1 CSRMA California Sanitation Risk Management Authority 100 Pine Street, 11th Floor, San Francisco, CA 94111 OFFICERS: RECENT PAST PRESIDENTS: Robert Reid, President Kevin Hardy 408.378.2407 2003-2006 Russ Baggerly, Vice President Randall Musgraves 805.646.5548 2001-2003 EXECUTIVE BOARD MEETING AGENDA 450 Ryder Street,Vallejo, CA 94590 Date/Time: Thursday, August 19, 2010 Location: Monterey Marriott 5:30 PM 350 Calle Prinicipal Monterey, CA 93940 831-649-4234 Room: San Francisco A. CALL TO ORDER I: Information A: Action B. PUBLIC COMMENTS S: Separate H: Handout C. EXECUTIVE BOARD MEMBER COMMENTS V: Verbal D. CONSENT CALENDAR 1. Meeting Minutes - June 10, 2010 A p. 9 2. Reporting and Ratification of Claim Settlements A/V 3. Demands as of: June 21, 2010; July 8, 2010 and July 26, 2010 A p. 17 4. Long Range Action Plan 2010/11 Update I p. 21 E. CLOSED SESSION TO DISCUSS PENDING CLAIMS Action may be taken per Government Code Section 54956.95 A See Reverse for Full Listing of Claims that may be Discussed F. OFFICER/PROGRAM DIRECTORS/COMMITTEE REPORTS None. V G. GENERAL ADMINISTRATION 1. Conflict of Interest Code Biennial Notice A p. 39 2. Lake Arrowhead Community Services District - Notice Received I/V p. 47 3. CAJPA Accreditation I/S p. 51 4. Updated Alliant Insurance Services Contract I p. 53 H. POOLED LIABILITY PROGRAM 1. Be Sewer Smart Sponsorship A p. 73 2. CSRMA Employee Driving Standards Policy & Procedure A p. 77 3. MOC: Proposed Additional Covered Party Endorsement A p. 95 I. WORKERS' COMPENSATION PROGRAM None. J. PROPERTY PROGRAM None. c/o ALLIANT INSURANCE SERVICES, INC. Fax: 415.402.0773 Meeting Via Teleconference at the Following Location(s):
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CSRMA California Sanitation Risk Management Authority
100 Pine Street, 11th Floor, San Francisco, CA 94111
OFFICERS: RECENT PAST PRESIDENTS:Robert Reid, President Kevin Hardy408.378.2407 2003-2006Russ Baggerly, Vice President Randall Musgraves805.646.5548 2001-2003
D. CONSENT CALENDAR1. Meeting Minutes - June 10, 2010 A p. 92. Reporting and Ratification of Claim Settlements A/V3. Demands as of: June 21, 2010; July 8, 2010 and July 26, 2010 A p. 174. Long Range Action Plan 2010/11 Update I p. 21
E. CLOSED SESSION TO DISCUSS PENDING CLAIMSAction may be taken per Government Code Section 54956.95 ASee Reverse for Full Listing of Claims that may be Discussed
F. OFFICER/PROGRAM DIRECTORS/COMMITTEE REPORTSNone. V
G. GENERAL ADMINISTRATION 1. Conflict of Interest Code Biennial Notice A p. 392. Lake Arrowhead Community Services District - Notice Received I/V p. 473. CAJPA Accreditation I/S p. 514. Updated Alliant Insurance Services Contract I p. 53
H. POOLED LIABILITY PROGRAM1. Be Sewer Smart Sponsorship A p. 732. CSRMA Employee Driving Standards Policy & Procedure A p. 773. MOC: Proposed Additional Covered Party Endorsement A p. 95
I. WORKERS' COMPENSATION PROGRAMNone.
J. PROPERTY PROGRAMNone.
c/o ALLIANT INSURANCE SERVICES, INC. Fax: 415.402.0773
Meeting Via Teleconference at the Following Location(s):
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K. PRIMARY INSURANCE PROGRAMNone.
L. LOSS CONTROL1. Risk Control Online Access for Non-Members V
M. INFORMATION ITEMS1. Poem of the Day I p. 972. "How much damage can a data breach do?"- Article I p. 993. "Where claims could crop up" - Article I p. 1014. "Beyond standard coverage" - Article I p. 1035. "Shifting soil linked to increase in foundation failures" - Article I p. 1056. Review of Board of Directors Meeting Agenda V7. CSRMA 2010 Meeting Calendar I p. 1078. CSRMA Organizational Chart I p. 1099. CSRMA Service Team Chart I p. 111
N. ADJOURNMENTThe next meeting is scheduled for October 14, 2010
Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids orservices in order to participate in the meeting, are requested to contact Alliant at (415) 403-1400 twenty-four hours in advance of the meeting.Entrance to the meeting location requires routine provision of identification to building security. However, CSRMA does not require any memberof the public to register his or her name, or to provide other information, as a condition to attendance at any public meeting and will not inquireof building security concerning information so provided. See Government Code section 54953.3.
Member District File Code Claimant Date of Loss Claim Description
CARMEL AREA WASTE WATER DISTRICT 1520233 CALAFIORE, LINDA 2/15/2010 SEWER BACK-UP
CITY OF HALFMOON BAY 1452702 BARTON, JOSEPH 5/19/2007 SBU/TREE ROOTSCITY OF HALFMOON BAY 1491757 GASBARRI, JULIE 1/17/2009 SEWER BACK-UP
DELTA DIABLO SANITATION DIST. 1531105 EASTLAND, JERRY 7/8/2010 EE VEH DMGD BY DUMPSTER
DUBLIN SAN RAMON SERVICES DIST. 1447729 RIDGEWATER, ASSOCIATES, LLP 12/22/2006 DMG TO BLDG & CONCRETE/WTR SEEPAGEDUBLIN SAN RAMON SERVICES DIST. 1522245 REGAS, MELODY 6/11/2009 WATER DAMAGEDUBLIN SAN RAMON SERVICES DIST. 1530934 ANDERSON, DARYL 6/15/2010 WATER DAMAGE
ENCINA WASTEWATER AUTHORITY 1524101 RUBEN, LOUIS B ET AL, . 9/7/2007 UNKNOWNENCINA WASTEWATER AUTHORITY 1531330 EINERTSEN, MITCH 6/23/2010 DISCIPLINARY ACTION/PROPOSED TERMINATION
GRANADA SANITARY DISTRICT 1496726 MOORE, ADRIENNE 1/22/2009 SEWER BACK-UP
LAKE ARROWHEAD COMMUNITY SERVICES DIST. 1478351 OTT, PIERRE 5/24/2008 SILT IN FIXTURES RE METER CHANGELAKE ARROWHEAD COMMUNITY SERVICES DIST. 1503676 MIZIKER, RONALD 7/12/2009 SBULAKE ARROWHEAD COMMUNITY SERVICES DIST. 1530305 CHRISTIE, EDWARD & BONNY 7/25/2009 CIVIL SUIT FILED/EMPLOYMENT PRACTICESLAKE ARROWHEAD CSD (SBU) 1495580 ELION, CHASEY 4/27/2009 SEWER BACK-UPLAKE ARROWHEAD CSD (SBU) 1515915 KINZER, GENE 12/22/2009 SEWER BACK-UP
LAS GALLINAS VALLEY SANITARY DISTRICT 1519293 FERNANDEZ & CALONICO 2/19/2010 INSURED R/E O/VEH, PUSHED O/VEH INTO VEH AHEAD
LEUCADIA COUNTY WATER DIST. 1499496 HOLDER, LINDA 6/27/2009 SLIP/TRIP/FALLLEUCADIA COUNTY WATER DIST. 1522175 DAVIS, JANET 4/6/2009 SBU
MONTARA WATER AND SANITARY DISTRICT 1499361 RUSTAY, THERESA 4/7/2009 UNKNOWN INJURYMONTARA WATER AND SANITARY DISTRICT 1508063 BEECHER, ROBIN 11/8/2009 SBU
MONTEREY REGIONAL WATER 1521062 STATE FARM INSURANCE, (MIGUEL, KEVIN)
3/5/2010 INTERSECTION ACCIDENT
MONTEREY REGIONAL WATER 1524580 DIAZ, EDWARDO 5/6/2010 INSD VEH BACKED INTO CLMT VEH
MT. VIEW SANITARY DISTRICT 1515340 NOB HILL SHOP CENTER, .. 12/18/2009 SINK HOLE/FAILURE IN DIST PIPEMT. VIEW SANITARY DISTRICT 1516436 MELLO, DAN 1/7/2010 SEWER BACK-UPMT. VIEW SANITARY DISTRICT 1521651 COOLEY, JANELLE 3/29/2010 SBUMT. VIEW SANITARY DISTRICT 1528490 BICOMONG, SOPHIA 5/26/2010 UNCLASSIFIED
CSRMA Open / Active Claim Register Re 08/19/2010 Executive Board Meeting
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Member District File Code Claimant Date of Loss Claim Description
NORTH OF RIVER SANITARY DIST. 1517206 KEETER, CONNIE/BROOKE 1/18/2010 AUTO
OJAI VALLEY SANITARY DIST. 1442319 SEDLAK, JR., MICHAEL 6/19/2006 CLMT INJ WHILE LEVELING ROCK IN TRENCH/TRENCH COLLAPSED
SANITARY DISTRICT NO. 1 OF MARIN COUNTY 1432360 PAGE, RUTHANNA 12/31/2005 LANDSLIDE FROM UPHILL PROP SANITARY DISTRICT NO. 1 OF MARIN COUNTY 1476882 MARTINEZ, MARIA 5/27/2008 LAND SUBSIDENCESANITARY DISTRICT NO. 1 OF MARIN COUNTY 1485744 WATSON, JAMES 10/19/2008 SEWER BACK-UPSANITARY DISTRICT NO. 1 OF MARIN COUNTY. 1431481 ADE ET AL, ANDREAS 12/31/2005 MAIN SURCHARGE FLOODING / SBU ALLEGEDSANITARY DISTRICT NO. 1 OF MARIN COUNTY. 1451898 ARENA, ANNA 5/8/2007 INS'D GOING AROUND O/V IMPACT OCCURREDSANITARY DISTRICT NO. 1 OF MARIN COUNTY. 1481929 AJAMIAN, VARTAN & MARGARITA 2/23/2008 LAND SUBSIDENCESANITARY DISTRICT NO. 1 OF MARIN COUNTY. 1531136 DIGIROLAMO, LISA 7/8/2010 INSURED BACKING/STRUCK PARKED, UNATTEND
VEHSANITARY DISTRICT NO.1 OF MARIN COUNTY 1482601 GALEA, VICTORIA 6/6/2006 HILLSIDE DAMAGE/SEWER LINESANITARY DISTRICT NO.1 OF MARIN COUNTY 1485739 CAMPUS ST. JAMES, LARKSPUR LLC 11/9/2007 POLLUTANT REMOVAL/LOST PROFITSSANITARY DISTRICT NO.1 OF MARIN COUNTY 1516091 WONG, JOHN 1/2/2010 SEWER BACK-UP
SANITARY DISTRICT NO.5 OF MARIN COUNTY 1519485 LOUBE, SHIRLEY 2/24/2010 SEWER BACK-UP
SANTA MARGARITA WATER DISTRICT 1482474 EIMERS, KATHERINE 8/2/2008 MINOR FELL OVER RAILINGSANTA MARGARITA WATER DISTRICT 1520090 USAA, . 1/21/2010 O/P REAR ENDED INSUREDSANTA MARGARITA WATER DISTRICT 1521442 DEMOLAS, MARIA/REZANOUR 3/21/2010 SEWER BACK-UPSANTA MARGARITA WATER DISTRICT 1533069 HOJJATPANAH, SHAYDA 8/5/2010 SEWER BACK UP
SAUSALITO-MARIN CITY SANITARY DISTRICT 1522872 LOPEZ, YOLANDA 3/24/2010 ROCK FROM DIST TRK HIT WINDSHIELD
SEWERAGE AGENCY OF SOUTHERN MARIN 1431358 ARENA, ET AL, ALEXANDRA 12/31/2005 MAIN SURCHARGE FLOODINGSEWERAGE AGENCY OF SOUTHERN MARIN (SBU) 1470283 GLENOVICH, JAMES 1/31/2008 2.7 MIL GALLON SPILL INTO BAY
SOUTH TAHOE PUBLIC UTILITY DISTRICT 1495107 THE WOODFORDS INN, LLC 4/20/2009 TWO IRRIGATION DITCHES COLLAPSEDSOUTH TAHOE PUBLIC UTILITY DISTRICT 1503117 MYRICK, MERLENE 8/27/2009 VEH VS. MANHOLE COVERSOUTH TAHOE PUBLIC UTILITY DISTRICT 1515280 HAVEL, SONIA 9/1/2009 SEWER BACK-UP/WTR DMGSOUTH TAHOE PUBLIC UTILITY DISTRICT 1516048 WEST, CHARLES 12/30/2009 OPERATIONS/MAINTENANCESOUTH TAHOE PUBLIC UTILITY DISTRICT 1521934 WEDELN STREET, . 4/2/2010 SEWER BACK-UPSOUTH TAHOE PUBLIC UTILITY DISTRICT 1521972 GRIMES, JEAN 4/2/2010 SEWER BACK-UPSOUTH TAHOE PUBLIC UTILITY DISTRICT 1528827 BIGELOW, JULIANNE 5/25/2010 SEWER BACK UPSOUTH TAHOE PUBLIC UTILITY DISTRICT 1529243 HALL, STEPHEN 6/7/2010 LAT BRKN DURING WTR MAIN REPLACEMENTSOUTH TAHOE PUBLIC UTILITY DISTRICT 1530173 KEENEY, STEVE 6/18/2010 MAINTENANCESOUTH TAHOE PUBLIC UTILITY DISTRICT 1532241 MCCARTHY, JAN 7/27/2010 OPERATIONS/MAINTENANCE
STEGE SANITARY DISTRICT (SBU) 1502612 PARDINI, DAVID 8/24/2009 SEWER BACK-UPSTEGE SANITARY DISTRICT (SBU) 1517331 DIXON, PAM & DAN 1/20/2010 SEWER BACK-UPSTEGE SANITARY DISTRICT (SBU) 1520016 EDWARDS, MARK 3/3/2010 SEWER BACK-UPSTEGE SANITARY DISTRICT (SBU) 1529272 GREGORY'S LOUNGE, . 6/6/2010 SEWER BACK-UP
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Member District File Code Claimant Date of Loss Claim Description
TRIUNFO SANITATION DIST. 1525031 WILCOX, LARRY 5/12/2010 UNNKNOWN
UNION SANITARY DISTRICT 1518468 DALLAS, GIGI 2/7/2010 SEWER BACK-UPUNION SANITARY DISTRICT 1518653 COOK, RANDY 2/1/2010 ALLEGES DIST MAINT BROKE LATERALUNION SANITARY DISTRICT 1520020 COCCO, KELLY 2/26/2010 AUTO V. POTHOLE AROUND MANHOLE COVERUNION SANITARY DISTRICT 1521839 COLGLAZIER, JULIE 3/24/2010 SEWER BACK-UP
VALLEJO SANITATION AND FLOOD DIST. 1446633 THOMPSON, RONALD 8/14/2006 CONTRACTOR EMPLOYEE SHOCKEDVALLEJO SANITATION AND FLOOD DIST. 1480453 BLANTON, SPENCER 7/26/2008 SBUVALLEJO SANITATION AND FLOOD DIST. 1486016 GRENNAN/ PLATERO, ETAL 6/10/2008 USE OF EQUIP/DMG TO RETAINING WALLVALLEJO SANITATION AND FLOOD DIST. 1501107 LOPEZ, ELVA 7/10/2009 MANHOLE COVER V. VEHICLEVALLEJO SANITATION AND FLOOD DIST. 1502131 SALLEE, LAVONNE 8/16/2009 SEWER BACK-UPVALLEJO SANITATION AND FLOOD DIST. 1518363 TERRY, REBECCA 2/5/2010 SEWER BACK-UPVALLEJO SANITATION AND FLOOD DIST. 1523400 LEE, MICHAEL 4/26/2010 SEWER BACK-UPVALLEJO SANITATION AND FLOOD DIST. 1523965 WATTS, ROBERT & MARY 5/4/2010 SEWER BACK-UPVALLEJO SANITATION AND FLOOD DIST. 1524127 SMITH, DENISE 5/5/2010 SEWER BACK-UPVALLEJO SANITATION AND FLOOD DIST. 1528450 SORIANO, INES 5/25/2010 SANI TRK STRUCK CLMT'S PARKED VEHVALLEJO SANITATION AND FLOOD DIST. 1529153 AMOS, JOHN 6/7/2010 SEWER BACK-UPVALLEJO SANITATION AND FLOOD DIST. 1532138 NORFLEET, RON 7/26/2010 SEWER BACK-UP
VENTURA REGIONAL COUNTY SANITATION DIST. 1529845 MONADJEMI, FRED 6/8/2010 DMG TO LIGHT POLE BY DIST VEH
WEST BAY SANITARY DIST. 1483793 CLAYTON, TIMOTHY 8/27/2008 BREACH OF CONTRACTWEST BAY SANITARY DIST. 1489593 TURNER, JAMES 7/10/2008 CLMT FELL DUE TO GRAVEL ON ROADWEST BAY SANITARY DIST. 1499360 DIAZ, RON 6/26/2008 WRONGFUL TERMINATIONWEST BAY SANITARY DIST. 1508062 DOUGLAS, MICHAEL ETAL 8/14/2009 INVERSE INJUNCTIVE / DECLARATORY RELIEFWEST BAY SANITARY DIST. 1520182 SAN FRANCISCO, BAYKEEPER 12/2/2009 DECLAR & INJUNCTIVE RELIEF/ CLEAN WTR WEST BAY SANITARY DIST. 1523575 UNKNOWN, . 4/16/2010 AUTO ACCIDENT
WEST COUNTY WASTEWATER DISTRICT 1506674 GREGORY, BOB 10/14/2009 SEWER BACK-UPWEST COUNTY WASTEWATER DISTRICT 1517322 ANACLETO, GABE 1/15/2010 SEWER BACK-UPWEST COUNTY WASTEWATER DISTRICT 1522814 ANDREWS, LAURA 4/16/2010 SEWER BACK-UPWEST COUNTY WASTEWATER DISTRICT 1524856 PEACOCK, WILLIAM/DELPHINE 10/30/2009 ALLEG DMG TO LAT SEWER LINE.WEST COUNTY WASTEWATER DISTRICT 1531267 RAMIREZ, LUZ 7/6/2010 SEWER BACK UP
WEST VALLEY SANITATION DISTRICT 1483534 DOUGHERTY, KELLY 9/15/2008 SEWER BACK-UPWEST VALLEY SANITATION DISTRICT 1506147 LEARD, MARINA 10/2/2009 SEWER BACK-UPWEST VALLEY SANITATION DISTRICT 1514892 FERNANDEZ, BUENA & PATRICIA 12/11/2009 SEWER BACK-UPWEST VALLEY SANITATION DISTRICT 1522156 VALLI, CONSTRUCTION 4/6/2010 SBUWEST VALLEY SANITATION DISTRICT 1524827 VADAS, KUMIKO 5/16/2010 SEWER BACK-UPWEST VALLEY SANITATION DISTRICT 1529169 FOLEY, MIKE 6/4/2010 SEWER BACK-UPWEST VALLEY SANITATION DISTRICT 1531803 GIESTER, DORIS 7/20/2010 SEWER BACK-UPWEST VALLEY SANITATION DISTRICT 1532722 W. MAIN @ HWY 17, . 7/9/2010 SEWER BACK-UP/EXTERIOR
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CSRMA – as of July 31, 2010 INDEMNITY
CLAIMANT EMPLOYER TYPE OF CLAIM DATE INJURY
Jon Bachelder South Tahoe P.U.D. Surgical right shoulder 11/11/05 Penny Binder Central Contra Costa Sanitation Multiple Body Parts 9/17/07 James Bryant Victor Valley Wastewater District Surgical Left knee/Left shoulder 1/11/09 Robert Culbertson Union Sanitary District Fell – Fracturing Right Elbow 3/15/07 Felix Espinosa Central Contra Costa Sanitary Left Knee Strain 6/29/07 Larry Foged Novato Sanitary District Surgical Left Knee 8/8/08 Lorine Jones South Bayside System Authority Lower Back Strain 10/5/05 Thomas Klotz Monterey Regional Bilateral Shoulder Injury 12/7/06 Curtis McAbee Novato Sanitary District Right Elbow Strain 12/28/07 Mark McCallister Vallejo Sanitation & Flood Control Right Shoulder 9/14/07 Loren Brian Newton Union Sanitary District Multiple Contusions/Sprains: Left Hip/ankle/arm, back, Left
abdomen. 3/28/05
Bruce Price Central Contra Costa S.D. 7/6/06 Eric Robertson Ironhouse Sanitary District Surgical right shoulder 7/25/07 Larry Silveira Union Sanitary District Neck 7/18/05 Walter Smith South Bayside System Authority Lower Back 3/19/08 John Szabo Sewer Authority Mid-Coastside Low Back Strain 4/16/07 Jean Wood South Bayside System Authority Wrists – Carpal Tunnel 4/24/06
Total 17
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FUTURE MEDICAL
CLAIMANT EMPLOYER TYPE OF CLAIM DATE INJURY
Albert Armstrong West Valley Sanitation Slip- left knee injury 11/10/98 James Ayers Vallejo Sanitation & Flood Control Left knee injury 9/11/02 Jacob Baker Lake Arrowhead Community Lower Back 1/6/05 Gary Bamber West Valley Sanitation District Left knee-replacement 6/25/04 Anthony Comito Montecito Sanitary District Lifting- low back injury 11/16/95 Juan Diaz Union Sanitary District Lower Back 4/17/07 Joseph Dimaggio Monterey Regional Walking/Jogging – Left Knee 4/1/01 Jodey Dugan Santa Margarita Water District Finger tip amputation 3/28/07 William Erskine Sausalito-Marin City Sanitary Neck and Shoulder 9/15/98 William Erskine Sausalito-Marin City Sanitary 12/12/08 Mathew Grabowski Union Sanitary District Low back 10/10/06 Teri Hammett Central Contra Costa S.D. Bilateral Carpal Tunnel CT 7/24/06 Ralph Hernandez Delta Diablo Sanitation District Multiple Body Parts 4/17/97 Robert Hidalgo Goleta Sanitary District Low Back 12/24/02 David Jenkins So. Orange Co. Wastewater Left Knee Strain 1/29/01 Larry Johnson South Tahoe Public Utility District Multiple Body Parts 08/01/99 Christopher Moraida South Tahoe Public Utility District Lower Back Strain 4/4/05 Bud Rigdon Union Sanitary District Slip/Fall- multiple trunk/sprain 8/3/98 Michael Rondoni South Tahoe Public Utility District Multiple Body Parts 4/21/04 Eric Synsteby Monterey Regional Water Pollution C.A. Bilateral hands- severe contact dermatitis 9/21/00 Franklin Thompson Union Sanitary District Left knee & low back strain 10/14/00 Gordon Pete Trapp Central Contra Costa Sanitary District Left knee 11/22/04 Randy Wilhite Oro Loma Sanitary District Low back 9/16/02 Ron Wood Lake Arrowhead Sanitation Slip & fall- right hip injury 5/13/98 Timothy Youry West County Wastewater Strain – Left Foot/Left Hand 5/21/01
Total 25
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CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY EXECUTIVE BOARD MEETING
JUNE 10, 2010 SAN FRANCISCO, CA
MEMBERS & OFFICERS PRESENT Mr. Robert Reid, President, West Valley Sanitation District Mr. Russ Baggerly, Vice President, Ojai Valley Sanitary District [Via Teleconference] Mr. George Emerson, Secretary, Goleta Sanitary District [Via Teleconference] Mr. Kenneth Spray, Treasurer, Vallejo Sanitation & Flood Control District Mr. Talyon Sortor, Fairfield/Suisun Sewer District [Via Teleconference] Ms. Marcia Beals, Tahoe-Truckee Sanitation Agency Ms. Zoeanne Tafolla, Vallejo Sanitation & Flood Control District [Via Teleconference] Mr. Paul Bushee, Leucadia Wastewater District Mr. E.J. Shalaby, West County Wastewater District Mr. Tom Rosales, South Orange County Wastewater Authority [Via Teleconference] MEMBERS & OFFICERS ABSENT None GUESTS & CONSULTANTS Mr. Dennis Mulqueeney, Alliant Insurance Services, Inc. Mr. Seth Cole, Alliant Insurance Services, Inc. Mr. Myron Leavell, Alliant Insurance Services, Inc. Mr. P. J. Skarlanic, Alliant Insurance Services, Inc. Mr. David Patzer, Risk Management Solutions Mr. Byrne Conley, Gibbons & Conley A. CALL TO ORDER The meeting was called to order by President Robert Reid at 10:04 a.m. B. PUBLIC COMMENTS There were no public comments. C. EXECUTIVE BOARD MEMBER COMMENTS
There were no Executive Board member comments.
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D. CONSENT CALENDAR D.1. Meeting Minutes – April 29, 2010 The minutes of the meeting on April 29, 2010 were reviewed. A motion was made to accept the minutes as presented. MOTION: Paul Bushee SECOND: E.J. Shalaby MOTION CARRIED D.2. Demands as of April 21, 2010; May 12, 2010 and May 26, 2010 The Executive Board reviewed the demands of April 21, 2010; May 12, 2010 and May 26, 2010. A motion was made to approve the demands as presented. MOTION: Paul Bushee SECOND: E.J. Shalaby MOTION CARRIED D.3. Reporting and Ratification of Claims Settlements It was reported that the City of Mill Valley Pooled Liability Program claim has been settled in the amount of $132,756. A motion was made to ratify the settlement. MOTION: Paul Bushee SECOND: Kenneth Spray MOTION CARRIED Ayes Mr. Robert Reid, President, West Valley Sanitation District Mr. Kenneth Spray, Vallejo Sanitation & Flood Control District
Mr. Talyon Sortor, Fairfield/Suisun Sewer District Ms. Marcia Beals, Tahoe-Truckee Sanitation Agency Mr. Paul Bushee, Leucadia Wastewater District Mr. E. J. Shalaby, West County Wastewater District
Nays None E. CLOSED SESSION TO DISCUSS PENDING CLAIMS The Board entered Closed Session at 10:09 a.m. pursuant to Government Code Section 54956.95. The Board left Closed Session at 10:16 a.m., at which time it was announced that legal counsel and the claims administrator were provided direction concerning the disposition of certain claims. F. GENERAL ADMINISTRATION
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F.1. Program Administration, Insurance Brokerage and Risk Control Services Contract Dennis Mulqueeney reported that the Program Administration, Insurance Brokerage and Risk Control Services contract with Alliant Insurance Services is due to expire on July 1, 2010. At the Officers Committee meeting, a new three-year agreement was discussed. Bob Reid reported to the Executive Board that the Officer’s Committee reviewed Alliant’s proposal and evaluated them based upon the performance measures contained in the contract. Alliant proposed no increase in the fee this year due to the current economic climate. The Officers’ Committee recommends to the Executive Board that the proposed flat fee for 10/11 be approved. Russ Baggerly expressed his gratitude and appreciation of Alliant’s gesture. Byrne Conley suggested several amendments to the attached revised Proposed Agreement. A motion was made to approve the recommended flat renewal for the 2010/11 fiscal year with the noted amendments, and direction was given to Byrne and Dennis to meet and go through the contract and agree on its final terms for presentation to Bob Reid for signature. MOTION: Marcia Beals SECOND: E.J. Shalaby MOTION CARRIED G. OFFICER/PROGRAM DIRECTOR/COMMITTEE REPORTS G.1. 2010/11 Long Range Action Plan Bob Reid reviewed the Long Range Action Plan with the Executive Board. It was noted that all items are currently on target for completion as scheduled. G.2. CWEA Letter to CSRMA Bob Reid received a letter from Elizabeth Allan, Executive Director of the California Water Environment Association (CWEA) looking for ways to possibly partner with CSRMA. This partnership would expand the training options available to the membership of both organizations. The Program Administrators were directed to draft a response letter to CWEA for Bob Reid’s review and signature. H. POOLED LIABILITY PROGRAM - None I. WORKERS’ COMPENSATION PROGRAM
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I.1.a. Actuarial Study Seth Cole reviewed this item with the Executive Board. Every year, CSRMA has an Actuarial Study performed with the results presented to the Workers’ Compensation Committee. The actuaries, Anne Petrides and Melissa Chung of Towers Watson presented the results of the Actuarial Study to the Committee at their last meeting. Seth reviewed Towers Watson’s presentation with the Executive Board, explaining that Towers Watson projected a 6.16% increase in funding requirements for the '10-11 Program Year, which was a result of an increase in the pure premium rate of approximately 3% at the 70% confidence level, and a 1.8% increase in payroll. Seth reported that the increase in pure premium rate reflects greater than expected loss emergence and an increase in pure premium trend. I.1.b. Retrospective Rating Calculation as of December 31, 2009
Seth Cole reported that the draft Retrospective Rating Calculation as of December 31, 2009 has been completed and that the retro adjustments will either appear as a debit or credit on member’s July 1, 2010 renewal invoices. An adjustment of $153,623 will be credited to member invoices if approved by the Executive Board.
A motion was made that a net adjustment of $153,623 be credited to member invoices. MOTION: Paul Bushee SECOND: Marcia Beals MOTION CARRIED I.1.c. PY 21 (2010-11) Renewal Costs Seth Cole reported that the Workers’ Compensation Program will be renewing July 1, 2010 and that the Workers’ Compensation Committee is recommending that the Executive Board approve the renewal of the Program at a cost not to exceed $3,907,380, before consideration for Retro adjustments. The incumbent market, National Union Fire Insurance Company of Pittsburgh, PA (AM Best Rating A XV), quoted the renewal at a 13% reduction in premium, and offered a two-year rate guarantee (same as expiring). The Program Administrators obtained an alternate quote from Safety National Casualty Corporation (AM Best Rating A X). The quote received from Safety National represents an 18% reduction in premium, and a two-year commitment (premium paid annually). Safety National also offered a 1-year option representing a 21% reduction in premium.
A motion was made to renew the Workers’ Compensation Program, with Safety National Casualty Corporation for two years, premium paid annually, at a total expected cost not to exceed $3,907,380. MOTION: Kenneth Spray SECOND: Paul Bushee MOTION CARRIED
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I.2. Dividend Calculation as of December 31, 2009 Dennis Mulqueeney reported that every year, the Board of Directors evaluates declaring a dividend from retained funds held in the Workers’ Compensation Program, if any. Declaration of dividends is governed by Policy & Procedure No. 4-WC, which allows for dividends to be declared from completed program years if several requirements are met. Dennis indicated that the requirements have been met and that the Workers’ Compensation Committee is recommending that the Executive Board recommend to the Board of Directors that $997,562 in dividends be declared to the membership.
A motion was made to recommend to the Board of Directors that a dividend of $997,562 be declared to the membership. MOTION: Marcia Beals SECOND: Paul Bushee MOTION CARRIED I.3. Medical Provider Network Management Services Contract Renewal Seth Cole reported that the contract with Professional Dynamics Inc. (PDI) to provide Medical Provider Network Management Services will expire on July 1, 2010. The contract with PDI contains a provision that it be renewed annually for one additional 12-month term unless prior to that time it has been terminated by either party. The Workers’ Compensation Committee recommended that the contract with Professional Dynamics Inc. be extended for a 12-month term effective July 1, 2010.
A motion was made to approve the contract renewal, for one year, with Professional Dynamics Inc., effective July 1, 2010. MOTION: E. J. Shalaby SECOND: Marcia Beals MOTION CARRIED I.4. HT Consulting Contract Renewal Seth Cole reported that the contract with HT Consulting to provide Workers’ Compensation Claims Management services to CSRMA and the member agencies contains a provision that it be automatically extended for one additional one-year term as of each anniversary unless prior to that time it has been terminated by either party. HT Consulting is agreeable to continuing to provide this service at the current rate structure. Services will be billed monthly in the amount of Two thousand dollars ($2,000.00). If additional hours are needed, these would be billed at the rate of one hundred and sixty dollars ($160.00) per hour and would be subject to prior approval of the CSRMA Program Administrators. The Workers’ Compensation Committee recommended that the contract with HT Consulting be continued at the current rates. $30,000 has been budgeted for this expenditure in FY 10/11.
A motion was made to approve the contract renewal, for one year, with HT Consulting., effective July 1, 2010. MOTION: E. J. Shalaby SECOND: Paul Bushee MOTION CARRIED
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I.5. Claims Audit RFP Process Seth Cole reported that as directed by the Workers’ Compensation Committee during the February meeting, the Program Administrators issued a Request For Proposal (RFP) for claims auditing services. The RFP was sent to four (4) firms, all of which the Program Administrators determined were qualified candidates for the work to be performed. Two (2) of the firms approached provided responses to the RFP and two (2) declined to respond due to their current workloads. The responses were presented to the Workers’ Compensation Committee at the June meeting for review and recommendation to the Executive Board. The Workers’ Compensation Committee recommends to the Executive Board that Helling & Associates be selected as the auditing firm.
A motion was made to award the 2010 WC Claims Audit to Helling & Associates at a cost of $4,850. MOTION: Marcia Beals SECOND: Kenneth Spray MOTION CARRIED J. PROPERTY PROGRAM J.1. Property Program Renewal Seth Cole reported that the Property Insurance Program renews July 1, 2010. The Executive Board should consider a recommendation for the renewal at the meeting. Currently, CSRMA participates in the Public Entity Property Insurance Program (PEPIP), an insurance program managed by Alliant that offers extensive coverage and competitive rates. Changes to this year’s renewal include adjustments to the Total Insurable Values, pricing (slight increase) and coverage enhancements. The coverage enhancements included Cyber Liability. The Program Administrators recommend that the Executive Board approve renewing the Property Program at a total cost not to exceed $1,155,765. A motion was made to renew the Property Program in the PEPIP Program at a cost not to exceed $1,155,765. MOTION: Paul Bushee SECOND: E. J. Shalaby MOTION CARRIED K. PRIMARY INSURANCE PROGRAM – None L. LOSS CONTROL L.1. CSRMA Risk Control Workplan for 2010/11 David Patzer reviewed the Risk Control Work Plan with the Executive Board, stepping through Attachment 1 representing the proposed items for delivery.
14
L.2. Fall/Winter 2010/11 Area Training Update David Patzer reviewed the tentative area training schedule with the Executive Board. Slated to be presented are: Verbal Judo; Sewer Overflows: Regulatory and Civil Liability Update; Underground Utility Locating; Workers’ Comp Update/Functional Capacity Evaluations and Electrical Safety Basic Training. The trainings will be offered in a mix of northern and southern California locations. M. INFORMATION ITEMS M.1. Poem of the Day The Executive Board reviewed the Poem of the Day. M.2. Article – NWRI Research Report – Constituents of Emerging Concerns The Executive Board reviewed the article. M.3. Article – OC Register – Minute levels of drugs found in Orange County waterways The Executive Board reviewed the article. M.4. Article – Raley’s WC Case Settles For $580,000 The Executive Board reviewed the article. M.5. MARC – Medicare Second Payor Enhancement Act The Executive Board reviewed the information. M.6. Articles – 1) Nitrate contamination spreading in California communities &
2) Good News in San Luis Obispo County The Executive Board reviewed the articles. M.7. CAMP Annual Report The Executive Board reviewed the report. M.8. CSRMA 2010 Meeting Calendar The Executive Board reviewed the 2010 Meeting Calendar.
15
M.9. CSRMA Organizational Chart The Executive Board reviewed the CSRMA Organizational Chart. M.10. CSRMA Service Team The Executive Board reviewed the CSRMA Service Team Chart. N. ADJOURNMENT The meeting was adjourned at 11:13 a.m. The next meeting is scheduled for August 19, 2010.
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CHECK CHECK INVOICE INVOICE CHECK # DATE VENDOR NUMBER AMOUNT AMOUNT DESCRIPTION
7520 06/21/2010 Alliant Insurance Services various 1,887,470.90 1,887,470.90 WC Policy, Prog. Director Fee 10/11
7534 06/21/2010 WellCompManaged CareServices, Inc. SBR1000004367 1,916.80 1,916.80 Bill Review 4/10
7535 06/21/2010 Wellness Councils of America 78027 302.31 302.31 Well Workplace Newsletter 6/10
7536 06/21/2010 York Insurance Services Group, Inc. - CA 500002044 18,000.00 18,000.00 Claims Admin 6/10
TOTALS 1,989,882.85 1,989,882.85
I HEREBY CERTIFY THAT THE ABOVE LISTED CHECKS ARE FOR CORRECT AND JUST SERVICES OR MATERIALS RECEIVEDTHAT PAYMENT HAS NOT BEEN PREVIOUSLY MADE, AND THAT FUNDS ARE AVAILABLE TO COVER THESE PAYMENTS.
Kenneth Spray
(Please print name)
George Emerson
(Please print name)
CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY CHECK REGISTER GENERAL ACCOUNT NO. 7020015599
DEMANDS AS OF June 21, 2010
17
mleavell
Ken & George - Smaller
CHECK CHECK INVOICE INVOICE CHECK # DATE VENDOR NUMBER AMOUNT AMOUNT DESCRIPTION
7537 06/30/2010 CARMEL 2,200.00 2,200.00 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7538 06/30/2010 CASTRO VALLEY 1,200.00 1,200.00 Wellness Reimbursement Program7539 06/30/2010 DELTA DIABLO 1,200.00 1,200.00 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7540 06/30/2010 DUBLIN SAN RAMON 1,402.47 1,402.47 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7541 06/30/2010 FAIRFIELD-SUISUN 1,974.29 1,974.29 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7542 06/30/2010 IRONHOUSE 899.16 899.16 Safety & Risk Control Reimbursement Programs7543 06/30/2010 MONTECITO 1,000.00 1,000.00 Safety & Risk Control Reimbursement Program7544 06/30/2010 MONTEREY REGIONAL 1,717.46 1,717.46 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7545 06/30/2010 MT. VIEW 1,000.00 1,000.00 Safety & Risk Control Reimbursement Program7546 06/30/2010 NOVATO 2,111.78 2,111.78 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7547 06/30/2010 OJAI 1,609.55 1,609.55 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7548 06/30/2010 ORO LOMA 1,200.00 1,200.00 Wellness Reimbursement Program7549 06/30/2010 SANITARY DIST. #1 2,200.00 2,200.00 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7550 06/30/2010 SAN ELIJO 2,000.00 2,000.00 Safety & Risk Control Reimbursement Program7551 06/30/2010 SOUTH TAHOE 1,915.78 1,915.78 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7552 06/30/2010 STEGE 1,006.92 1,006.92 Wellness Reimbursement Program7553 06/30/2010 TRUCKEE 2,200.00 2,200.00 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7554 06/30/2010 VALLEJO 2,200.00 2,200.00 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs7555 06/30/2010 VALLEY 1,200.00 1,200.00 Wellness Reimbursement Program7556 06/30/2010 VENTURA 2,200.00 2,200.00 Wellness Reimbursement and Safety & Risk Control Reimbursement Program7557 06/30/2010 WEST COUNTY 1,200.00 1,200.00 Wellness Reimbursement Program7558 06/30/2010 WEST VALLEY 2,200.00 2,200.00 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs
7559 07/07/2010 SOUTH ORANGE COUNTY WAS Reimburse 705.72 705.72 Reimburse/Mr. Rosales's T&E CSRMA Liab/WorkComp Mtg 12/09
7569 07/07/2010 Wellness Councils of America 78728 302.31 302.31 Well Workplace Newsletter 7/10
TOTALS 70,568.88 70,568.88
I HEREBY CERTIFY THAT THE ABOVE LISTED CHECKS ARE FOR CORRECT AND JUST SERVICES OR MATERIALS RECEIVEDTHAT PAYMENT HAS NOT BEEN PREVIOUSLY MADE, AND THAT FUNDS ARE AVAILABLE TO COVER THESE PAYMENTS.
Kenneth Spray
(Please print name)
George Emerson
(Please print name)
CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY CHECK REGISTER GENERAL ACCOUNT NO. 7020015599
DEMANDS AS OF June 21, 2010
18
mleavell
Ken & George - Smaller
CHECK CHECK INVOICE INVOICE CHECK # DATE VENDOR NUMBER AMOUNT AMOUNT DESCRIPTION
7570 06/30/2010 SAN ELIJO 7570 1,000.00 1,000.00 Wellness Reimbursement and Safety & Risk Control Reimbursement Programs
7580 07/26/2010 Ojai Valley Sanitary District Reimburse 1,288.65 1,288.65 10/15/10 and 6/11/10 Baggerly Travel
TOTALS 57,675.83 57,675.83
I HEREBY CERTIFY THAT THE ABOVE LISTED CHECKS ARE FOR CORRECT AND JUST SERVICES OR MATERIALS RECEIVEDTHAT PAYMENT HAS NOT BEEN PREVIOUSLY MADE, AND THAT FUNDS ARE AVAILABLE TO COVER THESE PAYMENTS.
Kenneth Spray
(Please print name)
George Emerson
(Please print name)
CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY CHECK REGISTER GENERAL ACCOUNT NO. 7020015599
DEMANDS AS OF July 28, 2010
19
mleavell
Ken & George - Smaller
20
California Sanitation Risk Management Authority
Long-Range Action Plan
2010/2011
Alliant Insurance Services, Inc. 100 Pine Street, 11th Floor San Francisco, CA 94111
(415) 403-1400
As of:
August 5, 2010
21
Table of Contents
I. Member Satisfaction Survey ...................................................................................................1
II. Review of JPA Agreement & Bylaws .....................................................................................3
III. 2011 – “25 Years of Excellence” .............................................................................................4
IV. Functional Capacity Testing and Post Job Offer Evaluations ............................................5
V. Revamping Loss Control Safety Awards ...............................................................................7
VI. Review of Pooled Liability Retrospective Rating Plan Calculation .....................................9
VII. Review of Pooled Liability Deductible Levels ......................................................................11
VIII. CSRMA Website Updates......................................................................................................13
IX. Certificate of Achievement for Excellence in Financial Reporting (CAFR) Award ........14
22
I. Member Satisfaction Survey Description: The Executive Board has directed the Program Administrators to examine more closely the results of the survey focusing on those areas where members have noted concerns regarding claims handling for the Pooled Liability Program. Objective: To identify and address member concerns regarding claims handling. Action(s):
1. Review the survey responses to identify member concerns 2. Develop a plan to address member concerns 3. Present to the Pooled Liability Committee for review and recommendation 4. Present to Executive Board for review and recommendation 5. Take action, as necessary
Responsibility: 1. Alliant Insurance Services 2. Alliant Insurance Services 3. Alliant Insurance Services and Pooled Liability Committee 4. Alliant Insurance Services and Executive Board 5. Alliant Insurance Services
Deadlines:
1. July 2010 2. August 2010 3. September 2010 4. October 2010 5. November 2010
Fiscal Impact: None. Background: From time to time the Executive Board has commissioned member surveys to determine member attitudes towards various services by the JPA. The Program Administrators conducted a short member satisfaction survey in advance of the 2010 LRP Session in order to surface any potential areas of concern, and inform the LRP discussion. The results are generally positive. Follow up work will be performed by the Program Administrators regarding questions #14 and #15 from Pooled Liability section of the survey as follows: 14) Please rate the TIMELINESS of the claims handling response. 15) Please rate the QUALITY of the claims handling results.
ON TARGET
23
For question #14, 24% of those surveyed were either “reasonably satisfied” or “dissatisfied” on the timeliness of the claims handling response. For question #15, 40% of the respondents felt that the quality of the claims handling either “met” or were “below” expectations. Status: As of June 4, 2010, this project is on target. As of August 5, 2010, this project is on target.
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II. Review of JPA Agreement & Bylaws Description: The Executive Board has directed the Program Administrators to conduct a thorough review of the Joint Exercise of Powers Agreement & Bylaws and provide direction for any needed amendments. Objective: To ensure the Joint Exercise of Powers Agreement & Bylaws are in keeping with best practices for a well run JPA and that they are in keeping with the JPA’s philosophy. Action(s):
1. Review the governing documents for any needed amendments 2. Present to the Executive Board for review and recommendation 3. Present to the Board of Directors for approval 4. Take action, as necessary
Responsibility: 1. Alliant Insurance Services and Legal Counsel 2. Alliant Insurance Services and Executive Board 3. Alliant Insurance Services and Board of Directors 4. Alliant Insurance Services
Deadlines:
1. August 2010 2. October 2010 3. January 2011 4. January 2011
Fiscal Impact: Unknown at this time. Background: CSRMA’s Bylaws and Joint Exercise of Powers Agreement were recently restated to incorporate all of the previously approved amendments into single contemporaneous documents for increased ease of readability and understanding. The Program Administrators and Legal Counsel have conducted a preliminary review of the governing documents and noted their comments. Comments have also been received from member agencies and those have also been captured. Status: As of June 4, 2010, this project is on target. As of August 5, 2010, this project is on target.
ON TARGET
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III. 2011 – “25 Years of Excellence” Description: 2011 will mark CSRMA’s 25th year. The JPA has a long history of success and the Executive Board wishes to commemorate CSRMA’s accomplishments. Objective: To commemorate the 25th Anniversary of CSRMA. Action(s):
1. Develop ideas for a program at the August 2011 CASA conference 2. Contact CASA regarding hosting a special event at the August 2011
conference 3. Present to the Executive Board for review and recommendations 4. Take action, as necessary
1. December 2010 2. January 2010 3. April 2011 4. August 2011
Fiscal Impact: Unknown at this time. Background: The California Sanitation Risk Management Authority was formed in 1986 by 16 members and has grown to 60 members in 2010. Status: As of June 4, 2010, this project is on target. As of August 5, 2010, this project is on target.
ON TARGET
26
IV. Functional Capacity Testing and Post Job Offer Evaluations Description: The Executive Board wishes to make Functional Capacity Testing and Post Job Offer Evaluations more readily available to the members. Objective: To communicate the availability of Functional Capacity Testing Post and Job Offer Evaluations to members, and to identify potential partners to make the testing protocol more readily available and reduce the cost to the members. Action(s):
1. Include a recommendation in the safety audits for members to incorporate the testing protocol into their hiring practices
2. Communicate the importance and availability of Functional Capacity Testing to members, and notify them of available subsidies funds to offset the cost
3. Identify potential partners to make the testing more readily available to members 4. Present to the Workers’ Compensation Committee for review and recommendation 5. Present to the Executive Board for review and recommendation 6. Take action, as necessary
Deadlines: 1. Ongoing 2. May 2010 3. October 2010 – January 2011 4. February 2011 5. March 2011 6. March 2011 Fiscal Impact: Unknown at this time. Background: The workers’ compensation reforms signed into law a few years ago allows employers to collect AMA Guides Impairment Ratings at the time of hire to ensure future treatment or settlement associated with an Industrial Injury does not include pre-existing physical conditions. Delivering pre-injury AMA Guide Impairment Ratings into the hands of the claims administrator, physician and attorney prevents the employer from inheriting preexisting conditions into a permanent disability claim.
ON TARGET
27
Additionally, in order to help ensure that job descriptions accurately reflect employee duties and are not placing employees at risk by having them perform tasks beyond their physical capabilities, the pilot study also collected anonymous data on existing employees. Accelerated Industrial Solutions (AIS) performed a pilot study and presented the results at the January 2010 CSRMA/CASA Risk Management Seminar. The results indicate that there may be significant value in performing functional capacity evaluations using the AMA Guides Impairment Ratings at the time of hire and periodically, thereafter. CSRMA’s claims adjusters have echoed these findings. Additionally, there has been tremendous interest from the members in having this type of testing made available. The dilemma is that most occupational health clinics are not equipped to this type of testing. The following three questions are designed to assist in framing the discussion of what, if any, action CSRMA should take next with regards to functional capacity evaluations and post job offer evaluations as a means to reduce injury frequency and mitigate permanent disability determinations: 1. Should CSRMA, as an organization, pursue making functional capacity evaluations using the AMA
Guides Impairment Ratings more readily available to the members? 2. If the answer to Question #1 is yes, what are the near-term solutions available to CSRMA? -Suggestions from members hinge around cost sharing with members to have AIS come on site, as
needed, until such time the testing protocol is available locally. 3. If the answer to Question #1 is yes, what are the long-term solutions available to CSRMA? -Suggestions from members include:
- Ask CSRMA’s Medical Provider Network to ensure this testing protocol is available at clinics near all CSRMA members.
- Using York as the hub, work with other public agency workers’ compensation pools who likely use the same clinics CSRMA members do to place pressure on these clinics to make the testing protocol available.
Status: As of June 4, 2010, this project is on target. A recommendation for members to incorporate
the testing protocol into their hiring practices has been added to the safety audit template. The importance and availability of Functional Capacity Testing has been communicated to the members. A bulletin communicating the availability of subsidy funds to offset the cost of the testing to the members is forthcoming. At the request of the Workers’ Compensation Committee, this topic will be a standing item on future Committee meeting agendas.
As of August 5, 2010, this project is on target.
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V. Revamping Loss Control Safety Awards Description: The Program Administrators have been directed to explore alternatives to the current Safety Awards Programs to incentivize member agencies to control risk. Objective: To examine the award categories and revamp as deemed appropriate. Action(s):
1. Consider suggestions to change awards and develop alternatives 2. Present to Workers’ Compensation Committee for review and recommendations 3. Present to the Executive Board for review and recommendation 4. Present to the Board of Directors for review and recommendation 5. Take action, as necessary
Responsibility:
1. Alliant Insurance Services 2. Alliant Insurance Services and Workers’ Compensation Committee 3. Alliant Insurance Services and Executive Board 4. Alliant Insurance Services and Board of Directors 5. Alliant Insurance Services
Deadlines:
1. September/ October 2010 2. October 2010 3. December 2010 4. January 2011 5. February 2011
Fiscal Impact: Unknown at this time. Background: CSRMA created the award categories below to help motivate the membership to achieve great heights in loss control and to recognize those members who have exceptionally low losses. Safety Superstar
• Available to Workers’ Compensation Members • Top 15% of members based on formula measuring the member’s incident rate of claims, average
medical costs and indemnity costs against the pool average • Award given consists of a plaque, banner and CSRMA Bulletin • In practice, the winners each year are those members with no claims for that program year
Loss Control Program of the Year (2 categories; Collections and Treatment)
• Available to members participating in both pools • Comprehensive application is scored against CalOSHA and CalEPA requirements and
CSRMA’s Risk Control recommendations
ON TARGET
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• Award given consists of jackets and survival bottle for employees, plaque, banner and bulletin • The feedback for the application has been that it’s a positive exercise. The number of
applications has been declining each year. The following suggestions have been made for modifying the two programs: Safety Superstar
• Change the name of the award • Create two categories – large and small agency • Award 10% of the members in each category with the lowest for that program year • Provide the same award (i.e. banner, plaque and bulletin)
Loss Control Program of the Year (2 categories; Collections and Treatment)
• Change the name of the award • Update the application • Make the application available to complete online • Award each of the two winners a cash prize, payable to the employees (i.e. individual checks)
instead of jackets and survival bottles Status: As of June 4, 2010, this project is on target. As of August 5, 2010, this project is on target.
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VI. Review of Pooled Liability Retrospective Rating Plan Calculation Description: The Executive Board wishes to examine the impact fluctuations in claims reserves and IBNR liabilities have on the Retrospective Rating Plan calculation. Objective: To determine whether a change in the timing of the Retrospective Rating plan calculation would result in a smoothing of retrospective rating adjustments to individual members. Action(s):
1. Run test calculations at different time intervals and compare to current practice 2. Evaluate the potential affects to individual members. 3. Present to the Pooled Liability Committee for review and recommendation 4. Present to the Executive Board for review and recommendation 5. Present to the Board of Directors for review and recommendation 6. Take action, as necessary
Responsibility:
1. Alliant Insurance Services 2. Alliant Insurance Services 3. Alliant Insurance Services and Pooled Liability Committee 4. Alliant Insurance Services and Executive Board 5. Alliant Insurance Services and Board of Directors 6. Alliant Insurance Services
Deadlines: 1. July 2010 2. September 2010 3. November 2010 4. December 2010 5. January 2011 6. January 2011
Fiscal Impact: Unknown at this time. Background: The Retrospective Rating plan calculation results in adjustments to member deposits based on member claims experiences and claims experience for all members of the Program in a given Program Year. Initial reserves on individual claims, and Incurred But Not Reported (IBNR) liabilities set by actual projections based on historical claims data can result in large retrospective rating adjustments to individual members. A review of the timing of the Pooled Liability Program Retrospective Rating Plan calculation may be warranted in an effort to smooth the impact of fluctuations in claims reserves and IBNR liabilities. One administrative issue to consider is the switch may affect members’ expectations of retrospective adjustments.
ON TARGET
31
Currently the Retrospective Rating Plan calculation runs six months after expiration of a Program Year. The goal of the review would be to determine whether this time frame is adequate and provides sufficient time for claims to develop. Increasing the current six month time frame may provide more accurate data, and therefore result in a smoothing of retrospective rating adjustments to individual members to account for fluctuation in reserves and IBNR. The retrospective rating plan policy and procedure provides detailed information about the operation of the program. Essentially, each member pays a deposit at the start of a Program Year that is an estimate of the members’ share of the program’s expected losses for that Program Year. Adjustments to the members’ deposits are made annually based on the actual performance of the members and the Program as a whole until the Program Year is “closed” by the Board of Directors. Status: As of June 4, 2010, this project is on target. As of August 5, 2010, this project is on target. The Program Administrators have started
running the test calculations.
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VII. Review of Pooled Liability Deductible Levels Description: The Executive Board wishes to examine the impact of increasing the current $10,000 minimum deductible for sewer overflow claims. Objective: To determine whether or not the current $10,000 minimum deductible for sewer overflow claims should be increased. Action(s):
1. Have actuary analyze and evaluate data 2. Present findings to the Pooled Liability Committee for review and recommendation 3. Present to the Executive Board for review and recommendation 4. Present to the Board of Directors for review and recommendation 5. Take action, as necessary
Responsibility:
1. Alliant Insurance Services 2. Alliant Insurance Services and Pooled Liability Committee 3. Alliant Insurance Services and Executive Board 4. Alliant Insurance Services and the Board of Directors 5. Alliant Insurance Services
Deadlines:
1. August/September 2010 2. November 2010 3. December 2010 4. January 2011 5. February 2011
Fiscal Impact: Unknown at this time. Background: As costs associated with settling claims continue to escalate, CSRMA continues to explore ways to protect the pool. One such way to protect the pool is to review the current minimum deductible requirements. More specifically, to determine if the current $10,000 minimum deductible for sewer overflow claims is sufficient given CSRMA’s loss history. Over the previous ten years the average amount of sewer overflow claims is 56 per year. The average cost of those claims, over the same time frame, is $20,048. During the 2002 program year the Pooled Liability Committee directed the Program Administrators to increase the minimum deductible for sewer overflows to $10,000. The decision was made as a result of an actuarial study which analyzed the fiscal impact to the pool of implementing a $10,000 minimum deductible. The Pooled Liability Committee then directed legal counsel to draft an endorsement to the
ON TARGET
33
Memorandum of Coverage for the provision of a split (i.e. minimum) deductible level of $10,000 for sewer overflow claims. Status: As of June 4, 2010, this project is on target. As of August 5, 2010, this project is on target. The Program Administrators have had
discussions with the actuary and expect to receive a proposal for the actuarial work in the coming weeks.
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VIII. CSRMA Website Updates Description: The Executive Board has directed the Program Administrators to seek ways to improve the current CSRMA website. Objective: Update the current design and layout of the CSRMA website, and increase the functionality to provide members with an improved resource. Action(s):
1. Review current website layout and functionality 2. Gather ideas for desired changes 3. Present to the Executive Board for review and recommendation 4. Take action as necessary
Deadlines: 1. July-September 2010 2. October 2010 3. December 2010 4. January 2011 Fiscal Impact: Unknown at this time. Background: CSRMA has a proud tradition of providing state-of-the-art and leading edge services to its members. The project involves utilization of today’s technology, and how CSRMA distributes information to its members via its website. The Program Administrators are seeking input from the Executive Board on the design and layout of the website. Currently, a wide range of resources are available to member agencies online via CSRMA’s website (www.csrma.org), including Risk Control Online, the various program manuals, the JPA manual, the bylaws, risk control bulletins, a discussion board, information on conferences/seminars, a meeting calendar and contact information. Status: As of June 4, 2010, this project is on target. As of August 5, 2010, this project is on target.
IX. Certificate of Achievement for Excellence in Financial Reporting (CAFR)
Award Description: The Executive Board has directed the Program Administrators to apply for the Certificate of Achievement for Excellence in Financial Reporting (CAFR) Award. Objective: To apply for and be awarded the Certificate of Achievement for Excellence in Financial Reporting. Action(s):
1. Incorporate the CAFR into financial audit contract 2. Prepare submission for the Award 3. Present to the Finance Committee for review and recommendation 4. Present to the Executive Board for review and recommendation 5. Submit application
Responsibility:
1. Alliant Insurance Services and Finance Committee 2. Alliant Insurance Services 3. Alliant Insurance Services and Finance Committee 4. Alliant Insurance Services and Executive Board 3. Alliant Insurance Services
Deadlines: 1. April 2010 2. July-October 2010 3. November 2010 4. December 2010 5. December 2010 Fiscal Impact: None. Background: It has been determined by the Executive Board that applying for the Certificate of Achievement for Excellence in Financial Reporting (CAFR) Award, and the Distinguished Budget Award is a worthwhile endeavor. The CAFR will not require much additional effort, and it would serve as a third party validation of “25 Years of Excellence”. The distinguished Budget Award will require moiré time and effort. The CAFR must be submitted to the GFOA by December 31, and that fits nicely with CSRMA’s schedule. CSRMA would prepare the MD&A, that we already prepare, some additional introductory narrative, and add some statistical tables that are usually stated on a 10-year basis.
ON TARGET
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There are four areas to cover for the Distinguished Budget Award: (1) The budget as a policy document, (2) The budget as a financial plan, (3) The budget as an operations guide, and (4) The budget as a communication device. The GFOA established the Certificate of Achievement for Excellence in Financial Reporting Program (CSFR Program) in 1945 to encourage and assist state and local governments to go beyond the minimum requirements of generally accepted accounting principles to prepare comprehensive annual financial reports that evidence the spirit of transparency and full disclosure and then to recognize individual governments that succeed in achieving that goal. The GFOA established the Distinguished Budget Presentation Awards Program (Budget Awards Program) in 1984 to encourage and assists state and local governments to prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s recommended practices on budgeting and then to recognize individual governments that succeed in achieving that goal. The Budget Award will be pursued in the future. Status: As of June 4, 2010, this project is on target. The engagement with Vavrinek, Trine &
Day Co., LLP to perform the financial audit as of June 30, 2010 includes the provision to prepare a Comprehensive Annual Financial Report (CAFR). The Certificate of Achievement in Financial Reporting Award requires a CAFR.
As of August 5, 2010, this project is on target. The Program Administrators are working
with the auditor to prepare the CAFR.
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Agenda Item No. G1 Executive Board Meeting
Meeting Date: August 20, 2010
Conflict of Interest Code
Biennial Notice ISSUE: CSRMA is required by the Fair Political Practices Commission (FPPC), as the code reviewing body for multi-county agencies, to submit a Conflict-of-Interest Code Biennial Notice by October 1, 2010. Legal counsel has reviewed the notice and is not aware of any changes needed to CSRMA’s current Conflict-of-Interest Code. RECOMMENDATION: Legal counsel recommends that CSRMA review their Conflict-of-Interest Code and approve the submission of the Biennial Notice indicating no changes needed by October 1, 2010. FISCAL IMPACT: None BACKGROUND: The Political Reform Act requires every multi-county agency to review its conflict-of-interest code biennially and submit a notice to its code reviewing body that specifies if the code is accurate, or alternatively, that the code must be amended. CSRMA as a multi-county agency must adhere to these rules. ATTACHMENTS: 1) 2010 Multi-County Agency Biennial Notice and Instructions 2) CSRMA Conflict-of-Interest Code
39
California Fair Political Practices Commission www.fppc.ca.gov/866-ASK-FPPC 6/2010
2010 Multi-County Agency Biennial Notice Name of Agency: Mailing Address: Contact Person: Office Phone No: E-mail: Fax No: Accurate disclosure is essential to monitor whether officials have conflicts of interest and to help ensure public trust in government. This agency has reviewed its conflict-of-interest code and has determined that (check one box): An amendment is required. (Check all that apply.) Substantive
Include new positions (including consultants) that must be designated
Delete Positions that manage public investments from the list of designated positions
Revise disclosure categories
Other (describe)_____________________
__________________________________
Non-Substantive
Revise the titles of existing positions
Modification of any provision of a code, provided no disclosure or disqualification obligations are disturbed
Delete titles of positions that have been abolished
Other (describe)______________________
_____________________________________ Code is currently under review by the code-reviewing body. No amendments necessary.
Verification The agency’s code accurately designates all positions that make or participate in the making of governmental decisions; the disclosure assigned to those positions accurately requires the disclosure of all investments, business positions, interests in real property, and sources of income that may foreseeably be affected materially by the decisions made by those holding designated positions. The code includes all other provisions required by Government Code section 87302.
__________________________________________ _________________________ Signature of Chief Executive Officer Date
All agencies must complete and return this notice, including agencies whose codes are currently under review. Please return this notice no later than October 1, 2010, to:
Fair Political Practices Commission
428 J Street, Suite 620 Sacramento, CA 95814
(866) ASK-FPPC Fax (916) 322-3711
40
California Fair Political Practices Commission Page 1 of 1 www.fppc.ca.gov/866-ASK-FPPC 6/2010
FAIR POLITICAL PRACTICES COMMISSION
2010 Conflict-of-Interest Code Biennial Notice for Multi-County Agencies
The Political Reform Act requires every local government agency to review its conflict-of-interest code biennially. October 1, 2010: Your agency must review its conflict-of-interest code and submit the attached notice to the FPPC indicating whether or not an amendment is necessary. Return this notice to the FPPC regardless of how recently your agency’s code has been approved, or if the code is currently under review. If amendments are necessary, the revised code must be forwarded to the FPPC for approval within 90 days from the date the biennial notice is filed. An agency’s amended code is not effective until it has been approved by the FPPC. New Positions: FPPC Regulation 18734, effective January 1, 2010, requires an individual hired for a position not yet covered under your agency’s conflict-of-interest code to file Form 700 if the individual serves in a position that makes or participates in making governmental decisions. These individuals must file under the broadest disclosure category until the code is amended to include the new position unless your agency has provided, in writing, a limited disclosure requirement.
Example: An agency hires a new IT Specialist. This is a brand new position, thus not listed in the agency’s conflict-of-interest code. Because this individual will make decisions on purchasing software, the position must be added to the code. In the meantime, this person will file Form 700 and use the same disclosure category as the general manager, who is subject to the agency’s broadest disclosure category. Only if the agency provides the individual with a separate written document can the IT Specialist disclose limited types of economic interests.
Attend a Seminar! Learn about the new FPPC regulations affecting local agencies. County of San Diego
Administration Center Wednesday, June 16, 2010 1600 Pacific Highway, Room 402 San Diego, CA 92101 1:00-3:00 PM
San Rafael Council Chambers Wednesday, June 23, 2010 1400 Fifth Avenue San Rafael, CA 94901 1:30-3:30 PM City of Long Beach Council Chambers Wednesday, June 30, 2010 333 W. Ocean Boulevard Long Beach, CA 90802 1:30-3:30 PM Sacramento FPPC 8th Floor Hearing
Room Wednesday, July 7, 2010 428 J Street Sacramento, CA 95814 1:00-3:00 PM Ukiah Administration Building,
Board Chambers Wednesday, July 21, 2010 501 Low Gap Road Ukiah, CA 95482
1:00-3:00 PM To register for a seminar, call the FPPC
at (866) ASK-FPPC, press 4. Seminars are subject to change.
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California Fair Political Practices Commission Page 1 of 1 www.fppc.ca.gov/866-ASK-FPPC 6/2010
How to Review a Conflict-of-Interest Code1
Designate these Positions: High level positions that have authority to vote on a matter, appoint a person,
obligate or commit his or her agency to a course of action, or enter into any contractual agreement on behalf of his or her agency.
Mid-Level positions that have authority to negotiate decisions on behalf of the
agency, without significant substantive review; or Employees that advise or make recommendations to the decision-maker by
conducting research or an investigation, preparing or presenting a report, analysis or opinion that requires the exercise of judgment on the part of the employee and the employee is attempting to influence the decision.
A designated employee is an officer, employee, member, or consultant of an agency
whose position is designated in the code because the position entails the making or participation in the making of governmental decisions that may foreseeably have a material effect on his or her financial interest. (Government Code Section 82019.)
Do Not Designate these Positions:
Board of Supervisors Mayors Chief Administrative Officers City Managers District Attorneys City Attorneys County Counsels City Treasurers County Treasurers Other city, county, and local agency public Planning Commissioners officials who manage public investments City Council Members
Solely clerical, ministerial, or manual positions
Unsalaried members of boards or commissions that are solely advisory Review: First, eliminate positions outlined above that are not designated employees. Second, evaluate the remaining employees, committees, officers, or consultants.
Top level management personnel are normally broad policy makers and should be designated. Beyond that, read duty statements and talk to supervisors. Each position should be analyzed to determine if it makes decisions. Be sure all positions that have authority to authorize contracts are designated.
Next, review the disclosure categories. Employees should only disclose economic
interests that relate to their job. Do not assign the same disclosure to every position as jobs are different. The disclosure category assignments must adequately differentiate between positions.
Contact other counties for examples and guidance. The FPPC also posts model
disclosure categories on its website.
1 This information sheet should not be used to determine whether an agency is required to adopt a conflict-of-interest code. Contact the FPPC for assistance in making that determination.
California Fair Political Practices Commission Page 1 of 1 www.fppc.ca.gov/866-ASK-FPPC 6/2010
How to Amend a Conflict-of-Interest Code
The following are the FPPC’s guidelines of the steps necessary to amend a conflict-of-interest code. Additional information may be required depending on the specific amendment. The FPPC’s website, www.fppc.ca.gov, has available all of the necessary forms and documents to prepare an amendment. When the code reviewing body is a City Council or Board of Supervisors, contact the local code reviewing body concerning their code amendment procedures. Non-Substantive Amendments 1. Provide a letter or memorandum describing the positions that have been deleted or
renamed.
2. Include a copy of the entire code showing the changes in strikeout/underscore format.
3. Include a declaration by the chief executive officer.
Substantive Amendments 1. Prepare the proposed amendment using strikeout/underscore format.
2. Prepare a Notice of Intention and conduct a public comment period. Multi-county agencies must have a 45-day comment period. Other local agencies must follow the city’s or county’s requirements. Provide a copy of the notice to:
a. Members of the public and to each employee affected by the proposed amendment.
b. Multi-county agencies should also forward the notice to the FPPC.
3. Submit to the code reviewing body the proposed code amendment in strikeout/underscore format. Multi-county agencies must provide the following:
a. A declaration by the Chief Executive Officer b. A summary of any hearing, including the names and addresses of any participants c. Copies of all written comments d. Written justification for all changes e. The most current organizational chart of the agency f. Job descriptions of all positions being added or whose disclosure category is being
changed g. Minutes of the last two agency board meetings, if applicable. Example strikeout/underscore format
III. PUBLIC WORKS OFFICE MAINTENANCE DIVISION
1. Maintenance Superintendent .................................... 2 2. Maintenance Supervisor ........................................... 2 2. Asst. Maintenance Superintendent ........................... 2 3. Senior Equipment Technician .................................. 3 3. Equipment Services Technician ............................... 3 • The Public Works Office became the Maintenance Division. • The Asst. Maintenance Superintendent was reclassified to Maintenance
Supervisor. • The Equipment Services Technician position has been deleted.
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California Fair Political Practices Commission Page 1 of 1 www.fppc.ca.gov/866-ASK-FPPC 6/2010
(Your agency would fill in the underscored inserts)
(Name of Agency)
NOTICE OF INTENTION TO ADOPT OR AMEND A
CONFLICT-OF-INTEREST CODE NOTICE IS HEREBY GIVEN that the (your agency’s name) intends to adopt or amend a conflict-of-interest code pursuant to Government Code Section 87300 and 87306. Pursuant to Government Code Section 87302, the code will designate employees who must disclose certain investments, income, interests in real property, and business positions, and who must disqualify themselves from making or participating in the making of governmental decisions affecting those interests. A written comment period has been established commencing on (first day of comment period) and terminating on (last day of comment period). Any interested person may present written comments concerning the proposed code no later than (last day of comment period) to the (your agency’s name and address). No public hearing on this matter will be held unless any interested person or his or her representative requests a public hearing no later than 15 days prior to the close of the written comment period. The (your agency’s name) has prepared a written explanation of the reasons for the designations and the disclosure responsibilities and has available all of the information upon which its proposal is based. (Describe the proposed code or amendment in general terms. Include a concise, clear summary of the provisions of the existing code, if any, which will be affected by the proposed amendments and a summary of how those provisions will be affected by the proposed amendments.) Copies of the proposed code and all of the information upon which it is based may be obtained from the (your agency’s name and address). Any inquiries concerning the proposed code should be directed to (name of agency official and telephone number, email (optional)).
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DECLARATION OF CHIEF EXECUTIVE OFFICER FOR MULTI-COUNTY AGENCIES
The proposed Conflict-of-Interest Code specifically enumerates each of the
positions within the agency which involve the making or participation in the making of
decisions which may foreseeably have a material financial effect on any financial
interest. The agency has satisfied all of the requirements of Title 2, Division 6 of the
California Code of Regulations §18750.1 preliminary to approval of the proposed code.
__________________ _____________________________ Date Signature of Chief Executive Officer
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Agenda Item No. G2 Executive Board Meeting
Meeting Date: August 19, 2010
Lake Arrowhead Community Services District – Notice Received ISSUE: The Program Administrators have received notice from Lake Arrowhead Community Services District that they intend to explore alternatives to CSRMA for their insurance, coverage and loss control needs. RECOMMENDATION: The Program Administrators recommend that the Executive Board discuss this issue. FISCAL IMPACT: Unknown at this time. BACKGROUND: Lake Arrowhead CSD has been a member of the JPA since 09/01/96 and is currently a member of the Pooled Liability, Workers’ Compensation, Primary Insurance and Property Programs. ATTACHMENTS: Lake Arrowhead CSD Notice of Non-Renewal
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Agenda Item No. G3 Executive Board Meeting
Meeting Date: August 19, 2010
CAJPA Accreditation 2010-13
ISSUE: CSRMA has been accredited by the California Association of Joint Powers Authorities (CAJPA) effective May 15, 2010 for another three years. Conditional Accreditation was received pending satisfaction of a requirement that duty to disclose conflicts language be added to the contracts with Alliant Insurance Services and with York Insurance Services, Inc. We have included the proposed language in the attachment to Item G.4. A copy of the draft Accreditation Report is included with the agenda packet for the Executive Board’s review. RECOMMENDATION: None. Information only. FISCAL IMPACT: None. Information only. BACKGROUND: The California Association of Joint Powers Authorities (CAJPA) Accreditation Program reviews the organizational structure and activities of a joint powers authority (JPA), comparing the JPA with standards adopted by the Association believed to be advantageous to the preservation and performance of the individual JPA and JPAs in California as a whole. ATTACHMENTS: 1) CAJPA Accreditation Report of CSRMA (Separate)
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Agenda Item No. G.4 Executive Board Meeting
Meeting Date: August 19, 2010
Program Administration, Insurance Brokerage & Risk Control Services Contract Renewal
ISSUE: At its last meeting the Executive Board approved the renewal of the Alliant Insurance contract for services. Left pending for administrative and legal review was potential updates to the form of the contract. RECOMMENDATION: Alliant and Legal Counsel recommend that the following substantive changes be made to the form of the agreement and as more fully depicted in the attachment and the contract be executed.
1. Addition of more detailed transparency and disclosure language.
2. Addition of specific Conflict of Interest language (CAJPA recommendation).
3. Add management of Loss Control Reimbursement Program(s).
4. Strike “Automobile Physical Damage Program” (not technically a CSRMA program). FISCAL IMPACT: None BACKGROUND: None ATTACHMENTS: Red Line Strikeout of proposed contract agreement.
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PROGRAM ADMINISTRATION, INSURANCE BROKERAGE
AND RISK CONTROL SERVICES CONTRACT
This Agreement, made and entered into effective on July 1, 2010, between CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY, hereinafter referred to as CSRMA, and ALLIANT INSURANCE SERVICES, Inc. hereinafter referred to as “Program Director.”
WITNESSETH
WHEREAS, this Agreement supersedes all previous agreements between CSRMA and the Program Director, and,
WHEREAS, CSRMA requires insurance brokerage, risk management and program administration services, and,
WHEREAS, the Program Director specializes in public entity risk management and program administration services, and,
WHEREAS, CSRMA desires to engage the Program Director to administer CSRMA’s programs.
NOW THEREFORE, the parties hereto, for and in consideration of the promises and covenants hereinafter contained to be kept and performed do agree as follows:
A. PROGRAM SERVICES
As directed by CSRMA’s Board of Directors and Executive Board, the Program Director agrees to provide JPA Administration Services as outlined in Attachment A, “Scope of Work, Program Administration, Insurance Brokerage and Risk Control Services”.
B. PERFORMANCE MEASURES
During each year of this Agreement, CSRMA agrees to evaluate the Program Director’s performance. The Performance Measures specified in Attachment D - “Performance Measures” will form the basis for the evaluation during the first year of the Agreement. In the subsequent two years, the Performance Measures will be either those in Attachment D or other criteria, which the parties may subsequently agree upon in writing. If the criteria are changed, this Agreement shall be amended accordingly in the manner indicated in Section K below.
C. COMPENSATION CSRMA shall pay annual compensation to Program Director for services rendered under this Agreement. Except as otherwise expressly provided in this Section C, the compensation payable during the first year of the three-year term of this Agreement shall be in accordance with the provisions of Attachment B (with any subsequent years listed as B.2. and B.3. respectively) to this Agreement. It is understood and agreed between the parties that the CSRMA Executive Board is only authorized to enter into contracts within budget limits set by the CSRMA Board of Directors and, therefore, compensation to the Program Director shall not be increased from the amount paid for the fiscal year ending June 2010 unless and until authorized by the CSRMA Board of Directors through its approval of the FY 2010-11 CSRMA Budget. For the
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remaining two years of this Agreement, the compensation shall be revised and agreed upon annually prior to the anniversary date and a written memorandum of that agreement shall be attached to this Agreement as an addendum in conformance with Section K below. It is agreed that any increase in the contract amount for the remaining two years will be tied to successful performance as evaluated pursuant to Section B. If at any time during this Agreement, new programs are developed and implemented, or with respect to the addition of new Members to the JPA, or new participation in new or existing CSRMA Programs, by existing Members of the JPA, Program Director’s compensation shall be adjusted in an equitable manner to reflect Program Director’s services for those programs.
1.
With respect to insurance and other coverage placed by Program Director acting as CSRMA’s insurance broker, and as a part of Program Director’s compensation under this Agreement, Program Director shall, to the extent it is legally entitled to do so, endeavor to collect commissions and placing fees from insurers and other coverage providers with whom Program Director places CSRMA’s insurance and/or other forms of coverage.
2.
All such commissions and placing fees paid to Program Director shall be disclosed by Program Director to CSRMA in a timely manner, including a description of how they are affected by CSRMA placements, and to the extent it its legally permissible to do so, the amounts of such commissions and placing fees shall be credited towards Program Director’s compensation payable by CSRMA under this Agreement.
3. For the purposes of this Agreement, the term “commissions and placing fees” refers to monetary consideration paid to Program Director by an insurer or coverage provider with respect to a specific placement of insurance and/or other forms of coverage with the insurer/coverage provider. The term does not
include:
a.
Payments made to Program Director or its affiliates with respect to the indirect consequences of the placement of insurance and/or other coverage on behalf of CSRMA such as, for example, contingent payments or allowances based on the overall levels of premiums for insurance/other coverage placed by Program Director with an insurer/coverage provider; or
b. Fees or charges paid by Program Director for its services in managing, administering and/or consulting with another joint exercise of powers agency or similar organization engaged in providing coverage notwithstanding that the organization provides coverage to CSRMA.
4. Transparency and Disclosure. During the time of this AGREEMENT,
PROGRAM DIRECTOR will annually disclose any commissions received by PROGRAM DIRECTOR or any affiliated company in connection with any insurance placements on behalf of CSRMA under the PROGRAM DIRECTOR’s “Transparency and Disclosure” policy, a copy of which is made available upon request. Pursuant to its policy, Alliant will conduct business in conformance with all applicable insurance regulations and in advancement of the best interests of its
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clients. In addition, Alliant’s conflict of interest policy precludes it from accepting any form of broker incentives that would result in business being placed with carriers in conflict with the interests of Alliant’s clients.
5.
Other Alliant Services. In addition to the COMPENSATION that PROGRAM DIRECTOR receives, its related entity, Alliant Specialty Insurance Services (“ASIS”) may receive compensation from PROGRAM DIRECTOR and/or a carrier for providing underwriting services. The financial impact of the compensation received by ASIS is a cost included in the premium. The amount of compensation to be received by ASIS will be disclosed in writing to CSRMA and is agreed to by CSRMA as part of the premium. Additionally, the related entities of Alliant Business Services (ABS) and/or Strategic HR may receive compensation from PROGRAM DIRECTOR and/or a carrier for providing designated, value-added services. Services contracted for by the CSRMA directly will be invoiced accordingly. Otherwise, services will be provided at the expense of PROGRAM DIRECTOR and/or the carrier.
D.
TAXES AND FEES, INDIRECT INCOME AND USE OF INTERMEDIARIES
1. Surplus Lines Fees and Taxes. In certain cases, placements made by the Program Director on behalf of CSRMA may require the payment of surplus lines assessments, taxes and/or fees to state regulators, boards or associations. Such assessments, taxes and/or fees will be charges to CSRMA and identified separately on invoices covering these placements. The Program Director shall not be responsible for the payment of any such fees, taxes or assessments except to the extent such taxes or fees have been collected by the Program Director from CSRMA.
2. Use of Intermediaries. When it is necessary or appropriate, Program Director may
utilize services of intermediaries to assist in marketing CSRMA’s programs. These intermediaries may be affiliates of Program Director or unrelated intermediaries. Compensation for the placement of insurance through intermediaries is not subject to the compensation provisions of this Agreement even though the intermediaries utilized by Program Director receive compensation based upon premiums paid by CSRMA. Affiliate relationships and details of compensation terms shall be disclosed in writing to the Executive Board
E. TERM
The term of this Agreement shall be for 36 months commencing July 1, 2010 and ending June 30, 2013.
F. OBLIGATIONS OF CSRMA The Board of Directors of CSRMA are responsible for directing the operations of CSRMA to assure proper management and financial solvency, including the establishment of underwriting and rating guidelines. CSRMA is responsible for its compliance with all applicable statutes and regulations. CSRMA should consult its own professionals regarding legal, financial auditing, tax and investment matters, which may arise in the formation and operation of CSRMA. CSRMA will reasonably cooperate with the Program Director in the performance of the
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Program Director’s brokerage, risk management and program administration duties by providing the Program Director, where available, reasonably complete and accurate information as to CSRMA’s loss experience risk exposures and any other pertinent information that the Program Director requests. CSRMA shall promptly review coverage documents concerning the Programs delivered by the Program Director for consistency with CSRMA’s specifications. CSRMA shall designate one or more officers or committees of CSRMA or an outside consultant to receive and provide significant intervening substantive review, and independently evaluate any and all recommendations or proposals made to CSRMA by the Program Director which are significant, substantive in nature and under which any benefit shall accrue to the Program Director or the Program Director’s affiliates a Material Financial Impact, under the terms of this Agreement. Such committees and/or outside consultants shall then provide their own recommendations concerning such matters to the Executive Board of CSRMA, having ultimate decision making authority on such matters.
G. NON-ASSIGNABILITY
Both parties hereto recognize that this Agreement is one for personal services and cannot be assigned in whole or in part by either party without the prior written consent of the other party. Prior to a change in Account Officers assigned to provide service to CSRMA in program administration, the Program Director shall endeavor to provide 45 days written notice. CSRMA shall retain the right to reject the assignment of new account officers.
H CONFLICT OF INTEREST
Program Director hereby declares that to the best of its knowledge no conflict of interest presently exists by Program Director, or any of its employees, with regard to CSRMA or any of its member entities. Program Director performs services for other joint powers insurance authorities that are similar to those set forth in this Agreement with CSRMA; however, no conflict of interest is known to Program Director in the provision of these services as respects to CSRMA. Program Director hereby further declares that should a conflict of interest, real or apparent, arise during the term of this Agreement with Program Director, or any of its employees, as regards CSRMA or any of its member entities, Program Director shall immediately make such conflict of interest known to CSRMA.
IH. NOTICES
All notices hereunder shall be given in writing and mailed, postage prepaid, be certified mail, addressed as follows:
TO CSRMA: Secretary of CSRMA Mr. George Emerson Goleta Sanitary District
245 Moreton Bay Lane, #5 Goleta, CA 93117
TO PROGRAM DIRECTOR: Mr. Dennis Mulqueeney Senior Vice President ALLIANT INSURANCE SERVICES, INC. 100 Pine Street, Suite 1100 San Francisco, CA 94111
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TO CSRMA GENERAL COUNSEL: Mr. A. Byrne Conley Gibbons & Conley 1333 N. California Blvd., Suite 110 Walnut Creek, CA 94596 JI. COST AND ATTORNEY FEES
The prevailing party in any proceeding brought to enforce this Agreement or arising out of this Agreement may recover its reasonable costs and attorney’s fees expended in connection with such action from the other party to such action.
This Agreement sets forth the full and final understanding of the parties as respects the matters described herein, and supersedes any and all prior Agreements and understandings between them, whether written or oral with respect to the subject matter hereof. This Agreement may be amended but then only in a written addendum to this Agreement executed by the parties. This Agreement shall be governed by the law of the State of California. If any provision of this Agreement is rendered invalid or unenforceable by judicial, legislative or administrative action the remaining provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated. Nothing in this Agreement is intended or shall be construed to confer upon or to give any person, firm or corporation other than the parties hereto, any rights or remedies by reason of this Agreement.
LK. ARBITRATION
In the event that any dispute arises between the parties to this Agreement with respect to the interpretation of this Agreement, the rights of any party hereunder, or any other matter arising from, in connection with or relating to this Agreement, whether such dispute arises before or after the termination of this Agreement, such dispute shall be submitted to final and binding arbitration upon the mutual Agreement of both of the parties. Such arbitration shall be conducted under the auspices of, and in accordance with the procedures and rules of the American Arbitration Association. Any hearings held in the course of any such arbitration shall be held in the City of San Francisco, California unless the parties mutually agree in writing to another location.
ML. AUTHORITY
CSRMA and the Program Director each represent and warrant to the other that: (i) the execution and delivery of this Agreement and their performance hereunder have been duly authorized and approved; and (ii) no approval or consent of another person or entity is required for the lawful execution, delivery and performance of this Agreement.
NM. TERMINATION OF CONTRACT OR REDUCTION IN SCOPE OF SERVICES CSRMA
or the Program Director can terminate this Agreement at any time by giving the other party 90 days written notice. It is the intent of CSRMA to provide adequate notice to the Program Director if CSRMA should desire to administer its programs, or some of them, with its own staff.
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1. Should this Agreement be terminated pursuant to this section prior to the end of this Agreement’s term, the Program Director shall be entitled to retain as earned compensation for its program services a prorated portion of the fees paid by CSRMA for each member agency in certain of CSRMA’s programs, as follows: if termination is effective in the 1st quarter of the program year - 50% of such fees; if in the 2nd quarter of the program year 67.7% if in the 3rd quarter of the program year - 83.3%; and if in the 4th quarter of the program year - 100%. These percentages apply only to the per-agency fees and pooled deposit fees earned by the Program Director from the Pooled Liability Program and Workers’ Compensation Program. Fees and commissions charged by the Program Director for all other compensation shall be considered fully earned upon termination of the Agreement.
In the event of termination, Program Director shall promptly deliver to CSRMA all products, files, records, computations, quotations, studies, minutes, and other data and records, prepared or obtained in connection with this Agreement, which is the permanent property of CSRMA.
2. If CSRMA should decide to hire its own employees, CSRMA and Program Director will negotiate services and compensation for a training period. CSRMA shall continue the brokerage services provided by the Program Director for the duration of this Agreement.
ON. INDEMNIFICATION AND INSURANCE
Program Director agrees to indemnify, hold harmless, reimburse and defend the CSRMA at all times against any claim, costs, expense, liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon CSRMA and based upon any errors or omissions of Program Director, its agents or employees, with respect to the services provided by Program Director under this Agreement, provided that Program Director shall not be required to indemnify, hold harmless, reimburse and defend to the extent that the error or omission arises from the Program Directors’ reliance on information provided by CSRMA or from the Program Director following instructions from CSRMA. In the event that CSRMA tenders its defense in any such claim, etc., to Program Director, and Program Director accepts such tender, the defense of CSRMA shall be conducted by counsel selected and paid by Program Director.
Program Director shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Program Director, his agents, representatives, or employees.
CSRMA agrees to indemnify, hold harmless, reimburse and defend Program Director at all times against any claim, costs, expense, liability, obligation, loss or damage (including reasonable legal fees) of any nature, incurred by or imposed upon Program Director and based upon any errors or omissions of CSRMA, its agents or employees, with respect to the obligations of CSRMA under this Agreement, unless provided that CSRMA shall not be required to indemnify, hold harmless, reimburse and defend to the extent that the error or omission arises from CSRMA’s reliance on information provided by Program Director.
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Minimum Scope of Insurance Coverage shall be at least as broad as: 1. Insurance Services Office Commercial General Liability coverage (occurrence
Form CG 0001). 2. Insurance Services Office Form Number CA 0001 covering Automobile Liability,
Code 1 (any auto). 3. Workers’ Compensation insurance as required by the State of California and
Employer’s Liability Insurance. 4. Errors and Omissions Liability insurance appropriate to the consultant’s
profession. Architects’ and engineers’ coverage is to be endorsed to include contractual liability.
Minimum Limits of Insurance Program Director shall maintain limits no less than: 1. General Liability: $1,000,000 per occurrence for bodily injury,
personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and
property damage. 3. Employer’s Liability: $1,000,000 per accident for bodily injury or
disease. 4. Errors and Omissions Liability: $1,000,000 per occurrence.
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Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by CSRMA.
At the option of CSRMA, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects CSRMA, its officers, officials, employees and volunteers; or the Program Director shall provide a financial guarantee satisfactory to CSRMA guaranteeing payment of losses and related investigations, claim administration and defense expenses.
Other Insurance Provisions The commercial general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions: 1. CSRMA, its officers, officials, employees and volunteers are to be covered as
insureds as respects: liability arising out of work or operations performed by or on behalf of the Program Director; or automobiles owned, leased, hired or borrowed by the Program Director.
2. For any claims related to this project, the Program Director’s insurance coverage
shall be primary insurance as respects CSRMA, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by CSRMA, its officers, officials, employees or volunteers shall be excess of the Program Director’s insurance and shall not contribute with it.
3. Each insurance policy required by this clause shall be endorsed to state that
coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to CSRMA.
4. Coverage shall not extend to any indemnity coverage for the active negligence of
the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the Civil Code.
Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than
A:VII, unless otherwise acceptable to CSRMA. Verification of Coverage Program Director shall furnish CSRMA with original certificates and amendatory
endorsements effecting coverage required by this clause. The endorsements should be on forms provided by CSRMA or on other than CSRMA’s forms provided those endorsements conform to CSRMA requirements. All certificates and endorsements are to be received and approved by CSRMA before work commences. CSRMA reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
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PO. OWNERSHIP OF RECORDS CLAUSE
All records, whether written or stored electronically, of the administration, operation and activities of the CSRMA shall be the property of the CSRMA, and Program Director shall either:
1. During the term of this Agreement, provide reasonable access to the records or, as
requested, deliver all or any of the records to CSRMA; and 2. Upon termination of this Agreement, promptly deliver all of the records to
CSRMA, and from that time forward, Program Director shall no longer be required to maintain CSRMA’s records.
QP.
KEY PERSONNEL
CSRMA has a primary interest in maintaining the services of certain individuals. As such, Program Director agrees that the “Key Personnel” listed in Attachment C will be primarily responsible for the provision of services to CSRMA. The Program Director shall inform CSRMA immediately if any of the “Key Personnel” either tender their resignation, are terminated, or if their work responsibilities change in a manner that would preclude them from providing the level of services customarily expected by CSRMA. If any of the “Key Personnel” resign, are terminated, or have a change in responsibilities, CSRMA will have the right to interview and approve replacement personnel. Approval of replacement personnel will not be unreasonably withheld by CSRMA.
RQ.
CONFIDENTIALITY
The Program Administrator agrees to keep in confidence CSRMA member data, except as dissemination of such data is needed to perform the desired services under this contract, or as may be required for disclosure to governmental agencies having the right to obtain such data and/or the power (as by subpoena) to obtain such data.
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IN WITNESS WHEREOF, CSRMA has caused this contract to be executed by its President and Program Director has caused the same to be executed by its duly authorized officer, all as of the day and year first above written.
CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY
By __________________________________
Title ________________________________
Date _____________________________
ALLIANT INSURANCE SERVICES, INC.
By _________________________________
Title _______________________________
Date _______________________________
Reviewed and Approved as to form by CSRMA Legal Counsel By: _________________________________________ A. Byrne Conley
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ATTACHMENT A
SCOPE OF WORK PROGRAM ADMINISTRATION, INSURANCE BROKERAGE AND RISK CONTROL SERVICES
I. Program Administration Services
1. Act as “key contact” for all CSRMA members.
Act upon request as a liaison for communications among or between all parties involved in the Programs including CSRMA, its participating Members, insurance carriers and others;
2.
Provide to the members ongoing review of coverages provided by both insurance carriers and CSRMA programs.
3.
Work with CSRMA’s committees and coordinate the activities of the committees.
4.
Issue, modify as directed, and maintain memorandum of coverage forms and policy forms.
5. Develop, issue, sign, and maintain certificates of coverage/insurance on behalf of CSRMA.
Deliver binders and other evidences of insurance within ten (10) calendar days after the placement of any insurance under the Programs to be effective until such times as the policy or policies for the placement are received by CSRMA from the insurance carriers. Such binders shall be signed by an authorized agent or employee of the insurance carrier. The Program Director shall use best efforts to secure a correct policy or policies within ninety (90) days of placement of any insurance under the Programs. The Program Director shall not be responsible for the failure of Members of CSRMA to make premium payments;
6.
Provide ongoing information on the status of the insurance industry and public entity risk management issues.
7.
Prepare agendas, arrange for meetings and other general administration functions.
8.
Record and distribute minutes of meetings to meeting participants.
9.
Maintain the program manuals for each CSRMA program.
10.
Act as a central “clearing house” for dissemination of information.
11.
Assist members in use of the Insurance Requirements in Contracts Manual.
12. Coordinate for CSRMA the claims administration services that are provided to CSRMA by third party administrators.
Assist CSRMA, and where applicable, CSRMA’s third party administrator, in settlement issues. However, it is understood and agreed that the Program Director is not providing claims management services under this Agreement;
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13.
Monitor loss runs of CSRMA programs.
14.
Attend Executive Board, Committee and Board of Director meetings.
15.
Assist in development of new programs, but limited to Program Director’s expertise and resources.
16.
Prepare a semiannual report of services documenting time spent by program and all staff members assigned to CSRMA.
17.
Meet at members’ sites as necessary.
18.
Produce an annual operating report and program bulletins throughout the year.
19.
Provide general accounting services as established by the Executive Board in accordance with Generally Accepted Accounting Principals, and Governmental Accounting Standard Board requirements.
20.
Maintain and store records.
21.
Plan and execute all aspects of CSRMA’s annual Long-Range Planning Session under the direction of the Executive Board.
22.
Perform annually a trend analysis on CSRMA claims.
23.
Establish and maintain a system of checks and balances to ensure safekeeping of CSRMA’s physical assets.
24.
When directed by the Executive Board, perform a survey of the members of the Executive Board and Program Committees regarding the Program Directors’ performance as delineated in the “Performance Measures” attachment to this contract. If needed, the survey should be conducted in January for distribution at the annual Long-Range Planning Session.
25.
Other duties as assigned.
II. Insurance Brokerage Services
Perform all customary duties of an insurance broker for CSRMA’s Programs including without limitation: 1. Marketing the Programs to insurance carriers and/or other coverage providers;
a. Develop marketing specifications based upon an evaluation of CSRMA’s loss exposures and which address such exposures;
b. Evaluate quotations as to the adequacy of coverages, appropriate retention
levels, restrictions in coverage, the existence of warranties, concurrency of coverage, and suitability of forms;
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c. Evaluate the financial status and service capabilities of insurers making quotations of coverage under the Programs, based upon available data. CSRMA recognizes and agrees that Program Director is not responsible for any change in the financial condition of any insurance carrier or Joint Powers Authority after an insurance placement is made.
d. Make recommendations regarding the foregoing evaluations to the
Officer’s Committee, the Executive Board, an outside consultant and/or to a designated Committee as directed by CSRMA for substantive review.
e. Assist CSRMA and its members in claim settlement negotiations with insurance carriers who may provide coverage to CSRMA and its members.
III. Risk Control Services
Excepting certain administrative and clerical activities, the person designated in Attachment C to this agreement as the CSRMA Risk Control Advisor will perform this scope of work. It is expected that this scope will be modified annually.
l. Perform a minimum of 15 member loss control audits annually and issue the subsequent report within 30 days
2. Write and distribute a minimum of 6 Safety Bulletins annually 3. Perform a monthly review and maintenance of the Risk Control portion of the
CSRMA web site 4. Provide member employment practices hotline service via phone and email 5. Provide workers' compensation and general liability loss analysis reports at least
annually. 6. Manage the CSRMA Safety Other budget to purchase risk control items that will
benefit CSRMA's risk control efforts 7. Manage the annual purchasing and ongoing maintenance of the CSRMA Video
Library 8. Implement and manage the CSRMA Safety Superstar awards program 9. Implement and manage the CSRMA Loss Control Program of the Year Award 10. Develop and distribute the Annual CSRMA Loss Control Calendar 11. Schedule, arrange and provide the following training seminars: a. Winter, Spring and Summer CASA/CSRMA Risk Management Seminars
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b. Spring Area Training at a minimum of 3 locations Statewide c. Fall Area Training at a minimum of 3 locations Statewide 12. Provide up to 6 training workshops at member locations on risk control topics,
excluding CalOSHA and CalEPA regulatory compliance, affecting CSRMA 13. Oversee the periodic update of the various CSRMA Risk Control manuals and
training programs 14. Attend CSRMA meetings as necessary or required by the Officers Committee 15. Provide up to 12 field and/or office ergonomic evaluations with written report 16. Oversee the distribution of the CSRMA Well Workplace monthly newsletter 17. Assist CSRMA with the development of risk control programs, initiatives and
trainings to address ongoing and new loss exposures as needed or directed 18. Oversee the implementation and benchmarking of the CSRMA Workers'
Compensation Claims Management Program 19. Oversee the development, distribution and maintenance of the CSRMA Job
Description Bank 20. Provide CSRMA with research and analysis of various risk control topics
affecting CSRMA as needed or directed 21. Maintain a library of sample risk control materials for distribution to CSRMA as
requested 22. Prepare agenda items for the various CSRMA meetings, as needed 23. Communicate on a regular basis with the CSRMA Program Administrator’s to
facilitate the delivery of risk control services to CSRMA 24. Prepare an annual Risk Control Workplan for presentation to the CSRMA
Executive Board at their annual Long Range Planning meeting 25. Manage any member Loss Control Reimbursement Programs authorized by the
Executive Board.
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ATTACHMENT B
COMPENSATION TO PROGRAM ADMINISTRATION, INSURANCE BROKERAGE AND RISK CONTROL SERVICES CONTRACT
Effective July 1, 2010 to July 1, 2011, as annual compensation to the Program Director for the services rendered hereunder, the Program Director may collect the compensation set forth below. For the purposes of this Agreement, programs with anniversary dates subsequent to June 30, 2009 shall be subject to the compensation described below.
POOLED LIABILITY PROGRAM
The Program Director shall be paid a fee of $ 568,034 to
provide services to the existing members of the Pooled Liability Program. This fee shall be offset to the extent commissions are paid to Program Director by insurers for placement of insurance. For any new member joining the Pooled Liability Program during the annual period, the Program Director shall be paid 10% of the new member’s total program cost.
WORKERS’ COMPENSATION PROGRAM
The Program Director shall be paid a fee of $ 357,375
to provide services to the existing members of the Workers’ Compensation Program. This fee shall be offset to the extent commissions are paid to Program Director by insurers for placement of insurance. For any new member joining the Workers’ Compensation Program during the annual period, the Program Director shall be paid 10% of the new member’s total program cost.
PRIMARY INSURANCE PROGRAM
The Program Director shall be paid a fee of $139,676
to provide services to the existing members of the Primary Insurance Program. This fee shall be offset to the extent commissions are paid to Program Director by insurers for placement of insurance. For any new member joining the Primary Insurance Program during the annual period, the Program Director shall be paid 25% of the new member’s total program cost.
PROPERTY INSURANCE PROGRAM
The Program Director shall be paid a fee of $131,517
to provide services to the existing members of the Property Insurance Program. This fee shall be offset to the extent commissions are paid to Program Director by insurers for placement of insurance. For any new member joining the Property Insurance Program during the annual period, the Program Director shall be paid 15% of the new member’s total program cost.
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ATTACHMENT C PRIMARY ACCOUNT SERVICE TEAM Dennis Mulqueeney, Program Administration Seth Cole, Insurance Services David Patzer, Risk Control Advisor
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ATTACHMENT D CSRMA PROGRAM DIRECTOR PERFORMANCE STANDARDS
July 1, 2010 to July 1, 2011
If the Executive Board amends or adjusts Attachment A- Scope of Work, judgment on the performance of these standards will take into consideration such amendment or adjustment.
A. JPA ADMINISTRATION SERVICES
1. Produce and distribute to the membership Annual Operating Report within 60 days of calendar year end.
2. Produce a Proposed Annual Operating Budget not later than the Board of Director’s
regularly scheduled Spring Board meeting. 3. Produce an annual Independent Financial Report in compliance with all applicable
statutes and professional standards that reflects an unqualified opinion by the independent auditor, no material weaknesses, and implementation of any Management Letter items within 30 days of report issuance.
4. Cooperate fully with Executive Board in any substantive review process of the contract
between CSRMA and Alliant Insurance Services. Judgement of the degree of performance of this item is left to the discretion of the Executive Board.
5. Present Budget Performance Reports to the CSRMA Board of Directors not less than
three (3) times each fiscal year. 6. Report accomplishment on these Performance Standards to the CSRMA Board of
Directors at their meeting in April/May. 7. Distribute 90% of Executive Board, Board of Directors and Committee Agendas,
including all supplemental information required for the board or committee to effectively conduct its meeting, not less than seven (7) days prior to the meeting.
8. Provide for the Executive Board’s annual review of each third party administration
contract. 9. Contract with a third-party actuary to conduct an actuarial study of at least one (1) of the
pooled programs annually. 10. Include a current update of the Long-Range Plan Action Items at each regularly scheduled
Executive Board Meeting. Make progress on each item with no undue delays in implementation of the goals of the Executive Board. Determination of performance on this item is left to the discretion of the Executive Board.
11. Issue accurate Pooled Program Memorandum of Coverage document(s) within 60 days of renewal or amendment. Insurance policies may be transmitted under separate cover, but are to be issued no later than 60 days from receipt.
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B. BROKERAGE SERVICES
1. Issue accurate Group Purchased Commercial Insurance Policy Forms within 30 of receipt from insurance carriers.
2. Recommend Excess Liability, Excess Workers’ Compensation Insurance or coverage
placement with supporting analyses customary in the profession to Executive Board not later than the last regularly scheduled Executive Board meeting prior to the renewal of each Program.
3. Recommend Property Insurance placement with supporting analyses customary in the
profession to Executive Board not later than the last regularly scheduled meeting prior to the renewal of the Program.
4. Recommend Auto Physical Damage Excess Liability placement with supporting analyses
customary in the profession to Executive Board not later than the last regularly scheduled meeting prior to the renewal of the Program
C. LOSS CONTROL SERVICES
1. Perform not less than 15 member loss control audits annually; issue resulting reports within 30 days.
2. Attend, or be available to participate in, CSRMA meetings as necessary or required by the
Officers Committee. 3. Produce and distribute to membership not less than 6 CSRMA Safety Bulletins annually. 4. Produce and distribute to the Board of Directors Quarterly Pooled Liability Program and
Pooled Workers Compensation Program Loss Analyses. 5. Evaluate and award annual CSRMA Loss Control recognition and award programs. 6. Provide the following Loss Control and Safety Training:
a. Winter, Spring and Summer CASA/CSRMA Risk Management Seminars
b. Spring Area Training at three (3) locations including sessions in both northern and southern California
c. Fall Area Training at three (3) locations including sessions in both northern and southern
California
d. Not less than six (6) training workshops at member locations on risk control topics important to reduction of liability, property, automobile and workers compensation claims by CSRMA members.
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Agenda Item No. H1 Executive Board Meeting
Meeting Date: August 19, 2010
Pooled Liability Program
Be Sewer Smart Sponsorship ISSUE: ABAG PLAN has requested that CSRMA sponsor the 2010 Be Sewer Smart Summit. Last year, CSRMA sponsored the 2009 Be Sewer Smart Summit at the “Gold” level. RECOMMENDATION: The Program Administrators recommend that the Executive Board discuss this item and consider sponsoring the 2010 Be Sewer Smart Summit at the “Gold” level ($2,500). FISCAL IMPACT: There are sufficient funds in the General Contingency Budget line item to cover the cost of sponsoring the Summit. BACKGROUND: ABAG PLAN initiated the Be Sewer Smart program (www.sewersmart.org) to educate the public on how backflows can be prevented. ATTACHMENTS: Request for Sponsorship Be Sewer Smart Summit 2010.
Seth Cole Assistant JPA Manager California Sanitation Risk Management Authority It’s that time of year again when ABAG PLAN launches its Sewer Smart Summit, bringing together operators of sanitary districts, Public Works Directors, City Engineers, and others to learn about new regulations, emergency response, best practices and strategies for preventing backups and backflows and achieving their districts’ operational and business goals. At this same time, ABAG will promote its two pronged public education campaign – for operators and for home owners. We hope that you will participate in our 2010 Sponsorship Program and gain some recognition for your organization. What follows is a listing of the different sponsorship levels and an application to become a sponsor. Join our team and gain exposure to our summit audience and the media. I look forward to forging a partnership with you that will benefit all of us. Thanks for your support! Mary Lou Mary Lou Thiercof Program Director, Be Sewer Smart Summit 510-336-1047
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ANNUAL SEWERSMART SPONSORSHIPS
Here’s how you can participate in the Be Sewer Smart Summit & Public Education Campaign
Platinum Sponsorship – $5,000 What you receive:
• Listing as Presenting Sponsor o the 2010 Sewer Smart Summit • Media Exposure- priority recognition in all promotional news releases, printed collateral
materials • Banner display at the Summit & future press conferences (supplied by you before event) • Exhibit Table at the Summit • Inclusion of materials in Summit packet • Official Partner of the Sewer Smart Public Education Campaign w/website link and
inclusion on future outreach materials • 5,000 of BPD educational brochures
Gold Sponsorship – $2,500 What you receive:
• Listing as Public Education Sponsor • Media Exposure- recognition in promotional news releases and web • Banner display at the Summit (supplied by you before event) • Table at the Summit & Reception • Inclusion of materials in Summit packet • Official Partner of the Sewer Smart Public Education Campaign
Silver Sponsor – $1,500 What you receive:
• Media Exposure- recognition in promotional news releases, printed collateral materials • Banner display at the Summit (supplied by you prior) • Table at the Summit & Reception • Official Partner of the Sewer Smart Public Education Campaign
Bronze Sponsor – $1,000 What you receive:
• Banner display at the Summit (supplied by you prior) • Table at the Summit & Reception • Official Partner of the Sewer Smart Public Education Campaign
You can also register for the event at: www.sewersmart.org
This is a great highly visible way to be recognized for your contribution to the public education campaign of the Be Sewer Smart Program. To become a sponsor, complete the Sponsorship Application and contact: Mary Lou Thiercof at 510-336-1047 (fax at 510 336 1049) or [email protected].
Sewer Smart Sponsors Platinum Sponsorship $5,000 Gold Sponsorship $2,500 Silver Sponsor ship $1,500 Bronze Sponsor ship $1,000 Name:_________________________________________________________________ Title: __________________________________________________________________ Company:______________________________________________________________ Address: _______________________________________________________________ ______________________________________________________________________ City:________________________________________ State:_______ Zip:___________ Email: _________________________________________________________________ Please include this form and mail it to: Gertruda Luermann ABAG PLAN Corporation. 101 8th Street Oakland, CA 94607 Make your check payable to: ABAG PLAN Corporation Thank you for supporting Be Sewer Smart 2010!
Pooled Liability Program CSRMA Employee Driving Standards Policy & Procedure
ISSUE: The Pooled Liability Program Policy & Procedure No. 3-L differs from the most recent Department of Motor Vehicles Violation Point Assessment and Point Counts. The differences between CSRMA’s Minimum Eligibility Standards and the DMV’s Violation Point Assessment is shown in the Background section below. The most recent DMV Point Count is attached for the Executive Board’s review. RECOMMENDATION: The Pooled Liability Committee recommends that the Executive Board recommend to the Board of Directors that the Violation Point Count be updated to match the DMV’s Violation Point Count by linking the Policy & Procedure to the DWV website. This would ensure that the Point Count on the Policy & Procedure is always in sync with the DMV Point Count. FISCAL IMPACT: None. BACKGROUND: The Pooled Liability Program Policy & Procedure No. 3-L addresses Employee Driving Standards for program members and is aimed at reducing losses related to vehicle operation. The differences between CSRMA’s Minimum Eligibility Standards and the DMV’s Violation Point Assessment for point violations in a given time frame and the related consequences is shown in the below table. The Committee reviewed the differences noted below and felt that the Policy & Procedure achieved CSRMA’s goal of reducing losses related to vehicle operation.
Point Accumulation
CSRMA P&P 3-L
DMV Violation Point Assessment
4 Points
3 Years
(Warning Status)
12 Months
(Driver suspended/probation/license revoked)
6 Points
3 Years
(Driver Excluded from Program)
24 Months
(Driver suspended/probation/license revoked)
8 Points
Not addressed in the P&P
36 Months
(Driver suspended/probation/license revoked)
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ATTACHMENTS: 1. Pooled Liability Program Policy & Procedure No. 3-L 2. DMV Violation Point Assessment 3. DMV Vehicle Code Violation Point Counts
CSRMA POLICY & PROCEDURE MEMORANDUM #3-L Subject: Employee Driving Standards Effective: December 31, 1988 Revised May 11, 1990 January 16, 1992 August 11, 2006 Issue: This policy and procedure addresses necessary measures aimed at reducing losses related to vehicle operation. Discussion: Employees whose duties necessitate driving vehicles in the course of employment need to maintain certain acceptable standards. The privilege of driving is granted through the issuance of a license by the Department of Motor Vehicles. Certain proficiencies and physical requirements must be proven prior to the granting of such license. Failure to meet these requirements results in revocation or non-issuance of such a state license. In addition, insurance companies have established certain standards for drivers in order to meet insurability requirements at standard premium rates. Drivers not meeting these underwriting standards must, if possible, be placed in other more expensive plans such as the Assigned Risk Plan. Because of employees' bad driving records, a financial burden may be placed on the agency in the form of increased insurance costs. Policy: Each CSRMA liability program member agency shall institute and enforce the employee driving eligibility standards as set forth in the Policy & Procedure. Employees failing to meet these standards shall be excluded from coverage under the CSRMA pooled layer auto liability coverage. Any agency which fails to adhere to these standards shall be subject to having its participation in the liability program terminated, pursuant to Section 23 of the Restated Joint Exercise of Powers Agreement for CSRMA (8/9/91). In addition, coverage is excluded for employees who drive without a valid driver’s license, or who drive with six or more accumulated DMV violation points incurred in the past three years (unless a waiver is received as described below). Coverage is also excluded for member districts who knowingly allow such employees to operate vehicles in the course of employment, or who fail to enroll mandated employees in the pull notice program and as a result, permit such an employee to operate a vehicle in the course of employment.
Procedure: The following steps shall be taken to enforce the policy: 1. All member agencies shall enroll in the Department of Motor Vehicles' Driver
Record Information Program, as described in the information attached to this Policy & Procedure.
2. Employees who are employed to drive any vehicle identified in Vehicle Code
section 1808.1(k) shall be placed in the DMV's pull-notice program upon hire, unless the employee is a "casual driver" as defined in vehicle Code section 1808.1(j). It is further recommended that the agency request all existing and prospective employees who do now or will drive “frequently” on the agency's behalf during employment sign a written waiver allowing such existing or prospective employees to be enrolled in the pull-notice program, and if such waiver is obtained, to enroll the employees in the pull-notice program.
3. All employees shall be informed of the policy guidelines and standards. It is
suggested each employee be required to read the policy standards and to have acknowledged the reading of same by signing a statement attesting to that fact. Such acknowledgment shall be placed in the employee's personnel file.
4. Job descriptions, or other formally adopted policies of the agency, should state that
employees must continue to meet the established driving standards as a condition of employment for that position. Decisions regarding employment or assignment of non-qualifying employees are the purview of member agency management.
5. Driving standards shall be enforced consistently and fairly among ALL employees
working in classifications where driving is required. 6. Names of employees not meeting the standards shall be provided to the Program
Director within 15 calendar days upon the agency's receipt of the Department of Motor Vehicles' employers notification of point assignment, resulting in an employee's failure to comply with the standards.
7. The Program Director shall acknowledge exclusion from coverage of such
employee by the issuance of an amendatory endorsement. The employee shall be considered uninsured as of the date of such an endorsement from the Program Director.
8. The Program Director shall be notified upon the agency's determination when an
employee's status has changed in such a manner as to comply with CSRMA's minimum requirements.
9. The Program Director shall, upon receipt of such notice as described in #7 above, issue an endorsement reinstituting coverage for such employee. The effective date of coverage shall be determined by the Program Director in accordance with the minimum eligibility standards.
Minimum Eligibility Standards: 1. Employees must possess a valid driver's license to legally operate the class of
vehicle(s) they operate in their employment. 2. Employees accumulating four violation points, as valued and enumerated on the
attached version of the Department of Motor Vehicles' Negligent Operator Count Sheet DL551 (Rev. 07/94), within the last three years, shall be considered in a "warning status" and shall be required to attend a Defensive Driving class. The nature and duration of such class shall be left to the agency's discretion. Upon completion of the training, the member agency shall provide the Program Director with either a copy of the Certificate of Completion or a written description of the duration and contents of the training course attended.
3. Employees accumulating six violation points, as valued and enumerated on the
Department of Motor Vehicles' Negligent Operator Count Sheet (attached), within the last three years, shall be excluded from the pooled layer of Automobile Liability coverage.
4. The conviction date as determined by the DMV shall be considered as the starting
date for the three-year period discussed in #2 and #3 above. 5. The provisions of #2 and #3 above shall apply regardless of whether the driving
which resulted in acquiring the violation points was or was not in the course of employment.
New Employees: The agency must obtain a DMV Report of Public Record for all prospective employees who are subject to the pull-notice program under Vehicle Code section 1808.1(a). It is recommended that the agency additionally request applicants for positions requiring driving on the agency's behalf who do not fall within the pull-notice program to provide a current DMV Report of Public Record prior to employment. Waivers: An agency may request a waiver from the strict application of the limitations contained in Item 3 of the Minimum Eligibility Standards. The request shall be in writing, addressed
to the CSRMA Liability Program Committee, which shall promptly hear and consider the request. The request may be granted only upon a showing that exceptional circumstances warrant granting a waiver. If a waiver is granted, the committee may condition the grant upon such conditions as it deems appropriate, including participation in driver education or other programs aimed at enhancing driver safety. The decision whether to grant, deny or grant subject to conditions shall be addressed to the sound discretion of the committee, which may consider relevant factors, including the potential exposure of the CSRMA Liability Program for claims based on unsafe driving. The applicant agency or any member of the CSRMA Liability Program may appeal the decision of the committee to the Executive Board. The notice of an appeal shall be filed with the Executive Board within 30 days from the date of the committee's decision, and the appeal shall be scheduled for and heard at the next regularly scheduled meeting of the Executive Board. The applicant agency, or any member of the CSRMA Liability Program, may appeal the decision of the Executive Board to the Board of Directors. The notice of an appeal shall be filed with the Board of Directors within 30 days from the date of the Executive Board's decision, and the appeal shall be scheduled for and heard at the next regularly scheduled meeting of the Board of Directors. The decision of the Board of Directors shall be final. During the pendency of the waiver application proceedings, the agency employee for whom the waiver is sought shall be excluded from coverage under the CSRMA pooled auto liability program, unless the agency is notified in writing to the contrary by the Officers Committee.
Other Common California Code Violations Used In Negligent Operator Count Section Code Violation Points 49307 or 12059 Education Disobedience to school safety patrol 1 191.5a, 192c1-192c4, 192.3c, 192.3d Penal Vehicular manslaughter with gross
negligence 2
192c, 192.3, 192.3a, 192.3b Penal Vehicular manslaughter without gross
negligence 1
27176 Streets and highways Speeding on Golden Gate Bridge 1 One Point Count Out of State Violations Section Violation Section Violation 01 Speed/too fast or over speed limit 34 Entering/exiting from thoroughfare 03 Speed/too slow or failure to turn out 40 Illegally modified vehicle 04 Passing/illegal, improper or unsafe 45 Explosives transportation 05 Following too close 51 Equipment/unsafe, illegal or defective 06 Failure to yield right-of-way 58 Driving while impaired 07 Illegal/unsafe use or change of lanes 61 Child passenger seat restraint 08 Tuirns/illegal or unsafe 67 Defective headlights 09 Signaling/improper or no signal 69 Following emergency vehicle unlawfully 10 Failure to obey traffic control device 70 Using vehicle for felony/aiding or abetting 11 Crossing double lines/markers/dividers 72 Erratic driving/suddenly changing speeds
12 Wrong way on one-way street 73 Fleeing scene or evading arrest by turning lights off when lights required
13 Brakes 74 Unsafe operation of a motor vehicle 14 Lights 75 Driving off road/on shoulder/on sidewalk
21 Violation of restricted license 77 No required equipment/using prohibited equipment
27 Starting or backing/illegal or unsafe 87 Felony controlled substance/commercial vehicle
28 Driving in a prohibited area 88 Speeding 15 mph plus/commercial vehicle 30 Disobedience of lawful order 91 Illegal lane change/commercial vehicle 31 Towing/improper, unsafe or illegal 92 Following too closely/commercial vehicle 32 Obstructing driver's view or interfering 93 Fatal accident violation/commercial vehicle 33 Unlawful riding on motor vehicle Two Point Count Out of State Violations Section Violation Section Violation 02 Speed contest/aiding or abetting 38 DUI/dangerous drugs not narcotics 15 Reckless driving 46 Manslaughter without gross negligence 16 Reckless driving/injury 47 Manslaughter with gross negligence
20 Driving while suspended or revoked 85 Hit and run/commercial vehicle 37 DUI/narcotics 89-90 Reckless driving/commercial vehicle Code of Federal Regulations Violations Section Violation Points 36423 or 36FR46 DUI/alcoholic beverage or any drug 2
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Common California Vehicle Code Violations Used In Negligent Operator Counts
Violation Point Assessment
Violation points are assigned to Vehicle Code sections and any other code section, or city or county ordinance, involving the safe operation of a motor vehicle. Any violation occurring as a pedestrian or a bicyclist has no point assigned. The department may suspend and place on probation, or revoke, the driving privilege of a negligent operator.
Per Vehicle Code section 12810.5a, a Class C negligent operator has
• 4 or more points in 12 months,
• 6 in 24 months, or
• 8 in 36 months.
Although a Class A or B driver without a special certificate may be allowed 2 additional points, a violation received in a commercial vehicle carries 1 1/2 times the point count normally assessed (12810.5b VC). A minor, under 18 years of age, may receive a 30-day restriction for 2 points in 12 months, or be suspended for 3 points in 12 months (12814.6 VC).
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One Point Count California Vehicle Code Violations
Section Violation 2800 Disobedience to traffic officer 2800.1 Evading peace officer 2801 Disobedience to fire official 2803, 2803a, 2803b, 2803c Unsafe vehicle load 2815 Disregarding non-student crossing guard 2816 Youth bus/children crossing highway 2817 Disregarding funeral escort officer 2818 Crossing safety flares/cones 14601.5 Driving, suspended/revoked for refusing test 14603 Violation of license restrictions 21100.3 Disregarding traffic officer's directions 21209, 21209a Driving in bicycle lane 21367, 21367a, 21367b, 21367c Disobedience to traffic signs/controller 21451, 21451a, 21451b Illegal movement/green light/arrow 21452, 21452a Illegal movement/yellow light/arrow 21453, 21453a, 21453b, 21453c Illegal movement/red/light/arrow 21454, 21454a - d, 21455 Traffic signals 21457, 21457a, 21457b Disobedience to flashing signals 21460a, 21460b Double lines/one broken line 21460.5c Use of two-way left turn lane 21461, 21461a, 21462 Disobedience to traffic control device 21650, 21650a - f Keep right 21651, 21651a Crossing divided highway 21652 Entering highway from service road 21654, 21654a, 21654b, 21655, 21655b Lane use/slow moving vehicle 21655.8 High-occupancy vehicle lane/entering/exiting 21656 - 21662, 21662a, 21662b Improper lane use 21663 Driving on sidewalk 21664 Freeway ramp/entering/exiting 21700 Load obstructing driver's view 21701 Interfering with driver's control of vehicle 21702, 21702a, 21702b Driving hours limitation 21703, 21704, 21704a, 21705, 21706 Following too closely 21707 Driving in fire area 21709 Driving in safety zone 21711 Towed vehicle swerving 21712, 21712a, 21712d, 21712f, 21715, 21715a, 21715b Unlawful riding/towing
21717 Turning across bicycle lane
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21750 - 21757, 21758, 21759 Illegal passing 21800 - 21804, 21804a, 21804b Right-of-way 21805, 21805b Yielding right-of-way to horseback rider 21806, 21806a Yielding right-of-way to emergency vehicle 21807 Unsafe operation of emergency vehicle 21950, 21950a, 21951, 21952 Yielding right-of-way to pedestrian 21954, 21954b Due care for pedestrian on roadway 21960a Prohibited use of freeway 21963 Yielding right-of-way to blind pedestrian 22100 - 22105 Turning and U-turns 22106 Unsafe starting/backing of vehicle 22107 - 22111, 22111a, 22111b, 22111c Signaling turns and stops 22112, 22112a School bus signaling 22348, 22348a, 22348c Speed/use of designated lanes 22349, 22349.5 Maximum speed 22350, 22351, 22352, 22352a, 22352b Basic/prima facie speed limit 22354, 22355 Exceeding posted/freeway speed limit 22356, 22356b Maximum speed 70 mph 22357, 22358.4 Speed in excess of local limits 22359, 22360, 22361 Speed in excess of local limits 22362 Speed/construction zone 22363 Restricted speed/weather conditions 22364 Speed/traffic lanes 22400, 22400a, 22400b Driving too slow 22405, 22405a Speed/bridge/tunnel 22406, 22407 Maximum designated vehicle speed 22409, 22410 Speed/solid/metal tires 22413 Speed limit on grades 22450, 22451, 22452, 22452a, 22452b Stop required/railroad crossing 22454 Stop for school bus 23109, 23109b, 23109d Speed contest/aiding or abetting 23116, 23116a Transporting person in truck load space 23127 Driving on trails and paths 23220 Drinking while driving 23222, 23222a, 23222b Marijuana or open container/driving 23235 Ignition interlock verification 23244, 23244b Defeating ignition interlock device 23253 Disobedience to toll highway officer 23270, 23270a Unauthorized towing 23330, 23330c Width/load of vehicle at crossing 23336 Disobedience to sign/vehicle crossing
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24002, 24002a, 24002b Unsafe/unlawfully equipped vehicle 24004 Operation after notice by officer 24250 Lighting equipment 24409, 24409a, 24409b Failure to dim lights 24604 Lamps/flag for extended load 25103, 25103a, 25103b Lamps on projecting load 26301, 26302, 26302a, 26302b, 26302c Brakes 26303, 26304, 26304a, 26304b Brakes/combination vehicles 26307 Forklift truck brakes 26311, 26311a, 26311b, 26311c All wheel service brakes 26456, 26457 Brakes/stopping distance 26458, 26458a, 26458.5 Braking system/towing vehicles 26502a Adjustment/use of air brakes 26503 - 26506, 26506a, 26507 Airbrake system 26508, 26508a - c, 26508e - k, 26508o Emergency stopping system 26520, 26521, 26522 Vacuum brakes 27360, 27360a - c, 27360.5, 27360a - c Child Passenger restraint 27363, 27363b Child seat belt 27800, 27801, 27801a, 27801b Motorcycle/passengers and equipment 29001, 29002 Fifth wheel connecting/locking device 29003a, 29003b, 29003c Hitch and coupling device 29004, 29004a - c, 29006, 29006a Towed vehicle coupling 29201 Pole dolly/load and length 31301, 31301a Caldecott tunnel restrictions 31303, 31303b, 31303c, 31303e Hazardous waste transportation 31402 Farm labor vehicle/unsafe operation 31540, 31504b Removable containers/regulations 31614, 31614a, 3164b, 31614d - f 31614h, 31614i Explosives transportation
Two Point Count California Vehicle Code Violations
Section Violation 2800.2, 2800.3 Evading peace officer/reckless driving 14601, 14601a,14601 b, 14601.1- 14601.4 Driving while suspended/revoked 20001, 20001a 20002, 20002a, 20002b Hit and run/injury/property damage 21651b Driving wrong side/divided highway 22348b Speed over 100 MPH 23103, 23103a,23103 b Reckless driving 23104, 23104a Reckless driving/causing bodily injury 23109a, 23109c Speed contest /exhibition of speed 23140, 23140a, 23140b Minor driving with BAC of 0.05% or more 23152, 23152a-d DUI/alcoholic beverage or drugs 23153, 23153a-d DUI/causing bodily injury or death 31602, 31602a, 31602b, 31602c Explosives transportation Back to Top of Page
Other Common California Code Violations Used In Negligent Operator Count
Section Code Violation Points 49307 or 12059 Education Disobedience to school safety patrol 1 191.5a, 192c1-192c4, 192.3c, 192.3d Penal Vehicular manslaughter with gross
negligence 2
192c, 192.3, 192.3a, 192.3b Penal Vehicular manslaughter without gross
negligence 1
27176 Streets and highways Speeding on Golden Gate Bridge 1 Back to Top of Page
One Point Count Out of State Violations
Section Violation Section Violation 01 Speed/too fast or over speed limit 34 Entering/exiting from thoroughfare 03 Speed/too slow or failure to turn out 40 Illegally modified vehicle 04 Passing/illegal, improper or unsafe 45 Explosives transportation 05 Following too close 51 Equipment/unsafe, illegal or defective 06 Failure to yield right-of-way 58 Driving while impaired 07 Illegal/unsafe use or change of lanes 61 Child passenger seat restraint 08 Tuirns/illegal or unsafe 67 Defective headlights 09 Signaling/improper or no signal 69 Following emergency vehicle unlawfully 10 Failure to obey traffic control device 70 Using vehicle for felony/aiding or abetting 11 Crossing double lines/markers/dividers 72 Erratic driving/suddenly changing speeds 12 Wrong way on one-way street 73 Fleeing scene or evading arrest by
27 Starting or backing/illegal or unsafe 87 Felony controlled substance/commercial vehicle
28 Driving in a prohibited area 88 Speeding 15 mph plus/commercial vehicle
30 Disobedience of lawful order 91 Illegal lane change/commercial vehicle 31 Towing/improper, unsafe or illegal 92 Following too closely/commercial vehicle
Additional Covered Party Amendatory Endorsement ISSUE: Many vendors and other jurisdictions require an Additional Insured Endorsement before approving contracts or granting annual permits. This presents a problem for CSRMA member agencies as CSRMA does not have an additional insured endorsement. RECOMMENDATION: The Pooled Liability Committee recommends that the Executive Board recommend that the Board of Directors adopt an Additional Covered Party Amendatory Endorsement for issuance to certificate holders with Additional Covered Party status. FISCAL IMPACT: None. BACKGROUND: The Program Administrators recommended that the Pooled Liability Committee create and adopt an Additional Covered Party Amendatory Endorsement for issuance to certificate holders that is consistent with the CSRMA Pooled Liability Program Memorandum of Coverage and standard insurance practice. The Memorandum of Coverage has “additional covered party” language built into its coverage documents. The definition from the MOC is below: A. ADDITIONAL COVERED PARTY - means any person, organization, trust or estate to
whom or to which the ENTITY is obligated by virtue of a written contract to provide
COVERAGE such as is afforded by this MEMORANDUM, but only with respect to
contractual obligations for operations performed by or on behalf of the ENTITY or
facilities owned or used by the ENTITY. ATTACHMENTS: Proposed Additional Covered Party Amendatory Endorsement
95
CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY
ADDITIONAL COVERED PARTY ENDORSEMENT
This Endorsement forms a part of the Memorandum Of Coverage issued by the CALIFORNIA SANITATION RISK MANAGEMENT AUTHORITY. ADDITIONAL COVERED PARTY: __________________________________ CSRMA MEMBER ENTITY: ________________________________________ DESCRIPTION OF ACTIVITY: ______________________________________ DATE(S) OF ACTIVITY: ___________________________________________ LOCATION OF ACTIVITY: _________________________________________ MAXIMUM COVERAGE LIMIT: _____________________________________ DEDUCTIBLE: ____________________________________________________ The person or organization first named above is added as an ADDITIONAL COVERED PARTY pursuant to Section III(A), “Definitions” and Section VII, “Covered Parties.” Coverage is provided through participation in a risk sharing joint powers authority, for general and automobile liability as defined in the Memorandum of Coverage. The coverage being provided by this Endorsement is limited to “occurrences” arising out of the activity or location described, and the time period indicated herein, and is subject to all the terms, conditions and exclusions of the Memorandum of Coverage. Pursuant to Section III (A), the person or entity named above is only an Additional Covered Party with respect to operations performed by or on behalf of the CSRMA MEMBER ENTITY, or facilities owned or used by the CSRMA MEMBER ENTITY. Coverage is in effect for the DATE(S) OF ACTIVITY indicated above and will not be cancelled or allowed to expire at a date other than the last date indicated except upon 30 days’ written notice to the Additional Covered Party. Date issued: ______________________ Authorized Representative
96
M.1.
Trust Yourself
Trust yourself Trust yourself to do the things that only you know best Trust yourself Trust yourself to do what’s right and not be second-guessed Don’t trust me to show you beauty When beauty may only turn to rust If you need somebody you can trust, trust yourself
Trust yourself Trust yourself to know the way that will prove true in the end Trust yourself Trust yourself to find the path where there is no if and when Don’t trust me to show you the truth When the truth may only be ashes and dust If you want somebody you can trust, trust yourself
Well, you’re on your own, you always were In a land of wolves and thieves Don’t put your hope in ungodly man Or be a slave to what somebody else believes
Trust yourself And you won’t be disappointed when vain people let you down Trust yourself And look not for answers where no answers can be found Don’t trust me to show you love When my love may be only lust If you want somebody you can trust, trust yourself
EMERGING EXPOSURES NEWS ITEM June 2010, Volume VI, #2
CYBER LIABILITY AND INTERNET RISK
How much damage can a data breach do?
The long-held belief that cyber exposures have minimal loss potential has been disproved by repeated security breaches that have led to the inadvertent release of personal data and huge costs for companies.
The past decade has seen many of the largest data breaches in history. Incidences of lost, stolen, or hacked data – typically the result of weaknesses in credit or debit card security – have prompted customer outrage, legal disputes, and legislative and regulatory action.
One of the largest breaches by Heartland Payment Systems, a credit card and check processor, is a prime example of how costly an event can be.
In its 2009 annual report, the company estimated that the data breach, which compromised the personal information of 130 million credit and debit cards, would cost nearly $129 million – up from a June 2009 figure of $32 million. Expenses include legal fees and defense costs; fines from credit card companies, such as MasterCard and Visa; costs associated with the investigation, remedial actions, and crisis management, and the cost to settle potential litigation arising from the incident.
However, even this latest estimate may not fully approximate the total cost of the breach. Using a conservative figure of $30 per card brings the cost to simply replace the 130 million cards involved in the breach to $4 billion.
In January 2010, the company reached a $60 million settlement with Visa for Visa’s credit and debit card issuers, largely banks, and shareholder suits could still be ahead.
Source: Advisen. (2010). The largest data breach in history. May 5.
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EMERGING EXPOSURES NEWS ITEM June 2010, Volume VI, #2
GREEN BUILDING
Where claims could crop up
Like many new products and designs, green building, a rapidly growing sector of the construction industry, is likely to have its flaws.
The green building market is expected to double from $36 billion to $49 billion today to $96 billion in 2013, although some estimates are as high as $140 billion. The growth potential is undeniable but so is the possibility of claims associated with the emerging technology.
For this reason, experts are taking a close look at some technologies to see if a claims problem might be brewing. Their concerns have focused on:
Construction defects, which are likely to vary depending on the level of innovation in building practices. With a low-level certification for Leadership in Energy and Environment Design
(LEED), there probably is not going to be much deviation from traditional building practices, and
claims are expected to be low. However, as builders and property owners move away from
well-tested construction practices in order to achieve higher levels of green certification, new
building products and designs could cause claims. Fuel cell technology, which uses a fuel source to produce electricity via an electrochemical cell.
Water is also produced during the process. Claims have been not been a problem, but there
are still many unknowns surrounding the nascent technology. Vegetative roofing that could leak. At least one large claim has resulted from leaking that
caused considerable damage to a building under construction. Failure to perform as promised situations that create liability because a product or design has
not lived up to energy reduction guarantees or does not meet certain LEED certification criteria.
If either of these situations were to occur, tax credits might be lost. Risk managers warn against
guaranteeing or warranting a specific level of certification.
Despite these concerns, businesses that go green may be a better risk. Firemen’s Fund says its loss ratio for commercial green building coverages has been more than 10 percentage points less than its overall book. “For us, energy efficiency is really the key because that means the building systems are operating not only more efficiently, but more safely as well. If they’re operation more efficiently, they’re going to break down less often,” said David Cohen, senior director of real estate for commercial insurance at Firemen’s Fund.
Source: Wells, Andrea. (2010). Green is good, right? Insurance Journal, March 22.
555 College Road East, Princeton, NJ 08543 (609) 243-4200 The Munich Re America name and logo are marks owned by Munich Reinsurance America, Inc.
EMERGING EXPOSURES NEWS ITEM June 2010, Volume VI, #2
GREEN BUILDING
Beyond standard coverage
Traditional insurance coverage could leave green businesses with less protection than they might expect, according to one industry expert.
Green businesses have a somewhat different set of insurance needs that should be incorporated into a risk program. Just setting the right level of insurance coverage on a green building requires engineering expertise.
However, other coverage areas that should be looked at closely include the additional cost related to:
Recycling debris in the event of a covered loss. Under a standard property form, companies that have put an emphasis on recycled materials as part of their business practice might come up short if they were to have a loss that requires the disposal of material as part of the restoration process
Repairing or rebuilding damaged property covered according to newly instituted green building codes
Replacing specialized systems like vegetative roofs
Recertifying that a property meets green standards
Replacing covered property with green-certified products
Green businesses may also face an additional expense for loss of income because of the potentially longer nonoperational periods associated with procuring and installing green materials, even if certification is not an objective. Some green businesses that provide or receive alternative energy may also have a loss of income because of an interruption in service.
Source: Butterworth, A. (2010). Businesses going green. Insurance Journal, March 22.
555 College Road East, Princeton, NJ 08543 (609) 243-4200 The Munich Re America name and logo are marks owned by Munich Reinsurance America, Inc.
EMERGING EXPOSURES NEWS ITEM June 2010, Volume VI, #2
CONSTRUCTION DEFECT
Shifting soil linked to increase in foundation failures
Over the past two decades, there has been a huge increase in foundation failure in homes across the U.S., the result of shifting soil, which has partly been attributed to extremes in the weather.
Large cracks in walls, grout popping, out-of-plumb doors and windows, and bowing basement walls, among other problems, have prompt many homeowners to seek the help of foundation repair companies, which have seen their business double and in some cases triple over the past two decades.
In many cases, foundation failures have been attributed to soil movement, which has worsened with recent sudden swings between extreme dry periods and heavy downpours, or extreme hot and cold weather. These types of extreme conditions can undermine the integrity of the soil.
The huge housing boom, which led some developers to build on less stable ground, may have also contributed to the problems of homeowners.
The foundation repair market is estimated to be around $4 billion.
