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November 20, 2003 Page 4 It was moved by Holt, seconded by Berger, and carried 5-0 to adopt the submitted Board of Directors 2004 meeting schedule. 9. ITEMS FOR DISCUSSION A. Insurance Coverages Jorgensen referenced the original document and addendum. He articulated the District's risk management strategies which include regular staff analysis of policies, a thorough investigation of each claim, an unwillingness to automatically pay a claimant, an aggressive ongoing inspection effort, periodic educational programs for employees, and mandatory insurance certificates and hold harmless agreements from participants and facility users. In response to Gibson's inquiries, staff explained that after the District became self-insured, the decisions to first purchase and then drop excess Workers Compensation coverage were staff decisions and all insurance decisions are based on what is best in the long- and short-term for the District; the current cash balance in the Insurance Trust Fund is about $3.9 million, but most claims are paid out of current revenue; since, in the last five years the District has not paid out $250,000 for the total of all claims, and since the deductible for Workers Compensation insurance is $250,000 per occurrence, staff determined that excess insurance was not a good value; it was staff recommendation to purchase excess General Liability insurance with a $100,000 SIR in the mid 1990's and the decision to renew this year's policy is pending; for several years the District has been in a pool called Special Liability Insurance Program (SLIP), which is similar to PARDEC and CAPRI, and the renewal premium is $94,172 without a Terrorism Premium; the District carries Property and Contents as well as Commercial Crime Insurance coverage; Public Officials Errors and Omissions coverage, which protects Board members, is included in the District's Excess Liability Insurance Policy; when necessary, the District currently uses Carl Warren & Company as a claims administrator and Archbald Spray as legal counsel; such fees are charged to the current budget; the decision to become self-insured has resulted in significant savings to the District; although the District has not consolidated risk management policies into a single document, the strategies exist and are implemented through district -wide policies and procedures, and the District safety manual that covers a multitude of situations.