BY COUNCILOR STAUBER:
RESOLVED, that the proper city officials are hereby authorized to execute an agreement with the Duluth airport authority which allows the authority to participate in the city’s self insurance fund for a five-year term which shall be deemed to have become effective January 1, 2005, for purposes of workers’ compensation and employee honesty bond coverage, which agreement shall be substantially in the form of Public Document No. __________, on file in the office of the city clerk. Actual claim costs incurred by the city for the authority’s workers’ compensation claims will be reimbursed to the city using a moving three year prorated average of actual claim costs, including its prorated share of the annual costs associated with the workers’ compensation special compensation fund, workers’ compensation reinsurance premium and employee honesty bond premium. In addition, the authority shall pay an annual administrative fee not to exceed $5,000. Payments received will be deposited in Self Insurance Fund 605-036-1659 and 610-036-1659.
STATEMENT OF PURPOSE: This resolution approves an agreement with the Duluth airport authority which sets forth the terms and conditions of its participation in the city’s self insurance fund for workers’ compensation claims and honesty bond coverage during a five year term commencing January 1, 2005. Under the agreement, the authority will reimburse the city for actual claim costs incurred, including prorated costs relating to reinsurance and assessments. The authority will also reimburse the city for its prorated share of the employee honesty bond premium and an administrative fee not to exceed $5,000. The reimbursement for 2006 is calculated to be $259,813.