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