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HomeMy WebLinkAbout2016-04-12-Meeting Minutes Finance Committee Meeting Commission Chamber - 4/12/2016 ATTENDANCE: Present: Hons. Guilfoyle, Chairman; Sias, Vice Chairman; Frantom, member. Absent: Hon. Hardie Davis, Jr., Mayor; Hasan, member. FINANCE 1. Approve the purchase of 5 vehicles for Augusta Planning and Development Department from License and Inspections Fund Balance (217-00-0000 fund). Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 3-0. Commissioner Sammie Sias Commisioner Sean Frantom Passes 2. Approve the purchase of one emergency response vehicle for the Richmond County Sheriff’s Office-Bomb Team Division using Federal Grant funds. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 3-0. Commissioner Sammie Sias Commisioner Sean Frantom Passes 3. Approve the purchase of one F150 pickup truck for the Richmond County Sheriff’s Office-Criminal Investigation Division with funds from the Sheriff’s Capital. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 3-0. Commissioner Sammie Sias Commisioner Sean Frantom Passes 4. Approve Public Official Liability Insurance with RSUI Indemnity Company, Option 1 for a premium charge of $68,695 for policy period April 19, 2016 to April 19, 2017. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 3-0. Commissioner Sammie Sias Commisioner Sean Frantom Passes 5. Forensic Audit of SPLOST VI. (Requested by Commissioner Lockett) (Referred from February 23 Finance Committee) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve referring this matter to the next Finance Committee to discuss the formation of a sub-committee to address a forensic audit. Motion Passes 3-0. Commissioner Sammie Sias Commisioner Sean Frantom Passes 6. Presentation by Mr. James Reed on behalf of his mother, Ms. Pensecola Reed, regarding an error involving her senior exemption dating back to 2003. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Motion to approve the www.augustaga.gov Approve refund to Ms. Reed in the amount of $2760.49. Motion Passes 3-0. Commissioner Sammie Sias Commisioner Sean Frantom Passes 7. Motion to approve the minutes of the Finance Committee held on March 8, 2016. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 3-0. Commissioner Sammie Sias Commisioner Sean Frantom Passes Finance Committee Meeting 4/12/2016 1:20 PM Attendance 4/12/16 Department: Presenter: Caption: Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance Committee Meeting 4/12/2016 1:20 PM 2016 - Planning and Zoning Department:Finance Department - Fleet Management Division Presenter:Ron Crowden - Fleet Management Caption:Approve the purchase of 5 vehicles for Augusta Planning and Development Department from License and Inspections Fund Balance (217-00-0000 fund). Background:The Augusta Planning & Development Department would like to request the purchase of 5 new vehicles to be used by additional inspectors (see email attached). The 5 new vehicles will include: two (2) Ford F150 4 x 2 pickup trucks; two (2) Ford F150 4 x 4 pickup trucks; and one (1) Ford Explorer. Analysis:The Procurement Department published competitive bids using the Demand Star electronic bid application for the 6,000 GVW pickup trucks (Bid-15-239) and the mid-size SUV (Bid 15-182). Bid 15-239 (4x2) results were as follows: (1) Allan Vigil Ford = $22,901.00 each; (2) Bobby Jones Ford = $23,410.00 each; (3) Fairway Ford = $22,254.00 each; (4) Langsdale Chevrolet = $25,160.00 each; and (5) Master Buick GMC = $32,698.00 each. NOTE: Bobby Jones Ford has agreed to match the lowest non- local bidder’s price through the Local Vendor Preference program. See Attachment Bid 15-239 (4x4) results were as follows: (1) Allan Vigil Ford = $26,008.00 each; (2) Bobby Jones Ford = $26,744.00 each; (3) Fairway Ford = $25,469.00 each; (4) Langsdale Chevrolet = $28,419.00 each; (6) Master Buick, GMC = $36,336.00 each NOTE: Bobby Jones Ford has agreed to match the lowest non-local bidder’s price through the Local Vendor Preference program. See Attachment Bid 15-182 results were as follows: (1) Allan Vigil Ford = $27,579.00 each; (2) Bobby Jones Ford = $28,804.00 each NOTE: Bobby Jones Ford declined to match the lowest non-local bidder’s price through the Local Vendor Preference program. See Attachment Financial Impact:The two 4 x 2 pickup trucks will be bought for $22,254.00 each; the 2 4 x 4 pickup trucks will be bought for $25,469.00 each; and the Ford Explorer will be bought for $27,579.00 for a total of $123,025.00. The funds will be provided from the 217-00-0000 Fund balance of License and Inspections Alternatives:1)Approve the requet, 2)Approve the request in part, 3) disapprove the request. Recommendation:Approve the purchase of 5 vehicles for the Augusta Planning & Development Department. Funds are Available in the Following Accounts: Fund Balance of License and Inspetions 217-07-2210/5422210-- 217-00-0000/1342210 use of revenue generated by this regulatory fund is restricted to support the mission of the building inspection function. The use of available fund balance for the purchase of these vehicles is appropriate. dbw REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Finance Committee Meeting 4/12/2016 1:20 PM 2016 - Sheriff's Tahoe Department:Finance Department - Fleet Management Division Presenter:Ron Crowden Caption:Approve the purchase of one emergency response vehicle for the Richmond County Sheriff’s Office-Bomb Team Division using Federal Grant funds. Background:The Sheriff’s Office is requesting to purchase one Chevrolet Tahoe for the purpose of transporting the bomb team crew members in response to various bomb threats and activities throughout the area.This response vehicle will be crucial in the continuing effort of protecting the public by curtailing criminal or terroristic activity through the use of their expertise in explosives and other devices. Currently there is only one other vehicle being used for this purpose. This acquisition, with funding provided by a federal government grant, will be a tremendous asset in updating the division’s response fleet. Analysis:Fleet Management has requested use of the Georgia state bid contract for the purchase of this vehicle. The state contract number is 99999-SPD-ES40199409-0002 and assures the best pricing throughout the state. The contract for this type vehicle is currently held by Hardy Fleet Group, Inc. of Dallas, Georgia. Please see attachment for pricing detail. Financial Impact:The price for the vehicle and required accessories is $37,961. The vehicle will be purchased entirely through use of a Georgia Emergency Management Agency (GEMA) grant. (See attachment) Alternatives:1) Approve the request, 2)Disapprove the request. Recommendation:Approve the purchase of one emergency response vehicle for the Richmond County Sheriff’s Office-Bomb Team Division. Funds are Available in the Following Accounts: Federal Grant: 220-03-9244/5425310 REVIEWED AND APPROVED BY: Finance. Procurement. Law. Administrator. Clerk of Commission Finance Committee Meeting 4/12/2016 1:20 PM 2016 Sheriff's F-150 Department:Finance Department-Fleet Mangement Division Presenter:Ron Crowden Caption:Approve the purchase of one F150 pickup truck for the Richmond County Sheriff’s Office-Criminal Investigation Division with funds from the Sheriff’s Capital. Background:The addition of the pickup truck versus an automobile is the versatility of the truck. The sheriff has not received sufficient capital funds in recent years to assist in keeping up his investigator’s fleet, therefore, this purchase will be helpful in that endeavor. Analysis:The Procurement Department published a competitive bid using the national Oniva Demand Star electronic bid application for the 6,000 GVW pickup trucks with the following results: Bid 15-239: Allan Vigil Ford = $24,562.00; Gerald Jones Ford (formerly Bobby Jones Ford) = $25,281.00; Fairway Ford = $24,408.00; Langsdale Chevrolet = $25,838.00; and Master Buick GMC = $34,098.00.NOTE: Gerald Jones Ford has agreed to match the lowest non-local bidder’s price. Financial Impact:The price for the pickup truck is $24,408. The vehicle will be purchased with the sheriff’s 2016 capital outlay funds. Alternatives:1) Approve the purchase 2)disapprove the purchase Recommendation:Approve the purchase of one Ford F150 pickup truck for the Richmond County Sheriff’s Office-Criminal Investigation Division. Funds are Available in the Following Accounts: Capital Outlay: 272-03-2110/5422210 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission PnopoSAL oT INSURANCE Alrio RISTMINIGEMENT Ptepated fot: Augusta, Georgia Augusta Regional Airport Authority Solid Waste Management Authority PolicyPetiod: 4/19/16 to 4/19/17 Presented by: Phil Harison, Jr. YP/Managing Director J. Smitb Lanier & Co. ln*ring People and Brlrinest Sinrc l8(t8 SERVICE COMMITMENT J. Smith Lanier & Co. is committed to the client. We enjoy what we do and it shows in our work. Some of our more important qualities include: r A Team Of Qualified Insurance Ptofessionals Periodic evaluation of your insurance program Certificates of Insurance Policy forms, wording, and endorsements Contracts (Insurance/Indemnification provisions) Claims Management Services Resolve coverage issues Claims reporting procedures Timely setdements Engineering Services Site surveys Develop new or refined safety programs Safety Training Review Carier recommendations for feasibility and effectiveness SERVICE TEAM AtJ. Smith Lanier & Co., we believe the best way to effectively give your business the serrice it deserves is through ^ te tn effort. Our client service team concept is designed to give you consistent, knowledgeable service which can only occur by working with tained professionals. J. SMITII LANIER A CO. -Augusta Diuision 2601 Commons Avenue Augusta, GA 30909 Main Phone Number: 705-737-8811 Main Fax Number: 706-737-3413 Phil Harison, Jr. oharis on@i smithlanier. com Lisa Hamilton lhamiltonfdi smithlanier. com COMMERCIAL LINES TEAM VP/Managing Director Account Manager 706 434-2391 7067378811 706-737-8811 CLAIMS Jerry Hedgepeth AIC, ARM, CIC Corporate Claims Director 770-874-4535 ihedseneth(aismithlanier.com Mitzi McCoy mmccov@ismithlanier.com Claims Analyst SCHEDULE OF NAMED INSUREDS {Named Insureds Listed below may not apply to all coverages depending upon their insurable interest} Special care must be taken to insure all legal entities of your business, including any LLC (Untited Liabiliyt Corporation), )Y (Joint Ventur), and Partnerships. Many insurance policies do not cover these entities unless they are specifically named on the policy. It is important to noti$, your agent if an entiry is formed during the policy term. Let us know if one of your entities is not listed below. Augusta, Georgia Augusta Regional Airport Authority Solid Waste Management Authority PUBLIC OFFICIALS PREMIUM SUMMARY INSURANCE CARRIER Best Rating Premium RSUI Indemnity Co. - Option 1 A+ XIV $68,695 RSUI Indemnity Co. - Option 2 A+ XIV $7s,s65 IronShore Insurance Co.A XIV $63,567 Darwin Insurance Co.AXV $93,600 AIG Insurance Co.AXV Declined Marketins Summarv Tetms & Conditions: 1) RSUI Indemniw Comoanv Public Officials Limit: $2,000,000 EPL Coverage - Vendor Liabiliry Coverage for discrimination and sexual harassment EPL Coverage - $100,000 Sublimit Defense Expenses Wage & Hour Claims Telecommunications Claims defense expenses sublimit $ 1 00,000 Additional Defense Expense Limit of $1,000,000 for RSUI Option #\ or, Additional Defense Expense Limit of $2,000,000 for RSUI Option #2 Amended Settlement Clause 70/30 Retention: $250,000 Each Claim Public Officials $250,000 Each Claim Employment Practices Liabitty Ptior and Pending Litigation backdated to 04/19 /97 fot Augusta, GA 04 / 19 / 03 Augusta Regional Airport Authority 08/01/04 Solid Waste Management Authority 2\ IronShore Insutance Co. Public Officials Limit: $2,000,000 EPL Coverage - Vendor Liabiliry Coverage for discrimrnation and sexual harassment OFAC Compliance Notice Prior and Pending Litigation backdated to: 04/01/1.6 Non-Monetary Relief Exclusion with Sublimit - $250,000 Telecommunications Claims defense expenses E xclusion Bond Exclusion IronShore Insurance Co. - Continue Retention: $250,000 Each Claim Public Officials $250,000 Each Claim Employment Practices Liability 3) Darwin Insurance Company Public Officials Limit: $2,000,000 EPL Coverage - Vendor Liability Coverage for discrimination and sexual harassment EPL Coverage - $100,000 Sublimit Defense Expenses !7age & Hour Claims Telecommunications Claims defense expenses sublimit $ 1 00,000 Additional Defense Expense Limit of $1,000,000 Amended Settlement Clause 70/30 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 Authoriry 08/01/04 Solid $7aste Management Authority 4) AIG Insurance Co. - Unable to orovide a comolete quote as their coverase form is limited to the below subjectivities and thus does not meet the current policy terms and conditions. Zortrng claims are defense only, subject to a $1M sublimit. There is no indemnity coverage. Any zoning claim brought by or on behalf of a religious institution, is subject to a $500k SIR Any front and back wages awarded as part of an EPL suit are subject to a 50 / 50 co-insurance deductible. A.M. BEST RATING SCALE GUIDE TO BEST'S FINANCIAL STRENGTH RATINGS A Best's Financial Strength Rating is an independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. The rating is based on a comprehensive quantitative and qualitative evaluation of a company's balance sheet strength, operating performance and business profile. Financial Strength Ratings Rating Descriptor Definition o (,oat, A++, A+Superior Assigned to companies that have, in our opinion, a superior ability to meet their ongoing insurance obli dations A, A.Excellent Assigned to companies that have, in our opinion, an excellent ability to meet theirongoing insurance ohlioalions B++, B+Good Assigned to companies that have, in our opinion, a good ability to meet their ongoing insurance obliga- lions I.ct EoE B, B-Fair Assigned to companies that have, in our opinion, a fair ability to meet their ongoing insurance obliga- tions. Financial strength is vulnerable to adverse changes in underwriting and economic conditions. C++, C+Marginal Assigned to companies that have, in our opinion, a marginal ability to meet their ongoing insurance obli gations. Financial strength is vulnerable to adverse changes in undeMriting and economic conditions. C, C.Weak Assigned to companies that have, in our opinion, a weak ability to meet their ongoing insurance obliga- tions. Financial strength is very vulnerable to adverse changes in undeMriting and economic conditions D Poor Assigned to companies that have, in our opinion, a poor ability to meet their ongoing insurance obliga- tions. Financial strength is elitremely vulnerable to adverse changes in underwriting and economic con- ditions. E Under Regulatory Supervision Assigned to companies (and possibly their subsidiaries/affiliates) placed under a significant form of regulatory supeNision, control or restraint - including cease and desist orders, conservatorship or reha- bilitation, but not liquidation - that prevents conduct of normal, ongoing insurance operations. F ln Liquidation Assigned to companies placed in liquidation by a court of law or by a forced liquidation. S Suspended Assigned to rated companies when sudden and significant events afiect their balance sheet strength ot operating performance and rating implications cannot be evaluated due to a lack of timely or adequat€ Ratinq Modifiers Modifier Descriptor Definition u Under Review lndicates the rating may change in the nearterm, typically within six months. Generally is event driven, with positive, negative or developing implications. pd Public Data lndicates rating assigned to insurerthat chose not to participate in A.M. Best's interactive rating process. (Discontinued in 2010) lndicates rating assigned to a Lloyd's syndicate.sl Outlooks Syndicate lndicates potential direction of a Financial Strength Rating over an intermediate term, generally defined as 12 to 36 months. Positive lndicates possible rating upgrade due to favorable financial/market trends relative to the current rating level. Negative lndicates possible rating downgrade due to unfavorable financial/market trends relative to the current rating level. Stable lndicates low likelihood of a rating change due to stable financiaumarket trends. Not Rated Designation NR: Assigned to companies that are not rated by A.M. Best. Rating Disclosurc A Best's Financial Strength Rating opinion addresses the relative ability of an insurer to meet its ongoing insurance obligations. The ratings are not assigned to specific insurance policies or contracts and do not address any other risk, including, but not limited to, an insurer's claims-payment policies or procedures; the ability of the insurer to dispute or deny claims payment on grounds of misrepresentation or fraud; or any specific liability contractually borne by the policy or contract holder A Best's Financial Strength Rating is not a recommendation to purchase, hold or terminate any insurance policy, contract or any other financial obligation issued by an insurei nor does it address the suitability of any particular policy or contract for a specific purpose or purchaser ln arriving at a rating decision, A.M. Best relieson third-party audited financial data and/or other information provided to it. While this information is believed to be reliable, A.M. Best does not independently verify the accuracy or reliability of the information. For additional details, see A.M. Best's lerms of Use al www. ambest.com. Best's Financial Strength Ratings are distributed via press release and/or the A.M. Best V\reb site at www.ambest.com and are published in the Credi, RatingActions section of 8estt4/eeko. Best's Financial Strength Ratingsareproprietary and may not be reproduced without permission. Copyright O 2013 by A.M. Best Company, lnc.Version 021 71 2 DISCLAIMER Propual 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 exposu(e information you ptovided. Please refer to the pohcies 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 awarc prior to binding of coverage, please bring the other areas or additional information to our attendon xs soon as possible. Should any of your exposures change after coverage is bound, please noti$ us immediately. Client Contrads In the event that you enter into a contract that ha^s specific insurance requirements,J. Smith I-anier & Co. will review )'our contract, but only in regards to the insurance requiremeots of the contract. The scope of our review will be to determine if the cwrent insurance proS'ram which yo,, h"rr" placed through our agency ad&esses the t)?es and amounts of insurance coverage referenced by the contract. We will identify the signifrcant insurance obligations aod will provide a summary of the changes required in your current insurance Program to meet the requirements of the contract. Upon your authorization, we wiil make the necessary changcs in your insurance program. We will also be available to discuss aoy insurance requirements of the contract with your attomey, if desired. In performing a contract review,J. Smith Lanier & Co. is not providing legal advice or a legal opinion conceming any portion of dre contract. In addition, J. Smith Lanier & Co. is not undertaking to identi$ all potential liabiiities that ma)' 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 covera{Ies are subiect to the terms, conditions, exclusions, and other provisions of the cofltract and of the insurance policies and applicable regulations, rating rules or plaos. Conpensation Di$torsn (nckdiryNea York Rcgalatiott 1 94 Diclovre) J. Smith Lanier & Co. is an insurance producer domiciled ,rr the State of Georgia and licensed to sell insutance in additional states (iflcluding New York). Our licensed insurance producers are authorized by law to confer with you regardrng the benefits, terms and conditions of ilsurance conttacts; to offer advice conceming the substantive benefits of particular insurance contfacts; to sell insurance; and to obtain insurance for purchasers. Our role in any particular insurance transaction typically involves one or rnore of these activities. Except in cases whereJ. Smith Lanier & Co. has a specific fee agreernent to receive compensation from a client, we customarily receive compensadon from insurer-. for our professional servicei in the form of a commission, which normally consists of a percentage of the premium collected by the insurers. J. Smith Lanier & Co. may also receive additional compensation, under agreements with one or more insurers and/or insurance Ltermediaries, in the form oi commission overrides or based on some combination of volume, profitability or other factors. We will receive compensadon in connecdon with the sale ofinsurance products based upon the t,?e ofinsurance contract that we sell and our arrangement with the insurer. Depending on the insurer and insurance contract that you select, compensation may be paid to J. Smith Lanier & Co. by the insurer selling the itr.nrancelontract or b)' another third party. Such compensation may vary depending on a number of factors, including the insurance aorrt oat and the insurer the purchaser selects. In some cases, other factors such as the volume of business a producer provides to an insurer or the profitability of insurance contracts a producer provides to an insurer also may affect compensadon' At your request, we will be pleased to provide you with information about compensation expected to be received byJ. Smith Lanier & Co. based i, whole or in part orthe sale of insurance to you and (if applicable) compensation expected to be received by us based in whole or in part on any altemative quotes presented to you by J. Smith I-anier & Co. Collection D*closurc If this prgposal results in your cornmitment to purchase ofle or more of the insurance products described in this proposal, J. Smith Lanier & Co. will submit to you, or caused to be submined to you, an invoice for the insuraoce premiums asso&ted with such insurancc products. You are responsible for payment io full of the premium arnounts set forth on our invoices within the payment tetms set forth on the invoices. In the event that J. Smith Lanier & Co. or its designee commenccs legal action to collect arnounts due under outstanding invoices or to enforce its rights gnder any insurance contracts, you will be responsible for payment of all reasonable attomeys' fees, court costs and exPense-s 1xH:.;," j. Smith t,mier & Co. in collectinll past duc mounts pursumt to such invoices or othemise enforcing its legal rights under such ADDITIONAL RECOMMENDED COVERAGES \We have been dependent upon information provided by you to evaluate your exposures to loss. However, if there are other areas that need to be evaluated, please bring these areas to our attention. Specifically, we ask thatyou rcuiew and considet the following items: HIGHER LINIITS: In today's litigrous society, many businesses have found it necessary to increase their lirnits of liability to ensure adequate protection for thek assets in the event of a loss. Higher limits of liability may be available. To ensure your level of comfort, please carefi:lly review the limits of coverage shown in this proposal EMPLOYEE Loss of Nloney, Securities and Other Property caused by dishonest acts of your DISHONESTY: employees. C\BER Despite a company's best effort to secure its computer systems, hackers, cyber thieves LIABILITY: and cyber terrorists continue to successfully break into networks and cause catastrophic financial Iosses including the ft of personal and client information. Cyber LiabiJity (Internet Liability Insurance) 21d l![6r]ia Liability Insurance covers loss caused by fraudulent alteration or destruction of electronic information such as malicious copying of uade secrets, extordon, loss of business income caused by virus or destruction of electronic information, network secudty, etc. POLLUTION Businesses are legally iiable when environmental contamination originates from site or activiq'-related business operations. Environmental risk exists even if a business operation is firlly compliant v/ith the proper permits and procedures. Potential contamination from chemicals and materials used in normal business operations can linget in the soil and water for yeats. Accidents and ensuing legal suits from third-party claims for personal damage; bodily injury and property damage compensation arc the #l source of environmental insurance claims. Environmental/Pollution insurance offers a cost efficient safety net that protects against damages resulting from a range of exposures both on and off- site operations as well as during transporation (owned & non-owned). FIDUCIARY The Employee Retirement Income Security Act of 1974 imposes personal LIABILITYI liability on Fiduciaries of employee welfare plans for acts of mismanagement or errors in ludgment. Fiduciary Liability Insurance covers such personal liability and includes Employee Benefits Liabiliq' which insures the corporation against claims arising out of efiors ot omissions made in the administration of Employee Benefit Plans. POLICE PROF. Provides Professional Liability coverage for an entities Law Enforcement activities while performing LIABILITY their professional duties. The policies cover such perils as false arrest, civil rights violations and Hot Pursuit. AUTHORIZATION TO BIND Named Insured: Augusta, Georgia; Augusta Regional Airport Authority Solid Waste Management Authority Choose the appropriate option: tr I hereby authorizeJ. Smith Lanier & Co. to bind my coverage per the terms and conditions outlined in this Proposal. AuthoiT,ed Signatare Date tr 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. Authoiied Signanre Date Finance Committee Meeting 4/12/2016 1:20 PM Continue Purchase of Public Official Liability Insurance 2016 Department:Risk Management Presenter:Joe Crozier Caption:Approve Public Official Liability Insurance with RSUI Indemnity Company, Option 1 for a premium charge of $68,695 for policy period April 19, 2016 to April 19, 2017. 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, 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:The Augusta Law Department (knowledge of decisions made by the Commission which may lead to a claim against this coverage) and Augusta Human Resources Department (knowledge of grievances, separations from employment, etc. which may lead to claims against the Employment Practices Endorsement to this coverage) are the two areas responsible for filing claims against this coverage. Financial Impact:J. Smith Lanier & Company secured four quotes for this coverage. These quotes provide $2,000,000 in coverage with a $250,000 SIR (self insured retention). Quotes were received from RSUI Indemnity Company, (current carrier) Option 1, “ A+” carrier for a premium of $68,695, (Additional Def. Expense Limit $1,000,000) Option 2, “A+” carrier for a premium of $75,565, (Additional Def. Expense Limit $2,000,000) Darwin Insurance Company, “A” rated carrier for a premium of $93,600 (Additional Def. Expense Limit $1,000,000) Ironshore Insurance Company, “A” rated carrier for a premium of $63,567 Total limit of $2,000,000 to include both settlement and Defense expenses Bond Exclusions –Does not pick up bond coverage Prior and pending litigation backdated to 4/1/2016 AIG Insurance Company A rated carrier –Declined - unable to provide a complete quote. While IronShore was the low bidder, they did not meet all bid requirements including Bond exclusion, Telecommunication Claims Defense exclusion and coverage backdated to April 1 2016. Alternatives:Consider RSUI Option 2 above at Additional Defense Expense Limit of $2,000,000 for $75,565 or, Rely totally on available funds for the payment of any judgments which may be rendered directly against entity's public officials. Recommendation:Approve coverage quoted RSUI Insurance Company for a one year period for a premium of $68,695 for $2,000,000 in coverage and an SIR of $250,000. Funds are Available in the Following Accounts: 611-01-5212/5231101 REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Finance Committee Meeting 4/12/2016 1:20 PM Forensic Audit of SPLOST VI Department:Clerk of Commission Presenter: Caption:Forensic Audit of SPLOST VI. (Requested by Commissioner Lockett) (Referred from February 23 Finance Committee) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance Committee Meeting 4/12/2016 1:20 PM James Reed Department:Clerk of Commission Presenter: Caption:Presentation by Mr. James Reed on behalf of his mother, Ms. Pensecola Reed, regarding an error involving her senior exemption dating back to 2003. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance Committee Meeting 4/12/2016 1:20 PM Minutes Department:Clerk of Commission Presenter: Caption:Motion to approve the minutes of the Finance Committee held on March 8, 2016. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: