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3 <br /> 1 Gary Donaldson said it would be for claims. He said there are two accounts, one for <br /> 2 premiums and one for claims. He said that there are funds budgeted for each in the FY23 <br /> 3 budget. He said despite these funds, the underwriter still said the insurance agency would <br /> 4 require a letter of credit. <br /> 5 Commissioner Fowler said the letter of credit is available for whenever the county needs <br /> 6 it. <br /> 7 Gary Donaldson said that was correct. <br /> 8 Commissioner Hamilton asked for more information on what scenarios would require the <br /> 9 flexibility of a $500,000 cap on the letter of credit. <br /> 10 Gary Donaldson said he does not think the $500,000 cap is an onerous position for the <br /> 11 county. He said the language was requested, so it was added, but the actual letter of credit is <br /> 12 for $300,000. <br /> 13 Bonnie Hammersley introduced Alisa Cornetto, Risk Manager. <br /> 14 Alisa Cornetto said the $500,000 would also be available for a cost-benefit analysis. <br /> 15 She said that over time as losses improve, it may make sense to increase the deductible and <br /> 16 save the county money. She said it would provide flexibility for the County Manager. <br /> 17 <br /> 18 A motion was made by Commissioner McKee and seconded by Commissioner Fowler <br /> 19 to: <br /> 20 1) Ratify the County Manager's execution of an agreement with Travelers Indemnity Company <br /> 21 for insurance coverage; <br /> 22 2) Authorize the County Manager or her designee, the Chief Financial Officer, to execute the <br /> 23 required $300,000 Letter of Credit for Travelers Indemnity Company; <br /> 24 3) Authorize the County Manager or her designee, the Chief Financial Officer, to execute any <br /> 25 renewals, amendments, or extensions, and other associated legal documents as necessary <br /> 26 to meet Travelers Indemnity Company's Letter of Credit and Guaranty Agreement <br /> 27 requirements; <br /> 28 4) Authorize the County Manager or her designee, the Chief Financial Officer, to make <br /> 29 changes to any of the legal documents prior to execution, consistent with this approval; and <br /> 30 5) Authorize the County Manager or her designee, the Chief Financial Officer, to sign and <br /> 31 submit an application to Truist Bank for a Letter of Credit cap not to exceed $500,000. <br /> 32 <br /> 33 VOTE: UNANIMOUS <br /> 34 <br /> 35 A motion was made by Commissioner Fowler and seconded by Commissioner Hamilton <br /> 36 to adjourn the meeting at 6:44 p.m. <br /> 37 <br /> 38 VOTE: UNANIMOUS <br /> 39 <br /> 40 <br /> 41 <br /> 42 Renee Price, Chair <br /> 43 <br /> 44 Laura Jensen <br /> 45 Clerk to the Board <br /> 46 <br /> 47 Submitted for approval by Laura Jensen, Clerk to the Board. <br />