CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of Change Order #1 to the award for Excess Workers' Compensation Insurance to Midwest Employers Casualty Company for an amount not to exceed $20,779.25 for a total award of $190,917.25
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DEPARTMENT: Finance Department
SUBMITTED BY: Raymond Munch, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
On February 20, 2024, the City Council awarded the excess workers' compensation insurance coverage to Midwest Employers Casualty Company for an amount not to exceed $170,138 for a two-year term. At the time of renewal, the City was provided with an option for one year of coverage or two years of coverage. The City moved forward with the two-year option as it locked in the rate for two years and lowered the administrative burden on staff.
This award provides the City with excess workers compensation insurance coverage from March 1, 2024, through February 28, 2026.
DISCUSSION:
As part of the excess workers' compensation insurance application process, the City provides estimated payroll figures. This estimate is used to help develop a premium for the City's coverage. Annually, the numbers that are provided are finalized through an audit process that analyzes the actual payroll for the prior coverage period. This results in an increase or decrease in the total premium.
Midwest Employers Casualty Company conducted the annual payroll audit and found the actual payroll was higher than the amount that was estimated during the renewal period. Given the current coverage is two years, Midwest Employers Casualty Company has provided the City with an invoice totaling $20,779.25. Of this amount, $8,036 is a result of the adjustment for the coverage period between March 1, 2024, and February 28, 2025. The remaining $12,743.25 is an adjustment to the premium for the second year of coverage which is set to expire on February 28, 2026.
FISCAL IMPACT:
CIP #: N/A
Excess workers' compensation insurance is exp...
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