Board of Trustees Minutes March 16, 2016

Transcription

1 A meeting of the Board of Trustees of the Arizona Municipal Risk Retention Pool (AMRRP), an Arizona non-profit corporation, was called and held on at the League of Arizona Cities & Towns in Phoenix. Trustees present: Others present: Scott Barber, Board President, Florence Bill Sims, Sims Murray Kristy Brusso, Bullhead City Ken Strobeck, League of AZ Cities & Towns Fred Carpenter, Payson Mary Donovan, Insight Investment Jean Poe, Board Vice President, Buckeye Lori Boskin, Triage Now Rudy Rodriguez, Cottonwood Darren Schenck, Triage Now Kelly Udall, Board Vice President, Sahuarita Brian Carmichael, City of Surprise Jackie Walker, Secretary/Treasurer, Kingman Robert Wingo, City of Surprise Alison Zelms, Prescott Peter Prynkiewicz, Littler Mendelson Trustees not present: Joe Heatherly, Town of Miami Jackie Baker, Camp Verde Carol Brown, Town of Camp Verde Justin Pierce, Pierce Coleman Steve Coleman, Pierce Coleman Staff present: Ed Bantel, Tiffani Burleson, Jim Gill, Shala Morley, Jon Paulsen, Sheri Reintjes, Annette Schmidt (via phone), and Alexandria Selapack 1. Call to Order Barber called the meeting to order at 10:03 a.m. 2. Call to the Public There was no response to the Call to the Public. 3. Consent Agenda 3.1 Approve November 20, 2015 Board Meeting minutes 3.2 Approve November 20, 2015 Board Meeting-Executive Session minutes 3.3 Approve 2015 Board of Trustees Retreat Notes 3.4 Receive December 17, 2015 Finance Committee minutes 3.5 Review Draft March 10, 2016 Finance Committee minutes 3.6 Review Draft February 11, 2016 Loss Control Committee minutes 3.7 Receive Mutual Boiler Re profit sharing disbursement in the amount of $9, The Board unanimously carried a motion made by Carpenter and seconded by Poe to approve all items on the consent agenda as presented. In order to accommodate the several guests in attendance, Barber elected to move several agenda items to the beginning of the schedule. 4. Town of Miami Status Update 1

2 Bantel reported the Town is behind in premium payments in the amount of $37,823 for the 14/15 policy, including two $500 deductibles. Town Manager Joe Heatherly reported the Town has been working over the last 14 months to correct mistakes from the past and has implemented improved recordkeeping, a new accounting system, and is getting caught up on audits. He reported the Town will make a payment in the amount of $16,000 on March 18, and will pay the balance on April 8, The Town s March, 2016 payment will be made on April 22, 2016, bringing the Town current on all payments. Sims advised the Board does not need to take action, as the previously approved payment arrangement with the Town of Miami stands. Heatherly exited the meeting following his presentation. 5. Peterson vs. City of Surprise, Claim #130D2818, Request for Appeal Barber reported City of Surprise Attorney Robert Wingo and Peter Prynkiewicz of Littler Mendelson were in attendance to discuss the facts of the trial request the Board of Trustees authorize an appeal. Sims advised the discussion should take place in Executive Session. The Board recessed the regular meeting and entered into Executive Session at 10:17 a.m.; the Board exited Executive Session and reconvened the regular meeting at 10:33 a.m. 6. Triage Now Lori Boskin and Darren Schenck of Triage Now gave a brief presentation, outlining their program and the services it provides. The program is designed to reduce costs for Members through call-in triage services, which can drastically reduce emergency room visits for nonurgent work injuries. Jean Poe and Brian Carmichael spoke briefly about how the program has benefitted their respective municipalities. Staff recommended the Board of Trustees approve a budget adjustment in the amount of $16,975 for implementation to enter into an initial agreement with Triage Now and encourage all Members to sign up. Reintjes noted that annual renewal is reduced by half of this cost. The board unanimously carried a motion made by Carpenter and seconded by Poe to enter into an initial annual agreement with Triage Now, and approve a budget adjustment in the amount of $16, Year-end Investment Report Mary Donovan provided a brief 2015 investment report, focusing on the Pool s investment returns and distribution of compliant versus non-compliant holdings. She opined that the Pool s portfolios are very strong and performing as expected in the current market. Donovan exited the meeting following her report. 8. Reports and Updates 2

3 The following reports were made: Executive Committee-none Finance Committee-none Loss Control Committee-Bantel reported he is working with Committee chair Jill Adams in a continued effort to ensure the Committee s activities are relevant and effective. Walker reported the Committee members are excited to attend the Mini Retreat in June. League of Arizona Cities and Towns-Strobeck provided a brief report on several legislative initiatives: o SB1487- this bill would allow for withholding of revenue if the Attorney General determines a city violated state law. An investigation would be triggered with a single request to investigate. Strobeck reported he is hopeful the bill will be stopped on the House floor. o HB2483- this bill, which recalculates shared revenue using annual census info, continues to move forward. o HB2568- formation of community facilities districts- automatic for developments of large size and would put private company heads in charge of spending tax dollars o HB2107- this bill would allow for licensing and regulation of substance abuse recovery homes. Legal Advisor- Sims reported the League and Southwest Risk were helpful on the Forestry issue. Through assistance from the League, Sims worked out a reasonable agreement and went to ADOT. Sims reported he should have the language to review next week, and is hopeful that the revised terms are more favorable and fair to all parties involved. Administrator-Burleson reported the annual Board of Trustee elections process is rapidly approaching. Staff will distribute the Designated Voting Representative letter, and copy the former designee at the suggestion of the Board. President- Barber revisited the Healthy Member/Good Governance protocol document. The Board decided it should revisit the policy ad document at the Mini Retreat in June. The Board recessed for lunch at 12:05 p.m. and reconvened at 12:24 p.m. 9. Independent Investment Manager The Board unanimously carried a motion made by Rodriguez and seconded by Carpenter to select and authorize staff to enter into a contract with PFM Asset Management for the independent management of AMRRP s investment portfolio, as recommended by the Finance Committee Year-end Finance Report Schmidt provided a brief overview of 2015 year-end results, noting that all figures are unaudited. Highlights from her report included the following: Net Earned Premium in 2015 totaled $29 million, a 7 percent increase from the prior year AMRRP s Combined Ratio for 2015 was 87 percent, compared to 77 percent in 2014 Gross Written Premium grew by $2 million in 2015, the majority of that figure being WC As in previous years, losses were driven by the Workers Compensation line of business 3

4 Investment returns in 2015 totaled $726 thousand, a decrease from the prior year, but in line with the market during that period and as expected by the Investment Manager AMRRP s Member Surplus at the end of 2015 totaled $33.4 million, a $4.4 million increase over Rate Recommendation Rodriguez reported the Finance Committee met, discussed at length, and ultimately agreed to recommend a 2.3 percent overall rate increase for the 2016 policy period. The Board unanimously carried a motion by Udall and seconded by Rodriguez to approve a 2.3 percent rate increase for the 2016 policy period as recommended by staff and the Finance Committee. 12. Dividend Policy Recommendation Rodriguez reported that the Finance Committee had tabled the Dividend Policy recommendation at its March 10, 2016 meeting and had requested staff provide general criteria which the Committee can use to create the mechanics of its recommended policy, including pros/cons and a list of standard criteria Dividend Recommendation Rodriguez reported the Finance Committee met and discussed at length whether to recommend a dividend for the 2015 policy period, and ultimately recommended the Board decline to declare a dividend. The Board carried a motion made by Carpenter and seconded by Brusso to decline to declare a dividend for the 2015 policy period, as recommended by the Finance Committee. 14. Coverage Form Revision Project Reintjes reported the coverage revision project is near completion and will be ready before the majority of the Membership s renewals in July, She reported the policy is easier to read and will be more difficult for our competition to compare to, and briefly outlined the proposed revisions. The Board unanimously carried a motion made by Carpenter and seconded by Udall to approve the coverage form revisions, as recommended by staff and outside counsel Public Safety Assistance Program Barber reported he has been working with staff to replace the current program with something of more substance. We are still working on the consultant piece and will bring this back to the Board for approval in June. 16. Drone Coverage 4

5 Bantel briefly discussed the recent use of drones by municipalities, noting that the Pool s coverage form does not currently cover them. He added that competitors typically do not cover drones, but he has worked with another Berkley company that will broker coverage for Pool members with a $1 million limit and a very strict policy. The Board unanimously carried a motion made by Carpenter and seconded by Poe to decline to cover drones, and to authorize brokering of coverage if a member requests coverage Mini Retreat Planning Barber briefly reviewed a preliminary schedule of events for the June Mini-Retreat, reminding the group that the Board had previously discussed the possibility of including the Finance and Loss Control Committees to attend. He reported that a more detailed agenda will follow as the event nears. Morley reported requests for proposals had been sent to three Scottsdale-area resorts: Scottsdale Plaza Resort, Doubletree Paradise Valley Resort, and FireSky Resort. The Board reviewed estimated costs for each of the sites; staff recommended FireSky Resort due to a variety of factors, including cost, concessions, accommodations, and past service. The Board unanimously carried a motion made by Poe and seconded by Zelms to select the FireSky Resort as the venue for the 2016 Board of Trustees Mini-Retreat as recommended by staff and to direct staff to send Mini Retreat invitations to all members of the Loss Control and Finance Committees. 18. Executive Session The Board recessed the regular session and entered into Executive Session at 1:30 pm; the Board exited Executive Session and reconvened the regular meeting at 2:30 p.m. 19. Action on Executive Session The Board unanimously carried a motion made by Carpenter and seconded by Poe to approve the November 20, 2015 Executive Session minutes as presented; the Board unanimously carried a motion made by Zelms and seconded by Carpenter to approve renewal of AMRRP s flat-fee agreement with Pierce Coleman as discussed in Executive Session; the Board unanimously carried a motion made by Udall and seconded by Poe to approve all other items as discussed in Executive Session. 20. Adjourn The Board unanimously carried a motion made by Rodriguez and seconded by Zelms to adjourn the meeting at 2:31p.m. 5