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Council Meeting May 22 , 1990 page 9 • 1 He advised that most coverage costs have decreased in price and the 2 liquor liability agent fee has also gone down. He noted that in 1988 3 the City had a $5,000 deductible. 4 5 The City received very good rates, with the exception of Workers ' Comp- 6 ensation. The increase in Workers' Compensation was due to an increased 7 experience modification and premium rates. Workers' Compensation ex- 8 perience increased the premium 13.68% and the League of Minnesota Cities ' 9 Insurance Trust (LMCIT) increased its premiums. If this had not happened, 10 Mr. Flaten said the rates would have decreased 15%. 11 12 Mr. Flaten advised that the LMCIT has also changed their retrospective 13 experience program. If the City's experience had been good it would 14 have received a refund . He suggested that Councilmembers approach 15 the LMCIT and request a modification to the plan. 16 17 It is Mr. Flaten ' s opinion that the LMCIT is restructuring whereby it 18 can pool all the funding and redistribute. Mayor Ranallo felt that the 19 LMCIT plan is still the best to be gotten for the City. He will contact 20 the League of Minnesota Cities ' President regarding this matter. 21 22 Mr. Flaten reviewed the incurred losses for the past three years. He 23 recapped the self-insurance feature of the material he distributed to •24 the Councilmembers. He suggested that the City Council could rely on 25 self insurance rather than the insurance community by earmarking some 26 of the surplus available for deductible. Mayor Ranallo agreed that some 27 of the surplus should be directed to a self-insurance fund at budget 28 time. 29 30 Mr. Flaten noted that the City of St. Anthony will be one of the first 31 cities to go to this type of coverage. Mayor Ranallo cited some situations 32 where he has recommended self-insurance in the private sector. He noted 33 these plans have been very successful , especially in the areas of health 34 and hospitalization plans . Mr. Flaten observed that the Council may want 35 to expand putting some of the reserve into a self-funding health program. 36 Mayor Ranallo also suggested that some more effort may want to be given 37 to getting injured employees back to work. 38 39 Mr. Flaten advised that the insurance plan is up for renewal on June 1 , 40 1990. He felt the City Manager should be given the flexibility to study 41 the guaranteed cost or the retrospective approach for comparison of rates 42 and then make a decision. He also advised that the LMCIT will defer a 43 Council decision until after the June 5th Council meeting. 44 45 8. UNFINISHED BUSINESS 46 47 Ordinance No. 1990-003; Temporary Wine License 48 Motion by Ranallo, second by Makowske to approve the second reading of 49 Ordinance No. 1990-003. 10SD