KINGS COUNTY SELF-INSURED SCHOOLS Regular Meeting of the JPA April 16, :30 p.m.

Transcription

1 KINGS COUNTY SELF-INSURED SCHOOLS Regular Meeting of the JPA 1:30 p.m. Kings County Office of Education Large Conference Room 1144 West Lacey Boulevard Hanford, California MINUTES I. CALL TO ORDER The meeting was called to order by Tim Bowers at 1:33 p.m. ATTENDANCE BOARD MEMBERS: Corcoran Unified School District Hanford Joint Union High School District Kings County Office of Education Kings River-Hardwick School District Kit Carson School District Lemoore Union High School District Pioneer Union Elementary School District Executive Director JPA Secretary ABSENT: Armona Union Elementary School District Reef-Sunset Unified School District GUESTS: Central Union Elementary School District Hanford Elementary School District Kings County Office of Education Lakeside Union Elementary School District Rich Merlo Cheryl Silvia Tim Bowers Cathlene Anderson Shelley Leal David Endo Paul van Loon Angie Sorrentino Cyndi Parra Susan Fagundes Michelle Cutillo Tom Addington Jeri Higdon Steve Corl Cynthia Marshall II. CONSENT ITEMS 2.1 & 2.2 Motion was made by Cheryl Silva, seconded by Cathlene Anderson and unanimously carried to approve the Board Meeting Agenda and the February 5, 2015 Board Meeting Minutes included in the Agenda packet. III. COMMENTS FROM THE PUBLIC There were no comments from the public.

2 Page 2 IV. REPORTS, DISCUSSION & ACTION JPA Meeting Schedule 2015/ Angie Sorrentino reviewed the meeting schedule for the 2015/16 school year and provided dates to the Board. Meetings are scheduled for October , January 21, 2016, April 21, 2016 and June 23, All Board Meetings will be held at KCOE in the large conference room at 1:30 p.m. unless otherwise specified. Special meetings outside the above dates will be called on an as needed basis only. Announce Rotational Board Member Appointees 2015/ Angie Sorrentino reviewed the Rotation Schedule and advised of three new Board Members for the upcoming terms. Tom Addington, Central Union Elementary School District will replace David Endo. Jeri Higdon, Hanford Elementary School District will replace Cheryl Silva and Cynthia Marshall, Lakeside Union Elementary School District will replace Susan Fagundes. Election of Vice Chairperson and Treasurer 4.3 Appointment of replacements for David Endo, (Lemoore High Union School District) as Vice Chairperson and Steve Corl (Kings County Office of Education) as Treasurer, whose terms end 06/30/15. Recommendation was made for Shelley Leal, Chief Business Official, Kit Carson School District to serve as Vice Chairperson. Recommendation was made for Steve Corl, Business Services Assistant Superintendent, Kings County Office of Education, to continue to serve as Treasurer. Motion was made by Cheryl Silva, seconded by Cathlene Anderson and unanimously carried to approve Shelley Leal as Vice Chairperson and Steve Corl as Treasurer effective 07/01/15. Angie Sorrentino was designated by Tim Bowers to remain as Secretary. Executive Director Reports 4.4 Frequency Severity Comparison Report reflects 14 claims with a total incurred amount of $286,796 as of February This equals an average cost per claim of $20,485 for an eight-month period. Annual Claim Comparison Year-to-date, 14 claims were sent to JT2 versus 18 claims the same time last year. Net paid is nearly double with February 2015 totaling $114,704 compared to $62,028 in February However, reserves are much lower at $172,092 in February 2015 compared to $317,503 February Aggregate Claims Comparison Number of claims are at 22 in February 2015 compared to 25 claims in February However, net paid is lower with a total of $858,599 in February 2015 versus $1,040,184 in February With the catastrophic claim now settled, total incurred amount is greatly improved. February 2014 totaled $4,047,279 while February 2015 equals $807,447. Payments By Category Total paid for the month of February 2015 equals $128,458. Average per month for an eight-month period for the 2014/15 year is $106,000 per month.

3 Page 3 JPA Premium for 2015/ The JPA uses a formula-based calculation policy to determine premium. Total estimated premium for 2015/16 is $3,692,625 compared to the current premium of $3,608,738. CURRENT 2014/15 ESTIMATED 2015/ /15 Ultimate 70% confidence level $2,387, /15 Estimated Operating Expenses $ 918,902 Year 1 Deficit ($985,000/5) $ 197,000 Year 1 Equity $1,049,959/10 $ 104, /16 Losses $2,484, /16 Operating Expenses $1,026,447 Year 2 Deficit ($372,000 / 5) $ 74,400 * Year 2 Equity $1,076,184 / 10 $ 107,618 TOTAL PREMIUM $3,608,738 TOTAL PREMIUM $3,692,625 * $8,254,668 minus $7,178,484 = $1,076,184 The Funding Surplus (Return Plan) per the policy will not be effective until the Capital Target is reached. At the current time, (2014/15), the estimated Capital Target figure is as follows: 90% Confidence level of estimated outstanding losses = (per latest Actuarial Study 2013) + Unallocated loss adjustment expenses = (per latest Actuarial Study 2013) + Estimate of remaining operating expenses = (April through June 2015) $8,972,824 $ 358,913 $ 229,725 TOTAL $9,561,462 Angie Sorrentino reviewed spreadsheets of premium by District for 2015/16 at a total of $3,691,403 and a fiveyear history of experience modifications. Financial Activity Report 2014/15 & Approve Budget 2015/ Angie Sorrentino reviewed the 2014/15 budget through March 11, Angie Sorrentino reviewed the 2015/16 budget. DWC Fees were budgeted at $48,000, anticipating a lower paid indemnity total with the settlement of the catastrophic claim. 2015/16 budget projects expenses at $2,546,447 with a total income of $3,730,928 for a 2015/16 year end total of $1, Motion was made by David Endo, seconded by Paul van Loon and unanimously carried to approve the Budget for 2015/16 as presented.

4 Page 4 Cash in County Treasury - The recap of Cash in County Treasury as of March 11, 2015 is $6,871,667. The cash is increasing as anticipated in order to eventually reach the $9.5 million capital target. Medical Cost Containment Savings Bill Review, PPO & UR 4.7 Angie Sorrentino reviewed the Medical Management Savings from January 2015 through February During this time, 452 bills were reviewed which produced a billed amount of $298, A net savings of $165, was reported which generated an overall savings of 55.49%. Workers Compensation News, Information & Announcements 4.8 4/22/15 - File Review - Lemoore High. 4/27/15 - Safety Presentation - Lemoore Elementary to custodial and maintenance staff. 5/6/15 - File Review - Reef-Sunset. 5/13/15 - Safety Committee Meeting - Corcoran Unified. 5/19/15 - Safety Committee Meeting - Lemoore Elementary. 6/4/15 - File Reviews Corcoran Unified, Hanford Elementary, KCOE, Hanford High, Lemoore Elementary and Central Union. 3/24/15 - WorkCompCentral Possible changes to Med-Legal Process doctors will not be happy, especially with results of reduction in fees. 02/25/15 - Workers Comp Executive California Supreme Court to hear arguments in drug overdose case. Approve Reimbursement of Benefit Expenditures January, February and March Angie reviewed the reimbursement of benefit expenditures for January 2015 at $89,468.03, February 2015 at $128, and March 2015 at $148, Motion was made by Cheryl Silva, seconded Shelley Leal and unanimously carried to ratify the expenditures as presented.

5 Page 5 Executive Director Replacement, Information and Process 4.10 The committee reviewed the replacement process for the Executive Director position. Cheryl Silva, David Endo, Shelley Leal and Jeri Higdon met on March 16, 2015 with KCOE HR personnel and Angie Sorrentino. Cheryl Silva and Jeri Higdon reviewed all discussions from the meeting and subsequent developments; i.e. formation of job description, brochure, search proposal, advertising, pay schedule, interview questions, etc. Jeri Higdon worked on the job description with Angie Sorrentino and Sue Peterson (KCOE HR). Both the job description and brochure were changed a bit from the original brochure reviewed at the meeting - additional duties and summary of physical demands were included. Committee recommended no newspaper advertising due to ineffectiveness. All advertising to be done through workers compensation organizational groups; WorkCompCentral, Work Comp Executive and California Association of Joint Powers Authorities (CAJPA) plus California Association of School Business Officials (CASBO), Edjoin and send to all Central Valley County Offices of Education. Discussions were held regarding salary use of current schedule or alternative one. Committee felt the current schedule should be used. Committee decided deadline for applications (closing date) would be May 26, 2015 and KCOE HR would paper screen the applications. Discussions ensued with regards to the 225 day, 12-month work schedule. Tim Bowers and Steve Corl stated work schedule needs to remain at 225 days over 12 months, Senior Classified position, otherwise the position would not be considered at will in terms of termination criteria. Motion was made by David Endo, seconded by Cathlene Anderson and unanimously approved to follow all the recommendations of the committee; i.e., job description and brochure, use of current salary schedule, methods of advertising, closing date of May 26, 2015 and 225 days over 12-month work schedule. Since the committee was selected to evaluate the process, they asked Angie Sorrentino to send an to all Districts to obtain feedback and interest of who wants to be on the Interview Committee, keeping in mind Board member representation and possible quorum conflict. Closed Session - Settlement of Pending Claims 4.11 The meeting moved into closed session at 2:19 p.m. to discuss settlements of pending claims as follows: Central Union 1) Stipulated Award at 10%, $6, with future medical. Corcoran 2) Stipulated Aware at 10%, $6, with future medical. Hanford Elementary 3) Compromise and Release at $5,000. 4) Stipulated Award at 0%, with future medical. KCOE 5) Stipulated Award at 10%, $6, with future medical. 6) Stipulated Award at 47%, $57, with future medical. 7) Stipulated Award at 18%, $15, with future medical.

6 Page 6 Lemoore Elementary 8) Stipulated Award at 2%, $1, with future medical. Lemoore High 9) Stipulated Award at 8%, 6, with future medical. Reef-Sunset 10) Stipulated Award at 0%, with future medical. Open Session 4.12 The meeting reconvened to open session at 2:31 p.m. Motion was made by Shelley Leal, seconded by David Endo and unanimously carried to approve ratification of the claim settlements. V. COMMENTS FROM THE BOARD There were no comments., VI. SCHEDULE NEXT MEETING Next meeting will be held at KCOE Large Conference Room and is scheduled for June 18, 2015 at 1:30 p.m. ADJOURNMENT Meeting adjourned at 2:36 p.m. ANGELA SORRENTINO, EXECUTIVE DIRECTOR/SECRETARY