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HomeMy WebLinkAbout2016-02-23-Meeting Minutes Administrative Services Committee Meeting Commission Chamber - 2/23/2016 ATTENDANCE: Present: Hons. M. Williams, Chairman; D. Williams, Vice Chairman; Lockett, member. Absent: Hons. Hardie Davis, Jr., Chairman; Davis, member. ADMINISTRATIVE SERVICES 1. Motion to amend PPPM to eliminate severance pay for anyone resigning or retiring. (Requested by Commissioner Frantom) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve appointing a sub- committee to review the Personnel Policy and Procedures Manual and bring back any recommendations to the Commission. Motion Passes 3-0. Commissioner Dennis Williams Commissioner William Lockett Passes 2. Motion to agree to Debar Gadson Construction in accordance with the Procurement Code. On January 22, 2016, the Procurement Director provided notification to Gadson Construction of Debarment for six (6) months. Gadson Construction filed a timely appeal to the Procurement Department. Notification of Hearing before the Administrative Services Committee has been provided. (See Exhibits: 1, 2 & 3) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve the debarrment. Motion Passes 3-0. Commissioner William Lockett Commissioner Dennis Williams Passes 3. Motion to approve the minutes of the Administrative Services Committee held on February 9, 2016. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 3- 0. Commissioner William Lockett Commissioner Dennis Williams Passes 4. Update of PPPM. (Requested by Commissioner Lockett) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve appointing a sub- committee to review the Personnel Policy and Procedures Manual and bring back any recommendations to the Commission. Commissioner Dennis Williams Commissioner William Lockett Passes 5. Report from Administration regarding the status of the unauthorized raises given to employees in the Environmental Services Department relative to the Demolition Program. (Requested by Commissioner Marion Williams) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve receiving this item as information. Motion Passes 3-0. Commissioner William Lockett Commissioner Dennis Williams Passes www.augustaga.gov 6. Approve Excess Worker’s Compensation Insurance with Safety National - Incumbent with Statutory limits and an $1,000,000 Self Insured Retention (SIR - otherwise known as the deductible) to cover all positions for a premium of $248,999. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 3- 0. Commissioner William Lockett Commissioner Dennis Williams Passes 7. Discuss the rules to add and delete items to the agenda. (Requested by Commissioner M. Williams) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve receiving this item as information. Motion Passes 3-0. Commissioner Dennis Williams Commissioner William Lockett Passes 8. Provide information that will reflect any relationship (legal/formal/informal) between Augusta and any unions, including the International Association of Fire Fighters Local 3357. (Requested by Commissioner Lockett) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve tasking the Administrator with determining whether this union is a certified union and to bring in any bylaws or minutes that they have. Motion Passes 3-0. Commissioner William Lockett Commissioner Dennis Williams Passes Administrative Services Committee Meeting 2/23/2016 1:15 PM Attendance 2/23/16 Department: Presenter: Caption: Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 2/23/2016 1:15 PM Amendment to PPPM Department: Presenter: Caption:Motion to amend PPPM to eliminate severance pay for anyone resigning or retiring. (Requested by Commissioner Frantom) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 2/23/2016 1:15 PM Debarment of Gadson Construction Department:Procurement Presenter:Geri A. Sams Caption:Motion to agree to Debar Gadson Construction in accordance with the Procurement Code. On January 22, 2016, the Procurement Director provided notification to Gadson Construction of Debarment for six (6) months. Gadson Construction filed a timely appeal to the Procurement Department. Notification of Hearing before the Administrative Services Committee has been provided. (See Exhibits: 1, 2 & 3) Background:On June 2, 2015, the Augusta Commission approved and funded the Unsafe Building Demolition Program (Bid Number 15-700) to be managed by the Environmental Services Department. The Program began on July 30, 2015. A temporary cancellation notice was issued on November 12, 2015. (See Exhibits: 4 & 5) In an effort to get the information out in the community, a Press Release was issued by the Procurement Department advertising the upcoming projects which included the date/time/location of an informational meeting. In addition, a vendor data base of potential companies was created. Representatives of the Procurement, Environmental Services and Planning & Development (License & Inspection) Departments provided information to approximately 16 companies in attendance as it relates to Augusta’s guidelines, specifications, payments, etc. Training was provided to James Gadson (Gadson Construction). (See Exhibits: 6 & 7) Specifications were provided for each property location which identified but was not limited to the property address, an Asbestos Assessment Survey as required by the Environmental Protection Administration (EPA), license requirements, dump fee instructions, etc. In addition, specifications stated each successful bidder was responsible for the abatement of all asbestos materials, paying the project fee; properly notifying Environmental Protection Division of the State of Georgia of the demolition activities and complying with OSHA laws regarding asbestos materials removal and disposal. EPD laws require the successful contractor to be certified in the State of Georgia. A total of three (3) Green Cards were issued for Dump Fees for each Unsafe Building Demolition Program. (See Exhibits: 8 & 9) In October 2015, the Environmental Services Department conducted a review of their files and requested information from awarded vendors. It was requested that Gadson Construction provide a copy of their Georgia Issued Asbestos Abatement License. As of this Agenda Item, Gadson Construction has NOT provided the requested license information. After discussions with Augusta License and Inspections and the State of Georgia, it was determined the company is not licensed for Asbestos removal in Georgia. The company that Gadson Construction listed as the Asbestos Abatement Contractor stated they have not performed any work in Augusta nor have they given permission to Gadson Construction to use their license. . (See Exhibit: 10, 11 & 12) Gadson Construction was awarded a total of 10 projects under the Unsafe Building Demolition Program. The company is owned and operated by Mr. James Gadson, 1611 Ramsey Street, Augusta, GA 30901. Copies of Bid Specifications stating Augusta will be responsible for tipping fees ONLY for these projects and a copy of Bid Process and Procedures for vendors on back of Purchase Orders states the same. (See Exhibits: 14) In December 2015, the Planning and Development Department bided demolition projects (Bid Number 15-500) which were not under the Unsafe Building Demolition Program. Specifications were issued although the format appeared to be the same, the property locations, requirement of dump fees and invoice submittal, etc. was different. Gadson Construction was awarded two (2) projects. (See Exhibits: 15) After several calls to the Procurement Department regarding performance, dump fees, invoices, non-payment of subcontractors, etc., a meeting was scheduled with Mr. James Gadson, owner, Gadson Construction for Thursday, January 7, 2016 at 3:00 p.m. in the Procurement Department to discuss Augusta’s concerns regarding the company’s performance. Although Mr. Gadson confirmed the meetings time and date, he did not show up. He later called the office stating he was held up from attending the meeting because of a problem on the job site. Several attempts were made to reschedule but Mr. Gadson stated he was working on a job in Charlotte, NC and was not scheduled to return to Augusta until Wednesday of the following week. The next week, Tuesday, January 12, 2016, Mr. Gadson appeared before the Administrative Services Committee and stated concerns regarding payments, the process of payments, etc. Administrative Services Committee recommended Mr. Gadson meet with the Procurement Department. On Thursday, January 14, 2016 at 3:00 p.m., the Procurement Department met with Mr. Gadson to discuss his concerns as it relates to the Administrative Services Committee Meeting and the following: 1. Outstanding payment of $1,256.89 owed to Augusta, Georgia for Dump Fees; 2. Resolve outstanding payment issues with the companies sub-contractor(s); and 3. Failure to meet Georgia licensing requirements for Asbestos Abatement. On January 22, 2016, the Procurement Department sent a letter to Mr. Gadson informing him that Gadson Construction was debarred for six (6) months beginning on January 25, 2016 and will end on July 25, 2016. Mr. Gadson filed a timely appeal. Subsequent to the information presented to the Procurement Department in the January 14, 2016 meeting, conversations with other Augusta Departments and the State of Georgia; Mr. Gadson’s request for reconsideration was denied. Grounds continue to support the debarment as stated in the correspondence dated January 22, 2016 to debar Gadson Construction for six (6) month’s for violation of contract provisions includes but is not limited to the following: 1. Failure to perform in accordance with the terms of one or more contracts; 2. Submission to Augusta, Georgia a claim for additional compensation that is without merit; 3. Outstanding payment of $1,256.89 to Augusta, Georgia for Dump Fees; and As required by the Augusta Procurement Code Article 9 Appeals, Protests and Remedies, Sec. 1-10-87. - Notice of hearing . If a timely appeal is filed by the protestor, the Procurement Director shall place the protest on the agenda of the Administrative Services Committee. . A copy of Gadson Construction Augusta Business License is attached. (Exhibit 16) NOTE: A copy of this information was mailed to Gadson Construction. Analysis: Financial Impact:Undetermined at this time. Alternatives:1. Do not debar Gadson Construction; or 2. Extend the debarment period for up to 5 years at the discretion of the Commission. Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Administrative Services Committee Meeting 2/23/2016 1:15 PM Minutes Department:Clerk of Commission Presenter: Caption:Motion to approve the minutes of the Administrative Services Committee held on February 9, 2016. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 2/23/2016 1:15 PM PPPM Update Department:Clerk of Commission Presenter: Caption:Update of PPPM. (Requested by Commissioner Lockett) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 2/23/2016 1:15 PM Raises Enviornmental Services Department Department: Presenter: Caption:Report from Administration regarding the status of the unauthorized raises given to employees in the Environmental Services Department relative to the Demolition Program. (Requested by Commissioner Marion Williams) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: WORKERS' COMPENSATION EXCESS COVERAGE AND QUOTE SUMMARY CURRENT WORKERS' COMPENSATION EXCESS INSURANCE COVERAGE WORKERS' COMPENSATON EXCESS INSURANCE QUOTE WORKERS' COMPENSATON EXCESS INSURANCE QUOTE WORKERS' COMPENSATON EXCESS INSURANCE QUOTE 03/01/2015-03/01/2016 03/01/2016-03/01/2017 03/01/2016-03/01/2017 03/01/2016-03/01/2017 INCUMBENT OPTION 1 OPTION 2 CARRIER SAFETY NATIONAL SAFETY NATIONAL XL Insurance ACE/Chubb SPECIFIC LIMITS STATUTORY STATUTORY STATUTORY STATUTORY EMPLOYER'S LIABILITY $1,000,000 $1,000,000 $1,000,000 $1,000,000 SELF INSURED RETENTION (SIR)$1,000,000 $1,000,000 $1,000,000 $1,000,000 RATE 0.2675 0.2739 0.3795 0.4180 INCREASE/DECREASE -9.6%25.2%37.9% DEPOSIT PREMIUM $275,551 $248,999 $345,000 $380,000 MINIMUM PREMIUM $247,996 $224,099 Comments:SIR remains $1,000,000 Rate: .2739 per $100 of payroll ($90,908,862 estimated) Deposit Premium: $248,999 - decrease of $26,552 SIR remains $1,000,000 Rate: .3795 per $100 of payroll ($90,908,862 estimated) Deposit Premium: $345,000 - increase of $69,449 Deposit Premium: $96,001 higher than Safety National - Incumbent SIR remains $1,000,000 Rate: .4180 per $100 of payroll ($90,908,862 estimated) Deposit Premium: $380,000 - increase of $104,449 Deposit Premium: $131,001 higher than Safety National - Incumbent Recommendation:  Augusta's history for selecting a carrier has been based on price and most reasonable Self Insured Retention (SIR) - deductible.  There is not an increase in employer’s liability for the 2016-2017 SIR.  The best carrier is the incumbent, Safety National Casualty Corporation, which has the lowest premium rate of .2739 per $100 of payroll ($90,908,862 estimated) with a decreased deposit premium of $248,999 ($26,552 lower than 2015-2016). WORKERS' COMPENSATION EXCESS COVERAGE AND QUOTE SUMMARY Recommendation:  Augusta's history for selecting a carrier has been based on price and most reasonable Self Insured Retention (SIR) - deductible.  There is not an increase in employer’s liability for the 2016-2017 SIR.  The best carrier is the incumbent, Safety National Casualty Corporation, which has the lowest premium rate of .2739 per $100 of payroll ($90,908,862 estimated) with a decreased deposit premium of $248,999 ($26,552 lower than 2015-2016). AGENDA ITEM ________ EDITION: ________ DATE: February 23, 2016 RE: Renewal Excess Workers' Compensation Insurance ____________________________________________________________________ CAPTION: Approve Excess Worker’s Compensation Insurance with Safety National - Incumbent with Statutory limits and an $1,000,000 Self Insured Retention (SIR - otherwise known as the deductible) to cover all positions for a premium of $ 248,999. BACKGROUND: Excess Workers Compensation coverage (a per occurrence policy) has been purchased in the past as a measure to cap any potential catastrophic loss against Augusta-Richmond County. Knowing that this area of the industry is still quite volatile and premiums continue to rise, Corvel, our Workers’ Compensation Third Party Administrator, was requested to obtain quotes from A or A+ companies. Corvel received the following quotes: 1. Safety National Casualty Corporation - Incumbent a. Statutory Limit with $1,000,000 SIR to cover all positions for a deposit premium of $248,999 2. XL Insurance a. Statutory Limit with $1,000,000 SIR to cover all positions for a deposit premium of $345,000 3. ACE/Chubb a. Statutory Limit with $1,000,000 SIR to cover all positions for a deposit premium of $380,000 FINANCIAL IMPACT:  Augusta would assume all financial responsibility up to the SIR limit of $1,000,000 for all positions per occurrence. ALTERNATIVE:  Drop coverage accepting full exposure/cost for any catastrophic job related injury. RECOMMENDATION:  Approve coverage with Safety National Casualty - Incumbent with SIR of $1,000,000 for all positions with Statutory Limit for a deposit premium of $248,999. The renewal option is $26,552 lower than the previous year’s deposit premium of $275,551. REQUESTED AGENDA DATE: _________________ FUNDS AVAILABLE IN THE FOLLOWING ACCOUNTS: FINANCE:___________________________________ 621 01 5233 55.21110 WC/Risk Management ADMINISTRATOR:____________________________ Administrative Services Committee Meeting 2/23/2016 1:15 PM Renewal Excess Workers' Compensation Insurance Department:Human Resources Presenter:Michelle A. Elam - Interim HR Director Caption:Approve Excess Worker’s Compensation Insurance with Safety National - Incumbent with Statutory limits and an $1,000,000 Self Insured Retention (SIR - otherwise known as the deductible) to cover all positions for a premium of $248,999. Background:Excess Workers Compensation coverage (a per occurrence policy) has been purchased in the past as a measure to cap any potential catastrophic loss against Augusta-Richmond County. Knowing that this area of the industry is still quite volatile and premiums continue to rise, Corvel, our Workers’ Compensation Third Party Administrator, was requested to obtain quotes from A or A+ companies. Corvel received the following quotes: 1. Safety National Casualty Corporation - Incumbent a. Statutory Limit with $1,000,000 SIR to cover all positions for a deposit premium of $248,999 2. XL Insurance a. Statutory Limit with $1,000,000 SIR to cover all positions for a deposit premium of $345,000 3. ACE/Chubb a. Statutory Limit with $1,000,000 SIR to cover all positions for a deposit premium of $380,000 Analysis: Financial Impact:Augusta would assume all financial responsibility up to the SIR limit of $1,000,000 for all positions per occurrence. Alternatives:Drop coverage accepting full exposure/cost for any catastrophic job related injury. Recommendation:• Approve coverage with Safety National Casualty - Incumbent with SIR of $1,000,000 for all positions with Statutory Limit for a deposit premium of $248,999. The renewal option is $26,552 lower than the previous year’s deposit premium of $275,551. Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Administrative Services Committee Meeting 2/23/2016 1:15 PM Rules for Adding and Deleting Items Department:Clerk of Commission Presenter: Caption:Discuss the rules to add and delete items to the agenda. (Requested by Commissioner M. Williams) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 2/23/2016 1:15 PM Unions Department:Clerk of Commission Presenter: Caption:Provide information that will reflect any relationship (legal/formal/informal) between Augusta and any unions, including the International Association of Fire Fighters Local 3357. (Requested by Commissioner Lockett) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: