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Home My WebLink AboutMinutes - Minutes - Risk Management and Worker's Compensation Trust Board - Meeting Date: 10/25/2023 (3)Q-10i Glendale A R I Z 0 N A MINUTES RISK MANAGEMENT TRUST FUND BOARD CITY HALL HUMAN RESOURCES TRAINING ROOM 5850 W. GLENDALE AVE. GLENDALE, ARIZONA 85301 OCTOBER 25, 2023 8:30 A.M. CALL TO ORDER Raymond Johnson called the meeting to order at 8:35 AM ROLL CALL Present: Raymond Johnson, Board Member Gary Deardorff, Chair Ray Malnar, Vice Chair Vicki Rios, 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 3. CITIZEN COMMENTS Raymond Johnson announced no citizens were present, 4. OPEN MEETING LAW REFRESHER City Attorney Ashley Wallace presented and explained in detail the open meeting law following -A.R,S § 38-431.01 (A): -All meetings of any public body shall be public meetings and all persons so desiring shall be permitted to attend and listen to the deliberations and proceedings." and A.R.S. § 38-431.09(A): "It is the public policy of this state that meetings of public bodies be conducted openly and that notices and agendas be provided for such meetings which contain such information as is reasonably necessary to inform the public of the matters to be discussed or decided." Vice Chair Ray Malnar asked for clarification of the 30-day ratification clause in law. Ashley Wallace responded with more details of the ratification process. Chairperson Deardorff asked about a daisy chain meeting, emails and the difference between private discussions of just two members. Ashley Wallace responded that two was acceptable. Vice Chair Ray Malnar asked about hypothetical related to the law and Ashley Wallace responded with more details of the meeting law. 5. MOTION AND CALL TO ENTER INTO EXECUTIVE SESSION at 8.49 AM -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 Board Member Vicki Rios to enter into executive session AYE: Board Member Raymond Johnson Chair Gary Deardorff Vice Chair Ray Malnar Board Member Vicki Rios Passed 6• DISCUSSION AND POSSIBLE ACTION ON PROPERTY AND LIABILITY CLAIMS AND LAWSUITS 7. MOTION TO RECONVENE REGULAR SESSION at 9:18 AM. Motioned by Board Member Raymond Johnson, seconded by Chair Gary Deardorff to adjourn executive session and reconvene to regular session. AYE: Board Member Raymond Johnson Chair Gary Deardorff Vice Chair Ray Malnar Board Member Vicki Rios Passed 8. DISCUSSION AND POSSIBLE ACTION ON FINAL FY 2023/2024 PROPERTY AND LIABILITY INSURANCE AND EXCESS INSURANCE PROGRAM At the May 3, 2023 board meeting, the Trustees approved renewal of the property and liability insurance and excess insurance programs not to exceed $5.015,519. Working with our broker, Alliant Insurance Services, we were successful in renewing the program for less than the projections of $574,770.64, Information on each type of coverage, term, carrier, limits, deductible or self -insured retention, estimated program cost and actual premium is attached in your board packet. The amount paid for these contractual services was included in the FY 2023/2024 budget. Board Member Raymond Johnson asked about Boiler coverage and if Certificates of Inspection were issued. Kathy Thomas replied that she was unaware of this type of certificate or if we had any boilers. Board Member Raymond Johnson asked about whether property valuations were automatically increased and whether there was a coinsurance percentage provision. Kathy Thomas responded that Alliant appraised property every 5 years and had an automatic increase incorporated into the renewal values to correspond with inflation. Raymond Johnson commented that construction prices have been rising and that we did not want to be short-changing values. Kathy Thomas responded that the property was in a hard market. Raymond Johnson again stated that all policies usually have a coinsurance provision. Kathy Thomas advised that we have full replacement value coverage. 9. DISCUSSION AND ACTION ON RISK MANAGEMENT AND WORKERS' COMPENSATION TRUST FUND FISCAL YEAR 2022/2023 ANNUAL REPORT TO CITY COUNCIL Glendale City Ordinance, Chapter 2, Article V., Division 5, Risk Management Trust Fund, Section 2-204 and Division 6. Workers' Compensation, Section 2-17, Trustees item (a) states, in part: "..... Annually, the trustees shall submit a report to the city council as to the status of the risk management trust fund. Such report shall include a summary of all monies collected, and all payments made from the risk management trust fund since the last report and any recommendations the trustees deem necessary to meet their joint fiduciary obligations for administering the risk management trust fund....." Board Member Vicki Rios asked when Robert Papelian had left the Board. Lorena Sanchez responded that he left in the middle of the year. Vice Chair asked that his name be included in the report to the Council. Motioned by Vice Chair Ray Malnar, seconded by Board Member Vicki Rios to accept Risk Management and Workers' Compensation Trust Funds 2023 fiscal year end report as written or with changes indicated for submission to the City Council. AYE: Board Member Raymond Johnson Chair Gary Deardorff Vice Chair Ray Malnar Board Member Vicki Rios Passed 10, DISCUSSION AND POSSIBLE ACTION ON RISK MANAGEMENT TRUST FUND FY 2023/2024 REVENUE, EXPENSES AND FUND BALANCE A spreadsheet of the Risk Management Trust Fund FY 2023/2024 revenue and expenses and fund balance is included in your board packet. Staff will provide an explanation of revenue received, expenses paid and ending fund balance as of October 6, 2023. The information provided in the spreadsheet is on a budget basis. Kathy Thomas presented the Fund Balance report. Vice Chair Ray Malnar asked about the balance of prior years. Kathy Thomas responded about the ICA requirements and that all years met the requirements. Board Member Vicki Rios clarified Ray Malnar's question about the final fund balances of prior years. Vice Chair Ray Malnar added that the fund balance had doubled, which is why that was happening. Kathy Thomas responded that claims and reserves had increased and that the Actuarial will reflect that in upcoming discussion points. Board Member Vicki Rios commented that if there is a surplus, funds would not be returned to departments but premiums (or cost allocations) could be reduced in future years to correct that imbalance. Board Member Raymond Johnson stated that insurance normally lags 12-24 months in pegging actuarial needs. Kathy Thomas replied that large claims and actuarial reserves are shown in the Actuarial report. Board Member Vicki Rios added that there is a time lag. Board Member Raymond Johnson also commented that actuaries are conservative. Board Member Vicki Rios continued that we do not want an excessive fund balance. 11. DISCUSSION AND ACTION ON RISK MANAGEMENT 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 the Mayor. Gary Deardorff is currently our Chair and Ray Malnar 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. The staff has recommended the motion below. Motioned by Vice Chair Ray Malnar, seconded by Board Member Vicki Rios Raymond Johnson as Chair for the Risk Management Board and Worker's Compensation Board for a 1-year term beginning February 1, 2024. AYE: Board Member Raymond Johnson Chair Gary Deardorff Vice Chair Ray Malnar Board Member Vicki Rios Passed Motioned by Board Member Raymond Johnson, seconded by Board Member Vicki Rios to recommend Ray Malnar as Vice -Chair of the Risk Management Board and Worker's Compensation Board for a 1-year term beginning February 1, 2024. AYE: Board Member Raymond Johnson Chair Gary Deardorff Vice Chair Ray Malnar Board Member Vicki Rios Passed 12. NEXT MEETING: RISK MANAGEMENT AND WORKERS' 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, to adjourn the meeting at 9:49 AM AYE: Board Member Raymond Johnson Chair Gary Deardorff Vice Chair Ray Malnar Board Member Vicki Rios Passed The Risk Management Trust Fund Board meeting minutes of October 25, 2023 were submitted and approved this 17th day of Mayy,2024, 1 NVtC,�k +lAV4Qrsp—r\ Michael Andersen Recording Secretary