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Kane County

KC Human Services Committee

Meeting Minutes

SURGES, Linder, Allan, Kenyon, Lewis, Silva, Tarver & ex-officios Pierog (County Chair) and

Tepe (County Vice Chair)

Wednesday, October 9, 2024

9:00 AM

County Board Room

Call To Order

Chairman Surges called the meeting to order at 9:05 AM.

Surges explained that due to illnesses, the Human Services Committee is finding it

difficult to establish an in-person quorum. He noted that the resolutions on today's

agenda will be up for discussion only.

Roll Call

An in-person quorum was not established as of 9:06 a.m. This meeting was for

informational purposes only.

Board Member Clifford Surges

Board Member Anita Lewis

Board Member Monica Silva

PRESENT

Board Member Michael Linder

REMOTE

Board Member Deborah Allan

Board Member Michael Kenyon

Board Member Bill Tarver

Ex-Officio County Board Chair Corinne M. Pierog

Ex-Officio County Board Vice Chair Vern Tepe

Also present: Co. Bd. Members Davoust*, Juby, Kious, Molina*, Roth; HRM Exec. Dir.

Lobrillo; Spec. ASA Shepro; KCAC Admin. Youngsteadt; ITD staff Peters; and

members of the press and public including Presidio Insurance Representative Jerry

Orpen.

Remote Attendance Requests

No quorum was established. No remote attendance requests were voted upon.

Approval of Minutes: September 11, 2024

No quorum was established. The meeting minutes will be forwarded to next month's

Human Services Committee meeting.

Public Comment

None.

Monthly Financial Reports

Monthly Finance Reports

Chairman Surges stated the monthly financial reports were on file. No additional

report was made.

Department of Human Resource Management

Monthly Blue Cross Blue Shield Invoice

HRM Exec. Dir. Lobrillo stated the following five monthly reports were on file and

within tolerance. No additional report was made. Lobrillo addressed questions

and comments from the Committee. Discussion ensued. (Madam Chairman

Pierog arrived remotely at 9:08 a.m.)

Monthly BCBS and MERP Totals

Monthly Assured Partners Report

Monthly Applicants and Staff Changes

Monthly Workers Comp and Liability Reports

Compliance

Monthly Training Report

HRM Exec. Dir. Lobrillo stated the monthly Compliance Report was on file. She

stated that County employees have been doing well at completing the annual

sexual harassment training.

Old Business

Chairman Surges thanked the County Board for voting to hold back the merit increase

resolution to the next Human Services Committee meeting for further review.

10.

New Business

Approving Payment of Commercial Insurance FY2025 Including Auto, Property,

General Liability, Law Enforcement, Employment Practices, Public Official

Liability, Excess Liability and Workers Compensation, and a Service Agreement

with Acrisure Insurance

Chairman Surges introduced Jerry Orpen with Presidio Insurance. He spoke on

Kane County's insurance challenges over the past several years. (Committee

Member Allan arrived remotely at 9:12 a.m.) He explained the difficulties of the

insurance industry restructuring and the hindrance it has had on insurance rates.

HRM Exec. Dir. Lobrillo mentioned that Kane County insurance rates basis has

increased, due to the County obtaining more vehicles and employees. However,

the County's insurance rate has not changed significantly. She explained that

the overall increase in salaries has increased the workers' compensation

premium. This increase is not due to an influx in incidents, but because the base

in which the insurance rates are calculated upon has increased, along with the

County's property base, such as the $8M election equipment. Lobrillo, again,

explained that the increase in the insurance cost is mainly due to the influx in the

County's base. Discussion ensued.

Presidio Insurance Representative, Jerry Orpen, stated that the insurance

market has been challenging. Just yesterday, he found out that Hurricane

Helene has brought on approximately $14B in claims. Orpen explained that a lot

of the County's insurance increase is due to payroll and employee headcount.

Committee Member Silva explained that she attended a disaster preparedness

policy institute. At this institute, she learned that events will happen more

frequently. She asked how the County can best protect itself, in terms of

insurance policies. Discussion ensued.

Orpen spoke on the County's current insurance protection and the potential of

meeting with a safety engineer to help find ways to protect the County further.

He explained that the reinsurance market is what is driving the increase in cost.

Reinsurance is for insurance companies. This risk is spread throughout the

entire global reinsurance community. Orpen spoke on the recent flooding in the

United States and around the world. Discussion ensued on the lack of insurance

secondary funds and how the recent disasters and storms that have hit the

United States have affected this.

Orpen reviewed the Kane County Property and Liability Insurance 2024-2025.

He explained that the expiring rate for Kane County was 2.7%. In order to get

the new rate, the County must wait for two layers to come in for it's access

tower. Orpen stated that Presidio Insurance has found a new carrier, Old

Republic, to write the $5M excess liability. Surges asked how much of the 3.2%

increase is based on Kane County's actions and how much was external. Orpen

stated that 16% of the increase came from the County's increase in payroll. He

explained that insurance carriers are increasing the value of buildings to account

for inflation and increased costs in building material replacement. He stated that

the property liability insurance was increased by $15M in coverage. This is a 4%

increase in property values. The premium increase is 15%, which is mostly

external impacts. Orpen stated that Liberty Mutual Insurance has been asking to

look into the County's property to evaluate the cost of the County's buildings to

re-access the insurance costs. He explained that Traveler's Insurance sent a

letter to the County stating that they were going to get rid of the blanket limit and

add a margin clause. The margin clause means that every insured value of the

County's buildings, would add 10%. In the event of weather or property loss, the

County was only going to receive the value of the building, plus 10%. Orpen

explained that the benefit of a blanket limit is that the County has $336M

available for each and every claim. He stated that Presidio did not want

Traveler's to get rid of the blanket limit, because it works in the County's favor.

Presidio was able to get Traveler's to reevaluate this change. Orpen spoke on

the additional increases Traveler's Insurance was trying to put on the County.

Orpen addressed questions and comments from the Committee. Discussion

ensued.

Surges spoke on the importance of passing this resolution by the November

County Board meeting. He explained how the increase in property replacement

insurance materials have affected the insurance rates. Much discussion ensued

on the excess carriers pending policy premium costs and the County's positive

claim history.

Lobrillo explained that the benefits of implementing a Risk Manager position to

help with insurance premiums on County staff.

RESULT:

HELD OVER

Authorizing Flexible Benefits as Kane County’s Medical Expense

Reimbursement Plan Administrator for 2025

HRM Exec. Dir. Lobrillo introduced this resolution. Last month, the County had

acquired a new vendor for the Medical Expense Reimbursement Program

(MERP). This new vendor would help the County save approximately $300K per

year. This resolution is to approve the County's switch from Catilize Health to

Flex Benefits. Lobrillo addressed questions and comments from the Committee.

RESULT:

HELD OVER

Authorizing Magellan Healthcare, Inc. as Kane County’s Employee Assistance

Plan Provider for 2025

HRM Exec. Dir. Lobrillo introduced this resolution. Currently, the County utilizes

an Employee Assistance Program (EAP) that is tied to SunLife Life Insurance.

This plan has been reevaluated and other options have been considered. The

plan through Magellan Health offers assistance to employees for personal needs

at no cost to them. Lobrillo reviewed the differences between the two plans. She

shared the contents and benefits of employees utilizing this plan.

Chairman Surges stated that there is a scrivener's error that will be corrected

before being added to the Finance Committee meeting. Discussion ensued on

the benefits of taking advantage of this plan.

Lobrillo explained that the second to last "NOW, THEREFORE, BE IT

RESOLVED" clause will be stricken before moving forward.

RESULT:

HELD OVER

11.

Reports Placed On File

No quorum was established. No votes were taken.