CC MINUTES 05271986 - Laserfiche WebLink

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-6- expected the preliminary surface to be completed on one side that week, which would permit excavation on the other side to commence immediately. A strike of panel • installers might slow down the construction of the Chandler Place in the same area, the Manager reported. Councilmember Makowske said she had been sorry to learn from the May 21st staff notes that the City would be losing a good employee when Lauren McClanahan took another job in Columbia Heights and she recommended Mr. McClanahan be encouraged to continue his service as a volunteer fireman for St. Anthony. Mr. Childs reiterated the statement in his May 23rd memorandum, that the City's 1986 budget overrun for insurance had been caused by a $15,000 raise in liquor liability and a $30,000 increase in the Worker's Compensation premiums, most of which was directly attributable to losses incurred in the last three years on which St. Anthony's "experience modification factor" is based, and 4% to an increase in payroll . The City's liquor liability raise was substantially less than other liquor operations had experienced, the Manager added. Mark Flaten, the City's risk management consultant, was present to discuss the City's insurance package and an alternative to the League of Minnesota Cities self- insured Worker's Compensation guaranteed cost program, which, although it would involve more -risk for St. Anthony, could reduce the City's premiums from $89,933 to $64,416 if the City had only $28,419 in claims. Under this system, Mr. Flaten indicated the premiums would be dependent on the City's losses, with the worse case scenario being that the City would have to pay $125,113 for the year if losses are extreme. The consultant had distributed comparisons of the two premium programs and the City's history of claims was reviewed with the conclusion that several • severe injuries had caused the City's experience modification ratings to be higher than if they were spread out evenly over a number of years. Councilmember Ranallo recalled that the City had been on a retrospective rating program over five years ago which had resulted in a better premium than would have been charged St. Anthony under the guaranteed cost program at that time. Mayor Sundland indicated he perceived the City would have to pay close to $90,000 unddr the standard guaranteed cost program and it might be better to take the risk of a large loss to pay less in premiums under the alternative program. Mr. Flaten warned that, if the City took the retrospective rating program, there would be no guarantee against paying a $125,000 premium for the year but the consensus was that it would be worth that risk to take the lower premium, higher risk program and to follow Councilmember Makowske's recommendation that the worst case risk scenario figure of $125,000 be written into future budgets to cover such a cost if it should ever occur. Mr. Childs indicated the City is undertaking an employee safety education program related to lower back injuries which he hoped would help to stave off the type of --injuries which had resulted in the latest raise in premiums. The feasibility of initiating some type of Wellness incentive" was also briefly discussed, The Manager drew the Council 's attention to the fact that the City would experience only half of the impact of the $14,000 the City is underbudgeted this year because $7,000 would not have to be budgeted until next year due to overlapping insurance is policy and budget years. Motion by Councilmember Ranallo and seconded by Councilmember Marks to authorize the awarding of the package insurance policy contract to the League of Minnesota Cities