Board of Trustees Minutes January

Transcription

1 A meeting of the of the Arizona Municipal Risk Retention Pool (AMRRP), an Arizona non-profit corporation, was called and held on January 19, 2018 at the League of Arizona Cities & Towns in Phoenix. All Trustees were present: Jackie Baker, Camp Verde Brian Carmichael, Surprise Fred Carpenter, Payson Jean Poe, Board Vice President, Buckeye Rudy Rodriguez, Board President, Cottonwood Kelly Udall, Sahuarita Jackie Walker, Board Secretary/Treasurer, Kingman Terry Hinton, Thatcher (via phone) Brian Richards, Snowflake (via phone) Others present: Bill Sims, Sims Murray Ken Strobeck, League of AZ Cities & Towns Staff present: Ed Bantel, Tiffani Burleson, Jim Gill, Sheri Reintjes, Kim Severson, Jody Achor, Susanne Kuester, Jack Goodwin (via phone), and Jon Paulsen (via phone) 1. Call to Order Rodriguez called the meeting to order at 10:09 a.m. 2. Call to the Public There were no Members of the public present. 3. Consent Agenda 3.1 Approve August 22, 2017 revised Board Meeting minutes. 3.2 Approve December 1, 2017 Board Meeting minutes. 3.3 Approve December 1, Executive Session minutes. 3.4 Receive December 19, 2017 Executive Committee minutes. 3.5 Receive December 19, 2017 Executive Committee Executive Session minutes. 3.6 Approve December 22, 2017 Board Meeting minutes. 3.7 Approve December 22, Executive Session minutes. 3.8 Review Draft January 5, 2018 Executive Committee minutes. 3.9 Accept final Investment Policy Approve amended 2018 Budget. 1

2 3.11 Approve revised 2018 Goals Designate Special Advisor/Nominating Committee Chair. The Board unanimously carried a motion made by Carpenter and seconded by Walker to approve all items on the Consent Agenda. 4. Reports and Updates The following reports and updates were made orally at the meeting: Executive Committee No updates at this time. Finance Committee No updates at this time. Loss Control Committee- Walker and Bantel briefly discussed the details of the last committee meeting. Some of the highlights are: The Committee changed its name to Risk Management Committee. Tim Fisher of Goodyear was elected as the new chair of the Risk Management Committee. Roundtables will have the same topic at different locations throughout the year. The locations are Cottonwood, Show Low, and Marana. The first roundtable will be held in the next two months. Workshops for risk management are going to be organized and held throughout the year. A survey regarding best practices will be sent to the Committee in order to develop these workshops. The Risk Management Committee will meet after the next roundtable. League of Arizona Cities and Towns- Strobeck briefly reviewed the following: The legislature is wrapping up its second week. The governor released the budget. An additional 25 new auditors and collectors have been added to the budget. The $20 million assessment on cities, towns, and counties remains. PTSD presumption there are proposals to expand bills. There is a new bill that redefines a workday for employees. HB2032 regarding partisans elections was killed in committee. SB1487 Patagonia s heavy truck ordinance we won. Legal Advisor- No updates at this time. Administrator- Reintjes briefly updated the Board on the following: The NLC Mutual dividend is $15,021. Lake Havasu is interested in bidding. An updated application has been sent to them. We are now insuring Quartzsite for Property and Casualty. NFP, a nationwide organization, is now marketing for AMRRP. 2

3 Schools, health and county pools have joined us in the Opioid Litigation. An extensive bill was released which gives physicians strict guidelines regarding opioid prescriptions. Been in touch with NLC-RISC to see if any other pools want to join in the opioid litigation. President No updates at this time. 5. Annual Elections Process Burleson briefly reviewed the proposed process and timeline for the 2018 Trustee Election. Calls for nominations will be sent out electronically in June. Ballots will be counted by special advisor Strobeck, who will announce them at the Annual Members Meeting and the Board Meeting in August. The Board unanimously carried a motion made by Walker and seconded by Poe to approve the process and timeline for the 2018 Trustee election as presented. 6. League Memorandum of Understanding Annual Review Burleson reviewed the League Memorandum of Understanding which documents the value of the Pool s relationship with the League of Arizona Cities and Towns. Some of the benefits include marketing, helping with the annual election, and providing meeting space. 7. Investment Contract Pricing and Performance Review Burleson briefly reviewed PFM s investment contract pricing and performance review. PFM revised the investment policy, identified and addressed assets out of compliance with the Board s investment policy, and initiated a multi-asset class portfolio structure to improve returns. Assuming the June 30, 2017 investment portfolio balance, the new fee has increased to approximately $130,000, and returns will be expected to offset the increased cost. 8. CFD Update Sims and Reintjes updated the Board on Community Facilities District discussions among AMRRP s Members and the white paper authored by Scott Barber. The series of events leading to the decision before the Board were outlined: In 2010, AMRRP began offering CFD coverage with securities coverage sublimited at $100,000, and expense within the limits. Unlike in the past, Arizona allows a mixed governance CFD structure, combining municipal elected officials with a minimum of two Board members designated by the largest property owner in the district. In 2017, AMRRP s Board recommended higher limits for CFDs, available outside the pool, with the understanding that insurance could be brokered and secured. Even though staff had been assured that such insurance would be available, the broker recently notified staff that any insurance would include a securities exception. Historically, securities claims are infrequent but severe. 3

4 The Board unanimously carried a motion made by Udall and seconded by Carpenter to return to the coverage offering adopted in no-deductible CFD coverage with a $100,000 securities sublimit, inclusive of expense; in addition, to require developers in mixed governance CFDs to obtain insurance coverage. 9. Law Enforcement Assistance Program (LEAP) and AACOP Update Walker briefly updated the Board on LEAP and AACOP. Some of the highlights are: The 175 standards to maintain for accreditation is completed. Job description is completed. Salary surveys completed. A write up of anticipated deliverables has been requested. 10. Public Practice Legal Seminar Update Reintjes briefly discussed the Public Practice Legal Seminar that will be held in May. The speakers and topics of discussion have been lined up. Bill Sims, Justin Pierce, and Jim Jellision will be speakers at this event Loss Control Goals Walker stated the goals were discussed earlier in their committee report and update. There is nothing further to report. 12. Revised Membership Agreement Reintjes briefly reviewed the revised Membership agreement. Sims stated that the Board s recommended revisions rescind the prodigal son/daughter policy which was only a policy. Sims recommended the three-year bar from the Pool should apply if the Member is no longer obtaining WC or P&C coverage. It does not apply if the Member remains in the pool with one line of coverage. Sims also stated policy number 8 needs to be removed from the agreement. The name also needs to be changed from Loss Control to Risk Management. The Board unanimously carried a motion made by Carpenter and seconded by Poe to approve the revised Membership agreement with the aforementioned changes. 13. Property Appraisal Update Bantel updated the Board on the Property Appraisal Program. He stated the Members are looking forward to this program. He discussed having these appraisals done within the year instead of the approved five-year roll out as many Members do not want to wait for their appraisals. The Board requested a budget with the $250,000 up-front cost for this program be brought before them at the meeting in March. 14. NLC- RISC Conference Reintjes briefly reviewed the upcoming 2018 conferences and advised the Board to let her know if anyone is interested in attending any of the conferences. 4

5 15. Retreat Planning The Board discussed a few different locations for this year s retreat. It was decided Tubac was the first choice as this year s location; Sedona Rouge is the second choice. Kuester will look into the availability and cost for the resort in Tubac. 16. Executive Session The Board recessed the regular meeting and entered into Executive Session at 12:30 p.m.; the Board exited Executive Session and reconvened the regular meeting at 12:40 p.m. 17. Action on Executive Session The Board unanimously carried a motion made by Walker and seconded by Poe to approve the request for settlement authority, Claim # Kaufman v. Town of Huachuca City. 18. Adjourn The Board unanimously carried a motion made by Carpenter and seconded by Poe to adjourn the meeting at 12:42 p.m. 5