3.2. SR 09-12-2005
*Itern 3.2.*
MEMORANDUM
TO: Mayor and City Council
FROM: Lori Johnson, Finance and Administrative Services Director
DATE: September 12, 2005
SUBJECT: Consider Worker's Compensation Insurance Renewal with
League of Minnesota Cities Insurance Trust
TIle rene'\val proposal for tlle \vorkers compensation insurance beginning October 1, 2005,
Ilas been received from the League of1Iinnesota Cities Insurance Tlust (LNICIT). .!\ttached
is a copy of the rene\val notice. Tile premium \vitll credits for a plan identical to last year's '
is $142,708. This is an increase ov'er last year's premium of $117,794. TIle premium is based
on payroll costs and experience. Since there \vere several employees added recently, the
premium has increased to CO\ler tllat additional pay.
The experience modification for tlle rene\val dropped to .80 from .81 last year. TIus is a \rery
good experience modification factor. :LvIuch of tlle credit for tllat goes to tlle city's strong
safety program that is lead by Bluce \Y./ est and the commitment of City employees to that
program.
Currently, tlle t\vo options tllat the City elects for the \vorker's compensation co\rerage are a
managed care program and a deductible. First, tlle managed care program prov"-ides a tlltee
percent credit equal to a credit of $6,252 for next year. Second, tIle policy currently has a
$10,000 deductible. TIle premium credit for continuing that deductible for the rene\val is
$37,501. Based on claims experience for tlle past se\reral years, the City has saved money by
electing tlle $10,000 deductible. Decreasing tlle deductible to $5,000 reduces the credit to
$27,091. If the Council \vould like to reduce dle deductible, tlllS item should be remo\Ted
from the consent agenda.
Action Requested
Tile City Council is asked to consider tlle rene\val of tlle city's \vorkers compensation
insurance rene\val \vitll LI:vICIT for the period beginning October 1, 2005 including electing
tlle managed care program and a $10,000 deductible.
s: \ Council \Lori \ 2005 \ \\1 orkComp Insurance.doc
League of Minnesota Cities Insurance Trust
Group Self-Insured Workers' Compensation Plan
145 University Avenue vVest St. Paul, IVIN 55103-2044 Phone (651)215-4173
AUG :2 4 2005
Notice of Premium Options for Standard Premiums of $150,000-$300,000
ELK RIVER, CITY OF
ELK RIVER UTILITIES, HRA & EDA
13065 ORONO PARKWAY
ELK RIVER MN 55330
Agreement No.: 0200051320
Agreement Period: From: 10/01/2005
To: 10/01/2006
Enclosed is a quotation for workers! compensation deposit premium.
PAYROLL DESCRIPTION
CODE
RATE
ESTIM.A. TED
PAYROLL
DEPOSIT
PREMIUM
SEE ~A,. TT ACHED SCHEDULE FOR DETAILS
Manual Premium
Experience Modification .80
Standard Premium
Deductible Credit 0%
Premium Discount
Net Deposit Premium
260494.
208395.
21924.
186471.
MANAGED CARE CREDIT
Cities that enroll with a state-certified managed care organization(MCO) recei\Te a 3 % premium credit on
their work camp coverage.
Standard
Premimn
208395.
l\1anaged Care
Credit
3%
Net Deposit
Premimn
180219.
OPTIONS
Please indicate below the premium option you wish to select. You may choose only one option and
cannot change options during the agreement period.
1. ___ Regular Premium Option
NET DEPOSIT PREMIUM
186471.
___ or) with 3% Managed Care Credit: 180219.
Ll\1 4514(3/02)
League of l\1innesota Cities Insurance TnIst
Group Self-Insured Workers' Compensation Plan
145 University Avenue West
St. Paul, MN 55103-2044
(651)215-4173
The IICityll Agreement No.: 0200051320
Agreement Period From: 10/01/2005
ELK RIVER, CITY OF To: 10/01/2006
ELK RIVER UTILITIES, HRA & EDA
13065 ORONO PARKWAY
ELK RIVER MN 55330
CONTINUATION SCHEDULE FOR QUOTATION PAGE
REMUNERATION RATE CODE DESCRIPTION EST. PREM
510925. 6.71 5506 STREET CONSTRUCTION 34283.
372240. 2.89 7520 WATERWORKS 10758.
1116725. 3.81 7539 ELECTRIC & STEAM PLANT 42547.
273410. 3.84 7580 SEWAGE DISPOSAL PLANT 10499.
206000. 5.84 7706 FIREFIGHTERS(NOT VOLUNTEER) 12030.
POP 20062. 59.99 7708 FIREFIGHTERS (VOLUNTEER) 12035.
1875440. 3.86 7720 POLICE 72392.
377410. 2.04 8017 OFF SALE LIQUOR STORE 7699.
145400. 5.01 8227 CITY SHOP & YARD 7285.
2028990. .58 8810 CLERICAL OFFICE EMPLOYEES Noe 11768.
194580. 4.57 9015 BUILDINGS-OPER BY OWNER 8892.
180780. 2.42 9016 SKATING RINK OPERATION 4375.
411790. 3.06 9102 PARKS 1'2601.
941270. 1.05 9410 MUNICIPAL EMPLOYEES 9883.
38500. .39 9411 ELECTED OR APPOINTED OFFICIALS 150.
101920. .39 9411 BOARDS AND COMMISSIONS 397.
500000. .58 8810 PUBLIC UTILITIES CLERICAL 2900.
Manual Premium 260494.
Agent: 416021790
00575: ELK RIVER INSURANCE AGCY INC
DBA FIRST NATIONAL INSURANCE
812 MAIN ST
ELK RIVER MN 55330
8/23/2005
LM 4680(8/99)