agenda - perma.dst.ca.us...jun 06, 2019 · notices: 1. the next regularly scheduled meeting of the...

REVISED 05/31/19

AGENDA

PUBLIC ENTITY RISK MANAGEMENT AUTHORITYBOARD OF DIRECTORS

MEETING PLACE: Rancho Mirage Public Library71-100 Highway 111Rancho Mirage, California 92270

Library Telephone: (760) 341-7323PERMA Telephone: (760) 360-4966

MEETING DATE: Thursday, June 6, 2019

MEETING TIME: 10:00 AM ¶ Please Note Start Time

In compliance with the Americans with Disabilities Act, if you are a disabled person and need a disability-related modification or accommodation to participate in this meeting, please contact PERMA at (760) 360-4966. Notification 48 hours prior to the meeting will enable PERMA to make reasonable arrangements toensure accessibility to this meeting.

BOARD OF DIRECTORS

1. City of Adelanto2. City of Banning3. City of Barstow4. City of Blythe5. City of Canyon Lake6. City of Cathedral City7. City of Coachella8. City of Desert Hot Springs9. City of Eastvale10. City of Hesperia11. City of Holtville12. Imperial County

Transportation Commission (ICTC)

13. Imperial Valley Emergency Communications Authority (IVECA)

14. City of Jurupa Valley15. City of La Mesa16. March Joint Powers Authority17. Mojave Desert & Mountain

Integrated Waste Management Authority

18. City of Moreno Valley19. Mount San Jacinto Winter

Park Authority (PS Tramway)20. City of Murrieta21. City of Norco22. Palo Verde Valley

Transit Agency (PVVTA)

23. City of Perris24. City of Rancho Mirage25. City of San Jacinto26. So. Cal. Intergovernmental

Training & Dvlpmnt. Center (Gov’t Training Agency)

27. City of Stanton28. SunLine Transit Agency29. Victor Valley Economic

Development Authority (VVEDA)

30. Victor Valley Transit Authority (VVTA)

31. City of Victorville32. City of Westmorland

1. CALL TO ORDER

2. INTRODUCTIONS

3. APPROVAL OF AGENDA AS POSTED (OR AMENDED)At this time the Board members may announce any items being pulled from the agenda orcontinued to another date or request the moving of an item on the agenda.

4. PUBLIC COMMENTSThe public may address the Board of Directors on any matter pertaining to PERMA that isnot on the agenda. The President reserves the right to limit the time of presentations byindividual or topic.

5. PRESENTATIONA. Chuck Buquet - PERMA President (February 2015 - March 2019)

6. CONSENT CALENDARAll items on the Consent Calendar will be approved by one motion, and there will be nodiscussion of individual items unless a Board member or member of the public requests aspecific item be pulled from the calendar for separate discussion.

A. Minutes of the Board of Directors’ Meeting - December 6, 2018B. Liability Claims Audit - 2018/19C. Amendment to the Risk Control Services AgreementD. Salary Schedule Effective July 1, 2019E. Financial Reports for November 30, 2018, December 31, 2018, January 31, 2019,

February 28, 2019, March 31, 2019, and April 30, 2019

Recommendation: Approve the Consent Calendar as presented.

7. ACTION / DISCUSSION ITEMSA. Risk Control Services - York

Recommendation: Review of 2018-19 risk control services and approve theproposed 2019-20 Risk Control Services Plan.

B. Memorandum of Liability Coverage and DeclarationsRecommendation: Approve the Memorandum of Liability Coverage and Declarationsas presented for the 2019-20 policy year.

C. Memorandum of Workers’ Compensation Coverage and DeclarationsRecommendation: Approve the Memorandum of Workers’ Compensation Coverageand Declarations as presented for the 2019-20 policy year.

Board of Directors’ Agenda - June 6, 2019

D. Alliant Property Insurance Program (APIP)Recommendation: Presentation by Seth Cole, Senior Vice President, with AlliantInsurance Services on the Alliant Property Insurance Program (APIP) renewal.

E. Workers’ Compensation Service Agreements: CorVel Enterprise Comp, AdminSure,and York Risk Services Group

Recommendation: Approve the renewal of service agreements with CorVelEnterprise Comp, AdminSure, and York Risk Services Group for workers'compensation claims administration

F. Notice of Withdrawal - City of AdelantoRecommendation: Reserved for consideration of the City’s rescission of its noticeto withdraw.

G. 2019-20 Annual BudgetRecommendation: Approve the 2019-20 Annual Budget as presented.

H. 2019-20 Annual PremiumsRecommendation: Approve the 2019-20 Annual Premiums as presented and grantthe General Manager authority to bind the Property/Auto Physical Damage, Crime,and Cyber Liability coverages.

I. Assessment of Policy Year 1986-87Recommendation: Recommend the Board declare an assessment of $750,000 forthe 1986-87 policy year with payments due July 1, 2019 but not considered late untilafter July 31, 2020.

J. Executive Committee VacancyRecommendation: Elect Darcy Wigington (Barstow) to fill the vacant seat on theExecutive Committee.

K. Alliant Deadly Weapon Response Program (ADWRP) ProposalRecommendation: Provide staff direction on whether to participate in the AlliantDeadly Weapon Response Program (ADWRP) on either a mandatory or voluntarybasis.

8. CLOSING COMMENTSThis time is set aside for Board members and staff to announce items/activities which maybe of general interest to the Board of Directors. There will be no Board discussion on variousmatters involving PERMA except to ask questions or refer matters to staff, and no action willbe taken unless listed on a subsequent agenda.

9. ADJOURNMENT


NOTICES:1. The next regularly scheduled meeting of the Board of Directors is Thursday, December 5, 2019 at

10:00 a.m., at the DoubleTree by Hilton Hotel, 67967 Vista Chino, Cathedral City, CA 92234.

2. Documents and materials relating to an open session agenda item that are provided to the Board ofDirectors less than 72 hours prior to a regular meeting will be available for public inspection andcopying at: PERMA, 36-951 Cook Street, Suite 101, Palm Desert, California 92211.

DECLARATION OF POSTING:I, Jennifer Martin, Secretary of the Public Entity Risk Management Authority, certify that a copy of thisagenda was posted in the Authority’s main office, 36-951 Cook Street, Suite 101, Palm Desert, on May 31,2019.

/s/ Jennifer Martin


PUBLIC ENTITYRISK MANAGEMENT AUTHORITY

BOARD OF DIRECTORS’ MEETINGJune 6, 2019

CONSENT CALENDAR

AGENDA ITEM 6A: Minutes of the Board of Directors’ Meeting - December 6, 2018

PREPARED BY: Scott EllerbrockGeneral Manager

RECOMMENDATION:Approve the minutes of the December 6, 2018 Board of Directors’ meeting.

FISCAL IMPLICATIONS:Not applicable.

BACKGROUND & OVERVIEW:Attached are the minutes of the December 6, 2018 Board of Directors’ meeting for reviewand approval.

REFERENCE MATERIALS ATTACHED:Minutes of the Board of Directors’ Meeting - December 6, 2018



CONSENT CALENDAR

AGENDA ITEM 6B: Liability Claims Audit - 2018/19


RECOMMENDATION:Receive and file the 2018/19 Liability Claims Audit, which was conducted by Ken Maiolini withRisk Management Services.

FISCAL IMPLICATIONS:No cost to PERMA to conduct the audit - CSAC-EIA performs claim audits of its membership,which satisfies both the CAJPA accreditation requirement and CSAC-EIA policy to have aclaims audit completed every two years.

BACKGROUND & OVERVIEW:Attached is the 2018/19 Liability Claims Audit conducted by Ken Maiolini with RiskManagement Services.

The objectives of the audit were to measure the claims handling performance against industrybest practices and offer recommendations, where appropriate, on ways in which overall claimmanagement might be improved.

The auditor found that the PERMA in-house claims handling meets or exceeds industrystandards, CSAC-EIA Claims Handling Criteria, and CAJPA criteria, and no recommendationswere made.

Congratulations to Kerry Trost, Claims Manager, and Carol Robinson, Claims Specialist, ona job well done.

REFERENCE MATERIALS ATTACHED:Liability Claims Audit 2018/19



CONSENT CALENDAR

AGENDA ITEM 6C: Amendment to the Risk Control Services Agreement


RECOMMENDATION:Approve Amendment One to the Consulting Services Agreement.


BACKGROUND & OVERVIEW:Bickmore has served as PERMA’s risk control services consultant since July 1, 2008. OnMay 1, 2014, Bickmore was acquired by York Risk Services (York). Effective December1, 2018, as part of a company-wide rebranding initiative, Bickmore was rebranded to York.

The name change requires an amendment to the existing agreement between PERMA andBickmore to ensure Bickmore’s contractual obligations are properly assigned to York.

Attached is the amendment to the risk control services agreement which expires June 30,2023.

REFERENCE MATERIALS ATTACHED:Amendment One to the Consulting Agreement

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AMENDMENT ONE TO THE CONSULTING SERVICES AGREEMENT

This Amendment One to that certain Consulting Services Agreement dated as of July 1, 2018 (the “Agreement”) by and between Public Entity Risk Management Authority (“Client”) and York Risk Services Group, Inc. (“York”), as successor in interest to Bickmore.

WITNESSETH WHEREAS, Bickmore’s 100% parent is York; and WHEREAS, Bickmore desires to assign its business applicable to the Agreement to

York, and York is prepared to assume all of Bickmore’s rights and obligations under the Agreement.

NOW, THEREFORE, in consideration of the mutual promises contained herein, and

other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Effective as of the date hereof, Bickmore’s rights and obligations under the

Agreement are assigned to York and York assumes all of such rights and obligations.

2. All other terms of the Agreement shall remain in force and unchanged. Any conflicts between this amendment and the original Agreement, including any prior executed amendments, shall be superseded by the terms provided herein.

{Remainder of the page is intentionally left blank}

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In Witness Whereof, the parties have executed this amendment to be effective as of January 1, 2019. PUBLIC ENTITY RISK MANAGEMENT YORK RISK SERVICES GROUP, INC. AUTHORITY By: __________________________ By: _____________________________ Name: Name: Title: ________________________ Title: ________________________ BICKMORE By: __________________________ Name: Title: ________________________



CONSENT CALENDAR

AGENDA ITEM 6D: Salary Schedule Effective July 1, 2019


RECOMMENDATION:Adopt the Salary Schedule effective July 1, 2019.

FISCAL IMPLICATIONS:On December 1, 2016, the Board of Directors approved a 7-step salary structure effectiveJuly 1, 2017 (with the exception of the general manager which remains at a low/high rangeformat) and to adjust the salaries by 2% or the March CPI index for Los Angeles-Riverside-Orange counties, whichever is greater, effective July 1st for the next two years (2018-19and 2019-20).

The March 2019 CPI was 2.8%, resulting in increased salaries of $16,955 for 2019-20.

The adjusted salaries are included in the 2019-20 budget - the purpose of this staff reportis to properly adopt the adjusted salary schedule as a standalone document to ensurecompliance with CalPERS.

BACKGROUND & OVERVIEW:Attached is a Liebert Cassidy Whitmore article discussing the importance of posting asalary schedule and ensuring the current salary schedule is properly adopted.

The author of the article recommends the salary schedule should be its own, standalonedocument that the governing body adopts in a publicly-noticed meeting that complies withall open meeting laws.

It is also recommended that the governing body adopt an updated pay schedule every yearthat salaries change - including pursuant to previously approved and/or negotiatedchanges.

On December 1, 2016, the Board of Directors approved a 7-step salary structure effectiveJuly 1, 2017 (with the exception of the general manager which remains at a low/high rangeformat) and to adjust the salaries by 2% or the March CPI index for Los Angeles-Riverside-Orange counties, whichever is greater, effective July 1st for the next two years (2018-19and 2019-20).

The 2019-20 budget included the adjusted salaries by the March 2019 CPI index of 2.8%based on the Board action taken in 2016, but a standalone adjusted salary schedule hasnot been properly adopted as recommended by the article.

Therefore, to ensure compliance with CalPERS regarding compensation earnable forretirement benefits, the adjusted salary schedule effective July 1, 2019 is being submittedfor adoption.

The salary schedules for the last 5 years are publicly accessible on the PERMA websiteand the schedules are mailed to the CalPERS Compensation Review Unit.

REFERENCE MATERIALS ATTACHED:Salary Schedule Effective July 1, 2019LCW Article - The Importance of Posting a Salary Schedule

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Public Entity Risk Management Authority (PERMA)

CCR Section 570.5 ‐ Requirement for a Publicly Available Pay Schedule

Pay Schedule Effective July 1, 2019

Job Classification Payment Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

Schedule

Secretary Annual $48,138 $50,545 $53,072 $55,726 $58,512 $61,438 $64,510

Monthly $4,012 $4,212 $4,423 $4,644 $4,876 $5,120 $5,376

Bi‐weekly $1,851 $1,944 $2,041 $2,143 $2,250 $2,363 $2,481

Hourly $23.14 $24.30 $25.52 $26.79 $28.13 $29.54 $31.01

Claims Specialist Annual $71,042 $74,594 $78,324 $82,240 $86,352 $90,670 $95,203

Monthly $5,920 $6,216 $6,527 $6,853 $7,196 $7,556 $7,934

Bi‐weekly $2,732 $2,869 $3,012 $3,163 $3,321 $3,487 $3,662

Hourly $34.15 $35.86 $37.66 $39.54 $41.52 $43.59 $45.77

Financial Analyst Annual $87,688 $92,072 $96,676 $101,510 $106,585 $111,914 $117,510

Monthly $7,307 $7,673 $8,056 $8,459 $8,882 $9,326 $9,793

Bi‐weekly $3,373 $3,541 $3,718 $3,904 $4,099 $4,304 $4,520

Hourly $42.16 $44.27 $46.48 $48.80 $51.24 $53.80 $56.50

Claims Manager Annual $108,584 $114,013 $119,714 $125,700 $131,985 $138,584 $145,513

Monthly $9,049 $9,501 $9,976 $10,475 $10,999 $11,549 $12,126

Bi‐weekly $4,176 $4,385 $4,604 $4,835 $5,076 $5,330 $5,597

Hourly $52.20 $54.81 $57.55 $60.43 $63.45 $66.63 $69.96

Low Range High Range

General Manager Annual $174,477 $208,564 $244,264

Monthly $14,540 $17,380 $20,355

Bi‐weekly $6,711 $8,022 $9,395

Hourly $83.88 $100.27 $117.43

Approved by the Board of Directors on December 1, 2016:

7‐step pay structure effective July 1, 2017, with the exception of the General Manager which will remain a low/high range format.

Adjust the pay structure by 2% or the March 2018 CPI‐U, Los Angeles area (3.8%), whichever is greater, to be effective July 1, 2018.

Adjust the pay structure by 2% or the March 2019 CPI‐U, Riverside area (2.8%), whichever is greater, to be effective July 1, 2019.

Approved

The Importance of Posting a Salary Schedule By Retirement Blogger on September 22, 2016

This post was authored by Heather Coffman

We’ve all heard the saying, “If it’s not written down, it didn’t happen.” In the context of retirement benefits for PERS members, the saying is slightly modified: “If an employee’s salary isn’t set forth on a properly adopted salary schedule, that individual’s retirement benefits may not pay out as expected.” While a mouthful, the message is an important one: employees’ salaries must be part of a publicly available, posted salary schedule to be counted by PERS when calculating pension benefits. PERS’ regulation requiring a publicly available pay schedule is often overlooked, with potentially

serious consequences. Here we will review the requirements under the regulation, and identify actions your agency can take if it’s not currently in full compliance.

Establishing Compensation Earnable: Requirement for a Publicly Available Pay Schedule

When a member retires, PERS is tasked with determining the amount of “compensation earnable” to determine how much that individual will receive as a monthly pension in retirement. Compensation earnable is a term defined by the Public Employees’ Retirement Law (“PERL”), section 20636. Generally, compensation earnable is calculated using the member’s pay rate and special compensation the employee earned while working for the contracting agency.

To determine the pay rate for the compensation earnable equation, PERS will only consider the normal monthly rate of pay or base pay that is established on a publicly available pay schedule. That pay schedule must meet several criteria, detailed in Title 2 of the California Code of Regulations, section 570.5. First and foremost, the governing body must have approved and adopted the pay schedule as a standalone document detailing the pay rates for each agency position. The schedule must be publicly accessible, and available for inspection for at least 5 years. The schedule itself must also include the following: every position’s title; the base salary for each position (ranges or steps); the time base for how pay is calculated (i.e., hourly, bi-weekly, etc.); and the effective date and dates of revisions.

Consequences for NOT maintaining a compliant salary schedule

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If an employer does not establish the publicly available pay schedule outlined above, PERS may consider additional relevant information to determine the appropriate pay rate for the employee or employees. However, the PERS Board has the sole discretion to decide what the pay rate should be. PERS usually limits the member’s pay rate to the salary that was part of the publicly available pay schedule that was approved by the agency’s governing board and disregards most other evidence presented to support including the additional compensation into the pay rate. As a result, individuals may receive a lower monthly pension benefit than expected.

Does your agency employ individuals whose positions are not part of an established salary schedule?

To avoid any unwelcome surprises when PERS determines pay rates when calculating compensation earnable, we recommend a careful review of your agency’s pay schedule practices. Here are a few common issues that you should consider:

• Is the position and title of every person who is enrolled in PERS on the agency’s pay schedule, including employees with individual employment agreements?• Do employees in certain classifications receive annual increases to their base pay rates under a memorandum of understanding or collective bargaining agreement? If so, has your agency’s governing board approved, and published, updated salary schedules each year to reflect those annual increases?

If the answer to the questions above is no, then your agency may not have a properly administered pay schedule. In practice, employers should make sure that their governing bodies adopt one unified pay schedule that includes all employee classifications. Additionally, the governing body should adopt an updated pay schedule every year that salaries change – including pursuant to a negotiated memorandum of understanding, or per an employment contract for an unrepresented employee. Further, the governing body should not simply pass a resolution adopting the salaries that are detailed in a separate document, like a memorandum of understanding or collective bargaining agreement. The salary schedule should be its own, standalone document that the governing body adopts in a publicly-noticed meeting that complies with all open meeting laws.

If you have any questions as to how to ensure compliance with this PERS regulation (section 570.5 of Title 2 of the California Code of Regulations), please consult legal counsel.

Liebert Cassidy WhitmoreCalifornia Public Agency Labor & Employment BlogCopyright © 2018, Liebert Cassidy Whitmore. All Rights Reserved.

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CONSENT CALENDAR

AGENDA ITEM 6E: Financial Reports for November 30, 2018, December 31,2018, January 31, 2019, February 28, 2019, March 31,2019, and April 30, 2019


RECOMMENDATION:Approve the financial reports for the months ending November 30, 2018, December 31,2018, January 31, 2019, February 28, 2019, March 31, 2019, and April 30, 2019.


BACKGROUND & OVERVIEW:The financial reports were previously distributed electronically to the membership at theclose of each month. The monthly reports are also available on the PERMA website forviewing.

REFERENCE MATERIALS ATTACHED:None - financial reports previously distributed.

PUBLIC ENTITY RISK MANAGEMENT AUTHORITY

BOARD OF DIRECTORS’ MEETING

June 6, 2019

ACTION / DISCUSSION ITEMS

AGENDA ITEM 7A: Risk Control Services - York PREPARED BY: Terrie Norris Risk Manager RECOMMENDATION: Review of 2018-19 risk control services and approve the proposed 2019-20 Risk Control Services Plan. FISCAL IMPLICATIONS: PERMA entered into a five-year agreement with Bickmore for risk control services effective July 1, 2018. The cost of services for the 2018-19 program year is $123,600. BACKGROUND & OVERVIEW Terrie S. Norris, Sr. Manager, with York will be present to review the 2018-19 risk control services and the proposed 2019-20 Risk Control Plan. The plan approved by the Board at its June 7, 2018 meeting includes specific services to address PERMA loss drivers while still providing “as requested” risk control services for individual members. This approach provides increased flexibility for members to address their risk control and risk management concerns. The 2018-2019 Risk Control Service Plan includes:

Focused Member Services Regional Training Sessions Member Requested Risk Control Services Contractual Risk Transfer Consultation Services Member Benefit Presentations York Risk Control Resource Website Unlimited Risk Control Consultation via Email and Telephone Inquiry

Focused Member Services The Focused Member Services provided risk control services for members with an Ex-Mod greater than 1.2 in either the Liability or Workers’ Compensation programs. The December 2017 financial reports that reported the 2018-2019 Ex-Mod Factors were used to select the members to be included in the 2018-2019 Focused Member Services, which include:

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- Exploratory meetings held with the members in the focused member services group. The meetings will involve:

o Discussions of the member’s risk control concerns and challenges o Development of a service plan to address their concerns and loss experience

- Follow-up risk control services as identified with the member during and/or after the exploratory meeting

- Follow-up communications to ensure the corrective action plan is still on track

Liability >1.20 W/C >1.20 Barstow Blythe Hesperia Jurupa Valley Norco Perris Stanton

Barstow Desert Hot Springs SunLine Transit

We were able to meet with all of the 2018-2019 Focused Service members.

Regional Training Sessions Regional workshops were planned to address a variety of target audiences. In February 2019 a survey was sent to members to determine interest in the projected topics. The results of the survey were discussed with the PERMA General Manager to determine the number of sessions to be provided based on the cost of the speaker. The results of the survey will be used to continue the regional workshops into the 2019-2020 programs year.

When planned workshops involve the use of paid subject matter experts, the PERMA Safety and Training – Training Reimbursement budget will be used to pay the speaker fee. York will continue to manage the planning of the regional workshops. For those workshops involving a paid subject matter expert:

York will work on behalf of PERMA to secure speakers at reduced speakers’ fee. York will obtain approval from PERMA prior to confirming the training with the speaker

and the number of training sessions to be scheduled. Speakers will bill PERMA directly. The budget will be maintained by PERMA.

PERMA will continue its practice of reimbursing members who host regional workshops for the cost of any refreshments they provide at the workshops.

For all regional workshops York will:

Identify the speaker Negotiate a low speaker fee – when a fee is charged Gain approval for paid speakers from PERMA’s General Manager Develop the training announcement Host the online registration Moderate the session Provide training documentation to the cities whose employees participate in the

training

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Regional training topics under consideration include: Workplace Violence Haz Whopper – What You Need to Know About Hazardous Materials Response Storm Water Pollution Prevention Asbestos Awareness (full day classes) Asbestos Cement Pipe Cutting

Member Requested Risk Control Services Risk control services were provided to individual members as requested. The method for delivering these services is dependent on what services are needed. Modes of delivery may include: on-site services (training, inspections, risk assessments, ergonomic assessments); online live training via GoToMeetings; risk control and compliance program development (may or may not require site visits); as well as, telephone and email consultation.

A list of the services both provided since July 1, 2018, and those scheduled to be provided, are listed in the attached PERMA Member Directed Services report document. Several of the members have established an annual training schedule and have already scheduled services out to October of 2019.

Contractual Risk Transfer Consultation Services Contractual Risk Transfer Consultation services were introduced during the 2017-2018 year and were continued this year.

Transferring risk via contract is a vital component of our member cities’ risk management strategies. In an effort to ensure our members adequately limit their liability exposures, York staff will provide the following services for members on an as-needed basis:

Indemnification Language Review and Samples – York will review and revise indemnity

structure, positioning and terminology in vendor and member contracts, including updating obsolete or inconsistent language. Samples and templates will be made available to members.

Insurance Requirements Compliance – York will review and confirm appropriate insurance coverages, endorsements and limits are in place for specific projects and as general policy. Samples and templates will be made available to members.

Risk Transfer Consultation – York will address general questions regarding the implementation of risk transfer strategies in specific scenarios.

Certificates Compliance – Insurance certificates and endorsements received from vendors will be analyzed to determine if compliant with PERMA’s risk transfer guidelines.

To request these services, contact Terrie Norris at [email protected] or at 1-800-541-4591 ext. 19055. Please be sure to allow adequate lead time to provide you with a timely response.

Member Benefit Presentations PERMA members had and continue to have access to many risk control benefits, but may not be aware of them. We can provide an explanation of the risk control services and tools available to members either in person or via technology, such as a webinar or web meeting. The goal is to give PERMA members support in understanding, implementing, and utilizing the tools and resources available to them through their Excess Workers’ Compensation Pool (LAWCX), CSAC-EIA, and York Risk Control Services. Examples of currently available tools include:

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The Return To Work Program Template Wellness Program Tools The Job Analysis Library and Template CSAC-EIA Online Resources York Online Risk Control Resources

York Risk Control Services and Web-based Resources Access

A-Z Search Tool Training Resources

o Webinar o Publications Tailgate Talks Safety Communications

o Streaming Videos o Workshop Registration

Sample Programs & Forms o Sample Programs o Forms Associated with the

Program o Safety Signs – these are available

in English and Spanish Special Emphasis Programs

o Law Enforcement o Driver Operators

My Tools Rent A Safety Officer Program Virtual Safety Manager Program

Workshop Registration

Unlimited Risk Control Consultation via Email and Telephone Inquiry If you have a risk control question, simply email or call Terrie Norris. She will provide the answer you are looking for or find someone who can answer your question. She can be contacted at [email protected] or at 1-800-541-4591 ext. 19055.

2019-20 Risk Control Plan The current risk control service plan continues to be well received; therefore, we recommend continuing with a similar plan for the 2019-2020 program year. The plan includes specific services to address PERMA loss drivers while still providing “as requested” risk control services for individual members. This approach provides increased flexibility for members to address their risk control and risk management concerns. The 2019-2020 Risk Control Service Plan includes:


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Attached is the proposed 2019-20 Risk Control Plan. REFERENCE MATERIAL ATTACHED: Risk Control Services - July 1, 2018 through April 30, 2019………………………………..Page 1 2019-20 Risk Control Plan………………………………………………………………………Page 4

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PERMA Member Directed Services Report July 1, 2018 through April 30, 3019

Client Activity Project Status Adelanto, City of Heat Illness Prevention and Outdoor Hazards Training Completed Barstow, City of

Focused Member Meeting

Completed

Contractual Risk Transfer Consultation Completed Aerial & Fork Lifts Training Completed Risk Management Assessment Completed Inter-City Training Consultation In Progress Heat Illness Prevention and Outdoor Hazards Training Completed

Blythe, City of

Drug and Alcohol Reasonable Suspicion Consultation Completed Focused Member Meeting Completed

Coachella, City of Contractual Risk Transfer Consultation Completed Desert Hot Springs, City of

Respiratory Protection Program Development Completed Root Cause Accident Investigation Consultation Completed Root Cause Accident Investigation Training for Key City Employees

Completed

Root Cause Accident Investigation Training for Managers and Supervisors

Completed

Root Cause Accident Investigation Training for Employees

Scheduled

BBPP & Heat Illness Refresher w/Defensive Driving Training

Scheduled

Trailer Safety Scheduled Worker’s Compensation Loss Analysis Completed Worker’s Compensation Loss Analysis – Additional Analysis

In Progress

Liability Loss Analysis Completed Root Cause Accident Investigation Consultation Completed Personal Protective Equipment (PPE) Program Development

Closed at Member Request

PPE Program Training In Progress Haz Mat Spill Response - Awareness Level Training Completed Focused Member Meeting Completed

Hesperia, City of

Defensive Driving Training Completed Defensive Driving Training with Behind the Wheel Review

In Progress

Liability Loss Analysis Completed Liability Loss Analysis – Additional Analysis In Progress Focused Member Meeting Completed Industrial Ergonomics In Progress Heat Illness Prevention and Outdoor Hazards Training Completed Vehicle Backing Policy Development Awaiting Member

Response Fall Protection Training Completed

Agenda Item 7A - Page 1 of 6


Client Activity Project Status Jurupa Valley, City of

Focused Member Meeting Completed Confined Space Program Development Closed Evaluate Confined Spaces for Confined Space Classification

Closed

Interview Panel Participation for New HR Manager Closed PERMA and Risk Control Orientation for New HR Manager

Closed

La Mesa, City of

Traffic Control & Flagging Training Completed Bloodborne Pathogens Exposure Control Training Completed Asbestos Awareness Training Completed Propane and Other Compressed Gases Safety Training Closed at Member

Request Hand and Power Tools Training Closed at Member

Request Workplace Violence Training Completed Eye Safety Training In Progress Fall Protection Training In Progress Heat Illness Prevention Training Scheduled Towing/Trailer Safety Training In Progress Confined Space Entry – Phone Consultation Completed Infectious Disease Control Program Review Completed

March Joint Powers Authority

Contractual Risk Transfer Consultation Completed

Moreno Valley, City of

Forklift Training Completed

Cal-OSHA Consultation Completed Murrieta, City of

Bloodborne Pathogens Exposure Control Training Completed Bloodborne Pathogens Exposure Control Program Revisions

Completed

Ergonomic Assessment – Eight Separate Site Visits Completed Ergonomic Assessment In Progress Bloodborne Pathogens Exposure Control Program Development

In Progress

Ergonomic Assessment Scheduled Haz Mat Spill Response - Awareness Level Training Closed at Member

Request Heat Illness Prevention Program Development In Progress Heat Illness Prevention Training In Progress

Norco, City of

Focused Member Meeting Completed LOTO and Haz Com Training Completed Bloodborne Pathogens Exposure Control Program Development

Completed

Heat Illness and Occupational Noise Exposure Prevention Training

In Progress

Bloodborne Pathogens Exposure Control and Personal Protective Equipment Training

In Progress

Contractual Risk Transfer Consultation Completed First Aid, CPR, AED Training Closed



Client Activity Project Status Norco, City of

Defensive Driving and Trailer Safety Training To Be Scheduled for July 2019

Office Ergonomics and Office Safety Training To Be Scheduled for August 2019

Industrial Ergonomics Training To Be Scheduled for August 2019

Fire Safety and Fire Extinguisher Use Training To Be Scheduled for October 2019

PERMA Traffic Control and Flagger – Regional Training Scheduled Contractual Risk Transfer Consultation Completed

Perris, City of

Training Matrix Customization Completed Heat Illness Prevention Program Development In Progress Vehicle Backing Program Development Placeholder Focused Member Meeting Completed

San Jacinto, City of

Safe Lifting/ & Slips, Trips, Falls Training Completed Ergonomic Assessment Completed

Stanton, City of Focused Member Meeting To Be Scheduled Bloodborne Pathogens Exposure Control Training In Progress Ergonomic Evaluator Training Completed Traffic Control and Flagger Training In Progress

Sunline Transit Agency

Haz Mat Waste Storage Assessment To Be Scheduled Consulting In Progress Focused Member Meeting Completed

Victorville, City of

Workplace Violence Training Email Consultation Completed Forklift Training Closed at Member

Request Haz Mat Spill / HAZ WOPER Response - Training Completed


2019-20 RISK CONTROL SERVICES PLAN

The 2019-2020 Risk Control Service Plan includes:


Focused Member Services The Focused Member Services provide risk control services for members with an Ex Mod greater than 1.2 in either the Liability or Workers’ Compensation programs. The December 2018 financial reports that reported the 2019-2020 Ex Mod Factors for the Worker’s Compensation and Liability programs were used to select the members to be included in the 2019-2020 Focused Member Services, which include:

- Exploratory meetings held with the members in the focused member services group. The meetings will involve:

o Discussions of the member’s risk control concerns and challenges o Development of an action plan to address their concerns and loss experience

- Follow-up risk control services as identified with the member during and/or after the exploratory meeting

- Follow-up communications to ensure the corrective action plan is still on track

Liability >1.20 W/C >1.20 Desert Hot Springs Hesperia Jurupa Valley Norco San Jacinto

Desert Hot Springs Murrieta SunLine Transit

Regional Training Sessions

Regional workshops will address a variety of target audiences, however most of the workshops will be aimed at the needs of Public Works, Parks & Recreation, and Waste Water personnel. The workshops will include planned topics, based on the survey sent out to the PERMA members in February, 2019. When a topic of interest proposed for regional training falls outside of the regional survey’s list, the PERMA General Manager will be contact and his consent obtain prior to developing the topic into a regional training opportunity. When planned workshops involve the use of paid subject matter experts, the PERMA Safety and Training – Training Reimbursement budget, with the approval of the PERMA General Manager, will be used to pay the speaker fee. York will continue to manage the planning of the regional workshops. For those workshops involving a paid subject matter expert:


York will work on behalf of PERMA to secure speakers at reduced speakers’ fee. York will obtain approval from PERMA prior to confirming the training with the

speaker and the number of training sessions to be scheduled. Speakers will bill PERMA directly. The budget will be maintained by PERMA.

PERMA will continue its practice of reimbursing members who host approved regional workshops for the cost of any refreshments they provide at the workshops. For all regional workshops York will:

Identify the speaker Negotiate a low speaker fee – when a fee is charged Gain approval for paid speakers from PERMA’s General Manager Develop the training announcement Host the online registration Moderate the session Provide training documentation to the cities whose employees participate in the

training

Member Requested Risk Control Services Risk control services will be provided to individual members as requested. The risk control needs of the PERMA members, while often similar, do vary. To meet the needs of the PERMA members, York will continue to assist members at their request. The method for delivering these services is dependent on what services are needed. Modes of delivery may include: on-site services (training, inspections, risk assessments, ergonomic assessments); online live training via GoToMeetings; risk control and compliance program development (may or may not require site visits); as well as, telephone and email consultation. Examples of risk control services provided to PERMA members during prior program years include: risk control program development; risk management assessments, facilities, inspections, compliance program development, Cal-OSHA Citation Consultation, ergonomic evaluations, and on-site training.

Contractual Risk Transfer Consultation Services Contractual Risk Transfer Consultation services were introduced during the 2017-2018 year and will continue into the 2019-2020 program year. Transferring risk via contract is a vital component of our member cities’ risk management strategies. In an effort to ensure our members adequately limit their liability exposures, York staff will provide the following services for members on an as-requested basis: Indemnification Language Review and Samples – York will review and revise

indemnity structure, positioning and terminology in vendor and member contracts, including updating obsolete or inconsistent language. Samples and templates will be made available to members.

Insurance Requirements Compliance – York will review and confirm appropriate insurance coverages, endorsements and limits are in place for specific projects and as general policy. Samples and templates will be made available to members.

Risk Transfer Consultation – York will address general questions regarding the implementation of risk transfer strategies in specific scenarios.


Certificates Compliance – Insurance certificates and endorsements received from vendors will be analyzed to determine if compliant with PERMA’s risk transfer guidelines.

Member Benefit Presentations

We will continue to be available to present PERMA benefits to members, either in person or through the use of technology, such as a webinar or web meeting. The goal is to give PERMA members support in understanding, implementing, and utilizing the tools and resources available to them through PERMA and their Excess Workers’ Compensation Pool, LAWCX, and York Risk Control Services. Examples of currently available tools include:

The Return To Work Program Template Wellness Program Tools The Job Analysis Library and Template CSAC-EIA Online Resources York Online Risk Control Resources

York Risk Control Services and Web-based Resources Access

A-Z Search Tool Training Resources

o Webinar o Publications Tailgate Talks Safety Communications

o Streaming Videos o Workshop Registration

Sample Programs & Forms o Sample Programs o Forms Associated with the Program o Safety Signs – these are available in English and Spanish

Special Emphasis Programs o Law Enforcement o Driver Operators

My Tools Rent A Safety Officer Program Virtual Safety Manager Program

Workshop Registration

Unlimited Risk Control Consultation via Email and Telephone Inquiry





AGENDA ITEM 7B: Memorandum of Liability Coverage and Declarations


RECOMMENDATION:Approve the Memorandum of Liability Coverage and Declarations as presented for the 2019-20policy year.

FISCAL IMPLICATIONS:Not applicable for this report.

BACKGROUND & OVERVIEW:For each new policy year, the Liability coverage document is reviewed and approved by theBoard of Directors.

Attached is the proposed Memorandum of Liability Coverage (MOLC) for the 2019-20 policyyear with changes summarized below:

C Reference Material Page 2 of 45MOLC, Page 1 of 11, Section II - Definitions, Aircraft: added languageconfirming that drones are not excluded. No change in coverage

C Reference Material Page 4 of 45MOLC, Page 3 of 11, Section II - Definitions, Damages: added languagetaken from the Cal. Supreme Court’s case of AIU v. Superior Court definingtort damages, and added language confirming that plaintiff’s attorney feesare not covered unless attributable to a claim for covered compensatorydamages (such as a section 1983 civil rights claim). PERMA already doesthis in effect by excluding contract claims (Exclusion 3) and writs orinjunctive relief claims (Exclusion 23), but added language makes thecoverage clearer. No change in coverage.

C Reference Material Page 5 of 45MOLC, Page 4 of 11, Section II - Definitions, Occurrence: added languageto clarify that an “event” must occur during the coverage period, not justongoing damages. No change in coverage.

C Reference Material Page 7 of 45MOLC, Page 6 of 11, Section V - Exclusions, (3): added language to clarifythat failure to enter into a contract is included in the exclusion. This usuallycomes up with a disappointed bidder complaining that another entity’s bidprevailed. No change in coverage.

Attached are the proposed Memorandum of Liability and Declarations for the 2019-20 policyyear.

Following this meeting, the approved coverage document and declarations will be posted tothe PERMA website and available to the membership in electronic format.

REFERENCE MATERIALS ATTACHED:Memorandum of Liability Coverage for 2019-20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1Declarations of Liability Coverage Effective July 1, 2019 . . . . . . . . . . . . . . . . . . . . Page 14

Page -2-


MEMORANDUM OF LIABILITY COVERAGE

FOR THE PERIOD JULY 1, 2018 2019 TO JUNE 30, 2019 2020

EFFECTIVE: JULY 1, 2018 2019

Agenda Item 7B - Page 1 of 45

PUBLIC ENTITY RISK MANAGEMENT AUTHORITYMEMORANDUM OF LIABILITY COVERAGE

Program Year: 2018-2019 2019-2020

Effective July 1, 2018 2019

In consideration of the payment of the premium, the Public Entity Risk ManagementAuthority (the "Authority") agrees with the Covered Party as follows:

SECTION I – COVERAGES

The Authority will pay up to the Limit of Coverage those sums on behalf of the CoveredParty for the Ultimate Net Loss in excess of the Retained Limit that the Covered Partybecomes legally obligated to pay as Damages caused by an Occurrence during thecoverage period, except as otherwise excluded.

SECTION II – DEFINITIONS

Aircraft – means a vehicle designed for the transport of persons or property principally inthe air. Aircraft does not include Small Unmanned Aircraft as defined in 14 Code ofFederal Regulations (CFR) Part 107.3.

Covered Contract – means that part of any member's contract incidental to the primarypurpose of the contract which indemnifies the other contracting party against tort liabilityDamages not excluded herein.

Covered Party – means:

(a) The Authority;

(b) A member entity of the Authority, including any and all commissions,agencies, districts, authorities, or boards coming under the member entity'sdirection or control or for which the member entity's board members sit as thegoverning body;

(c) Any person or entity holding a certificate of coverage duly issued by theAuthority, as limited therein ("Additional Covered Party"). An AdditionalCovered Party is not covered for claims arising from the Additional CoveredParty's sole negligence or for claims by another Covered Party;

(d) Any person who is an official, employee or volunteer of a person or entitycovered by (a), (b) or (c), whether or not compensated, while acting in anofficial capacity for or on behalf of such person or entity, including while

Memorandum of Liability CoverageEffective: 07/01/18 07/01/19

Page 1 of 11Agenda Item 7B - Page 2 of 45

acting on an outside board at the direction of such person or entity, exceptan airport or hospital board, regardless of how such body is denominated;and

(e) With respect to any automobile owned or leased by a member or loaned toor hired for use by or on behalf of a member, any person using suchautomobile with the permission of the member will be covered under thisMemorandum of Coverage for such use; however, this coverage does notapply to:

(1) Any person or organization, or any agent or employee thereof,operating an automobile sales agency, rental agency, repair shop,service station, storage garage or public parking place, with respectto an Occurrence arising out of the operation thereof; or

(2) The owner, any lessee, or any agent or employee of such owner orlessee, other than the Covered Party of any automobile hired by orloaned to the Covered Party.

Dam – means any artificial barrier, together with appurtenant works, which does or mayimpound or divert water, and which either (a) is 25 feet or more in height from the naturalbed of the stream or watercourse at the downstream toe of the barrier, or from the lowestelevation of the outside limit of the barrier, if it is not across a stream, channel orwatercourse, to the maximum possible water storage elevation; or (b) has an impoundingcapacity of 50 acre-feet or more.

Any such barrier which is not in excess of 6 feet in height, regardless of storage capacity,or which has a storage capacity not in excess of 15 acre-feet, regardless of height, shallnot be considered a Dam.

No obstruction in a canal used to raise or lower water therein or divert water therefrom, nolevee, including but not limited to a levee on the bed of a natural lake the primary purposeof which levee is to control flood water, no railroad fill or structure, tank constructed of steelor concrete or of a combination thereof, no tank elevated above the ground, no water orwastewater treatment facility, and no barrier which is not across a stream channel,watercourse, or natural drainage area and which has the principal purpose of impoundingwater for agricultural use shall be considered a Dam. In addition, no obstruction in thechannel of a stream or watercourse which is 15 feet or less in height from the lowestelevation of the obstruction and which has the single purpose of spreading water within thebed of the stream or watercourse upstream from the construction for percolationunderground shall be considered a Dam.

Nor shall any impoundment constructed and utilized to hold treated water from a sewagetreatment plant be considered a Dam. Nor shall any wastewater treatment or storage pondexempted from state regulation and supervision by California Water Code section 6205.5be considered a Dam.



Damages – means compensation in money due recovered by a Third Party for loss ordetriment it has suffered through the act of a Covered Party, including attorneys feesattributable to a claim for compensatory damages covered hereunder, interest onjudgments, and costs. Damages do not include injunctive, equitable, or other non-monetary relief, or any monetary relief or expense in connection therewith. Damages donot include any money for the direct or indirect benefit to public improvements of a CoveredParty.

Defense Costs – means all fees and expense caused by and relating to the adjustment,investigation, defense or litigation of a claim for Damages to which this coverage applies,including attorneys fees and court costs. Defense Costs shall not include the officeexpense of the Authority or any Covered Party nor the salaries of employees or officials ofthe Authority or of any Covered Party nor expenses of a claims administrator engaged byany Covered Party. Defense Costs shall not include any fee or expense relating tocoverage issues or disputes between the Authority and any Covered Party.

Limit of Coverage – means the most the Authority will pay for Ultimate Net Loss arisingout of one Occurrence regardless of the number of coverage periods. The Limit ofCoverage is stated on the first applicable declaration page or certificate of coverage. However, if more than one member is involved in the same Occurrence, there will be onlyone Limit of Coverage to be apportioned among the members. That Limit of Coverage willbe the highest Limit of Coverage available to any of the members involved in theOccurrence. There will be only one Retained Limit, which will be the highest Retained Limitof any of the members involved in the Occurrence. The apportionment of the Limit ofCoverage and Retained Limit shall be made according to the members’ proportionateshares of liability as finally determined by the Authority.

The Limit of Coverage for an Additional Covered Party will be the lower of: (1) the Limitstated in the Declarations page for the Member Entity; (2) any limit stated in the AdditionalCovered Party certificate; or (3) the amount required to be provided by contract oragreement with the Member Entity. Coverage will not be broader than what the MemberEntity is required by the contract or agreement to provide.

Medical Malpractice – means the rendering of or failure to render any of the followingservices:

(a) Medical, surgical, dental, psychiatric, psychological, x-ray or nursing servicesor treatment or the furnishing of any food or beverages in connectiontherewith; or any services provided by a healthcare provider as defined inSection 6146(c)(2) or (3) of the California Business and Professions Code;

(b) Furnishing or dispensing of drugs or medical, dental or surgical supplies orappliances.



Nuclear Material – means source material, special Nuclear Material or byproduct material. Source material, special Nuclear Material and byproduct material have the meanings givento them by the Atomic Energy Act of 1954 or in any law amendatory thereto.

Occurrence – means an event, including continuous or repeated exposure to substantiallythe same generally harmful conditions, during the coverage period, causing Damagesregardless of the number of claimants or covered parties. Claims arising out of or inconnection with an earthquake or series of related earthquakes shall be deemed to ariseout of one Occurrence.

Pollutants – means any solid, liquid, gaseous or thermal irritant or contaminant, includingsmoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materialsto be recycled, reconditioned or reclaimed. The term Pollutants as used herein is notdefined to mean potable water or agricultural water or water furnished to commercial usersor water used for fire suppression.

Retained Limit – means the amount, identified in the applicable declaration or certificateof coverage, of Ultimate Net Loss which the Covered Party must incur or become liable forbefore the Authority is obligated to make any payment. For each Occurrence involving twoor more members, payment of only one Retained Limit shall apply (which shall be thehighest Retained Limit of the members involved in the occurrence); payment of suchRetained Limit shall be apportioned among the members according to each members’proportionate share of liability as finally determined by the Authority, but said proportionateshare of the Retained Limit for any particular member shall in no event exceed thatmember’s original Retained Limit.

Third Party – means any person making a claim against a Covered Party.

Ultimate Net Loss – means the total of all Defense Costs incurred by the Covered Partiesand all Damages for which the Covered Parties are liable either by adjudication or bycompromise with the written consent of the Authority, arising from an Occurrence to whichthis Memorandum applies. Ultimate Net Loss also includes Defense Costs incurred by theAuthority after the Authority assumes control of the negotiation, investigation, defense,appeal or settlement of any claim or proceeding.

SECTION III – DEFENSE AND SETTLEMENT

The Authority shall have no duty to assume the control of investigation or defense of anyclaim unless the Retained Limit is zero. However, the Authority shall have the right toassume the control of the negotiation, investigation, defense, appeal or settlement of anyclaim which the Authority determines, in its own discretion, to have a reasonable probabilityof resulting in an Ultimate Net Loss exceeding the Retained Limit. The Covered Party shallfully cooperate in any matters pertaining to such claim or proceeding.



If the Authority assumes control of the handling of a claim, the Covered Parties shall payat the direction of the Authority all Defense Costs incurred by the Authority and any sumnecessary for the settlement of a claim, or to satisfy liability imposed by law, up to theapplicable Retained Limit.

The decision to assume control of a claim shall be made by an executive committeeappointed by the Board of Directors. Such decision may be appealed to the Board ofDirectors. The results of such appeal shall be final and binding, and shall not be thesubject of any further appeal, arbitration or court action.

The duty to defend and indemnify a member's officials, employees, and volunteers islimited to the member's obligation to do so under the California Government Code.

This Memorandum of Coverage does not provide insurance, but instead provides forpooled risk sharing. As the Authority is not an insurer, it has no obligation to provide"Cumis" counsel as provided by Civil Code Section 2860.

No claim shall be settled for an amount in excess of the Retained Limit without the priorwritten consent of the Authority and the Authority shall not be required to contribute to anysettlement to which it has not consented.

SECTION IV – COVERAGE PERIOD AND TERRITORY

This Memorandum applies to Occurrences anywhere during the coverage period identifiedin the applicable declaration or certificate of coverage.

SECTION V – EXCLUSIONS

This Memorandum does not apply to:

(1) Claims arising out of ownership, operation, use, maintenance or entrustment of anyAircraft or airport.

(2) Claims at any time arising out of the manufacture of, mining of, use of, sale of,installation of, removal of, distribution of or exposure to radon, asbestos, asbestosproducts, asbestos fibers or asbestos dust, or:

(a) Any obligation of the Covered Party to indemnify any party because of suchclaims; or

(b) Any obligation to defend any suit or claims against the Covered Partybecause of such claims.



(3) Claims arising out of failure to perform, or breach of, a contractual obligation, otherthan a Covered Contract indemnity obligation; or claims arising out of failure toenter into a contract.

(4) Claims arising out of partial or complete structural failure of a Dam.

(5) Claims by:

(a) Any past or present employee against his or her employer or co-employee;

(b) A spouse, child, parent, brother or sister of that employee as a consequenceof (a) above; or

(c) Any person arising out of the application for or termination of employment;

This exclusion applies whether the employer may be liable as an employer or in anyother capacity.

(6) Claims by a Covered Party against its own past or present employee, official orvolunteer.

(7) Benefits payable under any employee benefit plan (whether the plan is voluntarilyestablished by the entity or mandated by statute).

(8) Obligations under any workers' compensation, unemployment compensation ordisability law or any similar law.

(9) Liability imposed under the Employee Retirement Income Security Act of 1974, andany law amendatory thereof.

(10) Bid Specifications/Cost Overruns.

(a) Claims arising out of estimates of probable cost or cost estimates beingexceeded or faulty preparation of bid specifications or plans including architecturalplans.

(b) Mechanic's lien claims, stop notice claims, change order claims, or similar claimsby contractors for the value of services or materials provided; this exclusion extendsto such claims however denominated, including claims of breach of oral or writtencontract, third-party beneficiary claims, quantum meruit claims, and/or open accountclaims.

(11) Claims arising out of the failure to supply or provide an adequate or specific supplyof gas, water, electricity or sewage capacity.



(12) Claims for punitive, exemplary or treble Damages or the imposition of any fine orpenalty.

(13) Claims for Damages caused by any of the following conduct of any Covered Party: (1) constituting a felony, (2) with intent to cause improper harm, (3) with willful andconscious disregard of the rights or safety of others, or (4) with malice. Thisexclusion does not apply to claims based solely on vicarious liability where theCovered Party did not authorize, ratify, participate in, or consent to such conduct.

(14) Claims arising out of or in connection with land use regulation and/or land useplanning. “Land use planning” and “land use regulation” include the approval ordisapproval of any land-use entitlement, including but not limited to general planamendments, zoning amendments, variances, permits, tract maps, developmentagreements, owner-participation agreements, or disposition-and developmentagreements; the approval or disapproval under any rent control ordinance, outdooradvertising ordinance, adult bookstore ordinance, or taxi ordinance; or the approvalor disapproval of the operation of a marijuana dispensary whether medical,recreational or otherwise, any ordinances governing that activity, and any and allenforcement efforts.

(15) Claims arising out of the principles of eminent domain, condemnation proceedingsor inverse condemnation (California Constitution, Article 1, Section 19, U.S.Constitution, 5th and 14th Amendments), whether liability accrues directly or indirectlyagainst the Covered Party, including attorney fees and costs. Provided, however,if the Authority in its sole discretion determines that the subject claim is for physicalproperty damage caused by the negligence of the Covered Party, the Authority mayprovide coverage in whole or in part. The decision of the Authority is final and notsubject to arbitration or judicial review, notwithstanding any other provision in thisMemorandum.

(16) Claims arising out of ownership, use, operation or maintenance of any hospital,health care or medical clinic facility; claims arising out of any actual or allegedMedical Malpractice except services performed by emergency medical technicians,paramedics or similar classes of personnel.

(17) Claims arising out of the hazardous properties of Nuclear Material.

(18) Claims arising out of the actual, alleged or threatened discharge, dispersal, releaseor escape of Pollutants, unless the discharge, dispersal, release or escape issudden and accidental and:

(a) The Covered Party discovered the Occurrence within seven days of itscommencement; and

(b) The Occurrence was reported in writing to the Authority within 21 days of itsdiscovery by the Covered Party; and



(c) The Covered Party expended reasonable effort to terminate the discharge,dispersal, release or escape of Pollutants as soon as conditions permitted.

This exclusion does not apply to active use of material to suppress a fire, or to weedabatement or tree spraying.

Nothing contained in this Memorandum shall operate to provide any coverage withrespect to:

(d) Any site or location principally used by the Covered Party, or by others on theCovered Party's behalf, for the handling, storage, disposal, dumping,processing, or treatment of waste material, other than wastewater treatmentfacilities and sewer systems.

(e) Any loss, cost or expense arising out of any governmental directions orrequests that the entity or others test for, monitor, clean up, remove, contain,treat, detoxify or neutralize Pollutants.

(f) Acid rain.

(g) Water pollution caused by oil or its derivatives.

(19) Claims arising out of disputes regarding taxes, fees, fines, liens, or assessments.

(20) Claims for refund, reimbursement or repayment of any monies or property to whicha Covered Party was not legally entitled.

(21) Claims for uninsured or underinsured motorist coverage.

(22) Claims for injury to or destruction of (a) property owned by a Covered Party, or (b)property rented or leased to the Covered Party where the Covered Party hasassumed liability for damage to or destruction of such property unless the CoveredParty would have been liable in the absence of such assumption of liability, or (c)aircraft or watercraft in the care, custody, or control of any Covered Party.

(23) Claims for injunctions, equitable relief, writs of mandate or any other form of reliefother than the payment of Damages.

SECTION VI – CONDITIONS

A. Covered Parties shall:

(1) Forward to the Authority all claims, demands, suits, notices, summons, orother process within 10 days of receipt or service;



(2) Notify the Authority of any Occurrence the Covered Party becomes aware ofthat is reasonably likely to result in a claim and/or litigation against theCovered Party and includes injury of the following types:

(i) Death;(ii) Paralysis, paraplegia, or quadriplegia;(iii) Loss of eye(s) or limb(s);(iv) Spinal cord or brain injury;(v) Dismemberment or amputation;(vi) Sensory organ or nerve injury or neurological deficit;(vii) Serious burns;(viii) Severe scarring;(ix) Sexual assault or battery including but not limited to rape, molestation,

or sexual abuse;(x) Substantial disability or disfigurement;(xi) Sensory organ or nerve injury or neurological deficit; or(xii) Any class action;

(3) Cooperate with the Authority and upon the Authority's request assist inmaking settlements, in the conduct of suits, and in enforcing any right ofcontribution or indemnity against any person or organization who may beliable to the Covered Party for Damages or expenses with respect to whichcoverage is afforded under this Memorandum;

(4) Attend hearings and trials and assist in securing evidence and obtaining theattendance of witnesses;

(5) Not, except at its own cost, voluntarily make any payment, assume anyobligation or incur any expense without the written consent of the Authority.

B. Bankruptcy. Bankruptcy or insolvency of the Covered Party shall not relieve theAuthority of any of its obligations hereunder.

C. Other Coverage. If insurance or other coverage with any insurer, joint powersauthority or other source is available to the Covered Party covering a loss alsocovered by this Memorandum (whether on primary, excess, or contingent basis), thecoverage under this Memorandum shall be in excess of, and shall not contributewith, such other insurance or coverage, provided that this clause does not apply withrespect to excess insurance purchased specifically to be in excess of thisMemorandum.

D. Actions. No action shall lie against the Authority with respect to the coverages andrelated provisions defined in this Memorandum unless, as a condition precedentthereto, there shall have been full compliance with all of the terms of thisMemorandum, nor until the amount of the Covered Party's obligations to pay shallhave been finally determined either by judgment against the Covered Party after



actual trial or by written agreement of the Covered Party, the claimant and theAuthority. Any person or organization or the representative thereof who hassecured such judgment or written agreement shall thereafter be entitled to recoveryunder this Memorandum to the extent of the coverage afforded by thisMemorandum. No person or entity shall have the right under this Memorandum tojoin the Authority as a party to any action against the Covered Party to determinethe Authority's liability, nor shall the Authority be impleaded by the Covered Partyor its legal representative.

E. Subrogation. The Authority shall be subrogated to the extent of any paymenthereunder to all the Covered Parties' rights of recovery thereof and the CoveredParties shall do nothing after loss to prejudice such rights and shall do everythingnecessary to secure such rights. Any amount so recovered shall be apportioned asfollows:

(1) The highest layer of coverage shall be reimbursed first and if there besufficient recoveries then the next highest layer until all recoveries aredepleted;

(2) The expenses of all such recovery proceedings shall be paid before anyreimbursements are made. If there is no recovery in the proceedingsconducted by the Authority, the Authority shall bear the expenses thereof.

F. Changes. Except by written endorsement issued by the Authority to form a part ofthis Memorandum, the terms of this Memorandum cannot be waived or changed,regardless of the act, omission, notice to, or knowledge by anyone.

G. Arbitration. Decisions by the Authority as to whether coverage exists for aparticular claim (or part of a claim) shall be made by the Board of Directors or bysuch employee or committee as the Board designates. A Covered Party mayappeal to the Board of Directors any such decision.

Any dispute concerning this Memorandum shall not be the subject of any courtaction, but shall instead be submitted to binding arbitration to determine whether theAuthority abused its discretion and acted arbitrarily or capriciously. The CoveredParty must exhaust the right to appeal to the Board of Directors, if applicable, beforerequesting arbitration of a dispute.

Arbitration shall be conducted pursuant to Title IX of the California Code of CivilProcedure (commencing with Section 1280), except as otherwise provided herein. Arbitration shall be conducted by a three-person panel. The Covered Party orParties shall select a total of one arbitrator; the Authority shall select one arbitrator;and the two arbitrators shall then select a third arbitrator upon mutual agreement. No arbitrator shall be employed or affiliated with the Authority or any Covered Party.



The procedures set forth in California Code of Civil Procedure Section 1283.05relating to depositions and discovery shall apply.

The arbitration panel shall have jurisdiction to determine whether or not coverageapplies. Under no circumstances shall the Authority be liable for consequentialdamages, “bad faith” damages, or any sums beyond the amounts due under SectionI - Coverages, plus interest at the same rate as the Authority earned on investmentsfor the time period involved.

Each party shall bear the cost of its selected arbitrator and shall bear one-half thecost of the third arbitrator. Each party shall bear its own costs and expenses ofarbitration, including attorneys fees.

The decision of the panel of arbitrators shall be final and binding, and shall not besubject to appeal.



ENDORSEMENT NO. 1

PUBLIC ENTITY RISK MANAGEMENT AUTHORITYPolicy Year 2018-2019 2019-2020

AIRPORT EXCLUSION ENDORSEMENT

The Memorandum of Liability Coverage does not apply to:

(1) Claims arising out of the ownership, operation, use, maintenance orentrustment of any Aircraft or airport.

However, this exclusion shall apply only to claims for Bodily Injury, PropertyDamage, or Employment Practices Liability, and this exclusion shall not applyto claims for Personal Injury or Public Officials Errors and Omissions, asthose terms are all defined in the “CSAC Excess Insurance Authority GeneralLiability I Program Memorandum of Coverage”.

This endorsement is part of the Memorandum of Liability Coverage and takes effect on theeffective date of the Memorandum unless another effective date is shown below. All otherterms and conditions remain unchanged.

Effective Date: Issued To: All Members

Issue Date: June 7, 2018 Authorized Representative,

_________________________________Scott EllerbrockGeneral Manager


36-951 Cook Street, Suite 101Palm Desert, California 92211

(760) 360-4966 tel(760) 360-3264 fax


DECLARATION OF LIABILITY COVERAGE


CERTIFICATE NO. 26

Member: CITY OF ADELANTO

Address: 11600 Air ExpresswayAdelanto, CA 92301

Coverage Period: July 1, 2018 2019 to June 30, 2019 2020

This will certify the Member has liability coverage as follows:

A. $1,000,000 (One Million Dollars), subject to the Member's self-insuredretention of $25,000, in accordance with the terms of the Memorandum ofLiability Coverage for the Public Entity Risk Management Authorityeffective July 1, 2018 2019.

B. $50,000,000 (Fifty Million Dollars), subject to PERMA's retained limit of$1,000,000 for Coverage A, in accordance with the terms of theMemorandum of Liability Coverage for the California State Association ofCounties Excess Insurance Authority (CSAC-EIA) effective July 1, 20182019 and its excess insurers.

Dated: Authorized Representative,

_____________________________________Scott EllerbrockGeneral Manager



(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 7

Member: CITY OF BANNING; CITY OF BANNING PUBLIC WORKSDEPARTMENT: ELECTRIC DIVISION, WATER DIVISION, WASTEWATER DIVISION; AND CITY OF BANNING MUNICIPALTRANSIT SYSTEM: FIXED ROUTE AND DIAL-A-RIDE

Address: 99 E. Ramsey StreetBanning, CA 92220









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 4

Member: CITY OF BARSTOW AND BARSTOW FIRE PROTECTIONDISTRICT

Address: 220 E. Mountain View StreetBarstow, CA 92311



A. $1,000,000 (One Million Dollars), subject to the Member's self-insuredretention of $125,000, in accordance with the terms of the Memorandumof Liability Coverage for the Public Entity Risk Management Authorityeffective July 1, 2018 2019.






(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 8

Member: CITY OF BLYTHE

Address: 235 N. BroadwayBlythe, CA 92225









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 44

Member: CITY OF CANYON LAKE

Address: 31516 Railroad Canyon RoadCanyon Lake, CA 92587



A. $1,000,000 (One Million Dollars), subject to the Member's self-insuredretention of $0, in accordance with the terms of the Memorandum ofLiability Coverage for the Public Entity Risk Management Authorityeffective July 1, 2018 2019.






(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 9

Member: CITY OF CATHEDRAL CITY; CITY URBAN REVITALIZATIONCORPORATION; AND CATHEDRAL CITY DOWNTOWNFOUNDATION

Address: 68-700 Avenida Lalo GuerreroCathedral City, CA 92234









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 10

Member: CITY OF COACHELLA; COACHELLA FIRE PROTECTIONDISTRICT; COACHELLA SANITARY DISTRICT; COACHELLAINDUSTRIAL DEVELOPMENT AUTHORITY; AND COACHELLAWATER AUTHORITY

Address: 1515 Sixth StreetCoachella, CA 92236









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 11

Member: CITY OF DESERT HOT SPRINGS

Address: 65-950 Pierson BoulevardDesert Hot Springs, CA 92240









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 42

Member: CITY OF EASTVALE

Address: 12363 Limonite Ave., Suite 910Eastvale, CA 91752









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 41

Member: CITY OF HESPERIA

Address: 9700 Seventh AvenueHesperia, CA 92345









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 17

Member: CITY OF HOLTVILLE

Address: 121 West Fifth StreetHoltville, CA 92250









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 43

Member: IMPERIAL COUNTY TRANSPORTATION COMMISSION (ICTC)

Address: 1503 N. Imperial Ave., Suite 104El Centro, CA 92243









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 39

Member: IMPERIAL VALLEY EMERGENCY COMMUNICATIONSAUTHORITY (IVECA)

Address: 2514 La Brucherie RoadImperial, CA 92251









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 45

Member: CITY OF JURUPA VALLEY

Address: 8930 Limonite AvenueJurupa Valley, CA 92509









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 37

Member: CITY OF LA MESA

Address: 8130 Allison AvenueLa Mesa, CA 91941









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 28

Member: MARCH JOINT POWERS AUTHORITY; MARCH INLAND PORTAIRPORT AUTHORITY; AND MARCH JPA UTILITIESAUTHORITY

Address: 14205 Meridian Parkway, Suite 140Riverside, CA 92518









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 29

Member: MOJAVE DESERT AND MOUNTAIN INTEGRATED WASTEMANAGEMENT AUTHORITY

Address: 14343 Civic DriveVictorville, CA 92392









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 20

Member: CITY OF MORENO VALLEY; MORENO VALLEY COMMUNITYSERVICES DISTRICT; AND MORENO VALLEY HOUSINGAUTHORITY

Address: 14177 Frederick StreetMoreno Valley, CA 92552









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 40

Member: MOUNT SAN JACINTO WINTER PARK AUTHORITYd/b/a PALM SPRINGS AERIAL TRAMWAY

Address: 1 Tramway RoadPalm Springs, CA 92262









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 24

Member: CITY OF MURRIETA

Address: 1 Town Square24601 Jefferson AvenueMurrieta, CA 92562









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 19

Member: CITY OF NORCO

Address: 2870 Clark AvenueNorco, CA 92860









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 32

Member: PALO VERDE VALLEY TRANSIT AUTHORITY

Address: 415 N. Main StreetBlythe, CA 92225









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 2

Member: CITY OF PERRIS

Address: 101 North "D" StreetPerris, CA 92570









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 14

Member: CITY OF RANCHO MIRAGE; RANCHO MIRAGE JOINT POWERSFINANCING AUTHORITY; RANCHO MIRAGE HOUSINGAUTHORITY; RANCHO MIRAGE COMMUNITY SERVICESDISTRICT; AND RANCHO MIRAGE PUBLIC LIBRARYFOUNDATION

Address: 69-825 Highway 111Rancho Mirage, CA 92270









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 15

Member: CITY OF SAN JACINTO

Address: 595 South San Jacinto AvenueSan Jacinto, CA 92581









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 46

Member: SOUTHERN CALIFORNIA INTERGOVERNMENTALTRAINING AND DEVELOPMENT CENTERd/b/a GOVERNMENT TRAINING AGENCYd/b/a REGIONAL TRAINING CENTER

Address: 6155 Cornerstone Court E, Suite 130San Diego, CA 92121









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 21

Member: CITY OF STANTON AND STANTON COMMUNITY FOUNDATION

Address: 7800 Katella AvenueStanton, CA 90680




B. $50,000,000 (Fifty Million Dollars), subject to PERMA's retained limit of$1,000,000 for Coverage A, in accordance with the terms of theMemorandum of Liability Coverage for the California State Association ofCounties Excess Insurance Authority (CSAC-EIA) effective July 1, 20182019 and its excess insurers. Excess coverage does not apply to theStanton Community Foundation.





(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 18

Member: SUNLINE TRANSIT AGENCY AND SUNLINE SERVICES GROUP

Address: 32505 Harry Oliver TrailThousand Palms, CA 92276









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 30

Member: VICTOR VALLEY ECONOMIC DEVELOPMENT AUTHORITY










(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 27

Member: VICTOR VALLEY TRANSIT AUTHORITY

Address: 17150 Smoketree StreetHesperia, CA 92345









(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 31

Member: CITY OF VICTORVILLE










(760) 360-4966 tel(760) 360-3264 fax




CERTIFICATE NO. 16

Member: CITY OF WESTMORLAND

Address: 355 S. Center StreetWestmorland, CA 92281











AGENDA ITEM 7C: Memorandum of Workers’ Compensation Coverage andDeclarations


RECOMMENDATION:Approve the Memorandum of Workers’ Compensation Coverage and Declarations aspresented for the 2019-20 policy year.


BACKGROUND & OVERVIEW:For each new policy year, the Workers’ Compensation coverage document is reviewed andapproved by the Board of Directors.

Attached is the proposed Memorandum of Workers’ Compensation Coverage (MOWCC) forthe 2019-20 policy year with changes summarized below:

C Reference Material Page 11 of 39 MOWCC, Page 4, Part One: Workers’ Compensation Coverage, Section D -Exclusions: added exclusionary language regarding injuries sustained by peaceofficers when off-duty and out of state unless resolution is adopted, samelanguage as excess insurers (LAWCX and CSAC-EIA) to avoid gaps incoverage.

Under the Workers’ Compensation program, the coverage is provided as follows: PERMAprovides coverage up to $500,000 above a Member’s retention, LAWCX provides coverageabove $500,000 up to $5,000,000, and then CSAC-EIA provides coverage above $5,000,000.

Both LAWCX and CSAC-EIA are revising their respective 2019-20 coverage documents torequire a member pass a resolution as provided by California Labor Code 3600.2 acceptingliability for injuries that occur to off-duty peace officers while outside the state of California

when engaging in the apprehension of law violators or suspected law violators, or in protectionor preservation of life or property, or preservation of the peace.

California Labor Code 3600 provides workers’ compensation coverage for injuries sustainedby peace officers while off duty within the State. Assembly Bill 1749 was introduced duringthe 2018 legislative session to address concerns of some legislators that workers’compensation claims filed by California peace officers who were injured during the October2017 Las Vegas Route 91 Harvest Festival were being denied. In September 2018, GovernorJerry Brown signed the bill into law with an effective date of January 1, 2019.

To avoid any possible gaps in coverage, the proposed PERMA Memorandum of Workers’Compensation Coverage has been revised to require resolutions be passed as well.

The explanation provided by the excess insurers of requiring a resolution be passed prior toany occurrence is to ensure consistency amongst the membership and to provide some ideaof future liability (similar to requiring resolutions to extend workers’ compensation tovolunteers). The passing of a resolution should also prevent any future discrimination claims, for example,if no resolution is passed accepting liability for such injuries and the governing board, at itsdiscretion, accepts one peace officer’s claim but not another peace officer’s claim could resultin a discrimination claim from the peace officer whose claim was denied.

Attached is the May 14, 2019 email sent to the participating members with peace officersadvising of the recommended change to the coverage document, which included a sampleresolution and CSAC-EIA Notice of Endorsement.

Alternatively, the Board could take no action and allow members to accept workers’compensation claims after the fact for injuries incurred by peace officers while off-duty and outof state, but any workers’ compensation costs above PERMA’s retention of $500,000 wouldfall back on the member because these claims would be excluded by excess since noresolution was in place.

Attached are the proposed Memorandum of Workers’ Compensation Coverage andDeclarations for the 2019-20 policy year.

Following this meeting, the approved coverage documents and declarations will be posted tothe PERMA website and available to the membership in electronic format.

REFERENCE MATERIALS ATTACHED:05/14/19 Email Notification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1 Sample Resolution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3 CSAC-EIA Notice of Endorsement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5Memorandum of Workers’ Compensation Coverage for 2019-20 . . . . . . . . . . . . . . . Page 7Declarations of Workers’ Compensation Coverage Effective July 1, 2019 . . . . . . . Page 21

Page -2-

1

Scott Ellerbrock

From: Scott EllerbrockSent: Tuesday, May 14, 2019 3:23 PMTo: Doug Schulze; Suzanne Cook; Darcy Wigington; Mallory Sutterfield-Crecelius; Christa

Elms; Tami Scott; Pamela Meuse; Geoffrey Buchheim; Rida Freeman; Sheryl Sherman; Cynthia Perez; Deona Knight; Justina Cruz; City of Westmorland

Subject: Sample Resolution to Provide Workers’ Compensation Coverage for Off-Duty Peace Officers Injured Out-of-State

Attachments: Sample Resolution re Off Duty Police Officers while Out of State.docx; CSAC-EIA Notice of Endorsement.pdf

Workers’ Compensation Participants with Police Officers – At the PERMA Board of Directors meeting on June 6, 2019, the Board will consider approval of the 2019/20 Memorandum of Workers’ Compensation Coverage. In order to implement a change to Labor Code 3600.2 pursuant to approval of Assembly Bill 1749 and to be consistent with LAWCX and CSAC EIA (excess insurers of PERMA) coverage changes, staff will recommend that the Board amend the PERMA Memorandum of Workers’ Compensation Coverage to provide workers’ compensation benefits if (1) the peace officer at the time of sustaining the out-of-state injury or illness was engaging in the apprehension or attempted apprehension of law violators or suspected law violators, the protection or preservation of life or property, or the preservation of the peace, and (2) prior to the occurrence, the governing board or City Council of the covered member has adopted a resolution, as provided for in Section 3600.2, subdivision (b)(4), accepting liability for such bodily injury and occupational illness under the workers’ compensation law. If a PERMA member would like to extend workers’ compensation benefits to out-of-state injuries or illnesses incurred by its peace officers, then the member City Council should adopt a resolution authorizing the coverage. Attached is a sample resolution that can be used for adoption by a member's City Council. If a resolution is adopted, please provide me with a copy of the fully executed resolution so we can update our records and our excess insurers’ recordsaccordingly. Also attached is the notice from CSAC-EIA on the coverage document changes which provides a good explanation of thechanges to the Labor Code 3600.2. If your agency desires to provide workers’ compensation coverage to off-duty peace officers while out-of-state, below is sample wording for a staff report:

Annually, PERMA reviews and approves a Memorandum of Workers’ Compensation Coverage for each policy year. Prior to approving the Memorandum of Workers’ Compensation Coverage, staff contacts PERMA’s excess insurers, Local AgencyWorkers’ Compensation Excess (LAWCX) and California State Association of Counties Excess Insurance Authority (CSAC‐EIA) to determine if any changes will be made to their respective coverage memorandums.

Both LAWCX and CSAC‐EIA have noted that the 2019/20 coverage documents will be changed pertaining to injuriessustained by off‐duty, out‐of‐state peace officers. The change is in response to Assembly Bill 1749 that addressed concernsof some legislators that claims filed by California peace officers injured in the October 2017 Las Vegas Route 91 HarvestFestival shooting were being denied because the incident occurred out‐of‐state. The bill was signed into law by Governor Brown in September 2018. Labor Code Section 3600.2(b) was amended to allow a city, county, or other local governmentagency employer of peace officers to decide whether to accept a workers’ compensation claim filed by a peace officerwho, while out‐of‐state, is injured while engaging in the apprehension or attempted apprehension of law violators orsuspected law violators, or protection or preservation of life or property, or the preservation of the peace.

Agenda Item 7C - Page 1 of 39

2

The Labor Code as amended now states that an employer “at its discretion or in accordance with written policies adoptedby resolution of the employer’s governing body” may accept workers’ compensation liability and provide benefits for aninjury or illness sustained by a peace officer “by reason of engaging in the apprehension or attempted apprehension oflaw violators or suspected law violators, or protection or preservation of life or property, or the preservation of the peace, outside the state of California, but who was not at the time acting under the immediate direction of his or her employer… if the employer determines that providing compensation serves the public purposes of the employer.”

In order to implement this change and be consistent with the both LAWCX and CSAC‐EIA, the PERMA staff will recommend that the Board amend the PERMA Memorandum of Workers’ Compensation Coverage to provide workers’ compensationbenefits if (1) the peace officer at the time of sustaining the out‐of‐state injury or illness was engaging in the apprehension or attempted apprehension of law violators or suspected law violators, the protection or preservation of life or property,or the preservation of the peace, and (2) prior to the occurrence, the governing board or City Council of the coveredmember has adopted a resolution, as provided for in Section 3600.2, subdivision (b)(4), accepting liability for such bodilyinjury and occupational illness under the workers’ compensation law.

If a PERMA member would like to extend workers’ compensation benefits to out‐of‐state injuries or illnesses incurred by its peace officers, then the member governing board or City Council should adopt a resolution authorizing the coverage.Attached is a sample resolution that can be used for adoption by a member.

The sample resolution applies broadly to any out-of-state injury or illness sustained by a peace officer “by reason of engagingin the apprehension or attempted apprehension of law violators or suspected law violators, or protection or preservation of life or property, or the preservation of the peace” (which is the language used in the statute). If a member wishes, it maymodify the resolution to limit the out-of-state circumstances in which it applies (e.g., limit it to a response to an active shooter situation, act of domestic terrorism, or catastrophic event such as an earthquake, flood or mudslide).

In the meantime, should you have any questions or concerns, please do not hesitate to contact me.

Scott Ellerbrock

General Manager

PERMA

(760) 360-4966, ext. 304


RESOLUTION NUMBER ______

RESOLUTION OF THE CITY OF _______ AUTHORIZING WORKERS’ COMPENSATION COVERAGE FOR OFF-DUTY PEACE OFFICERS INJURED OUT OF STATE

WHEREAS, Labor Code Section 3600.2 was amended by Assembly Bill 1749 in 2018, to allow a peace officer employer to accept liability for workers’ compensation liability and provide benefits for an injury or illness sustained by a peace officer by reason of engaging in the apprehension or attempted apprehension of law violators or suspected law violators, or protection or preservation of life or property, or the preservation of the peace, outside the state of California, but who was not at the time acting under the immediate direction of his or her employer, if the employer determines that providing compensation serves the public purposes of the employer;

WHEREAS, the City’s workers’ compensation insurance providers, Public Entity Risk Management Authority (PERMA) and Local Agency Workers’ Compensation Excess Joint Powers Authority (LAWCX), have amended [or plan to amend] their Memorandum of Coverage to provide coverage for peace officers who sustain a bodily injury or occupational illness while out of state under the circumstances described in Section 3600.2, but only if, prior to the occurrence, the governing board of the covered member has adopted a resolution under Section 3600.2, subsection (b)(4), accepting liability for such injury and or illness under the California workers’ compensation law; and, WHEREAS, the City desires to accept workers’ compensation liability for peace officers who sustain an injury or illness while out of state in accordance with Labor Code Section 3600.2 and the PERMA and LAWCX Memoranda of Coverage; NOW THEREFORE, BE IT RESOLVED by the City Council of the City of ______ as follows: 1. The City authorizes and agrees to accept liability for workers’ compensation benefits under California

Labor Code, Division 4 for an injury or illness sustained by a peace officer by reason of engaging in the apprehension or attempted apprehension of law violators or suspected law violators, or protection or preservation of life or property, or the preservation of the peace, outside the state of California, but who was not at the time acting under the immediate direction of the City. This resolution is adopted pursuant to Labor Code Section 3600.2, subsection (b)(4).

2. The City finds and determines that providing workers’ compensation benefits in the circumstances described in paragraph 1 serves the public purposes of the City.

3. This coverage shall not apply if, at the time of the occurrence, the peace officer was suspended from peace officer duty or otherwise not in good standing as a peace officer.

4. This coverage applies only to a peace officer as defined at Government Code Section 50920.

5. This coverage applies to bodily injury by accident or bodily injury by disease covered by the terms and conditions of the Memoranda of Coverage that occurs on or after July 1, 2019, and during the coverage period.

PASSED AND ADOPTED by the City Council of the City of _____ at its regular meeting on ____________, by the following vote: AYES: _________ NOES: _________ ABSTAIN: _________ ABSENT: _________ ______________________________ Mayor


Resolution No. ____________________ Page 2

ATTEST: City Clerk


March 13, 2019 To: Members, Excess Workers’ Compensation Program From: Michael Pott, Chief Claims Officer Subject: Excess Workers’ Compensation (EWC) Memorandum of Coverage (MOC)

Endorsement U-6, Off-Duty Peace Officer (AB 1749) Endorsement California Labor Code Section 3600.2(a) provides workers’ compensation coverage for injuries sustained by peace officers while off duty within the State. Assembly Bill 1749 was introduced during the 2018 legislative session to address the concerns of some legislators that workers’ compensation claims filed by California peace officers who were injured during the October 2017 Las Vegas Route 91 Harvest Festival were being denied. In September 2018, Governor Jerry Brown signed the bill into law with an effective date of January 1, 2019. The new addition to Labor Code Section 3600.2(b) provides as follows:

(b) Nothing in this section shall be deemed to: (4) Preclude an employer, at its discretion or in accordance with written policies adopted by resolution of the employer’s governing body, from accepting liability for compensation under this division for an injury sustained by a peace officer, as defined in Section 50920 of the Government Code, by reason of engaging in the apprehension or attempted apprehension of law violators or suspected law violators, or protection or preservation of life or property, or the preservation of the peace, outside the state of California, but who was not at the time acting under the immediate direction of his or her employer, including any claims for injuries sustained by peace officers during the October 1, 2017, mass shooting in Las Vegas, Nevada, if the employer determines that providing compensation serves the public purposes of the employer. For claims filed pursuant to this paragraph by peace officers for injuries sustained during the October 1, 2017, mass shooting in Las Vegas, Nevada, the date of injury for purposes of subdivision (a) of Section 5405 shall be deemed the operative date of the act adding this paragraph. Acceptance of liability under this subdivision shall not affect the determination of whether or not the peace officer acted within the scope of his or her employment for any other purpose.

This amendment allows an entity to decide whether to accept a workers’ compensation claim filed by a peace officer who, while out-of-state, is injured while engaging in the apprehension or attempted apprehension of law violators or suspected law violators, or protection or preservation of life or property, or the preservation of the peace. An employer entity can choose to accept compensability and provide benefits at its discretion or in accordance with a resolution, as long as the employer decides that providing compensation serves the public purposes of the employer.


Endorsement U-6 At the recommendation of the EIA’s Underwriting and Executive Committees, the Board of Directors adopted Endorsement U-6 at their meeting on March 1, 2019. Attached for your review is a copy of the endorsement. The Endorsement will go into effect on July 1, 2019 for the 2019/20 policy year. The endorsement states that the EWC Memorandum of Coverage (MOC) does not provide coverage for injuries that occur to off-duty peace officers while outside the state of California when the officer is not acting under the immediate direction of his or her employer unless:

1. The peace officer was engaging in the apprehension or attempted apprehension of law violators or suspected law violators, or in protection or preservation of life or property, or the preservation of the peace; and

2. Prior to the occurrence, the Governing Board of the member has adopted a resolution, as provided for in California Labor Code Section 3600.2, subdivision (b)(4), accepting liability for such injury.

In other words, the endorsement provides coverage for such claims only if the member has adopted a resolution pursuant to Labor Code Section 3600.2. The resolution can indicate the entity has chosen to accept some or all such claims, limit the types of claims that are accepted, or even state that the entity will determine at its discretion whether to accept or deny a claim. Ultimately, a resolution must be in place before the injury occurs if the member is to be provided excess coverage by the EIA for the claim. If no resolution is adopted, then there is no coverage. If the member does not adopt a resolution prior to an injury occurring, the entity may still choose to accept the claim and provide workers’ compensation benefits, but the member will not have coverage at the excess level. Regarding the resolution, the member does not need to provide the resolution to the EIA upon adoption. Instead, if a claim arises that the member chooses to accept pursuant to its resolution, then when the member accepts the claim it must provide the EIA with a copy of the resolution. The endorsement adopted on March 1, 2019, will be in effect for any claims that arise after the effective date of July 1, 2019. To avoid any possible gaps in coverage and because this is a matter of discretion for policymakers, we strongly encourage members to elevate this matter to their governing boards before July 1, 2019, to determine whether or not they are going to adopt a resolution pursuant to Labor Code Section 3600.2. As for claims arising out of the Las Vegas shooting, or a similar event occurring between January 1, 2019 and June 30, 2019, if a member decides to accept the claim, then the EIA will provide coverage under the appropriate EWC MOC unless some other MOC exclusion or condition precludes coverage. Attachments: Endorsement U-6 Off-Duty Peace Officer (AB 1749) cc: Alliant Insurance Services



MEMORANDUM OF WORKERS’ COMPENSATION AND

EMPLOYERS’ LIABILITY COVERAGE

FOR THE PERIOD JULY 1, 2018 2019 TO JUNE 30, 2019 2020

EFFECTIVE: JULY 1, 2018 2019


Memorandum of Workers’ Compensation Coverage

Effective: 07/01/18 07/01/19 Page 1


Workers' Compensation and Employer's Liability MEMORANDUM OF COVERAGE

Program Year: 2018 - 2019 2019 - 2020


INTRODUCTION In return for the payment of premium and subject to all terms and conditions of this agreement, Public Entity Risk Management Authority (PERMA) agrees with the Member named in the Declarations Page as follows:

GENERAL SECTION A. THE AGREEMENT This agreement includes the Declarations and all Endorsements and Schedules attached to it and any relevant section of the JPA Agreement or Bylaws. It is a coverage agreement between PERMA and the Member. No condition, provision, agreement or understanding not stated in this coverage agreement (including the JPA Agreement and Bylaws) will affect any rights, duties or privileges in connection with this coverage agreement. The terms of this agreement may not be changed or waived except by endorsement issued by PERMA to be part of the agreement. The Member is responsible for telling PERMA at once when the information contained in this agreement is no longer accurate for the Member's operations. The coverage provided by PERMA is pooled self-insurance, and under no circumstances is it to be construed as any form of insurance. B. WHO IS COVERED The Member named in the Declarations Page is covered for liability to its employees, subject to the provisions of this agreement. The member represents that it is a duly qualified self insured entity under the Workers’ Compensation Law of the State of California and will continue to maintain such qualification during the term that this Memorandum will be in effect. If the Member should fail to maintain such qualification, the amounts payable under this Memorandum will not exceed the amounts which would have been payable had such qualification been maintained in full force and effect.



Effective: 07/01/18 07/01/19 Page 2

C. WORKERS' COMPENSATION LAW Workers' Compensation law means the Workers' Compensation Laws of the State of California (which include injury by both accident and disease). It includes any amendments to that law which are in effect during the coverage period. It does not include the provisions of any law that provides non-occupational disability benefits. D. LOCATIONS This agreement covers all of the Member's workplaces in California and in other states if listed unless the Member has other insurance, is self-insured or is covered under another Joint Powers Authority for such workplaces. E. WHO IS ELIGIBLE FOR BENEFITS The Member's employees (or, in the event of their death, their dependents) are eligible for benefits under this agreement, except that employees who are excluded under the Workers' Compensation law are not eligible for benefits under this agreement unless they have been included on the Declarations Page or by endorsement.

PART ONE: WORKERS' COMPENSATION COVERAGE

A. HOW THIS COVERAGE APPLIES This Workers' Compensation Coverage applies to bodily injury by accident or bodily injury by disease, including resulting death, subject to the following conditions: 1. Bodily injury by accident must occur during the coverage period.

2. Bodily injury by disease must be caused or aggravated by the conditions of employment. The employee's exposure to those conditions causing or aggravating such bodily injury by disease must occur during the coverage period.

B. PERMA WILL PAY PERMA will pay promptly when due to those eligible under this agreement the benefits required of the Member by the Workers' Compensation law, including related claims expenses, in excess of the Member Retained Limit specified in Item 6 of the Schedule and subject to PERMA's Limit of Liability specified in Item 7 of the Schedule. Claims expenses of the Member mean its litigation costs, interest as required by law on awards or judgments, reasonable expenses incurred at PERMA's request (but not loss of earnings), premiums for bonds to release attachments and for appeal bonds in bond amounts up to twice the amount payable under this coverage, litigation costs taxed



Effective: 07/01/18 07/01/19 Page 3

against the Member, and a Member's special claim investigation or legal expenses which can be directly allocated to a specific claim, including medical bill review. Claim expenses exclude: salaries and travel expenses of employees of the Member, annual retainers, overhead and any fees paid to the Member's third-party administrator for claims administration services. C. RIGHT TO ASSUME CONTROL OF DEFENSE PERMA has no duty to investigate, handle, settle or defend any claims, suits or proceedings against the Member. PERMA has the discretionary right, and shall be given the opportunity by the Member, to assume control of the defense, investigation, or settlement of any claim, suit or proceeding which appears to PERMA to involve a reasonable likelihood of resulting in a covered loss exceeding the Member's Retained Limit or to associate in the defense of such a claim. In either situation, the Member shall cooperate in all aspects of defense, investigation, or settlement, including payment of sums up to the Member's Retained Limit. D. EXCLUSIONS This Memorandum shall not apply to: 1. Punitive or Exemplary Damages, fines or penalties assessed against or imposed upon any Member; or any payments in excess of the benefits regularly required by the Workers’ Compensation Law because of serious or willful misconduct of the Member, or because the Member failed to comply with any health or safety law or regulation. 2. Liability assumed by the Member under any contractual agreement, but this Exclusion does not apply to a warranty that work performed by or on behalf of the Member will be done in a workmanlike manner. 3. Defense or indemnification of any civil claim or civil lawsuit in any court brought by an employee against his/her employer. 4. Liability under the Merchant Marine Act of 1920, known as the Jones Act, 46 U.S. Code, Section 688; the U.S. Longshoremen and Harborworker’s Act; the Outer Continental Shelf Act; the Defense Base Act; the Death on the High Seas Act; the Migrant and Seasonal Agricultural Worker Protection Act, or the Federal Employees Liability Act, to the extent such benefits exceed the benefits that would have been paid to such injured employee under the Workers’ Compensation Law of California. 5. Liability to any volunteer of the Member, unless the Member has assumed liability pursuant to California Labor Code sections 3363.5, et seq., by resolution before the date of the injury.



Effective: 07/01/18 07/01/19 Page 4

6. Any loss excluded by the provisions or exclusions described in the excess policy in effect at the time of the occurrence. 7. The Member’s obligation to pay salary in lieu of temporary disability benefits as required by Labor code section 4850, except to the extent that the Member or the Authority would be obligated to pay temporary disability benefits if Labor Code section 4850 did not apply. 8. Bodily injury or occupational disease sustained by a peace officer, as defined in Section 50290 of the California Government Code, when he or she was off-duty, not acting under the immediate direction of his or her employer, and outside the state of California. However, this exclusion shall not apply to bodily injury or occupation disease sustained by a peace officer under such circumstances if:

a. the peace officer at the time of sustaining the injury or illness was engaging in the apprehension or attempted apprehension of law violators or suspected law violators, the protection or preservation of life or property, or the preservation of the peace; and

b. prior to the occurrence, the governing board of the Covered Member has adopted a resolution, as provided for in California Labor Code Section 3600.2, subdivision (b)(4), accepting liability for such bodily injury and occupational illness under the Workers’ Compensation Act.

E. OTHER INSURANCE PERMA will not pay more than its share of benefits and costs covered by this agreement and other insurance, pooled self-insurance, reinsurance, indemnity, or reimbursement agreement applicable to the loss. Subject to any limits of liability that apply, all shares will be equal until the loss is paid. If any insurance or self-insurance is exhausted, the shares of all remaining insurance and self-insurance will be equal until the loss is paid. F. LIMIT OF LIABILITY PERMA's liability to pay for damages is limited. PERMA's Limit of Liability is shown in Item 7 of the Schedule. It is the most PERMA will pay for all amounts covered by this coverage because of bodily injury to one or more employees in any one accident or occurrence, or series of accidents or occurrences, arising out of any one event. PERMA will not pay any claims for damages after it has paid the limit of its liability under this coverage as explained above. Any amounts paid by PERMA over the Limit of Liability that are not reimbursed by an excess carrier shall be reimbursed by the Member.



Effective: 07/01/18 07/01/19 Page 5

The Limit of Liability is subject to the Member's Retained Limit. For example, if the Limit of Liability is $500,000 and the Member's Retained Limit is $200,000, PERMA would pay not more than $300,000 in excess of the Member's Retained Limit. G. PAYMENTS THE MEMBER MUST MAKE The Member is responsible for any payments of benefits required under the Workers' Compensation law within the Retained Limit and those payments in excess of the benefits regularly provided by the Workers' Compensation law, including, but not limited to, those required because:

1. Of the Member's serious and willful misconduct;

2. The Member knowingly employed the employee in violation of law;

3. The Member's failure to comply with a health or safety law or regulation;

4. The Member's discharge, coercion or discrimination against any employee in violation of the law; or

5. Of injury to an employee under the minimum age specified in the Workers' Compensation law and illegally employed at the time of injury.

Any such payments are the sole responsibility of the Member and will not be counted in determining satisfaction of the Retained Limit.

H. RECOVERY FROM OTHERS PERMA may enforce the Member's rights, and the rights of persons entitled to the benefits of this coverage, to recover PERMA's payments from anyone liable for the injury. The Member will do everything necessary to protect those rights for PERMA and to help PERMA enforce them, and will take no action to prejudice the rights of PERMA to seek such recoveries. I. STATUTORY PROVISIONS These statements apply where they are required by law:

1. As between an injured worker and PERMA, PERMA has notice of injury when the Member has notice.

2. PERMA is directly and primarily liable to any person entitled to the benefits payable by this coverage, subject to the provisions, conditions and limitations of this agreement.

3. Jurisdiction over the Member is jurisdiction over PERMA for purposes of the Workers' Compensation law. PERMA is bound by decisions against



Effective: 07/01/18 07/01/19 Page 6

the Member under that law, subject to the provisions of this agreement that are not in conflict with that law.

4. Terms of this coverage that conflict with the Workers' Compensation law are changed by this statement to the extent necessary to conform to that law.

5. The Member's employee has a first lien upon any amount which becomes owing to the Member by PERMA on account of this agreement and in the case of the Member's legal incapacity or inability to receive the money and pay it to the claimant, PERMA will pay it directly to the claimant.

Nothing in these paragraphs relieves the Member of its duties under this agreement.

PART TWO: EMPLOYER'S LIABILITY COVERAGE A. HOW THIS COVERAGE APPLIES This Employer's Liability Coverage applies to bodily injury by accident or bodily injury by disease, including resulting death, subject to the following conditions:

1. The bodily injury must arise out of and in the course of the injured employee's employment by the Member.

2. The employment must be necessary or incidental to the Member's work in the State of California.

3. Bodily injury by accident must occur during the coverage period.

4. Bodily injury by disease must be caused or aggravated by the conditions of employment. The employee's last day of exposure to the conditions causing or aggravating such bodily injury by disease must occur during the coverage period.

5. If the Member is sued, the suit and any related legal actions for damages for bodily injury by accident or by disease must be brought under the laws of the State of California.

B. PERMA WILL PAY

PERMA will pay, up to the Limit of Liability specified in Item 7 of the Schedule, all sums over the amount stated as the Member's Retained Limit in Item 6 of the Schedule that the Member legally must pay as damages because of bodily injury to its employees, provided the bodily injury is covered by this Employer's Liability Coverage; such sums also include claim expenses, including a Member's litigation costs, interest as required by law on awards or judgments, reasonable expenses incurred at PERMA's request (but



Effective: 07/01/18 07/01/19 Page 7

not loss of earnings), premiums for bonds to release attachments and for appeal bonds in bond amounts up to twice the amount payable under this coverage, litigation costs taxed against the Member, and a Member's special claim investigation or legal expenses which can be directly allocated to a specific claim, including medical bill review. Claim expenses exclude: salaries and travel expenses of employees of the Member, annual retainers, overhead and any fees paid to the Member's third-party administrator for claims administration services.

The damages PERMA will pay, where recovery is permitted by law, include damages:

1. For which the Member is liable to a third party by reason of a claim or suit against it by that third party to recover the damages claimed against such third party as a result of injury to the Member's employee;

2. For care and loss of services; and

3. For consequential bodily injury to a spouse, child, parent, brother or sister of the injured employee;

provided that these damages are the direct consequence of bodily injury that arises out of and in the course of the injured employee's employment by the Members, and

4. Because of bodily injury to the Member's employee that arises out of and in the course of employment claimed against the Member in a capacity other than as employer.

C. EXCLUSIONS This agreement does not cover:

1. Liability assumed under a contract. This exclusion does not apply to a warranty that the Member's work will be done in a workmanlike manner.

2. Punitive or exemplary damages. 3. Bodily injury to an employee while employed in violation of law with the

Member's actual knowledge or the actual knowledge of any of the Member's executive officers.

4. Any obligation imposed by a Workers' Compensation, occupational

disease, unemployment compensation or disability benefits law, or any similar law, including any fines, penalties, or payments in excess of benefits regularly required by the Workers’ Compensation Law because of serious or willful misconduct of the Member, or because the Member failed to comply with any health or safety law or regulation.



Effective: 07/01/18 07/01/19 Page 8

5. Bodily injury intentionally caused or aggravated by, or at the direction of, the Member.

6. Damages arising out of the discharge of, coercion, criticism, demotion,

evaluation, reassignment, discipline, defamation, harassment, humiliation, discrimination against, or termination of any employee, or any personnel practices, policies, acts or omissions.

7. Any non-employee claims, including claims from job applicants. 8. Liability under the Merchant Marine Act of 1920, known as the Jones Act,

46 U.S. Code, Section 688; the U.S. Longshoremen and Harborworker’s Act; the Outer Continental Shelf Act; the Defense Base Act; the Death on the High Seas Act; the Migrant and Seasonal Agricultural Worker Protection Act, or the Federal Employees Liability Act.

9. Any liability covered by the Employment Risk Management Authority

(ERMA). D. RIGHT TO ASSUME CONTROL OF DEFENSE PERMA has no duty to investigate, handle, settle or defend any claims, suits or proceedings against the Member. PERMA has the discretionary right, and shall be given the opportunity by the Member, to assume control of the defense, investigation, or settlement of any claim, suit or proceeding which appears likely to involve indemnity by PERMA or to associate in the defense of such claim. In either situation, the Member shall cooperate in all aspects of defense, investigation, or settlement, including payment of sums up to the Member's Retained Limit. E. OTHER INSURANCE PERMA will not pay more than its share of damages and costs covered by this agreement and any other insurance, pooled self-insurance, reinsurance, indemnity, or reimbursement agreement applicable to the loss. Subject to any limits of liability that apply, all shares will be equal until the loss is paid. If any insurance or self-insurance is exhausted, the shares of all remaining insurance and self-insurance will be equal until the loss is paid. F. LIMIT OF LIABILITY PERMA's liability to pay for damages is limited. PERMA's Limit of Liability is shown in Item 7 of the Schedule. It is the most PERMA will pay for all amounts covered by this coverage because of bodily injury to one or more employees in any one accident or occurrence, or series of accidents or occurrences, arising out of any one event.



Effective: 07/01/18 07/01/19 Page 9

PERMA will not pay any claims for damages after it has paid the limit of its liability under this coverage as explained above. Any amounts paid by PERMA over the Limit of Liability that are not reimbursed by an excess carrier shall be reimbursed by the Member. The Limit of Liability is subject to the Member's Retained Limit. For example, if the Limit of Liability is $500,000 and the Member's Retained Limit is $200,000, PERMA would pay not more than $300,000 in excess of the Member's Retained Limit. G. RECOVERY FROM OTHERS PERMA may enforce the Member's rights to recover PERMA's payment from anyone liable for injury covered by this coverage. The Member Party will do everything necessary to protect those rights for PERMA and to help PERMA enforce them, and will take no action to prejudice the rights of PERMA to seek such recoveries. H. ACTIONS AGAINST PERMA There will be no right of action against PERMA under this coverage unless:

1. The Member has complied with all the terms of this agreement; and 2. The amount the Member owes has been determined with PERMA's

consent or by actual trial and final judgment. This coverage does not give anyone the right to add PERMA as a defendant in an action against the Member to determine the Member's liability.

PART THREE: COVERAGE OUTSIDE OF CALIFORNIA

This coverage is identical to Part One: Workers' Compensation Coverage of this agreement. It applies to the Member's employees who are hired in California and are eligible for benefits under this agreement while they are working anywhere outside California. This coverage only applies to employees who work on a temporary and transitory basis in another state, who are regularly employed in California, and whose work in the other state is incidental to their employment in California. For any workers’ compensation benefits awarded under the law of any state or jurisdiction other than California, PERMA will indemnify the Member only to the extent that those benefits do not exceed the benefits which would have been paid to such injured employee under the Workers’ Compensation Law of the State of California.



Effective: 07/01/18 07/01/19 Page 10

PART FOUR: MEMBER'S DUTIES IF INJURY OCCURS

The Member or the Member's representative must tell PERMA at once if injury occurs that may be covered by this agreement. The Member's other duties are as follows:

1. Provide for immediate medical and other services required by the Workers' Compensation law.

2. Give PERMA or its representative the names and addresses of the injured

persons and of witnesses, and other information PERMA may need. 3. Promptly give PERMA all notices, demands and legal papers related to

the injury, claim, proceeding or suit. 4. Cooperate with PERMA and assist it, as PERMA may request, in the

investigation, settlement or defense of any claim, proceeding or suit. 5. Do nothing after an injury occurs that would interfere with PERMA's right

to recover from others. 6. Do not voluntarily make payments, assume obligations or incur expenses

within PERMA's layer of coverage, except at the Member's own cost. These are conditions precedent to the Member receiving coverage under this agreement.

PART FIVE: PREMIUM A. DEPOSIT PREMIUM All premium for this agreement will be determined by PERMA. Remuneration is part of the premium basis. This premium basis includes payroll and all other remuneration paid or payable during the coverage period for the services of:

1. All the Member's employees eligible for benefits under this agreement while engaged in work covered by this agreement; and

2. All other persons engaged in work that could make PERMA liable under

Part One (Workers' Compensation Coverage) of this agreement. If the Member does not have the payroll records for these persons, the contract price for their services and materials may be used as the premium basis. This paragraph will not apply if the Member gives PERMA proof that the employers of these persons lawfully secured their Workers' Compensation obligations.



Effective: 07/01/18 07/01/19 Page 11

B. PREMIUM PAYMENTS The Member will pay all premium when due. C. FINAL PREMIUM The deposit premium shown on the Declarations Page and on the Schedules and Endorsements, if any, is an estimate. The final premium will be determined after this agreement ends by using the actual, not the estimated, premium basis and actual losses of the pool. If the final premium is more than the deposit premium the Member paid to PERMA, the Member must pay PERMA the balance. If it is less, PERMA will refund the balance to the Member. D. RECORDS The Member will keep records of information needed to compute premium. The Member will provide PERMA with copies of those records when requested. E. AUDIT The Member will let PERMA examine and audit all its records that relate to this agreement. These records include ledgers, journals, registers, vouchers, contracts, tax reports, payroll and disbursement records and programs for storing and retrieving data. PERMA may conduct the audits during regular business hours during the coverage period and within three years after the coverage period ends. Information developed by audit may be used to determine final premium. F. RATE CHANGES This agreement is issued by PERMA and accepted by the Member with the agreement that the Member will accept any increase in premium or in the rates of premium which may be promulgated under any rating plan approved by the Board of Directors, and that the effective date of any such increase shall be the effective date thereof fixed in accordance with the provisions of any such rating plan approved by the Board of Directors. Also, the rates used to determine the premium are subject to increase during the term of the agreement if an increase in rates applicable to the agreements in force is approved by the Board of Directors, and the effective date of any such increase shall be the date fixed by the Board of Directors.



Effective: 07/01/18 07/01/19 Page 12

PART SIX: CONDITIONS A. INSPECTION PERMA has the right, but is not obligated, to inspect the Member's workplaces at any reasonable time. PERMA's inspections will relate to the workplaces and the premiums to be charged. PERMA may give the Member reports on the conditions PERMA finds. PERMA may also recommend changes. While they may help to reduce losses, PERMA does not undertake to perform the duty of any person to provide for the health and safety of the Member's employees or the public. PERMA does not warrant that the Member's workplaces are safe or healthful or that they comply with laws, regulations, codes or standards. B. LONG-TERM POLICY If this policy is written for a period of longer than one year, all the provisions of this agreement shall apply separately to each consecutive twelve-month period, or if the first or last period is less than twelve months, in the same manner as if a separate agreement had been written for each consecutive period. Until the coverage terminates, the Member's deposit premium will be transferred to each consecutive coverage period to act as a deposit in the same manner as if a separate agreement had been written. C. TRANSFER OF MEMBER'S RIGHTS AND DUTIES The Member's rights and/or duties under this agreement may not be transferred without PERMA's written consent. D. PERMA'S NOTICE TO MEMBER Mailing documents that relate to this agreement to the Member at the mailing address shown in the Declarations Page will be sufficient to prove notice to the Member of that document. E. BANKRUPTCY OR INSOLVENCY Bankruptcy or insolvency of the Member will not relieve PERMA of its duties or liabilities under this Memorandum. Payments will be made as if the Member had not become bankrupt or insolvent, but not for sums below the Retained Limit, nor in excess of the Limit of Liability. F. CANCELLATION PERMA may cancel this Memorandum in accordance with the procedures set forth in the Bylaws of the Group. The Member may cancel this Memorandum only by withdrawal from the Group or this program under the terms set forth in the Bylaws.



Effective: 07/01/18 07/01/19 Page 13

Notice of cancellation or withdrawal will be governed by the provisions of the Bylaws. Cancellation of withdrawal shall not relieve the Member of its obligations under the Agreement, Bylaws or Operating Plan, including the obligations to make premium contributions and to cooperate in the defense of claims covered under this agreement. G. ARBITRATION Decisions by PERMA as to whether coverage exists for a particular claim (or part of a claim) shall be made by the Board of Directors or by such employee or committee as the Board designates. A Member may appeal to the Board of Directors any such decision. Any dispute concerning this Memorandum shall not be the subject of any court action, but shall instead be submitted to binding arbitration to determine whether PERMA abused its discretion and acted arbitrarily or capriciously. The Member must exhaust the right to appeal to the Board of Directors, if applicable, before requesting arbitration of a dispute. Arbitration shall be conducted pursuant to Title IX of the California Code of Civil Procedure (commencing with Section 1280), except as otherwise provided herein. Arbitration shall be conducted by a three-person panel. The Member or Parties shall select a total of one arbitrator; PERMA shall select one arbitrator; and the two arbitrators shall then select a third arbitrator upon mutual agreement. No arbitrator shall be employed or affiliated with PERMA or any Member. The procedures set forth in California Code of Civil Procedure Section 1283.05 relating to depositions and discovery shall apply. The arbitration panel shall have jurisdiction to determine whether or not coverage applies. Under no circumstances shall the Authority be liable for consequential damages, “bad faith” damages, or any sums beyond the amounts due under Part One: Workers’ Compensation, Part Two: Employer’s Liability Coverage, and Part Three: Coverage Outside of California, plus interest at the same rate as the Authority earned on investments for the time period involved. Each party shall bear the cost of its selected arbitrator and shall bear one-half the cost of the third arbitrator. Each party shall bear its own costs and expenses of arbitration, including attorney fees. The decision of the panel of arbitrators shall be final and binding, and shall not be subject to appeal.



(760) 360-4966 tel(760) 360-3264 fax


DECLARATION OF WORKERS' COMPENSATION COVERAGE


1. Member: CITY OF ADELANTO

2. Mailing Address: 11600 Air Express WayAdelanto, CA 92301

3. Dates of Coverage: July 1, 2018 2019 through June 30, 2019 2020

4. Cancellation Notice: Six (6) months written notice. Termination at end of coverage yearonly.

5a. Workers' Compensation Coverage: Part One of the policy applies to the Member'sobligations under the Workers' Compensation Law of the States listed here: California

5b. Employer's Liability Coverage: Part Two of the policy applies to the Member'sobligations in each State listed in Item 5a.

5c. Other State Coverage: Part Three of the policy applies to the Member's obligations inall other states except those listed here: None

6. Member's Retained Limit for each accident or each employee for disease: $250,000

7. PERMA's Limit of Liability for each accident oreach employee for disease: $500,000

8. Excess Insurers' Limit of Liability:Workers' Compensation: Statutory Employer's Liability: $5,000,000

Endorsements forming part of the Policy at time of issuance: None

This information page shall not be binding on PERMA unless Countersigned by an authorizedrepresentative of PERMA:

__________________________________Date Scott Ellerbrock, General Manager



(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF BANNING

2. Mailing Address: 99 E. Ramsey StreetBanning, CA 92220-0998














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF BARSTOW

2. Mailing Address: 220 E. Mountain View StreetBarstow, CA 92311














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF BLYTHE

2. Mailing Address: 235 N. BroadwayBlythe, CA 92225














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF CATHEDRAL CITY; CITY URBAN REVITALIZATIONCORPORATION; CATHEDRAL CITY DOWNTOWNFOUNDATION

2. Mailing Address: 68-700 Avenida Lalo GuerreroCathedral City, CA 92234-7031














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF COACHELLA

2. Mailing Address: 1515 Sixth StreetCoachella, CA 92236














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF DESERT HOT SPRINGS

2. Mailing Address: 65-950 Pierson BoulevardDesert Hot Springs, CA 92240














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF HESPERIA

2. Mailing Address: 9700 Seventh AvenueHesperia, CA 92345














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF HOLTVILLE

2. Mailing Address: 121 West Fifth StreetHoltville, CA 92250














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF LA MESA

2. Mailing Address: 8130 Allison AvenueLa Mesa, CA 91941














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF MURRIETA

2. Mailing Address: 24601 Jefferson AvenueMurrieta, CA 92562














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF NORCO

2. Mailing Address: 2870 Clark AvenueNorco, CA 92860














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF PERRIS

2. Mailing Address: 101 N. "D" StreetPerris, CA 92570














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF RANCHO MIRAGE

2. Mailing Address: 69-825 Highway 111Rancho Mirage, CA 92270














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF SAN JACINTO

2. Mailing Address: 595 South San Jacinto AvenueSan Jacinto, CA 92581














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF STANTON

2. Mailing Address: 7800 Katella AvenueStanton, CA 90680














(760) 360-4966 tel(760) 360-3264 fax




1. Member: SUNLINE TRANSIT AGENCY

2. Mailing Address: 32505 Harry Oliver TrailThousand Palms, CA 92276














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF VICTORVILLE

2. Mailing Address: 14343 Civic DriveVictorville, CA 92393-5001














(760) 360-4966 tel(760) 360-3264 fax




1. Member: CITY OF WESTMORLAND

2. Mailing Address: 355 S. Center StreetWestmorland, CA 92281
















AGENDA ITEM 7D: Alliant Property Insurance Program (APIP)


RECOMMENDATION:Presentation by Seth Cole, Senior Vice President, with Alliant Insurance Services on the AlliantProperty Insurance Program (APIP) renewal.


BACKGROUND & OVERVIEW:The Alliant Property Insurance Program (APIP) is the umbrella name which encompasses the property program known as the Public Entity Property Insurance Program (PEPIP). The APIPprogram is the largest single property placement in the world consisting of nearly 8,700 publicentity members in over 45 states and more than $350 billion in Total Insurable Values (TIV).

The 2019-20 property rates were budgeted 18% higher than the 2018-19 property rates, andthe auto physical damage rates were budgeted 10% higher than the 2018-19 auto physicaldamage rates.

Staff expects the renewal quote prior to the meeting, but it will be after the agenda isdistributed, so hopefully the actual renewal premiums can be distributed at the meeting.

Seth Cole of Alliant Insurance Services will be in attendance to discuss the placement of thecoverage for the 2019-20 policy year.

REFERENCE MATERIALS ATTACHED:Property Market Sea Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1Time Element Coverage Under APIP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 2

Property Market Sea Change The commercial property market is undergoing a “sea change” currently with carriers increasing prices or completely withdrawing from the market following three consecutive years of net underwriting loss. The wildfires of California, as well as the hurricanes, floods, and hail storms in the Southern and Midwest regions have caused carriers to pull back from offering the rock-bottom pricing that has been generally available over the past five years. To put things into perspective, 2018 was the fourth-costliest year since 1980 in terms of insured losses. This was due to an accumulation of severe and costly events in the second half of the year such as hurricanes Michael, Florence and the wildfires in California. The overall economic impact was $160 billion, of which $80 billion was insured. This was significantly higher, and almost double the 30-year average of $41 billion. This comes on the heels of the costliest year on record, 2017, which accounted for nearly $230 billion of economic loss with $140 billion being insured. Although policyholder surplus is at a record high, weather extremes, wildfires, catastrophic losses and investment earnings remain areas of concern for insurers. Looking forward, there still remains uncertainty in the property market, and as a result, we are seeing a widespread pricing correction. With the property market seeing a widespread pricing correction, carriers and reinsurers are renewing at 10-20% higher than expiring rates for clean accounts, while some loss-affected or hard-to-place accounts are set for rate hikes of 100% or more. To summarize, capacity in the property market is continuing to shrink and the market is not able to sustain the continued underwriting losses for property coverage. Overall, the severity of catastrophic losses, and the frequency of non-cat losses are trending upwards which has resulted in uncertainty in the property insurance marketplace.

Agenda Item 7D - Page 1 of 2

SPECIAL NOTICE TO APIP CLIENTS – 2019.05.16Are You Covered: Business Interruption, Rental Value & Tax Revenue Interruption

It’s important for APIP members to understand and review their exposures to loss beyond replacement orrepair costs caused by direct physical loss or damage to covered property. This includes loss of earnings,rental value, and/or tax revenue incurred while the property is being repaired or replaced (the period ofrestoration), and for up to 180 days after completion if required to restore the insured’s business to pre-lossconditions (the extended period of indemnity).

Business Interruption (BI) coverage provides financial protection for the loss of revenue resulting directlyfrom the physical damage of an insured property. In addition to the more traditional BI exposures, cities,counties, special districts and other public agencies may have enterprise funds and operational activities thatgenerate revenue. These can include park & recreation activities, water/wastewater, utilities, andcommercial/habitational rents. Public entities may also benefit from a unique APIP coverage for TaxInterruption.

The following are defined types of coverage available in the APIP policy form:

Business Interruption (BI) covers loss of gross earnings less expenses that do not continue during theperiod of restoration due to a covered physical loss at the insured’s premises. Coverage for power generationplants is excluded, unless otherwise specified.

Rental Income (RI) covers lost rental income, the fair rental value of occupied property, or paymentobligations under revenue bonds or certificates of participation where one needs proof of coverage. (Note,although traditional “Loss of Rent” is part of this coverage; Public Entities may use this coverage feature forRevenue Bonds/Certificates of Participation when required by bond underwriters and lenders).

Tuition Income (TI) for universities, hospitals or other institutions of learning covers the amount of tuitionincome and related fees which are prevented from being earned or received along with other income derivedfrom routine and special services, research grants and income under research contracts all dependent oncontinued operations.

Contingent Business Interruption (CBI) covers losses resulting from direct physical loss to property nototherwise excluded at direct supplier or customer locations that prevents the supply of goods and/or servicesto your entity or that prevents customer acceptance of goods and/or services from your entity. This includesBusiness Interruption, Rental Income and Extra Expense but not Tax Interruption. It is “contingent” becausethe damage causing loss is not to an owned location.

Tax Revenue Interruption (TI) is also a “contingent” coverage for your agency’s revenue that is dependenton businesses/operations that generate sales taxes, transient occupancy taxes (TOT), and/or property taxes.If your entity depends heavily on tax revenue from a major business or businesses, consider whether youwould like to cover this business continuity exposure by scheduling the tax revenue associated with thoseproperties on your Statement of Values with an appropriate limit. Separate limitations apply to each categoryof these coverages

These time element coverages should be considered to determine the extent of the exposure to your agency.Please contact your broker to review and discussion of the potential losses beyond repair/replacementcosts that can incur from direct physical damage to covered property.

Agenda Item 7D - Page 2 of 2




AGENDA ITEM 7E: Workers’ Compensation Service Agreements:CorVel Enterprise Comp, AdminSure, and York Risk ServicesGroup


RECOMMENDATION:Approve the renewal of service agreements with CorVel Enterprise Comp, AdminSure, andYork Risk Services Group for workers' compensation claims administration.

FISCAL IMPLICATIONS:

Expiring Proposed IncreaseContract Fee Contract Fee from

TPA 2018-19 2019-20 Expiring %

CorVel $126,455 $126,455 $0 0.0%AdminSure $460,200 $474,012 $13,812 3.0%York $20,901 **$21,528 $627 3.0%

**The proposed 2019-20 York fee does not reflect the monthly fee of $120.50 per open file forthe tail claims (prior to joining PERMA) of the Hesperia Fire Protection District and City ofHesperia. The annual fee is estimated to be $8,675 for these tail claims and is charged directlyto the City deposit account.

Fee increases for the remaining two years of the agreement renewals:

TPA 2020-21 2021-22CorVel 3.0% 0.0%AdminSure 3.0% 3.0%York 3.0% 3.0%

BACKGROUND & OVERVIEW:The term for the three service agreements for workers’ compensation claims administrationexpires June 30, 2019.

PERMA allows its members to select their Third-Party Administrator (TPA) of choice forworkers’ compensation claims administration. The TPA must be licensed by the State toadminister self-insured programs.

The following is a list of workers’ compensation program participants by selected TPA.

CorVel AdminSure York

Adelanto Barstow Hesperia

Banning Cathedral City

Blythe Coachella

La Mesa Desert Hot Springs

Perris Holtville

San Jacinto Murrieta

Stanton Norco

Rancho Mirage

SunLine Transit Agency

Victorville

Westmorland

The claims administration fees are allocated to the members based on past claim volume andincluded in the workers’ compensation deposit premium.

The only substantive changes of the proposed agreement/amendments relate to pricing.

REFERENCE MATERIALS ATTACHED:CorVel Enterprise Comp - Amendment 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1AdminSure - Service Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5York Risk Services Group - Second Amendment . . . . . . . . . . . . . . . . . . . . . . . . . . Page 14

Page -2-

This document contains confidential and proprietary information of the Parties and may not be disclosed or duplicated without the prior written consent of the Parties. Public Entity Risk Management Authority (PERMA) Amendment 10 (Renewal and Pricing) to the TPA Services Agreement 05-24-19

1

AMENDMENT NO. 10

This Amendment (“Amendment”) shall be entered into as of the 24th day of May, 2019 by and between CorVel Enterprise Comp, Inc. (“CorVel”) and Public Entity Risk Management Authority (“PERMA”), (“Customer”).

WHEREAS, CorVel and Customer entered into Services Agreement with an Effective Date of July 1, 2013 as amended (the “TPA Services Agreement”) pursuant to which CorVel agreed to provide Customer certain third party administration services and bundled managed care services.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree to:

Amend Section 8A of the Agreement whereby the Agreement shall be renewed for an additional three (3) year Renewal Term effective July 1, 2019 through June 30, 2022. Thereafter the Agreement shall be automatically renewed for additional one (1) year renewal term unless either party gives its intent to terminate no less than one hundred and eighty (180) days prior to the end of this current Renewal Term.

Remove and replace Section 1 (“Fees”) of the Agreement with the attached Exhibit A to this Amendment effective July 1, 2019.

Amend Exhibit A to the Agreement adding the description of Services for Case Management (Patient Management) as attached hereunder as Exhibit B to the Amendment

All other terms and conditions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, CorVel and Customer have caused this Amendment 8 to be executed by the persons authorized to act in their respective names.

PUBLIC ENTITY RISK MANAGEMENT AAUTHORITY

CORVEL HEALTHCARE CORPORATION

By: ________________________________ By: ________________________________ Print Name: ________________________

Print Name: Richard Schweppe

Title: ______________________________

Title: Treasurer

Date: ______________________________

Date: ______________________________

EXHIBIT A

Agenda Item 7E - Page 1 of 15

1. During the Renewal Term the following fees shall be in effect: Workers' Compensation Claims Administration

Description Pricing Life of Contract Flat Annual Fee

Up to 150 new claims annually $126,455.11Per claim Fee after maximum number of claims:

Medical-Only or Indemnity $986.00 per claimEmployer's Liability $986.00 per claim

Allocated Expense Fees Medical Bill Review Services Percentage of Total Savings + Complex FS Percentage of Savings

Description Pricing Fee Schedule and Usual & Customary ¹ 12% of total savingsProfessional Review:

Nurse Review ¹ 12% of total savingsComplex Review ¹ 12% of total savings

PPO Network ¹ 12% of total savingsEnhanced Bill Review ¹ 12% of total savingsImplant Review ¹ 12% of total savingsFee Negotiations ¹ 12% of total savingsDuplicate Bill Processing IncludedPharmacy & CareIQ Bills $8.63 per billState EDI IncludedScanning/OCR IncludedInitial 1099 Provider Notification Letter Included¹ Does not apply in Texas for Non-HCN Medical Bills; $30.00 flat fee per bill applied for Non-HCN Medical Bills Minimum transaction fee of $8.63 per bill and this is only applicable if fee does not meet minimum transaction fee. There is a maximum bill review fee of $15,000.00

Patient Management

Description Pricing Telephonic Case Management ¹˒² $102.60 per hourField Case Management ¹˒² $113.39 per hourVocational Rehabilitation $170.00 per hourSpecialty Services (Catastrophic, Life Care Plan, Medicare Conditional Payments, Medicare Set Asides)

$130.00 per hour

Utilization Review $134.99 per review + Peer Review FeesPeer Review / Physician Advisor $259.50 per hour¹ Statutory rates supersede if applicable. ² Fee applies to all States with the exception of premium states (CA, HI, AK, and NY). Each invoice for Case Management Services shall have an additional professional service fee of $39.00 billed to Customer.

Pharmacy Solutions


Description Pricing California Retail Pharmacies

Brand AWP -0% + $7.25 dispensing feeGeneric AWP -0% + $7.25 dispensing fee

California Mail Order Brand AWP -0% + $7.25 dispensing feeGeneric AWP -0% + $7.25 dispensing fee

The above pricing per claim is based on handling of all claims that occur and are reported during the agreement period. If life of contract pricing is selected, claims will be handled until closed or until the end of the agreement period, whichever comes first. If life of claim pricing is selected, claims will be handled until closed. Rates on claims that occur outside of the United States are subject to alternative pricing to be discussed prior to start of the contract. Pricing is valid for first year of the contract. “At the end of the first year, all fees outlined on the claims and managed care pricing sheet will be subject to an automatic increase of three percent (3.0%). At the end of the second year, no increase will be implemented”. Any service not identified in this proposal will be provided at a later time.

EXHIBIT B Case Management Services

Terms and Conditions

1. DESCRIPTION OF SERVICES

(a) Case management services are provided to manage a claimant’s case in order to identify the most appropriate rehabilitative treatment and/or most cost-effective health care alternatives (“Case Management Services”). Case managers may confer with the adjuster, attending physician, other medical providers, employer(s), attorney(s), the patient and the patient’s family.

(b) In certain states if requested by Customer, Case Management Services may include vocational rehabilitation services.

2. DELIVERY OF SERVICES

(a) CorVel shall provide Case Management Services to Customer upon receipt by CorVel of specific requests from Customer and as mutually agreed through the special handling instructions.

(b) Telephonic Case Management: Telephonic case management (“TCM”) includes a four-point contact with claimant, employer, claims professional and provider. CorVel case managers (“CMs”) do the following: (i) facilitate communication among all appropriate parties regarding the diagnosis, prognosis and treatment plan provided by claimant’s treating physician, (ii) channel or direct claimant to a PPO Network provider as appropriate, (iii) monitor and facilitate treatment planning, (iv) coordinate early return to work, and (v) subsequently provide periodic assessments of treatment and return to work plans. CMs may recommend additional services or coordinate claim closure, as appropriate.

(c) Medical/Field Case Management: CorVel’s medical/field case management (“MCM”) personnel perform field based case management services as directed by the employer and/or Authorized TPA which may include on-site contact with claimant, employer, and provider, as well as telephonic communication with the claims professional. MCM’s provide the CM services set forth in Section A above.

(d) Vocational Case Management: Vocational case management services may include the following: (i) coordinating return to work, (ii) providing job analysis, (iii) assisting with job placement, (iv) providing expert testimony, (v) assisting with job development, (vi) providing job analysis of essential and non-essential duties for employers under the American’s With Disabilities Act, (vii)


providing vocational testimony, (viii) providing advice regarding job seeking skills, and (ix) providing transferable skills analysis.

(e) Utilization Review:

(i) CorVel’s utilization management program reviews proposed inpatient hospital admissions and ambulatory care to determine the appropriateness, frequency, length of stay, and setting for such proposed treatment. In addition, CorVel can monitor and assess the appropriate utilization of treatment for all orthopedic and soft tissue injuries requiring ambulatory diagnostics and treatment.

(ii) CorVel nurses make recommendations to the claims adjuster based on nationally accepted medical guidelines, including Optimed Managed Care System, a clinical protocol software; the American College of Occupational and Environmental Medicine (ACOEM) Occupational Medicine Practice Guidelines: Evaluation and Management of Common Health Problems and Functional Recovery in Workers; other nationally accepted treatment practice guidelines, as well as any state mandated treatment guidelines.

(iii) Any nurse recommendations for limitation or denial of care based on lack of medical necessity are reviewed by a CorVel Physician Advisor. The Physician Advisor makes a final recommendation to the claims adjuster to approve or deny. If a final recommendation is made to deny treatment, the treating physician is notified in writing of the decision and the appeals process.

3. PROFESSIONAL FEE

(a) CorVel’s case management nurses and vocational rehabilitation counselors are required to be

licensed in the jurisdictions they provide patient care or counseling. CorVel’s case managers may provide care in multiple jurisdictions. Such case managers are required to maintain multiple state licenses and corresponding continuing education credits in maintaining these licenses. Additionally, CorVel’s case managers are required to utilize up to date nationally recognized treatment guidelines, including American College of Occupational and Environmental Medicine (ACOEM), Official Disability Guidelines (ODG) and the MDGuidelines. An incremental professional fee as described hereunder in Exhibit B (“Fees”) shall be invoiced to Customer for the substantial costs associated with obtaining and maintaining the national guidelines for CorVel’s case management nurses. Such professional fee allows CorVel to maintain the applicable licenses and certifications for CorVel’s case managers as well as keeping appropriate treatment guidelines up to date.


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PERMA WORKERS’ COMPENSATION PROGRAM

SERVICE AGREEMENT

THIS AGREEMENT is entered into this ______ day of _______________, 2019,

between the Public Entity Risk Management Authority (PERMA), hereinafter referred to

as "PERMA” and AdminSure, a California Corporation, hereinafter referred to as the

"Administrator."

WHEREAS, PERMA and its members have undertaken to self-insure their

Workers' Compensation obligation; and

WHEREAS, the Administrator is engaged in the business of administering

Workers' Compensation self-insurance programs; and

WHEREAS, PERMA desires to retain the services of the Administrator to

administer a Workers' Compensation self-insurance program, hereinafter referred to as

the "Program," for PERMA;

NOW, THEREFORE, PERMA hereby retains the services of the Administrator

and the Administrator agrees to perform service for PERMA under the terms and

conditions of this Agreement.

TERMS AND CONDITIONS

1. TERM: This Agreement shall become effective as of July 1, 2019 and end as of

June 30, 2022. This Agreement, effective as of July 1, 2019, supersedes any prior

Agreement between PERMA and the Administrator and shall continue in effect through

June 30, 2022 unless terminated by the cancellation provision set forth herein.

2. PERIODIC MEETINGS: The Administrator shall meet with PERMA members and

staff periodically to:

A. Assist in developing internal procedures.

B. Provide orientation and training to personnel involved in the

administration of the Program.

C. Discuss specific claims and general trends in the Program.


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3. ADVISORY SERVICES: The Administrator shall provide PERMA and its members

information regarding the adoption, amendment or repeal of all statutes, rules and

regulation, which directly affect the Program.

4. REQUIRED FORMS: The Administrator shall provide PERMA members with all

forms required by the State in connection with the Program.

5. COMPLIANCE WITH LAW: The Administrator shall administer the Program in full

compliance with all laws, rules and regulations governing Workers' Compensation and

Self-Insurance.

6. CLAIMS ADMINISTRATION: The Administrator shall comply with all performance

standards of PERMA’s excess insurer identified as Attachment 1. The Administrator

shall also comply with the Administrator’s Workers’ Compensation Claims

Administration Standards identified as Attachment 2, but under no circumstances are they

to be construed as having precedence over the performance standards of PERMA’s

excess insurer identified as Attachment 1. The Administrator shall also have the

authority and responsibility to provide claims administration services, which include:

A. Establishing an electronic claim file and computer database record upon

receipt of an injury report.

B. Setting and updating reserves.

C. Initiating and maintaining contact with injured workers or their attorneys.

D. Arranging for investigation.

E. Determining compensability.

F. Preparing and issuing benefit notices and pamphlets, if applicable.

G. Arranging for medical treatment and medical services from clinics,

facilities, pharmacies, hospitals, specialists, and other vendors as

necessary.

H. Performing all bill review services, and utilization review services through

MedReview: communicating decisions to approve, modify, delay or deny

medical treatment in accordance with State law.


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I. Monitoring disability status by reviewing medical reports and calling

doctors for updates.

J. Auditing and reviewing all medical bills through MedReview and paying

all properly adjusted medical bills in a timely and accurate manner.

K. Paying mileage or medical reimbursements to injured workers.

L. Paying temporary disability compensation when appropriate to do so or

advising a PERMA member of the need to adjust payroll records when

salary continuation is applicable.

M. Arranging medical exams in conformance with State law to determine

whether an injured worker's medical condition is permanent and stationary

and what, if any, permanent disability exists.

N. Paying permanent disability compensation in accordance with the law.

O. Arranging for attorney representation of the PERMA member whenever

the need arises, selecting attorneys pre-approved by the PERMA member.

P. Monitoring attorneys and assisting them in preparing cases.

Q. Auditing and paying legal expenses.

R. Arranging for vocational rehabilitation services when appropriate,

monitoring vocational rehabilitation consultants and assisting them as

necessary.

S. Auditing and paying vocational rehabilitation expenses.

T. Attending all hearings that are required by law.

U. Preparing and issuing Vocational Rehabilitation/Supplemental Job

Displacement Benefits (SJDB) notices.

V. Preparing and issuing permanent disability compensation notices.

W. Pursuing subrogation when there is a viable third party.

X. Notifying PERMA and its members' excess insurers of all claims, which

exceed or may exceed the self-insurance retention, maintaining a liaison

among PERMA and its members and their excess insurers on matters

affecting the handling of such claims and arranging for reimbursement to

the PERMA member of losses in excess of its self-insurance retention.


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Y. Obtaining settlement authority and negotiating settlement on appropriate

claims.

Z. Closing claim files when appropriate to do so.

7. OBLIGATIONS OF PERMA MEMBERS: The PERMA member shall:

A. Submit all reports of work injury to the Administrator within one business

day of the member’s knowledge of the injury.

B. Respond to the Administrator’s requests for information and authority

within five days of such requests.

C. Provide information that is accurate and is in a form specified by the

Administrator.

D. Grant settlement authority to the Administrator in advance of WCAB,

Rehabilitation, and legal hearings, or be available by phone or in person

during same.

8. CHECKING ACCOUNT: PERMA and its members and the Administrator agree that:

A. PERMA members shall establish and maintain a checking account from

which all workers' compensation benefits and expenses are to be paid.

B. The Administrator shall prepare checks and issue those checks directly to

payees without delay.

C. The Administrator shall sign checks with a facsimile signature or

manually.

D. The Administrator shall secure checks in a locked area accessible to a

limited number of personnel.

E. PERMA members shall maintain an adequate balance in their checking

account to meet all workers' compensation obligations without delay.

F. The checking account may be used to pay civil penalties in which case the

Administrator shall reimburse the PERMA member within fifteen (15)

working days for any amount of the penalty which the Administrator

caused.


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9. ELECTRONIC DATA PROCESSING: The Administrator shall provide PERMA and

the PERMA member with electronic data processing services that will allow for the

production of loss experience and transaction reports within ten (10) days following the

close of each calendar month. The Administrator shall either print these reports or shall

provide PERMA and the PERMA member with electronic media containing the data

needed to print such reports.

10. ELECTRONIC DATA SECURITY AND RECOVERY: The Administrator agrees to

develop and implement processes and procedures relating to the protection of electronic

data, including a suitable security and back-up system for all stored data and written

policy with respect to disaster recovery, physical and electronic data security, and

electronic data retention.

11. REGULATORY REPORTING: The Administrator shall prepare all reports required

by State regulatory agencies in connection with the Program, including the Self-Insurer's

Annual Report required by the Department of Self-Insurance Plans.

12. RECORDS: The Administrator shall establish and maintain claim files, claim logs,

transaction documents and all other records associated with the Program. These records

shall be the property of PERMA or its members. Unless this Agreement is canceled,

closed files shall be stored by the Administrator for five (5) years and shall thereafter

become the responsibility of PERMA or its members. Upon cancellation of this

Agreement, PERMA or its members shall be responsible for maintaining and storing all

records. The Administrator shall not dispose of or destroy these records without the

prior, written authorization of PERMA or its members.

13. CONSIDERATION: The current claims administration fee is $38,350 per month.

Future increases shall be based on 3% each year for the next three fiscal years.


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For the first year, July 1, 2019 to June 30, 2020, of this Agreement, PERMA shall pay the

Administrator a flat monthly claims administration fee of $39,501 for Claims

Administration Services rendered under this Agreement.

For the second year, July 1, 2020 to June 30, 2021, of this Agreement, PERMA shall pay

the Administrator a flat monthly claims administration fee of $40,686 for Claims


For the third year, July 1, 2021 to June 30, 2022, of this Agreement, PERMA shall pay

the Administrator a flat monthly claims administration fee of $41,907 for Claims


This Agreement applies only to the following PERMA members: City of Barstow, City

of Cathedral City, City of Coachella, City of Desert Hot Springs, City of Holtville, City

of Murrieta, City of Norco, City of Palm Desert, City of Rancho Mirage, City of

Victorville, City of Westmorland, and the SunLine Transit Agency. Should a PERMA

member terminate this Agreement (withdraw) by the cancellation provision set forth

herein, or should a PERMA member become the Administrator’s Client (join), the

service fee will be renegotiated.

In the event a PERMA member leaves and later desires to again have the Administrator

administer their Workers’ Compensation Program, the PERMA member shall pay for

and/or reimburse the Administrator for the data conversion fees incurred. The data

conversion fees will be the actual cost of the data conversion for assimilating data from

the previous Third Party Administrator into the Administrator’s system with no

additional price markup.

PERMA and its members shall allow the Administrator to audit all medical bills through

MedReview. Bill review fees are 14% of the OMFS (Official Medical Fee Schedule)

Savings and IHFS (Inpatient Hospital Fee Schedule) Savings, and 24% of the PPO

(Preferred Provider Organizations) Savings, if any.


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PERMA and its members shall allow the Administrator to perform all utilization review

services through MedReview. Utilization review fees are incorporated into medical bill

review invoices at the rate of 5% of billed charges. The maximum utilization review fee

charged per medical bill is capped at $750.00. Utilization review by a physician is billed

separately at $200.00 per hour.

14. ALLOCATED EXPENSES: PERMA members shall pay for field investigation,

defense attorneys, legal costs, remote photocopy, engineering experts, accident

reconstruction experts, process servers, messenger service, court reporters, vocational

rehabilitation consultants, structured settlement consultants, translators, and any other

vendor necessary to administer claim files.

15. PENALTIES: The Administrator shall be responsible for paying or appealing

penalties that are caused by the Administrator. The Administrator shall not be

responsible for penalties that are caused by PERMA or its members or any third parties.

16. INDEMNIFICATION: The Administrator shall indemnify, hold harmless, and

defend PERMA and its members from all claims, legal actions, losses, expenses, injuries,

or damages arising out of the Administrator's negligence or intentional wrongdoing

incident to the performance of this Agreement.

17. INSURANCE: The Administrator shall:

A. Maintain in force at all times General and Professional Liability Insurance

in the amount of two million ($2,000,000) dollars.

B. Maintain in force at all times a Fidelity Bond in the amount of one million

($1,000,000) dollars.

C. Maintain in force at all times Workers' Compensation Insurance for

employees of the Administrator, as required by law.

D. Notify the PERMA and its members in writing sixty (60) days prior to any

cancellation or reduction in the above coverages.


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E. Maintain evidence of the above coverages on file with PERMA or its

members throughout the term of this Agreement.

18. NOTICES: All notices, demands, requests, or approvals which are required under

this Agreement, or which either PERMA or the Administrator may desire to serve upon

the other, shall be in writing and shall be conclusively deemed served when delivered

personally, or forty-eight (48) hours after the deposit thereof in the United States Mail

with postage pre-paid.

19. CANCELLATION: This Agreement may be cancelled by the Administrator, or

PERMA (PERMA member), giving to the other, in writing, notice of its intention to

cancel this Agreement at least sixty (60) days prior to the date of termination. Upon the

date of termination of this Agreement, or the date on which records are transferred to

another custodian, whichever occurs first, the Administrator shall no longer have the

authority or responsibility to administer claims on behalf of PERMA (PERMA member).

20. PARTIAL INVALIDITY: If any provision of this Agreement is held by a competent

court to be invalid, void or unenforceable, the remaining provisions shall nevertheless

continue in full force and effect.

21. GOVERNING LAW: The validity of this Agreement and of any of its terms and

provisions shall be interpreted pursuant to the Laws of the State of California.

22. INTERPRETATION: The terms and conditions of this Agreement shall be construed

pursuant to their plain, ordinary meaning and shall not be interpreted against the maker.

23. ASSIGNMENT: The Administrator shall not assign, sublet, transfer by operation of

law, or otherwise any or all of its rights, burdens, duties, or obligations of this Agreement

without the prior, written consent of PERMA.


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24. CONFLICT OF INTEREST: The Administrator shall avoid all conflicts of interest or

appearance of conflicts of interest in performance of this Agreement. All conflicts of

interest or appearance of conflicts of interest shall be reported immediately via electronic

submission, but no later than fourteen (14) calendar days after knowledge of such

conflict, to PERMA. PERMA will review such disclosure and reserves the right to take

the appropriate action to avoid such conflict. If, during any given year, the Administrator

receives compensation from any party for services included in this Agreement, such as

bill review services, managed care, or investigations, the Administrator shall disclose to

PERMA annually such fees received. Such disclosure shall be in the form of a letter and

shall be received by PERMA on or before July 15th of each year.

25. ENTIRE CONTRACT: This Agreement applies only to the following PERMA

members: City of Barstow, City of Cathedral City, City of Coachella, City of Desert Hot

Springs, City of Holtville, City of Murrieta, City of Norco, City of Palm Desert, City of

Rancho Mirage, City of Victorville, City of Westmorland, and the SunLine Transit

Agency. This instrument contains the entire Agreement between the parties relating to

the rights herein granted and obligations herein assumed. Any oral representations or

modifications concerning this instrument shall be of no force or effect. Subsequent

modifications shall be made in writing with the agreement of the parties.

EXECUTED at ________________, California, on the date and year first above

written. PERMA ADMINSURE, INC. by _____________________________ by _______________________________ Scott Ellerbrock, General Manager Alithia Vargas-Flores, President


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C/18580

SECOND AMENDMENT TO THE WORKERS’ COMPENSATION SELF-

INSURANCE SERVICE AGREEMENT

This Second Amendment to that certain Workers’ Compensation Self-Insurance Service

Agreement dated as of July 1, 2013, and as subsequently amended (collectively the

“Agreement”) by and between Public Entity Risk Management Authority (“Client”) and York

Risk Services Group, Inc. (“York”).

WITNESSETH

WHEREAS, the parties wish to extend the term of their Agreement;

WHEREAS, the parties wish to amend the fee schedule of the Agreement as set forth

herein; and

WHEREAS, York has moved to a new corporate office and herein provides notice of the

address change for purposes of Client providing any notice to York as required by the

Agreement.

NOW, THEREFORE, in consideration of the mutual promises contained herein, and

other good and valuable consideration, the receipt and sufficiency of which is hereby

acknowledged, the parties agree as follows:

1. Section 1 of the Agreement entitled “Term of Agreement” shall be revised to

include the following contract period:

“The term of this Agreement has been extended to include the period from

July 1, 2019 through June 30, 2022.”

1. Effective July 1, 2019, Section 2 a. of the Agreement shall be revised and

replaced with the following:

“a. York’s Claims Administration monthly fee for the Hesperia Fire

Protection District (tail) and City of Hesperia (tail) will be $120.50 per month

per open claim.”

2. Effective July 1, 2019, Section 2 b. of the Agreement shall be revised and


“b. York’s annual Claims Administration fee for the City of Hesperia-

PERMA for the period of July 1, 2019 through June 30, 2020 shall be

$21,528.”


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C/18580

3. Effective July 1, 2019, Section 2 c. of the Agreement shall be revised and




$22,174.”

4. Effective July 1, 2019, Section 2 d. of the Agreement shall be revised and




$22,839.”

5. The Agreement is hereby revised so that any notice to York shall be sufficient

if sent via certified or express mail (with capacity to demonstrate receipt) and

addressed to:

York Risk Services Group, Inc.

Attn: Jody A. Moses, Executive Vice President

333 City Blvd. West, Suite 1500

Orange, CA 92868

With a copy to:

York Risk Services Group, Inc.

Attn: Michael Krawitz, General Counsel

One Upper Pond Road

Building F, 4th Floor

Parsippany, NJ 07054

6. All other terms of the Agreement shall remain in force and unchanged. Any

conflicts between this amendment and the original Agreement, including any

prior executed amendments, shall be superseded by the terms provided herein.

In Witness Whereof, the parties have executed this amendment to be effective as of July 1, 2019.

PUBLIC ENTITY RISK YORK RISK SERVICES GROUP, INC.

MANAGEMENT AUTHORITY

By: __________________________ By: _____________________________

Name: Jody A. Moses

Title: ________________________ Executive Vice President




ACTION / DISCUSSION ITEM

AGENDA ITEM 7F: Notice of Withdrawal - City of Adelanto


RECOMMENDATION:Reserved for consideration of the City’s rescission of its notice to withdraw.

FISCAL IMPLICATIONS:The City of Adelanto is removed from the 2019-20 budget, because the City submitted a Noticeto Terminate Coverage. Should the City rescind its withdrawal notice and the Board approvethe rescission, the City would be allocated approximately $35,000 of the administrative costs.

BACKGROUND & OVERVIEW:This time has been reserved to discuss the Notice to Terminate Coverage received from theCity of Adelanto dated February 21, 2019.

At the time of this writing, the City has not rescinded its notice to terminate coverage, but thegeneral manager wanted to ensure today’s agenda provided an opportunity to discuss arescission if received.

Since the City’s written notice was not received within the six months notice requirement of theJoint Powers Agreement, the request for withdrawal was considered by the ExecutiveCommittee at its March 7, 2019 meeting. The Executive Committee accepted the late noticewithout an early-withdrawal charge and removed the City of Adelanto from the 2019-20 budgetthat was distributed to the membership on March 11, 2019. The Executive Committee also seta deadline of May 15, 2019 for the City to rescind its withdrawal notice.

The City continues to explore its options for alternative coverages currently provided by ERMAand PERMA, so this time has been reserved should the City not find acceptable alternativesand request the Board approve a rescission of its notice of withdrawal.

As explained in the City’s Notice to Terminate Coverage, the Employment Risk ManagementAuthority (ERMA) has placed the City of Adelanto on notice that ERMA will terminate the City’scoverage effective July 1, 2019. In the interim, the City has agreed to a PerformanceImprovement Plan (PIP) and if the conditions of the PIP are met, the ERMA Board wouldreconsider its decision to terminate the City’s participation in ERMA - but with no guaranteethat the decision to terminate would change. The ERMA Board is scheduled to meet June 11,2019.

The general manager will provide an update at the meeting.

REFERENCE MATERIALS ATTACHED:City of Adelanto - Notice to Terminate Coverage February 21, 2019

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AGENDA ITEM 7G: 2019-20 Annual Budget


RECOMMENDATION:Approve the 2019-20 Annual Budget as presented.

FISCAL IMPLICATIONS:Staff will review the fiscal implications in detail at the meeting; however, a comparison ofthe proposed 2019-20 budget to the approved 2018-19 budget is provided below:

Proposed Approved Budget Budget Increase/(Decrease)

2018-19 2017-18 $ % Expenditures:Administrative $ 1,565,856 $ 1,454,535 $ 111,321 7.7%Program 4,679,904 3,759,428 920,476 24.5%

Total $ 6,245,760 $ 5,213,963 $ 1,031,797 19.8%

Also attached are Executive Summaries comparing the current budget to projected actualcosts, and the proposed budget to current budget.

EC BACKGROUND & OVERVIEW:Enclosed is the proposed 2019-20 Annual Budget, which includes the projected costs forAdministrative and Program Expenditures for the Liability and Workers’ Compensationprograms.

There are no program expenditures for the other coverage programs (Crime, CyberLiability, ERMA, and Property) in the budget, since these are pass-through programs. However, the premiums for these programs are located in the Annual Premiums document.

The Administrative Expenditures include the following categories: Personnel, Operations,and Capital Outlay. Ninety-five percent (95%) of the Administrative Expenditures areallocated to the Liability program and the remaining five percent (5%) are allocated to theWorkers’ Compensation program.

The Administrative Expenditures allocated to the Liability program are then allocated to themembers of the program on a 75% variable - 25% fixed basis. Some of the generalservices are not directly related to the size and loss experience of the member; therefore,twenty-five percent (25%) of the costs are equally shared (fixed) by the membership andseventy-five percent (75%) of the costs are based on payroll limited to $10,000,000(variable).

The Program Expenditures are operating costs directly associated with the coverageprogram and include such line items as Actuarial Studies, Claims Administration, andExcess Insurance.

The Program Expenditures are primarily allocated based on payroll limited to $10,000,000as well; however, there are exceptions, such as Workers’ Compensation ClaimsAdministration (which is based on claim volume and choice of TPA) and Excess Insurance(which is based on full payroll).

The actual calendar year 2018 payroll is the payroll base used in the proposed 2019-20Annual Budget and proposed 2019-20 Annual Premiums.

The budget document provides the reader with the 2019-20 budget figures, a comparisonbetween the proposed budget and the current budget, the projected current year costs, acurrent year budget to actual comparison, and a 3-year history of actual costs.

Additionally, Executive Summary reports providing detailed explanations are attached.

The Administrative and Program Expenditure allocations are incorporated in the Liabilityand Workers’ Compensation deposit premiums in the draft 2019-20 Annual Premiumsreport.

On March 7, 2019 the Executive Committee approved a draft 2019-20 Annual Budgetwhich was then distributed electronically to the membership. Since that time, the followingrevisions have been made to the budget being presented today:

Line Item Increase /(Decrease)

Comments

Salaries $(7,583) March CPI-U came in at 2.8%, initialbudget was 4%

Benefits $(1,184) Result of Salaries decrease

Workers’ CompensationClaims Administration

$1,206 Adjusted to TPA renewal fees

Page -2-

Workers’ CompensationInsurance

$(95,575) Adjusted to LAWCX revised renewalpremium

Total $(103,136)

REFERENCE MATERIALS ATTACHED:Executive Summary - 2018-19 Budget to Actual with Historical Recap . . . . . . . Page 1Executive Summary - 2019-20 Budget to 2018-19 Budget . . . . . . . . . . . . . . . . . Page 52019-20 Annual Budget - Proposed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . enclosed

Page -3-

2018-19 BUDGET TO ACTUAL WITH HISTORICAL RECAPEXECUTIVE SUMMARY

The 2018-19 actual costs are projected to come under budget by $112,213 with Administrative costs projectedto be under budget by $74,529 and Program costs projected to be under budget by $37,684.

The following will provide you with a brief explanation of the favorable result, and the corresponding detailpage number in the Budget is noted by each section.

ADMINISTRATIVE

2018-19Budget to Actual

Line Favorable/ DetailItem (Unfavorable) Page Explanation

PERSONNELSalaries $11,796 5 Favorable result - Salaries are projected to be on target;

however, the Claims Manager extended his retirementdate so the extra month of salary budgeted for atransition period with a new Claims Manager was notneeded.

Historical Recap: There have been no changes tothe number of staff positions for 22 years. Aclassification and compensation study wasconducted in September 2016 and the Boardapproved salary and benefit adjustments effectiveJuly 1, 2017.

Benefits/Insurance $8,872 5 Favorable result - With the exception of Health Benefitsand Wellness, benefits are tied to salaries and as aresult, benefits are projected to be under budget $3,442.Health Benefits are projected to be under budget by$4,001 due to changes in dependent status andWellness is expected to come under budget by $1,429due to under utilization by employees.

Total Personnel $20,668 Favorable

OPERATIONSOffice Expenses $15,884 6 Favorable result - All projected costs are expected to be

within budget.

Building Expenses $884 6 Favorable result - Building Maintenance is expected tobe under budget by $1,020 due to not having anymaintenance issues this year. Association Dues areprojected to be over budget by $167 due to a monthlyincrease of $28 effective January 2019.

Historical Recap: In 2015-16, the Riverside CountyAssessor’s office determined that PERMA qualifiesas exempt, and as such, is exempt from generalproperty taxes. Refunds for prior years paid taxeswere received in August 2016.

The Building Expenses classification is new for FY2011-12 due to the purchase of the new office at 36-951 Cook Street, Ste 101, Palm Desert, CA. Escrowclosed on August 26, 2011.

Page -1-


ADMINISTRATIVE - continued



Conferences and Meetings $19,568 6 Favorable result - All projected costs are expected to be

within budget.

Historical Recap: The expenses for Board/ExecutiveCommittee meetings are dependent on how oftenand where the Board or Executive Committee meetsand the members’ travel costs to attend themeetings.

The Executive Committee is responsible for theapproval and expenditures of the Board memberattendance of conferences.

Attendance by staff at industry conferences andexpositions depends on content and location and isat the discretion of the general manager.

ProfessionalServices $17,525 7 Favorable result - All projected costs are expected to be

within budget.

Historical Recap: The Board renewed a 5-yearcontract with Bickmore for risk control serviceseffective 07/01/18. The annual fee is $123,600.

The Board entered into a new contract with PFM forinvestment advisory and management serviceseffective 03/07/13. This contract is ongoing untilcanceled.

Total Operations $53,861 Favorable

Page -2-





CAPITAL OUTLAY

Building andImprovements $0 7 Not budgeted.

Historical Recap: PERMA purchased its new officefor $897,155. Escrow closed on August 26, 2011

Equip. & Furniture $0 7 Not budgeted.

Historical Recap: The cost to furnish and equip thenew office was $140,538.

Contingency $0 7 Not budgeted.

Total Capital Outlay $0

TOTAL ADMIN. $74,529 FAVORABLE

PROGRAM2018-19Budget to Actual


General Liability $8,012 9 Favorable result - The CSAC-EIA excess insurancepremium came in less than budgeted by $5,692. Claimsadministration is expected to be under budget by $2,320.

Workers’Compensation $29,672 9 Unfavorable result - The State self-insurer’s assessments

are under budget by $25,657; the increase in rates wasnot as much as anticipated. The assessments are basedon annual indemnity payments and rates which are notknown at the time of budgeting and fluctuate from year toyear. The indemnity payments increased 7.4% and theassessment rates increased 11.6% from last year.

Page -3-


PROGRAM - continued



Workers’ Compensation (continued) 9 Historical Recap: PERMA renewed 3-year contracts

with each TPA firm effective 07/01/16.

LAWCX calculates annual deposit premiums usingthe most recent prior fiscal year payroll. For 2018-19deposit premiums, 2016-17 actual payroll is used,and deposit premiums are no longer subject to aretrospective adjustment to actual fiscal year payroll.

TOTAL PROGRAM $37,684 UNFAVORABLE

Page -4-

2019-20 BUDGET TO 2018-19 BUDGETEXECUTIVE SUMMARY

The draft 2019-20 budget represents a 19.8% increase over the 2018-19 budget. The draft 2019-20Administrative budget represents a 7.7% increase, while the draft Program budget is 24.5% more than the2018-19 budget.

The following will provide a brief explanation of the proposed budget increases and decreases, and thecorresponding detail page number in the Budget is noted by each section.

ADMINISTRATIVE2019-20Budget

Line Increase/ DetailItem (Decrease) Page Explanation

PERSONNELSalaries $32.197 5.2% 5 Increase - In December 2016, the Board approved

to adjust the pay structure by 2% or the All UrbanWage Earners Consumer Price Index For LosAngeles-Riverside-Orange counties in March,whichever is greater, for FY 2018-19 and FY 2019-20. The March 2019 CPI-U is 2.8%. Meritincreases, if any, are also budgeted.

The Claims Manager has targeted the end ofFY19-20 for retirement, so an extra two months ofsalary has been budgeted for this position fortransition and payoff of accrual vacation purposes.

Benefits/Insurance $18,275 8.9% 5 Increase - The increase is due primarily to theincrease in CalPERS Retirement of $14,666. Thisincrease is attributable to the increase in salaries,a 6.6% increase in the CalPERS Classic employerrate (2.7% decrease in the CalPERS PEPRA rate),and a $6,883 increase in the Unfunded AccruedLiability (UAL) annual payment.

Total Personnel $50,472 6.1% INCREASE

Page -5-



2019-20Budget


OPERATIONSOffice Expenses $1,900 2.6% 6 Increase - $500 decrease in Postage and $300

increase in Equipment Repair & Maintenance areto bring these items in line with actual costs andusage. $2,100 increase in General Insurance isdue to the increase in staff’s share of the CSAC-EIA excess liability insurance.

Building Expenses $336 1.0% 6 Increase - Increase in Association Dues is to bringit in line with actual cost of $793 per month.

Conferencesand Meetings $0 0.0% 6 No change.

ProfessionalServices $43,613 9.1% 7 Increase - Increases in Broker Services ($1,155),

Financial Auditor ($400), and InvestmentManagement ($800) are contractual. $3,400increase in Actuarial Services is for the biennialGASB 75 OPEB valuation. The Optional Servicesincrease of $9,905 is mainly due to the $9,532increase in Lexipol fees for the addition of theVictorville Fire.

Note: The current IT infrastructure has been in place since September 2011. Accent ComputerSolutions, PERMA’s IT consultant, has recommended the physical server and workstations bereplaced/refreshed every five years. The replacement has been postponed until FY 2019-20 whichis when Microsoft will end extended support to Windows 7 in January 2020. Staff discussed anupgrade path with Accent and is recommending a cloud based solution with remote desktopservices. All network servers (file, print, domain, etc.), programs and data will reside in the cloudwith remote access from any PC with internet access. Backup services, disaster recovery services,and even the server closet A/C will no longer be needed.

The Computer/Network increase of $29,300 is tomove the entire network to a cloud basedsubscription service through Microsoft Azureeffective September 1, 2019. Accent has provideda preliminary estimate of one-time labor of $10 to$15 thousand and monthly licensing and cloudservice fees of $2,000 which includes a pre-paiddiscount. Accent’s monthly, fully managed ITsupport fee will decrease from $1,875 to $1,400due to the elimination of backup services.

Total Operations $45,849 7.3% INCREASE

Page -6-



2019-20Budget


CAPITAL OUTLAYBuilding and

Improvements $0 0.0% 7 No improvements needed.

Equipment & Furniture $15,000 - 7 Purchase and configuration of five laptops with

docking stations.

Contingency $0 0.0% 7 No contingency needs to be established.

Total Capital Outlay $15,000 - INCREASE

TOTAL ADMIN. $111,321 7.7% INCREASE

PROGRAM

2019-20Budget


General Liability $709,498 49.7% 9 Increase - The $709,498 increase in Insurance isbudgeted at the high end of the estimated rangeprovided by CSAC-EIA.

Workers’Compensation $210,978 9.0% 9 Increase - The State self-insurer’s assessment is

budgeted $22,500 higher based on anticipatedrate increases. The Claims Administrationcontracts expire June 30, 2019, and the renewalfees are 2.3% higher than the expiring fees. InApril 2019, LAWCX approved a preliminary budgetand premiums resulting in a $174,500 increase ininsurance. The LAWCX safety rate increased7.6%, the non-safety rate increased 8.7%, andPERMA’s ex-mod increased 2.1%.

TOTAL PROGRAM $920,476 24.5% INCREASE

Page -7-

Public Entity Risk Management Authority(PERMA)

ANNUAL BUDGETFY 2019-20

PROPOSED(June 6, 2019)

PERMAFY 2019-20

Annual Budget

Table of Contents__________________________

Description of Budgeted Line Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Budget Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Administrative Expenditures

Personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Office Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Building Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Conferences and Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Professional Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Capital Outlay . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Optional Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Program Expenditures

General Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Allocation of Expenditures by Member

General Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

BUDGET DESCRIPTIONS

SALARIES

The five PERMA staff positions are the General Manager, Liability Claims Manager,Financial Analyst, Liability Claims Specialist and Secretary. Annual merit increaseshave been included for those employees that are eligible.

BENEFITS/INSURANCE

CALPERS - Retirement - The California Public Employees’ Retirement System(CalPERS) employer contribution rates for FY 19-20 are 13.945% (Classic) and 7.072%(PEPRA). The rates are established by CalPERS and based on actuarial studies. Theemployer does not contribute to the employees’ required contributions.

CAFETERIA/DEFERRED COMPENSATION PLAN - Includes the cost of medical,dental and vision coverages up to a maximum of $1,821 per month. PERMA contractswith PERS for medical coverage, Delta Dental for dental coverage, andUnitedHealthcare for vision coverage. This line item also includes contributions to thedeferred compensation plan. PERMA contracts with Nationwide Retirement Solutionsand CalPERS for its deferred compensation plans.

WORKERS’ COMPENSATION - Workers' compensation and employer’s liabilityinsurance is obtained from the State Compensation Insurance Fund at rates of $0.48for clerical and $0.64 for management.

DISABILITY - Disability insurance is provided through ING/ReliaStar InsuranceCompany at a rate of $.750 per $10 of covered benefits for short term and $.316 per$100 of payroll for long term disability.

LIFE - Life and Accidental Death & Dismemberment insurance of one times salary ata rate of $.228 per $1,000 of covered benefits per month is provided throughING/ReliaStar Insurance Company.

MEDICARE - Employer contribution rate of 1.45% of salaries for employees hired afterMarch 31, 1986.

UNEMPLOYMENT - State required unemployment compensation fund contribution -calculated at 2.0% of staff wages limited to $7,000 per employee.

WELLNESS - Employee reimbursement of wellness related expenses, e.g., gymmembership fees, up to $35 per month.

OFFICE EXPENSES

BANK CHARGES - Bank service fees, such as checking account maintenance fees,online services fees, investment custody agent services, and wire transfers.

DUES & SUBSCRIPTIONS - Professional organization membership fees andsubscriptions to periodicals, magazines, newspapers, internet access, web site hostingand computer protection.

GENERAL INSURANCE - General Liability, Crime and Contractor’s Equipmentinsurance.

OFFICE SUPPLIES - Office and household supplies.

OFFSITE STORAGE - Storage unit rental fees.

PERSONNEL RECRUITMENT - Costs associated with hiring new employees, such asclassified ad fees.

POSTAGE - Postage and shipping related costs, including certified mail, parcel post,overnight delivery, UPS/Fed Ex.

PRINTING - Costs related to printing and producing of stationery, business cards,brochures, preprinted forms, newsletters and annual reports.

RENT/LEASE - OFFICE EQUIPMENT - Costs related to use of equipment, not ownedby PERMA, such as, postage meter.

REPAIR & MAINTENANCE - OFFICE EQUIPMENT - Repair and maintenance ofcomputers, software, furniture and equipment.

SMALL FURNITURE & EQUIPMENT - Provides for the purchase of furniture,equipment and software which costs less than $5,000.

STAFF DEVELOPMENT AND TRAINING - Reimbursement for tuition, books, andrelated fees for completion of approved post high school education and/or job relatedtraining.

STAFF TRAVEL - Auto allowance and mileage reimbursement for staff whileconducting PERMA business.

TELECOMMUNICATIONS - Telephone, FAX and internet access charges. UTILITIES - Electric, includes heating and air, and water and sewer charges.

BUILDING EXPENSES

ASSOCIATION FEES - University Village Park association fees for the repair andmaintenance of the common areas, such as, landscaping, parking lot, building exteriorsand roofs, including A/C units.

1

BUDGET DESCRIPTIONS

BUILDING MAINTENANCE - Repair and maintenance of facility, such as janitorialservice, carpet cleaning, pest control and protection services. It also includes anyinternal repairs or alterations.

PROPERTY INSURANCE - Building and contents insurance.

PROPERTY TAXES - Riverside County property tax assessments.

UTILITIES - Electric (central heating and A/C), Water and Sewer.

CONFERENCES AND MEETINGS

MEETINGS - BOARD - Costs of conducting PERMA meetings and workshops,including Board and Committee meetings, which may include meals, refreshments,speakers, room charges, audio conference charges, and travel.

CONFERENCES - BOARD - Costs associated with Board members attending seminarsand conferences, includes registration fees, lodging, travel, and meals.

CONFERENCES/MEETINGS - STAFF - Costs associated with staff attending meet-ings, seminars, conferences and expositions, includes registration fees, space fees,expo services, marketing items, lodging, travel, shipping and meals.

PROFESSIONAL SERVICES

ACTUARIAL SERVICES - Actuarial studies on OPEB and pension liabilities.

ACCREDITATION FEE - Fee for CAJPA’s Accreditation review (triennial).

BROKER SERVICES - Broker fees.

COMPUTER/NETWORK - Consulting and technical support fees related to the officecomputers and network, web site maintenance, etc.

FINANCIAL AUDITORS - Annual auditing services by a CPA firm.

INVESTMENT MANAGEMENT - Investment management and advisory services.

LEGAL SERVICES - Board Counsel fees and legal services not otherwise accountedfor as a claim expense.

OPTIONAL SERVICES - Costs related to optional services, such as WeTip’s crime tiphotline, Agility’s disaster recovery solutions and Lexipol’s policy manuals.

OTHER PROFESSIONAL SERVICES - Costs for professional services, not otherwiseclassified, such as, document management, consultants, etc.

PAYROLL SERVICES - Payroll processing services.

SAFETY & TRAINING - Costs of conducting training sessions and workshops for thebenefit of the member entities. It also includes risk control services and other riskmanagement related services.

SPARTA/PROMPT COVER - Costs related to the named programs.

PROGRAM EXPENDITURES

ASSESSMENTS/SURCHARGES - Assessments imposed from outside sources suchas the State of California and excess insurance providers.

CLAIMS AUDIT - Audit services of an independent claims auditor (biennial).

ACTUARIAL SERVICES - Actuarial studies are conducted annually to determineactuarial soundness and overall reserves.

CLAIMS ADMINISTRATION - Third party administration fee and costs incurred toadminister the claims program.

DUES AND SUBSCRIPTIONS - Professional organization membership fees andsubscriptions to publications, magazines, and newspapers.

INSURANCE - Primary and excess insurance premiums and deposit premiums.

CAPITAL OUTLAY

BUILDING - The purchase of 36-951 Cook Street, Ste 101, Palm Desert, and buildingimprovement projects costing more than $50,000.

EQUIPMENT & FURNITURE - General office equipment & furniture purchases, suchas computers, software, printers, desks, chairs and filing cabinets. Generally,purchases over $5,000.

CONTINGENCY - A contingency for unknown or unexpected costs related to thepurchase of the building, building improvements, furniture and equipment.

2

Public Entity Risk Management Authority (PERMA)BUDGET SUMMARYFY 2019-20

FY 18-19Budget to

$ % Projected ActualAdministrative FY 19-20 FY 18-19 Increase/ Increase/ FY 18-19 Favorable/ FY 17-18 FY 16-17 FY 15-16 Expenditures Budget Budget (Decrease) (Decrease) Actual (Unfavorable) Actual Actual Actual

Personnel

Salaries 649,554$ 617,357$ 32,197$ 5.2% 605,561$ 11,796$ 576,680$ 528,760$ 520,377$ Benefits/Insurance 223,102 204,827 18,275 8.9% 195,955 8,872 179,480 169,032 203,386

Total Personnel 872,656$ 822,184$ 50,472$ 6.1% 801,516$ 20,668$ 756,160$ 697,792$ 723,763$

Operations

Office Expenses 75,945$ 74,045$ 1,900$ 2.6% 58,161$ 15,884$ 59,779$ 59,658$ 56,903$ Building Expenses 33,602 33,266 336 1.0% 32,382 884 31,068 30,686 41,826 Conferences and Meetings 47,000 47,000 - 0.0% 27,432 19,568 28,086 32,001 21,862 Professional Services 521,653 478,040 43,613 9.1% 460,515 17,525 427,631 402,132 407,616

Total Operations 678,200$ 632,351$ 45,849$ 7.3% 578,490$ 53,861$ 546,564$ 524,477$ 528,207$

Capital Outlay

Building & Improvements -$ -$ -$ - -$ -$ -$ -$ -$ Equipment & Furniture 15,000 - 15,000 - - - - - - Contingency - - - - - - - - -

Total Capital Outlay 15,000$ -$ 15,000$ - -$ -$ -$ -$ -$

Total Administrative Expenditures 1,565,856$ 1,454,535$ 111,321$ 7.7% 1,380,006$ 74,529$ 1,302,724$ 1,222,269$ 1,251,970$

Allocation: 1,465,633$ Total Administrative Expenditures less Optional Services

1,392,351$ 95% - General Liability Program - Page 1173,282 5% - Workers' Compensation Program - Page 13

100,223 Optional Services (included in the members' share of General Liability Program expenditures) - Pages 8 & 11

1,565,856$ Total

3

Public Entity Risk Management Authority (PERMA)BUDGET SUMMARYFY 2019-20

FY 18-19Budget to

$ % Projected ActualFY 19-20 FY 18-19 Increase/ Increase/ FY 18-19 Favorable/ FY 17-18 FY 16-17 FY 15-16

Program Expenditures Budget Budget (Decrease) (Decrease) Actual (Unfavorable) Actual Actual Actual

General Liability 2,136,365$ 1,426,867$ 709,498$ 49.7% 1,418,855$ 8,012$ 1,188,869$ 1,095,392$ 1,079,832$

Workers' Compensation 2,543,539 2,332,561 210,978 9.0% 2,302,889 29,672 2,022,111 1,741,346 1,674,760

Total Program Expenditures 4,679,904$ 3,759,428$ 920,476$ 24.5% 3,721,744$ 37,684$ 3,210,980 2,836,738 2,754,592

TOTAL EXPENDITURES 6,245,760$ 5,213,963$ 1,031,797$ 19.8% 5,101,750$ 112,213$ 4,513,704$ 4,059,007$ 4,006,562$

Allocation: 3,628,939$ General Liability Program - Page 112,616,821 Workers' Compensation Program - Page 13

6,245,760$

4

Public Entity Risk Management Authority (PERMA)PERSONNELFY 2019-20

FY 18-19Budget to


Personnel Budget Budget (Decrease) (Decrease) Actual (Unfavorable) Actual Actual Actual

Salaries 649,554$ 617,357$ 32,197$ 5.2% 605,561$ 11,796$ 576,680$ 528,760$ 520,377$CalPERS - Retirement 97,016 82,350 14,666 17.8% 80,807 1,543 66,592 61,411 101,719 Health Benefits/Deferred Comp 98,956 96,050 2,906 3.0% 92,049 4,001 89,968 85,993 78,281 Workers' Compensation 4,793 5,042 (249) -4.9% 3,821 1,221 4,068 4,870 6,746 Disability 7,969 7,625 344 4.5% 7,466 159 7,180 6,688 6,519 Life Insurance 1,692 1,619 73 4.5% 1,587 32 1,527 1,427 1,400 Medicare 9,736 9,201 535 5.8% 8,994 207 8,900 7,929 7,916 SUI 840 840 - 0.0% 560 280 560 714 805 Wellness 2,100 2,100 - 0.0% 671 1,429 685 - -

Total Personnel 872,656$ 822,184$ 50,472$ 6.1% 801,516$ 20,668$ 756,160$ 697,792$ 723,763$

5

Public Entity Risk Management Authority (PERMA)OPERATIONSFY 2019-20

FY 18-19Budget to


Operations Budget Budget (Decrease) (Decrease) Actual (Unfavorable) Actual Actual Actual

Office Expenses

Bank Charges 12,800$ 12,800$ -$ 0.0% 10,587$ 2,213$ 11,910$ 10,380$ 13,781$ Dues & Subscriptions 3,700 3,700 - 0.0% 3,618 82 3,462 2,009 1,773 General Insurance 8,500 6,400 2,100 32.8% 6,132 268 5,631 5,159 4,224 Office Supplies 5,000 5,000 - 0.0% 4,284 716 2,757 3,420 2,863 Offsite Storage 1,380 1,380 - 0.0% 1,364 16 1,370 1,248 1,068 Personnel Recruitment 1,500 1,500 - - - 1,500 - 768 - Postage 5,000 5,500 (500) -9.1% 3,729 1,771 3,402 5,245 4,457 Printing 3,000 3,000 - 0.0% 1,453 1,547 1,315 2,256 2,532 Rent/Lease - Office Equipment 1,300 1,300 - 0.0% 1,113 187 1,113 1,114 1,115 Repair & Maint. - Office Equip. 9,300 9,000 300 3.3% 8,923 77 9,473 8,049 6,729 Small Furniture and Equipment 3,000 3,000 - 0.0% - 3,000 1,977 3,030 2,114 Staff Development/Training 2,500 2,500 - 0.0% - 2,500 - - - Staff Travel 11,720 11,720 - 0.0% 9,728 1,992 10,216 11,017 9,988 Telecommunications 7,245 7,245 - 0.0% 7,230 15 7,153 5,965 6,259

Total Office Expenses 75,945$ 74,045$ 1,900$ 2.6% 58,161$ 15,884$ 59,779$ 59,658$ 56,903$

Building Expenses 103.7%

Association Dues 9,516$ 9,180$ 336$ 3.7% 9,347$ (167)$ 9,179$ 8,758$ 8,758$ Building Maintenance 5,500 5,500 - 0.0% 4,480 1,020 3,705 4,026 4,827 Property Insurance 915 915 - 0.0% 836 79 919 846 817 Property Taxes & Assessments 7,471 7,471 - 0.0% 7,471 - 7,470 7,469 18,763 Utilities 10,200 10,200 - 0.0% 10,248 (48) 9,795 9,586 8,661

Total Building Expenses 33,602$ 33,266$ 336$ 1.0% 32,382$ 884$ 31,068$ 30,686$ 41,826$

Conferences and Meetings

Meetings - Board 13,500$ 13,500$ -$ 0.0% 12,414$ 1,086$ 5,092$ 10,689$ 9,219$ Conferences - Board 25,000 25,000 - 0.0% 8,091 16,909 18,916 15,694 8,102 Conferences & Meetings - Staff 8,500 8,500 - 0.0% 6,927 1,573 4,078 5,617 4,541

Total Conferences and Meetings 47,000$ 47,000$ -$ 0.0% 27,432$ 19,568$ 28,086$ 32,001$ 21,862$

6

Public Entity Risk Management Authority (PERMA)OPERATIONS / CAPITAL OUTLAYFY 2019-20

FY 18-19Budget to


Operations (Continued) Budget Budget (Decrease) (Decrease) Actual (Unfavorable) Actual Actual Actual

Professional Services

Accreditation -$ -$ -$ - -$ -$ 5,750$ -$ -$ Actuarial Services 5,100 1,700 3,400 200.0% 1,700 - 4,100 2,100 650 Broker Services 52,410 51,255 1,155 2.3% 51,255 - 50,250 46,250 56,250 Computer/Network 57,900 28,600 29,300 102.4% 25,618 2,982 25,600 29,946 26,300 Financial Auditors 26,200 25,800 400 1.6% 25,800 - 25,500 25,300 24,600 Investment Management 37,800 37,000 800 2.2% 36,173 827 35,204 34,953 34,188 Legal Services 70,000 70,000 - 0.0% 66,509 3,491 25,256 34,577 58,102 Optional Services 100,223 91,730 8,493 9.3% - 728 81,736 77,248 66,473 Other Professional Services 3,500 3,500 - 0.0% 1,090 2,410 1,063 5,543 2,402 Payroll 3,890 3,825 65 1.7% 3,738 87 3,538 3,691 3,418 Safety & Training 163,600 163,600 - 0.0% 156,600 7,000 169,634 141,587 134,368 Prompt Cover 1,030 1,030 - 0.0% 1,030 - - 936 865

Total Professional Svcs 521,653$ 478,040$ 43,613$ 9.1% 460,515$ 17,525$ 427,631$ 402,132$ 407,616$

Total Operations 678,200$ 632,351$ 45,849$ 7.3% 578,490$ 53,861$ 546,564$ 524,477$ 528,207$

Capital Outlay

Building & Improvements -$ -$ -$ - -$ -$ -$ -$ -$

Equipment & Furniture 15,000 - 15,000 - - - - - - Contingency - - - - - - - - -

Total Capital Outlay 15,000$ -$ 15,000$ - -$ -$ -$ -$ -$

7

Public Entity Risk Management Authority (PERMA)OPTIONAL SERVICESFY 2019-20

AGILITYRECOVERY LEXIPOL

Estimated FY 19-20 Law Enforcement Custody Fire FY 19-20

FY 19-20 01/01/18 Membership Total Number of Annual Number of Annual Number of Annual TotalBudget Population Dues Fees Officers Update Beds Update Firefighters Update Fees

1 Adelanto -$ - -$ -$ - -$ - -$ - -$ -$

2 Banning 9,177 - - 1,248 34 7,929 - - - - 7,929

3 Barstow 11,547 24,411 976 - 41 4,179 - - 50 6,392 10,571

4 Blythe 9,177 - - 1,248 28 7,929 - - - - 7,929

5 Canyon Lake - - - - - - - - - - -

6 Cathedral City 15,417 - - 1,248 47 8,154 - - 30 6,015 14,169

7 Coachella 1,248 - - 1,248 - - - - - - -

8 Desert Hot Springs 7,929 - - - 34 7,929 - - - - 7,929

9 Eastvale 1,248 - - 1,248 - - - - - - -

10 Hesperia - - - - - - - - - - -

11 Holtville - - - - - - - - - -

12 ICTC 1,248 - - 1,248 - - - - - - -

13 IVECA - - - - - - - - - - -

14 Jurupa Valley 1,248 - - 1,248 - - - - - - -

15 La Mesa 2,229 - - - - - 4 2,229 - - 2,229

16 March JPA - - - - - - - - - - -

17 MD&MIWMA 1,500 - 1,500 - - - - - - - -

18 Moreno Valley - - - - - - - - - - -

19 Murrieta 10,875 113,541 4,542 1,248 87 5,085 - - - - 5,085

20 Norco - - - - - - - - - - -

21 Perris 3,113 77,837 3,113 - - - - - - - -

22 PS Tramway - - - - - - - - - - -

23 PVVTA - - - - - - - - - - -

24 Rancho Mirage 1,248 - - 1,248 - - - - - - -

25 RTC - - - - - - - - - - -

26 San Jacinto 1,926 48,146 1,926 - - - - - - - -

27 Stanton 2,827 39,470 1,579 1,248 - - - - - - -

28 SunLine Transit 1,248 - - 1,248 - - - - - - -

29 Victorville 14,177 123,701 4,948 - - - - - 54 9,229 9,229

30 VVEDA - - - - - - - - - - -

31 VVTA 2,748 - 1,500 1,248 - - - - - - - 32 Westmorland 93 2,325 93 - - - - - - - -

Total 100,223$ 429,431 20,177$ 14,976$ 271 41,205$ 4 2,229$ 134 21,636$ 65,070$

Note: WeTip Membership Dues are allocated on population at 4¢ per capita.WeTip membership dues for members with no population are a fixed amount.Agility Recovery fees are $104 per month.Lexipol fees are discounted 5% for PERMA members. 2018-19 fees increased 2% from 2018-19 fees.

WETIP

8

Public Entity Risk Management Authority (PERMA)PROGRAM EXPENDITURESFY 2019-20

FY 18-19Budget to


Program Expenditures Budget Budget (Decrease) (Decrease) Actual (Unfavorable) Actual Actual Actual

General Liability

Assessments/Surcharges - -$ -$ - -$ -$ -$ -$ -$ Actuarial Studies 9,050 9,050 - 0.0% 9,050 - 9,050 8,750 8,750 Claims Administration 27,700 27,700 - 0.0% 25,380 2,320 25,386 24,884 25,121 Insurance 2,099,615 1,390,117 709,498 51.0% 1,384,425 5,692 1,154,433 1,061,758 1,045,961

Total General Liability 2,136,365$ 1,426,867$ 709,498$ 49.7% 1,418,855$ 8,012$ 1,188,869$ 1,095,392$ 1,079,832$

Workers' Compensation

Assessments/Surcharges 272,500$ 250,000$ 22,500$ 9.0% 224,373$ 25,627$ 187,228$ 135,760$ 146,305$ Actuarial Studies 9,050 9,050 - 0.0% 9,050 - 9,050 8,750 8,750 Claims Administration 621,989 608,011 13,978 2.3% 607,556 455 555,948 485,673 472,526 Insurance 1,640,000 1,465,500 174,500 11.9% 1,461,910 3,590 1,269,885 1,111,163 1,047,179

Total Workers' Compensation 2,543,539$ 2,332,561$ 210,978$ 9.0% 2,302,889$ 29,672$ 2,022,111$ 1,741,346$ 1,674,760$

Total Program Expenditures 4,679,904$ 3,759,428$ 920,476$ 24.5% 3,721,744$ 37,684$ 3,210,980$ 2,836,738$ 2,754,592$

9

Public Entity Risk Management Authority (PERMA)ALLOCATION OF 2019-20 BUDGETED EXPENDITURESGeneral Liability Program

LimitedFY 2019-20 FY 2019-20 Total

Payroll Payroll Assessments/ + Actuarial + Claims + Insurance = ProgramNo. Member Base % Base % Surcharges Studies Administration Expenditures

1 Adelanto -$ 0.00% -$ 0.00% -$ -$ -$ -$ -$

2 Banning 16,389,782 6.68% 10,000,000 6.77% - 613 1,877 139,928 142,418

3 Barstow 15,598,520 6.35% 10,000,000 6.77% - 613 1,877 133,172 135,662

4 Blythe 4,809,294 1.96% 4,809,294 3.26% - 295 903 41,059 42,257

5 Canyon Lake 494,702 0.20% 494,702 0.34% - 30 93 4,223 4,346

6 Cathedral City 22,999,326 9.37% 10,000,000 6.77% - 613 1,877 198,357 200,847

7 Coachella 5,963,822 2.43% 5,963,822 4.04% - 366 1,119 50,917 52,402

8 Desert Hot Springs 5,517,435 2.25% 5,517,435 3.74% - 338 1,035 47,105 48,478

9 Eastvale 1,385,475 0.56% 1,385,475 0.94% - 85 260 11,828 12,173

10 Hesperia 12,301,998 5.01% 10,000,000 6.77% - 613 1,877 105,028 107,518

11 Holtville 1,268,229 0.52% 1,268,229 0.86% - 78 238 10,828 11,144

12 ICTC 644,765 0.26% 644,765 0.44% - 40 121 5,505 5,666

13 IVECA 200,000 0.08% 200,000 0.14% - 12 38 1,708 1,758

14 Jurupa Valley 1,471,695 0.60% 1,471,695 1.00% - 90 276 12,565 12,931

15 La Mesa 24,012,160 9.78% 10,000,000 6.77% - 613 1,877 205,004 207,494

16 March JPA 1,522,295 0.62% 1,522,295 1.03% - 93 286 12,997 13,376

17 MD&MIWMA 200,000 0.08% 200,000 0.14% - 12 38 1,708 1,758

18 Moreno Valley 25,363,719 10.33% 10,000,000 6.77% - 613 1,877 216,544 219,034

19 Murrieta 26,173,617 10.66% 10,000,000 6.77% - 613 1,877 223,458 225,948

20 Norco 4,477,512 1.82% 4,477,512 3.03% - 275 840 38,226 39,341

21 Perris 7,175,027 2.92% 7,175,027 4.86% - 440 1,346 62,257 64,043

22 PS Tramway 4,906,556 2.00% 4,906,556 3.32% - 301 921 41,889 43,111

23 PVVTA 200,000 0.08% 200,000 0.14% - 12 38 1,708 1,758

24 Rancho Mirage 7,250,967 2.95% 7,250,967 4.91% - 445 1,361 62,904 64,710

25 RTC 589,513 0.24% 589,513 0.40% - 36 111 5,034 5,181

26 San Jacinto 3,824,668 1.56% 3,824,668 2.59% - 234 718 32,654 33,606

27 Stanton 3,474,381 1.42% 3,474,381 2.35% - 213 652 29,663 30,528

28 SunLine Transit 16,474,031 6.71% 10,000,000 6.77% - 613 1,877 140,647 143,137

29 Victorville 28,539,240 11.63% 10,000,000 6.77% - 613 1,877 243,655 246,145

30 VVEDA 200,000 0.08% 200,000 0.14% - 12 38 1,708 1,758

31 VVTA 1,405,607 0.57% 1,405,607 0.95% - 86 264 11,999 12,349 32 Westmorland 625,103 0.25% 625,103 0.42% - 40 111 5,337 5,488

Total 245,459,439$ 100.00% 147,607,046$ 100.00% -$ 9,050$ 27,700$ 2,099,615$ 2,136,365$

Allocation of Direct Program and Administrative Expenditures are based on the payroll base, limited to $10 million, with the following exceptions: 1. Assessments/Surcharges based on subject policy year and premium contribution. 2. Insurance based on the full payroll base. Non-profit endorsements, $1,000 each, are allocated to the respective members: Cathedral City - 2, Perris - 1 and Rancho Mirage - 1. 3. Administrative Expenditures (Fixed) - 25% of the expenditures are equally shared.


10

Public Entity Risk Management Authority (PERMA)ALLOCATION OF 2019-20 BUDGETED EXPENDITURESGeneral Liability Program (continued)

Total Total25% + 75% = 100% + Optional = Administrative + Program = 2019-20 2018-19 2017-18 2016-17

No. Member Fixed Variable Total Services Expenditures Expenditures

1 Adelanto -$ -$ -$ -$ -$ -$ -$ 47,215$ 41,289$ 44,767$

2 Banning 11,229 70,745 81,974 9,177 91,151 142,418 233,569 179,081 162,239 151,044

3 Barstow 11,229 70,745 81,974 11,547 93,521 135,662 229,183 181,728 161,136 145,494

4 Blythe 11,229 34,024 45,253 9,177 54,430 42,257 96,687 82,737 74,790 71,349

5 Canyon Lake 11,229 3,499 14,728 - 14,728 4,346 19,074 16,330 15,033 13,659

6 Cathedral City 11,229 70,745 81,974 15,417 97,391 200,847 298,238 220,374 201,540 185,770

7 Coachella 11,229 42,191 53,420 1,248 54,668 52,402 107,070 87,447 79,229 77,090

8 Desert Hot Springs 11,229 39,033 50,262 7,929 58,191 48,478 106,669 76,511 64,284 56,699

9 Eastvale 11,229 9,801 21,030 1,248 22,278 12,173 34,451 22,090 20,442 19,135

10 Hesperia 11,229 70,745 81,974 - 81,974 107,518 189,492 149,380 139,152 135,496

11 Holtville 11,229 8,972 20,201 - 20,201 11,144 31,345 26,437 24,067 22,693

12 ICTC 11,229 4,561 15,790 1,248 17,038 5,666 22,704 18,474 17,108 15,782

13 IVECA 11,229 1,415 12,644 - 12,644 1,758 14,402 12,662 12,130 11,451

14 Jurupa Valley 11,229 10,411 21,640 1,248 22,888 12,931 35,819 27,676 23,923 23,056

15 La Mesa 11,229 70,745 81,974 2,229 84,203 207,494 291,697 217,229 197,264 184,347

16 March JPA 11,229 10,769 21,998 - 21,998 13,376 35,374 28,819 28,973 26,698

17 MD&MIWMA 11,229 1,415 12,644 1,500 14,144 1,758 15,902 14,162 13,630 12,951

18 Moreno Valley 11,229 70,745 81,974 - 81,974 219,034 301,008 216,071 203,104 192,376

19 Murrieta 11,229 70,745 81,974 10,875 92,849 225,948 318,797 236,506 218,733 205,148

20 Norco 11,229 31,676 42,905 - 42,905 39,341 82,246 63,210 56,687 50,470

21 Perris 11,229 50,760 61,989 3,113 65,102 64,043 129,145 98,340 87,699 78,716

22 PS Tramway 11,229 34,712 45,941 - 45,941 43,111 89,052 68,819 67,862 61,484

23 PVVTA 11,229 1,415 12,644 - 12,644 1,758 14,402 12,662 12,130 11,451

24 Rancho Mirage 11,229 51,297 62,526 1,248 63,774 64,710 128,484 96,925 95,514 89,584

25 RTC 11,229 4,171 15,400 - 15,400 5,181 20,581 18,824 17,793 15,909

26 San Jacinto 11,229 27,058 38,287 1,926 40,213 33,606 73,819 54,813 45,266 41,993

27 Stanton 11,229 24,580 35,809 2,827 38,636 30,528 69,164 52,387 45,740 42,096

28 SunLine Transit 11,229 70,745 81,974 1,248 83,222 143,137 226,359 178,853 164,551 154,591

29 Victorville 11,229 70,745 81,974 14,177 96,151 246,145 342,296 246,197 221,034 192,382

30 VVEDA 11,229 1,415 12,644 - 12,644 1,758 14,402 12,662 12,130 11,451

31 VVTA 11,229 9,944 21,173 2,748 23,921 12,349 36,270 28,531 24,662 21,919 32 Westmorland 11,229 4,428 15,657 93 15,750 5,488 21,238 20,110 19,434 18,411

348,099$ 1,044,252$ 1,392,351$ 100,223$ 1,492,574$ 2,136,365$ 3,628,939$ 2,813,262$ 2,568,568$ 2,385,462$

2019-20 Expenditure Allocations are included in the 2019-20 deposit premiums. See 2019-20 Annual Premiums document - page 3.

ComparisonTotal ExpendituresAdministrative Expenditures

11

Public Entity Risk Management Authority (PERMA)ALLOCATION OF 2019-20 BUDGETED EXPENDITURESWorkers' Compensation Program

LimitedFY 2019-20 FY 2019-20 Total

Payroll Payroll Assessments/ + Actuarial + Claims + Insurance = ProgramNo. Member Base % Base % Surcharges Studies Administration Expenditures

1 Adelanto -$ 0.00% - 0.00% -$ -$ -$ -$ -$

2 Banning 16,389,782 7.60% 10,000,000 8.04% 23,823 728 26,588 117,914 169,053

3 Barstow 15,598,520 7.23% 10,000,000 8.04% 23,823 728 60,770 130,526 215,847

4 Blythe 4,809,294 2.23% 4,809,294 3.87% 11,457 350 11,024 40,644 63,475

5 Cathedral City 22,999,326 10.66% 10,000,000 8.04% 23,823 728 57,732 201,694 283,977

6 Coachella 5,963,822 2.76% 5,963,822 4.79% 14,207 434 13,673 37,378 65,692

7 Desert Hot Springs 5,517,435 2.56% 5,517,435 4.44% 13,144 401 35,703 44,556 93,804

8 Hesperia 12,301,998 5.70% 10,000,000 8.04% 23,823 728 21,528 78,831 124,910

9 Holtville 1,268,229 0.59% 1,268,229 1.02% 3,021 92 3,038 9,751 15,902

10 La Mesa 24,012,160 11.13% 10,000,000 8.04% - 728 71,334 210,800 282,862

11 Murrieta 34,999,253 16.23% 10,000,000 8.04% 23,823 728 135,213 305,096 464,860

12 Norco 4,477,512 2.08% 4,477,512 3.60% 10,667 326 14,433 28,650 54,076

13 Perris 7,175,027 3.33% 7,175,027 5.77% 17,093 522 5,188 47,166 69,969

14 Rancho Mirage 7,250,967 3.36% 7,250,967 5.83% 17,274 528 12,154 45,743 75,699

15 San Jacinto 3,824,668 1.77% 3,824,668 3.07% 9,111 278 6,485 22,495 38,369

16 Stanton 3,474,381 1.61% 3,474,381 2.79% 8,277 253 5,836 21,737 36,103

17 SunLine Transit 16,474,031 7.64% 10,000,000 8.04% 23,823 728 88,116 108,276 220,943

18 Victorville 28,539,240 13.23% 10,000,000 8.04% 23,823 728 43,299 183,114 250,964 19 Westmorland 625,103 0.29% 625,103 0.50% 1,488 42 9,875 5,629 17,034

Total 215,700,748$ 100.00% 124,386,438$ 100.00% 272,500$ 9,050$ 621,989$ 1,640,000$ 2,543,539$

Allocation of Direct Program and Administrative Expenditures are based on the payroll base,limited to $10 million, with the following exceptions: 1. La Mesa files the state's self-insurers annual report separately and pays the assessments directly. York 2. Claims Administration based on 3 years average of claim volume. Exception, Hesperia based on York contract. 3. Insurance based on the safety & non-safety payroll base. Barstow Adelanto Hesperia 4. Administrative Expenditures (Fixed) - $1,000 per member. Cathedral City Banning

Coachella BlytheDesert Hot Springs La MesaHoltville PerrisMurrieta San JacintoNorco StantonRancho MirageSunLine TransitVictorvilleWestmorland

CorVelAdminSure

Work Comp Third Party Administrators (TPAs)


12

Public Entity Risk Management Authority (PERMA)ALLOCATION OF 2019-20 BUDGETED EXPENDITURESWorkers' Compensation Program (continued)

Total Total$1,000 per + Variable = Administrative + Program = 2019-20 2018-19 2017-18 2016-17

No. Member Fixed Expenditures Expenditures

1 Adelanto -$ -$ -$ -$ -$ 30,114$ 24,198$ 26,250$

2 Banning 1,000 4,444 5,444 169,053 174,497 154,184 132,866 129,631

3 Barstow 1,000 4,444 5,444 215,847 221,291 211,627 155,454 150,116

4 Blythe 1,000 2,137 3,137 63,475 66,612 61,974 54,093 53,890

5 Cathedral City 1,000 4,444 5,444 283,977 289,421 246,499 215,177 207,946

6 Coachella 1,000 2,651 3,651 65,692 69,343 68,440 56,858 64,052

7 Desert Hot Springs 1,000 2,452 3,452 93,804 97,256 70,549 56,459 45,702

8 Hesperia 1,000 4,444 5,444 124,910 130,354 118,337 101,033 102,099

9 Holtville 1,000 564 1,564 15,902 17,466 15,594 14,979 16,054

10 La Mesa 1,000 4,444 5,444 282,862 288,306 263,849 229,328 222,286

11 Murrieta 1,000 4,444 5,444 464,860 470,304 440,074 397,828 320,340

12 Norco 1,000 1,990 2,990 54,076 57,066 53,847 47,007 43,877

13 Perris 1,000 3,189 4,189 69,969 74,158 61,313 49,515 44,277

14 Rancho Mirage 1,000 3,223 4,223 75,699 79,922 69,768 63,585 63,881

15 San Jacinto 1,000 1,700 2,700 38,369 41,069 34,736 25,214 23,780

16 Stanton 1,000 1,544 2,544 36,103 38,647 28,123 22,495 21,593

17 SunLine Transit 1,000 4,444 5,444 220,943 226,387 208,180 180,952 165,682

18 Victorville 1,000 4,444 5,444 250,964 256,408 249,567 210,689 181,259 19 Westmorland 1,000 280 1,280 17,034 18,314 13,926 11,285 10,867

18,000$ 55,282$ 73,282$ 2,543,539$ 2,616,821$ 2,400,701$ 2,049,015$ 1,893,582$

2019-20 Expenditure Allocations are included in the 2019-20 Annual Premiums - page 5.

ComparisonTotal ExpendituresAdministrative Expenditures

13




AGENDA ITEM 7H: 2019-20 Annual Premiums


RECOMMENDATION:Approve the 2019-20 Annual Premiums as presented and grant the General Managerauthority to bind the Property/Auto Physical Damage, Crime, and Cyber Liability coverages.

FISCAL IMPLICATIONS:Staff will review the fiscal implications in detail at the meeting; however, a comparison ofthe 2019-20 premiums to the 2018-19 premiums and the 2019-20 premiums presented inMarch are provided below:

Proposed Actual Increase/(Decrease) 2019-20 2018-19 $ %

Funding:Liability $ 7,163,930 $ 5,844,991 $ 1,318,939 22.6%Workers’ Compensation 12,915,368 12,252,264 663,104 5.4%Crime 55,566 55,728 (162) -0.3%Cyber Liability 28,098 23,014 5,084 22.1%EPL (ERMA) 1,108,572 1,086,865 21,707 2.0%Property 1,785,695 1,485,346 300,349 20.2%

Total $ 23,057,229 $ 20,748,208 $ 2,309,021 11.1%

Proposed March Draft Increase/(Decrease) 2019-20 2019-20 $ %

Funding:Liability $ 7,163,930 $ 7,172,602 $ (8,672) -0.1%Workers’ Compensation 12,915,368 13,013,814 (98,446) -0.8%Crime 55,566 55,566 - 0.0%Cyber Liability 28,098 28,098 - 0.0%EPL (ERMA) 1,108,572 1,236,909 (128,337) -10.4%Property 1,785,695 1,644,211 141,484 8.6%

Total $ 23,057,229 $ 23,151,200 $ (93,971) -0.4%

BACKGROUND & OVERVIEW:The 2019-20 Annual Premiums are being submitted for the Board of Directors’consideration.

The enclosed document includes the draft 2019-20 deposit premiums for the Liability andWorkers’ Compensation programs and the projected 2019-20 premiums for the Crime,Cyber Liability, ERMA, and Property programs.

The deposit premiums for the Liability and Workers’ Compensation programs are calculatedby adding the administrative and program expenditure allocations from the draft 2019-20Budget to the actuarially determined loss funding at the 72.5% confidence level for theLiability program and 80% confidence level for the Workers’ Compensation program.

The Net Position of the Liability program has decreased significantly the last few years dueto an increase in Claim Liabilities, so the confidence level of the loss funding is presentedat 72.5% - which is the midpoint between the 65% and 80% confidence levels. In previousyears, the funding was approved at the 65% confidence level.

Attached is a History of Net Position and Claim Liabilities Analysis showing the significantincrease in Claim Liabilities resulting in a significantly reduced Net Position necessitatingan increase in the confidence level of the Liability program premiums. Staff will review atthe meeting.

The deposit premiums are based on this year’s selected self-insured retentions.

The actual 2018 calendar year payroll is the payroll base used in the draft 2019-20 AnnualBudget and draft 2019-20 Annual Premiums.

Under Premium Information (starting on page 11), comparisons of the various factors usedto develop the premiums: 1) property/vehicle values, 2) member payroll, 3) experiencemodification factors, and 4) funding rates (including excess) are provided. Thesecomparisons are designed to assist the member to determine which factor(s) are causingthe changes in premiums. For example, a member may be experiencing a 10% increasein its Liability deposit premium, which is due to a 5% increase in payroll, 10% increase inthe ex-mod factor, and a 5% decrease in funding rates.

Under Supplemental Information (starting on page 15), a schedule of the return ofcontributions to date by member is provided. In December 2018, the Board declared areturn of contributions and members receiving a net return, received a check in December;but members owing a net assessment, would be billed in 2019-20. A column has beenadded to the schedule showing the total net assessment of $105,708 that will be billed tothe members owing a net assessment.

On March 7, 2019 the Executive Committee approved draft 2019-20 Annual Premiumswhich was then electronically distributed to the membership. Since that time, the following

Page -2-

revisions have been made to the premiums being presented today:

Program Increase /(Decrease)

Comments

General Liability $(8,672) • Decrease in budgeted expenditures $(8,329)• Decrease in pool funding $(343) as Cathedral

City submitted revised 2018 payroll

Workers’ Comp $(98,446) • Decrease in budgeted expenditures $(94,807)• Decrease in loss funding $(3,639) as Cathedral

City submitted revised 2018 payroll

EPL $(128,337) • Adjusted to ERMA’s updated proposedpremiums with the removal of Adelanto

• ERMA will approve premiums on 6/11/19

Property $141,484 • Deleted $10,827,893 in property values• Added $19,609,028 in vehicle values• Increased budgeted property rate increase

from 10% to 18.1%• Rates will be finalized in June 2019

Total $(93,971)

REFERENCE MATERIALS ATTACHED:History of Net Position - Liability Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1Claim Liabilities Analysis - Liability Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 22019-20 Annual Premiums - Proposed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . enclosed

Page -3-

General Liability Program

History of Net Position

June

1995

Assets 9.79$ 8.04$ ‐18% 9.56$ 19% 18.02$ 88% 21.41$ 19% 22.38$ 5% 20.21$ ‐10% 17.70$ ‐12% 17.34$ ‐2%

Liabilities 8.29$ 2.80$ ‐66% 3.64$ 30% 4.53$ 24% 5.17$ 14% 4.76$ ‐8% 6.78$ 42% 6.73$ ‐1% 15.70$ 133%

Net Position 1.50$ 5.24$ 249% 5.92$ 13% 13.49$ 128% 16.24$ 20% 17.62$ 8% 13.43$ ‐24% 10.97$ ‐18% 1.64$ ‐85%

Dollars in Millions

June March

2018 2019

June

2000

June

2005

June

2010

June

2015

June

2016

June

2017

Agenda Item 7H - Page 1 of 2

Net Position Analysis

(A) (B)

30‐Jun‐18 31‐Mar‐19 $ %

Assets 17,703,024$ 17,342,172$ (360,852)$ ‐2%

Claim Liabilities 6,601,266$ 15,523,011$ 8,921,745$ 135%

Other Liabilities 133,353$ 174,950$ 41,597$ 31%

Net Position 10,968,405$ 1,644,211$ (9,324,194)$ ‐85%

Claim Liabilities Analysis

Claim Claim Claim Claim

Range Count Liabilities Count Liabilities # % $ %

$0 ‐ $125,000 21 1,559,127$ 8 939,855$ (13) ‐62% (619,272)$ ‐38%

$125,001 ‐ $250,000 11 1,785,408$ 10 2,051,009$ (1) ‐9% 265,601$ 16%

$250,001 ‐ $500,000 7 1,704,922$ 6 2,802,393$ (1) ‐14% 1,097,471$ 68%

$500,001 ‐ $1,000,000 3 1,551,809$ 9 2,427,969$ 6 200% 876,160$ 54%

Total 42 6,601,266$ 33 8,221,226$ (9) ‐21% 1,619,960$ 25%

Claim Claim

Range Count Liabilities

$0 ‐ $125,000 6 868,559$

$125,001 ‐ $250,000 3 1,560,666$

$250,001 ‐ $500,000 3 2,569,652$

$500,001 ‐ $1,000,000 8 2,302,908$

Total 20 7,301,785$

Claim Claim

Range Count Liabilities # % $ %

$0 ‐ $125,000 14 1,808,414$ (7) ‐33% 249,287$ 16%

$125,001 ‐ $250,000 13 3,611,675$ 2 18% 1,826,267$ 102%

$250,001 ‐ $500,000 9 5,372,045$ 2 29% 3,667,123$ 215%

$500,001 ‐ $1,000,000 17 4,730,877$ 14 467% 3,179,068$ 205%

Total 53 15,523,011$ 11 26% 8,921,745$ 135%

30‐Jun‐18 31‐Mar‐19

New Claims Rcvd 2018‐19

Claim Count

Claim Count Claim Liabilities

Change in 6/30/18 Claims Only

Change in Claims from 6/30/18 to 3/31/19

Increase / (Decrease)

(G)

(H) (I)

Claim Liabilities

Total Claims


(C)

(D) (E) (F)

Agenda Item 7H - Page 2 of 2

Public Entity Risk Management Authority(PERMA)

ANNUAL PREMIUMSFY 2019-20

PROPOSED(June 6, 2019)

PERMAFY 2019-20

Annual Premiums

Table of Contents))))))))))))))))))))))))))))))

Premiums by Program Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Premiums by Program Detail

General Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Deposit Premiums At Each Self-Insured Retention Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Crime Coverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Cyber Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Employment Practices Liability (ERMA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Property and Auto Physical Damage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Premium Information

Property and Vehicle Values . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Payroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Experience Modification Factors

General Liability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Workers’ Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Funding Rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Supplemental Information

Return of Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Public Entity Risk Management Authority (PERMA)2019-20 PREMIUMS BY PROGRAM SUMMARY

General Crime Cyber EPLLiability Member Deposit / Pool / Coverage Liability (ERMA) Property

Member (72.5% Conf) Non-Risk Sharing Risk Sharing Total TOTAL

Adelanto -$ -$ -$ -$ -$ -$ -$ -$ -$

Banning 463,355 672,391 242,950 915,341 2,453 1,657 155,132 212,109 1,750,047

Barstow 426,890 823,774 305,155 1,128,929 2,394 1,420 123,036 96,895 1,779,564

Blythe 171,994 239,055 90,949 330,004 1,176 1,420 - 63,143 567,737

Canyon Lake 30,999 - - - 798 710 2,341 3,365 38,213

Cathedral City 433,743 1,291,724 420,925 1,712,649 - - 118,276 - 2,264,668

Coachella 155,052 277,319 97,575 374,894 2,864 710 28,224 73,079 634,823

Desert Hot Springs 258,450 207,057 340,449 547,506 3,125 710 26,112 36,386 872,289

Eastvale 68,037 - - - 798 710 6,557 16,064 92,166

Hesperia 491,581 518,643 183,154 701,797 2,234 1,787 51,780 111,603 1,360,782

Holtville 61,443 56,410 23,209 79,619 798 710 6,002 27,283 175,855

ICTC 38,089 - - - - 710 3,051 78,374 120,224

IVECA 19,356 - - - - 710 - 1,745 21,811

Jurupa Valley 111,330 - - - 1,596 710 6,965 6,320 126,921

La Mesa 607,149 - 413,068 413,068 3,570 1,420 113,640 94,160 1,233,007

March JPA 68,500 - - - 798 1,420 - 26,710 97,428

MD&MIWMA 20,856 - - - - 710 - - 21,566

Moreno Valley 484,176 - - - 3,856 1,911 - 213,358 703,301

Murrieta 657,555 2,177,973 692,032 2,870,005 12,075 781 92,549 58,543 3,691,508

Norco 186,813 - 79,340 79,340 - 710 - 43,668 310,531

Perris 390,989 237,378 98,324 335,702 2,856 710 33,956 53,920 818,133

PS Tramway 161,927 - - - 1,155 710 23,221 53,799 240,812

PVVTA 19,356 - - - - 710 - 10,322 30,388

Rancho Mirage 191,134 289,598 109,404 399,002 4,166 1,420 - 108,799 704,521

RTC 34,501 - - - 798 710 2,790 - 38,799

San Jacinto 156,191 86,688 89,892 176,580 882 710 18,101 49,754 402,218

Stanton 164,187 45,281 98,849 144,130 2,033 710 16,443 31,416 358,919

SunLine Transit 411,718 1,136,447 342,083 1,478,530 2,747 710 138,680 269,854 2,302,239

Victorville 752,051 826,091 340,508 1,166,599 - - 135,064 - 2,053,714

VVEDA 19,356 - - - - 710 - - 20,066

VVTA 71,369 - - - 798 710 6,652 25,807 105,336

Westmorland 35,783 19,829 41,844 61,673 798 710 - 18,415 117,379 PERMA - - - - 798 662 - 804 2,264

Total Funding 7,163,930$ 8,905,658$ 4,009,710$ 12,915,368$ 55,566$ 28,098$ 1,108,572$ 1,785,695$ 23,057,229$

Workers' Compensation (80% Conf)

1

Public Entity Risk Management Authority (PERMA)2019-20 DEPOSIT PREMIUMSGeneral Liability Program

$ 1.78 $ 1.10 $ 2.44 $ 2.66 $ 1.80 $ 1.49 $ 1.11 $ 3.50 $ 3.85 $ 4.31 Funding RatesCapped Modified

FY 2019-20 FY 19-20 FY 2019-20 Self-Insured $0 to $5,000 $10,000 to $25,000 to $50,000 to $75,000 $100,000 $125,000 to $250,000 to $500,000 toPayroll x Ex-Mod = Payroll Retention $5,000 $10,000 $25,000 $50,000 $75,000 $100,000 $125,000 $250,000 $500,000 $1,000,000

No. Member Base Factor (000) % (SIR) Pool Pool Pool Pool Pool Pool Pool Pool Pool Pool Subtotal

1 Adelanto -$ - -$ - - -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

2 Banning 16,389,782 0.873 14,308 5.82% $50,000 - - - 25,754 21,319 15,882 50,078 55,086 61,667 229,786

3 Barstow 15,598,520 1.087 16,956 6.90% $125,000 - - - - - - 59,346 65,281 73,080 197,707

4 Blythe 4,809,294 0.975 4,689 1.91% $50,000 - - - 8,440 6,987 5,205 16,412 18,053 20,210 75,307

5 Canyon Lake 494,702 1.002 496 0.20% $0 883 546 1,210 1,319 893 739 551 1,736 1,910 2,138 11,925

6 Cathedral City 22,999,326 0.722 16,606 6.75% $250,000 - - - - - - - 63,933 71,572 135,505

7 Coachella 5,963,822 0.690 4,115 1.67% $125,000 - - - - - - 14,403 15,843 17,736 47,982

8 Desert Hot Springs 5,517,435 1.300 7,173 2.92% $10,000 - 17,502 19,080 12,911 10,688 7,962 25,106 27,616 30,916 151,781

9 Eastvale 1,385,475 1.008 1,397 0.57% $0 2,487 1,537 3,409 3,716 2,515 2,082 1,551 4,890 5,378 6,021 33,586

10 Hesperia 12,301,998 1.529 18,810 7.65% $50,000 - - - - 33,858 28,027 20,879 65,835 72,419 81,071 302,089

11 Holtville 1,268,229 0.987 1,252 0.51% $0 2,229 1,377 3,055 3,330 2,254 1,865 1,390 4,382 4,820 5,396 30,098

12 ICTC 644,765 0.992 640 0.26% $0 1,139 704 1,562 1,702 1,152 954 710 2,240 2,464 2,758 15,385

13 IVECA 200,000 1.029 206 0.08% $0 367 227 503 548 371 307 229 721 793 888 4,954

14 Jurupa Valley 1,471,695 2.134 3,141 1.28% $0 5,591 3,455 7,664 8,355 5,654 4,680 3,487 10,994 12,093 13,538 75,511

15 La Mesa 24,012,160 0.818 19,642 7.99% $50,000 - - - - 35,356 29,267 21,803 68,747 75,622 84,657 315,452

16 March JPA 1,522,295 0.905 1,378 0.56% $0 2,453 1,516 3,362 3,665 2,480 2,053 1,530 4,823 5,305 5,939 33,126

17 MD&MIWMA 200,000 1.029 206 0.08% $0 367 227 503 548 371 307 229 721 793 888 4,954

18 Moreno Valley 25,363,719 0.885 22,447 9.13% $250,000 - - - - - - - - 86,421 96,747 183,168

19 Murrieta 26,173,617 1.110 29,053 11.82% $125,000 - - - - - - - 101,686 111,854 125,218 338,758

20 Norco 4,477,512 2.003 8,968 3.65% $125,000 - - - - - - - 31,388 34,527 38,652 104,567

21 Perris 7,175,027 1.518 10,892 4.43% $0 19,388 11,981 26,576 28,973 19,606 16,229 12,090 38,122 41,934 46,945 261,844

22 PS Tramway 4,906,556 0.702 3,444 1.40% $10,000 - - 8,403 9,161 6,199 5,132 3,823 12,054 13,259 14,844 72,875

23 PVVTA 200,000 1.029 206 0.08% $0 367 227 503 548 371 307 229 721 793 888 4,954

24 Rancho Mirage 7,250,967 0.741 5,373 2.19% $125,000 - - - - - - - 18,806 20,686 23,158 62,650

25 RTC 589,513 0.983 579 0.24% $0 1,031 637 1,413 1,540 1,042 863 643 2,027 2,229 2,495 13,920

26 San Jacinto 3,824,668 1.341 5,129 2.09% $50,000 - - - - 9,232 7,642 5,693 17,952 19,747 22,106 82,372

27 Stanton 3,474,381 1.461 5,076 2.06% $25,000 - - - 13,502 9,137 7,563 5,634 17,766 19,543 21,878 95,023

28 SunLine Transit 16,474,031 0.965 15,897 6.47% $125,000 - - - - - - - 55,640 61,203 68,516 185,359

29 Victorville 28,539,240 0.894 25,514 10.38% $50,000 - - - - 45,925 38,016 28,321 89,299 98,229 109,965 409,755

30 VVEDA 200,000 1.029 206 0.08% $0 367 227 503 548 371 307 229 721 793 888 4,954

31 VVTA 1,405,607 1.039 1,460 0.59% $0 2,599 1,606 3,562 3,884 2,628 2,175 1,621 5,110 5,621 6,293 35,099 32 Westmorland 625,103 0.968 605 0.25% $0 1,077 666 1,476 1,609 1,089 901 672 2,118 2,329 2,608 14,545

Total 245,459,439$ 245,864$ 100.00% 40,345$ 24,933$ 81,206$ 102,028$ 227,609$ 188,410$ 140,363$ 723,844$ 946,577$ 1,059,676$ 3,534,991$

Note: Funding Rates are per $1,000 of payroll.

Deposit Premium Calculation: Payroll x Ex-Mod / 1,000 = Modified Payroll Modified Payroll x Funding Rate for each pool, then sum together = Pool Funding Pool Funding + Expenditures = Deposit Premium

Pool Funding (Claim Payments) @ 72.5% Confidence Level

2

Public Entity Risk Management Authority (PERMA)2019-20 DEPOSIT PREMIUMSGeneral Liability Program (continued)

2019-20 2019-20 2018-19Pool Funding + Budgeted = Deposit Deposit Increase / (Decrease)

No. Member Expenditures Premium Premium $ %

1 Adelanto -$ -$ -$ 83,026$ (83,026)$ -100.0%

2 Banning 229,786 233,569 463,355 424,218 39,137 9.2%

3 Barstow 197,707 229,183 426,890 384,106 42,784 11.1%

4 Blythe 75,307 96,687 171,994 170,587 1,407 0.8%

5 Canyon Lake 11,925 19,074 30,999 26,677 4,322 16.2%

6 Cathedral City 135,505 298,238 433,743 313,229 120,514 38.5%

7 Coachella 47,982 107,070 155,052 140,047 15,005 10.7%

8 Desert Hot Springs 151,781 106,669 258,450 179,504 78,946 44.0%

9 Eastvale 33,586 34,451 68,037 39,994 28,043 70.1%

10 Hesperia 302,089 189,492 491,581 399,885 91,696 22.9%

11 Holtville 30,098 31,345 61,443 53,119 8,324 15.7%

12 ICTC 15,385 22,704 38,089 30,212 7,877 26.1%

13 IVECA 4,954 14,402 19,356 16,997 2,359 13.9%

14 Jurupa Valley 75,511 35,819 111,330 77,333 33,997 44.0%

15 La Mesa 315,452 291,697 607,149 560,621 46,528 8.3%

16 March JPA 33,126 35,374 68,500 56,762 11,738 20.7%

17 MD&MIWMA 4,954 15,902 20,856 18,497 2,359 12.8%

18 Moreno Valley 183,168 301,008 484,176 386,906 97,270 25.1%

19 Murrieta 338,758 318,797 657,555 478,280 179,275 37.5%

20 Norco 104,567 82,246 186,813 135,692 51,121 37.7%

21 Perris 261,844 129,145 390,989 283,950 107,039 37.7%

22 PS Tramway 72,875 89,052 161,927 129,836 32,091 24.7%

23 PVVTA 4,954 14,402 19,356 16,997 2,359 13.9%

24 Rancho Mirage 62,650 128,484 191,134 148,671 42,463 28.6%

25 RTC 13,920 20,581 34,501 33,156 1,345 4.1%

26 San Jacinto 82,372 73,819 156,191 108,984 47,207 43.3%

27 Stanton 95,023 69,164 164,187 115,799 48,388 41.8%

28 SunLine Transit 185,359 226,359 411,718 378,980 32,738 8.6%

29 Victorville 409,755 342,296 752,051 544,466 207,585 38.1%

30 VVEDA 4,954 14,402 19,356 16,997 2,359 13.9%

31 VVTA 35,099 36,270 71,369 55,474 15,895 28.7%32 Westmorland 14,545 21,238 35,783 35,989 (206) -0.6%

Total 3,534,991$ 3,628,939$ 7,163,930$ 5,844,991$ 1,318,939$ 22.6%

Note: Budgeted Expenditures are from the FY 2019-20 Annual Budget - page 11.

ComparisonDeposit Premium @ 72.5% Confidence Level

3

Public Entity Risk Management Authority (PERMA)2019-20 DEPOSIT PREMIUMSGeneral Liability Program (continued)

No. Member $ 0 $ 5,000 $ 10,000 $ 25,000 $ 50,000 $ 75,000 $ 100,000 $ 125,000 $ 250,000 $ 500,000

1 Adelanto - - - - - - - - - -

2 Banning 577,533 552,065 536,326 501,414 463,355 437,601 416,282 400,400 350,322 295,236

3 Barstow 636,806 606,624 587,972 546,599 501,496 470,975 445,711 426,890 367,544 302,263

4 Blythe 209,412 201,066 195,908 184,467 171,994 163,554 156,567 151,362 134,950 116,897

5 Canyon Lake 30,999 30,116 29,570 28,360 27,041 26,148 25,409 24,858 23,122 21,212

6 Cathedral City 697,448 667,889 649,622 609,103 564,931 535,040 510,297 491,864 433,743 369,810

7 Coachella 205,997 198,672 194,145 184,104 173,158 165,751 159,620 155,052 140,649 124,806

8 Desert Hot Springs 279,108 266,340 258,450 240,948 221,868 208,957 198,269 190,307 165,201 137,585

9 Eastvale 68,037 65,550 64,013 60,604 56,888 54,373 52,291 50,740 45,850 40,472

10 Hesperia 641,685 608,203 587,512 541,616 491,581 457,723 429,696 408,817 342,982 270,563

11 Holtville 61,443 59,214 57,837 54,782 51,452 49,198 47,333 45,943 41,561 36,741

12 ICTC 38,089 36,950 36,246 34,684 32,982 31,830 30,876 30,166 27,926 25,462

13 IVECA 19,356 18,989 18,762 18,259 17,711 17,340 17,033 16,804 16,083 15,290

14 Jurupa Valley 111,330 105,739 102,284 94,620 86,265 80,611 75,931 72,444 61,450 49,357

15 La Mesa 763,892 728,929 707,323 659,397 607,149 571,793 542,526 520,723 451,976 376,354

16 March JPA 68,500 66,047 64,531 61,169 57,504 55,024 52,971 51,441 46,618 41,313

17 MD&MIWMA 20,856 20,489 20,262 19,759 19,211 18,840 18,533 18,304 17,583 16,790

18 Moreno Valley 840,636 800,680 775,988 721,217 661,508 621,103 587,657 562,741 484,176 397,755

19 Murrieta 1,017,230 965,516 933,558 862,669 785,388 733,093 689,804 657,555 555,869 444,015

20 Norco 297,836 281,873 272,008 250,126 226,271 210,129 196,767 186,813 155,425 120,898

21 Perris 390,989 371,601 359,620 333,044 304,071 284,465 268,236 256,146 218,024 176,090

22 PS Tramway 171,845 165,715 161,927 153,524 144,363 138,164 133,032 129,209 117,155 103,896

23 PVVTA 19,356 18,989 18,762 18,259 17,711 17,340 17,033 16,804 16,083 15,290

24 Rancho Mirage 257,651 248,087 242,177 229,067 214,775 205,104 197,098 191,134 172,328 151,642

25 RTC 34,501 33,470 32,833 31,420 29,880 28,838 27,975 27,332 25,305 23,076

26 San Jacinto 197,121 187,991 182,349 169,834 156,191 146,959 139,317 133,624 115,672 95,925

27 Stanton 191,191 182,156 176,572 164,187 150,685 141,548 133,985 128,351 110,585 91,042

28 SunLine Transit 608,525 580,228 562,741 523,952 481,666 453,051 429,364 411,718 356,078 294,875

29 Victorville 955,652 910,237 882,172 819,918 752,051 706,126 668,110 639,789 550,490 452,261

30 VVEDA 19,356 18,989 18,762 18,259 17,711 17,340 17,033 16,804 16,083 15,290

31 VVTA 71,369 68,770 67,164 63,602 59,718 57,090 54,915 53,294 48,184 42,563

32 Westmorland 35,783 34,706 34,040 32,564 30,955 29,866 28,965 28,293 26,175 23,846

bold = current retention level

2019-20 DEPOSIT PREMIUMS AT EACH SELF-INSURED RETENTION LEVEL @ 72.5% Confidence Level

4

Public Entity Risk Management Authority (PERMA)2019-20 DEPOSIT PREMIUMSWorkers' Compensation Program

$ 24.45 $ 11.64 $ 6.84 $ 3.96 $ 2.42 $ 5.02 Funding RatesCapped Modified Capped Modified

FY 2019-20 FY 19-20 FY 19-20 FY 19-20 FY 19-20 Self-Insured $ 0 to $ 50,000 to $ 100,000 to $ 150,000 to $ 200,000 to $250,00 to 2019-20 2019-20Payroll x Ex-Mod = Payroll x Ex-Mod = Payroll Retention $ 50,000 $ 100,000 $ 150,000 $ 200,000 $ 250,000 $500,000 + Budgeted = Deposit

No. Member Base Factor (000) Factor (000) (SIR) Layer Layer/Pool Layer/Pool Layer/Pool Layer/Pool Pool Total Expenditures Premium

1 Adelanto -$ - -$ - - - -$ -$ -$ -$ -$ -$ -$ -$ -$

2 Banning 16,389,782 0.832 13,636 - - $ 250,000 333,400 158,723 93,270 53,999 32,999 68,453 740,844 174,497 915,341

3 Barstow 15,598,520 1.071 16,706 - - $ 250,000 408,462 194,458 114,269 66,156 40,429 83,864 907,638 221,291 1,128,929

4 Blythe 4,809,294 1.008 4,848 - - $ 250,000 118,534 56,431 33,160 19,198 11,732 24,337 263,392 66,612 330,004

5 Cathedral City 22,999,326 1.139 26,196 - - $ 250,000 640,492 304,921 179,181 103,736 63,394 131,504 1,423,228 289,421 1,712,649

6 Coachella 5,963,822 0.943 5,624 - - $ 250,000 137,507 65,463 38,468 22,271 13,610 28,232 305,551 69,343 374,894

7 Desert Hot Springs 5,517,435 1.283 7,079 1.514 8,353 $ 50,000 204,231 97,229 57,135 33,078 20,214 35,537 447,424 97,256 544,680

8 Hesperia 12,301,998 0.855 10,518 - - $ 250,000 257,165 122,430 71,943 41,651 25,454 52,800 571,443 130,354 701,797

9 Holtville 1,268,229 0.902 1,144 - - $ 250,000 27,971 13,316 7,825 4,530 2,768 5,743 62,153 17,466 79,619

10 La Mesa 24,012,160 1.035 24,853 - - $ 250,000 - - - - - 124,762 124,762 288,306 413,068

11 Murrieta 34,999,253 1.262 44,169 - - $ 250,000 1,079,932 514,127 302,116 174,909 106,889 221,728 2,399,701 470,304 2,870,005

12 Norco 4,477,512 0.991 4,437 - - $ 250,000 - - - - - 22,274 22,274 57,066 79,340

13 Perris 7,175,027 0.671 4,814 - - $ 250,000 117,702 56,035 32,928 19,063 11,650 24,166 261,544 74,158 335,702

14 Rancho Mirage 7,250,967 0.810 5,873 - - $ 250,000 143,595 68,362 40,171 23,257 14,213 29,482 319,080 79,922 399,002

15 San Jacinto 3,824,668 0.889 3,400 0.628 2,402 $ 100,000 58,729 27,959 16,430 9,512 5,813 17,068 135,511 41,069 176,580

16 Stanton 3,474,381 0.812 2,821 0.533 1,852 $ 50,000 45,281 21,557 12,668 7,334 4,482 14,161 105,483 38,647 144,130

17 SunLine Transit 16,474,031 1.399 23,047 - - $ 250,000 563,499 268,267 157,641 91,266 55,774 115,696 1,252,143 226,387 1,478,530

18 Victorville 28,539,240 0.587 16,753 - - $ 250,000 409,611 195,005 114,591 66,342 40,542 84,100 910,191 256,408 1,166,599 19 Westmorland 625,103 1.074 671 1.298 811 $ 50,000 19,829 9,440 5,547 3,212 1,963 3,368 43,359 18,314 61,673

Total 215,700,748$ 216,589$ 13,418$ 4,565,940$ 2,173,723$ 1,277,343$ 739,514$ 451,926$ 1,087,275$ 10,295,721$ 2,616,821$ 12,912,542$

Note: Funding rates are per $1,000 payroll.Budgeted Expenditures are from the FY 2019-20 Annual Budget - page 13.La Mesa and Norco do not pre-fund losses within their retention.

Deposit Premium Calculation: Payroll x Ex-Mod / 1,000 = Modified Payroll Modified Payroll x Funding Rate for each layer = Loss Funding Loss Funding + Expenditures = Deposit Premium

SIR > $250,000 SIR < $250,000

Loss Funding @ 80% Confidence Level ExpendituresDeposit

Premium

5

Public Entity Risk Management Authority (PERMA)2019-20 DEPOSIT PREMIUMSWorkers' Compensation Program (continued)

2019-20 2019-20 2018-19Deposit + 2019-20 = Net Net Increase / (Decrease) Member Deposit/ + Pool/ =

No. Member Premium Assessments Contribution Contribution $ % Non-Risk Sharing Risk Sharing Total

1 Adelanto -$ -$ -$ 160,347$ (160,347)$ -100.00% -$ -$ -$

2 Banning 915,341 - 915,341 901,313 14,028 1.56% 672,391 242,950 915,341

3 Barstow 1,128,929 - 1,128,929 1,238,395 (109,466) -8.84% 823,774 305,155 1,128,929

4 Blythe 330,004 - 330,004 355,642 (25,638) -7.21% 239,055 90,949 330,004

5 Cathedral City 1,712,649 - 1,712,649 1,391,023 321,626 23.12% 1,291,724 420,925 1,712,649

6 Coachella 374,894 - 374,894 367,891 7,003 1.90% 277,319 97,575 374,894

7 Desert Hot Springs 544,680 2,826 547,506 543,171 4,335 0.80% 207,057 340,449 547,506

8 Hesperia 701,797 - 701,797 701,978 (181) -0.03% 518,643 183,154 701,797

9 Holtville 79,619 - 79,619 77,498 2,121 2.74% 56,410 23,209 79,619

10 La Mesa 413,068 - 413,068 384,155 28,913 7.53% - 413,068 413,068

11 Murrieta 2,870,005 - 2,870,005 2,516,154 353,851 14.06% 2,177,973 692,032 2,870,005

12 Norco 79,340 - 79,340 72,798 6,542 8.99% - 79,340 79,340

13 Perris 335,702 - 335,702 288,954 46,748 16.18% 237,378 98,324 335,702

14 Rancho Mirage 399,002 - 399,002 312,938 86,064 27.50% 289,598 109,404 399,002

15 San Jacinto 176,580 - 176,580 154,350 22,230 14.40% 86,688 89,892 176,580

16 Stanton 144,130 - 144,130 140,497 3,633 2.59% 45,281 98,849 144,130

17 SunLine Transit 1,478,530 - 1,478,530 1,366,680 111,850 8.18% 1,136,447 342,083 1,478,530

18 Victorville 1,166,599 - 1,166,599 1,219,732 (53,133) -4.36% 826,091 340,508 1,166,599 19 Westmorland 61,673 - 61,673 58,748 2,925 5.0% 19,829 41,844 61,673

Total 12,912,542$ 2,826$ 12,915,368$ 12,252,264$ 663,104$ 5.4% 8,905,658$ 4,009,710$ 12,915,368$

Note Assessments are on member deposit accounts in a deficit position at December 31, 2018.

Allocation of Net ContributionNet Contribution @ 80%

Confidence LevelComparison

6

Public Entity Risk Management Authority (PERMA)2019-20 INSURANCE PREMIUMSCrime Coverage Program

FY 2019-20 FY 2018-19No. Member Premium Premium $ %

1 Adelanto 5,000,000$ -$ 2,808$ (2,808)$ -100.0%

2 Banning 1,000,000$ 2,453 2,336 117 5.0%

3 Barstow 1,000,000$ 2,394 2,280 114 5.0%

4 Blythe 1,000,000$ 1,176 1,120 56 5.0%

5 Canyon Lake 1,000,000$ 798 760 38 5.0%

6 Coachella 3,000,000$ 2,864 2,728 136 5.0%

7 Desert Hot Springs 5,000,000$ 3,125 2,976 149 5.0%

8 Eastvale 1,000,000$ 798 760 38 5.0%

9 Hesperia 1,000,000$ 2,234 2,128 106 5.0%

10 Holtville 1,000,000$ 798 760 38 5.0%

11 Jurupa Valley 3,000,000$ 1,596 1,520 76 5.0%

12 La Mesa 1,000,000$ 3,570 3,400 170 5.0%

13 March JPA 1,000,000$ 798 760 38 5.0%

14 Moreno Valley 1,000,000$ 3,856 3,672 184 5.0%

15 Murrieta 5,000,000$ 12,075 11,500 575 5.0%

16 Perris 3,000,000$ 2,856 2,720 136 5.0%

17 PS Tramway 1,000,000$ 1,155 1,100 55 5.0%

18 Rancho Mirage 5,000,000$ 4,166 3,968 198 5.0%

19 RTC 1,000,000$ 798 760 38 5.0%

20 San Jacinto 1,000,000$ 882 840 42 5.0%

21 Stanton 3,000,000$ 2,033 1,936 97 5.0%

22 SunLine Transit 1,000,000$ 2,747 2,616 131 5.0%

23 VVTA 1,000,000$ 798 760 38 5.0%

24 Westmorland 1,000,000$ 798 760 38 5.0%

25 PERMA 1,000,000$ 798 760 38 5.0%

55,566$ 55,728$ (162)$ -0.3%

Single Loss Coverage Forms DeductibleEmployee Theft-Per Loss Coverage $2,500Forgery or Alteration $2,500Inside Premises-Theft of Money & Securities $2,500Inside Premises-Robbery, Safe Burglary-Other $2,500 PropertyOutside the Premises $2,500Computer Fraud $2,500Funds Transfer Fraud $2,500Money Orders and Counterfeit Paper Currency $2,500

Increase/(Decrease)

ComparisonPremiumCoverage

Limit

7

Public Entity Risk Management Authority (PERMA)2019-20 INSURANCE PREMIUMSCyber Liability Program

2018-19Insurance Premium Net Insurance

No. Member Premium Credit Premium Premium $ %

1 Adelanto -$ -$ -$ 567$ (567)$ -100.0%

2 Banning 1,657 - 1,657 1,324 333 25.2%

3 Barstow 1,420 - 1,420 1,135 285 25.1%

4 Blythe 1,420 - 1,420 1,135 285 25.1%5 Canyon Lake 710 - 710 567 143 25.2%

6 Coachella 710 - 710 567 143 25.2%

7 Desert Hot Springs 710 - 710 567 143 25.2%

8 Eastvale 710 - 710 567 143 25.2%

9 Hesperia 1,787 - 1,787 1,428 359 25.1%

10 Holtville 710 - 710 567 143 25.2%

11 ICTC 710 - 710 567 143 25.2%

12 IVECA 710 - 710 567 143 25.2%

13 Jurupa Valley 710 - 710 567 143 25.2%

14 La Mesa 1,420 - 1,420 1,135 285 25.1%

15 March JPA 1,420 - 1,420 1,135 285 25.1%

16 MD&MIWMA 710 - 710 567 143 25.2%17 Moreno Valley 1,911 - 1,911 1,527 384 25.1%

18 Murrieta 781 - 781 624 157 25.2%

19 Norco 710 - 710 567 143 25.2%

20 Perris 710 - 710 567 143 25.2%

21 PVVTA 710 - 710 567 143 25.2%

22 PS Tramway 710 - 710 567 143 25.2%

23 Rancho Mirage 1,420 - 1,420 1,135 285 25.1%

24 RTC 710 - 710 567 143 25.2%

25 San Jacinto 710 - 710 567 143 25.2%

26 Stanton 710 - 710 567 143 25.2%

27 SunLine Transit 710 - 710 567 143 25.2%

28 VVEDA 710 - 710 567 143 25.2%29 VVTA 710 - 710 567 143 25.2%

30 Westmorland 710 - 710 567 143 25.2%31 PERMA 662 - 662 529 133 25.1%

28,098$ -$ 28,098$ 23,014$ 5,084$ 22.1%

Note: Participation in the Cyber Liability coverage program is mandatory, unless evidence of Deductible other cyber liability coverage is provided. $50,000Individual polices are underwritten by CSAC-EIA.Premiums include taxes & fees.

2019-20 Comparison

Increase/(Decrease)

8

Public Entity Risk Management Authority (PERMA)2019-20 ERMA DEPOSIT PREMIUMEmployment Practices Liability (EPL) Program

ForComparison

2018 2018-19 2019-20 Self-Insured ERMA 2019-20 2018-19Payroll Exp. Mod. Exp. Mod. Retention Deposit ERMA Net Net Increase / Decrease

No. Member (000) % Factors Factors (SIR) Premium Assessment Contribution Contribution $ %

1 Adelanto -$ - - - - -$ -$ -$ 11,292$ (11,292)$ -100.0%

2 Banning 16,389,782 8.17% 1.500 1.500 $ 25,000 155,132 - 155,132 156,207 (1,075) -0.7%

3 Barstow 15,598,520 7.78% 1.000 1.250 $ 25,000 123,036 - 123,036 103,582 19,454 18.8%

4 Canyon Lake 494,702 0.25% 0.750 0.750 $ 25,000 2,341 - 2,341 2,447 (106) -4.3%

5 Cathedral City 22,999,326 11.46% 0.750 0.815 $ 25,000 118,276 - 118,276 106,566 11,710 11.0%

6 Coachella 5,963,822 2.97% 0.750 0.750 $ 25,000 28,224 - 28,224 29,966 (1,742) -5.8%

7 Desert Hot Springs 5,517,435 2.75% 0.750 0.750 $ 25,000 26,112 - 26,112 23,081 3,031 13.1%

8 Eastvale 1,385,475 0.69% 0.750 0.750 $ 25,000 6,557 - 6,557 4,233 2,324 54.9%

9 Hesperia 12,301,998 6.13% 0.750 0.750 $ 50,000 51,780 - 51,780 53,707 (1,927) -3.6%

10 Holtville 1,268,229 0.63% 0.750 0.750 $ 25,000 6,002 - 6,002 6,426 (424) -6.6%

11 ICTC 644,765 0.32% 0.750 0.750 $ 25,000 3,051 - 3,051 2,809 242 8.6%

12 Jurupa Valley 1,471,695 0.73% 0.750 0.750 $ 25,000 6,965 - 6,965 6,432 533 8.3%

13 La Mesa 24,012,160 11.97% 0.750 0.750 $ 25,000 113,640 - 113,640 116,679 (3,039) -2.6%

14 Murrieta 26,173,617 13.05% 0.750 0.750 $ 100,000 92,549 - 92,549 94,197 (1,648) -1.7%

15 Perris 7,175,027 3.58% 0.750 0.750 $ 25,000 33,956 - 33,956 32,756 1,200 3.7%

16 PS Tramway 4,906,556 2.45% 0.750 0.750 $ 25,000 23,221 - 23,221 23,113 108 0.5%

17 RTC 589,513 0.29% 1.000 0.750 $ 25,000 2,790 - 2,790 4,572 (1,782) -39.0%

18 San Jacinto 3,824,668 1.91% 1.000 0.750 $ 25,000 18,101 - 18,101 22,459 (4,358) -19.4%

19 Stanton 3,474,381 1.73% 0.750 0.750 $ 25,000 19,777 - 16,443 15,538 905 5.8%

20 SunLine 16,474,031 8.21% 1.250 1.500 $ 50,000 166,826 - 138,680 125,461 13,219 10.5%

21 Victorville 28,539,240 14.23% 0.750 0.750 $ 25,000 162,455 - 135,064 139,163 (4,099) -2.9%22 VVTA 1,405,607 0.70% 0.750 0.750 $ 25,000 8,002 - 6,652 6,179 473 7.7%

Total 200,610,549$ 100.00% 1,168,793$ -$ 1,108,572$ 1,086,865$ 21,707$ 2.0%

Note: PERMA's ex-mods for 2018-19 and 2019-20 are 1.072 and 0.990, respectively.

ComparisonProjected FY 2019-20

9

Public Entity Risk Managment Authority (PERMA)2019-20 INSURANCE PREMIUMSProperty & Auto Physical Damage (APD) Programs

Auto Auto AutoPhysical Physical Physical

No. Member Property Vehicles Total Property Damage Total Property Damage Total Property Damage Total

1 Adelanto -$ -$ -$ -$ -$ -$ 40,306$ 7,946$ 48,252$ (40,306)$ (7,946)$ (48,252)$

2 Banning 206,727,383 8,410,050 215,137,433 165,855 46,254 212,109 134,333 39,984 174,317 31,522 6,270 37,792

3 Barstow 75,942,364 6,539,659 82,482,023 60,928 35,967 96,895 49,414 32,842 82,256 11,514 3,125 14,639

4 Blythe 59,414,274 2,813,793 62,228,067 47,667 15,476 63,143 38,645 14,069 52,714 9,022 1,407 10,429

5 Canyon Lake 1,747,337 356,940 2,104,277 1,402 1,963 3,365 1,066 1,785 2,851 336 178 514

6 Coachella 78,977,874 1,766,670 80,744,544 63,363 9,716 73,079 44,131 5,908 50,039 19,232 3,808 23,040

7 Desert Hot Springs 23,450,355 3,194,979 26,645,334 18,814 17,572 36,386 16,052 14,817 30,869 2,762 2,755 5,517

8 Eastvale 17,020,703 437,768 17,458,471 13,656 2,408 16,064 6,411 2,189 8,600 7,245 219 7,464

9 Hesperia 120,146,899 2,765,550 122,912,449 96,393 15,210 111,603 90,759 18,734 109,493 5,634 (3,524) 2,110

10 Holtville 20,626,338 1,951,885 22,578,223 16,548 10,735 27,283 13,409 9,759 23,168 3,139 976 4,115

11 ICTC - 14,250,128 14,250,128 - 78,374 78,374 - 70,129 70,129 - 8,245 8,245

12 IVECA 2,174,683 - 2,174,683 1,745 - 1,745 1,419 - 1,419 326 - 326

13 Jurupa Valley 3,602,004 623,697 4,225,701 2,890 3,430 6,320 2,319 2,818 5,137 571 612 1,183

14 La Mesa 75,975,247 6,037,639 82,012,886 60,954 33,206 94,160 49,539 29,583 79,122 11,415 3,623 15,038

15 March JPA 31,726,112 228,436 31,954,548 25,454 1,256 26,710 20,717 949 21,666 4,737 307 5,044

16 Moreno Valley 183,287,056 12,056,427 195,343,483 147,049 66,309 213,358 111,962 43,751 155,713 35,087 22,558 57,645

17 Murrieta 72,970,119 - 72,970,119 58,543 - 58,543 47,436 - 47,436 11,107 - 11,107

18 Norco 54,428,833 - 54,428,833 43,668 - 43,668 35,362 - 35,362 8,306 - 8,306

19 Perris 49,905,910 2,523,867 52,429,777 40,039 13,881 53,920 29,177 12,619 41,796 10,862 1,262 12,124

20 PS Tramway 60,849,431 905,524 61,754,955 48,819 4,980 53,799 39,747 4,528 44,275 9,072 452 9,524

21 PVVTA 1,068,720 1,720,874 2,789,594 857 9,465 10,322 696 7,507 8,203 161 1,958 2,119

22 Rancho Mirage 117,529,221 2,637,569 120,166,790 94,293 14,506 108,799 76,646 12,945 89,591 17,647 1,561 19,208

23 San Jacinto 34,360,507 4,034,118 38,394,625 27,567 22,187 49,754 21,038 16,903 37,941 6,529 5,284 11,813

24 Stanton 34,457,889 685,654 35,143,543 27,645 3,771 31,416 22,400 3,529 25,929 5,245 242 5,487

25 SunLine Transit 21,718,414 81,957,697 103,676,111 17,424 252,430 269,854 14,128 188,939 203,067 3,296 63,491 66,787

26 VVTA 29,697,101 360,279 30,057,380 23,826 1,981 25,807 19,297 1,448 20,745 4,529 533 5,062

27 Westmorland 14,314,948 1,260,116 15,575,064 11,485 6,930 18,415 9,346 5,233 14,579 2,139 1,697 3,836

28 PERMA 1,000,000 - 1,000,000 804 - 804 677 - 677 127 - 127

Total 1,393,119,722$ 157,519,319$ 1,550,639,041$ 1,117,688$ 668,007$ 1,785,695$ 936,432$ 548,914$ 1,485,346$ 181,256$ 119,093$ 300,349$

Note: 2019-20 property rates and APD rates are budgeted 18.1% more and 10% than 2018-19 rates, respectively. Deductibles:Property rate is $.080229 per $100 which includes taxes & fees. Basic All Perils $ 5,000Vehicle rate is $.54999 per $100 which includes taxes & fees. Flood $ 100,000SunLine Vehicle rate is $.308 (due to different deductible structure) Vehicles $ 2,500Subject to finalization of vehicle schedules and property statement of values. Vehicles/SunLine varies

Firetrucks valued over $200K $ 10,000

Comparison - Increase / (Decrease)

FY 2018-19FY 2019-20Schedule of Property Values

10

Public Entity Risk Managment Authority (PERMA)2019-20 INSURANCE PREMIUMSProperty & Auto Physical Damage (APD) Programs

No. Member Property Vehicles Total Property Vehicles Total Property Vehicles Total

1 Adelanto -$ -$ -$ 59,337,447$ 1,589,261$ 60,926,708$ (59,337,447)$ (1,589,261)$ (60,926,708)$

2 Banning 206,727,383 8,410,050 215,137,433 197,763,388 7,996,932 205,760,320 8,963,995 413,118 9,377,113

3 Barstow 75,942,364 6,539,659 82,482,023 72,746,233 6,568,599 79,314,832 3,196,131 (28,940) 3,167,191

4 Blythe 59,414,274 2,813,793 62,228,067 56,892,378 2,813,793 59,706,171 2,521,896 - 2,521,896

5 Canyon Lake 1,747,337 356,940 2,104,277 1,569,058 356,940 1,925,998 178,279 - 178,279

6 Coachella 78,977,874 1,766,670 80,744,544 64,969,713 1,181,670 66,151,383 14,008,161 585,000 14,593,161

7 Desert Hot Springs 23,450,355 3,194,979 26,645,334 23,630,983 2,963,416 26,594,399 (180,628) 231,563 50,935

8 Eastvale 17,020,703 437,768 17,458,471 9,437,662 437,768 9,875,430 7,583,041 - 7,583,041

9 Hesperia 120,146,899 2,765,550 122,912,449 133,614,510 3,746,942 137,361,452 (13,467,611) (981,392) (14,449,003)

10 Holtville 20,626,338 1,951,885 22,578,223 19,739,962 1,951,885 21,691,847 886,376 - 886,376

11 ICTC - 14,250,128 14,250,128 - 14,026,102 14,026,102 - 224,026 224,026

12 IVECA 2,174,683 - 2,174,683 2,088,478 - 2,088,478 86,205 - 86,205

13 Jurupa Valley 3,602,004 623,697 4,225,701 3,414,664 563,697 3,978,361 187,340 60,000 247,340

14 La Mesa 75,975,247 6,037,639 82,012,886 72,931,182 5,916,639 78,847,821 3,044,065 121,000 3,165,065

15 March JPA 31,726,112 228,436 31,954,548 30,500,053 189,755 30,689,808 1,226,059 38,681 1,264,740

16 Moreno Valley 183,287,056 12,056,427 195,343,483 164,829,796 8,750,355 173,580,151 18,457,260 3,306,072 21,763,332

17 Murrieta 72,970,119 - 72,970,119 69,834,845 - 69,834,845 3,135,274 - 3,135,274

18 Norco 54,428,833 - 54,428,833 52,059,931 - 52,059,931 2,368,902 - 2,368,902

19 Perris 49,905,910 2,523,867 52,429,777 42,953,405 2,523,867 45,477,272 6,952,505 - 6,952,505

20 PS Tramway 60,849,431 905,524 61,754,955 58,515,324 905,524 59,420,848 2,334,107 - 2,334,107

21 PVVTA 1,068,720 1,720,874 2,789,594 1,024,537 1,501,345 2,525,882 44,183 219,529 263,712

22 Rancho Mirage 117,529,221 2,637,569 120,166,790 112,837,685 2,589,038 115,426,723 4,691,536 48,531 4,740,067

23 San Jacinto 34,360,507 4,034,118 38,394,625 30,972,492 3,380,580 34,353,072 3,388,015 653,538 4,041,553

24 Stanton 34,457,889 685,654 35,143,543 32,977,593 705,749 33,683,342 1,480,296 (20,095) 1,460,201

25 SunLine Transit 21,718,414 81,957,697 103,676,111 20,799,564 67,478,319 88,277,883 918,850 14,479,378 15,398,228

26 VVTA 29,697,101 360,279 30,057,380 28,408,760 289,697 28,698,457 1,288,341 70,582 1,358,923

27 Westmorland 14,314,948 1,260,116 15,575,064 13,759,754 1,046,679 14,806,433 555,194 213,437 768,631

28 PERMA 1,000,000 - 1,000,000 1,000,000 - 1,000,000 - - -

Total 1,393,119,722$ 157,519,319$ 1,550,639,041$ 1,378,609,397$ 139,474,552$ 1,518,083,949$ 14,510,325$ 18,044,767$ 32,555,092$

Note: Vehicle schedules and property statement of values as of May 17, 2019.

2019-20 Schedule of Property Values 2018-19 Schedule of Property Values Comparison - Increase / (Decrease)

11

Public Entity Risk Management Authority (PERMA)PAYROLL

AdjustedQuarter End Quarter End Quarter End Quarter End Actual Payroll Actual FY 2019-20 FY 2018-19 Increase / (Decrease) Actual Actual

No. Member 03/31/18 06/30/18 09/30/18 12/31/18 CY 2018 Adjustments CY 2018 Payroll Base Payroll Base $ % FY 2017-18 FY 2016-17

1 Adelanto 803,629 878,871 694,961 796,792 3,174,253 (3,174,253) - - 2,804,616 (2,804,616) -100.0% 3,252,766 2,616,560

2 Banning 4,064,674 3,916,918 4,495,074 3,913,116 16,389,782 - 16,389,782 16,389,782 15,571,310 818,472 5.3% 15,887,056 15,201,094

3 Barstow 3,890,063 3,651,597 4,132,208 3,924,653 15,598,520 - 15,598,520 15,598,520 15,488,188 110,332 0.7% 15,388,907 16,167,672

4 Blythe 1,278,231 1,142,395 1,232,259 1,156,410 4,809,294 - 4,809,294 4,809,294 4,994,278 (184,984) -3.7% 4,915,831 4,819,443

5 Canyon Lake 113,586 119,736 126,375 135,005 494,702 - 494,702 494,702 487,923 6,779 1.4% 477,270 470,862

6 Cathedral City 5,163,715 6,237,701 5,218,006 6,438,169 23,057,591 (58,265) 22,999,326 22,999,326 21,245,925 1,753,401 8.3% 22,416,198 20,592,191

7 Coachella 1,278,741 1,629,529 1,374,949 1,680,602 5,963,822 - 5,963,822 5,963,822 5,974,186 (10,364) -0.2% 5,775,479 6,049,512

8 Desert Hot Springs 1,213,878 1,485,155 1,249,083 1,569,319 5,517,435 - 5,517,435 5,517,435 4,601,543 915,892 19.9% 5,141,495 4,281,740

9 Eastvale 252,152 370,312 345,798 417,212 1,385,475 - 1,385,475 1,385,475 843,838 541,637 64.2% 1,066,523 797,684

10 Hesperia 2,719,964 3,315,575 2,866,748 3,399,710 12,301,998 - 12,301,998 12,301,998 12,030,252 271,746 2.3% 12,180,545 11,712,176

11 Holtville 280,030 305,211 338,546 344,441 1,268,229 - 1,268,229 1,268,229 1,281,145 (12,916) -1.0% 1,272,709 1,265,341

12 ICTC 129,050 175,810 154,419 185,485 644,765 - 644,765 644,765 559,992 84,773 15.1% 590,784 555,971

13 IVECA - - - - - - - 200,000 200,000 - 0.0% - -

14 Jurupa Valley 395,634 340,439 390,237 345,385 1,471,695 - 1,471,695 1,471,695 1,282,341 189,354 14.8% 1,429,480 1,161,605

15 La Mesa 6,401,869 5,387,202 6,430,932 5,792,156 24,012,160 - 24,012,160 24,012,160 23,262,084 750,076 3.2% 23,857,337 22,824,757

16 March JPA 374,539 478,078 360,871 308,807 1,522,295 - 1,522,295 1,522,295 1,468,090 54,205 3.7% 1,605,393 1,405,511

17 MD&MIWMA - - - - - - - 200,000 200,000 - 0.0% - -

18 Moreno Valley 6,701,082 5,825,408 6,853,506 5,983,723 25,363,719 - 25,363,719 25,363,719 23,437,396 1,926,323 8.2% 24,357,785 23,509,774

19 Murrieta w/o Fire - GL 5,773,487 7,007,048 6,003,553 7,389,529 26,173,617 - 26,173,617 26,173,617 25,084,295 1,089,322 4.3% 25,473,644 24,721,877

20 Norco 1,150,555 1,043,086 1,220,835 1,063,036 4,477,512 - 4,477,512 4,477,512 4,167,565 309,947 7.4% 4,363,786 4,040,226

21 Perris 2,065,122 1,840,579 1,769,392 1,499,934 7,175,027 - 7,175,027 7,175,027 6,530,512 644,515 9.9% 7,288,050 6,308,979

22 PS Tramway 1,004,136 1,554,809 1,053,624 1,293,987 4,906,556 - 4,906,556 4,906,556 4,607,936 298,620 6.5% 5,017,458 4,732,953

23 PVVTA - - - - - - - 200,000 200,000 - 0.0% - -

24 Rancho Mirage 1,685,920 1,999,431 1,617,654 1,947,962 7,250,967 - 7,250,967 7,250,967 6,639,586 611,381 9.2% 7,068,109 6,670,221

25 RTC 155,246 158,976 143,571 131,720 589,513 589,513 589,513 683,648 (94,135) -13.8% 659,722 669,981

26 San Jacinto 928,994 846,333 1,041,183 1,008,158 3,824,668 - 3,824,668 3,824,668 3,358,185 466,483 13.9% 3,475,938 3,147,307

27 Stanton 767,455 991,422 733,687 981,816 3,474,381 - 3,474,381 3,474,381 3,097,789 376,592 12.2% 3,358,715 2,873,708

28 SunLine 3,871,237 4,199,780 3,768,435 4,634,579 16,474,031 - 16,474,031 16,474,031 16,861,855 (387,824) -2.3% 16,730,429 17,093,340

29 Victorville 7,584,538 6,391,927 7,640,283 6,922,493 28,539,240 - 28,539,240 28,539,240 27,744,606 794,634 2.9% 28,060,228 27,050,107

30 VVEDA - - - - - - - 200,000 200,000 - 0.0% - -

31 VVTA 359,371 306,104 368,732 371,401 1,405,607 - 1,405,607 1,405,607 1,231,809 173,798 14.1% 1,317,345 1,115,853

32 Westmorland 173,477 146,662 142,035 162,928 625,103 - 625,103 625,103 776,819 (151,716) -19.5% 696,194 827,584

Liability Total 60,580,373 61,746,094 61,766,958 63,798,532 247,891,957 (3,232,518) 244,659,439 245,459,439 236,917,712 8,541,727 3.6% 243,125,176 232,684,027

Murrieta w/ Fire - WC 7,574,958 9,094,719 8,229,772 10,099,805 34,999,253 - 34,999,253 34,999,253 33,566,156 1,433,097 4.3% 33,908,243 33,011,132

Work Comp Total 52,897,049 54,504,093 54,196,043 57,336,081 218,933,266 (3,232,518) 215,700,748 215,700,748 209,996,600 5,704,148 2.7% 215,038,014 206,553,088

Note: Actual Payroll is the total subject wages reported on the quarterly DE-9 formsFY 2019-20 Payroll Base is CY 2018 Actual Payroll. Minimum Payroll Base is set at $200,000.

Payroll BaseActual Payroll Comparison

12

Public Entity Risk Management Authority (PERMA)EXPERIENCE MODIFICATION FACTORS (Ex-Mods)

2019-20 2018-19 Comparison 2019-20 2018-19 Comparison 2019-20 2018-19 ComparisonEx-Mod Ex-Mod Increase / (Decrease) Ex-Mod Ex-Mod Increase / (Decrease) Ex-Mod Ex-Mod Increase / (Decrease)

No. Member Factors Factors Amount % Factors Factors Amount % Factors Factors Amount %

1 Adelanto 0.840 0.759 0.081 10.7% 0.867 0.867 - 0.0% - - - -

2 Banning 0.873 1.091 (0.218) -20.0% 0.832 0.896 (0.064) -7.1% - - - -

3 Barstow 1.087 1.254 (0.167) -13.3% 1.071 1.238 (0.167) -13.5% - - - -

4 Blythe 0.975 1.219 (0.244) -20.0% 1.008 1.098 (0.090) -8.2% - - - -

5 Canyon Lake 1.002 0.973 0.029 3.0% - - - - - - - -

6 Cathedral City 0.722 0.602 0.120 19.9% 1.139 1.006 0.133 13.2% - - - -

7 Coachella 0.690 0.845 (0.155) -18.3% 0.943 0.936 0.007 0.8% - - - -

8 Desert Hot Springs 1.300 1.173 0.127 10.8% 1.283 1.300 (0.017) -1.3% 1.514 1.468 0.046 3.1%

9 Eastvale 1.008 0.974 0.034 3.5% - - - - - - - -

10 Hesperia 1.529 1.443 0.086 6.0% 0.855 0.906 (0.051) -5.6% - - - -

11 Holtville 0.987 0.956 0.031 3.2% 0.902 0.902 - 0.0% - - - -

12 ICTC 0.992 0.963 0.029 3.0% - - - - - - - -

13 IVECA 1.029 0.994 0.035 3.5% - - - - - - - -

14 Jurupa Valley 2.134 1.778 0.356 20.0% - - - - - - - -

15 La Mesa 0.818 1.023 (0.205) -20.0% 1.035 1.117 (0.082) -7.3% - - - -

16 March JPA 0.905 0.874 0.031 3.6% - - - - - - - -

17 MD&MIWMA 1.029 0.994 0.035 3.5% - - - - - - - -

18 Moreno Valley 0.885 1.004 (0.119) -11.9% - - - - - - - -

19 Murrieta 1.110 0.925 0.185 20.0% 1.262 1.155 0.107 9.3% - - - -

20 Norco 2.003 1.669 0.334 20.0% 0.991 0.982 0.009 0.9% - - - -

21 Perris 1.518 1.305 0.213 16.3% 0.671 0.651 0.020 3.1% - - - -

22 PS Tramway 0.702 0.694 0.008 1.2% - - - - - - - -

23 PVVTA 1.029 0.994 0.035 3.5% - - - - - - - -

24 Rancho Mirage 0.741 0.748 (0.007) -0.9% 0.810 0.684 0.126 18.4% - - - -

25 RTC 0.983 0.963 0.020 2.1% - - - - - - - -

26 San Jacinto 1.341 1.118 0.223 20.0% 0.889 0.856 0.033 3.9% 0.628 0.647 (0.019) -2.9%

27 Stanton 1.461 1.217 0.244 20.1% 0.812 0.795 0.017 2.1% 0.533 0.666 (0.133) -20.0%

28 SunLine Transit 0.965 1.139 (0.174) -15.3% 1.399 1.283 0.116 9.0% - - - -

29 Victorville 0.894 0.745 0.149 20.0% 0.587 0.653 (0.066) -10.1% - - - -

30 VVEDA 1.029 0.994 0.035 3.5% - - - - - - - -

31 VVTA 1.039 1.004 0.035 3.5% - - - - - - - -

32 Westmorland 0.968 0.938 0.030 3.2% 1.074 1.024 0.050 4.9% 1.298 1.082 0.216 20.0%

Note: Ex-mods are actuarially developed using 5 years of payroll compared to 5 years of losses limited to $50,000.The change in ex-mods from year to year is capped at 20% (subject to an off-balance factor).Reference: GL Actuarial Study 11/20/18 Exhibit LI-A-8 and WC Actuarial Study 11/20/18 Exhibit WC-A-4.


SIR > $250,000 SIR < $250,000

Workers' Compensation Program

13

Public Entity Risk Management Authority (PERMA)FUNDING RATES

Approved Approved2019-20 2018-19 Comparison 2019-20 2018-19 ComparisonFunding Funding Increase / (Decrease) Funding Funding Increase / (Decrease)

Confidence Level & Layer Rates Rates @ 65% $ % Confidence Level & Layer Rates Rates $ %

65% Confidence Level $0 to $5,000 1.65 1.69 -0.04 -2.4% $5,000 to $10,000 1.02 1.01 0.01 1.0% $10,000 to $25,000 2.26 2.26 0.00 0.0% $25,000 to $50,000 2.46 2.39 0.07 2.9% $50,000 to $75,000 1.65 1.64 0.01 0.6% $75,000 to $100,000 1.36 1.34 0.02 1.5% $100,000 to $125,000 1.01 1.03 -0.02 -1.9% $125,000 to $250,000 3.18 3.16 0.02 0.6% $250,000 to $500,000 3.47 3.48 -0.01 -0.3% $500,000 to $1,000,000 3.84 3.78 0.06 1.6%

72.5% Confidence Level (Midway) $0 to $5,000 1.78 1.69 0.09 5.3% $5,000 to $10,000 1.10 1.01 0.09 8.9% $10,000 to $25,000 2.44 2.26 0.18 8.0% $25,000 to $50,000 2.66 2.39 0.27 11.3% $50,000 to $75,000 1.80 1.64 0.16 9.8% $75,000 to $100,000 1.49 1.34 0.15 11.2% $100,000 to $125,000 1.11 1.03 0.08 7.8% $125,000 to $250,000 3.50 3.16 0.34 10.8% $250,000 to $500,000 3.85 3.48 0.37 10.6% $500,000 to $1,000,000 4.31 3.78 0.53 14.0%

80% Confidence Level 80% Confidence Level $0 to $5,000 1.91 1.69 0.22 13.0% $0 to $50,000 24.45 24.41 0.04 0.2% $5,000 to $10,000 1.18 1.01 0.17 16.8% $50,000 to $100,000 11.64 11.96 -0.32 -2.7% $10,000 to $25,000 2.62 2.26 0.36 15.9% $100,000 to $150,000 6.84 6.66 0.18 2.7% $25,000 to $50,000 2.85 2.39 0.46 19.2% $150,000 to $200,000 3.96 3.69 0.27 7.3% $50,000 to $75,000 1.94 1.64 0.30 18.3% $200,000 to $250,000 2.42 2.20 0.22 10.0% $75,000 to $100,000 1.61 1.34 0.27 20.1% $250,000 to $500,000 5.02 4.63 0.39 8.4% $100,000 to $125,000 1.20 1.03 0.17 16.5% $125,000 to $250,000 3.81 3.16 0.65 20.6% $250,000 to $500,000 4.23 3.48 0.75 21.6% $500,000 to $1,000,000 4.77 3.78 0.99 26.2%

Self-Insured Retention @ 65% CL $0 21.90 21.78 0.12 0.6% $5,000 20.25 20.09 0.16 0.8% $10,000 19.23 19.08 0.15 0.8% $25,000 16.97 16.82 0.15 0.9% $50,000 14.51 14.43 0.08 0.6% $75,000 12.86 12.79 0.07 0.5% $100,000 11.50 11.45 0.05 0.4% $125,000 10.49 10.42 0.07 0.7% $250,000 7.31 7.26 0.05 0.7% $500,000 3.84 3.78 0.06 1.6%

Self-Insured Retention @ 72.5% CL Self-Insured Retention @ 80% CL $0 24.04 21.78 2.26 10.4% All Retentions 54.33 53.55 0.78 1.5% $5,000 22.26 20.09 2.17 10.8% $10,000 21.16 19.08 2.08 10.9% $25,000 18.72 16.82 1.90 11.3% $50,000 16.06 14.43 1.63 11.3% $75,000 14.26 12.79 1.47 11.5% $100,000 12.77 11.45 1.32 11.5% $125,000 11.66 10.42 1.24 11.9% $250,000 8.16 7.26 0.90 12.4% $500,000 4.31 3.78 0.53 14.0%

Excess Coverage (CSAC-EIA) - Estimated Excess Coverage (LAWCX) @ 80% Confidence Level - Estimated

$1,000,000 to $24,000,000 0.789 0.556 0.234 42.0% $500,000 to Statutory Safety 1.064 0.989 0.075 7.6% $24,000,000 to $50,000,000 0.077 0.071 0.006 7.8% $500,000 to Statutory Non-S 0.650 0.598 0.052 8.7%

Reference: GL Actuarial Study 11/20/18 Exhibit LI-A-9 and WC Actuarial Study 11/20/18 Exhibit WC-A-5.

Note: Funding rates are per $1,000 of modified payroll (payroll x ex-mod).

Workers' CompensationGeneral Liability

14

Public Entity Risk Management Authority (PERMA)RETURN OF CONTRIBUTIONS / PREMIUM ADJUSTMENTS

2018-19 2017-18 Cumulative 2018-19 2017-18 Cumulative Cumulative NetNet Net Net Net Net Net Net (Assessment)

Member Return Return Return Return Return Return Return to be Billed

Adelanto 41,751$ 46,524$ 1,089,832$ (10,660)$ (3,381)$ 213,992$ 1,303,824$ -$

Banning 107,144 139,339 1,957,165 (25,387) 1,484 378,120 2,335,285 -

Barstow 4,856 41,129 974,624 (18,248) 17,618 48,430 1,023,054 (13,392)

Blythe 31,477 39,946 872,567 (13,290) 4,008 263,876 1,136,443 -

Canyon Lake (571) 245 (129) - - - (129) (571)

Cathedral City 36,818 69,789 1,402,669 (54,551) (3,375) (30,563) 1,372,106 (17,733)

Coachella 17,170 29,030 632,695 (8,530) 323 159,655 792,350 -

Desert Hot Springs 65,845 72,301 897,236 (87,092) (4,815) (71,068) 826,168 (21,247)

Eastvale (1,135) 362 11 - - - 11 (1,135)

Hesperia 6,158 30,112 68,170 (12,371) - 12,629 80,799 (6,213)

Holtville 12,454 15,519 337,526 (8,117) (705) (1,799) 335,727

Jurupa Valley (171) 205 6,167 - - - 6,167 (171)

ICTC (495) 317 477 - - - 477 (495)

IVECA 1,636 1,935 24,070 - - - 24,070 -

La Mesa 119,183 171,945 1,849,194 (65,884) (14,921) (78,044) 1,771,150 -

March JPA 7,842 10,190 131,568 - - - 131,568 -

MD&MIWMA 1,636 2,028 38,956 - - - 38,956 -

Moreno Valley (19,141) 22,025 535,015 - 2,364 1,009,154 1,544,169 (19,141)

Murrieta 63,695 95,765 1,091,409 (43,521) 4,869 482,470 1,573,879 -

Norco 37,825 51,886 1,007,727 (16,669) (3,904) (17,582) 990,145 -

PVVTA 1,638 2,029 32,188 - - - 32,188 -

Perris 34,967 47,772 932,861 (6,506) 1,275 1,535,310 2,468,171 -

PS Tramway 20,203 23,031 214,687 - - - 214,687 -

Rancho Mirage 16,702 28,824 770,887 (9,553) 422 813,997 1,584,884 -

RTC (1,426) (768) (2,194) - - - (2,194) (1,426)

San Jacinto 21,105 31,208 615,802 (25,635) 4,152 (13,982) 601,820 (4,530)

Stanton 17,050 21,725 537,070 (36,704) (2,022) (38,726) 498,344 (19,654)

SunLine Transit 41,198 73,014 1,259,517 (31,226) 4,777 154,261 1,413,778 -

VVEDA 1,636 2,028 41,819 - - - 41,819 -

VVTA 344 1,816 80,612 - - - 80,612 -

Victorville 101,228 129,846 2,112,309 (27,924) (4,400) 1,815,714 3,928,023 -

Westmorland 4,080 5,224 169,526 - - - 169,526 -

Total Funding 792,702$ 1,206,341$ 19,682,033$ (501,868)$ 3,769$ 6,635,844$ 26,317,877$ (105,708)$

Note: Workers' Compensation includes return of member deposits. Excludes former members' returns.

TotalWorkers' Compensation ProgramGeneral Liability Program

15




AGENDA ITEM 7I: Assessment of Policy Year 1986-87


RECOMMENDATION:Recommend the Board declare an assessment of $750,000 for the 1986-87 policy year withpayments due July 1, 2019, but not considered late until after July 31, 2020.

FISCAL IMPLICATIONS:See 1986-87 Policy Year Activity - attached.

BACKGROUND & OVERVIEW:PERMA recently participated in a settlement with the City of Simi Valley involving the 1986-87coverage period. Since all the funds from that program year have been returned to theparticipating members in the form of dividends, the recent settlement creates a deficit for theprogram year necessitating an assessment.

The claim for damages against the City of Simi Valley is a false arrest/false imprisonmentclaim. The claimant, Craig Coley, was arrested in November 1978 and convicted of a rape anddouble murder in early 1980. He was subsequently exonerated by DNA evidence in 2017 andpardoned on November 22, 2017.

The claimant alleged acts or omissions on the part of the City during its membership in PERMA(1986 to 1992), including failure to produce, or suppression of, exculpatory evidence whilepost-conviction appeals were pending. Per the Memorandum of Coverage terms, broadprotection is provided for claims of “discrimination or violation of civil rights” and Occurrencesspanning multiple coverage periods are assigned to the first coverage period involved - whichis the first year of the City’s membership in PERMA, the 1986-87 policy year.

The City reached a tentative settlement with claimant for $21 million on December 19, 2018,contingent and subject to the City being able to fund most of the settlement through insuranceproceeds.

On March 7, 2019, the PERMA Executive Committee agreed to contribute $750,000, excessof the City’s $250,000 retention, towards the $21 million settlement.

It is important to note that coverage providers across a number of years agreed to contribute,including Simi Valley’s current excess coverage provider, CSAC-EIA (whose current formtreats continuous occurrences as taking place during the last coverage period). Also, UnitedNational, PERMA’s excess carrier from the period of Simi Valley’s membership, agreed tocontribute even though the underlying PERMA $4 million retention was not exhausted. For the 1986-87 program year, PERMA initially collected $1,413,359 in premium contributionsand was able to return $2,526,951 in dividends to zero out the program year. The dividendswere paid with absolutely no expectation that a case over 30 years old would impact the poolin 2019.

Since the funds for the 1986-87 program year have long since been returned to theparticipating members, the payment of the settlement creates a deficit for the previously closedprogram year.

Therefore, staff recommends the Board of Directors declare an assessment for the 1986-87program year in the amount of $750,000 with the individual member assessments due July 1,2019, but not considered delinquent until after July 31, 2020.

Attached is a schedule of the participating members in 1986-87, and each member’s premiumcontributions, dividends, and allocation of the $750,000 settlement based on contributions.

Since 2019-20 budgets are either completed, or near completion, staff recommends the Boardallow the deadline for members to pay the assessment extend through July 31, 2020, so thatmembers can budget accordingly for 2020-21.

The plan for current members impacted by the 1986-87 assessment would be to include theindividual assessments as part of the 2020-21 premiums, which will be due July 1, 2020 andconsidered delinquent if not paid by July 31, 2020.

All former members of the 1986-87 policy year were provided a courtesy notice of theupcoming assessment and this Board meeting, and they will be invoiced according to the termsapproved today. The notice did include a statement that staff would be recommending a duedate of July 1, 2020.

Alternatively, the Board could a) establish an earlier past due date and charge an interest fee on all past due invoices, or b) discount the assessment if paid within a certain time frame, asincentives for all 1986-87 participants (both current and former members) to pay theassessment earlier.

REFERENCE MATERIALS ATTACHED:Policy Year Activity - 1986-87

Page -2-

Public Entity Risk Management Authority (PERMA)

Policy Year Activity

$250,001 to $5,000,000 Pool Layer

Premium Settlement Dividends /

# Member Contribution % Allocation (Assessments)

1 Banning 86,739$ 6.14% 46,028$ 167,682$

2 Barstow 81,872$ 5.79% 43,445$ 157,929$

3 Blythe 55,205$ 3.91% 29,295$ 105,300$

4 Cathedral City 55,205$ 3.91% 29,295$ 105,300$

5 Coachella 58,871$ 4.17% 31,240$ 112,458$

6 CVAG 149$ 0.01% 79$ 278$

7 Desert Hot Springs 35,530$ 2.51% 18,854$ 67,271$

8 Hemet 130,220$ 9.21% 69,101$ 257,490$

9 Holtville 24,503$ 1.73% 13,003$ 46,211$

10 La Quinta 17,812$ 1.26% 9,452$ 33,516$

11 Moreno Valley 42,098$ 2.98% 22,339$ 79,902$

12 Norco 46,288$ 3.28% 24,563$ 87,992$

13 Palm Desert 63,789$ 4.51% 33,850$ 122,098$

14 Palm Springs 248,983$ 17.62% 132,123$ 465,783$

15 Perris 42,507$ 3.01% 22,556$ 80,689$

16 Rancho Mirage 42,098$ 2.98% 22,339$ 79,902$

17 Rolling Hills 15,657$ 1.11% 8,308$ 29,439$

18 San Jacinto 32,489$ 2.30% 17,240$ 61,446$

19 Sierra Madre 34,290$ 2.43% 18,196$ 64,893$

20 Simi Valley 185,065$ 13.09% 98,205$ 185,065$

21 Stanton 32,851$ 2.32% 17,432$ 61,456$

22 SunLine Transit 65,334$ 4.62% 34,670$ 125,132$

23 Westmorland 15,804$ 1.12% 8,386$ 29,719$

Total 1,413,359$ 100.00% 750,000$ 2,526,951$

1986‐87




AGENDA ITEM 7J: Executive Committee Vacancy


RECOMMENDATION:Recommend the Board elect Darcy Wigington (Barstow) to fill the vacant seat on the ExecutiveCommittee.


BACKGROUND & OVERVIEW:Britt Wilson has retired from the City of Rancho Mirage, thereby creating a vacancy on theExecutive Committee.

This time has been reserved to elect a Board member to fill the vacancy on the seven memberExecutive Committee.

The following Board members serve on the Executive Committee:

President Kevin Kane (VVTA)Vice-President Matthew Schenk (March JPA)Member-At-Large Kathleen Sanchez (Moreno Valley)Member-At-Large Saida Amozgar (Perris)Member-At-Large Marjorie De La Cruz (Palm Springs Aerial Tramway)Member-At-Large Chuck Buquet (Victorville)

The PERMA Executive Committee consists of seven individuals elected by the Board for atwo-year term. The elections are staggered, four Executive Committee seats are elected ineven-numbered years, and the remaining three seats are elected in odd-numbered years.

The Executive Committee then elects the President and Vice-President from among theindividuals elected to the Executive Committee for a one-year term.

In order to serve on the Executive Committee, an individual must have served on the Boardfor at least twelve months preceding the date of the election to the committee. However, theBoard may waive the eligibility requirement by majority vote.

The Executive Committee is scheduled to meet four times per year in between the Boardmeetings at the Palm Desert office. The Executive Committee hears claim matters, budgetand personnel issues, as well as develops recommendations to the full Board on varioussubjects.

The General Manager emailed the membership on March 25, 2019 advising of the vacancyand seeking volunteers to serve on the Executive Committee.

Darcy Wigington, Human Resources Manager for the City of Barstow, expressed interest inserving on the Executive Committee. Ms. Wigington has served on the Board since January2018.

Nominations will also be considered from the floor.

REFERENCE MATERIALS ATTACHED:None.

Page -2-




AGENDA ITEM 7K: Alliant Deadly Weapon Response Program (ADWRP) Proposal


RECOMMENDATION:Provide staff direction on whether to participate in the Alliant Deadly Weapon ResponseProgram (ADWRP) on either a mandatory or voluntary basis.

FISCAL IMPLICATIONS:The annual premium is $10,719.38 and allocated based on total values scheduled under theproperty/vehicle program - see attached.

BACKGROUND & OVERVIEW:Alliant has put together an insurance policy which would pay $500,000 for bodily injury andproperty damage to third-party injuries while on Member property, including defense costs, forwhich the Member is legally liable under an active shooter event. The aggregate is $2,500,000which is shared by Members of the JPA.

Additionally, the policy covers crisis management services (pre and post event). Pre eventservices include providing a security vulnerability assessment and an education seminar.

Post event services include crisis management accessed via a direct call, additional security,counseling services, funeral expenses, and monitoring of social media to identify claimants.

Lastly, the policy also provides coverage for 1st party property damage, including businessinterruption up to $250,000 for damage to a Member facility caused by the active shooter(event), including coverage to reconfigure a building space, so as not to look like the scene ofthe crime when employees or members of the public return (up to $250,000).

Seth Cole of Alliant Insurance Services will be in attendance to discuss the program in moredetail.

REFERENCE MATERIALS ATTACHED:Allocation of ADWRP Annual Premium by Member . . . . . . . . . . . . . . . . . . . . . . . . . Page 1ADWRP Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 2Alliant Deadly Weapon Response Program (ADWRP) Proposal . . . . . . . . . . . . . . . Page 3

Page -2-

PERMA

Alliant Deadly Weapon Response Program (ADWRP)

2019‐20 Premium Allocation

Variable

No. Member Property Vehicles TIV % Fixed Variable Total

1 Banning 206,727,383 8,410,050 215,137,433 13.9% 100.00$ 1,098.49$ 1,198.49$

2 Barstow 75,942,364 6,539,659 82,482,023 5.3% 100.00$ 421.15$ 521.15$

3 Blythe 59,414,274 2,813,793 62,228,067 4.0% 100.00$ 317.74$ 417.74$

4 Canyon Lake 1,747,337 356,940 2,104,277 0.1% 100.00$ 10.74$ 110.74$

5 Cathedral City* - - - 0.0% ‐$ ‐$ ‐$

6 Coachella 78,977,874 1,766,670 80,744,544 5.2% 100.00$ 412.28$ 512.28$

7 Desert Hot Springs 23,450,355 3,194,979 26,645,334 1.7% 100.00$ 136.05$ 236.05$

8 Eastvale 17,020,703 437,768 17,458,471 1.1% 100.00$ 89.14$ 189.14$

9 Hesperia 120,146,899 2,765,550 122,912,449 7.9% 100.00$ 627.59$ 727.59$

10 Holtville 20,626,338 1,951,885 22,578,223 1.5% 100.00$ 115.28$ 215.28$

11 ICTC - 14,250,128 14,250,128 0.9% 100.00$ 72.76$ 172.76$

12 IVECA 2,174,683 - 2,174,683 0.1% 100.00$ 11.10$ 111.10$

13 Jurupa Valley 3,602,004 623,697 4,225,701 0.3% 100.00$ 21.58$ 121.58$

14 La Mesa 75,975,247 6,037,639 82,012,886 5.3% 100.00$ 418.76$ 518.76$

15 March JPA 31,726,112 228,436 31,954,548 2.1% 100.00$ 163.16$ 263.16$

16 MD&MIWMA* - - - 0.0% ‐$ ‐$ ‐$

17 Moreno Valley 183,287,056 12,056,427 195,343,483 12.6% 100.00$ 997.42$ 1,097.42$

18 Murrieta 72,970,119 - 72,970,119 4.7% 100.00$ 372.59$ 472.59$

19 Norco 54,428,833 - 54,428,833 3.5% 100.00$ 277.91$ 377.91$

20 Perris 49,905,910 2,523,867 52,429,777 3.4% 100.00$ 267.71$ 367.71$

21 PS Tramway 60,849,431 905,524 61,754,955 4.0% 100.00$ 315.32$ 415.32$

22 PVVTA 1,068,720 1,720,874 2,789,594 0.2% 100.00$ 14.24$ 114.24$

23 Rancho Mirage 117,529,221 2,637,569 120,166,790 7.7% 100.00$ 613.57$ 713.57$

24 Regional Training Center 357,500 - 357,500 0.0% 100.00$ 1.83$ 101.83$

25 San Jacinto 34,360,507 4,034,118 38,394,625 2.5% 100.00$ 196.04$ 296.04$

26 Stanton 34,457,889 685,654 35,143,543 2.3% 100.00$ 179.44$ 279.44$

27 SunLine Transit 21,718,414 81,957,697 103,676,111 6.7% 100.00$ 529.37$ 629.37$

28 Victorville* - - - 0.0% ‐$ ‐$ ‐$

29 VVEDA* - - - 0.0% ‐$ ‐$ ‐$

30 VVTA 29,697,101 360,279 30,057,380 1.9% 100.00$ 153.47$ 253.47$

31 Westmorland 14,314,948 1,260,116 15,575,064 1.0% 100.00$ 79.53$ 179.53$

32 PERMA 1,000,000 - 1,000,000 0.1% 100.00$ 5.11$ 105.11$

Total 1,393,477,222$ 157,519,319$ 1,550,996,541$ 100.0% 2,800.00$ 7,919.38$ 10,719.38$

* Cathedral City and Victorville participate in APIP as indvidual Members and not part of the PERMA group.

MD&MIWMA and VVEDA are headquartered at City of Victorville City Hall.

2019‐20 Total In Values (TIV) Annual Premium

Agenda Item 7K - Page 1 of 13

Alliant Specialty Group

Deadly Weapons Response Program:

Triggers, Limits, Deductibles and Other Coverage Features for Governmental Pools

Coverage Trigger

An event occurring at a location appearing on your Schedule of Values on file with Alliant where a weapon has been used or brandished. A weapon is broadly defined as any portable or handheld device, instrument or substance which is used by the Assailant(s) in a manner to deliberately cause death or bodily injury.

“Weapon” can also include any road vehicles (private or commercial land-based vehicle) intended for use on public roads. Some weapons are excluded by the policy such as military vehicles, nuclear weapons and drones.

Coverage Limits

Self-Insured Governmental Pools: $500,000 per claim

with a $2,500,000 aggregate shared amongst your pool members

Sub-limits Included within Coverage Limit: • 1st Party Property Damage: $250,000 per event • Business Interruption: $250,000 per event • Crisis Management: $250,000 per event • Funeral Expenses: $250,000 per event • Counselling Services: $250,000 per event • Demo/Clearance/Memorialization: $250,000 per

event • Crisis Services Provided by CrisisRisk:

https://www.crisisrisk.com/

Deductible: $10,000

Other Coverage Features

Automatic coverage for new locations added mid- term, no reporting necessary if value is under $25,000,000

Temporary Locations/Venues can be added if sufficient underwriting information is provided

Please note: Actual terms and conditions are governed by the policy.

ABOUT ALLIANT INSURANCE SERVICES Alliant Insurance Services is one of the nation’s leading and fastest growing distributors of diversified insurance products and services. In the face of increasing complexity, our approach is simple: bring on the best people and invest more deeply in the industries and clients we serve. We operate through a network of specialized national platforms and regional offices to offer a comprehensive portfolio of services to our clients. Our goal is to ensure that they get the most innovative products—and the most innovative thinking—in the industry. www.alliant.com

CONTACT Courtney Ramirez Vice President [email protected] 949-660-8133

Anne Shackelford Vice President [email protected] 206-454-8021

Alliant.com | Alliant Insurance Services, Inc. CA License No. 0C36861. © 2018 Alliant Insurance Services, Inc. All rights reserved. Agenda Item 7K - Page 2 of 13

http://www.crisisrisk.com/



http://www.alliant.com/

mailto:[email protected]

mailto:[email protected]

Alliant Insurance Services, Inc. CA License No. 0C36861 www.alliant.com

Public Entity Risk Management Authority

2019 – 2020

Alliant Deadly Weapon Response Program (ADWRP) Proposal

Presented on May 24, 2019


Date Issued: 5/24/19 Alliant Insurance Services, Inc. | www.alliant.com | CA License No. 0C36861 Page 2

ALLIANT DEADLY WEAPON RESPONSE PROGRAM (ADWRP) PROPOSAL

INSURED Public Entity Risk Management Authority INSURANCE COMPANY: Underwriters at Lloyd’s of London A.M. BEST RATING: A (Excellent) XV; Greater than $2,000,000,000 STANDARD AND POOR’S RATING: A+, Strong Financial Security STATE LICENSE STATUS: Non-Admitted POLICY TERM: July 1, 2019 – July 1, 2020

COVERAGE FORM: Claims Made & Reported COVERAGE TYPE: Third Party Liability, Property Damage, Business

Interruption & Crisis Management for events occurring at a location appearing on your Schedule of Values on file with Alliant Insurance Services, Inc.

LIMITS: Per Claim $ 500,000

Aggregate (Shared by Members of

Pool/JPA)

$ 2,500,000

DEDUCTIBLE: $10,000 Each Event including Claims Expenses RETROACTIVE DATE: Policy Inception SUB-LIMITS:

(Each Sublimit is part of the Overall Limit of Liability and not in addition to it) $ 250,000 Crisis Management Services $ 250,000 Counseling Services $ 250,000 Funeral Expenses $ 250,000 1st Party Property Damage $ 250,000 Business Interruption $ 250,000 Demo/Clearance/ Memorialization




ENDORSEMENTS: Deadly Weapon & Security Vulnerability

(Including But Not Limited To) Deadly Weapon Safety Action Plan Seminar

Crisis Management Services

Property Damage Extension

Counselling Services Sub-Limit

Funeral Expenses Sub-Limit

Reinsurers Liability Clause

Sanction Limitation & Exclusion Clause

Notice of Terrorism Insurance Coverage

Business Interruption

EXCLUSIONS:

(Including But Not Limited To)

Loss of market, loss of use or any other

consequential loss at property physically lost or

damaged

Confiscation, nationalization, requisition or

destruction of or damage to property by

government, public or local authority

Criminal, dishonest, fraudulent or malicious

conduct by Named Insured

Any actual or alleged negligent act, error,

omission, misstatement, misleading statement,

neglect or breach of duty by the Directors or

Officers, in the discharge of their duties solely

in their capacity as Directors or Officers of the

Named Insured

Euthanasia

Any explosive devices that may have been set-

up prior to or after an Active Shooter Event

Any vehicle not defined as a road vehicle

Any weapon mounted (or designed to be

mounted) on a vehicle

Any weapon, device or substance delivered by

an airborne weapon delivery system including,

but not limited to, fixed wing aircraft, helicopter

or drone

Injury or death to any employees of any third

party whom the Named insured has contracted

for services.

Workers Compensation

Employment Practices




EXCLUSIONS - CONTINUED: Attacks by electronic means

(Including But Not Limited To) Ionizing radiations or contamination by

radioactivity from nuclear waste or fuel

Radioactive, toxic, explosive or other

hazardous or contaminating properties of any

nuclear installation, reactor, assembly or

component

Any weapon or device employing atomic or

nuclear fission, fusion or other like reaction or

force or matter

Radioactive, toxic, explosive or other

hazardous or contaminating properties of any

radioactive matter

Chemical, biological, bio-chemical or

electromagnetic weapon

Mental injury or mental anguish related claim

where no Bodily Injury occurred to claimant

(Except as included by endorsement for

counselling services)

Loss, injury or damage caused by or resulting

from Named Insured’s recklessness or

deliberate misconduct

Mercy Killing(s)

Cross Suits

Nuclear reaction, radiation or contamination,

however caused

Any Pollutant or Contaminant however

introduced or arisen

Property Damage in care, custody or control of

Named Insured or person under contract

Punitive or exemplary damages, sanctions or

additional damages

Strikes, labor unrest, riots or civil commotion

Suicide

War, insurrection, civil commotion




ADDITIONAL EXCLUSIONS RELATING TO

PROPERTY & BUSINESS INTERRUPTION:

(Including But Not Limited To)

Land or land values

Aircraft, watercraft or any vehicle licensed for

highway use

Animals

Money, currency, checks, coins, stamps,

securities, valuable papers, evidences of debt,

precious stones, precious metals (unless

forming an integral part of Insured Property),

jewelry, furs, fine arts and antiques

Electronic data

Any property in Transit

Increase in loss caused by suspension, lapse,

cancellation of any lease, license, contract or

order, unless loss results directly from the

insured Interruption of Business

Fines, penalties or damages incurred by or

imposed upon the Named Insured at order of

any Government Agency, Court or other

Authority

POLICY VOIDANCE CONDITION The Named Insured and any Insured Person

must, at all times, restrict knowledge of the

existence of this policy to all persons whose

knowledge of the policy is necessary. This

policy shall become void and all Claims

hereunder shall be forfeited if at any time,

whether before or after expiry, the existence of

this policy is disclosed to a third party, other

than to the Named Insured's own professional,

financial and legal advisers (on a confidential

basis), without the Underwriters' prior written

agreement.




ANNUAL PREMIUM: $ 10,387.00 Premium

$ 311.61 Surplus Lines Taxes

$ 20.77 Surplus Lines Fees

$ 10,719.38 Total Cost DEFENSE INSIDE/OUTSIDE THE LIMITS: Inside MINIMUM EARNED PREMIUM: 25% Minimum Earned Premium PROPOSAL VALID UNTIL: 30 Days From Date Issued BINDING CONDITIONS: Completed and Signed Request to Bind

Coverage Form (See last page)

Completed and Signed Surplus Lines

Document(s) (If applicable)

Complete Schedule of Values on file to share

with the carrier.

See Disclosures / Disclaimers Pages for Important Notices and Acknowledgement




Disclosures / Disclaimers

This proposal of insurance is provided as a matter of convenience and information only. All information included in this proposal, including but not limited to personal and real property values, locations, operations, products, data, automobile schedules, financial data and loss experience, is based on facts and representations supplied to Alliant Insurance Services, Inc. by you. This proposal does not reflect any independent study or investigation by Alliant Insurance Services, Inc. or its agents and employees. Please be advised that this proposal is also expressly conditioned on there being no material change in the risk between the date of this proposal and the inception date of the proposed policy (including the occurrence of any claim or notice of circumstances that may give rise to a claim under any policy which the policy being proposed is a renewal or replacement). In the event of such change of risk, the insurer may, at its sole discretion, modify, or withdraw this proposal, whether or not this offer has already been accepted.

This proposal is not confirmation of insurance and does not add to, extend, amend, change, or alter any coverage in any actual policy of insurance you may have. All existing policy terms, conditions, exclusions, and limitations apply. For specific information regarding your insurance coverage, please refer to the policy itself. Alliant Insurance Services, Inc. will not be liable for any claims arising from or related to information included in or omitted from this proposal of insurance.

Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our website at www.alliant.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also contact us at: Alliant Insurance Services, Inc., Attention: General Counsel, 701 B Street, 6th Floor, San Diego, CA 92101.

Analyzing insurers' over-all performance and financial strength is a task that requires specialized skills and in-depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Alliant Insurance typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor's have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings.

A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies. You can visit them at www.ambest.com. For additional information regarding insurer financial strength ratings visit Standard and Poor's website at www.standardandpoors.com.

Our goal is to procure insurance for you with underwriters possessing the financial strength to perform. Alliant does not, however, guarantee the solvency of any underwriters with which insurance or reinsurance is placed and maintains no responsibility for any loss or damage arising from the financial failure or insolvency of any insurer. We encourage you to review the publicly available information collected to enable you to make an informed decision to accept or reject a particular underwriter. To learn more about companies doing business in your state, visit the Department of Insurance website for that state.



http://www.alliantinsurance.com/

http://www.ambest.com/

http://www.standardandpoors.com/


Other Disclosures / Disclaimers - Continued

NY Regulation 194 Alliant Insurance Services, Inc. is an insurance producer licensed by the State of New York. Insurance producers are authorized by their license to confer with insurance purchasers about the benefits, terms and conditions of insurance contracts; to offer advice concerning the substantive benefits of particular insurance contracts; to sell insurance; and to obtain insurance for purchasers. The role of the producer in any particular transaction typically involves one or more of these activities.

Compensation will be paid to the producer, based on the insurance contract the producer sells. Depending on the insurer(s) and insurance contract(s) the purchaser selects, compensation will be paid by the insurer(s) selling the insurance contract or by another third party. Such compensation may vary depending on a number of factors, including the insurance contract(s) and the insurer(s) the purchaser selects. In some cases, other factors such as the volume of business a producer provides to an insurer or the profitability of insurance contracts a producer provides to an insurer also may affect compensation.

The insurance purchaser may obtain information about compensation expected to be received by the producer based in whole or in part on the sale of insurance to the purchaser, and (if applicable) compensation expected to be received based in whole or in part on any alternative quotes presented to the purchaser by the producer, by requesting such information from the producer.

FATCA: The Foreign Account Tax Compliance Act (FATCA) requires the notification of certain financial accounts to the United States Internal Revenue Service. Alliant does not provide tax advice so please contact your tax consultant for your obligation regarding FATCA.

Claims Reporting: Your policy will come with specific claim reporting requirements. Please make sure you understand these obligations. Contact your Alliant Service Team with any questions.

NRRA: The Non-Admitted and Reinsurance Reform Act (NRRA) went into effect on July 21, 2011. Accordingly, surplus lines tax rates and regulations are subject to change which could result in an increase or decrease of the total surplus lines taxes and/or fees owed on this placement. If a change is required, we will promptly notify you. Any additional taxes and/or fees must be promptly remitted to Alliant Insurance Services, Inc.





Changes and Developments It is important that we be advised of any changes in your operations, which may have a bearing on the validity and/or adequacy of your insurance. The types of changes that concern us include, but are not limited to, those listed below:

Changes in any operations such as expansion to another states, new products, or new applications of existing products.

Travel to any state not previously disclosed. Mergers and/or acquisition of new companies and any change in business ownership, including

percentages. Any newly assumed contractual liability, granting of indemnities or hold harmless agreements. Any changes in existing premises including vacancy, whether temporary or permanent, alterations,

demolition, etc. Also, any new premises either purchased, constructed or occupied Circumstances which may require an increased liability insurance limit. Any changes in fire or theft protection such as the installation of or disconnection of sprinkler

systems, burglar alarms, etc. This includes any alterations to the system. Immediate notification of any changes to a scheduled of equipment, property, vehicles, electronic

data processing, etc. Property of yours that is in transit, unless previously discussed and/or currently insured.

Certificates / Evidence of Insurance A certificate is issued as a matter of information only and confers no rights upon the certificate

holder. The certificate does not affirmatively or negatively amend, extend or alter the coverage afforded by a policy. Nor does it constitute a contract between the issuing insurer(s), authorized representative, producer or certificate holder.

You may have signed contracts, leases or other agreements requiring you to provide this evidence.

In those agreements, you may assume obligations and/or liability for others (Indemnification, Hold Harmless) and some of the obligations that are not covered by insurance. We recommend that you and your legal counsel review these documents. In addition to providing a certificate of insurance, you may be required to name your client or customer on your policy as an additional insured. This is only possible with permission of the insurance company, added by endorsement and, in some cases, an additional premium. By naming the certificate holder as additional insured, there are consequences to your risks and insurance policy including:

Your policy limits are now shared with other entities; their claims involvement may reduce or exhaust your aggregate limit.

Your policy may provide higher limits than required by contract; your full limits can be exposed to the additional insured.

There may be conflicts in defense when your insurer has to defend both you and the additional insured.





Commercial Property Coverage *Property Co-insurance: Most property insurance policies contain a co-insurance clause. In exchange for a reduced rate, the insured agrees to carry at least the stated percentage of insurance to the total insurable value of the property. If, at the time of loss, the amount of insurance carried is less than this percentage, the loss payment will be reduced proportionately.

Glossary of Insurance Terms

Below are a couple of links to assist you in understanding the insurance terms you may find within your insurance coverages:

http://insurancecommunityuniversity.com/UniversityResources/InsuranceGlossaryFREE.aspx http://www.ambest.com/resource/glossary.html

http://www.irmi.com/online/insurance-glossary/default.aspx

Optional Coverages The following represents a list of insurance coverages that are not included in this proposal, but are optional and may be available with further underwriting information. Note some of these coverages may be included with limitations or insured elsewhere. This is a partial listing as you may have additional risks not contemplated here or are unique to your organization.

Crime / Fidelity Insurance

Directors & Officers Liability

Earthquake Insurance

Employed Lawyers

Employment Practices Liability

Event Cancellation

Fiduciary Liability

Fireworks Liability

Flood Insurance

Foreign Insurance

Garage Keepers Liability

Kidnap & Ransom

Law Enforcement Liability

Media and Publishers Liability

Medical Malpractice Liability

Network Security / Privacy Liability and

Internet Media Liability

Pollution Liability

Owned/Non-Owned Aircraft

Owned Watercraft

Special Events Liability

Student Accident

Volunteer Accidental Death &

Dismemberment (AD&D)

Workers’ Compensation

Workplace Violence



http://insurancecommunityuniversity.com/UniversityResources/InsuranceGlossaryFREE.aspx

http://www.ambest.com/resource/glossary.html

http://www.irmi.com/online/insurance-glossary/default.aspx


Request to Bind Coverage

Public Entity Risk Management Authority

We have reviewed the proposal and agree to the terms and conditions of the coverages presented.

We are requesting coverage to be bound as outlined by coverage line below:

Coverage Line Bind Coverage for:

DEADLY WEAPON RESPONSE PROGRAM

Per Claim $500,000 Aggregate (Shared by Members of

Pool/JPA) $2,500,000

☐

$10,719.38

This Authorization to Bind Coverage also acknowledges receipt and review of all disclaimers and

disclosures, including exposures used to develop insurance terms, contained within this proposal.

Signature of Authorized Insurance Representative Date

Title

Printed / Typed Name

This proposal does not constitute a binder of insurance. Binding is subject to final carrier

approval. The actual terms and conditions of the policy will prevail.

