Orange County NC Website
Browse       Search
• <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS ACTION AGENDA <br /> ACTION AGENDA ITZZM ABSTRACT ITEM CVO <br /> MEETING OATS January 20 , 1987 F <br /> SUBJECT: SETTING UP ACCOUNTS FOR DEDUCTIBLES AND RISK MANAGEMENT PROGRAMS 070 <br /> �M.�4RTM�i1T: 1 T <br /> f PURCHASING & CENT. SRVS. I PUBLIC HEARING: YES _MO <br /> 4 r1TinC:�ti1T S� : CONTACT: <br /> INFORMATION Pare Jones, ext 497 <br /> _ 1 <br /> -.- - PHONE NUMBERS: HILLSBOROUGH - 732-3181 <br /> HILLSBOROUGH - 732-9361 <br /> NONE CHAPEL HILL - 967-9251 <br /> MEBANE - 227-2031 <br /> OURHAM - 688-7331 <br /> PURPOSE: To- set up budgetary accounts to cover the cost of deductibles and the <br /> first step in implementation of a risk managemeht_program. <br /> NEED: The 1986 General Liability renewal brought with it new options, which after <br /> intensive review Orange County opted to exercise. These options included <br /> deviating from a standard insurance policy and joining with other Counties <br /> in the insurance pool set up by NaCo -.through Fred S. James. As was reflected <br /> in the meeting held December 19, there was a savings of approximately $25,000 <br /> by going this route. It was suggested by the Director of Purchasing the <br /> $25,000 savings be placed in an account titled "Reserve for Deductibles". <br /> Since the deductible amount is considerably larger than previous policies, <br /> this would help minimize potential budgetary_inpact to the individual department <br /> accounts, as well as provide a tracking method for payment of deductibles, <br /> which would alert us to potential problem areas early on. <br /> Also proposed at the December 19 meeting was a second account which would <br /> enable the County to set up a data base to track claims activity and to <br /> begin a safety program with primary focus on worker and driver safety. <br /> This safety program, a preventative measure, is imperiive in light of the <br /> increased deductible amount. $3,000,to be transferred from the Central <br /> Services Insurance account,is requested for this function. <br /> IMPACT: A total of $28,000 would be transferred from the Central Services Insurance <br /> account to create the two new accounts. There is adequate surplus in this <br /> account to cover these activities. " <br /> RECOMMENDATION: To authorize the formation of two accounts within the Central Services <br /> budget and to approve the funding level as stated below: <br /> 1. Reserve for Deductibles, $25,000, account 10-590-52; and <br /> 2. Risk Management Programs, $3,000, account 10-590-53. <br />