HomeMy WebLinkAbout2012-03-12-Meeting Agendawww.augustaga.gov
Finance Committee Meeting Commission Chamber- 3/12/2012- 12:55 PM
FINANCE
1. Approve coverage of Public Official Liability Insurance with
Landmark American Insurance company for $64,948 for April
19, 2012 to April 19, 2013.
Attachments
2. Discuss disparity pay of firefighters with possible utilization of
a compensation specialist. (Requested by Commissioner
Jackson)
Attachments
3. Motion to discuss/approve revised pay schedule for Board of
Equalization's Hearing Officer. (Requested by the Clerk of
Superior Court)
Attachments
4. Approve Supplemental Agreement to the FY 2012 Metropolitan
Transportation Planning Services Contract.
Attachments
Finance Committee Meeting
3/12/2012 12:55 PM
Continue Purchasing Public Official Liability Insurance
Department:Finance/Risk Managment Division
Caption:Approve coverage of Public Official Liability Insurance with
Landmark American Insurance company for $64,948 for April 19,
2012 to April 19, 2013.
Background: Current coverage has a $2,000,000 liability limit with an SIR
(self insured retention) of $250,000 for each claim Public Officials
and $250,000 each claim Employment Practices Liability.
Public Official Liability provides coverage for "wrongful acts" of
the public entity and wrongful acts of individuals who act on
behalf of the entity. A wrongful act means any actual or alleged
breach of duty, neglect, errors, misstatements, misleading
statements, omissions or employment practices violation by an
insured solely in the performance of duties for the public
entity. Augusta-Richmond County has maintained continuous
coverage since 1997. Acceptance of coverage gives additional
protection to the assets of public officials. Public Official Liability
(POL) coverage is claims made coverage which means any claim
which may be covered would need to be filed during the policy
period.
Analysis:
Financial Impact:J. Smith Lanier & Company secured 4 quotes for this coverage.
These quotes provide $2,000,000 in coverage with a $250,000 SIR
(self insured retention). Quotes were received from Landmark
American Insurance an A XII rated carrier (current carrier and
none committed) for a premium of $64,948; Darwin Insurance Co.
an A XV rated carrier for a premium quote of $71,443; ACE
Insurance Co. an A+XI rated carrier for a premium quote of
$96,389; Allied World Assurance an A XV carrier with a
premium quote of $ 112,300.
Alternatives:Rely totally on available funds for the payment of any judgments
which may be rendered directly against entity's public officials.Cover Memo
Item # 1
Recommendation:Approve coverage quoted by Landmark American Insurance
Company for a one year period for a premium of $ 64,948 for
$2,000,000 in coverage and $250,000 SIR. Coverage includes
Augusta Commission, Augusta Regional Airport Authority and
Solid Waste Management Authority.
Funds are Available
in the Following
Accounts:
611-01-5212
REVIEWED AND APPROVED BY:
Finance.
Law.
Administrator.
Clerk of Commission
Cover Memo
Item # 1
PROPOSAL OF INSURANCE
AND RISK MANAGEMENT
Prepared for:
Augusta, Georgia
Augusta Regional Airport Authority
Solid Waste Management Authority
Policy Period: 4/19/12 to 4/19/13
Prepared by:
Phil Harison, Jr.
Vice President
Attachment number 1 \nPage 1 of 5
Item # 1
PREMIUM SUMMARY
INSURANCE CARRIER Best Rating Premium
Landmark American Insurance Co. A XII $64,948
Darwin Insurance Company A XV $71,443
ACE Insurance Co. A+ XI $96,389
Allied World Assurance Co. A XV $112,300
Terms and Conditions:
Public Officials Liability Limit: $2,000,000
(Annual Aggregate, defense costs are in addition to the limit)
Retention: $250,000 Each Claim Public Officials
$250,000 Each Claim Employment Practices Liability
Prior and Pending Litigation Backdated to: 04/19/97 for Augusta, GA
04/19/03 Augusta Regional Airport Authority
08/01/04 Solid Waste Management Authority
Landmark American - 2011 year expiring premium was $64,948.
Darwin Insurance Co. – Completed and signed original Darwin application and copy of employee handbook. 2011 audited
financials also needed.
Allied World Assurance Co – Completed and signed original AWAC application and copy of employee handbook. 2011
audited financials also needed.
ACE Insurance Co. – Completed and signed original Public Officials application completed and signed claims supplemental
form and copy of employee handbook. 2011 audited financials.
Attachment number 1 \nPage 2 of 5
Item # 1
A.M. BEST RATING SCALE
Used with Permission of A.M. Best Company, Inc.
Attachment number 1 \nPage 3 of 5
Item # 1
DISCLAIMER
Proposal
J. Smith Lanier & Co. thanks you for the opportunity to discuss your insurance and risk management
program. This summary is a brief overview of that program and is based on the exposure information
you provided. Please refer to the policies for complete terms, conditions, limitations, definitions, and
exclusions.
We have evaluated your exposures to loss and developed this proposal based upon the information
that you have provided to us. If you are aware of other areas of potential exposure that need to be
evaluated or of additional information of which we should be aware prior to binding of coverage,
please bring the other areas or additional information to our attention as soon as possible. Should any
of your exposures change after coverage is bound, please notify us immediately.
Client Contracts
In the event that you enter into a contract that has specific insurance requirements, J. Smith Lanier & Co.
will review your contract, but only in regards to the insurance requirements of the contract. The scope of
our review will be to determine if the current insurance program which you have placed through our
agency addresses the types and amounts of insurance coverage referenced by the contract. We will identify
the significant insurance obligations and will provide a summary of the changes required in your current
insurance program to meet the requirements of the contract. Upon your authorization, we will make the
necessary changes in your insurance program. We will also be available to discuss any insurance
requirements of the contract with your attorney, if desired.
In performing a contract review, J. Smith Lanier & Co. is not providing legal advice or a legal opinion
concerning any portion of the contract. In addition, J. Smith Lanier & Co. is not undertaking to identify
all potential liabilities that may arise under any such contracts. A contract review is provided solely for
your information and should not be relied upon by third parties. Any descriptions of the insurance
coverages are subject to the terms, conditions, exclusions, and other provisions of the contract and of the
insurance policies and applicable regulations, rating rules or plans.
Compensation Disclosure (Including New York Regulation 194 Disclosure)
J. Smith Lanier & Co. is an insurance producer domiciled in the State of Georgia and licensed to sell
insurance in additional states (including New York). Our licensed insurance producers are authorized by
law to confer with you regarding the benefits, terms and conditions of insurance contracts; to offer advice
concerning the substantive benefits of particular insurance contracts; to sell insurance; and to obtain
insurance for purchasers. Our role in any particular insurance transaction typically involves one or more
of these activities. Except in cases where J. Smith Lanier & Co. has a specific fee agreement to receive
compensation from a client, we customarily receive compensation from insurers for our professional
services in the form of a commission, which normally consists of a percentage of the premium collected
by the insurers.
Attachment number 1 \nPage 4 of 5
Item # 1
AUTHORIZATION TO BIND
Named Insured: Augusta, Georgia; Augusta Regional Airp
Choose the appropriate option:
I hereby authorize J. Smith Lanier & Co. to bind my coverage per the terms and conditions outlined in this Proposal.
____________________________________ _________________________
Authorized Signature Date
I hereby authorize J. Smith Lanier & Co to bind my coverage with changes as stated below. I understand these changes
may result in possible additional underwriting requirements or more/less premium.
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
_____________________________________________________________________________________
____________________________________ ____________________________
Authorized Signature Date
Attachment number 1 \nPage 5 of 5
Item # 1
Finance Committee Meeting
3/12/2012 12:55 PM
Firefighers Pay Disparity
Department:Clerk of Commission
Caption:Discuss disparity pay of firefighters with possible utilization of a
compensation specialist. (Requested by Commissioner Jackson)
Background:
Analysis:
Financial Impact:
Alternatives:
Recommendation:
Funds are Available
in the Following
Accounts:
REVIEWED AND APPROVED BY:
Cover Memo
Item # 2
Finance Committee Meeting
3/12/2012 12:55 PM
Hearing Officer
Department:
Caption:Motion to discuss/approve revised pay schedule for Board of
Equalization's Hearing Officer. (Requested by the Clerk of
Superior Court)
Background:The Augusta Commission on July 19, 2011 approved the Hearing
Officer pay at $25.00 per day.
Analysis:This action could possible conflict with state law if more hours are
needed during the hearing,which states each hearing officer "shall
be paid at a rate of not less than $25.00 per hour as determined by
the county governing authoirity." O.C,G,A, 48-5-311(e.1)(10).
Financial Impact:
Alternatives:
Recommendation:
Funds are Available
in the Following
Accounts:
REVIEWED AND APPROVED BY:
Cover Memo
Item # 3
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Finance Committee Meeting
3/12/2012 12:55 PM
Supplemental Agreement between Augusta, Georgia and the Georgia Department of Transportation
Department:Planning & Development
Caption:Approve Supplemental Agreement to the FY 2012 Metropolitan
Transportation Planning Services Contract.
Background:Historically, the Augusta-Richmond County Planning
Commission contracted with the Georgia Department of
Transportation (GDOT) to provide transportation planning
services mandated by Federal law. Given the recent changes to the
city code, any future contracts / supplemental contracts for such
services will be between Augusta, Georgia and GDOT. The
transportation planning services are provided by staff of the
Augusta Planning and Development Department, as detailed in the
Unified Planning Work Program for the Augusta Regional
Transportation Planning Study. Eighty percent (80%) of the cost
of such services are paid for with funds from the Federal Highway
Administration (FHWA), as passed through GDOT. A twenty
percent (20%) local match is required.
Analysis:The attached supplemental agreement between GDOT and
Augusta, Georgia amends the FY 2012 planning services contract
by adding FY 2011 carry over funds in the amount of
$162,852.33, for a total contract amount of $772,103.28. The
agreement stipulates that the Augusta Planning and Development
Department provide the 20% local match and is the agency
authorized to use the Federal funds. The additional funds will be
used to provide transportation planning for Augusta Regional
Transportation Study as outlined in the Unified Planning Work
Program.
Financial Impact:GDOT is obligated to pay the eighty percent (80%) Federal share
of the cost of the program, up to Six Hundred Seventeen
Thousand, Six Hundred and Eighty-Two dollars and Sixty-Two
cents ($617,682.62). The Augusta Planning and Development
Department, as the Metropolitan Planning Organization (MPO), is
obligated to provide the 20% local match, up to One Hundred
Fifty-Four Thousand, Four Hundred Twenty Dollars and Sixty-Six
cents ($154,420.66).Cover Memo
Item # 4
Alternatives:Approve or deny the agreement
Recommendation:Approve the Supplemental Agreement and authorize the Mayor to
sign the same.
Funds are Available
in the Following
Accounts:
FUNDS AVAILABLE IN THE FOLLOWING
ACCOUNTS:101016310 / 131210258
REVIEWED AND APPROVED BY:
Clerk of Commission
Cover Memo
Item # 4
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