pages: CityCouncil/2009-02-17.pdf, 12
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CityCouncil | 2009-02-17 | 12 | Mayor Johnson inquired how costs are allocated. The City Attorney responded departments are charged back for participating in the insurance pool; stated the amount is based on the number of employees within each department. Mayor Johnson inquired whether each department is charged back at the end of the year. The City Attorney responded the question is a Finance issue. Mayor Johnson requested that the Interim Finance Director provide an explanation at the next meeting. The City Manager stated the Interim Finance Director would also explain what is contributing to the projected deficit. Mayor Johnson inquired whether money is set aside for medical expenses. The City Attorney responded the $2.1 million loss reserve fund is real money that has been set aside; stated the City processes medical payments through the fund; the workers' compensation budget for 2008-2009 was approximately $3. 1 million; the biggest piece is the loss reserve fund; the annual cost of participation in the risk pool is approximately $600,000 medical payments and settlements run against the loss reserve fund, which is different from Labor Code 4850, another component of Police and Fire workers' compensation costs; carried by the Police and Fire Departments; the City is required by law to report the combination of Labor Code 4850 pay and all medical payments. Mayor Johnson requested that the Interim Finance Director explain the appropriate way to handle allocating workers' compensation charges to departments. Vice Mayor deHaan stated per capita does not seem to work; inquired whether AMP is included, to which the City Attorney responded in the affirmative. Councilmember Matarrese requested that the Interim Finance Director provide information on the root cause of the workers' compensation deficit and proposed preventative action. Vice Mayor deHaan stated the Planning and Building Department has seen a reduction in fees because of the economy ; the issue could be Regular Meeting Alameda City Council 12 February 17, 2009 | CityCouncil/2009-02-17.pdf |