CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837-0667 24 hours in advance of the meeting. BOARD OF DIRECTORS MEETING October 22, 2015 – 9:30 A.M. CJPRMA Office 3201 Doolan Road, Suite 285 Livermore, CA 94551 (925) 837-0667 AGENDA I. CALL TO ORDER: 9:30 a.m. II. ROLL CALL III. PRESENTATIONS Cyber Liability Presentation (Patrick Hern andez, Senior Underwriter f or ACE and Patrick Clabby Vice President –Professional Risk at ACE) at 1:00 p.m. IV. THIS TIME IS RESERVED FOR MEMBERS OF THE PUBLIC TO ADDRESS THE BOARD OF DIRECTORS ON MATTERS OF BOARD BUSINESS. STATE LAW PROHIBITS ACTION BY THE BOARD ON NON-AGENDA ITEMS. V. COMMUNICATIONS A. Board Members B. General Manager/Secretary C. Next Scheduled Meetings: Executive Committee (11/19/2015) Town of Loomis Board of Directors (12/17/2015) CJPRMA Office VI. APPROVAL OF MINUTES Minutes of the Board of Directors meeting held on June 18, 2015 (Pages 4-13) VII. CONSENT CALENDAR (I) Information Item (A) Action Item 1. Additional Covered Party Certificates Approved by the General Manager (A) (Pages 14-21) 2. Status Update on General Manager’s Goals and Objectives 2013-2015 (A) (Pages 22-32) Page 1
Transcript
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837-0667 24 hours in advance of the meeting.
BOARD OF DIRECTORS MEETING
October 22, 2015 – 9:30 A.M.
CJPRMA Office 3201 Doolan Road, Suite 285
Livermore, CA 94551
(925) 837-0667
AGENDA
I. CALL TO ORDER: 9:30 a.m.
II. ROLL CALL
III. PRESENTATIONS
Cyber Liability Presentation (Patrick Hern andez, Senior Underwriter f or ACE and Patrick Clabby Vice President –Professional Risk at ACE) at 1:00 p.m.
IV. THIS TIME IS RESERVED FOR MEMBERS OF THE PUBLIC TO ADDRESS THE BOARD OF DIRECTORS ON MATTERS OF BOARD BUSINESS. STATE LAW PROHIBITS ACTION BY THE BOARD ON NON-AGENDA ITEMS.
V. COMMUNICATIONS
A. Board Members
B. General Manager/Secretary
C. Next Scheduled Meetings: Executive Committee (11/19/2015) Town of Loomis
Board of Directors (12/17/2015) CJPRMA Office
VI. APPROVAL OF MINUTES
Minutes of the Board of Directors meeting held on June 18, 2015 (Pages 4-13)
VII. CONSENT CALENDAR (I) Information Item (A) Action Item
1. Additional Covered Party Certificates Approved by the General Manager (A)
(Pages 14-21)
2. Status Update on General Manager’s Goals and Objectives 2013-2015 (A) (Pages 22-32)
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Board of Directors Meeting Agenda October 22, 2015
Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837-0667 24 hours in advance of the meeting. pg. 2
VIII. ACTION CALENDAR (A) Action Items Only
3. Proposed Meeting Schedule for 2016 (A) (Pages 33-34)
4. Holiday Schedule for 2016 (A) (Pages 35-36)
5. Broker of Record Contract Extension (A) (Pages 37-59)
6. Consolidated Claims Procedures and Audit Standards (A) (Pages 60-69)
7. Proposed Amendments to CJPRMA Bylaws Section IX, Settlement of Claims (A) (Pages 70-72)
8. 2015 Actuarial Study (A) (Pages 73-80)
9. Request for Modifications of Bylaws regarding Board Member Requirements (A) (Pages 81-88)
IX. INFORMATION CALENDAR (I) Information Items Only
10. Report from Investment Manager (I) (Pages 89-116)
11. Property Memorandum of Coverage 2015-2016 (I) (Page 117)
12. Discussion of Options for Experience Modification Factors for Property Program (I) (Pages 118-120)
13. New Board Members/Alternates (I) (Pages 121-123)
14. Business Calendar for 2015 and 2016(I) (Pages 124-130)
15. Risk Management Issues (I) (Page 131)
X. CLOSED SESSION
1. Government Code Section 54956.9 (a) Conference with Legal Counsel - Litigation
Name of Case: Perez v. City of Richmond Court: United States District Court – Northern District of California Case No.: C 15-00256 WHA
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Board of Directors Meeting Agenda October 22, 2015
Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837-0667 24 hours in advance of the meeting. pg. 3
2. Government Code Section 54956.9 (a) Conference with Legal Counsel - Litigation
Name of Case: Jimenez v. City of Colusa (NCCSIF) Court: N/A Case No.: N/A
3. Government Code Section 54956.9 (a)
Conference with Legal Counsel - Litigation
Name of Case: Haught v. City of Anderson Court: United States District Court – Eastern District of California Case No.: CV01653-JAM-CMK
4. Government Code Section 54956.9 (a) Conference with Legal Counsel - Litigation
Name of Case: O’Shea v. City of Chico Court: N/A Case No.: N/A
A motion was made by Director Hunt, seconded by Director Greer, to approve the minutes of the Board of Directors meeting held May 19-21, 2015. Directors Akil, Cannon, Marquez, Hamilton, Magdich, Kurihara, Carmona, Ferguson, Greer, Rawe, Dolan, Hunt, Perini, Carroll, Henderson, Garrett, and Tonks voted for approval of the minutes. Directors Schwarz, Islas, Giles and Quintana were absent. Motion passes.
VII. CONSENT CALENDAR
1. Financial Report of CJPRMA as of March 31, 2015 (A)
2. Additional Covered Party Certificates Approved by the General Manager (A)
A motion was made by Director Greer, seconded by Director Carroll, to approve the Consent Calendar. Directors Akil, Cannon, Marquez, Hamilton, Magdich, Kurihara, Carmona, Ferguson, Greer, Rawe, Dolan, Hunt, Perini, Carroll, Henderson, Garrett, and Tonks voted for approval of the consent calendar. Motion passes.
18) Robert Lowe, AON 23) Dayna Saling, CJPRMA 19) Rene Contreras, AIG 24) A. Byrne Conley, Gibbons & Conley 20) Sarah Wander, AIG 26) David Clovis, CJPRMA 21) Craig Schweikhard, CJPRMA 27) Lola Deem, CJPRMA 22) Saima Kumar, CJPRMA 28) Jas Sidhu, Livermore 29) Rachel Henderson, CJPRMA
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Board of Directors Minutes for June 18, 2015 Page 3 of 10
VIII. ACTION CALENDER (Action Items Only)
3. Election of Officers and Executive Committee Members (A)
The general manager informed the Board that President Tony Giles has resigned from his positon as President of CJPRMA due to his reassignment of duties with the City of Sunnyvale. He stated that the Bylaws require a vote of the membership be conducted at the next regularly scheduled meeting to replace the President. The new President will serve the remaining term of President Giles that will expire on June 2016. If re-elected, the incumbent will retain the option of serving two full terms as president following this replacement term. In the event there is a vacancy for the vice-president due to the election, the Board of Directors will also vote to replace that position. The candidate receiving the greatest plurality of votes will be elected to that position. In the event of a tie, those not involved in the tie will be eliminated and the remaining candidates will be the subject of a runoff election. If unsuccessful after the runoff, the election for that office will start again with all the candidates eligible. (Article III – Bylaws) The Bylaws also requires the election of two non-officer positions in odd numbered years. The current terms for Director Blanquie and Director Schwarz will expire on June 30, 2015. The Bylaws state that a non-officer director must have served on the board for at least twelve (12) consecutive months preceding the date of the election to be eligible for the office. The following is a list of board members who qualify for election Lucretia Akil, Alameda Mary Ann Perini, San Leandro Laura Marquez, Fairfield Deirdre Dolan, San Rafael Mark Ferguson, REMIF Roger Carroll, SCORE David Rawe, Roseville Celeste Garrett, Vacaville Jeff Tonks, YCPARMIA Claudia Quintana, Vallejo Vice President Carmona was nominated for President. No objections were made for the nomination. Due to only one person being nominated for President, a motion was made by Director Greer and seconded by Director Akil to elect Director Carmona as the President. Directors Akil, Cannon, Marquez, Hamilton, Magdich, Kurihara, Carmona, Ferguson, Greer, Rawe, Dolan, Hunt, Perini, Carroll, Henderson, Garrett, and Tonks voted for approval of Director Carmona as the President serving the reminder of the term expiring on June 30, 2016. Directors Schwarz, Islas, Giles and Quintana were absent. Motion passes. With Director Carmona being elected as the President, the Vice President seat became vacant. A motion was made by Director Akil and seconded by Director Henderson to nominate Director Hamilton as the sole candidate for Vice President. No objections were made for the nomination and the Directors motion included a motion to affirm Director Hamilton as Vice President. Directors Akil, Cannon, Marquez, Hamilton, Magdich, Kurihara, Carmona, Ferguson, Greer, Rawe, Dolan, Hunt, Perini, Carroll, Henderson, Garrett, and Tonks for the approval of Director
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Board of Directors Minutes for June 18, 2015 Page 4 of 10
Hamilton as the Vice President serving the reminder of the term expiring on June 30, 2016 . Directors Schwarz, Islas, Giles and Quintana were absent. Motion passes. With Director Hamilton being elected as the Vice President, her non-officer position became vacant. To fill the vacancy the next City on the rotation list to serve the term was City of Vacaville. Director Garrett accepted to serve on the Executive Committee.
An election was conducted for the two Executive Committee vacancies. A ballot was provided to the board members. Director Carroll and Director Magdich were elected to serve a two-year term starting July 1, 2015.
4. Approval of CJPRMA Revised Statement of Investment Policy (A)
The general manager discussed that in the past Staff has been directed by the Board to apply for certification of the Authority’s investment policy with The Association of Public Treasurers of the United States & Canada (APT US & C). Financial Analyst, Lola Deem was present to discuss the revised State of Investment Policy. She said that the benefit of having the investment policy certified provides trust and confidence in knowing that the Authority has a professionally accepted policy and the assurance that it is abiding by professional standards established to ensure prudent management of public funds. She said that as a part of the application process, CJPRMA requested that Chandler Asset Management review our policy to ensure it met the requirements of The APT US & C. The general manager referenced pages 12 & 13 of the Investment Policy where additional information was added regarding the oversight of Investment Pools/Mutual Funds and Collateralization pursuant to APT US & C guidelines. She said that Effective January 1, 2015, California Code expanded the list of eligible investments to include Washington DC based Supranational Securities. A Supranational is a multi-national organization whereby member states share in promoting economic development in developing member countries i.e. water projects. She stated that in Chandler’s opinion the underlying credit quality of the three issuing banks: Inter-American Development Bank, International Bank for Reconstruction and Development and International Finance Corporation are very strong. Chandler recommended all investors consider adopting language consistent with Assembly Bill 1933 Section 53601 (q). The requirements per the bill are that the investments be rated “AA” or better, not exceed 30% of the Authority’s portfolio and a maximum maturity of 5 years. A Chandler Bond Market Review written by William Dennehy II gave a more in depth explanation about Supranational Securities. No comments were made by the board. A motion by Director Henderson and seconded by Director Hamilton to approve the revised statement of Investment Policy. Directors Akil, Cannon, Marquez, Hamilton, Magdich, Kurihara,
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Board of Directors Minutes for June 18, 2015 Page 5 of 10
Carmona, Ferguson, Greer, Rawe, Dolan, Hunt, Perini, Carroll, Henderson, Garrett, and Tonks voted for approval of the investment policy. Directors Schwarz, Islas, Giles and Quintana were absent Motion passes.
5. Update on Casualty & Property Program Renewal 2015-2016 and Approval of Cyber Liability Program (A) Mr. Robert Lowe, Account Executive of Aon was present to discuss the Casualty and Property Program Renewal updates. Mr. Lowe also provided a presentation on the Cyber Liability Program. His presentation included the cost of the cyber liability program, limits of coverage and the benefits of the program to CJPRMA members. Director Ferguson asked about AB 257 cost and concerns. Director Akil asked if anyone of our members had experienced a data breach and had paid on claims. Director Rawe asked if loss control is part of the coverage. Mr. Lowe stated that loss control is included in the policy at no extra cost. The Board requested ACE be present at the October board meeting. Mr. Lowe stated that he will make sure they will be present at the October meeting. He also asked members to fill out a three page application that the carrier had requested. A motion by Director Greer and seconded by Director Akil to approve the Cyber Liability Program. Directors Akil, Cannon, Marquez, Hamilton, Magdich, Kurihara, Carmona, Ferguson, Greer, Rawe, Dolan, Hunt, Perini, Carroll, Henderson, Garrett, and Tonks voted for approval of the Cyber Liability Program. Directors Schwarz, Islas, Giles and Quintana were absent Motion passes.
6. Approval of Proposed Modifications to the Property Memorandum of Coverage Effective July 1, 2015 (A) The general manager reminded the Board that at the Annual Meeting the quotation provided by AIG was approved for the 2015-2016 Property Program. The formal quote form AIG also included sub limits and recommendations to modify the current Memorandum of Coverage. The general manager said that Staff, Board Counsel and Aon have reviewed the proposed changes required by AIG. He also said that Staff and AON met with AIG on June 9th and had worked through all of the proposed changes and is in agreement that the proposed changes have minimal impacts on the program. Many of the modifications to the Property Memorandum of Coverage are cleanup items that have been written in the MOC over the course of time. The listings of the change are listed below: MOC Section 6 Coverage: AIG proposed to add the following language: 1. Defense Costs This policy, subject to all of its provisions, also insures the costs and fees to defend any claim or suit against the insured and/or its directors, officers and/or employees alleging physical loss or damage as insured against to property of others in the care, custody or control of the insured to
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Board of Directors Minutes for June 18, 2015 Page 6 of 10
the extent of the insured’s liability therefore, even if such claim or suit is groundless, false or fraudulent; but the Company may without prejudice make such investigation, negotiation or settlement of any such claim or suit as it deems expedient. AIG has created a sublimit of $1,000,000 for this exposure. This item was listed in the previous MOC but there was no sublimit. Based upon the exposure associated with this issue we believe there is little impact to members. MOC Section G (1) (b) This section currently states the following: G. Provisions Applicable to Business Interruption, Extra Expense, and Rental Value Coverages Period of Recovery: The length of time for which loss may be claimed:
(a) shall not exceed such length of time as would be required with the exercise of due diligence and dispatch to rebuild, repair, or replace such part of the property as has been destroyed or damaged:
(b) and, such additional length of time to restore the CJPRMA business to the condition that would have existed had no loss occurred, commencing with the later of the following dates: (i) the date on which the liability of the CJPRMA for loss or damage
would otherwise terminate; or the date on which repair, replacement, or rebuilding of such part of the property as has been damaged is actually completed; but in no event for more than two years from said later commencement date; AIG has amended the form to modify the two-year limit to 365 days. This would only apply after the property has been restored or replaced. This will have minimal impact to members. MOC Section 7 AIG added a $5 million sub-limit to computer data, coding, programs and software. The sub-limit will not apply to hardware damaged by a covered peril. MOC Section 8 Exclusions AIG added the following exclusion to this section: Settling, cracking, shrinking, bulging, or expansion of pavements, foundations, walls, floors, or ceilings; all unless physical damage not otherwise excluded by this Policy ensues, in which event, this Policy will cover only such ensuing damage. This exclusion will not apply to any of the above when the damage to the structure/facility was caused by a covered peril. They are strictly minimizing their liability for pre-existing damage prior to the loss.
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Board of Directors Minutes for June 18, 2015 Page 7 of 10
MOC Section 9 Property Excluded There is a $1,000,000 sublimit on land improvements. These are specific to grading etc. in response to a covered peril. Items described as “property in the open” are not included in this sub-limit and are covered at stated values. MOC Section 12 Debris Removal AIG first proposed the deletion of the term currently within the MOC of a covered loss of “Cost of restoration of land”. AIG agreed to a clarification of their proposed deletion as the following: Land and Water Decontamination Cleanup and Expense: This Policy is extended to cover the reasonable and necessary additional expense incurred to remove, dispose of, or cleanup the actual presence of Pollutants or Contaminants from Land or water at an Insured Location when such Land or water is contaminated or polluted due to a Covered Cause of Loss at the Insured Location. There will be no coverage unless such expenses are reported to the Company within 180 days after the date of such Covered Cause of Loss. There is a $1,000,000 sublimit for this exposure. MOC Section to be added: Requirements in case of loss REQUIREMENTS IN CASE OF LOSS: The Insured shall submit to examination, under oath, at such times as may be reasonably required about any matter relating to this insurance or any claim. AIG will also require the addition of multiple endorsements to the Memorandum of Coverage. The endorsements to be added to the MOC are as follows: Endorsement #2 Loss To and Loss of Use of Data, Computer Hardware and Systems Endorsement #3 Mold/Fungus Endorsement #4 Pollution, Contamination, Debris Removal Endorsement #5 Definitions Endorsement #6 Terrorism Exclusion – Certified and Non-Certified Acts Endorsement #7 Terrorism Exclusion – Certified Acts Endorsement #8 Standard Property Conditions C. NEWLY ACQUIRED PROPERTY: This Policy covers real or personal property of the type insured under this Policy that is rented, leased, or purchased by the Insured after the inception date of this Policy. Coverage under this additional coverage ceases at the earlier of the following dates:
1. One hundred and twenty (120) days from the date of acquisition or lease of such property or such other number of days shown in Section I for Newly Acquired Property, if applicable, or
2. When the newly acquired location is bound by the Company; or
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Board of Directors Minutes for June 18, 2015 Page 8 of 10
3. The Company notifies the Insured that it will not bind the newly acquired location. 4. There is no coverage for any property that is partially or wholly insured under any other
insurance. 5. There is no coverage under this Paragraph for loss or damage which is covered under
the Error or Omissions or Miscellaneous Unnamed Locations provisions of this Policy. In addition to the above, AON negotiated a claims promise from AIG that will be included within the documents. The following is the language that will be included within the MOC document: In the event of a claim, AIG will confirm coverage under the policy as quickly as reasonably possible. Once coverage is confirmed, AIG promises to provide the Policyholder with immediate working funds of 50% of their share of the agreed estimate for (i) property damage/repairs, (ii) clean-up costs and (iii) extra expense/increased cost of working, within 7 days. The estimate is to be agreed between the Policyholder/Broker and the AIG claims handler, based upon reasonably available information. This payment is made on an unallocated basis. This Promise is underpinned by the fact that, in the event of a claim, Policyholders need the support of their insurance partners more than ever. In many cases, claim support is the principal reason for buying insurance. The AIG Property Claims Promise positively addresses two critical issues: confirmation of cover and the provision of working funds. It presupposes that a lengthy adjustment process is not necessary for immediate relief. The AIG Property Claims Promise reflects the promise we make with every insurance policy. By providing our clients with ready access to critically important funds, we can expedite recovery and meet immediate cash flow needs, ultimately helping our clients maintain their business continuity. The majority of the changes within the MOC will have little or no effect on the participants in the property program. Mr. Robert Lowe, AON will be at the meeting and will be available to discuss this issue. The general manager recommends the property program participants approve the modifications to the Property Memorandum of Coverage as required by AIG to become effective July 1, 2015. The board had no objections to the changes. A motion by Director Henderson and seconded by Director Perini to approve the proposed modifications to the Property Memorandum of Coverage Effective July 1, 2015. Directors Akil, Cannon, Marquez, Hamilton, Magdich, Kurihara, Carmona, Ferguson, Greer, Rawe, Dolan, Hunt, Perini, Carroll, Henderson, Garrett, and Tonks voted for approval of the Cyber liability Program. Directors Schwarz, Islas, Giles and Quintana were absent. Motion passes.
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Board of Directors Minutes for June 18, 2015 Page 9 of 10
7. Approval of Proposed Modification to 2015-2016 CJPRMA Memorandum of Coverage Effective July 1, 2015 (A) The general manager said that the Board Counsel Byrne Conley had previously advised the Board of Directors of a recent finding that occurred regarding the City of Upland and ICRMA. He said that Staff determined the recommended modification of current MOC language was appropriate Below is a brief summary of why the following change was recommended by the Board Counsel: Last year, ICRMA member City of Upland became involved in a coverage dispute with the pool. Coverage had been denied by the Board on a claim and the matter proceeded to an arbitration panel. We do not have the underlying information regarding the arbitration but press reports indicate that an arbitration panel found coverage for defense costs and more importantly, the City subsequently claimed consequential damages above and beyond what the Memorandum of Coverage provided – so-called “bad faith” damages that have never been awarded against a self-insurance pool. The City hired a prominent firm that specializes in suing insurers for non-contractual damages.
The Staff does not believe that California law would or should allow an award of consequential or “bad faith” damages against a self-insurance pooling joint powers authority. This is because JPAs are non-profit public agencies explicitly exempted from the Insurance Code. Also, because of the risk sharing nature of a pooling JPA any such claim simply falls back on the members, well beyond the scope of the governing documents to which the members agreed. Nevertheless, this suit demonstrates that there is a risk that a member agency can decide to ignore the intent of the parties and seek such additional damages.
Staff has identified the best response against this issue is to adopt restrictive language in the Memorandum of Coverage making it clear that a member’s remedy in a coverage dispute is limited to the coverage itself. This is similar to restrictions on consequential damages that are typical in computer software contracts. This merely makes explicit what is undoubtedly the members’ pre-existing intent. The following to:
Section VII – Conditions, part (10):
Under no circumstances shall the Authority be liable for consequential damages, “bad faith” damages, or any sums beyond the amounts due under Section I – Coverages, plus interest at the same rate as the Authority earned on investments for the time period involved. A motion by Director Hunt and seconded by Director Rawe to approve the proposed modification to the 2015-2016 Memorandum of Coverage Effective July 1, 2015. Directors Akil, Cannon, Marquez, Hamilton, Magdich, Kurihara, Carmona, Ferguson, Greer, Rawe, Dolan, Hunt, Perini, Carroll, Henderson, Garrett, and Tonks voted for approval of the Cyber liability Program. Directors Schwarz, Islas, Giles and Quintana were absent. Motion passes.
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Board of Directors Minutes for June 18, 2015 Page 10 of 10
IX. INFORMATION CALENDAR
8. Claims Report 2015 (I)
Claims Administrator, Craig Schweikhard provided an overview of his claims report for program year 2000-2001 to the present. His report included claims frequency and severity, frequency and severity by departments. He also provided a summary of claims by member. The board asked for a PDF copy of the claims report. No action was required on this item.
9. 2015 Business Calendar
The business calendar was provided to the Board as a standing agenda item. The calendar provides key business items and the required dates for completion for the Board. No action was required. This was an information only item.
10. Risk Management Issues
The following Risk Management Issues were discussed:
1. Sanctions Decision for Failure to produce discovery, resulting in $26.5 million verdict against Caltrans. ( David Clovis – CJPRMA)
2. Mutual-aid agreement templates (public safety, and use of vehicles/equipment) (Mary Ann Perini – San Leandro)
3. Replacement of parkway with drought resistance surface. Is the City obligated to require a footing that remains as walkable as the turf? What is our liability if we do not? (Janet Hamilton – Livermore)
4. Attorney - Client Privilege Does Not Apply to Risk Managers – (David Clovis – CJPRMA)
X. CLOSED SESSION
1. Government Code Section 54956.9 (a)
Conference with Legal Counsel - Pending Litigation
Name of Case: Sylvia Shivy v. Charles Sutton and City of Weed Court: Superior Court of California- County of Siskiyou Case No.: SC CV CV 13-00948
XI. ACTION ON CLOSED SESSION ITEMS
A status update was provided on closed session item number one. No action was required.
XII. ADJOURNMENT
A motion by Director Ferguson, seconded by Perini to adjourn the meeting at 12: 25 p.m.
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Certificate of Coverage Report 10-22-2015
Organization Member Additional Covered PartyAmount of Coverage
RequestedActivity Start
DateActivity End
DateDescription
Alameda AlamedaJamestown South Shore Center, Jamestown L.P., C/O Jamestown Urban Management, L.P.
2,000,000.00 Oct 14, 2015 Oct 15, 2015City of Alameda, Community Development Department Booking Agreement with Jamestown, L.P. for October 14, 2015 Job Fair to take place in Suite 215 and Suite 630
Alameda AlamedaJamestown South Shore Center, Jamestown, L.P., C/O Jamestown Ubran Management, L.P.
2,000,000.00 Oct 5, 2015 Oct 30, 2015City of Alameda Recreation and Parks Department rental space Haunted House Rental 2201 South Shore Center, Suite 825 and Storage Space for Haunted House Sutie 916 event dates of October 4-31, 2015.
Alameda Alameda Nick's Custom Golf Cars, Inc. 1,000,000.00 Jul 1, 2015 Jul 7, 2015 City of Alameda- Mayor's 4th of July Parade for seven (7) passenger golf cars.
Anderson NCCSIFAnderson Union High School District , its elected or appointed officals, employees, agents and volunteers
10,000,000.00 Jul 1, 2015 Aug 7, 2015 Facility use- application and permit for use of swimming pool.
Anderson NCCSIFAnderson Union High School District, its elected or appointed officals, employees, agents and volunteers
10,000,000.00 Jun 12, 2015 Jun 30, 2015 Facility use- application and permit for use of swimming pool.
Arcata REMIF Capital One Public Funding, LLC 1,000,000.00 Jun 24, 2015 Dec 1, 20222015 loan agreement financing for Wastewater System to refiance the existing 2008 wastewater loan.
Arcata REMIF Capital One Public Funding, LLC 1,000,000.00 Jun 24, 2015 Jan 1, 20352015 lease agreement financing to payoff existing 2008 lease agreement and provide additional funds for capital improvements to the Civic Center and other public improvements.
Arcata REMIF City of Trinidad 1,000,000.00 Jul 26, 2015 Jul 26, 2015 Orchestra Concert: Recreation Program for All Seasons Orchestra.
Arcata REMIFFirst 5, its commissioners, officers, employees, volunteers, and agents
1,000,000.00 Jul 1, 2015 Jun 30, 2017 Grant funds for the purpose of facilitating a Play Center in Arcata, CA
Arcata REMIF Jacoby Creek School Charter District 2,000,000.00 Jan 9, 2016 Mar 5, 2016 Use of school gym for City of Arcata Recreation Division Youth Basketball League
Arcata REMIF Pacific Union School District 2,000,000.00 Jun 29, 2015 Jul 6, 2015 Camp Odyessy: A summer enrichment program for 9-12 year olds.
Chico ChicoChico Mall Investors, LLC, Centennial Real Estate Management, LLC & Jones Lang LaSalle Americas, Inc.
1,000,000.00 Aug 12, 2015 Aug 12, 2015 Dog Days Event
Chico ChicoThe State of California, Governor's OFfice of Emergency Services- Fire and Rescue Division
1,000,000.00 Jun 15, 2015 Jun 14, 2035Agreement for Temporary Transfer of Vehiular Equipment - Type III Engine.Vehicle: 2015 HME/Ahren-Fox/Model 34, Engine Number 8332. VIN 1HTWEAZR6FH512992
Colfax SCORE
Placer County Health and Human Services Department, The County of Placer, its officers, agents, employees, and volunteers are to be covered as insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement.
1,000,000.00 Aug 1, 2015 Aug 1, 2018 Colfax City Hall, Work Exchange Program Participant.
County of Yolo YCPARMIA
State of California, 40th District Agricultural Associations, County Fairs, or Citrus Fairs, or California Exposition and State Fair, their officers, agents, servants, and employees, only insofar as the operations under this contract are concerned
1,000,000.00 Aug 19, 2015 Aug 24, 2015For security provided by the Yolo County Sheriff's Department at the Yolo County Fair Grounds during the County Fair. (Agreement FS-15-15)
County of Yolo YCPARMIAThe Regents of the University of California , U.C. Davis
1,000,000.00 Jul 6, 2015 Nov 20, 2015 Right of Way for CR 98 II surveying.
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Certificate of Coverage Report 10-22-2015
Organization Member Additional Covered PartyAmount of Coverage
RequestedActivity Start
DateActivity End
DateDescription
County of Yolo YCPARMIA
The State of California, 40th District Agricultural Association, County Fairs, or Citrus Fairs, or California Exposition and State Fair, their officers, agents, servants, and employees, only insofar as the operations under this contract are concerned
1,000,000.00 Jul 20, 2015 Jun 30, 2016Probation Department use of John Rogers Hall and parking for Force Training on every third Tuesday of each month.
County of Yolo YCPARMIAThe State of California, its officers, agents, employees and servants
1,000,000.00 Jul 1, 2015 Jun 30, 2016 High Risk Pest Exclusion inspections and enforcement- Agreement #15-0062.
County of Yolo YCPARMIA
The State of California, the District Agricultural Association, County Fair, the County in which the County Fair is located, Citrus Fruit Fair, or California Expositions and State Fair, their directors, officers, agents, servants, and employees
1,000,000.00 Oct 3, 2015 Oct 3, 2015 Flu clinic during the Relay for Life
County of Yolo YCPARMIAYocha Dehe Wintun Nation, including all of its employees, agents, tribal council, citizens, and representatives
1,000,000.00 Sep 25, 2015 Feb 28, 2016 Sheriff's Posse use of Ponothla Piht for training
County of Yolo YCPARMIA Yolo County Office of Education 1,000,000.00 Jul 29, 2015 Jun 30, 2016Instructor program implementing a GED Program Preparation for Adult Students at the Daily Reporting Cetner, Yolo County Probation Department.
Davis YCPARMIA Davis Joint Unified School District 1,000,000.00 Jul 4, 2015 Jul 4, 2015 Use of Athletic Fields for July 4th activities.
Davis YCPARMIA J.S. Cole Company 1,000,000.00 Jul 14, 2015 Jun 30, 2030 For various pieces of rented equipment
Davis YCPARMIAYolo County Housing, its officers, officials, employees, volunteers and agents
1,000,000.00 Oct 11, 2015 Oct 11, 2015 Use of facilities/grounds for Davis Neighborhood Nigh Out event
Dixon NCCSIF First Northern Bank c/o Belvedere Equipment Finance 1,000,000.00 Nov 23, 2011 Jun 30, 2018 Equipment Finance Agreement #11111501.
Dixon NCCSIFYolo-Solano Air Quality Management District, its officials, trustees, agents, employees, and volunteers
1,000,000.00 Sep 22, 2015 Feb 28, 2016 Clean Air Funds Program - 2015 Ford C-Max SEL Energi Project
Dunsmuir SCORE Union Pacific Railroad Company 2,000,000.00 Jun 16, 2015 Jun 30, 2030Pipeline Crossing 080808 Folder No. 2933-18. at Mile Post: 321.7, Black Butte Subdivision/Branch Location: Dunsmuir Yard, CA
Esparto Unified School District
YCPARMIA Washington Unified School District 1,000,000.00 Aug 17, 2015 Jun 30, 2017 Formal working relationship for all aspects of the Induction Program.
Eureka REMIF Eureka City Schools 1,000,000.00 Aug 29, 2015 Aug 29, 2015 Use of parking lot for overflow parking from Carson Park for City Event
Eureka REMIF Eureka City Schools 1,000,000.00 Aug 31, 2015 Jun 16, 2016 After School is Cool After School Program's
Fairfield Fairfield Modern Building Systems 1,000,000.00 Aug 10, 2015 Aug 10, 2016 Leasing of a temporary 8 X 28 building for police records
Folsom NCCSIFCounty of Sacramento, its officers, directors, offcials, employees and volunteers
5,000,000.00 Aug 1, 2015 Dec 31, 2015 Use of facility relatin gto Physical Abilities Course.
Folsom NCCSIF Los Rios Community College District 1,000,000.00 Oct 1, 2015 Oct 31, 2015Use of tennis courts for various adult tennis matches and youth tennis lessons during the month of October 2015.
Folsom NCCSIFLos Rios Foundation, their trustees, officers, agents, members, employees, affiliates, consultants, sub consultants, volunteers, and representatives
1,000,000.00 Sep 15, 2015 Sep 15, 2015Use of State 1 theater for "An Evening with Michael Pritchard" Event on Spetember 15, 2015.
Folsom NCCSIF Performance Modular, Inc. and LLC Capital, LLC 2,000,000.00 Jul 14, 2015 Jul 14, 2019Performance Modular, Inc. and LLC Capital, LLC shall be named as additional insured. RE: Contract for installation, lease and removal of modular unit dated 7/15/2015.
Page 16
Certificate of Coverage Report 10-22-2015
Organization Member Additional Covered PartyAmount of Coverage
RequestedActivity Start
DateActivity End
DateDescription
Folsom NCCSIFThe State of California Department of Corrections and Rehabilitation. The State of California, its officers, agents, employees and servants
1,000,000.00 Jul 1, 2011 Jun 30, 2015The State of California, its officers, agents, employees and servants additional covered parties as respects to Agreement No: 5600002223 for Inmate Community Work Crew
Folsom NCCSIF
The State of California and U.S Bureau of Reclamation, their officers, employees, and servants, are included as additional insured covered party but only insofar as operations under this contract or permit are concerned.
1,000,000.00 Oct 3, 2015 Oct 3, 2015 Folsom's Glow Run on October 3, 2015.
Folsom NCCSIF
The State of California- California Department of Corrections and Rehabilitation. The State of California, its officers, agents, employees and servants are hereby named as additional insured, but only with respect to work performed
1,000,000.00 Jul 1, 2015 Jun 30, 2018The State of California, its officers, agents, employees and servants are hereby named as additional insured parties, as respects to Agreement No: 5600005295.
Fortuna REMIF County of Humboldt 2,000,000.00 Aug 26, 2015 Jun 30, 2016 Memorandum of Understanding
Fortuna REMIF Town of Scotia company LLC. 1,000,000.00 Jun 26, 2015 Jun 26, 2015 Summer Fun Field Trip
Fremont Fremont Pacific Gas and Electric Company 1,000,000.00 Aug 19, 2015 Dec 18, 2017Regional renewable energy project Interconnection Agreements for various Fremont locations: Advice No: 4110E
Gridley NCCSIF Gridley Unified School District 1,000,000.00 Sep 12, 2015 Oct 31, 2015 Use of Sycamore Field for Youth Soccer League
Gridley NCCSIFState of California, its officers, agents, employees, and servants
1,000,000.00 Jul 1, 2015 Jun 30, 2016California Department of Conservation- Division of Land Resources Protection Grant Agreement Number 3012-562
Healdsburg REMIF
Apprenticship Programs, Inc. and its parent Grid Training Corporation, dba Northwest Lineman College, its officers, agents, and employees as additional insured
1,000,000.00 Sep 14, 2015 Sep 25, 2015 Northwest Lineman College training services for City of Healdsburg.
Healdsburg REMIFCounty of Sonoma and the Sonoma County Community Development Commission and it's officers and employees
1,000,000.00 Jun 4, 2013 Jun 24, 2017 SCIEP- Energy Efficiency Program Services for Healdsburg commerical users.
Ione - NCCSIF NCCSIF First Security Bank 1,000,000.00 Sep 9, 2013 Aug 1, 2028 Loan Agreement for Fire Station #2, Ione, CA
Lincoln NCCSIFPrimo Santini III, Julie Santini Schumacher, and Joni M. Santini
1,000,000.00 Oct 8, 2015 Oct 8, 2015Temporary use of lot located at the southeast corner of 6th and F Street, Lincoln, CA
Live Oak SCORECalTrans District 3 The State of California, its officers, agents and employees as the additional insured
2,000,000.00 Aug 28, 2015 Jun 30, 2016Landscape and freeway maintenance agreement with state highway right-of-way at Route 99 within the City of Live Oak
Livermore Livermore DOC BAILEY CONSTRUCTION EQUIPMENT INC> 1,000,000.00 Aug 18, 2015 Oct 31, 2015 Rental of boom truck.
Livermore Livermore Livermore Pleasanton Elks Lodge 1,000,000.00 Sep 29, 2015 Oct 5, 2015 City of Livermore to rent meeting space
Lodi Lodi GFLIP III Limited Partnership 1,000,000.00 Jul 27, 2015 Jul 27, 2020Use of vacant lot and ancillary structures located at 880 South Beckman Road and 901 East Vine Street Lodi, CA for Lodi Police Department K-9 training exercises.
Lodi LodiNorthern California Conference of Seventh - Day Adventists
1,000,000.00 Jun 16, 2015 Aug 31, 2015Junior Giants Baseball Practices and Games Lodi Academy and Lodi SDA Elementary School sites.
Page 17
Certificate of Coverage Report 10-22-2015
Organization Member Additional Covered PartyAmount of Coverage
RequestedActivity Start
DateActivity End
DateDescription
Lodi LodiThe State of California, its officers, agents, employees and servants
1,000,000.00 Jul 1, 2015 Mar 1, 2036All improvements constructed in connection with the Lodi Lake Boat Launching Facility Grant, including but not limited to, the dock, ramp, parking lot paving, concrete, lighting and drainage system.
Loomis SCOREPlacer Union High School District and its officers, agents, and employees
1,000,000.00 Nov 7, 2015 Nov 8, 2015 Town of Loomis Fall Clean-Up Day on 11/7/2015
Marysville NCCSIF Kansas State Bank and/or its Assigns 1,000,000.00 Jun 1, 2014 Jun 30, 2030Kansas State Bank and/or its Assigns are named as additional covered parties as respects one (1) 2015 Freighterliner Vac-Con Combination Vacuum Truck, VIN: 1FVAG3CY6FHGC7253.
Paradise NCCSIFButte-Glenn Community College District., It's Board of Trustees, officers, agents and employees
1,000,000.00 Jul 1, 2015 Jun 30, 2016 Use of Butte College Instructional Firing Ranage.
Paradise NCCSIF Santander Bank, N.A. and/or assigns 1,000,000.00 Sep 4, 2015 Jun 4, 2021IT Infrastructure Project on Contract #004-0002986-000Master Lease Purchase Agreement
Redding Redding McNeilus Truck and Manufacturing Inc. 3,000,000.00 Aug 4, 2015 Aug 6, 2015Customer's use in Commericial Refuse Collection, Demo Truck, VIN: 3BPZLJ0X9FF261638
Richmond Richmond Contra Costa County 1,000,000.00 Jul 1, 2015 Jun 30, 2016Senior employment program work experience, Title V work experience program, providing training and guidance to participants in soft and hard skills as it relates to employment.
Richmond RichmondSan Pablo Economic Development Corporation, (SPEDC), its officers, officials, and employees
2,000,000.00 Jul 1, 2015 Jun 30, 2016Contra Costa College Forklift Logistics Operations and Warehouse (FLOW) job training program.
Rio Dell SCORERio Dell School District its officials, agents and employees are named additional insured
1,000,000.00 Sep 15, 2015 Sep 16, 2015 Use of Monument Middle School for City of Rio Dell Town Hall meeting on 9/15/15
Rio Vista NCCSIFThe City of Fairfield and its officers, agents, volunteers, and employees
1,000,000.00 Aug 19, 2015 Aug 19, 2016Agreement dated 8/19/15 for use of City of Fairfield Firearms Range and Training Facility located at 1717 Cliff Lane, Fairfield, CA
Rocklin NCCSIF Sierra College 1,000,000.00 Oct 3, 2015 Oct 3, 2015 Mini Maker Faire
Rohnert Park REMIFCity of Santa Rosa, its officers, agents, employees and volunteers
1,000,000.00 Aug 26, 2015 Jun 30, 2030 Use of Fire Training Tower
Rohnert Park REMIF Cotati-Rohnert Park Unified School District 1,000,000.00 Jun 18, 2015 Jun 18, 2015 Facilitating summer school class on CRPUSD campus.
Roseville, City of Roseville, City of Camp San Luis Obispo and State Military Department 1,000,000.00 Oct 19, 2015 Oct 22, 2015 Use of facility for SWAT tactics and team building training.
San Leandro San LeandroAlameda County Electrical Joint Apprenticeship and Training Trust
1,000,000.00 Oct 2, 2015 Oct 2, 2015Community Development Meeting: Use of facility located at 14600 Catalina Street, San Leandro, CA for a commuity development meeting.
San Leandro San LeandroAlameda County Sheriff's OfficeRegional Training Center
1,000,000.00 Sep 1, 2015 Sep 1, 2018San Leandro Police Department use of Training Facilities for meeting and training purposes.
San Leandro San Leandro CRESCO Equipment Rentals 1,000,000.00 Aug 24, 2015 Aug 25, 2015 CAT 140 Motor Grader, 14" Blade equipment rental for work on Eden Road.
San Leandro San Leandro
County of Alameda, Health Care Services Agency, its Board of Supervisors, the individual members thereof, and all County officers, employees and representatives
1,000,000.00 Jul 1, 2015Health and Wellness services to San Leandro Seniors (Health Checks, Mercy Brown Bag Program, Health Education Classes, Pull Up A Chair Exercise Classes, Fall Prevention Exercise & Balance Class, and additional programs and services)
San Leandro San Leandro Metropolitan Transportation Commission (MTC) 1,000,000.00 Dec 1, 2014 Dec 31, 2017Lifeline Transportation Program Cycle 3 Job Access and Reverse Commute(JARC) Project, LINKS Shuttle Operations Funding for FY2014/2015 & FY 2015/2016
Page 18
Certificate of Coverage Report 10-22-2015
Organization Member Additional Covered PartyAmount of Coverage
RequestedActivity Start
DateActivity End
DateDescription
San Leandro San LeandroPNC Equipment Finance, LLC, its successors and/or all assigns
2,000,000.00 Sep 18, 2015 Oct 18, 2017
Master Equipment Lease-Purchase Agreement dated July 29, 2014Lease Schedule No. 192618000Eleven (11) Ford Explorers Police SUV with related equipment, Two (2) Police Ford Interceptors, and Two (2) Police Ford Fusions
San Leandro San Leandro San Lorenzo Unified School District 1,000,000.00 Aug 5, 2015 Aug 5, 2015City use of District Buildings and Facilities at Washington Manor Middle School for the Youth Basketball- Teen Take Over Program
San Rafael San Rafael County of Marin 1,000,000.00 Jul 1, 2015 Sep 28, 2016Implementation of programs, policies and practices to reduce substance abuse and its related problems.
San Rafael San RafaelMarin County, Department of Health and Human Services Division of Social Services, Aging & Adult Services
1,000,000.00 Jul 1, 2015 Jun 30, 2016 Multicultural Senior Center Activities - Congregate Meal Program
San Rafael San RafaelMarin County, Dept of Health & Human ServicesDivision of Social Services, Aging & Adult Services
1,000,000.00 Jul 1, 2015 Jun 30, 2016Multicultural Senior Center Activities - arrange or provide organized art, educational, health, recreational, social, and volunteer opportunities for multicultural and olderpersons with limited English proficiency 60 years and older.
San Rafael San RafaelThe Marin Municpal Water District, its officers, officials, agents, employees and volunteers
1,000,000.00 Jun 15, 2015 Aug 3, 2015 Summer day camp fishing trips to MMWD lakes in Marin County, CA
Santa Rosa Santa Rosa
Coddingtown LLC, Simon Coddington, LLC, Coddingtown Mall, LLC, Simon Management Associates (California), Inc. and Simon Property Group, Inc.
2,000,000.00 Sep 12, 2015 Sep 13, 2015Public access for the community awareness, outreach, marketing programs, and services around the City of Santa Rosa Violence Prevention "The Partnership" Program
Santa Rosa Santa RosaEMI Santa Rosa Limited Partnership, its Managing Agent, Simon Management Assoicates (California), Inc. and Simon Property Group, Inc.
2,000,000.00 Sep 11, 2015 Sep 12, 2015Public access for the community awareness, outreach, marketing programs, and services around the City of Santa Rosa Violence Prevention "The Partnership" Program.
Santa Rosa Santa RosaGlobal Rental Company., Inc. its affiliates and subsidiaries
1,000,000.00 Jul 1, 2015 Jun 30, 2016Rental of two Ariel Lift trucks by CSR Electrical Dept., for changing out City street lights.
Santa Rosa Santa RosaRoseland School District, its Governing Board of Trustees, the individual members thereof, and all District officers, and employees
1,000,000.00 Nov 23, 2015 Mar 25, 2016 Use of facilities for Thanksgiving, Winter, and Spring Break Sport Camps
Santa Rosa Santa RosaSanta Rosa Junior CollegePublic Safety Training College
1,000,000.00 Jul 1, 2015 Jun 30, 2016 Use of facilities for police department firing range training.
Santa Rosa Santa RosaSanta Rosa Ursuline Corp.,Ursuline Western Province, their affiliates, employees and students
1,000,000.00 Sep 18, 2015 Nov 20, 2015 Use of gym for basketball practice
Sebastopol REMIFSebastopol Center for the Arts, its officers, agents and employees. And County of Sonoma, its officers, agents and employees
1,000,000.00 Jul 1, 2015 Dec 31, 2016 Use of facilities for various meetings
Sonoma REMIFCounty of Sonoma, its officers, agents and employees
1,000,000.00 Aug 12, 2015 Aug 12, 2015 Use of facility for City Council meeting.
Sunnyvale SunnyvaleCity of Santa Clara, its City Council, commissions, officers, employees, volunteers and agents
2,000,000.00 Jul 1, 2015 Oct 1, 2016 Use of City of Santa Clara pistol target range
Sunnyvale SunnyvaleCounty of San Mateo, its officers, agents, employees and servants
1,000,000.00 Jul 8, 2015 Jun 30, 2016Provide program management and technical support of all Workforce Investment Act (WIA) and Workforce Innovation Opportunity Act (WIOA) services on behalf o fthe County of San Mateo.
Page 19
Certificate of Coverage Report 10-22-2015
Organization Member Additional Covered PartyAmount of Coverage
RequestedActivity Start
DateActivity End
DateDescription
Sunnyvale Sunnyvale
County of Santa Clara, and members of the Board of Supervisors of the County of Santa Clara, and the officers, agents and employees of the County of Santa Clara, individually and collectively
1,000,000.00 Jun 10, 2015 Sep 29, 2015Grant to develop and implement strategies to increase access to tobacco-free environments.
Sunnyvale SunnyvaleWatt Investments at Sunnyvale LLC: Jeffery Warmoth: SREA, Inc. : Watt Investments LLC; Watt Communities LLC.
1,000,000.00 Jul 1, 2015 Jun 30, 2016Use of vacant buildings for police and fire training for the Sunnyvale Department of Public Safety.
Susanville SCORE State of California Office of Emergency Services 1,000,000.00 Jun 15, 2015 Jun 30, 2030Agreement for Temporary Transfer of Vehicular Equipment - Type III Engine, 2015 HME/Ahrens- FOx Model 34, Designation 8335, License 1460246, VIN 1HTWEAZR3FH563494.
Susanville SCOREUmpqua Bank its members, officers, agents, employees and assigns
The State of California and the 10-A District Agricultural Association, their agents, directors, officers, servants and employees are additional insured.
1,000,000.00 Sep 10, 2015 Sep 13, 2015 Fair Booth at the Tulelake Butte Valley Fairgrounds for City promotion.
Ukiah REMIF12th District Agricultural AssociationCalifornia Fair Services Authority
1,000,000.00 Oct 16, 2015 Parade staging in the Main Parking Lot and Midway area of Ukiah Fairgrounds
Ukiah REMIFApprentice Programs, Inc., its parent Grid Training Corporations dba Northwest Lineman College, its officers, agents, and employees
1,000,000.00 Jul 20, 2015 Jul 31, 2015 Lineman Training School for Grady Hurn
Ukiah REMIF District, its officers and employees 1,000,000.00 Jul 27, 2015 Jul 31, 2015 Use of facility for youth wrestling camp.
Ukiah REMIFNear and Arnold's School of Performing Arts and Cultural Education
1,000,000.00 Jun 23, 2015 Jun 27, 2015 Drama and dance performance - "The Sun Goddess & The Mirror"
Ukiah REMIF Nesco, LLC 1,000,000.00 Jun 15, 2015 Jun 30, 2015 Rental Agreement for 2012 Hogg and Davis ODP404HRC Puller.
Ukiah REMIF Safeway, Inc. 2,000,000.00 Oct 10, 2015 Oct 17, 2015 Pumpkin Weigh-Off & Ukiah Country PumpkinFest
Ukiah REMIFUkiah Unified School District, its officers and employees
1,000,000.00 Sep 23, 2015 Oct 22, 2015 Use of facility for recreation class- Big Bounce Skills & Drills.
Ukiah REMIFUkiah Unified School District, its officers and employeesFrank Zeek Elementary School
1,000,000.00 Sep 8, 2015 Dec 15, 2015Use of facility for Eddie Vedolla - Salsa Dance, East Coast Swing Dance, Intermediate Swing and Tango Dance.
Ukiah REMIFUkiah Unified School District, its officers and employeesPomolita Middle School
1,000,000.00 Nov 23, 2015 Nov 24, 2015 Little Bounce Thanksgiving Break Basketball Camp.
Vacaville VacavilleWLP Regency Park Plaza, LLCc/o Lewis Operating Corp.
1,000,000.00 Sep 15, 2015 Oct 2, 2015Fire Department to perform training exercises such as forcible entry, firefighting and rescue procedures and related training exercises.
Vallejo VallejoCounty of San Mateo and its officers, agents, employees, and servants
1,000,000.00 Jul 1, 2015 Jun 30, 2018 Forensic Laboratory Services
Page 20
Certificate of Coverage Report 10-22-2015
Organization Member Additional Covered PartyAmount of Coverage
RequestedActivity Start
DateActivity End
DateDescription
Vallejo VallejoLennar Mare Island , Kennedy Wilson Proeprties, LTD.
5,000,000.00 Jun 22, 2015 Jun 29, 2015 Use of facilities for Fire training
Vallejo Vallejo ModSpace 1,000,000.00 Sep 16, 2015 Sep 16, 2017 Lease of Conex storage unit
Vallejo VallejoThe Regents of the University of California acting on the behalf of its Institute of Transportation-Studies Technology Transfer Program, UC Berkeley
1,000,000.00 Sep 23, 2015 Sep 24, 2015 Traffic Control for Safer Work Zones and Flagging at Work Zones trainings
Weed SCORE California Rural Service Area #1 INC 5,000,000.00 Jul 27, 2015 Oct 31, 2016 Right of Entry and Testing Agreement dated 7/27/2015.
West Sacramento YCPARMIA
USA Football, Inc. NFL Properties LLC, NFL Ventures L.P, the National Football League and its member professional football clubs, and each of their respective officers, directors, shareholders, employees, sponors and agents
1,000,000.00 Aug 19, 2015 Oct 31, 2015 Participation in the NFL Flag League
Winters YCPARMIA Winters Joint Unified School District 1,000,000.00 Jul 3, 2015 Jul 3, 2015 Use of Winters High School for July 4th Celebration.
Winters YCPARMIA Winters Joint Unified School District 1,000,000.00 Aug 7, 2015 May 31, 2016Use of Shirley Rominger and Waggoner Elementary classrooms for After School Programs
Winters YCPARMIA Winters Joint Unified School District 1,000,000.00 Sep 5, 2015 Sep 5, 2015 Use of High School Football field for Public Safety Festival.
YCPARMIA YCPARMIA
The State of California, 40th District Agricultural Associations, County Fairs, or Citrus Fairs, orCalifornia Exposition and State Fair, their officers, agents, servants, and employees, only insofar as the operations under this contract are concerned
1,000,000.00 Aug 19, 2015 Aug 23, 2015For activities held at the Yolo County Fair Grounds during the County Fair under the sponorship of any of the member entities of YCPARMIA (reference agreements MEB15-3024: OS15-4003, OS15-4005 and LCB15-0003)
159,000,000.00
Oct 8, 2015 6:48:46 PMSummary
Page 21
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Page 22
Back to Agenda
The general manager recommends the Board of Directors approve and accept the Status Update on General Manager’s Goals and Objectives submitted by the General Manager.
Fiscal Impact:
None.
Exhibits:
1. General Manager’s Goals and Objectives 2013-2015 with accomplishments
Page 23
1 | P a g Updated 9
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2 | P a g e Updated 9/15/2015
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Develop core products and services with innovation.
15%
The general manager will continue to evaluate and monitor the core products and services provided to
members. These products and services will be driven to insure financial strength and solvency to CJPRMA. CJPRMA will also attempt to broaden coverage and
services that meet the needs for cost effective services for our members.
The primary areas of focus for the achievement of this
goal will include the following:
1. Risk Management Information Services 2. Coverage
3. Claims Management
General Manager
Implemented Cyber Liability Program Working with Aon on renewal of broker contract Working with Ventiv to deliver mapping services,
MMSEA and contract renewal Evaluation of program changes to stabilize
costs and improve services for members. Created a Risk Console Users Group for
CJPRMA users. In the process of implementing Cyber Liability
Program. Moved organization to new liability
reinsurance partner with significant reduction in costs.
Developed new coverage options with a pollution program, cyber risk program and expanded limits for EPL coverage with new reinsurer.
Worked with actuary and broker to develop new SIR for prospective member ABAG Plan.
Provided risk transfer training and developed state of the industry recommended clauses for contracts to offset impact of new ISO forms.
Created an updated flip book method of viewing annual report in digital format.
Delivered ongoing support of Risk Console to members using system. Also performed live demos for Roseville, Livermore, Fairfield, Lodi, Vallejo and Rocklin. Continued to update system to including mapping of exposures and losses.
CAJPA Accreditation Excellences.
3 | P a g e Updated 9/15/2015
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Develop and deliver targeted training programs to members
based upon CJPRMA and member loss history.
10%
Collect the necessary data for the purpose of identifying the primary loss exposures for CJPRMA and our members. Utilize the data for the purpose of developing state of the art, effective training sessions for members. The primary areas of focus for completing this objective include the following:
1. Targeted training-Aligned to loss history and actual trends.
2. Member Education – Develop a training program for member management and operations.
3. Director Education and Training – Enhance skills of Directors through education and training.
General Manager
Provide Board Member Orientation to Redding and Northern California Cities.
Provided Board Member Orientation in June Provided City of Stockton training on
Contracts and CJPRMA Programs with Bob Marshburn
Scheduled two Bob Marshburn training classes for August
Provided sponsorship for CJPRMA members to attend the ABAG/CSRMA Annual Waste Water Summit.
City of Alameda accident investigation training.
ARM 54 classes scheduled for April 29, 30 and May 1, 2015
Programs scheduled two sessions with Bob Marshburn on Contract Management
Session delivery on risk management to City of Stockton.
Board Member Orientation scheduled for June 3, 2015.
Will provide training in winter 2015 on property and liability MOC and all insurance programs.
Working with City of Oakland as partner in police liability training program.
Delivered group risk transfer training to over 100 attendees. Delivered specific training to Livermore and Galt.
Provided ARM-P training for several Board Members and delivered testing at the same time.
Scheduling a new ARM series beginning in the fall.
Provided a Board Member Orientation.
4 | P a g e Updated 9/15/2015
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Create an approach to marketing the value of
CJPRMA to its members and identify market opportunities
for control growth of the organization.
10%
Develop a member outreach program that provides members with key information identifying the value of CJPRMA to its members. In addition, evaluate the opportunities for development of a targeted marketing effort to organizations that meet and or exceed current member standards. The primary initiatives for the delivery of an effective outreach program will include:
1. Marketing communication brochure 2. Exclusions and alternative coverage 3. Market definition and outreach
Provided quotation to ABAG –Plan as new member ABAG voted to stay with Reinsurance.
Working with ABAG for PY15/16 program year.
Working with LPFD to cover entire liability program with CJPRMA.
Attended Score Annual Meeting, presented updated information on CJPRMA.
Provided a quote to EBRPD for membership in CJPRMA.
Working with cities of Livermore and Pleasanton to provide membership of Livermore Pleasanton Fire in CJPRMA.
Actively pursued ABAG Plan for membership for PY 14-15. ABAG deferred a determination for changing their program to later in the year. Developed a $2.5 million SIR to meet their needs.
Creating an educational video for our members on CJPRMA. The history and coverage options available will also be a tool for outreach for new prospects.
5 | P a g e Updated 9/15/2015
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Implement and monitor an information technology upgrade to all CJPRMA
systems.
10%
CJPRMA is implementing a new RMIS System. The system will be utilized as the primary workflow product for the organization and will provide membership with the opportunity to utilize multiple modules within the system for a significantly discounted pricing. In addition CJPRMA will evaluate all of its technology solutions and will expressly evaluate for following key areas:
1. Claims Management Technology 2. Member information upgrade 3. Exposure Data 4. Webinars
General Manager
Attended Annual Ventiv user group conference.
New reporting module being explored. GEO Mapping development in progress MMSEA Module in development. Risk Console users include Redding, Stockton
and Fremont. New users include Livermore and Roseville.
Presented alternative risk tracking solution to simplify process. Redding and Galt evaluating the solution.
Implemented Risk Console to full functionality – continue to provide training on the use of the program. Also provided demos on Risk Console modules to expose members to options.
Awarded the Innovation Award for Creative Implementation of System.
Provide consultation to board members and individual
member agencies by resolving questions and issues
concerning agency risk management practices and
procedures.
10%
The general manager is available to assist board members and their agencies by reviewing contracts, performing audits, reviewing policies and by making practices for best practice risk management. General manager will work with ad-hoc committee to develop CJPRMA standards for risk transfer and will populate the new Risk Console System with standardized contract requirements.
Work with all members on Coverage and
contractual issues as requested. Worked with members on contracts and
coverage issues as they arise. Fielding as many as 5 to 15 requests per week to review contracts and advise on coverage. Working with Galt on SWAT agreement with Elk Grove.
Actively working with Livermore on contract issues with LPFD.
6 | P a g e Updated 9/15/2015
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Provide updated information to members on CJPRMA programs, services and
provide ongoing updates on legislative changes including results of litigation affecting
our industry. 5%
CJPRMA staff will provide ongoing updates to members on programs and services and shall provide training on an annual basis that will include:
1. New board member orientation 2. Update on all memorandum of coverage
documents 3. Claims update 4. Case law updates
General Manager
and Staff
Conducted Board Member orientation
Northern California Members in Redding on August 24th.
Provided ongoing updates on current issues to Board and Executive Committee including Pasadena case and S.B. 854.
Provided Board with updates by claims administrator on pertinent legislation in Sacramento.
Working with CAJPA and Legislative Committee on new issues.
Working with Redding on a letter of support on inverse condemnation published decision.
Actively supporting Vallejo on case law regarding bankruptcy.
Working on appeal with City of Fairfield on private property trespass issue.
Worked on a committee with AGRIP, CAJPA and NLC RISC to develop PR toolkit.
7 | P a g e Updated 9/15/2015
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Enhance the CJPRMA claims processing, litigation
management program and the delivery of litigation/claim information to the board of
directors. 10%
The general manager will work with staff to continue to improve the delivery of claims management to members. Staff will review options for a preferred provider network of legal counsel, develop improved reporting to the board of directors on all claims and continue to provide semi-annual updates on the overall claims management process and organization experience
General Manager
and Staff
Continue to actively pursue resolution on
major cases Resolved W. Sacramento case within S.I.R Attended multiple mediations on significant
cases. Scheduled multiple mock trials and focus groups.
Attended mock trial on two major cases. Attended major deposition working with
counsel on resolving major litigation related to Stockton.
Worked to resolve cases at mediation including Hall v. Fairfield and Glicksman v. Chico.
Working actively with Claims Administrator in communication with members on claims process and litigation.
Developing reports out of Risk Console based on new data entered into system. Prepare detailed reports based on losses.
Performing claims audits and primary claims audits to identify areas requiring improvement.
Actively managing all litigated files in CJPRMA layer. Participate actively in mediations and including members in settlement decision making process.
8 | P a g e Updated 9/15/2015
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Manage all aspects of the operation of CJPRMA
including staff, operations and outside vendors.
10%
The general manager has the overall responsibility to oversee the performance of staff and to work with staff to develop capabilities within CJPRMA. General manager must also oversee all outside vendors to insure the highest quality and most efficient use of resources for the delivery of service to the organization and its members.
General Manager
Completion of Salary Survey Create discussion with Executive Committee
on Succession Plan Modification of Financial Analyst Job Spec. Implementation of OPEB Trust Working to replace Administrative Assistant
vacancy. Conduction salary survey for staff positions. Participating in two sessions at the 2015
PARMA Conference. Managed all aspects of office and conducted
ongoing meetings with staff. Evaluating their performance based on the Board Adopted Strategic Plan.
Managed transition of staff member that resigned. Conduct recruitment process including testing and interview panel.
Managed and process all aspects of office function.
Attended the AGRIP CEO Conference.
9 | P a g e Updated 9/15/2015
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Manage the CJPRMA facility and coordinate all aspects of
building maintenance and maintain relationship with
tenant. 5%
General Manager will be responsible for maintaining all operations of the new facility and provide oversight and coordination of tenant relationship and coordination of other condo owners at facility.
General Manager
Working on assumption of building management responsibilities.
Developing renewal proposal for 5 year extension on DaVita lease.
Evaluated opportunity to purchase Pencon office space for enhanced investment.
Managing the operation of the office. Work with tenant and owner of other suites to preserve CJPRMA asset.
Evaluating option for implementing video conferencing.
Continue ongoing management of all IT systems, security systems and all other building related infrastructure.
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6
Page 33
Pending Approval By BOD: 10/22/2015
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
2016 MEETING SCHEDULE
Executive Committee ................................................................ Thursday, January 21, 2016
Board of Directors ...................................................................... Thursday, March 17, 2016
Executive Committee .................................................................... Thursday, April 21, 2016
Board of Directors ......................................................... Tuesday, Wednesday & Thursday, (Annual Membership Meeting) May 17, 18 & 19, 2016
Board of Directors ......................................................................... Thursday, June 16, 2016
Executive Committee ...................................................................... Thursday, July 21, 2016
Executive Committee ............................................................. Monday, September 12, 2016 Friday, September 16, 2016
Board of Directors ........................ Wednesday, October 26 &Thursday, October 27, 2016
Executive Committee ............................................................ Thursday, November 17, 2016
Board of Directors ................................................................ Thursday, December 15, 2016
No meetings are scheduled for February or August.
Page 34
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Page 35
Approved By BOD: 10/22/2015
CALIFORNIA JOINT POWERS RISK
MANAGEMENT AUTHORITY
2016 HOLIDAY SCHEDULE
New Year Holidays…. Wednesday, December 30, 2015 & Thursday, December 31, 2015
Martin Luther King, Jr. Day ....................................................... Monday, January 18, 2016
Presidents’ Day ......................................................................... Monday, February 15, 2016
Memorial Day .................................................................................. Monday, May 30, 2016
Independence Day (observed) ........................................................... Monday, July 4, 2016
Labor Day ................................................................................ Monday, September 5, 2016
Veterans’ Day ........................................................................... Friday, November 11, 2016
New Year Holidays….. .......... Thursday, December 29, 2016 & Monday, January 1, 2017
Page 36
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Page 37
Back to Agenda
A summary of total prem iums paid in 2015 was a pproximately $356,000 less than the total cost of premiums paid in 2010 to Marsh Risk Services as the Broker of Record. Since that time we have added a cyber program , enhanced APD program and an environmental program. Aon Risk Services continues to evaluate num erous programs for our organization and has been a highly valued strategic team member.
An added service included with the Broker of Record serv ices includes the services of Craig Bowlus performing the annual liability claims audit. The prior contract with Marsh allocated $40,000 a year for this service at a cost of $325 per excess file. Aon allocated a cost of $25,000 per year for this service at a cost of $225 per excess file. W e have been advised that in the event that Aon continues to perfor m the claim audits, there will b e an additional charge of $18,750. This is based upon an increase in the number of files being reviewed by the auditor. St aff concluded that a new approach to conducting the annual claims audit is appropriate at this time. Staff prepared an additional agenda bill included within this agenda to resolve this issue. In the event that the Board of Directors chooses to pursue a new format for claims auditing, the annual cost for the Aon Risk Services agreement will be adjusted.
The proposed contract term for the agreement will commence on November 1, 2015 and will be a three year agreement, with the option of two one year extensions at the sole discretion of CJPRMA. Aon Risk Services stated they will require an increas e for their cost of service. They are proposing a 6% increase in cost of service for year one of the ag reement and then a 1% increase for years two through four. This would be a total in crease of 10% over a five-year pe riod. Based upon the cost increase proposed by Aon Risk Services, staf f compared the rate paid to Marsh in 2010 vs the cost of this new proposal. These increases, if accepted by CJPRMA, woul d still result in the over all cost of service to be 50% less than the amount previously paid to Marsh Risk Services.
Staff has discussed an alternative schedule for annual rate increases wi thin the agreement. Staff has discussed an implementation of a 2% increase in years one through three of the agreem ent and 2% for each of the two one year renewal options. The rates for the Aon Risk Services will be as follows: November 1, 2015 $338,640 November 1, 2016 $345,412 November 1, 2017 $352,320 Option Year #1 November 1, 2018 $359,366 Option Year #2 November 1, 2019 $366,554
Staff works closely with many members of the Aon Risk Services Team. Their approach to marketing and service has consistently met and or exceeded our expectations. Although we recommend that Aon does not “rest on its laurels”, we are convinced that pursuing a formal RFP at this time is not in the best interest of CJPRMA. This item was presented to the Executive Committee at their September Meeting. The Executive voted in support of the staff recomm endation and recomm ended this item be referred to the Board of Directors for adoption. Staff will be available to discuss the recommendation.
Page 38
Back to Agenda
Fiscal Impact:
1. The total cost increase for Broker Fees for the five-year term will be $105,292 for a total increase of 6.4% over the next five years.
Exhibits:
1. A copy of the 2010 service agreement.
Page 39
CALIFORNIA JOINT POWERS Risk Management AUTHORITY INSURANCE BROKER OF RECORD AGREEMENT
This AGREEMENT, by and between California Joint Powers Risk Management Authority, hereinafter referred to as "CJPRMA" and Aon Risk Services hereinafter referred to as "Broker," is effective November 1, 2010. The term of this agreement shall commence on November 1,2010 and terminate on October 31, 2013, unless otherwise extended. There will be two (2) one-year options, if, at CJPRMA's sole discretion, creativity, cost, coverage and service remain acceptable. Appointment as Broker of Record creates no right to reappointment or continued service.
I. Scope of Work The Scope of Work is set forth in Exhibit A. This agreement applies to excess/reinsurance, contract bonding, property insurance, auto physical damage insurance or other liability insurance but only on an "as requested" basis. CJPRMA may use other brokers for these services.
II. Broker Service Team The Broker Service Team is set forth in Exhibit B. These individuals are designated "key personnel" and, except for conditions outside the control of Broker, may not be removed from transactions or projects without the prior written approval of CJPRMA. Except for conditions outside the control of Broker, engagement partners, managers, and other supervisory staff may be changed if those personnel leave the firm, are promoted or are assigned to another office. The personnel may also be changed for other reasons with the express prior written permission of CJPRMA. However, in either case, the CJPRMA retains the right to approve or reject replacements. Except for conditions outside the control of Broker, specialists can only be changed with the express prior written permission of CJPRMA, which retains the right to approve or reject replacements. Other staff personnel may be changed at the discretion of Broker provided that replacements have substantially the same or better qualifications or experience. When any individual who is designated as a main contact person will be unavailable to CJPRMA or its members for more than three (3) business days, another person will be designated as a contact.
III. Communication and Reporting Depending on the circumstances, reporting by Broker to CJPRMA will be directed to CJPRMA General Manager and sometimes to staff of CJPRMA members. Whenever services are provided directly by Broker to a CJPRMA member, Broker will promptly inform the CJPRMA General Manager.
IV. Service Commitment Broker will act as an independent advisor to CJPRMA and proactively provide unbiased professional advice and recommendations that benefit CJPRMA and its
CJPRMA/AON Broker of Record Agreement Page 1
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members. Broker will not compete against CJPRMA by offering insurance to members of CJPRMA if such coverage is available through a CJPRMA pooled program or through insurance products covered by this Agreement, without prior written approval.
V. Ownership of Documents All documents, books, records, data, products, graphics, computer programs, reports, and accounting procedures and practices prepared by Broker pursuant to this Agreement shall be considered property of CJPRMA and its members upon payment for services. Broker shall provide free access to CJPRMA or its designees at reasonable times to all such documents, books, records, data, products, graphics, computer programs, reports, and accounting procedures and practices. This applies regardless of media type. CJPRMA or any authorized representative shall have access to and the right during normal business hours to examine, audit, excerpt, copy or transcribe any pertinent transaction, activity, time cards, or other records relating to engagements under this contract. All such items shall be maintained for a period of five (5) years after receipt of final payment, and delivered to CJPRMA at the completion of work under this agreement. Unless otherwise directed by CJPRMA, Broker may retain copies of such items. Upon completion of, or in the event of termination or suspension of this Agreement, all documents, books, records, data, products, graphics, computer programs, reports, and accounting procedures and practices prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of CJPRMA and may be used, reused, or otherwise disposed of by CJPRMA without the permission of Broker. With respect to computer files, Broker shall make available to CJPRMA, at Broker's office and upon reasonable written request by CJPRMA, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. If software is updated, data must be converted. If it cannot be converted, working copies of software must be maintained for ten (10) years.
CJPRMA acknowledges and agrees that Broker is in the business of providing consulting services to clients utilizing Broker's knowledge, including background software, ideas, concepts, methodologies, and processes ("Prior Works"). Broker reserves all right, title and interest in and to any of the Prior Works which Broker shall use in the course of the services for CJPRMA. Nothing contained herein shall prohibit Broker from using any of Broker's general knowledge or knowledge acquired under this Agreement to perform similar services for others.
Notwithstanding anything to the contrary herein, nothing shall prevent Broker from retaining one copy of CJPRMA's documents, books, records, data, products, graphics, computer programs, reports and accounting procedures and practices.
VI. Right to Monitor and Audit CJPRMA shall have absolute right to review and audit all records, books, papers, documents, corporate minutes, and other pertinent items as requested and shall have
CJPRMA/AON Broker of Record Agreement Page 2
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absolute right to monitor the performance of Broker in the delivery of services provided under this Agreement. Broker shall give full cooperation, in any auditing or monitoring and evaluation of this Agreement and comply with all reporting requirements established by CJPRMA.
VII. Broker Remuneration
A. Compensation
CJPRMA shall pay Broker as follows: Year 1, beginning November 1, 2010 $192,000 Year 2, beginning November 1,2011, $317,000 Year 3, beginning November 1, 2012, $332,000 Year 4, beginning November 1, 2012, $332,000 Year 5, beginning November 1,2013, $332,000
Compensation shown shall be full compensation for Broker's services including all time and expenses. Neither Broker nor any proprietary, affiliated, or subsidiary entity of Broker shall receive other compensation for services under, or deriving from, this Agreement from any party or source unless authorized in writing by CJPRMA or
as authorized below.
B. Offsets
Under this Agreement, Broker shall be entitled to receive commissions on insurance placements. Any such commissions received shall be credited immediately against compensation under section VII, A. of this Agreement.
C. Insurance Placements Made Through Intermediaries
Broker is permitted to place insurance through intermediaries including any proprietary, affiliated, or subsidiary entity of Broker, provided that no other comparably efficient and cost-effective source of coverage is available. In the event Broker receives commission from placements made through an intermediary, Broker shall, in good faith, negotiate the allocation of commissions between Broker and intermediary so that Broker receives the maximum portion obtainable. Any income earned by Broker from intermediaries or any other source, shall be credited immediately by Broker against fees paid or due under section I.A. of this Agreement. The term "intermediary" shall include any foreign or U.S. insurance agent or broker. All such use of intermediaries shall be fully reported to CJPRMA, including the details of all commissions earned by intermediaries.
D. Accounting
Broker shall furnish written documentation of all commissions or other revenues received by Broker (or any proprietary, affiliated, or subsidiary entity of Broker) from
C]PRMA/AON Broker of Record Agreement Page 3
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insurers or other sources, including brokers or intermediaries of any kind, as respects CJPRMA account.
E. Invoicing
Broker shall invoice CJPRMA annually for payment of the fee indicated under section VII, A. of this Agreement. Invoices shall show all commissions earned as allowed under sections VII.B. and VII.C. of this Agreement and the net amount of the invoice shall reflect credits due to CJPRMA as offsets for commissions earned.
F. Payment
After receipt and approval by CJPRMA of Broker's invoice, CJPRMA shall pay Broker the annual compensation indicated under section VII, A this Agreement, less any offsets for commissions earned. In the event that a credit balance in favor of CJPRMA is reflected on the invoice, the net credit amount shall be paid to CJPRMA within 30 days of the date of the invoice.
G. Adjustment
By August 1 of each calendar year, Broker shall provide CJPRMA with a full accounting of fees and commissions received by or due to Broker for the immediately preceding July through June CJPRMA fiscal year. If a credit balance is due CJPRMA, Broker shall remit the credit balance to CJPRMA within 30 days of the end of the contract period.
H. Additional Compensation
In addition to the compensation set forth herein, revenue Broker may be entitled to receive from third parties due to contingencies, overrides, bonus commissions, national additional commissions, and/or administrative expense reimbursements, shall be retained by Broker and shall not, for any reason, be credited against the Fee or any other compensation earned hereunder.
Premiums paid by CJPRMA to Broker for remittance to insurers and CJPRMA premium refunds paid to Broker by insurance companies for remittance to CJPRMA are
deposited into fiduciary accounts in accordance with applicable insurance laws until they are due to be paid to the insurance company or CJPRMA. Subject to such laws and the applicable insurance company's consent, where required, Broker will retain the interest or investment income earned while such funds are on deposit in such accounts.
To the extent that any portion of Broker compensation, by operation of law, agreement or otherwise, becomes adjusted or credited to CJPRMA, it is CJPRMA's responsibility to disclose the actual net cost to CJPRMA of the brokerage and insurance costs CJPRMA has incurred to third party(ies) having an interest in such amounts.
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Broker agrees to reasonably assist CJPRMA with administering policies, coverages or
programs preceding those listed in Exhibit A, to the extent CJPRMA has advised Broker of CJPRMA's need for such assistance. If CJPRMA needs or requests unanticipated levels of assistance for such policies, coverages or programs, CJPRMA and Broker shall negotiate and agree in writing in advance to the additional amount(s) of compensation Broker shall be entitled to receive from CJPRMA for such services.
Broker will deliver the Services based upon the information CJPRMA or its representatives provide to Broker and the demands and needs that CJPRMA expressly advises Broker of. CJPRMA is responsible for the accuracy and completeness of any information provided to Broker and that Broker accepts no responsibility for losses, damages or costs arising from CJPRMA's failure to so inform Broker. CJPRMA acknowledges the importance of providing Broker promptly with the information needed to deliver the Services and to update any information where there has been a material change which may affect the scope of delivery of the Services, such as a change in the nature of the risk, insured entities, property values and persons or entities to be covered.
CJPRMA shall inform Broker in the event that CJPRMA operations change substantially by merger, acquisition, expansion or other material change in scope and nature of exposures, losses and/or Insurance Program, or if there is a substantial midterm change to programs or limits, CJPRMA and Broker will negotiate in good faith to revise the Agreement as appropriate. CJPRMA acknowledges that it will carefully review all documents provide by Broker (including binders, policies and endorsements) and advise Broker immediately of any mistakes of fact or contents in such documents that do not address the needs of CJPRMA.
VIII. Indemnification
A. Indemnification for Professional Liability
Broker shall indemnify, protect, defend and hold harmless CJPRMA, its members, and all officials, directors, officers, employees, agents and volunteers from and against any and all losses, liabilities, damages, costs and expenses, including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened; and also including attorneys fees and costs, court costs, interest, defense costs, and expert witness fees. This applies to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Broker, its officers, agents, employees or sub consultants (or any entity or individual that Broker shall bear the legal liability thereof) in the performance of professional services under this agreement.
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This further applies where the same arises out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Broker or by any individual or entity for which Broker is legally liable, including but not limited to officers, agents, employees or sub-consultants of Broker.
B. Indemnification for Other than Professional Liability
Other than in the performance of professional services and to the full extent permitted by law, Broker shall indemnify, protect, defend and hold harmless CJPRMA, its members, and all officials, directors, officers, employees, agents and volunteers from and against any and all losses, liabilities, damages, costs and expenses, including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened; and also including attorneys fees and costs, court costs, interest, defense costs, and expert witness fees, where the same arise out of, are a consequence of, or
are in any way attributable to, in whole or in part, the performance of this Agreement by Broker or by any individual or entity for which Broker is legally liable, including but not limited to officers, agents, employees or consultants or sub-consultants.
IX. Insurance
Prior to the beginning of and throughout the duration of the Scope of Work, Broker will secure and maintain insurance in conformance with the requirements set forth below. Broker will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Broker agrees to amend, supplement or endorse the existing coverage to do so. Broker acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to CJPRMA in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to CJPRMA.
A. Required Insurance
1. Commercial General Liability Insurance using Insurance Services Office "Commercial General Liability" policy form CG 00 01 or equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than $5,000,000 per occurrence.
2. Business Auto Coverage on ISO Business Auto Coverage form CA 00 01 including (Any Auto) or equivalent. Limits are subject to review, but in no event to be less than $5,000,000 per accident. If Broker owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Broker or Broker's employees will use personal autos in any way on this project, Broker shall secure evidence of auto liability coverage for each such person.
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3. Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident or disease.
4. Excess or Umbrella Liability Insurance (Over Primary) if used to meet limit requirements, shall provide coverage at least as broad as specified for the underlying coverages. Any such coverage provided under an umbrella liability policy shall include a drop down provision providing primary coverage above a maximum $25,000 self insured retention for liability not covered by primary but covered by the umbrella. Coverage shall be provided on a "pay on behalf" basis, with defense costs payable in addition to policy limits. Policy shall contain a provision obligating insurer at the time insured's liability is determined, not requiring actual payment by the insured first. There shall be no cross liability exclusion precluding coverage for claims or suits by one insured against another. Coverage shall be applicable to CJPRMA for injury to employees of Broker, sub-consultants or others involved in the Work. The scope of coverage provided is subject to approval of CJPRMA following receipt of proof of insurance as required herein.
5. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designed to protect against acts, errors or omissions of Broker and "Covered Professional Services" as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $5,000,000 per claim and in the aggregate. The policy must "pay on behalf of" the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this agreement.
B. General Requirements
1. Broker agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insured CJPRMA and its members and all officials, directors, officers, employees, agents, volunteers, contractors and subcontractors.
2. All policies are to be primary and non-contributory with any insurance or self- insurance programs carried or administered by CJPRMA and/or its members.
3. Insurance procured pursuant to these requirements shall be written by insurers with an A.M. Best's rating of A- or better and a minimum financial size VII.
4. No liability insurance coverage provided to comply with this Agreement shall prohibit Broker, or Broker's employees, or agents, from waiving the right of subrogation prior to a loss. Broker agrees to waive subrogation rights against CJPRMA regardless of the applicability of any insurance proceeds, and to require all contractors and
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subcontractors to do likewise.
5. All insurance coverage and limits provided by Broker and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to CJPRMA or its operations limits the application of such insurance coverage.
6. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to CJPRMA and approved of in writing.
7. No liability policy shall contain any provision or definition that would serve to eliminate so-called "third party action over" claims, including any exclusion for bodily injury to an employee of the insured or of any contractor or subcontractor.
8. All coverage types and limits required are subject to approval, modification and additional requirements by CJPRMA, as the need arises. Broker shall not make any reductions in amounts or scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect CJPRMA's protection without CJPRMA's prior written consent.
9. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Broker's general liability policy, shall be delivered to CJPRMA at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, CJPRMA has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by CJPRMA shall be charged to and promptly paid by Broker or deducted from sums due Broker, at CJPRMA's option.
10. Certificate(s) are to reflect that the insurer will provide 30 days notice to CJPRMA of any cancellation of coverage. Broker agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will "endeavor" (as opposed to being required) to comply with the requirements of the certificate.
11. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Broker or any sub-consultant, is intended to apply first and on a primary, non-contributing basis in relation to any other insurance or self insurance available to CJPRMA.
12. Broker agrees to ensure that sub-consultants, and any other involved party who is brought onto or involved by Broker, provide the same minimum insurance coverage
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required of Broker. Broker agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Broker agrees that upon request, all agreements with subconsultants and others engaged by Broker will be submitted to CJPRMA for review.
13. Broker agrees not to self-insure or to use any self-insured retentions on any portion of the insurance required herein and further agrees that it will not allow any subcontractor or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to CJPRMA. If Broker's existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to CJPRMA. At that time the CJPRMA shall review options with Broker, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions.
14. CJPRMA reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving Broker ninety (90) days advance written notice of such change. If such change results in substantial additional cost to Broker, CJPRMA will negotiate additional compensation proportional to the increased benefit to CJPRMA.
15. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or toward performance of this Agreement.
16. Broker acknowledges and agrees that any actual or alleged failure on the part of CJPRMA to inform Broker of non-compliance with any insurance requirement in no way imposes any additional obligations on CJPRMA nor does it waive any rights hereunder in this or any other regard.
17. Broker will renew the required coverage annually as long as CJPRMA, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until the CJ PRMA executes a written statement to that effect.
18. Broker shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Broker's insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new
coverage must be provided to CJPRMA within five days after the expiration of the coverages.
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19. The provisions of any workers' compensation or similar act will not limit the obligations of Broker under this agreement. Broker expressly agrees not to use any statutory immunity defenses under such laws with respect to CJPRMA, its employees, officials and agents.
20. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits, or other requirements, nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive.
21. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such.
22. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section.
23. Broker agrees to provide immediate notice to CJPRMA of any claim or loss against Broker arising out of the work performed under this agreement. CJPRMA assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CJPRMA.
X. Termination
Either Broker or CJPRMA shall have the right to terminate this Agreement immediately upon the insolvency, bankruptcy, dissolution or sale of the other party; neither party waives its right to terminate this Agreement if such right is not immediately exercised. Notwithstanding any other provision of this Agreement, either party shall have the right to terminate this Agreement at any time and for any reason by giving the other party thirty (30) calendar days written notice of such termination. Upon receipt of termination notice, Broker shall promptly discontinue services unless the notice or other written communication directs otherwise. If the Agreement is terminated or not renewed for any reason, CJPRMA shall have a continuing right to have access to all Broker files pertinent in any way to CJPRMA account. Broker shall fully cooperate and, at CJPRMA's request, shall provide photocopies or originals of any and all pertinent files or other documents following termination. If such termination is effected, an equitable adjustment in the price provided for in this Agreement shall be made. Such adjustment shall provide for payment to Broker for services rendered and expenses incurred prior to the effective date of termination. In the event of termination of this Agreement prior to the end of a service-year, fees shall be returned to CJPRMA on a pro-rata basis.
Xl. Default of Broker
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Broker's failure to comply with the provisions of this Agreement shall constitute a default. In the event Broker is in default for cause under the terms of this Agreement, CJPRMA shall have no obligation or duty to continue compensating Broker for any work performed after the date of default and can terminate this Agreement immediately by written notice to Broker. If such failure by Broker to make progress in the performance of work hereunder arises out of causes beyond the Broker's control, and without fault or negligence of the Broker, it shall not be considered a default.
If CJPRMA determines that Broker is in default in the performance of any of the terms or conditions of this Agreement, CJPRMA shall cause to be served upon Broker a written notice of the default. Broker shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that Broker fails to cure its default within such period of time, CJPRMA shall have the right, notwithstanding any other provision of this Agreement, to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement.
Xll. Legal Responsibilities
Broker shall keep itself informed of State and Federal laws and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. Broker shall at all times observe and comply with all such laws and regulations. CJPRMA, and its officers and employees, shall not be liable at law or in equity occasioned by failure of Broker to comply with this Section.
Xlll. Timely Performance
Timely completion by Broker of all service requirements under this Agreement to the satisfaction of CJPRMA is of the essence of this Agreement.
XIV. Undue Influence
Broker declares and warrants that no undue influence or pressure is used against or in concert with any officer or employee of CJPRMA in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of CJPRMA will receive compensation, directly or indirectly, from Broker, or from any officer, employee or agent of Broker, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling CJPRMA to any and all remedies at law or in equity.
XV. Release of Information
No news, releases, advertisements, public announcements or photographs arising out of this Agreement or Broker's relationship with CJPRMA or its members may be made
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or used without prior written approval of CJPRMA.
XVI. Agreement Amendments and Assignability
Broker agrees any alterations, variations, modifications, or waivers of the provisions of this Agreement, shall be valid only when reduced to writing, executed and attached to the original agreement and approved by the required persons. This agreement is not assignable by Broker either in whole or in part without the prior written consent of CJPRMA.
Broker agrees not to enter into any subcontracting agreements for work contemplated under the Agreement without first obtaining written approval from CJPRMA. Any subcontracting shall be subject to the same terms and conditions as Broker. Broker shall be fully responsible for the performance and payments of any subcontractor's contract.
XVll. Governing Law
CJPRMA and Broker understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall be filed in the Alameda County Superior Court.
XVlll. Attorney Fees and Costs
If any legal action is instituted to enforce any party's rights hereunder, each party shall bear its own costs and attorneys' fees, regardless of who is the prevailing party. This paragraph shall not apply to those costs and attorneys' fees directly arising from a third- party action against a party hereto and payable under Section VIII, Indemnification.
XlX. Entire Agreement This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, oral or written, are merged into this Agreement and shall be of no further force or effect except as indicated in Section XX, below. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. This Agreement shall govern over any conflicts between the Request for Proposal, the Proposal, and this Agreement.
XX. Contents of Request for Proposal and Proposal
Broker is bound by the contents of CJPRMA's Request for Proposal, Exhibit B hereto and incorporated herein by this reference, and the contents of the proposal submitted by Broker, Exhibit B hereto. In the event of conflict, this Agreement shall take
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precedence over the Request for Proposal, and the Request for Proposal shall take precedence over Broker's proposal. XXI. Authority to Execute this Agreement
The person or persons executing this Agreement on behalf of Broker warrants and represents that he/she has the authority to execute this Agreement on behalf of Broker and has the authority to bind Broker to the performance of its obligations hereunder.
Name: David J. Clovis
General Manag/er Date:
Aon Risk Solutions
Name:
Title:
Date:
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CJPRMA/AON Broker of Record Agreement
EXHIBIT A SCOPE OF WORK
CJPRMA insurance broker will provide the following services:
A. Service Overview The Scope of Work, as may be modified through negotiation and/or by written addendum, will be made a part of the Agreement. While the exact nature and extent of the services are subject to negotiations, the minimum professional services are as follows:
1. Act as an independent insurance advisor to CJPRMA and proactively provide ongoing unbiased professional advice and recommendations that benefit CJPRMA and its members.
2. Proactively provide ongoing review and analysis of CJPRMA's insurance programs and identification of risk transfer and risk financing options.
3. Be familiar with: a. The Memorandum of Coverage. b. The coverages provided by all relevant insurance policies and documents issued to CJPRMA and its members. c. The exposures of the members.
4. Assure that insurance policies are placed in a timely manner, without lapses in coverage periods, with reputable and financially responsible insurers.
5. Service insurance policies placed for CJPRMA, including processing all changes and endorsements and verifying the accuracy of invoices within a reasonable time.
6. Provide early warning of rate and coverage changes or renewal problems through a process. Promptly advise CJPRMA of any changes in exposure during the policy year that would require revisions to existing insurance coverages. Upon request of CJPRMA, but at least once a year, provide comprehensive report that reviews all of CJPRMA's insurance programs.
7. Continually monitor CJPRMA's operations and loss exposures and make any appropriate recommendations for coverage changes or new coverages.
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8. Be available to answer questions or obtain answers from underwriters for policy coverage questions. Meet with CJPRMA staff, the Executive Committee, boards and other committees, and staff of member cities when requested.
9. Provide consultation service and written reports as normally expected of a professional broker to a large client.
10. Provide loss control services and assistance with claims as requested by CJPRMA. Assist in analyzing loss exposures from existing and new operations, and determine the appropriate risk management alternatives, including types, availability, cost and extent of coverages that should be considered.
11. Set up files on CJPRMA master account and each individual member account showing coverages, schedules of covered property, premium for each member for each coverage, and other information required by Broker. Handle billing of members as approved by CJPRMA management.
12. Develop and distribute mailings and other communications to CJPRMA members. All communication must be approved by CJPRMA before distribution.
B. Policy Review
Review policies and other documents in detail within 14 days of receipt of the documents to check the wording and accuracy of each policy, binder, certificate, endorsement or other document received from insurers to ensure that the intended coverage is provided, and all coverage, terms and conditions, and other wording is complete and accurate, and in compliance with financial arrangements and administrative procedures acceptable to CJPRMA. Obtain revisions needed to achieve compliance with coverage request. Timely forward to CJPRMA the original policies with a sheet attached bearing the signature of the person responsible for compliance review. Provide a timeline for issuance of policy forms prior to issuance of premium invoice.
C. Policy Amendments
Process requests for additions or deletions to policies within five business days of receipt. Provide CJPRMA with copies of initial correspondence to the insurers. Follow up every two weeks from request date until the insurer has handled request. Advise in writing of any changes to insurance policy(ies) within 14 days. Provide, on renewal and upon request, a list of members participating in each coverage program, and notify within five business days of any participation changes.
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D. Marketing
Broker will provide and assist CJPRMA with the marketing of its commercial insurance programs utilizing their experience and professional experience. These services will include but not be limited to the following:
1. Monitor expiration dates of policies and provide CJPRMA General Manager with written notification at least 180 days prior to expiration, including a description of information needed to process the renewal. 2. Develop a marketing strategy, including identifying potential markets, for program renewals at least 180 days before policy expiration.
3. Develop underwriting information and assist in gathering and organizing exposure and loss data for renewals of policies placed. 4. Provide actuarial and statistical analysis of loss and expense data to assist in the establishment of premium, and targets for various layers of risk. 5. Work with carriers to design policies and programs most advantageous to the CJPRMA for coverage of exposures, policy form, exclusions, deductibles, self-insured retentions, coordination with other policies, costs and other pertinent factors. 6. Advise of and invite CJPRMA General Manager to marketing meetings with prospective carriers. 7. Market renewal coverages for CJPRMA by obtaining timely and competitive quotations from available and responsible insurers. 8. Provide quotations to CJPRMA at least thirty (10) days prior to the scheduled CJPRMA Annual Meeting. 9. When more than one market is approached for a line of coverage, provide CJPRMA General Manager with copies of declination letters and all premium quotations received with a summary of coverages explaining deficiencies or benefits of the quote compared to the recommended insurance program. 10. Provide quotations for specialized types of insurance, as requested by CJPRMA. These services are expected at no additional cost.
E. Claims
1. Assist members and staff, as necessary, with filing claims. 2. Promptly notify CJPRMA of any losses or accidents reported to Broker and work with outside claims adjustors as necessary. 3. Represent the interests of CJPRMA and its members in policy interpretation and other negotiations with insurance carriers. 4. Assist CJPRMA with review of claim reserves, and represent CJPRMA to the insurer with regard to requested explanation or reduction of reserve amounts. Follow-up with insurer every 30 days until resolution of any reserve reduction requests are accomplished or until claim is closed. 5. For all lines of insurance where loss runs are not otherwise available, provide
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regular (e.g. quarterly) loss runs indicating the member name, claim status, amount paid, reserves, expected outcomes of cases, and other summary information. 6. Review all quarterly loss runs for all claims on all coverages. Evaluate loss history for trends or other indicators that might dictate changes in coverage strategy. Identify any relevant issues and advise CJPRMA in writing. 7. Provide annual summaries by policy year for each of the last five years indicating total number of losses by type for each line of coverage and showing earned premium, incurred losses and loss ratio.
F. Certificates of Insurance
Issue certificates of insurance within three (3) business days following the date of request.
G. Billing
Issue invoices to CJPRMA for premiums due for insurance. Maintain appropriate accounting of amounts due, receipts, and payments to insurers.
H. Contract Review
Review contracts and lease agreements as requested to ensure that the interests of CJPRMA and its members are protected.
I. Legal Compliance
Comply with all State and Federal laws and regulations pertaining to insurance brokers licensed in the State of California.
J. Stewardship
At least 90 days prior to program anniversary, provide CJPRMA with a written annual service summary for the policy year to include:
1. A schedule of coverage showing nature of coverage, limits, deductibles, insurer, policy number, premium and other relevant information. 2. Summary of team servicing this account. 3. Anticipated renewal terms and conditions and other indications of market conditions, trends and anticipated changes. 4. Identified problem areas such as claim handling, safety hazards, insurer financial problems, etc. 5. Recommendations for improved program design.
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6. Services performed for the current year and planned for the next year. 7. Accounting of all income received on this account.
K. Claims Audit
AON will perform an annual claims audit for the CJPRMA Membership. The audit will be performed by Craig Bowlus, Account Executive for the CJPRMA Account. The focus and extent of the audit will be determined by the CJPRMA General Manager and the AON Account Executive.
In the event primary level audits are added to the scope of services, CJPRMA and broker will negotiate regarding any additional fees for those services in advance of the service being provided.
L. Other Services
Aon Services to CJPRMA will also include the services stated within the Response to Request for Proposal for Broker of Record submitted to CJPRMA September 2, 2010. A copy of the Response to Request for Proposal for Broker of Record is attached as Exhibit C to this agreement and incorporated by reference
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Client Executive:
Program Manager:
Program Specialist:
Property Broker:
Casualty Broker:
Property Claims Specialist:
Executive Liaison:
CJPRMA/AON Broker of Record Agreement
EXHIBIT B SERVICE TEAM
The AON Service Team for the CJPRMA Account will be as follows:
Craig Bowlus, Managing Director
Dr. William Deeb, Director Public Entities
Robert Lowe, Account Specialist
Jonathan Griffiths, Managing Director
Ward Adams, Director-Umbrella Practice Group
Mark Algrim, Senior Claims Consultant
Matt Davis, Resident Managing Director
AON will provide CJPRMA written notice of any changes in the AON Service Team. CJPRMA will have an opportunity to review the proposed changes and may request alternative resources if the reassignments are unacceptable to CJPRMA, in its sole discretion.
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CJPRMA/AON Broker of Record Agreement
EXHIBIT C RESPONSE TO REQUEST FOR PROPOSAL FOR BROKER OF RECORD
The AON Response to Request for Proposal for Broker of Record for California Joint Powers Risk Management Authority dated September 2, 2010 is hereby attached to this agreement and incorporated by reference.
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As discussed in a previous agenda bill s taff recommends that the Board President appoint a Claim s Audit Committee to as sist staff in creating a Claim s Audit Standard and to prov ide assistance with identifying the availability of claims auditing services. Mr. Bowlus, Aon Risk Services has com pleted the audits for this organization for many years and he has always provided an outstanding report. R ecently his assignments have changed at Aon and his availability is becoming more difficult. Staff intends to present a proposal to the Board of Directors for a new claim s auditor f or this yea r. Once the sear ch for potential auditors is e xhausted, staff will evaluate the alternatives and will proceed with ev aluating the benefit of a new process for completin g the annual claims audit.
Once discussions are completed, a fi nal proposal will be presented to the Board of Directors for the award of a new contract. Staff recommends the Board of Directors adopt the C onsolidated Claims Procedure Document. Secondly, staff recommends the President of the Board appo int an ad-hoc committee designated as the Claims Audit Standards Committee. This ad-hoc committee will be assigned the process of creating a documented claims audit standard and will assist the general manager with identifying and selecting a claims auditor for CJPRMA. Staff will be available to discuss this item at this meeting. Fiscal Impact:
1. None. The total cost of Claims Auditing Services will be determined during the process and presented to the Board of Directors for approval.
Exhibits:
1. Draft Consolidated Claims Procedure Document
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Consolidated Claims Procedures
The Rules, Policies and Procedures related to liability claims are spread throughout our
governing document. The purpose of this document is to place all the relevant information and
requirements related to liability claims in a single document. Our Rules, Policies, and
Procedures are outline within the Joint Powers Authority Agreement of CJPRMA, CJPRMA
Bylaws, CJPRMA Memorandum of Coverage, and the Mandatory Case Reporting Policy. They
are presented as follows:
The CJPRMA Joint Powers Authority Agreement, ARTICLE VII, Section A requires members “to
cooperate fully with the Authority in determining the cause of losses and in the settlement of
claims, as defined in the Memorandum of Coverage” and ARTICLE VII, Section E ‘to cooperate
with and assist the Authority and any insurer, claims adjuster or legal counsel retained by the
Authority, in all matters relating to this Agreement.”i
The Memorandum of Coverage establishes the following duties related to claims and litigation.
SECTION VII ‐ CONDITIONS
1) Covered party’s Duties in the Event of Occurrence, Claim or Suit
(a) The covered party shall notify the Authority within 30 days upon receipt of notice of a claim,
or the setting of a reserve on any claim or suit including multiple claims or suits arising out of
one occurrence, such claim or reserve amounting to fifty percent or more of the retained limit;
Title 42 USC 1983 cases in which a complaint has been served and the plaintiff is represented by
legal counsel or with reserves of twenty‐five percent or more of the retained limit; or regardless
of reserve, any claim involving:
1) one or more fatalities;
2) loss of a limb;
3) loss of use of any sensory organ;
4) quadriplegia or paraplegia;
5) third degree burns involving ten percent or more of the body;
6) serious facial disfigurement;
7) paralysis; or
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8) closed head injuries.
Written notice containing particulars sufficient to identify the covered party and also
reasonably obtainable information with respect to the time, place and circumstances thereof,
and the names and addresses of the covered party and of available witnesses, shall be given by
or for the covered party to the Authority or any of its authorized agents as soon as possible.
(b) The covered party shall notify the Authority within 30 days upon receipt of lawsuit containing
allegations involving employment practices liability. Where any lawsuit is reported after the 30
day period as required by this provision, all defense costs incurred prior to the date of late
reporting will not constitute covered ultimate net loss eroding the self‐insurance retention. The
covered parties shall cooperate in an early review of employment practices liability claims or
suits with counsel appointed by the Authority at the expense of the Authority.
(c) If claim is made or suit is brought against the covered party and such claim or suit falls within
the description in paragraph (a) above, the covered party shall be obligated to forward to the
Authority every demand, notice, summons or other process received by it or its representative.
(d) The covered party shall cooperate with the Authority and upon its request assist in making
settlements, in the conduct of suits and in enforcing any right of contribution or indemnity
against any person or organization who may be liable to the covered party because of bodily
injury, personal injury, property damage or public officials errors and omissions with respect to
which coverage is afforded under this Agreement; and the covered party shall attend hearings
and trials and assist in securing and giving evidence and obtaining the attendance of witnesses.
(e) The Authority shall be entitled to complete access to the covered party’s claim file, the
defense attorney’s complete file, and all investigation material and reports, including all
evaluations and information on negotiations. The covered party shall be responsible to report on
the progress of the litigation and any significant developments at least quarterly to the
Authority, and to provide the Authority with simultaneous copies of all correspondence provided
to the covered party by its defense attorneys and/or agents. ii
The Mandatory Case Reporting Policy applies to Section VII (Conditions) of the Memorandum
of Coverage and is applicable to all cases reportable to CJPRMA.
Mandatory Case Reporting Policy
Pursuant to Section VII (Conditions) of the Memorandum of Coverage, the following rule is applicable to all cases reported to CJPRMA.
Page 63
The Authority shall be entitled to complete access to the covered party’s claim file, the defense attorney’s complete file, and all investigation material and reports, including all evaluations and information on negotiations. The covered party shall be responsible to report the progress of the litigation and any significant developments at least quarterly (every 90 Days) to the Authority, and to provide the Authority with simultaneous copies of all correspondence provided to the covered party by its defense attorneys and/or its agents. In addition, the CJPRMA Board of Directors has adopted the following mandatory case reporting standards: 1) Defense counsel is expected to provide a written analysis of liability and exposure in any
reported claim no later than ninety days following receipt of the file from the member agency. CJPRMA understands that the liability picture may develop as discovery is ongoing, but this does not excuse the responsibility of providing an early, objective analysis of the file, subject to later developments. An early analysis not only permits the JPA member to set an accurate reserve level, but also permits the member entity to decide whether to actively litigate the case, try to settle the case, or limit discovery based upon the exposure.
2) The initial status report should provide, at a minimum, a brief synopsis of the facts giving
rise to the lawsuit; the status of the pleadings, including any discussions of demurrers or motions to dismiss, or cross‐complaints; a summary and analysis of plaintiff’s injuries, damages and exposures in the case; an initial impression of liability; any requests for additional investigation; a brief outline of the discovery planned; and an evaluation of anticipated litigation costs. The report need not be lengthy, and typically might not exceed three to five pages, but must address the issues directly and in a straightforward manner so that the member entity and CJPRMA can set cost and loss reserves as necessary.
3) Defense counsel is responsible to report, in writing, the setting of a trial date, settlement
conference date, hearing date on motion for summary judgement or similar dispositive motion in any litigated case, within one week of the date on which a court establishes such date. A copy of all mediation briefs and settlement conference statements shall be sent to CJPRMA prior to mediation. Mediation‐Settlement Conference briefs should also be accompanied by a report with an evaluation of settlement value, Plaintiff’s expected demand, and recommendation for settlement strategy.
4) Defense counsel is responsible to report, in writing, all settlement demands or offers within
one week of the time the offer is made or the demand is received. Informal settlement discussions should also be reported to CJPRMA. Defense counsel should give consideration to the timing of settlement discussion as it relates to the value of the case and the authority level required to be prepared for settlement. CJPRMA should be notified as early as possible of upcoming opportunities to settle so that the Board of Directors or Executive Committee has time to consider the settlement prior to the conduct of the settlement process.
Page 64
5) Defense counsel is responsible to report, in writing, on the substance of all depositions taken in the case. This need not be a multi‐page deposition summary, but must, at a minimum, include a concise report of major events occurring at the deposition, and an evaluation of the effect of the deposition testimony on the case. Report should also include witness impression and an evaluation of the witnesses’ credibility.
6) Finally, no later than sixty days before the date set for trial in any case, defense counsel is
responsible to report, in writing, on (1) an assessment of liability in the case, (2) the adverse potential exposure if liability is found, (3) a concise summary of injuries sustained and/or claims, (4) an assessment of any other factors (such as local jury tendencies, appearance of important witnesses, etc.) that may affect the liability analysis or exposure assessment, and (5) an opinion on the settlement value of the case.
7) All status reports from defense counsel must be copied to the CJPRMA Board member whose
entity is involved in the claim. This policy is designed to protect the member entity and CJPRMA, so that they can make informed litigation decisions on reported cases. Past experience has shown that defense counsel retained by the member entities of CJPRMA are high‐caliber, hardworking attorneys who have done very well for their clients, and CJPRMA is grateful for their efforts. Defense counsel are cautioned, however, that case reporting is given a high priority by CJPRMA and its members, and is a major consideration in evaluating counsel’s performance.iii Please send all documents to: CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
3201 Doolan Road., Suite 285 Livermore, CA 94511‐7570
(925) 837‐0667 (925) 290‐1543 Fax
Article IX of the CJPRMA BYLAWS create the following procedures for settlement:
ARTICLE IX
SETTLEMENT OF CLAIMS
All claims settlement recommendations shall be presented by the General Manager/Secretary,
or his designee, to, and be approved by, the Board prior to final settlement, except that the
Executive Committee shall have the authority to approve settlements in an amount not to
exceed $500,000 of the Authority's funds.
Page 65
In accordance with the Memorandum of Coverage, the Authority may assume control of and
defend or settle any claim determined to have a reasonable probability of resulting in an
ultimate net loss in excess of the member entity's retained limit.
The CJPRMA BYLAWS also create the following procedure for CJPRMA to take control of a case.
The procedure for assuming control of a claim shall be as follows:
1. The General Manager/Secretary may submit the issue of assuming control of a claim directly
to the Board of Directors, for decision, by presenting a written recommendation to that effect.
2. The General Manager and the covered party will have the right to submit written materials
and present oral arguments to the Board, subject to reasonable time constraints.
3. The Board may determine to assume control of a claim by a majority vote of the entire Board.
4. The affected Board member (i.e. whose member entity is the defendant in the claim) shall be
disqualified from the final discussion and vote on this issue. iv
This Compilation of CJPRMA Rules, Policy and Procedures should be provided to all defense counsel and
Third Party Claims Administrators assigned to claims/litigation involving our organization. These Rules,
Policies and Procedures will be used as part of the Model Audit Guidelines to insure that all litigation
management is equal to or greater than industry standards.
Claim Audit Standards:
The auditor performing the annual claims audit for CJPRMA will utilize the following claims standards.
These results will be presented to the Board of Directors for review and comment.
Claims Standards
Set by CJPRMA JPA Agreement, MOC, Bylaws and Mandatory Case Reporting Policy
Subject to Annual Claim Audit
I. Initial Case Reporting
i. Covered Party shall notify the Authority within 30 days of upon receipt of notice
of a claim
1. The setting of a reserve on any claim or suit including multiple
claims or suits arising out of one occurrence, such claim or reserve
amounting to fifty percent or more of the retained limit.
a. Standard: Reported (Yes or No) Timely (Days Delinquent)
Page 66
2. Title 42 USC 1983 cases in which a complaint has been served and
the plaintiff is represented by legal counsel or with reserves of
twenty‐five percent or more of the retained limit
a. Standard: Reported (Yes or No) Timely (Days Delinquent)
3. Regardless of reserve, any claim involving:
a. 1) one or more fatalities;
b. 2) loss of a limb;
c. 3) loss of use of any sensory organ;
d. 4) quadriplegia or paraplegia;
e. 5) third degree burns involving ten percent or more of the body;
f. 6) serious facial disfigurement;
g. 7) paralysis; or
h. 8) closed head injuries.
i. Standard: Reported (Yes or No) Timely (Days
Delinquent)
4. The covered party shall notify the Authority within 30 days upon
receipt of lawsuit containing allegations involving employment
practices liability.
a. Where any lawsuit is reported after the 30 day period as
required by this provision, all defense costs incurred prior
to the date of late reporting will not constitute covered
ultimate net loss eroding the self‐insurance retention.
b. The covered parties shall cooperate in an early review of
employment practices liability claims or suits with counsel
appointed by the Authority at the expense of the Authority.
i. Standard: Reported (Yes or No) Timely (Days
Delinquent)
II. Cooperation with CJPRMA
a. All case will be reviewed for compliance with following:
i. The covered party shall be obligated to forward to the Authority every
demand, notice, summons or other process received by it or its
representative.
1. Standards: CJPRMA receive all documents (Yes or No)
ii. The covered party shall cooperate with the Authority and upon its request
assist in making settlements, in the conduct of suits and in enforcing any
right of contribution or indemnity against any person or organization who
may be liable to the covered party because of bodily injury, personal
injury, property damage or public officials errors and omissions with
respect to which coverage is afforded under this Agreement
Page 67
1. Standards: CJPRMA receive cooperation (Yes or No)
iii. Complete access to the covered party’s claim file, the defense attorney’s
complete file, and all investigation material and reports, including all
evaluations and information on negotiations.
1. Standards: CJPRMA receive all documents (Yes or No)
iv. Report on the progress of the litigation and any significant developments
at least quarterly (every 90 days) to the Authority, and to provide the
Authority with simultaneous copies of all correspondence provided to the
covered party by its defense attorneys and/or agents.
1. Standards: CJPRMA receive all reports (Yes or No)‐ Timely (Days
Delinquent).
v. Defense counsel is expected to provide a written analysis of liability and
exposure in any reported claim no later than ninety days following receipt
of the file from the member agency.
1. The initial status report should provide, at a minimum, a brief
synopsis of the facts giving rise to the lawsuit; the status of the
pleadings, including any discussions of demurrers or motions to
dismiss, or cross‐complaints; a summary and analysis of plaintiff’s
injuries, damages and exposures in the case; an initial impression
of liability; any requests for additional investigation; a brief outline
of the discovery planned; and an evaluation of anticipated
litigation costs.
2. Standards: CJPRMA receive all reports (Yes or No)‐ Timely (Days
Delinquent).
vi. Defense counsel is responsible to report, in writing, the setting of a trial
date, settlement conference date, hearing date on motion for summary
judgement or similar dispositive motion in any litigated case, within one
week of the date on which a court establishes such date.
1. Standards: CJPRMA receive all reports (Yes or No)‐ Timely (Days
Delinquent).
vii. Defense counsel is responsible to report, in writing, all settlement demands or offers within one week of the time the offer is made or the demand is received. Informal settlement discussions should also be reported to CJPRMA. Defense counsel should give consideration to the timing of settlement discussion as it relates to the value of the case and the authority level required to be prepared for settlement. CJPRMA should be notified as early as possible of upcoming opportunities to settle so that the Board of Directors or Executive Committee has time to consider the settlement prior to the conduct of the settlement process.
Page 68
1. Standards: CJPRMA receive all reports = (Yes or No)‐ Timely (Days
Delinquent).
viii. Defense counsel is responsible to report, in writing, on the substance of all
depositions taken in the case. This need not be a multi‐page deposition
summary, but must, at a minimum, include a concise report of major
events occurring at the deposition, and an evaluation of the effect of the
deposition testimony on the case. Report should also include witness
impression and an evaluation of the witnesses’ credibility.
1. Standards: CJPRMA receive all reports = (Yes or No)
ix. Sixty days before the date set for trial in any case, defense counsel is
responsible to report, in writing, on (1) an assessment of liability in the
case, (2) the adverse potential exposure if liability is found, (3) a concise
summary of injuries sustained and/or claims, (4) an assessment of any
other factors (such as local jury tendencies, appearance of important
witnesses, etc.) that may affect the liability analysis or exposure
assessment, and (5) an opinion on the settlement value of the case.
1. Standards: CJPRMA receive all reports = (Yes or No) ‐ Timely (Days
Delinquent).
x. All status reports from defense counsel must be copied to the CJPRMA Board member whose entity is involved in the claim.
1. Standards: Board member copied (Yes or N0)
i JPA Agreement Adopted: 09/19/89, Re‐formatted 2/13/98 and 05/21/2009 – Page 9 (section A and E) ii Memorandum of Coverage Effective: 07/01/2015, SECTION VII – CONDITIONS, page 23‐24 iii Mandatory Case Reporting Policy – Page 1‐2 (with suggested amendments highlighted in Pink) iv Bylaws Amended: 06/16/94 , 09/19/94 , 09/20/99, 11/21/02, 04/17/06, 05/08/08, 12/11/08, 06/17/10 –page 14
Page 69
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ARTICLE IX
SETTLEMENT OF CLAIMS All claims settlement recommendations shall be presented by the General Manager/Secretary, or his designee, to, and be approved by, the Board prior to f inal settlement, except tha t the Executive Committee shall have the authority to approve settlements in an amount not to exceed $750,000 of the Authority's funds. The General Manager shall ha ve the authority to settle any claim up to $250,000. In accordance with the Memorandum of Coverage, the Authority may assume control of and defend or settle any claim determined to have a reasonable possibility of resulting in an ultimate net loss in excess of the member entity's retained limit. The procedure for assuming control of a claim shall be as follows:
1. The General Manager/Secretary may submit the issue of assum ing control of a claim directly to the Board of Directors, for decision, by presenting a written recommendation to that effect.
2. The General Manager and the co vered party will have the r ight to submit written
materials and present oral arguments to the Board, subject to reasonable time constraints.
3. The Board may determine to assume control of a claim by a majority vote of the entire Board.
4. The affected Board member (i.e. whose member entity is the defendant in the claim) shall
be disqualified from the final discussion and vote on this issue. A copy of the excerpt from the current Bylaws S ection IX Settlement of Claims is attached to this agenda bill with the highlighted recommended changes. In the event the Board of Directors approves this item the effective date of th is amendment will be October 23, 20 15, the day following the meeting. The Board of Directors has the option of not recommending the modifications to the Bylaws which is not recommended. The Board of Directors may also recommend modified limits from those currently proposed within this agenda bill. Staff recommends that the Board of Directors approve and adopt the change to Section IX, Settlement of Claims as provided. Staff will be present to discuss the recommended modifications.
Fiscal Impact:
1. None. The implementation of the modifications of the bylaws will not have an adverse fiscal impact on the program participants.
Exhibits: 1. Excerpt of CJPRMA Bylaws Section IX, Settlement of Claims
Page 71
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When the new method of calculating the funding rate was implemented, the Excess Loss Fund (ELF) was created to support future program years commencing with 2008/2009. The goal was to fund an amount ($22.5M) equivalent to five times the S.I.R ($4.5M) under the reinsurance program. The projected funding level would be generated over a ten-year period ($2.25M per year). Once reached, funding would be discontinued until such time as losses reduced its level. Including the current year contribution, $16.2M had been paid into the ELF. In order to maintain the net premiums in a stable manner, for the last three program years we have reduced the ELF contribution. Staff recommends that we once again reduce the PY 16/17 ELF contribution to $1M.
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(Mr. Kramer) did not like this so he had the CSJVRMA Board designate him as an “officer” of the agency in a letter to CJPRMA. Board President James was unhappy about this but discussed it with the Board, and they backed down and let CSJVRMA continue with Linzie Kramer as its CJPRMA Board member. They felt that if the CSJVRMA Board was oblivious to the conflict, and insisted on continuing to appoint a vendor on their behalf by holding him out as an “officer” of the JPA, even after the Bylaws were changed, they would not take the dispute further.
I think President Jame’s concerns were well taken, evidenced by the fact that the Bickmore people ultimately lobbied CSJVRMA’s Board to leave and join another excess pool operated by Bickmore.
Mike Simmons, Alliant Insurance Services complied with what was intended and SCORE (and later NCCSIF) appointed member employees as Directors to CJPRMA. This issue came arose again with Director Ron Blanquie when he was hired by Petaluma but was still running ICA and appointed on a contract basis. Former General Manager Bob German thought it violated the Bylaws for Petaluma to use an independent contractor as its appointed director. As I understand it the City decided to hire Ron directly instead of by contract with his firm to clear up the problem. I also suggested to Bob German that if the City sent us a letter saying “we hereby appoint Ron Blanquie as our Risk Manager, an official of the City” even though he was hired on a contract basis, we might have trouble excluding that choice under the Bylaws language. Bob German dealt directly with Ron Blanquie on this and I had some involvement, but you might want to discuss with Ron what they said to each other at the time. We did not define “employee” or “officer” separately. The Tort Claims Act defines “employee” at section 810.2 as including “an officer, judicial officer as defined in Section 327 of the Elections Code, employee, or servant, whether or not compensated, but does not include an independent contractor.” The problem has always been drafting language that covers different situations while keeping with the intent to avoid outside influences or conflicts. Some cities hire an outside attorney with independent practices as “City Attorney” and there is no doubt that such a person would be an “officer” of the City under the Government Code since the position is defined by statute. I would not want to disallow appointment of a City Attorney such as Rob Epstein – who legitimately is a City official even if he also has a private practice. I think “does not include an independent contractor” does not apply when the person holds an office recognized in the Government Code. That’s why we put “employee or officer” in the Bylaws; you can hold an office but be compensated as an independent contractor, but cannot be an “employee” if you are an independent contractor. I think if a member decided to hire a retired risk person on a contract basis and appoint them “Risk Manager” (i.e., City of Stockton) we would not object to that appointment, either, just on the basis that the member used a contract rather than an employee/employer hiring. But having an employee of a TPA as a Board member (or President) while employed by George Hills, a TPA company, might raise a number of complicating issues. For one thing, he would be
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a public official (as a CJPRMA Board member) but his sources of income for FPPC purposes not be just the City of Redding, it would be George Hills, and all of George Hills’ sources of income too. Sometimes the Board considers claims audits covering Hills and other rival TPAs, sometimes it considers settling claims that Hills adjusts for other members. These would create potential conflicts that Rob and Bill do not have.
Staff has taken note of all of the issues raised by Board Counsel and President Carmona. The evaluation of the alternatives is not based upon the person, but upon the precedent set by making the recommended changes. President Carmona has been an outstanding Board Member and adds significant value to CJPRMA as an organization. However, this decision cannot be made upon the basis of the individual but must be made based upon the perceptions and status of the person in the position. As Board Counsel stated, there are numerous potential conflicts associated with an employee of a private company, TPA, occupying a position of Director. The individual will ultimately be making recommendations and will be casting votes as a non-public employee on matters involving public funds.
Lastly, the City raised an argument that due to the state of the fiscal reality of the city, contracting this service will be a prudent option. As an organization, we constantly strive to meet or exceed the needs of our members and provide them with the most cost effective alternatives in coverage. However, based upon the governance model for this organization, it would be contrary to our mission, history and values to change our Bylaws to allow for a private employee to serve as a Board Member. The Executive Committee reviewed this item at their September Meeting. The committee evaluated a number of options and discussed the relative merits of not making the change as requested and the benefits of having an individual that works for a TPA with significant claim knowledge to serve as a Board Member. The committee did not take any formal action other than recommending this item be referred to the Board of Directors to make a determination on this issue. Staff has considered a number of points discussed by the committee and had developed a number of alternatives that may be considered by the Board of Directors. Alternative #1: The Board of Directors may vote to accept the arguments as presented by the City of Redding and allow for the designated risk manager to serve as the CJPRMA Board Member without limitation. Alternative #2: The Board of Directors may determine and require the following: The designated employee must be embedded in the city and must occupy an office on city property. The designated employee must be allocated at minimum 50% of a normal work-week (40 hours) dedicated to city issues. The designated employee must be named in the agreement with the vendor and the city will have the ultimate authority to control the work of the designated representative. The employee of the contractor will be named as the designated Risk Officer/Risk Manager for the city in the agreement. The city and contractor will provide a copy of the contract for services to CJPRMA to confirm compliance with the standard. Alternative #3: The Board of Directors may determine that there are no conflicts and could approve an employee of another organization to serve as a CJPRMA Director. The Board could limit the functionality of the designated Board Member and would exclude the member from serving as an officer to the Board or a member of the Executive Committee.
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Alternative #4: The Board of Directors may alter the current definition of an employee as written within the bylaws and permit a designated person serving as the Risk Manager/Claims Manager serve as a Board Member. The Board could adopt a standard that the individual may not serve as the designated Board Member for more than one CJPRMA Member. Alternative #5: The Board of Directors may alter the current definition of an employee as written within the bylaws and permit a designated person serving as the Risk Manager/Claims Manager serve as a Board Member. In addition there could be a maximum number of employees from each private firm that could be designated by the member as their representative to the CJPRMA Board of Directors. In each of the above four alternatives, CJPRMA must be provided with a copy of the contract document that defines the role of the employee to the city. The contract must state the name of the individual that will serve in the designated role as a designated city officer serving in the position.
Staff understands the current fiscal times and limitations on resources for our members. It is always the goal of CJPRMA to be an organization that exercises flexibility, creativity and considers developing alternatives that provide the best service to each of our members. This issue unfortunately strikes at the core of effective governance for CJRMA as an entity. In each of the above alternatives, a number of potential conflicts exist that can’t be dismissed. The general manager recommends that the Board of Directors reject the request and recommend that the bylaws not be modified.
Fiscal Impact:
1. None at this time. Exhibits:
1. City of Redding Memorandum dated September 1, 2015
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Office of the City Attorney
Risk Management-Liability Division
Barry E. DeWalt, City Attorney
Lynette M. Frediani, Assistant City Attorney
Jacob R. Baldwin, Deputy City Attorney
Christian M. Carmona, Risk Manager
777 Cypress Avenue, Redding, CA 96001
MEMORANDUM
DATE : Tuesday, September 1, 2015
TO : David Clovis, General Manager
FROM : Chris Carmona, Risk Manager
RE : By-Law Analysis
As you know, I resigned from the City of Redding effective November 2, 2015. I
accepted a position as a claims manager with George Hills Company. Subsequent
to my resignation, the City agreed to outsource the liability to George Hills and
allow me to continue serving Redding as their contracted risk manager. I will
continue to work from within the City Attorney’s office in the same office
performing the same duties as I did as an employee. It is a significant cost savings
to the City and I am respectfully requesting to remain on the CJPRMA board as
Redding’s director.
The state of the economy has had significant impacts on government agencies
which have been forced to implement unprecedented cuts and organizational
restructuring in response to the recession. Many cost reductions directly affected
risk management departments and forced some agencies to outsource to private
organizations in order to reduce costs and entrust the risk management
responsibilities to the professionals within our industry.
The CJPRMA by-laws drafted in the late 1980’s state that directors shall be
“employees” or “officers” of the member entity. Currently, the board of directors
and their alternates are comprised of employees, elected officials, and contracted
risk managers.
The City of Redding and CJPRMA would mutually benefit from this request for
the following reasons:
Page 85
1) The contracted risk manager performing the same duties brings knowledge
and experience to both organizations. It would make little sense to have
someone other than the risk manager participate and bring back the
information to the actual individual performing the duties.
2) The continued value of CJPRMA with respect to training and education will
be instrumental to the risk manager and City. Board members have been
critical of agencies sending individuals to board meetings who have no
experience with risk management. It would be contradictory to such
criticism should this request be denied.
3) The benefit of the contracted risk manager learning from other entities
regarding their practices and procedures brings more knowledge to both
CJPRMA and the City. For example, I have already studied a couple of
cases from an agency outside of CJPRMA and have learned a great deal how
a defense attorney and claims adjuster worked the claim. I am sure Craig
Schweikhard can attest and share his experiences that the more entities he
worked for, the better he became.
4) Many directors feel there are opportunities to bring other agencies into the
pool which would reduce costs for the current members. Already, Trindel, a
liability JPA comprised of 11 Northern California counties, has shown
interest in CJPRMA. I will be working closely with Trindel and believe
they would be a great fit for CJPRMA.
5) I was instrumental in the adoption and transition of Risk Console and PINS
to both Redding and CJPRMA. I have had several members contact me
directly regarding both of these programs. Being present at board functions
offers a forum for these opportunities and continued discussions.
6) Often times TPAs adjust claims with the mentality that it is “someone else’s
money” or make settlement discussions personal. Working for a TPA and
being on the board will help me and other board members understand these
dynamics and together we will work to find better ways that help all
members regardless of the TPA being used.
I understand the challenges and concerns that this request brings. I share the same
understanding that if more than one member of a private firm (third party
administrator, insurance broker, or JPA management company) are acting board
Page 86
members, it could present leverage potential for business purposes. I am
adamantly against having more than one board member who is an employee of the
same private firm.
This is right course of action for the City of Redding and CJPRMA for the reasons
outlined above. I would encourage restrictive language be adopted within the by-
laws that each case be looked at independently and highly scrutinized. Any form
of business posturing or solicitation should be grounds for immediate dismissal.
Basically, an “at will” board member if he or she breaches ethical boundaries.
The following is existing language contained in the by-laws and language open to
discuss to amend the by-laws: Existing By-Law Language:
DIRECTORS & OFFICERS
Appointment of Board of Directors
The governing board or other duly designated official of each member entity of the Authority
shall appoint a representative to the Board of Directors. Such representative shall be an
employee or officer of the member entity, or in the case of a joint powers authority, may be an
employee or officer of a member entity of such joint powers authority. The appointment shall be
in writing, directed to the Authority at its designated principal executive office, and shall remain
in effect until the receipt of a notice designating a replacement. Each member entity shall also
designate an alternate director, in the manner described above; to act in the absence of its duly
appointed representative except the alternate director shall not exercise the powers of an officer
of the Authority or serve on the Executive Committee.
Language Thoughts:
DIRECTORS & OFFICERS
Appointment of Board of Directors
The governing board or other duly designated official of each member entity of the Authority
shall appoint a representative to the Board of Directors. Such representative shall be an
employee, officer, or duly appointed official of the member entity, or in the case of a joint
powers authority, may be an employee or officer of a member entity of such joint powers
authority. If the proposed official is not an employee or elected representative, then board action
is required to evaluate the candidate. An employee or officer of a private entity or firm shall
occupy no more than one seat on the Board of Directors. Business posturing and solicitation are
strictly prohibited using CJPRMA influence for any business purposes. Violation of this policy
shall be grounds for immediate dismissal with an act of the Board. The appointment shall be in
Page 87
writing, directed to the Authority at its designated principal executive office, and shall remain in
effect until the receipt of a notice designating a replacement. Each member entity shall also
designate an alternate director, in the manner described above; to act in the absence of its duly
appointed representative except the alternate director shall not exercise the powers of an officer
of the Authority or serve on the Executive Committee.
Thank you for your time and consideration of this request.
Page 88
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Page 89
Back to Agenda
As of September 30, 2015, the Long Term Growth /Tactical Account was valued at $37,842,564. This was a decrease of $2,907,170 from its valuation of $40,749,734 on June 30, 2015. S everal securities were purchased in th e Treasury and Agency sector to keep the portfolio durat ion and structure in line with Chandler objectives. The purchased securities ranged in m aturity from February 2018 to July 2020. Multiple securities were sold and one was called to help facilitat e the additions to the portfolio and fund the $3.1 million withdrawal during the quarter.
The investments in all accounts comply with CJPRMA’s investment policy. Bill Dennehy, of Cha ndler Asset Managem ent, will be present to discuss th e portfolio and our investment strategy. In addition, he will be pro viding an update on economic factors that hav e had a direct impact on the investments.
Fiscal Impact: From June 30, 2015 to September 30, 2015, the value of the investment portfolio decreased by approximately $5,938,089.
Exhibits:
1. Investment Report from Chandler Asset Management, dated 09/30/2015
Page 90
CHANDLER ASSET MAN AGEMENT
6225 Lusk Boulevard | San Diego, CA 92121 | Phone 800.317.4747 | Fax 858.546.3741 | www.chandlerasset.com
Investment Report
Period Ending
September 30, 2015
California Joint Powers
Risk Management Authority
Page 91
TABLE OF CONTENTS
Economic Update
Account Profile
SECTION 1
SECTION 2
Page 92
SECTION 1
Economic Update
Page 93
Employment
Source: U.S. Department of Labor
0
50
100
150
200
250
300
350
400
450
MO
M C
han
ge In
(000's
)
Nonfarm Payroll (000's)
Source: US Department of Labor
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate
(%
)
Page 94
Inflation Below Fed’s Target
Source: US Bureau of Labor Statistics Source: US Bureau of Economic Analysis
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YO
Y(
%)
Ch
an
ge
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
YO
Y(
%)
Ch
an
ge
Page 95
Interest Rates and Yield Curves
Yield on the Two-Year Note April 2013 through April 2015
Source: Bloomberg
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yie
ld (%
)
-0.5%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
US Treasury Yield Curve
Sep-15
Jun-15
Sep-14
Yie
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)
Page 96
SECTION 2
Account Profile
Page 97
Objectives
Chandler Asset Management Performance Objectives The performance objective for the Loss Payment Account is to equal the return on a benchmark index with characteristics (duration
and sector allocation) similar to the characteristics of the Loss Payment Account.
The performance objective of the Long-Term Growth Account shall be to exceed the return on the benchmark index of five to ten
year US Government securities over a market cycle.
The performance objective of the Long-Term Growth Account (Tactical) shall be to exceed the return on the benchmark index of
the one to five year US Government securities over a market cycle.
Strategy In order to achieve these objectives, the portfolios invest in high quality fixed income securities consistent with the investment
policy and California Government Code.
Investment Objectives
The investment objectives of the California Joint Powers Risk Management Authority are first, to preserve principal; second, to
ensure liquidity; and third, to earn a return that is commensurate with the first two objectives. Funds available for investment are
segregated into three separate portfolios in order to meet the Authority's investment goals.
The Loss Payment Account
The Loss Payment Account shall be invested to match its duration to the duration of the Authority's expected claims and to
provide cash to pay losses, as they come due, and to pay the operating expenses of the Authority.
The Long Term Growth Account and the Long Term Growth Account (Tactical)
Recognizing that casualty liabilities are inflation sensitive, the Authority has established the Long Term Growth Account to
provide for long-term asset growth in order to offset potential inflation. The Long Term Growth Account (Tactical) has been
implemented to help manage the combination of extraordinary low interest rates and the intermediate risk of rates rising.
Page 98
Compliance
Category Standard Comment
Treasury IssuesMax maturity: 5 years for the Loss Payment Account; 10 years for
the Long Term Growth AccountComplies
US AgenciesMax maturity: 5 years for the Loss Payment Account; 10 years for
the Long Term Growth AccountComplies
Municipal Securities
"A" or higher by a NRSRO; 5% max issuer;
Max maturity: 5 years for Loss Payment Account; 10 years for
Long Term Growth Account
Complies
Supernationals"AA" or higher by a NRSRO; 30% maximum; 10% max issuer;
Includes: IBRD; IFC, IADB; 5 years max maturityComplies
Asset-Backed,
Mortgage-Backed Securities,
Collateralized Mortgage
Obligation
"AA" rated by 1 NRSRO; "A" or higher issuer rating by 1 NRSRO;
20% Maximum combined; 5 years max maturity Complies
Banker’s Acceptances"A-1" or higher by 1 NRSRO; 40% maximum; 5% per issuer; 180
days max maturityComplies
Commercial Paper
"A-1" or higher by a NRSRO; "A" or higher by a NRSRO, if long
term debt issued; 25% maximum; 5% per issuer; 270 days max
maturity
Complies
Medium Term Notes
"A" or higher by a NRSRO; 30% maximum; 5% per issuer;
Issued by corporation organized and operating within U.S; 5 years
max maturity
Complies
Money Market FundsAAA by at least 2 NRSROS and SEC Registered; 20%maximum;
10% per fundComplies
Time/ Certificates of Deposits5% per issuer; FDIC Insured or Collateralized; 3 years max
maturityComplies
Negotiable CDs
"A-1" or higher by a NRSRO; "A" or higher by a NRSRO, if long
term debt issued; 30% maximum; 5% per isser; 3 years max
maturity
Complies
LAIF 20% max Complies
Derivative Securities 5% per issue; 5-year maximum Complies
Reverse Repos Prohibited Complies
Futures and Options Prohibited Complies
Guaranteed SBA Notes Prohibited Complies
Inverse Floaters, Range Notes Prohibited Complies
Interest Only Strips Prohibited Complies
Zero interest accrual Prohibited Complies
Max Per Issuer5% (excluding US government, agencies, mortgage-backed,
asset backed securities, and money market fundsComplies
California Joint Powers Risk Management Authority
September 30, 2015
The portfolio complies with State law and with the Authority’s investment policy, except as noted below.
General Parameters
COMPLIANCE WITH INVESTMENT POLICY
Page 99
Compliance
Modified Duration
Approx. equal to duration of current
claim liabilities and operating expenses
of the Authority Complies
Maximum Maturity 5 years Complies
% invested <1 year Enough for cashflow Complies
Modified Duration
Approx. equal to duration consistent with
long term growth and future liabilities of
the Authority;
Within 80 to 120% of the benchmark Complies
Maximum Maturity 10 years Complies
California Joint Powers Risk Management Authority
September 30, 2015
COMPLIANCE WITH INVESTMENT POLICY
Long Term Growth Account
Account Specifics Parameter
Loss Payment Account
Page 100
Account Profile
CJPRMA - The Loss Payment Account
09/30/2015 06/30/2015
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 0.90 1.11 1.06
Modified Duration 0.88 1.01 1.00
Average Purchase Yield n/a 0.67 % 0.59 %
Average Market Yield 0.25 % 0.60 % 0.57 %
Average Quality** AAA AA/Aa2 AA/Aa2
Total Market Value 5,267,013 6,461,927* 0-3 yr Treasury
** Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.
Portfolio Characteristics
Two securities were purchased during the quarter to keep the portfolio structure and duration in line with Chandler targets. Both of the securities purchased were Asset Backed Securities with shorter maturities. One Treasury and one Agency note were sold to help facilitate the additions to the portfolio and to help fund the $1.2 million withdrawal from the portfolio.
Page 101
Sector Distribution
CJPRMA - The Loss Payment Account
September 30, 2015 June 30, 2015
The sector allocation changed materially driven by the aforementioned withdrawal from the portfolio. The two largest changes were the 18.4% decline in the LAIF allocation to 1.0% of the portfolio and the 8.0% increase in the Corporate allocation, to 44.2% of the portfolio.
*1-5 Year Govt until 7/31/01; Then 0-3Year Treasuries
Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
CJPRMA - The Loss Payment AccountPeriod Ending
September 30, 2015Total Rate of Return
Annualized Since Inception
August 31, 1995
Page 105
Account Profile
CJPRMA The Long Term Growth Account
09/30/2015 06/30/2015
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 6.84 6.32 6.30
Modified Duration 6.22 5.80 5.75
Average Purchase Yield n/a 2.36 % 2.36 %
Average Market Yield 1.72 % 1.85 % 2.07 %
Average Quality** AAA AA+/Aa1 AA+/Aa1
Total Market Value 38,695,171 40,531,176* BAML 5-10 Yr US Treasury/Agency Index
** Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.
Portfolio Characteristics
One Treasury note was purchased to extend the duration and maturity profile of the portfolio. The purchased Treasury note matures in August 2025. Two securities were sold, one Agency note and one Treasury note, to facilitate the aforementioned purchased and a $2.6 million withdrawal during the quarter.
Page 106
Sector Distribution
CJPRMA The Long Term Growth Account
September 30, 2015 June 30, 2015
The sector allocation was relatively stable. The two largest changes were the 2.6% decrease in the Agency allocation, to 51.8% of the portfolio, offset by the 2.5% increase in the Treasury allocation, to 32.6% of the portfolio.
Page 107
Quality Distribution
CJPRMA The Long Term Growth Account
AAA AA A <A NR
9/30/15 2.7 % 88.4 % 8.9 % 0.0 % 0.0 %
6/30/15 0.9 % 90.7 % 8.4 % 0.0 % 0.0 %
Source: S&P Ratings
September 30, 2015 vs. June 30, 2015
6/30/159/30/15
Page 108
Duration Distribution
CJPRMA The Long Term Growth Account
Portfolio Compared to the Benchmark as of September 30, 2015
The duration of the portfolio extended marginally, currently 5.80 versus 5.75 at the end of the prior quarter. Financial markets are likely to remain volatile in the near-term as the Federal Reserve consider the course of monetary policy in light of continued global headwinds. The Chandler team anticipates keeping the duration of the portfolio close to the benchmark in the coming quarter as any change to monetary policy is forecasted to be gradual.
Page 109
Investment Performance
Annualized3 months 12 months 2 years 3 years 5 years 10 years Since Inception
CJPRMA The Long Term Growth Account 2.12 % 5.03 % 4.31 % 1.86 % 3.70 % 5.85 % 6.45 %
BAML 5-10 Yr US Treasury/Agency Index 2.46 % 5.46 % 3.88 % 1.52 % 3.35 % 5.38 % 6.03 %
Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
CJPRMA The Long Term Growth AccountPeriod Ending
September 30, 2015Total Rate of Return
Annualized Since Inception
October 31, 1995
Page 110
Account Profile
CJPRMA The Long Term Growth Account (Tactical)
09/30/2015 06/30/2015
Benchmark* Portfolio Portfolio
Average Maturity (yrs) 2.67 2.63 2.65
Modified Duration 2.57 2.41 2.40
Average Purchase Yield n/a 1.60 % 1.60 %
Average Market Yield 0.85 % 1.04 % 1.09 %
Average Quality** AAA AA/Aa1 AA+/Aa1
Total Market Value 37,842,564 40,749,734* BAML 1-5 Yr US Treasury/Agency Index
** Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.
Portfolio Characteristics
Several securities were purchased in the Treasury and Agency sector to keep the portfolio structure and duration consistent with Chandler objectives. The purchased securities ranged in maturity from February 2018 to July 2020. Multiple securities were sold and one was called to help facilitate the additions to the portfolio and fund the $3.1 million withdrawal during the quarter.
Page 111
Sector Distribution
CJPRMA The Long Term Growth Account (Tactical)
September 30, 2015 June 30, 2015
The sector allocation was stable. The two largest changes were the 1.8% decline in the Commercial Paper allocation to 2.2% of the portfolio, offset by the 1.0% increase in the Treasury allocation, to 26.0% of the portfolio.
Page 112
Quality Distribution
CJPRMA The Long Term Growth Account (Tactical)
AAA AA A <A NR
9/30/15 5.4 % 79.6 % 12.8 % 0.0 % 2.2 %
6/30/15 5.7 % 80.3 % 11.9 % 0.0 % 2.1 %
Source: S&P Ratings
September 30, 2015 vs. June 30, 2015
6/30/159/30/15
Page 113
Duration Distribution
CJPRMA The Long Term Growth Account (Tactical)
Portfolio Compared to the Benchmark as of September 30, 2015
The duration of the portfolio was close to unchanged, currently 2.41 versus 2.40 at the end of the prior reporting period. Financial markets are likely to remain volatile in the near-term as the Federal Reserve consider the course of monetary policy in light of continued global headwinds. The Chandler team anticipates keeping the duration of the portfolio close to the benchmark in the coming quarter as any change to monetary policy is forecasted to be gradual.
Page 114
Investment Performance
Annualized3 months 12 months 2 years 3 years 5 years 10 years Since Inception
CJPRMA The Long Term Growth Account (Tactical) 0.67 % 1.99 % N/A N/A N/A N/A 1.81 %
BAML 1-5 Yr US Treasury/Agency Index 0.69 % 2.13 % N/A N/A N/A N/A 1.65 %
Total rate of return: A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
CJPRMA The Long Term Growth Account (Tactical)Period Ending
September 30, 2015Total Rate of Return
Annualized Since Inception
December 31, 2013
Page 115
Issuers
Page 116
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other structure. Preservationists sued to stop th e demolition but the City prevailed; however the City lacked the funds to complete the planned demolition once the litigation was over. During the ownership period Stockton attem pted to safeguard the structure utilizing chain link f encing to avoid occupation of the structur e by vagrants and the homeless. Th e City’s efforts failed and they ultimately ceased enforcement of preventing oc cupation. T he loss and dam age to the stru cture was caused by the persons occupying the structure. Stoc kton firefighters indicate th at continual squatters and vandals made holes in the floors and walls which cau sed the fire to spread faster and m ade the fire more dangerous. The City was ine ffective in preventing occupation of the structure and their failure ultimately resulted in a catastrophic loss. Th is failure to expend reso urces to pro tect the s tructure indicates an ineffective risk management program regarding infrastructure protection. This structure was added to the CJPRMA prope rty program in the 2008/09 program year. The appraised replacement value of the structure was $8,834,000. The overall loss of th e structure was in the amount of $10,029,715.78. The loss exhausted all of the limits provided by Munich Re and also impacted the XL insurance layer. Coverage placement issues: CJPRMA was able to avo id the 19% in crease quoted by Munich Re by moving the property program from Munich Re to AIG, which was willing to actually lower the property quote in order to secure the business. Howe ver, the markets we were able to approach were considerably narrowed because of the loss. None of the other carriers would have furnished a quote significantly better than the Munich Re quote. AI G was willing to maintain the lower quote because it is in an ag gressive marketing mode and also in part, we are told, because CJPRMA changed its memorandum of coverage to lim it coverage for vacant properties, so in the future coverage would no t exceed a stated fair market value. The issue illustrates a problem in that it is the property program’s largest loss and demonstrates how a single, large loss can affect the pr emiums for the entire purchasing group. Further the loss is on our history for future g roup purchases and m ay yet affect future placements. The question arises w hether the program should have a policy and procedure in place to anticipate large occurrences. It is better to address the matter now rather th an after another such occurr ence. The goal is to m aintain the advantages of a group purchase while being fair to program members in the allocation of premium. Many years ago in the early 1990s , CJPRMA provided excess worker s compensation coverage in a pooled layer. A si milar scenario arose; the C ity of Sunnyvale incurred two very large workers compensation claims involving police officers. When CJPRMA went to the excess workers compensation market, the large losses in the pool’s history caused high prem ium quotes. Meanwhile, individual members discovered that they could get individual quotes at much lower rates because they didn’t have to report the large losses in their own loss history. This was compounded by declining rates in a competitive market. The result ended up being termination of the program. Options: The members of the prop erty program have the option of considering multiple experience modifiers moving forward. At the direction of th e program participants, the ad opted experience modifiers may be applied retro actively based upon historical loss es sustained by the program. The following options have been provided for discussion at the meeting:
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Option 1: The m embers of the program could consider a loss such as the catastrop hic loss incurred at the City of Stockton as a loss incu rred and should be considered a cost of doing business and make no recommendations for change. A loss of this m agnitude could have occurred in any m ember’s jurisdiction and it was unfortunate but an inherent risk for which members purchase insurance. Option 2: the Board could consider an experience modification for any m ember that suffers a loss (individual loss, or p erhaps aggregate losses, in one pro gram year) exceedin g $1 m illion. The experience modification would apply through a formula that is set in advance under specific terms. For example: if a m ember has a loss in excess of $1 m illion, its premium would increase 10% ov er the manual rate (total insured value tim es the pool rate) each year for five years, but not to exceed 25% of the loss dollars exceeding $1 million. [All of the parameters are subject to discussion.] Option 3: an alternative to Option 2, or in addition to it, could be a policy that any member having two losses exceeding $1 m illion in a 5 year period, or total losses exceeding $2 million aggregate will be subject to a 20% experience m odification, plus the Board will have the option to consider other alternatives such as pass ing on any increased premium from the carrie rs directly to the m ember on a dollar-for-dollar basis; or excluding the m ember from the group quote; essentially, exclusion from the group purchase program (staff would solicit a separate quote for the individual member). Option 4: an alternative to Option 2 or 3, or in addition to it, could be a policy that any member having a single catastrophic loss exceeding $10 million in a single program year, and a determination is made the organization failed to im plement reasonable controls to minimize or avoid the loss. The mem ber would be subject to a penalty equal to the amount of premium increase for all members of the program in the following year. This surch arge could include the additional cost associated with the los s and could represent a percentage equiva lent to the proposed increase. As an exam ple, in the event this policy were in place curre ntly, the City of Stockt on would have incurred a pe nalty of approximately $986,000, the amount of increase for all program participants based upon the quotation provided by the incumbent carrier. The funds could be used to pr ovide property risk m anagement services to all members of the program or could be used to offset the increased cost of insurance premiums. Staff recommends that once a con sensus is determined this item will be pres ented to th e program participants at the December meeting for formal action. Staff will be present to discuss this item and will be prepared to provide additional details as requested.
Fiscal Impact:
None. No action will be taken as a result of this agenda bill. Exhibits:
None.
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CITY OF STOCKTON
OFFICE OF THE CITY MANAGER City Hall 425 N. El Dorado Street Stockton, CA 95202-1997 209/937-8212 Fax209/937-7149
www.stocktongov.com
August 11,2015 RECEIVED
David Clovis General Manager CJPRMA 3252 Constitution Drive Livermore, CA 94551
Effective August 5, 2015, DeAnna Solina, Interim Director of Human Resources will replace Teresia Zadroga-Haase as the City of Stockton's California Joint Powers Risk Management Authority (CJPRMA) Alternate Board Representative.
Should you have any questions, please feel free to contact DeAnna directly at 209-937- 8344 or by email at [email protected].
KURT O. WILSON CITY MANAGER
DEPUTY CITY MANAGER
KW:DS:sa
cc: DeAnna Solina, Interim Director of Human Resources
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Janu
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2015 Business Calendar Updated 05/18/2015
pg. 2
May Distribution of Board of Directors Annual Meeting Agenda– 05/12/2015 Board of Directors Annual Meeting – 05/19/2015 – 05/21/2015
o Commercial Insurance Renewals o Proposed Budget for 2015-2016 o Claims Audit Presentation o AB 1234 Ethics Training (even numbered years)
Return Certificate of Coverage Renewals Lists to Staff Deadline for Members to submit Agenda items for June Meeting – 05/28/2015
June
Distribution of Board of Directors Meeting Agenda – 06/11/2015 CJPRMA Board Member Orientation – 06/17/2015 Board of Directors Meeting – 06/18/2015
o Bi-annual election of President and Vice President (even numbered years) o Election of Executive Committee Members o Bi-annual Review of Conflict of Interest Code (odd numbered years) o Bi-annual Appointment of Treasurer (even numbered years)
Certificates of Coverage Renewals mailed to certificate holders (6/30/2015) Risk Management Plan Revisions Requests for reimbursement of liability training expenses due by August 31,2015
July
Distribution of Executive Committee Meeting Agenda – 07/09/2015 Executive Committee Meeting – 07/16/2015 General Liability Premiums Billed Auto Physical Damage Program Premiums Billed Property Program Premiums Billed Boiler & Machinery Premiums Billed Member Quarterly Payroll Reports -07/31/2015
August
Financial Audit in process Actuarial Study in process Marshburn Training – 08/18/2015 – 08/19/2015 Requests for reimbursement of liability training expenses due by August 31,2015
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2015 Business Calendar Updated 05/18/2015
pg. 3
September Distribution of Executive Committee Agenda – 09/10/2015 Executive Committee Meeting – 09/15/2015 at CAJPA CAJPA Conference 09/15/2015 - 09/18/2015
October
Deadline for Members to submit Agenda items for October Meeting – 10/01/2015 Distribution of Board of Directors Meeting Agenda – 10/15/2015 Board of Directors Meeting – 10/22/14
o Actuarial Study Presented o Approval of Annual Meeting and Holiday Calendars
Member Quarterly Payroll Reports – 10/30/2015 November
Distribution of Executive Committee Meeting Agenda – 11/12/2015 Executive Committee Meeting – 11/19/2015 Deadline for Members to submit Agenda items for December Meeting –
11/19/2015 December
Distribution of Board of Directors Meeting Agenda – 12/10/2015 Board of Directors Meeting – 12/17/2015
o Annual Report Presented o Financial Audit Presented o Annual Review of Investment Policy
Deadline for change to SIR or withdrawal from any CJPRMA program - 12/31/2015
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Janu
Feb
Mar
Apr
CALIFOR
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/10/2016
04/14/2016
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2016 Business Calendar Updated 09/28/2015
pg. 2
May Distribution of Board of Directors Annual Meeting Agenda– 05/10/2016 Board of Directors Annual Meeting – 05/17/2016 – 05/19/2016
o Commercial Insurance Renewals o Proposed Budget for 2016-2017 o Claims Audit Presentation o AB 1234 Ethics Training (even numbered years)
Return Certificate of Coverage Renewals Lists to Staff Deadline for Members to submit Agenda items for June Meeting – 05/26/2016
June
Distribution of Board of Directors Meeting Agenda – 06/9/2016 CJPRMA Board Member Orientation – TBD Board of Directors Meeting – 06/16/2016
o Bi-annual election of President and Vice President (even numbered years) o Election of Executive Committee Members o Bi-annual Review of Conflict of Interest Code (odd numbered years) o Bi-annual Appointment of Treasurer (even numbered years)
Certificates of Coverage Renewals mailed to certificate holders (6/30/2016) Risk Management Plan Revisions Requests for reimbursement of liability training expenses due by August 31,2016
July
Distribution of Executive Committee Meeting Agenda – 07/14/2016 Executive Committee Meeting – 07/21/2016 General Liability Premiums Billed Auto Physical Damage Program Premiums Billed Property Program Premiums Billed Boiler & Machinery Premiums Billed Member Quarterly Payroll Reports -07/31/2016
August
Financial Audit in process Actuarial Study in process
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2016 Business Calendar Updated 09/28/2015
pg. 3
September Distribution of Executive Committee Agenda – 09/08/2016 Executive Committee Meeting – 09/13/2016 at CAJPA CAJPA Conference 09/13/2016 - 09/16/2016
October
Deadline for Members to submit Agenda items for October Meeting – 10/06/2016 Distribution of Board of Directors Meeting Agenda – 10/20/2016 Board of Directors Meeting – 10/27/14
o Actuarial Study Presented o Approval of Annual Meeting and Holiday Calendars
Member Quarterly Payroll Reports – 10/31/2016 November
Distribution of Executive Committee Meeting Agenda – 11/10/2016 Executive Committee Meeting – 11/17/2016 Deadline for Members to submit Agenda items for December Meeting –
11/23/2016 December
Distribution of Board of Directors Meeting Agenda – 12/8/2016 Board of Directors Meeting – 12/15/2016
o Annual Report Presented o Financial Audit Presented o Annual Review of Investment Policy
Deadline for change to SIR or withdrawal from any CJPRMA program - 12/31/2016
