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HomeMy WebLinkAbout2018-03-13 Meeting Minutes Finance Committee Meeting Commission Chamber - 3/13/2018 ATTENDANCE: Present: Hons. Frantom, Chairman; Sias, Vice Chairman; Hasan and Guilfoyle, members. Absent: Hon. Hardie Davis, Jr., Mayor. FINANCE 1.Approve Excess Workers’ Compensation Insurance with Safety National With Statutory limits and a $750,000 Self Insured Retention (SIR – otherwise known as the deductible) to cover all positions for a premium of $369,658. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4-0. Commissioner Sammie Sias Commissioner Ben Hasan Passes 2. Motion to approve the minutes of the Finance Committee held on February 27, 2018. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4-0. Commissioner Sammie Sias Commissioner Ben Hasan Passes 3. Request Human Resources Department provide the following: 1)Detail presentation on the retirement briefing and option that all employees are presented when they retire and 2) Evidence that the Health Care Plan is Item Action: Rescheduled www.augustaga.gov offered to the employee that they must either accept or reject and 3)Evidence from our Health Care Plan specifically authorizes the carry over after retirement up to the age of 65 when Medicare/Medicaid becomes effective and 4) Provide commissioners all presentation information electronically. (Requested by Commissioner Sammie Sias) Motions Motion Type Motion Text Made By Seconded By Motion Result Defer Motion to refer this item to the next committee meeting, Motion Passes 4-0. Commissioner Sammie Sias Commissioner Ben Hasan Passes Finance Committee Meeting 3/13/2018 1:05 PM Attendance 3/13/18 Department: Presenter: Caption: Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance Committee Meeting 3/13/2018 1:05 PM 2018 Renewal of Excess Worker's Compensation Insurance Department:Finance - Risk Managment Division Presenter:Joe Crozier, Judy Blackstone Caption:Approve Excess Workers’ Compensation Insurance with Safety National With Statutory limits and a $750,000 Self Insured Retention (SIR – otherwise known as the deductible) to cover all positions for a premium of $369,658. 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. Augusta’s current SIR is $1,000,000. Stated simply each worker’s compensation claim has the potential cost of $1,000,000 to the government before the excess coverage policy takes effect. Analysis:Past claim experience, current claim exposure, and potential future cost were considered. It was determined that an SIR of $750,000 is more appropriate for our level of risk. Corvel, our Workers’ Compensation Third Party Administrator, was requested to obtain quotes from A or A+ companies. Corvel received the following quotes from the following companies: Safety National Casualty XL Insurance ACE/Chubb Prosight Specialty Insurance The following companies declined to provide an offer: Midwest Employers Casualty Company Hartford Insurance Company PMA Group Sompo Japan Insurance Company of America Old Republic Risk Management Financial Impact:Lowering the SIR from $1,000,000 to $750,000 lowers the government’s maximum exposure by $250,000 for each claim, but also has a higher premium . Reducing the exposure level of only one claim would provide a significant financial return over the increased premium amount. Alternatives:1) Continue current level of coverage at $1,000,000 SIR with an increased level of exposure of $250,000 per claim for premium of $304,819 or 2) Drop coverage accepting full exposure/cost for any catastrophic job related injury. Recommendation:Approve coverage with Safety National Casualty (lowest premium quote) with SIR of $750,000 for all positions with Statutory Limit for a deposit premium of $369,658. Funds are Available in the Following Accounts: 621 01 5233 55.21110 WC/Risk Management REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission -frA Finance Committee Meeting Commission Chamber - 2lz7l2ol8 ATTENDANCE: Present: Hons. Frantom, chairman; Sias, vice chairman; Hasan and Guilfoyle, members. Absent: Hon. Hardie Davis, Jr., Mayor. FINANCE 1. Motion to approve the minutes of the Finance Committee held on February 13, 2018. Made By Seconded By Commissioner Commissioner Ben Sammie Sias Hasan www.auqustaga.gov Item Action: Approved Motions Motion Type Approve Motion Text Motion to approve. Motion Passes 4-0. Motion Result Passes Finance Committee Meeting 3/13/2018 1:05 PM Minutes Department:Clerk of Commission Presenter: Caption:Motion to approve the minutes of the Finance Committee held on February 27, 2018. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance Committee Meeting 3/13/2018 1:05 PM Personnel Retirement Briefing Department: Presenter:Commissioner Sammie Sias Caption:Request Human Resources Department provide the following: 1) Detail presentation on the retirement briefing and option that all employees are presented when they retire and 2) Evidence that the Health Care Plan is offered to the employee that they must either accept or reject and 3)Evidence from our Health Care Plan specifically authorizes the carry over after retirement up to the age of 65 when Medicare/Medicaid becomes effective and 4) Provide commissioners all presentation information electronically. (Requested by Commissioner Sammie Sias) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: