HomeMy WebLinkAboutCity Council Committees - Operations - 10/05/1992 City Clerk
CITY COUNCIL BUDGET COMMITTEE 'L
OCTOBER 51 19921 4:00 P.M.
PRESENT: Jon Johnson,Chair,Leona Orr,Jim White,Norm Angelo,Tom Brubaker, Ken
Chatwin, Bill Doolittle, Tony McCarthy, Alana Mclalwaln, May Miller, Jean
Parietti, Don Wickstrom.
Committee Chair Jon Johnson called the meeting to order at 4:02 p.m.
Update Liability Insurance
Risk Analyst Chatwin noted that this was a conceptual item to consider the options for
liability insurance. The Washington Cities Insurance Authority (WCIA) has made a proposal
for 1993 coverage. Chatwin noted the memorandum of December 6, 1991, sent to the City
Council outlining the need to review the City's options, advantages and disadvantages of
staying In the liability self-insurance pool versus the private market, In addition,there is the
possibility of a deductible program or becoming self-insured.
Chatwin explained the quote from WCIA was for a first dollar program which was
substantially lower than the previous contract. Chatwin reviewed with the Committee the
history of claims opened/paid and the amount that would have been saved with a$100,000
deductible program. He stated with the amount saved in premiums the City may be able to
save a large amount by going with a $100,000 deductible program. Under such a program
WCIA or a private firm would continue to administer the program. When asked if Chatwin
recommended going with the deductible program,Chatwin responded that he recommends
a Council Workshop on insurance at which time all options could be reviewed.
McCarthy noted that savings from a deductible program could be used to invest and pay
claims related to 1993. Finance is looking at using a mechanism to charge departments
who are a bad risk and credit departments who are a good risk. Chatwin added that
charging departments for losses gives them a vested interest in Brisk management and
maintaining proper training and rules.
McCarthy pointed out that the City currently has $1 million in budget that would earn
interest until claims were charged against it. White asked that AWC pool information be
requested. Chatwin noted that WCIA is well run and well funded. White asked what
reserves were for WCIA. Chatwin responded that they have a reserve of $15 million and
assets of$20 million. In addition,they have a low expense factor of 9.5%. McCarthy added
that regardless of what program is decided upon WCIA will administer and pay claims prior
to 1993.
Chatwin offered to have experts from Johnson & Higgins make a presentation to the
Council. Bill Doolittle questioned the number of claims and what kind they were. Chatwin
replied that there were every kind of claim from landslides to sidewalks. White listed a
number of claims filed on another city. Doolittle asked why employee hours were used for
the assessment. Chatwin answered that it is a standard way of rating. During further
questions Chatwin noted that 60% of the claims are settled with no payment. Chairperson
Johnson stated that he will talk with the rest of Council and let McCarthy know if a
workshop should be scheduled.
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1993 Capital Improvement Project Program
McCarthy handed out a preliminary list of the 1993 CIP program. McCarthy reviewed the
money available to proceed with some projects. The department heads have reviewed the
list and Wickstrom had recommended some modifications within the same dollar amount.
Chief Crawford is looking at his needs. In addition, preliminary recommendations from the
Golf Advisory Board have been used and Raul Ramos identified some needs for the
downtown infrastructure. American Disability Act has required some Improvements also.
All of these items were put together for an initial list.
White questioned the downtown parking item. McCarthy noted the funds were for a study.
McCarthy noted that the list for 1992 was revised and moved out to 1993 and combined with
additional information. There is room for some other projects. Chief Angelo has also noted
the possibility of King County and Valley Com sharing the cost of some of the Fire Bond
projects. McCarthy pointed out that a CIP process will take place next spring to do a new
six year plan at which time it can be decided which ones will be done; McCarthy reviewed
the funding sources by exhibit.
A discussion followed of how the projects could be moved or changed. McCarthy noted
that this was a preliminary budget and the proposal could be amended. White questioned
using a CIP never adopted. McCarthy pointed out that this list was just to get out for the
Council to decide. Orr agreed that she would like an opportunity to address the priorities
since she was seeing this list for the first time. Doolittle questioned some items on the list.
McCarthy reviewed the matching funds allocated for the Performing Arts Center.
Future Items
McCarthy asked if Community Events could be placed on the agenda for the next meeting.
Orr noted that a decision needs to be made after a comprehensive review of all sides of the
picture. She noted that the position is more than the Saturday Market. Johnson stated that
there are a number of community events that should be looked at -- the Balloon Classic,
Cornucopia and Winterfest. Administration has 1.5 positions and Parks has several that
may be combined in one area.
White requested that each department recommend additional personnel cuts. White stated
he challenged the departments to do an equivalent job with less. If they had to cut 1-3
positions,what positions would they be and how would they function. McCarthy noted that
departments are brainstorming on areas which services could be provided better such as
the purchasing committee and publishing committee. It is hoped that if a department losses
a position, shared knowledge would help fill in.
White suggested that another option would be proposing making up the dollar amount
somewhere else In the departments budget equivalent to the amount of the positions.
During further discussion,Johnson voiced his concern over emphasizing vacancies and not
delivery of service. A discussion followed of the shortage of personnel in Code
Enforcement. White asked to have department heads report how staff reductions would
reduce the level of service to accomplish cuts.
White informed Johnson that he will not be available for the neat Budget Committee
meeting. Committee Chair Johnson adjourned the meeting at 5:25 p.m.
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