Agenda Packets - 1995/07/17 - Laserfiche WebLink

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UNAPPR A PPR 11\ F Mounds View City Council Page 9 Regular Meeting June 26, 1995 1 consider having a deductible of $5,000 on medical costs only 2 which would reduce the workers compensation premium by $5, 652 . 3 The City would be responsible for the first $5, 000 of medical 4 expenses for each workers compensation claim. Mr. Clysdale 5 pointed out the total medical expenses incurred for the last 6 five years was $4, 026, or an average of $805. Based on this 7 history of experience, he believed this option would be 8 advantageous. 9 10 Mr. Clysdale further recommended the Council consider 11 increasing the City's deductible on liability and property 12 coverages from $5, 000 to $10, 000 which would produce a savings 13 of $10, 100 or approximately 10% of the premium for those 14 coverages. He reviewed the City changed from a $1, 000 to a 15 $5, 000 deductible in 1988 and since that time, the City has 16 realized a savings of approximately $115, 000 in premium costs. 17 Mr. Clysdale noted the City has only had to pay the full 18 $5, 000 deductible on two occasions and while there is no 19 guarantee the City will continue to have good claim experience 20 in the future, he considered it reasonable to assume the 21 additional risk for a 10% premium discount. 22 23 Mr. Clysdale reminded the Council they received a $19, 000 24 dividend check several months ago and commented this has been 25 an excellent program through the League of Minnesota Cities. 26 27 Councilmember Trude questioned whether the $5, 000 deductible 28 on workers compensation medical costs is per occurrence. Mr. 29 Clysdale responded it is, and there is not an aggregate on 30 that option. But in looking at the City's losses, for all 31 practical purposes, there have not been any. 32 33 Mayor Linke commented on the City employee's excellent safety 34 record and stated he is very proud of all the City's 35 employees. 36 37 Councilmember Trude concurred and pointed out the large 38 savings to the City for not having to cover those types of 39 claims. 40 41 MOTION/SECOND: Hankner/Trude to Approve the July 1, 1995 42 renewal of the City's Insurance Coverages with the LMCIT in 43 the amount of $155, 447 plus both options as detailed by Mr. 44 Clysdale 45 46 VOTE: 5 ayes 0 nays Motion Carried 47 48 Mayor Linke extended the Council's appreciation to Mr. 49 Clysdale for bringing these cost saving options to the 50 Council's attention.