Laserfiche WebLink
• <br />Mounds View City Council <br />Regular Meeting <br />Page 9 <br />June 26, 1995 <br />consider having a deductible of $5,000 on medical costs only <br />which would reduce the workers compensation premium by $5,652. <br />The City would be responsible for the first $5,000 of medical <br />expenses for each workers compensation claim. Mr. Clysdale <br />pointed out the total medical expenses incurred for the last <br />five years was $4,026, or an average of $805. Based on this <br />history of experience, he believed this option would be <br />advantageous. <br />Mr. Clysdale further recommended the Council consider <br />increasing the City's deductible on liability and property <br />coverages from $5, 000 to $10, 000 which would produce a savings <br />of $10,100 or approximately 10% of the premium for those <br />coverages. He reviewed the City changed from a $1,000 to a <br />$5,000 deductible in 1988 and since that time, the City has <br />realized a savings of approximately $115,000 in premium costs. <br />Mr. Clysdale noted the City has only had to pay the full <br />$5,000 deductible on two occasions and while there is no <br />guarantee the City will continue to have good claim experience <br />in the future, he considered it reasonable to assume the <br />additional ris]{ for a 10% premium discount. <br />• <br />Mr. Clysdale reminded the Council they received a $19,000 <br />dividend check several months ago and commented this has been <br />an excellent program through the League of Minnesota Cities. <br />Councilmember Trude questioned whether the $5,000 deductible <br />on workers compensation medical costs is per occurrence. Mr. <br />Clysdale responded it is, and there is not an aggregate on <br />that option. But in looking at the City's losses, for all <br />practical purposes, there have not been any. <br />Mayor Linke commented on the City employee's excellent safety <br />record and stated he is very proud of all the City's <br />employees. <br />Councilmember Trude concurred and pointed out the large <br />savings to the City for not having to cover those types of <br />claims. <br />MOTIO~SECOND: Hankner/Trude to Approve the July. 1, 1995 <br />renewal of the City's Insurance Coverages with the LMCIT in <br />the amount of $155,447 plus both options as detailed by Mr. <br />Clysdale <br />VOTE: 5 ayes 0 nays Motion Carried <br />Mayor Linke extended the Council's appreciation to Mr. <br />• Clysdale for bringing these cost saving options to the <br />Council's attention. <br />