2015 annual report - golden state risk management authority · “golden state risk management...

2 0 1 5 A N N U A L R E P O R T

“Golden State Risk Management Authority is established for the purpose of providing services and other functions necessary and appropriate for the creation, operation, and maintenance of liability, workers’ compensation, property and other risk pooling and coverage plans for the Member Agencies that are parties hereof, and to provide a forum for discussion, study, development and implementation of recommendations of mutual interest regarding risk pooling and insured programs.”

Mission Statement

1 Letter to Members

2 GSRMA Team

3 We Work for California Public Entities

4 2004-2015 Board of Directors

6 Member Agencies – Location

7 Member Agencies – Date Joined

10 Member Agency Growth

11 GSRMA Total Assets ‘79 - 2015

12 General Liability and Workers’ Compensation Programs

13 Property and Miscellaneous Coverage

15 2015 Employee Benefits Program

17 2015 Loss Prevention & Training

18 CAJPA Accreditation

19 Actuarial Policy and Program Funding

20 Overview of the Financial Position

28 Member Photos

Contents

San Francisco

Los Angeles

San Diego

Santa BarbaraOxnard

Escondido

Huntington Beach

Santa Maria

San Jose

Santa Rosa

Oakland

Salinas

Reno

Sacramento

Fresno

Bakers�eld

Redding

Fire District Cemetery District Special District School District City & County

CALIFORNIA

Mount Shasta

Mount Whitney

2

6

13

24

GSRMA 2015 Annual Report

Greetings!

It is sometimes hard to believe that I have been part of the California risk pool industry for nearly 30 years. What strikes me the most as I look over that span, is how complex the industry has become and how change seems to be ever-present.

With that in mind, it is impressive to me how readily our entire GSRMA team adjusts to change. We operate in a very dynamic environment yet consistently deliver programs and services of the highest quality. This environment pushes us to quickly recognize the need for change and then to readily embrace it. As a result, we have the opportunity to continually improve the quality of our programs and the manner in which we provide services to our members.

2015 provided us with many such opportunities. Major changes in the past year included our incorporation of a new allocation process, no small undertaking, to provide a more equitable con-tribution calculation methodology. We have embarked on a journey with several of our software providers to aggressively incorporate the use of data analytics in various areas of our operations. In cooperation with the Public Cemetery Alliance we developed a new board member selection process that we will be testing in 2016.

But, while working on these major changes, we continued to maintain, and even improve, elements of our pool that we want to retain. For example, to meet increased demand, we have worked diligently to provide more training and on-site visits to our members than ever before. We continued with our healthy growth by adding 8 new members. We hosted what many attendees stated was our best annual conference ever. Attendance and number of members represented were up and our speakers and subject matter was excellent. And, most importantly, our unchanged conservative approach to finances resulted in another increase to our net assets which reinforces our commitment to a strong pool.

As we look to forward to 2016, we continue to incorporate change. As part of our new allocation process, we will be implementing a payroll look-back provision. This will further enhance the equitability of our contribution calculation process. We will be increasing staff to assist this continuous growth of members and services. We will be investing in new processes and software in the employee benefits program which is poised to experience a significant growth in membership. We will also continue developing our use of data analytics.

While, at times, this constant change seems exhausting, I choose to believe it is what keeps us engaged and young in spirit. We look forward to continued change in 2016 for the betterment of the members of our pool.

Scott Schimke, Executive Director

Letter to Members

1

GSRMA 2015 Annual Report2 GSRMA 2015 Annual Report

Scott Schimke - ARM, Risk Manager, Scott has been involved in California pool manage-ment since 1988. He is the Risk Manager and Executive Director of GSRMA. His responsibilities include overall pool management, recommendation of and commu-nication with re-insurance carriers, evaluation and recommendation of vendors and business partners and communication with the Board. Scott is Past-President of CSAC Excess Insurance Authority (EIA) Board of Directors. He currently serves on the EIA’s Executive and Underwriting committees.

Rick Krepelka – Chief Operations Officer, Rick has over 20 years of experience in technology consulting with emphasis in com-puterized accounting systems. He is responsible for all aspects of finance and accounting for GSRMA as well as managing the administration and operations. Rick is Past-Chair of the Technology Committee for the California Association of Joint Powers Authorities (CAJPA) and is Vice-Chair of the Technology Committee for the CSAC Excess Insurance Authority.

Jennifer Peters - ARM, Assistant Risk Manager, Jennifer has five and a half years of experi-ence as an Assistant County Safety Officer. Jennifer develops and delivers on-site training and loss prevention consultations. She is responsible for the implementation and administration of service and risk management programs includ-ing: online training, nurse triage, labor poster program and other member risk management services. She is also responsible for planning GSRMA’s Annual Training Day.

Mark Marshall - Safety Officer, Mark has 30 years in fire service, including 15 years as a fire chief. He has many years of public service as an elected official and volunteer. Mark became GSRMA’s Safety Officer in 2002. As a certified trained instructor for numerous safety, loss prevention and compliance areas, his focus is on member loss prevention with an emphasis on safety training and site reviews. Mark provides member service support for current and prospective members.

Naomi Whatley - Member Services Account Associate, Naomi has 18 years of experience in the insurance industry. Naomi provides member service support for all of GSRMA’s coverage and Employee Benefit Programs. She is responsible for production of the Annual Report, and currently serves on the EIA’s Health Committee.

Tricia Alderman - Workers Compensation Manager, Tricia has 20 years of workers’ compensation claims processing experience. She also has extensive experience in claims auditing and claims examiner oversight and training. She is a workers’ compensation claims examiner and manages our Workers’ Compensation Department.

Gale Hamon - WCCP, Workers’ Compensation Claims Administrator - Gale has over 30 years of experience in workers’ compensation claims processing and management. He is GSRMA’s Senior Workers’ Compensation Caims Examiner. Gale assists with direct claims administration and oversight of the claims process.

Cynthia Connelly - WCCP, CPDM, Claims Professional, Cynthia has worked in various aspects of GSRMA processes since joining the organization in 1989. She is the Workers’ Compensation Claims As-sistant and also assists the Liability Claims Manager with the process-ing of liability and property claims. She is the system administrator for our internal claims software as well.

Cathy Mudd – Operations Manager, Cathy has 12 years of experience in public entity accounting processes. She is Operations Manager and assistant to the Finance Director. She manages day-to-day bookkeeping and account-ing processes. She also manages the accounting for the Employee Benefits Program.

Patti Powers - PHR, Finance/ HR Manager, Patti contributes a depth of experience in accounting and finance as well as being a certified HR professional. She handles much of the day-to-day bookkeeping and accounting processes. She also manages the accounting for our Employee Benefits Program.

GSRMA Team

Liz Smith - Member Services Coordinator, Liz provides customer service assistance to Member Services. She is responsible for member data maintenance in various internal and external systems. Liz maintains the property insurance and member demographic information as well as our web site.

Tracey Crosby - Administrative Assistant, Tracey has 30 years of experience in Administrative Support and is responsible for front desk and phone reception as well as office administrative support. She assists all departments with document production, data management and facilitates com-munication among staff, members and business partners.

2

GSRMA 2015 Annual Report 3

We “work” for California public entities by:

• Being responsive to busy, multi-tasking public entity professionals. We are dependable and consistent in our availability to our members. We maintain a very high service level as we know our members are too busy to deal with automated phone attendants and days old responses to email requests.

• Focusing on small and medium-sized organizations. We understand our members do not have the time or staff to become insurance and risk manage-ment experts. Smaller organizations rely on our extensive experience in public entity risk management.

• Leveraging our experience in public entity risk management. We have been insuring California public entities since 1979 and have expertise in many public entity types. We partici-pate in member-related professional development events as both attendees and presenters at conferences and regional trainings. We also work closely with various public entity professional organizations on items of mutual interest.

• Issuing dividends and never having assessments. When risk pools are managed efficiently, very often there are funds available to return to members. GSRMA has returned millions of dollars in dividends to members over the years. Less fortunate pools sometimes need to issue as-sessments—additional premium for previous years’ of coverage—which can be devastating to small entity budgets. GSRMA has never issued an assessment.

• Participating in the California Asso-ciation of Joint Powers Authorities

We Work For California Public Entities

(CAJPA) accreditation process. We have been accredited through the rigorous CAJPA accreditation pro-gram every three years since 1992 achieving their highest rating of “Accredited with Excellence” each time. This certification is accepted in the risk pool industry as proof that a pool is operated under the highest of standards and best practices.

• Processing our claims in-house. Unlike most risk pools, we do not contract to a third party admin-istrator to process claims. Rather we have our own claims staff and management. This allows us to work more closely with our members on re-solving claims in an optimal manner.

• Providing a wide range of valuable services to members at no additional cost. This saves members considerable time and expense. Services include loss prevention, web and on-site training, human resource hotline, return-to-work programs, anonymous crime reporting and more.

• Spreading risk and costs across a variety of member types. The cost of risk can best be kept level by spread-ing it across not only various sized entities but among various member types. A “non-homogeneous” risk pool such as GSRMA is more likely to have more moderate peaks and valleys in rates. This consistency helps our members in their annual budget and finance processes.

• Implementing loss prevention and training incentive programs. Mem-bers can earn up to 10% of their annual contribution upon their successful completion of our loss prevention incentive program. We also provide grants to members for 3rd party training for their districts.

• Having a dedicated representative on our Board of Directors for each member type. At least one of the 7 positions on the GSRMA board is dedicated to a representative from each of our member types including cities, counties, fire districts, school districts, cemetery districts and special districts. This insures each member type participation in the governance of the risk pool.

• Packaging the best mix of coverage from first class partners. We have assembled the broadest of coverages from premier excess pools and car-riers. We benefit from belonging to CSAC-Excess Insurance Authority, one of the largest excess risk pools in the country, which exercises its purchasing power to obtain high lim-its, broad form coverage and the most competitive prices. We also provide coverage for risks, such as cyber or pollution liability, that our members may not have even considered.

• Encouraging GSRMA staff to be deeply involved in the public risk pool industry. Our staff serve in various risk pool industry positions including governing boards and committee chairs of associated risk pools and professional organizations. In addition, staff attend various industry group conferences including CAJPA, PARMA, AGRIP and PRIMA, often as invited speakers.

• Maintaining conservative funding levels and conservative fiscal policies. GSRMA maintains program assets in excess of $17 million that are at levels considered fiscally sound in the industry. These assets demon-strate the strength of our pool and the level of commitment historically made by and for our members.

Golden State Risk Management Authority (GSRMA) is unique in California risk pools. We ca-ter to small and medium-sized public entities that do not have the resources to fund all the expertise (human resource staff, dedicated legal counsel and even risk management and loss prevention positions) that their larger counterparts can afford.


2015-2016John Viegas, President - County Charles Gee, Vice President - City George Ouzounian - Cemetery District Keith Corum - County Michael Schaeffer - Fire District Dr. Michael Karle - School District Kim Vann - Special District Leonard G. Krup - Legal Counsel

2014-2015John Viegas, President - County Charles Gee, Vice President - City George Ouzounian - Cemetery District Steve Soeth - County Neil Quinn - Fire District Dr. Michael Karle - School District2013-2014Mike Murray, President - County John Viegas, Vice President - County Pat Elliot - Cemetery District Charles Gee - City Neal Quinn - Fire District Don Perez - School District Gary Evans - Special District 2012-2013Mike Murray, President - County John Viegas, Vice President - County Pat Elliott - Cemetery DistrictCharles Gee - CityJohn Eaker - Fire DistrictDon Perez - School DistrictRoger Abe - Special District2011-2012Mike Murray, President - CountyJohn Viegas, Vice President - CountyPat Elliott - Cemetery DistrictCharles Gee - CityJohn Eaker - Fire District Bill Boone - School District Roger Abe - Special District

2010-2011Mike Murray, President - CountyJohn Viegas, Vice President - CountyPat Elliott - Cemetery DistrictCharles Gee - CityJohn Eaker - Fire DistrictBill Boone - School DistrictKim Vann - Special District2009-2010John Viegas, President - CountyMike Murray, Vice President - CountyEugene Kaufman - Cemetery DistrictReggie Olney - CityJohn Eaker - Fire DistrictBill Boone - School DistrictKim Vann - Special District2008-2009Bill Boone, President - School DistrictJohn Viegas, Vice President - CountyMike Murray - CountyEugene Kaufman - Cemetery DistrictReggie Olney - CityJohn Santi - Fire DistrictSandra Cabral - Special District2007-2008Keith Hansen, President - CountyTom McGowan, Vice President - CountySharon Marsh - Cemetery DistrictReggie Olney - CityJohn Santi - Fire DistrictBill Boone - School DistrictSandra Cabral - Special District

2004-2015 Board of Directors

4

John Viegas – Current Board President

2006-2007Keith Hansen, President - CountyTom McGowan, Vice President - CountySharon Marsh - Cemetery DistrictReggie Olney - CityJohn Santi & Frank Koss - Fire DistrictBill Boone - School DistrictSandra Cabral - Special District2005-2006Keith Hansen, President - CountyTom McGowan, Vice President - CountySharon Marsh - Cemetery DistrictReggie Olney - CityFrank Koss - Fire DistrictLonnie St. Louis - School DistrictSandra Cabral - Special District2004-2005Keith Hansen, President - CountyTom McGowan, Vice President - CountyReggie Olney - CityLonnie St. Louis - School DistrictNelson Benton & Sharon Marsh - Special District

NOTE: Effective July 1, 2005 the GSRMA Board of Directors expanded from five to seven members to better represent the composition of the member agencies.

GSRMA 2015 Annual ReportGSRMA 2015 Annual Report 5


Member Agencies by Location

6

San Francisco

Los Angeles

San Diego

Santa BarbaraOxnard

Escondido

Huntington Beach

Santa Maria

San Jose

Santa Rosa

Oakland

Salinas

Reno

Sacramento

Fresno

Bakers�eld

Redding

Fire District Cemetery District Special District School District City & County

CALIFORNIA

Mount Shasta

Mount Whitney


Member Agencies and Date Joined

7

Fire Districts-48 Albion-Little River Fire Protection District 4/1/2005Anderson Valley Community Services District 7/1/2010Artois Fire District 7/1/1979Bayliss Fire Protection District 7/1/1979Bear Valley/Indian Valley Fire District 7/1/1989Beckwourth Fire Protection District 7/1/2015Big Pine Fire Protection District 7/1/2014Burney Fire Protection District 7/1/2010Camptonville Community Services District 7/1/2008Capay Fire Protection District 7/1/1991Coffee Creek Volunteer Fire District 11/1/2008Comptche Community Services District 4/1/2005Crescent Fire Protection District 7/1/2012Dobbins-Oregon House Fire Protection District 7/1/2009Downieville Fire Protection District 1/3/2011El Medio Fire Protection District 7/1/2011Elk Community Services District 3/31/2008Elk Creek Fire District 7/1/1979Fall River Mills Fire Protection District 11/1/2005Foothill Fire Protection District 7/1/2009Grenada Fire Protection District 11/1/2015Glenn-Codora Fire District 7/1/1979Glenn-Colusa Fire District 7/1/1979Hamilton City Fire Protection District 7/1/1979Jackson Valley Fire Protection District 4/1/2010Knights Landing Fire Protection District 7/1/2010La Porte Fire Protection District 7/1/2010Lakeport Fire Protection District 7/1/2015Little Valley Community Services District 2/1/2004Long Valley Fire Protection District 7/1/2012Maxwell Fire Protection District 7/1/2002Mendocino Fire Protection District 7/1/2004Meridian Fire Protection District 12/3/2009Mount Shasta Fire Protection District 5/1/2002Northshore Fire Protection District 7/1/2014Ord Bend Fire Protection District 7/1/1979Orland Rural Fire District 7/1/1979Piercy Fire Protection District 4/1/2006Pliocene Ridge Community Services District 7/1/2005Redwood Coast Fire Protection District 7/1/2009River Delta Fire District 1/10/2011Siskiyou County Service Area No. 4 7/1/2012Trinity Center Community Services District 11/1/2008Ukiah Valley Fire District 4/1/2006Williams Fire Protection Authority 7/1/2005Willows Rural Fire Protection District 7/1/1979Yolo Fire Protection District 11/1/2010Zamora Fire Protection District 7/1/2009

Cemetery District-121 Alturas Cemetery District 11/10/2008Anderson Cemetery District 7/1/2003Arbuckle Cemetery District 10/24/2005Arroyo Grande Cemetery District 2/1/2005Artesia Cemetery District 6/1/2011Atascadero Cemetery District 7/1/2003Auburn Public Cemetery District 7/1/2008Bangor Cemetery District 7/1/2010Big Pine Cemetery District 7/1/2014Browns Valley Cemetery District 8/1/2005Brownsville Cemetery District 8/1/2005Burney Cemetery District 7/16/2003Byron-Brentwood-Knightsen Union Cemetery District 6/1/2004Cambria Cemetery District 7/1/2003Carters Cemetery District 8/1/2005Castroville Cemetery District 7/1/2008Cayucos-Morro Bay Cemetery District 7/1/2004Cedarville Cemetery District 10/1/2011Central Valley Cemetery District 7/1/2003Chester Cemetery District 10/10/2006Chowchilla Cemetery District 7/1/2015Clovis Cemetery District 7/1/2003College City Cemetery District 7/1/2010Columbia Cemetery District 6/1/2004Colusa Cemetery District 3/7/2004Corning Cemetery District 7/1/2003Cottonwood Cemetery District 3/26/2003Elk Creek Cemetery District 7/1/1979Elk Grove-Cosumnes Cemetery District 7/1/2003Elsinore Valley Cemetery District 11/11/2008Fair Oaks Cemetery District 7/1/2003Fortuna Cemetery District 7/1/2013Galt-Arno Cemetery District 6/16/2003Glenbrook Cemetery District 2/7/2013Gridley-Biggs Cemetery District 4/1/2003Guadalupe Cemetery District 7/1/2013Halcumb Cemetery District 7/1/2003Hanford Cemetery District 7/1/2008Happy Homestead Cemetery District 3/31/2003

Orland Heartland Park


Member Agencies and Date Joined

8

Clovis Cemetery District

Cemetery District (cont.) Hartley Cemetery District 3/1/2011Hills Ferry Cemetery District 7/1/2003Hornbrook Cemetery District 5/12/2007Kelsey Cemetery District 6/22/2003Kelseyville Cemetery District 4/1/2005Kern River Valley Cemetery District 7/1/2012Keystone Cemetery District 8/8/2006Kimshew Cemetery District 4/25/2003Live Oak Cemetery District 4/17/2003Lompoc Cemetery District 7/1/2013Lookout Cemetery District 8/28/2010Los Banos Cemetery District 8/4/2006Los Molinos Cemetery District 7/1/2003Lower Lake Cemetery District 7/1/2003Madera Cemetery District 7/1/2011Manton Joint Cemetery District 1/26/2004Marvin-Chapel Cemetery District 7/1/1979Mary’s Cemetery District 2/1/2004Maxwell Cemetery District 12/13/2005Meadow Valley Cemetery District 1/1/2011Mendocino Little River Cemetery District 7/1/2003Merced Cemetery District 6/1/2008Merquin Cemetery District 7/1/2011Millville Cemetery District 7/1/2003Murrieta Valley Cemetery District 7/1/2009Nevada Cemetery District 7/1/2003Newcastle, Rocklin, Gold Hill Cemetery District 7/1/2006Newville Cemetery District 3/1/2008North Kern Cemetery District 7/1/2013Oak Grove Cemetery District 11/10/2005Oak Hill Cemetery District 7/1/2008Orland Cemetery District 7/1/1983Oroville Cemetery District 7/1/2003Pajaro Valley Cemetery District 7/1/2004Paradise Cemetery District 7/1/2003Paso Robles Cemetery District 7/1/2003Patterson Cemetery District 7/1/2008Peoria Cemetery District 7/1/2003Picard Cemetery District 4/1/2006Pine Creek Cemetery District 7/1/2003Pine Grove Cemetery District 6/1/2015Pioneer Cemetery District 7/1/2014Placer County Cemetery District #1 1/9/2005Plainsburg Cemetery District 7/1/2003Pleasant Grove Cemetery District 7/1/2005Porterville Public Cemetery District 3/10/2012Quincy-LaPorte Cemetery District 7/1/2003Ramona Cemetery District 7/1/2003

Red Bluff Cemetery District 7/1/2003Rio Vista-Montezuma Cemetery District 6/25/2015Riverview Cemetery District 1/1/2004Roseville Cemetery District 7/1/2015Russian River Cemetery District 7/1/2005Santa Margarita Cemetery District 5/6/2003Santa Maria Cemetery District 3/20/2004Selma Cemetery District 7/1/2008Shasta Valley Cemetery District 5/13/2003Shaws Flat-Springfield Cemetery District 7/1/2004Shiloh Cemetery District 7/1/2012Sierra County Cemetery District #5 5/12/2004Silveyville Cemetery District 7/1/2010Snelling Cemetery District 5/1/2009South Kern Cemetery District 7/1/2012Stonyford Cemetery District 7/1/2000Sutter Cemetery District 7/1/2003Sylvan Cemetery District 4/26/2003Tehachapi Cemetery District 7/1/2012Tehama Cemetery District 7/1/2003Tipton-Pixley Cemetery District 5/6/2004Township No. 2 Cemetery District 9/1/2013Tracy Public Cemetery District 6/15/2005Truckee Cemetery District 1/31/2004Upham Cemetery District 6/1/2004Upper Lake Cemetery District 6/1/2003Visalia Public Cemetery District 5/1/2003West Side Cemetery District 7/1/2012Wheatland Cemetery District 7/1/2007Wildomar Cemetery District 1/31/2008Wilmington Cemetery District 11/20/2013Williams Cemetery District 7/1/2005Willows Cemetery District 7/1/1979Winton Cemetery District 7/1/2003

Cities-4 City of Crescent City 7/1/2011City of Dorris 7/1/2014City of Orland 7/1/1979City of Williams 7/1/2011

County-1 County of Glenn 7/1/1979


247

9

Schools-8 Capay Joint Union Elementary School District 7/1/1982Glenn County Office of Education 7/1/1979Hamilton Unified School District 7/1/1979Lake Elementary School District 7/1/1979Plaza School District 7/1/1979Princeton Joint Unified School District 7/1/1979Stony Creek Joint Unified School District 7/1/1979Willows Unified School District 7/1/1979

Special-77 Arbuckle Public Utility District 7/1/2008Artois Community Services District 7/1/1982Berry Creek Community Services District 9/1/2003Biggs-West Gridley Water District 1/1/2013Brannan-Andrus Levee Maintenance District 12/1/2010Broadmoor Police Protection District 7/1/2014Butte City Community Services District 7/1/1979Cachuma Resource Conservation District 9/1/2014Capitol Southeast Connector 1/25/2005Chowchilla Red Top Resource Conservation District 9/1/2013Church Tree Community Service District 4/1/2013Colusa Basin Drainage District 4/1/2007Colusa County One-Stop Partnership 7/1/2003Colusa County Resource Conservation District 7/1/2010Colusa County Water District 4/1/2012Colusa County Water Works #1 8/26/2011Concord/Pleasant Hill Health Care District 10/1/2012Cortina Creek Flood Control & Flood Water Conservation District 5/15/2009Cortina Water District 4/1/2012East Merced Resource Conservation District 7/1/2010Elk County Water District 2/12/2010Elk Creek Community Services District 7/1/1979First 5 Colusa 7/1/2008First 5 Glenn County 7/1/2000First 5 Yuba 1/1/2009Glenn County In-Home Supportive Services Public Authority 7/1/2003Glenn County Olive Pest Management District 7/1/2002Glenn County Resource Conservation District 7/1/2000Glenn LAFCO 11/1/2013Glenn Transit Service 7/1/1996Hamilton City Community Services District 7/1/1979Holthouse Water District 7/11/2013Hornbrook Community Services District 7/1/2007IHSS Public Authority of Marin 7/1/2012Lake Berryessa Resort Improvement District 8/1/2009Levee District I 7/1/1979Levee District II 7/1/1979Levee District III 7/1/1979Los Carneros Water District 7/15/2009

Madera Resource Conservation District 9/1/2013Maxwell Irrigation Disrtrict 1/1/2013Maxwell Public Utility District 7/1/2003Maxwell Recreation and Park District 7/29/2003Mendocino City Community Services District 7/1/2004Merced County IHSS Public Authority 7/1/2012Merced County Law Library 7/1/2012N. E. Willows Community Services District 7/1/1979Napa-Berryessa Resort Improvement District 1/23/2009Nevada-Sierra Regional IHSS Public Authority 10/1/2003North Central Counties Consortium 7/1/2006North Willows County Service Area 7/1/1987Ord Bend Community Services District 7/1/1979Orland-Artois Water District 10/1/2008Proberta Water District 3/7/2013Rancho Murieta Community Services District 7/1/2010Reclamation District No. 563 3/1/2011Reclamation District 2140 7/25/2006Reclamation District No. 1002 4/3/2011Reclamation District No. 2067 3/10/2011Reclamation District No. 317 3/10/2011Reclamation District No. 784 12/1/2009Reclamation District No. 833 4/2/2010Reclamation District No. 407 3/10/2011Sacramento Area Council of Governments 7/1/2014Sacramento County IHSS Public Authority 7/1/2012Sacramento Metropolitan Cable Television Commission 7/1/2012Salsipuedes Sanitary District 5/15/2003Sand Creek Flood Control District 7/1/2013San Joaquin IHSS Public Authority 7/1/2012Sierra-Sacramento Valley Emergency Medical Services 9/1/2009Solano County Transit 8/16/2012Storm Drain Maintenance District I 7/1/1979Storm Drain Maintenance District III 7/1/1979Tehama-Colusa Canal Authority 4/1/2007Tulare County IHSS Public Authority 7/1/2012Ukiah Valley Sanitation District 1/1/2011Westside Water District 7/1/2012

Cambria Cemetery District

GSRMA 2015 Annual Report10

MembersAgencies

On July 1, 1979 Glenn County Joint Powers Authority was founded with 28 original members, all located with-in Glenn County. As of December 31, 2015, Golden State Risk Management Authority consists of 259 member agencies located in 48 California Counties. GSRMA members have a combined total of approximately 2,500 employees, over 900 volunteers and over 1,200 elected or appointed public officials. Total member payroll is in excess of $100 million. Growth in total members has been steady. During the 2014-15 coverage period, 8 new agencies joined GSRMA.

New members have contributed to greater stability and increased assets. GSRMA continues to have excellent member retention. Growth is expected to continue as more entities find GSRMA to be an excellent solution to their insurance and risk management needs.

GSRMA Member Agency Growth from 1979 - 2015

Year1979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-9999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-15

Year1979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-9999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-15

228209

194173

159147

134120

10852

47414141414140404040404038383838383837363434

28

247251259

$6,687,140 $6,990,428

$7,652,433

$6,442,384 $5,728,943

$5,558,992 $5,238,718

$4,919,322 $4,794,319

$4,371,617 $3,915,737

$3,498,125 $2,371,307

$1,864,995 $1,777,189

$1,534,228

$1,563,326

$1,510,098

$1,487,223$1,332,045

$1,148,517$977,075$948,480$936,927$978,197$1,057,710

$800,000

$848,823

$703,749

$736,219

$795,336$904,172

$1,388,960

$1,625,808

$1,611,809

Year1979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-9999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-15

$17,212,842$18,406,688

$19,518,278

$15,337,142$14,804,783

$14,361,964$13,724,070

$12,165,604$10,899,507

$8,876,312$7,581,124

$6,562,615$5,931,379

$5,077,109

$6,010,909$5,416,262

$5,423,971

$6,547,709

$6,268,852

$4,893,706$4,542,337

$4,414,034$4,284,301$4,070,412$3,738,336

$3,313,199$3,146,301$2,991,064

$945,532

$2,668,254

$380,833

$2,205,611$1,662,401

$5,848,088

$7,057,830

$6,797,628

$1,844,423

ContributionsUS Dollars

Year1979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-9999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-15

Year1979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-9999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-15

228209

194173

159147

134120

10852

47414141414140404040404038383838383837363434

28

247251259

$6,687,140 $6,990,428

$7,652,433

$6,442,384 $5,728,943

$5,558,992 $5,238,718

$4,919,322 $4,794,319

$4,371,617 $3,915,737

$3,498,125 $2,371,307

$1,864,995 $1,777,189

$1,534,228

$1,563,326

$1,510,098

$1,487,223$1,332,045

$1,148,517$977,075$948,480$936,927$978,197$1,057,710

$800,000

$848,823

$703,749

$736,219

$795,336$904,172

$1,388,960

$1,625,808

$1,611,809

Year1979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-9999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-15

$17,212,842$18,406,688

$19,518,278

$15,337,142$14,804,783

$14,361,964$13,724,070

$12,165,604$10,899,507

$8,876,312$7,581,124

$6,562,615$5,931,379

$5,077,109

$6,010,909$5,416,262

$5,423,971

$6,547,709

$6,268,852

$4,893,706$4,542,337

$4,414,034$4,284,301$4,070,412$3,738,336

$3,313,199$3,146,301$2,991,064

$945,532

$2,668,254

$380,833

$2,205,611$1,662,401

$5,848,088

$7,057,830

$6,797,628

$1,844,423

Atascadero Cemetery DistrictCounty of Glenn Veterans Building

Beckworth Fire Department


GSRMA Total Assets from 1979 - 2015

Total AssetsUS Dollars

Year1979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-9999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-15

Year1979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-9999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-15

228209

194173

159147

134120

10852

47414141414140404040404038383838383837363434

28

247251259

$6,687,140 $6,990,428

$7,652,433

$6,442,384 $5,728,943

$5,558,992 $5,238,718

$4,919,322 $4,794,319

$4,371,617 $3,915,737

$3,498,125 $2,371,307

$1,864,995 $1,777,189

$1,534,228

$1,563,326

$1,510,098

$1,487,223$1,332,045

$1,148,517$977,075$948,480$936,927$978,197$1,057,710

$800,000

$848,823

$703,749

$736,219

$795,336$904,172

$1,388,960

$1,625,808

$1,611,809

Year1979-801980-811981-821982-831983-841984-851985-861986-871987-881988-891989-901990-911991-921992-931993-941994-951995-961996-971997-981998-9999-20002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-142014-15

$17,212,842$18,406,688

$19,518,278

$15,337,142$14,804,783

$14,361,964$13,724,070

$12,165,604$10,899,507

$8,876,312$7,581,124

$6,562,615$5,931,379

$5,077,109

$6,010,909$5,416,262

$5,423,971

$6,547,709

$6,268,852

$4,893,706$4,542,337

$4,414,034$4,284,301$4,070,412$3,738,336

$3,313,199$3,146,301$2,991,064

$945,532

$2,668,254

$380,833

$2,205,611$1,662,401

$5,848,088

$7,057,830

$6,797,628

$1,844,423

Paso Robles Cemetary DistrictMadera Cemetery District

El Medio Fire District

Annual contributions have increased steadily since 2002 due to new members and increased payroll and property values of existing members. Contribution rates, based on cost of insurance per unit of coverage, have held stable through the years; a desired result of pooled insurance programs. This stability can be attrib-uted to the administrative efficiency that growth has provided and reduced claims costs due to member loss pre-vention efforts.

GSRMA’s total assets have grown from $380,833 as of June 30, 1980, the end of the first program year, to over $19.5 million as of June 30, 2015.

In July 2000, GSRMA adopted a Capital Target Reserve Policy to protect assets and return excess funds

to members. This policy resulted in a downward adjustment of GSRMA as-sets as dividends were paid back to the members in the late 1990’s. GSRMA has a strong history of returning excess contributions to the members in the form of dividends.

Total assets have grown to keep pace with claims exposures due to the steady growth in membership that started in 2002. GSRMA continues to be well funded. Net equity, assets less liabilities, in the program is estimated to be $4.9 million as of June 30, 2015, an increase of $800 thousand from the prior period.


$50 million Per Occurrence Limits•First-dollarcoverage-nomemberretentionordeductibleforliabilitylosses

•Bodilyinjury&propertydamage

•Personalinjury

•Publicofficialserrors&omissions

•Automobileliability

•Contractualliability

•Employmentpracticesliability

•Pollutionliabilityandcrime-bondcoverageareprovidedwithseparatelimits

GSRMA participates in the CSAC-Excess Insurance Authority (EIA) General Liability Program for excess liability coverage. The program is one of the largest public agen-cy excess pooling programs in the country. The size and reputation of the program provides unmatched stability and leverage in the insurance market.

GSRMA schools participate in both the CSAC-EIA program and Schools Excess Liability Fund (SELF) which provides member schools coverage that is designed specifically for education risks.

Statutory Limits – $5 million Employers Liability•First-dollarcoverage–nomemberretentionordeductibleforworkers’compensation

claims

•Completeself-administrationofclaims

•Coordinatedphone-inreportingandinjurytriage

•Customizedreturn-to-workprograms

•GSRMAhasbeennationallyrecognizedforitsinnovativeclaimsmanagementsolutions

GSRMA participates in the CSAC-EIA Excess Workers’ Compensation (EWC) Program. The EWC has the financial strength and stability to remain strong in all market conditions. The program utilizes pooled, fully-insured and quota-sharing coverage layers to spread risk. The GSRMA Workers’ Compensation Program provides its members with stable, competitive rates through responsible funding and administrative efficiency.

$25 Million Catastrophic Liability Insurance Protection (CLIP)

– Lexington Insurance Company $25M excess of $25M

$25 Million Reinsurance Layer

– Starr Indemnity and Liability Company $10M excess of $15M

$15 Million Reinsurance Layer

– Ironshore Indemnity, Inc. $10M excess of $5M pool

$5 Million CSAC EIA Pool

– Covers difference between $250K and $5M

$250 Thousand GSRMA Pool

– Covers the first $250,000

Comprehensive General Liability Program

Workers’ Compensation Program

Statutory Excess Insurance Layer

– National Union Fire Insurance Company (An AIG Company) Statutory excess of $50M

$50 Million Excess Insurance Layer

– ACE American Insurance Company $45M excess of $5M Pool


– Difference between SIR and $5,000,000 per occurrence.

– Reinsured by Wesco Insurance Co. (AmTrust Group) Subject to a $23,509,716 Corridor Retention


– Covers the first $300 Thousand per occurence

Mt. Shasta Fire DistrictRussian River Cemetery District

Galt-Arno Cemetery District


$600 million Limits Per Loss

•Lowmemberdeductibles

•All-risk,fullreplacementcostcoverage

•Realandpersonalproperty

•Automobile,mobileequipment,watercraft,boilerandmachinery

•Floodcoverageincluded

•Noco-insuranceclause

•Optionalearthquake,andaviation/airportcoverageavailable

GSRMA participates in the CSAC-EIA Property Program. The unique structure of the program diversifies risk geographically throughout the State. This innovative ap-proach reduces the impacts of large losses to the individual members and insurers. The program is insured by numerous separate insurance carriers further stabilizing the program and protecting against carrier insolvency due to large losses.

In addition to property coverage, GSRMA members have access to reduced cost coverage for watercraft, medical malpractice, aviation and other exposures.

$600 Million

– $300M excess $300M All Risk

$300 Million

– $275M excess $25M All Risk & Flood Limits (Flood Limits Annual Aggregate)

$25 Million Primary Layer

– $25M All Risk Including Earthquake, Flood and Boiler & Machinery


– $3M per occurrence/$10M Annual Aggregate Excess of Underlying Deductibles (Excludes earthquake and flood)


– $4,000 after member deductible

$1 Thousand Member

– Member deductible per covered loss

Property and Miscellaneous Coverage

13GSRMA 2015 Annual Report

GSRMA 2015 Annual Report14 GSRMA 2015 Annual Report


GSRMA’s Employee Benefits Program launched on July 1, 2007 with six member agencies, 25 covered employees and 50 covered lives. As of December 31, 2015, GSRMA health provides coverage to 35 agencies with 1033 total lives!

GSRMA plans are available to Cali-fornia public agencies with less than 250 employees. The plans are offered through EIA Health’s small group plans. EIA Health utilizes proven pooling concepts to reduce costs by spreading them over a large popula-tion. EIA Health partners with Self-Insured Schools of California (SISC), to create one of largest employee ben-efit programs in the country, which affords tremendous funding leverage.

The challenges of health care re-form are being met, and all GSRMA offerings are compliant with the regulations as they become law. The

2015

2014

2013

2012

2011

2010

2009

2008

MembersAgencies / Employees

31

35

30

29

25

19

12

6

GSRMA 2015 Employee Benefits Program

900

1033

942

472

622

187

56

25

plans promise to remain an excellent option well into the future. GSRMA provides administration, billing and enrollment to plan members. The plans utilize Blue Shield and Anthem PPO (Preferred Provider Organization) networks, the two largest in California. Currently, there are 8 plan designs available. The selection includes three traditional PPO’s, two high-deductible Health Savings Account (HSA) compatible PPO’s, two HMO’s (Health Maintenance Organizations) and an EPO (Exclusive Provider Or-ganization) to provide an HMO style option to areas where no HMO exists.

Dental, vision, group life and disability coverage is also available. Like the medical coverage, these programs are offered through the CSAC-EIA and utilize the same efficient funding principles.

Arbuckle Public Utility DistrictBiggs-West Gridley Water DistrictBurney Fire Protection DistrictButte County Mosquito and Vector Control DistrictCastroville Cemetery DistrictCentral Valley Cemetery DistrictCity of DorrisCity of OrlandCity of OrovilleCity of Rancho CucamongaColusa Cemetery DistrictFortuna Cemetery District

Galt-Arno Cemetery DistrictGlenn Co. Office of Ed. Child & Family ServicesHappy Homestead Cemetery DistrictHills Ferry Cemetery DistrictMaxwell Fire Protection DistrictMayers Memorial Hospital DistrictMendocino City Community Services DistrictModoc Medical CenterMurrieta Valley Cemetery DistrictNorthNet Library SystemsOak Hill Cemetery DistrictOrland Cemetery District

Paradise Cemetery DistrictPatterson Cemetery DistrictPlacer County Cemetery District #1Reclamation District No. 784Santa Maria Cemetery DistrictTehama-Colusa Canal AuthorityThermalito Water and Sewer DistrictTrindel Insurance FundUkiah Valley Fire DistrictWestside Water DistrictWilliams Cemetery District

GSRMA Employee Benefits Membership


Golden State Risk Management Au-thority believes that effective safety and loss prevention programs are critical for the success of our member agencies. Safety and loss prevention programs improve organizational safety, create a safe and healthy work environment, and reduce losses and exposures. GSRMA is pleased to offer comprehensive programs and services to assist our members in the development and implementation of these programs.

TRAININGTraining is a core component of effective safety and loss prevention programs. To meet the diverse needs of our membership, GSRMA provides a variety of training opportunities, including, but not limited to the fol-lowing:

Annual Training Conference

Each October, GSRMA holds its An-nual Training Conference. The goals of this event are to provide training to our members on a wide range of topics, as well as to create an environ-ment that encourages networking and sharing among our members. This year, the 11th Annual Golden State Risk Management Authority Train-ing Conference was held on Octo-ber 22nd, at Rolling Hills Resort in Corning, CA. The 123 people that attended the conference represented 51 of our member agency districts. Based on feedback throughout the day and after the event, this was one of our best annual workshops ever! The event included sessions pre-sented by renowned speaker Gordon Graham on basic risk management foundations and the importance of Non-Punitive Close Call Reporting programs. Mr. Graham also presented his ten rules for workplace safety in a session on “Occupational Safety–

2015 Member Services and Loss Prevention Highlights

Tips for Success.” Attendees also learned how organizations can avoid many employment practice pitfalls in Robert Hunt’s presentation based on calls received through GSRMA’s HR Hotline. The day concluded with a social hour and Public Cemetery Alli-ance dinner, which was co-sponsored by GSRMA. The conference was a great success.

On-Site Training

GSRMA staff travel all over the State of California to provide on-site training for our member agencies. The trainings available cover a wide variety of topics, including, but not limited to: Defensive Driving, How to Conduct Tailgate Safety Train-ings, Heat Illness Prevention and Site Hazard Identification. Over this past year, GSRMA staff have provided on-site training to 1,011 attendees on the topics listed in the chart below.

Regional Training

Regional Safety Trainings are another tool that have proven to be very suc-cessful with our member agencies. A member that is interested in host-ing a regional training can contact

GSRMA staff. We then work with the member to help facilitate the event, send out invitations, as well as assist with the day’s training. This format has been very successful, as it allows us to provide instruction to a larger audience, and fosters networking opportunities among our member agencies. Often during these events our members are seen sharing in-formation or suggestions based on their experiences. We look forward to continuing this format for future trainings.

Online Training

To supplement our on-site and re-gional safety trainings, GSRMA also offers online training through a robust training program called TargetSolutions. TargetSolutions offers tools that make online training more efficient and productive. TargetSolutions provides a wide variety of quality training programs, along with a customizable records management system. Course topics range from Fleet Safety to Hazard Communication, and many in between. TargetSolutions also offers 100s of hours of continuing education courses for law enforcement, fire, EMS

Training Course Number of Individuals TrainedAB 1825 Mandated Harassment for Supervisors 173AB 1234 Mandated Ethics Training 152Annual Training Day 123Back Safety and Proper Lifting 17Public Agency Board of Trustees Training 31CPR/First Aid 76Defensive Driving 122Disaster Planning Training 10Fire District Governance Training 35Heat Illness Prevention Training 87How to Teach Tailgate Training 27Regional Safety Training 100Site Hazard Identification 10Traffic Control and Flagging 42Workplace Violence Prevention Training 6 Gordon Graham, 11th Annual GSRMA

Training Conference at Rolling Hills Resort


MEMBER VISITSInteraction and contact with our members is important to us. As such, GSRMA staff travels all over the state to conduct on-site visits to our member agencies. During these visits, staff are happy to answer questions, provide assistance with develop-ment or implementation of programs, conduct safety inspections, and many other services. During the past year GSRMA staff conducted 236 member site visits.

HR LEGAL RESOURCE HOTLINEEmployment law is a complex issue and meeting rules and regulations can be tricky, especially for public entities. It is vital that all employers deal with employee issues properly, fairly, and firmly. To reduce the occurrence of employment practice claims, GSRMA developed an HR Legal Resource Hotline. We partnered with Hunt Jeppson & Griffin, a firm that special-izes in employment law, to provide this service to our members. Since this program began in 2011 it has been very successful and has saved member agen-cies thousands in legal fees. GSRMA members have benefited from the mitigation of countless employment-related losses.

TargetSolutions Program UtilizationJuly 1, 2014 – June 30, 2015

3,746 Total Courses Completed

3,030 Total Custom Activities Completed

LOSS PREVENTION INCENTIVE PROGRAMThe Loss Prevention Incentive Pro-gram (LPIP) was created to provide GSRMA members with an incentive to develop, implement and maintain safety and loss prevention programs. The development of safety and loss prevention programs assists members in the reduction of claims and losses. Through the LPIP, members can earn an award of up to 10% of their cur-rent year’s contribution (maximum of $50,000) based on qualifications. The success of this program continues to grow each year. This past year 41 member agencies earned awards totaling $255,422. We congratulate this year’s recipients for all of their hard work.

LOSS PREVENTION SUBSIDY FUNDTo further support our commitment to safety and training, GSRMA continues to offer our Loss Preven-tion Subsidy Fund (LPSF). This program encourages our members to attend safety and loss prevention training by awarding grants to help offset the costs. To be considered for the program, members submit an application including an explanation

Fire District School District Special District Cemetery District County of Glenn Cities

TargetSolutions Course Completion By Member Type

2267

487

191100

459 242

of the proposed training to GSRMA staff. The funds can be used for a variety of safety and loss prevention training opportunities and are avail-able on a first come first served basis. During the 2014/2015 fiscal year 33 members applied for funding through this program, with requests totaling $22,288.92.

WETIPWeTip is an anonymous crime report-ing program that allows residents and members of the community to report information regarding crimes without fear of retaliation. If a crime occurs, members can contact GSRMA staff with photos and a description of the event. GSRMA works with WeTip to create an event flyer, which can be posted around your community. A toll free tip line is available 24 hours a day, 365 days a year. WeTip also provides a bullying prevention program, which is a great benefit to school districts. Along with the toll free tip line, WeTip provides educational resources to help combat bullying and promote reporting of incidents.

and water agencies. TargetSolutions is a valuable tool for GSRMA members and will continue to be an important component of our program for years to come. GSRMA members’ utilization of TargetSolutions for the past year is shown in the table below and chart at right.


CAJPA Accreditation

The California Association of Joint Powers Authorities (CAJPA) sponsors what is considered the nation’s first risk management accreditation program. This program is designed to ensure quality and professional standards for all California risk management pools regardless of size, scope of operation, or membership structure. The process involves a detailed program study and evaluation, committee review and issuance of a report. The process is an extremely detailed audit conducted by an independent consultant and sub-ject to CAJPA’s exacting standards.

Since 1992 GSRMA has maintained CAJPA’S highest award: “Accredited with Excellence.” GSRMA completed the tri-annual process in the spring of 2013, and was awarded continuous accreditation through May, 2016. GSRMA staff are preparing for the re-accreditation process, which will begin in early 2016.

1818


It is the policy of the Authority to have an independent actuarial study performed annually to establish the adequacy of reserves in the Workers’ Compensation and Liability/Property programs. The study also determines the appropriate funding levels for anticipated future losses, and the amount of equity in each program.

Confidence Levels

Confidence level is an estimated probability that a given level of funding will be adequate to pay claims costs. For example, the 85% confidence level refers to an estimate for which there is an 85% chance that the amount will be sufficient to pay loss costs.

Expected level refers to the best estimate of the full, ultimate value of loss costs. It is considered prudent to maintain asset levels at an amount that exceeds the expected level. Generally, a confidence level of 70% is considered marginally acceptable, 75%-85% confidence level (conservative) is recommended, and confidence levels above 90% are considered very conservative.

Discounted v. Undiscounted

Discounted figures take into account anticipated invest-ment income during the life of the claim. Undiscounted figures do not. Based on market conditions and historically low interest rates, GSRMA is currently utilizing a discounting rate of 2%.

GSRMA Actuarial Policy and Program Funding

General Workers Compensation & General Liability Confidence Levels Combined$000’s

General Liability$000’s

Workers Compensation$000’s Workers Comp

Expected -DiscountedExpected Undiscounted

70% Discounted70% Undiscounted





$9,008 $9,915 $10,087 $11,103 $10,329 $11,369 $10,609 $11,677 $10,956 $12,059 $11,420 $12,570

Total Assets$10,146

Combined Workers Comp and General Liability







Available Assets$15,668








$1,793$1,850 $2,107 $2,174 $2,268 $2,340 $2,455 $2,533 $2,686 $2,771 $2,993 $3,088

General Liability

$10,801 $11,765 $12,194 $13,277 $12,597 $13,709 $13,064 $14,210 $13,642 $14,830 $14,413 $15,658

Expected -Discounted Expected Undiscounted70% Discounted 70% Undiscounted 75% Discounted 75% Undiscounted 80% Discounted 80% Undiscounted 85% Discounted 85% Undiscounted 90% Discounted 90% Undiscounted$9,008$9,915$10,087$11,103$10,329$11,369$10,609$11,677$10,956$12,059$11,420$12,570 Total Assets$10,146

Expected -Discounted Expected Undiscounted70% Discounted70% Undiscounted75% Discounted75% Undiscounted80% Discounted80% Undiscounted85% Discounted85% Undiscounted90% Discounted90% Undiscounted$10,801$11,765$12,194$13,277$12,597$13,709$13,064$14,210$13,642$14,830$14,413$15,658Total assets$15,185







$1,793$1,850$2,107$2,174$2,268$2,340$2,455$2,533$2,686$2,771$2,993$3,088Available assets$5,039

Workers Comp







$9,008 $9,915 $10,087 $11,103 $10,329 $11,369 $10,609 $11,677 $10,956 $12,059 $11,420 $12,570

Total Assets$10,146
















$1,793$1,850 $2,107 $2,174 $2,268 $2,340 $2,455 $2,533 $2,686 $2,771 $2,993 $3,088

General Liability

$10,801 $11,765 $12,194 $13,277 $12,597 $13,709 $13,064 $14,210 $13,642 $14,830 $14,413 $15,658










Workers Comp







$9,008 $9,915 $10,087 $11,103 $10,329 $11,369 $10,609 $11,677 $10,956 $12,059 $11,420 $12,570

Total Assets$10,146
















$1,793$1,850 $2,107 $2,174 $2,268 $2,340 $2,455 $2,533 $2,686 $2,771 $2,993 $3,088

General Liability

$10,801 $11,765 $12,194 $13,277 $12,597 $13,709 $13,064 $14,210 $13,642 $14,830 $14,413 $15,658










1. The graph at top illustrates GSRMA’s available assets vs. outstanding claims liabilities ($000’s) for the self-funded liability and Workers’ Compensation Programs combined at June 30, 2015. The estimated claims liability for the combined programs is $10,801,000 discounted and $11,765,000 undis-counted. The available assets of $15,668,000 equate to a funding level that exceeds the 90% (very conservative) discounted confidence level.

2. The graph above left illustrates GSRMA’s available assets vs. outstanding claims liabilities ($000’s) for the self-funded Liability Program at June 30, 2015. The estimated claims liability for the Liability Program is $1,793,000 discounted and $1,850,000 undiscounted. The available assets of $5,039,000 equate to a funding level that exceeds the 95% (very conservative) confidence level.

3. The graph left illustrates GSRMA’s available assets vs. outstanding claims liabilities ($000’s) for the self-funded Workers’ Compensation Program at June 30, 2015. The estimated claims liability for the Workers’ Compensation Programs is $9,008,000 discounted and $9,915,000 undiscounted. The available assets of $10,146,000 equate to a funding level that exceeds the 70% (marginally acceptable) confidence level on a discounted basis.


The following is a discussion on GSRMA’s financial posi-tion and various elements that

affect its position. The discussion is based on the audited financials for the 2014/2015 fiscal period. James Marta & Company, Certified Public Accountants, has performed inde-pendent audit examinations of our fi-nancial statements. Their opinion on the Authority’s financial statements as of June 30, 2015 is included in the annual financial audit that is available at www.gsrma.org.

GSRMA management is responsible for establishing and maintaining an internal control structure designed to ensure that assets are protected from loss, theft, or misuse and to ensure that adequate accounting data is compiled to allow for preparation of financial statements in conformity with accounting principles generally accepted in the United States of America.

GSRMA has adopted a conservative investment policy according to state guidelines designed to optimize the rate of return on available assets not

required for current operations while still keeping these assets readily available.

Budgetary control is provided by verifica-tion of budgeted amounts prior to expen-ditures and analysis of all account totals compared to budgeted amounts. Detailed reports of the budget-to-actual compar-isons are provided to the JPA Board. In addition, an Income Statement, Balance Sheet and Checking Account Disclosure Report are reviewed three times annually by the GSRMA Board of Directors. Also, disbursement and bank transactional reports are reviewed by the Executive Di-rector and/or the Board Officers regularly.

FINANCIAL HIGHLIGHTS• Total revenue, from all sources, was

$14.3 Million, an increase of 5% or $652K from 2013/2014. However, most of this increase ($418K) was due to an increase in premium for the workers’ compensation program. The remainder was due to member contribution in the liability programs which actually increased $241K or 7% compared to 3.5% change in the prior year. Revenue from the health plan was 6.5 Million, essentially no change from the prior year

• Total expenses were $13.8 Million, an increase of 9% totaling $1.3M from 2013/2014. Estimated claims cost increased a significant 28% or $987K due to increases in both liability and workers’ compensation claims activity. Insurance expense and admin increased 2% and 4% respectively. The former was due to an increase in excess workers’ compensation rates the latter was due increased cost of professional services due to increased member demand for services.

• GSRMA assets of $19.5 Million ex-ceeded its liabilities of $14.9 Million

2015 2014

Current AssetsCash and cash equivalents 9,303,677$ 9,600,158$ Interest receivable 36,247 26,556Investments maturing within one year 2,025,165 1,546,095Accounts receivable 333,155 647,640Prepaid expenses 590,607 542,779 Total Current Assets 12,288,851 12,363,228

Noncurrent AssetsInvestments, at market 7,229,427 6,043,460

Total Assets 19,518,278 18,406,688

Current LiabilitiesAccounts payable 40,215 109,532 Assessment payable 34,180 34,180 Unearned revenue 2,536,418 2,143,431Dividends payable - - Current portion of unpaid claims and claim adjustment expense 2,550,000 2,400,000 Total Current Liabilities 5,160,813 4,687,143

Noncurrent LiabilitiesAssessment payable 239,261 273,441 Unpaid claims and claim adjustment expense 9,514,860 9,354,184 Total Noncurrent Liabilities 9,754,121 9,627,625

Total Liabilities 14,914,934 14,314,768

4,603,344$ 4,091,920$ Net Position

2015 2014

Member contributions 14,240,143$ 13,588,252$ Other income 26,037 16,997

Total Operating Revenues 14,266,180 13,605,249

Provision for unpaid claims and claim adjustment expenses 3,556,693 2,569,592Insurance expense 7,893,256 7,773,933Claims administration 538,483 515,307General and administrative expenses

Professional services 388,392 354,194Loss control services 639,364 596,315Risk management services 707,254 650,745Other administrative expenses 116,716 115,492Dividends expenses - -

Total general and administrative expenses 1,851,726 1,716,746

Total Operating Expenses 13,840,158 12,575,578

Operating Income (Loss) 426,022 1,029,671

Investment income 85,402 135,131

511,424 1,164,802

Net Position, Beginning of Period 4,091,920 2,927,118

Net Position, End of Period 4,603,344$ 4,091,920$

2015 Overview of the Financial Position


at June 30, 2015 by $4.6 Million. This amount increased $511K or 13% due mainly to increased investment values. This compares to a relatively small decrease in net assets of $291K or 10% between 2012/2013 and 2013/2014. The $4.6 Million of fund equity may be used to meet GSRMA’s ongoing obligations to members, claimants and creditors.

Total non-employee benefits contribution revenues increased 8% or $635K over 2013/2014. The increase was principally due to new members. Estimated payroll increased negligibly at approximately 2.6%. We expect the payroll for existing members to continue to level off in 2015/2016 though total payroll for the year should increase due mainly to an in-crease in membership. Investment income increased from $67K in 2013/2014 to $135K in 2014/2015. We expect no change or slight growth in the next year as bond prices remain flat or inch up and higher paying notes retain their value.

The employee benefits participation increased to 35 members with a total of 538 employees and 1,033 lives. Though this is mostly a “pass-through” product provided for the benefit of our members, its increased growth does have a small positive affect to pool net revenues.

Insurance Premiums. The insurance premium revenues and the expenses are dependent on the cyclical insurance market. Currently, the market continues on its path of hardening. Claims costs directly related to medical costs and administrative costs, due to increased reporting and regulatory compliance, increase premium costs. The forecast for extremely low return for investment of public agency reserves as well as the unpredictable state of financial markets worldwide have an overall negative affect as well. GSRMA should expect to see excess rates continue to increase.

Excess insurance costs from 2013/2014 to 2014/2015 increased 2.3% or $182K. This is a minor increase in excess insurance in line with the slight payroll increase of 2.6%.

Provision for Insured Events. The provi-sion for insured events is a management estimate of the cost of insured claims. This estimate is based on a variety of actuarial and statistical techniques con-sidering claims history, claim payment history, claim frequency, changes in doc-trines of legal liability, inflation and other economic and social factors. Claim cost estimates are constantly re-evaluated. Changes to prior year claim cost are adjusted as they occur. The provision was significantly higher over the past year due to an increase in both workers’ compensation and liability claims.

Financial SummaryDuring the fiscal year 2014/2015, the overall financial picture of GSRMA strengthened due to lower than expected claims costs. The result is that net assets increased almost $511K or 11%. Since this amount can change significantly

2015 2014

Current AssetsCash and cash equivalents 9,303,677$ 9,600,158$ Interest receivable 36,247 26,556Investments maturing within one year 2,025,165 1,546,095Accounts receivable 333,155 647,640Prepaid expenses 590,607 542,779 Total Current Assets 12,288,851 12,363,228

Noncurrent AssetsInvestments, at market 7,229,427 6,043,460

Total Assets 19,518,278 18,406,688

Current LiabilitiesAccounts payable 40,215 109,532 Assessment payable 34,180 34,180 Unearned revenue 2,536,418 2,143,431Dividends payable - - Current portion of unpaid claims and claim adjustment expense 2,550,000 2,400,000 Total Current Liabilities 5,160,813 4,687,143

Noncurrent LiabilitiesAssessment payable 239,261 273,441 Unpaid claims and claim adjustment expense 9,514,860 9,354,184 Total Noncurrent Liabilities 9,754,121 9,627,625

Total Liabilities 14,914,934 14,314,768

4,603,344$ 4,091,920$ Net Position

2015 2014

Member contributions 14,240,143$ 13,588,252$ Other income 26,037 16,997

Total Operating Revenues 14,266,180 13,605,249

Provision for unpaid claims and claim adjustment expenses 3,556,693 2,569,592Insurance expense 7,893,256 7,773,933Claims administration 538,483 515,307General and administrative expenses

Professional services 388,392 354,194Loss control services 639,364 596,315Risk management services 707,254 650,745Other administrative expenses 116,716 115,492Dividends expenses - -

Total general and administrative expenses 1,851,726 1,716,746

Total Operating Expenses 13,840,158 12,575,578

Operating Income (Loss) 426,022 1,029,671

Investment income 85,402 135,131

511,424 1,164,802

Net Position, Beginning of Period 4,091,920 2,927,118

Net Position, End of Period 4,603,344$ 4,091,920$

GSRMA 2015 Annual ReportGSRMA 2015 Annual Report22


from year to year, this is not unexpected. The pool remains adequately and conservatively funded above the 90% confidence level.

For the future, the following are nega-tive factors that will impact GSRMA:Case law and legislative activity has occurred that has resulted in increased costs and a negative financial impact. AB 2253 (public safety employees cancer presumptive), signed into law late in 2010, will have a significant negative impact on claims cost over time. Legislation that will result in increased workers’ compen-sation costs continues to be introduced annually and are beginning to have more success in being signed by the Governor.

Though a turnaround should finally occur mid-year, low interest rates continue to erode the amount of additional funds generated by investments that help offset claims and administrative costs. This will continue to have an impact in 2015/2016 as most excess funds are kept in safe but low yielding cash accounts and bond instruments. Notably related to this, our excess carrier is being significantly affected by the decrease in the level of discounting they exercise in calculating their outstanding claims liability. Discounting takes into account future returns on investment to offset claims liability. As interest rates have remained low, this offset amount has decreased substantially requiring CSAC-EIA to increase their reserves by increasing the amount they collect from members.

Though the effects of the State’s fiscal crisis were partially alleviated with tax increases approved by the voters through Proposition 30, many special districts in California are still struggling —including the members of GSRMA. These struggles could continue to negatively affect the budgets of these districts including their employee counts and total payroll amounts. The first of these tax increases will sunset at the end of 2016 though it is expected that voters

will be asked to continue them.

It is expected that state, federal and busi-ness partner reporting requirements will continue to increase in both the amount of data required and the complexity of the reporting requirements. This increas-es costs due to changes and additions of software and systems to meet these requirements as well as staff or contractor time to manage them.

Future positive impacts on GSRMA include:Improved administrative processes will continue to streamline the operation of this pool. New claims processing and pool management software are being more fully implemented and should result in more efficient claims processing and pool administration. These changes should allow us to adequately respond to a continued increase of reporting requirements and regulation by carriers and from State agencies.

Introduction of a new pharmaceutical benefits management company has resulted in lower pharmacy costs and is expected to continue to do so.

Efforts to produce and use analytics both within GSRMA member data and in conjunction with data from other like risk organizations should result in quicker recognition of and response to potential losses. This may decrease claims costs and increase overall pool efficiency.

The State budget has recovered and revenue continues to exceed budgeted amounts. This should relieve some pres-sure on member budgets and possibly allow them to restore some of their lost payroll funding.

At this time, due to the diligence and fis-cally conservative nature of its governing board, GSRMA is in solid financial posi-tion. However, it will need to continue to be vigilant and conservative to maintain this position during challenging times.


2015 GSRMA Member Photos

Chowchilla Cemetery District

Sacramento Area Council of Governments

Mendocino City Sanitation District

City of Crescent City

Tehama Colusa Canal Authority

Meridian Fire District

Cayuccos-Morrow Bay Cemetery District

Tracy Cemetery District

Mendocino Fire Department

Visalia Cemetery District

Silveyville Cemetery District

Willows Unified School District Playground

P.O. Box 706 | Willows, CA 95988 | P 530 934-5633 | F 530 934-8133 | www.gsrma.org

California Association of Joint Powers AuthoritiesAccredited with Excellence since 1992

2015 annual report - golden state risk management authority · “golden state risk management...

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