WORKERS COMPENSATION PROGRAM COMMITTEE MEETING March 30, 2015

Transcription

1 Approved 3/29/16 WORKERS COMPENSATION PROGRAM COMMITTEE MEETING March 30, 2015 ACWA JOINT POWERS INSURANCE AUTHORITY Executive Conference Room 2100 Professional Drive, Roseville, CA (800) This meeting consisted of a simultaneous WebEx teleconference call at the ACWA Joint Powers Insurance Authority, 2100 Professional Drive, Roseville, CA and the following remote sites: Tiegs Briartree Place, Rancho Cordova Hart Soquel Drive, Capitola MEMBERS PRESENT Chairman: W.D. Bill Knutson, Yuima Municipal Water District Vice Chair: Kathleen Tiegs, Cucamonga Valley Water District (WebEx) Scott Alcantara, South Feather Water & Power Agency Traci Hart, Soquel Creek Water District (WebEx) David Drake, Rincon Del Diablo Municipal Water District Robert Kunde, Wheeler Ridge-Maricopa Water Storage District Wayne Nygaard, Palm Ranch Irrigation District Neil Schild, Sacramento Suburban Water District MEMBERS ABSENT Rick Gilmore, Byron-Bethany Irrigation District STAFF PRESENT Chief Executive Officer/Secretary: Walter Andy Sells Ginny Bolan, Administrative Assistant (Recording Secretary) Linda Craun, Administrative Assistant II Dick Damon, Director of Casualty Operations David debernardi, Director of Finance Robin Flint, Senior Risk Management Consultant Robert Greenfield, Counsel to Casualty Operations John Haaf, Risk Management Manager Debbie Kyburz, Member Services Representative II Dianne Salvador, Workers Compensation Claims Manager Patricia Slaven, Training Manager Nancy Stangel, Director of Administration 1

2 Dianna Sutton, Finance Manager Tandra Vaughan, Senior Workers Compensation Examiner Chuck Wagenseller, Cost Estimator/Risk Management Consultant Nidia Watkins, Member Services Representative II Bobbette Wells, Executive Assistant to the CEO OTHERS IN ATTENDANCE Eldon Boone, Vista Irrigation District David Hodgin, Scotts Valley Water District E.G. Jerry Gladbach, Castaic Lake Water Agency David Hodgin, Scotts Valley Water District Robert Lowe, Aon Risk and Insurance Services, JPIA Broker Melody McDonald, San Bernardino Valley Water Conservation District Charles Muse, Helix Water District WELCOME Chairman Knutson welcomed everyone in attendance. CALL TO ORDER AND ANNOUNCEMENT OF QUORUM Chairman Knutson called the meeting to order at 3:01 p.m. He announced that there was a quorum. ANNOUNCEMENT RECORDING OF MEETING Chairman Knutson noted that the meeting was being recorded to assist in preparation of the minutes. Recordings are only kept 30 days following the meeting, as mandated by the California Brown Act. EVACUATION PROCEDURES Mr. Sells briefly reviewed the building evacuation procedures. PUBLIC COMMENT Chairman Knutson noted that, as the agenda stated, members of the public would be allowed to address the Workers Compensation Committee on any agenda item prior to the Committee s decision on that item. Comments on any issues on the agenda, or not on the agenda, were also welcomed. No comments were brought forward. INTRODUCTION OF GUESTS Chairman Knutson requested that the Committee members and JPIA staff in attendance introduce themselves. He also welcomed the new committee members, Vice Chairman Tiegs, Ms. Hart and Mr. Kunde. ADDITIONS TO OR DELETIONS FROM THE AGENDA No additions or deletions were noted. APPROVAL OF MINUTES Chairman Knutson called for approval of the minutes of March 25,

3 M/S/C (Drake/Nygaard) (Alcantara-yes; Drake-yes; Kunde-yes; Nygaardyes; Schild-yes; Tiegs-yes; Knutson-yes): That the Workers Compensation Program Committee approve the minutes of the March 25, 2014 meeting. REPORT ON MEETINGS ATTENDED ON BEHALF OF THE JPIA None reported. MEMBERSHIP New members approved or under consideration Mr. Damon advised that there are four agencies that have expressed interest in this program, Casitas Municipal Water District, Placer County Water Agency, Rio Linda/Elverta Community Water District, and Bodega Bay Public Utility District. Intent to withdraw None reported. It was noted that two agencies withdrew from this program in the policy year. LOSS REPORTS Reported losses per $1 million of payroll Mr. Damon noted that the graph shows a slight upward trend for policy years of , and , possibly due to economic factors. The reduction shown on the graphs for policy years and is possibly because these claims are not yet fully developed. Mr. Sells added that the ongoing drought and a reduction in the number of employees could also have been contributing factors. Claims per $1 million of payroll Mr. Damon advised that the policy years through indicate a slight downward trend. Mr. Kunde asked what factors contributed to this trend. Possible contributing factors are the focus put on safety by our risk management consultlants, the high performance of the Workers Compensation staff as evidenced by their perfect audit score in 2014, the JPIA s training program, the focus on safety by our member districts and the Occu-Med program. There was a brief discussion of the significant large claims report. The threshold for this report has been $100,000 since There was a discussion as to whether the threshold should be raised. Mr. Kunde advised that for new members of the committee he more inclusive report is more informative. Chairman Knutson advised that the threshold will remain at $100,000 at this time. NEW BUSINESS Case study reserve development over time 3

4 Workers Compensation Claims Manager, Dianne Salvador, introduced this case study explaining that reserves are an estimate of the amount of money necessary to settle the claim. We set our reserves on the most probable outcome based on the facts known and we revise them whenever significant facts change. Senior Workers Compensation Examiner, Tandra Vaughan, provided a detailed account of an actual claim to illustrate how an apparent minor claim can escalate over time causing a corresponding increase in reserves. Workers Compensation excess insurance renewal proposals Mr. Damon advised that the JPIA selected Arch Insurance Group (Arch) to provide excess insurance for the policy year 7/1/ The Executive Committee previously indicated their desire to forge long-term relationships with the JPIA s vendors, therefore Aon elected to not market this line of business for policy year 7/1/ Aon Account Specialist, Robert Lowe, further advised that extensive research was completed last year. Mr. Damon advised that he was recently notified that Arch agreed to a 1.5% increase. M/S/C (Nygaard/Drake) (Alcantara-yes; Hart-yes; Drake-yes; Kunde-yes; Nygaard-yes; Schild-yes; Tiegs-yes; Knutson-yes): That the Workers Compensation Program Committee recommend to the Executive Committee to approve the current proposal from Arch. July 1, 2015 renewal program Mr. debernardi reviewed the various calculations that contribute to the renewal pricing. The largest factor is estimated losses. The current actuarially projected loss rates have increased since the last evaluation. Last year there was a slight adjustment in the rates of three class codes but no overall rate adjustment. Ms. Kyburz advised that class codes are determined by the type of business. M/S/C (Drake/Schild) (Alcantara-yes; Hart-yes; Drake-yes; Kunde-yes; Nygaard-yes; Schild-yes; Tiegs-yes; Knutson-yes): That the Workers Compensation Program Committee recommend to the Executive Committee that there is no change in rates for the 7/1/ policy year. Commitment to Excellence Program Mr. Haaf advised that 165 out of 304 members have made a commitment to this program. The most frequent and costly losses come from vehicle, infrastructure, construction, employment practices, ergonomic and fall injury claims. Our focus is to encourage the members to implement programs and best practices that can help to reduce these types of claims. Ergonomics and Fall Protection classes are offered in the JPIA s Professional Development Program. The JPIA sponsored a Certified Ergonomic Assessment Specialist (CEAS-1) class for 14 members taught by The Back School of Atlanta. Each participating member was asked to commit to having that person conduct ergonomic evaluations for their agency once certified to do so. Another CEAS-1 class is anticipated for Northern California later in

5 UPCOMING MEETING(S) No meetings are schedule for the remainder of this year. The Workers Compensation Program Committee meeting adjourned at 4:54 p.m. 5