesota Cities Insurance Tlust (LNICIT). .!\ttached <br />is a copy of the rene\val notice. Tile premium \vitll credits for a plan identical to last year's ' <br />is $142,708. This is an increase ov'er last year's premium of $117,794. TIle premium is based <br />on payroll costs and experience. Since there \vere several employees added recently, the <br />premium has increased to CO\ler tllat additional pay. <br /> <br />The experience modification for tlle rene\val dropped to .80 from .81 last year. TIus is a \rery <br />good experience modification factor. :LvIuch of tlle credit for tllat goes to tlle city's strong <br />safety program that is lead by Bluce \Y./ est and the commitment of City employees to that <br />program. <br /> <br />Currently, tlle t\vo options tllat the City elects for the \vorker's compensation co\rerage are a <br />managed care program and a deductible. First, tlle managed care program prov"-ides a tlltee <br />percent credit equal to a credit of $6,252 for next year. Second, tIle policy currently has a <br />$10,000 deductible. TIle premium credit for continuing that deductible for the rene\val is <br />$37,501. Based on claims experience for tlle past se\reral years, the City has saved money by <br />electing tlle $10,000 deductible. Decreasing tlle deductible to $5,000 reduces the credit to <br />$27,091. If the Council \vould like to reduce dle deductible, tlllS item should be remo\Ted <br />from the consent agenda. <br /> <br />Action Requested <br />Tile City Council is asked to consider tlle rene\val of tlle city's \vorkers compensation <br />insurance rene\val \vitll LI:vICIT for the period beginning October 1, 2005 including electing <br />tlle managed care program and a $10,000 deductible. <br /> <br />s: \ Council \Lori \ 2005 \ \\1 orkComp Insurance.doc <br />