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Establish a new fund and transfer authority for the property insurance budget to County Counsel from Human Resources; and Delegate authority to the County Administrator to take any and all actions necessary to complete the transfer including signing authority and any budget adjustments
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _ X_
DEPARTMENTAL RECOMMENDATION:
The Office of County Counsel recommends the Board of Supervisors:
1. Establish a new fund and transfer authority for the property insurance budget to County Counsel from Human Resources; and
2. Delegate authority to the County Administrator to take any and all actions necessary to complete the transfer including signing authority and any budget adjustments.
SUMMARY:
On December 14, 2021, the Board approved the transfer of responsibility for the County’s General Liability Program to County Counsel from the Director of Human Resources. This transfer coincided with a change to the Solano County Self-Insured General Liability (GL) Program self-insured retention, increasing the per claim/occurrence deductible based on an actuarial study that anticipated significant new savings in program costs in future years. At that time, the County assumed a greater level of involvement in managing and administering GL Program under the direction of the Claims and Civil Litigation Manager.
Currently, Human Resources manages the property insurance program. This program covers assets owned by the County where any damages/losses the County incurs are covered by insurance. To improve oversight and increase involvement in managing the County’s property insurance program, County Counsel and the Human Resources Department are recommending that the property insurance program be shifted to County Counsel. By combining the County’s GL and property insurance program under one dedicated team managed by the Claims and Civil Litigation Manager, the County will achieve greater operational efficiencies as these programs have overlapping responsibilities. This shift in property insurance program management requires the creation of a new fund that would be under the control of County Counsel effective April 10, 2024.
FINANCIAL IMPACT:
There is no net impact on the General Fund on the transferring of the property insurance program (Risk Management Fund 060 BU 1824) to County Counsel or the creation of a new fund.
DISCUSSION:
Solano County has participated in the Public Risk Innovation, Solutions, and Management (PRISM) general liability program since July 1, 1981 and the property insurance program since June 30, 1984 (previously known as CSAC-EIA). On April 7, 2020, the Board approved the addition of a Claims and Civil Litigation Manager in County Counsel to provide liability claims processing and claims manager services along with advice and consultation to County Counsel and the Board on the status and settlement of claims. Under the direction of the Claims and Civil Litigation Manager, the County’s GL Program has improved both in efficiency and transparency.
Since the hiring of the Claims and Civil Litigation Manager, it became clear that the County’s property insurance program should also be shifted to the control and responsibility of County Counsel rather than Human Resources. This shift will improve the County’s overall risk management functions as it will allow additional oversight over County’s insured assets under one dedicated risk management team.
County Counsel and the Human Resources Department are recommending that responsibility for the County’s property insurance program shift to County Counsel. Once approved by the Board, County Counsel will then work with Human Resources to shift the responsibility for the countywide cost allocation projections to County Counsel to prepare as part of the annual budget preparation.
ALTERNATIVES:
The Board could choose to not establish a new fund and transfer authority for the property insurance budget to County Counsel from Human Resources; however, this is not recommended as the County will benefit both financially and operationally from the shift of the property insurance program management to County Counsel. The proposed actions are intended to improve the County’s overall risk management functions.
OTHER AGENCY INVOLVEMENT:
County Counsel and the Director of Human Resources have worked with the County Administrator’s staff and the Auditor-Controller on this item.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION