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Home My WebLink AboutMinutes - Minutes - Risk Management and Worker's Compensation Trust Board - Meeting Date: 10/25/2023Glendale A R I z o N A MINUTES WORKERS' COMPENSATION TRUST FUND BOARD CITY HALL HUMAN RESOURCES TRAINING ROOM 5850 W. GLENDALE AVE. GLENDALE, ARIZONA 85301 OCTOBER 25, 2023 10:00 A.M. ROLL CALL Chair Deadorff opened the meeting at 9:58 AM Present: Gary Deadorff, Chair Ray Malnar, Vice Chair Vicki Rios, Board Member Raymond Johnson, Board Member Also Present: Kathleen Thomas, Risk and Safety Analyst Lorena Sanchez-Zumph, Workers' Compensation and Risk Program Manager Sam Garza, Risk and Safety Program Manager Ashley Wallace, Assistant City Attorney Stephanie Guizar, Risk Management Specialist 2. CITIZEN COMMENTS: NONE 3. OPEN MEETING LAW REFRESHER Was discussed in the Risk Management portion of the board meeting. 4. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION -Upon a public majority vote of a quorum of the Risk Management Trust Fund Board, the Board may hold an executive session, which will not be open to the public, regarding any item listed on the agenda but only for the following purposes: (i) discussion or consideration of records exempt by law from public inspection (A.R.S.§ 38-431.03(A)(2)); and (ii) discussion or consultation for legal advice with the city's attorneys (A.R.S. § 38-431.03(A)(3)). Executive Session Legal Matters A. The Risk Management Trust Fund Board will meet with representatives from the City Attorney's Office and Risk Management to receive an update, discuss, and consult regarding the City's position in pending or contemplated litigation, including settlement discussions conducted in order to avoid or resolve litigation. (A.R.S. § 38-431.03(A)(3) and (4)) Motioned by Board Member Raymond Johnson, seconded by Vice Chair Ray Malnar to enter into Executive Session at 10:00 AM. AYE: Board Member Raymond Johnson Vice Chair Ray Malnar Board Member Vicki Rios Chair Gary Deadorff Passed 5. DISCUSSION AND POSSIBLE ACTION ON WORKERS' COMPENSATION CLAIMS AND LAWSUITS 6. MOTION TO RECONVENE REGULAR SESSION at 10:25 Motioned by Vice Chair Ray Mainar, seconded by Board Member Raymond Johnson to adjourn executive session and return to open session. AYE: Board Member Raymond Johnson Vice Chair Ray Mainar Board Member Vicki Rios Chair Gary Deadorff Passed DISCUSSION AND POSSIBLE ACTION ON THE FINAL FY 2023/2024 WORKERS' COMPENSATION EXCESS INSURANCE PROGRAMS At the May 3, 2023, board meeting, the Trustees approved renewal of the excess workers' compensation insurance not to exceed $500,477. Our broker, Alliant Insurance Services, was successful in renewing the program for less than the projection of $20,000. Safety National Casualty Corporation is the excess carrier. The policy term is 7/1/2023 to 7/1/2024, estimated payroll of $160,052,353. The amount paid for the excess insurance ($480,477) was included in the FY 2023/2024 budget. The annual self -insured retention for presumptive losses is $2,500,000 and $2,000,000 for all other types of losses. Board Member Raymond Johnson asked if we have a Wildlife Park? Kathy Thomas replied, No. No other discussion. 8. *DISCUSSION AND POSSIBLE ACTION ON THE INDUSTRIAL COMMISSION OF ARIZONA (ICA) CONTINUATION OF SELF-INSURANCE WITHOUT POSTING A SECURITY DEPOSIT FOR CALENDAR YEAR 2024 Arizona Revised Statutes (ARS) 11-981 allows a city to self -insure its workers' compensation program for the management, administration and direct payment of workers' compensation benefits. The Industrial Commission of Arizona (ICA), in accordance with Arizona Administrative Rules, Article 15, annually requires self -insured entities to provide information relating to their claims and liabilities to renew their self -insured status. A public entity may seek authority to renew its self-insurance authority if the renewal application, documentation and information, request for waiver of security deposit form, current actuarial report, workers' compensation liability form, and audited comprehensive financial report is received on or before the renewal date (January 1). Lorena Sanchez presented the Board with the annual report on Self -Insurance activities with ICA Vice Chair Ray Mainar commented that the WC Fund balance might represent an excess that could reduce premiums. Lorena Sanchez replied that the upcoming actuarial would help with that determination. Board Member Raymond Johnson asked if the claims and reserves could trigger additional reviews. Lorena Sanchez answered that, fortunately that hasn't happened and that the fund is constantly monitored. Board Member Raymond Johnson again asked if there were departmental triggers that could trigger a review in place. Lorena Sanchez replied that there is an ongoing fund balance review and that when catastrophic losses occur, many experts are consulted and ICA balances are constantly monitored. Board Member Raymond Johnson again asked what would trigger a call to the Board? Lorena replied that the board would be notified for any catastrophic event. Board member Raymond Johnson also asked if there was excess insurance over our Self -Insured limits? Lorena commented that we had excess insurance, and they would be notified of potential exposure to the City of Glendale's SIR. Board Member Vicki Rios commented that all departments also budget catastrophic reserves. Board Member Raymond Johnson asked how that was calculated. Board Member Vicki Rios answered that it is calculated by an appropriate percentage of the budget. 9. DISCUSSION AND POSSIBLE ACTION OF WORKERS' COMPENSATION FISCAL -YEAR (FY) 2023/2024 REVENUE, EXPENSES AND FUND BALANCE A spreadsheet of the Workers' Compensation Trust Fund FY 2023/2024 revenue, expenses and fund balance is included in your board packet. Staff will provide an explanation of revenue received, expenses paid and the ending fund balance as of October 6, 2023. The information provided in the spreadsheet is on a budget basis. Lorena Sanchez gave a presentation of the Budget Balance as prepared by the Finance Department. Vice Chair Ray Mainar asked if the Council super -funded and allocated additional dollars to the fund. If over -funded, these funds get distributed back to the General Fund. Board Member Vicki Rios answered that she thought it was just a one-time extra allocation of about $845,000. The additional amount the city thought, would be needed to cover cancer claims. Vice Chair Ray Mainar asked if that was also for FY24 as well. Board Member Vicki Rios didn't think they were funded this year. The State Fund was set up to cover cancer claims. Each city is supposed to file for reimbursement from this state fund. Lorena added that additional funds come from departments based on actuarial funding needs. Board Member Vicki Rios joked that these were based on normal budget allocations. What goes up must come down! Sanchez added that CorVel reports claim costs are going higher, and durable medical equipment is surging. This has been a trend for the last 5 years. Board Member Johnson chuckled as he stated that at least our property taxes have gone down. 10. DISCUSSION AND ACTION ON RISK MANAGEMENT AND WORKERS' COMPENSATION TRUST FUND FY 2022/2023 ANNUAL REPORT TO CITY COUNCIL Was addressed at 10:51 AM in the Risk Management portion of the board meeting. No further discussion was noted. Motioned by Chair Gary Deadorff, seconded by Vice Chair Ray Malnar to accept Risk Management and Workers' Compensation Trust Funds 2023 fiscal year end report. AYE: Board Member Raymond Johnson Vice Chair Ray Malnar Board Member Vicki Rios Chair Gary Deadorff Passed 11. DISCUSSION AND ACTION ON WORKER'S COMPENSATION TRUST FUND CHAIR AND VICE CHAIR RECOMMENDATIONS The Government Services Committee Board and Commission policy requires the City Council to appoint or reappoint the new chair and vice -chair of all boards at a meeting in January. The policy requires the staff to place an item on the board's agenda to discuss and recommend the chair and vice -chair for the upcoming year. The Risk Management Trust Fund city ordinance, Art. 5, Division 5., Section 2-204 and Workers' Compensation Trust Fund city ordinance, Art. 5, Div. 6, Section 2-217 provides that the mayor will designate the chair. Staff will provide your recommendations to Government Services and Mayor. Gary Deardorff is currently our Chair and Raymond Johnson is our Vice -Chair. Their appointment expires on January 31, 2024. The Board should discuss who they would like to recommend for appointment. A motion is needed to appoint an individual for each position. The recommendations made in this meeting will also apply to the Workers' Compensation Trust Fund board chair and vice -chair positions. Staff has recommended the motion below. Motioned by Vice Chair Ray Malnar, seconded by Board Member Vicki Rios to recommend Raymond Johnson as Chair fo the Risk Management Board and Workers Compensation Board for a 1-year term beginning February 1, 2024. AYE: Board Member Raymond Johnson Vice Chair Ray Malnar Board Member Vicki Rios Chair Gary Deadorff Passed Motioned by Board Member Raymond Johnson, seconded by Board Member Vicki Rios to recommend Raymond Malnar as Vice -Chair of the Risk Management Board and Worker's Compensation Board for a 1-year term beginning February 1, 2024. AYE: Chair Gary Deadortf Vice Chair Ray Malnar Board Member Vicki Rios Board Member Raymond Johnson Passed 12. NEXT MEETING: RISK MANAGEMENT AND WORMERS' COMPENSATION TRUST FUND BOARD MEETING The next regular meeting of the Risk Management and Workers' Compensation Trust Fund Board will be held around February/March 2024, location to be determined. 13. ADJOURNMENT Motioned by Vice Chair Ray Malnar, seconded by Board Member Vicki Rios to adjourn the meeting at 10:53 AM. AYE: Board Member Raymond Johnson Vice Chair Ray Malnar Board Member Vicki Rios Chair Gary Deadorff Passed The Workers' Compensation Trust Fund Board meeting minutes of October 25, 2023 were submitted and approved this 17th day of May, 2024. M-I c6LAY�A2rsert Michael Andersen Recording Secretary