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Directors Present: Carl Rogers, Jackie Higgins, Aaron Frank, Dave Atherton, Jared Cadwell (10:35 a.m.), Stuart Hurd, Patrick Moreland, Bryan Young, Bruce Urie, Erik Wells, Rob Gaiotti and Judy Frazer

Staff Present: Ted Brady, Joe Damiata, Fred Satink, Seth Abbene, Heather Hood, Phil Woodward, Peggy Gates, Jill George, Kelly Kindestin, Trisha Clark, Pam Blouin, Susan Rowell, Terri Crawford and Kelley Avery

Others Present: Steve DiCenso and Julia Rosen (Milliman)

President Rogers called the meeting to order at 10:01 a.m.

Upon motion (Hurd/Higgins) duly adopted, the board voted unanimously to approve the agenda.

Upon motion (Hurd/Higgins) duly adopted, the board voted unanimously to approve the minutes of the December 17, 2021 meeting.

Joe Damiata provided a brief organizational update to the board including the following items:

  • The new Loss Control Manager, Jeff LaBossiere, started a few weeks ago, and Heather Hood has also started as the new Senior Financial Reporting Analyst.
  • Staff continues to pursue subletting or early lease termination options with the City Center landlord. 
  • VLCT has a new COVID-19 Vaccination Policy which requires proof of vaccination or proof of a recent negative covid test. The policy applies to all staff and office visitors. 
  • VLCT has selected a vendor for a new phone system pending final VLCT Board approval.
  • VLCT has issued a request for information for an association management system (AMS). 
  • Ted Brady and the Leadership Team are revising the VLCT Strategic Plan and hope to present to the VLCT Board by March.
  • Judy Frazer, new PACIF Board alternate, will be attending the AGRiP Governance Conference in March. Bryan Young and Dave Atherton will be attending the NLC-RISC Conference in May.
  • Upcoming meetings include: the Joint Investment Committee Meeting March 11th, the Strategic Planning Committee Meeting March 16th, and the PACIF Board Meeting on  April 1st.

President Rogers noted that a Conflict of Interest Disclosure form was included in the board packet. DFR requires that board members complete this form annually. Completed forms should be returned to Adam Davis at VLCT as soon as possible.

Fred Satink provided an update to the board regarding the 2022 PACIF renewal. As previously noted, there was 100% retention. With regard to reinsurance costs, he outlined that the actual costs based on the renewal exposures were roughly $213K more than what was budgeted. The primary driver of this difference was the fact that the exposures used by Guy Carpenter for the reinsurance renewal quotes did not include the renewal inflation factors. In the future, staff will provide Guy Carpenter with the exposure data and the PC/WC inflation factors to prevent a recurrence of this issue.  

Jill George reviewed PACIF claims for the fourth quarter. Although workers’ compensation (WC) claim counts for Q4 were lower than average, Ms. George noted claims related to COVID-19 substantially increased, and COVID-19 related claims for January are already higher than the count for the entire fourth quarter. WC costs were higher than the Q4 average but lower than the average for all quarters. Property and casualty claim counts for Q4 were down, and averages costs were down as well.

Upon motion (Higgins/Moreland) duly adopted, the board voted unanimously to accept the Q4 Claims Report as presented.

Due to running ahead of schedule, the board opted to move to agenda item #7 on the Redhand Advisors tech assessment results. Mr. Damiata noted a copy of Redhand’s report was provided in the board packet. To summarize, Redhand confirmed that PACIF’s current claims and policy systems have a number of weaknesses and identified numerous processes that occur outside of the primary systems. They recommended evaluating potential systems in an attempt to identify one which can incorporate many of the current workaround processes and improve both operational efficiency and external user (portal) experience. Staff is conducting preliminary research into potential alternative systems and will report back to the board in April with a recommendation on whether to move ahead with a formal RFP process.

Steve DiCenso and Julia Rosen presented a review of their Actuarial Analysis of Loss and Loss Adjustment Expense Reserves Report through December 31, 2021. Milliman’s central reserve estimate for 2021 is at $39,116,805, an increase from the 2020 estimate of $35,909,685.

Upon motion (Frank/Atherton) duly adopted, the board voted unanimously to accept the Actuarial Analysis of Loss and Loss Adjustment Expense Reserves as of 12/31/21 with carried reserves at the central estimate of $39,116,805.

Kelly Kindestin, Property & Casualty (P & C) Claims Manager, provided an overview to the Board on the P & C claims area forms, processes, procedures, claims statistics, and responsibilities. Each staff person introduced themselves to the board.  Ms. Kindestin also provided a brief overview of case and litigation management including attorney assignment and investigations.  

Joe Damiata reviewed various bills in play under the 2022 legislative session.  The only bills that have had any movement so far this session are S.250 and S.254.  Both bills impact qualified immunity for certified law enforcement officials.  S.250 was just introduced in the Senate yesterday, while S.254 has been in play for several weeks and has received a great deal of testimony from various organizations, including VLCT.  VLCT officially opposes these bills and has provided testimony raising issues about potential effects on officer hiring, morale, and retention – as well as potential impacts to liability reinsurance and coverage limits. Staff will continue monitoring these bills, and all other potentially impactful bills, and will keep the board informed on any developments. 

Upon motion (Moreland/Hurd), duly adopted, the board voted unanimously to adjourn the meeting (11:37 a.m.)

Respectfully submitted,    

Fred Satink, 
Assistant Secretary

Board or Committee: 
PACIF Board of Directors
Board/Committee Meeting Date: 
Friday, February 11, 2022

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