HomeMy WebLinkAbout5E Council Workers' Compensation~~ PRIp~
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4646 Dakota Street S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
MEETING DATE: October 5, 2009
AGENDA #: 5E
PREPARED BY: Jane L. Gilb, Accounting Supervisor
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION TO INCLUDE THE MAYOR
AND CITY COUNCIL MEMBERS AS EMPLOYEES TO BE COVERED BY
THE MINNESOTA WORKERS' COMPENSATION LAW
DISCUSSION: Introduction
The purpose of this agenda item is to consider the Mayor and City Council
Members as employees of the City of Prior Lake in order to allow them to
be covered by the Minnesota Workers' Compensation Law. Minnesota
Statute 176.011, subd. 9, clause 6 allows cities to provide workers'
compensation coverage to elected and appointed city officers.
History
At the time LMCIT introduced board member accident coverage through
CIGNA, workers' compensation rates for elected and appointed officials
were unreasonably high - a total cost in the range of $1,500 annually for
the Council. This was before LMCIT established its own class rates for
workers' compensation.
The board member accident coverage originally was designed as a less
expensive way for cities to offer some level of benefit to elected officials.
Since then, however, LMCIT has been able to significantly reduce workers'
compensation costs for these individuals by developing its own rates and
separate classification for elected officials.
CIGNA will not offer continued coverage under the existing policy directly
to cities. Existing CIGNA policies terminated at the end of February 2009.
Current Circumstances
A resolution has been prepared to classify the Mayor and City Council
Members as employees of the City which then allows them to be covered
by the Minnesota Workers' Compensation Law.
Conclusion
In order for the Mayor and Members of the City Council to be covered by
the Minnesota Workers' Compensation Law, the Council should pass the
attached resolution stating the Mayor and City Council Members are
employees of the City who qualify for coverage.
www. cityofpriorlake. com
Phone ~52.447.98~~,,,~ X12 ax 95~.44~.4245
ISSUES: The attached resolution is consistent with the provisions of Minnesota
Statutes 176.011, subd. 9, clause 6 - the Minnesota Workers'
Compensation Act -which provides in relevant part that members of the
following boards, commissions, and committees are included in the city's
workers' compensation coverage:
Members of the city council
FINANCIAL LMCIT's 2009 premium rate to cover city officers is $.19 per $100 of
IMPACT: payroll. This rate is applied to the greater of the officer's actual salary or to
an imputed annual salary of $3,640. The mayor receives $9,420 annually
and each councilmember $7,440 so the total wages annually for all five are
$39,180. The total workers' compensation cost per year is therefore
$74.44.
ALTERNATIVES: 1. Approve the resolution to include the Mayor and City Council
Members as employees to be covered by the Minnesota Workers'
Compensation Law.
2. Defer action and direct staff accordingly.
RECOMMENDED Alternative #1 -Motion and second to adopt a resolution to include the
MOTION: Mayor and City Council Members as employees to be covered by the
Minnesota Workers' Compensation Law.
Frank Boyles,
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~~_..~-° RESOLUTION 09-xxx
A RESOLUTION TO INCLUDE THE MAYOR AND CITY COUNCIL MEMBERS AS
EMPLOYEES TO BE COVERED BY THE MINNESOTA WORKERS' COMPENSATION LAW
Motion By:
Second By:
WHEREAS, The League of Minnesota Cities for many years offered a board member an
accident insurance policy through CIGNA; and
WHEREAS, The League of Minnesota Cities has eliminated the CIGNA insurance policy for
the Mayor and City Council Members as of the end of February, 2009, because
of better coverage and cost under the city's workers' compensation coverage;
and
WHEREAS, The Minnesota statute 176.001, subd. 9, clause 6 allow cities to provide
workers' compensation coverage to elected and appointed city officers; and
WHEREAS, The coverage for the Mayor and City Council Members under worker's
compensation is the same as for any other City employee; and
WHEREAS, The coverage includes medical benefits and wage replacement; and
WHEREAS, The Mayor and City Council Members will be included as employees of the City
of Prior Lake for the Minnesota Workers' Compensation Law;
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESTOA as follows:
1. The recitals set forth above are Incorporated herein.
2. Pursuant to Minnesota Statutes 176.011, subd. 9, clause 6 -the Minnesota Workers'
Compensation Act -members of the city council are included in the city's workers'
compensation coverage.
PASSED AND ADOPTED THIS 5th DAY OF OCTOBER, 2009.
YES
NO
Hau en Hau en
Erickson Erickson
Hedber Hedber
LeMair LeMair
Millar Millar
Frank Boyles, City Manager
www cityofpnorlake com
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Phone 952.447.9800 /Fax 952.447.4245 ~~ ~M