HomeMy WebLinkAbout4.F.6. Worker's Compensation Insurance Renewal for 2013 F .
City of Shakopee , 7 r 1
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Memorandum tft ` u ` "� "'
To: Mayor and City Council
Mark McNeill, City Administrator
From: Julie A. Linnihan, Finance Director
Subject: Workers Compensation Insurance Renewal - 2013
Date: December 18 2012
Action Requested:
The City Council is asked to consider the renewal of the Workers Compensation policy for calendar year
2013. Upon approval, premium payment will be made to League of MN Cities Insurance Trusts (LMCIT).
Background:
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.
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 for specific job class rates. Each class has a 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.
For the 2013 policy year, the City will continue with a $500 deductible. During the renewal process, staff
reviews deductible and premium options, to determine which coverage provides a greater cost benefit
to the City.
The premium for the City for the 2013 is as follows:
LMCIT Renewal Premium: 2013 2012
Manual Premium Total: $417,464 $388,568
Experience Modifier Factor 0.77 0.82
Standard Premium $321,447 $318,626
Premium Discount $35,377 $35,041
Net Premium $286,070 $283,585
The 2013 premium is slightly increased for the anticipated wage increases, as well as the adjustments in
personnel costs for new positions that were added in the 2013 budget. 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 payroll costs.. This will occur again in April of 2013, for
the 2012 premium year.
As in previous years, the City continues to provide for volunteer accident coverage. The 2013 premium
has added coverage for elected and appointed officials, at a rate of $95 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. The estimated portion of the
insurance premium for SPUC for 2013 is $56,166 or approximately 20 % of the premium cost.
Requested Action:
If Council concurs, approve the renewal of the workers compensation policy with the League of
Minnesota Cities Insurance Trust for 2013, for a total deposit premium of $286,070.
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
Notice of Premium Options for Standard Premiums of $300,000- $500,000
SHAKOPEE & PUBLIC UTILITIES. Agreement No.: 0200023131
129 HOLMES ST S Agreement Period: From: 1/01/2013
SHAKOPEE MN 55379-1328 To: 1/01/2014
Enclosed is a quotation for workers' compensation deposit premium.
ESTIMATED DEPOSIT
PAYROLL DESCRIPTION CODE RATE PAYROLL PREMIUM
SEE ATTACHED SCHEDULE FOR DETAILS
Manual Premium 417464.
Experience Modification .77
Standard Premium 321447.
Deductible Credit 0%
Premium Discount 35377.
Net Deposit Premium 286070.
OPTIONS
Please indicate below the premium option you wish to select. You may choose only one option
and you cannot change options during the agreement period.
NET DEPOSIT PREMIUM
1. " Regular Premium Option 286070.
LM4514 (3 /02)(Rev.01 / 10)
League of Minnesota Cities Insurance Trust
Group Self- Insured Workers' Compensation Plan
145 University Avenue West
St. Paul, MN 55103 -2044
(651)215 -4173
The "City" Agreement No.: 02C
Agreement Period From: 1/
SHAKOPEE & PUBLIC UTILITIES. To: 1/
129 HOLMES ST S
SHAKOPEE MN 55379 -1328
CONTINUATION SCHEDULE FOR QUOTATION PAGE
REMUNERATION RATE CODE DESCRIPTION EST. PREP
688000. 8.14 , 5506 STREET CONSTRUCTION 5600:
477000. 4.15/ 7520 WATERWORKS 1979E
1340100. 3.63 7539 ELECTRIC & STEAM PLANT 4864E
68000. .47-/ 7610 RADIO OR TELE BRDCSTING ST. -AL 32(
125000. 6.65 ,1 7706 FIREFIGHTERS(NOT VOLUNTEER) 831:
POP 36806. 153.91 7708 FIREFIGHTERS (VOLUNTEER) 5664f
3760974. 3.57/ 7720 POLICE 13426:
165000. 4.111 8227 CITY SHOP & YARD 678:
1179250. .67 ✓ 8810 CLERICAL OFFICE EMPLOYEES NOC 790:
351000. 4.94/ 9015 BUILDINGS -OPER BY OWNER 1733:
539230. 1.43' 9063 COMM. CENTERS -ALL EES & CLERIC 771.
763000. 3.75/ 9102 PARKS 2861;
1894910. .69✓ 9410 MUNICIPAL EMPLOYEES 1307'
34740. .32" 9411 ELECTED OR APPOINTED OFFICIALS 11
448500. .69/ 9410 PU MUNICIPAL EMPLOYEES 309
1320000. .67/ 8810 PUBLIC UTILITIES CLERICAL 884
Manual Premium 41746
Agent: TBD
06834: CITY OF SHAKOPEE
CITY CLERK
129 HOLMES ST. S.
SHAKOPEE MN 55379-1328
11/30/2012 LM4680 (8/9