06262012ssmHARNETT COUNTY BOARD OF COMMISSIONERS
Minutes of Special Session
June 26, 2012
The Harnett County Board of Commissioners met in special session on Tuesday, June 26, 2012,
in the Commissioners Meeting Room, County Administration Building, 102 East Front Street,
Lillington, North Carolina.
Members present:
Timothy B. McNeill, Chairman
Dan B. Andrews, Commissioner
Gary House, Commissioner
Jim Burgin, Commissioner
Member Absent: Beatrice B. Hill, Vice Chairman
Staff present: Scott Sauer, County Manager
Tony Wilder, Deputy County Manager
Dwight Snow, Staff Attorney
Sylvia Blinson, Finance Officer
Margaret Regina Wheeler, Clerk to the Board
Melinda Bethune, Harnett County Risk Manager, distributed a handout to Commissioners listing
the quote to consider for the 2012 -2013 Property and Liability Insurance. The county had
previously budgeted $884,000 for property and liability insurance which was considered a high
quote received by NCACC. Mrs. Bethune told commissioners she only received one true
prepared quote which was by One Beacon/VFIS at $781,988. It was noted that VFIS provides
coverage for fire and rescue. Staff noted One Beacon provides Failure and Supply Coverage
and coverage for Sexual and Physical Abuse for the jail. Staff also noted that Travelers provided
an estimated premium number but not an actual quote of approximately $800k (excludes ESV),
HCC provided a premium number but not an actual quote of $780k with a $25k deductible
(excludes ESV), and NCACC provided a premium number but not an actual quote of $884k
(includes ESV)
Mrs. Bethune reported some large claims would be complete this year however she said several
companies had declined to quote the county for property and liability insurance. Commissioner
Burgin asked to postpone the vote, due to the increase, stating he could make some calls and try
to get a lower premium; mentioning Hartford and Cincinnati. Commissioners discussed and
June 26, 2012 Special Session Minutes
Harnett County Board of Commissioners
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questioned the possible reasons for such an increase in premium. Mr. Snow questioned if there
was anything in the industry such as being "blackballed ". Commissioner Burgin said that
companies typically look at frequency of claims which is the big indicator.
Commissioner Burgin explained the binder process which is a legal document stating coverage
for a period of time and explained the county would be covered by a company with a binder even
if they had not finalized the agreement with that company.
Commissioner Burgin moved to accept One Beacon and VFIS's quote of $781,988 for 2012-
2013 Property and Liability Insurance contingent upon the fact that no lower bids were received
by Friday, June 29, 2012. Commissioner Andrews seconded the motion which passed
unanimously.
Ms. Bethune also discussed the 2012 -2013 Worker Compensation — Self Insured Options listed
on the handout. Key Risk & Safety National offered quotes for both $600,000 deductible with a
$142,585 premium and $750,000 deductible with a $125,821 premium. Mrs. Bethune
recommended the County stay at a $600,000 deductible for Workers Compensation.
Mrs. Bethune responded that the county has only had one claim that exceeded the $600,000.
Mrs. Bethune did not have information regarding the county's experience mod nor loss history
as requested by Commissioner Burgin. Mrs. Bethune left the meeting to verify if the county has
a stop loss policy which commissioners believe the county does.
Staff presented a draft agreement of the First Choice Agreement for the Provision of Professional
Health Services for the employee health clinic. Janet Smith, staff attorney, noted the proposal
document that Mrs. Sheila Simmons originally presented to the Board would be incorporated
into the agreement.
Commissioner Burgin asked about the health promotion seminars that would be provided and
also asked that the agreement include the hours for service for county employees between 8 and
noon as discussed. Commissioner Burgin questioned language in the agreement related to billing
that stated reimbursement of supplies, travel, etc. as he believed the agreement would be set -up
on a per visit charge basis and said we would not be asking them to travel. Mrs. Smith shared his
concern stating she believes the agreement is a boiler plate and noted the county had just
received this infoimation. Commissioner Burgin requested the addition of language of "binding
arbitration" but Mrs. Smith said the Legal Department prefers "mediation ". Commissioners
asked staff to work on the agreement and bring it back to the Board at a later date.
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Harnett County Board of Commissioners
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Commissioner House moved that the Board go into closed session to 1) accept information from
and to consider and give instruction to the legal staff concerning the handling of certain claims,
and 2) to discuss certain personnel matters. This motion was made pursuant to N.C. General
Statute Section 143- 318.11(a)(3) &(6). Commissioner Burgin seconded the motion which passed
unanimously.
Before going into closed session, Commissioner Burgin thanked Chairman McNeill for the way
he handled the budget process and felt he did a good job leading them through that.
Immediately following closed session, Mrs. Bethune reported that the County does have a stop
loss policy that requires them to pay up to $3.4 million out of pocket. If the county opted for the
$750,000 deductible, the stop loss cap would be $3.2 Million. Mrs. Blinson said staff had
budgeted an approximate $984,000 for workers compensation in 2012 -2013.
Commissioner Burgin said he would have thought we would have seen either a leveling or some
savings for workers compensation based on things we have implemented and given there were
no new claims within the past year He said he was also surprised Key Risk had not gotten us the
infoimation sooner. Commissioner Burgin said he would call the state and get the county's
experience mod.
Commissioner Burgin moved to approve Key Risk & Safety National's quote of $142,585 for
2012 -2013 Workers Compensation contingent upon the fact that no lower bids were received by
Friday, June 29, 2012. Commissioner House seconded the motion which passed unanimously.
Chairman McNeill recognized Mr. Hubert Beckwith, who had joined the meeting, but Mr.
Beckwith said he just needed to speak with the county attorney and Health Director John Rouse
about a matter.
Commissioner Burgin moved to adjourn the meeting at 10:05 am. Commissioner Andrews
seconded the motion which passed unanimously.
Timothy
cNeill, Chairman
6__
et Regina ]Cheeler, Clerk
June 26, 2012 Special Session Minutes
Harnett County Board of Commissioners
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