FINANCE COMMITTEE MEETING
Thursday, December 27, 2007
5:30 pm, Council Chambers
Agenda
1. Call to order & roll call
2. Pledge of Allegiance
3. Discussion/Approval: Workers Compensation insurance policy for year commencing 1/1/08 (C. Koehler)
4. Adjournment
Committee members:
Council President George Lamontagne, Chair Councilor Rick Laverriere
Mayor Joanne Twomey Councilor Patricia Boston
City Manager John Bubier Finance Director Curt Koehler
FINANCE COMMITTEE SPECIAL MEETING MINUTES
Thursday, December 27, 2007
The meeting was called to order at 5:30 pm.
Roll call showed all members present. The Pledge of Allegiance was recited.
Discussion/Action: Workers Compensation insurance policy for year commencing 1/1/08 (C. Koehler) Mr. Bubier gave some background information on the past year and Mr. Koehler explained our choices for the next year. We had been with Maine Municipal Association for several years until a better price was obtained a year ago and we switched to Praetorian Insurance through Paquin & Carroll. Now Praetorian is offering a renewal policy at a base rate of $707,711 and MMA is willing to let us return to their program for a base rate of $638,856. There was some discussion and explanation of how the numbers are generated. We provide an estimate of payroll amounts to the providers, who work them into their formulas to come up with premium costs. We need to do more internally in the area of safety monitoring and training and externally in working with our WC medical provider to better manage the progress of claims. Our rating is 1.22, which means that for each dollar paid in premiums, the insurance carrier is paying out $1.22 in claims so we will continue to see steep premium increases until that situation can be brought under control. Mr. Laverriere stated that he would like to see Council set a City-wide goal of reducing our WC rating. Mr. Bubier said that this would be a priority for the new HR Director to be hired, to continue building on the foundation laid by Mr. Fields in his short tenure. We have an active Safety Committee and MMA has a representative whose job it is to work with them and who will be attending a January meeting, should we decide to go with MMA’s proposal. We are also exploring options for dealing with or changing our designated 10-day medical provider, to whom all initial WC claimants go for evaluation and treatment.
Motion by Mr. Laverriere, second by Mrs. Boston to accept the proposal from MMA to provide workers compensation coverage for 2008. Approved 4-0.
Mr. Bubier wished to update the Committee on a developing situation within the City, although not on the agenda. A local heating oil dealer of substantial size appears to be in financial trouble and not meeting obligations to deliver prepaid oil or to make automatic deliveries to customers. Mr. Bubier wished to give a heads-up that the City could be asked to assist more people on an emergency basis to cope with this problem.
Motion to adjourn at 6:20 pm by Mr. Laverriere, second by Mrs. Boston. Approved 4-0.