4.2. SR 09-26-1994 - Laserfiche WebLink

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Insurance Renewal September 20, 1994 Page 2 . expenditures which increased over 20 percent. The automobile liability increased due to the increase in the number of vehicles. Part of the increase is also due to a rather large claim the Municipal Utilities incurred several years ago. Because the City of Elk River has been cooperative and timely in working with the League's Loss Control Department and has responded to all of the League's requests regarding insurance issues, the City received a 25 percent premium discount. In addition, the City has contacted the League of various occasions asking for advice and training in helping to decrease the number of employee injuries and the number of claims submitted by the City. Obviously the time spent working with the League on the loss control program has paid off substantially. Had the City not been ranked at the top for cooperation and responsiveness, our premium would have increased an additional 25 percent. . There are two optional quotes listed at the bottom of the first page. The first is for Petro Fund reimbursement and the second is for Open Meeting Law coverage. The Petro reimbursement covers any amount that the Super Fund would not cover if we were to incur clean up costs due to leakage at a tank. The Open Meeting Law coverage will pay certain costs for claims when the Open Meeting Law was not intentionally violated. Dan will provide additional information to the Council on each of these programs at Monday's meeting. Page two gives a quote for excess liability coverage. Dan has recommended that the City Attorney review this item to see which situations would require excess liability coverage. Dan will also provide additional information on this coverage on Monday. WORKERS' COMPENSATION INSURANCE . The City submitted estimated payroll amounts to the League in order to determine the City's 1994-95 workers compensation premium. The estimated premium is $100,914. This includes a premium discount of $10,368. The City's experience modification factor is .89 which is down from .94 last year and down from over 1.04 several years ago. As you can see, the City at this point has not claimed a credit for managed care or a deductible. Currently I am reviewing managed care options which would provide an additional 5 percent ($5,550) credit. This simply means that the employer selects one of three managed care companies to handle all workers compensation claims. Those companies include Medica, Blue Cross/Blue Shield and Group Health. I am suggesting that the City begin a managed care program effective with renewal on October 1. Mork Clinic and several other specialty practices such as physical therapy located in Elk River are covered by the managed care provider. It is highly likely that most of our injuries will occur in the City of Elk River; therefore, we can take advantage of a 5 percent discount without causing any inconvenience to our employees. If the Council authorizes the implementation of a managed care program, employee meetings will be held