2006-06-22 BOD MeetingPUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
Hilton Beach Resort
560 South Collier Blvd, Marco Island, FL
June 22, 2006
AGENDA
2:00 pm Call To Order
Consent Agenda
John Litton, Chairperson
1. Request Approval of March 10, 2006 Board Meeting Minutes
2. Request Approval of Treasurer's Report as of March 31, 2006
Any Board Member may request to have an item removed from the Consent Agenda and placed on the Regular
Agenda for further discussion.
Regular Agenda
3. Executive Committee Report John Litton
A. Executive Director Evaluation and Recommended Salary for FY 2006/07
4. Executive Director's Report Ross Funy, Executive Director
A. PRIMA Conference
B. Hurricane Claims Status
C. Request Board Approval of 2006/07 Administrative Budget
D. Change August Meeting Date
5. Broker's Report
A. Market Trends & Outlook for 2006/07
B. Meeting with Underwriters
C. Steps Taken to Renew PRM's Insurance
6. Election of Officers
7. Legal Update
8. Board Member Items
Andy Cooper, A. J. Gallagher & Co.
John Litton
Jeffrey Weiss, Brown, Garganese, Weiss & D'Agresta, P.A.
Public Comment: State full name and address. Discussion must be limited to a maximum of five (5) minutes per
person.
Adjourn
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
June 22, 2006
CONSENT AGENDA SUMMARY
1. Request Approval of March 10, 2006 Board Meeting Minutes
Board Meeting Minutes Attached
2. Request Approval of Treasurer's Report as of March 31, 2006
Financial Reports Attached
Board Action:
Approved
Denied
Deferred
Other
1. BOARD MEETING MINUTES
MARCH 10, 2006
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
Chateau Elan, Sebring, FL
March 10, 2006
MINUTES
Attendance: Kathy Bennett, City of Avon Park; Susan Lee, Town of Belleair; Ted Byrd,
City of Clewiston; Jerry Hill, DeSoto County BOCC; Delores Avery, City of Fort Meade;
Jane Long, Hardee County BOCC; Lester Baird, Hendry County BOCC; Tom Bowman,
Highlands County BOCC; Bill Smith, Town of Kenneth City; Arlene Tuck, Town of Lake
Placid; Fred Moody, Levy County BOCC; Jane O'Connor, Town of Longboat Key; Jeff
Sutton, City of New Port Richey; Steve Gailbreath, City of North Port; Donna Reynolds,
City of Okeechobee; Robbie Chartier; Okeechobee County BOCC; Dan Hood, City of
Oviedo; Jeanie Perkins, City of Pahokee; Phil Wickstrom, City of Punta Gorda; Jeff
Carlson, City of Sebring; Ron Graydon, South Florida Conservancy; Gary Behnke, City
of St. Pete Beach, Debra Woodall, Tampa Bay Water; Crissy Bublitz, City of Tavares;
James Braddock, City of Wauchula; Sharry Boldt, City of Zephyrhills
Peggy Carpenter, City of Winter Garden, attended the meeting as a non - voting
representative.
Absent: City of Belle Glade, City of Brooksville, City of Crystal River, City of Deltona,
City of Eustis, Glades County BOCC, City of Gulfport, Hamilton County BOCC, Holmes
County BOCC, City of Indian Rocks Beach, City of LaBelle, Town of Lady Lake, City of
Lake Mary, City of Lake Wales, Lee County Port Authority, City of Longwood, City of
Moore Haven, City of Port Richey, City of Safety Harbor, Sarasota/Manatee Airport
Authority, City of South Pasadena, Sun 'n Lake of Sebring Improvement District, City of
Temple Terrace
Vice Chairperson Lester Baird, called the meeting to order at 10:15 a.m. without a
quorum present. Retiring Board members, Bill Smith, Town of Kenneth City, and Janice
Thompson, City of Fort Meade, were recognized for their years of service.
Until a quorum was in attendance, items on the agenda not requiring a vote were
covered.
(Out of Sequence)
Regular Agenda
6. Broker's Report
Mr. Cooper introduced Greg Butterfield, new Branch Manager for A. J.
Gallagher. Mr. Butterfield has experience in public entity and pool insurance
and will become more involved in all aspects of PRM.
A. Renewal Applications and Property Appraisal — Mr. Cooper advised
renewal applications are due on March 31st. The broker plans to meet
with underwriters as quickly as possible to get the best terms available for
renewal. Additional information requested on property appraisals
regarding roof strapping is important. If this is not supplied, carriers will
default to the worst rating.
B. Market Update — Mr. Cooper met with insurance carriers in Atlanta to
determine the current status of the property market. In general, there is
half the capacity available at double the premium, windstorm deductibles
are increasing from 2% to 5 %, there may be sub - limits for code ordinance
per a schedule of values, and possibly a margin clause of 15 %.
To provide a better understanding of the property market, Mr. Cooper
introduced Mike Berend of Risk Placement Services (RPS), a wholesaler
of property and casualty insurance. Mr. Berend reviewed factors affecting
market conditions and anticipated underwriting changes. Anticipated
coverage changes include annual aggregate limits on windstorm
coverage, reduced limits, policies providing coverage on a schedule of
values, windstorm deductible increasing to 5 %, flood deductible increasing
to 5 %, separate deductibles for perils such as flood, earthquake and
windstorm.
Mr. Cooper explained how these changes will affect PRM. The current
$500 million property limit could reduce to $200 -$250 million. Although
there may be 100% increase on Property premiums this year plus the
Citizens Assessment of 6.84 %, the Liability and Workers' Compensation
markets are running steady and may increase 5 -10 %. The broker's early
prediction is a 25% increase overall above the exposure increase.
Meetings with underwriters have been scheduled in May with Munich
America in Princeton, New Jersey, and BRIT in London, as well as other
syndicates.
[Representatives from the City of Tavares and the City of St. Pete Beach entered the
meeting at 10:50 a.m., providing a quorum.]
C. Educational Conference Update — Mr. Cooper advised the conference will
be held June 21 -23 and invitations will be mailed within the next two
weeks.
Consent Agenda
1. Request Approval of December 9, 2005 Board Meeting Minutes
2. Request Approval of Treasurer's Report as of December 31, 2005
2
Phil Wickstrom made a motion to approve the consent agenda. Robbie Chartier
seconded the motion, and it was unanimously approved.
Regular Agenda
3. Executive Director's Report
A. Status on Hurricane Claims — Mr. Furry reported on the five hurricanes:
Charley - $40 million reserved, paid $31.5 million, 266 claims open.
Mr. Furry urged members having open claims from Charley to submit
them immediately. He again reminded members to submit claims for
contents and property in the open.
Frances — 97 claims, 76 open, $1 million reserved, paid $380,000
Ivan — 2 claims, $343 paid
Jeanne —149 claims, 98 open, $6 million reserved, $3 million paid
Wilma — 353 claims, 299 open, $6 million reserved, $800,000 paid
B. Property Appraisals — Ms. Heam advised that the Pool has utilized
Maximus (formerly Valuation Resource Management) since 1997. Their
service level has diminished over the last few years. Requests for
proposal were sent to eight companies nationwide. Deloitte & Touche,
Gallagher Bassett, and CBIZ were interviewed with CBIZ being selected.
Thirty -two members are scheduled for appraisals in 2006. Three
members, Highlands County, City of Temple Terrace, and City of
Zephyrhills, are slated for a pilot appraisal in the next couple of months
with CBIZ.
Mr. Furry reminded members that elections for Chairperson and Treasurer
will be held in June.
4. Request Board Approval of New Loss Prevention — Employment Practices
Position
Based on the Executive Committee's and Executive Director's
recommendation, Ms. Chartier made a motion to reclassify the position of
Loss Prevention — Administrative Assistant to Loss Prevention Consultant —
Employment Practices with a salary range of $60,000 to $80,000 and to
amend the 2005/06 Administrative Budget to provide funding for the position
from surplus in the amount of $29,862 for the fiscal year ending 9/30/2006.
Jane Long seconded the motion and it was unanimously approved.
3
5. Request Board Approval of Insurance Consultant
The Executive Committee and Executive Director recommend Board approval
to retain Mr. Tobey as an Insurance Advisor to negotiate with A. J. Gallagher
and underwriters for the 2006/07 renewal. The Chairman provided a letter
supporting the recommendation. Based upon their recommendation, Steve
Gailbreath made a motion to engage Glenn Tobey as an Insurance Advisor
for the period April 1, 2006 to October 1, 2006, at a total compensation of
$120,000 to be paid in monthly increments and to amend the Administrative
Budget to provide funding from surplus. Ms. Chortler seconded the motion
and it was unanimously approved.
7. Chairman's Item
A. Executive Director Evaluation — Mr. Baird advised members that the
evaluation form for the Executive Director would be sent out the end of
March, to be retumed to Mr. Litton's office by April 28tH
8. Guest Speaker: Danni Germano, Attorney at Law, Rigell, Ring & Ardman
A. Workers' Compensation Presumption Cases
Ms. Germano discussed presumption cases that fall under Section 112.18
which deals with hypertension and heart disease for first responders
[firefighters, law enforcement officers, corrections officers, EMTs,
paramedics] and Section 112.181 which deals with meningitis, Hepatitis A-
BC for first responders. Most cases under Section 112.181 are for
Hepatitis C.
9. Legal Update — Jeffrey S. Weiss
A. State of Florida v. Ron Andres O'Daniels
Mr. Weiss discussed the resurgence of First Amendment litigation as cities
and counties are growing. Under the First Amendment, public entities
cannot restrict speech because of its content. However, time, place, and
manner in which First Amendment type activity occurs can be restricted.
The City of Miami Beach attempted to restrict the activities of street
musicians and art vendors to eleven areas. The Court found the City's
ordinance to be unconstitutional because the areas were too limited.
10. Board Member Items
There were no Board Member items.
4
The next meeting will be held during the June conference at Marco Island.
There was no public comment.
Jerry Hill made a motion to adjourn the meeting. Jeff Sutton seconded the motion.
Meeting adjourned at 11:57 a.m.
Respectfully submitted,
Judith A. Hearn
Assistant Executive Director
Secretary to PRM Board
JAH:smb
O:\Judy\BD MTGS\Board of Directors Meeting 3-10-06
5
2. TREASURER'S REPORT
AS OF MARCH 31, 2006
PUBLIC RISK MGMT OF FL
BALANCE SHEET
MARCH 31, 2006
CURRENT ASSETS
PETTY CASH $ 75.00
OPERATING -SO TRUST 38,079,978.23
INVESTMENT TRANSFER ACCOUNT 3,921.26
A/R MEMBERSHIPS 918,961.27
A/R TRADE 93.46
A/R CONSULTANT FEE- MEMBERS 14,214.90
A/R- REINSURANCE RECOVERIES (16,423,442.18)
A/R OTHER 141.38
A/R -STATE W/C ASSESSMENT (280,218.78)
A/R- APPRAISALS 767.00
A/R - ADDITIONAL INSURANCE 501.21
A/R - SCHOLARSHIP PROGRAM 3,500.00
DUE FROM MEMBERS 1,036,049.00
STATE ADMIN. FUND 12,899,035.32
SOUTHTRUST SECURITIES 522,476.29
TOTAL CURRENT ASSETS 36,776,053.36
PROPERTY AND EQUIPMENT
FURNITURE & FIXTURES 34,181.96
LESS: ACCUM. DEPRECIATION (27,366.23)
OFFICE MACHINES & EQUIPMENT 97,445.40
LESS: ACCUM. DEPRECIATION (61,633.13)
AUTOMOBILE 116,752.77
ACCUMULATED DEPRECIATION (17,140.31)
TOTAL PROPERTY & EQUIPMENT 142,240.46
OTHER ASSETS
PREPAID INSURANCE 4,385,874.95
PREPAID FLOOD INSURANCE 94.49
PREPAID EXPENSES 4,634.79
DEFER MEMBER CONTR - 1987 -89 183,808.00
DEFER MEMBER CONTR- 1989 -90 295,679.00
DEPOSITS 5,665.06
TOTAL OTHER ASSETS 4,875,756.29
TOTAL ASSETS
$ 41,794,050.11
LIABIL111ES
ACCOUNTS PAYABLE $ (118,771.70)
A/P - GALLAGHER/RISX -FACS 1,236,063.82
FEDERAL TAXES PAYABLE (46.12)
PEBSCO PAYABLE (189.42)
A/P EMP LIFE INS (397.85)
A/P RELOCATION EXPENSES 178.64
A/P - OTHER 4,840.49
A/P - LOSS PREVENTION 14,927.54
ACCRUED VACATION 41,121.55
ADVANCE FROM REINSURER 4,341,369.26
CLAIMS PAYABLE - 1987 -89 106,911.46
CLAIMS PAYABLE - 1989 -90 20,000.00
CLAIMS PAYABLE - 1990 -91 22,229.22
CLAIMS PAYABLE - 1991 -92 7,040.81
CLAIMS PAYABLE - 1992 -93 16,944.34
CLAIMS PAYABLE - 1993 -94 (19,856.35)
CLAIMS PAYABLE - 1994 -95 34,364.34
CLAIMS PAYABLE - 1996/97 39,798.71
CLAIMS PAYABLE - 1997/98 (120,683.58)
CLAIMS PAYABLE - 1998/99 (91,426.93)
CLAIMS PAYABLE - 1999/00 (161,726.73)
CLAIMS PAYABLE - 2000/01 (413,172.07)
CLAIMS PAYABLE - 2001/02 86,595.90
CLAIMS PAYABLE - 2002/03 2,515,876.63
CLAIMS PAYABLE - 2003/04 (6,681,999.66)
CLAIMS PAYABLE - 2004/05 5,161,920.83
CLAIMS PAYABLE - 2005/06 (2,489,949.40)
PUBLIC RISK MGMT OF FL
BALANCE SHEET
MARCH 31, 2006
TOTAL LIABILITIES 3,551,963.73
CAPITAL
FUND BALANCE
REVENUE IN EXCESS OF EXPENSE
20,019,391.61
18,222,694.77
TOTAL CAPITAL 38,242,086.38
TOTAL LIABILITIES & CAPITAL
$ 41,794,050.11
PUBLIC RISK MGMT OF FL
INCOME STATEMENT
FOR THE SIX MONTHS ENDING MARCH 31, 2006
CURRENT MONTH YEAR TO DATE
REVENUES
MEMBERSHIP ASSESSMENTS $ 4,571,676.52 $ 23,412,185.44
INTEREST INCOME 163,340.77 864,941.83
ADMINISTRATIVE TRANSFER 7,791.00 46,746.00
TOTAL REVENUES 4,742,808.29 24,323,873.27
EXPENSES
OFFICERS' SALARIES 8,892.48 58,446.11
OFFICE SALARIES 42,297.50 227,641.03
PAYROLL TAXES 4,161.75 21,196.14
EMPLOYEE RETIREMENT BENEFITS 1,078.64 21,311.78
HEALTH INSURANCE - OFFICER 587.16 3,522.96
HEALTH INSURANCE - OFFICE 8,094.32 46,223.36
LIFE INSURANCE - OFFICER 71.92 431.52
LIFE INSURANCE - OFFICE 151.28 825.36
LTD INSURANCE 1,642.72 4,928.16
LEGAL FEES 0.00 841.85
AUDIT FEES 18,000.00 26,000.00
APPRAISAL FEE EXPENSE 0.00 2,500.00
AUTO EXPENSE 133.11 4,363.40
TRAVEL EXPENSE 6,492.34 24,729.88
ASSOCIATION MEMBERSHIPS 172.00 527.00
DUES & SUBSCRIPTIONS 95.00 642.96
EDUCATION/TRAINING/CONFER. 9,176.56 12,068.10
OFFICE LEASE 5,835.77 40,850.39
JANITORIAL / CLEANING 0.00 1,370.00
OFFICE/COMPUTER EQUIPMENT 2,348.68 12,039.53
TELEPHONE 1,684.04 10,004.69
COPY MACHINE LEASE 516.46 1,549.38
OFFICE SUPPLIES 1,983.15 5,767.42
POSTAGE 1,100.36 6,051.98
PRINTING 0.00 937.18
INSURANCE - FLOOD /GENERAL 0.00 1,000.00
LOSS PREV EQUIP & SUPPLIES 0.00 4,798.60
MARKETING & PROMOTION 0.00 90.00
MEETING EXPENSE 2,495.73 10,689.69
MISCELLANEOUS EXPENSE 1,006.30 2,635.39
HURRICANE EXPENSE' 0.00 768.92
NON - BUDGET - BOARD APPROVAL 0.00 868.20
GALLAGHER MGMT FEES 102,641.08 615,846.48
GALLAGHER EXCESS INSURANCE 727,117.17 4,362,703.02
CLAIMS EXPENSE 87,834.67 527,008.02
TOTAL EXPENSES 1,035,610.19 6,061,178.50
REVENUE IN EXCESS OF EXPENSE $ 3,707,198.10 $ 18,262,694.77
SALARY RELATED EXPENSES
OFFICERS' SALARIES
OFFICE SALARIES
PAYROLL TAXES
EMPLOYEE RETIREMENT BENEFITS
HEALTH INSURANCE - OFFICER
HEALTH INSURANCE- OFFICE
LIFE INSURANCE- OFFICER
LIFE INSURANCE - OFFICE
LTD INSURANCE
TOTAL SALARY RELATED EXPENSES
PUBLIC RISK MGMT OF FL
EXPENSES TO BUDGET
FOR THE Six MONTHs ENDING March 31, 2006
MONTHLY MONTHLY Y -T -D Y -T -D TOTAL YEAR
ACTUAL BUDGET ACTUAL BUDGET BUDGET
8,892.48 9,633.50 58,446.11
42,297.50 39,642.31 227,641.03
4,161.75 3,563.30 21,196.14
1,078.64 4,029.19 21,311.78
587.16 634.50 3,522.96
8,094.32 8,058.64 46,223.36
71.92 69.33 431.52
151.28 188.56 825.36
1,642.72 937.92 4,928.16
66,977.77 66,757.25 384,526.42
57,801.00
229,187.19
20,713.14
23,741.82
3,807.00
48,185.16
415.98
964.68
5,627.52
390,443.49
115,602.00
467,041.05
42,092.94
47,916.96
7,614.00
96,537.00
832.00
2,096.04
11,255.00
790,986.99
GENERAL EXPENSES
LEGAL FEES 0.00 1,000.00 841.85 6,000.00 12,000.00
LEGAL - PRE - DEFENSE 0.00 625.00 0.00 3,750.00 7,500.00
AUDIT FEES 18,000.00 2,583.33 26,000.00 15,499.98 31,000.00
ACTUARIAL STUDY 0.00 1,166.67 0.00 7,000.02 14,000.00
APPRAISAL FEE EXPENSE 0.00 208.33 2,500.00 1,249.98 2,500.00
AUTO EXPENSE 133.11 250.00 4,363.40 1,500.00 3,000.00
TRAVEL EXPENSE 6,492.34 2,375.00 24,729.88 14,250.00 28,500.00
ASSOCIATION MEMBERSHIPS 172.00 250.00 527.00 1,500.00 3,000.00
DUES & SUBSCRIPTIONS 95.00 208.33 642.96 1,249.98 2,500.00
EDUCATION/TRAINING/CONFER. 9,176.56 2,083.33 12,068.10 12,499.98 25,000.00
OFFICE LEASE 5,835.77 5,985.83 40,850.39 35,914.98 71,830.00
JANITORIAL / CLEANING 0.00 300.00 1,370.00 1,800.00 3,600.00
OFFICE /COMPUTER EQUIPMENT 2,348.68 1,500.00 12,039.53 9,000.00 18,000.00
TELEPHONE 1,684.04 2,166.67 10,004.69 13,000.02 26,000.00
COPY MACHINE LEASE 516.46 250.00 1,549.38 1,500.00 3,000.00
REPAIRS & MAINT. - EQUIPMENT 0.00 166.67 0.00 1,000.02 2,000.00
OFFICE SUPPLIES 1,983.15 1,166.67 5,767.42 7,000.02 14,000.00
NEWSLETTER 0.00 333.33 0.00 1,999.98 4,000.00
POSTAGE 1,100.36 916.67 6,051.98 5,500.02 11,000.00
PRINTING 0.00 166.67 937.18 1,000.02 2,000.00
INSURANCE - FLOOD /GENERAL 0.00 250.00 1,000.00 1,500.00 3,000.00
LOSS PREV EQUIP & SUPPLIES 0.00 1,833.33 4,798.60 10,999.98 22,000.00
MARKETING & PROMOTION 0.00 375.00 90.00 2,250.00 4,500.00
MEETING EXPENSE 2,495.73 2,008.33 10,689.69 12,049.98 24,100.00
MISCELLANEOUS EXPENSE 1,006.30 208.33 2,635.39 1,249.98 2,500.00
TRAINING/SEMINAR PRESENTATION 0.00 500.00 0.00 3,000.00 6,000.00
WEB SITE MAINT. 0.00 566.67 0.00 3,400.02 6,800.00
HURRICANE EXPENSE' 0.00 0.00 768.92 0.00 0.00
NON - BUDGET - BOARD APPROVAL 0.00 0.00 868.20 0.00 0.00
TOTAL GENERAL EXPENSES 51,039.50 29,444.16 171,094.56 176,664.96 353,330.00
TOTAL OPERATING EXPENSES 118,017.27 96,201.41 555,620.98 567,108.45 1,144,316.99
Public Risk Management of Florida
3434 Hancock Bridge Parkway, Suite 203
North Ft. Myers, Fl. 33903
Ph: 239.656.4666
MEMORANDUM
July 6, 2006
To: Board Members, Alternate Board Members & Contacts
From: Judy Hearn, Assist. Executive Director
Secretary, PRM Board of Directors
Re: Summary of June 22nd Board of Directors Meeting
******************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * **
The following is a summary of the Board of Directors Meeting held on June 22nd
on Marco Island. The official meeting minutes will be presented for approval at
the next Board of Directors meeting.
Motions Passed:
Consent Agenda: Approved the March 10, 2006 Board of Directors Meeting
Minutes and the Treasurer's Report of March 31, 2006.
Approved the 2006/07 Administrative Budget that includes an 8% (4% cost of
living and 4% merit) salary increase for the Executive Director and 6% for staff.
Rescheduled the August 11, 2006 Board meeting to September 15, 2006 at 10:00
a.m. at the Terrace Hotel in Lakeland, Florida.
John Litton was re- elected at Chairperson for the 2 -year term commencing
October 1, 2006.
Mike Sheppard was re- elected as Treasurer for the 2 -year term commencing
October 1, 2006.
Other Items of Discussion:
Capacity in the property markets for the 2006/07 renewal continues to decline.
The broker assured members that all available markets are being pursued.
Mr. Tobey reviewed meetings with BRIT and AmericanRe. The BRIT philosophy
is geared towards lower premiums and higher loss fund. AmRe believes in
higher premiums and lower loss fund.
Terrorism is not included in the BRIT package but a separate policy insured by
BRIT is available through the A. J. Gallagher UK office. AmRe provides
terrorism coverage with their package limits.
Jeffrey Weiss, Esq. discussed the latest ruling concerning employees 'perceived'
disability and their entitlement to accommodations under the ADA. Members
are encouraged to check with legal counsel to ensure an employee's disability is
bona fide under the ADA.
The Annual Safety Performance Awards were presented to the following:
Vehicle Safe Driving Awards - Hamilton County, City of Lake Mary, Town of
Lake Placid, City of Moore Haven, Sarasota/ Manatee Airport, Sun 'n Lake
Improvement District
Small Entity -Most Improved Safety Performance & Best Overall Safety Record
South Florida Conservancy, Runner -up was Kenneth City
Medium Entity -Most Improved & Best Overall - Hamilton County, runner up-
City of Gulfport
Most Improved -Large Entity - Highlands County, runner up- Hendry County
Best Overall -Large Entity -City of New Port Richey, runner up- Highlands County
PLEASE NOTE: THE AUGUST 11TH BOARD MEETING HAS BEEN
CHANGED TO SEPTEMBER 15TH IN LAKELAND FLORIDA.
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
June 22, 2006
REGULAR AGENDA SUMMARY
3. Executive Committee Report John Litton
A. Executive Director Evaluation and Recommended Salary
for FY 2006/07
The Executive Committee, at their May 23rd meeting, reviewed
performance evaluations received from Board Members and Executive
Committee. The Executive Committee recommends the Board
approve an 8% salary increase (4% merit and 4% cost of living) for
fiscal year 2006/07.
Board Action:
Approved
Denied
Deferred
Other
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
June 22, 2006
REGULAR AGENDA SUMMARY
4. Executive Director's Report Ross Furry
A. PRIMA Conference
B. Hurricane Claims Status
C. Request Board Approval of 2006/07 Administrative Budget
The proposed administrative budget includes an 8% salary increase for
the Executive Director and 6% overall for staff.
The Executive Committee reviewed the proposed budget at the
May 23rd meeting and recommends approval.
Attached: Proposed Administrative Budget for FY 2006/07
Board Action:
Approved
Denied
Deferred
Other
D. Change August Meeting Date
Board Meeting, scheduled for Friday, August 11th, needs to be moved
to September in order to have renewal costs from property markets.
Meeting Date
6/5/2006
Public Risk Management
Of Florida
Property / Casualty
Proposed Administrative Budget
FY 2006 - 2007
2004/2005 2004/ 2005 2005/2006 3/31 /2006 2006/2007 % Change
STAFFING Budget Actual Budget Actual Proposed
Budget
Officer Salary 108,039 99,543 115,602 63,549 124,850 8%
Office Salary 416,075 385,769 474,525 232,118 502,997 6%
Payroll Taxes 40,093 40,558 44,761 21,196 47,624 6%
Florida Retirement 43,853 46,341 50,851 15,800 54,593 7%
Health Ins. - Officer 6,621 6,229 7,614 3,523 8,756 15%
Health Ins. - Office 83,510 74,851 102,708 46,223 118,114 15%
Ufe Ins. - Officer 778 749 832 432 899 8%
Ufe Ins. - Office 1,507 3,498 1,691 825 1,792 6%
Long Term Disability 8,255 11,042 8,255 4,928 11,255 36%
Total Personnel Budget 708,731 668,579 806,839 388,593 870,880 8%
OPERATING EXPENSE
Legal Fees 12,000 5,607 12,000 1,780 6,000 -50%
Pre - defense Legal 7,500 5,145 7,500 0 5,000 -33%
Audit Fees 31,000 26,000 31,000 26,000 29,000 -6%
Actuarial Study 14,000 13,412 14,000 13,555 14,000 0%
Appraisal Expense 2,500 2,500 2,500 2,500 5,500 120%
Auto Expense 3,000 2,125 3,000 4,363 3,000 0%
Travel Expense 28,500 42,213 28,500 24,730 30,000 5%
Association memberships 3,000 894 3,000 527 2,000 -33%
Dues/Subscriptions 2,500 1,851 2,500 643 3,200 28%
Education /Training/Confer. 25,000 24,354 25,000 12,068 30,000 20%
Office Lease 89,475 62,475 71,830 40,850 72,129 0%
Janitorial / Cleaning 3,800 3,120 3,600 1,370 3,600 0%
Office/Computer Equipment 18,000 26,330 18,000 12,040 18,000 0%
Telephone 26,000 23,082 26,000 10,005 26,000 0%
Copy Machine Lease 3,000 3,099 3,000 1,549 3,000 0%
Repairs/Maint.- Equipment 2,000 729 2,000 0 2,000 0%
Office Expense 14,000 13,829 14,000 5,767 14,000 0%
Newsletter 4,000 3,330 4,000 0 4,000 0%
Postage 11,000 9,530 11,000 6,052 12,000 9%
Printing 2,000 1,446 2,000 937 2,000 0%
Insurance - Flood/General 3,000 1,868 3,000 1,000 3,000 0%
Loss Prevention Expense 22,000 18,821 22,000 4,799 22,000 0%
Marketing & promotion 4,500 4,423 4,500 90 4,500 0%
Meeting Expense 24,100 17,764 24,100 10,690 24,100 0%
Miscellaneous Expense 2,500 5,266 2,500 2,635 2,500 0%
Training/Seminar Presentation 6,000 0 6,000 0 6,000 0%
Web Site Maintenance 8,800 2,250 6,800 0 6,800 096
Hurricane Expense 0 1,811 0 769 0 096
Non- Budget -Board Approval 0 868 0 0%
Total Operating Expense 350,975 323,273 353,330 185,588 353,329 0%
Total Admin. Budget
1,059,706 991,851 1,160,168 574,181 1,224,209 6%
Computer Replacement Reserve 7,000 7,000 7,000 7,000 15,000
Auto Replacement Reserve 24.000 24.000 24.000 24.000 30.000
Admin Budget with Reserves 1,09 0,706 1,022,861 1,191,169 j 605,181 1,269,209 il
J
Group Helath Admin. Transfer - 116124.00
Admin Budget with Gr. Hith. Credit 1,090,706 1,022,851 1,311,169 605,181 1,153,086 -12%
Insurance Consultant 0 0 120,000 40,000 0
OPERATING EXPENSE
Legal fees
Audit fees
Actuarial Study
Members' Supplies & Misc.
Trustee E & 0 Insurance
Total Health Operating Cost
Health Transfer Cost:
Personnel
General Expense
Total Health Transfer Cost
Total Admin. Budget
Public Risk Management
Of Florida
Group Health Trust
Proposed Administrative Budget
FY 2006 -2007
2004/05 2004 /05 2005/06 03/31 /2006 2006/2007
Budget Actual Budget Actual Proposed
Budget
8,000 0 8,000 0 8,000
12,000 13,000 12,000 7,170 14,000
2,500 2,200 2,500 2,500 2,500
3,000 252 3,000 6 3,000
15,000 0 15,000 0 15,000
40,500 15,452 40,500 9,676 42,500
58,310 58,310 62,525 31,263 89,511
25,578 25,578 25,798 12,899 26,613
83,888 83,888 88,323 44,162 116,124
124,388 99,340 128,823 53,838 158,624
Transfer to be calculated at 17.5% of applicable salary and 10.0% of applicable operating expenses.
Salarles/Benefits
159,265 Exec. Director
110,005 Asst. Exec Director ✓
88,729 Accountant
95,823 UP Consultant
57.871 Admin. Asst.
511,493
17.5%
89,511 Personel Transfer
Operating:
3,000
30,000
2,000
1,500
30,000
72,129
3,600
18,000
0
0
26,000
3,000
2,000
14,000
12,000
2,000
3,000
4,500
24,100
2,500
6,000
6.800
266,129
10.0%
28,613
Auto Expense
Travel Expense
Assoc Memberships
Dues/Subscriptions
Educ/Train/Conf
Office Lease
JanitoriaUCleaning
Office/Computer Equipment
Electric
Trash Disp/Water
Telephone
Copy Machine Lease
Repairs/Maint- Equipment
Office Expense
Postage
Printing
Insurance- Flood/General
Marketing & promotion
Meeting Expense
Misc. Exp.
Training /Seminar Presentation
Web Site Maintenance
116,124 = 2005/06 Transfer
9,677 = Monthly Transfer
2006/07 Salary Budget
EXECUTIVE DIRECTOR
2005 -2006 8% Increase 2006 -2007
Current Proposed Proposed
Salary 115,602 9,248 124,850
Payroll Taxes 8,844 708 9,552
Pension / ICMA 14,087 1,122 15,209
Health Insurance 7,614 1,142 8,756
Life Insurance 832 fi 192
Totals 146,979 12,286 159,265
ASST. EXECUTIVE DIRECTOR
2005 -2006 6% Increase 2006 -2007
Current Proposed Proposed
Salary 74,453 4,467 78,920
Payroll Taxes 5,695 342 6,037
Pension / FL Retirement 5,830 349 6,179
Health Insurance 16,159 2,424 18,583
Life Insurance an 6 286
Totals 102,407 7,598 110,005
ACCOUNTANT
2005 -2006 6% Increase 2006 -2007
Current Proposed Proposed
Salary 58,433 3,506 61,939
Payroll Taxes 4,470 268 4,738
Pension / FL Retirement 4,575 275 4,850
Health Insurance 14,763 2,214 16,977
Life Insurance 12 m5
Teals 82,453 6,276 88,729
CLAIMS & ADMIN. ASSISTANT
2005 -2006 6% Increase 2006-2007
Current Proposed Proposed
Salary 33,141 1,988 35,129
Payroll Taxes 2,534 152 2,686
Pension / FL Retirement 2,595 156 2,751
Huth Insurance 14,763 2,214 16,977
Life Insurance im 7 127
Totals 53,153 4,518 57,671
SR. LOSS PREV. CONSULTANT
2005- 2006 6% Increase 2006-2007
Current Proposed Proposed
Salary 80,230 4,814 85,044
Payroll Taxes 6,137 368 6,505
Pension / FL Retirement 6,282 377 6,659
Health Insurance 7,614 1,142 8,756
Life Insurance 272 16 288
Totals 100,535 6,717 107,252
LOSS PREV. CONSULTANT
2005 -2006 6% Increase 2006 -2007
Current Proposed Proposed
Salary 71,696 4,302 75,998
Payroll Taxes 5,484 329 5,813
Pension / FL Retirement 5,614 337 5,951
Health Insurance 16,159 2,424 18,583
Life Insurance 258 15 273
Totals 99,211 7,407 106,618
UP ADMINISTRATIVE ASSISTANT -I 2005 -2006 6% Increase 2006 -2007
Current Proposed Proposed
Salary 34,403 2,064 36,467
Payroll Taxes 2,633 158 2,791
Pension / FL Retirement 2,694 161 2,855
Health Insurance 4,600 690 5,290
Life Insurance 124 7 131
Totals 44,454 3,081 47,535
UP CONSULTANT -EMP. PRACTICES 2005 -2006 6% Increase 2006 -2007
Current Proposed Proposed
Salary 65,000 3,900 68,900
Payroll Taxes 4,590 275 4,865
Pension / FL Retirement 4,698 697 5,395
Health Insurance 14,284 2,143 16,427
Life Insurance 2 1.2 236
Totals 88,795 7,028 95,823
CLAIMS MANAGER
2005 -2006 6% Increase 2006 -2007
Current Proposed Proposed
Salary 57,169 3,430 60,599
Payroll Taxes 4,374 262 4,636
Pension / FL Retirement 4,476 269 4,745
Health Insurance 14,366 2,155 16,521
Life Insurance 212 LI 5
Totals 80,597 6,129 86,726
2005 -2006 6% Increase 2006 -2007
Current Proposed Proposed
Total Officer Salary 115,602 9,248 124,850 8%
Total Office Salary 474,525 28,472 502,997 6%
Total Payroll Taxes 44,761 2,863 47,624 6%
Total Retirement 50,851 3,742 54,593 7%
Total Officer Hhh Ins 7,614 1,142 8,756 15%
Total Office Hlth Ins 102,708 15,406 118,114 15%
Total Officer Life Ins 832 67 899 8%
Total Office Life Ins 1.691 101 1.792 6%
Total Payroll Expense 798,584 54,013 859,625 8%
Total Long Term Disab Ins
Total Staffing Expense
8.255 3.000 11.255 36%
806,839 57,013 870,880 8%
2006/07 Budget Expenses
Legal Fees
Anticipated need for legal advice - public meetings, by -laws
Sunshine Law, etc. 50% Decrease
6,000
Pre - defense - Legal 5,000
Member usage & retainer fee for A.N.B.
33% Decrease
Audit Fees 29,000
Yearly CPA audit & related legal & printing expenses
6% Decrease
Acturlal Study 14,000
Yearly actuarial study & report
No increase.
Appraisal Expense 5,500
Software & related updates for members
120% Increase
Auto Expense 3,000
General maintenance & repairs - Oil changes,
Tune -ups, Tires & Car wash, MA Coverage.
No Increase
Travel Expense
Gas, Lodging, Meals, Alr fare
Approx. 25% Exec. Dir., 60% Loss Prev.,15% Claims
5% Increase
30,000
Association Memberships 2,000
Annual Renewals - Includes professional dues/memberships
33% Decrease
Dues / Subscriptions 3,200
Annual Renewals - Includes office & trade publications
No Increase - Allows for subscriptions to selected local
newspapers of members.
28% Increase
Education / Training / Conference
National PRIMA - (2) - $6,000 State PRIMA - (4) - $2,000
PRIMA -Pool Trustees - (7) - $11,000 AGRIP -Pool Admin. - (1) - $2,000
Amer. Soc. of Safety Engineers - (2) - $4,000 FPPA - $2,000
20% Increase
30,000
Office Lease 72,129
Increase per lease agreement percentage
Janitorial / Cleaning 3,600
Weekly cleaning service, pest control & carpet shampoo
No increase
Office / Computer Equipment 18,000
Software, Strato Net Internet Connection
Web Site Design, System maintenance.
No increase
Electric
Office electricity expertise
Combined with rent expense
Water / Trash
City water, sewer & trash collection
Combined with rent expense
0
0
Telephone
Phone system hardware rental, Three cell phones,
Local service & ISDN & Long Distance service with incoming
Toll -free (800) service
No increase
Copy Machine Lease & Supplies
No increase.
26,000
3,000
Repairs/Maint - Equipment 2,000
Computer & related equipment repair + misc. "handy-
man" office repairs
No increase.
Office Expense 14,000
General office supplies, binders, paper products,etc.
No increase.
Newsletter 4,000
Quarterly newsletter for members, associates & prospects
No increase.
Postage 12,000
Pitney Bowes rental, postage, FedEx, etc.
9% Increase
Printing 2,000
Invoices, letter head, envelopes, etc.
No increase.
Insurance-Flood/General
Office flood, travel, liability, etc.
No increase
Loss Prevention Expense
Training videos & testing equipment
Computer Projection Equipment
Loss Prevention Programs
No increase
Marketing & Promotion
Member retention/Prospect Expenses
Annual Conference promotional items
No increase
Meeting Expense
4 - Quarterly Board Meetings -Room, equip., breakfast
and luncheon for all members - $7,400
4 - Executive Committee Meetings - Meeting room & refreshment - $2,200
3 - Committee Meetings - Meeting room & refreshment - $1500
1 - Underwriters Meeting - $13,000
No increase
3,000
22,000
4,500
24,100
Miscellaneous Expense 2,500
Of -site storage & incidental expense & fees
No increase
Training/Seminar Presentation 6,000
Sexual Harassment, Claims Training, Legal Seminars, etc.
No increase.
Web Site Maintenance
Annual AGOS contract for web site hosting
No increase.
Total Operating Expense:
Auto Replacement Reserve
Four Vehicles @ $7,500
Computer Replacement Reserve
Total Replacement Expense:
6,600
3533.329
30,000
9,000
3900
Officer Salary
8% increase from P & C Pool
Office Salary
8% increase
Payroll Taxes
Applicable percentage based on saleries
144,410
516,077
47,624
Employee Retirement 54,593
12.13% of salary amount - officer
7.83% of salary amount- office
Officer Health Insurance
Applicable Coverages based on a 15% increase
Office Health Insurance
Applicable Coverages based on a 15% Increase
Officer Life Insurance
Applicable rate based on two times salary
Office Life Insurance
Applicable rate based on one times salary
Long Term Disability
Applicable rates based on age & salary
8,756
118,114
899
1,792
11,255
Total Salary Compensation: 903,520
(32,640) " Less Health Compensation
Total Personnel Expense: 870.880
Total Expense with Reserves: 1.263.209
" Officer compensation direct from the Health Trust is not an expense to the
P & C Pool, but is provided to show total compensation paid to participants.
2006
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PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
June 22, 2005
REGULAR AGENDA SUMMARY
5. Broker's Report Andy Cooper
A. Market Trends & Outlook for 2006/07
B. Meeting with Underwriters
C. Steps Taken to Renew PRM's Insurance
6. Election of Officers John Litton
The term of office for Chairperson and Treasurer will expire 9- 30 -06.
Elections will be held for the 2 -year term, beginning 10 -1 -06.
Executive Committee:
John Litton, Chairperson - October 2003 -2006
Lester Baird, Vice Chairperson — October 2005 -2007
Mike Sheppard, Treasurer — October 2003 -2006
Jeff Sutton, North Representative, October 2005 -2007
Robbie Chartier, South Representative, October 2005 -2007
Chairperson
Treasurer
CANDIDATE FOR CHAIRPERSON:
JOHN C. LITTON
John is currently serving as City Manager for the City of Lake Mary.
He has also been employed by the City of Winter Park as Assistant
City Manager /Personnel Director and by the Fort Pierce Utilities
Authority as Director of Employee Relations.
Mr. Litton grew up in Idaho and worked on Capital Hill for Senator
Frank Church while attending the University of Maryland where he
earned a Bachelor of Arts Degree majoring in Political Science.
Following honorable discharge from the United States Air Force in
1970, Mr. Litton embarked on a career in government that has been
rewarding. His training and experience have brought many
professional awards and leadership positions that are proudly
included in his biography.
CANDIDATE FOR TREASURER:
WILLIAM A. (MIKE) SHEPPARD, 01
Mike is currently serving as the Deputy Director of Finance for the
City of Eustis. He has been employed in both the public and private
sectors since his honorable discharge from the U. S. Army in 1974.
Mr. Sheppard's private sector experience (11 years) includes two
CPA firms; construction and franchise; real estate and his
government career began as a Tax Auditor for the City of Fort Collins.
Mr. Sheppard, a native Floridian, grew up in Colorado and returned to
Florida some 17 years ago. Mike graduated from Metropolitan State
College with a BS in Accounting and received his CPA certification
from the State of Colorado in 1979. Mike also holds a Florida
Government Finance Officer Association certificate since November
1996. Mike is currently serving as the PRM Treasurer. Mike was first
elected to this position in December 1999.
PUBLIC RISK MANAGEMENT OF FLORIDA
BOARD OF DIRECTORS MEETING
June 22, 2006
REGULAR AGENDA SUMMARY
7. Legal Update Jeffrey Weiss, Esquire
Mr. Weiss will review the latest ruling concerning employees "regarded as
disabled" being entitled to an accommodation under the Americans with
Disabilities Act (ADA). See attachment.
8. Board Member Items
Public Comment: State full name and address. Discussion must be limited to a maximum of
five (5) minutes per person.
Adjournment
Are "Regarded As Disabled" Employees
Entitled to An Accommodation Under the
ADA?
The Americans with Disabilities Act (ADA) requires, among other things, that an employer provide a
reasonable accommodation to a qualified disabled employee, if the employee needs the accommodation to
perform the essential functions of his or her job. However, the federal appellate courts are divided on the
issue of whether an employee who is merely regarded as disabled is entitled to an accommodation. The U.S.
Supreme Court has declined to address this issue. Currently, the First, Third, Tenth, and Eleventh Circuits have
held that an accommodation is required, while the Fifth, Sixth, Eighth and Ninth Circuits have held that there is
no such duty. The Second, Fourth, and Seventh Circuits have not decided the issue.
An employee is "regarded as" disabled if the employer mistakenly believes that he or she has an impairment that
substantially limits a major life activity, when in fact either the impairment is not so limiting, or the employee has
no impairment at all. An employee can show that he or she is "regarded as" disabled either by direct evidence,
such a supervisor's statement that the employee is disabled, or by indirect evidence, such as an employer's decision
that the employee's medical condition renders him or her unable to perform any job in the employer's facility
despite a doctor's note to the contrary. Most courts that have addressed the issue have held that an employee is
not "regarded as" disabled merely because the employer has voluntarily provided an accommodation.
The most recent case to find that an employer must accommodate an individual who is "regarded as" disabled is
D'Angelo v. ConAgra Foods, Inc., issued by the Eleventh Circuit. In this case, the plaintiff had vertigo, a condition
causing extreme dizziness and nausea. The plaintiff's job duties required her to stare continually at objects
moving down a conveyor belt, which triggered bouts of vertigo. The plaintiff produced a poorly drafted doctor's
note explaining that, due to the risk of falling because of her vertigo, she should avoid assignments requiring her
to "look at moving objects." Based on this note, the employer decided that the plaintiff could not work anywhere
in the plant, because it was filled with all types of moving equipment, and terminated her employment. The trial
court held that the plaintiff was not actually disabled because she was not substantially limited in the major life
activity of working. It also held that, while the plaintiff may have been "regarded as" disabled, someone who is
merely "regarded as" disabled is not entitled to a reasonable accommodation. Accordingly the trial court granted
summary 4udRment for the employer.
The Eleventh Circuit reversed: on the issue of reasonable accommodation. The court held that the plain language
of the ADA contains. no exception to the reasonable accommodation requirement for individuals who are
"regarded as" disabled. The Eleventh. Circuit rejected the, reasoning of other circuits, which have refused to
find a duty to accommodate "regarded -as" individuals because doing so may produce "bizarre results," and
give preferential treatment to some, but not all, impaired individuals. The Eleventh Circuit pointed out that:
courts must not legislate;. "'regarded as" individuals are disabled within the meaning of the statute; and there is
no irrational preference;forimpaired individuals who are "regarded as" disabled because they are not similarly
situated to impaired:employees who are not regarded as disabled.
Courts have certainly:: taken ;; some winding paths when .. interpreting the ADA, but those finding a duty to
accommodate an individual who is only "regarded as" disabled may not have gone down such a strange path after
all The decisions have invofved individuals with genuine medical conditions The. only "truly bizarre ". result
would be forcing an employer.to accommodate a 'regarded as" disabled employee who in fact has absolutely
no medical, condition.: hat situation is unlikely, because such an employee would not need an accommodation
in order to perform tfreesseht of functions Of the job (but such a person might be protected. from other forms of
disabrht)-4iscrirxirnatic ertheless, requests for accommodation; even from employees who do not have
:obviously disablingat�tp&rrnent , should be evaluated carefully with experienced employment counsel