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MINUTES <br />CITY COUNCIL <br />MARCH 29, 2012 <br />WORKERS' <br />COMPENSATION <br />INSURANCE <br />RENEWAL <br />CALL FOR <br />WORKSHOP - <br />LITTLE <br />CANADA ROAD <br />PROJECT <br />The City Clerk reviewed the City Administrator's report dated March 23, <br />2012 relative to the City's Workers' Compensation Insurance renewal. <br />For the last few years the City has chosen the $10,000 deductible for its <br />Workers' Compensation renewal given its very good claim history. That <br />choice did work against the City the first year when there was an injury <br />that hit most of the deductible amount. The Clerk noted that for the 2012 <br />renewal, the City's premium level now exceeds $25,000; therefore, the <br />City now qualifies for the League of Minnesota Cities Insurance Trust's <br />(LMCIT) Retro Rating Option. There are three Retro Options with <br />minimum and maximum premium levels. The Clerk indicated that based <br />upon the saving and the exposure, the City Administrator is <br />recommending the Retro Option I. From a premium savings standpoint, <br />Retro Option I could save the City $5,572 versus $4,381.90 for the <br />$10,000 deductible option. <br />The Clerk reported that there is some risk to the City associated with long <br />claims development and its impact on future premiums. This would come <br />into play where someone has on -going medical issues as a result of their <br />claim or has a disability factor that causes costs to be incurred in future <br />years versus a claim that closes quickly. However, the City has had very <br />few Workers' Compensation claims and has a good safety program with <br />training in place. <br />Keis asked about the exposure. The Clerk noted that the Retro Option I <br />has a premium range of 71.5% to a maximum of 115% based on claims <br />experience. Again, the City was not eligible for the retrospective rating <br />option until this year, when its Workers' Compensation standard premium <br />level exceeded $25,000. <br />McGraw introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2012 -3 -59 — APPROVING THE 2012 WORKERS' <br />COMPENSATION INSURANCE RENEWAL UTILIZING THE <br />RETRO RATING OPTION I <br />The foregoing resolution was duly seconded by Boss. <br />Ayes (4). <br />Nays (0). Resolution declared adopted. <br />The City Clerk reviewed the City Administrator's report dated March 22, <br />2012 recommending that the Council call for a workshop meeting for <br />Wednesday, April 4, 2012 at 7:00 p.m. to review issues relative to the <br />Little Canada Road project. <br />13 <br />