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MINUTES <br />CITY COUNCIL <br />MARCH 13, 2013 <br />The Administrator explained the three Retro Options the City had to <br />choose from, noting the minimum and maximum premium levels for each <br />option. The Administrator noted that it is staff's position that Retro <br />Option I is the best choice for the City as it limits the high side exposure to <br />1 15% of our estimated premium ($30,857 x 115% = $35,486), and the low <br />side exposure would be at 73.7% ($30,857 x 73.7% = $22,742) of the <br />City's estimated premium. The Administrator pointed out, however, there <br />is some risk in the Retro option associated with long claims development <br />and its impact on future premiums. This would come into play where <br />someone has an on -going medical issue or a disability factor as a result of <br />their claim that causes costs to be incurred in future years versus a claim <br />that closes quickly. <br />The Council discussed in detail the Workers' Comp renewal options as <br />well as the risks associated with the Retro Rating Option. Based on the <br />City's good experience in this area, it was the consensus of the Council to <br />renew at the Retro Rating Option I. The Administrator noted the City has <br />the option to renew at typical deductible options in future years, but any <br />long -term claims that might occur under the Retro Rating Option would <br />continue their impact for a period of time. The Administrator also <br />reviewed the information memo from the LMCIT on WC Retro Rating <br />and the ability to close out claims between retro years 5 and 16. He also <br />estimated that had the City been insured under the Retro Rating Option 1 <br />for the past two years (including the year of the larger claim), the City <br />would have saved approximately $50,000 in costs. <br />Montour introduced the following resolution and moved its adoption: <br />RESOLUTION NO. 2013 -3 -41— APPROVING THE CITY'S <br />WORKERS' COMPENSATION RENEWAL AT RETROSPECTIVE <br />RATES PREMIUM OPTION I AS RECOMMENDED BY THE CITY <br />ADMINISTRATOR <br />The foregoing resolution was duly seconded by McGraw. <br />Ayes (4). <br />Nays (0). Resolution declared adopted. <br />PARK & The City Administrator reviewed the Parks & Recreation Commission's <br />RECREATION request to change the start time of their monthly meetings from 7:30 p.m. <br />COMMISSION to 6:30 p.m. Keis indicated that he had no concern with this request <br />MEETING provided the start time is consistent. <br />START TIME <br />6 <br />