HomeMy WebLinkAboutTB Study Session 2013-06-25 SpecialMeeting
Town of Estes Park, Larimer County, Colorado, June 25, 2013
Minutes of a Special Meeting of the Board of Trustees of the Town of
Estes Park, Larimer County, Colorado. Meeting held in the Town Hall in
said Town of Estes Park on the 25th day of June, 2013. Meeting called to
order by Mayor Pinkham.
Present: William C. Pinkham, Mayor
Eric Blackhurst, Mayor Pro Tem
Trustees Mark Elrod
John Ericson
Wendy Koenig
Ron Norris
John Phipps
Also Present: Greg White, Town Attorney
Frank Lancaster, Town Administrator
Lowell Richardson, Assistant Town Administrator
Cynthia Deats, Deputy Town Clerk
Absent: None
Mayor Pinkham called the meeting to order at 5:00 p.m.
FUTURE STUDY SESSION ITEMS.
A discussion of options available to the Board related to regulating marijuana will be
held at the July 9, 2013, Study Session.
The Board discussed adding Vacation Home Rentals as a topic of discussion to an
upcoming Study Session Agenda. Mayor Pro Tem Blackhurst opposed the idea and
said the topic has been discussed and vacation home regulations are in place. He said
that it is enforcement of, and compliance with, the regulations that are the issues. Since
there was no consensus of the Board to add the topic as a study session agenda item,
Town Administrator Lancaster will include information on vacation home compliance
and enforcement activities in his updates to the Board.
Trustee Phipps initiated discussion related to the development review process and a
proposal to draft an amendment to the Estes Valley Development Code that would
clearly outline the sequence of the process. The intent of the amendment would be to
eliminate situations such as occurred with the Board of Adjustments approving a
variance for the performing arts center project prior to a development plan being
submitted. Attorney White said that in drafting an amendment the entire process will be
reviewed as different processes exist for special reviews and development plan reviews.
The Board briefly discussed the Town Administrator evaluation process and seeking
recommendations on how to improve the process in the future from sources such as
CML and Mountain States Employer Council.
Trustee Ericson requested that a listing of policies under development and a status
report be available at the next Town Board Study Session. Trustee Phipps requested
that a listing of all policies, both past and present, and a brief description of each also
be provided.
Additional discussion included: the management of assets such as Town-owned
property; the Town’s role in events; and information from Community Development
regarding increasing building and development activity and workloads.
Board of Trustees – June 25, 2013 – Page 2
INSURANCE COVERAGES – PROPERTY AND LIABILITY.
Director Williamson stated that the Town has been covered by the Colorado
Intergovernmental Risk Sharing Agency (CIRSA) since 1988 for property and liability
insurance and provided the Board with a document outlining current coverages which
are in place up to the level of governmental immunity. In addition, the Town currently
carries $500.5 million in excess property insurance per claim/occurrence, and $5 million
in excess liability per claim/occurrence, except for auto liability which is at $1.5 million.
The Town’s deductible is $5,000 per claim/occurrence. Attorney White said that the
Governmental Immunity Act (GIA), which was passed by the Colorado legislature in
1972, applies to all public entities and public employees and provides immunity from
liability for any State law tort action, or civil law. Governmental immunity does not
extend to federal laws or contracts. The GIA includes six areas where immunity is
waived and a public entity can be sued and held liable. Those areas are:
• Operation of motor vehicle by public employee
• Dangerous condition of a public highway, road, or street within corporate limits of
municipality
• Dangerous condition of public hospital, jail, public facility in park or rec area
maintained by public entity or of public water, gas, sanitation, electrical, power, or
swimming facility
• Operation and maintenance of public water, gas, sanitation, electrical, power or
swimming facility
• Dangerous condition of public building
• Operation of public hospital, correctional facility, or jail.
Although immunity is waived damages are limited at $150,000 per individual and
$600,000 per occurrence. Changes to the GIA limits are forthcoming and will be
effective on July 1, 2013, subsequent to the passage of Senate Bill 12-023 in April of
2013. The limits will increase to $350,000 per individual and $990,000 per occurrence.
At this time it is unknown how these increases will affect the Town’s premiums with
CIRSA. Mayor Pro Tem Blackhurst expressed concern that the Town no longer has a
catastrophic loss fund and asked if insurance can be purchased to cover the caps.
Attorney White noted that insurance is not necessary to cover claims from which the
Town already has immunity. He said that coverage through CIRSA will not pay on
claims where governmental immunity exists and noted that if the Town agrees to pay for
damages outside of the governmental immunity, Town funds would be used. He said
that employees, including Board members and volunteers, are covered by the GIA
provided they are acting within their scope of employment or volunteerism.
Additionally, Director Williamson reported that a recent property audit performed by
CIRSA identified areas where additional property coverage was needed.
SELF-INSURANCE UPDATE.
In 2011, following receipt of a health insurance premium quote from Anthem that
included a 13% increase, staff researched a self-funded plan through Cigna that would
reduce the cost of health insurance, and provide the Town with an opportunity to control
costs, manage funds, and potentially save money. The Board approved the move to
the self-funded plan and, in 2012, a Medical Insurance Fund was seeded with
$200,000. The Fund holds the premiums paid by employees and the Town and is used
to pay administrative costs and claims each month. The Town is responsible for up to
$40,000 per claim after which stop-loss coverage through Cigna begins. The difference
between the premiums paid and the administrative expenses and claims, remains in the
fund from year to year. Director Williamson reported that 2012 was a good claims year
for the Town and that the Medical Insurance Fund balance grew by approximately
$400,000; and said the goal is to increase the Fund balance to approximately $800,000
to offset costs during high claims and avoid the need to substantially raise premiums,
copays, and deductibles. To date, claims for 2013 are running higher than last year and
it is expected to take five years to set trends for claims that can then be used for
comparison purposes. She said utilization of the plan is high and stated that efforts to
develop wellness programs to raise awareness about health and wellness choices are
being implemented.
Board of Trustees – June 25, 2013 – Page 3
REQUEST TO ENTER EXECUTIVE SESSION:
It was moved and seconded (Blackhurst/Phipps) to enter into executive session for
the purpose of discussing a personnel matter; not involving any specific
employees who have requested discussion of the matter in open session; any
member of the Town Board (or body); the appointment of any person to fill an
office of the Town Board (or body); or personnel policies that do not require
discussion of matters personal to particular employees, under C.R.S. 24-6-
402(4)(f), and it passed unanimously.
Whereupon Mayor Pinkham adjourned the meeting to Executive Session at 6:05 p.m.
Mayor Pinkham reconvened the meeting to open session at 6:25 p.m.
Whereupon Mayor Pinkham adjourned the meeting at 6:25 p.m.
William C. Pinkham, Mayor
Cynthia A. Deats, Deputy Town Clerk