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TO: |
Board of Trustees |
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THROUGH: |
Mary DeLoretto, Interim Executive Director |
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FROM: |
William Greene, Chief Financial Officer |
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PRESENTER(S): |
Dave Pitcher, Claims and Insurance Manager |
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Mike Goldman, Special Services Program Manager |
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TITLE:
title
2021 Budget Technical Budget Adjustment - Staffing for the Rideshare Program
end
AGENDA ITEM TYPE:
Discussion
RECOMMENDATION:
Approve the request for a technical budget adjustment that would add staffing (1.5FTEs) and budget authority to support self-insurance of the Rideshare (vanpool) program at UTA. This technical budget adjustment would be funded from Operating Contingencies in the 2021 Operating Budget and will be included in the 2022 Operating Base Budget.
BACKGROUND:
Due to limited competition in the insurance market and rising premiums, a recently completed actuarial review has determined that it is most cost effective to self-insure the Rideshare program.
This move to self-insurance will result in a reduction in insurance premiums, allows UTA to build a reserve fund, and reduces costs to UTA. The request includes a focus on risk mitigation to improve the long-term risk profile of this program.
Estimated 2021 Cost is $25,000.
Estimated 2022 (ongoing) Cost is $145,000.
DISCUSSION:
This technical budget adjustment supports UTA’s move to self-insuring the Rideshare program.
On August 11, 2021 David Pitcher, UTA’s Claims and Insurance Manager briefed the Board of Trustees on the business case for self-insuring the vanpool program.
Subsequently, on September 8, 2021, Mr. Pitcher returned to the Board and presented the 2021-2022 insurance renewal projections. Assumed in the insurance renewal projections are two positions (1.5 FTEs) to support and enhance UTA’s oversight and risk management of the vanpool program. UTA’s proposed 5-Year Capital Plan includes funding for the purchase of telematics for vans in the Rideshare program.
The two positions requested are:
• 1.0 FTE - Vanpool Data & Security Administrator. This position will improve UTA’s monitoring capabilities by administering the driver monitoring program and managing telematics data on the vans. This will reduce risk by proactively identifying and addressing unsafe driving behaviors. This position will also compile necessary data and reporting to reduce the amounts paid out in claims.
• 0.5 FTE - Claims Clerk. An existing half-time Claims Clerk currently supports other activities in UTA’s Risk and Insurance Department. The existing Claims Clerk receives and processes claims and assists with litigated cases. These duties are very similar to the work that would be required to support the Rideshare self-insurance program. Adding an additional 20 hours per week to this existing position is an efficient way to support the program and the processing of claims.
ALTERNATIVES:
Deny this request. This would inhibit UTA’s ability to support vanpool self-insurance and increase risk.
FISCAL IMPACT:
See Attachment A
ATTACHMENTS:
2021 Budget Technical Budget Adjustment- Staffing for the RideShare Program