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2008-03-08 BOD MeetingPUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING MARCH 14, 2008 CONSENT AGENDA SUMMARY 1. Request Approval of December 14, 2007 Board Meeting Minutes Background: Meeting Minutes attached Request Approval of Treasurer's Report as of December 31, 2007 Background: Financial Reports Attached BoarA Action: Approved Denied Deferred Other 1. BOARD MEETING MINUTES 12/14/07 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING Terrace Hotel, Lakeland, FL December 14, 2007 MINUTES Attendance: Kathy Bennett, City of Avon Park; Vivian Hunter, City of Belle Glade; Steve Baumgartner, City of Brooksville; Ted Byrd, City of Clewiston, 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; Jane Long, Hardee County BOCC; Wayne O'Neal, Hendry County BOCC; Ricky Helms, Highlands County BOCC; Martin Schless, City of Indian Rocks Beach; Nancy Beelman, Town of Kenneth City; Lori Beach, 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; Steve Gailbreath, City of North Port, Sharon Allison, City of Okeechobee; Robbie Chartier, 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; Mike Eastman, City of Sebring; Mike Bonfield, City of St. Pete Beach; Crissy Bublitz, City of Tavares; Woody Hubbard, City of Temple Terrace; Peggy Carpenter, City of Winter Garden; Katrina Bouthot, City of Zephyrhills Absent: Town of Belleair, City of Gulfport, Holmes County BOCC, City of LaBelle, Town of Lake Placid, City of Lake Wales, City of Moore Haven, City of New Port Richey, City of Pahokee, City of Safety Harbor, South Florida Conservancy District, City of South Pasadena, Sun `n Lake of Sebring Improvement District, City of Wauchula Chairperson John Litton called the meeting to order at 10:10 a.m. with a quorum present. Consent Agenda 1. Request Approval of September 14, 2007 Board Meeting Minutes 2. Request Approval of Treasurer's Report as of September 30, 2007 Carol Rogers made a motion to approve the consent agenda. Dan Hood seconded the motion and it was unanimously approved. Regular Agenda 3. Executive Director's Report A. Request Board Approval to Accept Fee Increase from Allen, Norton & Blue for Pre - Defense Employment Liability — The Executive Director advised that PRM began utilizing Allen, Norton & Blue in 1998 for labor law litigation and no rate increases have been assessed since inception. A proposal to increase litigation fees was submitted as follows: $200.00 /hour effective 10/1/08 $215.00 /hour effective 10/1/09 $230.00 /hour effective 10/1/1 Additionally, effective 10/1/08, when an EEOC or a Florida Human Rights Commission charge is filed against a PRM member, the fee for filing the initial position statement will be increased from $1,000.00 to $1,750.00. The "hotline" capability will remain for members to contact their attorneys for guidance at no cost as long as no research or written response is required. Allen, Norton & Blue will also continue to sponsor a bi- annual seminar, allowing PRM members attendance at no charge. The Executive Director and Executive Committee recommend acceptance of the proposal. Wayne O'Neal made a motion to approve the fee increase from Allen, Norton & Blue. Phil Wickstrom seconded the motion. The motion was unanimously approved. B. Bonnie Mims Attains IPMA -CP Credential — Recognition was given to Bonnie Mims who attained the International Public Management Association Certified Professional designation for Human Resources. C. 2008 On -Site Property Appraisals —The following members are scheduled for on -site property appraisals in late 2008 and will be provided estimated costs for budgeting purposes: Holmes County BOCC Town of Lady Lake City of Lake Wales Levy County BOCC City of Oviedo City of Pahokee D. Update on A. J. Gallagher Class Action Lawsuit — PRM met the deadline for filing on the anti -trust settlement. Total Premiums paid August, 1994 through December, 2005 were over $71 million. E. Request Board Approval to Accept New PRM Logo — Staff and outside graphics firms submitted ideas to modernize the PRM logo and website. Mr. Hood made a motion to approve the new logo. Mr. Wickstrom reluctantly seconded the motion. By show of hands, the motion was denied. F. FEMA Mitigation Funding 404 & 406 Programs — This information item advised members about FEMA and their public assistance programs. The Executive Director will have a FEMA representative provide a presentation if members indicate interest. No interest was given by the membership for a presentation. G. PRM Conference at Marco — Hotel Offset — Due to members' budget constraints, the Executive Director recommended using surplus funds to pay for one night's hotel accommodation for each Board Member and Alternate who attends the PRM Conference. Estimated cost for 94 representatives at $129.00 per night room rate is $12,126.00. Jane Long made a motion to approve the use of surplus funds. Mr. O'Neal seconded the motion and it was unanimously approved. H. Change in Banking Relationship — After AmSouth was purchased and merged with Regions Bank, a representative from Regions advised that services previously provided by AmSouth on interest bearing deposit accounts could not be continued. BB &T submitted a proposal exceeding what's currently offered by AmSouth /Regions Bank. BB &T, the 12th largest financial holding company in the nation, offers electronic deposit transactions and will provide PRM .5% cash rebate on purchasing card transactions. Mr. Furry recommended accepting the BB &T proposal. He also advised that PRM withdrew funds from SBA, leaving only $1,000 to maintain an account there. Legal Counsel confirmed that soliciting requests for quotations are not required in order to change banks. Steve Gailbreath made a motion to accept the BB &T proposal and authorize the Executive Director and Treasurer to execute the required account documents. Mr. O'Neal seconded the motion and it was unanimously approved. 4. Broker's Report A. Market Update — Mr. Cooper recapped wind coverage on the property renewal, indicating an increase to $175 million with an 18% rate reduction. The broker advised that reinsurer treaties will renew on January 1st and further reductions are anticipated. B. Property Policies — Mr. Cooper advised that all policies have been received and placed on disk for members. 3 C. Loss Development Presentation — The broker provided an analysis of losses as of June, 2006 and October, 2007, going back to 2001/02. D. Report on Return of PIP (Personal Injury Protection) — The State reinstated PIP effective January 1, 2008, however, PRM retained this coverage during the 3 -month gap. E. Renewal Application Status — Applications from 44 of 47 members have been returned to the broker. CBIZ has estimated a 5 -6% inflationary increase on property. 5. Insurance Advisor's Report A. Loss Fund and Current Trends — Mr. Tobey advised that the PRM program is comprised of three specific areas — Insurance Premiums, Administration Costs, and Loss Fund. The Loss Fund is money that pays claims within the Self Insured Retention per line of coverage. The Loss Fund represented 42-48% of the Pool's money last year. The Insurance Advisor has projected a savings of $3.2 million on funding of $15 million for losses during the 18 -month period. B. Property Renewal Trip to Markets — Mr. Tobey will travel to Atlanta mid - January to meet with CRC, Lexington, RSUI, and Westchester. C. Personal Lines: Home and Auto Insurance — Does It Make Sense? The Insurance Advisor contacted State Farm and Allstate with both companies indicating interest in offering homeowners and auto insurance to employees. A 16 -month pilot project with two counties and two cities was suggested. By show of hands, a majority of members were interested in having the Insurance Advisor pursue this option. 6. Legal Update — There was no legal information to report. 7. Board Member Items Mr. Sheppard commended the Executive Director for withdrawing the Pool's funds from SBA and promptly notifying members. There was no public comment. Meeting adjourned at 11:21 a.m. 4 Respectfully submitted, Judith A. Hearn Assistant Executive Director Secretary to PRM Board JAH:smb O:\Judy \BD MTGS \Board of Directors Meeting 9 -14 -07 5 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF D 1' CTORS MEETING DECEMBER 14, 2007 @ 10 :00 A.M. 1 / LAKELAND, FLORIDA Avon Park, City of Belleair, Town of Belle Glade, City of Brooksville, City of Clewiston, City of Crystal River, City of DeSoto County BOCC Eustis, City of Fort Meade, City of Glades County BOCC Gulfport, City of Hardee County BOCC Hendry County BOCC Highlands County BOCC Holmes County BOCC Indian Rocks Beach, City of Kenneth City, Town of Kathy Bennett / S Adelt J. P. Murphy `, Vivian, Hunter S&L-4 e Steve Baumgartn Ted d Phyllis Kirk Robert Giesler Susan Lee Patrice Monaco Margaret Bosack Laurie Lindsey Paul Erickson Ann Isaacs N cy Bdelman Danny Weeks Janet Taylor John Minor Monty Merchant Bert Valery Muriel H. Whitman 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 Port Richey, City of Punta Gorda, City of Safety Harbor, City of Michael Boyle Arlene Tuck Sandra Davis Dawn Jackson Maxine Brantley Jeff Sutton .41414 Steve Gailbreath Lisa Smith Bill Vance Jacqueline Soya Phil Williams Jacqueline Martin Melissa Arnold Sherry Borgsdorf Sharon Allison 14,1 1-41;i4 Robbie Chartier Connie Collins s �� /' Shirley Dresch Brian Whitehall Dan Hood 61-1,_ 2 Pam Ziegler c David Drury Bill Cropsey Alan Zimmet Sarasota/Manatee Airport Authority 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 Jeff Carlson D. Ron Graydon James Graham John Schgssler Guy /ice°`' Mike Eastman Stephanie Sparkenbaugh Gary Behnke Mike Bonfiel Crissy Bublitz Woody Ihubbard tk James Braddock Frank Gilbert K trina Bouthot Lori Tucker Holbrook Kim D. Leinbach Rick Moore SIGN IN SHEET GUESTS / ADDITIONAL ATTENDEE ♦ ♦ + ♦ DECEMBER 14, 2007 Name V-WIS tk)-QP) WAt 4441, Entity / Company thy.) Oaf Rki Q i t 1 \S v . CA.104 Air Signature 2. TREASURER'S REPORT AS OF 12/31/07 PUBLIC RISK MGMT OF FL BALANCE SHEET DECEMBER 31, 2007 CURRENT ASSETS PETTY CASH $ 75.00 OPERATING - BB & T 20,000,000.00 OPERATING - REGIONS 33,210,329.22 A/R MEMBERSHIPS 1,261,109.73 A/R TRADE 3,218.46 A/R - PRM GR HLTH 136,869.21 A/R. CONSULTANT FEE - MEMBERS 3,714.93 A/R- REINSURANCE RECOVERIES (13,289,726.78) A/R OTHER 2,254.66 A/R -STATE W/C ASSESSMENT (160,194.64) 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 1,909.50 TOTAL CURRENT ASSETS 42,808,312.50 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 5,407,923.29 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 TOTAL ASSETS LIABILITIES ACCOUNTS PAYABLE $ 304,796.86 A/P - GALLAGHER/RISX -FACS (3,398,620.32) FEDERAL TAXES PAYABLE (3,985.71) PEBSCO PAYABLE (646.08) A/P EMP LIFE INS (139.34) 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 8,104.08 CLAIMS PAYABLE - 1990 -91 10,025.38 CLAIMS PAYABLE - 1991 -92 (58,035.87) CLAIMS PAYABLE - 1992 -93 (39,104.64) CLAIMS PAYABLE - 1993 -94 37,125.55 CLAIMS PAYABLE - 1994 -95 1,052.95 CLAIMS PAYABLE - 1996/97 30,072.90 CLAIMS PAYABLE - 1997/98 (213,580.25) CLAIMS PAYABLE - 1998/99 (86,355.40) CLAIMS PAYABLE - 1999/00 (380,233.23) CLAIMS PAYABLE - 2000/01 (719,117.65) CLAIMS PAYABLE - 2001/02 (996,731.03) CLAIMS PAYABLE - 2002/03 983,916.40 CLAIMS PAYABLE - 2003/04 (3,330,409.39) CLAIMS PAYABLE - 2004/05 2,373,489.53 CLAIMS PAYABLE - 2005/06 (1,036,426.45) CLAIMS PAYABLE - 2006/08 13,863,594.98 NONCURRENT CLAIMS PAYABLE (10,529,837.00) 5,950,358.25 $ 48,889,805.90 PUBLIC RISK MGMT OF FL BALANCE SHEET DECEMBER 31, 2007 SUSPENSE - CLEARING ACCOUNT 10,529,837.00 TOTAL LIABILITIES 12,417,391.45 CAPITAL FUND BALANCE REVENUE IN EXCESS OF EXPENSE 27,113,594.78 9,358,819.67 TOTAL CAPITAL 36,472,414.45 TOTAL LIABILITIES & CAPITAL $ 48,889,805.90 REVENUES MEMBERSHIP ASSESSMENTS INTEREST INCOME MISCELLANEOUS INCOME TOTAL REVENUES PUBLIC RISK MGMT OF FL INCOME STATEMENT FOR THE THREE MONTHS ENDING DECEMBER 31, 2007 CURRENT MONTH YEAR TO DATE $ 4,496,904.67 $ 17,449,873.01 168,163.48 518,394.66 0.00 0.00 4,665,068.15 17,968,267.67 EXPENSES OFFICERS' SALARIES 10,372.20 33,709.65 OFFICE SALARIES 41,013.64 132,984.49 PAYROLL TAXES 3,425.16 11,072.03 EMPLOYEE RETIREMENT BENEFITS 5,404.87 13,546.50 HEALTH INSURANCE- OFFICER 1,421.16 4,263.48 HEALTH INSURANCE- OFFICE 9,288.12 27,833.97 LIFE INSURANCE- OFFICER 78.30 234.90 LIFE INSURANCE- OFFICE 148.20 444.60 LTD INSURANCE 974.57 2,923.71 APPRAISAL FEE EXPENSE 0.00 1,375.00 AUTO EXPENSE 581.23 3,501.37 AUTOMOBILES - REPLACEMENT 0.00 0.00 TRAVEL EXPENSE 5,081.01 12,760.26 ASSOCIATION MEMBERSHIPS 0.00 435.00 DUES & SUBSCRIPTIONS 260.00 795.00 EDUCATION/TRAINING /CONFER. 2,994.64 3,530.80 OFFICE LEASE 6,190.52 18,571.56 JANITORIAL / CLEANING 0.00 560.00 OFFICE /COMPUTER EQUIPMENT 937.50 9,932.17 APPRAISAL FEE EXPENSE 0.00 1,375.00 AUTO EXPENSE 581.23 3,501.37 AUTOMOBILES- REPLACEMENT 0.00 0.00 TRAVEL EXPENSE 5,081.01 12,760.26 ASSOCIATION MEMBERSHIPS 0.00 435.00 DUES & SUBSCRIPTIONS 260.00 795.00 EDUCATION/TRAINING /CONFER. 2,994.64 3,530.80 OFFICE LEASE 6,190.52 18,571.56 JANITORIAL / CLEANING 0.00 560.00 OFFICE /COMPUTER EQUIPMENT 937.50 9,932.17 TELEPHONE 1,344.98 4,138.66 WEB SITE MAINT. 0.00 0.00 INSURANCE CONSULTANT 18,166.67 54,500.01 GALLAGHER MGMT FEES 96,413.17 289,239.51 GALLAGHER EXCESS INSURANCE 1,454,635.83 4,363,907.49 TOTAL EXPENSES 1,674,776.67 5,041,721.32 REVENUE IN EXCESS OF EXPENSE $ 2,990,291.48 $ 12,926,546.35 PUBLIC RISK MGMT OF FL EXPENSES TO BUDGET FOR THE Three MONTHs ENDING December 31, 2007 MONTHLY MONTHLY Y-T -D Y -T -D TOTAL YEAR % of YTD ACTUAL BUDGET ACTUAL BUDGET BUDGET ACTUAL SALARY RELATED EXPENSES OFFICERS' SALARIES 10,372.20 11,236.50 33,709.65 33,709.50 134,838.00 25.00 OFFICE SALARIES 41,013.64 44,431.33 132,984.49 133,294.03 533,176.00 24.94 PAYROLL TAXES 3,425.16 4,206.67 11,072.03 12,619.97 50,480.00 21.93 EMPLOYEE RETIREMENT BENEFITS 5,404.87 5,744.83 13,546.50 17,234.53 68,938.00 19.65 HEALTH INSURANCE - OFFICER 1,421.16 839.08 4,263.48 2,517.28 10,069.00 42.34 HEALTH INSURANCE- OFFICE 9,288.12 11,319.25 27,833.97 33,957.75 135,831.00 20.49 LIFE INSURANCE- OFFICER 78.30 83.67 234.90 250.97 1,004.00 23.40 LIFE INSURANCE- OFFICE 148.20 165.50 444.60 496.50 1,986.00 22.39 LTD INSURANCE 974.57 958.33 2,923.71 2,875.03 11,500.00 25.42 TOTAL SALARY RELATED EXPENSES 72,126.22 78,985.16 227,013.33 236,955.56 947,822.00 23.95 GENERAL EXPENSES LEGAL FEES 1,617.05 1,250.00 3,441.05 3,750.00 15,000.00 22.94 LEGAL -PRE- DEFENSE 0.00 416.67 0.00 1,249.97 5,000.00 0.00 AUDIT FEES 8,200.00 2,416.63 8,200.00 7,249.97 29,000.00 28.28 ACTUARIAL STUDY 0.00 1,166.67 0.00 3,499.97 14,000.00 0.00 APPRAISAL FEE EXPENSE 0.00 481.25 1,375.00 1,443.75 5,775.00 23.81 AUTO EXPENSE 581.23 400.00 3,501.37 1,200.00 4,800.00 72.95 TRAVEL EXPENSE 5,081.01 2,500.00 12,760.26 7,500.00 30,000.00 42.53 ASSOCIATION MEMBERSHIPS 0.00 166.67 435.00 499.97 2,000.00 21.75 DUES & SUBSCRIPTIONS 260.00 266.67 795.00 799.97 3,200.00 24.84 EDUCATION /TRAINING /CONFER. 2,994.64 2,500.00 3,530.80 7,500.00 30,000.00 11.77 OFFICE LEASE 6,190.52 6,311.33 18,571.56 18,934.03 75,736.00 24.52 JANITORIAL / CLEANING 0.00 316.67 560.00 949.97 3,800.00 14.74 OFFICE /COMPUTER EQUIPMENT 937.50 1,500.00 9,932.17 4,500.00 18,000.00 55.18 TELEPHONE 1,344.98 2,166.67 4,138.66 6,499.97 26,000.00 15.92 COPY MACHINE LEASE 203.00 250.00 406.00 750.00 3,000.00 13.53 REPAIRS & MAINT. - EQUIPMENT 0.00 166.67 0.00 499.97 2,000.00 0.00 OFFICE SUPPLIES 839.60 1,166.67 2,899.69 3,499.97 14,000.00 20.71 NEWSLETTER 0.00 333.33 832.50 1,000.03 4,000.00 20.81 POSTAGE 1,134.62 1,083.33 1,903.96 3,250.03 13,000.00 14.65 PRINTING 0.00 166.67 0.00 499.97 2,000.00 0.00 INSURANCE - FLOOD /GENERAL 0.00 250.00 0.00 750.00 3,000.00 0.00 LOSS PREV EQUIP & SUPPLIES 1,563.80 1,833.33 2,665.42 5,500.03 22,000.00 12.12 MARKETING & PROMOTION 0.00 375.00 0.00 1,125.00 4,500.00 0.00 MEETING EXPENSE 2,596.20 2,008.33 3,576.20 6,025.03 24,100.00 14.84 MISCELLANEOUS EXPENSE 259.13 208.33 1,354.01 625.03 2,500.00 54.16 TRAINING /SEMINAR PRESENTATION 0.00 500.00 0.00 1,500.00 6,000.00 0.00 WEB S111, MAINT. 0.00 566.67 0.00 1,699.97 6,800.00 0.00 INSURANCE CONSULTANT 18,166.67 18,166.67 54,500.01 54,499.97 218,000.00 25.00 TOTAL GENERAL EXPENSES 51,969.95 48,934.23 135,378.66 146,802.57 587,211.00 23.05 TOTAL OPERATING EXPENSES 124,096.17 127,919.39 362,391.99 383,758.13 1,535,033.00 23.61 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING MARCH 14, 2008 REGULAR AGENDA SUMMARY 3. Executive Committee Report John Litton, Chairperson A. Discussion of Arthur J. Gallagher's Interference with PRM Business Relationships; and Termination of Gallagher Bassett Services TPA Contract; and Discussion for Recommendation to the PRM Group Health Trust for Termination of the Gallagher Benefits Services Inc. Contract Mr. Litton will report on the January 30th Executive Committee Meeting. r d L4.7 LC-4 CCU ' Abi- -tr u , t r. ., PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING MARCH 14, 2008 REGULAR AGENDA SUMMARY 4. Insurance Advisor's Report 5. Broker's Report Glenn Tobey, Tobey & Associates Andy Cooper, World Risk Management A. Insurance Renewal, Coverages and Limits WRM will present the renewal terms and conditions for the April 1, 2008 renewal. WRM has explored optional Named Windstorm limits for the property. They have also explored the Workers' Compensation retention and looked at different levels that would benefit the insurance program. In addition, WRM has marketed the reinsurance of the Coverage Document and the Excess Workers' Compensation. They will report on their marketing efforts. L PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING MARCH 14, 2008 REGULAR AGENDA SUMMARY 6. Executive Director's Report Ross Furry A. AGRIP Conference — PRM attendees to the AGRIP Conference in Phoenix, AZ, from March 15 -19 include John Litton, Jeff Sutton, Jennifer Valdes, Judy Hearn, and Ross Furry. B. CSX Railroad Charged with 199 Safety Violations - Attachment C. Educational Conference Update D. Request Board Approval of 2008 -09 Administrative Budget Attached: Proposed Administrative Budget for FY 2008/09 rd Action: Approved Denied Deferred Other E. Member Notices to Withdraw 2009 The following have submitted their notice of intent to withdraw effective 3/31/09: City of Avon Park City of Brooksville* City of Clewiston Lee County Port Authority City of Port Richey Sarasota /Manatee Airport Authority City of Temple Terrace *submitted notice more than once during 3 -year period 6.B. CSX RAILROAD CSX Railroad Charged with 199 Safety Violations in 23 States INSURANCE JO(JIINAL National News CSX Railroad Charged with 199 Safety Violations in 23 States January 7, 2008 CSX Transportation has paid nearly $350,000 for federal rail safety violations uncovered during a 23 -state inspection last year, according to the Federal Railroad Administration. FRA Administrator Joseph Boardman said the Northeast's largest railroad had made "significant strides" in short- term improvements after a systemwide FRA inspection in January 2007 that found 3,518 safety defects, including 199 serious violations. "But CSX cannot make this a one -time fix. The railroad must stay focused and not be distracted from making the necessary long -term investments in infrastructure, technology, and employees that will strengthen its safety culture and performance," Boardman said in a statement. The special FRA inspection of CSX operations was prompted by a series of accidents, including one on Dec. 14, 2006, when a CSX worker was struck and killed by a train at the DeWitt rail yard. Last March, a CSX freight train derailed near Oneida and several propane tanker cars exploded in a fireball that was visible from miles away. No one was hurt, but thousands of people were temporarily evacuated from their homes. The Oneida case was the fifth serious upstate New York accident involving CSX rail cars in a matter of four months. At the time, federal rail safety officials said the company was not doing enough to address safety problems. The government decided to pursue civil penalties in 166 of the 199 serious cases, including two in New York, said Steve KuIm, a FRA spokesman. The $349,265 in penalties settled 141 of the violations. The other 25 cases remain open, he said. Kulm said the fines were not in response to any one specific accident, but addressed the series of accidents CSX experienced. U.S. Sen. Charles Schumer, who has called for Congress to hold hearings on CSX and its safety problems, said the company was allowed off the hook with a small penalty. "With nearly 200 violations of federal safety and hazardous material regulations, a mere $350,000 in fines for CSX Corp. is a slap in the face to the communities who suffered from these dangerous derailments," Schumer said. CSX had no comment about the fines, a spokesman said. In a statement, the company said it was committed to "continuing its strong safety improvements" through prudent long -term investments in infrastructure and technology. Jacksonville, Fla. -based CSX operates a 22,000 -mile rail network, covering 23 states, the District of Columbia, and two Canadian provinces. Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Find this article at: http:// www.. insurancejournal .coin/news/national/2008/01/07/86133 .htm?print=1 1/8/2008 6.D. 2008/09 ADMINISTRATIVE BUDGET 6.D. Request Board Approval of 2008 -09 Administrative Budget PRM has been transitioning the program from a October 1st to an April 1st date since the 10/1/06 renewal. The first phase consisted of an 18 -month term for the coverage document, reinsurance, Workers' Compensation, Loss Fund, and TPA services. The second phase consisted of renewing the Property coverage for a 6 -month term from 10/1/07 to 4/1/08. The final phase consists of adjusting the PRM Administrative Budget to match the April 1st renewal. The current year renewal budget is from 10/1/07 to 9/30/08 and was approved by the Board in June, 2007. The proposed budget in this agenda retains the same amounts approved from 4/1/08 to 9/30/08 in the current budget. Proposed salary increases for staff in the proposed 10/1/08 to 4/1/09 budget includes an 8% increase for the Executive Director and 6% overall for staff. The only significant increase in Operating Expense is the $3,000 increase in Auditor's Fees which has been absorbed by reduction of other items. Overall, Operating Expense has no increase and Personnel Expense is budgeted at an overall 4% increase. Based on budget approval, staff increases would be provided 10/1/08. Executive Director evaluation and increase will be approved at the June meeting by the Board. Public Risk Management Of Florida Property / Casualty Final Administrative Budget FY 04/01/08 -03/31 109 2006/2007 2006/2007 2007/2008 2/15/2008 2008/2009 % Change STAFFING Budget Actual Budget Actual Proposed Budget Officer Salary 124,850 124,787 134,838 50,663 140,232 4% Office Salary 502,997 502,998 533,176 212,735 549,171 3% Payroll Taxes 47,624 47,912 50,480 18,219 51,993 3% Florida Retirement 54,593 66,635 68,938 7,242 71,169 3% Health Ins. - Officer 8,756 16,909 10,069 7,106 10,673 6% Health Ins. - Office 118,114 111,112 135,831 46,453 143,981 6% Life Ins. - Officer 899 930 1,004 392 1,004 0% Life Ins. - Office 1,792 1,927 1,986 741 1,987 0% Long Term Disability 11,255 11,379 11,500 4,222 12,063 5% Total Personnel Budget 870,880 884,590 947,822 347,771 982,273 4% (1) OPERATING EXPENSE Legal Fees 6,000 22,048 15,000 10,103 15,000 0% Pre- defense Legal 5,000 1,827 5,000 0 5,000 0% Audit Fees 29,000 27,200 29,000 23,200 31,000 7% Actuarial Study 14,000 14,138 14,000 0 15,000 7% Appraisal Expense 5,500 2,750 5,775 1,375 5,775 0% Auto Expense 3,000 5,728 4,800 3,612 4,800 0% Travel Expense 30,000 56,571 30,000 17,651 30,000 0% Association memberships 2,000 689 2,000 525 2,000 0% Dues /Subscriptions 3,200 1,847 3,200 1,042 3,200 0% Education /Training /Confer. 30,000 22,515 30,000 4,156 30,000 0% Office Lease 72,129 72,308 75,736 30,953 75,736 0% Janitorial / Cleaning 3,600 3,831 3,800 1,211 3,800 0% Office/Computer Equipment 18,000 33,608 18,000 10,605 18,000 0% Telephone 26,000 20,927 26,000 6,438 26,000 0% Copy Machine Lease 3,000 2,745 3,000 812 3,000 0% Repairs /Maint.- Equipment 2,000 1,162 2,000 0 2,000 0% Office Expense 14,000 14,577 14,000 4,859 14,000 0% Newsletter 4,000 2,498 4,000 1,665 4,000 0% Postage 12,000 11,174 13,000 2,502 13,000 0% Printing 1 2,000 392 2,000 90 2,000 0% Insurance -Flood /General 3,000 1,000 3,000 0 3,000 0% Loss Prevention Expense 22,000 13,270 22,000 6,262 22,000 0% Marketing & promotion 4,500 5,430 4,500 1,218 4,500 0% Meeting Expense 24,100 18,834 24,100 3,576 24,100 0% Miscellaneous Expense 2,500 3,048 2,500 1,622 2,500 0% Training /Seminar Presentation 6,000 76 6,000 0 4,000 -33% Web Site Maintenance 6,800 6,800 0 4,800 -29% Hurricane Expense 0 0 0 0 0% Non - Budget -Board Approval 0 0 0 0 0% Total Operating Expense 353,329 360,193 369,211 133,476 368,211 0% Total Admin. Budget 1,224,209 1,244,783 1,317,033 481,247 1,350,484 Computer Replacement Reserve 7,000 7,000 15,000 7,500 15,000 Auto Replacement Reserve 24.000 24.000 30.000 15.000 30.000 Admin Budget with Reserves 1,255,209 1,275,783 1,362,033 503,747 1,395,484 Group Heaath Admin. Transfer - 143,480 - 71,742 - 143,480 Admin Budget with Gr. Hith. Credit 1,255,209 1,275,783 1,218,553 432,005 1,252,004 Insurance Consultant 218,000 90,833 218,000 Admin Budget with Ins. Consultant 1,255,209 1,275,783 1,436,553 522,838 1,470,004 3% 3% 3% 2% (1) All personnel budget increases are effective 10/01/08 and represent 6 months of PRM's annual costs for FY 10/01/08 to 09/30/09. 2/22/2008 4./ 2008/09 Salary Budget EXECUTIVE DIRECTOR Salary Payroll Taxes Pension / ICMA Health Insurance Life Insurance Totals ASST. EXECUTIVE DIRECTOR Salary Payroll Taxes Pension / FL Retirement Health Insurance Life Insurance Totals ACCOUNTANT Salary Payroll Taxes Pension / FL Retirement Health Insurance Life Insurance Totals CLAIMS & ADMIN. ASSISTANT Salary Payroll Taxes Pension / FL Retirement Health Insurance Life Insurance Totals SR. LOSS PREV. CONSULTANT Salary Payroll Taxes Pension / FL Retirement Health Insurance Life Insurance Totals 2007 -2008 8% Increase 6 Months Current Proposed 3/31/08 - 9/30/08 134,838 10,787 10,125 608 16,421 1,308 10,069 1,208 1,004 0 172,457 13,911 67,419 5,063 8,211 5,035 502 86,229 2007 -2008 6% Increase 6 Months Current Proposed 3/31/08- 9/30/08 83,655 5,019 6,399 384 8,240 494 21,370 2,564 312 0 119,976 8,462 41,828 3,200 4,120 10,685 156 59,988 2007 -2008 6% Increase 6 Months Current Proposed 3/31/08- 9/30/08 65,655 3,939 5,022 301 6,467 388 19,524 2,343 246 0 96,914 6,972 32,828 2,511 3,234 9,762 123 48,457 2007 -2008 6% Increase 6 Months Current Proposed 3/31/08 - 9/30/08 37,237 2,234 2,847 171 3,668 220 19,524 2,343 138 0 63,414 4,968 2007 -2008 6% Increase Current Proposed 90,147 5,409 6,895 414 8,879 533 10,069 1,208 335 0 116,325 7,564 18,619 1,424 1,834 9,762 69 31,707 6 Months 3/31/08-9/30/08 45,074 3,448 4,440 5,035 168 58,163 6 Months 10/1/08-3/31/09 72,813 5,366 8,865 5,639 502 93,184 6 Months 10/1/08-3/31/09 44,337 3,391 4,367 11,967 156 64,219 6 Months 10/1/08-3/31/09 34,797 2,662 3,428 10,933 123 51,943 6 Months. 10/1/08-3/31/09 19,736 1,509 1,944 10,933 69 34,191 6 Months 10/1/08-3/31/09 47,778 3,654 4,706 5,639 167 61,944 12 Months 4/1/08-3/31/08 140,232 10,429 17,075 10,673 1,004 179,413 12 Months 4/1/08-3/31/08 86,165 6,591 8,487 22,652 312 124,207 12 Months 4/1/08-3/31/08 67,625 5,173 6,661 20,695 246 100,400 12 Months 4/1/08-3/31/08 38,354 2,932 3,778 20,695 138 65,898 12 Months 4/1/08-3/31/08 92,851 7,102 9,146 10,673 335 120,107 All personnel budget increases are effective 10/01/08 and represent 6 months of PRM's annual costs for FY 10/01/08 to 09/30/09. 2/22/2008 2/22/2008 LOSS PREV. CONSULTANT Salary Payroll Taxes Pension / FL Retirement Health Insurance Life Insurance Totals UP ADMINISTRATIVE ASSISTANT -I Salary Payroll Taxes Pension / FL Retirement Health Insurance Life Insurance Totals UP CONSULTANT -EMP. PRACTICES Salary Payroll Taxes Pension / FL Retirement Health Insurance Life Insurance Totals CLAIMS MANAGER Salary Payroll Taxes Pension / FL Retirement Health Insurance Life Insurance Totals Total Officer Salary Total Office Salary Total Payroll Taxes Total Retirement Total Officer Hlth Ins Total Office Hlth Ins Total Officer Life Ins Total Office Life Ins Total Payroll Expense Total Long Term Disab Ins Total Staffing Expense 2007 -2008 6% Increase Current Proposed 80,558 4,833 6,162 370 7,935 476 21,370 2,564 301 0 116,326 8,244 6 Months 3/31/08-9/30/08 40,279 3,081 3,968 10,685 151 58,163 2007 -2008 6% Increase 6 Months Current Proposed 3/31/08 - 9/30/08 38,655 2,319 2,958 177 3,808 228 6,084 730 145 0 51,650 3,455 2007 -2008 6% Increase Current Proposed 73,034 4,382 5,157 309 7,194 431 18,891 2,267 272 0 104,548 7,390 19,328 1,479 1,904 3,042 73 25,825 6 Months 3/31/08-9/30/08 36,517 2,579 3,597 9,446 136 52,274 2007 -2008 6% Increase 6 Months Current Proposed 3/31/08- 9/30/08 64,235 3,854 4,914 295 6,327 380 18,999 2,280 238 0 94,713 6,809 2007 -2008 6% Increase Current Proposed 134,838 10,787 533,176 31,991 50,479 3,029 68,939 4,459 10,069 1,208 135,831 16,300 1,004 0 1.987 0 936,323 60,384 11,500 2,251 947,823 62,635 32,118 2,457 3,164 9,500 119 47,357 6 Months 12 Months 10/1/08- 3/31/09 4/1/08- 3/31/08 42,696 3,266 4,206 11,967 151 62,285 6 Months 10/1/08-3/31/09 20,487 1,568 2,018 3,407 73 27,552 6 Months 10/1/08-3/31/09 38,708 2,733 3,813 10,579 136 55,969 6 Months 10/1/08- 3/31/09 34,045 2,604 3,353 10,639 119 50,761 82,975 6,347 8,173 22,652 301 120,448 12 Months 4/1/08-3/31/08 39,815 3,047 3,922 6,449 145 53,377 12 Months 4/1/08- 3/31/08 75,225 5,312 7,410 20,024 272 108,243 12 Months 4/1/08- 3/31/08 66,162 5,061 6,517 20,139 238 98,117 67,419 72,813 140,232 266,588 282,583 549,171 25,240 26,754 51,993 34,470 36,699 71,169 5,035 5,639 10,673 67,916 76,065 143,981 502 502 1,004 994 994 1,987 468,162 502,048 970,209 5,750 6.313 12,063 473,912 508,361 982,272 All personnel budget increases are effective 10/01/08 and represent 6 months of PRM's annual costs for FY 10/01/08 to 09/30/09. 2007/08 Budget Expenses Legal Fees Anticipated need for legal advice - public meetings, by -laws Sunshine Laa - Includes new retajner for legal council No increase Pre - defense - Legal Member usage & retainer fee for A.N.B. No Increase Audit Fees Yearly CPA audit & related legal & printing expenses 7% Increase Acturial Study Yearly actuarial study & report 7% Increase Appraisal Expense Software & related updates for members No increase Auto Expense General maintenance & repairs - Oil changes, Tune -ups, Tires & Car wash, AAA Coverage. no increase Travel Expense Gas, Lodging, Meals, Air fare Approx. 25% Exec. Dir., 60% Loss Prev.,15% Claims No Increase Association Memberships Annual Renewals - Includes professional dues /memberships No Increase Dues / Subscriptions Annual Renewals - Includes office & trade publications No Increase - Allows for subscriptions to selected local newspapers of members. No Increase Education / Training / Conference National PRIMA - (2) - $6,000 State PRIMA - (4) - $2,000 PRIMA -Pool Trustees - (7) - $11,000 AGRIP -Pool Admin. - (1) - $2,000 Amer. Soc. of Safety Engineers - (2) - $4,000 FPPA - $2,000 No Increase Office Lease Increase per lease agreement percentage Janitorial / Cleaning Weekly cleaning service, pest control & carpet shampoo No increase Office / Computer Equipment 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 15,000 5,000 31,000 15,000 5,775 4,800 30,000 2,000 3,200 30,000 75,736 3,800 18,000 0 0 2/22/2008 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 No increase. 26,000 3,000 Repairs /Maint. - Equipment 2,000 Computer & related equipment repair + misc. "handy- man" office repairs No increase. Office Expense 14,000 General office supplies, binders, paper products,etc. No increase. Newsletter 4,000 Quarterly newsletter for members, associates & prospects No increase. Postage 13,000 Pitney Bowes rental, postage, FedEx, etc. Printing 2,000 Invoices, letter head, envelopes, etc. No increase. Insurance - Flood /General 3,000 Office flood, travel, liability, etc. No increase Loss Prevention Expense Training videos & testing equipment Computer Projection Equipment Loss Prevention Programs No increase Marketing & Promotion Member retention /Prospect Expenses Annual Conference promotional items No increase Meeting Expense 4 - Quarterly Board Meetings -Room, equip., breakfast and luncheon for all members - $7,400 4 - Executive Committee Meetings- Meeting room & refreshment - $2,200 3 - Committee Meetings - Meeting room & refreshment - $1500 1 - Underwriters Meeting - $13,000 No increase 22,000 4,500 24,100 Miscellaneous Expense 2,500 Off -site storage & incidental expense & fees No increase Training /Seminar Presentation 4,000 Sexual Harassment, Claims Training, Legal Seminars, etc. 33% Decrease Web Site Maintenance Annual AGOS contract for web site hosting 29% Decrease Total Operating Expense: Auto Replacement Reserve Four Vehicles @ $7,500 Computer Replacement Reserve Total Replacement Expense: 4,800 368.211 30,000 15,000 45 ,000 2/22/2008 Page 2 Officer Salary 164,832 Applicable percentage of increase Office Salary 565,611 Applicable percentage of increase Payroll Taxes Applicable percentage based on saleries 51,993 Employee Retirement 71,169 12.13% of salary amount - officer 9.85% of salary amount- office Officer Health Insurance Applicable Coverages 10,673 Office Health Insurance 143,981 Applicable Coverages Officer Life Insurance 1,004 Applicable rate based on two times salary Office Life Insurance 1,987 Applicable rate based on one times salary Long Term Disability 12,063 Applicable rates based on age & salary Total Salary Compensation: 1,023,313 (41,040) ** Less Health Compensation Total Personnel Expense: 982.273 Total Expense with Reserves: 1.395"4 * All personnel budget increases are effective 10/01/08 and represent 6 months of PRM's annual costs for FY 10/01/08 to 09/30/09. ** 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. 2/22/2008 Page 3 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING MARCH 14, 2008 REGULAR AGENDA SUMMARY 7. Chairperson's Item A. Executive Director Evaluation John Litton, Chairperson The Board of Directors is responsible each year for the annual performance evaluation of the Executive Director. The annual review provides the basis for any merit increase awarded by the board which would be effective October 1st The performance appraisal is a two -tier process that includes an evaluation by each member along with a more thorough evaluation by the Executive Committee. The latter is due to their generally having more interaction with the Executive Director and observation in dealing with policy issues for the pool as a whole. Evaluation forms will be e- mailed at the end of March and are to be returned to Judy Hearn by April 25th 8. Legal Update Donovan Roper, Esquire A. 2009 Federal Law Changes on Medicare Set Asides and CMS Approval Mr. Roper will review the summary on Medicare Set Asides and CMS approval being necessary in civil liability claims and lawsuits for Medicare - eligible plaintiffs and claimants, and also being applicable not only to liability carriers, but also self - insureds. Attachment B. Public Records Requests ROGER e ROWER, W.A. Donovan A. Roper, Esquire Teresa S. Roper, Esquire Andrew I. Dayes, Esquire Heather A. Macre, Esquire Sophia E. Langley, Esquire* * Of Counsel Cynthia A. Todd, Paralegal ATTORNEYS AT LAW 116 North Park Avenue Apopka, Florida February 19, 2008 Mr. Ross Furry PRM 3434 Hancock Bridge Parkway, Suite 203 N. Ft. Myers, FL 33903 RE: PRM -SCHIP Extension Bill's New Changes to Claim Settlement Requirements Dear Ross: Telephone: 407-884-9944 Facsimile: 407 -884 -4343 E -Mail: email @roperandroper.com Web: www.roperandroper.com Satellite Offices in Palatka, Florida Federal law recently changed dramatically with regard to Medicare Set Aside requirements in future third party liability, no -fault insurance and worker's compensation claims for both third party liability carriers and self- insurers. President George W. Bush, on December 27, 2007, signed Senate Bill 2499, or the "Medicare, Medicaid and SCHIP Extension Act of 2007." The Bill, sponsored by Senator Chuck Gassley (D- Iowa), passed both the House and Senate before signing by President Bush. The main focus of the bill is providing funding for state sponsored children's health insurance funds. A copy of this Bill is enclosed. However, Section 111 (8) of this Bill has major ramifications for all future liability insurance, self- insurance, no fault insurance and worker's compensation claims nationwide. This section creates a reporting requirement which mandates that, for all settlements entered into on or after July 1, 2009, after a settlement or verdict is reached, liability carriers and self - insurers are required to determined the Medicare status of all Clamaints /Plaintiffs. If the Claimant /Plaintiff is Medicare - eligible (i.e. over 65 years of age or under 65 years of age but suffering from a disability), the liability insurer or self - insurer must then notify the Federal Secretary of the Department of Health and Human Services /Center for Medicare and Medicaid Services ( "CMS ") of the Claimant /Plaintiffs status and identifying information, including name. The Secretary will then decide whether to approve the settlement by examining the coordination of benefits. If reporting is not done in a timely manner, liability insurers face a penalty of $1,000.00 per day. At this time, there are no further details as to the information that needs to be included in this report or how this report should be submitted. We will continue to watch this issue. We believe that the procedure followed to date in all worker's compensation claims, in which one has to coordinate and then fund a Medicare Set Aside will likewise be followed. The Bill is intended to recoup costs associated with Claimants /Plaintiffs who are injured and, post settlement or verdict, rely upon Medicare for future health care. CMS will not recognize a settlement to a Medicare - eligible Claimant/Plaintiff that does not provide for medical care. As you may know, the worker's compensation field has had to comply with similar requirements for quite a while, leading to the development of Medicare Set Asides, or MSA's, which are funded by the liability insurer when settlements are awarded to Claimants who are, or will become within 30 months, Medicare eligible, or if the settlement is over $250,000.00. Essentially, due to this Bill, CMS will now be able to require MSA's on all types of settlements if the recipient is Medicare - eligible or already a Medicare beneficiary. CMS may also require an MSA if the settlement or verdict is over a certain threshold amount, such as the $250,000 requirement that is currently effective in worker's compensation cases, but this has yet to be determined. See internet web address: http: / /s2kmblog.typepad. com/rethinking_structured_set /2008/01 /medicare - medica.html. CMS has not, to date, released any official memos to this effect or setting a floor beyond which MSA's will be required for third party liabiltiy and no fault cases involving both insurers and self - insurers. Still, such information should be forthcoming. The SCHIP Extension Bill also makes clear that if Medicare is required to pay a bill that a liability insurer should have paid, the damages can be up to two times the original bill. This, of course, will have to be taken into account when we draft settlements reached on or after July 1, 2009. We will continue to monitor this issue, particularly if CMS produces guidelines for what reporting information is required, how it should be submitted and/or the amount that triggers the funding of MSA's. As we already handle worker's compensation claims, we are quite familiar with the MSA process and the companies which provide MSA estimates and will be able to transition accordingly. Also, please bear in mind that this issue is brand new and, as a result, details are scant. We will provide updates to this information as available. If you have any questions, or wish to discuss this information further, please do not hesitate to contact me. With my best regards, I remain Very truly yours, DONOVAN A. ROPER DAR:HM Enclosure PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING MARCH 14, 2008 REGULAR AGENDA SUMMARY \ f >°' 9. PPO Network for the PRM Workers' Compensation } Managed Care Arrangement Mara Roth, Account Executive, Genex Services Ms. Roth will present a recommendation to change to the Rockport network, who has agreed to develop a customized PPO network that would be unique to PRM. Increased savings will be realized by utilizing providers within the network. See attachment. 10. Board Member Items John Litton, Chairperson A. Election of Officers — June Board Meeting — The term of office for Chairperson and Treasurer expire 9/30/08. Individuals interested in serving in either capacity for the 2 -year term, beginning 10/1/08, should submit their bios to the PRM office by May 1. Nominations from the floor will also be taken. Elections will be held at the June 6th Board Meeting. The next meeting will be held on June 6th during the Annual Conference at Marco Island. Public Comment: Discussion must be limited to a maximum of five (5) minutes per person. Adjourn Solving the Cost /Care Equation GENEX currently provides a managed care arrangement to Public Risk Management by utilizing the First Health Network. A "Provider network" means a comprehensive panel of health care providers and health care facilities who have contracted directly or indirectly with an insurer to provide appropriate remedial treatment, care, and attendance to injured workers in accordance with this chapter. This PPO network provides the mechanism for assuring that covered employees receive all initial covered services from a primary care provider participating in the provider network, except for emergency care. Under Florida statutes, A Workers' Compensation Managed Care Arrangement may use an existing provider network, construct its own network by contracting with and credentialing providers, or customize an existing network to meet its needs as long as the provider network meets the Agency for Health Care Administration's minimum travel time and provider content requirements. Our current PPO network does not offer the option to create a customized network; however, GENEX would like to recommend a change to the Rockport network who has agreed to develop a customized network that would be unique to PRM. There is an associated fee of $3000 per year which includes the semi - annual filings that would need to be sent to AHCA, maintenance of the network, unique look up of the PRM providers. Under a current analysis of the PPO providers being utilized by PRM members, there are 5 members who are currently using out of network providers for their initial point of entry providers. The providers for those members will also need to be nominated for the Rockport network. BENEFITS OF A CUSTOMIZED NETWORK: .46 Able to carve out providers who have not met the needs of Public Risk Management (especially on the presumption cases) .i. More aggressive nomination process to get additional providers into the network Provider Referral service which will be a benefit in locating providers, resolving issues of requests for pre -pays, resolving issues of quality of care, etc. 4 Able to remove providers upon request .i Increase the amount of PPO reductions (for July 07 to Dec 07, we processed 5473 bills for PRM of which 4000 bills penetrated the PPO network or 73.09 %. We obtained actual PPO reductions of $156,927 or 4.38 %. We would look to increase that PPO reduction to 7% to 10% 4 Additional savings to the program by utilizing providers who have been selected to be in the network and removing the opportunity for claimants and plaintiff attorney's to use providers who have been unfavorable to PRM. PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING Terrace Hotel Lakeland, FL March 14, 2008 AGENDA 10:00 am Call To Order John Litton, Chairperson Consent Agenda 1. Request Approval of December 14, 2007 Board Meeting Minutes 2. Request Approval of Treasurer's Report as of December 31, 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 Committee Report John Litton, Chairperson A. Discussion of Arthur J. Gallagher's Interference with PRM Business Relationships; and Termination of Gallagher Bassett Services TPA Contract; and Discussion for Recommendation to the PRM Group Health Trust for Termination of the Gallagher Benefits Services Inc. Contract 4. Insurance Advisor's Report Glenn Tobey, Tobey & Associates 5. Broker's Report Andy Cooper, World Risk Management A. Insurance Renewal, Coverages and Limits 6. Executive Director's Report Ross Furry, Executive Director A. AGRIP Conference B. CSX Railroad Charged with 199 Safety Violations C. Educational Conference Update D. Request Board Approval of 2008 -09 Administrative Budget E. Member Notices to Withdraw 2009 7. Chairperson's Item A. Executive Director's Evaluation John Litton, Chairperson 8. Legal Update Donovan Roper, Esquire A. 2009 Federal Law Changes on Medicare Set Asides and CMS Approval B. Public Record Requests 9. PPO Network for the PRM Workers' Compensation Managed Care Arrangement Mara Roth, Account Executive, Genex Services 10. Board Member Items A. Election of Officers — June Board Meeting 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 Terrace Hotel Lakeland, FL March 14, 2008 AGENDA 10:00 am Call To Order John Litton, Chairperson Consent Agenda 1. Request Approval of December 14, 2007 Board Meeting Minutes 2. Request Approval of Treasurer's Report as of December 31, 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 Committee Report John Litton, Chairperson A. Discussion of Arthur J. Gallagher's Interference with PRM Business Relationships; and Termination of Gallagher Bassett Services TPA Contract; and Discussion for Recommendation to the PRM Group Health Trust for Termination of the Gallagher Benefits Services Inc. Contract 4. Insurance Advisor's Report Glenn Tobey, Tobey & Associates 5. Broker's Report Andy Cooper, World Risk Management A. Insurance Renewal, Coverages and Limits 6. Executive Director's Report Ross Furry, Executive Director A. AGRIP Conference B. CSX Railroad Charged with 199 Safety Violations C. Educational Conference Update D. Request Board Approval of 2008 -09 Administrative Budget E. Member Notices to Withdraw 2009 7. Chairperson's Item A. Executive Director's Evaluation John Litton, Chairperson 8. Legal Update Donovan Roper, Esquire A. 2009 Federal Law Changes on Medicare Set Asides and CMS Approval B. Public Records Requests 9. PPO Network for the PRM Workers' Compensation Managed Care Arrangement Mara Roth, Account Executive, Genex Services 10. Board Member Items A. Election of Officers - June Board Meeting Public Comment: State full name and address. Discussion must be limited to a maximum of five (5) minutes per person. Adjournment Luncheon immediately following Driving Directions from 55 SE 3rd Ave, Okeechobee, FL to 329 E Main St, Lakeland, FL Page 1 of 2 Mama always says.. A: 55 SE 3rd Ave, Okeechobee, FL 34974 -2903 Mal 1: Start out going NORTH on SE 3RD AVE toward FL -70. 2: Turn LEFT onto FL -70. 60 END 3: Turn RIGHT onto N PARROTT AVE /US -441 N /FL -15 N. Continue to follow US -441 N. 4: Turn SLIGHT LEFT onto FL -60 W. 5: Turn LEFT onto E VAN FLEET DR /US -98 N /FL -35 N /FL -60 W /FL -700 N. 0.0 mi 0.1 mi 33 mi 61 mi 0.6 mi 6: Turn RIGHT onto N BROADWAY AVE /US -98 N /FL -35 N /FL -700 N. Continue to follow US -98 N /FL -35 N /FL- 700 N. 7: Turn SLIGHT LEFT onto E MAIN ST /US -92 BR /US -98 BR /CR -542. 8: End at 329 E Main St Lakeland, FL 33801 -5046 Estimated Time: 2.0 hours 5 minutes B: 329 E Main St, Lakeland, FL 33801 -5046 12 mi 0.6 mi Estimated Distance: 107 miles Total Time: 2.0 hours 5 minutes Total Distance: 107 miles http: / /www.mapquest.com/ maps /55 +SE+ 3rd+ Ave+ Okeechobee +FL+ 34974 - 2903 /329 +E +Main +St +Lake... 3/13/2008 Terrace Hotel 329 E. Main Street Lakeland, FL 33801 -5046 Phone: 863 - 688 -0800 Toll-Free: 888 - 644 -8400 Directions from Tampa 1 -4 East toward Orlando Exit 28 Memorial Blvd. (approx. 3.5 mi.) Right on Massachusetts Ave. (approx. 1 mi.) Hotel is located at the corner of Main St. & Massachusetts Ave. Directions from Orlando 1 -4 West toward Tampa Exit 33, State Road 33 Continue South (approx. 4 mi.) (SR 33 changes name to Lakeland Hills Blvd., then Massachusetts Ave.) Hotel is located at the corner of Main St. & Massachusetts Ave. Directions from Ft. Myers 1 -75 North to Exit 164 (old Exit 29), US Route 17 North Follow 17 North to Bartow, turn left on US Route 98 Follow 98 North into town, turn left on Main Street and follow around the lake to the hotel, located at the corner of Main St. & Massachusetts Ave. Complimentary valet parking at hotel. 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 February 29, 2008 TO: All PRM Board Members and Alternate Members FROM: Judy Hearn Assistant Executive Director /Secretary REFERENCE: Posting of Public Notice Executive Committee 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. JH:smb Encl: Public Notice of Meeting Executive Committee Meeting Agenda Directions 8:00 a. m. PUBLIC RISK MANAGEMENT OF FLORIDA EXECUTIVE COMMITTEE MEETING March 14, 2008 Terrace Hotel, Lakeland, FL AGENDA Call To Order John Litton, Chairperson CONSENT AGENDA 1. Request Approval of December 14, 2007 Executive Committee Meeting Minutes 2. Request Approval of January 30, 2008 Executive Committee Meeting Minutes Any Board Member may request to have an item removed from the Consent Agenda and placed on the Regular Agenda for further discussion. REGULAR AGENDA 3. Executive Committee Report John Litton, Chairperson A. Discussion of Arthur J. Gallagher's Interference with PRM Business Relationships; and Termination of Gallagher Bassett Services TPA Contract; and Discussion for Recommendation to the PRM Group Health Trust for termination of the Gallagher Benefits Services, Inc. Contract 4. Insurance Advisor's Report Glenn Tobey, Tobey & Associates 5. Broker's Report Andy Cooper, World Risk Management A. Insurance Renewal, Coverages and Limits 6. Executive Director's Report A. AGRIP Conference B. CSX Railroad Charged with 199 Safety Violations C. Educational Conference Update D. Request Approval of 2008 -09 Administrative Budget E. Member Notices to Withdraw 2009 Ross Furry, Executive Director 7. Chairperson's Item A. Executive Director's Evaluation 8. Legal Update John Litton, Chairperson Donovan Roper, Esquire A. 2009 Federal Law Changes on Medicare Set Asides and CMS Approval B. Public Records Requests 9. PPO Network for the PRM Workers' Compensation Managed Care Arrangement 10. Committee Items A. Election of Officers — June Board Meeting John Litton, Chairperson Public Comment: State full name and address. Discussion must be limited to a maximum of five (5) minutes per person. Adjourn PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING Terrace Hotel Lakeland, FL March 14, 2008 AGENDA 10:00 am Call To Order John Litton, Chairperson Consent Agenda 1. Request Approval of December 14, 2007 Board Meeting Minutes 2. Request Approval of Treasurer's Report as of December 31, 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 Committee Report John Litton, Chairperson A. Discussion of Arthur J. Gallagher's Interference with PRM Business Relationships; and Termination of Gallagher Bassett Services TPA Contract; and Discussion for Recommendation to the PRM Group Health Trust for Termination of the Gallagher Benefits Services Inc. Contract 4. Insurance Advisor's Report Glenn Tobey, Tobey & Associates 5. Broker's Report Andy Cooper, World Risk Management A. Insurance Renewal, Coverages and Limits 6. Executive Director's Report Ross Furry, Executive Director A. AGRIP Conference B. CSX Railroad Charged with 199 Safety Violations C. Educational Conference Update D. Request Board Approval of 2008 -09 Administrative Budget E. Member Notices to Withdraw 2009 7. Chairperson's Item A. Executive Director's Evaluation John Litton, Chairperson 8. Legal Update Donovan Roper, Esquire A. 2009 Federal Law Changes on Medicare Set Asides and CMS Approval B. Public Records Requests 9. PPO Network for the PRM Workers' Compensation Managed Care Arrangement Mara Roth, Account Executive, Genex Services 10. Board Member Items A. Election of Officers — June Board Meeting 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 3434 Hancock Bridge Parkway, Suite 203 North Ft. Myers, Fl. 33903 March 20, 2008 To: All Board Members & Alternates From: Re: Judy Hearn, Asst. Executive Director Secretary, PRM Board of Directors Summary of March 14, 2008 Board Meeting The following is a summary of motions passed at the Board of Directors Meeting held on March 14th in Lakeland, Fl. This is provided for your information only. The official meeting minutes will be presented for approval at the next scheduled Board of Directors Meeting on June 6, 2008. Motions Passed Consent Agenda: Approved December 14, 2007 Board Meeting Minutes Approved Treasurer's Report as of December 31, 2007 Regular Agenda: April 1, 2008 Coverage Renewal: Approved $150 million Wind Coverage Limit Declined Terrorism Coverage on Property Approved Terrorism Coverage on Excess Liability Approved Terrorism Coverage on Pollution Policy Approved the April 1, 2008/09 Coverage Renewal Approved motion to review options on Third Party Claims Administrators or an In -House Program Approved the PRM Administrative Budget for April 1, 2008/09 including salary adjustments for staff and Executive Director Authorized PRM to secure a master policy for statutory AD &D coverage for Police & Firefighters Authorized PRM to release records to Lee County Port Authority per their public records request. Approved the Rockport PPO network provider for Workers' Compensation managed care program Public Risk Management Board of Directors Meeting March 14, 2008 Consent Agenda 1. Minutes of December 14, 2007 Board Meeting - Approved 2. Treasurer's Report as of December 31, 2007 — Approved Regular Agenda 3. Arthur J. Gallagher's Interference with PRM Business Relationships; and Termination of Gallagher Bassett Services TPA Contract; and Discussion for Recommendation to the PRM Group Health Trust for Termination of the Gallagher Benefits Services, Inc. Contract. After Discussion, is was Approved to submit our case to the Florida Insurance Commission for determination as to whether or not funds that were paid to Arthur J. Gallagher are due to be returned. 4. Insurance Advisor's Report: Worked with World Risk Management on Insurance Renewals, and is still working on trying to obtain a Homeowner's Insurance Policy for the group. 5. Broker's Report: Insurance Renewal, Coverage and Limits — We were given our Renewal Information for 4/1/08 — 4/1/09 Windstorm Limits will stay at $150 million. Excess Property TRIPPA Option was Denied. Excess Liability Coverage increase from 2MM to 3MM was Approved. Excess Liability Decreased in premiums approximately 8% - Total package Decreased in premiums approximately 7 %. Gallagher Bassett's Fee went up 12% over last year — for Claim Count used 2005 Hurricane Figures, however, cost per claim is only up 3 %. Executive Committee expressed that they were happy with Gallagher Bassett's services; however, they would like to check on other TPA Services as well as the possibility of in- house services. A Motion was made and Approved to pursue other options. 6. C. Educational Conference, Marco Island — Should have received Information for Conference. — Make reservation at Hotel and upon check -in, PRM will have paid for one night. D. 2008 -2009 Administrative Budget — Approved PRM will investigate a group policy for Statutory AD &D for Police Officers. 7. We will be receiving an Evaluation Form for the Executive Director by e -mail by the end of March to be returned to Judy Hearn by April 25th Motion was made and Approved to change the date of the Executive Director's evaluation to coincide with the new Budget Approval date. 8. A. Legal Update: Effective July 1, 2009, all individuals that will be Medicare eligible within 30 months of a settlement, must have Medicare Approval or they will not pay future medical costs. This will include costs for settlements in Liability issues, Worker's Comp. and No -Fault Situations. B. Public Records Request that was made of Arthur J. Gallagher, i.e., 5 years of PRM premium allocations, work and spreadsheets. We received the October 1, 2006 Spreadsheet but not supporting documents or the prior years. AJG perceives the documents as proprietary, however PRM contends that they are Public Record. Legal Counsel for PRM would like verification from the Board to give Lee County Port Authority the documents that were requested, with the understanding that we are giving them the documents that we have received. It was voted and Approved to release the documents. 9. PPO Network for the PRM Worker's Compensation — Ms. Roth from Genex Services, presented a recommendation to change to the Rockport network, which has agreed to customize a PPO network that would be unique to PRM. Motion was made and Approved to change to Rockport and have them customize a PPO network for PRM. Each of the members can speak with Ms. Roth regarding the addition or deletion of physicians in their area for review by Rockport. tPPROVED PUBLIC RISK MANAGEMENT OF FLORIDA EXECUTIVE COMMITTEE MEETING Terrace Hotel, Lakeland FL December 14, 2007 Member Attendance: John Litton, Chairperson; Mike Sheppard, Treasurer; Robbie Chattier, South Representative; Ross Furry, Executive Director; Judy Hearn, Assistant Executive Director and Secretary to Board of Directors, Bonnie Mims, Loss Prevention Consultant- Employment Practices Other Attendees: Michele Schaare, Andy Cooper, Sonia Fatheree of World Risk Management; Glenn Tobey, PRM Insurance Advisor; Don Roper, Esq. Absent: Jeff Sutton, Vice Chairperson; Jennifer Valdes, North Representative Mr. Litton called the meeting to order at 8 :12 a.m. Consent Agenda 1. Request Approval of September 14, 2007 Executive Committee Meeting Minutes Mike Sheppard made a motion to approve the Consent Agenda. Robbie Chartier seconded the motion and it was unanimously approved. Regular Agenda 2. Executive Director's Report A. Request Approval to Accept Fee Increase from Allen, North & Blue for Pre - Defense Employment Liability — The Executive Director advised that PRM began utilizing Allen, Norton & Blue in 1998 and no rate increases have been assessed since inception. A proposal to increase litigation fees was submitted as follows: $200.00/hour effective 10/1/08 $215.00/hour effective 10/1/09 $230.00/hour effective 10/1/10 Additionally, effective 10/1/08, when an EEOC or a Florida Human Rights Commission charge is filed against a PRM member, the fee for filing the initial position statement will be increased from $1,000.00 to $1,750.00. The Executive Director recommended acceptance of the proposal. Ms. Chartier made a motion for Board to approve fee increase from Allen, Norton & Blue. Mr. Sheppard seconded the motion and it was unanimously approved. B. Bonnie Mims Attains IPMA -CP Credential — Recognition was given to Bonnie Mims who attained the International Public Management Association Certified Professional designation for Human Resources. C. 2008 On -Site Property Appraisals — The following members are scheduled for on -site property appraisals in late 2008 and will be provided estimated costs for budgeting purposes: Holmes County BOCC Town of Lady Lake City of Lake Wales Levy County BOCC City of Oviedo City of Pahokee D. Update on A. J. Gallagher Class Action Lawsuit — PRM met the deadline for filing on the anti-trust settlement. Total Premiums paid August, 1994 through December, 2005 were over $71 million. E. Request Approval to Accept New PRM Logo — Staff and outside graphics firms submitted ideas to modernize the PRM logo and website. Mr. Sheppard made a motion for the Board to approve the new logo. Ms. Chartier seconded the motion and it was unanimously approved. F. FEMA Mitigation Funding 404 & 406 Programs — This informational item advised members about FEMA and their public assistance programs. The Executive Director will have a FEMA representative provide a presentation if members indicate interest. G. PRM Conference at Marco — Hotel Offset — Due to members' budget constraints, the Executive Director recommended using surplus funds to pay for one night's hotel accommodation for each Board Member and Alternate who attends the PRM Conference. Estimated cost for 94 representatives at $129.00 per night room rate is $12,126.00. A motion was made by Ms. Chartier to recommend Board approval of the use of surplus funds. Mr. Sheppard seconded the motion and it was unanimously approved. H. Change in Banking Relationship — After AmSouth was purchased and merged with Regions Bank, a representative from Regions advised that the services previously provided by AmSouth on interest bearing deposit 2 accounts could not be continued. BB &T submitted a proposal exceeding what's currently offered by AmSouth /Regions Bank. BB &T, the 12th largest financial holding company in the nation, offers electronic deposit transactions and will provide PRM .5% cash rebate on purchasing card transactions. Mr. Furry recommended accepting the BB &T proposal. He also advised that PRM withdrew funds from SBA, leaving only $1,000 to maintain an account there. Legal Counsel confirmed that soliciting requests for quotations are not required in order to change banks. Mr. Sheppard made a motion for Board approval to accept the BB &T proposal and authorize the Executive Director and Treasurer to execute the required account documents. Ms. Chartier seconded the motion and it was unanimously approved. 3. Broker's Report A. Market Update — Mr. Cooper recapped wind coverage on the property renewal, indicating an increase to $175 million with an 18% rate reduction. The broker advised that reinsurer treaties renew on January 1st and further reductions are anticipated. B. Property Policies — Mr. Cooper advised that all policies have been received and placed on disk for members. C. Loss Development Presentation — The broker provided an analysis of losses as of June, 2006 and October, 2007, going back to 2001/02. D. Report on Return of PIP (Personal Injury Protection) in January — The State reinstated PIP effective January 1, 2008, however, PRM retained this coverage during the 3 -month gap. E. Renewal Application Status — Applications from 44 of 47 members have been returned to the broker. CBIZ has estimated a 5-6% inflationary increase on property. 4. Insurance Advisor's Report A. Loss Fund and Current Trends — Mr. Tobey advised that the PRM program is comprised of three specific areas — Insurance Premiums, Administration Costs, and Loss Fund. The Loss Fund is money that pays claims within the Self Insured Retention per line of coverage. The Loss Fund represented 42-48% of the Pool's money Last year. The Insurance Advisor has projected a savings of $3.2 million on funding of $15 million for losses during the 18 -month period. B. Property Renewal Trip to Markets - Mr. Tobey will travel to Atlanta mid - January to meet with CRC, Lexington, RSUI, and Westchester. 3 C. Personal Lines: Home and Auto Insurance - Does It Make Sense? The Insurance Advisor contacted State Farm and Allstate with both companies indicating interest in offering homeowners and auto insurance to employees. A 16 -month pilot project with two counties and two cities was suggested. The Executive Committee was in consensus that should members be interested, the Insurance Advisor will pursue this option. 5. Legal Update - There was no legal information to report. 6. Committee Member Items Mr. Sheppard commended the Executive Director for taking decisive action with SBA. There was no public comment. Meeting adjoumed at 9:38 a.m. Respectfully submitted, udt Q . GtA-A-' Judith A. Hearn Assistant Executive Director Secretary to PRM Board O Uutly\Exec Com Mtgs\Exec Com Mtg 12.14 -07 4 Driving Directions from 55 SE 3rd Ave, Okeechobee, FL to 329 E Main St, Lakeland, FL Page 2 of 2 god 0 ahnet omela zy Fort Meade owltng Greer 4Rlauchu l 4 Ito Springs Frc ; eenat+w J ion Afr Avon Par'IC r � L ort Drun ebring Umest tie 6i1 Gardner w rcadia All rights reserved. Use subject to License /Copyright 1 Map Legend Directions and maps are informational only. We make no warranties on the accuracy of their content, road conditions or route usability or expeditiousness. You assume all risk of use. MapQuest and its suppliers shall not be liable to you for any loss or delay resulting from your use of MapQuest. Your use of MapQuest means you agree to our Terms of Use http : / /www.mapquest.com/maps /55 +SE +3rd +Ave +Okeechobee +FL +34974 -2903 /329 +E +Main +St +Lake... 3/13/2008