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Wednesday, September 3, 2008 12:22 AM CDT

City council delays decision on workers compensation insurance

By KENNETH LOWE - H&R Staff Reporter
 
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DECATUR - The city council postponed a vote on a resolution dealing with insurance issues facing the city of Decatur at its meeting Tuesday.

The city heard a proposed plan to allow Itasca-based Arthur J. Gallagher and Co. to continue to oversee the city's workers compensation claims, an area that Gallagher's representative and some council members said has been a persistent and costly problem for the city over the past decade.

City staff recommended Gallagher's contract be renewed after accepting bids from Gallagher and two other companies, including Decatur-based Behnke & Co., which already helps handle the city's employee health insurance plan.

City council members opted 4-2 to ask for more numbers to support Gallagher's claim that its plan provided enough coverage for the city with an acceptable premium, postponing a vote on the resolution until the council's next meeting Sept. 15.

Gallagher's representative, Michael McHugh, said the council likely would not find a better deal.

"If you look at your loss history over the last 10 years, it is workers compensation that is driving it for the city," McHugh said. "It's not the liability, it's not the automobile, it's the workers compensation."

Behnke representative Ed Flynn called McHugh's presentation before the lecture "condescending" and urged the council to take advantage of an opportunity to change administrators.

"I almost found the presentation to be a condescending lecture to you about the status of your workers compensation," Flynn said. "It begs the question that if your workers compensation is so atrocious, then where have they been for 25 years to save you the expense?"

In other business, the council heard a proposal to fund a study aimed at improving the Nelson Park Basin lakefront area.

Larry Livergood of Decatur-based Architectural Expressions spoke before the city council about the proposed project, which he said plans on figuring out the needs of the community and redeveloping the lakefront area to better accommodate areas such as tourism and economic growth.

Promoting things such as an increase in boating was one suggestion.

Interim City Manager John A. Smith said the proposed $30,000 on the part of the city to fund the study would come out of the city's planning fund.

The idea drew support from council members, including Larry Foster.

"I'm in full support of the city taking part in this project," Foster said.

Councilman Pat Laegeler said he would like to see the project focus on making accessible more of the lakefront area for home development.

klowe@herald-review.com|421-7985

 

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