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TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br /> MEMORANDUM <br /> <br />Mayor and City Council <br /> <br />Lori Johnson, Finance Director <br /> <br />September 23, 2002 <br /> <br />Worker's Compensation Insurance Renewal <br /> <br />**Item 3.5. ** <br /> <br />Attached is the proposed renewal from the League of Minnesota Cities Insurance Trust for <br />the city's worker's compensation insurance for the period of October 1, 2002 through <br />September 30, 2003. The quote is based on an experience modification factor of .79, a slight <br />improvement over last year's experience modification factor of .81. This is a very good <br />experience modification factor which reflects well on us, the safety program, and everyone's <br />commitment to employee safety. <br /> <br />As in the past, the city will continue to elect the manage care option and as a result, will <br />receive a $16,262 premium discount. Last year the Council approved increasing the deductible <br />from $5,000 to $10,000. This deductible yields an additional credit of $24,403. Overall, most <br />of the rates increased between 5 - 10%. Those rate increases, along with increased payroll <br />estimates, have caused the total premium to increase approximately 15%. <br /> <br />Action Requested <br />The City Council is asked to approve the worker's compensation insurance renewal with the <br />League of Minnesota Cities Insurance Trust effective October 1, 2002 through September 30, <br />2003, with a 3% managed care credit and a $10,000 deductible. <br /> <br /> <br />