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Minutes 10-15-76MINUTES OP THE SPECIAL CITY COUNCIL MEETING HELD AT CITY HALL~ BOYNTON BEACH, FLORIDA, FRIDAY~ OCTOBER 15~ 1916 AT 11:00 A. M. PRESENT Joe DeLong,-Mayor Joseph F. Zack, Vice Mayor Emily M. Jackson, Councilwoman Norman F. Strnad, Councilman Prank Kohl~ City Manager Terees~ Padgett, City Clerk Mayor DeLong called the meeting to order at 11:00 A. M. and announced it was a Special City 2ouncil Meeting called at the request of the City Manager in accordance with Section 56 of the City Charter of the City of Boynton Beach for the purpose to consider an increase in the pre- mium for WorkmenTs Compensation and any other business that may right- fully come before the Council. Mayor DeLong then requested Mr. Kohl to proceed and outline the course of action he believed the City Council must pursue in con- junction with the increase of the Workmen~s 2ompensation. Mr. Kohl advised that as of the meeting of September 30, he did not know the price was going to be increased from S87,e~S to $114,~0~. He explained how during this time he had been researching this. At this time, he is unable to come up with a ~Scost insurance program which he wanted for the City to go with self-insurance. Me wilt continue to research. However~ at this time to protect the taxpayers of the City and the City, he requests the increase of S26,757, so they may have WorkmenTs Compensation. ~ae money is available in the General Pund and Utilities Contingency Fund. See Min. of 10/19/7~ Mayor DeLong requested Mr. Kohl to explain further regarding the ill effects of not taking action and Mr. Kohl explained how it possibly could cost thousands of dollars if a back claim was filed from an individual working for the City. Mayor DeLong ~sked if the City would get immediate coverage and Mr. Kohl informed him it would be effective when the check ar- rived on Monday at the Workmen's Compensation Bureau. Mr. Allen added that they would not be covered until the check is received. Mr. Strnad questione~ the expiration date Df the present policy and Mr. Kohl informed him it was October 11. Mr. Strnad asked how much grace period they had and Mr. Kohl replied: none. Mr. Zack asked if it was norma~ procedure to have no grace period and Mr. Allen replied that it was under this circumstance, but adde~ that how this came about to some ~egree in that this is not an increase as such. Under the normal policy setup, there is a p~nium ~iscount on a staggered bas~s so much for the first 4~000~ so much for the nex~ 95,£00. You get a discount on the premmum. This has not been considered in this $114,402. It has also the experience modification which the City is entitled to which has no~ been figured into this premium. Theme will be a refund of the experience modification and also at the end of the policy period~ there will be ad ~djustment as far as the premium discounu is concerned. So, what you are doing is paying it now MINUTES - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH, FLORIDA OCTOBER 15, 1976 and hopefully there wonTt be any great increases in the interim period, which we canTt guarantee. You will get some of this money back at the audit at the end-of the year. Mr. Kohl ascertained that the members had received a copy of the letter from the Compensation Rating Bureau outlining this increase from ~87~000 to $114,000. Mayor DeLong requested the secretary in preparing these minutes include the remarks of the Insurance Agenv v~erbatim. Mrs. Jackson asked if there was a claim against the City, would the rate go up and Mr. Allen replied that this is where the exper- ience modification comes into play and it will vary with the amount of claim. It will go either way based on the experience modification. Mr. Zack asked if it was based on so ma~y years and Mr. Allen replied that it is based on three years minus the previ- ous year. Also, there is one other thing in this market we are in$~Workmen~s Compensation insurance is one of the few types of policies that if there is an increase in the policy term~ the in- sured pays that increase at the time. In other pcl~cies, you are protected until the policy expiration date. In this past year~ I think you had three increases which were additions onto the policy or will be. Mr. Zack referred ro having no choice and made a motion tc accept the offer of S26~757 additional to what was approved at the last meeting. Mrs. Jackson requested that it be included To come from and General and Utility Fund. Mr. Strnad seconded the motion. Mayor DeLong clarified that it had been moved and seconded to increase an additional amount in the premium Df $26~757 for Work- menTs Compensation to be paid from the ~tility and General Contin- gency Funds. No discussion. Mrs. Padqett took a roll call vote as follows: Councilwoman Jackson - Aye Councilman Strnad - Aye Vice Mayor Zack - Aye Mayor DeLong - Aye Motion carried 4-0. Mayor DeLong asked if there was any other business and Mr. Zack questioned about how long it would take to gev information on the self-insurance and Mr. Kohl informed him that it may take from one to vwo months. Adjournmenv Mrs. Jackson moved to adjourn, seconded by Mr. Zack. Motion car- ried 4-0 and the meeting ~was properly adjourned at 11:10 A. M. -2- MINI~TES - SPECIAL CITY COUNCIL MEETING BOYNTON BEACH~ FIORID~_ OCTOBER 15, 1976 ATTEST: ~/ 'ty Clerk ~ Recordin~ ~amy (3ne ~ape) -3-