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HomeMy WebLinkAbout06262012ssmHARNETT 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 Page 1 of 3 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. June 26, 2012 Special Session Minutes Harnett County Board of Commissioners Page 2 of 3 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 Page 3 of 3