Agenda - Council - 12/11/1990 - Laserfiche WebLink

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Another meeting was held at Ramsey Municipal Building on November 29, 1990 with the same individuals present. During this meeting Mr. Guimont presented the City with a memorandum from his accountants regarding his earnings from self-employment activities for 1990. Mr. Guimont's accountants stated "this information is representation of Jay R. Guimont, accordingly, we do not express an opinion or any other form of assurance on it." The City was also presented with a list of jobs that had to be cancelled due to Mr. Guimont's injury. Mr. Guimont's proposal is to have the City of Ramsey make up the difference of the workers' compensation and his earnings before operating expenses. He is requesting $2,360 per month in addition to the workers' compensation he is already receiving. Tom Milbrath, Loss Control Representative from EBA and Kathy Heyer, Claims Examiner from EBA both strongly suggest that the City of Ramsey not provide its employees any compensation in excess of the workers' compensation rate because of the precedence it could set for future injuries. Both Tom Milbrath and Kathy Heyer stated that the City of Ramsey is doing all it is legally required to do under Minnesota Statute 176.001 which states that "Employees' rights to sue for damages over and above medical and health care benefits and wage loss benefits are to a certain degree limited by the provisions of this chapter, and employers' rights to raise common law defenses such as lack of negligence, contributory negligence on the part of the employee, and other, are curtailed as well." Mr. Guimont has been informed of his rights to appeal the amount of compensation that he is receiving from workers' compensation through the Workers" Compensation Court of Appeals or a third-party liability suit to the company where the injury occurred, and has been receiving regular legal advice. The short-term disability plan that has been explained in case number 5 of this agenda is one alternative to provide Mr. Guimont with financial support without creating unfair precedence for the future. If the City of Ramsey volunteer Fire Department had been participating in the short-term disability plan as in case 5 Mr. Guimont would be receiving $274.67 weekly ($1,190 monthly) in workers' compensation and $800 per month in short-term disability. As the total monthly figure of $1,990 is not taxed (per an agent of Alexander Todd, the insurance company that has given a quote) it is comparable to $2,985 monthly gross or $35,820 annually. 92% (23 of 25) of the fire fighters have provided me with their regular employment annual income. The average annual salary is $27,260. Only seven of the fire fighters earn over $35,820 and would not be totally compensated should an injury occur. These seven have the option of a disability plan outside the City of Ramsey to make up the difference or seriously decide if they want to be a member of the City of Ramsey volunteer Fire Department. New applicants to the department will be informed during their interview and will have a chance to decide at that time. As the short-term disability plan has an elimination of 15 days, Mr. Guimont would have begun receiving disability income effective November 4, 1990. If the City of Ramsey were to provide the income to Mr. Guimont as if we had the short-term disability (and in effect be self-insuring) it would be at an approximate cost of $4,000 for the approximate five month recovery period. Many of the fire fighters have expressed concern should the City decide not to compensate Mr. Guimont and feel that rather than put themselves and their family at risk, they would be forced to resign from the department. If the City of Ramsey were to provide Mr. Guimont with the income (as if short-term disability had been in force) most of the fire fighters have stated they would remain with the department.