MINUTES. SPECIAL EXECUTIVE COMMITTEE MEETING June 20, 2013 RODGERS CREEK I/II CONFERENCE ROOMS

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1 MINUTES SPECIAL EXECUTIVE COMMITTEE MEETING June 20, 2013 RODGERS CREEK I/II CONFERENCE ROOMS CALL TO ORDER The meeting was called to order by President Sue Field at 11:00 a.m. ATTENDANCE Those in attendance were: Susan Field President Bennett Valley U.S.D. Doug Bower Vice President Santa Rosa City Schools Denise Calvert Sec./Treasurer/Auditor So. County Office of Ed. Steve Bolman Director Petaluma City Schools Steve Jorgensen Director Cloverdale Unified Regina Cuculich Director Mark West Union RESIG Staff: Cecilia Quiambao Deborah Fraser Rose Burcina Ronda Bergesen Diane Vieyra Property & Liability Claims Manager Property & Liability Claims Asst. II Director of Employee Benefits Fiscal Analyst Executive Secretary Guests: H. Brent Howatt APPROVAL OF AGENDA A motion was made by Denise Calvert and seconded by Steve Jorgensen to approve the agenda as presented. Motion carried 5-0.

2 INTRODUCTIONS & RECOGNITIONS None PUBLIC COMMENTS None ADJOURNMENT TO CLOSED SESSION The meeting was adjourned to Closed Session at 11:01 a.m. by President Sue Field. CLOSED SESSION The following items were discussed: 1. Public Employee Termination/Release/Resignation 2. Public Employee Employment Position: Interim Executive Director ADJOURNMENT TO OPEN SESSION The meeting was adjourned to Open Session at 12:30 p.m. by President Sue Field. OPEN SESSION No reportable action was taken during Closed Session. ACTION A. Interim Executive Director Approval to Hire Approval of Employment Contract President Field announced that approval of the Employment Contract will need to be tabled due to action needing to be taken during a regularly scheduled Executive Committee Meeting. School & College Legal had been contacted and was informed that RESIG s Bylaws allows for the President to set meetings but that a 72 hour notice is required. Therefore, an additional meeting was added to the 2013/14 Meeting Calendar which will be held on 2

3 Monday, July 15 th at 12:30 p.m. at which time approval of the Employment Contract for the Interim Executive Director will be presented. A motion was made by Doug Bower and seconded by Steve Bolman to approve the hiring of H. Brent Howatt as the Interim Executive Director, as presented. Motion carried 5-0. B. Transitional Changes for Executive Director 1. Bank Account Authorization 2. Credit Card Issuance Subject to approval of hiring H. Brent Howatt as Interim Executive Director, motion was made by Steve Jorgensen and seconded by Steve Bolman, to remove Paul McKay and add H. Brent Howatt to all five RESIG bank accounts at Westamerica and close RESIG s credit account with Bank of America Business Services and open a new account under H. Brent Howatt/RESIG. Motion carried 5-0. C. Appoint BASIC Director This item was tabled until the Interim Executive Director s Employment Contract has been approved. D. 2013/14 Wells Fargo Broker Services Agreement Brent Howatt reported that the contract was brought back after addressing a few areas of concern relative to the language. The contract now specifies it is for excess workers compensation. In addition, the final sentence in paragraph 3 - Contingent, supplemental, or bonus commissions had been omitted but has been restored. It states that such commissions will not be accepted, should they be offered. The contract is a flat fee of $36,200 per year and is being renewed at the expiring rate. This is one of several broker services agreement that was presented to the Executive Committee. Bower stated that preference is to view all broker agreements and contracts on one agenda along with the costs associated with them. This includes all contracts with attorneys and broker agreements that are through BASIC (Bay Area Schools Insurance Cooperative). Motion was made by Doug Bower and seconded by Steve Bolman to approve the 2013/14 Wells Fargo Brokers Services Agreement as presented. Motion carried

4 E. Authorization for Roof Bids Brent Howatt referenced the in the agenda packet, between Doug Bower and Patrick Wilson, School & College Legal. Mr. Bower requested legal opinion as to whether the roof project fits under the $83,400 bid threshold for maintenance work. Mr. Wilson s opinion was that the project should go to public bid; it is a public project, not maintenance, and the project should therefore be formally bid because the expected cost is $15,000 or more. Therefore, based on the above legal opinion, staff recommended that the Executive Committee authorize staff to prepare bid documents for repair of the sight surrounds, installation of walking pads, and the reconditioning of the entire roof. The Special Instructions for Bidding previously distributed to contractors was included in the agenda packet for the Executive Committee to review. Howatt stated that from what he has read in previous Executive Committee Meeting Minutes, they were not interested in a tear off and replacement of a roof. Howatt concurred with the rehabilitation recommendation, the repairing of the sight surrounds, and installation of walking pads. There was discussion as to whether other options should be considered. It was mentioned that the options may have been limited to keep the bids under the $83,400 bid threshold. Howatt stated that the roof project was a project he had started prior to his retirement. He recalls roofing consultant, Tom Terry Total Roof Mgmt., recommending a roof rehabilitation. The Executive Committee requested that Howatt discuss with Terry to see if there are alternate options to include for public bid. Motion was made by Steve Bolman and seconded by Doug Bower to authorize staff to prepare the bid documents for repair of the sight surrounds, installation of walking pads, and reconditioning of the entire roof, as presented. Motion carried 5-0. The Executive Committee will be presented with the bidding documents for approval at the July 15 th Executive Committee Meeting. F. Executive Committee Vacancy Acceptance of Resignation President Field informed the Executive Committee that Joe Pandolfo has decided to resign from the Executive Committee. He is considering applying for the Executive Director s position and therefore wants to avoid any potential conflict of 4

5 interest. Enclosed in the agenda packet is Mr. Pandolfo s resignation letter. He has one year remaining in his term on the Executive Committee. Motion was made by Regina Cuculich and seconded by Steve Jorgensen to accept the resignation of Joe Pandolfo from the Executive Committee as presented. Motion carried 5-0. Casey D Angelo has expressed interest in being appointed to the vacant seat on the Executive Committee. He had previously been elected but resigned when he left Wright School District for Rincon Valley. At that time Joe Pandolfo was already a member of the Executive Committee and did not want there to be two representatives from the same district on the Executive Committee. Doug Bower felt a person who was previously elected should be appointed. Also mentioned was Bob Raines, District Supt/Principal Alexander Valley U.S.D. who was a candidate for 2011/12 but has not expressed interest since that election. Included in the agenda packet were the sections of RESIG s Bylaws relating to the vacancies on the Executive Committee and vacancy in the officer positions. The Bylaws authorize the Executive Committee to appoint a director to fill the vacancy on the Executive Committee or to wait until the next Board of Directors Meeting to fill the vacancy. Unfortunately, the Bylaws make no provision for the Executive Committee to fill the vacancy of the officer position. Staff recommended that the Executive Committee take action to fill the vacancy on the Executive Committee either at this meeting or a special meeting in July. There was discussion amongst the Executive Committee regarding their options to fill the vacancy. Motion was made by Regina Cuculich and seconded by Steve Bolman to appoint Casey D Angelo to fill the vacancy on the Executive Committee, consisting of one year remaining of that term. Motion carried 5-0. Brent Howatt stated that since there is no provision in the Bylaws to replace an officer, they may wish to consider an amendment to the Bylaws, which would need to take place at a Joint Powers Board Meeting. It was requested that this item be discussed further at the July 15 th Executive Committee Meeting. Denise Calvert requested that the duties of the officers be clarified too. 5

6 REPORT/DISCUSSION G. Executive Director s Report Brent Howatt reported the following: Howatt expressed his appreciation for being contacted to fill in as Interim Executive Director. RESIG Building The roof is currently being addressed and hopefully will be taken care of soon. A padlock has been placed on the gate to the secured closed file area in the warehouse. SELF Workers Compensation Program Assessment Howatt will be meeting with Eric Lucas, Schools Excess Liability Fund (SELF), on Monday, June 24 th, to discuss a payment plan to ultimately retire the assessment. Workers Compensation Actuarial Report Howatt noticed in previous minutes the Executive Committee s concern over the 12/31/12 actuarial report in regards to the statement of strengthening of reserves in the Workers Compensation Program. He stated that ending in 2009 reflects the change of department managers to Melody Tucker. After 18 months, the case reserves doubled which is what Howatt sought; since then there have been no further changes. Mr. Howatt contacted Actuary Jack Joyce, to define strengthening of reserves. Joyce explained that for the most part, all JPAs have a pattern. Mr. Joyce noticed that there was a 15% increase to the average claim value, which is outside the realm of normal. Howatt stated that there has been less variation last year in the Workers Compensation Department. He thought what was probably happening is an increase in seriousness of accidents. Previous minutes include reports indicating an increase in severity and frequency. He expressed interest in the results of the 6/30/13 actuary report. President Field felt as though there may be too much money being reserved. Howatt disagreed; he stated that the discount rate has been lowered from 1½ to 1%, temporary and permanent disability rates are increasing and the costs in the Workers Compensation Program are not going down. Field added that the confidence level increased to 80% for 2013/14, from 70%, which Howatt was pleased to hear. H. Executive Director Recruitment The following recruitment options to fill the Executive Director position were discussed: To proceed as was done last time post the job announcement on various websites and newspapers and hire a facilitator. Hire a search firm such as School Services or prepare a Request for Proposal (RFP). 6

7 . Brent Howatt stated that when he was hired he noticed the position advertisement in the CASBO Job Finder. Doug Bower mentioned that previous candidates have been from the insurance industry, JPAs, and school districts. Last year, Noel Buehler was hired as the facilitator, which helped with the communication in this process. Bower expressed preference in hiring a facilitator rather than RESIG Staff handling, and suggested the Executive Committee being more involved in the process. Bower requested Brent Howatt s opinion. Howatt stated that when he applied for the Executive Director position there had been a facilitator to perform the recruitment services, which he felt was very valuable. He also felt that there may be value to even hiring a headhunter due to the vacancy occurring so soon after the position was filled. There may be questions or perception that would need to be addressed and felt as though a headhunter could help overcome the issues of imaginative assumptions. A headhunter would also be able to provide insight as to an appropriate salary for the position and locations as to where advertising should be done, and actively solicit the position. Howatt stated that there are 2 or 3 firms that perform recruitment services for JPAs. You can request from the firm that the submissions be viewed by the Executive Committee. A year ago RESIG received a full service proposal from School Services for $16,000 while the facilitator services of Noel Buehler were $7,000. President Field questioned the necessity to solicit proposals for recruitment services. Steve Jorgensen preferred an outside source to perform the services rather than RESIG Staff. Howatt didn t sense the necessity to change the salary or job description in the Position Announcement brochure. Bower questioned whether we would be able to obtain enough viable candidates if advertisement was done the same as the last time. Bower leaned toward recruiting for the position the same way as was done last year. Regina Cuculich concurred. The Executive Committee requested the application packet materials be included in the agenda packet for the July 15 th Executive Committee Meeting. It was requested that consideration be made to adopt a job description for the Executive Director as there is currently not one on file. The only information available is that of which is in the position announcement/brochure which was included in the application packet. ADJOURNMENT President Sue Field adjourned the meeting at 1:30 p.m. SUBMITTED BY: APPROVED BY: H. Brent Howatt, Interim Exec. Director Doug Bower, President 7