COUNTY BOARD OF COMMISSIONERS

WORK SESSION MEETING MINUTES

May 26, 2005

A work session of the Chippewa County Board of Commissioners was held on Thursday, May 26, 2005 at the Chippewa County Courthouse in Sault Ste. Marie, Michigan. Chairman Kay called the meeting to order at 5:00 p.m. with a quorum present.

MEMBERS PRESENT: Earl Kay, Bernie LaJoie, Dick Timmer, Jim Moore, Scott Shackleton, and Ted Postula

MEMBERS ABSENT: Don Cooper

OTHERS PRESENT: Randy Pingatore, Shad Miller, of Madigan/Pingatore Agency; John Katona of U.P. Insurance Specialists; Frank Blissett; Kelly Beaune, Recorder

Agenda Item: Workers Compensation Insurance

The committee met to discuss the quotes on workers compensation from two insurance agencies that are the exact dollar amount from the carrier Accident Fund. The previous meeting motion was also discussed, regarding the “Agent of Record”, as the Accident Fund only allows one agencies to hold “Agent of Record” status. Chairman Kay spoke with Bruce Maynard, Accident Fund Consultant, after being contacted by the agents, Mr. Maynard agreed to let both quotes stand until the Chippewa County Board of Commissioners decided, if a carrier change was to be made.

Randy Pingatore of Madigan/Pingatore spoke first to the Committee, giving the Committee a general overview of how Madigan/Pingatore would handle the account, specific items discussed being: loss control, premium vs. loss ratio, and the goal of offering the best job with Accident Fund, whom he has worked with and known some of its personnel personally. Mr. Pingatore stated he has several accounts this size and also discussed the issues/problems with the “Agent of Record”, that if you’re not in the business it is sometimes difficult to understand. Mr. Pingatore also stated that he one full time person that watches the claims.

John Katona of U.P. Insurance Specialists addressed the Committee next and also discussed how he would handle the account. Mr. Katona stated he has a twenty year history with Chippewa County, and the quote from Accident Fund is apples for apples. The difference he thought would be the software previously purchased by his agency that tracks the claims simultaneously along with the Accident Fund, giving his agency the ability for real time discussions with the County regarding claims, loss time, and the County’s experience modification factors. Through this tracking elimination of certain classifications in the audit and long term savings should be expected. Mr. Katona stated is committed to the entire Upper Peninsula when it comes to service.

Follow up discussion included a statement from Commissioner Shackleton stating that the local agent is more compelling, since taxes are paid by the individual and it supports our community. Commissioner Postula stated that John has done his homework for the County for years. It was stated during the by the Commissioners and the agents, that both agents are respected and reputable, and that the Accident Fund is a company with a good record, and that the County was seeking competitive bids for the betterment of the County. Both agents thanked the Committee.

Adjourn

The meeting adjourned at 5:32 p.m.

______________________________ _______________________________

Kelly J. Beaune, Recorder Earl Kay, Chairman