Agenda - Council - 01/18/1994 - Laserfiche WebLink

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CC: RE: DT: MEMORANDUM Mayor Jim Gilbertson Countilmember Shcila Beyer Coun~member Glen Hardin Coun~lmcmber Ken Pcterson Counr$1member Gerry Zimmerman Jessie i-Iart, Finance Officer Kay McAloney, Personnel Coordinator Ryan $chroeder, City Administrator 1994 Workers' Compensation Insurance January 11, 1994 The City has received the quotation from the League of Minnesota Cities Insurance Trust for the City of~ Ramsey's 1994 Workers' Compensation Insurance. Ramsey's experience modification for Workers' Compensation was reduced from 1.00 to .92 (down from 1.07 to 1.00 for 1993) by Berkley Administrators, the administrator of the League of Mi~nnesota Cities Workers' Compensation Plan. The net deposit premium is $51,877 which_ is approximately 3.97% of estimated total payroll. The final premium will be based on aetual payroll by function for 1994, and the rates per function var), from .54% (clerical) to 10.72% (building maintenance) of payroll. The deductibles and premium reduction being offered for 1994 are: Dedu -etible Per Occurrence Standard Premium Reduction $ Amount % Amount $250 $I,136 2% :$500 $2,272 4% $1,000 $2,840 5% $2,500 $5, I 12 9% $5,000 $6,816 12% $10,000 $9,656 17% Due to the low number of incidences and the return over the last two years to a lower or at 1.00 experience modification, staff felt that the City would best be served by choosing the $2,500 deductible per occurrence at a premium cost of $51,877 less $5,112. This is the same coverag,* as in the past several years. For 1993, we had used a $500 deductible. Reviewing 19.93, actual experience plus that of past years it seems that chances are better we will have aipositive net audited premium with a higher deductible, therefore, the $2,500 for 1994. While we have entered into the 1994 contract to ensure coverage, the deductible could change if that is Council's desire. Absent any concerns in this area, the contract should stand at; it is. L