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<br />,- <br /> <br />. <br /> <br />Mayor Keller thanked both members of the Planning Commission and the ClAC <br />for attending the meeting, and expressed appreciation for their input. <br /> <br />A short recess was taken. <br /> <br />v. Risk Management Status Report--Materials distributed. <br /> <br />John Janzen, Risk Management, gave a progress and update report. The <br />new program was implemented in March, 1978, and was concerned with <br />workers compensation exposure and liability insurance exposure. He said <br />the City had been looking at a premium cost projected to exceed $1 million <br />during 1978-79. Risk management centers around identification of liabili- <br />ty, evaluating the financial impact on the City, and determining the most <br />effective method of financing for those exposures. <br /> <br />e <br /> <br />Regarding workers compensation exposure, he said the City's insurance bill <br />was projected for this fiscal year to be $650,000. One alternative was <br />to pursue self-insurance. In July it was determined to go into a special <br />type of plan with the state insurance fund, which put the City in a <br />self-rating position. lt is still an insured program, but the City is <br />now receiving savings through managing its-claims more effectively and <br />preventing accidents through training programs. The result for this year <br />will be the City assuming a long-term liability compensation program <br />perhaps by July 1. <br /> <br />Regarding the liability exposure, Mr. Janzen said the premium level had <br />been projected at $300,000 for this fiscal year. He said an analysis has <br />been made of loss history, and a review of bids. It was determined that <br />the most cost-effective method for the City would be a self-insurance <br />program. Defining self-insurance, Mr. Janzen said the City purchases <br />insurance, but the City has assumed a $100,000 retention on a per-occur- <br />rence basis. The City has also purchased insurance above that to a <br />$400,000 1 imit. <br /> <br />Other benefits to the City would be the ability to contract to private <br />independent adjusters to handle claims which will improve the claims <br />handling capability and save money. The Scott Wetzel Services, Inc., has <br />been contracted to handle this claims adjustment. <br /> <br />One other area of exposure which has been included is in the area of <br />Federal exposure. He said a recent change the type of liability defines <br />the City as a person, and thus liable. This opens a broad range of <br />liability under Federal law. The City has purchased coverage to protect <br />the City and public officials (City Councilors, department heads, and City <br />Manager). <br /> <br />He said direct cost savings of perhaps one-third of the previous insurance <br />cost would result. The City will be able to combat inflated rates as time <br />goes on and can better control the loss, which will add additional savings. <br /> <br />- <br /> <br />In response to a question from Mayor Keller, Mr. Janzen said a reserve is <br />being established by the City, and it was difficult to say how much money <br />would be in that fund. He projected possibly one-half million dollars. He <br /> <br />1/24/79 - 9 <br /> <br />53 <br />