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HomeMy WebLinkAboutCommittee of the Whole - 21 Mar 2022 - Agenda - Pdf CITY OF RENTON AGENDA - Committee of the Whole Meeting 5:30 PM - Monday, March 21, 2022 Videoconference 1. RETIREMENT SAVINGS AND HEALTH INSURANCE PLANS a) Presentation 2. RISK MANAGEMENT 502 INSURANCE FUND REVIEW a) Presentation 3. COUNCIL CHAMBERS AUDIO, VISUAL, AND BROADCASTING UPDATE a) Presentation Currently, due to the spread of COVID-19, all regularly-scheduled committee meetings will be held as necessary via video-conference. City Hall is closed to the public. If you would like to attend this week's meeting remotely, you can do so by going to https://us02web.zoom.us/j/86753290028?pwd=M2pOc09HWWNrY05uVnlIWnpGS1E4UT09 Zoom Meeting ID: 867 5329 0028, Passcode: 881839 You can call through Zoom at (253) 215-8782 and use the Meeting ID. Employee BenefitsHealth Plans & Retirement Savings PlanMarch 2022AGENDA ITEM #1. a) Health Plans AGENDA ITEM #1. a) •The City offers a self‐funded medical, prescription, dental, and vision plan administered by HMA, with Stop Loss at $250,000 per individual per year.•Kaiser is offered as an alternative to the self‐funded plan.•The Renton Employee Health Plan (REHP) board sets plan design premium contribution rates, based on actuarial projected future claims and other expenses, and the current reserve balances. •Voting members of REHP are the CAO and two union presidents.•Premium cost share between the City and employees are determined through collective bargaining and are currently 91% / 9%.•Also offered are Life and Disability insurance, an Employee Assistance Plan (EAP), and Flexible Spending Accounts (FSA).Benefits Plan OverviewAGENDA ITEM #1. a) MedicalAdded benefits: Vision Therapy and Knee InjectionsCost savings measures: Specialty Copay Assistance ProgramCopay changes: Align Telemedicine to Office VisitAlign Out‐of‐Network Ambulance to In‐Network AmbulanceOther: Decreased Hearing Aid Benefit Frequency to 36 monthsDentalNo changesVisionNo changesPlan Design Changes AGENDA ITEM #1. a) Increase in fees (approved by Council)•HMA 4.2%•Kaiser 5.2%•Stop Loss 50.1%Board approved increase in premiums•Medical 4.8%•Dental3.0%•Vision 0.6%Other Benefits•Life and Disability: No change•Employee Assistance Program: No change•Flexible Spending Account: No changeExpenses and PremiumsAGENDA ITEM #1. a) Medical•Paid claims ratio 99.8% gross, 93.2% net (2020 85.8% net)•Stop Loss had 4 claimants with $882K reimbursed (2020 had 2 claimants with $322K reimbursed)•Pharmacy accounts for 18.5% of total claimsDental•Paid claims ratio 87.5% (2020 was 71.6%)Vision•Paid claims ratio 98.2% (2020 was 112.5%)Claims Overview AGENDA ITEM #1. a) Claims and Cost Trend‐1,8001,6001,4001,2001,000800600400200Cost Per Employee Per Month2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021Med/ Vision RX Dental Excess / Admin CityProg+8.5%+8.4%+1.0%‐5.6%+8.3%+3.4%+12.5%‐2.0%+6.3%‐5.4%+8.0%AGENDA ITEM #1. a) Plan FinancialsTarget Reserves for 2022Expected Claims $12,616,954Target Reserves 40.0%Target Reserves Amount $5,046,782Change in Reserves during 20211/1/2021Reserve Balance $5,290,231Plus: Premiums Paid $12,620,333Less: Expenses‐$12,676,553Plus: Stop Loss Reimbursement $892,79312/31/2021Reserves $6,126,805Changein Reserves $836,573Actual Reserve to Begin 2022Reserves/Expected Claims 48.6%Excess Reserve Amount $1,080,023 AGENDA ITEM #1. a) Plan Reserve Trend$0$1,000,000$2,000,000$3,000,000$4,000,000$5,000,000$6,000,000Target reserve 40% of actuarial expected claimsMinimum reserve 30% of actuarial expected claimsRate holidayWAC 200‐110‐040 requires reserves of approximately 30% of actuarial projected expenses for the year.  The Board targets reserves at 30% to 40% and set contributions based on both actuarial projected expenses and reserve balances. Reserves will increase or decrease each month, depending on whether actual expenses are higher or lower than contributions. AGENDA ITEM #1. a) QuestionsWhat questions do you have? AGENDA ITEM #1. a) Deferred Compensation457(b) Retirement Savings PlanAGENDA ITEM #1. a) Deferred Compensation Plan•In addition to the State pension plans, the City offers a Deferred Compensation Plan (DCP) for retirement savings plan under IRS code 457(b). •Multi‐employer plan, with the Renton Regional Fire Authority.•The plan is governed by the DCP Committee, who are the named fiduciaries. •The Committee selects and monitors investment options, negotiated plan fees, and selects and monitors the work of the Record Keeper and Advisor.AGENDA ITEM #1. a) Governance Structure•Voting Committee members are:•City CAO•Renton RFA Fire Chief•City HRRM Administrator•City Administrative Services Administrator•The Committee welcomes involvement from employees.  Meeting material and minutes are posted on SharePoint.  Union members and and non‐represented staff regularly attend Committee meetings.•The Committee maintains due diligence through quarterly review meetings and relies on services of co‐fiduciary advisor.  Fiduciary training is conducted for new Committee members.•The Committee bases their work on adopted•Investment Policy Statement•Operating GuidelinesAGENDA ITEM #1. a) Investment OptionsThe Committee ensures that investment options encompassing a variety of risk/return characteristics.  Participants self‐direct their portfolio based on time horizon and/or risk tolerance.•Multi‐Asset Target Date Funds ‐Default investment•Core Funds (number of funds in category)•(2) Stable Value / Money Market •(4) Bond •(3) Large Cap US Equity •(3) Mid Cap US Equity •(1) Small Cap US Equity•(4) International Equity •(1) Specialty –Real estate•Brokerage WindowAGENDA ITEM #1. a) 0.00%0.10%0.20%0.30%0.40%0.50%0.60%City/RFA 2019 City/RFA 2020 City/RFA 2021 Benchmark2021Fees & Expenses to BenchmarkPlan Admin ExpenseRecord Keeping ExpenseWeighted Average Fund Expense•The Committee negotiates fees and expenses with service providers. •Fees are paid by participants through withdrawals from their accounts.  •Benchmark –Captrust composite for similar size plans in 2021Deferred Compensation – Fees AGENDA ITEM #1. a) Plan & Participant ProfileYear end 2021AGENDA ITEM #1. a) QuestionsWhat questions do you have?AGENDA ITEM #1. a) 2021 Risk Management 502 Insurance Fund Review March 21, 2022 Kelsey R. Urban, MBA, ARM-P, PHR Risk Manager AGENDA ITEM #2. a) 502 Insurance Fund History Total Expenditures •2017 $2,761,531 •2018 $3,043,070 •2019 $3,206,310 •2020 $2,719,753 •2021 $3,880,421 AGENDA ITEM #2. a) 502 Insurance Fund The 502 Fund is an Internal Service Fund that is used for four main purposes: 1.Claim Costs •Workers’ Compensation •Unemployment •Liability Claims •Property Damage Losses 2.Premiums for Insurance and Excess Insurance Coverage 3.Administrative Expenses, including Litigation 4.Recovered Funds/ Subrogation AGENDA ITEM #2. a) 1. Claims and Losses Self-Insured Retentions (SIRs) & Deductibles •Workers’ Compensation ($500,000 SIR) •Liability ($250,000 SIR) •Auto Liability ($250,000 SIR) •Property ($50,000 Deductible) •Crime ($10,000 Deductible) •Cyber ($50,000 Deductible) •Auto Physical Damage ($25,000 Deductible)AGENDA ITEM #2. a) Workers’ Compensation •Workers’ Compensation Statutory coverage of employees plus the optional coverage of volunteers for occupational injuries and illnesses as directed by the Washington Department of Labor & Industries. •Partnership between Benefits and Risk Management. •Use of Third-Party Administrator, Eberle Vivian Inc, to process and manage. •Excess insurance begins at $500,000 per claim (2021). •100% Employer Paid –Employees do not contribute toward benefits.AGENDA ITEM #2. a) Workers’ Compensation Claims Claims and Costs •2017 $172, 940 35 claims •2018 $306,537 56 claims •2019 $314,098 42 claims •2020 $439,429 32 claims •2021 $625,227 30 claims AGENDA ITEM #2. a) •Unemployment Unemployment insurance benefits provide temporary financial assistance to workers unemployed through no fault of their own that meet Washington's eligibility requirements. •The HR Labor Division manages Unemployment. •100% Employer Paid –Employees do not contribute toward benefits. Unemployment AGENDA ITEM #2. a) Unemployment Claims Comparison 2021:31 Claims $59,376.40 *Pandemic-related separations of supplemental employees $86,903 $37,850 $87,557 $51,343 $53,371 $47,860 $141,860 $59,376 2014 2015 2016 2017 2018 2019 2020*2021 Unemployment Claims Costs AGENDA ITEM #2. a) Property •Property Insurance Property insurance provides internal financial protection to city-owned property from perils such as fire, theft, vandalism, flood, earthquake, and weather damage. Property covered includes the insurable portions of buildings, contents, public artwork, and mobile equipment. •$50,000 Deductible, Per Occurrence •Risk Management Division AGENDA ITEM #2. a) 2021 Insured Property Values* •Structures ≈$322,308,200 •Building Contents ≈$20,749,700 •Automobiles ≈$10,981,700 •Inland Marine (Equipment) ≈$1,752,000 •Public Art ≈$276,800 •Total Insured Property $356,075,752 *City-Wide as of 6/29/21 AGENDA ITEM #2. a) Renton Property Loss Costs •2017 •2018 •2019 •2020 •2021 $255,668 $216,455 $113,969 $35,636 $102,701 AGENDA ITEM #2. a) Liability •Liability Helps protect the city’s financial statement from the financial risks imposed by lawsuits and claims of negligence. •$250,000 Self-Insured Retention •Excess Liability Insurance begins at $250,000 per claim (2021). •Risk Management Division AGENDA ITEM #2. a) Most Common / High Cost / High Visibility •Bodily Injury •Property Damage •Automobile •Civil Rights Violations Partnership with City Attorney fundamental to our success. Liability Claims AGENDA ITEM #2. a) Number of Liability Claims Average 67.3 Claims/Year 76 69 66 67 52 67 59 80 37 60 0 10 20 30 40 50 60 70 80 90 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Number of Claims AGENDA ITEM #2. a) 9%5%2% 29%55% 2021 Claim Percentage by Department CED CS Other Police PW Numbers of Liability Claims by Department 2021 •Settle 30-40% of Claims (2021: 42%) •~50% Claims involve Auto •2021: 22% MVAs AGENDA ITEM #2. a) City’s Cost of Liability Claim Trends $673,552 $229,154 $455,475 $545,599 $99,845 $211,682 $95,249 $110,439 $117,694 $523,215 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Liability Claim Settlement Costs by Year AGENDA ITEM #2. a) Lines of Coverage: •Liability – •General •Automobile •Public Officials •Employment Practices •Employee Benefits •Airport •Cyber •Underground Storage Tank •Pollution •Stop-Gap •Law Enforcement •Property •Flood and Earthquake •Automobile Physical Damage (not auto replacement) •Workers’ Compensation •Boiler and Machinery •Employee Fidelity/Crime Bonds •Drone 2. Insurance Premiums AGENDA ITEM #2. a) Property Insurance Premiums Property •2021 Property Insurance Costs $757,792 •2020: $561,749 premium, 35% increase •Hardening of the Insurance Market •Property Insurance, including Cyber, is expected to go up another 30% for our July 1, 2022 renewal. AGENDA ITEM #2. a) Liability Insurance Premiums General Excess Liability •2017: $271,081 (0%) •2018: $276,916 (2%)•2019: $305,834 (10%) •2020: $328,105 (7%) •2021: $393,687 (20%) •Renton has experienced a very good loss run record for the last 5 years, with zero losses over $250,000 (2021).AGENDA ITEM #2. a) 3. Administrative Expenses Broker Fees •Broker, Alliant Insurance Services Liability Claim Management •13% Third Party Administrator, Carl Warren Company •87% by Risk Management Litigation Defense •$124,254 Defense Costs 2021 •Resolved 2 Cases, 7 Remain Open Risk Mitigation Measures •Safety "Loss prevention yields greater results than loss control."AGENDA ITEM #2. a) 4. Recovery of Costs/ Subrogation Subrogation Recovery of costs incurred to repair damage to city- owned vehicles and property from responsible third parties and insurance. •Risk Management Division •Average >$100,000/year in recovered funds •2016-2020 $614,000 •2021 $111,510 AGENDA ITEM #2. a) Additional Information •Council approves: January 1, 2016 departure from WCIA Risk Pool •Savings: Insurance Premiums >$200,000/year, Administrative Costs Savings, Control of Liability Claim and Litigation Outcomes •Increased involvement by City Attorney’s office on liability claims with litigation potential. •In-house Risk Mitigation (Safety, Claim Management and Risk Strategies) is key to savings.AGENDA ITEM #2. a) Top Risk Concerns •Liability with COVID-19 •Aging Subsurface Infrastructure •Police Liability •Joint and Several Liability •Public Records Violations AGENDA ITEM #2. a) Questions What questions may I answer?AGENDA ITEM #2. a) Council Chambers Audio/Visual & Broadcasting Upgrades Project 2022 March 21, 2022 -Committee of the Whole Jason Seth, City Clerk/Public Records Officer 1AGENDA ITEM #3. a) WELLS-WILLIAMS: PROJECT GOALS •Aging equipment –Most of the equipment is over 17 years old –Some equipment does not operate correctly –Gives Council Chambers more professional look Council Chambers Equipment Overdue for Modernization 2 AGENDA ITEM #3. a) WELLS-WILLIAMS: PROJECT GOALS •Council approved the project at its January 24, 2022, Council meeting, including a budget adjustment request. –Total budget authorized $326,939.42 Project Funding 3 AGENDA ITEM #3. a) WELLS-WILLIAMS: PROJECT GOALS •Avidex Industries, LLC –Awarded state contract for audio and video solutions –Recently completed local projects include »Sumner Council Chambers upgrades »Burien Council Chambers upgrades »Redmond City Hall Project Contractor 4 AGENDA ITEM #3. a) WELLS-WILLIAMS: PROJECT GOALS •Bringing Equipment up to Industry Standards •Future-proofing the Chambers so it will be ready for any new technology •Establishing seamless transition from in-person to hybrid in-person/virtual meetings •Removing barriers to increase accessibility for residents to attend and participate in Council meetings What’s Changing? 5 AGENDA ITEM #3. a) AUDIO NEW 15 Microphones Speaker Systems Press Boxes Assistive Listening Technology VISUAL NEW 86” 4K Monitor 65” 4k Monitors 22” 4K Monitor 65” Digital Sign 10” Touch Panel Document Camera BROADCASTING New Broadcasting Platform Network Cameras Videobooth Monitors Broadcast Server BYOD Technology Teleprompter CHAMBERS A/V & BROADCASTING UPGRADES EXTRAS New Monitor in 7th Floor Conf. Center 7” Touch Panel BYOD Technology Mobile Production CartGENERAL PROJECT DETAILS6 AGENDA ITEM #3. a) CHAMBER A/V & BROADCASTING UPGRADES PROJECT TIMELINE •Project Solicited Sep 2021 •Contract Awarded to Avidex Industries, LLC •Facilities Coordination Jan 2022 •Pre-Construction Meetings •Contractor Submittals Feb 2022 Feb/March 2022 Contractor procuring parts •Construction begins April 18 •Completed by end of May April/May 2022 •Contract acceptance and final paperwork completed by end of June June 2022 We are here * Contractor's schedule subject to change 7 April 2022 Council returns to Chambers?AGENDA ITEM #3. a) WELLS-WILLIAMS: PROJECT GOALS •Supply Chain Issues: •Wireless microphones –Mics won’t be available until mid-May 2022 –Existing microphones will be used until the new mics are available •Digital Signage player-device –No estimated shipping date for this device –Does not affect the meeting and can be installed when available •Touch panels –Will use Ipads until the touch panel devices are available Challenges impacting timeline 8 AGENDA ITEM #3. a) WELLS-WILLIAMS: PROJECT GOALS •Return to in-person meetings: •Resolution 4427 adopted March 15, 2021. •Governor’s Emergency Proclamation requires us to provide a way for members of the public, staff, and Council to attend Council meetings virtually. •Council’s Remote Attendance policy (Policy & Procedure 800-13) does not align with current operations. –Recommendation is that Council review this policy to ensure it meets current needs regarding virtual attendance at the upcoming Council retreat. For Council consideration 9 AGENDA ITEM #3. a) WELLS-WILLIAMS: PROJECT GOALS •Parts and supplies delivered the week of April 11, 2022. •Construction begins the week of April 18, 2022. •cameras will be decommissioned prior to the installation of the new cameras •Installation of new equipment expected to take three to four weeks. •Expect completion, except for microphones, May 23, 2022 Project impacts to in-Chamber meetings 10 AGENDA ITEM #3. a) WELLS-WILLIAMS: PROJECT GOALS 1.Prepare existing equipment to conduct hybrid meetings at council request •During construction we may have to return to virtual meetings temporarily; or –Use the Council Chambers, but do not broadcast on Channel 21; or –Use the 7th Floor Conferencing Center, but cannot broadcast on Channel 21 2.Transition to new equipment as project progresses 3.Train staff on use of equipment •No training for Council required Next steps for staff: 11 AGENDA ITEM #3. a) WELLS-WILLIAMS: PROJECT GOALS •Discuss and determine return date to Chambers (today or at retreat) •Consider updating Policy 800-13 to align it with today’s virtual attendance options Questions? Next Steps for Council 12 AGENDA ITEM #3. a)