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2006-12-08 BOD MeetingPUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING The Terrace Hotel Lakeland, FL December 8, 2006 AGENDA 10:00 am Call To Order John Litton, Chairperson Consent Agenda 1. Request Approval of September 15, 2006 Board Meeting Minutes 2. Request Approval of Treasurer's Report as of September 30, 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 Director's Report Ross Furry, Executive Director A. Report on Hurricane Losses B. Review of Action Taken at 9 -15 -06 Board Meeting C. Request Board Approval to Utilize Surplus Funds to Offset Total Cost of Property Premiums D. Termination of Arthur J. Gallagher Brokerage Service Agreement E. Appointment of World Risk Management, L.L.C. for Insurance Brokerage & Risk Management Services 4. Insurance Advisor's Update 5. Broker's Report A. Overview of Renewal Terms & Conditions B. Carrier Requirements i. 15 -Seat Passenger Vans ii. Dams iii. Sexual Harassment/Sexual Abuse Policies & Procedures A. Property Coverage 10/1/06 Glenn Tobey, Tobey & Associates Andy Cooper, A.J. Gallagher & Co. 6. Legal Update Donovan Roper, Esquire A. Renewal of Pinellas County EMS Contract 7. Board Member Items Public Comment: State full name and address. Discussion must be limited to a maximum of five (5) minutes per person. Adjournment Luncheon immediately following PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 8, 2006 CONSENT AGENDA SUMMARY 1 Request Approval of September 15, 2006 Board Meeting Minutes Background: Meeting Minutes attached 2. Request Approval of Treasurer's Report as of September 30, 2006 Background: Financial Reports Attached Board Action: 1 Approved Denied Deferred Other 1. BOARD MEETING MINUTES 9/15/06 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING Terrace Hotel, Lakeland, FL September 15, 2006 MINUTES Attendance: Kathy Bennett, City of Avon Park; Susan Lee, Town of Belleair; Vivian Hunter, City of Belle Glade; Steve Baumgartner, City of Brooksville; Ted Byrd, City of Clewiston; Faith Miller, City of Deltona; Jerry Hill, DeSoto County BOCC; Mike Sheppard, City of Eustis; Delores Avery, City of Fort Meade; Bob Giesler, Glades County BOCC; Jennifer Valdes, City of Gulfport; Jane Long, Hardee County BOCC; Lester Baird, Hendry County BOCC; Freddie Carino, Highlands County BOCC; Martin Schless, City of Indian Rocks Beach; Nancy Beelman, Town of Kenneth City; Lisa Smith, City of LaBelle; Marcel Blais, Town of Lady Lake; John Litton, City of Lake Mary; Sandra Davis, City of Lake Wales; Bob Zega, Lee County Port Authority; Fred Moody, Levy County BOCC; Carol Rogers, City of Longwood; Jeff Sutton, City of New Port Richey; Steve Gailbreath, City of North Port; Donna Reynolds, City of Okeechobee; Robbie Chartier, Okeechobee County BOCC; Connie Collins, City of Oviedo; Jeanie Perkins, City of Pahokee; Phil Wickstrom, City of Punta Gorda; Martin Lange, Sarasota/Manatee Airport Authority; Mike Eastman, City of Sebring; Ron Graydon, South Florida Conservancy; James Graham, City of South Pasadena; Gary Behnke, City of St. Pete Beach; Crissy Bublitz, City of Tavares; Woody Hubbard, City of Temple Terrace; James Braddock, City of Wauchula; Frank Gilbert, City of Winter Garden; Sharry Boldt, City of Zephyrhills Absent: City of Crystal River, Hamilton County BOCC, Holmes County BOCC, Town of Lady Placid, Town of Longboat Key, City of Moore Haven, City of Port Richey, City of Safety Harbor, Sun `n Lake of Sebring. Tampa Bay Water John Litton, Chairperson, called the meeting to order at 10:06 a.m. with a super majority present. Consent Agenda 1. Request Approval of June 22, 2006 Board Meeting Minutes. 2. Request Approval of Treasurer's Report as of June 30, 2006. 3. Ratify Election of Officers from June Board Meeting. Motion was made by Carol Rogers and seconded by Nancy Beelman to approve the consent agenda. The motion was unanimously approved. Regular Agenda (out of sequence) 11 Appointment and Contract Approval of Roper & Roper, P.A. as General Counsel — The Executive Director and Executive Committee recommend the appointment of Roper & Roper as PRM General Counsel. Mr. Furry advised that Jeffery Weiss was supportive of Donovan Roper and the change in counsel. Motion was made by Lester Baird to retain Roper & Roper as PRM General Counsel for 10/1/06 to 9/30/07, or as may be extended by mutual consent of the parties. The motion was seconded by Carol Rogers, and it was unanimously approved. 4. Insurance Advisor's Report A. 2006/07 Program Renewal Recommendations — Mr. Tobey advised a $100 million limit on property and $100 million for wind was secured for renewal. Thirty to forty property global carriers were contacted. Three basic structures are being presented in each Member's packet for renewal — a) 12 month; b) 18 month; c) 18 month using surplus funds to offset 6 months premium from 10/1/07 to 4/1/08. All carriers except one can provide 18 -month coverage. (Representative from City of Punta Gorda entered the meeting at 10:17 a.m.) For a 12 -month renewal, the BRIT proposal showed an overall increase of 44.6% plus exposures. The MARP (Munich America Risk Partners) proposal for 12- months was 32 %. On an 18 -month program, the Pool would save over $1 million with the MARP program and be in a better property positioning for more attractive pricing with a renewal date of 4/1. Mr. Tobey's recommendation was to adopt the 18 -month MARP program and utilize surplus funds to offset the cost for 18 months. 5. Broker's Report A. 2006/07 Renewal Presentation — Renewal proposals were distributed to members. Mr. Cooper reviewed three different renewal options — a) 12 month — flat renewal; b) 18 month renewal; c) 18 month renewal with PRM surplus funds to offset cost for 6 months from 10/1/07 to 4/1/08. The broker recommended approval of the 18 -month MARP proposal. It was noted that property coverage is only available for a 12 -month period. The broker advised property increased 423% from last year. The wind deductible on excess property has increased from 2% to 5 %. The 4% excise fees from Bermuda carriers and the Citizens assessment of 6.84% equal one -third of last year's property premium. Workers' Compensation increased 7% as a result of exposure increases. The WC rate remained flat. Responding to concerns on property coverage for 12 months versus an 18- month program for other lines of coverage, the Executive Director advised that the property market would be reviewed in April, 2007. The current policy could be cancelled and rewritten for 12 months. If the market remains unchanged, a 2 6 -month policy would be obtained in October 2007, whereby all lines of coverage will renew on 4/1. The City of Deltona rendered their intent to withdraw from the Pool on 9/30/07. Faith Miller questioned the 18 -month program's affect on the City. Attempts will be made to secure a refund from the carriers for the final six months. With Palm Beach County now providing police and firefighter services for the City of Belle Glade and the City of Pahokee, the broker advised that payroll reductions were made accordingly for Workers' Comp. Terrorism is covered but it excludes NBCR (nuclear, biological, chemical and radiological). The exclusion does not apply to Workers' Compensation. Any building in excess of $50 million is excluded from property terrorism coverage. The broker reviewed significant changes on property coverage. The package contains a 2% windstorm deductible. Excess property windstorm deductible is 5% on values for affected building, contents, EDP, and property in the open. Carriers applied margin clauses that vary from 5% to 20 %. If property is not listed on the schedule of values, it is not covered. Flood coverage is currently $50 million but may be reduced to $40 million. Two Probable Maximum Loss (PML) models were prepared for PRM. Without surge demand, it was estimated PRM would suffer a $58.5 million loss every 250 years. With demand surge, the estimated loss increased to $68.8 million. These estimates excluded Lee County Port Authority (LCPA). Adding in LCPA's $330 million property values, PRM was predicted to sustain $84 million in windstorm Toss every 250 years. (Representatives from the City of Belle Glade and the City of Clewiston entered the meeting at 10:50 a.m. and 10:58 a.m., respectively.) 6. Amendment to By -Laws A. Aggregate Excess of Loss Fund Insurance (Optional vs. Mandatory) — The present By -Laws mandate the purchase of aggregate excess insurance. This year the Executive Director and Executive Committee are recommending to forego the purchase of aggregate excess insurance, requiring changes under Articles 10.2. and 10.4. for the option to purchase aggregate excess insurance. Additionally, under Article 10.4., new language was needed to provide a method of allocating equitable payment of claims in the event a loss exceeds coverage limits. Legal Counsel has sanctioned the proposed changes. Frank Gilbert made a motion to approve the wording changes under Articles 10.2. and 10.4. Mr. Baird seconded the motion and it was unanimously approved. 3 7. Approval to Not Purchase Aggregate Excess of Loss Fund Insurance - The Executive Director explained that, the recommendation to restrict $2,250,000 of surplus funds for payment of claims above the Loss Fund, the Pool essentially is providing its own aggregate excess insurance. The Executive Committee, along with the Executive Director, recommended Board approval to not purchase aggregate excess insurance this year. Jane Long made a motion to not purchase aggregate excess insurance for this coverage term. Marcel Blais seconded the motion, and it was unanimously approved. 8. Approval to Restrict Surplus Funds for Losses in Excess of Loss Fund — On an 18- month term of coverage, the Executive Director and the Executive Committee recommended that the Board approve the restriction of $2,250,000 from surplus for payment of claims in excess of the Loss Fund. Ted Byrd made a motion to restrict $Z250,000 from surplus for losses in excess of Loss Fund. Robbie Chartier seconded the motion, and it was unanimously approved. Motion was made by Bill Vance to accept the 18 -month MARP renewal proposal. Delores Avery seconded the motion, and it was unanimously approved. 9. Use of Surplus Funds to Carry Members Premiums for 10/1/07 to 3/30/08 Due and Payable 10/1/06 to Carriers — The Executive Director and Executive Committee recommended the funding of $3,250,000 from surplus to assist Members in pro- rated premiums from 10/1/07 to 3/30/08 with repayment at 0% interest. Jeff Sutton made a motion to use surplus funds to assist members in pro -rated premiums. Ms. Long seconded the motion, and it was unanimously approved. 10. Presentation of Allocation Policy for Named Windstorm Losses Excess of Aggregate Policy Limits — Mr. Furry reviewed the draft procedure for equitable distribution of funds in the event a named windstorm exceeds the property limits. Mr. Roper concurred with the need to have a policy in place on handling catastrophic claims and found the proposed policy acceptable. The Executive Director and the Executive Committee recommended adoption of the policy. Motion was made by Fred Canino to approve the Named Windstorm Claim Process Allocation Policy. Mr. Byrd seconded the motion, and it was unanimously approved. 12. Approval of Insurance Advisor Contract — The Executive Director and the Chairperson acknowledged Mr. Tobey's invaluable assistance in securing this year's renewal. In recognition of his service, the A. J. Gallagher - Orlando office has agreed to reduce their revenues from the PRM renewal by $218,000 to fund Mr. Tobey's contract from 10/1/06 to 9/30/07. Mr. Carino made a motion to approve the insurance advisor's contract. Ms. Long seconded the motion, and it was unanimously approved. 4 13. By -Laws Clarification — Mr. Furry clarified By -Law requirements on member withdrawal notice and change in Board Member and Alternate positions. There has been confusion on whether or not a resolution from the governing body is needed in these instances. A. Notice of Intent to Withdraw [Article 4.2.] — A notice is to be sent to the Executive Director, accompanied by a resolution of the governing body. Actual Withdrawal [Article 4.3.] — Written verification from the City Manager, County Administrator, or Board Member to the Executive Director confirming their final decision to remain or withdraw must be received by August 15th. No resolution needed. B. Notification of Board Representatives [Article 6.1.1 — Resolution is not required for notification of Board representatives. The Member's governing body shall appoint the Board Member and Alternate, and a letter from the City Manager or County Administrator to the Executive Director is sufficient for notification. 14. Hurricanes Charley, Frances, Ivan, Jeanne & Wilma A. Claims Status Update — Mr. Furry advised that total claims for Hurricane Wilma have increased to $16 million. 15. Member Notice — Intent to Withdraw 9/30/07 — The Executive Director advised that the City of Deltona has conveyed their intent to withdraw effective 9/30/07. 16. Florida PRIMA Conference — The Conference will be held at the Boca Raton Marriott from October 22 -25. 17. Member Attendance at Board Meetings — The Executive Director provided member attendance for the last year and encouraged more participation at all meetings. 18. Board Member Items A. Establish Meeting Dates for Calendar Year 2007 Proposed dates and locations are: March 9 May 17 August 10 December 14 Terrace Hotel, Lakeland Hilton Resort, Marco Island (annual conference) Terrace Hotel, Lakeland Terrace Hotel, Lakeland Ms. Avery made a motion to accept the meeting dates for 2007. The motion was seconded by Mr. Byrd, and it was unanimously approved. 5 There were no other Board Member items. There was no Public Comment. Meeting adjourned at 11:38 a.m. Respectfully submitted, Judith A. Hearn Assistant Executive Director Secretary to PRM Board JAH:smb O :\Judy\BD MTGS\Board of Directors Meeting 9 -15-06 6 2. TREASURER'S REPORT AS OF 9/30/06 PUBLIC RISK MGMT OF FL BALANCE SHEET SEPTEMBER 30, 2006 CURRENT ASSETS PETTY CASH $ 75.00 OPERATING -SO TRUST 31,859,474.30 INVESTMENT TRANSFER ACCOUNT 3,936.07 A/R MEMBERSHIPS (68,100.41) A/R TRADE 93.46 A/R CONSULTANT FEE- MEMBERS 3,714.88 A/R- REINSURANCE RECOVERIES (28,364,659.32) A/R OTHER 141.38 A/R -STATE W/C ASSESSMENT (146,793.89) 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 13,238,936.49 SOUTHTRUST SECURITIES 529,548.01 TOTAL CURRENT ASSETS 18,097,183.18 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 132,806.06 ACCUMULATED DEPRECIATION (17,140.31) TOTAL PROPERTY & EQUIPMENT 158,293.75 OTHER ASSETS PREPAID INSURANCE 23,171.45 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 513,052.79 TOTAL ASSETS $ 18,768,529.72 LIABILITIES ACCOUNTS PAYABLE $ (121,709.52) A/P - GALLAGHER/RISX -FACS (1,078,763.91) FEDERAL TAXES PAYABLE (806.74) A/P EMP LIFE INS (461.06) A/P - OTHER (15,159.51) A/P - LOSS PREVENTION 14,933.73 ACCRUED VACATION 41,121.55 ADVANCE FROM REINSURER 4,341,369.26 CLAIMS PAYABLE - 1987 -89 48,053.25 CLAIMS PAYABLE - 1989 -90 20,000.00 CLAIMS PAYABLE - 1990 -91 13,058.22 CLAIMS PAYABLE - 1991 -92 6,241.63 CLAIMS PAYABLE - 1992 -93 (10,278.50) CLAIMS PAYABLE - 1993 -94 (24,081.66) CLAIMS PAYABLE - 1994 -95 28,966.72 CLAIMS PAYABLE - 1995/96 2,274.13 CLAIMS PAYABLE - 1996/97 54,363.67 CLAIMS PAYABLE - 1997/98 (147,769.13) CLAIMS PAYABLE - 1998/99 (178,696.40) CLAIMS PAYABLE - 1999/00 (382,547.38) CLAIMS PAYABLE - 2000/01 (800,349.05) CLAIMS PAYABLE - 2001/02 (715,448.61) CLAIMS PAYABLE - 2002/03 2,414,124.34 CLAIMS PAYABLE - 2003/04 (16,217,697.06) CLAIMS PAYABLE - 2004/05 4,304,695.82 CLAIMS PAYABLE - 2005/06 (10,246,365.24) TOTAL LIABILITIES (18,650,931.45) CAPITAL FUND BALANCE REVENUE IN EXCESS OF EXPENSE TOTAL CAPITAL TOTAL LIABILITIES & CAPITAL PUBLIC RISK MGMT OF FL BALANCE SHEET SEPTEMBER 30, 2006 20,019,391.61 17,400,069.56 37,419,461.17 $ 18,768,529.72 REVENUES MEMBERSHIP ASSESSMENTS INTEREST INCOME REFUND INCOME ADMINISTRATIVE TRANSFER TOTAL REVENUES PUBLIC RISK MGMT OF FL INCOME STATEMENT FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2006 CURRENT MONTH YEAR TO DATE (90,007.80) $ 27,457,651.15 216,456.12 2,111,622.74 0.00 4,980.13 7,791.00 93,492.00 134,239.32 29,667,746.02 EXPENSES OFFICERS' SALARIES 9,541.48 118,236.03 OFFICE SALARIES 35,853.04 462,915.49 PAYROLL TAXES 3,048.81 44,618.74 EMPLOYEE RETIREMENT BENEFITS 5,827.95 50,602.30 HEALTH INSURANCE - OFFICER 587.16 7,045.92 HEALTH INSURANCE - OFFICE 8,093.96 94,713.88 LIFE INSURANCE- OFFICER 71.92 863.04 LIFE INSURANCE - OFFICE 151.28 1,733.04 LTD INSURANCE 925.80 10,900.72 LEGAL FEES 0.00 3,787.34 LEGAL - PRE - DEFENSE 0.00 1,039.50 AUDIT FEES 0.00 26,000.00 ACTUARIAL STUDY 0.00 13,555.45 APPRAISAL FEE EXPENSE 0.00 2,500.00 AUTO EXPENSE 83.18 6,354.58 TRAVEL EXPENSE 4,973.45 57,487.30 ASSOCIATION MEMBERSHIPS 0.00 734.00 DUES & SUBSCRIPTIONS 260.00 2,526.76 EDUCATION/TRAINING /CONFER 900.00 17,873.71 OFFICE LEASE 6,010.67 76,039.91 JANITORIAL / CLEANING 0.00 2,930.00 OFFICE /COMPUTER EQUIPMENT 2,794.00 29,538.79 TELEPHONE 1,918.82 19,829.84 COPY MACHINE LEASE 406.00 2,793.64 REPAIRS & MAINT. - EQUIPMENT 0.00 500.00 OFFICE SUPPLIES 613.35 13,348.82 NEWSLE 11ER 832.50 2,497.50 POSTAGE 1,319.87 10,039.51 PRINTING 0.00 1,344.68 INSURANCE - FLOOD /GENERAL 0.00 1,000.00 LOSS PREV EQUIP & SUPPLIES 5,038.44 15,214.22 MARKETING & PROMOTION 240.00 4,615.78 MEETING EXPENSE 2,943.55 25,385.18 MISCELLANEOUS EXPENSE 384.19 5,358.63 HURRICANE EXPENSE' 0.00 768.92 NON - BUDGET - BOARD APPROVAL 0.00 868.20 GALLAGHER MGMT FEES 102,641.08 1,231,692.96 GALLAGHER EXCESS INSURANCE 727,117.17 8,726,406.04 CLAIMS EXPENSE 87,834.67 1,054,016.04 TOTAL EXPENSES 1,010,412.34 12,147,676.46 REVENUE IN EXCESS OF EXPENSE $ (876,173.02) $ 17,520,069.56 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 Twelve MONTHs ENDING September 30, 2006 MONTHLY MONTHLY Y -T -D Y -T -D TOTAL YEAR ACTUAL BUDGET ACTUAL BUDGET BUDGET 9,541.48 9,633.50 118,236.03 115,602.00 115,602.00 35,853.04 39,642.31 462,915.49 467,041.05 467,041.05 3,048.81 3,563.30 44,618.74 42,092.94 42,092.94 5,827.95 4,029.19 50,602.30 47,916.96 47,916.96 587.16 634.50 7,045.92 7,614.00 7,614.00 8,093.96 8,058.64 94,713.88 96,537.00 96,537.00 71.92 69.37 863.04 832.00 832.00 151.28 188.56 1,733.04 2,096.04 2,096.04 925.80 937.88 10,900.72 11,255.00 11,255.00 64,101.40 66,757.25 791,629.16 790,986.99 790,986.99 GENERAL EXPENSES LEGAL FEES 0.00 1,000.00 3,787.34 12,000.00 12,000.00 LEGAL - PRE - DEFENSE 0.00 625.00 1,039.50 7,500.00 7,500.00 AUDIT FEES 0.00 2,583.37 26,000.00 31,000.00 31,000.00 ACTUARIAL STUDY 0.00 1,166.63 13,555.45 14,000.00 14,000.00 APPRAISAL FEE EXPENSE 0.00 208.37 2,500.00 2,500.00 2,500.00 AUTO EXPENSE 83.18 250.00 6,354.58 3,000.00 3,000.00 TRAVEL EXPENSE 4,973.45 2,375.00 57,487.30 28,500.00 28,500.00 ASSOCIATION MEMBERSHIPS 0.00 250.00 734.00 3,000.00 3,000.00 DUES & SUBSCRIPTIONS 260.00 208.37 2,526.76 2,500.00 2,500.00 EDUCATION/TRAINING /CONFER. 900.00 2,083.37 17,873.71 25,000.00 25,000.00 OFFICE LEASE 6,010.67 5,985.87 76,039.91 71,830.00 71,830.00 JANITORIAL / CLEANING 0.00 300.00 2,930.00 3,600.00 3,600.00 OFFICE /COMPUTER EQUIPMENT 2,794.00 1,500.00 29,538.79 18,000.00 18,000.00 TELEPHONE 1,918.82 2,166.63 19,829.84 26,000.00 26,000.00 COPY MACHINE LEASE 406.00 250.00 2,793.64 3,000.00 3,000.00 REPAIRS & MAINT. - EQUIPMENT 0.00 166.63 500.00 2,000.00 2,000.00 OFFICE SUPPLIES 613.35 1,166.63 13,348.82 14,000.00 14,000.00 NEWSLETTER 832.50 333.37 2,497.50 4,000.00 4,000.00 POSTAGE 1,319.87 916.63 10,039.51 11,000.00 11,000.00 PRINTING 0.00 166.63 1,344.68 2,000.00 2,000.00 INSURANCE - FLOOD /GENERAL 0.00 250.00 1,000.00 3,000.00 3,000.00 LOSS PREV EQUIP & SUPPLIES 5,038.44 1,833.37 15,214.22 22,000.00 22,000.00 MARKETING & PROMOTION 240.00 375.00 4,615.78 4,500.00 4,500.00 MEETING EXPENSE 2,943.55 2,008.37 25,385.18 24,100.00 24,100.00 MISCELLANEOUS EXPENSE 384.19 208.37 5,358.63 2,500.00 2,500.00 TRAINING /SEMINAR PRESENTATION 0.00 500.00 0.00 6,000.00 6,000.00 WEB SITE MAINT. 0.00 566.63 0.00 6,800.00 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 28,718.02 29,444.24 343,932.26 353,330.00 353,330.00 TOTAL OPERATING EXPENSES 92,819.42 96,201.49 1,135,561.42 1,144,316.99 1,144,316.99 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 8, 2006 REGULAR AGENDA SUMMARY 3. Executive Director's Report Ross Furry A. Report on Hurricane Losses — See Attachment B. Review of Action Taken at 9 -15 -06 Board Meeting The following items were discussed and approved at the last Board Meeting and are provided for information only: • By -Laws Amendment - Aggregate Excess of Loss Fund Insurance (Optional vs. Mandatory) • Approval to Not Purchase Aggregate Excess of Loss Fund Insurance • Approval to Restrict Surplus Funds for Losses in Excess of Loss Fund • Use of Surplus Funds to Carry Members Premiums for 10/1/07 to 3/30/08 Due and Payable 10/1/06 to Carriers • Presentation of Allocation Policy for Named Windstorm Losses Excess of Aggregate Policy Limits • Appointment and Contract Approval of Roper & Roper, P.A. as PRM General Counsel • Approval of Insurance Advisor Contract 3.A. REPORT ON HURRICANE LOSSES STATUS AS OF 11/22/06 PRM - Hurricane Claim Summary - 11 -22 -06 Reserves 42,696,896.87 O 6 co co 0 cY) 342.93 7,153,847.14 18,256,381.94 Paid to Date 36,093,349.03 379,185.00 342.93 5,835,261.48 8,516,438.41 Remaining Open ti T O M Total Claims 1000 cy, CV LO T Charley 08 -13 -04 Frances 09 -05 -04 Ivan 09 -15 -04 Jeanne 09 -26 -04 Wilma 10 -24 -05 PRM - Hurricane Charley D/L 08 -13 -04 Daductihlan 1 m v CO N 734,1721 O 179,4871 1,438,6141 755,0361 j v 0) 695,8531 233,8821 198,0511 CO CD r= N 45,9201 '4' 599,0101 793.1331 228,950 248,3921 119,8051 00 o) CND) p 144,738,280 O 0 0 I- C) 235,400 8,974,470 0 I,- M 03 I� 37,751,716 45,215,077 34,792,479 o 0 r- 00)) CD 9,902,521 12,683,375 2,295,968 O 0 N 29,950,500; COO N i 0 M 11,447,484 0) 0 - NI" r 0 M 00) 0) 516,588,7831 0.00 5,300,402.89 000 0 0 O 811,204.26 0 O 100.0 COD - r T.. O 377, 893.72 52,501.57 000 0 0 0.00 42,823.72 000 0 0 O O 00 0 6,603,547.841 Total Experience 1, 344, 589.74 13,625,522.60 0 10Nc0CCO M N -00 0 e N 00 CO 7,145,458.25 X0))000 X70 OD 0)) O O ) r- M 1,619,491.93 1,406,160.37 010 OMe CO C00 402,019.72 7,358,625.98 101,498.68 8,550.00 O N 00) N 42,699,246.87 Payments 1,344,589.74 e- O I"- Or0 odcitc .r.' t() N 01 O L0N ,- O ,- 3,743,655.831 7,145,458.25 (D 0) (0000006 W t 0) O •r 3,720,688.12 1 — 0 N000i0Imo 10co_0 co Cr) et O N 01 e- e- 0 00 co C6 N CO -N %-- N fV L() O e- ct M r- 101,498.68 O O O 290,244.06 36,093,349.031 233 •- r CO 0 r O 162 O 0) MD N e- I- 0 T O N 40 78 O) r- 18 29 928 # Oven s 0 (0 0 0 0 M 0 C) CO CO 0 0 0 0 01 O 72 Total Claims 233 CO r tO CD O 0 0) CO O N 74 22 50 O N 06 017 0) e- N 29 1000 0) CO N CA CO O NI- w-- 'City of Cape Coral Desoto County Hendry County ICity of North Port Lee County Port Authority ICity of Punta Gorda Hardee County City of Sebring ICity of Wauchula City of Avon Park City of Fort Meade City of Winter Garden (Public Risk Management Highlands County City of Lake Wales City of Oviedo City of Deltona Sun 'n Lakes of Sebring 0 t- Balance of Excess Funds: $ 1 Status as of 11/22/06 PRM - Hurricane Frances D/L 09 -05 -04 Deductibles 1 CO 0 N N 220,4001 (0 (0 (0 153,1001 74,8261 244,9181 20,7861 436,1441 163,0321 467,3631 0) N (0((00(0 V' 0) N 130,2751 2,528,2251 Building Values Affected 11,398,400 11,020,000 233,151 7,655,000 0 Q) N e- IN- M- 11,417, 926 1,039,300 21,807,200 8,151,600 23,368,141 3,314,495 3,373,440 12, 549, 504 6,513,7861 125,583,233 Remaining Reserves O 0 0 0 0 0 0 0 00'0 0 O 500.10 0.00 0.00 0 O 0.00 0.00 0.00 0 0 500.10 jTotal Experience 0 0 0 0 0000000 0 0 0 0 0 0 0 0 0 1- 0) N Tr 0.00 0.00 O O O O 0 -00 O a)c 0 0 M I- (D M 00 "0 O e- iti DO co a) M Payments 00000 00000 L0619Vt/Zti 00 "0 0.00 0.00 0.00 336,738.10 0.00' 0.00 0.00', O ui 00 0) co d Oe• 0 qt co to O r 91. 9Z cm e- d' 01 N _ L() ,r- # Open 000000e- 0000000 Total Claims' e- r- r- �Mtf)c - 28 15 CM r�C.4N 152 98,185.00) Member Desoto County Lee County Port Authority City of Sebring City of Clewiston City of Avon Park City of Eustis City of Longwood Okeechobee County City of Pahokee City of Belle Glade Town of Lady Lake City of Okeechobee City of Deltona Sun 'n Lake Totals: Balance of excess funds: (1 Status as of 11 -22 -06 PRM - Hurricane Ivan D/L 09 -15 -04 'Deductibles 1 0 co w 44,0001 0.00 Total Experience 342.931 Y3 C d E co a M c`i IS N O V 4t N E Id 0 Total Claims !Excess Fund balance - N/A I Member !Holmes County !Status as of 11 -22 -06 PRM - Hurricane Jeanne D/L 09 -26 -04 Deductibles 182,6041 13,7381 CO e-- co o 1` CO '1' (00(ro v co e- ao CO CCOCCOO - (0 r- N 31,4741 46,3421 830,6521 0 CO Oo O) M 0 0 0 Co N 37,4461 316,1251 41,2401 - COrn y-- 1- rn N-- e- e- 0 CO co- CO O) N 9,100,200 686,900 35,409,2981 321,8001 0 f-- O) Ni- if) oO 185,900 91,900 1,384,740 00 f• co- r- to r e— N- e- CO (N 41,533,600 19,849,0001 000 O co- O Tr.. T- Cr) N N- CO e- 15,806,253 2,061,985 2,081,490 t ( O) O) O) CO Lci e- CO CO N CO v- Remaining Reserves O O 0 00'0 O O cd .- CO e- 100.0 O O O 0.00 000 000 0OO 0.00 1.00 coo OD coo co N (C) M e- e- 0.00 0.00 MO I-- u,0 N. e- e- O •ct' O 0.00 0.00 o O) M e- cO r- N to co e- Total Experience 00 0 0 00 307,478.70 O 0 O 799.85 000 0 Od 0 0 O 0 N 0.00 2,084.00 287,321.86 4,427,260.00 COO L.O. 0 d'0 to 2,446,636.00i 0.00 13,823.88 0.00 0 7,488,022.87 Payments 00'0 00'0 00 1.0 00 0 r- e- O) e- 799.851 0000 0000 0400 CO 0 N 0.00 2,084.00 287,320.86 d' co M 0) O e- O) N M 00'0 89'1755 2,045,460.27 0.00 13,823.88 0.00 O O O 5,835,261.48 1 N 0co.— 0 U 8 1 14 1 Ne- 1 3 34 Oe- the.NissMCO 115 # Open 00ezr0000r -00e- 30 0000000 CD M Total Claims 8 1 18 1 N e- M e- M M 30 9 L6 5 1. 151 CD N CO e- O N Member Glades County Hendry County City of Sebring City of Moore Haven City of Clewiston City of Zephyrhills Town of Kenneth City City of Eustis Town of Belleair City of Crystal River Highlands County Okeechobee County City of Lake Wales Town of Lake Placid City of Pahokee City of Belle Glade City of Okeechobee City of Deltona Sun 'n Lake Totals: Balance of Excess funds: Status as of 11 -22 -06 to d C) m o) G 185.5901 O M T- N I 684.1121 0 4) OC v- c000co CoOt[)(ONCD N r- 01NCDCO(fl � OCC)O CV DO CO 783.3151 %) Or- to 14)4 � N-O(O Q1o)1!) N MO -a) N M N e- OD c) M co- 9,279,500 O ct 000 N r 34,829,659 854,900 OO Tr O� COO (") 65,000' 712,500 12, 074, 741 731,400 30,034,750 39,165, 734 775,3001 M(o( OECD ‘-- e- O+ f 4cp co) � O r- 172,215,571 0.00 28, 000.00 00'0 2.6' l•Z£`£99`8 CD 0 000 CD CD 0 0 CD 0 d' O CO M c) CD CD 0 0 00 37,325.67 CD 0 c CD 0 o CD 0 -o CO CO CO CD 0 9,739,943.53i Total Experience O Tr Oc) CO (o Co CD 10,819,765.95 589,807.161 950.00 238,710.04 2,115,917.34 96,895.32 6,362.62 255, 774.72 00 Or- 1,598,711.94 1,388,573.73 (`no N r c .-- CO 18,256,381.94' Payments 0.001 1,038,183.47 OOCO CD O •-- (.6 1-:I-: r O cF co Co Ns- 0 Co y- O v- U) N 950.00 238,710.04 1,982,232.45 96,895.32 6,362.62 218,449.05 O O O Tr MCC) C) Is '- NN r- co ti CD C60- 0 CA O (0 (0 (o ,-- c (O e- 'ct O Cr) ch (O c- 11) O d N 0 49 85 41 362 # Open 43 0 0 O 0 v o 0 0 0 0 UD o 64 Total Claims 84 4 10 55 17 16 49 85 57 426 (Balance of excess funds: $3,733,561.59 Member Desoto County Glades County Hendry County City of Labelle Lee County Port Authority City of Wauchula City of Moore Haven City of Clewiston South FL Conservancy Highlands County 'Okeechobee County City of Lake Wales City of Pahokee City of Belle Glade a) Y o U To 1- i (o 0 N e= co CO (LO 0 3.B. REVIEW OF ACTION TAKEN AT 9 -15 -06 BOARD MEETING PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING SEPTEMBER 15, 2006 REGULAR AGENDA SUMMARY 6. Amendment to By -Laws A. Aggregate Excess of Loss Fund Insurance (Optional vs. Mandatory) Proposed By -Laws changes: Ross Furry Current By -Law, Article 10.2. Agqreqate Excess Insurance: The Pool will purchase Aggregate Excess Insurance from underwriters of insurance, insurance companies and /or Lloyd's of London, approved by the Board of Directors, or any committee appointed by the Board for such purpose, in such amounts which shall be approved by the Board of Directors and underwriters, based upon but not limited, to the current assets, risk analysis, and loss history of the Pool. The purchase of Aggregate Excess Insurance does not, and is not, intended to waive sovereign immunity under Florida law. Proposed Change to Article 10.2. Appreciate Excess Insurance: The Pool will may purchase Aggregate Excess insurance from underwriters of insurance, insurance companies and /or Lloyd's of London, approved by the Board of Directors, or any committee appointed by the Board for such purpose, in such amounts which shall be approved by the Board of Directors and underwriters, based upon but not limited, to the current assets, risk analysis, and loss history of the Pool. The purchase of Aggregate Excess Insurance does not, and is not, intended to waive sovereign immunity under Florida law. Current By -Law, Article 10.4. Losses: The Risk Management Pool (Loss Fund), the Specific Excess Insurance and aggregate Excess Insurance shall provide payment for covered losses in any one fiscal year for members up to the limits approved by the Board of Directors. Should losses in any one fiscal year extinguish all available funds provided by the Pool then the individual Member or Members whose judgment or settlement of claim has been perfected by Florida law shall be responsible for any additional payment. The Pool shall make payments In the order in which the judgments against the Pool have been entered or settlement of claims have been reached. Membership in the Pool shall not preclude any Member from purchasing any insurance coverage above those amounts purchased by the Pool. Proposed Change to Article 10.4. Losses: The Risk Management Pool (Loss Fund), the Specific Excess Insurance and Aggregate anv optional Appreciate Excess Insurance purchased, shall provide payment for covered losses in any one fiscal year for members up to the limits approved by the Board of Directors. Should losses in any one fiscal year extinguish all available funds provided by the Pool then the individual Member or Members whose judgment or settlement of claim has been perfected by Florida law shall be responsible for any additional payment. The Pool shall make payments in the order in which the judgments against the Pool have been entered or settlement of claims have been reached or other manner established at a meeting by the Board. Membership in the Pool shall not preclude any Member from purchasing any insurance coverage above those amounts purchased by the Pool. The recommended changes are a result of the current insurance market and have been unanimously endorsed by the Executive Committee and Insurance Advisor. A super majority vote is required for approval. Bo.fd Action: !_/Approved Denied Deferred Other PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING SEPTEMBER 15, 2006 REGULAR AGENDA SUMMARY 7. Approval to Not Purchase Aggregate Excess of Loss Fund Insurance Ross Furry Should the Board by super majority vote elect to change By -Law Articles 10.2. and 10.4. from a mandatory purchase to an option to purchase Aggregate Excess of Loss Fund Insurance, it is recommended that the Pool does not purchase such insurance for this renewal term. A simple majority vote is required for approval of this recommendation. Bo rd Action: Approved Denied Deferred Other Approval to Restrict Surplus Funds for Losses in Excess of Loss Fund Ross Furry Should the Board authorize an 18 -month Coverage Document term with a Loss Fund of $22,500,000 and not purchase any aggregate excess of Loss Fund insurance, it is recommended that the Pool authorize $2,250,000 be set aside as a restricted asset from surplus funds for payment of member claims in excess of the Loss fund. This restriction will be reviewed by the Pool's accountant and actuary annually and released in part or in whole upon their recommendation and Board approval. A simple majority vote is necessary to approve this recommendation. Board Action: ,/ Approved Denied Deferred Other PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING SEPTEMBER 15, 2006 REGULAR AGENDA SUMMARY 9. Use of Surplus Funds to Carry Members Premiums For 10/1/07 to 3/30/08 Due and Payable 10/1/06 to Carriers Ross Furry In order to assist Members in the payment of their respective share of insurance premiums for an eighteen month term that are due and payable in full on October 1, 2006, it is recommended that the Board approve the use of surplus funds to pay for the pro -rated premiums for 10/1/07 to 3/30/08. Each Member would receive their own invoice for payment due on 10/1/07 and 1/1/08 and execute a letter agreement to make such payments when due. This would allow the Member to budget the known account payable for premiums in their FY 2007/08 budgets, as well as renewal costs for the next PRM 12 -month renewal, effective 4/1/08- 3/30/09. Each Member has the option to make premium payment in full or utilize this payment option. No interest cost to be added is also recommended. Preliminary premium costs in total for the 18 -month coverage period are as follows: Coverage Document (MARP) $6,583,000 Workers Comp (Safety National) 2,214,000 Excess Liability 412,500 Boiler & Machinery 201,000 9,410,500 ( =) Divided by six (6) Quarters = 1,568,417 (x) Multiplied by-.94440043Mters = AA 3,136,834 Based on these preliminary numbers, it is recommended that the Board approve $3,250,000 for this purpose as outlined. Upon completion of all premium costs associated with an 18 -month term, an accounting by Member for this account payable will be provided to our CPA and Board. A simple majority is required for approval of this recommendation. Board Action: Approved Denied Deferred Other PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING SEPTEMBER 15, 2006 REGULAR AGENDA SUMMARY 10. Presentation of Allocation Policy for Named Windstorm Losses Excess of Aggregate Policy Limits Ross Furry The attached proposed policy is presented for discussion, revision, and approval to process Named Windstorm claims where total losses are expected to exceed available limits. A simple majority vote is required for approval of this item. Boprd Action: /= Approved Denied Deferred Other PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING SEPTEMBER 15, 2006 REGULAR AGENDA SUMMARY 11. Appointment and Contract Approval of Roper & Roper, P.A. as PRM General Counsel Ross Furry At the May 23rd Executive Committee meeting, the Committee concurred with the Executive Director's recommendation to retain Don Roper as PRM General Counsel. Attached for Board approval is the representation contract for legal services. A simple majority vote is required for approval on this item. Board Action: V Approved Denied Deferred Other PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING SEPTEMBER 15, 2006 REGULAR AGENDA SUMMARY 12. Approval of Insurance Advisor Contract Ross Furry Over the past six months, Mr. Tobey, acting in his capacity as Insurance Advisor to the Pool, has provided invaluable assistance in negotiating with various carriers in preparation of this year's program renewal. As evidenced by Mr. Tobey's presentation today, it should be evident that his knowledge, professional experience and relationships with the markets have been very helpful in establishing this year's placement of insurance and renewal terms. Mr. Tobey's present contract expires as of September 30th. Based upon Mr. Tobey's performance, the Executive Director recommended to the Executive Committee at their 9/1/06 meeting that the Board extend Mr. Tobey's contract for an additional one year period of time. The annual fee for Mr. Tobey's services was established at $218,000 annually, or $18,000 per month. The A. J. Gallagher - Orlando office has agreed to reduce their revenues from the PRM renewal by $218,000 in order for PRM to fund this contract without any additional cost to the Pool. Along with carrier negotiations, Mr. Tobey's responsibilities will include recruitment and retention of members, assistance in claims handling particularly windstorm losses, maintaining market relationships, and providing advice to the Executive Director. The Executive Committee approved this recommendation for consideration by the full Board. A simple majority vote is required to approve this action. Boar Action: pproved Denied Deferred Other PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 8, 2006 REGULAR AGENDA SUMMARY Executive Director's Report (cont'd) C. Request Board Approval to Utilize Surplus Funds to Offset Total Cost of Property Premiums The recommendation to use $2,000,000 from surplus funds to offset total cost of property premiums was discussed with Executive Committee and was presented in the total package cost to members at the 9 -15 -06 Board Meeting. However, this was not formally approved by Board members. Board Action: d Approved Denied Deferred Other <»2' \ AO 7\v PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 8, 2006 REGULAR AGENDA SUMMARY Executive Director's Report (cont'd) D. Termination of Arthur J. Gallagher Brokerage Service Agreement After two years of planning by Jim Hicks and Glenn Tobey, PRM was officially formed in October, 1987, with eight members. It was the first pool of its kind in the State of Florida. Today there are several other pools across the nation that have adopted our structure and risk management strategies. Through 1990, the pool grew to seventeen members. In 1991 Glenn opened the Orlando office of A. J. Gallagher and hired Michele Schaare to assist servicing our program. Paul Erickson joined the AJG /PRM team in 1992 and through 2001 ten members joined PRM. Andy Cooper replaced Paul Erickson in 2001 and Sonia Fatheree joined in 2002. (A more detailed historical narrative is attached.) As in any service business, the relationships that are built over the years are paramount to the client's success. PRM has been very fortunate in the past to have developed professional relationships, loyalty, and trust with those servicing the PRM membership. In fact, I have heard it said many times that without Glenn Tobey, Jim Hicks, and Michele Schaare, the Pool would not have survived. Over the past 18 -24 months I have observed a downward trend in our broker's ability to maintain the high level of service and appreciation that PRM has been accustomed to and requires. This observation comes not from the individuals who service our program on a daily basis, but from the corporate culture and management changes. Andy Cooper and Sonia Fatheree have my full confidence and trust in their professional abilities and commitment to PRM's success. While the policy, process, professional standards, and management changes taken individually may not be significant, collectively, they have had a drastic impact on PRM. For example, this year's renewal not presented until 9/15/06, two weeks before the effective date, exact property terms not provided to date, coverage document and reinsurance contract not completed to date, lack of prospecting and member visitations. PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 8, 2006 REGULAR AGENDA SUMMARY Executive Director's Report (cont'd) Termination of Arthur J. Gallagher Brokerage Service Agreement (cont'd) I believe that the reason PRM has never changed brokers is not that A. J. Gallagher is any better than the others (it certainly is no less expensive), but because of the relationships that have been developed and the trust we have had in those individuals assigned to our account. In my opinion, these individuals are hindered by the current processes, management and corporate culture of A. J. Gallagher. To further the point, Michele Schaare and Sonia Fatheree are no longer with A. J. Gallagher. As you may recall, some of these issues were observed previously and noted when it was recommended and approved that PRM renew the broker agreement for a period of one year instead of three years at the June 2005 meeting. This past March, I also advised some of my concerns when recommending we hire Glenn Tobey as our insurance advisor and to assist us during the management change at A. J. Gallagher. It is my recommendation that PRM terminate its agreement with Arthur J. Gallagher & Co. pursuant to the terms of the Pool Agreement, Section II, B., by providing the required 90 -day written notice. Donovan Roper, General Counsel to PRM, has reviewed the agreement and has given his opinion that this action meets the terms of the agreement for termination. Additionally it is my recommendation that the Chairman of the Board, Executive Director, and General Counsel be authorized to negotiate pro - rata the return of monies paid to A. J. Gallagher, pursuant to Exhibit A of the agreement, that they will now not have to perform. Board Action: Approved Denied Deferred Other 3.D. HISTORICAL NARRATIVE OF PRM Historical Narrative of Public Risk Management > Two years of planning prior to the start up of PRM (formerly SWFIRMA). > Minimum of thirty board meetings were attended by Glenn Tobey while he was working out of the Miami branch of Arthur J. Gallagher & Co. > Main reason was for forming the pool was the work comp market, due to the problems the Florida League of Cities was experiencing. > Pool was officially formed in October 1987 with eight (8) initial members. > It was the first pool of its kind in the State of Florida. (Glades County, Lee County, Hendry County, City of LaBelle, Town of Longboat Key, DeSoto County, City of Cape Coral, City of North Port) > Through Glenn's prospecting activities, five (5) new members joined in October 1988. (Hardee County, Lee County Airport Authority, City of Moore Haven, City of Punta Gorda, City of Sebring and City of Wauchula) > Again in 1989, two (2) new members joined: City of Clewiston and City of Tavares > And, again in 1990 two (2) new members joined: City of Zephryhills and City of Avon Park. > In 1991, the Orlando Branch of Arthur J. Gallagher & Co opened, whereby, Michele Schaare was hired to assist Glenn in all aspects of PRM: o Information gathering for renewal o Attendance at all meetings o Market solicitation o Board Meeting presentations o Policy checklists o Certificate of Insurance issuance o Invoicing of all premiums o Liaison to each member > 1991 — 2 new members joined: City of Gulfport and City of Safety Harbor ➢ 1992 — 6 new members joined: City of Belleair, City of Crystal River, City of Eustis, City of Ft Meade, City of Kenneth City and City of South Pasadena. > Paul Erickson comes on Board to assist Glenn and Michele. > 1993 — 4 new members joined: City of New Port Richey, City of Port Richey, South Florida Conservancy District. PRM was now a 30 member pool. Their insurance and risk management needs were being serviced by 3 individuals. > 2001 — Andy Cooper is brought in from London by Glenn to replace Paul Erickson to service the needs PRM. > 2000 — Candace Koester is assigned by Glenn to assist on PRM. > 2002 — Sonia Fatheree is hired as Account Manager to assist Andy, Glenn, Michele and Candace on all sales and services needs of PRM. ➢ 2006 — Patty Dirmyer to assist Sonia in service needs of PRM. 1994 — 2000 — 19 new member joined PRM. Since 2001 to 2006 two (2) new members have joined PRM. Since 2000, Glenn Tobey and Michele Schaare had full management responsibilities in Y -2K, Sarbanes - Oxley, Professional Standards Compliance, Internal Audits, Illinois/Florida Assurance of Voluntary Compliance. Yet during this time all board meetings were attended by Glenn Tobey assisting on PRM's renewal and including market meetings and conferences. January 13, 2006 — Glenn Tobey retires from Arthur J. Gallagher & Co. and becomes Insurance Advisor saving PRM over 2 million dollars in October 1, 2006 and supports Gallagher in the renewal. October 24, 2006 — Michele Schaare is terminated from her position at Arthur J. Gallagher & Co. November 2006 — Sonia Fatheree tenders her resignation from her position at Arthur J. Gallagher & Co. John C. Litton City Manager jlitton@lakemaryfl.com lakemaryfl.com City of Lake Mary Incorporated in 1973 October 26, 2006 Mr. Gregory Butterfield, Area President Arthur J. Gallagher & Co. 7380 Sand Lake Road, Suite 390 Orlando, FL 32819 Dear Mr. Butterfield: I feel the need to express my disappointment in the way AJG handled the recent termination of Michele Schaare. While I am the first to say I know nothing other than what I believe to be based on rumors - and unfortunately that's all anybody has /had to go on - the mere fact that it played out on our last night of PRIMA left an extremely bad taste not only in my mouth, but I would venture to say just about everyone else who was in attendance. It also put your own staff that attended our closing dinner in an extremely awkward position. If it had to happen short of something criminal in nature, couldn't it have waited until PRIMA was over and she was back in Orlando? To the best of my knowledge, Michele was an extremely dedicated employee who always represented AJG in a very professional manner and still considered by most of our members to be a part of the PRM team. In fact, I have heard it said many times that without Glenn, Jim (Hicks) and Michele, the pool would not have survived. During my tenure on the board, I believe the reason we have never gone out for broker service proposals is not that your company is any better than the others (because it certainly is no less expensive), but the relationships that have been developed and the trust we have had in those individuals assigned to our account. From my perspective, the PRM /AJG relationship has now been permanently damaged and unless I am missing something, which may well be the case, I plan on asking for an executive board meeting to consider each and every alternative available. This has nothing to do with your staff that currently service the PRM account, rather, it comes down to my basic concern of who or what is next! www.lakemaryfl.com • Phone: (407) 585 -1419 • Fax: (407) 585 -1498 CITY HALL, 100 N. Country Club Road, P.O. Box 958445, Lake Mary, FL 32795 -8445 Mr. Gregory Butterfield, Area President October 26, 2006 Page Two I am sure there is more to the story than I know, but the old saying that perception is reality certainly applies in this case. Trust me when I say that never have I been more disappointed in AJG professionally than in the way this played out in ultimately ruining the last evening of our conference. If you want to discuss this matter, please feel free to give me a call. Sincerely, hn C. Litton ity Manager /PRM Chairman cc: Dave Marcus, Vice President — Southeast Region Manager — Arthur J. Gallagher & Co. Ross Furry , Executive Director — PRM Lester Baird, Vice Chairman — PRM Executive Committee Mike Sheppard, Treasurer — PRM Executive Committee Jeff Sutton, North Representative — PRM Executive Committee Robbie Chartier, South Representative — PRM Executive Committee JCL/sbt t PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 8, 2006 REGULAR AGENDA SUMMARY Executive Director's Report (cont'd) E. Appointment of World Risk Management, L.L.C. for Insurance Brokerage and Risk Management Services In order to maintain access to the insurance marketplace and specific carriers for public entities it is necessary for PRM to engage a licensed insurance agent to provide brokerage and risk management services. Michele Schaare, previously with A. J. Gallagher, has formed World Risk Management, L.L.C. (WRM) and is uniquely qualified to be our broker of record and provide all of the insurance brokerage services for the PRM program. While the company is newly established, I am confident that it is well capitalized and will provide the professional staff to assist in providing the quality level of service that PRM requires. Since 1991, Michele Schaare has been involved with the PRM program. She has extensive first hand knowledge of the historical development of PRM and long term relationships with the administrative staff and members. Additionally, she has established long term relationships within the insurance marketplace, knowledgeable in our excess insurance structure and experienced in protected self- insurance for public entities. An outline of the insurance brokerage and risk management services to be performed as well as her resume is attached. Pursuant to the PRM By -Laws, there is no requirement to bid out the appointment of brokerage services. It is my recommendation that World Risk Management, L.L.C. be engaged to provide insurance brokerage and risk management services. I would also recommend that the Board authorize the Chairman of the Board, General Counsel, and Executive Director to prepare a written agreement for services similar in terms and conditions to our previous broker agreement and that it be executed by the Executive Director to be effective January 1, 2007. In as much as WRM will not receive any revenue from PRM until it places our excess property insurance in October 2007, it is my recommendation that PRM advance payment to WRM in the amount of $100,000. This pre - payment will be credited against WRM's commission in October 2007 and will provide the consideration to make a binding agreement between the parties. Board Action: _Approved Denied Deferred Other 3.E. WORLD RISK MANAGEMENT, L.L.C. W World Risk Management, L.L.C. President: Michele L. Schaare, AAI Chief Financial Officer: Dave Milhausen Why World Risk Management, L.L.C.? • Extensive expertise in the risk and insurance needs of a public entity • Long term relationships with PRM staff and members • Long term relationships with insurance carriers and insurance marketplace for public entities • First hand knowledge of the historical development of the PRM • • First hand knowledge of excess insurance program structure • Dedicated team of insurance professionals to service PRM staff and members • Experienced in protected self - insurance Insurance Brokerage 86 Risk Management Services: • Exposure reviews and assessments • Compile and organize underwriting data • Development of a professional submission demonstrating the strengths of the PRM association • Market program to incumbent carriers and alternative programs when needed • Negotiate with underwriters on PRM's behalf to obtain the broadest coverages at the best price available • Make recommendations to the Board on renewal terms and conditions that are in the best interest of the Association • Research and present various alternatives to the current program that may enhance coverage or lower pricing • Prepare professional insurance proposals and presentations to all members and the PRM staff • Evaluate policies to assure all terms and conditions negotiated are being provided • Coordination of claims management services • Coordination of any outside loss control services needed • High level service response to member inquiries • Issuance of Certificates of Insurance • Coordination and Hosting of the Annual Educational Conference • Coordination of annual underwriting meeting • Annual Stewardship Reports evidencing services provided Michele L. Schaare, AAI President World Risk Management, L.L.C. B.S.B.A. degree majoring in Finance, University of Central Florida, Orlando, Florida 15 years of insurance brokerage experience with expertise in Public Entity business 5 years of management experience Managed office of 28 employees Recruiting & Hiring employees Employee Training & Development Budgeting & Financial Controls Licensed in the State of Florida as a General Lines Agent (2 -20) Presenter at local and national insurance conferences Account Manager for Public Risk Management account for 10+ years Managed book of business consisting of public entity accounts (i.e. Seminole County BOCC and City of Sanford) Assisted in the servicing of other Florida public entity accounts (i.e. Orange County School Board, Seminole County School Board, Pasco County BOCC, Orlando -Orange County Expressway Authority) Long term relationships with large insurance carriers: Lloyd's of London MARP /American Reinsurance Safety National Casualty Corp Traveler's Insurance Hartford Insurance Chubb Insurance American International Group (AIG) PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 8, 2006 REGULAR AGENDA SUMMARY Insurance Advisor's Update Glenn Tobey, Tobey & Associates A. Property Coverage 10/1/06 Broker's Report Andy Cooper, A. J. Gallagher & Co. A. Overview of Renewal Terms & Conditions B. Carrier Requirements — see attachment i. 15 -Seat Passenger Vans ii. Dams iii. Sexual Harassment/Sexual Abuse Policies and Procedures No Board Action Necessary Public Risk Management of Florida Board Meeting December 8, 2006 As was discussed at the last Board Meeting the reinsurer of the Coverage Document has changed from Brit to Munich Re America. Munich Re has identified some areas of exposure that they would like to collect more information on. These areas are: 1. 15 seat passenger vans. These vans have proved over the years to be involved in more fatal rollover accidents than most vehicles. Proper training and management of this exposure is essential in keeping the liability of operating these vehicles to a minimum. Munich Re requires all members with these vans to implement a Safety Policy. Attached is a sample 15 seat passenger van Safety Policy. Members do not have to use the attached, and we are willing to work with each member to develop a plan. Please note that this is a requirement for continued coverage of these vehicles after October 1, 2007. 2. Dams are an exposure that can have catastrophic effects if they fail. Munich Re has asked us to identify what dams are owned by, or are the responsibility of members. We will then assess the hazard rating of each dam using the attached rating scale. We will need confirmation that: • Verify that all dams and levees received favorable inspection reports within the last 36 months. Any dam or levee with an unfavorable inspection report should be excluded from coverage. • Verify that all recommendations from previous inspection reports have been complied with for all dams and levees. • Secure supplemental underwriting application for any risk with a high hazard dam. Recommend that PNP Supplemental Application be used. • Secure copy of Emergency Procedure / Plans for any risk with a high hazard dam. • Secure historical claim information on all dams and levees — past 5 years. Attached is a best Practice report on Dams that explains the hazard levels, has definitions of dams and levees as well as the information required. From the renewal applications we are aware of members with this exposure. However, if after going through the attached information you feel this exposure may exist and has not been previously reported please contact the Arthur J. Gallagher office. 3. Sexual Harassment / Sexual Abuse Policies & Procedures. We will need to provide Munich Re with copies of every . member's policies and procedures. Munich Re will examine these and advise if they feel any alterations need to be made. Future coverage is dependant on this review. Bonnie Mims at PRM has already collected many policies and procedures from members. We will be requesting the remaining and forwarding them to Munich Re. Munich Re and the staff of PRM and Arthur J. Gallagher will be available to work with members on establishing, or amending policies and procedures to a level that satisfies Munich Re's requirements. Sample 15 — Passenger Van Safety Policy (Should be reviewed and signed off by Legal Council prior to implementation) Purpose: The purpose of this policy statement is to establish the (organizations name) standards for the safe operations of 15 — passenger vans used for the transportation of the (organizations) employees, members, students, etc. Preamble: It is recognized that in some instances that 15 — passenger vans will often be the most effective means of transportation for certain activities and events involving (the organizations) employees, members, students, etc. This policy statement is intended to establish and implement uniform s =, po cY p � ndards in an effort to maximize the safety of those using 15 — passenger vans as a mode of sportation. Policy Statement: • All van usage must be in compliance with municipal, state, and federal requirements. • All van drivers must be a minimum' of 21 years of age. • All van drivers must have previously operated a 15- passenger van a minimum of six months. ■ All van drivers must have an acceptable Motor Vehicle Report (MVR) based on a predetermined point system, which is checked on an annual basis. We recommend the following minimum standards: • At least 65 percent of all MVRs are "clear," ■ No MVRs with major conviction; and • No new driver is hired with a °borderline" or "poor" MVR To assist you in evaluating individual MVRs, we have developed the following table and Definitions. Number of Violations Number of At -Fault Accidents (last 3 years) 0 1 2 3 0 Clear Acceptable Borderline Poor 1 A «« ptableAcce0table Borderline Poor 2 AcceotableBordedine Poor Poor 3 Borderline Poor Poor Poor 4 Poor Poor Poor Poor Acceptable °MVR "— No more than 2 minor violations; OR 1 at -fault accident in last 3 years; OR no more than a combination of 1 minor violation and 1 at -fault accident in last 3 years. Sample 15 — Passenger Van Safety Policy (Should be reviewed and signed off by Legal Council prior to implementation) • • Alt van drivers require all occupants to wear seat belts or the appropriate child restraints. Borderline UMVR "— 3 minor violations; OR 2 at -fault accidents in last three years; OR any combination of minor violations and at -fault accidents in last 3 years totaling 3 occurrences. Poor «MVR " -1 or more major convictions in last 5 years; OR 4 or more minor violations; OR 3 or more at -fault accidents in the last 3 years; OR any combination of minor violations and at fault accidents totaling 4 or more occurrences. At -Fault Accident — Any accident where the driver is cited with a violation or negligently contributes to the incident or any single vehicle accident where: the cause is not equipment related. Major Violations: • Driving under the influence of alcohol/drugs • Failure to stop /report an accident • Reckless driving /speeding contest • Driving while impaired • Making a false accident repo, • Homicide, manslaughter or assault ansi "out of the use of a vehicle • Driving while license is suspended/revoked • Careless driving • Attempting to elude a peace o Minor Violations: A than a malor except: ■ Motor vehicle equi` en t, or size requirement • Impri per/failure to display licens e plates (if they exist) ■ Failure to ign or display registration • Failure to have }driver's license in possession (if valid license exists) All vans are notrerloaded (passengers and luggage). (15 — Passenger vans with 10 or more occupants have a rollover rate in single vehicle crashes that is nearly three times the rate of those that are lightly loaded.) All vans tire pressure is checked on a weekly basis at a minimum. Tire pressure should be maintained at manufacturers' specifications. • All van drivers should be thoroughly trained on the placement of passengers and cargo. Passengers and cargo placed forward of the rear axle and nothing loaded on the roof e.g. luggage. Sample 15 — Passenger Van Safety Policy (Should be reviewed and signed off by Legal Council prior to implementation) • All van drivers should be trained in the areas of speed and road conditions. The risk of a rollover accident increases at speeds over 50 miles per hour and on curved roads) A records retention standard should be developed on all activities related to this policy, including but not limited to the above. PNP Best Practice - Dams and Levees Introduction: As our nation's infrastructure ages, there is a renewed interest regarding the topic of casualty underwriting of infrastructure exposures of dams and levees. Hazard Rating — The hazard rating of a dam or levee is the key factor in determining attachment point, limit, pricing and authority levels. ■ Low Hazard — A dam or levee located in an area where failure will damage nothing more than isolated buildings, undeveloped lands, or township or county roads and /or will cause no significant economic loss or serious environmental damage • Moderate Hazard - A dam or levee located in an area where failure may damage isolated homes, main highways, minor railroads, interrupt the use of relatively important public utilities, and /or will cause significant economic loss or serious environmental damage. • High Hazard — A dam or levee located in an area where failure may cause loss of human life, serious damage to homes, industrial or commercial buildings, important public utilities, main highways or railroads and /or will cause extensive economic loss Required Underwriting Information: • Secure qualified inspection report prior to quoting any risk with a high hazard dam. • Verify that all dams and levees received favorable inspection reports within the last 36 months. Any dam or levee with an unfavorable inspection report should be excluded from coverage. ■ Verify that all recommendations from previous inspection reports have been complied with for all dams and levees. • Secure supplemental underwriting application for any risk with a high hazard dam. Recommend that PNP Supplemental Application be used. • Secure copy of Emergency Procedure / Plans for any risk with a high hazard dam. • Secure historical claim information on all dams and levees — past 5 years. Background and Underwriting Considerations Definitions • Dam — a man -made barrier across flowing water that obstructs, directs or retards the flow, often creating a reservoir, lake or impoundment. Their main purpose is to conserve water for consumption and irrigation, flood control, and generation of hydroelectricity. 1 Most dams have a spillway, over which or through which it is intended that water will flow. Dams may be classified according to type of construction material used, the methods used in construction, the slope or cross - section of the dam, the way the dam resists the forces of the water pressure, the means used for controlling seepage and the intended purpose of the dam. The materials used for construction of dams include earth, rock, tailings from mining or milling, concrete, masonry, steel, timber, miscellaneous materials (such as plastic or rubber) and any combination of these materials. Embankment Dams — most common in use today. Materials include natural soil or rock, or waste materials obtained from mining or milling operations. An embankment dam is termed an "earthfill" or "rockfill" dam depending on whether it is comprised of compacted earth or mostly compacted or dumped rock. The ability of an embankment dam to resist the reservoir water pressure is primarily a result of the mass weight, type and strength of the materials from which the dam is made. Concrete Dams — may be categorized into gravity and arch dams according to the designs used to resist the stress due to water pressure. The mass weight of concrete and friction resist the water pressure. A buttress dam is a specific type of gravity dam in which the large mass of concrete is reduced, and the forces are diverted to the dam foundation through vertical or sloping buttresses. Gravity dams are constructed of vertical blocks of concrete with flexible seals in the joints between the blocks. Concrete Arch Dams are typically rather thin in cross - section. The water forces acing on an arch dam are carried laterally into the abutments. Such dams are usually constructed of a series of thin vertical blocks that are keyed together; barriers to stop water from flowing are provided between the blocks. • Dike — an embankment of earth and rock built to prevent floods • Levee — an embankment raised to prevent a river from overflowing. Levees are the oldest and the most extensively used method of flood control. The most extensive levee systems in the U.S. are along the Mississippi and Sacramento Rivers. Levees can be located throughout the U.S including the Missouri River, NY State, Sacramento, St. Louis, Kansas City and many other smaller cities which are in low lying areas. Notable levee breaches occurred during the 1927 Great Mississippi Flood and August 2005 with Hurricane Katrina. • Reservoir — natural or artificial pond or lake used for the storage and regulation of water State programs regulate 95% of the 79,000 dams in the U.S., while the federal agencies own or regulate only 5% of the nation's dams. These programs vary in authority but, typically, the program activities include (1) safety evaluations of existing dams (2) review of plans and specifications for dam construction and major repair work (3) periodic inspections of construction work on new and existing dams and (4) review and approval of emergency action plans. Many states work with minimum budgets and staff. On average, nationwide, there are 268 state - regulated dams per full -time equivalent staff. In 13 states, this number exceeds 500, and 4 states report more than 1200 per FTE staff. There are approximately 79,000 dams listed on the National Inventory of Dams http: // crunch. tec .armv.mil /nid /webpaoes /nid.cfm These dams are those that are over 25 feet in height or 50 acre feet in storage or are smaller structures that pose a safety hazard to a downstream population. Including smaller dams that do not meet this definition, the total goes to almost 100,000 dams. The responsibility for the 2 safety, upkeep, upgrade and repair of the dam rests solely with the dam owners. The National Inventory of Dams as reported in January 2001 by the U.S. Army Corps of Engineers (USACE) indicates ownership of dams as follows: Private — 66.3 %; Local Government — 21.8 %; State — 6 %; Federal — 3.3% and Private at 66.3 %. Dams have multiple purposes including recreation (31%), fire and farm ponds (17 %), flood control (15 %), irrigation (14 %), water supply (10 %) and other uses. Dam failures are most likely to happen for one of 5 reasons and is the basis for classifying a dam as being unsafe: • Overtopping caused by water spilling over the top of the dam • Structural failure of materials used in dam construction • Cracking caused by movements like the natural settling of a dam • Inadequate maintenance and upkeep • Piping — when seepage through a dam is not properly filtered and soil particles continue to progress and form sink holes in the dam Emergency Action Plans is a formal document that helps to save lives and reduce property damage in the event of a dam failure or other uncontrolled release of water. These plans generally should be available for all moderate and high hazard dams and include: • Identification of potential emergency conditions and specifies pre - planned responses • Provides for early notification to local, county, and state officials • Provides inundation mapping of potentially flooded areas Dam Inspections are intended to identify conditions that may adversely affect the safety and functionality of a dam and its appurtenant structures; to note the extent of deterioration as a basis for long -term planning, periodic maintenance or immediate repair; to evaluate conformity with current design and construction practices; and to determine the appropriateness of the existing hazard classification. 3 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 8, 2006 REGULAR AGENDA SUMMARY Legal Update Donovan Roper, Esquire A. Renewal of Pinellas County EMS Contract Mr. Roper will report on the Pinellas County EMS Contract and its effect on various PRM members. Certificates of Insurance (example attached) were submitted to the Pinellas County Attorney for the City of Gulfport, City of Safety Harbor, City of South Pasadena, and City of St. Pete Beach. No Board Action Necessary ACOR ©,,, CERTIFICATE OF LIABILITY INSURANCE DATE(MWDDIYYYY) 11/08/06 TYPE OF INSURANCE PRODUCER 1 -800- 524 -0191 Arthur J. Gallagher Risk Management Services Arthur J. Gallagher & Co. (Florida) 738D W. Sand Lake Road Suite 390 Orlando, FL 32819 THIS CERTIFICATE 13 ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED City of St Pete Beach Public Risk Management 155 Carey Avenue St Pete Beach, FL 33706 INSURER A: Publ ic Risk Management GENERAL UABILITY INSURER B: 10/01/05 INSURER C: EACH OCCURRENCE INSURER O: INSURER E: DAMAGE TO RENTED PREMISES(Eeocwrenoel THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR ADO`L NERD TYPE OF INSURANCE POLICY NUMBER POUCYEpFFECTIVE DATE(MM/DD/YY) POLICYEXPIRATEON DATE(MM/DD!Y41 UNITS A GENERAL UABILITY PRM05 -009 10/01/05 10/01/06 EACH OCCURRENCE $2,000,000 COMMERCIAL GENERAL LU18ILTN DAMAGE TO RENTED PREMISES(Eeocwrenoel $ � CLAIMS MADE I i OCCUR MED EXP (Any one person) $ PERSONAL &AOVINJURY $ GENERAL AGGREGATE $ Nil GENT_ NAGGREGATELIMpITAPPU -ES PER: ---1 POLICY jtCi I I LOC PRODUCTS - COMP/OP AGG $ AUTOMOBILE — LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS COMBINED SINGLE LIMIT (Esacddent) $ SODILYINJURY (Per person) BODILY INJURY (Peracc ent) PROPERTY DAMAGE (Perecddent) GARAGEUABIUTY AUTO ONLY -EA ACCIDENT S ANY AUTO OTHER THAN EA ACC S AUTO ONLY AGG S EXCESS/UMBRELLAUABUJTY EACH OCCURRENCE $ OCCUR I CLAIMS MADE AGGREGATE $ _... $ _ DEDUCTIBLE RETENTION $ $ $ WORKERS COMPENSATION AND EMPLOYERS' UAB(UTY ANYPROPRIETOR/PARTNERIEXECUUTNE INCL OFFICER/MEMBER EXCLUDED? EXCL WC STA'TTU- I OTH. I TORY LIMITS I _ ER EL. EACH ACCIDENT $ E.L. DISEASE • EA EMPLOYEE $ lfyee deembe under SPE4tIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT $ OTHER DESCRIPTION OF OPERATIONS/ LOCATIONS / VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT/ SPECIAL PROVISIONS With respect to general liability coverage as evidenced herein as required by written contract with respect to Pinellas County Emergency Medical Services Authority, as held by the above named insured. Please see attached. CERTIFICATE HOLDER CANCELLATION Pinellas County EMS /Firs Admin. Craig, Hare 1249D Vlmerton Road Largo, FL 33774 GSA SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MML 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NANED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE ACORD 25 (2001/08) pstidirm 5180903 ® ACORD CORPORATION 1988 IMPORTANT if the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the Issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25 (2001/08) Arthur J. Gallagher Risk Management Services Arthur J. Gallagher & Co. (Florida) Public Risk Management of Florida ( "PRM ") and its named reinsurers disclaim and exclude, and will not provide, insurance or self - insurance proceeds or benefits to Pinellas County and/or Pinellas County Emergency Medical Services Authority for any active negligence on the part of employees, servants, representatives or agents of Pinellas County and /or Pinellas County Emergency Medical Services Authority in causing , or contributing to, the injury or damages complained of in any claim or litigation generated or made pursuant to this Certificate ; furthermore, PRM and its named reinsurers will not indemnify, insure , hold harmless or defend Pinellas County and /or Pinellas County Emergency Medical Services Authority, In any claim Or litigation in which the underlying factual circumstances demonstrate through investigation , discovery or via legal pleadings that active negligence on the part of Pinellas County and /or Pinellas County Emergency Medical Services Authority employees, servants, representatives or agents of Pinellas County and/or Pinellas County Emergency Medical Services Authority caused, or contributed to, the injury or damages sought or demanded in any claim or litigation made pursuant to this Certificate. This Certificate specifically excludes professional liability insurance to Pinellas County and /or Pinellas County Emergency Medical Services Authority. 7380 West Sand Lake Road, Suite 390 Orlando, Florida 32819 407270.2320 Switchboard 800.524.0191 Toil Free www.ajg.corn A.. CORD CERTIFICATE OF LIABILITY INSURANCE DATE(MN/OOIYYYV) is /oa /o6 TYPE OFINBURANCE PRODUCER 1 -800 -524 -0191 Arthur T. Gallagher Risk Management services Arthur J. Gallagher & Co. (Florida) 7380 W. sand Lake Road Suits 390 Orlando, FL 32819 Andrews Cooper THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURED City of St Pete Beach Public Risk Management 155 Corey Avenue St Pete Beach, FL 33706 INSURER A: Public Risk Management GENERALUABIUTY ©DAMAGE INSURERS: PRM05 -009 INSURER C: 10/01/06 INSURER D: $2,000,000 INSURER E: $ OVERAGES E POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR Y PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. IN LTR NBR TYPE OFINBURANCE NOUCYNUIYIBER POLICY EFFECTIVE DATEtMMIDO/YY1 POLICY EXPIRATION DATE(MMIDDIYYI UMLTS A GENERALUABIUTY ©DAMAGE COMMERCIAL GENERAL LIABILITY CLNMSMAOE X OCCUR PRM05 -009 10/01/05 10/01/06 EACHOCCURRENCS $2,000,000 TO RENTED PREMISES (Es occuroncey $ MEDEXP(Anyoneperson) $ III PERSONAL 3 ADV INJURY $ GENERAL AGGREGATE $ GEN'LAGOREOATELI�MpIT.APPLIESPER: PRODUCTS •COMP/OPAGG $ POLICY JpEOT El LOC A AUTOMOBILE X ■ S X ■ UABILITY ANY AUTO AU. OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON-OWNED AUTOS PRM05 -009 10/01/05 10/01/06 COMBINED SINGLE LIMIT (Ea accident) $2,000,000 BODILY INJURY (Per person) $ BODILY INJURY (Per occident) $ PROPERTY DAMAGE (Per occident) S GARAGE ■ UABILITY ANY AUTO AUTO ONLY • EAACC I D ENT $ OTHER THAN EAAQC $ AUTO ONLY AGO $ EXCESS/UMBRELLALILBIUTY 1 OCCUR 1 I CLAIMS WOE DEDUCTIBLE RETENTION 5 EACH OCCURRENCE 8 AGGREGATE $ 5 $ $ A WORKERS COMPENSATION AND EMPLOYERS' UABIUTY /E ANY PROPRIETOR/PARTNERXECUTIVE INCL OFFICER/MEMBER EXCLUDED? EXCL ttppu describe under SPECIAL PROVISIONS below PRM05 -009 10/01/05 10/01/06 X 1TWAMtt5 19N- E.L.EACiACCIDENT $1,000,000 8.L.0ISEAS6•EAEMPLOYEE $1,000,000 E.L, DISEASE - POLICY LIMIT $ 1, 000, D00 OTHER DESCRIPTION OF OPERATIONS t LOCATIONS / VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT/ SPECIAL PROMS ONS Public Risk Management of Florida is not able to add your entity as an additional insured due to Florida Statute 768.28 where it is not allowable for a public entity to add another public entity or private corporation as an additional insured. First Responder /Fire Contracts CERTIFICATE HOLDER CANCELLATION Pinellas County WKS /Fire Admin. Craig Bare 12490 Ulmerton Road Largo, FL 33774 USA SHODU) ANY OF THE ABOVE DESCRIBED POUCIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO 00 SO SHALL IMPOSE NO OBLIGATION OR UASIUTY OF ANY KIND UPON THE INSURER, ITS AGENTS Oft REPRESENTATIVES. AUTHORIZED REPRESENTATIVE i - • ACORD 25 (2001108) patidirm 5180913 ®ACORD CORPORATION 1988 IMPORTANT If the certificate holder Is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the Issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25 (2001/08) Arthur J. Gallagher Risk Management Services Arthur J. Gallagher & Co. (Florida) Public Risk Management of Florida ( "PRM ") and its named reinsurers disclaim and exclude, and will not provide, insurance or self- insurance proceeds or benefits to Pinellas County and /or Pinellas County Emergency Medical Services Authority for any active negligence on the part of employees, servants, representatives or agents of Pinellas County and /or Pinellas County Emergency Medical Services Authority In causing , or contributing to, the injury or damages complained of in any claim or litigation generated or made pursuant to this Certificate ; furthermore, PRM and Its named reinsurers will not indemnify, insure , hold harmless or defend Pinellas County and /or Pinellas County Emergency Medical Services Authority, in any claim or Litigation In which the underlying factual circumstances demonstrate through investigation , discovery or via legal pleadings that active negligence on the part of Pinellas County and /or Pinellas County Emergency Medical Services Authority employees, servants, representatives or agents. of Pinellas County andlor Pinellas County Emergency Medical Services Authority caused, or contributed to, the injury or damages sought or demanded in any claim or litigation made pursuant to this Certificate. This Certificate specifically excludes professional liability insurance to Pinellas County and /or Pinellas County Emergency Medical Services Authority. 7380 West Sand Lake Road, Suite 390 Orlando, Florida 32819 407.370.2320 Switchboard 800.524.0191 Toil Free www.ajg.com PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 9, 2005 REGULAR AGENDA SUMMARY 7. Board Member Items Public Comment: Discussion must be limited to a maximum of five (5) minutes per person. Adjourn