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Home My WebLink About4.F.5. Worker's Compensation Insurance Renewal for 2012 � J • � ' ��i City of Shakopee � �� .� Memorandum �� ,' �'�, � �. � ._ � � To: Mayor and City Council I Mark McNeill, City Administrator `,�� r �, From: Julie A. Linnihan, Finance Director ,� .. Subject: Workers Compensation Insurance Renewal - 2012 Date: January 13, 2012 Introduction: The City Council is asked to consider the renewal of the Workers Compensation policy for calendar year � 2012. Back�round: The City annually renews the Workers Compensation policy through the League of Minnesota Cities ' Insurance Trust (LMCIT). This policy runs on a calendar year cycle. I ' The Finance department prepares the payroll estimates for LMCIT, and submits these estimates for preparation of the annual policy renewal documents. The rates are allocated by payroll classes which are developed by the LMCIT forjob class rates. Each class has a specific value that establishes the overall rates. During review of the renewal documents, City staff works with LMCIT staff in reviewing the , allocation of positions per rate classification, as well as ensuring that the most cost effective coverage � and plan are selected for the City. For the 2012 policy year, the City will continue with a$500 deductible �, as in previous years. During the renewal process, staff will review deductible options as well as retro- I rated premium options, to determine if the trends would provide a greater benefit, as well as cost � benefit, to the City. The premium for the City for the 2012 calendar year is established at $388,568. This is further reduced by the experience modifier, at .82 (which is a positive factor for the City, as it indicates a favorable I , history on claims and utilization) as well as the deductible credit, of 2.5 %. This then nets the City I' premium for 2012 to $275,619. This is an increase from the prior year amount of $258,348, an increase of $17,271. A primary component of this increase is specific to the Fire department volunteers, as the i rate is calculated by population, and the recent increase in population, verified by the 2010 census has driven this increase. The higher risk work areas of street construction and utilities also experienced ' increases, based on trends and history, of the overall LMCIT pool. The 2012 budget provides sufficient funds for the 2012 premium. In the Spring of each year, the LMCIT conducts a workers compensation audit for the prior year, to determine if the estimated policy costs were close to actual payroll costs. Historically, the City has benefitted from a premium payment reimbursement from the League, as the estimates have proven to � be accurate, allowing for a determination of annual rates that reflect actual. This will occur again in April ' of 2012, for the 2011 premium year. - - - — _ �I Workers Compensation 2012 Renewal I January 13, 2012 Page 2 As in previous years, the City continues to provide for volunteer accident coverage. The 2012 premium �� has added coverage for elected and appointed officials, at a rate of $90 per year. This was reviewed with the LMCIT, and following the recommendation of the League and the City's Agent, this coverage has been added. This policy also covers Shakopee Public Utilities Commission employees, and this cost allocation will be applied to SPUC, similar to the Property and Liability insurance costs. Historically, the SPUC portion of this coverage is approximately 23 % of the total premium. Recommendation: , Staff recommends the approval of the renewal of the League of Minnesota Cities Insurance Trust Workers Compensation coverage. This premium of $275,619, plus the coverage for Accident Plan for �, City Volunteers, of $1,450, will provide coverage for the 2012 calendar year. '� i Requested Action: ' If Council concurs, approve the renewal of the workers compensation policy with the League of Minnesota Cities Insurance Trust for 2012, for a total deposit premium of $277,069. i , �� I , � �� I j �' I I � � � i i , I � I , I __ I � League of Minnesota Cities Insurance Trust � Group Self-Insured Workers' Compensation Plan 145 University Avenue West St. Paul, MN 55103-2044 Phone (651)215-4173 � Information Fage 1. The "City" RENEWAL Agreement No.: 0200023130 SHAKOPEE & PUBLIC UTILITIES. 129 HOLMES ST S "City" is: x City SHAKOPEE MN 55379-1328 _ Joint Powers Entity � _ Other (describe) � 2. The Agreement Period is from 12:01 a.m. 1�01�2012 to 12.01 a.m. 1�01�2013 at the "City's' address. I � 3. A. Workers' Compensation Coverage: Part One of the Agreement applies to the Workers' Compensation Law of any state of the United States of America and the District of Columbia. B, Employers Liability Coverage: Part Two of the Agreement applies to work in each state listed in item 3.A. The limits of our liability under Part Two are: Bodily Injury-Each Occurrence $1,500,000 Bodily Injuzy by Disease-Agreement Limit $1,500,000 I � C. Part Three of the Agreement applies to Infectious Disease Diagnostic Testing. I, � D. Part Four of the Agreement applies to Peace Off'icers' Posttraumatic Stress Syndrome Benefit. I j E. Pari Five of the Agreement applies to Emergency Response Employee Posttraumatic Stress � Syndrome Benefit. � i F. This Agreement includes these amendments and schedules: i LM466Q(O1/11) LM4670(O1/11) LM4680(08�99) LM4681(O1/07) � 4. Retro-rating option sclected? _Ycs x No 5. Elected Officials Covered? Yes Boards and Commissions Covered (List) NONE 6. The premium for this Agreement will be determined by our Manuals of Rules, Classifications, Rates and Rating Plans. All information required below is subject to verification and change by audit. i � Premium Basis Rates Entries in this item, except as specifically provided Estimated i Estimated Total Per $100 of Code elsewhere in this Agreement; Do not modify any of the Annua � Annual Remuneration No. other provisions of the Agreement Premium I � Remuneration SEE ATTACHED SCHEDULE FOR DETAILS Manual Premium 388568. i Experience Modification .82 69942 � � Standard Premium 318626. � Deductible Credit 2.5 ° l0 7 9 6 6. i Agent: 5,512.38 Premium Discount 35041 , i 06834 CITY OF SHAKOPEE � CITY CLERK Net Deposit Premium 275619. � 129 HOLMES ST. S. I SHAKOPEE MN 55379 'I i i i 1/09f2012 LM4670 (12/99)(Rev.01�11 � �---- ----- ---------- - - ---- - � _ �' League of Minnesota Cities Insurance Trust � Group Self-Insured Workers' Compensation Plan I 145 University Avenue West St. Paul, MN 55103-2044 '� (651)215-4173 �, Agreement No.: 0200023130 The "City° � Agreement Period From: 1/01�2012 I SHAKOPEE & PUBLIC UTILITIES. To: 1�01�2013 I 129 HOLMES ST S SHAKOPEE MN 55379-1328 � � CONTINUATION SCHEDULE FOR INFORMATION PAGE � I REMUNERATION RATE CODE DESCRIPTION EST. PREM � 681500. 7.89 5506 STREET CONSTRUCTION 53770. 470000. 4.03 7520 WATERWORKS 18941. � 1300000. 3.64 7539 ELECTRIC & STEAM PLANT 47320. I 70992. . 47 7610 RADIO OR TELE BRDCSTING ST.-AL 334. i 166415. 6. 39 7706 FIREFIGHTERS(NOT VOLUNTEER) 10634. I POP 36806. 118.39 7708 FIREFIGHTERS (VOLUNTEER) 43575. 3423888. 3.84 7720 POLICE 131477. I 165000. 3.59 8227 CITY SHOP & YARD 5924. 1394356. .80 8810 CLERICAL OFFICE EMPLOYEES NOC 11155. 346800. 4. 60 9015 BUILDINGS-OPER BY OWNER 15953. 42 0. 1 10 9063 COMM. CENTERS-ALL EES & CLERIC 7966. 72 0 . � 563400. 3.65 9102 PARKS 20564. 1373139. . 58 9410 MUNICIPAL EMPLOYEES 7964. 36000. . 25 9411 ELECTED OR APPOINTED OFFICIALS 9� • 445000. .58 9410 PU MUNICIPAL EMPLOYEES 2581. I 1290000. .80 8810 PUBLIC UTILITIES CLERICAL 10320. Manual Premium 388568. i I I � i I i Agent: I 06834 : CITY OF SHAKOPEE i CITY CLERK 129 HOLMES ST. S. � SHAKOPEE MN 55379 , LM4680 8 99 �, 1�09�2012 � � ) INUOICE ��: 21782 ' I� OO 0 LEAGUE OF MN CITIES INSURANCE TRUST (0049) PREMIUM NOTICE i �I LEAG UEoF �� BERKLEY RISK ADMIN.CO.,LLC Invoice Date: 1/09112 MINNESOTA 222 SOUTH NINTH STREET Due Date: 02/08/12 CITIES SUITE 1300 MINNEAPOLIS MN 55402 I - - 2- 6 3281 612-766 3000 FAX: 61 7 6 I Bill To Agent 06834 � SHAKOPEE & PUBLIC UTILITIES. CITY OF SHAKOPEE I 129 HOLMES ST S CITY CLERK SHAKOPEE MN 55379 129 HOLMES ST. S. SHAKOPEE MN 55379 ' � Type of Coverage: WORKERS COMPENSATION �� 'I Convenant Number 0200023130 Coverage Period: 1/dl/12 To 1/01/13 Covered Party: SHAKOPEE & PUBLIC UTILITIES. '� � i Payment Plan Selected: ANNUAL PAY PLAN �� DUE DATE AM4UNT DUE END.DATE DESCRIPTION � � 2/08/12 275,619.00 PREMIUM I , � Total: $275,619.00 � I Payment/Adjustment ! Applied: �.00 � Total: 5275.619.00 ! I j � � I � �I i '� ------------------------------------------------------------------------------------ ------- !, PLEASE RETURN TNIS PORTION WITH YOUR CHECK MAOE PAYABLE T0: , LEAGUE OF MN CITIES INSURANCE TRUST (0049) INVOICE ��: 21782 I I C/0 BERKLEY RISK ADMIN.CO.,LLC � P.O. BOX 581517 �' I MINNEAPOLIS MN 55458 , � 612-766 FAX: 612-766 , �� I Type of Coverage: WORKERS COMPENSATION , � Covenant Number: 0200023130 DUE DATE: 02/08/12 � Coverage Period: 1/Olil2 To 1/01113 UNPAID BALANCE: 275,619.00 Covered Party: SHAKOPEE & PUBLIC UTILITIES. AMOUNT �UE: 275,619.00 I i I ' League of Minnesota Cities Insurance Trust � �i Group Self-Insured Accident Plan for Volunteers 145 University Avenue West St. Paul, MN 551p3-2044 �� i ACCIDENT PLAN FOR CITY VOLUNTEERS RENEWAL QUOTE I ; � The "City" Agreement No.: VL00023104 I, SHAKOPEE & PUBLIC UTILITIES. Agreement Period From: 1�01�2012 I, 129 HOLMES ST S To: 1�01�2013 SHAKOPEE MN 55379-1328 , � I This is the renewal quotation for the Group Self-Insured Accident Plan for City Volunteers. The renewal quote is based on ', i' o��era e• lease note that the current accident lan is expanded to include coverage for members of advisory ; our ex nn c , P Y P g g F , � boards and committees. If you desire t� continue coverage; please sign and date and return to LMCI'T. i � I 'i Accident Plan For City Volunteers (includes coverage for members of advisory boards and committees) I X Basic Coverage (No Medical) Premium $ 1, 000. 00 �� X Optional Medreal Premium $ 450. 00 ! — Total $ 1, 450. 00 I � I I Accident Plan For All Members of Advisory Boards and Committees Only (no coverage for other city volunteers) j � Basic Coverage (No Medical) Premium $ i I Optional Medical Premium $ ,� � — Total $ � � ; � If you have any questions, please review the Risk Management Memo on the LMCIT website entitled Accident Coverage � for City Volunteers or contact Barb Meyer al 651-215-4173 or Liam Biever at 651-281-1212. If you need to make a change, see the List of Coverage Options for Accident Coverage for City Volunteers located on the next page. i ,� ,� I Signature Title � I � Date � I I � ; I I ' I � I i Agent: 06834 - TBD , CITY OF SHAKOPEE j CITY CLERK � � 129 HOLMES ST. S. ' i SHAKOPEE MN 55379 I LM5760 (1�09)(Rev.1�12) , �-- -- - - - - - - - - - - - - - - - - - - - - - - - - - - - -