Finance Highlights 2011 1202 - Laserfiche WebLink

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File Number: 11 -433 Director O'Leary, Deputy Finance Director Rodriguez, Budget & Compliance Manager Perini, Administrative Assistant III Perez Public Present: Robert Larkin The meeting was called to order at 8:15 a.m. 1. Discussion on Legal Fees and Claim Settlement /Judgments Budget and Expenditures • 2011 -12 Budget, Legal Fees and Claim Settlements /Judgments • Legal Fee Budget and Expenditures 2008 -09 thru 2010 -11 • Liability and Workers' Compensation Claims Costs and Settlements 2008 -09 thru 2010 -11 • Review of $1 million Liability Self- Insured Retention Interim Finance Director O'Leary presented five attachments to the Finance Committee for the discussion on legal fees. Attachment 1- 2011 -12 Budget, Legal and Claim Settlements /Judgments, reflected City Council Adopted Budget, as amended. Mr. O'Leary explained to the Committee that the amended budget to the Legal Fee line item reflects the increase to the City Attorney's retainer that was erroneously left out during the budget process as well as the consolidation of General Fund appropriations that were previously separated; this includes line items in the Human Resources, Police Administration, and Red Light budgets. Staff has amended the way legal fees are shown in the budget so that it is clear how much is being spent on legal fees and how much is paid in Settlements /Judgments. Attachment 2 - Legal Fee Budgets and Expenditures, compares the legal fee budget and expenditures from 2008 -09 through 2010 -11 and showed how the expenditures within Settlements /Judgments included legal fees for both liability and workers compensation. Beginning in 2011 -12, legal fees will be charged to a separate line item. Attachment 3 - Self Insurance Claim Settlements /Judgments, compares the budget and expenditures for Workers' Compensation, Unemployment, and General Liability and Fire Settlements /Judgments for 2008 -09 through 2010 -11. Mayor Cassidy commented on how the budgets have decreased over the years but the expenditures have increased. Interim City Manager Marshall stated that this coming fiscal year, staff will look into increasing the budget. Expenses have increased primarily due to lawsuits within the Police Department. City Attorney Williams explained that a lawsuit does not incur expenses in the year that it is filed but perhaps 2 or 3 years in the future. Attachment 4 - Summary of Liability Claims by Type, provided a summary of claims by type from 2003 -04 through 2010 -11. The type of claims included Trip and Falls, Sewer and Water, Police, Streets, Parks and Pools, and other. Other claims are related to parking garage and operations, labor practices, and contract issues. Attachment 5 - AON Report on $1 Million Liability Self- Insured Retention Analysis, Mr. O'Leary presented the analysis AON has completed as requested by the City to evaluate if City of San Leandro Page 2 Printed on 12/13/2011