DECATUR-Time is running out on deciding who will handle the workers compensation insurance for the city, and depending on the council's decision, city staff could be faced with some reorganization under a 48-hour deadline.

City council twice postponed voting on whether to extend the contract of Itasca-based insurance company Arthur J. Gallagher and Co. or to award a new contract to one of the two other firms bidding on the job. The issue first came up at the Sept. 2 city council meeting. The city's workers compensation claims over the last 10 years have been expensive.

City staff recommended to the council to extend Gallagher's contract. Decatur-based firm Behnke and Co., which already helps administer the city's employee health insurance, is the other company still actively pursuing the contract. Champaign-based Dimond Brothers Insurance Agency Inc. was the other company, but it has not continued in the bid process.

City councilman Dan Caulkins said he would be in favor of switching to Behnke.

"I don't think (Gallagher) has given us the loss control that we need," Caulkins said. "You look at our losses, compare them to the county's or similar communities, ¦ and we're just not getting the service."

Assistant City Manager Billy Tyus said there will be a number of things city staff will need to make happen quickly, should the city choose to change companies.

"While the list is long, we have no reason to believe that we would not be able to get it done if there is a change," Tyus said.

Tyus said by the end of business Tuesday, city staff will need to have secured and executed three new contracts in connection with Behnke if that decision is made. In addition, the city council also would need to approve a contract for whatever claims remain to be paid out from Gallagher. The run-out contract would come with a price tag of about $71,000, Tyus said.

By the end of Wednesday, Tyus said staff would need to develop a process for submitting claims to Behnke, figure out who in the company will be handling individual claims and make arrangements for funding claims. Other procedures would need to be completed in the following weeks.

The council is scheduled to vote on the issue at Monday's meeting.

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