Finance Highlights 2012 0406 - Laserfiche WebLink

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File Number: 12 -217 Councilmember Prola requested that staff continue to research increasing the parking fees in the downtown area as well as increasing the 2 -hr limit to 3 -hrs to allow shoppers more time. 5. Discussion Regarding Proposed Resolution Decreasing Level of City's Self- Insured Retention for General Liability Coverage through the California Joint Powers Risk Management Authority Mr. O'Leary provided a summary to the Finance Committee of the prior Finance Committee's recommendation, in December 2011 and based on the report prepared by the City's actuary, to decrease the City's General Liability self- insured retention (SIR) level from $1,000,000 to $500,000 through the California Joint Powers Risk Management Authority (CJPRMA). Mr. O'Leary stated that the decision followed the 30 year loss history analysis which showed that the City had only two losses exceeding $500,000. Over this period, the City saved significantly on premium costs. However, the higher SIR exposes the City to greater claim costs. Mr. O'Leary also explained that the premium will increase by $38,000 and affect the Self Insurance Fund. If approved by the City Council, this change will be effective July 1, 2012. Committee Recommendation The Committee recommended taking to the City Council for further action the decrease of the City's General Liability Self- Insured Retention level to $500,000. 6. City Manager Report Mr. Zapata advised the Finance Committee that the process of hiring a Finance Director is almost complete. The interview process included Department Heads as well as the Finance Department. A candidate has been selected and the background check is in process. As a result of the City Council adopted Goals, staff would like to bring forth a comparison of other cities' revenue enhancements as well as visit the idea of refinancing other City debts. Mr. Zapata would also like to look at building, recruiting, and retaining businesses by working with local banks. The City currently has a majority of its money in the Local Agency Investment Fund (LAIF). The rate of return is currently at 0.38 %, which is very low but safe. Mr. Zapata would like to bring information on investing in the local community. Certificate of Deposit of Account Registry (CDAR) is a program that allows cities to invest in local banks that invest in local businesses. The Committee would like more information at the next Finance Committee meeting. 7. Public Comments Chris Crow commented on the Self- Insured Retention (SIR) Report and provided an explanation on retention vs. deductible. He stated that the City must consider whether there is a benefit to decreasing the retention to pay higher premium. Mr. Crow also recommended the City look into adjusting the Business License fee of airport parking companies , as he believes they are grossly under reporting and the City is losing revenue. City of San Leandro Page 3 Printed on 51112012