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2007-12-14 BOD Meeting
PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING The Terrace Hotel Lakeland, FL December 14, 2007 AGENDA 10:00 am Call To Order John Litton, Chairperson Consent Agenda 1. Request Approval of September 14, 2007 Board Meeting Minutes 2. Request Approval of Treasurer's Report as of September 30, 2007 Any Board Member may request to have an item removed from the Consent Agenda and placed on the Regular Agenda for further discussion. Regular Agenda 3. Executive Director's Report Ross Furry, Executive Director A. Request Board Approval to Accept Fee Increase from Allen, Norton & Blue for Pre - Defense Employment Liability B. Bonnie Mims Attains IPMA -CP Credential C. 2008 On -Site Property Appraisals D. Update on A. J. Gallagher Class Action Lawsuit E. Request Board Approval to Accept New PRM Logo F. FEMA Mitigation Funding 404 & 406 Programs G. PRM Conference at Marco — Hotel Offset H. Change in Banking Relationship 4. Broker's Report Andy Cooper, World Risk Management A. Market Update B. Property Policies C. Loss Development Presentation D. Report on Return of PIP (Personal Injury Protection) in January E. Renewal Application Status 5. Insurance Advisor's Report Glenn Tobey, Tobey & Associates A. Loss Fund and Current Trends B. Property Renewal Trip to Markets C. Personal Lines: Home and Auto Insurance — Does It Make Sense? 6. Legal Update Donovan Roper, Esquire 7. Board Member Items Public Comment: State full name and address. Discussion must be limited to a maximum of five (5) minutes per person. Adjournment Luncheon immediately following PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 14, 2007 CONSENT AGENDA SUMMARY 1. Request Approval of September 14, 2007 Board Meeting Minutes Background: Meeting Minutes attached Request Approval of Treasurer's Report as of September 30, 2007 Background: Financial Reports Attached Board Action: ✓Approved Denied Deferred Other 1. BOARD MEETING MINUTES 9/14/07 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING Terrace Hotel, Lakeland, FL September 14, 2007 MINUTES Attendance: Kathy Bennett, City of Avon Park; J. P. Murphy, 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; Jerry Hill, DeSoto County BOCC; Mike Sheppard, City of Eustis; Phyllis Kirk, City of Fort Meade; Mary Ann Dotson, Glades County BOCC; Jennifer Valdes, City of Gulfport; Jane Long, Hardee County BOCC; Wayne O'Neal, Hendry County BOCC; John Minor, Highlands County BOCC; Nancy Beelman, Town of Kenneth City; Lisa Smith, City of LaBelle; Lori Beach, Town of Lady Lake; John Litton, City of Lake Mary; Arlene Tuck, Town of Lake Placid, Sandra Davis, City of Lake Wales; Pam Conner, 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, Brian Whitehall, City of Okeechobee; Robbie Chortler, Okeechobee County BOCC; Dan Hood, City of Oviedo, Shirley Dresch, City of Port Richey; Phil Wickstrom, City of Punta Gorda, Martin Lange, Sarasota/Manatee Airport Authority; Jeff Carlson, City of Sebring; Gary Behnke, City of St. Pete Beach; Lori Tucker, City of Tavares; Woody Hubbard, City of Temple Terrace; James Braddock, City of Wauchula; Frank Gilbert, City of Winter Garden; Rick Moore, City of Zephyrhills Dave Smith attended the meeting as a non - voting representative from the City of Pahokee. Absent: City of Deltona, City of Fort Meade, Hamilton County BOCC, Holmes County BOCC, City of Indian Rocks Beach, City of Moore Haven, City of Safety Harbor, South Florida Conservancy District, City of South Pasadena, Sun 'n Lake of Sebring Improvement District Chairperson John Litton called the meeting to order at 10:07 a.m. with a quorum present. Consent Agenda 1. Request Approval of May 17, 2007 Board Meeting Minutes. 2. Request Approval of Treasurer's Report as of June 30, 2007. 3. Ratify Election of Officers from May Board Meeting. Phil Wickstrom made a motion to approve the consent agenda. Carol Rogers seconded the motion and it was unanimously approved. Regular Agenda 4. Executive Director's Report A. Request Approval of Insurance Advisor's Contract — The Insurance Advisor has provided valuable assistance during the past year and was instrumental in working with World Risk Management on the property renewal. The Executive Director and Executive Committee recommended renewal of Mr. Tobey's contract. Wayne O'Neal made a motion to approve the Insurance Advisor's contract at $216,000 annually, or $18,000 per month, for the fiscal year 10/1/07 -08. Frank Gilbert seconded the motion, and it was approved by majority vote (1 opposed — City of Oviedo). (Representative from Clewiston arrived at 10:15 a.m.) B. Request Approval of General Counsel Contract — Due to a significant workload on the PRM account, the Executive Committee and Executive Director recommended increasing the monthly retainer fee from $750 to $1500 and retaining the legal services of Roper & Roper, P.A. through 9/30/08. Jane Long expressed her satisfaction and appreciation to Mr. Roper's firm for their pro- active service on Hardee County cases. She made a motion to approve the representation agreement of Roper & Roper, P.A. at a monthly retainer fee of $1500 through 9/30/08. Gary Behnke seconded the motion, and it was unanimously approved. C. Member Notices — Intent to Withdraw — The Executive Director reviewed status of members who had provided notices on intent to withdraw. 9/30/07: City of Brooksville — unknown at this time City of Deltona — withdrawing from Pool Hamilton County BOCC — unknown at this time City of Indian Rocks Beach — verbal commitment to remain City of Winter Garden — notices was rescinded in March 4/1/09: City of Avon Park City of Clewiston 2007 On -Site Property Appraisals (not on agenda) — Mr. Furry advised that appraisals have been completed and final reports are being distributed. He encouraged members to closely review the valuation report and contact CBIZ with any concerns. 2 5. Broker's Report — Ms. Schaare thanked the Board for their faith in selecting World Risk Management as PRM's broker. A. Property Renewal 10/1/07 - 4/1/08 — For this renewal, goals were set to provide a 6 -month policy from 10/1/07 to 4/1/08, reduce premium, increase windstorm coverage and reduce layering. Attempts were also made to eliminate coverage on a scheduled basis or reduce margin clause, and reduce windstorm deductible from 5% to 2 or 3 %. The broker was successful in negotiating blanket coverage with no margin clause; however the 5% windstorm deductible was sustained by the carriers. From options presented, the Executive Committee, Executive Director, Insurance Advisor and Broker recommended binding coverage for $175 million windstorm and $200 million all other perils. It was noted that although property values increased 13 %, the overall premium rate was a 28% decrease over last year. Mr. O'Neal made a motion to purchase $175 million windstorm coverage and $200 million for all other perils. Steve Gailbreath seconded the motion, and it was unanimously approved. B. April 2008 Renewal Submission — Mr. Cooper advised that renewal applications for all lines of coverage will be e- mailed on Friday, 9/21, and are due by 11/21. Some items are to be completed on Excel spreadsheet format. Members were asked to provide WRM with copies of last year's submissions. C. Florida Personal Injury Protection (PIP) — This item was moved for discussion under Item #7 Legal Update. 6. Insurance Advisor's Report — Mr. Tobey advised that internal staff restructuring has taken place at Munich Re America and Mike Davis in Atlanta now has the day - to-day responsibility for servicing the PRM account. After the first of the year, a meeting will be held with Munich Re, Safety National, Travelers, CRC and Excess Liability carriers to discuss the 4/1 renewal. Mr. Tobey is projecting rate reductions on Workers' Compensation, a flat renewal on the package as well as Boiler & Machinery, and a possible increase on excess liability due to PIP and no fault. The Insurance Advisor conferred with brokers, George Hensley and Milt Carpenter, who concurred on the possibility of offering auto and home owners insurance to employees through PRM. This would provide a greater cost savings to individuals, as well as being an additional employee benefit offered by Members. 3 7. Legal Update A. Arthur J. Gallagher Entities Class Action Suit — The case involves a $28 million class action settlement of a kickback scheme of Arthur J. Gallagher with no admission of liability or fault. PRM has the opportunity to opt in or out by November 16. At this time, financial settlement cannot be determined as it depends on how many participate in the suit although a significant return is unlikely. Based on Legal Counsel's recommendation, Arlene Tuck made a motion to opt in the Arthur J. Gallagher Entities Class Action Suit. Dan Hood seconded the motion, and it was approved by majority vote with show of hands [24 in favor with 10 opposed]. PRM staff will complete required forms, except for Members with ancillary policies. Occupational License Class Action Suit — Mr. Roper distributed a memo from the Florida League of Cities involving a class action lawsuit that has been filed to eliminate occupational license fees paid by attorneys. Belleair, Belle Glade, Crystal River, Eustis, Gulfport, Indian Rocks Beach, Kenneth City, Lady Lake, Lake Mary, Lake Wales, Longboat Key, New Port Richey, North Port, City of Okeechobee, Oviedo, Port Richey, Safety Harbor, Sebring, St. Pete Beach, Tavares, Wauchula, and Okeechobee County were named as defendants. Attorneys for these entities need to be made aware of this recent lawsuit. Florida Personal Injury Protection (PIP) - PIP or No Fault expires 10/1. A dramatic increase in personal injury lawsuits is expected as there is no limitation for suing on pain and suffering. PRM does not carry Medical Payments or Uninsured Motorist (UM) coverage. Mr. Roper encouraged individuals to review their personal auto policies for Medical Payments and UM coverage. B. Automobile Take Home Policy —The PRM Coverage Document covers the use of take home vehicles involving off -duty employees while they are outside the scope of their known employment. Mr. Roper advised that the sovereign immunity cap of $100,000 per person and $200,000 per incident will not apply. Members were urged to review their take home policies. Since several members do not have such a policy in place, Mr. Roper will prepare a "boilerplate" take home policy for members. 8. Board Member Items A. Lee County Port Authority — Request to Allow Members to Withdraw 3/31/08 — Mr. Litton advised that this item had been addressed at the May 17th Board Meeting and deferred to Legal Counsel's opinion on 4 re- opening discussion. Mr. Roper advised the issue was discussed at length and voted on in May, changing the By -Laws from a fiscal year to policy year. From a By -laws standpoint, the request to terminate from the Pool effective 3/31 /08 by submitting a notice of intent no later than 9/30/07 violates old By -Laws and current By -Laws. From a procedural standpoint with Roberts Rules of Order, it would have had to been brought back up at the May 17th meeting and would be inappropriate to revive the issue at this meeting. Mr. Litton provided Mr. Zega the opportunity to comment. Mr. Zega again stated he felt the time -frame was inappropriate, not giving members the opportunity to explore other options. (Representative from the City of Tavares entered the meeting at 11:30 a.m.) B. Location of Future Annual Conference — The 2008 PRM Conference will be held at Marco Island on June 4 -6. Mr. Litton received no reaction from Board members on moving the Conference location from Marco Island. Mara Roth from Genex advised Members about their Case Management web -site tool designed to view nurse case notes for employees who work daily with Workers' Compensation. Authorization forms for employees' access to the web -site will be forwarded to members. There was no public comment. Meeting adjourned at 11:43 a.m. Respectfully submitted, Judith A. Hearn Assistant Executive Director Secretary to PRM Board O:\Judy \BD MTGS\Board of Directors Meeting 9 -14-07 5 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING SEPTEMBER 14, 2007 @ 10:00 A.M. LAKELAND, FLORIDA 41 iggifititgiij .t B Avon Park, City of Belleair, Town of Belle Glade, City of Brooksville, City of Clewiston, City of Crystal River, City of Deltona, City of DeSoto County BOCC Eustis, City of Fort Meade, City of Glades County BOCC Gulfport, City of Hamilton County BOCC Hardee County BOCC Hendry County BOCC Highlands County BOCC Holmes County BOCC y Vivian Hunter Ted Byrd Linda Stilson Fai ller 1 it at Imo: Mike Sheppard KetiC/V Kirk Robert Giesler Sarah Adelt Susan Lee Margaret Bosack Laurie Lindsey Paul Erickson Ann Isaacs Wayne O'Neal Ricky Helms Raymon Thomas Monty Merchant Indian Rocks Beach, City of Kenneth City, Town of LaBelle, City of Lady Lake, Town of Lake Mary, City of Lake Placid, Town of Lake Wales, City of Lee County Port Authority Levy County BOCC Longboat Key, Town of Longwood, City of Moore Haven, City of New Port Richey, City of North Port, City of Okeechobee, City of Okeechobee County BOCC Oviedo, City of Pahokee, City of Martin Schless ancy tieeltnan Bert Valery Muriel H. Whitman Michael Boyle Lo ` Beach \•ilr/lic 1,7 1.1 1 Litton 0. . if lli lene Tu . I • . Fre avis a Co�%er oody O'Connor Dawn Jackson Maxine Brantley Lisa Smith Bill Vance Jacqueline Soya Phil Williams Jacqueline Martin Gerald Wilson Carol Rogers Melissa Arnold Steve Gailbreath Sharon Allison Pe' llzk, Robbie Chartier Connie Collins Derrek Moore George Long Dan Hood Port Richey, City of Punta Gorda, City of &z Sh ley ?resChh Pam Ziegler 4.2 Phil Wickstrom Safety Harbor, City of B.11 Cropsey Sarasota/Manatee Airport Authority lit/ /Li& Sebring, City of South Florida Conservancy South Pasadena, City of St. Pete Beach, City of Sun n' Lake of Sebring Tavares, City of Temple Terrace, City of Wauchula, City of Winter Garden, City of Zephyrhills, City of Martin Lange C .(son D. Ron Graydon Crissy Bublitz David Drury Alan Zimmet Joh�nnSchussler Y4l Mike Eastman Stephanie Sparkenbaugh Mike Bonfield ucker Holbrook D. Le' ach Terri Svendsen SIGN IN SHEET Name Pt 04.4.6 as GUESTS / ADDITIONAL ATTENDEE ♦ ♦ ♦ + Entity / Company SEPTEMBER 14, 2007 Signature SeNti F7i4ft 6ree (A) /2-47/ kcQ,L liztkorl V�l� Gi RAI/1w e,1A r {hoA Al 2. TREASURER'S REPORT AS OF 9/30/07 PUBLIC RISK MGMT OF FL BALANCE SHEET SEPTEMBER 30, 2007 CURRENT ASSETS PETTY CASH $ 75.00 OPERATING -SO TRUST 31,460,850.36 A/R MEMBERSHIPS (2,309,673.71) A/R TRADE 3,218.46 A/R - PRM GR HLTH 136,869.21 A/R CONSULTANT FEE - MEMBERS 3,714.92 A/R- REINSURANCE RECOVERIES (12,370,187.93) A/R OTHER 2,254.66 A/R -STATE W/C ASSESSMENT (159,084.64) 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 13,975,201.27 TOTAL CURRENT ASSETS 32,381,990.81 PROPERTY AND EQUIPMENT FURNITURE & FIXTURES 32,847.12 LESS: ACCUM. DEPRECIATION (28,937.41) OFFICE MACHINES & EQUIPMENT 72,508.70 LESS: ACCUM. DEPRECIATION (33,581.88) AUTOMOBILE 116,538.79 ACCUMULATED DEPRECIATION (28,240.17) TOTAL PROPERTY & EQUIPMENT 131,135.15 OTHER ASSETS PREPAID INSURANCE 9,559,504.83 PREPAID FLOOD INSURANCE 94.49 PREPAID EXPENSES 24,634.79 DEFER MEMBER CONTR- 1987 -89 216,361.62 DEFER MEMBER CONTR - 1989 -90 295,679.00 DEPOSITS 5,665.06 TOTAL OTHER ASSETS 10,101,939.79 TOTAL ASSETS $ 42,615,065.75 LIABILrr1ES ACCOUNTS PAYABLE $ (168,325.85) A/P - GALLAGHER/RISX -FACS (2,200,879.78) FEDERAL TAXES PAYABLE (3,985.71) A/P EMP LIFE INS (139.30) 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 9,232.79 CLAIMS PAYABLE - 1990 -91 13,227.68 CLAIMS PAYABLE - 1991 -92 4,145.34 CLAIMS PAYABLE - 1992 -93 (37,949.65) CLAIMS PAYABLE - 1993 -94 37,125.55 CLAIMS PAYABLE - 1994 -95 1,052.95 CLAIMS PAYABLE - 1996/97 30,381.26 CLAIMS PAYABLE - 1997/98 (189,185.64) CLAIMS PAYABLE - 1998/99 (66,171.41) CLAIMS PAYABLE - 1999/00 (338,863.82) CLAIMS PAYABLE - 2000/01 (393,808.45) CLAIMS PAYABLE - 2001/02 (892,489.54) CLAIMS PAYABLE - 2002/03 1,200,497.62 CLAIMS PAYABLE - 2003/04 (2,712,456.04) CLAIMS PAYABLE - 2004/05 2,832,834.71 CLAIMS PAYABLE - 2005/06 1,304,348.12 CLAIMS PAYABLE - 2006/07 12,004,281.96 NONCURRENT CLAIMS PAYABLE (10,529,837.00) SUSPENSE - CLEARING ACCOUNT 10,529,837.00 PUBLIC RISK MGMT OF FL BALANCE SHEET SEPTEMBER 30, 2007 TOTAL LIABILT11bS 15,501,470.97 CAPITAL FUND BALANCE REVENUE IN EXCESS OF EXPENSE 25,847,604.32 1,265,990.46 TOTAL CAPITAL 27,113,594.78 TOTAL LIABILITIES & CAPITAL $ 42,615,065.75 REVENUES MEMBERSHIP ASSESSMENTS INTEREST INCOME MISCELLANEOUS INCOME TOTAL REVENUES PUBLIC RISK MGMT OF FL INCOME STATEMENT FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2007 CURRENT MONTH YEAR TO DATE (61,297.66) $ 35,490,799.56 235,606.44 2,607,389.07 0.00 2,440.91 174,308.78 38,100,629.54 EXPENSES OFFICERS' SALARIES 9,603.88 124,787.44 OFFICE SALARIES 38,692.16 502,998.08 PAYROLL TAXES 3,233.25 47,912.18 EMPLOYEE RETIREMENT BENEFITS 1,164.96 66,634.99 HEALTH INSURANCE - OFFICER 1,409.09 16,909.08 I3EALTH INSURANCE- OFFICE 9,234.90 111,112.35 LIFE INSURANCE- OFFICER 77.50 930.00 LIFE INSURANCE - OFFICE 160.58 1,926.96 LTD INSURANCE 974.57 11,378.61 LEGAL FEES 2,592.00 22,047.66 LEGAL - PRE - DEFENSE 0.00 1,826.75 AUDIT FEES 0.00 27,200.00 ACTUARIAL STUDY 0.00 14,138.00 APPRAISAL FEE EXPENSE 0.00 2,750.00 AUTO EXPENSE 172.76 5,728.15 TRAVEL EXPENSE 3,649.04 56,570.83 ASSOCIATION MEMBERSHIPS 0.00 689.00 DUES & SUBSCRIPTIONS 0.00 1,847.00 EDUCATION/TRAINING /CONFER. 70.00 22,515.38 OFFICE LEASE 6,190.52 72,307.89 JANITORIAL / CLEANING 350.00 3,831.00 OFFICE /COMPUTER EQUIPMENT 2,555.67 33,607.87 TELEPHONE 3,479.84 20,926.80 COPY MACHINE LEASE 406.00 2,744.90 REPAIRS & MAINT. - EQUIPMENT 0.00 1,162.00 OFFICE SUPPLIES 787.74 14,577.09 NEWSLE'11'ER 0.00 2,497.50 POSTAGE 324.38 11,174.44 PRINTING 0.00 392.20 INSURANCE- FLOOD /GENERAL 0.00 1,000.00 LOSS PREV EQUIP & SUPPLIES 282.94 13,270.32 MARKETING & PROMOTION 267.36 5,430.05 MEETING EXPENSE 3,126.50 18,834.17 MISCELLANEOUS EXPENSE 465.74 3,047.88 TRAINING /SEMINAR PRESENTATION 0.00 76.43 GALLAGHER MGMT FEES 97,579.75 1,170,957.00 GALLAGHER EXCESS INSURANCE 1,591,074.92 19,092,899.04 CLAIMS EXPENSE 1,250,000.00 15,000,000.00 INSURANCE CONSULTANT 18,166.67 326,000.04 TOTAL EXPENSES 3,046,092.72 36,834,639.08 REVENUE IN EXCESS OF EXPENSE $ (2,871,783.94) $ 1,265,990.46 PUBLIC RISK MGMT OF FL EXPENSES TO BUDGET FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2007 REPRESENTING 100% OF THE FISCAL YEAR % of YTD MONTHLY MONTHLY Y -T -D Y -T -D TOTAL YEAR ACTUAL TO ACTUAL BUDGET ACTUAL BUDGET BUDGET YEAR BUDGET SALARY RELATED EXPENSES: OFFICERS' SALARIES 9,603.88 10,404.13 124,787.44 124,850.00 124,850.00 99.95 OFFICE SALARIES 38,692.16 41,916.38 502,998.08 502,997.00 502,997.00 100.00 PAYROLL TAXES 3,233.25 3,968.63 47,912.18 47,624.00 47,624.00 100.61 EMPLOYEE RETIREMENT BENEFITS 1,164.96 4,549.38 66,634.99 54,593.00 54,593.00 122.06 HEALTH INSURANCE - OFFICER 1,409.09 729.63 16,909.08 8,756.00 8,756.00 193.11 HEALTH INSURANCE- OFFICE 9,234.90 9,842.87 111,112.35 118,114.00 118,114.00 94.07 LIFE INSURANCE - OFFICER 77.50 74.88 930.00 899.00 899.00 103.45 LIFE INSURANCE- OFFICE 160.58 149.37 1,926.96 1,792.00 1,792.00 107.53 LTD INSURANCE 974.57 937.88 11,378.61 11,255.00 11,255.00 101.10 TOTAL SALARY RELATED EXPENSE 64,550.89 72,573.15 884,589.69 870,880.00 870,880.00 101.57 GENERAL EXPENSES: LEGAL FEES 2,592.00 500.00 22,047.66 6,000.00 6,000.00 367.46 LEGAL - PRE - DEFENSE 0.00 416.63 1,826.75 5,000.00 5,000.00 36.54 AUDIT FEES 0.00 2,416.63 27,200.00 29,000.00 29,000.00 93.79 ACTUARIAL STUDY 0.00 1,166.63 14,138.00 14,000.00 14,000.00 100.99 APPRAISAL FEE EXPENSE 0.00 458.37 2,750.00 5,500.00 5,500.00 50.00 AUTO EXPENSE 172.76 250.00 5,728.15 3,000.00 3,000.00 190.94 TRAVEL EXPENSE 3,649.04 2,500.00 56,570.83 30,000.00 30,000.00 188.57 ASSOCIATION MEMBERSHIPS 0.00 166.63 689.00 2,000.00 2,000.00 34.45 DUES & SUBSCRIPTIONS 0.00 266.63 1,847.00 3,200.00 3,200.00 57.72 EDUCATION/TRAINING /CONFER. 70.00 2,500.00 22,515.38 30,000.00 30,000.00 75.05 OFFICE LEASE 6,190.52 6,010.75 72,307.89 72,129.00 72,129.00 100.25 JANITORIAL / CLEANING 350.00 300.00 3,831.00 3,600.00 3,600.00 106.42 OFFICE /COMPUTER EQUIPMENT 2,555.67 1,500.00 33,607.87 18,000.00 18,000.00 186.71 TELEPHONE 3,479.84 2,166.63 20,926.80 26,000.00 26,000.00 80.49 COPY MACHINE LEASE 406.00 250.00 2,744.90 3,000.00 3,000.00 91.50 REPAIRS & MAINT. - EQUIPMENT 0.00 166.63 1,162.00 2,000.00 2,000.00 58.10 OFFICE SUPPLIES 787.74 1,166.63 14,577.09 14,000.00 14,000.00 104.12 NEWSLEI TER 0.00 333.37 2,497.50 4,000.00 4,000.00 62.44 POSTAGE 324.38 1,000.00 11,174.44 12,000.00 12,000.00 93.12 PRINTING 0.00 166.63 392.20 2,000.00 2,000.00 19.61 INSURANCE- FLOOD /GENERAL 0.00 250.00 1,000.00 3,000.00 3,000.00 33.33 LOSS PREV EQUIP & SUPPLIES 282.94 1,833.37 13,270.32 22,000.00 22,000.00 60.32 MARKETING & PROMOTION 267.36 375.00 5,430.05 4,500.00 4,500.00 120.67 MEETING EXPENSE 3,126.50 2,008.37 18,834.17 24,100.00 24,100.00 78.15 MISCELLANEOUS EXPENSE 465.74 208.37 3,047.88 2,500.00 2,500.00 121.92 TRAINING /SEMINAR PRESENTATION 0.00 500.00 76.43 6,000.00 6,000.00 1.27 WEB SITE MAINT. 0.00 566.63 0.00 6,800.00 6,800.00 0.00 TOTAL GENERAL EXPENSE 24,720.49 29,443.90 360,193.31 353,329.00 353,329.00 101.94 TOTAL OPERATING EXPENSE 89,271.38 102,017.05 1,244,783.00 1,224,209.00 1,224,209.00 101.68 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 14, 2007 REGULAR AGENDA SUMMARY Executive Director's Report Ross Furry A. Request Board Approval to Accept Fee Increase from Allen, Norton & Blue for Pre - Defense Employment Liability Allen, Norton & Blue will continue to bill PRM for litigation at the rate of $175.00 per hour through September 30, 2008, but is requesting an increase as follows: $200.00 /hour effective 10/1/2008 $215.00 /hour effective 10/1/2009 $230.00 /hour effective 10/1/2010 Additionally, effective 10/1/2008, when an EEOC or a Florida Human Rights Commission charge is filed against a PRM member, their fee for filing the initial position statement will be increased from $1,000.00 to $1,750.00. Attachment Boar Action: VApproved Denied Deferred Other CORAL GABLES / MIAMI OFFICE 121 MAJORCA AVENUE SUITE 300 CORAL GABLES, FL 33134-4508 305- 445 -7801 FACSIMILE 305- 442 -1578 REPLY TO: Tampa LAW OFFICES ALLEN, NORTON & BLUE PROFESSIONAL ASSOCIATION ORLANDO OFFICE 1477 WEST FAIRBANKS AVENUE SUITE 100 WINTER PARK. FL 32789 -7113 407 -571 -2152 FACSIMILE 407 -571 -1496 TALLAHASSEE OFFICE 906 NORTH MONROE STREET SUITE 100 TALLAHASSEE, FL 32303-6 IL 850 -561 -3503 Nay FACSIMILE 850 -561 -0332 September 12, 2007 Ross Fury, Public Risk Management 3434 Hancock Bridge Parkway, Suite 203 Fort Myers, Florida 33903 Dear Ross: TAMPA OFFICE 324 SOUTH HYDE PARK AVENUE HYDE PARK PLAZA. SUITE 225 # z 606 -4127 10 FACSIMILE 813 -253 -2006 ,1i : 1, 1 7 /[107 Attorney - Client Privileged It was good to talk with you the other day about the relationship between our firm and PRM which in our point of view has been nothing short of excellent since the relationship began. To recap our telephone conversation: 1. We will waive the annual retainer fee for PRM through October 1, 2008. 2. At your request, we will continue to bill PRM for litigation at the rate of $175.00 /hour through September 30, 2008, but, that rate will be increased as follows: Effective October 1, 2008 $200.00, October 1, 2009 $215.00 and October 1, 2010 $230.00. We understand these rates may need to be revisited if major legislature dramatically reduces your members' income and ability to absorb increased premiums. 3. We also have an understanding that if we actually have to go to trial the firm will have the option of utilizing two attorneys instead of one. It is our experience that in this day and time with the amount of paperwork resulting from discovery, it is virtually impossible to try discrimination or other alleged violation of law cases with one attorney. Furthermore, based on our experience, if the case is not dropped, dismissed on summary judgment or settled, it is usually because it is complicated and risky. 4. In light of our willingness to maintain the $175.00 /hour rate to PRM for another 14 months, we suggest a change effective October 1, 2008 from $1,000.00 for filing the initial position statement when there is an EECO or a Florida Human Rights Commission charge filed against a PRM member. We propose to change that to $1,750.00. Currently, we are preparing those position statements for various clients ranging from $2,000.00 for small employers up to $3,500.00 for larger employers. 88763_1 4 09.07.07 Affiliate of Worklaw® Network: The Nationwide Network of Management Labor and Employment Law Firms Ross Fury Public Risk Management September 12, 2007 Page 2 Our experience is that the initial position statement frequently takes well in excess of the amount of time and effort that would result in a $1,000.00 fee if it were billed hourly. However, we continue to be willing to file the initial position statement and perform the underlying off -site investigations necessary to file the statement for the flat fee. Of course, as we discussed, and as I cleared with you quite some time ago, when we have to do work over and beyond filing the initial position statement, such as filing supplemental information, participating in an on -site investigation conducted by the agency, or pre -suit mediation, that additional time is billed directly to the PRM member at the rate charged for firm work for that client. 5. The "hotline retainer" whereby PRM members can call us on any covered matter for no charge so long as we do not have to review documents or do research, will continue. When we do work prior to the assigning of a case by PRM or the filing of the initial EEOC or FCHR position statement, when the work does go beyond that covered by the no charge retainer, the client is billed at our normal hourly rate for that client. We no longer bill PRM for the first two hours of any covered matter. This has been the case since our last discussion over a year ago regarding the fee arrangement between PRM and the firm. 6. We also confirmed that each PRM member will be entitled to send one (1) person to our bi- annual seminar with no charge. However, if the client elects to send additional representatives to the seminar, they will be charged the small seminar charge applicable to other attendees. There are some exceptions for PRM members who are also our labor retainer clients and those clients are aware of the number of attendees they can send without additional charge. As you know Ross, we have always liked to work with you if there is any problem with regard to billing or a particular matter and we look forward to continuing to do so. In the meantime, the above is our suggestion with respect to the charges by this firm. If this is not acceptable, please give me a call so we can discuss it. WRA/cw 88763_1 4 09.07.07 Sincerely, a0-44/1—/Cid W. Reynolds Allen ALLEN, NORTON & BLUE, P.A. PROFESSIONAL ASSOCIATION signed in my absence to maid May. PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 14, 2007 REGULAR AGENDA SUMMARY Executive Director's Report (cont'd) B. Bonnie Mims Attains IPMA -CP Credential By meeting professional standards in public sector human resources set by the Public Human Resource Certification Council, Ms. Mims has attained the International Public Management Association Certified Professional (IPMA -CP) designation for Human Resources. See attachment. Congratulations, Bonnie. C. 2008 On -Site Property Appraisals Members scheduled for the on -site property appraisal in 2008 are: Holmes County BOCC City of Lady Lake City of Lake Wales Levy County BOCC City of Oviedo City of Pahokee Estimated costs will be provided for budgeting purposes. D. Update on A. J. Gallagher Class Action Lawsuit Staff submitted claim information on the above Anti -Trust Settlement on November 16. Total Premium paid August, 1994 thru December, 2005 is $71,026,504. Staff time: 49 hours. PUBLIC HUMAN RESOURCE certification council October 30, 2007 Ross Furry Executive Director PRM 3434 Hancock Bridge Parkway, Suite 203 Ft. Myers, FL 33903 Dear Ross Furry: It is my pleasure to inform you that Bonnie Mims, Loss Prevention Consultant; Public Risk Management of Florida has recently achieved the international recognition of attaining the IPMA -CP credential from the International Public Management Association for Human Resources (IPMA -HR). Bonnie is now authorized by the Public Human Resource Certification Council (PHRCC) to use the IPMA -CP, or IPMA Certified Professional designation. Individuals who have received IPMA -CP designation have met the professional standards set by the PHRCC to recognize excellence in public sector human resources, and have demonstrated to a panel of senior -level professionals their commitment to public sector HR by undertaking a rigorous review of their technical experience and understanding of the importance of behavioral competencies to the role of HR professionals. We are proud to have Bonnie join the ranks of IPMA - Certified Professionals. Sincerely, ,. , r . (LQQJz_L A Neil E. Reichenberg Executive Director 1617 Duke Street Alexandria, VA 22314 tel 703- 549 -7100 fax 703 -684 -0948 email ipma@ipma- hr.org PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 14, 2007 REGULAR AGENDA SUMMARY Executive Director's Report (cont'd) E. Request Board Approval to Accept New PRM Logo PRM logo was established 20 years ago. Following a suggestion to modernize our logo, several ideas were submitted by staff and an outside graphics firm specializing in logos. Attached is the recommended, proposed logo for Board approval. Board Action: proved Denied Deferred Other F. FEMA Mitigation Funding 404 & 406 Programs Included for members' information is an article from "Disaster Recover Today" that is published as a public service by Adjusters International, Inc. In the article, FEMA's mitigation funding through the 404 and 406 programs is outlined discussing their history, benefits and importance to communities in developing mitigation projects that might lessen the impact of disasters. No action is required for this item, however if the membership would like to have a presentation from a FEMA representative the administration would like direction. �a -'Vi, C Current Proposed Public Risk .Management of Florida Adjusters International Disaster Recovery Consulting — FEMA recovery issues for decision- makers and leaders Mitigation Funding in the FEMA Public Assistance Program By James J. Siciliano EDITOR'S NOTE In this 9th edition of Disaster Recovery Today, FEMA's mitigation funding through the 404 and 406 programs is explored; their history, benefits and importance to communities. For this informative piece we welcome first -time Disaster Recovery Today author James Siciliano, Deputy Director of Adjusters International's Disaster Recovery Consulting. Mr. Siciliano's years of experience navigating FEMA regulations and requirements have provided him with a strong background and knowledge of the issues facing grant applicants. As always, we welcome your comments and suggestions for topics you'd like to see covered in upcoming issues. We hope you will find this edition interesting and informative reading. — Sheila E. Salvatore, Editor FEMA's Public Assistance (PA) program has evolved into one that gives the president extraordinary powers —not only in mustering federal resources to aid communities that have been overwhelmed by disaster —but also in the allocation of hazard mitigation funding. Mitigation is the effort to reduce loss of life and property by lessening the impact of disasters. The PA program is designed as a reimbursement program to aid in making communities whole after a disaster. The program's basic structure calls for a partnership among the participating federal, 1 Federal Emergency Management Agency, Policy Digest, March 1999. 2 Federal Emergency Management Agency, 9526.1 Hazard Mitigation Funding, July 30, 2007. state and local governments whose responsibility is to work together to restore communities back to pre - disaster conditions both physically and fiscally. As a means of meeting this objective, mitigation funding is available through Public Assistance 404 and 406 mitigation funding programs. 1 As defined in the Robert T. Stafford Act, hazard mitigation funding is made available through the two programs if mitigation measures are deemed cost - effective. 2 The 404 program does not necessarily apply to damaged A.ADJUSTERS INTERNATIONAL D I S A S T E R R E C O V E R Y T O D A Y facilities resulting from the current declared disaster. It focuses, rather, on repetitive damages from past disasters and funds new or improved facilities. In contrast, the 406 program focuses on the current declared disaster and the actual elements or systems that were damaged as a direct result. In the 406 program, FEMA will do more than fund the repair or replacement of the damaged facility to its pre- disaster design, function and capacity. It will also authorize additional funding to modify the damaged facility in order to mitigate potential future damage. The 404 Program The Hazard Mitigation Grant Program (HMGP) was created in 1988 by the Robert T. Stafford Disaster Relief and Emergency Assistance Act. The HMGP assists states and local communities in implementing long -term hazard mitigation measures following a major disaster declaration. In 1993, the president signed the Hazard Mitigation and Relocation Assistance Act, which amended Section 404 to increase federal funding of HMGP projects to 75% of the project's total eligible costs. For disasters declared before June 10, 1993, the federal share for the program was 50 %. The 404 program is a mitigation program administered by the state grantee and funded by FEMA. Once the president declares a major disaster eligible and FEMA determines the cost of that disaster, additional funding will be made available to the state exclusively for HMGP 404 mitigation projects. Municipalities, counties, non- profits and the like may receive this funding at a 75% cost share from the federal government for approved, cost - effective mitigation projects. Some examples of 404 mitigation projects might include: building a retention pond to keep a downstream community from flooding during the spring snow melt; building a flood wall to help prevent the flooding of a hospital; or installing hurricane shutters on the local police department for protection during a hurricane. Any eligible 404 mitigation project must be included on the state's long -range mitigation plan, be deemed cost - effective, and be approved before funding is made available. It is the applicant's responsibility to submit proposed projects for the long -range mitigation plan. Such plans can be submitted prior to or post- disaster. Additionally, the state must gather all of the eligible plans from applicants and rank them by cost - effectiveness. The projects usually are funded in order from the most to the least cost - effective. The 404 program has limited funding, which oftentimes produces competition among applicants. Those not fortunate to receive funding must wait until additional funding is made available through a future declaration. The Post - Katrina Emergency Management Reform Act of 2006 calls for some significant changes to the 404 Mitigation Program. These include increasing the flexibility of the mitigation program to allow a broader scope of mitigation projects and implementation of a sliding scale funding schedule. The funding schedule is 15% for disaster amounts no greater than $2 billion; 10% for disaster amounts between $2 -$10 billion; and 7.5% for disaster amounts between $10- $35.333 billion. 2 DISASTERRECOVERYTODAY.COM 3 Federal Emergency Management Agency, "What is the Hazard Mitigation Grant Program - BACKGROUNDER," Release Number: 1299 -35b, October 1999. DISASTER RE- COVERY TODAY FEMA will fund the approved projects at 75 %, but the applicant must secure the 25% matching funds prior to receiving funding from FEMA. This can be very difficult for small communities or those that have limited budgets as the process can take years. It's also important to note that projects funded through the 404 mitigation program must be deemed cost - effective before they are considered for funding. Applicants considering a 404 mitigation project should develop a long -term mitigation strategy and contact the state hazard mitigation officer as soon as possible to assist in the process. The following is from the Federal Emergency Management Agency website (2006). The Process As outlined by FEMA's Hazard Mitigation Grant Program information page, the following answers some of the basic questions regarding the HMGP process. Who is eligible to apply? Hazard Mitigation Grant Program funding is only available to applicants that reside within a presidentially- declared disaster area. Eligible applicants include: • State and local governments • Indian tribes or other tribal organizations • Certain non - profit organizations Individual homeowners and businesses may not apply directly to the program; however a community may apply on their behalf. What types of projects can be funded by the HMGP? HMGP funds may be used to fund projects that will reduce or eliminate the losses from future disasters. Projects must provide a long -term solution to a problem. An example of this would be the elevation of a home to reduce the risk of flood damages as opposed to buying sandbags and pumps to fight the flood. In addition, a project's potential savings must be more than the cost of implementing the project. Funds may be used to protect either public or private property or to purchase property that has been subjected to, or is in danger of, repetitive damage. How are potential projects selected and identified? The state's administrative plan governs how projects are selected for funding. However, proposed projects must meet certain minimum criteria. These criteria are designed to ensure that the most cost - effective and appropriate projects are selected for funding. Both the law and the regulations require that the projects are part of an overall mitigation strategy for the disaster area. The state prioritizes and selects project applications developed and submitted by local jurisdictions. The state forwards applications consistent with state mitigation planning objectives to FEMA for eligibility review. Funding for this grant program is limited and states and local communities must make difficult decisions as to the most effective use of grant funds. What are the minimum project criteria? There are five issues that must be considered when determining the eligibility of a proposed project: • Does the project conform to the state's hazard mitigation plan? • Does the project provide a beneficial impact on the disaster area, i.e. the state? ADJUSTERSINTERNATIONAL.COM 3 D I S . S T E R R E C O V E R Y T O D A Y • Does the application meet the environmental requirements as explained on the FEMA Environmental Program site? • Does the project solve a problem independently? • Is the project cost - effective? How much money is available in the HMGP? The amount of funding available for the HMGP under a particular disaster declaration is limited. The HMGP program funding is allocated using a "sliding scale" formula based on the percentage of the funds spent on Public and Individual Assistance Programs for each presidentially- declared disaster. For states with a Standard State Mitigation Plan, the formula provides 15% of the first $2 billion of estimated aggregate amounts of disaster assistance; 10% for the next portion of amounts between $2 billion and $10 billion; and 7.5% for the next portion of amounts between $10 billion and $35.333 billion. States that meet higher mitigation planning criteria may qualify for a higher percentage under the Disaster Mitigation Act of 2000. FEMA can fund up to 75% of the eligible costs of each project. The state or grantee must provide a 25% share, which can be fashioned from a combination of cash and in- kind sources. Funding from other federal sources cannot be used for the 25% share with one exception. Funding provided to states under the Community Development Block Grant Program from the Deparintent of Housing and Urban Development can be used to meet the non - federal share requirement. How do I apply for the HMGP? Following a disaster declaration, the state will advertise that HMGP funding is available to fund mitigation projects. Those interested in applying to the HMGP should contact their local government to begin the application process. What is the deadline for applying for HMGP funds? Applications for mitigation projects are encouraged as soon as possible after the disaster occurs so that opportunities to pursue mitigation are not lost during reconstruction. The state will set a deadline for application submittal. How long will it take to get my project approved? It is important for applicants to understand the approval process. Once eligible projects are selected by the state, they are forwarded to the FEMA Regional Office where they are reviewed to ensure compliance with federal laws and regulations. One such law is the National Environmental Policy Act, passed by Congress in 1970, which requires FEMA to evaluate the potential environmental impacts of each proposed project. The time required for the environmental review depends on the complexity of the project. The 406 Program The 406 program allows mitigation measures to be funded for permanent projects involving eligible facilities that were damaged or destroyed during the event generating the disaster declaration. The key is that the damage must have been a direct result of the declared event. As opposed to the 404 Program, there 4 DISASTERRECOVERYTODAY.COM D I S A S T E R R E C O V E R Y T O D A Y is no limit on how much can be funded through this program. If the facility has been damaged by the event, then it is eligible for 406 mitigation funding related to the permanent repairs. While applicants are still responsible for their cost share of any project, the federal share will be at least 75 %. According to FEMA, "Mitigation measures must be determined to be cost - effective. Any one of the following means may be used to determine cost - effectiveness: measures may amount to up to 15% of the total eligible cost of the eligible repair work on a particular project. Certain mitigation measures will be determined to be cost - effective as long as the mitigation measure does not exceed the eligible cost of the eligible repair work on the project. For measures that exceed the above costs, the Grantee or Subgrantee (applicant) must demonstrate through an acceptable benefit /cost analysis that the measure is cost- effective.4" Potential Mitigation Measures The potential mitigation measures are determined to be cost - effective if they: • do not exceed 100% of project cost; • are appropriate to the disaster damage; • will prevent future similar damage; • are directly related to the eligible damaged elements; • do not increase risks or cause adverse effects to the property or elsewhere; • are technically feasible for the hazard and location, and • otherwise meet requirements stipulated in this policy, including environmental, historic, and mitigation planning considerations. 4 The charts on pages 6 and 7 include a list of the current pre - approved projects. If a project is on FEMA's list for pre- approved projects, FEMA will not only pay for the repair to bring the facility back to pre- disaster design, function and capacity, but it will offer an additional 100% to mitigate the project, minus the state's and applicant's cost share. For example, if it costs $2 million to replace a flooded building, FEMA will approve up to an additional $2 million in mitigation measures that are included on FEMA's list of pre- approved projects. Funding beyond the additional 100% can be offered if the project passes an approved FEMA benefit /cost analysis. Unlike the 404 mitigation program, there is no cap on the amount of funding for this program. (continued on last page) Flood wall protecting homes. ADJUSTERSINTERNATIONAL.COM 4 Federal Emergency Management Agency, 9526.1 Hazard Mitigation Funding, July 30, 2007. 5 DISASTER RECOVERY TODAY 406 PROGRAM — PRE - APPROVED PROJECTS Infrastructure Systems Drainage /crossings and bridges • Drainage structures • Culverts • Headwalls and wing walls • Low -water crossings • Gabion baskets, riprap, sheet piling, and geotextile fabric installation • Roadways • Restraining cables on bridges Sanitary and storm sewer systems • Access covers • Sewer lines • Pump stations Wastewater treatment plants • Elevation of equipment and controls that can be elevated easily • Dry or wet flood- proofing of buildings Potable water • Well systems • Raw water intakes • Water treatment plants Electric power distribution • Pad - mounted transformers • Using multiple poles to support transformers • Anchoring or otherwise protecting fuel tanks from movement in a disaster • Replacing damaged poles with higher -rated poles, of the same or different material such as replacing wood poles with precast concrete or steel • Adding guy wire or other additional support to power lines • Removing large diameter lines from poles • Providing looped distribution service or other redundancies in the electrical service to critical facilities Above - ground storage tanks • Strengthening or stiffening base connections. • Installation of self- initiating disconnects and shut -off valves Underground pipelines - Installation of shut -off valves so that damaged sections of pipeline can be isolated DISASTERRECOVERYT 0 D A Y. C 0 M i S f S -i I _ R R E C O V E R 406 PROGRAM — PRE - APPROVED PROJECTS Buildings - General General effects of flood damage • Buildings substantially damaged under NFIP regulations— Repair, dry flood - proofing, or elevation • Buildings not substantially damaged under NFIP —If technically feasible, dry flood - proofing Roofs • Low -slope roofs • Curbing and flashing • Damage to soffits, overhangs, roof openings • Roof - mounted equipment should be attached to a foundation that will resist expected wind forces • Hurricane clips Shutters - In areas subject to hurricane winds, shutters are appropriate in the following areas: • All windows on critical facilities such as hospitals • The lower floors of buildings with windows most likely to be struck by debris • Windows of buildings with very high value contents such as libraries and document centers that can be damaged by water • Windows of buildings subject to debris from nearby ballasted roofs, metal buildings, manufactured homes or other structures likely to fail and result in debris Anchoring • Anchoring of mechanical and electrical in critical facilities • Anchoring smaller ancillary buildings to prevent toppling Flexible piping - Installation of flexible piping at pipe /conduit connections to equipment to accommodate expected movement in an earthquake Bracing • Bracing of overhead pipes and electrical lines to meet seismic loads • Bracing interior walls and partitions that could collapse, preventing safe exit from the building • Bracing parapets, anchoring veneer or cladding, and bracing other non - structural elements that could collapse and cause injury or block safe exit of a building during an earthquake Replacement of glass - Replacement of glass with impact- resistant material General buildings • Buildings – Where spread footings have been undercut by scour • Siding – If siding has been damaged by wind • Venting – Where there has been water damage caused by water intrusion through venting Doors and windows • Where damage has resulted from wind and water intrusion around weather stripping on doors and /or windows • Where damage has been caused by wind - induced failure of doors Miscellaneous structures • Marine Piers – If marine piers' ramps that attach to decking have been damaged by storm -surge uplift and buoyancy • Signage – If sign panels and their supports have failed • Gutters and Downspouts – If damaged by either wind and /or water At the time of publication, this was the most current information offered at www.fema.gov. Readers should reference this site for continually updated information. ADJUSTERSINTERNATIONAL.COM 7 D I S A S T E R R E C O V E R Y T O D A Y The 406 mitigation program presents an opportunity for applicants to fortify their infrastructure against future catastrophic events. FEMA and most states provide hazard mitigation officers —at the request of the applicant —to aid in formulating 406 mitigation proposals. However, it is the applicant's responsibility to identify and document the mitigation opportunities during Public Assistance project formulation. Conclusion Mitigation is valuable to society in many ways. It creates stronger, safer and more resilient communities and infrastructure. It also has the potential to save lives and lessens the economic impact on a community following a disaster. According to the Multi - Hazard Mitigation Council, every dollar spent on mitigation saves society an average of four dollars. "Formulating mitigation projects is something we do for our clients and we have had a great deal Sheet piling and riprap protecting improved property. of success with it," said Ronald Cuccaro, president and CEO of Adjusters International. "Not only are the Public Assistance 404 and 406 mitigation programs highly effective tools in funding mitigation projects for PA applicants, they are an essential element in any applicant's all - hazards approach, preparedness plan and recovery process." Browse our complete Disaster Recovery Today library online at: www.disasterrecoverytoday.com James J. Siciliano, Deputy Director Adjusters International A.ADJUSTERS INTERNATIONAL CORPORATE OFFICE 126 Business Park Drive Utica, New York 13502 1- 800 - 382 -2468 Outside U.S. (315) 797 -3035 FAX: (315) 272 -2054 editor @disasterrecoverytoday.com PUBLISHER Ronald A. Cuccaro, SPPA EDITOR Sheila E. Salvatore WEB ADDRESSES www.adjustersinternational.com www.disasterrecoverytoday.com Copyright © 2007 Adjusters International, Inc. Adjusters International © and the Al logo are registered trademarks of Adjusters International, Inc. All rights reserved. GED \EIN TODAY DISASTER RECOVERY TODAY is published as a public service by Adjusters International, Inc. It is provided for general information and is not intended to replace professional insurance, legal and /or financial advice for specific cases. DRC07 -2 4008 PRINTED ON RECYCLED PAPER PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 14, 2007 REGULAR AGENDA SUMMARY Executive Director's Report (cont'd) G. PRM Conference at Marco — Hotel Offset For the past several years the membership has authorized the administration to provide funds from pool surplus to provide monies to offset the cost of members who attended the National PRIMA Conferences. Historically, the total cost has been $7,500 to $10,000 and has allowed 6 -8 members to attend this conference. This year the National PRIMA Conference overlaps with our PRM Conference of June 4 -6, 2008 and is to be held in Sacramento, California. As such, the Executive Committee will not attend and no other member has inquired about attending. Feedback from members indicates that many of our members' budgets were greatly reduced for this fiscal year in education, training, and travel, and that attendance at this year's conference might be impacted by these budget constraints. In order to assure the same level of attendance as past conferences and assist members offset the cost of attendance, the following is presented for consideration. Provide from surplus (equity) funds monies to pay for one (1) night hotel accommodation for each Member and Alternate Member representative who attends the PRM Educational Conference. Member and Alternate Member representatives total 94 at $129.00 per night room rate for a total allocation from surplus of $12,126.00, thereby reducing their hotel room cost by one -half to attend the conference. Last year 85 Members and Alternate Members attended the conference at a cost of $10,965. Board Action: t /Approved Denied Deferred Other 2008 PRM CONFERENCE ENTITY P &C BOARD MEMBER P &C ALTERNATE GHT BOARD MEMBER GHT ALTERNATE Addl # Total # Avon Park ... ............................... Belle Glade ... ............................... Belleair .... ............................... Brooksville .. ............................... Clewiston .. ............................... Crystal River DeSoto County ............................. Eustis . ............................... Ford Meade ... ............................... Glades County ......... ............................... Gulfport........................ ............................... Hamilton County. Hardee County. Hendry County... ....... ............................... Hendry County SheriffsDept Hendry Regional Medical Center Highlands County Holmes County. Indian Rocks Beach Inverness Kenneth City .............. ............................... LaBelle .......................... ............................... LadyLake ................... ............................... Lake May... Lake Placid ........................................... ............................... Lake Wales ........................................... ............................... Lee County Port Authority Levy County .............. ............................... Longboat Key ........... ............................... Longwood Moore Haven New Port Richey ..... ............................... North Port .......................................... ............................... Okeechobee County. City of Okeechobee Okeechobee Utility Authority Oviedo Pahokee Perry PortRichey_ ............. ............................... Punta Gorda Safety. Harbor ........... ............................... Sarasota/Manatee Airport Auth. Sebring ......................................... ............................... South Florida. Conservancy. South Pasadena ........................................... ............................... St. Pete Beach ........................................... ............................... Sun 'n Lake of Sebring Tavares Taylor County.... Temple Terrace Wauchula W .. ............................... Winter Garden Zephyrhills Kathy Bennett Vivian Hunter ............. ............................... J. P. Murphy.. Steve Baumgartner Ted Byrd ....................... Linda Stilson Jerry Hill ........................ Mike Sheppard Phyllis Kirk Robert Giesler Jennifer Valdes Jane Long Wayne O'Neal Ricky Helms Raymon Thomas Martin Schless Nancy Beelman Michael Boyle Lori Beach ....... ............................... John Litton ...... ............................... Arlene Tuck .............................. Sandra Davis ....... ............................... Pamela Conner Fred Moody Jane O'Connor Dawn Jackson Maxine Brantley Jeff Sutton Steve Gailbreath Robbie Chartier Sharon Allison Connie Collins .. ............................... Derrek Moore Shirley Dresch Phil Wckstrom Bill Cropsey . .............................. ................. Martin Lan .9e ........................... Jeff Carlson Ron Graydon James Graham .......................... ............................... Gary. Behnke ........................... Contact: Ileana Martinez Crissy Bublitz Woody Hubbard James Braddock Frank Gilbert Katrina Bouthot Sarah Adelt Susan Lee Margaret Bosack Laurie Lindsey. ...................... Paul Erickson Ann Isaacs Deena Ware Mary Ann Dotson Danny Weeks Janet Taylor John Minor Monty Merchant Bert Valery Muriel Whitman Lisa Smith Bill Vance ...... ............................... Jacqueline Soya Phil Williams Robert Zega Jacqueline Martin Gerald Wilson Carol Rogers Melissa Arnold Sherry Borgsdorf Brian Whitehall ...... ............................... Dan Hood Pam Ziegler Dave Drury Alan Zimmet .......................... ............................... John Schussler .......................... ............................... Mike Eastman Stephanie Sparkenbaugh Mike Bonfield Lori Tucker ....... ............................... Kim Leinbach Terri Svendsen ....... ............................... Peggy Carpenter Rick Moore 0 2 2 2 2 2 2 2 2 2 2 2 1 2 0 2 2 2 2 J. P. Murphy Linda Stilson Paul Erickson Jonnie Hale Robert Gi ...................... Danny. Johnson Jane Long Wayne O'Neal__ Susan Hicks Lisa Miller Fred Moody. Jane O'Connor Robbie Chartier Contact: Peggy, Aaron ................... ............................... ................... ............................... Robert Brown, Jr. Phil Wickstrom Martin Lange ......................... Ron Graydon Susan Lee Veronica Davis Jim Myers ................ Mary Ann Dotson ........ ............................... Mike Adams Janet Taylor Cheryl Hicks Joseph Denno Sherry. Fitzpatrick Donna Kilbury Mary Jo Wilson..... Jacqueline Martin Laura Johnson ....... ............................... ....... ............................... James Braddock ...... ............................... Katrina Bouthout LaWanda Pemberton ................. ............................... Terri Svendsen .......... ............................... Rick Moore 2 2 0 1 2 0 0 2 1 2 1 2 2 85 As 0111/14/07 20 105 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 14, 2007 REGULAR AGENDA SUMMARY Executive Director's Report (cont'd) H. Change in Banking Relationship For several years PRM has maintained its banking relationship with AmSouth Bank. Subsequently, AmSouth has been purchased and merged into Regions Bank. A representative from Regions Bank has advised PRM that they will not be able to continue to offer the same terms and conditions going forward. Specifically, they could not pay "anywhere close" to our current rate for deposits in our interest bearing demand deposit accounts. Currently, PRM is under contract to earn Fed Fund rate + 20 basis points. Additional services such as deposit and check services, wire transfers, etc., would also be on a per item cost basis instead of being waived fee. Eileen Guenther, Senior Vice President with BB &T, approached PRM and submitted a proposal that is equal /to slightly superior than our current services. Most advantageous is the interest rate on deposits of Fed Funds + 20 basis points which other banks in our area are unable to match. Historically, this interest rate and spread has been higher for PRM than the State Board — LGIP rate and thus we have maintained the majority of excess funds in these accounts. PRM currently does not have any money on deposit with the State Board. Over the past twelve months PRM's monthly deposit balances at Regions Bank have averaged $65.5 million and $13.5 million at the State Board. Based upon the Executive Summary and Pricing Information in the banking service proposal presented by BB &T, it is recommended that the membership accept the proposal and authorize the Executive Director and Treasurer to execute the required account documents. ,aI s` /0`i Board Action: ✓Approved Denied Deferred Other � BB&T Branch Banking & Trust Co. 360 Central Avenue - 17th Floor St. Petersburg, FL 33701 October 30, 2007 Mr. Ross D. Furry Executive Director Public Risk Management of Florida 3434 Hancock Bridge Parkway, suite 203 Fort Myers, Florida 33903 Dear Ross: BB &T is very interested in pursuing the banking business of Public Risk Management of Florida. It is our intention, by way of the enclosed proposal, to demonstrate our desire to begin a mutually beneficial relationship between BB &T and Public Risk Management of Florida. For over 135 years, BB &T has been a leader among financial institutions in the Southeast and is currently the 12th largest financial holding company in the United States. Executive management operates from our Florida headquarters located in St. Petersburg, along with key operations such as Wealth Management, Marketing, Commercial Banking and Mortgage Lending. BB &T is committed to Public Risk Management of Florida and provides the financial strength to support your banking requirements. BB &T offers Public Risk Management of Florida a public fund interest checking account(s) at a rate indexed to Fed Funds plus 20 basis points, currently 4.95 %, along with waived fees for all banking services. Additional benefits may be found under the Executive Summary in section 1. BB &T extends this pricing through December 31St, 2009. We ask Public Risk Management to agree keep on deposit a minimum of $30,000,000 in aggregate balances and also to have accounts opened in 2007. Should Public Risk Management of Florida choose to accept our offer, I personally insure your satisfaction beginning with the knowledgeable and motivated staff of professionals dedicated to your relationship. As your Relationship Manager, it is my goal to exceed your expectations initially and ongoing. On behalf of BB &T, I thank you for your consideration and look forward to your response. Sincerely, ileen S. Guenther, CCM Senior Vice President Public Funds, Not For Profit and Business Deposits EXECUTIVE SUMMARY BB &T is pleased to offer Public Risk Management of Florida a proposal for banking services. Listed below are highlights which, we hope, demonstrate our commitment and desire to obtain your relationship. We understand the conversion of banking services can be complex and costly to Public Risk Management of Florida. If awarded your banking business, it is our intention to carefully plan the conversion and implementation process. Through a series of on site meetings, BB &T will understand in detail, your exact requirements and expectations for processing. We will insure each area of the bank, across all product lines, is on schedule and informed. Once successfully implemented, we recommend a meeting take place at your offices at least quarterly. Communication is key to a satisfactory relationship and regularly scheduled meetings, along with the assignment of a dedicated service representative, will provide Public Risk Management of Florida a quality experience with BB &T. 12th largest financial holding company in the nation Over 1500 offices in 11 states and the District of Columbia 8th largest insurance company in the world Full service bank offering depository, treasury, trust, investment & card services Florida operations headquartered in St. Petersburg, Pinellas County Local management headed by Susan Maurer, City Executive, Fort Myers 58 convenient branches in the Gulf Coast region, over 100 locations in Florida Highly competitive interest rate on deposits of FED FUNDS +20, currently 4.95% 10% reserve requirement is waived Waived Fees for depository/treasury management services No implementation /programming fees Scanning Hardware for OnSite Deposit provided at no charge Initial credit of $500 for bank supplies such as checks, deposit tickets and endorsement stamps through Harland Corporation Purchasing Card Rebate offered at .5% on total annual purchases BB &T @ Work offering free interest checking, no minimum balance required Pricing and interest rate commitment through December, 2009 BB &T TODAY BB &T's largest subsidiary, Branch Banking and Trust Company, was founded in 1872 and is the oldest bank in North Carolina. Headquartered in Winston - Salem, North Carolina, BB &T offers a wide range of lending and depository services to businesses, government entities and individuals. These services include: Wealth Management Retail and Wholesale Insurance Treasury Management Trust Services Mortgage International Services Investment Services Factoring Payroll Processing Asset Management Leasing Purchasing Card • $127 billion total assets • 1,500 financial centers in 11 states and the District of Columbia • 12th largest financial holding company in the United States • 7th largest insurance agency in the United Sates, 8th in the world WHAT DIFFERENTIATES US • Community Banking Model • Relationship Focused • Single Point of Contact • Local Decision Making • Local and Dedicated Service Representative WHY CHOOSE BB &T • Financial Strength Commercial paper S &P A -1, Moody's P1, Fitch F1 • Depth of Product Line • Commitment to Exceptional Service • Solid Core Values, Vision and Mission RELIABLE - RESPONSIVE - EMPATHETIC - COMPETENT BB &T is listed on the New York Stock Exchange as BBT and on the internet at BBT.com BB &T SUBSIDIARIES and AFFILIATES Through strategic acquisitions and internal specialization, BB &T continually works to enhance product offerings, information processes and delivery systems in order to provide a superior level of expertise and client service. Among our subsidiaries and affiliates are: BB &T Asset Management, Inc. Provides tailored investment management solutions to meet the financial goals and objectives of affluent individuals, businesses and institutional clients in more than 20 states. BB &T Investment Services, Inc. Helps clients structure a diversified portfolio, tailored to specific financial goals and objectives. Scott & Stringfellow, Inc. A full- service securities firm that offers brokerage services, equity research, fixed - income products and investment banking services for clients ranging from individual investors to large institutions, corporations and municipalities. Scott & Stringfellow is the oldest member of the New York Stock Exchange in the Southeast. Stanley, Hunt, DuPree & Rhine, Inc. (SHDR) A single- source provider of consulting and administration for employee benefits plans and programs. BB &T Insurance Services, Inc. Offers individuals and companies one -stop shopping for all types of coverage. It is the seventh - largest independent insurance agency in the nation, and the eighth - largest in the world. BB &T Equipment Finance Corporation Offers a full range of commercial equipment leasing options for small businesses and large corporations. BB &T Commercial Finance Corporation Arranges asset -based working capital financing, supply -chain financing, accounts receivable management, and credit enhancement for commercial and corporate clients. Laureate Capital A full - service commercial mortgage banking company that arranges permanent commercial and multi - family real estate loans, services loan portfolios, and provides asset and portfolio management and real estate brokerage services. BB &T MARKET COVERAGE 1,472 BANKING OFFICES in Virginia/DC (410), North Carolina (341), Georgia (154), Maryland (128), Florida (104), South Carolina (103), Kentucky (91), West Virginia (78), Tennessee (59), Alabama (2), Indiana (2) BB &T has 58 branches in the Gulf Coast Region of Florida, with 7 in Lee and Collier Counties, for your banking convenience. �. ;�i* • *tee r r �S �:r lip • 10 BB &T PRICING SUMMARY COMMERCIAL SERVICES Monthly Maintenance Fee Deposit or Other Credit Deposited Item — BB &T Deposited Item — Other In State Deposited Item — Out Of State Check Paid or Other Debit Charge for Uncollected Non - Sufficient Funds per Item Wire Transfer - Outgoing Wire Transfer - Incoming Returned Deposited Item Redeposit Returned Deposited Item TREASURY MANAGEMENT SERVICES CASHMANAGER ONLINE (CMOL) FOR SMALL BUSINESS Monthly Maintenance per account Account Transfers — unlimited Stop Payments ( 1St 5 are free) over 5 per month Check Images (1St 5 are free) over 5 per month ACH Items Originated WAIVED $ 14.00 WAIVED $ 0.35 WAIVED $ 0.08 WAIVED $ 0.10 WAIVED $ 0.11 WAIVED $ 0.15 WAIVED 3.5% WAIVED $ 10.00 WAIVED $ 10.00 WAIVED $ 0.12 WAIVED $ 7.00 WAIVED $ 4.00 WAIVED $ 25.00 no charge WAIVED $ 10.00 WAIVED $ 2.00 WAIVED $ 1.00 ACH DEBIT BLOCK (optional new service) Monthly Maintenance per account WAIVED $15.00 ONSITE DEPOSIT (optional new service) Monthly Maintenance Per Item Deposited One Time Purchase of Remote Scanning Hardware WAIVED $ 40.00 WAIVED $ .12 WAIVED $1000.00 Commercial Service Charges & Treasury Management Service Charges are WAIVED through December 2009 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING DECEMBER 14, 2007 REGULAR AGENDA SUMMARY Broker's Report Andy Cooper, World Risk Management A. Market Update — A report on the market will be provided. B. Property Policies — The broker is hoping to distribute property policies on disc or be able to advise when discs will be mailed to each member. C. Loss Development Presentation — The broker will review losses and how they have developed. Attachment D. Report on Return of PIP (Personal Injury Protection) in January — Current information on PIP will be discussed. E. Renewal Application Status — The broker will discuss renewal status. No Board Action Necessary Insurance Advisor's Report Glenn Tobey, Tobey & Associates A. Loss Fund and Current Trends B. Property Renewal Trip to Markets C. Personal Lines: Home and Auto Insurance — Does It Make Sense? 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Legal Update Donovan Roper, Esquire Board Member Items Public Comment: Discussion must be limited to a maximum of five (5) minutes per person. Adjourn 13 u ) rs, ) 7). , / 22 , /, / U1z) (7,1, 47\ ,_... '11 ' f PRM Board of Directors Meeting December 14, 2007 Summary of Meeting Consent Agenda: Minutes from Board Meeting of September 14, 2007 were Approved. Treasurer's Report as of September 30, 2007 was Approved. Regular Agenda: a. Fee Increase from Allen, Norton & Blue for Pre - Defense Employment Liability — Was Approved, with the understanding that that fee increase for 2009 and 2010 will be reviewed at that time to verify capability to pay the hourly rates. b. N/A c. N/A d. N/A e. Request for approval to accept new PRM Logo — Was Denied, will continue to look at new designs. f. FEMA Mitigation Funding 404 & 406 Programs — g. The Executive Board did not approve — Was not brought to the floor for discussion or vote. PRM Conference at Marco — Hotel Offset — Was Approved, will pay for one (1) night hotel accommodation for each Member and Alternate Member representative who attends the PRM Educational Conference. h. Change in banking Relationship — Was Approved, to execute the required documents to change the PRM deposits from Regions Bank to BB& T under the proposal which has the interest rate on deposits at Fed Rate + 20 basis points. The proposal will be good for two years, 12/31/2009. On a side note, just as clarification, the PRM does not have any funds at the State Board. Broker's Report — No Action Required Insurance Advisor's Report — No Action Required a. Information — Attached is a Loss Fund Analysis provided by Tobey & Associates, Inc. b. Personal Lines — Home & Auto Insurance — Will continue working with agencies to create an optional PRM program. A Test Program will take approximately 12 —16 months, and would like to use 2 or 3 City's and County's. They will send an E -mail with an outline and breakdown for discussion. Legal Update — No Report Cc: India Riedel Brian Whitehall Loss Fund Policy Ratio Year TOBEY & ASSOCIATES, INC. LOSS FUND ANAYLSIS Loss Fund 97% 02/03 10,949,000 (min) (June '06) October 2007 9,857,000 11,260,000 Projected 71% 03/04 15,227,000 (June '06) 10,624,000 Actual 10,440,000 11 ,600,000 Projected 59% 04/05 13,982,000 (June '06) 10,900,000 Actual 7,743,000 9,743,000 Projected 63% 05/06 16,150,000 (June '06) (Oct '07) 8,282,000 Actual 4,156.000 10,658,000 Projected 16,500,000 Underwriters 15,000,000 Projected Analysis 8,684,000 Actual 10,167,000 Actual 22,500,000 (18 month) 4,203,000 Based on projected claim history of current loss reserves an additional $4,203,000 should be added to actual losses projected total. 12,887,000 3,263,000 Potential Overall Savings