ATTENDEES Officers. Directors Glenn County Office of Ed.

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1 ATTENDEES Officers Tri-County Schools Insurance Group Executive Committee Meeting Friday, November 14, 2014 Sutter County Superintendent of Schools Board Room 970 Klamath Lane, Yuba City, CA Sutter Union High School Dist. Ryan Robison President Pierce Joint Unified Daena Meras Vice President Yuba County Office of Ed. Cindy Sutfin Secretary Directors Colusa County Office of Ed. Feather River College Glenn County Office of Ed. Lake Tahoe Community College Maxwell Unified School Dist. Plumas Lake Elementary School Dist. Red Bluff Union High School Dist. Sierra Plumas Joint Unified Sutter County Sutter County Supt. of Schools Tahoe-Truckee Unified School Dist. Tehama County Department of Ed. Yuba City Unified School District Yuba Community College Dist. Julie Tucker David Burris Randy Jones Jeff DeFranco Danielle Wilson --absent Karen Borror --absent Jim Arkens Gail Atwood Tom Gemma Debbie Towne Robert Shemwell Kuldeep Kaur Employee Benefits Advisory Committee Sutter County Public Health Alice Williams-Root Sutter Union High School Dist. Lori Texeira Consultants Crowe Horwath Delta Health Systems Envision RxOptions Evans, Wieckowski & Ward USI Insurance Services Staff Executive Director Finance Officer Recorder Visitors Sutter County Superior Court Jennifer Hill Mary Kluegl, Joe Neff Sean Morrison, Carolyn Sarkisian Matt Evans Mike Bryant, Mike Krill, Steve Freeman, Alicia Scalzo Richard Hare Lynn Whitlock Dianna DeLashmutt Brenda Cummings 1

2 A. CALL TO ORDER President Robison called the meeting to order at 9:35 a.m. He noted that a quorum of the Executive Committee was present. B. COMMENTS FROM VISITORS None C. CONSENT AGENDA 1. APPROVAL OF MINUTES FOR AUGUST 15, 2014, SEPTEMBER 24-26, APPROVAL OF PAYMENTS FOR AUGUST, SEPTEMBER, OCTOBER, 2014 A motion was made by Vice President Meras to accept the minutes and payments. Secretary Sutfin seconded the motion which carried. D. REPORTS 1. PRESIDENT S REPORT President Robison reported that the Executive Director Search sub-committee met with Heather Renschler from Ralph Andersen and Associates to discuss the advertising brochure, to set the timelines for the search and tentative timelines to end the search. He announced that at the conclusion of this meeting will be the CORE meeting and asked everyone to stay for that meeting. 2. EXECUTIVE DIRECTOR S REPORT Richard Hare reported: o o Richard announced the Employees Benefit Advisory Committee (EBAC) met on November 13, The committee was presented with the draft copy of the goals from the Executive Committee Planning meeting in September. They were updated on Wellness Center and discussion was held on the newly required EpiPens that schools have to have on hand starting January 1, Richard said that he has paperwork from Mylan Pharmaceutical and that they are offering free EpiPens to qualified schools. They do need a prescription which the Wellness Center might be able to provide. More review of the requirements is needed. He also mentioned that the Good Samaritan law might not apply to our schools, so an insurance rider may have to be found. With the elections just held, the Republicans have gained the majority in both houses of Congress. They have stated a desire to repeal the Durable Medical Tax and the Reinsurance Fee. If that happens it will be reduce TCSIG expenses. 2

3 o o Richard reported that he met with David Nelson, Executive Director of Trindel JPA. They met to discuss the possibility of membership of individual public entity members, as a group or joint administration. The TCSIG Wellness Center Memorandum of Understanding with Paragon is being reviewed, as it has been TCSIG s desire to clarify that Paragon is a sub-contractor of Delta Health Systems. Since the inception of the Wellness Center TCSIG, Delta Health Systems and Paragon have been working on modifying the contract; however, Delta Health Systems has rejected the modifications proposed. Now, Delta Health Systems is proposing OMI as the new operator of the Wellness Center. OMI was contracted by Delta Health Systems/Paragon to install a replacement Electronic Medical Record (EMR). The EMR system at this point has not been installed satisfactorily; therefore other EMR systems are being reviewed, along with Wellness Center operators. E. INFORMATION AND DISCUSSION ITEMS 1. ENVISION RXOPTIONS REPORT ON FORMULARY CHANGES Richard introduced Sean Morrison and Carolyn Sarkisian from Envision RxOptions. They explained what the Performance Formulary Program was and the changes to the current formulary which are going to take place January 1, Sean Morrison stated that these changes were necessary due to negotiations as certain manufacturers are providing preferential pricing which will provide substantial savings to TCSIG. 2. EMPLOYER REPORTING REQUIREMENT ACA CODE SECTIONS 6055 AND 6056 Richard introduced Steve Freeman from USI Insurance Services who in turn introduced Alicia Scalzo a compliance attorney from USI Insurance Services, who presented information on ACA 6055 and 6056 required reporting. Joe Neff from Delta Health Services explained that they are waiting for the final forms to be released from the government in order to be able to program the system for reporting. Once the programming is complete, Delta Health Systems will be assisting the employers with the reporting requirements as much as they possibly can. President Ryan adjourned the meeting for a break at 10:50 a.m. President Ryan convened the meeting at 10:55 a.m. F. ACTION ITEMS 1. PRESENTATION OF INDEPENDENT AUDIT BY CROWE HORWATH Richard introduced Jennifer Hill from Crowe Horwath. Ms. Hill went over the information contained in the annual independent audit of Fiscal year 2013/2014. TCSIG has been given an unmodified opinion which Ms. Hill indicated was the best opinion they can give. She complimented the staff of TCSIG and Lynn Whitlock, TCSIG s Finance Officer for their cooperation in getting the information to her staff during the audit process. Kuldeep Kaur made a motion to receive and file the annual audit report. Julie Tucker seconded the motion which carried. 3

4 2. ADOPT 2015 GOAL STATEMENTS Richard Hare provided the Executive Committee with a listing of Goal Statements for He stated that the goals were amended to add one more per the Employers Benefits Advisory Committee. They asked that one more be added to address the reserve policy for all programs. After discussion, it was decided that number ten would read: Establish a target reserve level for all programs for FY 2015/2016 budget to stabilize rates over time. Julie Tucker made a motion to adopt the amended list of goals for 2015 with the added language. Gail Atwood seconded the motion which carried. 3. ANNUAL PLANNING MEETING REPORT AND CONFIRMATION OF LOCATION FOR 2015 Richard Hare briefly talked about the evaluations of the meeting location that were turned in. All of the evaluations were favorable regarding the Sacramento Embassy Suites. After discussion, it was determined that Sacramento Embassy Suites would be the site of the next planning meeting. Richard Shemwell made a motion to direct the staff to reserve the Sacramento Embassy Suites for the 2015 Planning Meeting. Julie Tucker seconded the motion which carried. 4. APPROVE CYBER LIABILITY COVERAGE Richard Hare explained that at the Executive Committee Planning Meeting cyber liability coverage was presented by Mike Krill of USI Insurance Services. Since that time there has been some high profile data breaches with some prominent businesses. It became more apparent that cyber coverage is necessary. Richard stated that he directed USI Insurance Services to obtain cyber liability coverage in order to lock in the rates offered and self-insurance retention level before the cost increased further. Gail Atwood made a motion to ratify staff s action in securing the subject cyber liability policy with Lloyd s of London through Paragon International Insurance Broker and appropriate $22,352 from the Property/Liability Program undesignated reserves to pay the premium. Robert Shemwell seconded the motion which carried. 5. MEDICAL PLAN AMENDMENT FOR OUT-OF-POCKET MAXIMUMS (OOP) Richard Hare reviewed the report which stated what the maximum out-of-pocket limits will be for 2015 for the medical plans and the Consumer Driven Health Plan (CDHP). The Affordable Care Act (ACA) limits for medical plans are $6,600 for the individual and $13,200 for a family. The Internal Revenue Service (IRS) out-of-pocket limits for High Deductible Health Plans like the CDHP are $6,450 for an individual and $12,900 for a family. Richard explained that it would be more efficient for the recording of co-pays in all medical plans to adopt the IRS standard limits. 4

5 Randy Jones made a motion to adopt the IRS limits for out-of-pocket limits for all medical plans. Julie Tucker seconded the motion which carried. 6. ADOPT PROPERTY/CASUALTY HIGH DEDUCTIBLE ACTIVITIES POLICY 317 Richard reviewed the report and the proposed policy. Mike Bryant from USI Insurance Services explained why the policy is important to anyone in the TCSIG Property/Casualty Program Robert Shemwell made a motion to adopt Policy 317. President Robison seconded the motion which carried. 11:30 a.m. President Robison adjourned the meeting. He announced that we would have the CORE Board meeting before Closed Session. 11:35 a.m. President Robison reconvened the Executive Committee Meeting. G. CLOSED SESSION President Robison called the meeting into Closed Session at 11:36 a.m. Attendees: President Robison, Vice President Meras, Secretary Sutfin, Julie Tucker, David Burris, Randy Jones, Danielle Wilson, Karen Borror, Jeff DeFranco, Jim Arkens, Gail Atwood, Tom Gemma, Debbie Towne, Robert Shemwell, Kuldeep Kaur, Matt Evans and Richard Hare. 1. Personnel Pursuant to Section 54957(b) and Section Negotiator: Richard Hare, Executive Director Attendees: President Robison, Vice President Meras, Secretary Sutfin, Julie Tucker, David Burris, Randy Jones, Danielle Wilson, Karen Borror, Jeff DeFranco, Gail Atwood, Tom Gemma, Debbie Towne, Robert Shemwell, Kuldeep Kaur, and Matt Evans. 2. Review of Executive Director Pursuant to Section 54957(b) and Section Negotiator: President Ryan Robison H. OPEN SESSION President Robison called the meeting into Open Session at 12:37 p.m. Attendees: President Robison, Vice President Meras, Secretary Sutfin, Julie Tucker, David Burris, Randy Jones, Danielle Wilson, Karen Borror, Jeff DeFranco, Gail Atwood, Tom Gemma, Debbie Towne, Robert Shemwell, Kuldeep Kaur, Steve Freeman, Matt Evans, Richard Hare, Lynn Whitlock and Dianna DeLashmutt. President Robison reported that the Executive Committee has authorized him to negotiate a new contract with Richard Hare for Executive Director Services. 5

6 I. ITEMS FOR NEXT AGENDA J. ADJOURNMENT President Robison called for a motion to adjourn the meeting. David Burris moved to adjourn the meeting. Gail Atwood seconded the motion which carried. The meeting was adjourned at 12:38 p.m. Respectfully submitted, Dianna DeLashmutt 11/14/2014 6