HomeMy WebLinkAboutREP FC 151 04/15/1986 1984-1988 ® REPORT OF THE
COMV I T TEE ON FINANCE
Date: April 15 , 1986 Re: Comm. 482
Place: Kona Surf Hotel , Keauhou
Time: 10 :00 a . m .
Chairman and Members
Hawaii County Council
Hilo, Hawaii 96720
Your Committee on Finance , to which was referred Resolution 158-86 ,
reports as follows:
The purpose of Resolution 158-86 is to transfer $17 ,000 from the
General Fund 's Contingency Account #010-911-5911 . 13-341 and credit
same to Account #010-911-5912.01-115 , Consulting Contract for the
Risk Management Group, Inc .
The administration is requesting these monies for the retention of
the Risk Management Group, Inc . , for a three-month consulting
contract to seek professional guidance in resolving the County's
volatile insurance needs and liability exposure .
Managing Director Eugene Tiwanak explained that rising insurance
premiums and reduced coverages have forced the administration to
consider a self-insurance program. It was disclosed that the County
premiums exceeded $530 ,000 last fiscal year and that anticipated
premiums for this fiscal year surpasses a million dollars .
Users of many County facilities have also felt the impact of
increased premiums . The rising costs for insurance coverage and the
County 's goal to keep public facilities open to various functions and
activities have led to the creation of a risk management effort .
The Managing Director further explained that the proposed contract
with the Risk Management Group would:
(1 ) Identify and evaluate the current insurance needs for the
County;
( 2) Review its current program;
( 3 ) Seek companies who may be interested in covering the
insurance needs of the County, whether they be local or
from abroad;
( 4) Look into a cash flow program for group medical and
dental plan; and
(5) Recommend alternatives to the insurance requirements with
regard to the use of public facilities .
A clientele list of the Risk Management Groupincludes
i cludes
Aloha Airlines , Bank of Hawaii , Sure Save Super Markets and the
Hyatt Regency Hotel
FC REPORT NO , 151
ADOPTED : APR 23 19Q
•
11
FC- 151 Page 2 April 15 , 1986
Your Committee expressed the following concerns:
(1 ) Whether monies were being expended for yet another study.
( 2) The scope of the contract was questioned because of the
drastic reductions to the original proposal of $56 ,000
for a year 's work to $17 ,000 for three month 's
consultation .
( 3) The possibility of the need for additional funds .
The Managing Director assured the committee that the consultant
contract was not meant to generate another study but to actually
assist the County in addressing its insurance coverage needs .
He also assured the committee that the consultant 's contract was
explicitly for three months without any plans for further extension .
Pursuant to Section 10-9 , Hawaii County Charter , the Council , by
resolution , may transfer part or all of any unencumbered
appropriation balance .
Your Committee on Finance concurs with the intent of
Resolution 158-86 and recommends its adoption .
FRANK DE LUZ III, CHAIRMAN
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-INO YE, V. C. - ► L. K. DAHLBERG, MEMB1. '
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TAKASHI DOMINGO, M MBS' 'UPSELL S. KOKUB N, MEMBER
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MERLE . LAI, MEMBER SPENCER K. SCHUTTE, MEMBER
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