Loading...
2007-05-17 BOD MeetingPUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 CONSENT AGENDA SUMMARY 1. Request Approval of March 9, 2007 Board Meeting Minutes Board Meeting Minutes Attached 2. Request Approval of Treasurer's Report as of March 31, 2007 Financial Reports Attached Bo rd Action: Approved Denied Deferred Other 1. BOARD MEETING MINUTES 3/9/07 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING Terrace Hotel, Lakeland, FL March 9, 2007 MINUTES Attendees: 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; Linda Stilson, City of Crystal River; Faith Miller, City of Deltona; Paul Erickson, DeSoto County BOCC; Mike Sheppard, City of Eustis; Mary Ann Dotson, Glades County BOCC; Jennifer Valdes, City of Gulfport; Jane Long, Hardee County BOCC; Ricky Helms, Highlands County BOCC; Martin Schless, City of Indian Rocks Beach; Nancy Beelman, Town of Kenneth City; Michael Boyle, City of LaBelle; Marcel Blais, Town of Lady Lake, John Litton, City of Lake Mary; Robert Zega, Lee County Port Authority; Fred Moody, Levy County BOCC; Jane O'Connor, Town of Longboat Key; Carol Rogers, City of Longwood; Jeff Sutton, City of New Port Richey; Steve Gailbreath, City of North Port; Robbie Chartier, Okeechobee County BOCC; Connie Collins, City of Oviedo; Shirley Dresch, City of Port Richey; Martin Lange, Sarasota /Manatee Airport Authority; Mike Eastman, City of Sebring; Ron Graydon, South Forida Conservancy; James Graham, City of South Pasadena; Gary Behnke, City of St. Pete Beach; Crissy Bublitz, City of Tavares; James Braddock, City of Wauchula; Frank Gilbert, City of Winter Garden; Sharry Boldt, City of Zephyrhills Mark Lapp attended the meeting as a non - voting representative from Hendry County. Absent: City of Fort Meade, Hamilton County BOCC, Holmes County BOCC, Town of Lake Placid, City of Lake Wales, City of Moore Haven, City of Okeechobee, City of Pahokee, City of Punta Gorda, City of Safety Harbor, Sun 'n Lake of Sebring Improvement District, City of Temple Terrace Chairperson John Litton convened the meeting at 10:08 a.m. with a quorum present. Consent Agenda 1. Request Approval of December 8, 2006 Board Meeting Minutes. 2. Request Approval of Treasurer's Report as of December 31, 2006. Motion was made by Nancy Beelman and seconded by Mike Boyle to approve the consent agenda. The motion was unanimously approved. Regular Agenda 3. Election of Vice Chairperson — Prior to the meeting, Bob Zega, Carol Rogers, and Jeff Sutton, indicated their willingness to serve as Vice Chairperson. No other nominations were received from the floor. By a show of hands, Mr. Sutton was elected Vice Chairperson for the remainder of the term that expires 10 -1 -07. Self- nominations from the floor were taken to fill Mr. Sutton's vacancy as North Representative, term to expire 10 -1 -07. Ms. Rogers and Jennifer Valdes expressed interest in the position. By a show of hands, Ms. Valdes was elected North Representative. 4. Executive Director's Report A. Status on Hurricane Claims — Mr. Furry advised that 73 claims remain open from Hurricane Charley with $38 million paid to date and $43.8 million in reserves. Forty -eight (48) claims remain open from Wilma with $10.6 million paid to date and $19 million in reserves. An issue involving the City of Lake Wales airport has been resolved. An independent company operating the airport attempted to claim membership under PRM for payment on their hurricane losses. Their lawsuit was denied. B. National PRIMA Conference Scholarships — National PRIMA Conference will be held in Boston from June 10 -13, 2007. PRM scholarship deadline was March 9th C. Review of Member Premiums Due 10/1/07- 3/31/08 & Acknowledgment of Balance Due from Members — To assist members with payment of premium for the 18 -month renewal, funds were supplied from surplus to cover the period from 10/1/07 to 3/31/08. Those members who have not yet returned the acknowledgment letter to repay PRM were requested to do so. CBIZ will be contacting members due for property appraisals in the next two weeks to schedule the on -site appraisal. Mr. Furry thanked the Town of Lady Lake for their outstanding efforts in hosting the third Police Liability Seminar this year. 5. Broker's Report Mr. Butterfield introduced his staff on the PRM account including new additions, Michele Montgomery and Lora Bruce. A. Open Underwriting Issues — The broker provided an update on outstanding items: Dams — Information for five members having dams or flood control structures was provided to Munich Re, who may further request inspection reports. 15- Passenger Vans — Fourteen members have 26 vans with 2 used only for cargo. A complete binder of information, provided by Rob Ross, was submitted to the carrier and there are no issues remaining on this item. 2 Sexual Abuse Policy — Munich Re approved the policy but the broker needs to verify that all members are following the guidelines. In addition, those members having Parks & Recreation Departments and /or Day Care Centers need to perform background checks on all employees. Any vehicle 45,000 lbs. or more is excluded. Members having such vehicles must advise the broker of their utilization to have the vehicles classified as non - commercial. B. Additional Property Coverage for Named Windstorm — The broker advised that the property marketplace has stabilized somewhat and additional capacity is available. Since 10/1/06, windstorm coverage is $100 million. An additional $25 million of named windstorm coverage, which is excess of the current $100 million limit of liability, has been offered to the Pool at a premium of $1 million. C. Extension of Current Excess Property Coverage from 10/1/07 to 4/1/08 — The broker investigated options in order to get the excess property coverage to 4/1/08 for renewal with all other lines of coverage. Because the marketplace has not significantly changed since 10/1/06, the current property carriers did not support cancelling and rewriting coverage from 4/1/07 to 4/1/08. However, carriers are willing to provide a 6 -month extension to the program from 10/1/07 to 4/1/08 with a 10% rate credit at a premium of $5,781,897. This year the State has assessed a Florida Hurricane Catastrophe Fund fee of 1%. The average commission for Arthur J. Gallagher on the excess property program is 9.5 %. If PRM decides to accept the extension option, Mr. Butterfield has agreed to lower the broker's commission rate to 7% on the extension, returning $150,000 to PRM through a compensation agreement. Mr. Butterfield has also requested a commission reduction from the wholesale distributor, CRC, resulting in a potential return of $110,000 to PRM. D. Educational Conference Update — Candace Koester advised the conference will be held May 16 -18 at the Hilton Beach Resort on Marco Island. Any members wishing to share their risk management or safety programs were asked to contact her. The Chairman asked Glenn Tobey, Insurance Advisor, to comment on the broker's property proposal. Mr. Tobey advised that, in theory, this was exactly what everyone has been trying to accomplish — trying to bind insurance coverage prior to hurricane season to obtain more attractive rates going forward. However, he still has questions concerning the coverage from the property carriers. Mr. Tobey performed an analysis of the availability of policies on January 27th, which was reviewed by the broker who then supplied recommendations to the Executive Director and the Board of Directors. One of the major reasons prohibiting the cancel /rewrite option is because the policies are all on short rate 3 penalties. They are not pro -rata. The whole objective was to get it on pro -rata so there would not be a problem if a decision was made to cancel /rewrite. The broker has corresponded with CRC and RPS to amend the short rate penalty clauses. If a decision was made today, the extension of policies would be the only option available. Mr. Tobey advised he has not personally received anything from the insurance companies. He is concerned about the 110% margin clause which all the policies appear to have, although in many of the policies it is not mentioned. The CRC and RPS "Excess Physical Damage Form" document contains the 110% margin clause. None of the policies from the insurance companies indicate acceptance of the Excess Physical Damage Form within their policy. If this is a document that needs to be in the policy, an endorsement is needed from the insurance company. The 110% margin clause could be detrimental in the event of a loss, especially when talking about the current insurance values. If the carriers are extending the policy until 4/1/08, Mr. Tobey questions whether they are accepting today's current values. Additionally, CBIZ performed on -site appraisals last year for three members and their values increased 20 -28% over reported amounts. Another question involves State assessments. Since the policy is being extended and thel % Florida Hurricane Catastrophe Fund was enacted for 2007, it was queried if the 6.84% Citizens Assessment Fee from 2006 would also be assessed. Until satisfactory information is received from the carriers, Mr. Tobey recommended the Board delay making a decision and to vote on the extension of excess property coverage at the May meeting. Mr. Tobey also recommended a stand -alone program for PRM with a property line slip. Responding to the Insurance Advisor's concerns, Mr. Butterfield indicated the pro -rata versus short rate was not an issue and said it had nothing to do with the cancel and rewrite. With regard to the State assessments, the broker advised the extension covers 2007 to 2008 and since there is no Citizens Assessment for 2007, he is not concerned about this fee on the extension. The broker confirmed that the carriers agreed to binding coverage effective on 4/1/07 or 6/1/07. The broker advised that the Excess Physical Damage Form was in all the policies at which point the Executive Director queried why there was not an endorsement on the policies to indicate that the carriers recognized the form and requested that an endorsement be obtained for each policy. Mr. Butterfield agreed to get CRC's Excess Physical Damage Form endorsed to the policies. The Executive Director is concerned with the margin clause since the last schedule of values reported to the underwriters in 2006 totaled $1.5 billion and this year's trended report increased property values to $1.6 billion. The broker advised that a revised statement of values may be submitted to the underwriters at any time, but to then expect an increase in premium. With regards to those members who have had on -site appraisals performed after submission of values to underwriters, in the event of a loss, the broker indicated carriers would definitely adjust claims based on the statement of values that is on file. The Executive Director advised that surplus funds were available if members desired to use as an advance for payment of the property extension premium. Mr. Boyle stated an extension is needed to reflect the true statement of values. 4 Mr. Boyle made a motion to postpone voting on extension of current excess property coverage from 10/1/07 to 4/1/08 until the May Board Meeting. Robbie Chartier seconded the motion and it was unanimously approved. 6. Chairman's Item A. Member Discussion of Request for Qualification for Brokers Services Based on information provided to members from the Executive Director, Frank Gilbert made a motion to remove from the table his original motion made at the December Board Meeting. Jane O'Connor seconded the motion. Mr. Roper read the original motion and discussion followed. Carol Rogers called for the question and it was seconded. The motion was approved by show of hands with two opposed. Ms. O'Connor made a motion to discuss the termination of Arthur J. Gallagher's Brokerage Agreement. Mr. Gilbert seconded the motion and it was unanimously approved. Bruce St. Denis, Town Manager from Longboat Key, stated his dissatisfaction with the broker's continual delay in responding to issues for their Commissioner. Mr. Gilbert made a motion to provide Arthur J. Gallagher 90 -day written notice terminating their brokerage service agreement. Ms. O'Connor seconded the motion. Mr. Roper distributed copies of a lawsuit brought against Mr. Tobey by A. J. Gallagher in which PRM is the subject matter of the litigation. Following the December Board Meeting, Mr. Tobey was directed to "cease and desist" serving as PRM's Insurance Advisor since A. J. Gallagher revoked the limited exception of their non - compete clause. Mr. Roper pointed out that PRM was never advised of this revocation, and in fact, in January, Mr. Butterfield assured the Chairman and the Executive Director that Mr. Tobey would not be hindered from accessing the property market on behalf of PRM. Mr. Roper advised that PRM is at risk because the broker's attomey has requested the court to enter a preliminary injunction and then a 2 -year injunction prohibiting Mr. Tobey from having any connection with PRM. A case management conference on this lawsuit is scheduled for May 15th. Ms. Chartier called for the question and it was seconded. By show of hands, the motion was approved with 23 in favor and 5 opposed. To initiate the process for acquiring a broker, Mr. Litton requested volunteers to serve on an RFQ (Request for Qualifications) Selection Committee and those individuals include Mike Boyle, Frank Gilbert, Robbie Chartier, Carol Rogers, John Litton, as well as Gerald Seeber, City Manager from Oviedo who was volunteered by their Board Member Connie Collins. The Committee will be responsible for soliciting the RFQ, which will include advertising on Demand Star, an 5 on -line database. Mr. Zega suggested that the Committee review sample RFQ's from AGRIP. Steve Baumgartner made a motion to accept the process and appointees to the Selection Committee, empowering them to make the necessary decisions to proceed with the RFQ, to evaluate the responses and to bring back a recommendation to the Board for final action at the May 17th meeting. Fred Moody seconded the motion and it was unanimously approved. 7. Legal Update — Mr. Roper reported on a case before the U. S. Supreme Court where clarification will be forthcoming on what law enforcement officers can do on high speed pursuits. 8. Board Member Items There were no Board Member items. There was no Public Comment. Meeting adjourned at 12:00 p.m. Respectfully submitted, Judith A. Hearn Assistant Executive Director Secretary to PRM Board JAH:smb O:Wudy\BD MTGS\Board of Directors Meeting 3 -9 -07 6 2. TREASURER'S REPORT AS OF 3/31/07 PUBLIC RISK MGMT OF FL BALANCE SHEET MARCH 31, 2007 CURRENT ASSETS PETTY CASH $ 75.00 OPERATING -SO TRUST 35,971,536.08 WACHOVIA SECURITIES -CASH 46,368.01 A/R MEMBERSHIPS 922,487.42 A/R TRADE 93.46 A/R - PRM GR HLTH 136,869.21 A/R CONSULTANT FEE - MEMBERS 8,714.90 A/R- REINSURANCE RECOVERIES (11,347,513.70) A/R OTHER 2,254.66 A/R -STATE W/C ASSESSMENT (196,609.79) A/R- APPRAISALS 767.00 A/R - ADDITIONAL INSURANCE 501.21 A/R - SCHOLARSHIP PROGRAM 8,300.00 DUE FROM MEMBERS 1,629,185.00 STATE ADMIN. FUND 13,598,368.30 SOUTHTRUST SECURITIES 495,265.00 TOTAL CURRENT ASSETS 41,276,661.76 PROPERTY AND EQUIPMENT FURNITURE & FIXTURES 32,847.12 LESS: ACCUM. DEPRECIATION (28,937.41) OFFICE MACHINES & EQUIPMENT 66,269.25 LESS: ACCUM. DEPRECIATION (33,581.88) AUTOMOBILE 116,538.79 ACCUMULATED DEPRECIATION (28,240.17) TOTAL PROPERTY & EQUIPMENT 124,895.70 OTHER ASSETS PREPAID INSURANCE 13,540,018.67 PREPAID FLOOD INSURANCE 94.49 PREPAID EXPENSES 24,634.79 DEFER MEMBER CONTR - 1987 -89 183,808.00 DEFER MEMBER CONTR- 1989 -90 295,679.00 DEPOSITS 5,665.06 TOTAL OTHER ASSETS 14,049,900.01 TOTAL ASSETS $ 55,451,457.47 LIABILITIES ACCOUNTS PAYABLE $ (17,353.69) A/P - GALLAGHER/RISX -FACS (2,619,400.79) FEDERAL TAXES PAYABLE (40.14) A/P EMP LIFE INS (414.53) A/P - OTHER 4,840.49 A/P - LOSS PREVENTION 14,933.73 ACCRUED VACATION 41,121.55 DEFERRED REVENUE 93,542.46 ADVANCE FROM REINSURER 4,914,159.95 CLAIMS PAYABLE - 1987 -89 78,127.26 CLAIMS PAYABLE - 1990 -91 21,867.54 CLAIMS PAYABLE - 1991 -92 5,564.80 CLAIMS PAYABLE - 1992 -93 (34,237.93) CLAIMS PAYABLE - 1993 -94 47,982.26 CLAIMS PAYABLE - 1994 -95 10,382.30 CLAIMS PAYABLE - 1996/97 31,977.84 CLAIMS PAYABLE - 1997/98 (127,553.96) CLAIMS PAYABLE - 1998/99 (36,216.62) CLAIMS PAYABLE - I999/00 (202,394.00) CLAIMS PAYABLE - 2000/01 (110,536.87) CLAIMS PAYABLE - 2001/02 (670,479.66) CLAIMS PAYABLE - 2002/03 1,540,593.20 CLAIMS PAYABLE - 2003/04 (840,170.15) CLAIMS PAYABLE - 2004/05 3,624,075.91 CLAIMS PAYABLE - 2005/06 CLAIMS PAYABLE - 2006/07 NONCURRENT CLAIMS PAYABLE SUSPENSE - CLEARING ACCOUNT TOTAL LIABILITIES CAPITAL FUND BALANCE REVENUE IN EXCESS OF EXPENSE PUBLIC RISK MGMT OF FL BALANCE SHEET MARCH 31, 2007 3,356,495.42 6,272,453.15 (10,529,837.00) 10,529,837.00 25,847,604.32 14,204, 533.63 15,399,319.52 TOTAL CAPITAL 40,052,137.95 TOTAL LIABILITIES & CAPITAL 8 55,451,457.47 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, 2007 MONTHLY MONTHLY Y -T -D Y -T -D TOTAL YEAR ACTUAL BUDGET ACTUAL BUDGET BUDGET 9,603.88 37,367.16 3,849.56 4,977.62 1,409.09 9,234.90 77.50 160.58 958.05 10,404.17 41,916.42 3,968.67 4,549.42 729.67 9,842.83 74.92 149.33 937.92 67,638.34 72,573.35 62,362.22 251,499.04 23,232.47 37,137.66 8,454.54 55,767.99 465,00 963.48 5,613.79 445,496.19 62,425.02 251,498.52 23,812.02 27,296.52 4,378.02 59,056.98 449.52 895.98 5,627.52 435,440.10 124,850.00 502,997.00 47,624.00 54,593.00 8,756.00 118,114.00 899.00 1,792.00 11,255.00 870,880.00 GENERAL EXPENSES LEGAL FEES 1,492.00 500.00 5,242.00 3,000.00 6,000.00 LEGAL -PRE- DEFENSE 0.00 416.67 114.75 2,500.02 5,000.00 AUDIT FEES 7,650.00 2,416.67 27,200.00 14,500.02 29,000.00 ACTUARIAL STUDY 0.00 1,166.67 0.00 7,000.02 14,000.00 APPRAISAL FEE EXPENSE 1,375.00 458.33 2,750.00 2,749.98 5,500.00 AUTO EXPENSE 0.00 250.00 1,444.27 1,500.00 3,000.00 TRAVEL EXPENSE 278.40 2,500.00 27,104.87 15,000.00 30,000.00 ASSOCIATION MEMBERSHIPS 172.00 166.67 482.00 1,000.02 2,000.00 DUES & SUBSCRIPTIONS 14,382.00 266.67 15,470.00 1,600.02 3,200.00 EDUCATION/TRAINING /CONFER. 2,951.63 2,500.00 2,969.58 15,000.00 30,000.00 OFFICE LEASE 6,010.67 6,010.75 36,064.02 36,064.50 72,129.00 JANITORIAL / CLEANING 280.00 300.00 1,640.00 1,800.00 3,600.00 OFFICE /COMPUTER EQUIPMENT 0.00 1,500.00 18,774.14 9,000.00 18,000.00 TELEPHONE 1,198.35 2,166.67 9,578.69 13,000.02 26,000.00 COPY MACHINE LEASE 244.65 250.00 1,323.90 1,500.00 3,000.00 REPAIRS & MAINT. - EQUIPMENT 1,162.00 166.67 1,288.00 1,000.02 2,000.00 OFFICE SUPPLIES 919.96 1,166.67 10,328.77 7,000.02 14,000.00 NEWSLETTER 0.00 333.33 832.50 1,999.98 4,000.00 POSTAGE 1,254.50 1,000.00 5,854.49 6,000.00 12,000.00 PRINTING 0.00 166.67 0.00 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 5,823.14 1,833.33 11,531.51 10,999.98 22,000.00 MARKETING & PROMOTION 0.00 375.00 167.62 2,250.00 4,500.00 MEETING EXPENSE 0.00 2,008.33 4,008.20 12,049.98 24,100.00 MISCELLANEOUS EXPENSE 407.77 208.33 2,282.43 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 TOTAL GENERAL EXPENSES 45,602.07 29,444.10 187,451.74 176,664.60 353,329.00 TOTAL OPERATING EXPENSES 113,240.41 102,017.45 632,947.93 612,104.70 1,224,209.00 REVENUES MEMBERSHIP ASSESSMENTS INTEREST INCOME TOTAL REVENUES PUBLIC RISK MGMT OF FL INCOME STATEMENT FOR THE SIX MONTHS ENDING MARCH 31, 2007 CURRENT MONTH $ 4,258,749.34 210,729.79 4,469,479.13 YEAR TO DATE 31,449,142.04 1,237,267.56 32,686,409.60 EXPENSES OFFICERS' SALARIES 9,603.88 62,362.22 OFFICE SALARIES 37,367.16 251,499.04 PAYROLL TAXES 3,849.56 23,232.47 EMPLOYEE RETIREMENT BENEFITS 4,977.62 37,137.66 HEALTH INSURANCE- OFFICER 1,409.09 8,454.54 HEALTH INSURANCE- OFFICE 9,234.90 55,767.99 LIFE INSURANCE- OFFICER 77.50 465.00 LIFE INSURANCE- OFFICE 160.58 963.48 LTD INSURANCE 958.05 5,613.79 LEGAL FEES 1,492.00 5,242.00 LEGAL -PRE- DEFENSE 0.00 114.75 AUDIT FEES 7,650.00 27,200.00 APPRAISAL FEE EXPENSE 1,375.00 2,750.00 AUTO EXPENSE 0,00 1,444.27 TRAVEL EXPENSE 278.40 27,104.87 ASSOCIATION MEMBERSHIPS 172.00 482.00 DUES & SUBSCRIPTIONS 14,382.00 15,470.00 EDUCATION/TRAINING /CONFER. 2,951.63 2,969.58 OFFICE LEASE 6,010.67 36,064.02 JANITORIAL / CLEANING 280.00 1,640.00 OFFICE /COMPUTER EQUIPMENT 0.00 18,774.14 TELEPHONE 1,198.35 9,578.69 COPY MACHINE LEASE 244.65 1,323.90 REPAIRS & MAINT. - EQUIPMENT 1,162.00 1,288.00 OFFICE SUPPLIES 919.96 10,328.77 NEWSLETTER 0.00 832.50 POSTAGE 1,254.50 5,854.49 INSURANCE - FLOOD /GENERAL 0.00 1,000.00 LOSS PREV EQUIP & SUPPLIES 5,823.14 11,531.51 MARKETING & PROMOTION 0.00 167.62 MEETING EXPENSE 0.00 4,008.20 MISCELLANEOUS EXPENSE 407.77 2,282.43 GALLAGHER MGMT FEES 97,579.75 585,478.50 GALLAGHER EXCESS INSURANCE 1,591,074.92 9,546,449.52 CLAIMS EXPENSE 1,250,000.00 7,500,000.00 TOTAL EXPENSES 3,051,895.08 18,264,875.95 REVENUE IN EXCESS OF EXPENSE $ 1,417,584.05 $ 14,421,533.65 .. PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY 3. RFQ Selection Committee Recommendation John Litton for Broker Services See attached recommendation from Selection Committee for Broker Services. Board Action: Approved Denied Deferred Other L" PUBLIC RISK MANAGEMENT OF FLORIDA 3434 HANCOCK BRIDGE PKWY, SUITE 203 FORT MYERS, FL 33903 1- 800 -367 -1705 MAIN: 239 - 656 -4666 FAX: 239 -656 -1066 Serving Florida Public Entities May 2, 2007 TO: Board of Directors of PRM FROM: Ross Furry, Executive Director RE: Recommendation of Selection Committee to Appoint Broker of Record to World Risk Management, LLC * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** On March 21, 2007, PRM and the Board appointed Selection Committee released a Request for Qualifications (RFQ) for insurance broker services. Serving on the Selection Committee were: John Litton, PRM Chairman, City of Lake Mary Robbie Chartier, North Representative to Executive Committee, Okeechobee County Frank Gilbert, City of Winter Garden Carol Rogers, City of Longwood Gerald Seeber, City of Oviedo (unable to attend interviews) The RFQ was advertised on Onvia DEMANDSTAR, an internet notification service with national coverage, and the Association of Governmental Pools (AGRIP) website. AGRIP also notified all of its members and Partner Members (Brokers) in a direct e-mail notice for PRM. Written responses to the RFQ were due on April 12, 2007. PRM received six (6) responses from the following: Alliance — Florida League of Cities AON Risk Services Employers Mutual Insurance Insurance Office of America Willis World Risk Management Board Members Page 2 May 2, 2007 The written responses were delivered to the Selection Committee and on April 19th each member independently provided their choice of the top three firms to be invited for an oral presentation and interview. The top three firms invited to make an oral presentation, be interviewed and answer questions from the Selection Committee were as follows: AON Risk Services Willis World Risk Management Each proposer was given an hour to make their presentation, although none utilized the entire time. A list of questions was developed by the Committee and asked of each firm. Follow up questions were asked based on the responses given by the representatives of the firms. Upon conclusion of all interviews and questions, the Chairman asked each of the Selection Committee members for their overall impressions of the three firms and to rank each firm. Discussion among the Committee ensued that expanded upon how they reached their conclusion as who was the most qualified firm to provide broker services for PRM going forward. The following motion was approved unanimously by the Selection Committee: "Motion to confirm the ranking of the Committee as (1) World Risk Management, (2) Willis, and (3) AON, and authorize the Chairman, Executive Director, Legal Counsel, and Insurance Advisor to negotiate a contract, term as appropriate, with World Risk Management, LLC, effective June 2007." It is the unanimous recommendation of the Selection Committee that the Board of Directors accept the Committee recommendation and appoint World Risk Management, LLC as the broker of record for Public Risk Management of Florida pursuant to the terms and conditions of the contract. Ross D. Furry Executive Director RDF:smb Note: Attached is the verbatim transcript of the Selection Committee discussion and selection of the broker to be recommended to the Board of Directors for approval. Oral Interviews for Broker Services — P &C Insurance 4/27/07 — 2:38 pm (Verbatim) John Litton: I'm going to ask each one of the Selection Committee members to give me your input feelings. You've been pretty quiet for the most part, and you know that's extremely important to this process. So, I don't care who goes first. Do you want to go first, Frank? Frank Gilbert Sure, I'll step out there. You know, I'll tell you in the end how I've ranked these firms. But, let me just first say that, you know, I think some of you know that I was kind of opposed to the sole deal of leaving Arthur J. Gallagher until I really understood what the problems and issues were. John: That's one meeting you could have been late for. Frank: Yeah, I imagine that. Thanks, John. And I was very concerned, you know, with World Risk Management being brought in at that point because of various issues. And I've got to tell you, I'm a relationship kind of person and one of the major reasons that I was concerned about Arthur J. Gallagher no longer being there is because people I ever heard from, from Arthur J. Gallagher, were Andy Cooper and Sonia. I mean nobody else ever called and they would call just to ask, How are things going, Is there that we can do for you, etc. So, I've built that relationship with that broker on that basis. Never heard from any of their management or anybody else above their level. Now they have left Arthur J. Gallagher and have gone with World Risk Management. I have to say that I feel very comfortable with continuing that relationship with them servicing the account and having knowledge of the account and knowledge of our markets and everything. You know they don't have a lot of experience other than granted they have a lot of individual experience they're bringing together collectively to service this account solely at this point. So in my opinion, I ranked them as World Risk Management, Willis and AON as 1, 2, and 3. John: OK. Carol? Carol Rogers: I felt that you asked the question regarding service because that was my only concem that they were the folks that were associated with the supposed bad service. And 1 was glad that they answered it as strongly as they did and I like all the similar reasons that they understand our program, they're here. We're going to be high on their priority list. We've got the commitments from them that we did. On the con side for AON and Willis, I didn't get any comfort out of anything that anybody said. It seemed like there would be an Internet presence, but that probably was the best we were going to be able to get. Willis, when they started out, they said they had a Georgia Municipal with 300 members and ran it with 3 staff. I don't see how you could 3 staff with 300 members on a Municipal group like that. I didn't understand that part of it. Ross Furry: It's a broker pool. They run the pool. They are the pool. They just happen to have an Executive Director if I'm not mistaken who used to work for Willis. That's how you can do that. Carol: Oh, 1 didn't understand that. I think they hedged a lot on their questions. I didn't feel like they had a good understanding even though their RFQ responses were pretty slick. I didn't really feel like they had an understanding of the issues here and that are unique to Florida. My ranking is World Risk Management first, AON second, and Willis third. John: Robbie. Robbie: OK. Let me gather all my thoughts. John: You can stand up. Robbie: That's all right. They'll come together. 1 concur with what's been said so far regarding the cons on AON and Willis. Specifically, with AON, there's some things that really kind of stood out in my mind and 1 wrote some questions along the way and comments that were made regarding "getting the best out of the market for PRM" was the comment that Marilynn (Madson) had made and like, how do you do that? It was never elaborated on. They're making statements without providing us with the exact knowledge of how you do that. You ask World Risk, how do you do that, and we got a very detailed explanation of how we were going to get, you know, the best rates in the market for Public Risk Management. They know what we're looking for. Another discussion, and this is just AON and Willis has got its own issues on this — the day -to- date admin, in Chicago. You know, on AON. How is that going to help me here in Florida, especially with Public Risk Management is a very hands on Pool. 1 mean every member wants that touchy, feely aspect and AON and Willis cannot provide that. They don't, although I think Willis may have a better idea of how to handle that with the Tampa office and Erin (Jennings), I don't see it at all with AON and completely think that World Risk would be 100% on the account which is what l think our membership is after. In terms of placing our property between October and April, specific answers right out of World Risk. The other ones were like it's a long term process, don't just run right into it. We're already there, we're already committed, and they're not understanding we're already committed. World Risk knew what we were into. Yes, that's obvious because they're coming from having just been on the account and have left the other brokerage firm, I understand. They definitely have an advantage coming into this process with the knowledge of the Pool. With the question being asked regarding relationship and service, I think that was very important question to ask because I think the rest of the members could look back at us and say why World Risk when these are the same members that just came off [AJG] and you had service issues. And it was very important to identify who the service issue was with and where their direction was coming from. I think that World Risk with Michele (Schaare) at the helm will, she'll insure that we get the kind of service that our members are used to getting in the past and will continue that way. I ranked them as World Risk, Willis and AON. 2 John: World Risk, Willis, AON? Robbie: World Risk, Willis, and AON. Frank: Can I add one other thing? John: Sure. Frank: It may convey the same thoughts that Robbie had and thank you for articulating them so much better than I did. John: She wasn't even standing up. Frank: But I also, with AON and Willis, the feeling I almost got was and Robbie said it, was that they didn't really know how we're structured and that we're already there. It was almost like I felt like they were kind of looking at us like, gee, we're going to come in and maybe redo something or redo everything and the way you all aren't doing things. And we've finally gotten to that comfort level that we think we're doing things the right way now. I mean so I just had funny feeling that they would be wanting to come in and restructure, redo, reorganize or whatever, so I was a little uncomfortable with that too. John: I felt both AON and Willis were basically offering us a cafeteria and we were going to select our products over the internet. That's kind of the way I was looking at it. Because, and I asked that question very specifically, you know, as to how they knew what they knew about PRM and how they, because i wanted to get their feedback, and I agree with what you just said. I mean, it's, they didn't have a clue. They really didn't. And they can tell us all day long that wasn't out there but 9110 of everything we do is public record. Frank: They could have researched it. John: So. 1 mean they could have done a lot better on that. I felt, you know, when we started this process back in December, I quite frankly did have concerns about the way we were going about it and did we do, did we give the notice and did we do all, everything we should. And I can tell you now after listening to this presentation today by Michele and World Risk Management, Andy, that I'm 100% behind them. I think AON and Willis, although you know as I've said all along a piece of paper holds still while you're writing anything on it and that's all they had to go on. And I quite frankly came in here wondering if any of the three of them were going to be the right one. You know, that we may have to go back through this process. And I was willing to do that. But not any more, not after listening to what they had to say today. I'm convinced that World Risk Management is the choice for PRM going forward. I'm proud to stand up and say that. i didn't like Willis. I just never got a comfort level with who we were going to be dealing with. One point person. The point person was out of South Carolina. I mean that's what he kept saying. And then when we tried to follow up, you know, we 3 kept getting, well you might be able to talk to somebody else. I didn't understand the PRM branded program either. I wasn't sure what all that meant, I guess that was that cafeteria. Robbie: They're leaving the Executive Director out is how I felt. That they were going to field all the phone calls and wouldn't need this office any more. That's kind of how 1 took that. Frank: That's where they're going to restructure us. Robbie: You know, I think our membership is still wanting to focus completely the Public Risk Management office initially and want direction of who in the organization to go to at the brokerage firm. John: That's what I keep saying that PRM is not broken. We are not broken. We just need change. Robbie: I thought that was true as well with both. Willis couldn't answer the question, what do you think about Public Risk Management. AON actually did respond fairly well that (1) we couldn't get any good information about your program because nobody would leak it out and, you know, the financials are great. That kind of thing we knew that. John: And the other thing really we haven't talked about at all here, but to me is important and that's the no charge for continued service. Everybody else had a charge. So my rankings are World Risk Management, AON, and Willis. Willis and AON are close, but the thing that put Willis number 3 in my mind was that I didn't know who we would be dealing with. I just couldn't get that comfort level. Carol: Woodside was like dosey all the way through the presentation. He sort of came on strong at the end when he was not on the script. Frank: The Firebaugh? Carol: No. Frank: That's his name, Firebaugh. Carol: I thought he had some good response near the end, but he didn't have enough. John: And if I have this right, we have a tie for second and third. Frank: Well, can we recommend that if we don't, aren't able to negotiate a contract with WRM, that we reconvene and decide on number 2? Do you need to think about the material some more or does somebody want to switch their position. 4 Carol: They're so close, I don't have a problem switching. Robbie: It doesn't matter to me. Robbie: I think Willis, this is just me. I mean Erin is in Tampa and she does do the day -to -day and that's why I went with Willis because she is here, she is dealing with Sunshine all the time, she likes that daily contact. She's the one that kind of sold me on Willis. I do like Embry and James has both offices in both places. That's why I chose Willis. So I'm not going to move my position. Carol: I'll go with Willis second. I liked their technical presentation. John: Well, guess what, then I will too. No, I'll stay put, I still don't know who to call. Robbie: Call Erin, if you can't get Erin, you get James. John: It said the single point of contact. Robbie: Well, Erin answered, but James just didn't back her up. Ross: He was supposed to be the single point of contact. If he wasn't available, you could call Erin. Robbie: I think his e-mail said to contact his team members. Ross: You're absolutely right. When he responded back, he asked that the PRM office contact his team members and let them know the details. Frank: That shows he's good at delegation. Ross: So's my wife. Frank: Could we ask the Executive Director to summarize all this as a hand -out for that meeting instead of having to get up and defend ourselves. Carol: I think the Chairman. Robbie: That's who I was going to say. Frank: I don't care who it is, I mean, just so it's summarized. John: We'll make sure it gets summarized and out. 1 think now that a motion is in order to reflect those rankings and the previous direction that we discussed. Robbie: Motion to confirm the ranking of the Committee as (1) World Risk Management, (2) Willis, and (3) AON and authorize the Chairman, Executive Director, 5 Legal Counsel, and Insurance Advisor to negotiate a contract with World Risk Management, LLC, effective June, 2007. John: Let's hear a second to that motion. Carol: I second it. John: For discussion, what would be the normal term of that agreement? Ross: The RFQ presented it to be an initial one year term. I want to get the brokerage agreement so that it doesn't interfere with the renewal period /policy year. John: Would the motion maker and the second consider that as an amendment to include that in the motion? Robbie: One year or John: To get the negotiating Carol: How about "term as appropriate "? Robbie: term as appropriate. John: All right, so we have a motion and a second. Susan, do you have that motion right there. Would you just read it back so that everybody. Susan Baron: Motion to confirm the ranking of the Committee as (1) World Risk Management, (2) Willis, and (3) AON, and authorize the Chairman, Executive Director, Legal Counsel, and insurance Advisor to negotiate a contract, term as appropriate, with World Risk Management, LLC, effective June, 2007. John: Any other discussion? All in favor say Aye. All Aye. John: Opposed? [silence] Motion carried. 6 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY 4. Executive Director's Report Ross Furry A. National PRIMA Conference — National PRIMA Conference will be held June 10 -13 in Boston. Attending will be John Litton, Jeff Sutton, Jennifer Valdes and Robbie Chartier from the Executive Committee, as well as the following PRM Scholarship recipients: Phil Wickstrom, City of Punta Gorda Jacki Soya, City of Lake Mary Lisa Smith, City of LaBelle Linda Stilson, City of Crystal River Sharry Boldt, City of Zephyrhills Steve Gailbreath, City of North Port B. Hurricane Claims Status — Report Attached (4/16/07) C. Actuarial Report and Financial Statements for FY Ending 9/30/06 — Reports were distributed to members previously under separate cover. D. Review of Member Premiums Due 10/1/07- 3/31/08 & Acknowledgment of Balance Due from Members — In the December Board Meeting packet, each member received a document showing monies advanced for them from surplus through 3/1/08. Each member was also requested to sign an acknowledgment letter for the monies due 10/1/07. Attached is an updated list of those members who have not executed their acknowledgment letter for the advance of premiums. Those members are requested to execute the attached letter acknowledging the member's monies due and return to the PRM office. E. Status of On -Site Property Appraisals — See attached. 4.B. HURRICANE CLAIMS STATUS Charley 08 -13 -04 Frances 09 -05 -04 Ivan 09 -15-04 Jeanne 09 -26 -04 Wilma 10 -24 -05 Totals Total Claims 1004 97 2 151 433 1687 Claims Closed 956 96 2 114 403 1571 Claims Open 48 1 0 37 30 116 Payments 38,738,891.69 379,185.00 342.93 6,001,618.21 11,695,861.26 56,815,899.09 Total Experience 43,965,514.69 379,685.10 342.93 7,319,386.87 19,023,985.31 70,688,914.90 PRM - Hurricane Charley D/L 08 -13 -04 Member Total Claims # Open # Closed Pa ments Total Experience Remaining Reserves Building Values Affected Deductibles City of Cape Coral 233 0 233 1,344,589.74 1,344,589.74 0.00 144,738,280 2,894,763 Desoto County 67 6 61 9,302,836.37 13,669,989.86 4,367,153.49 36,724,360 734,488 Hendry County 1 0 1 0.00 0.00 0.00 235,400 4,708 City of North Port 16 0 16 1,573.11 1,573.11 0.00 8,974,470 179,487 Lee County Port Authority 10 0 10 1,265.00 1,265.00 0.00 71,930,700 1,438,614 City of Punta Gorda 198 36 162 4,419,459.51 5,183,509.09 764,049.58 37,751,716 755,036 Hardee County 100 0 100 7,382,137.21 7,382,137.21 0.00 45,215,077 904,507 City of Sebring 25 0 25 1,416,557.88 1,416,557.88 0.00 34,792,479 695,853 City of Wauchula 74 0 74 3,720,688.12 3,720,688.12 0.00 11,694,100 233,882 City of Avon Park 22 1 21 1,241,598.21 1,289,200.21 47,602.00 9,902,521 198,051 City of Fort Meade 50 0 50 1,457,990.85 1,457,990.85 0.00 12,683,375 251,668 City of Winter Garden 5 0 5 0.00 0.00 0.00 2,295,968 45,920 Public Risk Management 2 0 2 8,330.58 8,330.58 0.00 202,000 4,040 Highlands County 40 0 40 402,019.72 402,019.72 0.00 30,010,500 600,210 City of Lake Wales 91 4 87 7,646,157.65 7,688,975.58 42,817.93 39,696,260 793,933 City of Oviedo 19 0 19 103,443.68 103,443.68 0.00 11,447,484 228,950 City of Deltona 'n 22 1 21 0.00 5,000.00 5,000.00 12,610,359 252,207 Sun Lakes of Sebring 29 0 29 290,244.06 290,244.06 0.00 5,990,303 119,805 Totals: 1004 48 956 38,738,891.69 43,965,514.69 5,226,623.00 516,895,352 10,336,122 Status as of 04 -16 -07 PRM - Hurricane Frances D/L 09 -05 -04 Member Total Claims # Open # Closed Payments Total Experience Remaining Reserves Building Values Affected Deductibles Desoto County 1 0 1 0.00 0.00 0.00 11,398,400 227,968 Lee County Port Authority 1 0 1 0.00 0.00 0.00 11,020,000 220,400 City of Sebring 1 0 1 0.00 0.00 0.00 233,151 4,664 City of Clewiston 4 0 4 0.00 0.00 0.00 7,655,000 153,100 City of Avon Park 3 0 3 0.00 0.00 0.00 3,741,290 74,826 City of Eustis 5 0 5 0.00 0.00 0.00 11,417,926 244,918 City of Longwood 1 1 0 42,446.90 42,947.00 500.10 1,039,300 20,786 Okeechobee County 28 0 28 0.00 0.00 0.00 21,807,200 436,144 City of Pahokee 15 0 15 0.00 0.00 0.00 8,151,600 163,032 City of Belle Glade 19 0 19 0.00 0.00 0.00 23,368,141 467,363 Town of Lady Lake 1 0 1 336,738.10 336,738.10 0.00 3,314,495 66,290 City of Okeechobee 4 0 4 0.00 0.00 0.00 3,373,440 67,469 City of Deltona 12 0 12 0.00 0.00 0.00 12,549,504 250,990 Sun 'n Lake 2 0 2 0.00 0.00 0.00 6,513,786 130,275 Totals: 97 1 96 379,185.00 379,685.10 500.10 125,583,233 2,528,225 Status as of 04 -16 -07 PRM - Hurricane Ivan D/L 09 -15 -04 Member Total Claims # 0 • - n # Closed Pa ments Total Ex • erience Remainin! Reserves Buildin • Values Affected D eductibles 880 Holmes County 2 0 2 342.93 342.93 0.00 44,000 Status as of 04 -16 -07 PRM - Hurricane Jeanne D/L 09 -26 -04 Member Total Claims # Open # Closed Payments Total Experience Remaining Reserves Buildin ! Values Affected Deductibles Glades County 8 0 8 0.00 0.00 0.00 9,100,200 182,604 Hendry County 1 0 1 0.00 0.00 0.00 686,900 13,738 City of Sebring 18 4 14 191,160.70 307,478.70 116,318.00 35,409,298 708,188 City of Moore Haven 1 0 1 0.00 0.00 0.00 321,800 6,436 City of Clewiston 13 0 13 799.85 799.85 0.00 6,549,700 130,994 City of Zephyrhills 2 0 2 0.00 0.00 0.00 185,900 3,718 Town of Kenneth City 1 0 1 2,064.00 2,064.00 0.00 91,900 1,838 City of Eustis 3 1 2 0.00 67,000.00 67,000.00 1,384,740 27,695 Town of Belleair 1 0 1 0.00 0.00 0.00 1,573,700 31,474 City of Crystal River 3 0 3 2,084.00 2,084.00 0.00 2,317,100 46,342 Highlands County 35 1 34 287,320.86 287,321.86 1.00 41,533,600 830,652 Okeechobee County 30 30 0 3,293,493.34 4,427,260.00 1,133,766.66 19,849,000 396,980 City of Lake Wales 1 0 1 554.58 554.58_ 0.00 0 0 Town of Lake Placid 5 0 5 0.00 0.00 0.00 1,403,000 28,060 City of Pahokee 1 1 0 2,210,317.00 2,211,000.00 683.00 1,872,300 37,446 City of Belle Glade 2 0 2 0.00 0.00 0.00 15,806,253 316,125 City of Okeechobee 17 0 17 13,823.88 13,823.88 0.00 2,061,985 41,240 City of Deltona 'n 3 0 3 0.00 0.00 0.00 2,081,490 41,631 Sun Lake 6 0 6 0.00 0.00 0.00 5,899,953 117,999 Totals: 151 37 114 6,001,618.21 7,319,386.87 1,317,768.66 148,128,819 2,963,160 Status as of 04 -16 -07 PRM - Hurricane Wilma D/L 10/24/05 Member Total Claims # Open # Closed Payments Total Experience Remainin s Reserves Building Values Affected Deductibles Desoto County 1 0 1 0.00 0.00 0.00 9,279,500 185,590 Glades County 37 0 37 1,074,364.55 1,074,364.55 0.00 11,824,729 194,149 Hendry County 85 29 56 4,270,817.35 11,598,940.79 7,328,123.44 35,044,728 688,414 City of Labelle 4 0 4 17,417.00 17,417.00 0.00 854,900 17,098 Lee County Port Authority 10 0 10 589,807.16 589,807.16 0.00 3,618,400 72,368 City of Wauchula 1 0 1 950.00 950.00 0.00 65,000 1,300 City of Moore Haven 5 0 5 238,710.04 238,710.04 0.00 712,500 14,250 City of Clewiston 55 1 54 1,998,181.16 1,998,181.77 0.61 11,590,641 226,286 South FL Conservancy 17 0 17 96,895.32 96,895.32 0.00 731,400 15,628 Highlands County 16 0 16 6,362.62 6,362.62 0.00 30,034,750 600,698 Okeechobee County 49 0 49 417,046.18 417,046.18 0.00 43,851,847 877,037 City of Lake Wales 1 0 1 0.00 0.00 0.00 775,300 15,506 City of Pahokee 86 0 86 1,806,938.94 1,806,938.94 0.00 11,834,017 205,631 City of Belle Glade 62 0 62 1,117,058.29 1,117,058.29 0.00 15,985,755 319,714 City of Okeechobee 4 0 4 61,312.65 61,312.65 0.00 1,979,300 39,586 Totals: 433 30 403 11,695,861.26 19,023,985.31 7,328,124.05 178,182,767 3,473,255 Status as of 04-16 -07 4.D. REVIEW OF MEMBERS PREMIUMS & ACKNOWLEDGMENT OF BALANCE DUE 2006 -07 - 2007/08 Acknowledgement Letters Not Returned Belle Glade $60,859 Deltona $102,957 Fort Mead $32,985 Hamilton County $42,498 Lady Lake $23,992 Lake Wales $76,312 Longwood $51,030 Port Richey $20,726 Safety Harbor $62,006 Sebring $57,053 Serving Florida Public Entities October 1, 2006 Dear Member, Enclosed is your first quarter invoice for the current year, and a sheet showing your full 12 month charges for the current year, the eighteen month balance due for the first six months of next year, and the total 18 month costs of the current program. The sheet mentions that the excess property insurance premium and the Citizen's assessment are not known at the current time, and will be an additional charge added to the premium for the first half of the 2007/2008 premium. As approved during the PRM Board meeting of September 15, 2006, the pool is paying the premiums for the first two quarters of 2007/2008 from the surplus monies with no interest to be charged. Your total for six months of the eighteen months premiums paid in advance is Please sign for your understanding of these terms and return this sheet to our office by 10/15/06. If you have any questions regarding this matter, please call PRM's accountant, Lynne Pysarchuk at 239 - 656 -4666 or 800 - 367 -1705. Board member signature and date Entity Name 3434 Hancock Bridge Parkway. • Suite 203 • Fort Myers, Florida 33903 (239) 656 -4666 • (800) 367 -1705 • Fax (239) 656 -1066 4.E. STATUS OF. ON -SITE PROPERTY APPRAISALS PRM of Florida Appraisal Program Status Log (In Processing) Appraiser Member Number PRM Member Contact Prelim Bldg Initial Count Contact Date Field Start Date Field End Date Date Reports Sent # of Bldgs Appraised NOTES Invoked Member (Yes /No) Matthias 15 City of Clewiston Ted Byrd 60 3/22/07 3/27/07 3/29/07 83 Gazebos were previously done as PITO. Buildings at WWTP were not previously broken out New building at Trinidad Park. Dugouts were previously listed as PITO and only 1 line item. Matthias 03 Glades County BOCC Robert Giesler 42 4/4/07 4/10/07 4/12/07 56 Picnic Shelters were added Matthias 04 City of Moore Haven Maxine Brantley 38 3/23/07 4/12/07 4/13/07 37 Shelters at Riverside Park were missing Torcivia 20 Town of Bellealr Susan Lee 13 4/4/07 4/10/07 4/10/07 15 TorcNia 25 City of New Port Richey Jeff Sutton 68 3/30/07 4/11/07 4/13/07 70 Rodriguez 22 City of Fort Meade Phyllis Kirk 45 4/4/07 4/11/07 4/13/07 TBD Rodriguez 23 City of Crystal River Linda Stllson 43 4/10/07 4/16/07 4/20/07 TBD PRM of Florida Appraisal Program Status Log (Members To Be Scheduled) Appraiser Member Number PRM Member Contact Initial Contact Date Field Start Date Field End Date Date Reports Sent # of Bldgs Appraised NOTES Invoiced Member (Yes/No) Matthias 01 Lee County Port Authority Pamela Conner 4/10/07 4/23/07 Matthias 08 Hendry County BOCC Judi KennI gton -Korf Tordvia 09 Town of Longboat Key Jane O'Connor Tordvia 10 Hardee County BOCC Jane Long Torcivia 11 City of Sebring Jeff Carlson TorcMa 12 City of Wauchula James Braddock 13 Qty of Northport Steve Gailbreath Rodriguez 14 Qty of Tavares Crissy Bublitz 5/2/07 Tordvia 16 City of Avon Park Kathy Bennett Tordvia 18 Qty of Gulfport Jennifer Valdes 5/14/07 Tordvia 19 City of South Pasadena James Graham 5/14/07 Tordvia 21 City of Safety Harbor BID Cropsey 5/8/07 Torcivla 24 Qty of Port Richey Shirley Dresch 5/7/07 Rodriguez 26 Qty of Eustis Mace Sheppard Tordvia 28 Town of Kenneth Qty Nancy Beelman 29 Northport Utilities Steve Gailbreath Rodriguez 30 Qty of Longwood Dawn Jadcson 4/30/07 Rodriguez 31 City of Winter Garden Frank Gilbert 5/7/07 Matthias 32 Okeechobee County BOCC Robbie Chortler 33 Qty of Punta Gorda Phil Wlckstrom Matthias 35 Town of take Placid Arlene Tuck Matthias 37 City of Belle Glade Vivian Hunter Matthias 40 South Florida Conservancy District D. Ron Graydon Matthias 06 Qty of LaBelle Michael Boyle This report indicates those members to be scheduled for on -site appraisals. Those without dates have yet to be contacted by CBIZ CB Z Public Risk Management of Florida 2006 -2007 Insurable Value Comparison Entity Trended Feb. 2007 % Code Entity Description 2006 Total NRC Total NRC Change 01 SW FLORIDA INT. AIRPORT- LEE COUNTY PORT AUTHORITY $ 270,448,500 $ 292,300,900 8.1% 03 GLADES COUNTY BOCC $ 15,114,400 $ 16,228,700 7.4% 04 CITY OF MOORE HAVEN $ 6,100,500 $ 6,538,300 7.2% 06 CITY OF LABELLE $ 6,028,000 $ 6,508,900 8.0% 07 DeSOTO COUNTY $ 52,259,900 $ 62,438,000 19.5% 08 HENDRY COUNTY BOCC $ 43,267,500 $ 46,581,100 7.7% 09 TOWN OF LONGBOAT KEY $ 17,904,700 $ 19,086,700 6.6% 10 HARDEE COUNTY BOCC $ 42,183,400 $ 45,074,300 6.9% 11 CITY OF SEBRING $ 30,743,300 $ 34,026,900 10.7% 12 CITY OF WAUCHULA $ 15,314,300 $ 16,235,700 6.0% 13 CITY OF NORTH PORT $ 36,494,500 $ 38,948,200 6.7% 14 CITY OF TAVARES $ 18,940,300 $ 21,382,600 12.9% 15 CITY OF CLEWISTON $ 22,860,218 $ 24,312,000 6.4% 16 CITY OF AVON PARK $ 28,574,200 $ 30,461,200 6.6% 17 CITY OF ZEPHYRHILLS $ 38,734,300 $ 41,230,100 6.4% 18 CITY OF GULFPORT $ 20,996,800 $ 22,070,400 5.1% 19 CITY OF SOUTH PASADENA $ 5,156,500 $ 5,503,000 6.7% 20 TOWN OF BELLEAIR $ 10,229,900 $ 13,919,200 36.1% 21 CITY OF SAFETY HARBOR $ 18,885,800 $ 20,136,600 6.6% 22 CITY OF FORT MEADE $ 14,589,600 $ 15,711,700 7.7% 23 CITY OF CRYSTAL RIVER $ 17,956,500 $ 19,203,500 6.9% 24 CITY OF PORT RICHEY $ 10,091,700 $ 11,226,700 11.2% 25 CITY OF NEW PORT RICHEY $ 49,280,300 $ 52,603,100 6.7% 26 CITY OF EUSTIS $ 40,903,700 $ 43,623,900 6.7% 27 CITY OF LAKE MARY $ 28,661,500 $ 30,666,600 7.0% 28 TOWN OF KENNETH CITY $ 1,629,400 $ 1,739,700 6.8% 29 NORTH PORT UTILITIES $ 15,884,300 $ 16,874,400 6.2% 30 CITY OF LONGWOOD $ 10,925,400 $ 12,254,600 12.2% 31 CITY OF WINTER GARDEN $ 30,916,100 $ 32,933,700 6.5% 32 OKEECHOBEE COUNTY BOCC $ 56,018,200 $ 60,571,200 8.1% 33 CITY OF PUNTA GORDA $ 46,274,800 $ 49,376,300 6.7% 34 CITY OF PAHOKEE $ 18,116,400 $ 20,192,700 11.5% 35 TOWN OF LAKE PLACID $ 5,339,800 $ 5,705,400 6.8% 36 CITY OF LAKE WALES $ 47,220,900 $ 50,392,900 6.7% 37 CITY OF BELLE GLADE $ 41,928,600 $ 44,969,100 7.3% 40 SO. FLA. CONSERVANCY $ 619,100 $ 666,900 7.7% 41 TOWN OF LADY LAKE $ 14,336,000 $ 15,293,500 6.7% 42 HAMILTON COUNTY $ 15,851,100 $ 16,710,100 5.4% 43 CITY OF OVIEDO $ 47,820,900 $ 50,191,900 5.0% 44 LEVY COUNTY $ 21,670,243 $ 23,482,700 8.4% 45 HOLMES COUNTY BOCC $ 15,428,500 $ 17,582,600 14.0% 46 CITY OF OKEECHOBEE $ 3,517,800 $ 3,769,200 7.1% 47 CITY OF ST. PETE BEACH $ 18,184,700 $ 19,414,700 6.8% 49 SUN (N) LAKE OF SEBRING IMPROVEMENT DISTRICT $ 12,755,900 $ 13,602,100 6.6% 50 CITY OF INDIAN ROCKS BEACH $ 5,124,300 $ 5,453,600 6.4% 51 CITY OF TEMPLE TERRACE $ 72,335,800 $ 74,456,800 2.9% 52 HIGHLANDS COUNTY BOCC $ 104,977,500 $ 107,142,600 2.1% 78 CITY OF DELTONA $ 38,152,933 $ 40,721,600 6.7% TOTALS:I $ 1,506,748,9941 $ 1,619,516,600 1 7.5% Local Governments' Requirements Under GASB Statement 45 ❖ GASB to require governments that provide other post employment benefits (OPEBs) to begin showing the accrued liabilities associated with their OPEBs on their financial statements and whether, and to what extent, progress is being made to fund the liability. • Medical • Dental • Prescription Drugs • Vision Local Governments' Requirements Under GASB Statement 45 Most governments currently recognizing OPEBs on a pay as you go basis ••• Therefore, most local governments have not deposited enough (or any) moneys to pay for the unfunded liabilities ••• Strong incentives from GASB and the financial markets to develop a plan for managing the unfunded OPEB liabilities Local Governments' Requirements Under GASB Statements 45 GASB Requirements are being phased in. Employers must report beginning in first fiscal year starting after Implicit Subsidy Florida law requires rating active and retired employees together • GASB requires valuation based on age adjusted premium Preliminary Estimates of State OPEB Liabilities Preliminary Estimates of Municipality And School Board OPEB Liabilities Annual Required Contribution (ARC) City with 160 employees and 37 retirees UAL ARC: Normal Cost Amortization Interest Total Pay -as- you -go Employer Contributions Vary •.� No explicit contribution ❖ Flat dollar (per year of service) • Percentage (50 % of retiree and dependent cont.) ❖ Full cost for retiree, none for dependents County A 4800 employees, 130 retirees County B 4000 employees, 1500 retirees UAL County B $342, 000, 000 ARC: Normal Cost Amortization Interest Total $12, 553,000 12,670,000 1,009,000 $26,232, 000 Pay- as -you- go $ 372,000 $6;669,000 Action Steps Perform Actuarial Valuation • Calculate Actuarial Liability • Calculate ARC •'• Develop fund ❖ Consider changes Benefit design and eligibility ❖ Implement Funding Options Pay -as- you -go (build up unfunded liability on balance sheet) Earmark funds (establish reserve) Ramp up to ARC < 5 years (.where will cash come from ?) .• ARC (increase other expenditures ?) .• Pre -fund (asset sale or trans .• Issue OPEB Bonds (fully fund Benefit Design and Eligibility 1. Limitations: Statutes and Collective Bargaining Agreements: 2. Plan Changes may include: a. Eligibility b. Contributions (retirees and dependents) Defined contribution plan Medicare Advantage / 'DP/ PFFS Resources to Improve Clinical and Financial Outcomes Steve Garcia, AVP, Claims Munich Reinsurance America, Inc. Munich Re America Munich Re Group Resources to Improve Clinical and Financial Outcomes Steve Garcia, AVP, Claims Munich Reinsurance America, Inc. Pareto cost distribution 8350,000 410,000,000 High Acuity Claims Mean 530,000 Median-50% $500 Frequency distribution 78th areto Group 98%-99% z Catastrophic, High - Acuity, Long -Term or Complex Case High -Cost Claims • Burns (severe) • Traumatic Brain Injury* • Spinal Cord Injury • Low Back Pain /Injury • Reflex Sympathetic Dystrophy (RSD) • Amputations • Multiple Trauma • Unusual Occupational Disease • Cancers • Organ Transplants • Spinal Surgeries • (only 17% of patients get care consistent with AANS guidelines) 1 Cat Claim Cost Distribution Cost End of Life Periodic Acute Complications MMI 6 mo. -24mo Time The "Challenges" Facing Claims Professionals :M=.* • Difficult to obtain information about the injury and treatment in the immediate aftermath of a catastrophic event • Inability to influence medical practice or assess the quality of specialized care in highly complicated clinical situations • Emotionally charged environment for injured employee, family and employer • Medical cost projections /reserves difficult to develop Cost Driver Analysis • Poor or incomplete medical diagnosis of the patients injuries • Diagnostic errors and medical mistakes • Inadequate or incorrect diagnostic testing and imaging studies • Lack of adequate specialists and expert referrals • Little or no coordination between multiple acute care and rehabilitation providers • Hospitals with out appropriate medical services and expertise • Inadequate rehabilitation medical care 2 Medical Errors z An exhaustive study done by the National Academy of Sciences Institute of Medicine published in 1999 indicated the following: • 44,000 to 98,000 deaths occur annually in our nation's hospitals from preventable medical mistakes • 1,000,000 non -fatal injuries are caused by medical errors which cost $29 billion annually • 90,000 hospital born infections occur annually, with at least 50% resulting from physicians failing to wash their hands between patients History- Research Questions Can we effect the outcomes of high acuity claims? If we use genuine experts to consult and treat, does it make a difference? Can we measure and quantify the results? • Clinical Outcomes • Financial results •If so, are the results reproducible? Best Doctors Inc. ww.we... Optimum Outcomes In Medically Complex Cases 3 About Best Doctors... # .401100 • Founded in 1989 by Harvard Medical School professors of medicine to serve the needs of international patients and physicians • Improves quality of care by ensuring patients get the right diagnosis and treatment • Pioneered a worldwide database of 50,000 doctors recognized as the best in their specialties • Success in workers' compensation market led to the development of a group health offering in early 2005 m Best Doctors 111 110 0•00100 *MO 110 600 Johns Hopkins Best Doctors Core Organization Brigham and Women's Hospital Harvard faculty Rehabilitation Institute of Chicago Best Doctors Physicians Database 70% at Academic Merkel centers Cleveland Clinic M D Anderson- Dallas Mayo Grog University of PerinsyNenia Northwestern University IUC San Francisco, Davis I University of Chcago I UCLA Medical Center Sloan Kettering Stanford University Comell Well Medical Center 30,000 physicians 11 We offer a unique service that ... Uses the expertise of the nation's top physicians to assist in guiding complex or atypical medical cases Impacts high -cost conditions not addressed by current care management solutions: we change the diagnosis +20% of the time and treatment +60% of the time for patients with a serious or complex medical condition. 12 4 The Three-Step Process connects you to world - class specialists Medical Analytic Process (MAP) 1. Infarmatlen Gathminn 2 lnfml Doctors Cum/114m la 3. Expert Solution Fintllnj] ea wemn6men cmm�am Paten. m.Elcal,.cams, MRI Images, CT scans, Pathology OOOUes, oXmr ellMCal materials Our Workers' Compensation Goals... •MunInt Mnrem • Respond immediately with guidance of an elite team of practicing physicians • Establish prognosis, avoid complications, and improve patient outcomes during the acute, rehabilitation and chronic care phase • Influence physician behavior and improve the ultimate and permanent health status of the patient • Improve financial outcomes significantly • Substantially enhance process to asses potential MMI 10 Barriers to the Best Care • Lack of care coordination: multiple specialists' involvement without comprehensive oversight • Emphasis of early hospital discharge for post- surgical patients • Rehabilitation facilities lacking resources for acute care management • Physician prescribing practices • Inappropriate treatment plan due to lack of physician expertise 16 5 Obstacles in the Workers' Compensation Community • Immediate need to set reserves based on raw data • Access to incomplete medical records and /or retrospective account of medical progress • Non - compliant patients • Poor psychosocial dynamics within the family unit • Inability to proactively address complication factors (dependant upon resources) 15 Programs • CatCare Acute problems TBI, burn, SCI, multiple trauma, upper extremity amputation, vascular insult (degolving), malnourishment with wounds • STEP Non - acute, single diagnosis Knees, shoulders and backs. Prosthetic fittings, post- concussion syndrome, skin infections, medication review for appropriateness 18 Programs Munball Re deep • LEGACY Mature or chronic cases Slow progression, out of control costs, 24/7 care. Uncertain if care is appropriate. • LEGACY, Phase II Executes on Legacy Action Plan Coordination of care with treating MD, patients, claims specialists and Best Doctors. 18 6 Discoverable Data • CatCare: 59.2% of cases avoided major invasive procedures recommended by initial treating MD(s) • Only 42% of cases had either correct diagnosis or treatment plans • LEGACY: Percentage of cases where diagnosis and or treatment changes were recommended: 90.5% 1s Cat Claim Cost Distribution Anticipated tttect Cost 1 Current Cost Distribution Best Doctors Cases MMI End of Life Periodic Acute Complications • t. ...loan attendant care and periodic health costs 6 mo. -24mo Time Source: 20 Chemical Burn Case Study 36 -year -old male suffered chemical burn while working as a mechanic. ED releases same day of injury Adjuster meets patient, takes pictures Determines burn is not significant 21 7 PCP determines patient can return to work 2 weeks post injury No rehabilitation burn treatment plan One year post- injury, patient has not returned to work Expert Effect/Financial Impact tauwoa Application of most appropriate & conservative treatment regimen (154 Trauma Cases) • Mean per claim cost reduction was $456,517 during 1'" year • $230,570 in avoided inpatient hospital and surgical costs during the acute treatment phase of the claim, • Median (50. percentile) is 5265,000 • 59.2% of cases avoided one or more invasive surgical procedures recommended by the patients treating physicians. A Open Forum Questions and Comments All Referrals 866.237.3286 8 Thank you very much for your attention. Steve Garcia, AVP, Claims Munich Reinsurance America, Inc. :2."7:".e:E:tiNT:St;Ol.i51:i'+:11:7:`iti■i:nn":"57°V.iin:B.11:FiiIFE:., 9 Speaker Profile STEVE GARCIA Steve Garcia is a Assistant Vice President of Claims, having joined the Chicago branch of Munich Re America in 2002. His current clients include multi -line insurance companies and alternative insurance programs involving large deductibles, self - insured retentions and captive insurance companies. He regularly works with these clients on evaluating, reserving & developing settlement or defense plans on high exposure losses. Mr. Garcia began his insurance career with Kemper Mutual Insurance Group where he was trained as a multi -line adjuster. Mr. Garcia served as the Ceded Reinsurance Claims Manager for a national carrier and was responsible for reporting, billing and collecting approximately $15M per month in reinsurance recoverables. Mr. Garcia developed and implemented reports for the senior management team and created a database for tracking the reinsurance recoverables. Mr. Garcia holds a Bachelor of Business degree in Finance from the University of Wisconsin - Whitewater. IND Ei 5 a) (1) E (i) E � (,) ca Qca 0 0 0 Harvard Medica Trauma Initial Assessment and Management Stephen J. Ferzoco, MD Assistant Professor of Surgery Harvard Medical School Objectives • Apply principles of primary and secondary surveys • Identify management priorities • Institute appropriate resuscitation and monitoring procedures • Recognize value of patient's history and biomechanics of injury • Anticipate pitfalls Key Questions • How do 1 prepare for a smooth transition from the prehospital to the hospital environments? • What is a quick simple way to assess the patient in 10 seconds? • What is the secondary survey and when does it start? 1 Key Questions • How can I minimize missed injuries? • Which patients do I transfer to a higher level of care? • When should the transfer occur? Concepts of Initial Assessment Primary Survey Adjuncts Definitive Care Resuscitation 1 1 Reevaluation Reevaluation Detailed Secondary Survery Adjuncts Initial Assessment • Primary survey and resuscitation of vital functions are done simultaneously in a team approach 2 Prepare for a smooth transition from the prehospital • Primary survey and resuscitation of vital functions are done simultaneously in a team approach Primary Survey • Airway • Breathing • Circulation • Disability • Exposure /Environment Special Considerations • Trauma in the elderly • Pediatric trauma • Trauma in pregnant women 3 Primary Survey • Establish patent airway — Protect c -spine — Pitfalls? • Equipment failure • Inability to intubate • Occult airway Injury • Progressive loss of airway Primary Survey • Assess and ensure adequate oxygenation and ventilation — Pitfalls? • Airway vs ventilation problem? • Iatrogenic pneumothorax or tension pneumothorax Assess for organ perfusion? • Level of consiousness • Skin color and temperature • Pulse rate and character 4 Primary Survey • Circulatory Management - Control hemorrhage - Restore volume - Reassess parameters - Pitfalls? • Elderly • Children • Athletes • Medications Primary Survey • Disability - Baseline neurologic evaluation • GCS scoring • Pupillary response • Watch for neurologic deterioration Primary Survey • Exposure /Environment - Completely undress patient - PREVENT HYPOTHERMIA 5 Resuscitation • Protect and secure airway • Ventilate and oxygenate • Stop the bleeding! • Vigorous shock therapy • Protect from hypothermia Adjuncts to Primary Survery Vital Signs EKG I / ABGs Urinary output ADJUCTS //Pulse oximeter 1 Urinary/gastric catheters 6 Adjuncts to Primary Survery Consider early transfer • Do not delay transfer for diagnostic tests • Use time before transfer for resuscitation When to start? After Primary survey is completed ABCDEs are reassessed Vital functions are returning to normal 7 What are the components? • History • Physical exam: Head —to —toe • Tubes and fingers in every orifice • Complete neurologic exam • Special diagnostic tests • Reevaluation Secondary Survey • History A Allergies M Medications P Past Illnesses L Last meal E Events /Envirnoment 8 Secondary Survey Head — GCS score — Neurological exam — Comprehensive eye and ear exam Pitfalls — Unconsciousness — Periorbital edema — Occluded auditory canal Secondary Survey Maxillofacial — Bony crepitus — Deformity — Malocclusion Pitfalls — Potential airway obstruction — Cribiform plate fracture — Frequently missed Secondary Survey • Cervical spine — Tenderness — Complete motor /sensory exams — Reflexes — Imaging studies Pitfalls — Altered sensorium — Inability to cooperate with clinical exam 9 Secondary Survey Neck (soft tissues): Pitfalls — Delayed symptoms and signs — Progressive airway obstruction — Occult injuries Chest — Inspect — Palpate — Percus — Auscultate — Obtain x -rays Secondary Survey Abdomen — Inspect — Auscultate — Palpate — Percuss — Reevaluate — Special studies 10 Secondary Survey • Abdomen: Pitfalls? — Hollow viscus injury — Retroperitoneal injury — Extensive pelvic manipulation Secondary Survey Perineum — Contusions, hematoma, lacerations, urethral blood Rectum — Sphincter tone, high- riding prostate, pelvic fracture, rectal wall integrity, blood • Vagina - Blood, lacerations • Pitfalls — Urethral injury to women, pregnancy Secondary Survey • Musculoskeletal: Extremeties — Contusion, deformity — Pain — Perfusion — Neurovascular status — X -rays as needed 11 Secondary Survey • Musculoskeletal: Pelvis — Pain on palpation — Symphysis widening — Unequal leg length — Instability — X -ray as needed Secondary Survey • Musculoskeletal: Pitfalls — Potential blood loss — Missed fractures — Soft tissue or ligamentous injury — Compartment syndrome Secondary Survey • Neurological: Brain — GCS score — Lateralizing signs — Frequent reevaluation — Prevent secondary brain Injury — EARLY NEUROSURGICAL CONSULT 12 Secondary Survey Neurological: Spine and Cord — Complete motor sensory exam — Image as needed — Reflexes — EARLY NEUROSURGICAL OR ORTHOPEDIC CONSULT Secondary Survey • Neurological: Pitfalls — Incomplete immobilization — Subtle increase in Intracranial pressure with manipulation — Rapid deterioration Minimize missed injuries? • High index of suspicion • Frequent reevaluation and monitoring 13 Pain management • Relief of pain /anxiety as appropriate • Administer intravenously • Careful monitoring is essential Which patient do 1 transfer? • Those whose injuries exceed institutional capabilities • Examples — Multisystem or complex injuries — Patients with comorbidities or age extremes When do 1 transfer patient • As soon as possible after stabilizing measures are completed — Airway and ventilatory control — Hemorrhage control (operative) — AVOID NEEDLESS DELAY 14 Transfer to Definitive Care • As soon as possible after stabilizing measures are completed — Airway and ventilatory control — Hemorrhage control (operative) — AVOID NEEDLESS DELAY Adjuncts to Secondary Survey Local facility Transfer Agreements Local resources Trauma Center Specialty Facility Records, Legal Considerations • Concise, chronological documentation • Consent for treatment • Forensic evidence 15 Stephen J. Ferzoco, M.D. Chief of Emergency Surgery Associate Director of Level 1 Trauma Center Brigham and Women's Hospital Dr. Ferzoco is the Chief of Emergency Surgery and Associate Director of Level 1 Trauma Center at Brigham and Women's Hospital in Boston, Massachusetts. In addition, he is the Associate Program Director of the Residency Training Program for the Department of Surgery. Dr. Ferzoco, an Associate Professor of Surgery at Harvard Medical School, graduated Tufts University and Yale University School of Medicine. Dr. Ferzoco completed his residency training in General Surgery at Brigham and Women's Hospital. His specialties include General Surgery and Gastrointestinal Surgery, and among his clinical interests are hernias and trauma. He is a regular contributor to the www.UpToDate.com website on topics relating to gastroenterological surgery and trauma. Clinical Background MD Degree Fellowship Brigham and Women's Hospital Harvard Medical School Residency Brigham and Women's Hospital Board Certifications Surgery Yale University School of Medicine One Boston Place, 32nd Floor I Boston, MA 02108 1 Tel: 617.426.3666 1 Fax: 617.426.8595 I www.bestdoctors.com Best Doctors® and the star -in -cross logo are registered trademarks of Best Doctors, Inc. in the United States and in other countries. Healthcare. Ideas for 2007 How to Save a Buck Gallagher Benefit Services, Inc May 17; 2007 Gallagher Benefit Services, Inc Boca .Raton, Florida 561.995.6706 or 800.676.4004 www.gallagherbenefits.com •• Front -end calendar year deductible for medical plan • Increase employee awareness of healthcare;; costs by requiring participation Add front - end deductible to prescription drug plan Retur» to Coinsurance Return to coinsurance percentages from fixed copays Provide employees and dependents with an incentive to reduce utilization awareness of cost of healthcare r Contribution Steerage +:•Wherezmultiple plan offerings are available, the employer will offer greater contribution incentives to steer employees plo ees into lower cost plans. r BeL..tte&Employce Contributions. •3 Health plan contributions are based on employee annual income. While this strategy has no impact on the rise in health care costs, i #can be perceived as a more equitable means of distributing contribution increases (Used by Gallagher). Fixed Dollar Employer C Innovative option studying various employer cost sharing strategies which limit their portion of healthcare costs. Employers use a defined contribution approach where the employer determines on an annual basis how much they will contribute towards healthcare costs •• Design models include: flat amount, by employee tier and geographic location :ncome Related Deductibles and Out -of- Pocket Employee cost sharing directly tied to their ability, to pay Deductible and O -O -P maximums designed to be a percentage of income. Deductible equals 2% of annual income Can be difficult to administer Health Savings Account. HSAallows employees to deposit pre -tax dollars into-an account earmarked for medical expenses. Unused funds roll over from year to year employer cost is reduced because the employee is responsible for costs up to deductible ❖ Retirement fund supplement (HPN) lligh Performance Network. Smaller network typically offering deeper discounts, improved quality and more cost efficient Available from most carriers, may be market sensitive Patient Advocate •:* Assists employees with the navigation of the . healthcare system Service typically offered both via phone and Internet + Offers cost savings and improved employee satisfaction Debit /Credit Car ❖Assists employees with cash flow and cost issues • -Works well with Health Savings Accounts, Flexible Savings Accounts and Health Accounts Usually results in higher participation and improved tax savings A Self Treatment Guides Provides consumers with key information regarding self-treatment of medical conditions ❖Self treatment books /guides can be provided to employees from. employees ❖Conditions may include colds, minor back pain, rashes, etc. Personal Medical Record :- Onhine documents which contain personal health information including history and test results Tied to HRA's to detect and prevent higher cost conditions Self Funding Financially advantageous to move from fully insured to self funded Employer assumes liability for administrative costs Purchase of reinsurance will limit risk Advantages include reduced cost, improved cash flow and greater flexibility Stop Loss Coverage Insurance employers purchase to limit individual and aggregate liability Specific Stop Loss Insures against individual catastrophic loss + Key factors include employer risk tolerance, reserve commitment and claims history Aggregate Stop Loss Insures against over utilization by the entire group. Tiered Prescription Drug Coinsurance •:• Tiered coinsurance instead of copays, ❖ Apply a minimum (10% or $1O copay) Higher coinsurance for lifestyle drugs Specialty Rx Options; With the increasing use of specialty medications (often injectibles) and their high associated costs, employers should begin to evaluate how these;: medications are discounted ;distributed and managed • . Specialty Rx vendors have. specialty. Rx capabilities but should be carefully evaluated `an d analyzed to determine if the program is aggressive in providing additional discounts and care management to this population Elimination of Rebates With the significant delay in receiving rebates, PBM's_are beginning to offer higher front end discounts on brand drugs at retail and mail order rather than providing rebates to employers. . The advantages are especially critical for plans using coinsurance, where the employees cannot access the benefit associated with prescription Generic Incentives Increasing the use of generic drugs remains one of the most effective ways a plan sponsor to decrease the cost of the ,prescription drug benefit. As a rule, each 1 increase in the generic dispensing rate can decrease drugs spent by 0.5 % -1 %. In addition, employers can establish step therapy and prior authorization rules that seek to have the patient try a generic drug first in establishing a course of therapy for a given condition. • Typically these programs do not reduce the quality,of care, however they can produce employee noise Mail Order Incentives Mail order incentives can be provided to encourage use of generics. PBM's can target employees who use generics or maintance drugs at retail (by written communications) to encourage use of mail pharmacy for these types of medications, resulting in substantial savings for the employer. + Maintenance drug programs which require that a second or third refill of a maintenance medication be made through mail order are also cost effective Step Therapy • New drugs can contribute substantially to the year over year increases in drug spending. For example, the cost for drugs may be as much as 40% to 50% more than a similar drug with similar ingredients and effectiveness marketed in the prior year This is partially drug trend •:• Including a step therapy plan, will prevent employees from moving to the most expensive, newest drug before older, less expensive drugs are tried. This also prevents an employee from immediately switching to a new drug before certain protocols for trying the older drugs are established Health Risk Assessment Health risk assessments are a vital component in anyahealth promotion initiative Health risk assessments can identify pre - chronic cases to avoid costs before they occur They provide data that are only available through self evaluation (e.g., smoker, sedentary lifestyle, high stress work environment, overweight, etc.) Nutrition and Weight Management Programs... • Nutrition and weight loss management are rapidly proving to be a close second in ROI to smoking cessation 65% of population is overweight Obese individuals can pay up to 77% more for medications than non -obese individuals Proportion of diseases attributable to obesity - Diabetes- 61% - Heart disease 17 %` -- Osteoarthritis - 24% Stress Management Program Probably the most underestimated factor influencing healthcare costs and productivity loss is stress ❖ Promotion of stress management programs through an employers EAP should be considered an effective approach to help employees lead healthier lives and reduce healthcare costs Directions Directions Reminder Regarding HIPAA Privacy Notice Drinker Biddle Gardner Carton Page 1 of 2 Gallagher Benefit Services, Inc. c h i n k i n g a h` a d Issue 1 • 2007 The privacy standards of the Health Insurance Portability and Accountability Act of 1996 ( "HIPAA ") require that, at least once every three years, a reminder of the availability of the HIPAA Privacy Notice (and how to obtain a copy of the Notice) be provided to health plan participants. According to the U.S. Department of Health and Human Services, this requirement may be satisfied in a number of ways, including: • Providing a copy of the HIPAA Privacy Notice; • Providing a reminder of the availability of the HIPAA Privacy Notice and information on how to obtain a copy; or • Including in a plan - produced newsletter or other publication information about the availability of the HIPAA Privacy Notice and how to obtain a copy. If one or more of your health plans is a "small health plan" (a plan subject to HIPAA with annual premiums or claims paid that are not more than $5 million) and participants have not been given the HIPAA Privacy Notice or a reminder of the availability of the Notice since the original compliance date (April 14, 2004), action must be taken by April 14, 2007. Small health plans should prepare to meet this requirement using the most efficient and cost - effective means, such as providing a stand -alone copy of the HIPAA Privacy Notice or the reminder by the April 14, 2007 deadline. In order to comply with this requirement and automatically meet the three -year rule in the future, we recommend that a reminder of the availability of the HIPAA Privacy Notice (and how to obtain a copy) or a copy of the notice itself, be included with one of the company's annual communications with participants (i.e., the annual open enrollment package, the annual Women's Health and Cancer Rights Act notice, or the summary annual report). Directions Directions Page 1 of 2 Gallagher Benefit Services, Inc_ thinking Ltherd Issue 1 • 2007. Court Awards $50,000 In Attorney's Fees Over COBRA Notice Violation COBRA Connections An employer was required to pay over $50,000 in attorney's fees to a former employee who won a $100,000 judgment against the employer because the employer failed to provide a COBRA election notice upon the employee's termination. Appeals court order The Eighth Circuit reversed the district court's original denial of attorney's fees and ordered the lower court to calculate an appropriate award. (The appellate court upheld the lower court's judgment that statutory penalties were not appropriate. Calculating the award The court first noted that it was appropriate for the employee's attorney to be reimbursed for hours spent litigating the appeal, in addition to what was spent on the original litigation. Billable hours An attorney's fee award is typically calculated by multiplying the number of "reasonable" hours billed by the attorney by the attorney's "reasonable" hourly rate. In this instance, the court reduced the number of billable hours claimed by the attorney because the attorney's time records as submitted to the court did not document all the hours the attorney stated he had worked. Thus the court determined the attorney worked 164 hours on the original litigation and 64 hours on the appeal. A court may use its own knowledge of prevailing market rates to determine whether a proposed hourly rate is reasonable. The court concluded that $250 per hour was reasonable. The court then reduced the amount by $5,000 to reflect that one of the two counts argued on appeal was not successful, and ordered the employer to pay the employee $52,888 in attorney's fees (including $488 in related travel expenses). Source: Starr v. Metro Systems, DC MN; Directions Directions Page 1 of 4 Gallagher Benefit Services, Inc.. c3iircking uhcad Issue 1 • 2007 CMS Issues Updated Certificates of Creditable and Non - Creditable Drug Coverage Gallagher Benefit Services, Inc. The Centers for Medicare and Medicaid Services (CMS) has released more guidance on Certificates of Creditable Drug Coverage and another round of updated certificates. The guidance includes updated model certificates, including model certificates in Spanish, for plan sponsors to use beginning on or after February 15, 2007. The updated certificates can be found at the CMS website . The new guidance also adds an additional acceptable method for delivering the certificates electronically. BACKGROUND The Medicare Prescription Drug and Improvement Act (MMA) added a new prescription drug benefit (Part D) to Medicare. Regulations to implement Part D were issued in January, 2005. The MMA imposes a late enrollment premium penalty on Medicare eligible individuals — i.e. over age 64 and enrolled in Medicare Parts A or B and certain disabled individuals - who do not enroll in Part D when they first become eligible for Medicare. The late enrollment penalty does not apply if the individual delays enrolling in Part D due to "creditable drug coverage" from any other source. Thus, the regulations require plan sponsors of medical plans that include prescription drug coverage to disclose to Medicare eligible individuals whether or not their existing drug coverage is considered "creditable" or "non- creditable ". CMS issued initial model disclosure notices in May 2005 to be used for the period of November 15, 2005 through May 15, 2006. In early 2006, CMS revised the model certificates for disclosures made on or after May 15, 2006. On September 15, 2006, CMS proposed additional revisions to the certificates. This latest round of guidance finalizes these proposed revisions. UPDATED CERTIFICATES CMS has issued new model creditable and non - creditable disclosure notice language that entities can use on or after February 15, 2007 for annual disclosure, for new plan enrollees (those with Part D Initial Enrollment Periods on or after February 15, 2007), and for use in future plan years. Plan sponsors may use the new model certificates or they are free to develop their own certificates. Plan sponsors that choose not to use CMS' model certificates must provide notices that satisfy content standards which are described in detail in the updated guidance on the CMS website. http:// www. iwpubs. com/ ArticleManagement /ArticleManagementArticlePreview .asp ?articl... 5/15/2007 Directions Page 2 of 4 Timing: The new model certificates must be provided after February 15, 2007 at the following times: 1. Prior to the annual coordinated Part D election period that begins on November 15 of each year; 2. Prior to an individual's initial enrollment period for the Part D drug benefit; 3. Prior to the effective date of a Medicare eligible individual first enrolling in the employer's plan; 4. Upon any change that affects whether the coverage is creditable prescription drug coverage; and 5. Upon a Medicare beneficiary's request. If the certificate is provided to all plan participants annually, CMS will consider items 1 and 2 to be met. "Personalized" Notice: The latest guidance includes a revised personalized disclosure notice so that Medicare beneficiaries have proof of creditable coverage when enrolling in a Part D plan in the future. Each personalized notice must include the following information: • the individual's name, • date of birth or unique member ID #, • plan name and contact information, • a statement of whether the plan's drug coverage is creditable or non - creditable, and • the date range of creditable coverage. The personalized notice must be provided upon request or it can be used in lieu of the standard notices. The CMS website includes a model personalized disclosure notice. Delivery: A single notice can be provided to a Part D eligible employee and his /her dependents covered under the same plan. This includes hand delivery of the notices to the employees at the workplace. A separate certificate is required if it is known that a Part D eligible spouse or dependent resides at a different address than the employee. The certificate may be provided independently, or it may be combined with other communications so long as the timing requirements are met. If the certificate is incorporated into other materials or documents, including SPDs or open enrollment materials, the certificate must be prominently and conspicuously referenced in at least bolded 14 -point font in a separate box on the first page of the materials being provided. The guidance includes a model statement for this purpose: If you (and /or your dependents) have Medicare or will become eligible for Medicare in the next 12 months, a new Federal law gives you more choices about your prescription drug coverage. Please see page xx for more details. Electronic delivery of the certificates is permitted if certain conditions are met. The original guidance only permitted electronic delivery if the individual consented to receiving an electronic certificate and was notified of the following http:// www. iwpubs. com/ ArticleManagement /ArticleManagementArticlePreview .asp ?articl... 5/15/2007 Directions information before they give consent to receive an electronic certificate: Page 3 of 4 • their right to obtain a paper version of the certificate; • how to withdraw consent; and • any hardware or software requirements necessary to access and retain the certificate. If the individual consented to receive an electronic certificate, they had to provide a valid email address to the employer and the consent had to be submitted electronically. Under the new guidance, a group health plan can also provide a creditable coverage disclosure notice electronically to plan participants who have the ability to access electronic documents at their regular place of work and they have access to the plan sponsor's electronic information system on a daily basis as part of their work duties. If this electronic method of disclosure is chosen, the plan sponsor must inform the plan participant that the participant is responsible for providing a copy of the electronic disclosure to their Medicare eligible dependents covered under the group health plan. ACTION STEPS • Go to the CMS website and download the applicable certificates. • Customize the certificates based on the employer's own Rx plan and coverage. • Distribute the new certificate for any of the purposes described above made on or after February 15, 2007. If you have any questions about these changes or would like copies of the model certificates, you can link to the CMS web page or contact your Gallagher Benefit Services representative. Return to Article Index Gek GASB 45 RETIREE HEALTH AND WELFARE VALUATIONS In June 2004, the Governmental Accounting Standards Board (GASB) issued Statement No.45 (GASB 45). This statement requires that expenses associated with retiree health benefits be accrued over the working lifetime of employees, rather than expensed on a pay -as- you -go basis as retirees incur claims. The statement establishes uniform financial reporting and accounting standards for state and local governmental employers related to post - employment benefits other than pensions (OPEB). It requires that all governmental entities begin reporting in accordance with the new statement over the next several years, depending on the entity's size. Prior to GASB 45, most postretirement plans were accounted for on a "pay -as- you -go" basis; that is, costs were recognized only as benefits (or premiums) were actually paid out. Postretirement medical and life benefits are a form of deferred compensation, and as such, they should be recognized on an employer's financial statement as services are rendered. Thus, under GASB 45, accrual accounting will now be the standard for governmental entities. Gallagher Benefit Services, Inc. (GBS) can help you in the following ways: GASB 45 Valuation GBS will thoroughly analyze all facets of an employer's retiree health plan, including a detailed analysis and projection of current and future expected retiree plan expenses. Through the use of our sophisticated modeling tool. GBS can handle the unique characteristics of any employer's post - retirement benefit program. We will issue a formal valuation report that includes all the expense and liability values and disclosures required by GASB 45. This will include such key items as: • Actuarial Accrued Liability — the portion of the future expected benefit payments that has been accrued to date. • Annual Required Contribution — the portion of the future expected benefit payments that has been allocated to the current year. • Net OPEB Obligation — the cumulative difference between the required contributions and the employer' s actual contributions to the plan. Implicit Subsidy The most obvious liability that GASB addresses is the direct contribution that an employer pays toward the cost of retiree health care. However, public employers that combine active and retiree claims experience to arrive at a "blended cost," which becomes the cost basis for retiree's coverage, will have to recognize the implicit subsidy associated with retiree coverage. The blended cost technique is widely used, and in many states public employers are prohibited by law from charging more than this blended cost. In most cases, the true cost associated with retirees is greater than the blended active and retiree cost. If so, even if retirees pay 100% of the blended cost, there is still a cost to the employer (the implicit subsidy), and under GASB 45 the employer must recognize it. Data Needs What types of information are needed for a GASB 45 valuation? Generally, we believe the following information is required: • a complete current census • at least two years of claim and enrollment data, separately for o Actives, o Retirees <65, and retirees 65 +, o By coverage type • retiree benefits plan design • retiree coverage eligibility requirements • retiree contribution requirements For more information about Gallagher Benefit Services, Inc., please call us at (609) 452 -2488 or visit our website at www.gallagherbenefits.com. Gallagher Benefits Services .125 -310 Village Boulevard, Princeton, NJ 08540. Phone: 609 - 452 -2488. Fax: 609- 452 -2668 www.gallaitherbenefits.com 9/06 Gallagher Benefit Services, Inc. Deadline Approaching for GASB 45 Compliance by Public Entities The deadline is rapidly approaching for public entities to comply with Govemmental Accounting Standards Board (GASB) Statement No. 45. GASB 45 requires that expenses for retiree health benefits be accrued over the working lifetime of employees rather than expensed on a pay -as- you -go basis. The impact on a public employer's financial statement can be dramatic. Effective Dates For larger public employers, those with more than $100 million in annual revenues, GASB 45 is effective for the fiscal year beginning after December 15, 2006. The same requirements must be met by smaller public employers one to two years thereafter, depending on annual revenues. Overview GASB 45, issued in June 2004, established uniform financial reporting and accounting standards for state and local govemmental entities related to Other Post - Employment Benefits (OPEB) other than pensions. GASB 45 will require retiree health benefits, including medical, dental, vision, life and long -term care insurance, to be measured and reported on an accrual basis. While direct employer contributions toward these retiree benefits are to be included, any implicit subsidies will also be considered an employer obligation, and are to be included in these reported liabilities. It is this implicit subsidy that will greatly expand the reach and implications of GASB 45. Financial Impact The financial impact on a public employer can be significant. Depending on plan design, contribution levels and employee demographics, the GASB 45 expense can be as much as two to six times the pay- as -you- go cost, or a potential liability of as much as $100,000 per active employee. GASB 45 ACTION STEPS • Review practices and documentation • Conduct actuarial valuation • Evaluate current plan provisions and impact of altematives for: Eligibility — age /service Plan design Contribution methodology Financing /funding Medicare D /Medicare Advantage alternatives • Develop future plan strategy and design • Assess and select funding approach • Finalize financial reporting GBS Services Employers should be starting their GASB valuations soon to give those responsible for budgets the results well ahead of the beginning of the year, and to allow time for data collection, valuation processing and review of viable plan alternatives. GBS offers these services to assist with GASB 45 compliance: • Actuarial valuation, including determination of direct costs and implicit subsidies • Plan analysis and review, including plan design modeling: how changes in plan design, eligibility and retiree contributions will impact an employer's liability and expense • Development of pre - funding strategies to address unfunded liabilities • Implementation and communications assistance For more information, contact a GBS representative or visit our website at www.gallagherbenefits.com. lic Risk Management Health Tr n Alternative to Individual Purchasing of Health Care Richard Schell Area Vice President Gallagher Benefit Services One Boca Place 2255 Glades Road, Suite 400E Boca. Raton, FL 334.41 , (561), 998.6733 • ::Current Market Conditions / Medical Trends • Self Insurance as a Funding Method • Advantages of Group Purchasing tate Statute ►flows county, municipality, community college d strict, school board to cooperative purchase Front End Advantages +Avoid state premium taxes •• Eliminate carrier profits /margins Fund only actual claims +More clout with market place .I K.; vantages of Group Purchasing (continued) ❖ Pool Surplus Benefit Enhancements + Offset future increases Advantage + Pooling risk is cheaper ❖ Lower reinsurance costs :•Liberal underwriting vantages of Group Purchasin continue reserves and surplus remain with the plan. ❖Any and all excess funds remain with entities rack End Advantages .....:::.. . +Safety in numbers +smoother budget process +renewals predictable PRM Health Trust .•o eratingsince Offering 7medical plans, life insurance, & dental insurance Fully funded program Consistent Growth Three: layers of service Control PUBLIC RISK MANAGEMENT Benefit Comparisions Effective October 1, 2006 (Birth to age 16) to age 16) At Office Visit $15 Copay Ded, then 70% of allowance $15 Copay Ded, then 60% of allowa Icy Room/Hospital Calendar yr. Ded. then 90% of Calendar yr. Ded, then 70% of Calendar yr Ded, then 80% of Calendar yr Ded, the 60° /Accidents allowance (No E.R. Ded). Cal Year allowance (No E.R. Ded). Cal Year allowance (No E.R. Ded). Cal year allowance (No E.R. Ded). Cal ded waived if accident ded waived if accident ded waived if accident waived if accident It Mental/Nervous Ded, then 90% of allowance. 30 days Ded, then 70% of allowance. 30 Ded, then 80% of allowance. 30 days Ded, then 60% of allowance. per calendar yr. days per calendar yr. per calendar yr. per calendar yr. ent Mental/Nervous Ded, then 90% of allowance. 20 visits Ded, then 70% of allowance. 20 Ded, then 80% of allowance. 20 Ded, then 60% of allowance. per calendar yr. visits per calendar yr. visits per calendar yr. per calendar yr. it/Out-Patient Substance Abuse Ded, then 90% of allowance. $2,500 Ded, then 70% of allowance. Ded, then 80% of allowance. $2,500 Ded, then 60% of allowance. lifetime max. $2,500 lifetime max. lifetime max. lifetime max. [ion Drugs (Includes coverage One Month Supply One Month Supply :ontraceptives and Diaphragms) is $7 Copay N/A $10 Copay N/A red (Brand) $ 14 Copay (Brand) N/A $25 Copay (Brand) N/A 'referred N/A N/A N/A N/A lion Mail Order 90 Day Supply 90 Day Supply c $14 Copay N/A $20 Copay N/A -ed (Brand) $28 Copay (Brand) N/A $50 Copay (Brand) N/A referred (Brand) N/A N/A N/A N/A I summary only and is not intended to be a complete description of covered services. More complete information is contained in the Group Contract /Certificate. if a Lucy arises between this benefit summary and the actual Group Contract /Certificate, the actual Group Contract /Certificate will prevail in all circumstances. PRM - Plan 702 P PRM - Plan 719 " I I n Network .:_ ; O Out,of Network. I I n . . m Lifetime Benefit $ $5,000,000 $ $5,000,000 $ $5,000,000 $ $5,000,000 Ded $ $200 $ $200 $ $500 $ $500 )ed $ $600 $ $600 $ $1,500 $ $1,500 in Annual Out of Pocket $ $1,500 $ $1,500 $ $1,500 $ $1,500 m Family Out of Pocket $ $4,500 $ $4,500 $ $4,500 $ $4,500 ince 9 90% of allowance 7 70% of allowance 8 80% of allowance 6 60% of allowance n Office Visit $ $15 Copay D Ded, the 70% of allownace $ $15 Copay D Ded, then 60% of allowa Visits - Annual exam $15 copay, $250 calendar year max 7 70% of allowance, Ded waived, $ $15 copay, $250 calendar year max 6 60% of allowance, Ded waive I summary only and is not intended to be a complete description of covered services. More complete information is contained in the Group Contract /Certificate. if a Lucy arises between this benefit summary and the actual Group Contract /Certificate, the actual Group Contract /Certificate will prevail in all circumstances. PUBLIC RISK MANAGEMENT Benefit Comparisions Effective October 1, 2006 PR1 1 - Plan 125 In Netwar Maximum Lifetime Benefit Annual Ded $5,000.000 $5,000,000 Family Ded Maximum Annual Out of Pocket Maximum Family Out of Pocket Coinsurance Physician Office Visit $1,000 $3,000 $2,000 $6.000 80% of allowance $1,000 $3.000 $2,000 $6,000 50% of allowance Ded, then 80% of allowance Ded, then 50% of allowance Wellcare Visits - Annual exam Ded, then 80% of allowance Ded, then 50% of allowance Adult / OB /GYN - Child health Specialist Office Visit Ded, then 80% of allowance Ded, then 80% of allowance Ded, then 50% of allowance Ded, then 50% of allowance Emergency Room/Hospital - Illness /Accidents In- Patient Mental/Nervous Calendar yr Ded, then 80% of allowance ($50 E.R. Ded, waived if admitted) Ded, then 80% of allowance. 30 days per calendar yr. Out - Patient Mental /Nervous In- Patient/Out- Patient Substance Abuse Ded, then 80% of allowance. 20 days per calendar yr. Ded, then 80% of allowance. $2,500 lifetime max. Prescription Drugs (Includes coverage for oral contraceptives and Diaphragms) - Generic - Preferred (Brand) - Non- Preferred Prescription Mail Order - Generic - Preferred (Brand) - Non- Preferred (Brand) One Month Supply Calendar Ded, then 50% of allowance ($50 E.R. Ded, waived if admitted) Ded, then 50% of allowance. 30 days per calendar yr. Ded, then 50% of allowance. 20 days per calendar yr. Ded, then 50% of allowance. $2.500 lifetime max. $100 Rx Ded, then 80% $100 Rx Ded, then 80% $100 Rx Ded, then 80% N/A N/A N/A Not Covered Not Covered This is a summary only and is not intended to be a complete description of covered services. More complete information is contained in the Group Contract /Certificate. If a discrepancy arises between this benefit summary and the actual Group Contract /Certificate, the actual Group Contract /Certificate will prevail in all circumstances. PUBLIC RISK MANAGEMENT Benefit Comparisons Effective October 1, 2006 Maximum Lifetime Benefit Single Ded RIO t` $5,000,000 0 PI* Family Ded Maximum Annual Out of Pocket Maximum Family Out of Pocket Coinsurance Physician Office Visit N/A $1,500 $3,000 N/A O' $ 5,000,000 N/A $1,500 $3,000 N/A lan 1748 Out of Network $5,000,000 $0 $1.500 $3,000 $0 $1,500 $3,000 $6,000 60% of allowance $10 Copay $15 Copay $10 copay Ded, then 60% of allowance $10 Copay $35 Copay $10 Copay - $250 cal year max Ded, then 60% of allowance Wellcare Visits - Annual exam Adult / OB /GYN - Child health Specialist Office Visit $10 Copay $10 Copay $10 Copay $10 copay $10 copay $20 copay Ded, then 60% of allowance Ded, then 60% of allowance Ded, then 60% of allowance Emergency Room/Hospital - Illness /Accidents $50 Copay (waived if admitted) $50 Copay (waived if admitted) $50 copay (waived if admitted) $400 per day (ground travel) $4,000 per day (air & water travel) $100 copay (waived if admitted) $400 per day (ground travel) $4,000 per day (air & water travel) Inpatient Hospital $250 Per Admission In- Patient Mental /Nervous $250 Per Admission 30 days per calendar yr. $150 per day for days 1 -5. $750 per admission max. $150 per day for days 1 -5. $750 per admission max. $50 copay Ded, then 60% of allowance $20 Copay, 20 days per calendar yr. Out- Patient Mental /Nervous 1n- Patient /Out - Patient Substance Abuse $25 Copay Per Visit 20 Visits Per Calendar Year Inpatient: $250 Per Admission (detoxification only) Outpatient: $15 Copay Per Visit In-Patient/Out-Patient: 20 Days Per Calendar Yr. Prescription Drugs (Includes coverage for oral contraceptives and Diaphragms) - Generic - Preferred - Non - Preferred Prescription Mail Order - Generic - Preferred - Non - Preferred One Month Supply $25 Copay Per Visit 20 Visits Per Calendar Year Inpatient hopital copay, $2,500 lifetime max. Ded then 60% of allowance, 20 days per calendar yr. $750 Copay, Ded then 60% of allowance, $2,500 lifetime max. $150 per day for days 1 -5. $750 per admission max. Detoxifi cation only $20 Copay, 20 days per calendar yr. Ded then 60% of allowance, 20 day per calendar yr. One Month Supply $10 Copay $25 Copay $40 Copay $10 copay $25 copay $40 co .a 90 Day Supply $14 Copay $28 Copay (Brand) N/A $20 copay $50 copay $80 copay This is a summary only and is not intended to be a complete desrcription of covered services. More complete information is contained in the Group Contract /Certificate. If a discrepancy arises between this benefit summary and the actual Group Contract /Certificate, the actual Group Contract /Certificate will prevail in all circumstances. PUBLIC RISK MANAGEMENT Benefit Comparisons Effective October I, 2006 i ' '� •; Proposed Blue Options PI 1160 = Indiv ➢dual Pin n Proposed Blue Options Plan 3161 - Family Plan In Network, Out of Networ k . 7n N etworiz ' ;." ' Out of Network . . imum Lifetime Benefit $5,000.000 $5.000.000 $5.000,000 $5.000.000 le Ded $1,250 $2.500 N/A N/A Ilv Ded N/A N/A $2.500 $5.000 imum Annual Out of Pocket $5.000 $10.000 N/A N/A imum Family Out of Pocket N/A N/A $5,000 $10,000 surance 80% of allowance 60% of allowance 80% of allowance 60% of allowance ician Office Visit Ded, then 80% of allowance Ded. then 60% of allowance Ded. then 80% of allowance Ded, then 60% of allowance care Visits - Annual exam t / OB /GYN tild health 80% of allowance (ded waived) up to $250 per cal year Ded. then 80% of allowance Ded, then 80% of allowance 60% of allowance (ded ""awed) up to $250 per cal year Ded, then 60% of allowance Ded, then 60% of allowance 80% of allowance (ded waived) up to $250 per cal year Ded. then 80% of allowance Ded, then 80% of allowance 60% of allowance (ded waived up to $250 per cal year Ded, then 60% of allowance Ded, then 60% of allowance ialist Office Visit Ded. then 80% of allowance Ded, then 60% of allowance Ded. then 80% of allowance Ded, then 60% of allowance rgency Room /Hospital Bess /Accidents Ded. then 80% of allowance (waived if admitted) Ded, then 60% of allowance (waived if admitted) Ded. then 80% of allowance (waived if admitted) Ded, then 60% of allowance (waived if admitted) ient Hospital Option 1 - Ded, then 80% Option 2 - Ded. then 75% Option 3 - Ded, then 70% Ded, then 60% of allowance Option 1 - Ded, then 80% Option 2 - Ded, then 75% Option 3 - Ded. then 70% Ded. then 60% of allowance rtient Mental/Nervous Ded, then 80% of allowance. 30 days per calendar yr. Ded, then 60% of allowance. 30 days per calendar yr. Ded, then 80% of allowance. 30 days per calendar yr. Ded, then 60% of allowance. 31 days per calendar yr. anent Mental/Nervous Ded, then 80% of allowance. 20 days per calendar yr. Ded, then 60% of allowance. 20 days per calendar yr. Ded. then 80% of allowance. 20 days per calendar yr. Ded, then 60% of allowance. 21 days per calendar yr. �tient/Out- Patient Substance Abuse Ded, then 80% of allowance. $2,500 lifetime max. Ded, then 60% of allowance. $2,500 lifetime max. Ded. then 80% of allowance. $2,500 lifetime max. Ded. then 60% of allowance. $2,500 lifetime max. ription Drugs (Includes coverage rat contraceptives and Diaphragms) neric ferred ,n- Preferred BlueRx Discount Program N/A BlueRx Discount Program N/A ription Mail Order neric ferred n- Preferred BlueRx Discount Program N/A BlueRx Discount Program N/A is a summary only and is not intended to be a complete desrcriptoon of covered services. More complete information is contained in the Group ract /Certificate. If a discrepancy arises between this benefit summary and the actual Group Contract/Certificate, the actual Group Contract /Certificate wil mil in all circumstances. RISK TRANSFER THROUGH CONTRAC MANAGEMENT AVELERSJ TRAVELERS Insurance. In- synch:' RISK TRANSFER THROUGH CONTRACT MANAGEMENT The purpose of this document and any activities to its creation ("The St. Paul Travelers Activities ") was to develop current underwriting information and/or to assist you with your legal responsibility to maintain safe premises, practices, operations and equipment. The St. Paul Travelers Activities do not cover all possible hazardous conditions or unsafe acts that may exist, are not legal advice, are not for the benefit of any other party and do not amend, or otherwise affect the terms, conditions or coverages of any insurance policy issued by The St. Paul Travelers. Implementation: of any practices suggested- by this document is at your sole discretion. The St. Paul Travelers disclaims all warranties, express or Implied and assumes no liability to any party for any damages arising out of or in connection with The St. Paul Travelers activities. TRAVELERS; Risk Transfer— Page #1 V TRAVELERS insurance. In- synch: Contractual Risk Transfer • Second only to the purchase of insurance (or other forms of risk - sharing), contractual risk transfer is the most common form of risk financing. TRAVELERS, Contractual Risk Transfer • Reasons for Risk Transfer • Transferee can better manage the risk. • Transferee is not a target defendant • Potential exposure is too great. TRAVELERS.i Contractual Risk Transfer • Contract Overview • Drafting • Contract management TRAVELERS Risk Transfer— Page #2 TRAVELERS insurance. In- synch:" Contractual Risk Transfer • Contract Litigation • Most ligation occurs when the parties are not properly prepared to enter into the contract, or failed to monitor the terms and conditions of the contract TRAVELERS! Contractual Risk Transfer • Contract — What Is It? • Simple purchase order. • Standard boiler plate contract (Form books — photo copier contract). • industry drafted contract. • Specially drafted contract for specific purpose or project. (Generally drafted by an attorney). • Mutual aid agreements. • Joint powers agreements. r. TRAVELERS_'' .w Contractual Risk Transfer • Contract Drafting • All contracts should have a central point of origin: - Administrator Commissioner City Council • All contracts should have a central place to be monitored: - Administrator - Finance Director TRAVELERS; Risk Transfer— Page #3 TRAVELERS Insurance. In- synch: Contractual Risk Transfer • Let's Put This Issue Into Perspective • W�jats tAd probfetn wlm saylny in a contract the coritrador al perform Ha pn g6 rdmanne1 to dollar akead�R Y °.w. Contractual Risk Transfer • Makes it a term of the contract instead of a tort liability. • Many insurance policies do not cover breach of contract claims. • Changes statutory notice requirements. • Attorney fees are recoverable in breach of contract claims and not In tort claims. • Statute of limitations change. - 4 years tort. - 6 years for breach of contract. TRAVELERS_' Contractual Risk Transfer • Questions We Should Ask of All Contracts • Have the final contract terms been negotiated? By whom, when? • Has the contract been read and approved by legal stair? When, and Is it In the record? (11II make the lawyer look closer if in writing). • Have yia accepted any insurance obligations for the contractor? WHY? TRAVELERS! Risk Transfer — Page #4 TRAVELERS insurance. in-synch:" Contractual Risk Transfer • Questions We Should Ask of All Contracts (continued) • Has our governing board approved the contract? When, where? • Who is authorized to sign? • Has the contract been properly executed — Signed, dated notarized, put into the record or minutes as approved? • Have all parties signed? TRAVELERS: Contractual Risk Transfer • Coordination and Cooperation Between Risk Management, Legal Counsel, Broker, Department Head or Elected Officials • Has indemnification or hold harmless language been used in the agreement that provides optimum protection to our public entity? Has proof of insurance provisions been used and have we received a certificate of Insurance from vendor? Have we requested to be named as an additional insured on our contractor's insurance policy? Have we requested to be notified of cancellation of the policy? TRAVELERS. Contractual Risk Transfer Two Part Process: • Indemnification • Cleary states responsibility for injury, damage, or loss arising out of the service or work. • Maintains avenue for recovery if contractor's insurance is invalid or inadequate. Insurance Requirements • Financial support of indemnification. • Specifies necessary coverage and limits. • Provides indemnitee some specific rights under contractors (Indemnitors) policies. TRAVELERS.' Risk Transfer — Page #5 TRAVELERS insuranceein- synch" Contractual Risk Transfer • Risk Managers Guide to Problem Contract Terms and Clauses • Indemnity. • Jurisdiction. • Contract for coverage beyond your insurance. OM !tut, malicious act). • Incorporation by reference. • Limitation of damages, consequential damages and liquidated damages. • Limitation of warranties. • Waiver of subrogation. TRAVELERS: w Contractual Risk Transfer • Indemnify • The contractor agrees to directly reimburse the City/County. • Defend • The contractor (Or contractors Insurer) agrees to defend, or pay defense costs of City/County. • Hold Harmless • The Contractor agrees to pay losses on behalf of the indemnitee. Contractor holds the City/County harmless from financial responsibility for a loss. TRAVELERS: Contractual Risk Transfer • Indemnification Clause • Limited Form. Requires contractor to be responsible for its own negligence. - Sample Clause. 'Contactor agrees to hold harmless and'ndemnify City /County for habday arising out of the actMties of contractor and it employees' 4A• TRAVELERS., Risk Transfer — Page #6 TRAVELERS Insurance. In- synch:" Contractual Risk Transfer • Indemnification Clause • Intermediate Form. Requires contractor to be responsible for its own negligence or the joint negligence of the Contractor and the City/County. - Sample Clause. "Cordractor agrees to hold harmless and indemnify the City /County for aW. Wabifay arising out of the project, except that arising out of the sole negligence of the City /County.° TRAVELERS Contractual Risk Transfer • Indemnification Clause • Broad Form. Requires contractor to be responsible for at liability arising out of the project. (Including the sole negligence of the City/County) - Sample Clause. °Contractor agrees to hold ham less and indemnify City /County for all Wabaty arising out of the project' TRAVELERS) Contractual Risk Transfer • Sample Language CONTRACTOR agrees to indemnify, defend (City's option), and hold harmless City, Its officials, agents, employees, and representatives from and against any and all claims, demands, defense costs, liability, or consequential damages of any kind or nature (collectively referred to hereinafter as "Claims ") arising out of or in connection with Contractor's (or Contractor's subcontractors, if any) work, performance or failure to perform, under the terms of this contract; except for those Claims which arise out of the sole negligence or willful misconduct of City. TRAVELERSJ w Risk Transfer— Page #7 V TRAVELERS insurance. in-synch:" Contractual Risk Transfer • Named vs. Additional Insured • Named Insured required to: - Be responsible for premium. - Allow insurer to examine and audit records. - Report losses. - Be responsible for accuracy of information. - Accept some exclusions, e.g. property damage. .A. TRAVELERS• Contractual Risk Transfer • Additional Insured • Not responsible for claims reporting, premium payments and audit. • Right to defense. • Additional insured status is not a substitute for indemnification since policy exclusions or conditions apply. • Remember, must be endorsed onto policy. TRAVELERS.: To the maximum extent permitted by law, in no event shall Vendor, its affiliates a contactors be liable for any indirect incidental, special, punitive or consequential damages or for any lost or imputed profits or revenues or lost data or costs of cover arising from or related to the service or this agreement regardless of the legal theory under which such liability Is asserted. Whether breach of warranty, indemnification, negligence, strict liability or otherwise, and whether liability is asserted in contract, tort or otherwise, and regardless of whether Customer has been advised of the possibility of any such liability, loss or damage, Customer's remedies under this Agreement shall be limited to those set forth in the SLA, if applicable. In addition, Vendor's total aggregate liability arising from or related to the service or this agreement shall in no event exceed an amount equal to the average monthly recurring charge paid to Vendor by Customer for the Individual port which gives rise to such liability. Customer hereby waives any claim that these exclusions a limitations deprive It of an adequate remedy or cause this agreement to fall of its essential purpose. TRAVELERS_ Risk Transfer— Page #8 TRAVELERS Insurance. In- synch:" (another example) You acknowledge and agree that we are not and will not be responsible for any losses, injuries, or damages (liability) arising from the installation, operation, condition, possession, or use of the Vendor's products rented or licensed by you pursuant to any injuries or damages arising out of Me installation, operation, possession or use of the Vendor's product rented or released to you. IN NO EVENT WILL WE BE LIABLE UNDER THIS AGREEMENT OR ANY SUPPLEMENT FOR INCIDENTAL, CONSEQUENTIAL, OR SPECIAL CLAIMS, LIABILITIES, DAMAGES, ACTIONS, COSTS OR EXPENSES, INCLUDING LOSS OF BUSINESS OR PROFITS, NOR WILL OUR TOTAL LIABILITY UNDER THIS AGREEMENT OR ANY SUPPLEMENT EXCEED THE TOTAL AMOUNT OF RENTAL FEES PAID TO US UNDER THE TERMS OF THIS AGREEMENT AND ANY APPLICABLE SUPPLEMENT. TRAVELERS.: PURCHASER shall indemnify and hold ARTIST and ARTIST'S employees representatives, management and attomeys harmless from and against any and all claims, demands, actions, damages, liability, costs and expenses Including attorney's fees arising out of or in conjunction with any matter that arises as a result of this engagement including but not limited to cancellation of this engagement or failure to perform by the ARTIST, to personal injury, death and loss of or damage to property which occurs in connection with any performance by ARTIST with the exception of ARTIST'S negligence or willful misconduct. •Please Note: TSO will be using Pyrotechnic, Laser & Fog special effects in the stage show. PURCHASER will be responsible for all permits, licenses, certificates and insurance as outtned In Section 11. In most cases our suppers wit secure all permits and make all payments, which will be billed back at settlement. Please contact the Pyrotechnic and Laser supphers direly to discuss these responsibilties. TRAVELERS' (another example) •ARTIST shall not be responsible for damage or injury to any patrons or the venue, or any fixtures or personal property therein, caused by fans or any other persons admitted to the venue, other than ARTIST or ARTISTS crew, PROMOTER shall indemnify and hold ARTIST harmless from any third party claims concerning the foregoing as provided in paragraph 12B. Hereof, and no claim, deduction or offset shall be made by PROMOTER in respect of It TRAVELERS.. A. Risk Transfer— Page #9 IF TRAVELERS insurance. in- synch: (another example) PROMOTER agrees to indemnify and hold harmless ARTIST and ARTIST'S employees, members, officers, directors, shareholders, contractors, representatives, successors, assigns and agents from and against any and all claims, costs (including attorney's fees and court costs), expenses, damages, liabilities, Tosses and/or judgments arising out of, or In connection with, any claim, demand or action made by any third party for personal injury, death, property damage or otherwise, if sustained as a direct or indirect consequence of the engagement or any breach or alleged breach of any warranty, representation or covenant made by PROMOTER hereunder or in the aftached contract w TRAVELERS; Contractual Risk Transfer • Jurisdiction (Goveming Law) "The laws of the State of will govern the validity of this Agreement, its interpretation and performance. Any litigation arising In any way from this Agreement shall be brought in the courts of that State." TRAVELERS.: Contractual Risk Transfer • Contract for Insurance Coverage Beyond Your Insurance • Guarantee. • Waiver of subrogation. • Willful act. • Insure all parties or sub - contractor. TRAVELERS Risk Transfer— Page #10 TRAVELERS insurance. in-synch:" Contractual Risk Transfer • Incorporation by Reference The parties hereby agree to abide by at terms and conditions of a certain contract and design specifications as set forth as an addendum X to this contract" TRAVELERS.: Contractual Risk Transfer • Limitation of Damages Consequential Damages "Notwithstanding any other provision of the Agreement, neither party shall be liable to the other for any consequential damages incurred due to the fault of the other party, regardless of the nature of this fault or whether It was committed by the Cfient or the Design Professional, their employees, agents, sub consultants or subcontractors. Consequential damages Include, but are not limited to, loss of use and loss of profit' A TRAVELERS" Contract Risk Transfer • Limitation of Damages 'To the maximum extent permitted by law, the Client agrees to limit the Design Professional's liability for the Clients damages to the sum of $ or the Design Professional's fee, whichever is greater. This limitation shall apply regardless of the cause of action or legal theory pled or asserted." .era. TRAVELERS; Risk Transfer— Page #11 TRAVELERS Insurance. In-synch:" Contractual Risk Transfer • Limitation of Warranty No Warranty The Design Professional makes no warranty, either expressed or implied, as to his or her findings, recommendations, plans, specifications, or professional advice. The Design Professional has endeavored to perform the services pursuant to generally accepted standards of practice in effect at the time of performance .° TRAVELERS! Contractual Risk Transfer • Waiver of Subrogation The parties hereby agree to waive all claims arising from any act of the contractor, his sub - contractor or representative." TRAVELERS.: Contractual Risk Transfer • Waivers of Subrogation • Common in Property Leases. • Each Insures its Own. • Applicable in Other Agreements. • Generally Acceptable "Before a Loss ". • Never Acceptable "After a Loss ". • Do you Have the Unilateral Right to Agree? Do They? TRAVELERS; Risk Transfer— Page #12 V TRAVELERS Insurance - In- synch: Contractual Risk Transfer • Dispute Resolution • Alternative Dispute Resolution (ADR): - Binding Arbitration. (Most Common) - Non Binding. (Mediation) - Sometimes Limited by Claim Size. • Jurisdiction Issues (Try to Specify). • Limit Specific Types of Damages in ADR. • Include Specific Types of Damages in ADR. • Declaratory Relief. TRAVELERS, Contractual Risk Transfer • Central Management Each entity should designate a person for managing the contracts after their adoption. - Commissioner - Administrator - Finance - Risk Manager TRAVELERS_; .ate. Contractual Risk Transfer • Steps in Contract Monitoring Effective date. Due date of payments. Termination date. Renewal date. Inspection or completion date. - Insurance requirements. Has all Insurance documentation been provided. Discharge or project acceptance date. On structures - When do we accept control. Make sure our insurance carrier is notified? Final inspection and acceptance by entity date. II►. TRAVELERS.'- Risk Transfer— Page #13 TRAVELERS insurance. in- synth:` Contractual Risk Transfer • "This contract reviewed as to form and not as to content. • LAWYER WEASEL WORDS. TRAVELERS; Risk Transfer— Page #14 TRAVELERS ..I Insurance. in• synch_" Dennis Molenaar 2nd Vice President, Risk Control Public Sector Services, Financial and Professional Services and Coil and Gas Travelers Dennis Molenaar is national director of risk control for Public Sector Services, Financial and Professional Services and Oil and. Gas of Travelers. He is responsible for developing, directing and implementing strategic plans related to risk control services that support the goals of the three business units. Molenaar is also responsible for assisting in the development of underwriting policies, supporting product development and monitoring loss trends and legal issues within the public sector, financial and professional services and oil and gas industries. Molenaar joined The St. Paul Companies in 2002 as technical director of Public Sector Services. From 1990 to 2002, Molenaar was chief legal counsel and risk manager for Kootenia County, Idaho. Molenaar began his career as a police officer for the city of Grand Forks, N.D. in 1973. From 1973 to 1976, he was a special agent in charge for the North Dakota Bureau of Criminal Investigation. Molenaar serve as an assistant city attorney, assistant states attorney and as a partner in Nelson. Kalash, Molenaar and Gronnenberg in Grand Forks, North Dakota from 1980 to 1990. He was appointed to his current position in July 2004. Molenaar earned his bachelor's degree in Public Administration and his law degree from the University of North Dakota. He is a member of the Defense Research Institute (DRI) and the Public Risk Management Association (PRIMA). • • ••-•••• f`" z 14 ftorida institute of Consulting engineers AMERICAN COUNCIL OF ENGINEERING COMPANIES OF FLORIDA PROFESSIONAL ENGINEERS IN PRIVATE PRACTICE OF FLORIDA haw,t uu. w a c•,w�rery AMMO, al Bait. 4aK.or Consultants' Competitive Negotiation Act What does QBS mean? Qualifications -based selection of professional services Public Procurement Law • Basic intent — fair and open competition • Reduces opportunity and appearance of favoritism • Inspires public confidence that contracts are awarded equitably • Uniform procedures and documentation are essential to curb improprieties and ensure ethical process 44- ; 1.els< 1 To whom does CCNA apply? to professional services provided by: • Engineers • Surveyors • Architects • Landscape Architects Who must use CCNA for procurement? All Government Agencies, including City, County and State governmental agencies, political subdivisions and school boards and school districts for... studies where compensation exceeds $25,000, and in construction where the cost of construction compensation exceeds $250,000 ... continuing contracts where, in the case of studies, compensation does not exceed $50,000 and, in the case of construction, the cost of construction compensation does not exceed$1 million Also, a recent amendment to the law stipulates that consulting firms providing professional services under continuing contracts shall not be required to bid against each other. Why use CCNA for procurement? • It's the LAW since 1973... • The Owner selects the best - qualified firm • Promotes team approach between Owner and Design professional • Encourages technological innovation 2 n.o:.xz,n..d u.,,.. • The Owner is not limited to the low bidder • CCNA process safeguards the public against abuses of the low -bid system • Provides life -cycle savings and total "least cost" for a project History • 1972 — The Federal "Brooks" Law signed • Codified into federal law the qualifications -based selection process for A/E services • 1973 — became Florida Law • 1984 Competition in Contracting Act If your engineering solicitation language is similar to the following, then the RFP /RFQ likely violates the CCNA (Section 287.055, Chapter 287, Title 19 Florida Statute): "Billing Rates — Include a copy of the most current billing rates for individuals who may be assigned to this project." "Fee proposal is worth 5 points in your evaluation.' con't... 3 "Request for engineering services hourly rate." "Lump sum price." "Balance and reasonableness of proposed unit pricing / professional hourly rates." "Cost or Pricing" More information concerning QBS and CCNA can be found at http: / /www.fleng.org /FICE /images /CCNABrochure.pdf or by calling the Florida Engineering Society at (850) 224 -7121 To those not familiar with our industry, low -bid may seem logical 4 The Reality of Bidding... Low- bidding frequently leads to inferior results and can actually increase overall project costs 5 fMtii verueMCmwir(0,,, -: j9 The cost of NE services is typically less than 1% of the project life -cycle costs. Why select based on qualifications? • Each project requires a unique approach • Selecting the design professional with the appropriate knowledge, skill, reputation, past performance and technical competence assures a successful quality project 6 Quality -Based Selection (QBS): The Process • Selecting a Design Firm • An owner identifies the general scope of work and develops a selection schedule. • The owner issues a request for qualifications. • The owner evaluates statements of qualifications. • The owner determines a short-list of qualified firms to interview. • The owner conducts interviews and ranks the firms. fi :e QBS: The Process • Negotiating a Contract The owner invites the top - ranked firm to assist in defining a detailed scope of work. The design firm develops and submits to the owner a detailed fee proposal, based on the agreed upon scope of work. If the proposed fee is not acceptable, the owner and designer work to modify the scope, schedule and budget to determine if an agreement on fee can be achieved. QBS: The Process • If an agreement cannot be reached with the top - ranked firm, negotiations are ended and new ones begin with the next most qualified firm. • An agreement covering the above is executed. • Firms involved in the selection process are given post - selection feedback. 7 Life Cycle Cost Considerations Team Building Technology /Innovation Reduced Changes Flexible Contract Approaches Competition Among Best Performers; Not Low Bidders I M PUTTING YOU IN CHARGE OE WJILDING OUR NEW TE✓iN0E06Y LAS. PICK THE CONTRACTOR VITI; THE LOWE6T 610. I DONT PORE$EE ANY PRORLEMS WITH THAT 6TRATEGY. 50. YOUR 510 SAYS YOVII DO THE 306 FOR "...5 CHANCE TO GNAW ON WOOD.' Common Misconceptions "QBS eliminates price as a selection criteria" False: Price is a factor! Price becomes a factor only after the most qualified firm has been identified and a detailed scope of work has been jointly developed by the owner and design professional. 8 Common Misconceptions "QBS is a waste of taxpayer money" False: In fact, low -bid is more expensive because it leads to increased change orders and high project maintenance costs. Furthermore, QBS ensures the public gets a high quality and safe design. Common Misconceptions "QBS takes longer" False: QBS fosters teamwork between the client and engineering and facilitates construction, leading to faster project delivery Similarities of CCNA and QBS: Both have a basis in law. • QBS is mandated for Federal Procurement in The Brooks Act: Federal Government Selection of Architects and Engineers" [a 1972 amendment to the Federal Property and Administrative Service Act of 1949]. • CCNA is addressed under a 1973 State of Florida Law [Sec. 287.055]. 9 Similarities of CCNA and QBS: Both, QBS and CCNA require the evaluation of no fewer than three firms regarding a proposed project or contract. The firm deemed most qualified, based on an evaluation of demonstrated competence and professional qualifications is selected. Negotiations commence with the most qualified firm. Should the agency be unable to negotiate a satisfactory contract with that firm, negotiations are formally terminated. Negotiations then commence with the second most qualified firm. (This can continue to the third most qualified firm, if deemed necessary). Federal Initiatives • ACEC secured QBS language in new federal procurement regulations and pending water legislation. • Ongoing defense of QBS with federal agencies. • TEA -21 Reauthorization language ACEC's Online QBS Resource Center http://www.acec.org/advocacy/qbs.cfm 10 Frank Rudd, CAE, CMP serves as the Executive Director of both the Florida Engineering Society and the Florida Institute of Consulting Engineers. As such, he is responsible for advocating extensively for the interests of the professional engineer as well as initiating and strengthening strategic alliances with the Florida Department of Transportation, Florida Department of Environmental Protection, Water Management Districts, and national and state engineering societies. Prior to joining FES, he served for nearly 12 years as the Chief Staff Officer for the Florida School Food Service Association, a membership group of over 8,000 individuals. Frank is a life long resident of Tallahassee and a graduate of the Florida State University's School of Association Management "STAYING THE COURSE WITH RISK MANAGEMENT" Personal & Organizational Liability of "Off Duty" Employees Eminent Domain Liability By: Joseph G. Jarret, Esquire County Attorney, Polk County Presented on behalf of PRM HOSTED BY: ARTHUR J. GALLAGHER & COMPANY "STAYING THE COURSE WITH RISK MANAGEMENT" Personal & Organizational Liability of "Off Duty" Employees Eminent Domain Liability By: Joseph G. Jarret, Esquire County Attomey, Polk County Presented on behalf of PRM HOSTED BY: ARTHUR J. GALLAGHER &COMPANY Outside Employment, AKA, "Moonlighting" Moonlighting defined: Moonlighting is defined as any professional activity arranged by an individual employee, which is outside the course and scope of the duties for which the employee was hired, whether or not the employee receives additional compensation. General "Moonlighting" Issues A • Moonlighting may transfer liability to the employer; • Moonlighting can fatigue the employee causing poor job performance, and thus create risk/safety issues; • Moonlighting can create dissension and loss of loyalty within the ranks of employees; • Moonlighting may lead to misrepresentations of the entity's involvement with the employee's activities, causing citizens to make improper assumptions; • Moonlighting can induce higher workers' compensation costs 1 General "Moonlighting" Issues, Cont. , • Productivity. When employees work two jobs, problems can arise: tardiness, absenteeism and lower performance due to tiredness or distractions. Safety. Tired and distracted workers tend to make more mistakes than others, and those mistakes can endanger everyone on the job. Conflicts of interest. Knowingly or innocently, moonlighters may share your proprietary information with their secondary employers or use confidential information, such as employee lists, or use public property to grow their own fledgling businesses. General "Moonlighting" Issues, Cont. • The use of firm resources may be just the ammunition the plaintiff's attorney needs. • Meetings in the office, faxes to or from the office, use of firm materials, computers, etc., may be construed as a direct client relationship or tacit approval by the firm. • The fact that the court finds a connection sufficient to implicate the firm does not necessarily mean that the firm's coverage will apply. The firm's insurance may not cover work outside of the employment relationship. General "Moonlighting" Issues, Cont. • Respondeat Superior. From a liability perspective, an employer is responsible for an employee's actions taken within the scope of employment under the doctrine of respondeaf supenor. • Whether particular acts of an employee are within the scope of his or her employment is a frequently litigated issue. • If the employee is otherwise uninsured, you can expect ,a plaintiffs attorney to aggressively seek to implicate the firm's professional liability insurance. 2 lir Moonlighting Insurance • You may wish to purchase policies that extend to employees, coverage for professional services performed outside the scope or course of his /her professional employment; • It is best that there exists a congruence between the employee's education, training, & prior experience, and the moonlighting gig Off Duty Employees: Law Enforcement Florida Statute §30.2905 provides a program by which off -duty deputies may contract for security services • A sheriff may operate or administer a program to contract for the employment of sheriffs deputies, during off -duty hours, for public or private security services; • Deputy sheriffs employed during off -duty hours pursuant to the provisions of this section are exempt from the licensure requirements of chapter • 493 for persons who watch or guard, patrol services, or private investigators. *ES. 493 regulates the licensure of private security entities. Off Duty Employees, Law Enforcement, Cont. • Any such public or private employer of a deputy sheriff shall be responsible for the acts or omissions of the deputy sheriff while performing services for that employer while off duty, including workers' compensation benefits. • A deputy sheriff so employed who sustains an injury while enforcing the criminal, traffic, or penal laws of this state shall be regarded as working on duty for workers compensation purposes. 3 Law Enforcement Moonlighting, The Federal Response FEDERAL LIABILITY Most federal litigation involving secondary employment turns on whether the officer's conduct meets the United States Code Section 1983 color of law requirement. A police officer will be deemed to be acting under color of law when she or he is acting in his official capacity or while exercising his responsibilities pursuant to state law. Generally, the courts look to the following factors In determining whether the officer Is under color of law: —There is a department policy requiring officers to be on duty at all times; —The officer displayed their department-issued badge; — The officer identified themselves as a police officer, — The officer carried or used their department - issued service weapon; —The officer placed the Individual under arrest. Off Duty Employees, Law Enforcement, Cont. STATE LIABILITY -Merely because arrangements for hiring a deputy are made directly with the deputy does not mean the public entity is free from exposure. Factors courts consider In determining whether the deputy Is or is not an "employee tor liability purposes Include: -Who is paying the officer? -Who is supervising the officer's off -duty work activities? -Who made arrangements for those work activities? -Whose uniform or equipment is being used at the time of the "off - duty" employment? Off Duty Employees, 4► Law Enforcement, Cont. ' ..14:4 . Law Enforcement entities that permit their officers or deputies to "moonlight" are well advised to: - Require permission via written application to leadership; - Require renewal or review of the application on a yearly or frequent basis. - Establish prohibitions or restrictions on the use of the uniform. - Require personnel to identify oneself as an officer with the department while working off -duty. -Place restrictions on police -type or police - related work. 4 Your Moonlighting Policy+ HAVE ONE!! -"An employee may hold a job with another organization as long as he or she fully discloses the nature and scope of same and obtains permission from her or his supervisor.' -`An employee may hold a job with another organization as long as he or she satisfactorily performs his or her job responsibilities with XYZ City/County" -%f the city/county determines that an employee's outside work interferes with performance or the ability to meet the requirements of XYZ, the employee maybe asked to terminate the outside employment If he or she wishes to remain with XYZ." - "Outside employment will present a conflict of interest if it has an adverse impact on XYZ its employees and assets.' Eminent Domain Liability hog The Seizure by Government of Private Land for Public Use - Federal Constitution via the 5th & 14th Amendments requires the payment of just compensation to the owner of that property. • Florida Constitution via Article 10 Section 6: No private property shall be taken except for a public purpose and with full compensation therefore paid to each owner or secured by deposit in the registry of the court and available to the owner." Who May Take? • The Federal Government; • The State • Counties, Municipalities; or • A private person or corporation authorized to exercise functions of public character 5 Elements of Eminent Domain • To exercise the power of eminent domain, the government must prove that the four elements set forth in the Fifth Amendment are present: • (1) private property • (2) must be taken • (3) for public use • (4) and with just compensation Eminent Domain Liability Look Before You Leap! -You take the property as you find it!! - Florida DEP • Federal CERCLA: Comprehensive Environmental Response, Compensation & Liability Act Eminent Domain Liability, Cont. Inverse Condemnation: • The taking of property by a govemment agency which so greatly damages the use of a parcel of real property that it is the equivalent of condemnation of the entire property. 6 Eminent Domain Liability, Cont. Business Damages • Florida has recognized, since 1933, that business owners need to be paid for their losses, which occur because of right -of -way takings. IF: • Less than the entire property is taken; and • The business has been in existence, at the same location, for more than four years; and • The business potentially may be damaged by a roadway project. Eminent Domain Liability, Cont. Business damages can arise from: • Lost parking; • Alterations to parking lot the interior traffic flow; • Note: Lost profit is not the sole measure of business damages. • Florida courts have recognized that items such as diminished volume of business, diminished goodwill, or reduced value of the business equipment are also compensable. Mat all Eminent Domain Liability, Cont. Business Damages, Cont. Property value may be reduced because of: a. Noise from construction b. Accessibility problems tri 7 Kelo Decision • The United States Supreme Court Ruled that Government has the power to take private property and give it to another private owner if the taking serves the overall "public good." • An example of public good would be job creation, or the elimination of slum or blight. 8 Speaker Profile Joseph G. Jarret, Esquire Attorney At Law Certified Mediator& Arbitrator Joe Jarret is Chief Legal Counsel for Polk County, Florida. He is a Certified Florida Supreme Court Mediator and Arbitrator, and the former Risk and Insurance Manager of Manatee County, Florida, (during which time he also served as an assistant county attorney) and is the past - president of the Southwest Florida Chapter of the Public Risk Management Association (PRIMA). His current practice is concentrated in the areas of risk management, law enforcement liability, code enforcement, land use, planning, and zoning law. He is a former United States Army Combat Arms (Airborne) Officer with service in the Middle East, Africa and Central Europe. Joe holds the Bachelor of Science Degree in Criminal Justice, from Troy State University (W. Germany Campus) the Masters in Public Administration from Central Michigan University, the Juris Doctor from Stetson Law school, and a post - graduate Certificate in Public Management from the University of South Florida. Joe has published approximately 85 articles in various risk management (13 in Public Risk magazine, published by PRIMA, and 2 in Risk Management, published by RIMS), law enforcement, and legal journals, and is a national speaker on risk and insurance management, and public and private sector liability issues. He has been named PRIMA's "Author of the Year" for an unprecedented 2 years in a row, 2005 & 2006. He is licensed to practice law in Florida, and before the United States Supreme Court, and other federal courts. Joe is a nationally recognized speaker on public entity liability issues and has most recently lectured on behalf of the Department of Homeland Security, PRM, the Florida Governor's Hurricane Conference, PRIMA, RIMS, the Florida Bar, the Florida Supreme Court, Alternative Dispute Resolution Center, the Florida County Attorneys Association, the Florida Prosecuting Attorney's Association, the Wyoming Law Enforcement Academy, the Michigan State Police Academy, and the Southwest Illinois Law Enforcement Commission and the National Association of Counties. He currently serves Stetson University College of Law, Southeastern College and Florida Southern College as an adjunct seminar lecturer, and is an Adjunct Professor of Business Law for Webber International University. C O N T E N T S ublic Risk 18 A Different Risk Management Approach: Top Down from the Bottom Up B Y J O S E P H T . P E C K H A M B Y 0 s Public Sector Construction Liability: Challenges for the Risk Manager Features PUBLIC RISK MANAGEMENT: CORE COMPETENCIES 16 B Y R U T H A . U N K S , A R M J O S E P H G. J A R R E T, E S Q. sk Management i 5 111r Homeland Seedtgty: The Iryorto .M.I P ,.4 C.. kde, tap Risk Management for Homeland Security: The Important Role of Public- Private Sector Cooperation B Y J O D Y R . W E S T B Y Departments 2 Advertiser Index 6 Exposures 12 One to Watch Lisa Davis 14 Letter to the Editor PUBLIC RISK (0591- 7153) k published monthly except June and December fits PRIMA by Banat Communications. 3954 W. Questa Driyc, Glendale. AZ 83310 (62 3) 516 2723 Fax: (623) 516-7738, e -mail. banarcommpi;nol com, Web site: www.primasentral.org. Opinions and ideas expressed are not necessarily rcpresentatiNe of the',ohcoes o) PRI \IA. Apply to the cdiror for permission TO reprint am. parr of the magazine. Back issues, copies are S- each for members: 513 each for non- PRINIA members. All hack issues are subject to availability. Subscription rate. SI3(1 per year. Periodical postage paid at Arlington, Va., and additional mauling others. POS I NIASI ER Send address changes to PRIAM, IS!5 N. Fnn Myer /)rice, Suite 1020, - Irlingtou, VA 22209. Copyright 2002 Public Risk Management Assosianon. IIPUBLIC RISK , 1j:i ector tion 111 28 ny t i m e overnment gets involved in construction projects, the public risk manager is challenged with ensuring that the project is completed with minimal exposure to the enti- ty. This is accomplished by conventional risk transfer and risk avoidance techniques, as well as becoming inti- mately involved with the construction process. This article is designed to alert the public sector risk manager to those areas unique to construction projects while providing pragmatic tips and solutions to minimize risk. There exist scores of public construction projects across the land that range from capital improvement projects such as roads, to the construction of low income housing, new governmental buildings such as courthouse and administrative complexes, etc. From the initial stages of a construction project, through completion, the risk manager may find herself reviewing everything from environmental or soil reports, to hold harmless agree- ments, construction contracts, to excess insurance policies. Depending upon the type or magnitude of the construction projects, exposure can be great, and claims may arise in myriad of forms, from general liability, to breach of contract, to personal injury, to workers compensation. It is essential, if you will excuse the pun, that the risk man - ager get in on the ground floor of any construction project. In so doing, many problems with far reaching risk, safety, and fiscal implications, could be avoided. fi B Y • This Land is My Land Not unlike our private sector counterparts, public entities who purchase land for the purpose of building structures thereon, are susceptible to and liable for any violations of federal, state and local laws or regulations that may burden the land. Potential risks may include: 1. Building on environmentally sensitive wetlands; 2. Building on lands that contain various species of environmental- ly protected flora and fauna such as great bald eagles, gopher tor- toises; spotted owls, etc.; 3. Building on lands that contain bio- hazardous materials such as leaking underground storage tanks, waste petroleum or other chemicals; J O S E P H G . J A R R E T , E S Q U I R E 1 4. Constructing a building on land that contains land use or related zoning restrictions thus rendering the structure incompatible with surrounding use. As a result of the above, the risk manager must insure that those responsible for purchasing a given piece of property on behalf of the entity, hold the seller to the acceptable industry stan- dard and that appropriate site and environmental studies are conducted. For instance, you will want to know whether the services of a geo -tech- nical engineer have been employed to confirm the adequacy of the natural or engineered earth on which the building is to be placed. Further, that the land purchase contract provides for a hold harmless agreement in the event latent or other inconspicuous defects in the land are dis- covered before, during or after construction. Courts are not at all sympathetic to govern- mental entities that fail to exercise due diligence. Indeed, the arcane notion of caveat emptor, or let the buyer beware," is alive and well in the construction industry and applies to public and private sectors alike. Pre - Construction Phase Prior to a single shovel turning one lump of soil, the risk manager should confer with the entity's attorney to ensure the entity is either poised to follow that particular state's building code, or is immune from the code. Rare today is the body politic that does not exempt itself, via an ordinance or resolution, from the regula- tions applicable to private construction proj- ects, especially in cases concerning the conduct of governmental functions. Further, there always exist the various OSHA regulations that pop up when you least expect them. Needless to say, there is nothing more embarrassing than to receive a "Stop Construction Order" from a state or federal inspector. Construction's Key Players: As most major construction jobs are assigned as a result of competitive bidding, it is wise to ensure that contracts with key players, to wit, the general contractor and architect, outline with specificity the construction standards that are to be adhered to. All contracts, as well as building plans and specifications are key docu- ments. They serve to define the scope of con- struction as well as the duties and responsibili- ties of the architect and general contractor as well as that of the subcontractors. It is important to distinguish between the duties and responsibilities of the architect and the general contractor. The architect puts the entity's project to paper in a set of plans developed by him or her, usually in conjunction with several con- sultants. These consultants, most commonly retained by the architect, may include civil, struc- tural, mechanical and electrical engineers. Despite the lack of direct privity (most commonly defined as the connection which exists between two or more contracting parties) the architect's consultants are generally held to be liable to the public entity for any errors or omissions in the plans or specifications attributable to their work. The general contractor is responsible for the supervision and direction of the construction project and is otherwise required to perform the work contracted for in accordance with the proj- ect plans and specifications. The general con- tractor is in direct privity with the public entity. It is important to note that, generally speaking, the contractor is responsible to the entity for the performance of the contract, regardless if the work is done directly by the contractor or the subcontractor. However, a contractor is usually not liable for personal injury or property damage caused by subcontractors unless that duty has been assumed under the construction contract. The Construction Contract: The construction contract should be of such a nature that it contains clear and concise language. Unfortunately, such contracts are often prepared using unclear language or contain ambiguous or uncertain terms thus requiring courts to construe or interpret them. In most jurisdictions, contract terms are presumed to have been used with their ordinary and custom meaning. If a portion of a contract is ambiguous, however, valuable time will be wasted as the court is called upon to assign meaning to the terms used. Construction contracts should contain the various indemnification provisions that signifi- cantly affect the liabilities of the various parties as well as the types and limits of insurance required . PUBLIC RISK . of the contractor and all subcontractors. In most jurisdictions, a contractor is not liable to persons other than the entity for the negligence of inde- pendent or subcontractors. If the agreement with the contractor fails to hold the contractor liable for the negligence of sub or independent con- tractors, then clearly, contracts entered into with the aforementioned must outline with specificity the duties, and responsibilities of same. Remember, generally speaking, there is no insur- ance coverage for the failure of a party to provide insurance because the resultant damages are not covered by a general liability policy. As such, the old adage, "if you are going to write at all, write it all," should be followed in such instances. Your legal department should be ready to discuss these concerns with you. Building Construction Generally speaking, aside from the obvious haz- ards associated with constructing a building, i.e., worker injuries, vandalism, Acts of God, etc., there exists the issue of construction defects. Generally, a contractor is not liable for injuries to third per- sons after the work has been turned over to the entity, particularly where the defect was open and obvious. If, however, a completed building includes a defect which is not discoverable by a standard building inspection, then the contractor may also be responsible after completion. Such inspections must be conducted with all diligence. Entities that accept a completed project that con- tains defects that were readily discoverable by rea- sonable inspection in effect waive the defective performance along with any redress the entity may have as a result of the shoddy work. Highway or Roads Construction Capital improvement projects such as road or high- way construction are potential areas of liability due to the enormity of the project as well as the number of vehicles on the road as a result of the project, not to mention the inherently dangerous nature of the work. Heavy earth moving machinery, dump trucks, cement mixers, and related vehicles do not mix well with the lighter, more fragile privately owned vehicles with which they share the road. During construction, road contractors have a duty to maintain barriers, railings, guards, and signals which are sufficient to warn and protect travelers on 29 Valley Oak Systems Claims Administration Software Whether it's your decision or you've been forced to make the change, we understand the hassles and costs associated with changing claims software systems. Why not make this your last software conversion? Valley Oak Systems: • supports multiple lines of insurance • incorporates `best practices' from our clients and the industry • provides functionality consistent with how examiners and managers actually handle claims • automates client- specific business rules for greater efficiency • converts clients' data accurately and rapidly • offers outstanding reporting and graphing capabilities • we're WindowsT"-based and Internet- enabled • provides superior flexibility, customer responsiveness and support The fact is, we've never lost a client. Contact us today for a demo and more information: 925 - 552 -1650 www.valleyoak.com See us in Booth #136 at RIMS Because our outstanding software is more than just a claim 30 Vall i Oak s Y S T E M S . PUBLIC B I S I( . the road or highway who are moving and driving in the exercise of reasonable care. If your jurisdiction is one that requires commercial vehicle operators to possess com- mercial drivers' licenses or other operating per- mits, you should insist that the contractor only employ persons so licensed or certified. Further, the contractor should be required to demon- strate that the vehicles dispatched for the job are road - worthy and otherwise pass safety inspec- tion muster. The same holds true, of course, of publicly owned vehicles. Depending upon the role your entity is contractually bound to undertake, your safety manager may be spending even more time in the field to ensure proper safety equipment is issued and used, and safety regulations adhered to. Obviously, such a responsibility is not limit- ed to road construction projects but rather, extends to all construction projects. A Word About Bonds An in -depth analysis of the law of performance bonds is beyond the scope of this paper Suffice it to say that the requirement that a contractor post a bond (an obligation to pay monies in the event of breach or failure to perform as contracted) or otherwise "bond his performance" is desirable because of the myriad of players who often know very little about each others' capabilities. In a nut- shell, the parties to a bond are the principal, the surety, and the obligee. The principal is the con- tractor or subcontractor who agrees to be respon- sible for the terms outlined in the bond. The sure- ty is the party that agrees to be responsible for pay- ing the obligee should the principal fail to perform, and the obligee is the public entity in whose favor the bond was written. Depending upon the scope of the project at hand, a performance bond is just one more layer of protection and risk transfer. Summary It goes without saying that capital improvement or major building projects pose unique challenges for today's public sector risk manager. Obviously, this paper merely serves to provide a thumbnail sketch of the pitfalls and liability concerns a public entity faces when engaging in such projects. By working closely with your entity's attorney, and closely scru- tinizing all contracts, agreements and other writing, you will go a long way in protecting your entity against foreseeable and unnecessary claims. • APRIL 2007 COVER STORY ICMA PUBLIC MANAGEMENT MAGAZINE Cover photo by Jim Reed /Getty Images VOLUME 89 • NUMBER 3 6 Local Government Professionals Team Up on Disaster Recovery Florida's local governments are formalizing the concept of coordinated disaster recovery. Christine Shenot, Washington, D.C. FEATURES 14 Maintaining Credibility During a Crisis: Challenges for the Manager Educating citizens on their local government's crisis plan before a crisis occurs can help strengthen the locality's reputation. Joseph Jarret, Polk County, Florida. 18 Local Governments Help Mark Jamestown's 400th Anniversary This year is the 400th anniversary of the first permanent English settlement in North America. Sanford Wanner and Ruth Richey, James City County, Virginia. 24 How to Cure (or at LeastTreat) theVideo Monitoring Heebie-Jeebies Should all video monitoring be considered sick and twisted? Ken Hampian, San Luis Obispo, California. ICMA.org/pm DEPARTMENTS 'ENTS 2 ETHICS The Manager's Name Appears in Campaign Materials : > The Free Truck 3 ON RETIREMENT Tax -Time Savings 26 PROFILE Howard Chambers, Lakewood, California 28 DIRECTOR'S DESK Consistent Messages Drive Powerful Image for ICMA and the Profession 29 FYI Top Cities in Cultural Vitality Rankings .: PERI Day of Injury Resource Manual Emphasizes Employer Early Response Sending the Right Signals: Honesty, Respect, and Power ; :-. Model Practices: Administration 33 ICMA FUND FOR PROFESSIONAL MANAGEMENT _ :1E1111 _. Public Management_' .April 2007.. eU. .A11U Lillie your 10 government is before a crisis happens. Once the crisis occurs, most of your time will be spent communi- cating with citizens and the media—not a good time to attempt to educate anyone. Attempting to do so will seem like doublespeak and will detract from your efforts to resolve whatever led to the crisis in the first place. Also, in today's integrated workplace, with its empha- sis on a team approach to management, local government managers can no longer leave crisis communication to the public affairs office. This article will explore various scenarios that managers can put into action to help their communities maintain credibility in the face of crisis. *4410 . . t ' Credibility During a Crisis: Challenges for the Manager 5,,-.....„._ ,.. .? , . , TA hether your local government suffers a crisis born out of natural disaster or human error, citizen responses and public opinion will largely depend on how much time and effort you put into commu- nication and education before the disaster occurred. The adage, "you can't talk your way out of a crisis," is as true today as it was when it , . • , 1 , eU. .A11U Lillie your 10 government is before a crisis happens. Once the crisis occurs, most of your time will be spent communi- cating with citizens and the media—not a good time to attempt to educate anyone. Attempting to do so will seem like doublespeak and will detract from your efforts to resolve whatever led to the crisis in the first place. Also, in today's integrated workplace, with its empha- sis on a team approach to management, local government managers can no longer leave crisis communication to the public affairs office. This article will explore various scenarios that managers can put into action to help their communities maintain credibility in the face of crisis. *4410 ry r A CRISIS DEFINED A crisis is any situation that threatens the integrity or reputation of your local government and that can be brought on by adverse or negative media attention. These situations include any kind of labor or legal dispute; theft; an accident leading to death, serious injury, or a public health violation; and natural disasters such as fires, floods, hurricanes, and tornadoes. In short, a local crisis can be caused by either nature or human errors, and local government becomes central if the crisis can be attributed to the community or the commu- nity needs to respond in some way. Whether the crisis arises from human error or a natural disaster, any situation that causes the media or the general public to assert that your community failed to react ap- propriately can prove disastrous in terms of both reputation and citizen confidence. In an era when citi- zens and the media are demanding greater social responsibility on the part of government, every commu- nity needs to have a cogent, easily understood policy in place —one that is designed to meet head on the challenges a crisis brings. Since Hurricane Katrina, every local gov- ernment manager can appreciate the need for a cogent crises com- munications plan. This is the stage you can plan in some detail. As part of your crisis management process, you should think hard beforehand about the containment stage, develop immedi- ate response procedures, and train people to carry out these procedures until they become instinctive. You must be able to start containing at the earliest possible moment so that the crisis doesn't get worse. Containing the crisis buys a little time to assess the situation. every crisis will require a different resolution. Don't expect to be able to pull "Plan B" off the shelf and use it as is. You will need to make a new plan for each specific crisis. Build this planning stage and the capabilities it requires into your overall crisis man- agement procedure. This is not to say that having Plan B on the shelf is useless. Far from it. Having ready -made plan components can save crucial time during a crisis, but they always have to be repack- aged, reconfigured, or otherwise read- justed on the fly. FIVE STAGES OF CRISIS COMMUNICATIONS Mark Towhey, president of Towhey Consulting Group, recommends that crisis management be broken down and addressed in five stages. Stage 1. Containment Take immedi- ate action to prevent the situation from growing worse. Although crises are always different and unpredict- able, many common elements consis- tently occur during the initial stages of any crisis: confusion, not enough information, people inside and outside government wanting or needing or de- manding to know what's going on, and a rapidly changing situation. You will need to mobilize a response team, and you will need to alert authorities. Stage 2. Assessment: Find out what's wrong and gather information needed to fix it. Emergency management orga- nizations teach their crisis managers to think on their feet. It's important to have a process in place and skilled people available to gather information and assess the situation. Because ev- ery crisis is different, you will need to EDUCATION IS KING identify what information is required, Experienced managers are well aware gather it, interpret it, and draw con- that you can't educate staff, the me- clusions. Your focus, in this stage, is dia, and the public in a crisis. The on finding the crucial information best you can do is communicate. In needed to make decisions, identify other words, if you haven't done the your options, and create a plan. necessary educating before the crisis occurs, you can't count on doing it Stage 3. Planning. Create a specific while under public scrutiny. Before plan to resolve each specific crisis. each year's hurricane or tornado sea- ; Every crisis will be different and son, for example, you must ensure Stage 4. Execution:Take action and carry out the plan. After you've contained the problem, assessed the situation, and customized a plan, you have to fix the problem. Fixing the problem can start only after you've developed a plan. Stage 5. Reorganize and review: Get back to normal and prepare for the next time. During the thick of the action, it's hard to believe that every crisis eventually ends, but it does. There's no guarantee, though, that you'll have a respite before the next' crisis begins. You must be able to return to normal quickly and restock emergency equipment and supplies. It's also critically important that you build into the crisis management procedure a time to gather staff together and reflect on what happened. What worked well? What didn't work at all? What can be learned about this experience to prevent future occurrences, resolve them more effectivdly, minimize the damage, and improve results? ICMA.orglpm _ __PublicMlanagement_ =: April20OL_ 15 Any efforts your local government has exerted in an effort to raise citizen consciousness as well as faith, trust, and confidence in government will be for naught if it is perceived that the government's own rules, regulations, policies, and procedures - are the problem and not t Ike solution. FIVE STAGES OF CRISIS COMMUNICATIONS Mark Towhey, president of Towhey Consulting Group, recommends that crisis management be broken down and addressed in five stages. Stage 1. Containment Take immedi- ate action to prevent the situation from growing worse. Although crises are always different and unpredict- able, many common elements consis- tently occur during the initial stages of any crisis: confusion, not enough information, people inside and outside government wanting or needing or de- manding to know what's going on, and a rapidly changing situation. You will need to mobilize a response team, and you will need to alert authorities. Stage 2. Assessment: Find out what's wrong and gather information needed to fix it. Emergency management orga- nizations teach their crisis managers to think on their feet. It's important to have a process in place and skilled people available to gather information and assess the situation. Because ev- ery crisis is different, you will need to EDUCATION IS KING identify what information is required, Experienced managers are well aware gather it, interpret it, and draw con- that you can't educate staff, the me- clusions. Your focus, in this stage, is dia, and the public in a crisis. The on finding the crucial information best you can do is communicate. In needed to make decisions, identify other words, if you haven't done the your options, and create a plan. necessary educating before the crisis occurs, you can't count on doing it Stage 3. Planning. Create a specific while under public scrutiny. Before plan to resolve each specific crisis. each year's hurricane or tornado sea- ; Every crisis will be different and son, for example, you must ensure Stage 4. Execution:Take action and carry out the plan. After you've contained the problem, assessed the situation, and customized a plan, you have to fix the problem. Fixing the problem can start only after you've developed a plan. Stage 5. Reorganize and review: Get back to normal and prepare for the next time. During the thick of the action, it's hard to believe that every crisis eventually ends, but it does. There's no guarantee, though, that you'll have a respite before the next' crisis begins. You must be able to return to normal quickly and restock emergency equipment and supplies. It's also critically important that you build into the crisis management procedure a time to gather staff together and reflect on what happened. What worked well? What didn't work at all? What can be learned about this experience to prevent future occurrences, resolve them more effectivdly, minimize the damage, and improve results? ICMA.orglpm _ __PublicMlanagement_ =: April20OL_ 15 that citizens know about services the local government provides; locations j of shelters and emergency supplies; and numbers to call to report storms, reach emergency services, or obtain other services. Some governments hold seminars or town hall meetings in an effort to educate citizens and members of the media about pre- and post - disaster procedures. These get - togethers pro- vide an essential service to citizens and create allies in the media. DESIGNATED SPOKESPERSON In her article, "Crisis Communica- tion Plan: A PR Blue Print, "1 Sandra K. Clawson Freeo recommends that throughout a local crisis one individu- al should be designated as the primary spokesperson to represent the com- munity, make official statements, and answer media questions. A backup to the designated spokesperson should also be identified to fill the position in case the primary spokesperson is unavailable. In addition to the primary spokes- person and the backup spokesperson, individuals who can serve as technical experts or advisers should be designat- ed. One of these people should be the local government manager, a financial expert, an engineer, a respected coin - .n iniLy le ader, or anyone the manager deems necessary during one specific crisis. This will take some brainstorm- ing by the management team because the best person might not always be apparent. An authority or technical expert needs to always be on hand to supple- ment the knowledge of the spokesper- son, especially when the issue is restor- ing essential services such as water and electricity. Remember, the manager and the staff —not the media— control information and are responsible for minimizing disinformation. Sandra Freeo also recommends that the spokesperson, the backup spokes- person, and the crisis communication expert should be comfortable in front of a television camera and with re- porters. The spokesperson should be skilled at handling media, directing responses to other topics, identify- ing key points; and speaking without jargon; respectful of the role of the reporter; knowledgeable about the or- ganization and the crisis at hand; able to establish credibility with the media; able to project confidence to the audi- ence; suitable in regard to diction and appearance; sincere, straightforward, and believable; accessible to the me- dia and to internal communications personnel who will facilitate media interviews; and able to remain calm in stressful situations. In addition to the designated spokesperson and backup, other spokespersons will represent other public entities (adjoining local gov- ernments, for example) involved in the crisis. Learn the identities of those individuals as early as possible so that all statements and contacts with the media can be coordinated among the various localities. This helps to avoid the dissemination of conflicting infor- mation or disinformation. COMMAND AND CONTROL You must be able to control your own agenda and not permit outside influ- ences to dictate priorities and alloca- tion of services. By doing so, you will maintain your credibility. Remember, most citizens and members of the me- dia respect government's need for cau- tion and discretion in not only what information should be released but also when it should be released. What neither will tolerate is unwarranted silence or evasiveness. ]-31) MAN ERROR Most rational people can appreciate that natural and human disasters are bound to occur and that human er- ror is a part of the disaster equation. However, the public and the media tend to be less forgiving when it is demonstrated or perceived that the local government failed to react prop- erly to a disaster. Governments suffer if they exhibit: • Arcane bureaucratic modalities that stifle creativity or improvisation. • Easily avoided clerical errors. • Employees resorting to unauthor- ized procedures deemed reckless. • Inadequate supervision. • Inadequate quality control. • Misuse of confidential information. • Inadequate or nonexistent standard operating procedures. • Apathy. • Indecisiveness. • An apparent lack of command and control. • Failure to remedy infirmities un- covered during a previous crisis or disaster. • Lack of communication or coop- eration among emergency, relief, social service, and related agencies. WRAP -UP Any efforts your local government has exerted in an effort to raise citizen consciousness as well as faith, trust, and confidence in government will be for naught if it is perceived that the government's own rules, regulations, policies, and procedures are the prob- lem and not the solution. Having in place a cogent, uniform, and easily understood crisis manage- ment plan, knowledgeable media spokespersons, and solid intergov- ernmental relations goes a long way toward educating and assisting the public, informing the media, and maintaining the integrity and reputa- tion of your local government. 'The article can be found at www.News Plac.o rg/crisis. html. Joseph G. Jarret, Esquire, is the Polk County Attorney, a Florida Supreme Court Mediator & Arbitrator and a former United States Army Combat Arms Officer. He holds the Juris Doctorate from Stetson University College of Law, the Masters in Public Administration from Central Michigan University, the Bachelor of Science from Troy State University (W. Germany campus) and a Graduate Certificate in Public Management from the University of South Florida. He is the Public Risk Management Association's Author of the Year for 2005 & 2006 and is a member of the faculty of the annual Florida Governor's Hurricane Conference. Order Now: (Credit Card Only) ACTIVE STANDARD: Pages: 10 Price: $ 35.00 Choose delivery method: Download (PDF) Mall Delivery What is an Active standard? HISTORICAL STANDARD: View Previous Versions of this Standard What le . an..Historical Standard? Other Users of This Standard Also Downloaded: F2056 Help.. Desk Standards Search Over Standards Pr xi Document Summary Copyright 2007 ASTM International. All rights reserved. ACTIVE STANDARD: F1938- 98(2004) Guide for Safer Use of Movable Soccer Goals mai View Cart Developed by Subcommittee: F15.43 See Related Work by this Subcommittee Adoptions: Book of Standards Volume: 15.11 1. Scope CLICK TO VIEW ASTM LICENSE AGREEMENT '. 1.1 This guide presents directions for the installation, use, and storage of full -size or nearly full -size movable soccer goals. It is expected that these guidelines can help prevent deaths and serious injuries resulting from soccer goal tipover. 1.2 These guidelines are intended for use by parks and recreation personnel, school officials, sports equipment purchasers, parents, coaches, and any other members of the general public concerned with soccer goal safety. 1.3 These guidelines are intended to address the risk of movable soccer goal tipover. Index Terms safety labels; soccer goals; 97.220.10 Citing ASTM Standards [Back to Top[ . AS`FMCOLLECCION ACTIVE F1938 DESIGNATION ION F1938 DESIGNATION F1938 DESIGNATION F1938 DESIGNATION F1938 F1938 F1938 F1938 F1938 F1938 F1938 F1938 FI938 Movable Soccer Goals Can Fall Over On Children Movable soccer goals can fall over and kill or injure children who climb on them or hang from the crossbar. The U.S. Consumer Product Safety Commission (CPSC) has reports of at least 28 deaths since 1979 resulting from soccer goals falling over. Both homemade and professionally manufactured soccer goals are involved in these incidents. To help prevent deaths and injuries associated with soccer goals, follow these safety suggestions. • Securely anchor or counter - weight movable soccer goals at all times (see illustration). • Never climb on the soccer net or goal framework. • Always instruct soccer players on the safe handling of and potential dangers associated with movable soccer goals. • Use movable soccer goals only on level (flat) fields. • Check all connecting hardware before every use. Replace damaged or missing fasteners immediately. • Ensure safety labels are clearly visible. • Remove nets when goals are not in use. • Anchor or chain goals to nearby fence posts, dugouts, or similar sturdy fixtures when not in use. • Fully disassemble goals for seasonal storage. A voluntary safety standard for soccer goals and a guide for safer use are available from ASTM International at www.ASTM.org. Never climb or hang from goal. Goal can fail over causing serious injury or death. Stake AWARNING Always anchor goal. Unsecured goal can fall over causing serious injury or death. Use stake or auger anchor. CPSC -5118 Auger Sandbags or other counterweights could be an effective alternate on hard surfaces such as artificial turf. U.S. CONSUMER PRODUCT SAFETY COMMISSION ASHINGTON, D.C. 20207 • (800) 638 -2772 • www.cpsc,gov • www.recalls.gov [ MOVABL SOCCER GOAL SAF: January 1995 U.S. Consumer Product Safety Commission Washington, D.C. 20207 CONTENTS 1. Introduction 2. Soccer Goal Injuries 1-2 3. Rules of Soccer 2 4. Design/Construction Guidelines 3 5. Anchoring /Securing /Counterweighting Guidelines 4 -7 6. Goal Storage Guidelines 7 -8 7. Conclusions 8 APPENDICES Appendix A - List of Soccer Organizations 9 Appendix B - For Further Information 9 Appendix C - Warning Labels 10 1. Introduction This handbook presents guidelines for the installation, use and storage of full -size or nearly full - size movable soccer goals. The U.S. Consumer Product Safety Commission (CPSC) believes these guidelines can help prevent deaths and serious injuries resulting from soccer goal tipover. Publication of the handbook is intended to promote greater safety awareness among those who purchase, install, use, and maintain movable soccer goals. These guidelines are intended for use by parks and recreation personnel, school officials, sports equipment purchasers, parents, coaches, and any other members of the general public concerned with soccer goal safety. These guidelines are intended to address the risk of movable soccer goal tipover. They are not a CPSC standard, nor are they mandatory requirements. Therefore, the Commission does not endorse them as the sole method to minimize injuries associated with soccer goals. 2. Soccer Goal Injuries and Deaths According to the 1994 National Soccer Participation Survey (Soccer Industry Council of America), over 16 million persons in the United States play soccer at least once a year. Seventy - four percent (over 12 million) of these persons are under the age of 18. Soccer ranks fourth in participation for those under 18, following basketball, volleyball, and softball and well ahead of baseball, which has an annual participation of 9.7 million. There are approximately 225,000 to 500,000" soccer goals in the United States. Many of these soccer goals are unsafe because they are unstable and are either unanchored or not properly anchored or counter - balanced. These movable soccer goals pose an unnecessary risk of tipover to children who climb on goals (or nets) or hang from the crossbar. The CPSC knows of four deaths in 1990 alone and At least 21 deaths during the past 16 years (1979 -1994) associated with movable soccer goals. In addition, an estimated 120 injuries involving falling goals were treated each year in U.S. hospital emergency rooms during the period 1989 through 1993. Many of the serious incidents occurred when the soccer goals tipped over onto the victim. Almost all of the goals involved in these tipovers appeared to be "home- made" by high school shop classes, custodial members, or local welders, not professionally manufactured. These "home- made" goals are often very heavy and unstable. The majority of movable soccer goals are constructed of metal, typically weighing 150 -500" pounds. The serious injuries and deaths are a result of blunt force trauma to the head, neck, chest, and limbs of the victims. In most cases this occurred when the goal tipped or was accidentally tipped onto the victim. In one case an 8- year -old child was fatally injured when the movable soccer goal he was climbing tipped over and struck him on the head. In another case, a 20- year -old male died from a massive head trauma when he pulled a goal down on himself while attempting to do chin -ups. In a third case, while attempting to tighten a net to its goal post, the victim's father lifted the back base of the goal causing it to tip over striking his 3- year -old child on the head, causing a fatal injury. High winds can also cause movable soccer goals to fall over. For example, a 9- year -old was fatally injured when a goal was tipped over by a gust of wind. In another incident, a 19- year -old goalie suffered stress fractures to both legs when the soccer goal was blown on top of her. 3. Rules of Soccer From the Federation of International De Football Associations' (FIFA) Laws of the Game, Guide for Referees, July 1993. "Goal -posts and cross -bars must be made of wood, metal, or other approved material as decided from time to time by the International Football Association Board. They maybe square, rectangular, round. half round, or elliptical in shape." "Goal -posts and cross -bars made of other materials and in other shapes are not permitted. The goal -posts must be white in color." "The width and depth of the cross -bar shall not exceed 5 inches(12 cm)." From the National Federation of State High School Associations' (NFSHSA) 1994 -95 National Federation Edition - Soccer Rules Book "They shall consist of 2 upright (posts) 4 inches but not more than 5 inches (0.10m by 0. 12m)...the tops of the posts shall be joined by a 4 inches but not more than 5 inches (0. 10m by 0.12m) horizontal crossbar..." From the National Collegiate Athletic Associations' (NCAA) Rules for Soccer. "...and shall consist of two wooden or metal posts, ... the width or diameter of the goal -posts and crossbar shall not be less than 4 inches (10.16 cm) nor more than 5 inches (12.7 cm)." 2 4. Design /Construction Guidelines While a movable soccer goal appears to be a simple structure, a correctly designed goal is carefully constructed with counterbalancing measures incorporated into the product. The common dimensions of a full -size goal are approximately 7.3 m (24 ft.) in width by 2.4 m (8 ft.) in height and 1.8 m (6 ft.) in depth (see Figure 1). The stability of a soccer goal depends on several factors. One effective design alternative uses a counterbalancing strategy by lengthening the overall depth of the goal to effectively place more weight further from the goal's front posts (more weight at the back of the goal). A second design selects lightweight materials for the goal's front posts and crossbar and provides much heavier materials for the rear ground bar and frame members. This tends to counterbalance the forces working to tip the goal forward. Another design uses a heavy rear framework and folds flat when not in use, making the goal much less likely to tip over. Finally, after these various designs are considered, it is imperative that ALL movable soccer goals be anchored firmly in place at all times (see section 5). Crossbar Front Post (left) Netting Backdrop Rear Ground Bar (if round) Shoe (if flat) Front Post (right) Back Stay Ground Bar (if round) Shoe (if flat) Figure 1: Components of a Movable Soccer Goal 3 5. Anchoring /Securing /Counterweighting Guidelines A properly anchored /counterweighted movable soccer goal is much less likely to tip over. Remember to secure the goal to the ground (preferably at the rear of the goal), making sure the anchors are flush with the ground and clearly visible. It is IMPERATIVE that ALL movable soccer goals are always anchored properly (see Figure 2). There are several different ways to secure your soccer goal. The number and type of anchors to be used will depend on a number of factors, such as soil type, soil moisture content, and total goal weight. Figure 2: Goal Anchoring Anchor Types Auger Stake NOTE: There are other methods of anchoring available • Auger style This style anchor is "helical" shaped and is screwed into the ground. A flange is positioned over the ground shoes (bar) and rear ground shoe (bar) to secure them to the ground. A minimum of two auger -style anchors (one on each side of the goal) are recommended. More may be required, depending on the manufacturer's specifications, the weight of the goal, and soil conditions. Figure 3.1: Auger Style Anchor 4 • Semipermanent This anchor type is usually comprised of two or more functional components. The main support requires a permanently secured base that is buried underground. One type (3.2a) of semipermanent anchor connects the underground base to the soccer goal by means of 2 tethers. Another design (3.2b) utilizes a buried anchor tube with a threaded opening at ground level. The goal is positioned over the buried tube and the bolt is passed through the goal ground shoes (bar) and rear ground shoe (bar) and screwed into the threaded hole of the buried tube. Figure 3.2a: Semipermanent Anchor Figure 3.2b: Semipermanent Anchor • Peg or Stake style (varying lengths) Typically two to four pegs or stakes are used per goal (more for heavier goals) (Figure 3.3). The normal length of a peg or stake is approximately 10 inches (250mm). Care should be taken when installing pegs or stakes. Pegs or stakes should be driven into the ground with a sledge - hammer as far as possible and at an angle if possible, through available holes in the ground shoes (bar) and rear ground shoe (bar) to secure them to the ground. If the peg or stake is not flush with the ground, it should be clearly visible to persons playing near the soccer goal. Stakes with larger diameters or textured surfaces have greater holding capacity. Figure 3.3: Peg or Stake Style Anchor 5 • J -Hook Shaped Stake style This style is used when holes are not pre - drilled into the ground shoes (bars) or rear ground shoe (bar) of the goal. Similar to the peg or stake style, this anchor is hammered, at an angle if possible, directly into the earth. The curved (top) position of this anchor fits over the goal member to secure it to the ground (Figure 3.4). Typically, two to four stakes of this type are recommended (per goal), depending on stake structure, manufacturers specifications, weight of goal, and soil conditions. Stakes with larger diameters or textured surfaces have greater holding capacity. Figure 3.4: J -Hook Anchor • Sandbags /Counterweights Sandbags or other counterweights could be an effective alternative on hard surfaces, such as artificial turf, where the surface can not be penetrated by a conventional anchor (i. e., an indoor practice facility) (Figure 3.5). The number of bags or weights needed will vary and must be adequate for the size and total weight of the goal being supported. Figure 3.5: Sandbag Method of Anchoring 6 (Rear) Ground Bar /Shoe • Net Pegs These tapered, metal stakes should be used to secure only the NET to the ground (Figure 3.6). Net pegs should NOT be used to anchor the movable soccer goal. Figure 3.6: Net Pegs Net pegs should never be used to anchor a soccer goal 6. Guidelines for Goal Storage or Securing When Goal is Not in Use The majority of the incidents investigated by CPSC did not occur during a soccer match. Most of the incidents occurred when the goals were unattended. Therefore, it is imperative that all goals are stored properly when not being used. When goals are not being used always: a) Remove the net, b) Take appropriate steps to secure goals such as: 1) Place the goal frames face to face and secure them at each goalpost with a lock and chain (see Figure 4.1 ), Chain and Lock Figure 4.1: Join Goal Faces and Lock Together Using Chain and Lock 7 2) Lock and chain to a suitable fixed structure such as a permanent fence (see Figure 4.2), 3) Lock unused goals in a secure storage room after each use, 4) If applicable, fully disassemble the goals for seasonal storage, or 5) If applicable, fold the face of the goal down and lock it to its base. Figure 4.2: Attach Goal Face to Permanent Fence with a Chain Lock 7. Conclusions /Safety Tips • Securely anchor or counterweight movable soccer goals at ALL times (see prior illustration). • Anchor or chain one goal to another, to itself in a folded down position, or to nearby fence posts, dugouts, or any other similar sturdy fixture when not in use. If this is not practical, store movable soccer goals in a place where children cannot have access to them. • Remove nets when goals are not in use. • Check for structural integrity and proper connecting hardware before every use. Replace damaged or missing parts or fasteners immediately. • NEVER allow anyone to climb on the net or goal framework. • Ensure safety /warning labels (see Appendix C) are clearly visible (placed under the crossbar and on the sides of the down -posts at eye level). • Fully disassemble goals for seasonal storage. • Always exercise extreme caution when moving goals and allow adequate manpower to move goals of varied sizes and weights. Movable soccer goals should only be moved by authorized and trained personnel. • Always instruct players on the safe handling of and potential dangers associated with movable soccer goals. • Movable soccer goals should only be used on LEVEL (flat) fields. 8 Appendix A. List of Soccer Organizations Federation of International De Football Association Hitzigweg 11,8030 Zurich, Switzerland Telephone 41 -1- 384 -9595 National Federation of State High School Associations 11724 NW Plaza Circle Box 20626 Kansas City, Missouri 64195 -0626 Telephone (816) 464 -5400 National Collegiate Athletic Association 6201 College Blvd Overland Park, Kansas 66211 -2422 Telephone (91 3) 339 -1906 APPENDIX B. For Further Information For further information on soccer goal anchors and/or to obtain FREE soccer goal warning labels (see Appendix C), safety alerts/bulletins and additional copies of this document, please contact: The Coalition to Promote Soccer Goal Safety c/o Soccer Industry Council of America 200 Castlewood Dr. North Plain Beach, FL 33408 or call any of these Coalition members: 800 -527 -7510 800 - 334 -4625 800 - 243 -0533 800 -531 -4252 or write: U.S. Consumer Product Safety Commission Washington, D.C. 20207 To report a dangerous product or a product- related injury, call CPSC'S toll -free hotline at (800) 638 -2772 or CPSC'S teletypewriter at (800) 638 -8270. Consumers can get recall information via Internet gopher services at cpsc.gov or report product hazards to info @cpsc.gov. This document is in the public domain. It may be reproduced in part or in whole by an mdlvidual or organization without perrnisslon. If it is reproduced, however, the Commission would appreciate knowing how it is used. Write the U.S. Consumer Product Safety Commission, Office of Information and Public Affairs, Washington, D.C. 20207." The U.S. Consumer Product Safety Commission (CPSC) is an independent regulatory agency charged with reducing unreasonable risks of injury associated with consumer products. 9 Appendix C. Warning Labels AWARNING ALWAYS ANCHOR GOAL Unsecured Goal Can Fall Over Causing Serious Injury or Death AWARNING NEVER CLIMB OR HANG ON GOAL Goal Can Fall Over Causing Serious Injury or Death 10 AWARNING Never climb or hang on goal. Goal can fall over causing serious injury or death. AWARNING Always anchor goal. Unsecured goal can fall over causing serious injury or death. U.S. Government Printing Once 1995 - 390 -080 (20491) PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY F. Request Board Approval on Renewal of 5 -Yr PRM Office Lease Agreement The current office lease expires August, 2007. After review by Legal Counsel, the Executive Director recommends approval for renewing another 5 -yr. agreement with Cheyney Enterprises. See attachment. B rd Action: Approved Denied Deferred Other G. Request Board Approval of 2007/08 Administrative Budget The proposed administrative budget includes an 8% salary increase for the Executive Director and 6% overall for staff. The only significant increase is the cost for the Insurance Consultant, previously paid by our broker and which will now be paid directly by PRM. This cost is allocated to each member based on the Pool's equitable distribution percentage for each member as are all PRM administrative expenses. The Executive Committee will review the proposed budget at their May 10th meeting and provide their recommendation. Attached: Proposed Administrative Budget for FY 2007/08 Bo rd Action: Approved Denied Deferred Other 4.F. PRM OFFICE LEASE NET LEASE AGREEMENT ADDENDUM THIS LEASE ADDENDUM is made this 17TH day of April, 2007 ( "EXECUTION DATE ") by and between ROBERT B. AND PATRICIA ANN CHEYNEY, ( "LANDLORD ") and PUBLIC RISK MANAGEMENT OF FLORIDA, LESSEE, 3434 HANCOCK BRIDGE PARKWAY, FT MYERS, FL 33903. The Landlord, located at 3434 Hancock Bridge Parkway, Suite 200, North Fort Myers, Florida 33903, with additional offices at 7845 Manasota Key Rd, Englewood, Florida 34223 is the owner of the land, building and improvements, which are more particularly described as: Suite 203, (incorporating Suite 202) of approximately 3,600 and 720 rentable square feet of office space, located at 3434 Hancock Bridge Parkway, North Fort Myers, Florida 33903 ( "PREMISE$ "). Also known as North Point Office Plaza, Fort Myers, Florida 1. INTRODUCTION, The Landlord hereby renews and extends the original lease dated and effective September 1st , 2002 of the Premises, to the Tenant and the Tenant extends and leases the Premises from the Landlord, upon and subject to the original terms and conditions set forth in the original Lease Agreement for an additional period as listed and amended below. 1.1 EFFECTIVE DATE OF THE LEASE EXTENSION. This lease renewal/extension will be effective and commence on September 1st, 2007 ( "Effective Date "). 1.2 TERM. The term of this lease shall be for the period five (5) years from September 1St, 2007 through and including August 31st , 2012. ( "Lease Period "). 1.3 OPTION TO RENEW. Provided Tenant has not been delinquent in its Lease Payments within six months of the end of the Lease Period, Tenant may exercise an option to renew this Lease for additional period of five (5) years. Notice of intent to exercise this option must be delivered in writing to the Landlord not later than one hundred and twenty (120) days prior to the end of the lease period. Any extensions of the original Lease Period accepted by the Landlord shall be controlled by the original Lease and this Addendum. 1.4 RENT: The rent for the first year of this renewal period. being September 1St, 2007 through August 313`, 2008 of this ADDENDUM shall be at the rate of $17.85 per square foot for 3600 square feet and $13.91 per square foot for 720 square feet, totaling $6,189.60 per month. For each subsequent twelve -month period during the Term of the Lease, the rent shall increase 3% per year beginning September 1st, 2008. The Tenant shall pay the rent to the Landlord or to the Landlord's Agent in advance, on or before the first day of each month. Should the Tenant chose to renew this lease for the extended period beginning September 1st, 2012 following the expiration of this ADDENDUM, the rent shall be negotiated prior to one hundred and twenty (120) days of the expiration of the terms of this ADDENDUM. 2. INCORPORATION OF TERMS. All terms of the original Commercial Lease dated September 1st, 2002 which are not inconsistent with the express terms of this Addendum are incorporated herein by reference and shall apply to this Addendum. WITNESSES AS TO LANDLORD: Printed Nam. %k mad WITNESSES AS TO TENANT Printed Name Patricia Aim CHEYNEY TENANT: PUBLIC RISK MANAGEMENT OF FLORIDA By: Printed Name 4.G. PRM ADMINISTRATIVE BUDGET FY 2007/08 STAFFING Public Risk Management Of Florida Property / Casualty Proposed Administrative Budget FY 2007 - 2008 2005/2006 2005/2006 2006/2007 3/31/2007 2007/2008 % Change Budget Actual Budget Actual Proposed Budget Officer Salary 115,602 118,236 124,850 59,556 134,838 8% Office Salary 474,525 462,915 502,997 233,484 533,176 6% Payroll Taxes 44,761 44,619 47,624 21,129 50,480 6% Florida Retirement 50,851 50,602 54,593 29,252 68,938 26% Health Ins. - Officer 7,614 7,046 8,756 8,455 10,069 15% Health Inc. - Office 102,708 94,714 118,114 55,833 135,831 15% Life Ins. - Officer 832 863 899 465 1,004 12% Life Ins. - Office 1,691 1,733 1,792 963 1,986 11% Long Term Disability 8,255 10,901 11,255 4,656 11,500 2% Total Personnel Budget 806,839 791,629 870,880 413,793 947,822 9% OPERATING EXPENSE Legal Fees 12,000 3,787 6,000 5,242 15,000 150% Pre - defense Legal 7,500 1,040 5,000 115 5,000 0% Audit Fees 31,000 26,000 29,000 27,200 29,000 0% Actuarial Study 14,000 13,555 14,000 14,138 14,000 0% Appraisal Expense 2,500 2,500 5,500 2,750 5,775 5% Auto Expense 3,000 6,355 3,000 1,444 4,800 60% Travel Expense 28,500 57,487 30,000 27,105 30,000 0% Association memberships 3,000 734 2,000 482 2,000 0% Dues/Subscriptions 2,500 1,571 3,200 1,332 3,200 0% Education /Training /Confer. 25,000 17,874 30,000 2,970 30,000 0% Office Lease 71,830 76,040 72,129 36,064 75,736 5% Janitorial / Cleaning 3,600 2,930 3,600 1,640 3,800 6% Office/Computer Equipment 18,000 28,744 18,000 18,774 18,000 0% Telephone 26,000 19,830 26,000 9,579 26,000 0% Copy Machine Lease 3,000 2,794 3,000 1,324 3,000 056 Repairs/Maint :Equipment 2,000 500 2,000 1,288 2,000 0% Office Expense 14,000 13,349 14,000 10,329 14,000 0% Newsletter 4,000 2,498 4,000 833 4,000 0% Postage 11,000 10,040 12,000 5,854 13,000 8% Printing 2,000 1,345 2,000 0 2,000 0% Insurance- Flood /General 3,000 1,000 3,000 1,000 3,000 0% Loss Prevention Expense 22,000 15,214 22,000 11,532 22,000 0 °h - Marketing &promotion 4,500 4,616 4,500 168 4,500 0% Meeting Expense 24,100 25,385 24,100 4,008 24,100 0% Miscellaneous Expense 2,500 6,359 2,500 2,282 2,500 0% Training/Seminar Presentation 6,000 0 6,000 0 6,000 0% Web Site Maintenance 6,800 0 6,800 0 6,800 0% Hurricane Expense 0 769 0 0 0 0% Non - Budget -Board Approval 0 868 0 0 0 0% Total Operating Expense 353,330 343,182 353,329 187,452 369,211 4% Total Admin. Budget 1,160,169 1,134,811 1,224,209 601,245 1,317,033 8% Computer Replacement Reserve 7,000 7,000 15,000 15,000 15,000 Auto Replacement Reserve 24.000 24.000 30.000 30.000 30,000 Admin Budget with Reserves 1,191,169 1,165,811 1,269,209 646,245 1,362,033 8% Group Helath Admin. Transfer - 116,124 - 58,062 - 143,480.00 Admin Budget with Gr. Filth. Credit 1,191,169 1,165,811 1,153,085 588,183 1,218,553 6% 218,000~ Adman Budget with Ins. Consultant 1,191,169 1,165,811 1,153,085 588,183 1,436,553 25% Insurance Consultant Insurance Consultant 120,000 140,000 218,000 109,126 5/1/2007 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 2007 -2008 2005/06 2005/06 Budget Actual 8,000 0 12,000 13,000 2,500 2,200 3,000 252 15,000 0 40,500 15,452 62,525 62,525 25,798 25,798 88,323 88,323 130,823 103,775 2006/2007 03/31/2007 2007/2008 Budget Actual Proposed Budget 8,000 14,000 2,500 3,000 15,000 42,500 89,411 26,613 0 8,000 0 14,000 0 2,500 0 3,000 0 15,000 0 42,500 44,706 108,675 13,307 34,805 116,024 58,012 143,480 158,524 58,012 185,980 Transfer to be calculated at 19.5% of applicable salary and 12.5% of applicable operating expenses. Salariee/Benefits 172,457 Exec. Director 119,977 Asst Exec Director 96,914 Accountant 104,547 UP Consultant 63.413, Admin. Asst. 557,308 19.5% 108,675 Personal Transfer Operating: 4,800 Auto Expense 30,000 2,000 3,200 30,000 75,736 3,800 18,000 26,000 3,000 2,000 14,000 13,000 2,000 3,000 4,500 24,100 2,500 4,000 6,000 6.800 278,436 12.5 % 34,805 Travel Expense Assoc Memberships Dues/Subscriptions EduclTraln/Conf Office Lease Janitorial/Cleaning OfflcelComputer Equipment Telephone Copy Machine Lease Repairs/Maint- Equipment Office Expense Postage Printing Insurance - Flood/General Marketing & promotion Meeting Expense Misc. Exp. Newsletter Training /Seminar Presentation Web Site Maintenance 143,480 = 2007/08 Transfer 11,957 = Monthly Transfer 4/18/2007 2007/08 Budget Expenses Legal Fees Anticipated need for legal advice - public meetings, by -laws Sunshine Law - Includes new retajner for legal council 150% Increase Pre - defense - Legal Member usage & retainer fee for A.N.B. No Increase Audit Fees Yearly CPA audit & related legal & printing expenses No Increase 15,000 5,000 28,000 Acturial Study 14,000 Yearly actuarial study & report No increase. Appraisal Expense 5,776 Software & related updates for members 5% Increase Auto Expense 4,800 General maintenance & repairs - O1I changes, Tune -ups, Tires & Car wash, AAA Coverage, 60% Increase Travet Expense 30,000 Gas, Lodging, Meals, Air fare Approx 25% Exec. Dir., 60% Loss Prev.,15% Claims No Increase Association Memberships 2,000 Annual Renewals - Includes professional dues/memberships No increase Dues / Subscriptions 3,200 Annual Renewals - includes office & trade publications No Increase - Allows for subscriptions to selected local newspapers of members. No Increase Education / Training / Conference . 30,000 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 No Increase Office Lease 76,736 Increase per lease agreement percentage Janitorial / Cleaning 3,800 Weekly cleaning service, pest control & carpet shampoo 6% increase Office / Computer Equipment 18,000 Software, Strato Net Internet Connection Web Site Design, System maintenance, No increase Electric Office electricity expense Combined with rent expense Water / Trash City water, sewer & trash collection Combined with rent expense 0 0 4/18/2007 Page 1 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 26,000 3,000 No increase. 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 13,000 Pitney Bowes rental, postage, FedEx, etc. Postage Increase - 2007 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 - Underwriter Meeting - $13,000 No Increase Miscellaneous Expense Off -site storage & incidental. expense & fees No increase 3,000 22,000 4,500 24,100 2,500 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 0 $7,500 Computer Replacement Reserve 8,800 359.211 30,000 15,000 Total Replacement Expense: 45,000 4/18/2007 Page 2 Officer Salary 154,398 8% increase from P & c Pool Office Salary 546,256 6% increase Payroll Taxes 50,480 Applicable percentage based on eateries Employee Retirement 68,938 1213% of salary amount - officer 9.85% of salary amount- office Officer Health Insurance 10,069 Applicable Coverages based on a 15% Increase Office Health Insurance 135,831 Applicable Coverages based on a 15% Increase Officer Life Insurance 1,004 Applicable rate based on two times salary Office Life Insurance 1,986 Applicable rate based on one times salary Long Term Disability 11,500 Applicable rates based on age & salary Total Salary Compensation: 980,462 (32.640) **Less Health Compensation Total Personnel Expense: 947.8 Total Expense with Reserves: 1.362.03$ " 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. 4/18/2007 Page 3 2007/08 Salary Budget EXECUTIVE DIRECTOR 2006 -2007 8% Increase 2007 -2008 Current Proposed Proposed Salary 124,850 9,988 134,838 Payroll Taxes 9,552 573 10,125 Pension / ICMA 15,209 1,212 16,421 Health Insurance 8,756 1,313 10,069 Life Insurance 809 105 1,004 Totals 159,266 13,191 172,457 ASST. EXECUTIVE DIRECTOR 2006 -2007 6% Increase 2007 -2008 Current Proposed Proposed Salary 78,920 4,735 83,655 Payroll Taxes 6,037 362 6,399 Pension / FL Retirement 6,179 2,061 8,240 Health Insurance 18,583 2,787 21,370 Life Insurance 286 26 112 Totals 110,005 9,972 119,977 ACCOUNTANT 2006 -2007 6% Increase 2007 -2008 Current Proposed Proposed Salary 61,939 3,716 65,655 Payroll Taxes 4,738 284 5,022 Pension / FL Retirement 4,850 1,617 6,467 Health Insurance 16,977 2,547 19,524 Life Insurance 721 21 2.1§ Total 88,729 8,185 96,914 CLAIMS & ADMIN. ASSISTANT 2006 -2007 6% Increase 2007 -2008 Current Proposed Proposed Salary 35,129 2,108 37,237 Payroll Taxes 2,686 161 2,847 Pension / FL Retirement 2,751 917 3,668 Health Insurance 16,977 2,547 19,524 Life Insurance 127 11 IN Totals 57,670 5,743 63,413 SR. LOSS PREV. CONSULTANT 2006 -2007 6% Increase 2007 -2008 Current Proposed Proposed Salary 85,044 5,103 90,147 Payroll Taxes 6,505 390 6,895 Pension 1 FL Retirement 6,659 2,220 8,879 Health Insurance 8,756 1,313 10,069 Life Insurence ?.E$ E Totals 107,252 9,074 116,326 LOSS PREV. CONSULTANT 2006- 2007 6% Increase 2007 -2008 Current Proposed Proposed Salary 75,998 4,560 80,558 Payroll Taxes 5,813 349 6,162 Pension / FL Retirement 5,951 1,984 7,935 Health Insurance 18,583 2,787 21,370 Life Insurans a 2E1 2§ ZQ1 Totals 106,618 9,708 116,326 L/P ADMINISTRATIVE ASSISTANT -I 2006 -2007 6% Increase 2007 -2008 Current Proposed Proposed Salary 36,467 2,188 38,655 Payroll Taxes 2,791 167 2,958. Pension / FL Retirement 2,855 953 3,808 Health Insurance 5,290 794 6,084 Life Insurance 131 14 145 Totals 47,534 4,116 51,650 L/P CONSULTANT -EMP. PRACTICES 2006 -2007 6% Increase 2007 -2008 Current Proposed Proposed Salary 68,900 4,134 73,034 Payroll Taxes 4,865 292 5,157 Pension / FL Retirement 5,395 1,799 7,194 Health Insurance 16,427 2,464 18,891 Life Insurance 23§ m 2Z2 Totals 95,823 8,724 104,547 CLAIMS MANAGER 2006 -2007 6% Increase 2007 -2008 Current Proposed Proposed Salary 60,599 3,636 64,235 PayroH Taxes 4,636 278 4,914 Pension / FL Retirement 4,745 1,582 6,327 Health Insurance 16,521 2,478 18,999 Life Insurance 225 a M Totals 86,726 7,987 94,713 2006.2007 6% Increase 2007 -2008 Current Proposed Proposed Total Officer Salary 124,850 9,988 134,838 8% Total Office Salary 502,996 30,180 533,176 6% Total Payroll Taxes 47,623 2,857 50,480 6% Total Retirement 54,594 14,344 68,938 26% Total Officer HMI Ins 8,756 1,313 10,069 15% Total Office Hlth Ins 118,114 17,717 135,831 15% Total Officer Life Ins 899 105 1,004 12% Total Office Life Ins 1791 195 1.986 11% Total Payroll Expense 859,623 67,976 936,323 9% Total Long Term Disab Ins 11.255 3,750 11.500 2% Total Staffing Expense 870,878 71,726 947,823 9% PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY Request Approval on Changes to By -Laws Ross Furry Attached are By -Laws changes that are being recommended in order to affix the changes that the Board voted in order that all of our policies have an inception date of April 1st and an expiration date of March 31st. Listed below is a recap of each change. Page 1, 1st Paragraph — BE IT KNOWN THAT: The proposed change corrects Florida Statutes Sections 768.28(15) to read Florida Statutes Sections 768.28(16)(a). Article 2 — Definitions and Purpose Amended wording will place the Loss Fund on a policy year rather than fiscal year. Amended wording will add Policy Year to Definitions and Purpose. Article 3 — Powers and Duties Amendment to Article 3.1.6. — Adds language that allows and identifies that PRM has the power to purchase any insurance, i.e., reinsurance, excess property, excess WC, excess liability, pollution, boiler & machinery, etc., approved by the Board. Amendment to Article 3.1.8. — Correct Florida Statutes Section 768.28(14) to (16). Article 4 — Participation and Term Amendment to Article 4.2. Notice of Withdrawal — Change fiscal year to policy year. Amendment to Article 4.3. Actual Withdrawal /Required Withdrawal — Change fiscal year to policy year. Change final notice date from August 15 to February 15. Change the date to expel a member from August 1 to February 1 as described in Article 17. PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY 5. Request Approval on Changes to By -Laws (cont'd) Article 9 — Finances and Risk Management Pool Amendment to Article 9.2.Budget — Change fiscal year to policy year. Change date to adopt a final budget from August 1 to February 1 to coincide with policy year. Amendment to Article 9.4. Budget Amendments — Change fiscal year to policy year. Article 10 — Excess Insurance Amendment to Article 10.4. Losses — Change fiscal year to policy year. Article 11 — Obligations of Members Amendment to Article 11.1.7.1. — Change date to November 1 and change fiscal year to policy year. Article 14 — Settlements Amendment to Article 14.1 Settlement/Advance Notice — Change settlement amount from $5,000 to $10,000. The fiscal year for the Pool will remain from October 1st to September 30th according to Florida statutes, substantiated by the attached memos from our independent auditor and legal counsel. Bo rd Action: Approved Denied Deferred Other Proposed By -Laws Changes (The proposed changes are reflected by striking through and underlining the current text and replacing with bolding and italics.) Proposed: The below named public agency or agencies of the State of Florida for the purpose of a risk management and self - insurance association pursuant to the terms of Florida Statutes Sections 768.28(4-5) (16)(a), 440.57, and 163.01, Florida Interlocal Cooperation Act of 1969, do bind themselves contractually to and adopt these Articles of Association and By -Laws. Article 2 - Definitions and Purpose Proposed: "Loss Fund ": The fund established to pay claims occurring within the "Self Insured Retention." The "Loss Fund" represents the maximum amount for which the Pool is exposed in a single fiscal policy period. New Addition: "Policy Year": The policy year of the Pool shall begin on April 1st and end on March 31st, or on other dates as approved by the membership in attendance at a scheduled meeting of the membership. Article 3 - Power and Duties 3.1.6. Current: To purchase Aggregate Excess Insurance and Specific Excess Insurance to supplement the Risk Management Pool without such being a waiver of sovereign immunity under Florida Law. Proposed: To purchase Aggregate Excess Insurance, Reinsurance, Excess Property Insurance, Excess Worker's Compensation Insurance, Excess Liability Insurance, Pollution Insurance, Boiler & Machinery Insurance and Specific Excess Insurance, and any other form of insurance deemed reasonable and necessary by the Board of Directors to promote or serve the powers and duties of the Pool to supplement the Risk Management Pool without such being a waiver of sovereign immunity under Florida Law. 3.1.8. Proposed: To provide Risk Management services including the defense of and settlement of claims and to have authority granted by Florida Statutes Section 768.28(14) (16). Article 4 - Participation and Term 4.2. Proposed: Notice of Withdrawal: So long as the Pool shall continue in existence, any current or new Member joining the Pool shall remain a Member for an initial two - year term except a new Member coming into the Pool after the first day of the fiscal policy year shall be obligated to be a member for not less than eighteen (18) months. A new member's rates will be guaranteed for their initial term. Any Member may withdraw from the Pool at the end of the fiscal policy year upon serving on the Pool by mail, fax or hand delivery at least one year's prior written notice. Such notice shall be addressed to the Executive Director of the Pool and shall be accompanied by a resolution of the governing body of the Member electing to withdraw from the Pool. 4.3. Proposed: Actual Withdrawal /Required Withdrawal: Any Member who has served the Executive Director with prior written notice of its intent to withdraw at least one (1) year prior to the beginning of the fiscal policy year for which the notice to withdraw is applicable, shall serve in writing to the Executive Director, by mail, fax or hand delivery on or before AuS February 15 prior to the beginning of such fiscal policy year, a verification as to whether the Member intends to actually withdraw from the Pool at the end of the current fiscal policy year. Failure to serve such verification on or before August -15 February 15 prior to the beginning of the fiscal policy year for which notice of intent to withdraw is applied, shall be deemed a revocation of the prior notice of intent to withdraw; thus, binding the Member to the Pool for the ensuing fiscal policy year. Provided, however, any Member who serves written notice of its intent to withdraw from the Pool more than once during any three (3) year period may be required, at the option of the Board of Directors, to withdraw from the Pool on the second such notice. An action to expel a Member in this manner shall be taken by the Board of Directors prior to Aup February 1 of the current fiscal policy year in the manner described in Article 17 hereafter. Article 9 - Finances and Risk Management Pool 9.2. Proposed: Budget: The Board of Directors or the Executive Committee shall approve a preliminary budget for the administration of the Pool by June 1 of each year. Copies of all preliminary and final budgets shall be promptly mailed to each Member of the Board of Directors. The Board of Directors shall, by A-1- February 1 of the year prior to the start of each fiscal policy year adopt a final budget and determine the amount of the Annual Payment to be made by each Member and the date upon which the payment is due. Failure of the Board of Directors or the Executive Committee to approve a preliminary or final budget within the times set forth within this Section shall not relieve the Members of the obligation to make any payments to the Pool so long as such budgets are finally adopted, and the Members are given at least thirty (30) days after the passage of the final budget in which to make Annual Payments to the Pool. 9.4. Proposed: Budget Amendments: Budgets may be amended at any time by majority vote of the Board, provided, however, such amendments may not require payments, when added to previous payments by a Member for such fiscal policy year, to exceed such Member's Annual Payment determined for such year. The forwarding of such payments within a time specified in notices to the Members giving them not less than forty-five (45) days to make such payments shall be of the essence of this contract. Article 10 - Excess Insurance 10.4. Proposed: Losses: The Risk Management Pool (Loss Fund), the Specific Excess Insurance and any optional Aggregate Excess Insurance purchased, shall provide payment for covered losses in any one fiscal policy year for members up to the limits approved by the Board of Directors. Should losses in any one fiscal policy 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. Article 11 - Obligations of Members 11.1.7.1. Proposed: To provide on or before May 1- November 1 of each fiscal policy year of the Pool, the Member's renewal application shall be completed by the member as required by the Underwriters. Article 14 - Settlements 14.1. Proposed: Settlement/Advance Notice: Whenever the Pool proposes to settle any pending claim or suit where the amount of that proposed settlement shall exceed Five Ten Thousand Dollars 4$5:080:80) ($10,000.00), the Member shall be given advance notice of that settlement. Such notice may be given by the establishment of a reserve amount in excess of give Ten Thousand Dollars ($57000:00) ($10,000.00), provided that the amount of the settlement does not exceed the amount reserved. The officers and employees of the Pool shall, however, endeavor to give specific oral or written notice to the Member's Representative or Alternate of the exact amount of any proposed settlement in excess of Five ve Ten Thousand Dollars , ($10,000.00) prior to the date at which the Pool proposes to bind itself to pay such settlement amount. The officers, employees or independent contractors of the Pool shall attempt to give the Members, as much as notice of the settlement negotiations as is possible under the circumstances of each case. Karen Fontenot, CPA April 23, 2007 Mr. Ross D. Furry, Executive Director Public Risk Management of Florida 3434 Hancock Bridge Parkway, Suite 203 Fort Myers, Florida 33903 Dear Ross: 1405 Black Willow Trail Altamonte Springs, FL 32714 (407) 461 -5747 karen459@bellsouth.net Pursuant to our telephone conversation last week, Public Risk Management is a local government self - insurance fund organized under Florida Statute Chapter 624.4622. Under Florida States Chapter 218.33, local government entities are required to begin their fiscal years on October 1 and end it on September 30. Therefore, it appears Public Risk Management of Florida is required to retain its fiscal year end of September 30. I would suggest you might consider getting a legal opinion from the attorney for Public Risk Management of Florida. If you have any questions or I can be of further assistance, please do not hesitate to contact me. Sincerely, Karen Fontenot, CPA Page 1 of 1 Ross D. Furry From: Don Roper [Donroper @roperandroper.com] Sent: Monday, April 23, 2007 10:04 AM To: Ross D. Furry Cc: Judy Heam; 'Denise Covert' Subject: PRM fiscal year issues Importance: High Fla. Stat. section 218.33, titled "local governmental entities ; establishment of uniform fiscal years and accounting practices and procedures ", does indeed mandate in subsection (1) that "each local governmental entity shall begin its fiscal year on October 1 of each year and end it on September 30 ". As a result, I agree with PRM's CPA that PRM's fiscal year must remain beginning October 1 and ending September 30 despite the other pending or proposed bylaw amendments. Thanks. Don 4/23/2007 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY 6. Broker's Report Greg Butterfield A. Property Proposal for 10/1/07 thru 4/1/08 7. Insurance Consultant's Report Glenn Tobey PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY 8. Election of Officers John Litton The term of office for Vice Chairperson, North and South Representatives will expire 9- 30 -07. Elections will be held for the 2 -year term, beginning 10 -1 -07. Incumbents Jeff Sutton, Jennifer Valdes, and Robbie Chartier have submitted their willingness to continue serving in their respective capacities. Nominations will also be taken from the floor. Executive Committee: John Litton, Chairperson - October 2006 -2008 *Jeff Sutton, Vice Chairperson — October 2005 -2007 Mike Sheppard, Treasurer — October 2006 -2008 *Jennifer Valdes, North Representative, October 2005 -2007 Robbie Chartier, South Representative, October 2005 -2007 `Elected at March 9th Board Meeting to fill unexpired term. Vice Chairperson 15-a( S,c /jo tv North Representative :1---11 of Lie % `des nl South Representative Tn�Q�'%� °R City of New Port Richey Ole Gateway 7oTropical j(urida' 5919 Main Street, New Port Richey, Florida 34652 Public Risk Management of Florida 3434 Hancock Bridge Parkway, Suite 203 Fort Myers, Florida 33903 To the Board of Directors At this time I am asking your support to select me to serve as Vice Chairperson on the Board of Directors of our pool, Public Risk Management of Florida. 1 have been the Director of Human Resources /Risk Management for the City of New Port Richey for the . past twenty -three years; and have served as your North Quadrant Executive Committee Representative Since June 2004. The City of New Port Richey has been an active member of the Public Risk Management pool since .1993 and has been consistently aggressive in managing our loss prevention and insurance risk programs. Our City's proactive approach to loss prevention and management practices has'enablcd the City to receive the Large l ntity "Best Overall" Safety Award seven (7) out of the last nine (9) years. Like all of you, I am paid to adequately insure my entity from loss and to manage our loss prevention programs. The continued.succcss of our pool is paramount to us in this endeavor. We have one of the best.Public.Entity Insurance pools in the country. If elected Vice Chairperson of the Board of Directors, .I pledge to all of our members my commitment to keep it.that way. ccrely, ff tton Director of Human Resources /Risk Management JENNIFER VALDES Human Resources Officer City of Gulfport PRM Board Members, Executive Committee, and Staff Please let this memo serve as notice of my interest in continuing to serve on the Executive Board as the Northern Representative. The City of Gulfport has been a long term supporter of the PRM program for many years, and I look forward to expanding that relationship by serving on the Executive Board. As I initially stated, I pride myself on establishing and maintaining effective, productive and meaningful relationships, and I feel that I have been successful in doing so with members of PRM, the Executive Board and Staff. I have served as the Human Resources Officer/Risk Manager for the City of Gulfport for the past five years, and have been a very active member ever since. Working in a medium sized, full service municipality for the last five years, has provided me unique opportunities for direct hands on experiences in a wide variety of areas under the insurance, risk management and human resources umbrellas. Thus, coupled with a Bachelors and soon to be Masters Degree in Human Resources, nine plus years of experience in Human Resources/Risk Management, and being a nationally certified professional in human resources, I feel, adequately qualify me to serve on this board. Thank you again for the opportunity, Jennifer Valdes, PHR Human Resources Officer Robbie L. Chartier Deputy County Administrator Okeechobee County 304 NW 2nd Street, Room 109 Okeechobee, FL 34974 RE: South Quadrant Executive Committee Membership To PRM Board Members: The South Quadrant board position term is due to expire, and having served on the executive board since March, 2005, I am requesting consideration for reappointment to this position. I have been actively involved with PRM since 1998. In my nearly nine years as Deputy County Administrator for Okeechobee County, it has been my responsibility to ensure the best coverage for my organization. I have upheld the mission of PRM and its goals to maintain Okeechobee County's membership. Okeechobee County has required staff to bid out insurance coverage from time to time, it has been my responsibility to analyze the bids and prepare a recommendation for the best coverage for our County. I have had the opportunity to explain the benefits to both our commissioners and our auditors being a part of an insurance pool as compared to single entity coverage. Having served on the committee to review the Brokerage Services request for qualifications, that best serves the interest of the pool members, I have gain considerable knowledge and experience of the processes involved with our insurance pool. I have a Master's in Public Administration and a BA in Accounting. My primary functions as Deputy County Administrator involve Budgeting, Financial Analysis, Risk Management, Human Resources and Grants. Prior to working in Okeechobee County, I was a Budget/Management Analysis for Charlotte County. With my education and work experience, I believe I will continue be an asset to the executive board and provide forethought and insight in the area of risk management and financial skills for the future of Public Risk Management. Respectfully Submitted, Rea& Z. elfw 2017 SW 67TH DRIVE • OKEECHOBEE, FL 34974 • PHONE 863 - 467 -5043 ROBBIE L. CHARTIER, MPA, CM OBJECTIVE Deputy County Administrator PROFESSIONAL PROFILE Practice of public administration with emphasis in budgeting, management analysis for the past 17 years, emphasis in risk management, human resources, and operational management of library, parks & recreation, and outreach services for past 9 years. Excellent analytical skills, including organizational structure and management process analysis. Strong interpersonal skills including oral and written communication skills with all level of management and the public. Staff supervision and delegation of duties. Success oriented with high energy and a positive attitude, problem solver, team player with ability to work independently, enthusiastic, creative, flexible and computer literate. EDUCATION ICMA UNIVERSITY ICMA Credentialed Manager, May 2005 — present FLORIDA GULF COAST UNIVERSITY, FORT MYERS, FL Master's in Public Administration, 2002 UNIVERSITY OF SOUTH FLORIDA, FORT MYERS, FL BA, Accounting 1996 PROFESSIONAL EXPERIENCE COUNTY OF OKEECHOBEE, FL Deputy Cauniy Administrator, June 1998 - present Administrator of Finance, including annual budget development of the $100 million total annual budget Responsible for overseeing policy development and formation for organization. Operational supervision for Recreation & Parks, Library, Outreach Services (includes Senior Services, Extension Office & Veteran's Services), Housing /Grants and Tourist Development. Management of Risk, Special Assessments, Purchasing, Contract Management, and Grants, and Supervisor of Employee Relations Specialist. Enterprise Zone Coordinator and Public Information Officer. Executive Board Member - Heartland Library Cooperative June 1998 - present Executive Board Member - Public Risk Management March 2005— present COUNTY OF CHARLOTTE, FL OFFICE OF BUDGET Budget 'Management Analyst, May 1996 June 1998 Annual Budget Development of the $335 million total annual budget, which has received the GFOA Distinguished Budget Award for 7 years, through teamwork. Exclusively responsible for $157 million through communication and training of departments in budgeting policies, benchmarking and performance measures; Coordinator for the management and development of the $175 million five year Capital Improvement Program through review of projects, staff supervision and presentation of program to CIP committee; Management analysis of activity based processes by reviewing, documenting, and recommending improvements for efficiency and effectiveness of county services, completed Health Insurance Program analysis and Library Book processing analysis; Budget Management of Public Works Department, MSBU /TUs, Risk Management and Human Resources through review and analysis of revenue, operating expenses and performance measures; Serve on Team for negotiating Developer Agreements and Orders in relation to level of service for road impacts; Projects: Developed a capital improvement policy and vehicle replacement program. Assistant Budget Analyst, January 1994 May 1996 Budget Management of Public Works Department, MSBU /TUs, Park & Recreation, Environmental Services, Judicial System and Facilities Mgmt., through review and analysis of revenue, operating expenses and performance measures; Annual Budget Development of the $395 million total annual budget, was exclusively responsible for $76 million through communication and training of departments in budgeting policies, benchmarking and performance measures; CIP analyst of the $248 million five year Capital Improvement Program through review of projects, Projects: Developed a concurrency management report. COUNTY OF CHARLO'1TE, FL, PUBLIC WORKS DEPARTMENT Accountant I, October 1990 — January 1994 Prepared and monitored the department's five -year Capital Improvement Program, ranking and prioritizing all department projects totaling $71 million; Prepared and monitored the departments budgets and work programs for the Municipal Benefit Service Units and Taxing Units (MSBU /TUs) totaling $42 million, through assisting in the development of labor and overhead rates; Assisted in the development of a reorganization of the department; Coordinated the development of the department's accounting information system; Served on Fleet Management Committee tasked with contracted versus in -house services; Prepared FEMA report for rainfall flood disaster in 1992, recognized by the Emergency Management Director for excellent record keeping and tenacity in seeing the job through; Prepared Financial Reports of MSBU /TUs for citizen advisory groups. NEWELL WINDOW FURNISHINGS, FREEPORT, IL Associate Cost Accountant, September 1988 — June 1990 Senior Payroll Clerk, May 1986 — August 1988 PROFESSIONAL MEMBERSHIPS Government Finance Officers Association Florida City and County Management Association ICMA Credentialed Manager May 2005 — present PUBLIC RISK MANAGEMENT OF FLORIDA Membership by Quadrant March, 2007 NORTHERN QUADRANT Executive Committee Representative Jennifer Valdes, City of Gulfport Town of Belleair City of Brooksville City of Crystal River City of Deltona City of Eustis City of Fort Meade City of Gulfport Hamilton County Bd. County Comm. Holmes County Bd. County Comm. City of Indian Rocks Beach Town of Kenneth City Town of Lady Lake City of Lake Mary City of Lake Wales Levy County Bd. County Comm. City of Longwood City of New Port Richey City of Oviedo City of Port Richey City of St. Pete Beach City of Safety Harbor City of South Pasadena City of Tavares City of Temple Terrace City of Winter Garden City of Zephyrhills Total: 26 SOUTHERN QUADRANT Executive Committee Representative Robbie Chartier, Okeechobee County City of Avon Park City of Belle Glade City of Clewiston DeSoto County Bd. County Comm. Glades County Bd. County Comm. Hardee County Bd. County Comm. Hendry County Bd. County Comm. Highlands County Bd. County Comm. City of LaBelle Town of Lake Placid Lee County Port Authority Town of Longboat Key City of Moore Haven City of North Port City of Okeechobee Okeechobee County Bd. County Comm. City of Pahokee City of Punta Gorda Sarasota- Manatee Airport Authority City of Sebring South Florida Water Conservancy Sun `n Lake of Sebring Impr. District City of Wauchula Total: 23 4/30/07 Avon Park, City of 110 E. Main Street Avon Park, FL 33825 -8466 PRM MEMBERSHIP Telephone # 863 -452 -4406 Fax # 863 - 452 -4413 County of: Highlands Employee # 54 Board Member: Kathy Bennett Human Resource Specialist 018 Board Member E -Mail: kbennett @avonpark.cc Alternate: Sarah Adelt Administrative Assistant 10/1/90 Alternate E -Mail: sadelt@avonpark.cc Belle Glade, City of 110 Dr. Martin Luther King, Jr. Blvd, West Belle Glade, FL 33430 Telephone # 561- 996 -0100 Fax # 561- 992 -2215 County of: Palm Beach Employee # 242 Board Member: Vivian Hunter Director HR 040 Board Member E -Mail: Vivian @belleglade - fl.com Alternate: Diana Hughes Interim Director of Finance 10/1/96 Alternate E -Mail: Diana @belIeglade -fl.com Belleair, Town of Telephone # 727 - 588 - 3769x214 901 Ponce De Leon Blvd. Fax # 727 -588 -3778 Belleair, FL 33756 -1096 County of: Pinellas Employee # 80 Board Member: Joseph P. Murphy Assistant to the Town Manager 023 Board Member E -Mail: jmurphy @townoibelleair.net Alternate: Susan Lee Human Resources Tech 10/1/92 Alternate E -Mail: slee@townofbelleair.net Brooksville, City of Telephone # 352 - 544 -5400 201 Howell Avenue Fax # 352 -544 -5433 Brooksville, FL 34601. County of: Hernando Employee # 137 Board Member: Steve Baumgartner Finance Director Board Member E -Mail: sbaumgartner@ci.brooksville.flus Alternate: Margaret Bosack Acting HR Director Alternate E -Mail: mbosack@ci.brooksville.fl.us Clewiston, City of Telephone # 863- 983 -1484 115 W. Ventura Avenue Fax # 863- 983 -7222 County of: Hendry Clewiston, FL 33440 -3709 Employee # 136 Board Member: Ted Byrd Finance Director Board Member E -Mail: Ted.Byrd @clewiston -fl.gov Alternate: Laurie Lindsey Ins Coordinator Alternate E -Mail: laurie.lindsey @clewiston -fLgov 055 10/1/04 016 10/1/89 Crystal River, City of 123 North West Highway 19 Crystal River, FL 34428 -3930 Telephone # 352 - 795 -6994 Fax # 352- 795 -6351 County of: Citrus Employee # 64 Board Member: Linda Stilson Asst Finance Director Board Member E -Mail: Istilson @crystalriverfl.org Alternate: Alternate E -Mail: Deltona, City of 2345 Providence Blvd. Deltona, FL 32725 Board Member: Faith Miller City Clerk Board Member E -Mail: fmiller @ci.deltona.fl.us Alternate: Clyde Perry Human Resources Director Telephone # 386 - 878 -8100 Fax # 386- 789 -7232 County of: Volusia Employee # 185 Alternate E -Mail: DeSoto County BOCC 201 E. Oak Street, Suite 202 cperry @ci.deltona.fl.us Arcadia, FL 34266 -4451 Board Member: Jerry Hill Board Member E -Mail: j.hill @co.desoto.fl.us Alternate: Paul Erickson Alternate E -Mail: Paul @co.desoto.fl.us Eustis, City of P. O. Drawer 68 10 North Grove Street Eustis, FL 32726 -0068 Telephone # 863 - 993 -4808 Fax # 863- 993 -4857 County of Desoto Employee # 204 Commissioner Director HR 025 10/1/92 050 10/1/99 003 10/1/99 Telephone # 352- 589 - 4040x1140 Fax # 352 -589 -4274 County of Lake Employee # 272 Board Member: Mike Sheppard Dep Dir Finance Board Member E -Mail: sheppardm @ci.eustis.fl.us Alternate: Ann Isaacs Director HR Alternate E -Mail: issacsa @ci.eustis.fl.us Fort Meade, City of P. O. Box 856 8 West Broadway Fort Meade, FL 33841 -0856 Telephone # 863- 285 - 1100x233 Fax # 863 - 285 -1124 County of: Polk Employee # 80 Board Member: Phyllis Kirk Deputy City Clerk Board Member E -Mail: pkirk @cityoffortmeade.com Alternate: Deena Ware Assistant to City Manager Alternate E -Mail: dware @cityoffortmeade.com Glades County BOCC P. O. Box 1018 500 Avenue J Moore Haven, FL 33471 -1018 Telephone # Fax # County of Employee # Board Member: Robert Giesler County Commissioner Board Member E -Mail: bobgiesler68 @yahoo.com Alternate: Mary Ann Dotson Human Resources Director Alternate E -Mail: mdotson @gladescofl.net 863 - 946 -6000 863 - 946 -2860 Glades 160 022 10/1/92 026 10/1/92 004 10/1/87 Gulfport, City of 2401 53rd Street, South Gulfport, FL 33707 Board Member: Jennifer Valdes Telephone # 727 - 893 -1000 Fax # 727 - 893 -1005 County of: Pinellas Employee # 170 Human Resources Officer 020 Board Member E -Mail: jvaldes @ci.gulfport.fl.us Alternate: Alternate E -Mail: @ci.gulfport.fl.us Hamilton County BOCC 313 Hatley Street Telephone # 386- 792 -6639 Fax # 386 - 792 -6808 County of: Hamilton 10/1/91 Jasper, FL 32052 Employee # 117 Board Member: Bob Poor County Coordinator 043 Board Member E -Mail: hamiltoncounty @alltel.net Alternate: Mike Adams Commissioner 10/1/97 Alternate E -Mail: Hardee County BOCC Telephone # 863- 773 -2161 205 Hanchey Fax # 863 - 773 -2154 County of: Hardee Wauchula, FL 33873 -9691 Employee # 220 Board Member: Jane Long Human Resource Director Board Member E -Mail: jane.long @hardeecounty.net Alternate: Danny Weeks Facilities Director Alternate E -Mail: danny.weeks @hardeecounty.net Hendry County BOCC Telephone # 863- 675 -5221 P. O. Box 2340 Fax # 863 - 675 -5317 25 Hicopochee Avenue Labelle, FL 33975 -2340 Board Member: Board Member E -Mail: @hendryfla.net Alternate: Janet B. Taylor Commissioner Alternate E -Mail: jtaylor @hendryfla.net Highlands County BOCC P. O. Box 1926 600 S. Commerce Avenue Sebring, FL 33871 -1926 County of: Hendry Employee # 403 Telephone # 863- 402 -6792 Fax # 863 -402 -6507 County of: Highlands Employee # 479 Board Member: Ricky Helms Assistant County Administrator Board Member E -Mail: rhelms @bcc.co.highlands.fl.us Alternate: John Minor HR -Risk Management Director Alternate E -Mail: jminor @bcc.co.highlands.fl.us Holmes County BOCC 201 North Oklahoma Street Bonifay, FL 32425 -2195 Telephone # 850 -547 -1119 Fax # 850 -547 -4471 County of: Holmes Employee # 197 Board Member: Raymon Thomas Commissioner Chairman Board Member E -Mail: hcbccins @yahoo.com (Hope Hall- contact) Alternate: Monty Merchant Commissioner Alternate E -Mail: hcbccins @yahoo.com 011 10/1/87 005 10/1/87 034 10/1/94 046 10/1/98 Indian Rocks Beach, City of 1507 Bay Palm Blvd. Indian Rocks Beach, FL 33785 -2899 Board Member: Martin Schless Board Member E -Mail: mschless @irbcity.com Alternate: Bert Valery Alternate E -Mail: Kenneth City, Town of 6000 54th Avenue North Kenneth City, FL 33709 -1806 Board Member: Nancy Beelman Board Member E -Mail: town57 @verizon.net Alternate: Muriel Whitman Alternate E -Mail: town57 @verizon.net LaBelle, City of P. O. Box 458 481 Hicopochee Avenue Labelle, FL 33975 -0458 Telephone # 727 -595 -2517 Fax # 727 -595 -4627 County of: Pinellas Employee # 31 Interim City Treasurer/Finance Director Commissioner Telephone # 727 - 544 -6655 Fax # 727 -547 -2038 County of: Pinellas Employee # 25 Dir Personnel Mayor Telephone # 863- 675 -2872 Fax # 863 -675 -7271 County of: Hendry Employee # 50 Board Member: Michael Boyle Supt Public Works Board Member E -Mail: mboyle@earthlink.net Alternate: Lisa Smith Asst to City Clerk Alternate E -Mail: lisasmith @citylabelle.com Lady Lake, Town of Telephone # 352 -751 -1555 409 Fennell Blvd. Fax # 352- 751 -0230 County of Lake Lady Lake, FL 32159 -3159 Employee # 83 Board Member: Board Member E -Mail: Alternate: Alternate E -Mail: Lake Mary, City of P. O. Box 958445 100 N. Country Club Road Lake Mary, FL 32795 -8445 Marcel Blais Risk Manager mblais @ladylake.org Bill Vance Town Manager bvance @ladylake.org Telephone # 407 - 585 -1400 Fax # 407 -585 -1464 County of: Seminole Employee # 151 Board Member: John Litton City Manager Board Member E -Mail: jlitton @lakemaryfl.com Alternate: Jacqueline Soya Dir Finance Alternate E -Mail: jsova @lakemaryfl.com Lake Placid, Town of 311 W. Interlake Blvd. Telephone # Fax # Lake Placid, FL 33852 Board Member: Arlene Tuck Town Clerk Board Member E -Mail: ajt- townoflp@htn.net Alternate: Phil Williams Chief of Police Alternate E -Mail: 1ppdchief @yahoo.com County of Employee # 863 -699 -3747 863- 699 -3749 Highlands 39 053 10/1/00 021 10/1/92 006 10/1/87 042 10/1/97 031 10/1/94 037 10/1/96 Lake Wales, City of P. O. Box 1320 Lake Wales, FL 33859 -1320 Board Member: Sandra Davis Telephone # 863- 678 -4193 Fax # 863 -678 -4180 County of: Polk Employee # 185 Manager HR Board Member E -Mail: sdavis @cityoflakewales.com Alternate: Alternate E -Mail: Lee County Port Authority 11000 Terminal Access Road, Suite 8671 Fort Myers, FL 33913 -8899 Board Member: Pamela Conner Board Member E -Mail: plconner @flylcpa.com Alternate: Robert W. Zega Alternate E -Mail: rwaega @flylcpa.com Levy County BOCC P. O. Box 310 355 South Court Street Bronson, FL 32621 -0310 Board Member: Fred Moody Board Member E -Mail: levybocc @circuit8.org Alternate: Jacqueline Martin Alternate E -Mail: levybocc @circuit8.org Longboat Key, Town of 501 Bay Isles Road Longboat Key, FL 34228 -3196 Telephone # 239 -590 -4520 Fax # 239 -590 -4548 County of: Lee Employee # 245 Director Gen Services Risk Manager Telephone # 352 - 486 -5217 Fax # 352 -486 -5167 County of Levy Employee # 218 County Coordinator Human Resource Manager Telephone # 941 - 316 -1999 Fax # 941- 316 -1774 County of: Manatee /Sarasota Employee # 148 Board Member: Jane O'Connor Town Clerk/Dir of Admin Services Board Member E -Mail: joconnor @longboatkey.org Alternate: Gerald Wilson Purchasing Manager Alternate E -Mail: gwilson @longboatkey.org Longwood, City of 175 West Warren Avenue Longwood, FL 32750 -4197 Telephone # Fax # County of: Employee # Board Member: Dawn Jackson Personnel Manager Board Member E -Mail: d jackson@longwoodfl.org Alternate: Carol Rogers Financial Services Director Alternate E -Mail: crogers@longwoodfl.org Moore Haven, City of P. O. Box 399 99 Riverside Drive Moore Haven, FL 33471 -0399 Board Member: Maxine Brantley City Clerk Board Member E -Mail: mbrantley @moorehaven.net Alternate: Melissa Arnold 407 - 260 -3481 407 - 260 -3419 Seminole 145 Telephone # 863- 946 -0711 Fax # 863 -946 -2988 County of: Glades Employee # 20 Deputy Clerk Alternate E -Mail: marnold @moorehaven.net 036 10/1/95 009 5/1/88 041 10/1/97 007 10/1/87 033 10/1/94 014 10/1/88 New Port Richey, City of 5919 Main Street New Port Richey, FL 34652 -2785 Telephone # 727 - 853 -1025 Fax # 727 - 853 -1023 County of: Pasco Employee # 216 Board Member: Jeff Sutton Human Resources Director Board Member E -Mail: suttonj @cityofnewportrichey.org Alternate: Alternate E -Mail: North Port, City of 4970 City Hall Blvd. Suite 252 HR -Risk North Port, FL 34286 -4100 Telephone # 941 - 429 -7130 Fax # 941 -429 -7135 County of: Sarasota Employee # 560 Board Member: Steve Gailbreath Risk Mgmt Coordinator Board Member E -Mail: sailbreath @ci.north- port.fLus Alternate: Sherry Borgsdorf General Services Director Alternate E -Mail: sborgsdorf @ ci.north- port.fl.us Okeechobee County BOCC Telephone # 863- 763 -9312 304 NW 2nd Street, Room 109 Fax # 863- 763 -0118 County of Okeechobee Okeechobee, FL 34972 -4187 Employee # 241 Board Member: Robbie Chartier Dep Co Admin Board Member E -Mail: rchartier @co.okeechobee.fl.us Alternate: George Long County Administrator Alternate E -Mail: Okeechobee, City of 55 S. E. Third Avenue glong @co.okeechobee.fl.us Okeechobee, FL 34974 -2932 Telephone # 863- 763 -3372 Fax # 863- 763 -1686 County of: Okeechobee Employee # 61 029 10/1/93 008 10/1/87 035 1/1/96 Board Member: Donna Reynolds Ins. Coordinator 047 Board Member E -Mail: dvreynolds @cityofokeechobee.com Alternate: James Kirk Mayor 2/2/99 Alternate E -Mail: jimkirk@adelphia.net Oviedo, City of 400 Alexandria Blvd. Oviedo, FL 32765 -6764 Telephone # 407 - 971 -5521 Fax # 407 - 971 -5802 County of: Seminole Employee # 249 Board Member: Connie Collins Human Resources Director Board Member E -Mail: ccollins @cityofoviedo.net Alternate: Dan Hood Risk/Benefit Coordinator Alternate E -Mail: dhood @cityofoviedo.net Pahokee, City of 171 N. Lake Avenue Pahokee, FL 33476 -1861 Telephone # 561- 924 - 5534 X24 Fax # 561- 924 -7301 County of: Palm Beach Employee # 94 Board Member: Derrek Moore Finance Director Board Member E -Mail: dmoore @cityofpahokee.com Alternate: Alberta Fields Human Resources Director Alternate E -Mail: albertafields @cityofpahokee.com 045 10/1/98 039 10/1/96 Port Richey, City of 6333 Ridge Road Port Richey, FL 34668 Board Member: Shirley Dresch Board Member E -Mail: cityclerk @copr.net Alternate: Pam Ziegler Alternate E -Mail: pam @copr.net Punta Gorda, City of Telephone # 326 W. Marion Avenue Fax # County of: Punta Gorda, FL 33950 -4492 Employee # Board Member: Phil Wickstrom Risk Manager Board Member E -Mail: pwickstrom @ci.punta- gorda.fl.us Alternate: Dave Drury Finance Director Alternate E -Mail: ddrury@ ci.punta- gorda.fl.us Safety Harbor, City of 750 Main Street Telephone # Fax # County of: Employee # City Clerk Finance Director Telephone # Fax # Safety Harbor, FL 34695 -3553 Board Member: Bill Cropsey Dir Personnel Board Member E -Mail: wcropsey @cityofsafetyharbor.com Alternate: Alan Zimmet City Attorney Alternate E -Mail: azimmet @cityofsafetybarbor.com Sarasota/Manatee Airport Authority 6000 Airport Circle Sarasota, FL 34243 -2105 Board Member: Martin Lange County of: Employee # Telephone # Fax # County of: Employee # 727 - 816 -1900 727 -816 -1916 Pasco 60 941 -575 -3302 941 -575 -3310 Charlotte 265 727 - 724 -1555 727 - 724 -1566 Pinellas 166 941 - 359 -5200 941- 359 -5054 Sarasota/Manatee 120 Vice President/Chief Financial Officer Board Member E -Mail: martin.lange@srq- airport.com Alternate: John Schussler Director of Properties Alternate E -Mail: john.schussler @srq- airport.com Sebring, City of 368 South Commerce Avenue Sebring, FL 33870 -6694 Telephone # 863- 471 -5100 Fax # 863 - 471 -5142 County of: Highlands Employee # 171 Board Member: Jeff Carlson Council Member Board Member E- Mail: (Diane Kauffman— dianekauffman @mysebring.com) Alternate: Mike Eastman Director Finance Alternate E -Mail: mikeeastment@mysebring.com South Florida Conservancy District P 0 Box 896 2832 N. Main Street Belle Glade, FL 33430 -0896 Telephone # 561- 996 -2940 Fax # 561- 996 -2960 County of Palm Beach Employee # 14 Board Member: D. Ron Graydon General Manager Board Member E -Mail: drgraydon @bellsouth.net Alternate: Stephanie Sparkenbaugh Office Manager Alternate E -Mail: steph @sflcd.com 027 10/1/93 08/8/88 019 10/1/91 038 10/1/96 012 10/1/88 030 11/1/93 South Pasadena, City of 7047 Sunset Drive South South Pasadena, FL 33707 -2895 Telephone # 727- 347 -4171 Fax # 727 - 345 -0518 County of: Pinellas Employee # 36 Board Member: James Graham Director Finance Board Member E -Mail: Alternate: Aternate E -Mail: St. Pete Beach, City of 155 Corey Avenue finance@ci.south- pasadena.fl.us St. Pete Beach, FL 33706 Board Member: Gary Behnke Telephone # Fax # County of: Employee # 727 - 367 -2735 727 - 363 -9249 Pinellas 143 Human Resources Administrator Board Member E -Mail: personnel @stpetebeach.org Alternate: Mike Bonfield City Manager Alternate E -Mail: citymanager@stpetebeach.org Sun n' Lake of Sebring Improvement Dist 5306 Sun 'n Lake Blvd. Sebring, FL 33872 Board Member: Board Member E -Mail: iartinez@snldistrict.org (Deana Martinez — contact) Alternate: Alternate E -Mail: Tavares, City of P. O. Box 1068 201 E. Main St. Tavares, FL 32778 -1068 Board Member: Crissy Bublitz Board Member E -Mail: cbublitz@tavares.org Alternate: Lori Tucker Alternate E -Mail: ltucker @tavares.org Temple Terrace, City of P. O. Box 16930 11250 N. 56th Street Temple Terrace, FL 33687 Board Member: Woody Hubbard Telephone # 863 - 382 -2196 Fax # 863 -382 -2988 County of: Highlands Employee # 63 Telephone # 352 -742 -6211 Fax # 352- 742 -6351 County of Lake Employee # 128 Human Resources Assistant Human Resources Director Telephone # 813 - 989 -7149 Fax # 813- 914 -7413 County of Hillsborough Employee # 350 Director Personnel Board Member E -Mail: whubbard @templeterrace.com Alternate: Kim D. Leinbach City Manager Alternate E -Mail: kleinbach@templeterrace.com Wauchula, City of P. O. Box 818 126 South 7th Avenue Wauchula, FL 33873 -0818 Telephone # 863- 773 -3535 Fax # 863- 773 -6376 County of: Hardee Employee # 81 Board Member: James Braddock Director of Finance Board Member E -Mail: jbraddock@cityofwauchula.com Alternate: Terri Svendsen Human Resources Specialist Alternate E -Mail: trri@cityof wauchula.com 024 10/1/92 048 10/1/99 051 10/1/00 015 10/1/89 052 10/1/00 013 10/1/88 Winter Garden, City of 251 W. Plant Street Telephone # 407 - 656 -4111 Fax # 407 - 656 -4952 Winter Garden, FL 34787 -3099 Board Member: Frank Gilbert HR Director Board Member E -Mail: fgilbert@cwgdn.com Alternate: Peggy Carpenter HR Specialist Alternate E -Mail: pcarpenter @cwgdn.com Zephyrhills, City of Telephone # 5335 Eighth Street Fax # County of: Zephyrhills, FL 33540-4312 Employee # County of: Employee # Board Member: Sharry Boldt Dir Admin Srvs Board Member E -Mail: sboldt @ci.zephyrhills.fl.us Alternate: Rick Moore Dir Public Works Alternate E -Mail: rmoore @ci.zephyrhills.fl.us Orange 210 813 - 780 -0015 813- 780 -0005 Pasco 159 028 10/1/93 017 10/1/90 BOARD MEETING ATTENDANCE Entity Bd Mtg 3/9/07 Bd Mtg 12/8/06 Bd Mtg 9/15/06 Bd Mtg 6/22/06 Bd Mtg 3/10/06 Bd Mtg 12/9/06 Bd Mtg 8/12/05 NORTH QUADRANT: Belleair, Town of Susan Lee Susan Lee Susan Lee Susan Lee Susan Lee Susan Lee Susan Lee Brooksville City of Steve Baumgartner Steve Baumgartner Steve Baumgartner Steve Baumgartner NONE Steve Baumgartner Steve Baumgartner Crystal River, City of Linda Stilson Linda Stilson NONE Linda Stilson NONE Linda Stilson NONE Denone, City of Faith Miller NONE Faith Miller NONE NONE NONE Faith Miller Eustis, City of Mike Sheppard Mike Sheppard Mike Sheppard Mike Sheppard NONE Mike Sheppard Mike Sheppard Fort Meade, City of NONE NONE Delores Avery Delores Avery Delores Avery Delores Avery Delores Avery Katrina Powell-non vote Gulfport, City of Jennifer Valdes Elaine Trehy Jennifer Valdes Jennifer Valdes Jennifer Valdes NONE Jennifer Valdes Elaine Trehy Jennifer Vales Hamilton County BOCC NONE NONE NONE NONE NONE NONE NONE Holmes County BOCC NONE NONE NONE NONE NONE NONE NONE Indian Rocks Beach, City of Martin Schless Martin Schless Martin Schless NONE NONE Martin Schless Martin Schlessnon voting representative Kenneth City, Town of Nancy Beelman Muriel Whitman Nancy Beelman Muriel Whitman Nancy Beelman Muriel Whitman Nancy Beelman Bill Smith Nancy Beelman Nancy Beelman Nancy Beelman Lady Lake, Town of Marcel Blais NONE Marcel Blais Bill Vance Bill Vance NONE NONE NONE Lake Mary, City of John Litton Jacqueline Soya John Litton John Litton John Litton NONE John Litton John Litton Lake Wales, City of NONE NONE Sandra Davis NONE NONE NONE Sandra Davis Levy County BOCC Fred Moody Fred Moody Fred Moody Jacqueline Martin Fred Moody Fred Moody Fred Moody Longwood, City of Carol Rogers Carol Rogers Carol Rogers Carol Rogers-non voting representative NONE Dawn Jackson Dawn Jackson New Port Richey, City of Jeff Sutton Jeff Sutton Jeff Sutton Jeff Sutton Jeff Sutton Jeff Sutton Jeff Sutton Oviedo, City of Connie Collins Dan Hood Connie Collins Dan Hood Connie Collins Dan Hood Connie Collins Dan Hood Dan Hood Dan Hood Port Richey, City of Shirley Dresch Pam Ziegler NONE NONE NONE NONE NONE Shirley Dresch St. Pete Beach, City of Gary Behnke Gary Behnke Gary Behnke Gary Behnke Gary Behnke NONE Kara Schrader -Smith Safety Harbor, City of NONE NONE NONE NONE NONE NONE Bill Cropsey South Pasadena, City of James Graham NONE James Graham NONE NONE NONE NONE Tavares, City of Crissy Bublitz Lori Tucker Crissy Bublitz Lom Tucker Crissy Bublitz Crissy Bublitz Crissy Bublitz Loh Tucker NONE Lorri Tucker Temple Terrace, City of NONE Woody Hubbard Woody Hubbard Woody Hubbard NONE Woody Hubbard Woody Hubbard Winter Garden, City of Frank Gilbert Frank Gilbert Frank Gilbert Peggy Carpenter-non voting representative Peggy Carpenter-non voting representative' NONE NONE Zephyrhills, City of Sherry Boldt Sherry Boldt Sherry Boldt Sharry Boldt Sharry Boldt Sharry Boldt Sharry Boldt SOUTH QUADRANT: Avon Park, City of Kathy Bennett Kathy Bennett Kathy Bennett Kathy Bennett Kathy Bennett Kathy Bennett Sarah Aden Rene Green Kathy Bennett Belle Glade, City of Vivian Hunter Derrek Moore non voting representative Vivina Hunter Kenneth Holley Vivian Hunter NONE Vivian Hunter Stacie Jo Rimes Clewiston, City of Ted Byrd Ted Byrd Ted Byrd Ted Byrd Ted Byrd Ted Byrd Ted Byrd DeSoto County BOCC Paul Erickson Paul Erickson Jerry Hill Paul Erickson Jerry Hill Paul Erickson Jerry Hill Paul Erickson Paul Erickson Jerry Hill Paul Erickson Glades County BOCC Mary Ann Dotson Robert Giesler Mary Ann Dotson Robert Giesler Mary Ann Dotson Mary Ann Dotson NONE NONE NONE Hardee County BOCC Jane Long Jane Long Jane Long Jane Long Jane Long Jane Long Jane Long Hendry County BOCC Mark Lapp non voting representative Lester Baird Lester Baird Lester Baird Lester Baird Janet Taylor Lester Baird Lester Baird Highlands County BOCC Ricky Helms John Minor Freddie Carino Freddie Carion Freddie Carina Tom Bowman Tom Bowman Fred Carino Sherri Bennett-non voting representative LaBelle, City of Michael Boyle Lisa Smith Lisa Smith Lisa Smith Michael Boyle Lisa Smith NONE Lisa Smith Lisa Smith Lake Placid, Town of NONE NONE NONE Arlene Tuck Arlene Tuck NONE Phil Williams Lee County Port Authority Bob Zega Pamela Conner Bob Zega Bob Zega NONE NONE NONE Longboat Key, Town of Jane O'Connor Bruce St. Denisnon vote Jane O'Connor NONE NONE Jane O'Connor Jane O'Connor Gerald Wlson Moore Haven, City of NONE NONE NONE Melissa Arnold NONE NONE NONE North Port, City of Steve Gailbreath Steve Gailbreath Steve Gailbreath Steve Gailbreath Steve Gailbreath Steve Gailbreath NONE Okeechobee, City of NONE Donna Reynolds Donna Reynolds NONE Donna Reynolds Donna Reynolds Donna Reynolds Okeechobee County BOCC Robbie Chartier Robbie Chartier Robbie Chartier Robbie Chartier Robbie Chartier Robbie Chartier Robbie Chartier Pahokee, City of NONE NONE Jeanie Perkins James Lee non voting rer. Jeanie Perkins Alberta Fields Jeanie Perkins James Bradlock -non voting representative Jeanie Perkins Punta Gorda, City of NONE Phil Wckstrom Phil Wckstrom Dave Drury Phil Wckstrom Dave Drury Phil Wckstrom Dave Drury Sarasota/Manatee Airport Auth. Martin Lange Martin Lange Martin Lange John Schussler NONE Martin Lange Martin Lange Sebring, City of Mike Eastman Mike Eastman Mike Eastman Mike Eastman Jeff Carlson Mike Eastman Diane Kauffman -non voting representative Jeff Carlson Mike Eastman South Florida Conservancy Ron Graydon NONE Ron Graydon NONE Ron Graydon NONE NONE Sun 'N Lake of Sebring NONE NONE NONE NONE NONE NONE George Hensley-non vote Wauchula, City of James Braddock Terri Svendsen NONE James Braddock Terri Svendsen James Braddock Terri Svendsen James Braddock Terri Svendsen Terri Svendsen James Braddock 'LP recvd 9/14/06 - yraiter Garden City C mmission appointed Me Carpenter as Alternate on 5/25/06, however, PRM did not receive notification until 9/14106. PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY 9. Executive Committee Report John Litton A. Executive Director Evaluation and Recommended Salary for FY 2007/08 The Executive Committee will review performance evaluations received from Board Members and Executive Committee and will make its recommendation to the full Board. Board Action: Approved Denied Deferred Other PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY 10. Safety Performance Awards Butch Darab PRM will recognize members who have made significant achievements in the following categories: Best Overall Safety Performance Most Improved Safety Performance Accident Free for Vehicles 11. Legal Update Donovan Roper, Esquire PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17, 2007 REGULAR AGENDA SUMMARY 12. Board Member Items A. Establish Board Meeting Dates for 2008 February 15, 2008 May 9, 2008 August 8, 2008 November 14, 2008 Locations to be determined. Public Comment: State full name and address. Discussion must be limited to a maximum of five (5) minutes per person. Adjournment BOARD MEETING DATES zoos JANUARY S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 FEBRUARY S M T W T F S 1 2 3 4 5 6 7 9 10 11 12 13 14 16 17 18 19 20 21 23 24 25 26 27 28 29 MARCH S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21'22 23/3o 24/31 25 26 27 28 29 APRIL 5 M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20. 21 22 23 24 25 26 27 28 29 30 MAY S M T W T F S 1 2 3 4 5 6 7 8® 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 JUNE S M T W T F S •1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 JULY S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 SEPTEMBER S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 OCTOBER S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NOVEMBER S M T W T F S 1 2 3 4 5 6 z 8 9 10 11 12 13 15 16 17 18 19 20 ���"''jjjj 22 23 /3o 24 25 26 27 28 29 AUGUST S M T W T F S 3 4 5 6 7 • 9 2 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24/31 25 26 27 28 29 30 DECEMBER S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Directions to: From I -75: From U.S. 41: From S. R. 84 Alligator Alley Hilton Marco Island Beach Resort 560 South Collier Boulevard Marco Island, FL 34145 239 - 394 -5000 Take Exit 101 (Old Exit 15) turn Right onto S.R. 951 S.R. 951 takes you right to the Island. S.R 951 becomes Collier Boulevard. The Hilton will be on your right (approximately 3.5 miles) South on 41 — turn Left onto S.R. 92. The road dead -ends into Collier Boulevard Turn Left at traffic light Hilton will be on your right (approximately 1 mile) Take Exit 101 (old exit 15) Turn Left onto S. R. 951 S.R 951 becomes Collier Boulevard. The Hilton will be on your right (approximately 3.5 miles) Page 1 of 2 Donna Reynolds From: To: Sent: Subject: "Hilton Hotels Confirmed" < hiltonhotels @hiltonresconfirm.com> < DVREYNOLDS @CITYOFOKEECHOBEE.COM> Monday, March 12, 2007 9:05 AM Hilton Hotels Reservation #3274554586 Reservation Confirmation for Donna Reynolds Confirmation Number: 3274554586 Hilton Marco Island Beach Resort 560 South Collier Boulevard Marco Island, FL United States 34145 Phone: 1-239-394-5000 Fax: 1-239-394-8410 Check -In date: Check -Out date: Check -In time: Check -Out time: 16 May 2007 18 May 2007 4:00 PM 11:00 AM Rate Information: Rate Type: ARTHUR J GALLAGHER Rate per night: 139.00 USD Total for Stay per Room: Rate 278.00 USD Taxes 27.80 USD Total 305.80 USD Total for Stay: 305.80 USD Includes estimated taxes and service charges. Tax & Service Charges •There is a 10.00% Per Room Per Night tax. Additional Charges •Valet parking: 12.00 /night Self parking: 8.00 /night Rules & Restrictions: •Your reservation is guaranteed for late arrival. •Should you need to cancel please contact us before 11:59 PM on 09 May 2007 local property time to avoid cancellation penalties. Room Information: 1 Rooms: Room Type: 2 Adults Non - Smoking Confirmed 2DBLS JR STE GRDN/TENNISVW Your room type preferences have been submitted with your reservation, and are subject to hotel availability. Map & Directions: Click for Interactive Map From Interstate 75 north or south, take exit 101, which is State Road 951. Follow 951 south for approximately 20 miles. Cross the bridge onto Marco Island. The hotel is on the right approximately 2 miles. If you need to MODIFY or CANCEL your reservation, click here. Any change to the arrival date, departure date or room type of this reservation is subject to the hotel's availability at the time the change is requested and may result in a possible rate change. If you have questions regarding your reservation, please contact Hilton Reservations and Customer Care at 1- 800- HILTONS (445 -8667) , visit us at www.hilton.com, or email us at confirmationhelp @hiltonres.com . For more information, please click here tQ see all the rules and restrictions applicable to this reservation. A listing of all Hilton Reservations and Customer Care phone numbers can be found at: http://www.hilton.com/en/hi/feedback/hrwfone.jhtml Thank you for choosing Hilton Hotels. We look forward to having you as our guest. Notice of Confidentiality: This message and any attachments may contain confidential information. If it has been sent to you in error, please reply to advise the sender of the error and then immediately delete this 3/12/2007 Page 1 of 1 Donna Reynolds From: <Lora_Bruce @AJG.com> To: <PRM_Conference_Invitee_List @ajg.com> Cc: <Candace_Koester @ ajg.com>; <Patti_Dirmyer @AJG.com >; <Michele_Montgomery@ AJG.com> Sent: Wednesday, March 07, 2007 4:53 PM Attach: PRM 2007 Ed Conference Invitation.doc Subject: PRM 15th Annual Educational Conference Invitation Attached is the PRM 15th Annual Educational Conference Invitation for your review. This year's conference will carry on the tradition of making education fun. By popular demand, we are bringing back Casino Night for the Opening Reception on Wednesday night. If there is someone that should have received a copy of the invitation, but did not, please pass it on to them. Please make sure to get your registration forms and payment in by April 10th. If you should have any questions, please do not hesitate to call us. We look forward to seeing you there! Thank you, Lora Bruce Client Service Representative Arthur J. Gallagher Risk Management Services Arthur J. Gallagher & Co. (Florida) 7380 W. Sand Lake Road, Suite 390 Orlando, FL 32819 407.370.2320 - Office Line 407.563.3540 - Direct Line 800.542.0191 - Toll Free 407.370.3057 - Fax Lora_Bruce@ajg.com Please note that coverage can not be bound by sending an e-mail or leaving a voice mail. Coverage is bound when confirmation is received from the carrier. 3/8/2007 Page 1 of 2 Donna Reynolds From: <Lora_Bruce @AJG.com> To: <PRM_Conference_Invitee_List @ajg.com> Cc: <Michele_Montgomery@AJG.com>; <Candace_Koester @ ajg.com>; <Patti_Dirmyer @AJG.com> Sent: Thursday, March 08, 2007 11:13 AM Attach: PRM 2007 Ed Conference Invitation.doc Subject: ROOM RATE CORRECTION - PRM 15th Annual Educational Conference Invitation Please note the following correction: The hotel room rate is NOT $116 per night. The correct rate is $139 (Single /Double). This correction has been made in the attached invitation. We apologize for any inconvenience. Thank you, Lora Bruce Client Service Representative Arthur J. Gallagher Risk Management Services Arthur J. Gallagher & Co. (Florida) 7380 W. Sand Lake Road, Suite 390 Orlando, FL 32819 407.370.2320 - Office Line 407.563.3540 - Direct Line 800.542.0191 - Toll Free 407.370.3057 - Fax Lora_Bruce@ajg.com '4 —57(° � �r Please note that coverage can not be bound by sending an e-mail or leaving a voice mail. Coverage is bound when confirmation is received from the carrier. Forwarded by Lora Bruce /BSD /AJG on 03/08/2007 11:09 AM Lora Bruce /BSD /AJG To PRM Conference Invitee List cc Candace Koester /BSD /AJG @AJG, Patti Dirmyer /BSD /AJG @AJG, Michele Montgomery/BSD /AJG @AJG Subject PRM 15th Annual Educational Conference Invitation 03/07/2007 04:53 PM Attached is the PRM 15th Annual Educational Conference Invitation for your review. This year's conference will carry on the tradition of making education fun. By popular demand, we are bringing back Casino Night for the Opening Reception on Wednesday night. If there is someone that should have received a copy of the invitation, but did not, please pass it on to them. Please make sure to get your registration forms and payment in by April 10th. If you should have any questions, please do not hesitate to call us. We look forward to seeing you there! Thank you, 3/8/2007 t PUBLIC RISK MANAGEMENT OF FLORIDA 3434 Hancock Bridge Pkwy, Suite 203 Fort Myers, FL 33903 Toll -Free 800 - 367 -1705 Main 239 - 656 -4666 Fax 239 - 656 -1066 May 3, 2007 TO: All PRM Board Members and Alternate Members FROM: Judy Hearn Assistant Executive Director, Secretary to the Board . • .. • .. • REFERENCE: Posting of Public Notice Board of Directors Meeting • • .. • • .. • • .. • .. • .. • .. • .. • • .. • .. • .. • • .. • .. • • .. • .. • • .. • .. • .. • • .. • • .. • .. • .. • .. • .. • • .. • .. • .. •• .. • .. • • .. • .. • • .. • .. • • .. • .. • . ....... ............................... Please post the enclosed meeting notice in a display area for such notices in your entity's offices. We ask that you ensure these are placed in a prominently displayed area to allow the public to attend should they wish to do so. Your cooperation is greatly appreciated. wit( JH:smb Encl: Public Notice of Meeting Board of Directors Meeting Agenda Directions NOTICE OF MEETING OF PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING May 17 2007 Public Risk Management of Florida, an intergovernmental risk management association, organized under Florida Statutes 163.01, hereby gives notice of its Board of Directors Meeting to be held on Thursday, the 17th of May, 2007. The meeting will be held at 2:00 pm, at the Hilton Marco Island Beach Resort located at 560 South Collier Boulevard, Marco Island, Florida. Directions to the meeting site are attached, as well as a copy of the agenda for said meeting. This is a public meeting and open for comments. If a person decides to appeal any decision considered at this meeting, he or she may need a record of the proceedings, and that, for such purpose, he or she may need to ensure that a verbatim record of the proceedings is made, which record includes the testimony in evidence upon which the appeal is based. Public Notice