ORDER OF BUSINESS. Norma Gonzales, Vice President

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1 CONTRA COSTA COUNTY SCHOOLS INSURANCE GROUP Executive Committee Meeting Thursday, April 11, :00 a.m. CCCSIG Conference Room 550 Ellinwood Way, Pleasant Hill, CA (866) To ensure an orderly meeting and an equal opportunity for each speaker, persons wishing to address the Committee must fill out a speaker s card. Cards are located in the lobby and should be turned in to the Receptionist. The President of the Board may limit each speaker to three minutes and/or set a limit of twenty minutes for all speakers on any one subject. The Contra Costa County Schools Insurance Group will provide reasonable accommodations for persons with disabilities planning to attend Executive Committee or Board meetings who contact the Executive Director at least 24 hours before the meeting, at 1 (866) ext ORDER OF BUSINESS 1. CALL TO ORDER 9:00 a.m. 2. OPENING PROCEDURES 2.1 Roll Call CC Community College District Pittsburg USD Acalanes Union HSD Antioch USD Brentwood USD CCC Office of Education Liberty Union HSD Moraga SD Eugene Huff, President Norma Gonzales, Vice President Julie Bautista, Secretary Jessica Romeo Roxane Jablonski-Liu Bill Clark Liz Robbins Daniela Parasidis Quorum Requirement 5 members 3. FINANCIAL ITEM 3.1 Overview of Program Rate for Ten (10) FYs, Approval of... Action Required Program Rate, Ex-Mods and Actuarial Report for Fiscal Year 2019/20 The Committee will review and consider approval of the Program Rate, Ex-Mod Formula and the Actuarial Report for Fiscal Year 2019/ Review Workers Compensation Administrative Budget for... Action Required 2019/20 The Committee will consider approval of the Fiscal Year 2019/20 Administrative Budget for the Board of Directors final approval and adoption. 4. Strategic Planning Session 5. ADJOURNMENT 12:30; lunch served Annual Board of Directors Meeting - April 11, :30 p.m. - 3:00 p.m. 4/5/2019 AGENDA 1 of 54

2 CONTRA COSTA COUNTY SCHOOLS INSURANCE GROUP Executive Committee Meeting AGENDA ITEM DETAIL Date: April 11, 2019 Item Number: 3.1 Issue: Overview of Program Rate, Actuarial Report and Ex Mods Information: Action: X Attachment: X Analysis The chart below depicts CCCSIG s Program rate spanning the last ten fiscal years. CCCSIG 10-Year Rate History Policy Year 80% CL Actuarial Rate Adopted Rate Est. Equity Growth/Equity Rebate Ending Equity Balance Used $2.39 $2.39 $3,500,000 $24,577, $2.43 $1.95 $3,992,096 $17,786, $2.41 $1.95 $3,761,279 $14,681, $2.58 $2.32 $2,116,797 $14, $2.52 $2.52 $17,959, $2.62 $2.62 $18,160, $2.32 $2.47 $23,292, $2.55 $2.32 $2,219,531 $24,247, $2.41 $2.12 $3,000,000 $29,352, $2.40 $2.27 $1,441,182 Total $16,530,885 $3,500,000 In a $2.27 rate was adopted to return equity growth/equity of $1.44M to our members. Attached is the written portion of the draft Actuarial Study, which includes the Projected Actuarial Rate of $2.36 for a $750k Self-Insured Retention at the 80% confidence level (Table III- 5B, page 11, row D, column 6). Our Actuary originally provided Ex-Mods calculated using the 2018 WCIRB formula, which were used to prepare the Premium Worksheets provided at the March 28, 2019 Executive Committee meeting. After that meeting, we were advised by our Actuary that a new WCIRB formula went into effect in January CCCSIG may, but is not mandated to follow changes made in the WCIRB formula. Exhibit WC-1 shows the draft Ex-Mods for the program year using the 2018 WCIRB formula, while Exhibit WC-1A shows the draft Ex-Mods using the New 2019 WCIRB formula. WS-3 shows the estimated premiums and payment schedule using a $2.18 base rate (with negative equity Districts remaining at $2.36 base rate), which uses an estimated $1.93M of Equity Growth/Equity and Ex-Mods calculated using the 2018 WCIRB formula. WS-3A shows the estimated premiums and payment schedule using a $2.18 base rate (with negative equity Districts remaining at $2.36 base rate), which uses an estimated $1.93M of Equity Growth/Equity and Ex- 4/5/2019 AGENDA 2 of 54

3 Mods calculated using the new 2019 WCIRB formula. WS-3B shows a comparison of estimated premiums at the $2.18 base rate (with negative equity Districts remaining at $2.36 base rate and using an est. $1.93M Equity Growth/Equity) using the Ex-Mods calculated using the 2018 WCIRB formula vs. using the Ex-Mods calculated using the new 2019 WCIRB formula. Recommendation The Executive Committee is asked to review and discuss the information presented showing the FY 2019/20 Program Rate, Premium Worksheets, and Ex-Mods calculated using both the 2018 WCIRB formula and the new 2019 WCIRB formula. Staff recommends approval of the Program Rate, Premium Worksheets, and Ex-Mods calculated using the 2018 WCIRB formula as the difference between this formula and the new 2019 WCIRB formula is negligible and the original Premium Worksheet using the 2018 formula Ex-Mods was already sent to our member districts, as well as approval of the draft Actuarial Study. 4/5/2019 AGENDA 3 of 54

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32 CONTRA COSTA COUNTY SCHOOLS INSURANCE GROUP Executive Committee Meeting AGENDA ITEM DETAIL Date: April 11, 2019 Item Number: 3.2 Issue: Review Workers Compensation Administrative Budget for 2019/20 Information: Action: X Attachment: X Analysis: There are two versions of the Administrative Budget for the 2019/20 Fiscal Year attached. The first is based on a rate of $2.18 per $100 of payroll, which would use an estimated $1.93M of Equity Growth/Equity to lower the actuarial rate of $2.36 (Districts with negative equity at the end of FY did not have equity returned, so the $2.36 rate was used for them), and is based on Ex-Mods calculated using the 2018 WCIRB formula. The second version has all of the same assumptions, but is based on Ex-Mods calculated using the new 2019 WCIRB formula. The Executive Committee will recommend the budget that is based on the rate and Premium Worksheet that was approved in the prior item, along with any comments, for approval by the Board of Directors at the Annual Board of Directors meeting scheduled for April 11, 2019 Recommendation: The Executive Committee is asked to approve the 2019/20 Administrative Budget based on the rate and Premium Worksheet which were set in the prior item, along with any comments, to be presented to the Board of Directors for final approval and adoption at the April 11, 2019 Board meeting. 4/5/2019 AGENDA 32 of 54

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