Agenda - Council - 03/09/2004 - Laserfiche WebLink

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larger dcdt,:Ifblc, lie does not think it would be prudent at this point to take on a larger dccluctiblc. Cotmcil)n~:~ ll>,e,' I,.ix'i.p, noted raising the deductible does not save a lot of dollars across the board. Fie inclt~irc(t ii' ti~,.~'~ ,~ is a history of what the City has paid in deductibles over the last ten years. He suggested l i~cr~: could be savings by lowering the deductible and monitoring it closely. He inquired il tl~t: ('i1, '5; deductible is fairly common. Mr. Lcl]z i~._plic(I hc encourages communities to manage risk by setting money aside. Some commtmiti,zs; '.;ct ;t&lc up to $100,000 and some millions of dollars, if the Council is able they could set ~ si~l...: !'t~l}ds into a separate fitnd so it does not affect their operating budgets. Coumcilm~;~¥d>,~', l ivig noted the number one thing the City is getting hit with is the workers compcnsaliot~. I I~ inquired if there is a way to pool some of these deductibles on the City's own behalf and ham_' 1,: his internally through good health insurance or the City's own cash reserve. Mr. Lcnz ~'t;[:.lic{I ,here are deductible options for the workers compensation. There are also retrospective.: , a~i~,! ,q:tions, which are very much like gambling. Mayor (;a~e,: c×;~-c:qsed concern with the City taking on workers compensation due to the amo~mt el y~?.c., c~nployees. He noted if something major were to happen the City would be paying Otll ici ~: i~)llj¢ time. Any savings would be used up very quickly and they would never be able to gci li~t ,.-n 91oyec onto workers compensation because the City would have taken it on itself. Co tmcilmc~,~N:~ I:! rig cxplaiucd hc was not suggesting gambling on the workers compensation, however, ti ~cr.... :t~ c d i [?crcnt structured rates and options in premiums that could be looked at. Cou~cilmcl{~bc~ !~.~ ak inquired about the sinking fund. Assistant ('it? /',.~ ministrator Nelson explained when dividends are received back from the League o {' 5,4 il ll'~cs(~ta Cities they are added into the sinking fund to pay the City's deductibles and keep their 9,',:,~iu,~ts down. Councilm¢~k;:~ {~i~ }()k commented the deductible would have to be moved up quite a bit to make Councihncil~b~:l I'.!vig s;tated the Council needs to realize the town is growing and so is their exposu~'c:. 'l'!t,: t t~.> c people that are involved the exposure will increase. Assistant <'iU /'.d,~ini.strator Nelson indicated she will obtain information about the City's deductible cl~.,;l>. ,>xcr thc last ten years and costs associated with decreasing the deductible. The inflmnatio~ ¢~ill ~,'~ provided in the weekly update. The Council should inform staff if they would like I I~i; }~o~.,.4J~t back fbr discussion. City Council Work Session/February 10, 2004 Page 2 of 5