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2009-11-13 BOD Meeting
10:00 a.m. PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING The Terrace Hotel Lakeland, FL November 13, 2009 Call To Order Welcome New Members: AGENDA John Litton, Chairperson Preferred Member: City of Florida City — Mark Ben -Asher Standard Members: City of Key Colony Beach — Vickie Bollinger Town of Lantana — Tia Marie Kitchen City of Maitland — Theresa Walker, Sharon Anselmo Port of Palm Beach — Paul Zielinski Seacoast Utility Authority — Hope Dexter Consent Agenda 1. Request Approval of June 19, 2009 Board Meeting Minutes 2. Request Approval of Treasurer's Report as of September 30, 2009 Any Board Member may request to have an item removed from the Consent Agenda and placed on the Regular Agenda for further discussion. Regular Agenda 3. Executive Director's Report A. 2010 On -Site Property Appraisals B. H1N1 Claims C. Phone In Claim Reporting — Bonnie Mims, Sr. Loss Prevention Consultant D. On -Line Training — Bonnie Mims, Sr. Loss Prevention Consultant E. FEMA Training & HR Roundtable — Bonnie Mims, Sr. Loss Prevention Consultant Ross Furry, Executive Director 4. Insurance Advisor's Report A. What Competition Offers Compared to PRM 5. Broker's Report A. New Members to PRM B. C. D. E. Glenn Tobey, Tobey & Associates Andy Cooper, World Risk Management Marketing Brochure & Inserts Renewal Applications — Status Market Conditions Coverage for Inverse Condemnation & Non Monetary Claims 6. Legal Update Donovan Roper, Esquire A. Hammer vs. Punta Gorda /Okeechobee Lawsuit 7. Board Member Items A. 2010 Meetings /Locations Public Comment: State full name and address. Discussion must be limited to a maximum of five (5) minutes per person. Adjournment Luncheon immediately following n r. ..1 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING NOVEMBER 13, 2009 CONSENT AGENDA SUMMARY 1. Request Approval of June 19, 2009 Board Meeting Minutes Background: Meeting Minutes attached 2. Request Approval of Treasurer's Report as of September 30, 2009 Background: Financial Reports Attached Board Action: Approved Denied Deferred Other L" 1. BOARD MEETING MINUTES 6/19/09 PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING HILTON BEACH RESORT, MARCO ISLAND, FL June 19, 2009 MINUTES Attendance: Kathy Bennett, City of Avon Park; Lester Baird, Barron Water Control District; J. P. Murphy, Town of Belleair; Vivian Hunter, City of Belle Glade; Laurie Lindsey, City of Clewiston; Linda Stilson, City of Crystal River; Jerry Hill, DeSoto County BOCC; Mike Sheppard, City of Eustis; Mary Ann Dotson, Glades County BOCC; Denise Manuel, Gulf County BOCC; Jennifer Valdes, City of Gulfport; Jane Long, Hardee County BOCC; Jennifer Davis, Hendry County BOCC; Chuck Coward, City of Indian Rocks Beach; Nancy Beelman, Town of Kenneth City; Lisa Smith, City of LaBelle; Guy Shields, Town of Lady Lake; John Litton, City of Lake Mary; Arlene Tuck, Town of Lake Placid; Sandra Davis, City of Lake Wales; Jacqueline Martin, Levy County BOCC; Thomas Kelley, Town of Longboat Key; Katrina Powell, City of Longwood; 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; Stephanie Marsh - Corinthian, City of Pahokee; Shirley Dresch, City of Port Richey; Dave Drury, City of Punta Gorda; Martin Lange, Sarasota /Manatee Airport Authority; Mike Eastman, City of Sebring; David Davis, South Florida Conservancy District; 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 Absent: City of Brooksville, City of Fort Meade, Holmes County BOCC, City of Moore Haven, City of Safety Harbor, City of South Pasadena, City of St. Pete Beach Chairperson John Litton called the meeting to order at 9:05 a.m. with a super majority present. Consent Agenda 1. Request Approval of March 13, 2009 Board Meeting Minutes 2. Request Approval of Treasurer's Report as of March 31, 2009 Dave Drury made a motion to approve the consent agenda. Sharon Allison seconded the motion and it was unanimously approved. Regular Agenda 3. Executive Director's Report A. 2009 Florida Legislative Changes to Attorney's Fees — HB903 — Recent legislative changes involve basing attorney fees on a percentage of benefits secured, except on medical only claims which will be capped. It is anticipated this ruling will be challenged as unconstitutional. B. Mega- Trends Influencing the Workers' Comp Insurance Industry — The informational article examined trends in the Workers' Compensation Insurance Industry and indicated four items driving costs for self insurers: 1. Medical Claim Cost Inflation 2. Indemnity Claim Cost Inflation 3. The Aging Workforce 4. The Obesity Epidemic C. Member Notices to Withdraw 3/31/10 = Fourteen members 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 D. 2010 PRM Educational Conference — Discussion on Location — Members were asked for suggestions on a location for next year's conference. Available dates for the conference if held at the Hilton Beach Resort on Marco Island are June 15 -19th. 2 4. Broker's Report A. WRM Strategic Marketing Plan — In order for PRM to remain competitive and increase membership, the broker recommended several changes, requiring revisions to By -Laws. Marketing the entire State of Florida, including school districts and other special taxing districts, will better spread risk. Two tiers of membership, Preferred and Standard, were discussed. Preferred Members will purchase all lines of coverage, have voting rights and continue to abide by the 1- year notice requirement to withdraw from the Pool. Additional benefits consist of the capping of premium increases, availability of all loss prevention programs, as well as no registration fees for the annual conference. Standard Members will have the opportunity to purchase only one or two lines of coverage. Fees for loss prevention services will be assessed to this membership category. Voting privileges will not be extended to Standard Members, and to withdraw from the Pool, a 45 -day notification will be required. Expansion of the Executive Board to allow more flexibility and quicker decision making was recommended. A more contemporary PRM logo was also suggested. 5. Legal Counsel A. Request Board of Directors Action on Amendments to PRM By -Laws — Mr. Roper summarized all changes and read into the record each revision prior to Board action. Article 2.1. Definitions Proposed: "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. BOARD ACTION: Dave Drury made the motion to approve proposed policy year definition. James Braddock seconded the motion, and it was unanimously approved. Proposed: "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 Toss control and /or loss prevention and /or risk management options afforded Preferred Members. 3 Proposed: "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. BOARD ACTION: Lester Baird made a motion to accept definitions of the two membership categories. Frank Gilbert seconded the motion, and it was unanimously approved. Article 4.2. Notice of Withdrawal: Proposed: 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. BOARD ACTION: Woody Hubbard made a motion to approve notice of withdrawal obligations for Preferred and Standard Members. Nancy Beelman seconded the motion, and it was unanimously approved. Article 4.3. Actual Withdrawal /Required Withdrawal. Proposed: 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 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 five (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 notices 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. BOARD ACTION: Mr. Gilbert made a motion to approve obligations of Preferred and Standard Members on actual withdrawal requirements and changing Executive Committee to Executive Board. Mr. Braddock seconded the motion, and it was unanimously approved. Article 4.4. Admission of New Members: Proposed: 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. BOARD ACTION: Mr. Drury made a motion to approve change of Executive Committee to Executive Board under Article 4.4. Ms. Allison seconded the motion, and it was unanimously approved. Article 6.3. Board Responsibilities. Proposed: 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 Toss 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. BOARD ACTION: Mr. Murphy made a motion approving the change from Executive Committee to Executive Board under Article 6.3. Connie Collins seconded the motion, and it was unanimously approved. Article 6.4. Voting: Proposed: 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. BOARD ACTION: Mr. Baird made a motion to approve wording that Preferred Members are entitled to vote and Standard Members have no voting rights. Kathy Bennett seconded the motion, and it was unanimously approved. Article 6.6., The Executive Board and other Committees: Proposed: 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. BOARD ACTION: David Davis made a motion to approve the Executive Committee's name change to Executive Board, expanding its size by two Representatives, removing designated northern and southern areas, and granting the Executive Board authority to bind coverage for the Pool. Denise Manual seconded the motion, and it was unanimously approved. Article 6.8. Quorum: Proposed: 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. BOARD ACTION: Steve Gailbreath made a motion to add Executive Board in the definition of a quorum. Mr. Hubbard seconded the motion, and it was unanimously approved. Article 6.9.2 Proposed: The expulsion of a Member shall require two - thirds (2/3) vote of all the Representatives serving on the Board of Directors, and /or by the Executive Board pursuant to subsection 17.1.6 of this Agreement. BOARD ACTION: Mr. Murphy made a motion to delete 6.9.2. entirely from the existing By -Laws. Mr. Drury seconded the motion, and it was unanimously approved. Article 6.9.4 Proposed: 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 or Alternates of the then current Executive Board representing the then Members of the Pool. The proposed change was amended to remove "or Alternates" wording. BOARD ACTION: Mr. Baird made a motion to approve amended Article 6.9.4. Ms. Manuel seconded the motion, and it was unanimously approved. Article 6.9.5 Proposed: 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 or Alternates 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 Toss 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. Proposed wording was amended to remove "or Alternates" from the first paragraph of Article 6.9.5. BOARD ACTION: Ms. Collins made a motion to approve Article 6.9.5. as amended. Mr. Hubbard seconded the motion, and it was unanimously approved. Article 7.1. Meetings: Proposed: 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. BOARD ACTION: Ms. Manuel made a motion to approve meeting requirements of the Executive Board and Board of Directors. Mr. Gailbreath seconded the motion, and it was unanimously approved. Article 8.2.1. Proposed: 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. BOARD ACTION: Mr. Gilbert made a motion to approve addition of Executive Board to Article 8.2.1. Lisa Smith seconded the motion, and it was unanimously approved. Article 8.2.2. Proposed: 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. BOARD ACTION: Mr. Drury made a motion to approve addition of Executive Board to Article 8.2.2. Mr. Murphy seconded the motion, and it was unanimously approved. Article 9.2. Budget: Proposed: The Executive Board 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 Executive Board 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. BOARD ACTION: Katrina Powell made a motion to approve as proposed, with Jane Long seconding the motion. After further discussion, Ms. Powell and Ms. Long withdrew their motion. Guy Shields made a motion to leave budget approval under the direction of the Board of Directors. Ms. Collins seconded this motion, and it was unanimously approved. 9.3. Annual Payment Factors: Proposed: 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. BOARD ACTION: Mr. Davis made a motion to approve the Article 9.3. The Executive Board may determine annual payment factors for premium payments due from each Member. Mr. Drury seconded the motion, and it was unanimously approved. Article 9.4. Budget Amendments: Proposed: Budgets may be amended at any time by majority vote of the Executive Board. 10 BOARD ACTION: Marty Lange made a motion to amend the proposed change, leaving budget amendment responsibility with the Board of Directors. Ms. Allison seconded the motion, and it was unanimously approved. Article 10.1. Specific Excess Insurance: Proposed: 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. BOARD ACTION: Ms. Manual made a motion to change wording from shall purchase Specific Excess Insurance to may purchase Specific Excess Insurance. Mr. Davis seconded the motion, and it was unanimously approved. Article 10.3. Multiple Loss Coverage: Proposed: 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." BOARD ACTION: Ms. Long made a motion to change wording from will purchase Multiple Loss Coverage to may purchase Multiple Loss Coverage. Ms. Manuel seconded the motion, and it was unanimously approved. Article 11.2. Cancellation /Suspension of Coverage: Proposed: 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. BOARD ACTION: Mr. Braddock made a motion to approve Article 11.2, changing name of Executive Committee to Executive Board. Mr. Davis seconded the motion, and it was unanimously approved. Article 15.1. Proposed: 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. BOARD ACTION: Mr. Gailbreath made a motion to approve wording change from Executive Committee to Executive Board throughout Article 15.1. Ms. Powell seconded the motion, and it was unanimously approved. Article 17.1. Expulsion. Proposed: 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 Toss 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. BOARD ACTION: Mr. Gilbert made a motion to approve Article 17.1 as proposed. Ms. Beelman seconded the motion, and it was unanimously approved. Mr. Murphy made a motion to approve Article 17.1.6. indicating the Preferred Member requirement to provide one year notice. Mr. Gailbreath seconded the motion, and it was unanimously approved. Ms Beelman made a motion to grandfather in all existing members as Preferred Members. Mr. Drury seconded the motion, and it was unanimously approved. 6. Request Board Approval to Extend Property Renewal with PEPIP until 6/1/10 — Recommendation was made by the broker to extend the property renewal with PEPIP to June 1, 2010, at current pricing to coincide with their nationwide renewal to receive additional advantages. The Executive Director recommended using $1.3 million from surplus as a participation credit to fund the additional two months. BOARD ACTION: Mr. Drury made a motion to extend the property renewal with PEPIP until 6/1/10, utilizing surplus funds as a participation credit to purchase coverage. Ms. Beelman seconded the motion, and it was unanimously approved. 7. Election of Officers — Elections for a 2 -year term were held for current Board Officers: Vice Chairperson and two Representatives. Vice Chairperson — Jeff Sutton expressed interest in continuing to serve as Vice Chairperson. No nominations were received from the floor. Mr. Gilbert 13 made a motion to re -elect Mr. Sutton as Vice Chairperson. Mr. Shields seconded the motion, and it was unanimously approved. Mr. Sutton was re- elected Vice Chairperson for the 2 -year term, commencing 10 -1 -09. Representative — Robbie Chartier expressed interest in continuing to serve as Representative. No nominations were received from the floor. Mr. Gilbert made a motion to re -elect Ms. Chartier as Representative. Ms. Allison seconded the motion, and it was unanimously approved. Ms. Chartier was re- elected Representative for the 2 -year term, commencing 10 -1 -09. Representative — Woody Hubbard indicated interest in serving as Representative for the 2 -year term that will be vacated by Jennifer Valdes on 9- 30 -09. No other nominations were received from the floor. Ms. Beelman made a motion to elect Woody Hubbard as Representative to the 2 -year term, commencing 10 -1 -09. Linda Stilson seconded the motion, and it was unanimously approved. Elections were held for newly created officers of the Executive Board: Representative — Frank Gilbert expressed his interest in serving as Representative to the Executive Board. No other nominations were received from the floor. Ms. Long made a motion to elect Frank Gilbert as Representative to the 1 -year term, commencing 10 -1 -09. Mr. Gailbreath seconded the motion, and it was unanimously approved. Although the term of office commences on 10 -1 -09, the Chairman appointed Mr. Gilbert to immediately begin serving on the Executive Board. Representative — Steve Gailbreath and Lester Baird expressed their interest in serving as Representative for the 1 -year term. No other nominations were received from the floor. By show of hands, a tie was confirmed for each nominee. Executing his vote, the Chairman selected Mr. Baird to serve as Representative for the 1 -year term, and although the term of office commences on 10 -1 -09, the Chairman appointed Mr. Baird to immediately begin serving on the Executive Board. 8. Insurance Advisor's Report — Mr. Tobey reiterated the need to remain competitive and thanked the Board for approving recommended changes. To attract new members, he will be working with World Risk Management and independent agents throughout the State. 9. Guest Speaker: Karen Fontenont, CPA — The Pool's independent auditor presented management responsibilities and communication requirements associated with the PRM audit for the year ending September 30, 2008. 14 10. Board Member Items There were no Board Member items. There was no public comment. Meeting adjourned at 12:55 p.m. Respectfully submitted, Judith A. Hearn Assistant Executive Director Secretary to PRM Board JAH:smb O:Wudy\BD MTGS\Board of Directors Meeting 6 -19 -09 15 JUNE 19, 2009 @ 9:00 A.M. _.-- .a.-- _ _ ...� �.-•_ .-. 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 Holmes County BOCC Indian Rocks Beach, City of PUBLIC RISK MANA EMENT OF FLORIDA BOARD OF D)CTORS MEETING MARCO ISLAND, FLORIDA Kathy Benn Lester Baird Steve Baumgartner Ted Byrd Sarah Adelt June Shivers Susan Lee Arrie Patrick T. Jennene Norman -Vacha Laurie Lindsey Linda S, ison Paul Erickson Deanna Rowe Mike Sheppard Phyllis Kirk Robert Giesler Denise Manuel Monty Merchant Sandy Sanders Ann Isaacs Don Butler Mercedes Perez Danny Weeks Karson Turner Sherry Fitzpatrick huck Coward Kenneth City, Town of LaBelle, City of Lady Lake, Town of Lake Mary, City of Lake Placid, Town of Lake Wales, City of Levy County BOCC Longboat Key, Town of Longwood, City of Moore Haven, City of New Port Richey, City of North Port, City of Okeechobee, City of Okeechobee County BOCC Oviedo, City of Pahokee, City of Port Richey, City of Punta Gorda, City of Safety Harbor, City of 44 f d Na cy Bee Michael Boyle Gu :Shhields Fred Moody Robbie Chartier Connie Collins j r � Derrek Moore Phil Wickstrom Bill Cropsey Jacqueline Soya Phil Williams Thomas ' elley Dawn Jackson Melissa Arnold Thomas O'Neill Lyndon Bonner tephani Marsh- Corinthian Pam Zeigler David Drury Alan Zimmet Sarasota/Manatee Airport Authority Sebring, City of South Florida Conservancy South Pasadena, City of St. Pete Beach, City of Sun n' Lake of Sebring Tavares, City of Temple Terrace, City of Wauchula, City of Winter Garden, City of Zephyrhills, City of John Clark David Davis James Graham Gary Behnke Dana March UILLL6.r John Schussler Mike Eastman Elsie King Mike Bonfield ,1f ►1 a� Ileana M Lori Tucker Kim D. Leinbach Terri Svendsen Peggy Carpenter Katrina Bouthot Rick Moore GUESTS / ADDITIONAL ATTENDEE SIGN IN SHEET + + + + JUNE 19, 2009 Name Entity / Company Signature 0-r &be( a 16)vu., u(;391v2,>6 ,7- -7`' Y 556 G 2. TREASURER'S REPORT AS OF 9/30/09 PUBLIC RISK MGMT OF FL BALANCE SHEET SEPTEMBER 30, 2009 CURRENT ASSETS PETTY CASH $ 75.00 OPERATING - BB & T 25,131,315.63 CASH - C.D. 30,000,000.00 A/R MEMBERSHIPS 37,659.78 A/R TRADE 3,218.46 A/R - PRM GR HLTH 3,715.20 A/R CONSULTANT FEE - MEMBERS 2,083.44 A/R- REINSURANCE RECOVERIES (5,483,491.83) A/R OTHER 2,313.45 A/R -STATE W/C ASSESSMENT 71,173.92 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 1,961.81 TOTAL CURRENT ASSETS 51,529,998.07 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 7,869,060.68 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 TOTAL ASSETS LIABILITIES ACCOUNTS PAYABLE $ (126,874.74) A/P - GALLAGHER/RISX -FACS 628,726.13 FEDERAL TAXES PAYABLE 4,368.51 PEBSCO PAYABLE 388.26 A/P EMP LIFE INS 107.13 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 (546,193.33) CLAIMS PAYABLE - 1990 -91 (18,366.86) CLAIMS PAYABLE - 1991 -92 (4,765.79) CLAIMS PAYABLE - 1992 -93 66,694.24 CLAIMS PAYABLE - 1993 -94 34,064.79 CLAIMS PAYABLE - 1994 -95 37,924.74 CLAIMS PAYABLE - 1996/97 (45,239.16) CLAIMS PAYABLE - 1997/98 (1,719,365.66) CLAIMS PAYABLE - 1998/99 (84,388.03) CLAIMS PAYABLE - 1999/00 (120,885.45) CLAIMS PAYABLE - 2000/01 (245,222.69) CLAIMS PAYABLE - 2001/02 (329,208.89) CLAIMS PAYABLE - 2002/03 337,623.12 CLAIMS PAYABLE - 2003/04 (1,761,475.06) CLAIMS PAYABLE - 2004/05 899,968.77 CLAIMS PAYABLE - 2005/06 680,122.35 CLAIMS PAYABLE - 2006/08 14,315,464.30 CLAIMS PAYABLE - 2008/09 4,710,656.33 8,378,942.02 $ 59,993,804.14 NONCURRENT CLAIMS PAYABLE SUSPENSE - CLEARING ACCOUNT PUBLIC RISK MGMT OF FL BALANCE SHEET SEPTEMBER 30, 2009 (15,780,164.31) 14,495,419.00 TOTAL LIABILITIES 29,920,589.84 CAPITAL FUND BALANCE REVENUE IN EXCESS OF EXPENSE 31,011,685.08 (938,470.78) TOTAL CAPITAL 30,073,214.30 TOTAL LIABILITIES & CAPITAL $ 59,993,804.14 PUBLIC RISK MGMT OF FL INCOME STATEMENT FOR THE TWELVE MONTHS ENDING SEPTEMBER 30, 2009 CURRENT MONTH REVENUES MEMBERSHIP ASSESSMENTS $ (47,458.90) $ 24,549,321.06 INTEREST INCOME 6,911.19 303,858.83 MISCELLANEOUS INCOME 0.00 510.43 YEAR TO DATE TOTAL REVENUES (40,547.71) 24,853,690.32 EXPENSES OFFICERS' SALARIES 16,492.40 OFFICE SALARIES 50,745.15 PAYROLL TAXES 4,278.41 EMPLOYEE RETIREMENT BENEFITS 5,358.90 HEALTH INSURANCE- OFFICER 1,569.37 HEALTH INSURANCE- OFFICE 9,347.87 LIFE INSURANCE - OFFICER 116.58 LIFE INSURANCE- OFFICE 198.91 LTD INSURANCE 1,152.87 LEGAL FEES 1,500.00 LEGAL -PRE- DEFENSE 0.00 AUDIT FEES 0.00 ACTUARIAL STUDY 0.00 WORKERS COMP CLAIMS AUDIT 0.00 APPRAISAL FEE EXPENSE 0.00 AUTO EXPENSE 76.82 AUTOMOBILES - REPLACEMENT 0.00 TRAVEL EXPENSE 2,845.28 ASSOCIATION MEMBERSHIPS 0.00 DUES & SUBSCRIPTIONS 467.00 EDUCATION/TRAINING /CONFER. 321.00 OFFICE LEASE 6,567.53 JANITORIAL / CLEANING 280.00 OFFICE /COMPUTER EQUIPMENT 3,000.00 ELECTRIC 0.00 WATER/TRASH 0.00 TELEPHONE 1,352.06 TEMPORARY LABOR 0.00 COPY MACHINE LEASE 203.00 REPAIRS & MAINT. - EQUIPMENT 0.00 OFFICE SUPPLIES 527.48 NEWSLETTER 0.00 POSTAGE 416.29 PRINTING 0.00 LOSS PREV EQUIP & SUPPLIES 1,616.05 MARKETING & PROMOTION 196.43 MEETING EXPENSE 0.00 MISCELLANEOUS EXPENSE 648.54 CONFERENCE MEMBER ROOM EXPENSE 0.00 TRAINING /SEMINAR PRESENTATION 0.00 APPRAISAL FEE EXPENSE 0.00 WEB SITE MAINT. 0.00 INSURANCE CONSULTANT 18,166.67 RISX FACS FEES 0.00 DEPRECIATION EXPENSE 0.00 TOTAL EXPENSES 127,444.61 REVENUE IN EXCESS OF EXPENSE 146,950.94 503,950.44 48,747.96 65,411.82 18,832.44 113,875.07 1,016.16 1,348.64 13,565.76 23,193.22 154.60 28,000.00 39,317.45 0.00 2,937.50 4,839.42 4,570.05 41,475.41 663.25 2,597.00 13,678.41 76,706.17 3,656.80 24,386.43 0.00 0.00 19,532.72 0.00 2,436.00 1,242.58 18,247.09 2,497.50 8,126.12 4,712.00 19,200.30 490.75 11,874.74 4,109.10 6,837.00 410.20 0.00 0.00 218,000.04 0.00 0.00 1,497,591.08 $ (167,992.32) $ 23,356,099.24 STAFFING PUBLIC RISK MGMT OF FL EXPENSES TO BUDGET 04/01/09 - 03/31/10 FOR THE SIX MONTHS ENDING SEPTEMBER 30, 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 16,492.40 12,211.83 73,379.50 73,271.00 146,542.00 OFFICE SALARIES 50,745.15 42,454.08 256,135.16 254,724.50 509,449.00 PAYRLL TAXES 4,278.41 4,199.92 25,427.63 25,199.50 50,399.00 EMPLOYEE RETIREMENT BENEFIT: 5,358.90 5,757.50 31,480.99 34,545.00 69,090.00 HELATH INSURANCE- OFFICER 1,569.37 1,663.75 9,416.22 9,982.50 19,965.00 HEALTH INSURANCE- OFFICE 9,347.87 10,135.92 56,288.02 60,815.50 121,631.00 LIFE INSURANCE- OFFICER 116.58 86.67 525.48 520.00 1,040.00 LIFE INSURANCE- OFFICE 198.91 148.50 1,107.55 891.00 1,782.00 LTD INSURANCE 1,152.87 1,192.50 6,874.53 7,155.00 14,310.00 TOTAL SALARY RELATED EXPENSE 89,260.46 77,850.67 460,635.08 467,104.00 934,208.00 50.07% 50.28% 50.45% 45.57% 47.16% 46.28% 50.53% 62.15% 48.04% 49.31% GENERAL EXPENSES LEGAL FEES 1,500.00 1,250.00 12,250.93 7,500.00 15,000.00 81.67% LEGAL -PRE DEFENSE 0.00 416.67 154.60 2,500.00 5,000.00 3.09% AUDIT FEES 0.00 2,583.33 0.00 15,500.00 31,000.00 0.00% ACTUARIAL STUDY 0.00 2,500.00 1,750.20 15,000.00 30,000.00 5.83% APPRAISAL FEE EXPENSE 0.00 481.25 1,500.00 2,887.50 5,775.00 25.97 %. AUTO EXPENSE 76.82 400.00 4,711.93 2,400.00 4,800.00 98.17% TRAVEL - EXPENSE 2,845.28 2,500.00 21,503.01 15,000.00 30,000.00 71.68% ASSOCIATION MEMBERSHIPS 0.00 166.67 0.00 1,000.00 2,000.00 0.00% DUES & SUBSCRIPTIONS 467.00 266.67 843.20 1,600.00 3,200.00 26.35% EDUCATION/TRAINING /CONFER 321.00 2,500.00 12,795.46 15,000.00 30,000.00 42.65% OFFICE LEASE 6,567.53 6,690.00 38,448.73 40,140.00 80,280.00 47.89% JANITORIAL/CLEANING 280.00 346.67 1,820.00 2,080.00 4,160.00 43.75% OFFICECOMPUTER EQUIPMENT 3,000.00 1,500.00 13,536.46 9,000.00 18,000.00 75.20% TELEPHONE 1,352.06 2,166.67 10,363.73 13,000.00 26,000.00 39.86% COPY MACHINE LEASE 203.00 250.00 1,218.00 1,500.00 3,000.00 40.60% REPAIRS & MAINT. - EQUIPMENT 0.00 166.67 0.00 1,000.00 2,000.00 0.00% OFFICE SUPPLIES 527.48 1,166.67 8,357.17 7,000.00 14,000.00 59.69% NEWSLETTER 0.00 333.33 1,665.00 2,000.00 4,000.00 41.63% POSTAGE 416.29 1,083.33 3,288.35 6,500.00 13,000.00 25.30% PRINTING 0.00 166.67 135.80 1,000.00 2,000.00 6.79% INSURANCE- FLOOD /GENERAL 0.00 250.00 0.00 1,500.00 3,000.00 0.00% LOSS PREV EQUIP & SUPPLIES 1,616.05 1,833.33 11,721.42 11,000.00 22,000.00 53.28% MARKETING & PROMOTION 196.43 375.00 430.83 2,250.00 4,500.00 9.57% MEETING EXPENSE 0.00 2,008.33 5,066.00 12,050.00 24,100.00 21.02% MISCELLANEOUS EXPENSE 648.54 208.33 2,295.56 1,250.00 2,500.00 91.82% CONFERENCE MEMBER ROOM EXI 0.00 631.33 4,487.00 3,788.00 7,576.00 59.23% TRAINING /SEMINAR PRESENTATIOI 0.00 333.33 0.00 2,000.00 4,000.00 0.00% WEB SITE MAINT 0.00 400.00 0.00 2,400.00 4,800.00 0.00% INSURANCE CONSULTANT 18,166.67 18,166.67 109,000.02 109,000.00 218,000.00 50.00% TOTAL GENERAL EXPENSES 38,184.15 51,140.92 267,343.40 306,845.50 613,691.00 43.56% TOTAL OPERATING EXPENSES 127,444.61 128,991.58 727,978.48 773,949.50 1,547,899.00 47.03% C PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING NOVEMBER 13, 2009 REGULAR AGENDA SUMMARY 3. Executive Director's Report Ross Furry, Executive Director A. 2010 On -Site Property Appraisals The following are scheduled for on -site property appraisals in 2010: City of Indian Rocks Beach Sun 'n Lake of Sebring Improvement District Members are reminded to forward any additions, changes or deletions to their property directly to CBIZ throughout the year and not wait until receipt of the trended report. B. H1 N1 Claims — Attachment C. Phone In Claim Reporting — Bonnie Mims, Sr. Loss Prevention Consultant Attachment D. On -Line Training — Bonnie Mims, Sr. Loss Prevention Consultant Attachment E. FEMA Training & HR Roundtable — Bonnie Mims, Sr. Loss Prevention Consultant Attachment 3.B. H1 N1 Claims arAt Gallagher Bassett Services, Inc. 3434 Hancock Bridge Parkway Suite 203 Fort Myers, FL 33903 MEMO TO: All PRM Members FROM: Gallagher Bassett Services SUBJECT: H1N1 claims DATE: November 2, 2009 Please be advised that similar to common colds and flu, H1N1 will not be covered under workers' compensation coverage. It should be properly submitted under the employee's group health coverage. Note that if an employee insists on filing a workers' compensation claim, as the employer you cannot refuse that request. However, please be advised in advance that the claim will be denied and PRM will not pay for any testing or treatment. If any claims for H1N1 are submitted we will so advise the employee upon initial contact with them. 3.C. Phone In Claim Reporting Telephonic Claims Reporting Gallagher Bassett Services offers a Telephonic Claims Reporting Program thru ClaimZone. All claims, including WC can be "called in" telephonically utilizing this program. Each member would have a 1 -800 number to call for reporting all claims. 1. Operator will ask the caller questions for each claim. 2. Member will need to provide similar information as listed on current form(s). 3. Member will be provided with a loss number upon completion of call. 4. Member will be provided with a copy of the First Report of Injury for WC claims. (Can be emailed or faxed.) 5. Copy of report will also be sent to PRM, Gallagher Bassett Services and Genex. 6. All claims will be set up in RisxFacs. 7. Service can be set up within 30-45 days after approval. 8. Cost per telephonic claim - $15 Average number of claims per month for period 10/1/06 thru 3/31/09 has been 121 or 1,452 per year. Due to continued growth of pool, reduction in rate per telephonic claim from $22 to $15 and the need for PRM to stay competitive with its services, PRM staff recommends initiating this program for all members as soon as possible. Cost of claim reporting (approximately $22,000 annual, can be paid off the file for each claim or by other means. PRM staff recommends that for the next 12 months cost of telephonic claims reporting thru ClaimZone, up to $30,000 be paid out of the PRM Administration Fee budget. Should we face an active "storm" season during that period of time, claims associated with losses due to storms may be sent in by fax or email to keep cost of telephonic claims to a minimum. 3.D. On -Line Training Comprehensive Classroom & E- Learning Training The PRM Loss Prevention (LP) Department operates with three full time staff members. One staff member handles the video library and all media, catalogs and upgrades associated with Loss Prevention Services as well as additional duties. Two LP Consultants provide on -site training, Comprehensive Safety Inspections, assistance with setting up safety committees, specialized safety presentations, Human Resources Audits and services and courtesy visits on a regular basis to all members. In addition, the Consultants have recently been involved in HR Roundtable and FEMA 101 Workshops. While continually striving to work smarter with less and still provide a high level of service and quality loss prevention services to our members, LP staff is recommending the addition of a combination Classroom /E- Learning Training Program. In comparing the cost, content, ease of use and 24/7 accessibility of numerous on -line programs for the last year, we have found a unique program thru the National Safety Council (NSC) that offers on -site training programs (those that are not currently offered thru PRM) as well as E- Learning. For those members who have departments that operate 24/7, remote locations, or specialized training requests that PRM is not currently able to provide, staff feels that a partnership with the NSC that offers Classroom and E- Learning would be an additional benefit to all parties involved. To provide maximum number of training hours, staff recommends that PRM Member employers handle tracking of classes internally for their own employees. This method will allow for more than one employee to participate in a certain training course. i.e Supervisory training for all supervisors vs. purchasing one class per each employee. Recommendation for initial purchase of 1200 hrs /300 seats of Classroom Training as well as 1200 hrs /300 seats for E- Learning with a Total Cost of $25,268.00 (includes a one time fee of $500 for the set up of an E- Learning Portal) be paid for by PRM Administration Fee budget. 3.E. FEMA Training & HR Roundtable PRM Sponsored FEMA 101 and HR Roundtable Workshops Update PRM has recently sponsored FREE regional FEMA 101 Workshops and Human Resources (HR) Roundtable events. Jane O'Connor with TJP Solutions was the presenter for the regional FEMA 101 workshops (she also presented at 2009 PRM Educational Conference) and feedback has been extremely positive. Total attendance was over 100 for the four (4) locations. Both P & C and Health Trust members were invited to send employees from all departments to these workshops. Recommendation by PRM Loss Prevention Staff, as well as attendees, is to continue with these workshops on an annual basis. A great refresher course for all! Approximate cost for FEMA 101 Workshops was $3,000. In addition, PRM is also sponsoring four (4) regional Human Resources (HR) Roundtable events. These events are facilitated by Bonnie Mims of PRM and are informal networking sessions for those employees of members who handle employment related responsibilities. Discussion topics have included FMLA, ADAAA, Swine Flu, GINA, Harassment and Job Descriptions. A great event for those new to the Human Resources arena and include the latest updates on State and Federal requirements. PRM Loss Prevention Staff and attendees also recommend conducting these events on an annual basis. Approximate cost for HR Roundtable Workshops will be $500. PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING NOVEMBER 13, 2009 REGULAR AGENDA SUMMARY Insurance Advisor's Report Glenn Tobey, Tobey & Associates A. What Competition Offers Compared to PRM 5. Broker's Report Andy Cooper, World Risk Management A. New Members to PRM — Attachment B. Marketing Brochure & Inserts — The inserts are designed to stack behind one another which accounts for increasing blank area at the top of the page. Attachment C. Renewal Applications — Status D. Market Conditions E. Coverage for Inverse Condemnation & Non Monetary Claims Per By -Laws, Board approval is required for any addition /deletion of coverage. If approved, effective date of coverage will be 4/1/2010. See attached. Board Action: Approved Denied Deferred Other 6. Legal Update Donovan Roper, Esq. A. Hammer vs. Punta Gorda /Okeechobee Lawsuit - Attachment 5.A. NEW MEMBERS PRM Experiences Growth In A Struggling Economy PRM and WRM welcome six (6) new members on October 1, 2009! It has been a busy summer for World Risk Management. Starting in July, we have received submissions from over forty (40) entities in the State of Florida. Due to size requirements, entity operations and timing, only approximately 34 of those entities received formal proposals. We proposed to entities located in the Keys all the way up to the far west panhandle of the State. We worked with a network of local agents across the State. Some prospects were approached directly by WRM. In many cases we were extremely competitive and were in the running to win the business. However, due to various circumstances (i.e. Credits given by current carrier to stay, lack of knowledge or experience with PRM, apprehension around "pooling ") we were not successful in winning the business this year, but feel we are in a great position to pick up more members next year. Also, many of these were RFP situations and we knew that our chances were slim without any prior relationship with that entity. Our goal was to get PRM's name out there in the Public Entity arena and show that we are a competitive market. We did accomplish this and will be working with several agents and consultants over the next year to educate them on the PRM program. However, we were pleased to know that PRM is a competitive force in the Florida Public Entity insurance marketplace. So, who are our new members? Five of the six members are Standard Members. Those being: Town of Lantana, a municipality located in Palm Beach County Port of Palm Beach, a Port Authority located in Palm Beach County Seacoast Utility, a Utility Authority located in Palm Beach County City of Maitland, a municipality located in Orange County City of Key Colony Beach located in Monroe County The sixth new member is our first new Preferred Member: City of Florida City, a municipality located in Dade County Please join us in welcoming these new members to the Association. 5.B. MARKETING BROCHURE & INSERTS World Risk Management, LLC KNOWLEDGE EXPERIENCE DEDICATION Public Risk Management of Florida World Risk Management, LLC 141 Terra Mango Loop Suite A Orlando, FL 32835 407.445.2414 888.501.0014 407.445.2868 FAX www.wrmllc.com World Risk Management, LLC (WRM) is an owner- driven insurance provider located in Orlando, Florida that excels in finding creative solutions to client's insurance and risk management needs. WRM provides valuable insurance protection to Public Risk Management of Florida (PRM) with individualized services and comprehensive product offerings. WRM employs a highly professional staff that has a proven record of identifying and satisfying PRM's needs. WRM's team commitment is reflected in a combined risk management knowledge and experience totaling over 40 years. What We Do WRM offers PRM a thorough and meticulous insurance need analysis, plus delivers competitive cutting edge products and services from nationally recognized insurance carriers based on realistic and reasonable fee and /or commissions. WRM's dedicated executive team is recognized throughout the industry for their commitment to providing clients with prompt responses and solutions. Our Reputation WRM's management team has an industry wide reputation for professionalism, quality service, knowledge, and client involvement on a daily basis at all levels, plus a genuine commitment to protect and shield employees and property of public entity groups and other businesses. WRM believes in its ability to lead in the field of risk management and loss management by providing innovative solutions. Corporate Values World Risk Management strives to develop long -term partnerships with our clients to identify and implement the most beneficial means to finance their occupational and property risk insurance needs. Our commitment to teamwork, responsiveness, mutual respect and technical innovation is reflected in delivering industry - leading loss control, claims management and administrative services and solutions. WRM has demonstrated a genuine commitment to protect and shield client exposures. The WRM executive team has developed a common understanding of key risk management issues, its history, its current environment, and future trends. Sharing our experience and common vision allows us to deliver services that are consistent with our philosophy and core business values. World Risk Management Team WRM's dedicated executive management team has a vast array of knowledge, skills and familiarity in working with risk management issues and public entity pool accounts. WRM's executive team has a total of over 40 years experience in the public entity account business and are well positioned to offer their professional and business acumen to a vast array of potential clients. Michele Jones, President /Managing Director, World Risk Management, has over 15 years experience in the public entity field. Ten of those 15 years was spent servicing a leading public entity pool account in Florida. Michele has extensive experience and administration skills in managing a team of insurance professionals. She has demonstrated over the years her dedication and skills in recruiting, hiring and retaining dedicated, licensed and well respected insurance professionals. Michele is proficient in compilation of underwriting data, marketing, negotiations and formal presentations to Pool groups and its members. Michele has also managed a portfolio of stand -alone Florida public entity accounts. Andy Cooper, Vice President, World Risk Management, has worked over 20 years in all different facets of the self insurance /pooling insurance field. He has extensive domestic and international experience in reinsurance, retail brokerage, negotiating terms and conditions, insurance ratings, brokering underwriting accounts, and placement of property and casualty insurance for pool groups. Andy has also worked in the London insurance market with Lloyd's of London syndicates and London insurance companies. Sonia Fatheree, Vice President of Account Services, World Risk Management, has over 20 years of commercial insurance experience. She had held various positions with different agencies in both Louisiana and Florida. She specializes in all aspects of public entity insurance with focus on reinsurance, property, liability, workers' compensation, employment practice liability, fidelity, and contract risk transfers. In addition to public entity insurance, Sonia is experienced in several other commercial industries. She has extensive experience in marketing and negotiating with carriers, as well as managerial experience within the insurance agency. Her attention to compliance and regulation within the insurance industry is invaluable to the clients that she serves to ensure that they are receiving professional, legal and accurate coverage. Sonia has a noted reputation among her peers for her client listening skills, and attention to detail that insures effective and reliable client insurance coverage purchased at the best possible price. www.prm -fl.com Public Risk Management WRM II UU www.wrmllc.com World Risk Management, LLC 141 Terra Manago Loop, Suite A Orlando, FL 32835 T: 407.445.2414 1.888.501.0014 F: 407.445.2868 1111 Coverages World Risk Management Team is available to analyze your entities exposures and offer a proposal with the best risk transfer options. Submission Guidelines: • Completed PRM Application • Completed Property Schedule (or Appraisal) in Excel format • Complete Auto, Insurance Marine and Equipment Schedules • Five (5) Years of Currently Valued Loss History The PRM Coverages are designed to meet the needs of Florida's public entities. The basic program has been in place for over twenty (20) years. The coverages are vastly superior to those available in the market place. Due to sound management by the Board of Directors, Executive Board, and the Executive Director, PRM is a cost effective solution for the public entities of Florida. The PRM program is cost effective for the following reasons: 1.The assumption of risk is at the low or known level, thus resulting in the need to purchase less insurance; 2.Risk Selection - PRM selects members that have an appetite for risk management and loss control, as well as a favorable loss record, which helps control insurance costs; 3.Emphasis on safety, loss control and claims handling by PRM and its members. Eligible Entities: Florida's Cities, Counties, School Boards, Water Districts, Fire Districts, Port Authorities, Utility Authorities, Airports, and Special Taxing Districts Property PRM's Property /Casualty Pool offers competitive pricing for Property coverage, including: • Building & Contents • Business Income • Inland Marine • Property in the Open • Valuable Paper All Perils *: Earthquake, Fire, Flood, Named Windstorm, and Wind /Hail Property Limits and Retentions: Per Occurrence *Limits and deductible vary per peril Crime PRM's Property /Casualty Pool offers competitive pricing for crime coverage, including: • Computer Fraud • Employee Theft -Per Loss Coverage • Employee Theft -Per Employee Coverage • Forgery or Alteration • Funds Transfer Fraud • Inside Premises -Theft of Money & Securities • Inside Premises - Robbery, Safe Burglary -Other Prop • Outside the Premises • Money Orders and Counterfeit Paper Currency • Single Loss Coverage Forms General Liability PRM's Property /Casualty Pool offers competitive pricing for General Liability offering $2M Limits up to $10 Million available. PRM General Liability offers a Broad Named Insured Endorsement to include volunteers. Coverage Provided: • Dams & Reservoirs • Employee Benefit Liability • Law Enforcement Liability • Miscellaneous Professional • Sexual Harassment Terms to Include: • Blanket Contractual -Hold Harmless Agreement included for Governmental & Non - Governmental Entities • Assault & Battery • Bodily Injury /Property Damage • Detention • EMT /Paramedical Covered • False Arrest • False Imprisonment • Host & Liquor Liability • Invasion of Rights of Privacy • Law Enforcement Activities • Malicious Prosecution • Mental Anguish • Mental Injury • Property in the Care, Custody, & Control of the Entity • Shock www.prm -fl.com Auto Liability PRM's Property /Casualty Pool offers competitive pricing and various limits available from $2M up to $10M for Commercial Auto. Coverage Provided: • Hired / Non -Owned Auto Coverage • Hired / Non -Owned Physical Damage • Personal Injury Protection Professional Liability PRM's Property /Casualty Pool offers competitive pricing for Professional Liability which includes incidental medical malpractice for Medical Directors and broad named insured endorsements. Public Officials Liability PRM's Property /Casualty Pool offers competitive pricing for Public Officials Liability and Employment Practice Liability by offering $2M per occurrence with a $5.7M aggregate per members. Coverage Provided: • Breaches of Duty • Elected Officials, Appointed Officers • Errors and Omissions • Misfeasance, Malfeasance, and Nonfeasance • Negligence • Wrongful Acts of Public Officials Public Risk Management WRM Workers' Compensation & Employers' Liability PRM's Property /Casualty Pool offers competitive pricing for Workers' Compensation and Employment Practice Liability. Terms to include: • Broad Form All States • Employer Delineation of Insured Members • Maritime Coverage Endorsement • Voluntary Compensation Endorsement Ancillary Coverage: • Airport /Aircraft Liability • Boiler & Machinery • Bonds • Builders • Excess Liability • Executive Travel Accident • Facilities Use & Special Events Insurance • Fiduciary Liability • Inmate /Community Service Workers Accident Insurance • National Flood Insurance Program • Pollution Liability • Sports Accident • Storage Tanks www.wrmllc.com World Risk Management, LLC 141 Terra Manago Loop, Suite A Orlando, FL 32835 T: 407.445.2414 1.888.501.0014 F: 407.445.2868 INN Services Beacon of Financial Strength & Inn Risk Management Services By joining PRM, members gain unparalleled risk management services provided by the Pool. The Executive Director and his staff have over 40 years experience in the Risk Management field. PRM provides a risk management manual for each member in order to maximize participation in the program. Experienced Loss Prevention consultants provide on -site loss prevention services, assisting members in establishing safety and loss prevention programs, as well as employment practices. Risk Analysis On -site risk analysis services are provided for PRM members to identify potential loss producing hazards and to assist with regulatory compliance. A Risk Analysis includes a review of the following areas: • Record Keeping Analysis • Written Program Requirements • Physical Hazards Identification • Training Needs Regulatory Assistance Numerous safety - related, technical resources are available to assist members in complying with a multitude of Federal & State regulations, including the following: • Compliance Assistance & Guidelines • Regulatory Interpretations • Post Audit Consultations Safety Program Developments A variety of written safety & loss prevention programs are available to meet the needs of our members. PRM Loss Prevention Services can assist in the development of a basic program to comply with a specific regulation, or a city /county wide safety program. Individual Regulatory Programs Comprehensive Programs State Approved Discount Programs Technical Assistance PRM offers a wide variety of specialty services as part of the PRM Loss Preventions Program. Our consultants discuss individual concerns and provide results- oriented solutions for each member's needs. • Detailed Loss Analysis • Job Hazard Analysis • Safety Committee Set -Up & Participation Safety Training PRM believes training and education is one of the most effective steps in reducing workplace accidents and losses. PRM Loss Prevention Services include training support at both the supervisory and employee levels. Formal Classroom Training Sessions Training Literature & Materials Supervisor "Safety Talks" Safety Video Library Loss Trending PRM provides frequent loss trending eports to each member. These reports provide valuable information that identifies potential problem areas within each line of coverage. We believe this information allows our members to intervene before experiencing a serious loss situation. • Injury Frequency Trending • Comparative Analysis with other Members • Major Sources of Losses www.prm -fl.com Public Risk Management Employment Practices PRM provides Employment Practices Liability loss prevention services to its members by providing an in -depth review and audit of all employment related practices and policies. Additional legal support from the offices of Allen, Norton & Blue, who specialize in labor law, are also provided to complement these services. Employment Practices Audit /Analysis upon request Assistance in preparing Employee Handbook or Personnel Rules and Regulations and Job Descriptions Assistance in Salary Surveys Assistance in Benefit Surveys Human Resources Video Library Professional Claims Handling Claim Services for both Preferred and Standard Members are provided by Gallagher Basset Services, Inc. PRM staff is available to provide assistance to PRM members throughout the PRM claims handling process. GENEX Services provides managed care for Workers' Compensation claims. WRM 11 11 www.wrmllc.com World Risk Management, LLC 141 Terra Manago Loop, Suite A Orlando, FL 32835 T: 407.445.2414 1.888.501.0014 F: 407.445.2868 • in Membership A Beacon of Financial Strength & Innovation PRM Membership PRM Preferred and Standard Memberships are organized under an Interlocal Agreement. The Executive Board approves all new members, both Preferred and Standard. PRM offers two tiers of Membership, Preferred Members and Standard Member. Both tiers of membership have benefits and responsibilities, they are as follows: PREFERRED MEMBERSHIP STANDARD MEMBERSHIP Qualifications Qualifications • All Lines of Coverage purchased • Purchase one or more lines of coverage (unbundling) Benefits Benefits • Rate increases capped at 20% for those members who have not provided the one year notice • Participation credits are available • Receive all loss control & risk management services offered by PRM • No registration fee or room cost at PRM's annual education conference • Representation on the PRM Board of Directors (voting rights) • Eligible to be elected to the Executive Board • Ability to unbundle coverage • Ability to tailor insurance needs at the lowest cost Responsibilities Responsibilities • 2 year initial commitment • 1 year notice of intent to withdraw 45 day notice of intent to withdraw Public Risk Management is a Non - Assessable Pool or Association. Preferred Membership: PRM is self governed and each Preferred Member has representation on the Board of Directors and are eligible to be elected to the Executive Board. Each entity also designates an alternate who acts in the stead of the designated member when he /she is not available. All decisions are made by the Executive Board and /or Board of Directors. The PRM By -laws include an initial two (2) year commitment and a one (1) year notice thereafter for Preferred Members. This provision adds coverage availability and rate stability to the pool. If notice is given more than twice in a five (5) year period, the Board has the right to terminate the Member's preferred status. Standard Membership: Standard Members have the ability to purchase all lines, or just select specific lines of coverage. Standard Members have no entitlement to any vote on the Board of Directors. PRM By -laws require forty -five (45) days notice of intent to withdraw. The PRM administrative office provides complete risk management and loss prevention services to Preferred Members, including the establishment of Safety Committees, Drug Free Workplace Programs, and Employment Practices. The services may be afforded to Standard Members as requested. Additionally, PRM provides various seminars throughout the year. Claims services for both Preferred and Standard Members are provided by Gallagher Bassett Services, Inc. Likewise, GENEX Services provides managed care services for Workers' Compensation claims. www.prm -fl.com Public Risk Management www.wrmllc.com World Risk Management, LLC 141 Terra Manago Loop, Suite A Orlando, FL 32835 T: 407.445.2414 1.888.501.0014 F: 407.445.2868 Public Risk Management Of Florida World Risk Management, LLC 141 Terra Mango Loop Suite A Orlando, FL 32835 407.445.2414 888.501.0014 407.445.2868 FAX www.wrmllc.com Public Risk Management of Florida (PRM), formed in 1987, pursuant to the terms of Florida Statutes Sections 768.28(6)(A) and 163.01, is a risk management and self- insurance pool for governmental entities in the State of Florida. PRM is a recognized leader in the risk pooling industry, known for unwavering commitment to services and stability. PRM offers one of the most comprehensive pool coverage programs in Florida at competitive rates. PRM is a cooperative agency, established by its Members for the purpose of preventing and reducing loss. Each Member contributes funds to defend and protect the membership for the covered losses. Major objectives of PRM are to: • • • • • Lower Cost Enhance Coverage Ensure Stability Provide Self Governance by Members Deliver Professional and Timely Service PRM maintains these objectives with every policy term. PRM's continued success and prosperity is largely attributable to the benefits received by its Members. Managing Agent Actuarial Services and Audited CPA Financial Statement World Risk Management, LLC (WRM) provides brokerage and administration services for PRM's property/ casualty pool. The WRM team utilizes their industry wide reputation for professionalism, quality service, and knowledge, to market the PRM Program, as well as acquire the most attractive Pricing from insurance carriers. Financial Security PRM has consistently provided members with the financial security of one of the country's most fiscally conservative pools. PRM has a 1:1 premium to surplus ratio. In addition, PRM retains less risk than any of its competitors. PRM has never bought excess insurance from a carrier with less than an "A" AM Best rating. Drug Free and Safety Program Credits PRM members can receive a Drug Free Workplace credit with an approved Drug -Free Workplace program. This credit is 5% and is applied to the member's loss fund. Members can also receive an approved Safety Credit of 3% that is also applied to the member's loss fund. ■■ www.prm -fl.com Public Risk Management Each year PRM has an Actuarial study conducted on its loss and loss expense reserves. This report is incorporated into an annual Audited CPA Financial Statements. PRM fully complies with GASB accounting requirements. Interest Earnings and Cash Flow Member contributions earn interest for the benefit of the Preferred Members. The interest earnings can be used to off -set PRM expenses, pay claims, or be returned to the Preferred Members as participation credits. Public Risk Management is a Non - Assessable Pool, or Association. WRM www.wrmllc.com World Risk Management, LLC 141 Terra Manago Loop, Suite A Orlando, FL 32835 T: 407.445.2414 1.888.501.0014 F: 407.445.2868 5.E. INVERSE CONDEMNATION & NON MONETARY CLAIMS RISK MANAGEMENT, LLC PRM COVERAGE ENHANCEMENTS PRM is considering offering to its members two coverage enhancements at their 2010 renewal. Inverse Condemnation and Non - Monetary Damages (Injunctive Relief) historically have been excluded under PRM's Coverage Document. Over the last several years these coverages have been offered by PRM's competition and had, in some instances, made PRM uncompetitive. Here are the coverages defined: Inverse Condemnation - The power to take private property for public use by a state, municipality, or private person or corporation authorized to exercise functions of public character, following the payment of just compensation to the owner of that property. Federal, state, and local governments may take private property through their power of eminent domain or may regulate it by exercising their Police Power. The Fifth Amendment to the U.S. Constitution requires the government to provide just compensation to the owner of the private property to be taken. A variety of property rights are subject to eminent domain, such as air, water, and land rights. The government takes private property through condemnation proceedings. Throughout these proceedings, the property owner has the right of DUE PROCESS. Eminent domain is a challenging area for the courts, which have struggled with the question of whether the regulation of property, rather than its acquisition, is a taking requiring just compensation. In addition, private property owners have begun to initiate actions against the government in a kind of proceeding called inverse condemnation. Non - Monetary Damages (Injunctive Relief) - court- ordered act or prohibition against an act or condition which has been requested, and sometimes granted, in a petition to the court for an injunction. Such an act is the use of judicial (court) authority to handle a problem, and is not a iudament for money. Whether the relief will be granted is usually argued by both sides in a hearing rather than in a full -scale trial, although sometimes it is part of a lawsuit for damages and/or contract performance. Historically, the power to grant injunctive relief stems from English equity courts rather than damages from law courts. Here are the Exclusions in the current Coverage Document for both of theses coverages: GENERAL COVERAGE DOCUMENT EXCLUSIONS THIS COVERAGE DOCUMENT DOES NOT INSURE AGAINST: (c) Any liability arising out of the operation of the principles of eminent domain, condemnation proceedings, or inverse condemnation proceedings by whatever name called, whether such liability accrues directly against the MEMBER or by virtue of any agreement entered into by or on behalf of the MEMBER. SECTION IV EXCLUSIONS IN ADDITION TO THE GENERAL EXCLUSIONS OF THIS COVERAGE DOCUMENT, THIS SECTION DOES NOT INSURE AGAINST: (e) CLAIMS, demands, or actions seeking relief or redress in any form other than monetary damages, or any fees, costs or expenses which the MEMBER may be obligated to pay as a result of any adverse judgment for declaratory relief or injunctive relief except for EEOC Administrative Hearings; If approved by the Board, a Member will be able to choose to purchase either (or both) of these coverages at their next renewal. If purchased, the Coverage Document will be endorsed to reflect that coverage is provided to that Member. The pricing for these coverages will be as follows: Optional Liability Coverages & Premiums: Inverse Condemnation — $100,000 Per Occurrence & Aggregate /$25,000 Deductible Non - Monetary Damages — $10,000 Per Occurrence & Aggregate /$1,000 Deductible $11,250 $ 1,800 6.A. Legal Update Henderson J Fran kl i n ATTORNEYS AT LAW 1715 Monroe Street • Fort Myers, FL 33901 Post Office Box 280 • Fort Myers, FL 33902 Tel: 239.344.1100 • Fax 239.344.1200 • wwwhenlaw.com Bonita Springs • Sanibel Reply to Robert C. Shearman Board Certified Civil Trial Lawyer Direct Dial Number 239.344.1346 E -Mall: robert.shearman ©henlaw.com November 2, 2009 VIA E -MAIL ONLY Phil Wickstrom Human Resource Director City of Punta Gorda 326 West Marion Ave. Punta Gorda, FL 33950 -4492 Re: Hammer Construction v. Punta Gorda Claim #010523- 030153 -E0-01 Dear Phil: Last week Ross Furry, Don Roper and I met with Norm Hammer and his legal counsel in an effort to break the stalemate which had taken hold of this case. As you know, Hammer Construction had repeatedly requested that we execute an Assignment Agreement allowing it to proceed directly against the insurers denying payment for post hurricane repair work performed by Hammer. While we were willing to sign the Assignment, we insisted that it be accompanied by a release, such that Hammer could not later bring a claim against Punta Gorda seeking recovery for expenses which were ultimately determined to be non - covered, excessive, unreasonable, or for whatever reason, uncollectible against the insurers. Our face to face last meeting proved to be very productive, and Hammer's attorney, Scott Konopka is now preparing a revised Assignment Agreement which should accomplish both objectives. Once I have received the revised draft Assignment Agreement, I will provide it to you for your review. To the extent that it will be necessary to schedule a meeting to obtain approval of the Agreement and authorization for it to be signed by a duly authorized representative, the appropriate process can be initiated. As you recall, we have not yet filed a response to the pending litigation, and are operating under an indefinite extension of time to do so while we conclude our Assignment Agreement. Henderson, Franklin, Starnes & Holt, P.A. Phil Wickstrom November 2, 2009 Page 2 If you would like to discuss this matter further at this time, please give me a call. Very truly yours, Robert C. Shearman RCS /cgw cc: Terri Morris, Gallagher Bassett Frank Shore, PRM Ross Furry, PRM Henderson 1 Fran kl i n ATTORNEYS AT LAW 1715 Monroe Street • Fort Myers, FL 33901 Post Office Box 280 • Fort Myers, FL 33902 Tel: 239.344.1 100 • Fax. 239344.1200 • www.henlaw.com Bonita Springs • Sanibel Reply to Robert C. Shearman Board Certified CM Trial Lawyer Direct Dial Number 239.344.1346 E•Mall: robert.shearman @heraw.com November 2, 2009 VIA E -MAIL ONLY John Cassels, Esquire Okeechobee County P.O. Box 968 Okeechobee, FL 34973 Re: Hammer Construction v. Okeechobee Claim #010523- 030270 -E0-01 Dear John: Last week Ross Furry, Don Roper and I met with Norm Hammer and his legal counsel in an effort to break the stalemate which had taken hold of this case. As you know, Hammer Construction had repeatedly requested that we execute an Assignment Agreement allowing it to proceed directly against the insurers denying payment for post hurricane repair work performed by Hammer. While we were willing to sign the Assignment, we insisted that it be accompanied by a release, such that Hammer could not later bring a claim against Okeechobee seeking recovery for expenses which were ultimately determined to be non - covered, excessive, unreasonable, or for whatever reason, uncollectible against the insurers. Our face to face last meeting proved to be very productive, and Hammer's attorney, Scott Konopka is now preparing a revised Assignment Agreement which should accomplish both objectives. Once 1 have received the revised draft Assignment Agreement, I will provide it to you for your review. To the extent that it will be necessary to schedule a meeting to obtain approval of the Agreement and authorization for it to be signed by a duly authorized representative, the appropriate process can be initiated. As you recall, we have not yet filed a response to the pending litigation, and are operating under an indefinite extension of time to do so while we conclude our Assignment Agreement. Henderson, Franklin, Starnes & Holt, P.A. John Cassels, Esq. November 2, 2009 Page 2 If you would like to discuss this matter further at this time, please give me a call. Very truly yours, Pd 2td C-Zitdook, Robert C. Shearman RCS /cgw cc: Terri Morris, Gallagher Bassett Frank Shore, PRM Ross Furry, PRM PUBLIC RISK MANAGEMENT OF FLORIDA BOARD OF DIRECTORS MEETING NOVEMBER 13, 2009 REGULAR AGENDA SUMMARY 7. Board Member Items John Litton, Chairperson A. 2010 Meetings /Locations Our By -Laws, under Article 7.1. provide: Meetings: The Executive Board will establish regular meetings, which shall be held at least 4 times a year. Regular meetings of the Board of Directors may be held up to 4 times a year. Tentative times, dates & locations of regular meetings of the Board shall be established at the beginning of each fiscal year, and the Executive Board will establish tentative times, dates & locations of its regular meetings & give timely and appropriate notice of said meetings to all Preferred & Standard Members. Any item of business may be considered at a regular meeting, including the scheduling of future regular meetings. Executive Board Meetings 2010: March 12, 2010 June 18, 2010 August 13, 2010 November 12, 2010 Board of Directors Meetings 2010: Note: The PRM Admin. Budget, Executive Director Evaluation & Insurance Renewals were presented at the Feb. 2009 Executive Committee Meeting. These items were approved at the March 2009 Board of Directors Meeting. We recommend amending the Executive Board Meeting dates to coincide with budgets & renewals to allow approval of same by Board of Directors. Executive Board Meetings 2010: February 12, 2010 May 14, 2010 August 13, 2010 November 12, 2010 Board of Directors Meetings 2010: March 12, 2010 June 18, 2010 (Marco) Action: _Approved Denied Deferred Other Public Comment: Discussion must be limited to a maximum of five (5) minutes per person. Adjourn CALENDAR FOR 2010 9 3 10 17 2431 M 4 11 .18 25 JANUARY T WT 5 6 7 12 13 14 19 20 21 26 27 28 F 1 8 15 22 29 9 2 9 16 23 30 9 7 14 21 28 M 1 8 15 22 FEBRUARY T WT 2 3 4 9 10 11 16 17 18 23 24 25 F5 5 6 12 13 19 20 26 27 S 7 14 21 28 MARCH M T W 7 1 2 3 4 8 9 10 11 15 16 17 18 22 23 24 25 29 30 31 F 5 12 19 26 S 6 13 20 27 8 4 11 '18 25 M 5 12 19 26 APRIL 7 W 7 1 6 7 8 13 14 15 20 21 22 27 28 29 F 2 9 16 23 30 5 3 10 17 24 9 2 9 16 233o M 3 10 17 393, T 4 11 18 25 MAY W T 5 6 12 13 19 20 26 27 FS $ 7 8 14 15 21 22 28 29 6 13 20 27 M 7 14 21 28 JUNE 7 ; W 3 8 9 10 15 16 17 22 23 24 29 30 FS F S 11 12 18 19 25 26 JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER T F S $ M T W7 1 F 2 S 3 S 1 MT 2 3 W 4 7 5 F 6 S 7 $ M T W 1 7 2 FS 3 4 9 M 7 W 7 FS 1 2 5 M 1 7 2 W 7 3 4 FS 5 6 S M 7 W 1 2 3 4 4 5 6 7 8 9 10 8 9 10 11 12 13 14 5 '6 7 8 9 10 11 3 4 5 6 7 8 9 7 8 9 10.11 12 13 5 6 7 8 9 10 17 11 18 11 12 13 14 15 16 17 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 12 13 14 15 16 14 15 16 17 18 19 20 12 13 14 15 16 25 18 19 20 21 22 23 24 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 23 21 22 23 24 25 26 27 19 20 21 22 23 24 25 26 27 28 29 30 31 29 30 31 26 27 28 29 30 2 43, 25 26 27 28 29 30 28 29 30 26 27 28 29 30 31 PUBLIC RISK MANAGEMENT OF FLORIDA 3434 HANCOCK BRIDGE PKWY, SUITE 203 FORT MYERS, FL 33903 1- 800 - 367 -1705 MAIN: 239 - 656 -4666 FAX: 239 - 656 -1066 Serving Florida Public Entities October 22, 2009 TO: All PRM Board Members and Alternate Members FROM: Judy Hearn RE: PRM Board of Directors Meeting * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** The next PRM Board of Directors Meeting will be held on Friday, November 13, 2009, at the Terrace Hotel in Lakeland, beginning at 10:00 a.m. To ensure there will be a quorum present, we need to know who will be attending the meeting, as well as a count for lunch. Agenda packets will be mailed soon. RSVP by return fax to 239 - 656 -1066 or 239 - 656 -3123 or e-mail sbaron@prm- fl.com. Will attend meeting. Will stay for lunch Will not attend. 10,4),Loc_x\ Signature ) 5o,, Printed Name C,--/-c7 CCI vd2 Name of Entity FAXED