HomeMy WebLinkAboutMINUTES - 03231993 - 1.61 TO: BOARD OF SUPERVISORS ,LL SE . Contra
FROM: Phil Batchelor E� Costa
County
DATE: March 23, 1993 r{ ou
SUBJECT: County Property Damage Trust Fund/Disaster Recovery
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
1. Authorize the Auditor-Controller to establish County Property Damage
Trust Fund No. 8176 to be administered and managed by the Risk Management
Division of the County Administrator' s Office.
2 . Authorize the Auditor-Controller. to transfer the amount of $82,165
plus interest from the Special District Property Damage Trust Fund No. 8174
to the newly established County Property Damage Trust Fund No. 8176.
3 . Authorize the Auditor-Controller to deposit State/Federal Disaster
Fund reimbursements, proceeds and/or advancements to County Property Damage
Trust Fund No. 8176 .
FINANCIAL IMPACT:
None. The money used to fund the Property Damage Trust Fund is money that
would have been contributed. to a CSAC-EIA (County Supervisors' Association
of California Excess Insurance Authority) deductible pool.
Presently, funds are kept in-house and earn interest through investment.
The Fund is used to cover loss or damage to County real and personal
property (excluding earthquake and flood) in excess of $25, 000 up to the
property insurance deductible as described in the terms and conditions in
the County' s purchased property insurance policy.
Because the County' s property insurance policy is subject to a per
occurrence deductible and not per location or item, the probability that
the fund will be exhausted in a given year is low.
CONTINUED ON ATTACHMENT: X YES SIGNATURE: I
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BORD COMMI EE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISOM ON THE DATE SHOWN.
Contact: Sandra Van Slyke - 646-4110 ��
CC: CAO-Risk Management ATTESTED
Auditor (Attn: Nona Garnett) PHIL BATCHELOR,CLERK OF THE BOARD OF
Office of Emergency Services SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY
M382 (10/88)
BACKGROUND:
Property Damage Trust Fund:
From 1985 to 1991, the County paid into the CSAC deductible pool which
covered property damage losses over $25,000 up to $50,000. The CSAC
property policy pays for losses in excess of $50,000. Over the seven year
period, the County paid a total of $125,903 into the pool, received
dividends of $71,615, and had two losses paid totalling $38,138. Because
the County' s loss history- has been favorable (only two losses over the past
eight years were covered by the pool) , it was determined the County should
self-insure that layer of insurance. Presently, $82,1.65 to cover property
losses from $25,000 to $50.,000 is held in the Special District- Property
Damage Trust Fund.
Disaster Recovery:
In accordance with. State and Federal disaster recovery audit requirements,
disaster recovery reimbursements, proceeds and advances must be. deposited
to one trust fund. The Property Damage Trust Fund will. be used. for this
purpose. Funds will then be distributed to affected departments and the
General Fund. A PC based accounting system. will be used. to keep track of
disaster expenditures.
The Disaster Recovery Team, a function of the Contra. Costa County Disaster
Management Group., was organized to develop and managea financial recovery
system for filing claims for State, Federal and. insurance. reimbursements,
tracking costs and distributing reimbursements. to departments.
CONSEQUENCES OF NEGATIVE. ACTION:
The County must support its claims for reimbursement with timely and
thorough documentation of costs. The penalty for not doing so may be audit
disallowances and demands from Federal or State agencies for substantial
rebates from the County' s future operating. budgets.