HomeMy WebLinkAboutC.054.93008_1869IT'Iti
VOTING: Ayes - 5; Nays - 0.
ADMINISTRATIVE MATTERS
REPORT ON MCNEARY INSURANCE STUDY ON LOWRANCE HOSPITAL PROFESSIONAL LIABILITY LOSSES: Chair-
man Sloan opened the discussion on this subject. He referred to the discussion at the briefing
where the board heard a recommendation from the McNeary Insurance Agency in Charlotte, who gave a
recommendation on a level of comfort for liabilities that could be sustained through lawsuits from
previous patients at the Lowrance Hospital establishment. Chairman Sloan also spoke of a commitment
the board had with the South Iredell Chamber of Commerce for $2.8 million. Chairman Sloan made the
following MOTION:
That the county retain for the purposes of security of any future claim the sum of $480,000
which would represent a 98% comfort level, as projected by the McNeary Study. The balance we would
consider to be turned over for use in South Iredell, and I move that we would ask the hospital board
to reconvene and recommend how to spend the balance.
In referring to the South Iredell Development loan, Chairman Sloan said previously at the
briefing the sum of $800,000 was recommended to be held as had been requested by them. Chairman
Sloan said he thought this $480,000 was a compromise on what should be left with the County as
security against future liabilities. Ms. Susan Goodman, Finance Officer, recommended that $100,000
should remain at the County for insurance expenditure and other administrative expenditures.
Commissioner Madison said he personally felt that this is a overkill. The property at South
Iredell Park is industrial property, and he felt if money is required for liabilities, while the
funds may not be liquid, it is a very collateralized asset. He suggested that the board allow the
disbursement of all the funds and retain the $2.8 collateralized asset at the South Iredell Indus-
trial Park until such time that the land is sold and decide at that time whether to continue to hold
the funds.
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Chairman Sloan said if there is a need to pay out a claim and the development's loan has not
been repaid, it would force the County to take some action. He also said that if the property is
not sold as anticipated, the county will be forced to sell.
Also, McNeary recommended that the funds for an anticipated liability be set aside and let the
interest accumulate on this amount of funds. Chairman Sloan said he did not like having an unse-
cured liability.
Commissioner Madison said there are no open claims. He thought that the board was being even
more conservative than what the McNeary representative was in the model they used in making their
liability projections. He said claims can take one to two years to settle once they are filed.
Commissioner Haire said based on the study made by McNeary, she concurred with Commissioner
Madison.
VOTING ON SLOAN'S MOTION: Ayes - 2 (Sloan, Stewart)
Nays - 3 (Madison, Haire, Mitchell)
MOTION from Commissioner Madison that we accept the $2.8 million as the collateralized security
for anticipated liabilities and allow disbursement of the remaining funds to the people in South
Iredell and send it back to the committee for recommendations on how it should be spent. The County
should hold $50,000 to cover expenses they have incurred in handling these funds.
VOTING: Ayes - 3 (Madison, Haire, Mitchell)
Nays - 2 (Sloan, Stewart)
APPOINTMENT OF CHAIRMAN AND VICE CHAIRMAN OF THE SPECIAL BOARD OF EQUALIZATION AND REVIEW: w
The following nominations were made for CHAIRMAN:
Commissioner Haire - nominated Bill Morrow
Commissioner Stewart - nominated Wayne Jenkins
MOTION from Commissioner Madison to close the nominations.
VOTING:
Morrow - 2 (Haire/Mitchell)
Jenkins - 3 (Stewart/Sloan/Madison)
The following nominations were made for VICE CHAIRMAN:
Commissioner Haire nominated Bill Morrow.
There were no other nominations.
MOTION from Commissioner Madison to close the nominations and accept Mr. Morrow by acclamation.
VOTING: Ayes - 5; Nays - 0. 1