CCMinutes - 09/13/04 WS - Laserfiche WebLink

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Mayor Torrey said the Delta Ponds North Path Project kickoff, held earlier that day, was well-attended. He said the project was an example of how organizations such as the Rotary Club could make a difference in the community. He noted that representatives of the City's partners in the project, the Army Corps of Engineers and Bureau of Land Management, as well as Mayor-elect Kitty Piercy, had been in attendance. Ms. Nathanson arrived. Mayor Torrey noted a law that was passed by the 2003 legislature mandating that speed limits in school zones be followed at all times if the speed limit in the area in question was 30 miles per hour or less, and that it be followed during school hours when posted speed limits were 35 miles per hour or more. He asked if there was something the Police Department could issue to the public to clarify the confusion that existed. Ms. Nathanson had no items. B. WORK SESSION: Risk Fund (Fund 622) Update City Manager Taylor introduced the item, reminding the council it had requested an update on the Risk and Health funds; at this time, staff would present information regarding the Risk Fund. A work session on the Health Fund was scheduled for October 14. The council was joined by Risk and Benefits Manager Myrnie Daut. She introduced Claims Manager Cathy Joseph and Ron Graybeal and Tim Clarke of JBL&K Risk Services, the City's insurance broker. Human Resources and Risk Services Director Lauren Chouinard and Finance Director Dee Ann Hardt were also present for the item. Ms. Daut provided a PowerPoint presentation regarding the City's Risk Fund, Fund 622. She noted the origin of the fund, an internal service fund, in an ordinance passed in 1978. She also noted the annual rate- setting process overseen by the Executive Management Team. All departments paid rates based on their experience. Ms. Daut said the lag between the rate-setting process and the time when rates took effect were a continuing issue with the fund in terms of the accuracy of rate projections. Ms. Daut enumerated the programs in the Risk Fund, including several insurance programs (liability, property/recoveries, Workers Compensation, unemployment), Safety/Loss Control/Environmental Services, and Emergency Management. Ms. Daut discussed the City's self-insured insurance programs, which included the Workers Compensation, liability, and unemployment insurance, saying that the City was self-insured for the first $500,000 of every claim in the first two categories and fully self-insured for the last category. She noted that the City had a single claim that exceeded the self-insured limit between fiscal year 1980 and the present. That was in the liability insurance program. Ms. Daut noted that the City also purchased excess insurance to address costs above the self-insured limits. She reported that the Oregon Tort Claims Act limited the City's liability to $200,000 per claimant or $500,000 per occurrence for state claims alone. Ms. Daut again noted the brokerage firm employed by the City, JBL&K Risk Services, and indicated the City also contracted with an actuary, PricewaterhouseCoopers, to assist it in determining reserve require- ments and what should be budgeted for claims annually. Because of the relatively small size of the program, a few claims could have a very significant impact on the projections and the budget. PricewaterhouseCoop- MINUTES--Eugene City Council September 13, 2004 Page 3 Work Session