Loading...
2009-09-16 BOD MeetingPUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING June 19, 2009 CONSENT AGENDA SUMMARY 1. Request Approval of March 13, 2009 Board Meeting Minutes Board Meeting Minutes Attached 2. Request Approval of Treasurer's Report as of March 31, 2009 Financial Reports Attached Board Action: Approved Denied Deferred Other 1. BOARD MEETING MINUTES 3/13/09 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING Terrace Hotel, Lakeland, FL March 13, 2009 MINUTES Attendance: Kathy Bennett, City of Avon Park; Lester Baird, Barron Water Control District; Vivian Hunter, City of Belle Glade; Ted Byrd, City of Clewiston; Jerry Hill, DeSoto County BOCC; Mike Sheppard, City of Eustis; Phyllis Kirk, City of Fort Meade; Denise Manuel, Gulf County BOCC; Jennifer Valdes, City of Gulfport; Jane Long, Hardee County BOCC; Jennifer Davis, Hendry County BOCC; John Minor, Highlands County BOCC; Maura Kiefer, City of Indian Rocks Beach; Nancy Beelman, Town of Kenneth City; Guy Shields, Town of Lady Lake; John Litton, City of Lake Mary; Sandra Davis, City of Lake Wales; Fred Moody, Levy County BOCC; Gerald Wilson, Town of Longboat Key; Jeff Sutton, City of New Port Richey; Steve Gailbreath, City of North Port; Sharon Allison, City of Okeechobee; Robbie Chartier, Okeechobee County BOCC; Connie Collins, City of Oviedo; Shirley Dresch, City of Port Richey; Phil Wickstrom, City of Punta Gorda; Bill Cropsey, City of Safety Harbor; Martin Lange, Sarasota /Manatee Airport Authority; Mike Eastman, City of Sebring; Elsie King, South Florida Conservancy District; Gary Behnke, City of St. Pete Beach; Dana March, Sun `n Lake of Sebring Improvement District; Crissy Bublitz, City of Tavares; Woody Hubbard, City of Temple Terrace; James Braddock, City of Wauchula, Frank Gilbert, City of Winter Garden; Katrina Bouthot, City of Zephyrhills Katrina Powell attended as a non - voting representative from the City of Longwood. Absent: Town of Belleair, City of Brooksville, City of Crystal River, Glades County BOCC, Holmes County BOCC, City of LaBelle, Town of Lake Placid, Lee County Port Authority, City of Moore Haven, City of Pahokee, City of South Pasadena Chairperson John Litton called the meeting to order at 10:13 a.m. with a quorum present. Consent Agenda 1. Request Approval of November 14, 2008 Board Meeting Minutes 2. Request Approval of Treasurer's Report as of December 31, 2008 Nancy Beelman made a motion to approve the consent agenda. Robbie Chartier seconded the motion and it was unanimously approved. Regular Agenda 3. Executive Director's Report Al. Request Board Approval of 2009 -10 Administrative Budget — The proposed budget is a 2% overall reduction from the prior year's administrative budget. A 6% salary increase for staff has been provided, but the total personnel budget was reduced by the same percentage as a result of not filling Rob Ross' Loss Prevention position. Operating Expense was increased 5% due to the need for enhanced actuarial reports and CPI for office lease. The Executive Committee and Executive Director recommended using surplus funds to pay for the Administrative Budget due to the pressure members are under to reduce costs. The Executive Committee supported a salary increase up to 6% for staff and 4% for the Executive Director. Ted Byrd made a motion to approve the Administrative Budget. Frank Gilbert seconded the motion, and it was approved by majority vote with one opposed (City of Oviedo). Ms. Chartier made a motion to approve the use of surplus funds to cover each member's portion of the Administrative Budget. Jeff Sutton seconded the motion and it was unanimously approved. A2. Request Approval to Provide a Participation Credit from Surplus Funds to Offset Member Loss Fund Contributions — The Executive Committee and Executive Director recommended utilizing $2 million of surplus funds in the form of a participation credit to reduce each member's Loss Fund contribution. Jane Long made a motion to utilize $2 million of surplus funds as a participation credit to offset member Loss Fund contributions. Sharon Allison seconded the motion and it was unanimously approved. B. Educational Conference Update — The Conference will be held at the Marco Island Hilton Beach Resort on June 17, 18, and 19. Registration forms are to be returned by May 1. One night's room accommodations will be provided for each Board Member and Alternate as previously approved by the Board. C. Member Notices to Withdraw Notice for 2009 - Of the eleven members providing notice to withdraw, eight will remain with PRM: City of Avon Park, City of Clewiston, City of Eustis, Holmes County, City of North Port, City of Port Richey, Sarasota /Manatee Airport Authority and City of Temple Terrace. The City of Brooksville has yet to give their final response. Highlands County and Lee County Port Authority advised they will withdraw on 3/31/09. 2 ii. Notice for 2010 — Five members submitted notice to withdraw in 2010: City of Crystal River, City of Eustis, Hendry County, Holmes County, City of Punta Gorda. D. On -Site Property Appraisals Scheduled in 2009 — On -site property appraisals will be performed this year for DeSoto County, City of Lake Mary, City of Okeechobee, and City of St. Pete Beach. Members were reminded to have a representative accompany the CBIZ appraiser during the inspection. ii. Scheduled for 2010 — Three members (City of Brooksville, City of Indian Rocks Beach, Sun 'n Lake of Sebring) are scheduled for appraisals in 2010. 4. Insurance Advisor's Report — Mr. Tobey reviewed how poor economic conditions have affected members and the need to "think outside the box" for PRM to remain competitive and acquire new members. Strategies include adding school boards and special taxing districts to spread the risk, working with independent agents, and better advertising of PRM products and benefits. Some of these initiatives will require By -laws changes. 5. Broker's Report (Out of Sequence) C. WRM Restructuring — Mr. Cooper introduced Shane Caldwell of Accretive Insurance Group, advising that World Risk Management is partnering with him to market the PRM program and increase membership. This partnership benefits PRM with access to markets available only through Accretive Insurance Group. A. Insurance Renewal, Coverages and Limits — After renewal packages were distributed to members, Mr. Cooper reviewed measures taken to provide an acceptable renewal. He indicated that carriers were advised of the financial crisis facing members and the need for reduced rates. Munich Re requested an increase of 18 %. BRIT declined to quote. To reduce costs, alternative methods were reviewed, such as breaking out the package into sections. Property coverage will be provided through the Public Entity Property Insurance Program (PEPIP) with Accretive Insurance Group. American Safety was selected for Liability and Workers' Compensation coverage, and Liberty Mutual will provide excess Workers' Compensation coverage. For further cost savings, a deposit fee basis will be implemented this 3 year for third party administrative fees from Gallagher Bassett rather than the fixed fee charge. B. Disclosures including Commissions — Mr. Cooper indicated that World Risk Management does not receive any contingent commissions. The commission percentage on total premiums for last year's renewal was 12.9% and will be 11.3% for the coming year. Commissions for wholesalers were not available and will be provided to the Executive Director at a later date. C. Proposed Rule Change for Self Insurers under Workers' Compensation Act — Due to rule changes, all current self insurers may need to re- qualify for self- insurer status by submitting appropriate forms. This will apply to our members if proposed rule changes are approved. The Executive Director asked for discussion regarding the one -year notice for withdrawal. Mr. Caldwell pointed out that members need to take ownership and suggested the concept of two membership classes. Preferred members would retain a vote on the Board of Directors and observe the one year notification for withdrawal requirement. Whereas Standard members would only be purchasing insurance under the PRM umbrella and would not be afforded a vote on the Board, nor participate in the Loss Fund, but would be required to provide a 30 -day notification to withdraw. Proposed By -laws changes are anticipated to be presented at the June Board Meeting. 6. Chairperson's Item A. Executive Director's Evaluation — Evaluations supported the membership's confidence and respect for Mr. Furry's leadership. Following the Executive Committee's recommendation, Ms. Beelman made a motion to approve a 4% salary increase for the Executive Director. Fred Moody seconded the motion and it was unanimously approved. 7. Legal Update A. FL Supreme Court Case: Parents Unable to Waive Liability for Minors in Commercial Activity Scenarios — Mr. Roper advised that any type of pre- incident waiver or release executed by parents that involves a commercial enterprise is invalid. The Florida Supreme Court did not define a commercial activity, but ruled the State could step in to protect the minor. Mr. Roper recommended other insurance, if obtained, be named primary above PRM to transfer the risk away from the entity and Pool. 4 8. Board Member Items A. Election of Officers — June Board Meeting — Election for Vice Chairperson, North Representative and South Representative will be held at the June 19th Board Meeting. Interested individuals are to submit bios by May 1St to the PRM office. Nominations will also be taken from the floor. There was no public comment. Meeting adjourned at 12:01 p.m. Respectfully submitted, Susan M. Baron in the absence of Judith A. Hearn Assistant Executive Director Secretary to PRM Board 5 MARCH 13, 2009 @ 10:00 A.M. Avon Park, City of Barron Water Control District 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 Gulf County BOCC Gulfport, City of Hardee County BOCC Hendry County BOCC Highlands County BOCC m�e( PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING Revd Annual eports LAKELAND, FLORIDA athy Be Lester gird Sarah Adelt J. P. Murphy Vivian Hun Steve Baumgartner Ted Byrd "V l June Shivers Susan Lee Arrie Patrick Margaret Bosack Laurie Lindsey LindpStilsp� Paul Erickson heppard Ann Isaacs Phyllis Kirk Deena Ware Robert Giesler c v— Denise Manuel Ricky Helms Mary Ann Dotson Don Butler Danny Weeks Holmes County BOCC Indian Rocks Beach, City of Kenneth City, Town of LaBelle, City of Lady Lake, Town of eC: 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 Revd Annual , p, ICU Monty Merchant 41)1,41uusa,( vlAvh Maur Kiefer Eliza eth Atkinson Sherry Fitzpatrick Nancy Beelman Muriel H. Whitman Michael Boyle Lisa Smith hields hn Litton Dawn Jackson Maxine Brantley )c, Jeff Sutton /tip( Stev Gai breath Robbie Chartier Bill Vance Jacqueline Sova Phil Williams Robert Zega Jacqueline Martin Thomas Kelley Melissa Arnold Thomas O'Neill Sherry Borgsdorf Brian Whitehall Lyndon Bonner Oviedo, City of Pahokee, City of Port Richey, City of Punta Gorda, City of Safety Harbor, City of Sarasota/Manatee Airpo 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 Rcvd Annual Reports Connie Collins Derrek Moore Keith Straw Stephanie Marsh - Corinthian l ecog Shi Phil Wick om .2 Cot Dan Andrews David Davis cp (6N2 Crissy Bublitz Frank Gilbert David Drury Alan Zimmet John Schussler Mike Eastman Mike Bonfield Ileana artinez Lori Tucker Kim D. Leinbach Terri Svendsen Peggy Carpenter Rick Moore GUESTS / ADDITIONAL ATTENDEE SIGN IN SHEET ♦ ♦ ♦ MARCH 13, 2009 Name Entity / Company Signature L' f 6-11.' tv\A- -1\1 o ) T 1 f V 4 e / Co (3 2. TREASURER'S REPORT AS OF 3/31/09 PUBLIC RISK MGMT OF FL BALANCE SHEET MARCH 31, 2009 CURRENT ASSETS PETTY CASH $ 75.00 OPERATING - BB & T 62,502,895.50 A/R MEMBERSHIPS (545,585.91) A/R TRADE 3,218.46 A/R - PRM GR HI,TH (69,988.80) A/R CONSULTANT FEE - MEMBERS 2,083.42 AIR- REINSURANCE RECOVERIES (4,434,187.35) A/R OTHER 2,254.66 A/R -STATE W/C ASSESSMENT 354,136.63 A/R- APPRAISALS 767.00 A/R - ADDITIONAL INSURANCE 501.21 A/R - SCHOLARSHIP PROGRAM 8,705.00 DUE FROM MEMBERS 1,750,000.00 STATE ADMIN. FUND 1,957.64 TOTAL CURRENT ASSETS 59,576,832.46 PROPERTY AND EQUIPMENT FURNITURE & FIXTURES 33,422.72 LESS: ACCUM. DEPRECIATION (32,649.79) OFFICE MACHINES & EQUIPMENT 63,981.28 LESS: ACCUM. DEPRECIATION (44,881.02) AUTOMOBILE 116,538.79 ACCUMULATED DEPRECIATION (51,547.93) TOTAL PROPERTY & EQUIPMENT 84,864.05 OTHER ASSETS PREPAID INSURANCE 483,584.90 PREPAID FLOOD INSURANCE 94.49 PREPAID EXPENSES 24,634.79 DEFER MEMBER CONTR - 1987 -89 183,808.00 DEFER MEMBER CONTR- 1989 -90 295,679.00 DEPOSITS 5,665.06 TOTAL OTHER ASSETS 993,466.24 TOTAL ASSETS $ 60,655,162.75 LIABILITIES ACCOUNTS PAYABLE $ (112,482.74) A/P - GALLAGHER/RISX -FACS 200,921.47 FEDERAL TAXES PAYABLE 3,288.79 PEBSCO PAYABLE 638.26 A/P EMP LIFE INS 539.37 A/P - OTHER 4,840.49 A/P - LOSS PREVENTION 14,933.73 ACCRUED VACATION 41,121.55 DEFERRED REVENUE 7,318,510.92 ADVANCE FROM REINSURER 7,111,805.45 CLAIMS PAYABLE - 1987 -89 69,403.27 CLAIMS PAYABLE - 1990 -91 (9,208.36) CLAIMS PAYABLE - 1991 -92 (2,071.94) CLAIMS PAYABLE - 1992 -93 71,642.82 CLAIMS PAYABLE - 1993 -94 34,402.55 CLAIMS PAYABLE - 1994 -95 38,015.43 CLAIMS PAYABLE - 1996/97 85,877.55 CLAIMS PAYABLE - 1997/98 (1,569,747.87) CLAIMS PAYABLE - 1998/99 (56,073.95) CLAIMS PAYABLE - 1999/00 (70,018.79) CLAIMS PAYABLE - 2000/01 (170,918.37) CLAIMS PAYABLE - 2001/02 (177,177.34) CLAIMS PAYABLE - 2002/03 578,215.95 CLAIMS PAYABLE - 2003/04 633,553.90 CLAIMS PAYABLE - 2004/05 1,077,879.89 CLAIMS PAYABLE - 2005/06 2,468,638.92 CLAIMS PAYABLE - 2006/08 11,577,946.23 CLAIMS PAYABLE - 2008/09 6,731,428.37 NONCURRENT CLAIMS PAYABLE (14,495,419.00) PUBLIC RISK MGMT OF FL BALANCE SHEET MARCH 31, 2009 SUSPENSE - CLEARING ACCOUNT 14,495,419.00 TOTAL LIABILITIES CAPITAL FUND BALANCE REVENUE IN EXCESS OF EXPENSE TOTAL CAPITAL TOTAL LIABILITIES & CAPITAL 31,011,685.08 (6,252,427.88) 35,895,905.55 24,759,257.20 $ 60,655,162.75 REVENUES MEMBERSHIP ASSESSMENTS INTEREST INCOME MISCELLANEOUS INCOME TOTAL REVENUES EXPENSES OFFICERS' SALARIES OFFICE SALARIES PAYROLL TAXES EMPLOYEE RETIREMENT BENEFITS HEALTH INSURANCE- OFFICER HEALTH INSURANCE- OFFICE LIFE INSURANCE- OFFICER LIFE INSURANCE- OFFICE LTD INSURANCE LEGAL FEES LEGAL -PRE- DEFENSE AUDIT FEES ACTUARIAL STUDY WORKERS COMP CLAIMS AUDIT APPRAISAL FEE EXPENSE AUTO EXPENSE AUTOMOBILES- REPLACEMENT TRAVEL EXPENSE ASSOCIATION MEMBERSHIPS DUES & SUBSCRIPTIONS EDUCATION /TRAINING /CONFER. OFFICE LEASE JANITORIAL / CLEANING OFFICE /COMPUTER EQUIPMENT ELECTRIC WATER/TRASH TELEPHONE TEMPORARY LABOR COPY MACHINE LEASE REPAIRS & MAINT. - EQUIPMENT OFFICE SUPPLIES NEWSLETTER POSTAGE PRINTING LOSS PREV EQUIP & SUPPLIES MARKETING & PROMOTION MEETING EXPENSE MISCELLANEOUS EXPENSE CONFERENCE MEMBER ROOM EXPENSE TRAINING /SEMINAR PRESENTATION APPRAISAL FEE EXPENSE WEB SITE MAINT. INSURANCE CONSULTANT RISX FACS FEES DEPRECIATION EXPENSE TOTAL EXPENSES REVENUE IN EXCESS OF EXPENSE PUBLIC RISK MGMT OF FL INCOME STATEMENT FOR THE SIX MONTHS ENDING MARCH 31, 2009 CURRENT MONTH $ (58,181.75) 17,468.13 510.43 (40,203.19) 13,548.65 46,212.55 4,874.36 5,167.81 1,569.37 9,491.39 81.78 179.71 1,121.34 1,500.00 0.00 20,300.00 0.00 0.00 1,437.50 44.49 0.00 3,710.89 182.00 269.00 0.00 6,376.24 646.80 2,062.50 0.00 0.00 1,636.37 0.00 203.00 0.00 1,277.31 0.00 1,924.04 0.00 1,213.90 0.00 2,655.84 1.00 0.00 0.00 0.00 0.00 18,166.67 0.00 0.00 145,854.51 YEAR TO DATE 8,990,476.45 233,321.64 510.43 9,224,308.52 73,571.44 247,815.28 23,320.33 33,930.83 9,416.22 57,587.05 490.68 241.09 6,691.23 10,942.29 0.00 28,000.00 37,567.25 0.00 1,437.50 839.54 3,858.00 19,972.40 663.25 1,753.80 882.95 38,257.44 1,836.80 10,849.97 0.00 0.00 9,168.76 0.00 1,218.00 1,242.58 9,889.92 832.50 4,837.77 4,576.00 7,478.88 59.92 6,808.74 1,811.54 0.00 410.20 0.00 0.00 109,000.02 0.00 0.00 767.260.17 $ (186,057.70) $ 8,457,048.35 STAFFING PUBLIC RISK MGMT OF FL EXPENSES TO BUDGET 04/01 /09 - 03/31 /10 FOR THE TWELVE MONTHS ENDING MARCH 31, 2009 MONTHLY MONTHLY Y -T -D Y -T -D TOTAL YEAR % of YTD ACTUAL BUDGET ACTUAL BUDGET BUDGET ACTUAL SALARY RELATED EXPENSES OFFICER'S' SALARIES 13,548.65 11,686.00 140,141.03 105,174.00 140,232.00 99.94% OFFICE SALARIES 46,212.55 47,097.25 533,518.95 423,875.25 565,167.00 94.40% PAYRLL TAXES 4,874.36 4,501.25 51,082.36 40,511.25 54,015.00 94.57% EMPLOYEE RETIREMENT BENEFIT; 5,167.81 6,042.00 56,814.36 54,378.00 72,504.00 78.36% HELATH INSURANCE- OFFICER 1,569.37 1,783.00 17,943.18 16,047.00 21,396.00 83.86% HEALTH INSURANCE- OFFICE 9,491.39 10,375.00 112,536.55 93,375.00 124,500.00 90.39% LIFE INSURANCE- OFFICER 81.78 83.67 970.92 753.00 1,004.00 96.71% LIFE INSURANCE- OFFICE 179.71 167.92 2,134.48 1,511.25 2,015.00 105.93% LTD INSURANCE 1,121.34 1,005.25 14,823.89 9,047.25 12,063.00 122.89% TOTAL SALARY RELATED EXPENSE 82,246.96 82,741.33 929,965.72 744,672.00 992,896.00 93.66% GENERAL EXPENSES LEGAL FEES 1,500.00 1,250.00 21,257.74 11,250.00 15,000.00 141.72% LEGAL -PRE DEFENSE 0.00 416.67 0.00 3,750.00 5,000.00 0.00% AUDIT FEES 20,300.00 2,583.33 32,300.00 23,250.00 31,000.00 104.19% ACTUARIAL STUDY 0.00 1,250.00 37,567.25 11,250.00 15,000.00 250.45% APPRAISAL FEE EXPENSE 1,437.50 481.25 5,750.00 4,331.25 5,775.00 99.57% AUTO EXPENSE 44.49 400.00 4,980.83 3,600.00 4,800.00 103.77% TRAVEL - EXPENSE 3,710.89 2,500.00 46,817.38 22,500.00 30,000.00 156.06% ASSOCIATION MEMBERSHIPS 182.00 166.67 1,052.25 1,500.00 2,000.00 52.61% DUES & SUBSCRIPTIONS 269.00 266.67 1,968.80 2,400.00 3,200.00 61.53% EDUCATION/TRAINING /CONFER 0.00 2,500.00 19,917.85 22,500.00 30,000.00 66.39% OFFICE LEASE 6,376.24 6,311.33 75,586.28 56,802.00 75,736.00 99.80% JANITORIAUCLEANING 646.80 316.67 3,656.80 2,850.00 3,800.00 96.23% OFFICECOMPUTER EQUIPMENT 2,062.50 1,500.00 22,496.16 13,500.00 18,000.00 124.98% TELEPHONE 1,636.37 2,166.67 19,835.44 19,500.00 26,000.00 76.29% COPY MACHINE LEASE 203.00 250.00 2,436.00 2,250.00 3,000.00 81.20% REPAIRS & MAINT. - EQUIPMENT 0.00 166.67 0.00 1,500.00 2,000.00 0.00% OFFICE SUPPLIES 1,277.31 1,166.67 19,880.34 10,500.00 14,000.00 142.00% NEWSLETTER 0.00 333.33 2,497.50 3,000.00 4,000.00 62.44% POSTAGE 1,924.04 1,083.33 10,304.48 9,750.00 13,000.00 79.27% PRINTING 0.00 166.67 4,719.17 1,500.00 2,000.00 235.96% INSURANCE- FLOOD /GENERAL 0.00 250.00 0.00 2,250.00 3,000.00 0.00% LOSS PREV EQUIP & SUPPLIES 1,213.90 1,833.33 11,568.88 16,500.00 22,000.00 52.59% MARKETING & PROMOTION 0.00 375.00 966.93 3,375.00 4,500.00 21.49% MEETING WXPENSE 2,655.84 2,008.33 12,732.20 18,075.00 24,100.00 52.83% MISCELLANEOUS EXPENSE 1.00 208.33 3,568.63 1,875.00 2,500.00 142.75% CONFERENCE MEMBER ROOM EX! 0.00 631.33 6,938.00 5,682.00 7,576.00 91.58% TRAINING /SEMINAR PRESENTATIOI 0.00 333.33 424.20 3,000.00 4,000.00 10.61% WEB SITE MAINT 0.00 400.00 0.00 3,600.00 4,800.00 0.00% INSURANCE CONSULTANT 18,166.67 18,166.67 218,000.04 163,500.00 218,000.00 100.00% TOTAL GENERAL EXPENSES 63,607.55 49,482.25 587,223.15 445,340.25 593,787.00 98.89% TOTAL OPERATING EXPENSES 145,854.51 132,223.58 1,517,188.87 1,190,012.25 1,586,683.00 95.62% PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING June 19, 2009 REGULAR AGENDA SUMMARY 3. Executive Director's Report Ross Furry A. 2009 Florida Legislative Changes to Attorney's Fees — HB903 Attached is the 2009 Florida Legislature's answer to the attorney's fees issue which arose in the Emma Murray Supreme Court decision in the Fall of 2008. As you will recall, claimant's attorney's fees were limited effective 10/01/2003 to a percentage of benefits secured, not an hourly rate (except in medical only cases and then capped the cumulative fee available based on hours at $1,500.00). The Emma Murray decision effectively eliminated the percentage of benefits secured only fees, and re- opened the window for uncapped hourly fees in all cases (as was the law pre- 10/01/2003). In response, the 2009 Legislature closed the window again on uncapped hourly fees and "fixed" the problems cited by the Emma Murray Court. The bill, HB903, has been enrolled and Governor Grist's signed the Bill into law on 5/29/09. Attorney fees will be limited based upon the value of the benefits secured. "Reasonable" hourly fees will not be available to claimant's attorneys, except in medical -only claims where they are capped at $1,500.00. The effective date of the law is 7/1/09. As a result of the new law's effective date, there likely will be an influx of petitions filed prior to 7/1/09. B. Mega- Trends Influencing the Workers' Comp Insurance Industry The attached article examines four mega- trends that self- insured employers should understand. They are: 1. Medical Claim Cost Inflation 2. Indemnity Claim Cost Inflation 3. The Aging Workforce 4. The Obesity Epidemic 3.A. 2009 FL LEGISLATIVE CHANGES TO ATTORNEY FEES - HB903 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 1 2 3 4 5 6 7 8 ENROLLED CS /HB 903 2009 Legislature A bill to be entitled An act relating to attorney's fees in workers' compensation cases; amending s. 440.34, F.S.; clarifying requirements for the payment of fees and costs under a retainer agreement; specifying the amount of attorney's fees which a claimant is entitled to recover from a carrier or employer; providing an effective date. 9 Be It Enacted by the Legislature of the State of Florida: 10 11 12 read: 13 440.34 Attorney's fees; costs.- - 14 (1) A fee, gratuity, or other consideration may not be 15 paid for a claimant in connection with any proceedings arising 16 under this chapter, unless approved as reasonable by the judge 17 of compensation claims or court having jurisdiction over such 18 proceedings. Any attorney's fee approved by a judge of 19 compensation claims for benefits secured on behalf of a claimant 20 must equal to 20 percent of the first $5,000 of the amount of 21 the benefits secured, 15 percent of the next $5,000 of the 22 amount of the benefits secured, 10 percent of the remaining 23 amount of the benefits secured to be provided during the first 24 10 years after the date the claim is filed, and 5 percent of the 25 benefits secured after 10 years. The judge of compensation 26 claims shall not approve a compensation order, a joint 27 stipulation for lump -sum settlement, a stipulation or agreement 28 between a claimant and his or her attorney, or any other Page 1 of 5 Section 1. Section 440.34, Florida Statutes, is amended to CODING: Words ctricken are deletions; words underlined are additions. hb0903 -02 -er F L O R I D A H O U S E O F R E P R E S E N T A T I V E S ENROLLED CS /HB 903 2009 Legislature 29 agreement related to benefits under this chapter which that 30 provides for an attorney's fee in excess of the amount permitted 31 by this section. The judge of compensation claims is not 32 required to approve any retainer agreement between the claimant 33 and his or her attorney. The retainer agreement as to fees and 34 costs may not be for compensation in excess of the amount 35 allowed under this subsection or subsection (7) scction. 36 (2) In awarding a claimant's attorney's fee, the judge of 37 compensation claims shall consider only those benefits secured 38 by the attorney. An attorney is not entitled to attorney's fees 39 for representation in any issue that was ripe, due, and owing 40 and that reasonably could have been addressed, but was not 41 addressed, during the pendency of other issues for the same 42 injury. The amount, statutory basis, and type of benefits 43 obtained through legal representation shall be listed on all 44 attorney's fees awarded by the judge of compensation claims. For 45 purposes of this section, the term "benefits secured" does not 46 include future medical benefits to be provided on any date more 47 than 5 years after the date the claim is filed. In the event an 48 offer to settle an issue pending before a judge of compensation 49 claims, including attorney's fees as provided for in this 50 section, is communicated in writing to the claimant or the 51 claimant's attorney at least 30 days prior to the trial date on 52 such issue, for purposes of calculating the amount of attorney's 53 fees to be taxed against the employer or carrier, the term 54 "benefits secured" shall be deemed to include only that amount 55 awarded to the claimant above the amount specified in the offer 56 to settle. If multiple issues are pending before the judge of Page 2 of 5 CODING: Words stricken are deletions; words underlined are additions. hb0903 -02 -er F L O R I D A H O U S E O F R E P R E S E N T A T I V E S ENROLLED CS /HB 903 2009 Legislature 57 compensation claims, said offer of settlement shall address each 58 issue pending and shall state explicitly whether or not the 59 offer on each issue is severable. The written offer shall also 60 unequivocally state whether or not it includes medical witness 61 fees and expenses and all other costs associated with the claim. 62 (3) If any party should prevail in any proceedings before 63 a judge of compensation claims or court, there shall be taxed 64 against the nonprevailing party the reasonable costs of such 65 proceedings, not to include attorney's fees. A claimant is shall 66 be responsible for the payment of her or his own attorney's 67 fees, except that a claimant is shall be entitled to recover an 68 a rcasonablc attorney's fee in an amount equal to the amount 69 provided for in subsection (1) or subsection (7) from a carrier 70 or employer: 71 (a) Against whom she or he successfully asserts a petition 72 for medical benefits only, if the claimant has not filed or is 73 not entitled to file at such time a claim for disability, 74 permanent impairment, wage -loss, or death benefits, arising out 75 of the same accident; 76 (b) In any case in which the employer or carrier files a 77 response to petition denying benefits with the Office of the 78 Judges of Compensation Claims and the injured person has 79 employed an attorney in the successful prosecution of the 80 petition; 81 (c) In a proceeding in which a carrier or employer denies 82 that an accident occurred for which compensation benefits are 83 payable, and the claimant prevails on the issue of 84 compensability; or Page 3 of 5 CODING: Words s#iislkee are deletions; words underlined are additions. hb0903 -02 -er F L O R I D A H O U S E O F R E P R E S E N T A T I V E S ENROLLED CS /HB 903 2009 Legislature 85 (d) In cases where the claimant successfully prevails in 86 proceedings filed under s. 440.24 or s. 440.28. 87 88 Regardless of the date benefits were initially requested, 89 attorney's fees shall not attach under this subsection until 30 90 days after the date the carrier or employer, if self - insured, 91 receives the petition. 92 (4) In such cases in which the claimant is responsible for 93 the payment of her or his own attorney's fees, such fees are a 94 lien upon compensation payable to the claimant, notwithstanding 95 s. 440.22. 96 (5) If any proceedings are had for review of any claim, 97 award, or compensation order before any court, the court may 98 award the injured employee or dependent an attorney's fee to be 99 paid by the employer or carrier, in its discretion, which shall 100 be paid as the court may direct. 101 (6) A judge of compensation claims may not enter an order 102 approving the contents of a retainer agreement that permits 103 placing the escrowing of any portion of the employee's 104 compensation into an escrow account until benefits have been 105 secured. 106 (7) If an attorney's fee is owed under paragraph (3)(a), 107 the judge of compensation claims may approve an alternative 108 attorney's fee not to exceed $1,500 only once per accident, 109 based on a maximum hourly rate of $150 per hour, if the judge of 110 compensation claims expressly finds that the attorney's fee 111 amount provided for in subsection (1), based on benefits 112 secured, fails to fairly compensate the attorney for disputed Page 4 of 5 CODING: Words stricken are deletions; words underlined are additions, hb0903 -02 -er F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 113 114 115 ENROLLED CS /HB 903 2009 Legislature medical -only claims as provided in paragraph (3)(a) and the circumstances of the particular case warrant such action. Section 2. This act shall take effect July 1, 2009. Page 5 of 5 CODING: Words stricken are deletions; words underlined are additions. hb0903 -02 -er 3.B. MEGA - TRENDS INFLUENCING WC INSURANCE INDUSTRY Volume 10. No. 2. August. 2000 idwest 4t.i.RR6 - ?1' f 4. '4%1' Mega-Trends Influencing the Workers' Comp Insurance Indus By Linda Howell Assistant Vice President of Actuarial Source: Steven N. Nkisbart Ph.D. au, We President and Chief Economist Insurance Information Institute INTRODUCTION I >inda lice et Assistant vice President of Actuarial Insurance actuaries and analysts devote a great deal of time to examining historical data and information. This combined with forward thinking and identification of anticipated trends often yields great insight into future conditions. Businesses who recognize and are Earlier this year, Dr. Steven Weisbart, Vice President and Chief Economist with the Insurance Information Institute, made a presentation entitled. "Mega -Trends Influencing the Workers Compensation Insurance Industry" at the 5th Annual National Workers' Compensation Insurance ExecuSummit in New York, New York. Businesses who recognize and are prepared to manage or capitalize lglon industry trends and conditions are those who gain competitive advantages in the marketplace and enjoy grcatcrhrT)fto ilitY over the long teen. prepared to manage or capitalize upon these trends and conditions are those who gain competitive advantages in the marketplace and enjoy greater profitability over the long term. It is with Dr. Weisbart's permission that Midwest Employers Casualty Company is pleased to share the highlights of his presentation in this edition of our Self- Insurance Bulletin. AI-idit'csr En n'layers Casualty Company: Self-Insurance Bulletin Of the mega trends presented, there are four that self- insured employers should understand. These are; 1. Medical Claim Cost Inflation 2. Indemnity Claim Cost Inflation 3. The Aging Workforce 4. The Obesity Epidemic Let's examine each of these four mega- trends in more detail. MEGA -TREND #1 MEDICAL CLAIM COST INFLATION. The first workers' compensation mega trend is rooted in the observation that workers' compensation medical severity is rising far faster than the jt iS ,iOt :5/uprising that lrlcdical costs as a percentage Of total COStS arc i.lic,rea Stiig steadily. I rl l 986, medical costs comprised an cstin rated 45% of total COStS; in 2006, medical costs accounted i ted for 59% of total costs. medical consumer price index (CPI). Examining data from the U.S Bureau of Labor Statistics and the National Council on Compensation insurance from 1995 to 2006, workers' compensation medical severity rose 8.8% versus 4.0 %. This was more than twice as fast as the medical CPI. rrr ?d11 f75 .'016 1! I 2011+ Estimate It is not surprising that medical costs as a percentage of total costs are increasing steadily. In 1986, medical costs comprised an estimated 45% of total costs; in 2006, medical costs accounted for 59% of total costs. The Insurance Information Institute projects that workers compensation medical costs will equal 70% of total workers' compensation costs by 2016 if these trends continue. Claims management will become more difficult and complex but will be more important than ever under these conditions. MEGA -TREND #2 INDEMNITY CLAIM COST INFLATION. The second workers' compensation mega trend is based on indemnity claim cost inflation. Workers' compensation indemnity daims costs have accelerated. According to NCCI, from 1991 to 1996, the annual change in indemnity claims costs was 1.2 %; from 1997 to 2005, the annual change had increased to 6.6 %. This resulted in a cumulative change of 108.5% during this timeframe. Workers' compensation indemnity severity is once again outpacing wage inflation. MEGA -TREND #3 THE AGING WORKFORCE The third mega trend that bears watching is the impact of an aging workforce. Based on data from the U.S. Census Bureau, it is projected that there will be nearly as many +85 year old people in 2025 as there are 70-74 year old (11 people today. The question becomes how does this mega -trend apply to workers' compensation. • _,1 MAO The labor force participation rate for older workers is expected to grow in the future as seniors find they cannot fully retire on their retirement savings. The labor force participation rate for workers' 70 to 74 years of age has grown by about 50% since 1998 according to the U.S. Bureau of Labor Statistics, the U.S. Department of Labor and the Insurance Information Institute. Midwest Employers Casual (q Command: Self-Insurance Bulletin Information from the U.S Bureau of Labor Statistics, U.S. Department of Labor shows that tU , • • workers 65 year of workers age future will have accommodate tl In addressing the can expect little ■ Medicare law ha tit Yn..±yp err> u+. xce makxt compensation in for workers whc Medicare, it will r it, I:,;, pi a ti r1 t f r ,..t` Is s• N14 a.. ,.�_. ` 1 l\ !O 14,4 Af•!1 ri4 *4. K. older workers have more lost time from work due to injury or illness. For example, the median lost time of workers over the age of 65 is 50% greater than workers between the ages of 35 to 44 years old. Statistics also show that the fatality rate for s of age and older is triple that 35 to 44. The workplace of the to be completely redesigned to e surge in older workers. aging workforce, businesses no help from Medicare. long specified that if workers compensation is available, (Medicare will pay nothing. Medicare will pay if costs remain after all workers' compensation medical benefits are exhausted Furthermore, if Medicare does pay a bill, it has a right of recovery from the employer or workers' carer. Medicare is worried that are covered by or eligible for be stuck with costs shifted from those responsible for paying workers' compensation costs. In those cases, Medicare will likely want to review and may disapprove workers' compensation settlements, if it believes there is insufficient workers' compensation money to pay for future medical costs. This may align Medicare with workers and against employers and workers' compensation insurers. Increased workers' compensation administration costs could be expected in this environment. Another question centers on the effect work- ers' compensation claims would have on social security retirement income. When a social security disability income recipient reaches the full benefit retirement age, the disability benefit becomes a retirement benefit. Social security retirement income is not offset for workers' compensation indemnity payments. In essence, disabled workers age 66 and over could collect both. Many raise the question as to whether this creates a moral hazard. MEGA -TREND #4 THE OBESITY EPIDEMIC. The fourth mega trend that is currently and will continue to impact workers' compensation is U.S workers are becoming more and more obese. The Journal of the American Medical Association reported that extremely obese workers file twice as many workers' compensation claims as healthy- ob..ih Trends• Among U.B. AduK. ARJS' 29'fl 1944 2046 weight workers. Similarly, obese workers have 13 times more lost workdays than healthy weight workers. Indemnity costs are 11 times higher for the most obese workers than for healthy weight workers. Wellness and lifestyle management programs are likely to Midwest Employers Casualty Company: Self- Insurance Bulletin play an even more prominent role in the workplace in the future. SUMMARY In summary, trends in medical and indemnity costs are worrisome. Preventing accidents and controlling costs through aggressive Toss control and claims management must continue to play a predominant role within virtually all organizations. Of significant importance, the aging of the population and the obesity epidemic could cause workers' compensation claims to explode. Those employers who recognize these trends and Midwest Employers Casuahy Company A Member Company of the W.& Berkley Corporation 14755 North Outer Folly Drive, Suite 300 Chesterfield, Missouri 63017 httP://www.rnwecc.corn 1.877.WRK.CCVv1P are prepared to manage these conditions are those who will succeed over the long term. At Midwest Employers Casualty Company, we are prepared to work with employers to develop effective strategies aimed at combating these and other developing trends within the business environment. For a complete copy of Dr. Weisbart's presentation, "Mega- Trends Influencing the Workers' Compensation Insurance Industry" contact Dr. Weisbart at the Insurance Information Institute at 212.346.5540, stevenwOiii.org, or visit www.iii.org. For more information regarding how Midwest Employers Casualty Company can assist your organization, contact Steve Link at 1.877.WRK.COMP or via email at slink@ mwecc.com. 014 PRSRT STD AUTO U.S. POSTAGE PAID CLEARWATER, FL PERMIT NO. 375 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING June 19, 2009 REGULAR AGENDA SUMMARY Executive Director's Report continued C. Member Notices to Withdraw 3/31/10 The following submitted notices to withdraw effective 3/31/10: City of Avon Park* City of Brooksville* City of Crystal River DeSoto County BOCC City of Eustis* Hendry County BOCC Hendry County Sheriff Holmes County BOCC* Town of Lady Lake City of Lake Placid City of Okeechobee City of Pahokee City of Punta Gorda City of Tavares *submitted notice more than once during 3 -year period D. 2010 PRM Educational Conference — Discussion on Location PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING June 19, 2009 REGULAR AGENDA SUMMARY 4. Broker's Report A. WRM Strategic Marketing Plan Attachment World Risk Management 5. Legal Counsel Donovan Roper A. Request Board of Directors Action on Amendments to PRM By -Laws Attachment Board Action: Approved Denied Deferred Other 4.A. WRM STRATEGIC MARKETING PLAN (Ao o 6.A 6f,41 /f/t — c.4":1) ■vt.,i (A, /92,L, / CA, t/AA i ct I RISK MANAGEMENT, LLC May 28, 2009 Dear Ross, PRM Board Member, Re: Strategic Marketing Plan Recommendations As discussed at the March Board of Directors meeting there are many exciting changes proposed for the marketing and expansion of PRM. We feel we were very successful at keeping the competition at bay when they targeted the members who had given notice and went out to bid. We were able to explain the advantages of the PRM Program, the superior coverage and services provided. The restrictive coverage, and in some cases the lack of coverage, in the competitor's programs certainly make PRM the superior program in the marketplace at a comparable, if not better, price. We have further discussed with you and the Executive Committee the need to make several important changes to allow us to obtain the goals you have put in place for us, namely, the growth of PRM. With the competition actively targeting PRM members we are all aware that PRM needs to grow. Even with the aggressive marketing plan we are putting in place PRM will still remain the same Association to the core, existing membership. Some of the changes we have identified require amendments to the By -Laws. The following explains what changes we have identified and why we feel they are important. Following these changes are highlights from our marketing plan that we are putting into place as well as the property extension we are recommending: By -Law Changes • Establish two tiers of Membership, Preferred Member and Standard Member. Prospective members are often put off by the initial 2 year commitment as well as the one year notice period. In addition, they do not necessarily wish to purchase all lines of coverage. These items are also highlighted by the insurance consultants hired to help with the RFP process. Often, they will concentrate on these issues as deficiencies of the PRM Program rather than the better coverage /service provided by PRM. The competition also uses the scare tactic that if a one year notice is not given to PRM then PRM may increase the costs at the next renewal by a large amount and the Member would have no option but to live with it. While we know this is not how PRM operates it has an effect on prospects. As such we feel it is best to offer a Standard Membership where not all lines of coverage have to be purchased, nor is the 2 year commitment and one year notice mandatory. However, a Standard Member would not have voting rights, 141 Terra Mango Loop. Suite A, Orlando, FL 32835 (407) 445 -2414 Phone (407) 445 -2868 Fax (888) 501 -0014 Toll Free www.wrmllc.com RISK MANAGEMENT, LLC nor would they be able to receive participation credits that the membership has enjoyed in the past. Existing Members would automatically be afforded Preferred Membership status and enjoy the extra benefits that are provided in return for the commitment made to PRM. The proposed Benefits and responsibilities of the two types of membership are as follows: o Preferred Membership Benefits Rate increases capped at 20% for those members who have not given the one year notice. (may change to 10% for all lines other than property which is 25 %, or something similar) Participation credits made available to Preferred Members only. Receive all loss control & risk management services. No registration fee or room cost at annual education conference. All current membership grandfathered in. Able to be elected to the Executive Board. Representation on the PRM Board of Directors. Responsibilities Purchase all lines package product. One year notice requirement remains. If notice is given more than twice in a five year period no longer eligible for Preferred Membership. Eligible to new Members only with over $250,000 in funding per year. o Standard Membership Benefits Ability to unbundle coverage. One year notice not required. Receives of loss control & risk management services, although at a reduced level than the Preferred Members. Additional services are available at a pre- determined cost. Responsibilities 45 day notice of intent not to renew. Purchase of standard insurance policies. • Develop a more responsive and flexible ability to respond to changes in the insurance marketplace as well the increased activity of the competitor pools in Florida. At the moment, any changes in the PRM Program have to be agreed by a majority of the Board of Directors which only meets four times a year. Recently, this has proved to be 141 Terra Mango Loop. Suite A, Orlando, FL 32835 (407) 445 -2414 Phone (407) 445 -2868 Fax (888) 501 -0014 Toll Free www.wrmllc.com RISK MANAGEMENT, LLC detrimental with changing market conditions coupled with the competition actively targeting PRM members. In addition, with the expectations of growth that we have been directed to achieve, it is impractical to have policy decisions made by a Board of 75 or more members. The larger membership will also make it more difficult to ensure a Quorum is in attendance. To this end we have discussed broadening the responsibilities of the Executive Board and at the same time enlarging the Executive Board from 5 members to 7 members. Enlarging the Executive Board will ensure all members continue to be represented and that there is still a broad consensus of opinion. This change will call for two new Executive Board members to be elected in addition to the Election of Officers that will take place at the June Board of Directors meeting. • Amend the PRM territory to the whole of Florida. PRM is still concentrated in the south west and middle part of the state. There are many prospects outside of these areas that are interested in joining PRM. As these ne prospects are not in member populated areas they are more attractive to insurance carriers as they provide a better spread of risk. This means new members can be added without increasing a carriers potential exposure to Toss. At this stage we do not anticipate moving heavily into the new territory areas, but it will enable us to spread the overall risk of PRM, with possibly lowering costs, while at the same time expanding the membership. Non By -Law Changes There are several changes which we are recommending in helping grow PRM which do not require changes to the By -Laws. These changes are: • Allow Standard Members to unbundle coverage. This can benefit both the prospect and PRM. Some prospects may self- insure a line of coverage, or they may not want to move all of their coverage to a new carrier. This option allows them to look at PRM as a potential market whereas before only FMIT and PGIT allowed unbundling. In addition, this helps with consultants a prospect may hire as historically they have criticized PRM's "all or nothing" approach. There are times when a prospects coverages renew at different times which makes it impossible to move all lines to PRM at the same stage. Conversely, it may benefit PRM to accept some members by providing only one or two lines of coverage. For example, a prospect may have a very good property schedule but their WC losses may be high. This will allow PRM to work with the new member on reducing the WC losses before actually insuring them. • Expand the types of entities /members that PRM accepts. There are some classes of public entity that PRM does not accept for membership right now, such as school boards and other special taxing districts, which we feel would help with the expansion of PRM. School boards tend to have better property schedules than most public entities and as 141 Terra Mango Loop. Suite A, Orlando, FL 32835 (407) 445 -2414 Phone (407) 445 -2868 Fax (888) 501 -0014 Toll Free www.wrmllc.com RISK MANAGEMENT, LLC such they are liked by carriers. With the ability to add entities such as schools as a Standard Member we feel there are only benefits to PRM. Property Policy Extension We have the option to extend the property policy to 14 months, renewing June 1, 2010. We feel this is a very good option as every indication we are seeing has the property premiums increasing substantially as the year goes on, and this is before the hurricane season. Renewing the property June 1 still has the renewal negotiations being conducted outside of the hurricane season, which keeps true to the reason we moved to an April 1 renewal date. Marketing & Branding With all of the changes being made we felt this was a good time to look at the PRM logo and website. Both have been around for many years and we feel a fresh look to both will help as PRM looks to expand over the next few years. WRM is offering assistance to make the website more user friendly, as well as installing links to our website. For the logo, we have developed several options which have been reviewed by the Executive Board. We feel the logos are more current and representative of the breadth of PRM's operations. We are open to discussion on both of these items. WRM is working with both a marketing team and several local agents with the goal of expanding the PRM membership. Draft marketing brochures have been developed and a marketing plan is being put in place subject to the changes that have been recommended above. We realize there are many changes to be taken on board and we feel these changes are necessary if PRM is to grow rather than be eroded by the competition. We are available to discuss with any member the contents of this letter to ensure all questions are answered before the Board Meeting in June. Sincerely, , qiclutf2/-q--9„., e „........_. Andy Cooper Michele Jones Sonia Fatheree Vice President Managing Director /President Vice President of Account Services 141 Terra Mango Loop. Suite A, Orlando, FL 32835 (407) 445 -2414 Phone (407) 445 -2868 Fax (888) 501 -0014 Toll Free www.wrmllc.com • p D 2 T N v M 0 -z < y. 3 m 0 D `D N 0 D . • 3 n '7 m Q N CD y D N n -0 a 0 _ (D Q Q C N .R 5. • n , ' m (0 -< Q 90 3 D N Q D n cD 9u1110H IU3W8Da0}u3 MDR JnoH -17Z SOD!AJOS 1uowo6ouow lS!I IT :r1-7‘30-0 0-0 Q O N < g (D (11:0- O D C o n C n CD s, m Q. 0c o 0 0 ? cD rn 0 0- o N -. s c -t o< D p o- N 7 o m m 0 .. m -• cn N p w 3 0(0 S N 3 J n 3 D s 1 D s 0 Q-a 0 m 2 n 0 y �. Q cn D 0 0 F1' p 0 S 3 "'` p' n Q x �c _3. F. -1 0• N• N N iD S Q C �` TA' N-. a N co N a s 3 N o x. 0 3 9 7 N 7 • 0 (D N 0 T aa N C .b p 0 Q 5' ..< 0 -a -.,sX n 0 0 N („7,,• n' c• 0 0 0 �G Q Q 7 E- — -< o E- rn.- o n N 3 ?' 0 Q 0 Q o Q -0 0_ (D I N Q ,7-‘• 2 7.T0 0 Q.1.� CD, fl y ? Q- N �G << • A41a11DOS Io!Duoui j • /41 Q 73• cm CD 3 rt vt (D C 3• of N a- X on 0 D Z N n T N• � A'1 • (Et) Q 0 z 0 • 1 z Q n_ Q' rnrn� z Q z z z 0 Q 0 ( S 3 O N O 6 D O Q Q -' (O 7 Cr N Q S D 3 7 S O Q N O • 0- O Q X 7 C N -71 n 0 D -0 7 O Q - O ▪ 7c 3 Q 7 Q D v _ m o- Q m 0- Q mQ(D �� o O N, n - -, c o N y N N S Q � _ O � C ' c N y _ n - • D N O 0ii Q 7 N O J O2. 7' O' N 3 O p N O 7• 5. (p w (p c `< Q 7 .0 (D 0 Q (D (Q n N 0 0 (D o 3 0 C Q°� O D u) D �— f �� a � n0 S O S S 3_. cD N o so cn < __.,,z, - 7 m o m 7 < R O -• 0 _3 ▪ o ' fl s �< g m H 5 — ( D < 0 •0N p -n 00 m •_,, m � . 3 o fl N 0 8 N Q -s — Q " n o 3 c �, ; 7 g O 3 D Q , n o (D •: `< O Q N 3( 3 0 (D Q m � ^ o 7 Q Q a. 3 O 3 02 2 m 3'�:Q Q �N m Q o 0 Q Q ca- -0.- O O 7 � o (D T a 0 7o 3 < m D ON y• O ON O O p Q S 3 o OS n O_ (Q _ Q N (D 0 =7 13 c (D N (D S = Q D L% N • n 0 O (D� co 3 O • O N 3• O_ N O O_ CO EEOC hearing covered as cost of loss • • • • • • • () 07i -0 7 O 0 O -oz Q C C n , 3 6 2 n' -• 0 -0 nn -. 0 < (D Q (tD Q (D O O_ N s O O_ n CD O O 3 0 (D N :< Q (D (n O (O 7 < N (3D rn7 - (D CDD - • N (D n CD 7 > 7 O z O_ O— O 0 13 (D m m n O c 3• 0 3 3 N 3- - 3' C 0 0 0 7 << _ jr O O < < O_ 0 0 Q 0 0 (0 0 O (0 CO CO 0 -• CO O ..O O D N (D (ni CD C c • CO O O 0- -'-, C O O LA 0 - �G O O a 3 o E" O O (O 3 O- Z D F _0 n 3 O 0 n _0-0 tn3 O -, 3 0 c n 7 N (D - C 3 N 7 (D n < co n' T 0 C n Q 0 0- T 0 n ID CD N ID n Q m N (n N C Q 7 n (D luapiaay an!Imax3 A.ia(.1iLIaOW aapo8 A4aadoad up asnolD ui6JDW oN y`< xr m Z 3 c (' (Q v 3 o Q O m Et G) D 0_ � ° , O N y 0 3 O m •m p m N Q 3 -` D Q Q N • < ID n' 7 O 0 . Q r �� m n(a N D^ o Q Q Q . Q . Q (O -° (D O > Q 0- 0- A O Q N O_ -, o 0 -= Q c r D r Q . N 7 = O _ (D -G O- Q • 7 N_ O Q < n _GO Efa N O n ' m_ Q EL o_ aQ' Q sZ 0 D 0_ n . (D Q 7 (D O ) CD o - N (D n c o Z • (D O 7 — c Q s • N (Q Q (D D Q n C° 0- 3 Q H °� y CL O Q 0_ < w C 3 Q c-). 0_ O D I 0 c N_ 0 ]OV1NVAGV Weld 1H1 uoi1osu9dwoj ,sa0)1.10M apopony S06111OAOJ Public Risk Management of Florida Logo Color Comps: Lighthouse_Modern Tagline: A Beacon of Financial Strength and Innovation Public Risk Management MN II ME IN Public Risk Management A Beacon of Financial Strength & Innovation A Beacon of Financial Strength & Innovation COMP A • PUBLIC KISK MANAGEMENT COMP B • • PUBLIC rr RISK MANAGEMENT A BEACON OF FINANCIAL STRENGTH & INNOVATION A BEACON OF FINANCIAL STRENGTH & INNOVATION, COMP C COMP D •J • •• Capo's Attic Leanne Capobianco, Graphic Designer 407.739.1637 Graphics @caposattic.com Public Risk Management of Florida Logo Color Comps: Lighthouse_Modern Tagline: A Beacon of Financial Strength and Innovation PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP E • Public Risk Management A Beacon of Financial Strength & Innovation COMP G 410 al ■■■ III NM PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP F Public Risk Management A Beacon of Financial Strenght & Innovation COMP H Capo's Attic Leanne Capobianco, Graphic Designer 407.739.1637 Graphics @caposattic.com Public Risk Management of Florida Logo Color Comps: Lighthouse_Modern Tagline: A Beacon of Financial Strength and Innovation PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGHT & INNOVATION COMP E: Public Risk Management PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGHT & INNOVATION COMP F • • A Beacon of Financial Strength & Innovation A Beacon of Financial Strength & Innovation COMP G • COMP H • Capo's Attic Leanne Capobianco, Graphic Designer 407.739.1637 Graphics @caposattic.com Public Risk Management of Florida logo design color comps: Lighthouse_Circle Tagline: A Beacon of Financial Strength & Innovation COMP A • COMP B • • COMP C • O• COMP D • • Capo's Attic Leanne Capobianco, Graphic Designer 407.739.1637 Graphics @caposattic.com Public Risk Management of Florida logo design color comps: Lighthouse_Circle Tag line: A Beacon of Financial Strength & Innovation COMP E • • • COMP G • • COMP F • • COMP H Capo's Attic Leanne Capobianco, Graphic Designer 407.739.1637 Graphics@caposattic.com Public Risk Management of Florida logo design color comps: Lighthouse_Circle Tagline: A Beacon of Financial Strength & Innovation COMP A • COMP B • COMP C • COMP D • Capo's Attic Leanne Capobianco, Graphic Designer 407.739.1637 Graphics @caposattic.com Public Risk Management of Florida Logo Color Comps: Lighthouse_Florida Tagline: A Beacon of Financial Strength and Innovation PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP E PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP F 0•0111,3 011 41111 PUBLIC RISK MANAGEMENT PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP G e000so,,., A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP H 0410 111341104110 Capo's Attic Leanne Capobianco, Graphic Designer 407/39.1637 Graphics @caposattic.com Public Risk Management of Florida Logo Color Comps: Lighthouse_Florida Tagline: A Beacon of Experience & Innovation PUBLIC RISK MANAGEMENT PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP I: PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP K • A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP J • PUBLIC RISK MANAGEMENT A BEACON OF FINANCIALS TRENCH EH & INNOVATION COMP L 1110j Capo's Attic Leanne Capobianco, Graphic Designer 407.739.1637 Graphics @caposattic.com Public Risk Management of Florida Logo Color Comps: Lighthouse_Florida Tagline: A Beacon of Financial Strength and Innovation PUBLIC RISK MANAGEMENT PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP E • • A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP F PUBLIC RISK MANAGEMENT PUBLIC RISK MANAGEMENT A BEACON OF FINANCIAL SIRENG 1 I 1 & INNO\ AI ION COMP G 41100 4114104 A BEACON OF FINANCIAL STRENGTH & INNOVATION COMP H El 411110 II fill Capo's Attic Leanne Capobianco, Graphic Designer 407.739.1637 Graphics @caposattic.com Public Risk Management of Florida logo design color comps: Lighthouse_Sketch Tagline: A Beacon of Financial Strength & Innovation PUBLIC RISK MANAGEMENT A Beacon of Financial Strength & Innovation COMP A Designer Notes: This is a rough sketch of conceptual idea of doing a illustartive rendering utilizing watercolor and pen & ink. For the final I will create a tigher rendering which will need to be professionally scanned to convert into an .eps file. This design commits you to full color printing process. Capo's Attic Leanne Capobianco, Graphic Designer 407.739.1637 Graphics @caposattic.com 5.A. PROPOSED CHANGES - PRM BY -LAWS I have been asked by PRM Chairman, John Litton, and Executive Director, Ross Furry, to give the PRM membership a brief summary or overview of the proposed amendments to the PRM Bylaws and Intergovernmental Cooperative Agreement as amended and restated through May 17, 2007, which will be on the agenda and shall be discussed, and voted on, at the upcoming PRM annual educational conference and Board of Directors meeting in Marco Island on June 18 and 19, 2009. This summary /overview shall be accompanied by a proposed set of Bylaw amendments showing both proposed bylaw deletions, designated by a "line through," and proposed Bylaw additions, designated by yellow highlighting and underlining. Should any of you have any questions or concerns prior to June 18, 2009, please do not hesitate to contact me personally with regard to same. Sincerely, Donovan Roper Legal counsel for the PRM Board of Directors SUMMARY OF PROPOSED PRM BYLAWS AND INTERGOVERNMENTAL COOPERATIVE AGREEMENT AMENDMENTS (1) Proposed amendments create two types of membership, Preferred and Standard members. It is suggested and recommended that, as a matter of policy, a motion should be raised to have all existing PRM members "grandfathered in" as preferred members effective immediately upon adoption of these Bylaw /Agreement Amendments by the Pool, and also potentially for the initial ensuing policy year. Prospective new members would have the choice of electing between each type of membership, but only preferred member rates would be guaranteed for their initial policy term. (2) Preferred members. Preferred members would be the only members with any vote on the Board of Directors. Preferred members would have entitlement to participate in any and all available lines of coverage, and insurance and/or self - insurance policy limits, which either are not available, or may not be available and/or afforded to standard members. Preferred membership premiums would generally be higher than that of standard members. Preferred members would have the ability to participate in certain loss control and/or loss prevention options or programs not otherwise available to standard members. (3) Standard members. Standard members would have no vote on the Board of Directors. Standard members would have entitlement to participate in certain delineated or specific lines of coverage, and insurance and/or self - insurance policy limits, which are commensurate with, and/or equivalent to, lines of coverage currently being offered or afforded by PRM's competitors. The membership premiums for standard members would generally be less expensive than that of preferred members. Standard members, while receiving certain basic loss control and/or loss prevention services, would not have available to them any of the loss control and/or loss prevention services or options available to preferred members except on a fee - for - service basis. (4) The proposed amendments substantially alter the initial notice of intention to withdraw, and final notice of decision to withdraw (from the Pool) deadline requirements, as follows -- preferred members would still have to give at least one (1) year's initial notice of their intent to withdraw from the Pool (at least one year prior to the beginning of the upcoming policy year), but now would only have to give the second, or final, notice of withdrawal from the Pool no less than ten (10) days prior to the beginning of the upcoming policy year. Standard members, under the proposed amendments, would now only have one (1) deadline requirement for serving its notice of intention to withdraw from the Pool -- such standard members may withdraw from the Pool at the end of the policy year by giving at least forty -five (45) days written notice prior to the beginning of the upcoming policy year, to the Executive Director that it intends to withdraw from the Pool at the end of the current policy year. (5) Standard members have an unlimited number of times for giving notices of intention to withdraw from the Pool under these proposed amendments, while preferred members may, at the option of the Executive Board, be expelled from the Pool by the vote of at least 5 of its 7 members of the Executive Board if that preferred member gives its (one year) notice of intention to withdraw from the Pool more th . ever any five (5) year period of time. The former Bylaw /Agreement requirements o giving notice of intention, and then fmal decision, to withdraw from the Pool by a certain number of days prior to February 1 or February 15 would all be deleted under these proposed amendments, as would the previous language requiring two- thirds vote of the Board of Directors for expulsion of a member for giving multiple such notices . (6) The proposed amendments would create a new Executive Board (formerly Executive Committee), with newly expanded policy - making and decision - making authority and/or powers to bind any and all coverages for all preferred and standard members of the Pool with excess insurers, reinsurers, specific excess insurers, insurance underwriters, wholesalers, brokers and/or their intermediaries, and with independent insurance contractors providing coverages to the Pool membership. The Executive Board would be expanded from five (5) members to seven (7) members, who would be elected bi- annually. The previous requirement for a representative from the North region and a representative from the South region on the Executive Committee would be deleted, as would any and all previous Florida geographic prohibitions on membership eligibility in the Pool. The map attached as Exhibit 6.6 to the current Bylaws /Agreement would therefore be deleted. The proposed amendments would also result in the Board of Directors mandatorily granting the Executive Board the authority to approve expenditures, authorize settlement of claims and lawsuits, and take such other actions as shall be specifically delegated to the Executive Board. The Executive Board, under the proposed amendments, would now dictate to the Executive Director the guidelines for authorizing settlement of claims and lawsuits and direct the management of the Pool, and the Executive Board can, through the Executive Director, delegate, designate and bind the extent of insurance and/or self-insurance coverages to be provided for all Pool members. (7) The preferred, i.e. voting, members of the Pool, would, under the proposed amendments, still retain the ability to appeal any decision or determination by the Executive Board relating to any reduction or elimination in the scope of loss protection, by filing a written notice to the Executive Board within twenty (20) days of that decision or determination asking that the Executive Board either affirm, modify or reverse such decision/determination. Moreover, even if the Executive Board refused to modify or reverse such decision/determination, the preferred members of the Pool would still retain the ability to appeal any decision or determination by the Executive Board relating to a reduction or elimination in the scope of loss protection by filing a written notice to the general Board of Directors within twenty (20) days of that decision or determination; thereafter, at either a general or special meeting, a two- thirds majority of the voting, i.e. preferred, members relating to any reduction or elimination in the scope of loss protection would constitute the final determination as to the extent of any such reduction or elimination. Again, standard members would have no vote in any such fmal decision or determination. Failure on the part of any member to timely appeal, within twenty (20) days of either the final decision or determination at the Executive board level, or the general Board of Directors level, shall be deemed under these proposed amendments to constitute a waiver of any and all rights on the part of those members to object to the Executive Board's final decision or determination, and would thereafter bind the Pool to that decision or determination. (8) The Executive Board shall, under the proposed amendments, also have to publish to the membership, via .certified or registered mail to its designated Representative at least ten (10) days prior to any regular or special meeting of the Executive Board, its intended agenda and what issues will be discussed at said meeting of any elimination or reduction in the scope of loss protection which was previously afforded to all Pool members. At least five (5) out of seven (7) members of the Executive Board must vote to approve any reduction or elimination in the scope of loss protection to be afforded under the proposed coverage terms, and the previous reference to two- thirds majority of the general Board of Directors being necessary to reduce or eliminate the scope of loss protection would be deleted under the terms of the proposed amendments. (9) The Executive Board shall, under the proposed amendments, meet at least four times annually, with ten days prior notice of its agenda to all PRM members Representatives and Alternates; moreover, the Board of Directors now may (instead of shall ) meet up to four times annually. (10) The Executive Director must, under the proposed amendments, attend all meetings of the Executive Board. The Executive Board would now more actively involve, direct and authorize the Executive Director in his job duties. The Executive Board , and not the Board of Directors, shall approve a preliminary budget and may also now approve budget amendments, but any time deadlines to do so would be deleted under the proposed amendments herein. (11) Under the proposed amendments, the Executive Board, rather than the general Board of Directors, may (instead of shall) determine annual payment factors for premium payments due from each member, utilizing exactly the same factors previously used by the PRM Board of Directors in Article 9.3 of the existing Bylaws. (12) The Pool "may ", under the proposed amendments, purchase Specific Excess insurance and also purchase Multiple Loss coverage , whereas the current bylaws /agreement for both types of coverage mandated (i.e., "will ") that such coverages be purchased. This proposed amendment streamlines those coverages similar to the existing bylaw language ( "may ") on Aggregate Excess insurance, and makes all three forms of those coverages uniform. (13) Expulsion of members -- under the proposed amendments, this now applies to preferred members who give their notices of intent to withdraw from the Pool more than once in any five (5) year period of time, but is still elective on the part of the Executive Board rather than the general Board of Directors, and can only be achieved by a vote of at least five (5) of seven (7) members of the Executive Board. (14) Under the proposed amendments, the definition of "policy year" has been amended to get away from any calendar date reference (Bylaws /Agreement currently has the "policy year" beginning on April 1, and ending on March 31), and allow fourteen month (or other non -date certain) coverage renewals which may, or will allow PRM's brokers, underwriters, wholesalers and intermediaries to obtain the least expensive premiums for the PRM membership from the various insurers and reinsurers. THE INTERGOVERNMENTAL COOPERATIVE AGREEMENT A CONTRACT AND BY -LAWS FOR PUBLIC RISK MANAGEMENT OF FLORIDA (PRM) AS AMENDED AND RESTATED THROUGH MAY 17, 2007 JUNE 19, 2009 THE INTERGOVERNMENTAL COOPERATIVE AGREEMENT (A CONTRACT AND BY -LAWS FOR PUBLIC RISK MANAGEMENT OF FLORIDA) (PRM) INDEX ARTICLE # DESCRIPTION PAGE # Article 1 Name and Duration 1 Article 2 Definitions and Purpose 1 - 3 Article 3 Power and Duties 3 - 4 Article 4 Participation and Term 4 - 5 Article 5 Commencement of the Pool 5 Article 6 Board of Directors of the Pool 5 - 8 Article 7 Board of Directors Meetings 8 - 9 Article 8 Pool Officers 9 - 10 Article 9 Finances and Risk Management Pool 10 -12 Article 10 Excess Insurance 12 Article 11 Obligations of Members 12 - 14 Article 12 Liability of Board of Directors or 14 Officers of the Pool Article 13 Additional Insurance 14 Article 14 Settlements 14 - 15 Article 15 Coverage & Indemnity Dispute Resolution 15 Article 16 Contractual Obligation 15 - 16 Article 17 Expulsion or Termination of Members 16 - 17 Article 18 Special Provisions for Deferred Funding 17 Article 19 Termination of Pool 17 ARTICLES OF ASSOCIATION AND BY -LAWS OF PUBLIC RISK MANAGEMENT OF FLORIDA (PRM) BE IT KNOWN THAT: The below named public agency or agencies of the State of Florida for the purpose of forming a risk management and self - insurance association pursuant to the terms of Florida Statutes Sections 768.28(16)(a), 440.57, and 163.01, Florida Interlocal Cooperation Act of 1969, do bind themselves contractually to and adopt these Articles of Association and By -Laws. Article 1 - Name and Duration 1.1 Name. The name of this association shall be Public Risk Management of Florida, referred to hereinafter as the Pool. Article 2 - Definitions and Purpose 2.1. Definitions. As used in this agreement, the following terms shall have the meaning hereinafter set out: "Annual Payments ": The amount each Member must annually pay to fully fund the costs of the full operation of the Pool. "Aggregate Excess Insurance ": Stop Loss Insurance purchased by the Pool from insurance companies and /or Lloyd's of London, or other similar entities, approved by the Board of Directors, or any committee appointed by the Board for such purpose, to protect the Pool from an accumulation of losses in any policy year should the "Loss Fund" be exhausted. Once the "Aggregate Excess Insurance" is triggered, any further losses within the "Self Insured Retention" will be paid by this coverage. "Fiscal Year ": The fiscal year of the Pool shall begin on October 1st and end on September 30th "Joint Self - Insurance" or "Self- Funded ": A self - insurance or self - funded program in which Members agree to annual payments to fully fund the operations of the Risk Management Pool. "Loss Fund ": The fund established to pay claims occurring within the "Self Insured Retention." The "Loss Fund" represents the maximum amount for which the Pool is exposed in a single policy period. "Maintenance Deductible ": The amount paid by the "Member" before the loss is paid by the "Self Insured Retention." This is a nominal amount designed to protect the "Loss Fund" from small claims. The "Maintenance Deductible" applies only to property, automobile physical damage and crime losses." "Members ": The public agencies of the State of Florida which initially or later enter into the intergovernmental association established by this Intergovernmental Agreement. "Multi -Loss Coverage ": This multiple loss protection limits a loss involving more than one line of coverage from one occurrence (i.e. property, liability, workers' compensation) to one "Self Insured Retention." "Policy Year ": The policy year of the Pool shall be from the date of inception of coverage to the termination of said coverage begin on April 14 and end on March 314, or on other dates as approved by the membership in attendance at a scheduled meeting of the membership. "Pool ": Public Risk Management of Florida established pursuant to the Constitution and the Statutes of the State of Florida by this Intergovernmental Agreement. "Risk Management ": A program attempting to reduce or limit casualty and property losses to Members and injuries to employees caused by or arising out of the operations of Members. Where claims arise the Pool will provide processing of claims, investigation, defense and settlement within the financial limits of the Pool as established in accordance with this Intergovernmental Agreement and will tabulate such claims, costs and losses. "Risk Management Pool ": A fund of public monies established by the Pool to jointly self - insure and self -fund property coverages, general liability, automobile liability, professional liability, public officials' liability and workers' compensation, and any other coverage lines approved by the Board of Directors. "Self- Insurance ": The decision by a public agency not to purchase insurance coverage for risks below certain limits; to seek and maintain immunities provided by law for a noninsured public agency; to rely upon its financial capabilities to pay covered losses which occur in case third -party claims are held valid and not barred or capped by available immunities: and to purchase some insurance to protect against catastrophic or aggregate losses. The purchase of liability insurance by the Pool or any of its Members is not intended to, and does not, waive sovereign immunity. Purchase of liability insurance shall only be pursuant to Florida Statutes, which allow for the purchase of insurance by the Pool without the waiver of sovereign immunity by the Pool or any of the Pool's Members and is not pursuant to any other statute of the State of Florida. "Self Insured Retention ": A layer of assumed risk where the pool self - insures a pre- determined amount of loss per occurrence. "Specific Excess Insurance ": Insurance purchased by the Pool from insurance companies and/or Lloyd's of London, approved by the Board of Directors, or any committee appointed by 2 the Board for such purpose, that provides catastrophe coverage up to the limit(s) chosen by the Pool. "Standard Member /membership " - a Member with the Pool, who finds several benefits in pooling and who values pricing and the ability to select specific lines of coverage, but who chooses not to participate in loss control and/or loss prevention and/or risk management options afforded Preferred Members. "Preferred Member /membership " — a Member with the Pool, who finds several benefits in pooling , including the multiple benefits to be achieved in participating in all available lines of coverage, and who chooses to participate on a fee for service basis in loss control and/or loss prevention and/or risk management options not otherwise usually afforded to Standard Members. 2.2. Purpose: The Pool is a cooperative agency voluntarily established by Members as set forth in Florida Statutes Sections 163.01, 768.28 and 440.57 for the purpose of seeking the prevention or lessening of casualty and property losses to Members and injuries to persons or employees which might result in claims being made against Members. The purpose of this Pool is to carry out and effect the agreed upon functions and purposes of this Intergovernmental Agreement as stated herein. It is the intent of the Members of this Pool to create an entity, which will administer a Risk Management Pool and utilize such funds to defend and protect, in accordance with this Intergovernmental Agreement, any Member of the Pool against liability for a covered loss. This Agreement shall constitute the substance of a contract among the Members. All funds contained within the Risk Management Pool are funds directly derived from its Members who are public agencies of the State of Florida. It is the intent of the Members in entering into this Intergovernmental Agreement that, to the fullest extent possible, the scope of Risk Management undertaken by them through a Joint Self- Insurance or Self- funded program using governmental funds shall not waive, on behalf of any Member or such Member's employees as defined in Florida Statutes Section 768.28, any defenses or immunities therein provided, or provided by the laws of the State of Florida. The Pool and the Members of this Pool intend to effect no waiver of sovereign immunities through their use of public funds retained within the Risk Management Pool. Such funds being utilized to protect against risks in accordance with Florida Statutes Section 768.28 are not intended to constitute the existence, issuance or purchase of a policy for insurance. This Intergovernmental Agreement is not to be considered such as would cause this Pool to be treated as an "insurer" within the meaning of any legislation giving risk to liability or applicability to "insurer ", for damages, costs, fees or expenses, etc., under Florida Statutes Sections 624.155, 626.9541, 626.9561, 627.426, 627.428, or other statutes applicable to Public Entity Self Insurance in the State of Florida. 2.3 Non- Assessable: Public Risk Management is a non - assessable pool. Article 3 - Power and Duties 3 3.1. Powers: The powers of the Pool to perform and accomplish the functions and purposes set forth herein, within the budgetary limits and procedures set forth in this Intergovernmental Agreement, shall be as follows: 3.1.1. To establish By -Laws and Amendments to By -Laws, and operational procedures governing the operations of the Pool which are consistent with this Intergovernmental Agreement as set forth in Florida Statutes Sections 768.28, 163.01 and 440.57, and to not waive any sovereign immunity not waived statutorily under Florida Law, and to expressly negate any past, present, or future waiver of sovereign immunity under Florida Statutes, and to continue to negate any waiver of sovereign immunity for discretionary and planning functions of government. 3.1.2. To employ agents, employees and independent contractors and approve the rate of compensation, benefits and/or contracts that apply to Pool employees, Pool officers and service providers, and to ensure all benefits of Florida Statutes Section 163.01(9)(a) and all other applicable Florida Statutes. 3.1.3. To lease real property and to purchase or lease equipment, machinery or personal property necessary for the carrying out of the purpose of the Pool. 3.1.4. To carry out educational and other programs relating to risk reductions. 3.1.5. To cause the creation of this Pool and see to the collection of funds for the continued administration of the Risk Management Pool. 3.1.6. To purchase Aggregate Excess Insurance, Reinsurance, Excess Property Insurance, Excess Workers' Compensation Insurance, Excess Liability Insurance, Pollution Insurance, Boiler & Machinery Insurance and Specific Excess Insurance, and any other form of insurance deemed reasonable and necessary by the Board of Directors to promote or serve the powers and duties of the Pool to supplement the Risk Management Pool without such being a waiver of sovereign immunity under Florida Law. 3.1.7. To establish reasonable and necessary loss reduction and prevention procedures, which shall be followed by the Members. 3.1.8. To provide Risk Management services including the defense of and settlement of claims and to have the authority granted by Florida Statutes Section 768.28(16). 3.1.9. To negate, pursuant to Florida Statutes, any implication of a waiver of sovereign immunity, and to negate any waiver of sovereign immunity other than to the extent required under Florida Statutes Section 768.28. 3.1.10. To act solely within the budgetary limits established by the Members to carry out such other activities as are necessarily implied or required to carry out the purposes of the Pool. 4 3.1.11. To sue or be sued as a separate legal entity. Article 4 - Participation and Term 4.1. Term: The initial term of the Pool shall be from 12:01 a.m. on October 1, 1987 to 12:01 a.m. September 30, 1989. After the initial two (2) year term of the Pool, the term shall automatically be renewed for an additional term of one (1) year each. Provided, however, the Members may, through the manner provided in Section 6.9.4., terminate the Pool as of the end of the initial or any additional term during which such action is taken. 4.2. Notice of Withdrawal: So long as the Pool shall continue in existence, any current or new Preferred Member joining the Pool shall remain a Member for an initial two -year term, except a new Member coming into the Pool after the first day of the policy year shall be obligated to be a member for not less than eighteen (18) months. A new Preferred member's rates will be guaranteed for their initial term. Any Preferred Member may withdraw from the Pool at the end of the policy year upon serving on the Pool by mail, fax or hand delivery at least one year's prior written notice. Any Standard Member may withdraw from the Pool at the end of the policy year upon serving on the Pool by mail, fax or hand delivery at least forty- five(45) days prior written notice. Such notice shall be addressed to the Executive Director of the Pool and shall be accompanied by a resolution of the governing body of the Member electing to withdraw from the Pool. 4.3. Actual Withdrawal /Required Withdrawal. Any Preferred Member who has served the Executive Director with prior written notice of its intent to withdraw at least one (1) year prior to the beginning of the policy year for which the notice to withdraw is applicable, shall serve in writing to the Executive Director, by mail, fax or hand delivery on or before February 15 no later than ten (10) days prior to the beginning of such policy year, a verification as to whether the Member intends to actually withdraw from the Pool at the end of the current policy year. Failure to serve such verification on or before February 15 no later than ten (10) days prior to the beginning of the policy year for which notice of intent to withdraw is applied, shall be deemed a revocation of the prior notice of intent to withdraw; thus, binding the Member to the Pool for the ensuing policy year. Provided, however, any Preferred Member who serves written notice of its intent to withdraw from the Pool more than once during any three (3) five (5) year period may be required, at the option of the Boar e f Directors Executive Committee Board, to withdraw from the Pool on the second such notice. Said requirement shall not apply to Standard Members of the Pool. An action to expel a Preferred Member in this manner shall be taken by the Boatel-of Directors Executive Committee Board .. in the manner described in Article 17 hereafter . Any Standard Member who chooses to withdraw from the Pool shall serve the Executive Director with prior written notice of its intent to withdraw at least forty-five (45) days prior to the beginning of the policy year for which the notice to withdraw is applicable, in writing to the Executive Director, by mail, fax or hand delivery a verification as to whether that Standard Member intends to actually withdraw from the Pool at the end of the current policy year. Failure to serve such verification at least forty-five (45) days prior to the beginning of the policy year for which the notice to withdraw is applicable shall be 5 deemed as actual binding consent on the part of the Standard Member to remain a Standard Member of the Pool , binding that Member to the Pool for the ensuing policy year. 4.4. Admission of New Members: The Pool's Executive Committee Board shall establish and periodically review standards and the approval process for the admission of new Members. Upon approval of these standards and of the approval process for admission by the Board of Directors, the Pool's Executive Committee Board may grant or deny admission to proposed new Members based upon such criteria. Consideration of new Members will be communicated to all PRM Board Members by the Executive Director for any information or feedback that a Member may have regarding the prospective member. Article 5 - Commencement of the Pool 5.1. Commencement Date: The Pool shall commence operations on October 1, 1987. Article 6 - Board of Directors of the Pool 6.1. The Board: There is hereby established a Board of Directors (sometimes hereinafter referred to as the "Board ") of the Pool. Each Member shall appoint one (1) person to represent that body (the "Representative ") on the Board of Directors along with another person to serve as an alternate representative (the "Alternate ") when the Representative is unable to carry out that Representative's duties. The Representative and Alternate shall be appointed in writing by the governing body of the Member and a copy of the written appointment shall be provided to the Executive Director of the Pool. Once such appointments are made known to the Pool, the persons appointed shall remain in office until the Pool receives evidence in writing of the appointment of other persons by the Member's governing body. The Representative and Alternate selected must be an employee, an appointed official or elected official of the entity. 6.2. The Chairman and Vice Chairman: The Board of Directors shall, commencing the 2003 fiscal year, select a Chairman for a three year term. Thereafter, and commencing the 2006 fiscal year, the Board of Directors shall, for all subsequent years, bi- annually select a Chairman to serve a two year term. The term of office for the Chairman shall begin on the 1st day of a fiscal year and expire on the last day of a fiscal year. The Chairman shall preside at all meetings of the Board. The Chairman shall vote on all matters that come before the Board. The Chairman shall have such other powers as he may be given from time to time by action of the Board. The Board of Directors shall, bi- annually select a Vice Chairman during the final quarter of each two -year term to serve during the subsequent two -year term. The term of office for the Vice Chairman shall begin on the first day of a fiscal year and expire on the last day of a fiscal year. The Vice Chairman shall carry out all duties of the Chairman of the Board during the absence or inability of the Chairman to perform such duties and shall carry out such other functions as are assigned from time to time by the Chairman or the Board of Directors. The Board of Directors may from time to time appoint other officers of the Board. 6 6.3. Board Responsibilities. The Board of Directors shall have the responsibility for: (1) hiring of Pool officers, agents, non - clerical employees and independent contractors; (2) setting of compensation for all persons, firms and corporations employed by the Pool; (3) approval of amendments to the Intergovernmental Agreement; (4) approval of the acceptance of new Members and expulsion of Members, except that the approval may be delegated to the Executive Committee Board under Article 4 above, or by such procedures as are contained in the motion making delegation; (5) approval and amendment of the annual budget of the Pool; (6) approval of the operational procedures developed by the Executive Director; (7) approval of educational and other programs relating to risk reduction; (8) approval of reasonable and necessary loss reduction and prevention procedures which shall be followed by all Members; (9) approval of Annual Payments to the Risk Management Pool for each Member; and (10) termination of the Pool in accordance with this Intergovernmental Agreement. 6.4. Voting: Each Preferred Member shall be entitled to one (1) vote on the Board of Directors. Standard Members have no entitlement to any vote on the Board of Directors, or otherwise. Such vote by each Preferred Member may be cast only by the Representative of the Preferred Member or in the Representative's absence by the Alternate. No proxy votes or absentee votes shall be permitted. Voting shall be conducted by show of hands or any method established by the Board that is consistent with Florida law. A simple majority vote of those Representatives present shall be required to pass on any motion. On such matters, the Chairman and the Executive Director of the Pool shall cause each Member's Representative and Alternate to receive the proposed ballot which will include at a minimum the text of the motion to be voted upon and the purpose of such motion. Only the Representative or the Alternate may vote on such ballots (not both). If both the Alternate and Representative submit ballots, only the Representative's ballot will be counted. Favorable votes by a majority of the Members' Representatives (or Alternates in their absence) entitled to vote shall pass any action unless an action is taken which is subject to 6.9 below, in which case passage will be based on the required number of votes as if each Member's Representative or Alternate was present at a regular or special meeting called to decide such question. 6.5 Representatives: The Representative selected by the Member shall serve until a successor has been selected. The Representative chosen by the Member may be removed at any time by the vote of the Member's governing body. In the event that a vacancy occurs in the position of Representative or Alternate selected by the governing body of a Member, that body shall appoint a successor in writing within 60 days of such vacancy occurring. The failure of a Member to select a Representative or the failure of that person to participate shall not affect the responsibilities or duties of a Member under this Intergovernmental Agreement. 6.6. The Executive Board Committee and other Committees: The Board of Directors shall establish an Executive Board (known previously in this Agreement as Executive Committee). That Executive Board shall consist of the Chairman of the Board of Directors, the Vice Chairman of the Board of Directors, the Treasurer and four (4) Representatives elected by the Board of Directors. The Executive Board shall have the power to establish both standing and ad hoc committees to further the functions and purpose of this Pool. Unless the Board of Directors establishes some other procedure, the authority for selection of Representatives or Alternates serving on the Executive Board who shall serve on such committees and chair them shall reside with the Chairman of the Board of Directors. 7 The Chairman of the Board of Directors may appoint non - voting and non -paid persons who are not Members of the Board of Directors to serve on committees of the Pool. The Ord of Directors Executive Board shall dictate to the Executive Director the guidelines for authorizing the settlement of claims. The Board of Directors shall establish an Executive Committee. That Executive Committee shall consist of the Chairman of the Board, the Vice Chairman of the Board, the Treasurer and two Representatives elected by the Board, one from the southern area Exhibit 6.6. The Board of Directors shall, bi- annually select the twe four (4) Representatives during the final quarter of each two -year term to serve during the subsequent two -year term. The term of office for the twe four (4) Representatives shall begin on the first day of a fiscal year and expire on the last day of a fiscal year. The Executive Board shall have the specific authority and power, as afforded herein by the Board of Directors, to grant binding approval for, and on behalf of, the Pool to bind any and all coverages for both Preferred Members and Standard Members with excess insurers, reinsurers, specific excess insurers, insurance underwriters, insurance wholesalers, insurance brokers and/ or intermediaries, and with independent insurance contractors providing and/or affording both insurance and self - insurance coverages to the Pool Members. The Board of Directors may shall grant to the Executive Board Committee the authority to approve expenditures, authorize a settlement of claims and suits and take such other action as shall be specifically delegated to the Executive Board. Committee. 6.7. Operating Rules: The Board of Directors may establish rules governing its own conduct and procedure not inconsistent with this Intergovernmental Agreement. 6.8. Quorum: A quorum shall consist of a majority of the Representatives (or in their absence their Alternates) serving on the Board of Directors , or serving on the Executive Board. Except as provided in Section 6.9 herein, or elsewhere in this Intergovernmental Agreement, a simple majority of a quorum shall be sufficient to pass upon all matters. 6.9. Super - Majority Voting: A greater vote than a majority of a quorum shall be required to approve the following matters: 6.9.1. Such matters as the Board of Directors shall establish within its rules as requiring for passage a vote greater than a majority of a quorum, provided, however, that such a rule can only be established by a greater than a majority vote at least equal to the greater than majority vote required by the proposed rule. 6.9.2. T ex lsion of a Memb s all r- .uire two -third /3) vote s .11 the Representatives serving n the Boar. of Directors and/or b; the Executive Board pursuabt to sub ection 17.1. of this , greement.. 6 9 Any amendment of this Intergovernmental Agreement, except as provided in Subsection 4 below, shall require two - thirds (2/3) vote of all the Representatives serving on the Board of Directors. 6.9.4. The amendment of this Intergovernmental Agreement to cause the termination of this Agreement sooner than two (2) years after its commencement or a 8 reduction or elimination in the scope of loss protection set out in Article 10 to be furnished by the self - insurance pool derived from payments from the Members, shall require that specific written notice of the proposed change be sent by registered or certified mail to the governing body of the Member and to the Representative and Alternate of the Member serving on the Board of Directors, no less than ten (10) days prior to a meeting of the Executive Board at which this matter is proposed and the amendment as proposed or as amended at such Board meeting must receive the approval of at least five (5) out of seven (7) Representatives all of the then current Representatives (or in their absence their Alternates) Executive Board representing the then Members of the Pool. 6.9.5 In the event of a reduction or elimination in the scope of loss protection as set forth in Article 10 of this Intergovernmental Agreement receives the approval of at least five (5) out of the seven (7) Representatives . —A1te nat s of the then - current Executive Board as set forth in section 6.9.4, any Member may request, within twenty (20) days of the Executive Board voting to approve such reduction or elimination in the scope of loss protections as set forth in Article 10 of this Intergovernmental Agreement, in writing to the Chairman of the Board of Directors that the Executive Board, at a special meeting, take official action to affirm, modify or reverse a decision of the Executive Board affecting the reduction or elimination in the scope of loss protection as set forth in section 6.9.4. The Member shall be provided a full opportunity to explain their position to the Executive Board. The Executive Board, by majority vote, may affirm, modify, reverse or defer the matter to the Board of Directors. Any Member who disagrees with the Executive Board's final determination may request in writing, within twenty (20) days of the Executive Board's final determination, that the Board of Directors take action to affirm, modify or reverse the decision of the Executive Board. The Member shall be provided a full opportunity at a special , or regular, meeting to explain their position to the Board of Directors. The Board of Directors, by majority vote of the Members, may o,fer, modify or reverse the final determination or decision of the Executive Board . Failure on the part of any Member to comply timely with the requirements for appealing the determination by the Executive Board to the Board of Directors within twenty (20) days thereof shall be deemed to be a waiver of any contractual, legal or other rights of appeal by, or on the part of, that Member. 6.10. Compensation of Board of Directors: No Representative or Alternate serving on the Board of Directors shall receive any salary from the Pool. 6.11 Conflict of Interest: Representatives and Alternates shall abide by the guidelines established by the State Ethics Commission in the performance of their duties, particularly as it applies to conflicts of interest and financial disclosure. Article 7 - Board of Directors Meetings 7.1. Meetings: The Executive Board will establish regular meetings, which shall be held at least four (4) times a year. Regular meetings of the Board of Directors may be held up to 9 shall be held at least four (4) times a year. The tentative times, dates, and locations of regular meetings of the Board shall be established at the beginning of each fiscal year, and the Executive Board will establish the tentative times, dates and locations of its regular meetings, and give timely and appropriate prior notice of said meetings to all Preferred and Standard Members. Any item of business may be considered at a regular meeting, including the scheduling of future regular meetings. The Executive Director shall attend all Board meetings and Executive Committee Board meetings to serve as an advisor and to report as the administrative officer of the Pool. 7.2. Special Meetings: Special meetings of the Board of Directors may be called by its Chairman, or by any three Representatives (or in their absence their Alternates). The Chairman or in his absence, the Vice Chairman, shall give ten (10) days written notice of regular or special meetings to the Representative and Alternate of each Member and an agenda specifying the subject of any special meeting shall accompany such notice. Business conducted at special meetings shall be limited to those items specified in the agenda. The time, date and location of special meetings of the Board of Directors shall be determined by the Chairman of the Board of Directors, or in his absence, by the Vice Chairman. 7.3. Conduct of Meetings: To the extent not contrary to this Intergovernmental Agreement and except as modified by the Board of Directors, Robert's Rules of Order, latest edition, shall govern all meetings of the Board of Directors. Minutes of all regular and special meetings of the Board of Directors shall be sent to all Representatives (or in their absence their Alternates) serving on the Board of Directors. Article 8 - Pool Officers 8.1. Officers: Officers of the Pool shall consist of an Executive Director, a Treasurer, a Secretary and such other officers as are established from time to time by the Board of Directors. All Pool officers shall be appointed by the Board of Directors. 8.2. Executive Director: The Executive Director shall be the chief administrative officer of the Pool and shall in general supervise and control the day to day operations of the Pool and shall carry out the policy and operational procedures of the Pool as established in this Intergovernmental Agreement and by the Board of Directors. Among the Executive Director's duties shall be the following: 8.2.1. The Executive Director may sign, with such other person authorized by the Board of Directors or by the Executive Board, any instruments which the Board of Directors or Executive Board have authorized to be executed and, in general, shall perform all duties incident to the office of Executive Director and such other duties as may be prescribed by the Board of Directors. 8.2.2. The Executive Director shall prepare a proposed annual budget and proposed Risk Management Pool Annual Payment and shall submit such proposals to the Board of Directors , and to the Executive Board. 10 8.2.3. The Executive Director shall, where necessary, make recommendations regarding policy decisions, the creation of other Pool officers and the employment of agents and independent contractors. At each regular meeting of the Board of Directors and at such other times, as he shall be required to do so, he shall present a full report of his activities and the fiscal condition of the Pool. 8.2.4. The Executive Director shall report quarterly to all Members on all claims filed and payouts made. 8.2.5. The Executive Director shall, within the constraints of the approved or amended budget, employ all secretarial, clerical and other similar help and expend funds for administrative expenses. 8.3. Treasurer: The Treasurer shall: 8.3.1. Have charge and custody of and be responsible for all funds and securities of the Pool; cause to be received and given all receipts for moneys due and payable to the Pool from any source whatsoever; cause to be deposited all such moneys in the name of the Pool in such banks, savings and loan associations or other depositories that are recognized as "Qualified Public Depositories" by the State Treasurer operating under Chapter 280 Florida Statutes, as shall be selected by the Board of Directors; cause to be invested the funds of the Pool as are not immediately required in such securities as the Board of Directors shall specifically or generally select from time to time; and cause to be maintained the financial books and records of the Pool. 8.3.2. In general, perform all duties incident to the office of Treasurer and such other duties as from time to time may be assigned to that individual by the Board of Directors. Nothing herein shall prevent the Treasurer from delegating, in writing, the functions of the office to third parties, whether members of the Board of Directors, employees of the Pool, or third parties, subject to the approval of the Board of Directors. However, the Treasurer shall maintain the control and responsibility for the execution of such functions by such delegates. The Board of Directors shall, commencing the 2003 fiscal year, select a Treasurer for a three -year term. Thereafter, and commencing the 2006 fiscal year, the Board of Directors shall, for all subsequent years, bi- annually select a Treasurer to serve a two year term. The term of office for the Treasurer shall begin on the lst day of a fiscal year and expire on the last day of a fiscal year. 8.4 Secretary: The Secretary shall issue notices of all Board meetings, and shall attend and keep the minutes of same. The Secretary shall have charge of all corporate books, records and papers; shall be custodian of the corporate seal; and shall keep all written contracts of the Pool. In general, the Secretary shall perform all duties incident to the office of Secretary and such other duties as from time to time may be assigned by the Executive Director or the Board of Directors. 8.5. Third Party Delegations: The Board may select a financial institution or certified public accountant to carry out some or all of the functions which would otherwise be assigned to a Treasurer and may select a risk management company or agent to serve as claims administrator 11 or to carry out some or all of the functions which would otherwise be assigned to the Executive Director. The Board may also employ persons or companies as independent contractors to carry out some or all of the functions of officers of the Pool. 8.6. Officer Vacancies: In the absence of the Executive Director, Treasurer or Secretary, or in the event of the inability or refusal of such officers to act, the Chairman of the Board of Directors may perform the duties of the Executive Director, Treasurer or Secretary, and, when so acting, shall have all of the powers of and be subject to all of the restrictions upon the Executive Director, Treasurer or Secretary. Article 9 - Finances and Risk Management Pool 9.1. Fiscal Year: The fiscal year of the Pool shall commence on October 1, and end on September 30, of each year. 9.2. Budget: The Board of Directors 6r—the shall approve a preliminary budget for the administration of the Poolmby June 1 of each year. Copies of all preliminary and final budgets shall be promptly mailed to each Member of the Board of Directors. The 1 oara of Director hall , by February 1 of the ycar prior to the start of each policy year adopt a final budget and determine the amount of the Annual Payment to be made by each Member and the date upon which the payment is due,v Directors or the Executive Committee to approve a preliminary or final budget within the times set forth within this Section shall not relieve the Members of the obligation to make any payments to the Pool so long as such budgets are finally adopted, and the Members are given at least thirty (30) days after the passage of the final budget in which to make Annual Payments to the Pool. 9.3. Annual Payment Factors: In determining the amount of the Annual Payment due from each Member, the the following factors: Executive Board may consider some or all of 9.3.1. Number of employees ; 9.3.2. Property values of the Member; 9.3.3. Number and type of vehicles owned by the Member and the use made of the vehicles; 9.3.4. Population of the geographic area represented by the Member; 9.3.5. The payrolls of the Member; 9.3.6. Any unusual exposures presented by the Member; 9.3.7. The operating expenditures of the Member; and 9.3.8. The claims and loss experience of the Member. - • in making the allocation of the amount of the Annual Payment due from each Member. This 12 The Board of Directors may grant debits or credits to Members with above or below average loss or claims records. The amount of such debits or credits may not vary more than 25% above or below the amount, which the Member would pay if it were not to have been granted the debit or credit. In establishing the loss and claims record of the Member, the Board of Directors may utilize the loss and claims experience of the Member during last 3 y ars of the Pool. (,)(5 C -9.4. Budget Amendments: Budgets may be amended at any time by majority vote of the d. when added to previous payments by a Member for such policy year, to exceed such Member':, Annual Payment determined for such year. The forwarding of such payments within a time payments shall be of the essence of this contract. 9.5. Payments — Timing: In subsequent years, the Board of Directors may permit the Annual Payments to be made on a monthly or quarterly basis. 9.6. Retirement Fund Obligations: Members shall be both severally and jointly liable to the State of Florida Department of Administration, Division of Retirement for any Florida Retirement Systems' contributions, which are owed by the Pool for Pool employees. Each member shall be responsible for expenses incurred which are attributable to the years of membership as outlined in the Intergovernmental Agreement, Article 11. 9.7. Distribution of Surplus: If, for any year during which the Pool was in existence, all claims known or unknown have either been paid or provision has been made for such payment, the Board of Directors as then constituted shall distribute surplus funds to the Members who constituted the membership of the Pool in that prior year, after first deducting there from reasonable administrative and other non - allocated costs incurred by the Pool in the processing of the claims in years other than the one in which the claim was made. The distribution among the Members shall be in the same proportion to the total as was their Annual Payment for that year to the Annual Payments of all Members for such year. 9.8. Audit: The Board of Directors shall provide to the Members an annual audit of the financial affairs of the Pool to be made by a certified public accountant at the end of each fiscal year in accordance with generally accepted auditing principles. The annual report shall be delivered to the Chairman of the governing body of each Member. Article 10 - Excess Insurance 10.1. Specific Excess Insurance: The Pool will may purchase Specific Excess Insurance from underwriters of insurance, insurance companies and/or Lloyd's of London, approved by the Board of Directors, or any committee appointed by the Board for such purpose, in such amounts which shall be approved by the Board of Directors and underwriters, based upon but not limited to the current assets, risk analysis, and loss history of the Pool. The purchase of Specific Excess Insurance does not, and is not, intended to waive sovereign immunity under Florida law. 13 10.2. Aggregate Excess Insurance: The Pool may purchase Aggregate Excess Insurance from underwriters of insurance, insurance companies and/or Lloyd's of London, approved by the Board of Directors, or any committee appointed by the Board for such purpose, in such amounts which shall be approved by the Board of Directors and underwriters, based upon but not limited, to the current assets, risk analysis, and loss history of the Pool. The purchase of Aggregate Excess Insurance does not, and is not, intended to waive sovereign immunity under Florida law. 10.3. Multiple Loss Coverage: The Pool will may purchase Multiple Loss Coverage in the event a single occurrence involves more than one line of coverage, limiting the occurrence to a single "Self Insured Retention." 10.4. Losses: The Risk Management Pool (Loss Fund), the Specific Excess Insurance and any optional Aggregate Excess Insurance purchased, shall provide payment for covered losses in any one policy year for members up to the limits approved by the Board of Directors. Should losses in any one policy year extinguish all available funds provided by the Pool then the individual Member or Members whose judgment or settlement of claim has been perfected by Florida law shall be responsible for any additional payment. The Pool shall make payments in the order in which the judgments against the Pool have been entered or settlement of claims have been reached or other manner established at a meeting by the Board. Membership in the Pool shall not preclude any Member from purchasing any insurance coverage above those amounts purchased by the Pool. Article 11 - Obligations of Members 11.1. Member Obligations: The obligations of Members of the Pool shall be as follows: 11.1.1. To budget for, where necessary, to levy for and to promptly pay all payments to the Risk Management Pool at such times and in such amounts as shall be established by the Board of Directors within the scope of this Intergovernmental Agreement. Any delinquent payments shall be paid with a penalty, which shall be set by the Board, but such rate shall not exceed the highest interest rate allowed by statute to be paid by a Florida public agency. 11.1.2. To select, in writing, a Representative to serve on the Board of Directors and to select an Alternate Representative. 11.1.3. To allow the Pool reasonable access to all facilities of the Member and all records including, but not limited to, financial records, which relate to the purpose or powers of the Pool. 11.1.4. To allow attorneys employed by the Pool to represent the Member in investigation, settlement discussions and all levels of litigation arising out of any claim made against the Member within the scope of loss protection furnished by the Pool. 11.1.5. To furnish full cooperation with the Pool attorneys, claims adjusters, the Executive Director and any agent, employee, officer or independent contractor of the Pool relating to the purpose or powers of the Pool. 14 11.1.6. To follow in its operations all loss reduction and prevention procedures established by the Pool within its purpose or powers. 11.1.7. To report to the Executive Director or his designee within the time limit specified the following items: 11.1.7.1. To provide on or before November 1 of each policy year of the Pool, the Member's renewal application shall be completed by the member as required by the Underwriters. 11.1.7.2. To report, within five (5) days of receipt, any and all statutory notices of claims, as well as summons and complaint or other pleading before a court or agency involving any claim for which Pool coverage is sought. 11.1.7.3. To report, within ten (10) days of receipt, any oral or written demand for monetary relief for which coverage is sought to the Pool Executive Director. 11.1.7.4. To report to the Executive Director at the earliest practicable moment any information of an occurrence, claim or incident received by the Member and from which the Member could reasonably conclude that coverage will be sought by said Member for such an occurrence, claim or incident. In the event that the items set forth above are not submitted to the Executive Director within the time periods set forth above, the Board of Directors of the Pool, by a vote of a majority of a quorum of the Board, at a regular or special meeting, may in whole or part decline to provide a defense to the Member or to extend the funds of the Pool for the payment of losses or damages incurred. In reaching its decision, the Board shall consider whether and to what extent the Pool was prejudiced in its ability to investigate and defend the claim due to the failure of the Member to promptly furnish timely notice of the occurrence, claim or incident to the Executive Director. The decision of the Board of Directors shall be final. Failure of a Member to abide by these requirements shall also be grounds for expulsion from the Pool. 11.1.8. To make Payment of any "Maintenance" Deductible(s). 11.2. Cancellation/Suspension of Coverage: In the event that a Member has made a material misstatement or failed to comply with an underwriting requirement that created a substantial change in risk exposure, the Executive Committee Board has the authority to cancel or suspend coverage. The Member shall be notified of the reason in writing by the Executive Director and given a reasonable time to take corrective measure prior to the Executive Committee Board's action. Article 12 - Liability of Board of Directors or Officers of the Pool 12.1. Liability of Directors and Officers: The Representatives (or in their absence their Alternates) serving on the Board of Directors or officers of the Pool should use ordinary care and reasonable diligence in the exercise of their power and in the performance of their duties 15 hereunder; they shall not be liable for any mistake of judgment or other action made, taken or omitted by them in good faith; nor for any action taken or omitted by any agent, employee or independent contractor selected with reasonable care; nor for loss incurred through investment of Pool funds, or failure to invest. No Representative shall be liable for any action taken or omitted by any other Representative. Representatives shall have the immunities provided by law and in particular Florida Statutes Section 163.01. The Pool may purchase insurance providing liability coverage for such Representatives or officers. Article 13 - Additional Insurance 13.1. Member's Option to Purchase Additional Insurance: The Pool, through the distribution of the minutes of the Board of Directors or through other means shall inform all Members of the scope and amount of Specific Excess and Aggregate Excess Insurance in force at all times. Membership in the Pool shall not preclude any Member from purchasing any insurance coverage above those amounts purchased by the Pool. Such purchase shall not be construed to waive sovereign immunity of the Members of the Pool or the Pool. The Pool shall make its facilities available to advise Members of the types of additional or different coverages available to Pool Members. Article 14 - Settlements 14.1. Settlement/Advance Notice: Whenever the Pool proposes to settle any pending claim or suit where the amount of that proposed settlement shall exceed Ten Thousand Dollars ($10,000.00), the Member shall be given advance notice of that settlement. Such notice may be given by the establishment of a reserve amount in excess of Ten Thousand Dollars ($10,000.00), provided that the amount of the settlement does not exceed the amount reserved. The officers and employees of the Pool shall, however, endeavor to give specific oral or written notice to the Member's Representative or Alternate of the exact amount of any proposed settlement in excess of Ten Thousand Dollars ($10,000.00) prior to the date at which the Pool proposes to bind itself to pay such settlement amount. The officers, employees or independent contractors of the Pool shall attempt to give the Members, as much notice of the settlement negotiations as is possible under the circumstances of each case. Article 15 — Coverage & Indemnity Dispute Resolution 15.1. After having reviewed a claim forwarded to the Pool, the Executive Director, officer, employee or independent contractor shall, in writing, be permitted to decline to provide coverage or indemnification for such claim not believed to be within the scope of coverage provided by the Pool. The claim may also be accepted and defense provided but the Pool may reserve the right to withdraw from the defense or to refuse to provide indemnification against the claim in the event that it is later determined that the claim is not properly within the scope of coverage afforded by the Pool. Any Member may request in writing to the Chairman of the Board of Directors, that the Executive Committee Board, at a regular scheduled meeting, take official action to affirm, modify or reverse a decision that a particular matter is or is not within the scope of coverage or indemnification provided by the Pool. The Member shall be provided a full 16 opportunity to explain their position to the Executive Committee Board. The Executive Committee Board, by majority vote, may affirm, modify, reverse or defer the matter to the Board of Directors, subject to any insurance or reinsurance contractual obligations. Any Member who disagrees with the Executive Committee Board's determination may request in writing that the Board of Directors, at a regular scheduled meeting, take action to affirm, modify or reverse the decision of the Executive Committee Board. The Member shall be provided a full opportunity to explain their position to the Board of Directors. The Board of Directors, by majority vote of the Members, may affirm, modify or reverse the decision of the Executive Committee Board, subject to any insurance or reinsurance contractual obligations. Any Member may seek binding arbitration, if available, pursuant to the Pool's General Coverage Document and, is not required to appeal a coverage or indemnification declination to either the Executive Committee Board or Board of Directors. Article 16 - Contractual Obligation 16.1. Enforcement: This document shall constitute a binding contract under the Florida Interlocal Cooperation Act of 1969 among those public agencies, which become Members of the Pool. The obligations and responsibilities of the Members set forth herein, including the obligation to take no action inconsistent with this Intergovernmental Agreement as originally written or validly amended, shall remain a continuing obligation and responsibility of the Member. The terms of this Intergovernmental Agreement may be enforced in a court of law by the Pool. The consideration for the duties herewith imposed upon the Members to take certain actions and to refrain from certain other actions shall be based upon the mutual promises and agreements of the Members set forth herein. This Intergovernmental Agreement may be executed in duplicate originals and its passage by the Member's governing body shall be evidenced by a certified copy of a resolution passed by the members of the governing body in accordance with the rules and regulations of such public agency, provided, however, that except to the extent of the limited financial contributions to the Pool agreed to herein or such additional obligations as may come about through amendments to this Intergovernmental Agreement no Member agrees or contracts herein to be held responsible for any claims in tort or contract made against any other Member. The Members intend in the creation of the Pool to establish an organization for Risk Management only within the scope herein set out and have not herein created as between Member and Member any relationship of surety, indemnification or responsibility for the debts of or claims against any Member. 16.2. Attorneys' Fees: In any legal action between the parties arising out of this Agreement, any attempts to enforce this Agreement, or any breach of this Agreement, the prevailing party may recover its expenses of such legal action including, but not limited to, its costs of litigation (whether taxed by the court or not) and its reasonable attorneys' fees (including fees generated on appeals) from the other party. Article 17 - Expulsion or Termination of Members 17 17.1. Expulsion. By the vote of two - thirds (2/3) of the Directors serving on the Board of Directors, and/or by a vote of at least five (5) out of the seven (7) Members serving on the Executive Board on decisions, determinations or issues involving section 4.3 of this Intergovernmental Agreement, any Member may be expelled. Such expulsion may be carried out for one or more of the following reasons: 17.1.1. Failure to make any timely payments due to the Pool. 17.1.2. Failure to undertake or continue loss reduction and prevention procedures adopted by the Pool. 17.1.3. Failure to allow the Pool reasonable access to all facilities of the Member and all records which relates to the purpose, powers or functioning of the Pool. 17.1.4. Failure to furnish full cooperation with the Pool's attorneys, claims adjusters, the Executive Director and any agent, employee, officer or independent contractor of the Pool relating to the purpose, powers and proper functioning of the Pool. 17.1.5. Failure to carry out any obligation of a Member which impairs the ability of the Pool to carry out its purpose or powers or functions. 17.1.6. The Preferred Member has given the one (1) year notice described in Section 4.2 and 4.3 above. 17.2. Notice: No Member may be expelled except after notice from the Pool of the alleged failure along with a reasonable opportunity of not less than thirty (30) days to cure the alleged failure. The Member may request a hearing before the Board before any decision is made as to whether the expulsion shall take place. The Board shall set the date for a hearing which shall not be less than fifteen (15) days after the expiration of the time to cure has passed. A decision by the Board to expel a Member after notice and hearing and a failure to cure the alleged defect shall be final. The Board of Directors may establish the date at which the expulsion of the Member shall be effective at any time not less than sixty (60) days after the vote expelling the Member has been made by the Board of Directors. If the motion to expel the Member made by the Board of Directors or a subsequent motion does not state the time at which the expulsion shall take place, such expulsion shall take place sixty (60) days after the date of the vote by the Board of Directors expelling the Member. 17.3. Responsibilities of Terminated Member: A former Member shall only continue to be fully responsible only for its' portion of any obligations incurred but not satisfied during the period of time they were a Member of the Pool. Such obligations may include, but not be limited to, premiums, loss fund payments, maintenance deductibles, workers' compensations, final audit and administrative fees, etc., owed or unpaid by the former Member. The former Member shall no longer be entitled to participate or vote on the Board of Directors. Article 18 - Special Provisions for Deferred Funding 18 During the fiscal years commencing on October 1, 1987 and ending on September 30, 1990, the entire Annual "Loss Fund" Contribution was not required by the Board of Directors to be paid within the fiscal year to which it was applicable. The difference between the Annual "Loss Fund" Contribution and the amount required by the Board of Directors to actually be paid to the Pool during such year by a Member is referred to herein as Deferred Funding. Members and former Members during any year for which there existed Deferred Funding may be required by the Board of Directors upon recommendation of the Executive Director to pay their applicable portion of the Deferred Funding in subsequent years. Members or former members will be allowed forty -five (45) days after notification to make any payments of Deferred Funding. The amount of any payments required for Deferred Funding as to each Member shall be based upon the same formula as was used in establishing the Annual "Loss Fund" Contribution for that year. Article 19 - Termination of the Pool 19.1. Termination: If, at the conclusion of any term of the Pool, the Board of Directors votes to discontinue the existence of the Pool in accordance with Section 6.9.4., then the Pool shall cease its existence at the close of the then current fiscal year. Under those circumstances, the Board of Directors shall continue to meet on such a schedule as shall be necessary to carry out the termination of the affairs of the Pool. It is contemplated that the Board of Directors may be required to continue to hold meetings for some substantial period of time in order to accomplish this task, including the settlement of all covered claims incurred during the term of the Pool. The Pool shall continue to be fully responsible and obligated to pay covered claims and expenses owed by the Pool, which accrued before the Pool's termination. The money used to pay such covered claims and expenses shall remain with the Pool until such claims are settled and expenses are paid. 19.2. Post - Termination Responsibilities of Member: After termination of the Pool, the Member shall continue to hold membership on the Board of Directors but only for the purpose of voting on matters affecting their limited continuing interest in the Pool for such years as they were Members of the Pool. 19 In witness whereof, this agreement has been executed by the Entity: . The approval of the foregoing agreement was passed by the Entity: on the day of , 20 , and attached hereto, I do hereby execute and the does hereby attest to my signature as evidence that the has approved and hereby becomes a bound signatory member of the "Intergovernmental Cooperative Agreement" for Public Risk Management of Florida, a copy of which is attached hereto, and which is pursuant to Florida Statutes Section 163.01, which commenced its term on October 1, 1987. ATTEST: Chairperson of Board, or Council Chairperson, Public Risk Management of Florida This day of , 20 . 20 PUBLIC RISK MANAGEMENT OF FLORIDA EXHIBIT 6.6 Rev. 4/1/09 HIGHLANDS COUNTY City of Avon Park Town of Lake Placid City of Sebring Sun 'n Lake of Sebring HILLSBOROUGH COUNTY City of Temple Terrace LEVY COUNTY Levy County BOCC HENDRY COUNTY Barron Water Control District City of Clewiston Hendry County BOCC City of LaBelle HERNANDO COUNTY City of Brooksville GULF COUNTY Gulf County BOCC 21 - C77) )1; 4 • a-2J lit-, 7 - 147 o-tc:d yr ic,{.„9 41.14tcs. A-v-ts.21 t: ,t4 C _7 3,27,1 42 d e PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING June 19, 2009 REGULAR AGENDA SUMMARY 6. Request Board Approval to Extend Property Renewal with PEPIP until 6/1/10 Approval is requested to extend current property coverage with PEPIP until June 1, 2010, to coincide with their nationwide renewal to receive additional advantages. An advance from surplus funds will be utilized to cover additional premium cost and will be billed to the member at next renewal. )-Ni 9/ c -3 7 7,1 Board Action: ✓Approved Denied Deferred Other Ross: As we discussed during the last regular PRM Board meeting and further discussed in the last 2 executive committee meetings, PRM has the ability to purchase a 14 month Property policy to expire on 6 -1 -10 at the same terms conditions and pricing presented at the PRM renewal. The purpose would be to have a property expiration date that corresponds with the national PEPIP expiration. This will allow us to negotiate our pricing and terms along with the worlds largest property placement. The cost for the additional 2 months of coverage is $1,293,582. As the Florida property market continues to deteriorate, I feel even stronger that this is an excellent opportunity for PRM. During our conversations we had discussed utilizing surplus to pay for the additional 2 months worth of premium. You had asked me to recommend how to charge the members for the additional premium. I can think of two options. First is to have a special billing sometime after 10 -1 -09 so members can get the additional funding into next years insurance budget. Second, we could wait until renewal next year and include the premium in the renewal numbers. Keep in mind that by making this move I anticipate even more significant saving next year so members premiums may still be flat or lower including the extension. Either of these methods will allow time for the existing members to benefit from the growth in memberships we anticipate at this October 1. If I can be of any assistance please give me a call. V -Card Website K. Shane Caldwell CEO Accretive Insurance Group, Inc. 1525 International Parkway Suite 2021 Lake Mary, FL 32746 407-936-2132 (x102) 407- 936 -2482 (FAX) shane.caldwell @accretiveins.com www.accretiveins.com PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING June 19, 2009 REGULAR AGENDA SUMMARY 8. Insurance Advisor's Report Glenn Tobey 9. Guest Speaker: Karen Fontenont, CPA PRM Audit — Financial Statements for YE 9/30/08 Karen Fontenont, Certified Public Accountant, will present the audit of the financial statements of Public Risk Management of Florida for the year ending September 30, 2008. The presentation includes communications with the Board of Directors in accordance with Statement on Auditing Standards Number 114, "The Auditor's Communication with Those Charged with Governance ". Attachment 10. Board Member Items John Litton The next meeting will be held at the Terrace Hotel in Lakeland on August 14, 2009. / Public Comment: State full name and address. Discussion must be limited to a maximum of five (5) minutes per person. Adjournment Audit of Public Risk Management of Florida for Year Ended September 30, 2008 Karen Fontenot Certified Public Accountant e 1 uired Communications anagement's Responsibilities Design and implementation of system of internal control Financial statements including: • Selection and application of accounting principles • Formulate accounting estimates • Reviewing and recording audit adjustments e 1 uired Communications uditor's Responsibilities Under Generally Accepted Auditing Standards (GAAS) Audit designed in accordance with auditing standards generally accepted in the US to obtain reasonable, rather than absolute, assurance that th financial statements are free of material misstatement. Obtain an understanding of internal control sufficient to plan our audit and to determine the nature, timing and extent of testing performed. e 1 uired Communications doption of, or a Change in, an Accounting Principle The Board is informed about the initial selection of, and any changes in, significant accounting principles or their application when the accounting principle o its application, including alternate methods of applying the accounting principle, has a material effect on the financial statements. e • uired Communications doption of, or a Change in, an Accounting Principle No new accounting principles were required to be adopted for the current period under audit. e 1 uired Communications ur Judgment About the Quality of PRM's Accounting Principles We exercise our judgment about the quality, not jus the acceptability, of the accounting policies as applied in PRM's financial reporting, including the consistency of the accounting policies and their application and the clarity and completeness of the financial statements and related disclosures. e 1 uired Communications ur Judgment About the Quality of PRM's Accounting Principles Accounting principles selected by management and the Board are consistent with those prescribed by accounting and industry standards. In addition, management has consistently applied its accounting principles and PRM's financial statements and related disclosures are clearly presented in a complete manner. e 1 uired Communications ensitive Accounting Estimates The preparation of the financial statements requires the use of accounting estimates. Certain estimates are particularly sensitive due to their significance to the financial statements and the possibility that future events may differ significantly from management's current judgments. e 1 uired Communications ensitive Accounting Estimates ccounts that require the use of sensitive accounting estimates include: Claims Payable: The calculation of claims payable was prepared by a actuary. The related disclosures and required supplemental information are derived from the actuary's report. The actuary report, including assumptions used, was reviewed during the audit. e 1 uired Communications ethods of Accounting for Significant Unusual Transactions and for Controversial or Emerging Areas The Board is informed about the methods used to account for significant unusual transactions and the effects of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus. e 0 uired Communications ethods of Accounting for Significant Unusual Transactions and for Controversial or Emerging Areas We are not aware of any significant unusual transactions recorded by PRM or any significant accounting policies used by PRM related to controversial or emerging areas for which there is a lack of authoritative guidance. e 1 uired Communications ignificant Audit Adjustments The Board is informed about adjustments arising from the audit (whether recorded or not) that could in our judgment either individually or in the aggregate have a significant effect on the financial statements. e 1 uired Communications ignificant Audit Adjustments ignificant audit adjustments and related net income effect are as follows: Adjustment of claims payable to actuary's report - ($7,097,725) Adjustment of reinsurance receivables - $8,755,548 Adjustment of prepaid excess insurance — ($413,437 Adjustment of deferred income — ($7,230,154) e 1 uired Communications nrecorded Audit Differences Considered by Management to be Immaterial The Board is informed about unrecorded audit differences accumulated by me during the audit (whether recorded or not) that could in our judgment either individually or in the aggregate hav a significant effect on the financial statements. e • uired Communications nrecorded Audit Differences Considered by Management to be Immaterial There were no unrecorded audit differences in the current year. e 1 uired Communications raud and Illegal Acts The Board is informed about fraud and illegal acts involving senior management and fraud and illegal acts (whether caused by senior management or other employees) that cause a material misstatement of the financial statements. e 1 uired Communications raud and Illegal Acts We are not aware of any matters that require communication. e 1 uired Communications ignificant Deficiencies and Material Weaknesses in Internal Control The Board is informed of all significant deficiencies and material weaknesses that were identified durin the course of my audit. e uired Communications ignificant Deficiencies and Material Weaknesses in Internal Control No significant deficiencies or material weaknesses were identified. e 1 uired Communications Other Communications Disagreements with management Serious difficulties encountered in dealing with management when performing the audit Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management Consultation with other accountants AICPA ethics ruling regarding third -party service providers e 1 uired Communications Other Communications No issues to report. PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING June 19, 2009 REGULAR AGENDA SUMMARY 7. Election of Officers John Litton The term of office for Vice Chairperson, North Representative, and South Representative will expire 9- 30 -09. Elections will be held for the 2 -year term from 10 -1 -09 to 9- 30 -11. Incumbents Jeff Sutton, Jennifer Valdes, and Robbie Chartier have submitted their willingness to continue serving as Vice Chairperson and Representatives. Frank Gilbert from the City of Winter Garden has submitted his interest to serve as a Representative. If members adopt By -Laws changes [Item #5.A.], two additional Representatives will be elected to serve a 1 -year term from 10 -1 -09 to 9- 30 -10. Nominations will also be taken from the floor. Executive Committee: John Litton, Chairperson - October 2008 -2010 Jeff Sutton, Vice Chairperson — October 2007 -2009 Mike Sheppard, Treasurer — October 2008 -2010 Jennifer Valdes, North Representative, October 2007 -2009 Robbie Chartier, South Representative, October 2007 -2009 10/1/09-9/30/11: Vice Chairperson Representative Representative 10/1/09-9/30/10: Representative Representative ;(j C�;�{; I1 F-Aad '9 • S-47 i c May 19, 2009 Public Risk Management of Florida 3434 Hancock Bridge Pkwy, Suite 203 Fort Myers, FL. 33903 To The Board of Directors: At this time I am asking the support of the Board of Directors to select me to continue to serve as Vice Chairperson on the Executive Committee of our pool, Public Risk management of Florida. For those of you who may not know me, I have been the Director of Human Resources/Risk Management for the City of New Port Richey for the past twenty -five (25) years, and have served as your North Quadrant Executive Committee Representative since June 2004 and Vice Chairman since June 2007. The City of New Port Richey has been an active member of the Public Risk Management pool since 1993 and has been consistently aggressive in managing our loss prevention and insurance risk programs. Our City's proactive approach to loss prevention and management practices has enabled the City to receive the Large Entity "Best Overall" Safety Award seven (8) out of the last nine (9) years. Like all of you I am paid to adequately insure my entity from loss and to manage our loss prevention programs. The continued success of our pool is paramount to us in this endeavor. We have one of the best Public Entity Insurance pools in the country. If elected Vice Chairperson of the Executive Committee I pledge to all my commitment to keep it that way. Sincerely, Jeff Sutton Robbie L. Chartier Deputy County Administrator Okeechobee County 312 NW 3rd Street, Room 206 Okeechobee, FL 34972 RE: South Quadrant Executive Committee Membership To PRM Board Members: The South Quadrant board position term is due to expire, and having served on the executive board since March, 2005, I am requesting consideration for reappointment to this position. I have been actively involved with PRM since 1998. In my eleven years as Deputy County Administrator for Okeechobee County, it has been my responsibility to ensure the best coverage for my organization. I have upheld the mission of PRM and its goals to maintain Okeechobee County's membership. As recent as March, 2009 I was able to assist my board in understanding the PRM program; they are satisfied and did not give notice as so many other entities have done. In the past, Okeechobee County required staff to bid out insurance coverage from time to time, it was my responsibility to analyze the bids and prepare a recommendation for the best coverage for our County. I have had the opportunity to explain the benefits, of being a part of an insurance pool as compared to single entity coverage to the county commissioners, members of the public and our auditors. I served on the committee to review the Brokerage Services request for qualifications, that best serves the interest of the pool members, I have gain considerable knowledge and experience of the processes involved with our insurance pool. I have a Master's in Public Administration and a BA in Accounting. My primary functions as Deputy County Administrator involve Budgeting, Financial Analysis, Risk Management, Human Resources and Grants. Prior to working in Okeechobee County, I was a Budget/Management Analysis for Charlotte County. With my education and work experience, I believe I will continue be an asset to the executive board and provide forethought and insight in the area of risk management and financial skills for the future of Public Risk Management. Respectfully Submitted, R 4, e>ranteet Summary of Qualifications Frank M. Gilbert, SPHR PROFESSIONAL EXPERIENCE • Currently Director of Human Resources and Risk Management for the City of Winter Garden. Manage Internal Services including Facilities and Fleet Management and Administrative Services. • Thirty (30) years Human Resources and Risk Management experience in government, insurance industry, steel manufacturing and construction. ACADEMICS /LICENSES • Bachelor of Science degree in Business Administration • Certified Senior Professional in Human Resources (SPHR) • Florida insurance license for Life, Health and Variable Annuities • Florida Real Estate Salesperson's License. ACHIEVEMENTS Recipient of 14 national team recognition awards for innovative and progressive human resources programs. Examples of the awards include: • Cafeteria style benefits programs • Self insured health benefits and in -house claims processing • Workers Compensation • Wellness programs • Recruitment and selection tools • Citizens Action Center initiative CURRENT AND PAST COMMUNITY AFFILIATIONS • United Way Executive • United Way Committee Member • Big Brothers /Sisters • United Negro College Fund Executive • Muscular Dystrophy Association • American Heart Association • Goodwill Industries Advisory Committee • Vocational School Curriculum Advisory Committee • Opportunity Council Board Member • Crisis Line Volunteer 5 -22 -09 Avon Park, City of 110 E. Main Street Avon Park, FL 33825 -8466 Board Member: Kathy Bennett PRM MEMBERSHIP Telephone # 863- 452 -4405 Fax # 863 - 452 -4413 County of: Highlands Employee # 116 Human Resource Specialist Board Member E -Mail: kbennett @avonpark.cc Alternate: Sarah Adelt City Manager Alternate E -Mail: apcitymanager @avonpark.cc Barron Water Control District P.O. Box 1606 3293 Dellwood Terrace LaBelle, FL 33975 Board Member: Lester Baird Board Member E -Mail: bwcdl @aol.com Alternate: June Shivers Telephone # 863- 675 -0346 Fax # 863 - 675 -9297 County of: Employee # General Manager Administrative Assistant Alternate E -Mail: plcddl @aol.com Belle Glade, City of Telephone # 110 Dr. Martin Luther King, Jr. Blvd, West Fax # County of: Belle Glade, FL 33430 Employee # Board Member: Vivian Hunter Director HR Hendry 561- 996 -0100 561- 993 -1813 Palm Beach 132 Board Member E -Mail: vivian @belleglade -fl.com Alternate: Arrie Patrick Interim Assistant Finance Director Alternate E -Mail: apatrick @belleglade -fl.com Belleair, Town of 901 Ponce De Leon Blvd. Belleair, FL 33756 -1096 Board Member: Joseph P. Murphy Telephone # 727 -588 -3769 Fax # 727 -588 -3778 County of: Pinellas Employee # 80 Assistant Town Manager Board Member E -Mail: jmurphy @townofbelleair.net Alternate: Susan Lee (x311) Human Resources Tech Alternate E -Mail: slee @townofbelleair.net Brooksville, City of 201 Howell Avenue Brooksville, FL 34601. Telephone # 352 -544 -5400 Fax # 352 -544 -5433 County of: Hernando Employee # 137 Board Member: Steve Baumgartner (x101) Finance Director Board Member E -Mail: sbaumgartner @ci.brooksville.fl.us Alternate: T. Jennene Norman-Vacha City Manager Alternate E -Mail: jnvacha @ci.brooksville.fl.us 018 10/1/90 056 10/1/08 040 10/1/96 023 10/1/92 055 10/1/04 Clewiston, City of 115 W. Ventura Avenue Clewiston, FL 33440 -3709 Telephone # Fax # County of: Employee # Board Member: Ted Byrd Finance Director Board Member E -Mail: Ted.Byrd @clewiston - fl.gov Alternate: Laurie Lindsey Ins Coordinator Alternate E -Mail: laurie.Iindsey @clewiston -fl.gov Crystal River, City of 123 North West Highway 19 Crystal River, FL 34428 -3930 Telephone # Fax # County of: Employee # Board Member: Deanna Rowe Finance Director Board Member E -Mail: drowe @crystalriverfl.org Alternate: Linda Stilson Asst Finance Director Alternate E -Mail: lstilson @crystalriverfl.org Desoto County BOCC 201 E. Oak Street, Suite 202 863 - 983 -1484 863- 983 -4055 Hendry 136 352- 795 -6994 352- 795 -6351 Citrus 25 Telephone # 863- 993 -4808 Fax # 863- 993 -4857 County of: Desoto Arcadia, FL 34266 -4451 Employee # 204 Board Member: Jerry Hill Board Member E -Mail: j.hill @desotobocc.com Alternate: Paul Erickson Alternate E -Mail: Eustis, City of P. O. Drawer 68 10 North Grove Street Eustis, FL 32726 -0068 Commissioner Community Services Director p.erickson@desotobocc.com 016 10/1/89 025 10/1/92 003 10/1/99 Telephone # 352 -589 -4040 x1140 (Mike) Fax # 352 -589 -4274 County of: Employee # Board Member: Mike Sheppard (xl 140) Dep Dir Finance Board Member E -Mail: sheppardm @ci.eustis.fl.us Alternate: Ann Isaacs Alternate E -Mail: isaacsa @ci.eustis.fl.us Fort Meade, City of P. O. Box 856 8 West Broadway Fort Meade, FL 33841 -0856 Director HR Lake 272 022 10/1/92 Telephone # 863- 285 -1100 x233 (Phyllis) Fax # 863 - 285 -1124 County of: Employee # Board Member: Phyllis Kirk (x233) Deputy City Clerk Board Member E -Mail: pkirk @cityoffortmeade.com Alternate: Deena Ware Assistant to City Manager Alternate E -Mail: dware @cityoffortmeade.com Glades County BOCC P. O. Box 1018 500 Avenue J Moore Haven, FL 33471 -1018 Board Member: Robert Giesler County Telephone # Fax # County of: Employee # Commissioner Board Member E -Mail: bobgiesler68 @yahoo.com Alternate: Mary Ann Dotson Human Resources Director Alternate E -Mail: mdotson @myglades.com Polk 80 863- 946 -6000 863 - 946 -2860 Glades 160 026 10/1/92 004 10/1/87 Gulf County BOCC 1000 Cecil G Costin Sr Blvd Room 301 Port St. Joe, FL 32456 Board Member: Denise Manuel Telephone # 850- 229 -5335 Fax # 850- 229 -5334 County of: Gulf Employee # 109 HR/Risk Management Director 057 Board Member E -Mail: dmanuel @gulfcounty -fl.gov Alternate: Don Butler Chief Administrator Alternate E -Mail: dbutler @gulfcounty -fl.gov Gulfport, City of Telephone # 727 - 893 -1000 2401 53rd Street, South Fax # 727 - 893 -1005 County of: Pinellas Gulfport, FL 33707 Employee # 170 Board Member: Jennifer Valdes (727- 893- 1021)Human Resources Officer Board Member E -Mail: jvaldes @ci.gulfport.fl.us Alternate: Mercedes Perez (727- 893- 1021)Human Resources Officer Alternate E -Mail: mperez @ci.gulfport.fl.us Hardee County BOCC Telephone # 863- 773 -2161 205 Hanchey Fax # 863 - 773 -2154 County of: Hardee Wauchula, FL 33873 -9691 Employee # 220 Board Member: Jane Long Human Resource Director Board Member E -Mail: jane.long @hardeecounty.net Alternate: Danny Weeks Facilities Director Alternate E -Mail: Hendry County BOCC P. O. Box 2340 165 S. Lee St., Suite A Labelle, FL 33935 danny.weeks@hardeecounty.net Telephone # 863- 675 -5220 Fax # 863- 675 -5317 County of: Hendry Employee # 403 Board Member: Jennifer Davis 863 - 675 -5329 Budget Director Board Member E -Mail: jdavis @hendryfla.net Alternate: Karson Turner 863 - 983- 410lCommissioner cell 863- 228 -4356 Alternate E -Mail: kasont @embarqmail.com Holmes County BOCC 201 North Oklahoma Street Bonifay, FL 32425 -2195 Board Member: Monty Merchant 10/1/08 020 10/1/91 011 10/1/88 005 10/1/87 Telephone # 850 -547 -1119 Fax # 850 -547 -4134 County of: Holmes Employee # 149 Commissioner 046 Board Member E -Mail: sfitzpatrick@holmescountyfl.org (Sherry Fitzpatrick- contact) Alternate: Sherry Fitzpatrick Administrative Assistant Alternate E -Mail: sfltzpatrick @holmescountyfl.org Indian Rocks Beach, City of Telephone # 727 - 595 -2517 1507 Bay Palm Blvd. Fax # 727 -595 -4627 County of: Pinellas Indian Rocks Beach, FL 33785 -2899 Employee # 31 10/1/98 Board Member: Sandy Sanders Finance Director 053 Board Member E -Mail: ssanders @irbcity.com Alternate: Chuck Coward City Manager 10 /1 /00 Alternate E -Mail: ccoward @irbcity.com . Kenneth City, Town of 6000 54th Avenue North Kenneth City, FL 33709 -1806 Board Member: Nancy Beelman Board Member E -Mail: town57 @verizon.net Alternate: Laura Owsley Alternate E -Mail: LaBelle, City of P. O. Box 458 481 W. Hickpochee Avenue Labelle, FL 33975 -0458 town57 @verizon.net Telephone # 727 -544 -6655 Fax # 727 -547 -2038 Dir Personnel Mayor County of: Employee # Pinellas 25 Telephone # 863 - 675 -2872 Fax # 863- 675 -0156 County of: Employee # Board Member: Michael Boyle Supt Public Works Board Member E -Mail: michaelboyle @citylabelle.com Alternate: Lisa Smith Human Resources Director Alternate E -Mail: lisasmith @citylabelle.com Lady Lake, Town of 409 Fennell Blvd. Lady Lake, FL 32159 -3159 Board Member: Guy Shields HR Director Board Member E -Mail: gshields @ladylake.org Alternate: Bill Vance Alternate E -Mail: bvance @ladylake.org Lake Mary, City of P. O. Box 958445 100 N. Country Club Road Lake Mary, FL 32795 -8445 Hendry 50 Telephone # 352- 751 -1555 Fax # 352- 751 -0230 County of: Lake Employee # 94 Town Manager Telephone # Fax # County of: Employee # Board Member: John Litton (407 -585 -1419) City Manager Board Member E -Mail: jlitton @lakemaryfl.com Alternate: Jacqueline Soya (407 - 585- 1409)Dir Finance Alternate E -Mail: jsova @lakemaryfl.com Lake Placid, Town of 311 W. Interlake Blvd. Lake Placid, FL 33852 Board Member: Arlene Tuck Board Member E -Mail: ajt- townoflp @htn.net Alternate: Phil Williams Chief of Police Alternate E -Mail: Ippdchief@yahoo.com Lake Wales, City of P. O. Box 1320 201 W. Central Avenue Lake Wales, FL 33859 -1320 Board Member: Sandra Davis 021 10/1/92 006 10/1/87 042 10/1/97 407 -585 -1400 407 -585 -1464 — Jackie; 407 -585 -1498 - John Seminole 151 Telephone # 863 - 699 -3747 Fax # 863 - 699 -3749 County of: Highlands Employee # 45 Town Clerk Telephone # Fax # Manager HR Board Member E -Mail: sdavis @cityoflakewales.com Alternate: Alternate E -Mail: County of: Employee # 863- 678 -4193 863- 678 -4180 Polk 185 031 10/1/94 037 10/1/96 036 10/1/95 Levy County BOCC P. O. Box 310 355 South Court Street Bronson, FL 32621 -0310 Board Member: Fred Moody Board Member E -Mail: fmoody @circuit8.org Alternate: Jacqueline Martin Alternate E -Mail: jmartin @circuit8.org Longboat Key, Town of 501 Bay Isles Road Longboat Key, FL 34228 -3196 Telephone # 352- 486 -5217 Fax # 352- 486 -5167 County of: Levy Employee # 218 County Coordinator Human Resource Manager Telephone # Fax # County of: Employee # Board Member: Gerald Wilson Purchasing Manager Board Member E -Mail: gwilson @longboatkey.org Alternate: Thomas Kelley Finance Director Alternate E -Mail: tkelley @longboatkey.org Longwood, City of 175 West Warren Avenue Longwood, FL 32750 -4197 Telephone # Fax # County of: Employee # Board Member: Dawn Jackson Personnel Manager Board Member E -Mail: djackson @longwoodfl.org Alternate: Alternate E -Mail: @ longwoodfl.org Moore Haven, City of P. O. Box 399 99 Riverside Drive Moore Haven, FL 33471 -0399 Board Member: Maxine Brantley City Clerk Board Member E -Mail: mbrantley @moorehaven.net Alternate: Melissa Arnold Deputy Clerk Alternate E -Mail: marnold @moorehaven.net New Port Richey, City of 5919 Main Street 941 - 316 -1999 941 - 316 -1656 Manatee /Sarasota 148 041 10/1/97 007 10/1/87 407 - 260 -3481 - Dawn 407 - 260 -3451 Seminole 145 Telephone # 863 - 946 -0711 Fax # 863- 946 -2988 County of: Glades Employee # 22 New Port Richey, FL 34652 -2785 Telephone # 727- 853 -1025 Fax # 727 - 853 -1023 County of: Pasco Employee # 216 Board Member: Jeff Sutton Human Resources Director Board Member E -Mail: suttonj @cityofnewportrichey.org Alternate: Thomas O'Neill City Manager Alternate E -Mail: oneillt @cityofnewportrichey.org North Port, City of 4970 City Hall Blvd. Suite 252 HR -Risk North Port, FL 34286 -4100 033 10/1/94 014 10/1/88 029 10/1/93 Telephone # 941 - 429 -7130 - Steve Fax # 941- 429 -7135 County of: Sarasota Employee # 560 Board Member: Steve Gailbreath Risk Mgmt Coordinator Board Member E -Mail: sgailbreath @ci.north- port.fl.us Alternate: Sherry Borgsdorf (941- 429- 7129)General Services Director Alternate E -Mail: sborgsdorf @ci.north - port.fl.us 008 10/1/87 Okeechobee County BOCC 304 NW 2nd Street, Room 109 Okeechobee, FL 34972 -4187 Telephone # 863- 763 -9312 Fax # 863 - 763 -0118 County of: Okeechobee Employee # 241 Board Member: Robbie Chartier Dep Co Admin Board Member E -Mail: rchartier @co.okeechobee.fl.us Alternate: Lyndon Bonner County Administrator Alternate E -Mail: lbonner @co.okeechobee.fl.us Okeechobee, City of Telephone # 863- 763 -3372 55 S. E. Third Avenue Fax # 863 - 763 -1686 County of: Okeechobee Okeechobee, FL 34974 -2932 Employee # 66 Board Member: Sharon Allison Ins. Coordinator Board Member E -Mail: sallison @cityofokeechobee.com Alternate: Clayton Williams City Councilman Alternate E -Mail: Oviedo, City of 400 Alexandria Blvd. Oviedo, FL 32765 -6764 clayton@bergerinsurance.com 035 1/1/96 047 2/2/99 Telephone # 407 - 971 -5521 - Connie Fax # 407 - 971 -5802 County of: Seminole Employee # 249 Board Member: Connie Collins Human Resources Director Board Member E -Mail: ccollins @cityofoviedo.net Alternate: Keith Straw (407- 971 -5523) Risk/Benefit Coordinator Alternate E -Mail: kstraw @cityofoviedo.net Pahokee, City of 171 N. Lake Avenue Pahokee, FL 33476 -1861 Board Member: Derrek Moore (x20) 045 10/1/98 Telephone # 561- 924 -5534 x20 - Derrek Fax # 561- 924 -7301 County of: Palm Beach Employee # 94 Finance Director 039 Board Member E -Mail: dmoore @cityofpahokee.com Alternate: Stephanie Marsh - Corinthian Assistant Director of Finance Alternate E -Mail: Port Richey, City of 6333 Ridge Road Port Richey, FL 34668 scorinthian @cityofpahokee.com Telephone # 727 - 816 -1900 Fax # 727 - 816 -1916 County of: Pasco Employee # 60 10/1/96 Board Member: Shirley Dresch (x111) City Clerk 027 Board Member E -Mail: cityclerk @copr.net Alternate: Pam Zeigler (x130) Finance Director 10/1/93 Alternate E -Mail: pam @copr.net Punta Gorda, City of 326 W. Marion Avenue Punta Gorda, FL 33950 -4492 Telephone # 941 -575 -3371 - Phil Fax # 941 -575 -3300 or 941 -575 -3359 County of: Charlotte Employee # 265 Board Member: Phil Wickstrom Risk Manager Board Member E -Mail: pwickstrom @ci.punta - gorda.fl.us 010 Alternate: Dave Drury (941 -575 -3336) Finance Director Alternate E -Mail: ddrury @ ci.punta - gorda.fl.us [City Mgr Ofc 941 -575 -3302] 08/8/88 . Safety Harbor, City of 750 Main Street Telephone # 727 - 724 -1555 Fax # 727 - 724 -1566 Safety Harbor, FL 34695 -3553 Board Member: Bill Cropsey Dir Personnel Board Member E -Mail: wcropsey @cityofsafetyharbor.com Alternate: Alan Zimmet City Attorney Alternate E -Mail: azimmet @cityofsafetyharbor.com Sarasota/Manatee Airport Authority 6000 Airport Circle Sarasota, FL 34243 -2105 County of: Pinellas Employee # 166 Telephone # 941 - 359 -5200 Fax # 941 - 359 -5054 County of: Sarasota/Manatee Employee # 120 Board Member: Martin Lange (x4230) Vice President/Chief Financial Officer Board Member E -Mail: martin.lange @srq - airport.com Alternate: John Schussler (x4214) Director of Properties Alternate E -Mail: john.schussler @srq - airport.com Sebring, City of 368 South Commerce Avenue Telephone # 863- 471 -5100 Fax # 863- 471 -5142 019 10/1/91 038 10/1/96 County of: Highlands Sebring, FL 33870 -6694 Employee # 171 Board Member: John Clark Council Member 012 Board Member E -Mail: johnclark @mysebring.com (Charlotte Mann— charlottemann @mysebring.com) Alternate: Mike Eastman Director Finance Alternate E -Mail: mikeeastman @mysebring.com South Florida Conservancy District P 0 Box 969 2832 N. Main Street Belle Glade, FL 33430 -0969 Telephone # 561- 996 -2940 Fax # 561- 996 -2960 County of: Palm Beach Employee # 14 Board Member: David Davis District Manager Board Member E -Mail: districtmanager @ sflcd.com Alternate: Elsie King Alternate E -Mail: elsie @sflcd.com South Pasadena, City of 7047 Sunset Drive South South Pasadena, FL 33707 -2895 10/1/88 030 Bookkeeper 11/1/93 Telephone # Fax # County of: Employee # 727 -347 -4171 727 - 345 -0518 Pinellas 36 Board Member: James Graham Director Finance 024 Board Member E- Mail: finance @ci.south - pasadena.fl.us Alternate: 10/1/92 Aternate E -Mail: St. Pete Beach, City of Telephone # 727 - 367 -2735 155 Corey Avenue Fax # 727 - 363 -9249 St. Pete Beach, FL 33706 Board Member: Gary Behnke Board Member E -Mail: g.behnke @stpetebeach.org Alternate: Mike Bonfield City Manager Alternate E -Mail: citymanager @stpetebeach.org County of: Pinellas Employee # 132 Human Resources Administrator 048 10/1/99 Sun n' Lake of Sebring Improvement Dist 5306 Sun 'n Lake Blvd. Sebring, FL 33872 Telephone # Fax # County of: Employee # Board Member: Dana March District Accountant Board Member E -Mail: dmarch @snldistrict.org Alternate: Ileana Martinez Alternate E -Mail: imartinez @snldistrict.org Tavares, City of P. O. Box 1068 201 E. Main St. Tavares, FL 32778 -1068 Board Member: Crissy Bublitz Board Member E -Mail: cbublitz @tavares.org Alternate: Lori Tucker 863- 382 -2196 863 - 382 -2988 Highlands 63 Telephone # 352- 742 -6211 Fax # 352- 742 -6351 County of: Employee # Human Resources Assistant Human Resources Director Alternate E -Mail: ltucker @tavares.org Temple Terrace, City of Telephone # P. O. Box 16930 Fax # 11250 N. 56th Street County of: Temple Terrace, FL 33687 Employee # Board Member: Woody Hubbard (813 - 506- 6430)Director Personnel Board Member E -Mail: whubbard @templeterrace.com Alternate: Kim D. Leinbach (813- 989- 7105)City Manager Alternate E -Mail: kleinbach @templeterrace.com Wauchula, City of P. O. Box 818 126 South 7th Avenue Wauchula, FL 33873 -0818 Board Member: Telephone # Fax # County of: Employee # James Braddock Director of Finance Lake 128 813 - 989 -7149 813- 914 -7413 Hillsborough 305 863- 773 -3535 863- 773 -6376 Hardee 81 Board Member E -Mail: jbraddock @cityofwauchula.com Alternate: Terri Svendsen Human Resources Specialist Alternate E -Mail: terri @cityof wauchula.com Winter Garden, City of 300 W. Plant Street Telephone # 407 - 656 -4111 Fax # 407 - 877 -2795 Winter Garden, FL 34787 -3099 Board Member: Frank Gilbert (x2247) HR Director Board Member E -Mail: fgilbert @wintergarden -fl.gov Alternate: Peggy Carpenter (x2298) HR Specialist Alternate E -Mail: pcarpenter @wintergarden -fl.gov Zephyrhills, City of 5335 Eighth Street Zephyrhills, FL 33540 -4312 Board Member: Karina Bouthot County of: Employee # Orange 290 Telephone # 813 - 780 -0015 Fax # 813 - 780 -0005 County of: Pasco Employee # 159 Dir Admin Srvs Board Member E -Mail: kbouthot @ci.zephyrhills.fl.us Alternate: Rick Moore Dir Public Works Alternate E -Mail: rmoore @ci.zephyrhills.fl.us 051 10/1/00 015 10/1/89 052 10 /1 /00 013 10/1/88 028 10/1/93 017 10/1/90 PUBLIC RISK MANAGEMENT OF FLORIDA 3434 Hancock Bridge Parkway, Suite 203 North Ft. Myers, Fl. 33903 June 29, 2009 To: All Board Members & Alternates From: Judy Hearn, Asst. Executive Director Secretary, PRM Board of Directors Re: Summary of June 19, 2009 Board Meeting The following is a summary of motions passed at the Board of Directors Meeting held on June 19th in Marco Island, 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 August 14, 2009. Motions Passed Consent Agenda: 1. Approved March 13, 2009 Board Meeting Minutes 2. Approved Treasurer's Report as of March 31, 2009 Regular Agenda: The Board approved the following Amendments to the PRM By -Laws. Article 2 — Definitions and Purpose 2.1. Definitions "Policy Year ": The policy year of the Pool shall be from the date of inception of coverage to the termination of said coverage, or on other dates as approved by the membership in attendance at a scheduled meeting of the membership. "Standard Member /membership" — a Member with the Pool, who finds several benefits in pooling and who values pricing and the ability to select specific lines of coverage, but who chooses not to participate in loss control and /or loss prevention and /or risk management options afforded Preferred Members. "Preferred Member /membership" — a Member with the Pool, who finds several benefits in pooling, including the multiple benefits to be achieved in participating in all available lines of coverage, and who chooses to participate on a fee for service basis in loss control and /or loss prevention and /or risk management options not otherwise usually afforded to Standard Members. Article 4 — Participation and Term 4.2. Notice of Withdrawal: So long as the Pool shall continue in existence, any current or new Preferred Member joining the Pool shall remain a Member for an initial two -year term, except a new Member coming into the Pool after the first day of the policy year shall be obligated to be a member for not less than eighteen (18) months. A new Preferred Member's rates will be guaranteed for their initial term. Any Preferred Member may withdraw from the Pool at the end of the policy year upon serving on the Pool by mail, fax or hand delivery at least one year's prior written notice. Any Standard Member may withdraw from the Pool at the end of the policy year upon serving on the Pool by mail, fax or hand delivery at least forty -five (45) days prior written notice. Such notice shall be addressed to the Executive Director of the Pool and shall be accompanied by a resolution of the governing body of the Member electing to withdraw from the Pool. 4.3. Actual Withdrawal /Required Withdrawal: Any Preferred Member who has served the Executive Director with prior written notice of its intent to withdraw at least one (1) year prior to the beginning of the policy year for which the notice to withdraw is applicable, shall serve in writing to the Executive Director, my mail, fax or hand delivery no later than ten (10) days prior to the beginning of such policy year, a verification as to whether the Member intends to actually withdraw from the Pool at the end of the current policy year. Failure to serve such verification no later than ten (10) days prior to the beginning of the policy year for which notice of intent to withdraw is applied, shall be deemed a revocation of the prior notice of intent to withdraw; thus, binding the Member to the Pool for the ensuing policy year. Provided, however, any Preferred Member who serves written notice of its intent to withdraw from the Pool more than once during any (5) year period may be required, at the option of the Executive Board, to withdraw from the Pool on the second such notice. Said requirement shall not apply to Standard Members of the Pool. An action to expel a Preferred Member in this manner shall be taken by the Executive Board in the manner described in Article 17 hereafter. Any Standard Member who chooses to withdraw from the Pool shall serve the Executive Director with prior written notice of its intent to withdraw at least forty -five (45) days prior to the beginning of the policy year for which the notice to withdraw is applicable, in writing to the Executive Director, by mail, fax or hand delivery a verification as to whether that Standard Member intends to actually withdraw from the Pool at the end of the current policy year. Failure to serve such verification at least forty -five (45) days prior to the beginning of the policy year for which the notice to withdraw is applicable shall be deemed as actual binding consent on the part of the Standard Member to remain a Standard Member of the Pool, binding that Member to the Pool for the ensuing policy year. 4.4. Admission of New Members: The Pool's Executive Board shall establish and periodically review standards and the approval process for the admission of new Members. Upon approval of these standards and of the approval process for admission by the Board of Directors, the Pool's Executive Board may grant or deny admission to proposed new Members based upon such criteria. Consideration of new Members will be communicated to all PRM Board Members by the Executive Director for any information or feedback that a Member may have regarding the prospective member. Article 6 — Board of Directors of the Pool 6.3. Board Responsibilities: The Board of Directors shall have the responsibility for: (1) hiring of Pool officers, agents, non - clerical employees and independent contractors; (2) setting of compensation for all persons, firms and corporations employed by the Pool; (3) approval of amendments to the Intergovernmental Agreement; (4) approval of the acceptance of new Members and expulsion of Members, except that the approval may be delegated to the Executive Board under Article 4 above, or by such procedures as are contained in the motion making delegation; (5) approval and amendment of the annual budget of the Pool; (6) approval of the operational procedures developed by the Executive Director; (7) approval of educational and other programs relating to risk reduction; (8) approval of reasonable and necessary loss reduction and prevention procedures which shall be followed by all Members; (9) approval of Annual Payments to the Risk Management Pool for each Member; and (10) termination of the Pool in accordance with this Intergovernmental Agreement. 6.4. Voting: Each Preferred Member shall be entitled to one (1) vote on the Board of Directors. Standard Members have no entitlement to any vote on the Board of Directors, or otherwise. Such vote by each Preferred Member may be cast only by the Representative of the Preferred Member or in the Representative's absence by the Alternate. No proxy votes or absentee votes shall be permitted. Voting shall be conducted by show of hands or any method established by the Board that is consistent with Florida law. A simple majority vote of those Representatives present shall be required to pass on any motion. On such matters, the Chairman and the Executive Director of the Pool shall cause each Member's Representative and Alternate to receive the proposed ballot which will include at a minimum the text of the motion to be voted upon and the purpose of such motion. Only the Representative or the Alternate may vote on such ballots (not both). If both the Alternate and Representative submit ballots, only the Representative's ballot will be counted. Favorable votes by a majority of the Members' Representatives (or Alternates in their absence) entitled to vote shall pass any action unless an action is taken which is subject to 6.9 below, in which case passage will be based on the required number of votes as if each Member's Representative or Alternate was present at a regular or special meeting called to decide such question. 6.6. The Executive Board and other Committees: The Board of Directors shall establish an Executive Board (known previously in this Agreement as Executive Committee). That Executive Board shall consist of the Chairman of the Board of Directors, the Vice Chairman of the Board of Directors, the Treasurer and four (4) Representatives elected by the Board of Directors. The Executive Board shall have the power to establish both standing and ad hoc committees to further the functions and purpose of this Pool. Unless the Board of Directors establishes some other procedure, the authority for selection of Representatives or Alternates serving on the Executive Board who shall serve on such committees and chair them shall reside with the Chairman of the Board of Directors. The Chairman of the Board of Directors may appoint non - voting and non -paid persons who are not Members of the Board of Directors to serve on committees of the Pool. The Executive Board shall dictate to the Executive Director the guidelines for authorizing the settlement of claims. The Board of Directors shall, bi- annually select the four (4) Representatives during the final quarter of each two -year term to serve during the subsequent two -year term. The term of office for the four (4) Representatives shall begin on the first day of a fiscal year and expire on the last day of a fiscal year. The Executive Board shall have the specific authority and power, as afforded herein by the Board of Directors, to grant binding approval for, and on behalf of, the Pool to bind any and all coverages for both Preferred Members and Standard Members with excess insurers, reinsurers, specific excess insurers, insurance underwriters, insurance wholesalers, insurance brokers and /or intermediaries, and with independent insurance contractors providing and /or affording both insurance and self - insurance coverages to the Pool Members. The Board of Directors shall grant to the Executive Board the authority to approve expenditures, authorize a settlement of claims and suits and take such other action as shall be specifically delegated to the Executive Board. 6.8. Quorum: A quorum shall consist of a majority of the Representatives (or in their absence their Alternates) serving on the Board of Directors, or serving on the Executive Board. Except as provided in Section 6.9. herein, or elsewhere in this Intergovernmental Agreement, a simple majority of a quorum shall be sufficient to pass upon all matters. 6.9. Super- Majority Voting: 6.9.2. Deleted entirely from the By -Laws 6.9.4. The amendment of this Intergovernmental Agreement to cause a reduction or elimination in the scope of loss protection set out in Article 10 to be furnished by the self - insurance pool derived from payments from the Members, shall require that specific written notice of the proposed change be sent by registered or certified mail to the governing body of the Member and to the Representative serving on the Board of Directors, no less than ten (10) days prior to a meeting of the Executive Board at which this matter is proposed and the amended as proposed or as amended must receive the approval of at least five (5) out of seven (7) Representatives of the then current Executive Board representing the then Members of the Pool. 6.9.5. In the event of a reduction or elimination in the scope of loss protection as set forth in Article 10 of this Intergovernmental Agreement receives the approval of at least five (5) out of the seven (7) Representatives of the then - current Executive Board as set forth in section 6.9.4, any Member may request, within twenty (20) days of the Executive Board voting to approve such reduction or elimination in the scope of loss protections as set forth in Article 10 of this Intergovernmental Agreement, in writing to the Chairman of the Board of Directors that the Executive Board, at a special meeting, take official action to affirm, modify or reverse a decision of the Executive Board affecting the reduction or elimination in the scope of loss protection as set forth in section 6.9.4. The Member shall be provided a full opportunity to explain their position to the Executive Board. The Executive Board, by majority vote, may affirm, modify, reverse or defer the matter to the Board of Directors. Any Member who disagrees with the Executive Board's final determination may request in writing, within twenty (20) days of the Executive Board's final determination, that the Board of Directors take action to affirm, modify or reverse the decision of the Executive Board. The Member shall be provided a full opportunity at a special, or regular, meeting to explain their position to the Board of Directors. The Board of Directors, by majority vote of the Members, may affirm, modify or reverse the final determination or decision of the Executive Board. Failure on the part of any Member to comply timely with the requirements for appealing the determination by the Executive Board to the Board of Directors within twenty (20) days thereof shall be deemed to be a waiver of any contractual, legal or other rights of appeal by, or on the part of, that Member. Article 7 — Board of Directors Meetings 7.1. Meetings. The Executive Board will establish regular meetings, which shall be held at least four (4) times a year. Regular meetings of the Board of Directors may be held up to four (4) times a year. The tentative times, dates, and locations of regular meetings of the Board shall be established at the beginning of each fiscal year, and the Executive Board will establish the tentative times, dates and locations of its regular meetings, and give timely and appropriate prior notice of said meetings to all Preferred and Standard Members. Any item of business may be considered at a regular meeting, including the scheduling of future regular meetings. The Executive Director shall attend all Board meetings and Executive Board meetings to serve as an advisor and to report as the administrative officer of the Pool. Article 8 — Pool Officers 8.2.1. The Executive Director may sign, with such other person authorized by the Board of Directors or by the Executive Board, any instruments which the Board of Directors or Executive Board have authorized to be executed and, in general, shall perform all duties incident to the office of Executive Director and such other duties as may be prescribed by the Board of Directors. 8.2.2. The Executive Director shall prepare a proposed annual budget and proposed Risk Management Pool Annual Payment and shall submit such proposals to the Board of Directors, and to the Executive Board. Article 9 — Finances and Risk Management Pool 9.2. Budget: The Board of Directors shall approve a preliminary budget for the administration of the Pool. Copies of all preliminary and final budgets shall be promptly mailed to each Member of the Board of Directors. The Board of Directors shall adopt a final budget and determine the amount of the Annual Payment to be made by each Member and the date upon which the payment is due. 9.3. Annual Payment Factors: In determining the amount of the Annual Payment due from each Member, the Executive Board may consider some or all of the following factors: 9.3.1. Number of employees; 9.3.2. Property values of the Member; 9.3.3. Number and type of vehicles owned by the Member and the use made of the vehicles; 9.3.4. Population of the geographic area represented by the Member; 9.3.5. The payrolls of the Member; 9.3.6. Any unusual exposures presented by the Member; 9.3.7. The operating expenditures of the Member; and 9.3.8. The claims and loss experience of the Member. 9.4. Budget Amendments: Budgets may be amended at any time by majority vote of the Board of Directors. Article 10 — Excess Insurance 10.1. Specific Excess Insurance: The Pool may purchase Specific Excess Insurance from underwriters of insurance, insurance companies and /or Lloyd's of London, approved by the Board of Directors, or any committee appointed by the Board for such purpose, in such amounts which shall be approved by the Board of Directors and underwriters, based upon but not limited to the current assets, risk analysis, and loss history of the Pool. The purchase of Specific Excess Insurance does not, and is not, intended to waive sovereign immunity under Florida law. 10.3. Multiple Loss Coverage: The Pool may purchase Multiple Loss Coverage in the event a single occurrence involves more than one line of coverage, limiting the occurrence to a single "Self Insured Retention." Article 11— Obligations of Members 11.2. Cancellation/Suspension of Coverage: In the event that a Member has made a material misstatement or failed to comply with an underwriting requirement that created a substantial change in risk exposure, the Executive Board has the authority to cancel or suspend coverage. The Member shall be notified of the reason in writing by the Executive Director and given a reasonable time to take corrective measure prior to the Executive Board's action. Article 15 — Coverage & Indemnity Dispute Resolution 15.1. After having reviewed a claim forwarded to the Pool, the Executive Director, officer, employee or independent contractor shall, in writing, be permitted to decline to provide coverage or indemnification for such claim not believed to be within the scope of coverage provided by the Pool. The claim may also be accepted and defense provided but the Pool may reserve the right to withdraw from the defense or to refuse to provide indemnification against the claim in the event that it is later determined that the claim is not properly within the scope of coverage afforded by the Pool. Any Member may request in writing to the Chairman of the Board of Directors, that the Executive Board, at a regular scheduled meeting, take official action to affirm, modify or reverse a decision that a particular matter is or is not within the scope of coverage or indemnification provided by the Pool. The Member shall be provided a full opportunity to explain their position to the Executive Board. The Executive Board, by majority vote, may affirm, modify, reverse or defer the matter to the Board of Directors, subject to any insurance or reinsurance contractual obligations. Any Member who disagrees with the Executive Board's determination may request in writing that the Board of Directors, at a regular scheduled meeting, take action to affirm, modify or reverse the decision of the Executive Board. The Member shall be provided a full opportunity to explain their position to the Board of Directors. The Board of Directors, by majority vote of the Members, may affirm, modify or reverse the decision of the Executive Board, subject to any insurance or reinsurance contractual obligations. Any Member may seek binding arbitration, if available, pursuant to the Pool's General Coverage Document and, is not required to appeal a coverage or indemnification declination to either the Executive Board or Board of Directors. Article 17 — Expulsion or Termination of Members 17.1. Expulsion. By the vote of two - thirds (2/3) of the Directors serving on the Board of Directors, and /or by a vote of at least five (5) out of the seven (7) Members serving on the Executive Board on decisions, determinations or issues involving section 4.3 of this Intergovernmental Agreement, any Member may be expelled. Such expulsion may be carried out for one or more of the following reasons: 17.1.6. The Preferred Member has given the one (1) year notice described in Section 4.2. and 4.3. above. Approved motion to grandfather in all existing Members as Preferred Members. Approved extension of property renewal with PEPIP from April 1, 2010 to June 1, 2010 utilizing $1.3 million from surplus funds as a participation credit to fund the additional two months. Election of Officers — Elections for a 2 -year term were held for Board Officers, the Vice Chairperson and two Representatives. Vice Chairperson —Mr. Sutton was re- elected Vice Chairperson for the 2 -year term, commencing 10 -1 -09. Representative — Robbie Chartier was re- elected as Representative for the 2- year term, commencing 10 -1 -09. Representative — Woody Hubbard was elected as Representative for the 2 -year term, commencing 10 -1 -09. Elections were held for newly created officers of the Executive Board: Representative — Frank Gilbert was elected as Representative for the 1 -year term, commencing 10 -1 -09. The Chairman appointed Mr. Gilbert to begin serving on the Executive Board immediately. Representative —Mr. Baird was elected to serve as Representative for the 1- year term, commencing on 10 -1 -09. The Chairman appointed Mr. Baird to begin serving on the Executive Board immediately. WwW' ✓y1 of\o-Api - %CAS w C' l l cf n c e, C0m Lckik401 ,04?_ &10L(11;19"" CID o - m 4 /0-7,1-6L — 6,24-69 1-21,0±kjer 1-1 aqiJiv iizzp era (�,� x-,1( - I YOAA I4 T kg w (64/9 4- 6.11 e 044-15,7 aid - LA) Ut4- iLi&44A) 7)A.) 1A3cA(g_ )-o 11-M4 - A (); 1/,(At- 11�do 4-, � d77AAJ.� Gam, - U - - 12.40vd Sca - C9 619/47{S G-(kuie 1,r,,,idin ( I - Pam I1QW - G (LS - c�nyUc,,icf2 = -77-.e &kf 1Z431° 0.62AJ -S e144 - P4 FF 4.4„4--c/ 2,et-o 3,000 P�/�,,o-<,,w� 1-slcc T 0,0C nu 04t;1 1(11 CoL/M ',U6k1/9 6"- Ak4Le \114L °CEU" C2c4j,b0-71 GI '1216446. /742J �,�,� - ss 7 s S) Fa ri-roi c4 wwkr,dd joy/ esa/whc1 /gym riA)e /rte Cifvl U/C sql wAd J�,YYt ��t/ 7``r�i. ��/r /L° / wT/ c )7. 6.) c0 Q - 3s Yo bo-p, 01,14-Z pcxyzAre/ 76e, 4.5-6/6 tuuku - w-dt)ltie4 -7) Tn,-,279N \ictol-;6;-;, 4-0-42,4V6--„co C l � Ch, /A-i v / o1/% 70 G /A)/Q- G �� VoP lad �nJAL Ei - (9 P-(4-4 4 , 3) P060 C)-ti,o(cy 7) S.c.U42, Yo lW/wQ 0\cd Cou eAae) Qty yp L /?k .� vi L0'0 4'zF, ,Oue 0 C0-71/i1.6-1— p _ -1,(1 f—E2774 — --C)-3 3 Levu, _ % 5 f-41v - fipaa176-,-1 - a) (() 4-t,()-7-2-21 KicAVy4 7"hzt. 6)a),S6/5t,4-7 ‘6,;j_ e;jejL`3' / "24- (f- C 7.:(0,„t*iu t,(4-t-, (07 O71_ Plyotj o-7\4A-0-}- sir -sjj s � d,J;, ?- - L:0 y sve„LN • )4riA-J ed_394 /u,,,f;‘ _ ),c)? p_e;)-.(g 5� 50-0 .5-7Srr-r) Clif/ EXt- 44 &=`, ,L,;,,)68„Lic,Liez,„/ 44t4 d �� – )_.,„k cA old ?- -36, 0/0 4171 6a - C7 eh --uoi )0k: (02 v (4)64 ,,o_„ci 6t.J-Jz ,ste47 /96---±4J eit si _ coccr,(;6 / et-4- Pi)Lil (1)(1,_e,uct,i (,),t 01) / / ,bt a14-,Lefit„4/ 50_71,e L.7te,4,6tu4 ci4,10.3 or,44_,„ .1) a.) 0) 64, --721/0,6 6,(A,(41,;(t_ Gpj al061 items �'-v� , 1-00 Zosi pAr A46, ktvp,6„. — k›U '-q41AHA) ffl 71"(0 sact-y-7 )elpx.e_u,) A,--f6At7zg4 &41 - Vo--(,/u a-‘44k). a '6-r-1,- Nogoag - � s� ,p 4V agrA,2, -rd to �s v.1s � 1 '" - {it�'i Gam' 49�iL�� � C�✓�Gc. '� 791/udyj.elcttc,,y, piLt,ryl 76,a A4s -J2-kie);-ea LLOCji\-0O204, - igtAJ 4tA4ei/ _ '` „)(x,014 Ca.4.4if 127 owe." e)2--c,y-r4,, inoo 4A91, .0,10 4\QA'A- a/Gty_av, dAl-vtj aso.'6„— 6uRoLc-upti6 _J,A--w e-1 No 60s4 -. t4) 1-rAyte Joff__0 0-(A}-7, ov�� too, ((6/ 0421,4 11-u( 1:p'6 (c (A, ptiztl _ 177y-Az-I t4/, of,/, a4AL .."Y 2')/144i ,S4n-,/ -°/ C' -rte, o 1 d {6, a( /l ozz, ate' r%/ ./A,. G� C(k"c /1/