HomeMy WebLinkAboutPACKET Town Board Special Meeting 2013-06-25The Mission of the Town of Estes Park is to plan and provide reliable,
high-value services for our citizens, visitors, and employees. We take
great pride ensuring and enhancing the quality of life in our community
by being good stewards of public resources and natural setting.
SPECIAL MEETING
BOARD OF TRUSTEES - TOWN OF ESTES PARK
Tuesday, June 25, 2013
5:00 p.m.
AGENDA
1. FUTURE STUDY SESSION ITEMS.
2. INSURANCE COVERAGES – PROPERTY AND LIABLITY.
3. SELF INSURANCE UPDATE.
4. REQUEST TO ENTER EXECUTIVE SESSION:
24-6-402(4)(f), C.R.S. – For discussion of a personnel matter; not involving any
specific employees who have requested discussion of the matter in open session;
any member of the Town Board (or body); the appointment of any person to fill an
office of the Town Board (or body); or personnel policies that do not require
discussion of matters personal to particular employees.
Motion: I move the Town Board go into Executive Session– For the purpose of
discussing a personnel matter; not involving any specific employees who have
requested discussion of the matter in open session; any member of the Town
Board (or body); the appointment of any person to fill an office of the Town
Board (or body); or personnel policies that do not require discussion of
matters personal to particular employees., under C.R.S. 24-6-402(4)(f).
5. ADJOURN.
Prepared 6/14/13
To: Honorable Mayor Pinkham
Board of Trustees
Town Administrator Lancaster
From: Jackie Williamson, Town Clerk
Date: June 21, 2013
RE: Future Town Board Study Session Items
June 26, 2013
Pre Budget Meeting
July 9, 2013
Proposed Amendments to Policy 101 –
Board Assignments
Other Items Not Currently Scheduled
for Town Board Study Sessions
• Revision to Stanley Historic District
Agreement
Town Clerk’s Office Memo
To: Mayor Pinkham
Board of Trustees
Town Administrator Lancaster
From: Jackie Williamson, Director
Date: June 21, 2013
RE: Insurance Coverage – Property and Liability
Background:
The following information was presented to the Town Board during a study session in
August 2012. It provides a good overview of the Town’s property and liability insurance
coverage. Staff and Attorney White will present more detailed information at the
meeting through a PowerPoint presentation.
The Town of Estes Park has been covered by CIRSA since 1988 for property and
liability insurance. CIRSA is a not-for-profit organization owned and operated by its
members since 1982, and is designed to shield public entities from the insurance
market’s cyclical problems of cost, capacity and uncertainty. This governmental entity,
not an insurance company, provides members comprehensive, customizable coverage,
while members build equity in the pool and any surplus funds are returned directly to the
members, not shareholders.
The Town’s property coverage includes all town owned properties, buildings and their
contents, automobile physical damage, mobile equipment and machinery, exterior
signs, and other property such as fine arts, valuable papers, and miscellaneous outdoor
properties and equipment, such as park structures, street signs, signals and
transformers.
The Town liability coverage includes general, auto, law enforcement and public official
errors and omissions. General liability coverage protects the Town against claims for
bodily injury and property damage from a third-party. Auto coverage protects the Town
against claims for bodily injury or property damage arising out of the Town’s operation,
maintenance, or use of an automobile. Law enforcement coverage protects against
claims for bodily injury or property damage arising out of police operations. Public
official coverage protects against claims for actual or alleged errors, omissions or
negligent acts.
Attached are a copy of the Town’s 2013 property/casualty coverage plan structure from
CIRSA and a copy of the Property/Casualty coverage plan for the coverage period of
January 1, 2013 through January 1, 2014. The Town carries $500.5 million in excess
property insurance per claim/occurrence and $5 million in excess liability per claim/
occurrence, except auto liability at $1.5 million. The Town’s deductible is $5,000 per
claim/occurrence.
Administrative Services
Insurance CoverageInsurance CoveragePtProperty & Liability
Who is CIRSA?Who is CIRSA?CIRSA was established by an Intergovernmental Agreement (IGA) between 18 founding member municipalities in 1982 current between 18 founding member municipalities in 1982, current membership 251CIRSA is a governmental entity, not an insurance company, not-for-profit organization owned and operated by our membersprofit organization owned and operated by our membersDesigned to shield public entities form the insurance market’s cyclical problems of cost, capacity and uncertaintyPd d bf d f ll Provides advantages, benefits and services specific to local government riskMembers build equity in the pool and any surplus funds are d dil h hhldreturned directly to them, not shareholders
Summary of Summary of CoveragesCoveragesServices include:Property CoverageProperty Automobile Physical DamageMobile EquipmentOhAlbl MllOther Property –Fine Arts, Valuable Papers, Miscellaneous PropertyLiability CoverageGeneral LiabilityA t bil Li bilit Automobile Liability Law Enforcement LiabilityPublic Officials Errors and OmissionsCrime CoveragesCrime CoveragesEmployee DishonestyMoney and SecuritiesForgery or AlterationgyComputer FraudMiscellaneous Coverages – Boiler, Special Events, Volunteer Accident Medical Plan, Excess Crime
Coverage StructureCoverage StructureAdd ChartAdd Chart
Governmental Immunity ActGovernmental Immunity ActApplies to all Public Entities and Public EmployeesApplies to cities, towns, districts, authorities, entities established by IGA, etc.Applies to volunteers, elected and appointed officials, employeesApplies to TORT ActionsApplies to TORT ActionsKey Protections: Immunities, Monetary Limits, Notice RequirementsIs an IMMUNITY actImmunity exists EXCEPT as specifically waivedIn waived areas, liability determined generally in same manner as for private individualsAct’s monetary limits and notice requirements have been upheld against constitutional attacksNo waiver of immunities/limits by purchase of insuranceApplies only to STATE LAW tortsNot applicable to federal law claims (such as civil rights claims)Not applicable to breech of contract
6 Waiver Areas 6 Waiver Areas --GIAGIAOperation of motor vehicle by public employeeOperation of motor vehicle by public employeeDangerous condition of a public highway, road, or streets within corporate limits of municipalityDangerous condition of public hospital, jail, public facility in park or recarea maintained by public entity or of public water, gas, sanitation, electrical, power, or swimming facilityOperation and maintenance of public water, gas, sanitation, electrical, power or swimming facilityDangerous condition of public buildingOperation of public hospital, correctional facility, or jail
GIA Special IssuesGIA Special IssuesAlthough both public entities and public employees have immunity (except Although both public entities and public employees have immunity (except in 6 waived areas), public employee also cannot be engaged in:WILLFUL AND WANTON conduct; orActivities OUTSIDE THE SCOPE of employment or not within performance of public ldemployee dutiesWillful & Wanton / “outside scope” conduct, if egregious, can also subject employee to PUNITIVE DAMAGESpyPublic entity is not responsible for punitive damages against employeePunitive damages also are NOT INSURED!Notice requirements a powerful protectionsNotice requirements a powerful protectionsNotice required within 180 days after discovery of injuryUntimely notice forever forecloses lawsuitMust be filed with governing body or attorney of public entity
Changes to GIA LimitsChanges to GIA LimitsGovernor Hickenlooper signs Senate Bill 13-023 on April 19, 2013 increasing the Governmental Immunity Act limits from:$150,000 to $350,00 per person$600,000 to $990,000 two or more persons in a single occurrenceIt is anticipated CIRSA will have to raise rates in order to ensure coverage at the higher limits.
To: Mayor Pinkham
Board of Trustees
Town Administrator Lancaster
From: Jackie Williamson, Director
Date: June 21, 2013
RE: Self Insurance Update
Background:
During the 2012 budget process staff presented the option to move from a fully-funded
health insurance plan with Anthem to a self-funded plan with CIGNA to reduce the cost
of health insurance, provide the Town the opportunity to control costs, manage funds,
and maintain any savings realized during any given year. The attached exhibit outlines
the increasing costs the Town was experiencing with the fully-funded model versus the
savings realized with a move to a self-funded model in 2012.
Moving to the self-funded model required the re-establishment of the Medical Insurance
Fund to hold the premiums paid by the employees and the Town, and to pay the
Administrative costs and claims each month. The difference between the premiums
collected and the costs (admin fees and claims) remains in the fund from year to year.
The Town’s goal is to grow the fund balance to approximately $800,000 to offset costs
during future high claim years without having to raise premiums substantially or make
significant plan changes, i.e. higher deductibles and copays.
In 2012, the Administrative costs and claims were less than the $1.6 million collected in
premiums, thereby increasing the Medical Insurance fund balance to approximately
$600,000. The balance includes $200,000 in transfers approved by the Town Board
through the 2012 budget process to seed the fund. The $200,000 was approximately
the savings realized by the Town in the first year by switching to the self-funded model.
As of April 2013, claims are running higher than last year; however, January and
February of 2012 experienced low claims. Many employees likely utilized the coverage
by Anthem at the end of 2011 prior to the switch to CIGNA. This would account for the
higher claims seen in the first quarter of 2012. The Town’s insurance broker has stated
it takes approximately 5 years to set trends for claims, therefore, the Town does not
have any way of knowing what an average first quarter claims experience should be.
To date, the move to self-funded health insurance has been a positive move for both the
Town and its employees as it relates to premium costs. Overall the move to self-funded
insurance has produced the outcome anticipated by lowering overall costs and
managing premium increases. The Town still has work to do in managing the utilization
of the plan.
Administrative Services
Page 2
Some points of interest follow:
- Both the Town and the employees have saved on premium costs over the past
two years. A fully-funded plan in 2012 was estimated to increase premiums by
13% and would most likely have been double digits for 2013.
- An Insurance Committee was reformed in 2012 with the move to self-insurance.
This Committee has representation from each of the departments. The mission
of this group is to review the Town’s insurance plan annually, to recommend
changes to the plan and premium increase annually, and to convey information
related to insurance to their individual departments.
- During the renewal process for 2013, the Insurance Committee recommended
the Town increase premiums by 2% due to the healthy fund balance established
in the first year. The increase is the lowest seen in over 10 years.
- Utilization of the plan continues to run high for a group our size. Efforts are being
made to develop a wellness program to help the employees become more aware
of their health and wellness choices. This should in turn provide a healthier
employee base, which utilizes the plan less.
- The fund balance was estimated to be fully funded by the end of 2013 if the
same utilization seen in 2012 was realized; however, current claim rates would
suggest the fund balance may remain even or slightly lower than 2012. This will
be looked at closely as the Insurance Committee begins to discuss rate
increases for 2014.
Town of Estes ParkFully Insured vs. Self FundedAnthem - Fully Insured Anthem - Fully Insured CIGNA - Self Funded1/1/2010 - 12/31/2010 1/1/2011 - 12/31/2011 1/1/2012 - 10/31/2012Medical & Medical & Claims &Rx Claims Rx Claims Fixed CostJan-10 134 $126,649 $46,592 Jan-11 137 $162,003 $84,727 Jan-12 134 $139,583 $58,262Feb-10 134 $127,091 $82,747 Feb-11 138 $162,438 $207,198 Feb-12 132 $136,774 $87,557Mar-10 134 $126,649 $176,966 Mar-11 138 $162,176 $237,556 Mar-12 134 $137,923 $117,306Apr-10 135 $128,126 $176,880Apr-11 137 $160,808 $108,486Apr-12 132 $135,515 $112,505May-10 135 $127,722 $178,246 May-11 135 $156,813 $72,775 May-12 129 $130,872 $78,361Jun-10 135 $127,722 $138,895 Jun-11 137 $156,272 $98,885 Jun-12 129 $131,387 $96,920Jul-10 136 $128,203 $99,322 Jul-11 138 $156,880 $86,881 Jul-12 129 $131,387 $83,062Aug-10 135 $127,743 $148,778Aug-11 138 $154,146 $81,998Aug-12 132 $133,110 $107,149Sep-10 134 $126,661 $86,868 Sep-11 139 $157,880 $77,655 Sep-12 129 $130,758 $126,280Oct-10 137 $129,052 $108,880 Oct-11 139 $158,557 $93,941 Oct-12 128 $130,699 $74,469Nov-10 139 $131,010 $109,893 Nov-11 137 $155,429 $99,077 Nov-12 128 $131,443 $91,582Dec-10 141 $131,010 $377,666 Dec-11 135 $152,194 $199,072 Dec-12 129 $133,162 $87,792Total$1,537,638 $1,731,733Total$1,895,596 $1,448,251Total$1,602,614 $1,121,244Total PEPM$943.92 $88.59Total PEPM$1,150.24 $878.79Total PEPM$1,024.03 $716.45Paid Ratio112.6%Paid Ratio76.4%Paid Ratio YTD70.0%* Anthem and CIGNA Medical/Rx claims are reported as gross claims. FundingPremiumEEsMonthMonth EEs Premium Month EEs