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Weslaco hires consultant to probe claims reserves and curb liability payouts
Summary
After a presentation that highlighted $1.5 million in reserves and rising premiums, the commission approved using JC Villafranca Consulting to analyze loss runs, assist investigations and recommend procedures and training intended to lower reserves and insurance premiums for general and auto liability lines.
Administration presented a proposal from JC Villafranca Consulting to strengthen the city’s approach to general liability and auto-liability claims, complementing existing workers’ compensation support the consultant already provides.
Mr. Villafranca (introduced by staff) described a program of work that builds loss runs for the prior three years, identifies departmental exposures, conducts investigations of questionable claims, engages insurance adjusters to question high reserves and recommends targeted policy and training changes. Staff and a commissioner said the city currently carries high reserves (Mr. Villafranca and staff cited figures in the range of $1.5 million for reserves and pointed to 2023–2025 claim counts as evidence of improvement opportunities). The consultant emphasized work on documentation, evidence retention, and checklists (for example, vehicle maintenance records and sign maintenance date-stamps) to reduce questionable settlements and thereby the premium modifier used by underwriters.
Commission discussion focused on how the consultant’s services would differ from training and services available through the city’s insurer (TML) and what measurable outcomes the city could expect. Commissioners and administration said they want a “second set of eyes” to press insurers on the reasons for high reserves and to provide more rigorous investigations before settlements are finalized.
Administration recommended contracting with Mr. Villafranca and the commission approved the proposal by motion.
