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BOARD OF DIRECTORS ANNUAL MEETING Wednesday May 22, 2019 – 9:00 a.m.
Thursday May 23, 2019 – 9:00 a.m.
CJPRMA 3201 Doolan Road, Suite 285
Livermore, CA 94551 (925) 837-0667
ITINERARY
DAY 1: WEDNESDAY MAY 22, 2019 8:00 - 9:00 ♦ Hot Breakfast Buffet 9:00 - 10:30 ♦ Keynote: Influence without Authority: Getting a Seat at the Table David Rabiner, CSP, Rabiner Resources, Inc. 10:30 - 10:45 ♦ Break 10:45 - 12:00 ♦ Board Meeting 12:00 - 12:45 ♦ Lunch (Moroccan Pita Bar) 12:45 - 1:45 ♦ Board Meeting (continued) 1:45 - 2:00 ♦ Break 2:00 - 4:30 ♦ Board Member Training: “How to Collaborate with CJPRMA, Your Legal team and
Your Departments to Successfully Resolve Litigation.” Greg Fox, Founding Senior Partner, Bertrand, Fox, Elliot, Osman & Wenzel 4:30 - 5:30 ♦ Hotel Check-In 5:30 - 6:00 ♦ Board Bus at Hotel for Murietta’s Well 6:00 - 7:00 ♦ Hors d’oeuvres and Networking (Murietta’s Well) 7:00 - 9:00 ♦ Dinner and Dessert (Murietta’s Well) 9:00 ♦ Board Bus to Hotel
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BOARD OF DIRECTORS ANNUAL MEETING Wednesday May 22, 2019 – 9:00 a.m.
Thursday May 23, 2019 – 9:00 a.m.
CJPRMA 3201 Doolan Road, Suite 285
Livermore, CA 94551 (925) 837-0667
ITINERARY
DAY 2: THURSDAY MAY 23, 2019
6:30 - 8:30 ♦ Complimentary full hot Breakfast buffet at hotel before coming to meeting. Check out of hotel.
9:00 - 10:00 ♦ Board Member Training – Deadly Weapon Harry Rhulen, CEO and Co-Founder, CrisisRisk Strategies, LLC 10:00 - 11:00 ♦ Board Member Training – Media Relations Laura Cole, President & Co-Founder, Cole Pro Media 11:00 - 11:15 ♦ Break 11:15 - 12:30 ♦ Board Meeting 12:30 - 1:15 ♦ Lunch (BBQ) 1:15 - 3:15 ♦ Board Meeting (continued) 3:15 - 3:30 ♦ Break 3:30 - 5:00 ♦ Board Meeting (conclusion)
Page 2
Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837-0667 24 hours in advance of the meeting.
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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
BOARD OF DIRECTORS ANNUAL MEETING Wednesday May 22, 2019 – 9:00 a.m.
Thursday May 23, 2019 – 9:00 a.m.
CJPRMA 3201 Doolan Road, Suite 285
Livermore, CA 94551 (925) 837-0667
AGENDA
I. CALL TO ORDER
II. ROLL CALL
III. CLOSED SESSION
1. Government Code Section 54956.9 (a) Conference with Legal Counsel – Litigation
Name of Case: L.M. minor by Ashley McCain, Estate of Steven Motley, Carol Adams vs. City of Redding, Chief Robert F. Paoletti
Court: United States District Court, Eastern District of California Case No.: 2:14-cv-00767-MCE-AC
2. Government Code Section 54956.9 (a) Conference with Legal Counsel – Litigation
Name of Case: Pimentel et al. vs. City of Stockton Court: United States District Court, Eastern District of California Case No.: 2:17-CV-00931-WBS-AC
3. Government Code Section 54956.9 (a) Conference with Legal Counsel – Litigation
Name of Case: Robert Shelton, Cheyenne Shelton, & Steven Bryan vs. Patrick Medina and City of Stockton
Court: State of California Superior Court, County of San Joaquin Case No.: STK-CV-UAT-2016-0012119
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Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837-0667 24 hours in advance of the meeting.
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IV. ACTION ON CLOSED SESSION ITEMS
V. PRESENTATIONS
• None
VI. THIS TIME IS RESERVED FOR MEMBERS OF THE PUBLIC TO ADDRESS THE BOARD OF DIRECTORS ON MATTERS OF BOARD BUSINESS. STATE LAW PROHIBITS ACTION BY THE BOARD ON NON-AGENDA ITEMS.
VII. COMMUNICATIONS
A. Board Members B. General Manager/Secretary C. Next Scheduled Meetings: Executive Committee (06/20/2019) Richmond
Board of Directors (08/15/2019) CJPRMA
VIII. APPROVAL OF MINUTES
• Minutes the Board of Directors meeting held on March 21, 2019. (Pages 6 -12)
IX. CONSENT CALENDAR
1. Additional Covered Party Certificates Approved by the General Manager (A) (Pages 13 - 17)
2. Financial Report of CJPRMA as of January 31, 2019 (A) (Pages 18 - 35)
4. Status Update on General Manager’s Goals & Objectives (I) (Pages 46 - 51)
5. Settlement of Claims Discussed in Closed Session (I) (Page 52)
X. ACTION (A) AND INFORMATION (I) CALENDAR
6. Report from the Investment Manager (I) (Pages 53 - 143)
7. Approval of Proposed Administrative and Direct Program Budget for Fiscal Year 2019-2020 (A) (Pages 144 - 156)
8. Approval of Liability and Auto Physical Damage Renewal for Program Year 2019-2020 (A) (Pages 157 – 158)
9. Approval of the Revised PY 2019-2020 Liability Premium Funding (A) (Pages 159 – 161)
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Per Government Code section 54954.2, persons requesting disability-related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837-0667 24 hours in advance of the meeting.
pg. 3
10. Approval of Property Renewal for Program Year 2019-2020 (A) (Pages 162 – 163)
11. Approval of the Property Program Deductible Buy-Down (A) (Page 164)
12. Approval of Changes to the CJPRMA Property Program Memorandum of Coverage (A) (Pages 165 – 244)
13. Approval of Proposed Amendments to the CJPRMA Bylaws Article III, Directors & Officers, and Article IV, Executive Committee (A) (Pages 245 - 275)
14. Claims Experience Report (I) (Page 276)
15. New Board Directors/Alternates (I) (Pages 277 - 279)
16. Business Calendar for 2019 and 2020 (I) (Pages 280 - 284)
17. Approval of Meeting Calendar for 2020 (A) (Pages 285 - 286)
18. Approval of Holiday Calendar for 2020 (A) (Pages 287 - 288)
19. Risk Management Issues (I) (Pages 289 - 297)
XI. ADJOURNMENT
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Per Government Code section 54954.2, persons requesting disability‐related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837‐0667 24 hours in advance of the meeting.
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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
BOARD OF DIRECTORS MEETING Thursday March 21, 2019 – 9:00 a.m.
CJPRMA Office
3201 Doolan Road, Suite 285 Livermore, CA 94551
(925) 837‐0667
MINUTES I. CALL TO ORDER
President Greer called the meeting to order at 9:06 a.m. on March 21, 2019.
II. ROLL CALL
PRESENT
OTHERS PRESENT 22) Tony Giles, CJPRMA 32) A. Byrne Conley, Gibbons & Conley 23) Lola Deem, CJPRMA 33) P.J. Skarlanic, Alliant Insurance Services 24) Marinda Griese, CJPRMA 34) Dr. William Deeb, AON Risk Services 25) Saima Kumar, CJPRMA 35) Kyle Powell, AON Risk Services 26) Marcia Hart, CJPRMA 36) Bill Dennehy, Chandler Asset Management 27) Susanna Banuelos, CJPRMA 37) Dana Suntag, Herum\Crabtree\Suntag 28) Michael Roush, Alameda 38) Joshua Stevens, Herum\Crabtree\Suntag 29) Peter Pierce, Fairfield 39) Laura Marquez, Richmond 30) Jas Sidhu, Livermore 40) Andria Borba, Vacaville 31) Amanda Tonks, Santa Rosa 41) Theresa Roland, Stockton
1) Lucretia Akil, Alameda 11) Kim Greer, Richmond
2) Jamie Cannon, Chico 12) David Rawe, Roseville 3) Chris Carmona, Fairfield 13) Liz Ehrenstrom, NCCSIF 4) Steve Schwarz, Fremont 14) Lauren Monson, San Rafael 5) Janet Hamilton, Livermore 15) Mary Ann Perini, San Leandro 6) Janice Magdich, Lodi 16) Dominique Kurihara, Santa Rosa 7) Dan Sodergren, LPFD 17) Roger Carroll, SCORE 8) Cecilia Quiambao, Petaluma 18) Gail Kiyomura, Stockton 9) Lynette Frediani, Redding 19) Scott Mann, Sunnyvale 10) Amy Northam, REMIF 20) GeorgeAnne Meggers‐Smith, Vacaville 21) David Due, YCPARMIA
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Per Government Code section 54954.2, persons requesting disability‐related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837‐0667 24 hours in advance of the meeting.
pg. 2
III. CLOSED SESSION
1. Government Code Section 54956.95 (a) Conference with Legal Counsel – Litigation
Name of Case: Keimach, Jill vs. City of Alameda Court: State of California Superior Court, County of Alameda Case No.: N/A
2. Government Code Section 54956.9 (a) Conference with Legal Counsel – Litigation
Name of Case: Febe Tabotabo; Andre Tabotabo; Titus Tabatabo II; Natividad Tabotabo vs. City of Stockton; Nestor Velasquez; John Strawder, and Does 1 – 100
Court: State of California Superior Court, County of San Joaquin Case No.: STK‐CV‐UAT‐2018‐3998
3. Government Code Section 54956.9 (a) Conference with Legal Counsel – Litigation
Name of Case: Jill Schoonmaker vs. City of Eureka and Does 1 – 10 Court: United States District Court, Northern District of California Case No.: 3:17‐cv‐6749
4. Government Code Section 54956.9 (a) Conference with Legal Counsel – Litigation
Name of Case: Robert Shelton, Cheyenne Shelton, & Steven Bryan vs. Patrick Medina and City of Stockton
Court: State of California Superior Court, County of San Joaquin Case No.: STK‐CV‐UAT‐2016‐0012119
IV. ACTION ON CLOSED SESSION ITEMS
The Board of Directors conferred with staff regarding litigated claims and provided direction. V. PRESENTATIONS
None
VI. THIS TIME IS RESERVED FOR MEMBERS OF THE PUBLIC TO ADDRESS THE BOARD OF DIRECTORS ON MATTERS OF BOARD BUSINESS. STATE LAW PROHIBITS ACTION BY THE BOARD ON NON‐AGENDA ITEMS.
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Per Government Code section 54954.2, persons requesting disability‐related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837‐0667 24 hours in advance of the meeting.
pg. 3
VII. COMMUNICATIONS
A. Board Members B. General Manager/Secretary C. Next Scheduled Meetings: Executive Committee (04/18/2019) Redding
Annual Board of Directors (05/22 & 23/2019) CJPRMA
VIII. APPROVAL OF MINUTES
A motion was made by Director Akil and seconded by Director Carmona to approve the minutes of three Board of Directors meeting held on 1) November 15, 2018, 2) Special telephonic meeting held on December 10, 2018, and 3) Special Telephonic meeting held on February 7, 2019. Directors Cannon, Schwarz, Hamilton, Sodergren, Frediani, Greer, Northam, Quiambao, Rawe Ehrenstrom, Monson, Perini, Kurihara, Carroll, Kiyomura, Mann, Meggers‐Smith, and Due approved the motion. Lodi abstained from voting. Motion passed.
IX. CONSENT CALENDAR
1. Additional Covered Party Certificates Approved by the General Manager (A)
2. Financial Report of CJPRMA as of October 31, 2018 (A)
3. 2017‐2019 Strategic Planning (I)
4. Status Update on General Manager’s Goals & Objectives (I)
5. Settlement of Claims Discussed in Closed Session (I)
A motion was made by Director Northam and seconded by Director Carroll to approve the consent calendar. Directors Akil, Cannon, Schwarz, Carmona, Hamilton, Magdich, Sodergren, Ehrenstrom, Quiambao, Frediani, Greer, Monson, Rawe, Perini, Kurihara, Kiyomura, Mann, Meggers‐Smith and Due approved the motion. Motion passed.
X. ACTION (A) AND INFORMATION (I) CALENDAR
6. Report from the Investment Manager (I)
Bill Dennehy, of Chandler Asset Management was present to discuss the portfolio and our investment strategy.
Pool investments are managed by Chandler Asset Management. The assets are held in CJPRMA’s bank custody account managed by the Bank of New York.
The investment program is divided into three parts: The Loss Payment Account, the Long Term Growth Account and the Long Term Growth/Tactical Account.
The Loss Payment Account is utilized to provide funds for operating expenses and the payment of losses. The Loss Payment Account invests in high grade securities with a maximum
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Per Government Code section 54954.2, persons requesting disability‐related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837‐0667 24 hours in advance of the meeting.
pg. 4
maturity of five years. As of February 28, 2019 the Loss Payment Account was valued at $8,190,438. This was a decrease of $1,929,184 from its valuation of $10,119,622 on November 30, 2018. Several securities were purchased in the Treasury, Agency, Asset Backed and Commercial Paper sectors of the market to keep the portfolio fully invested. The purchased securities range in maturity from June 2019 to January 2022. One security was sold and several matured to facilitate the new holdings in the portfolio. Additionally, $2 million was withdrawn during the reporting period reducing the LAIF balance in the allocation. The Loss Payment Account has sufficient funds to meet the expenditure requirements of the next six months.
Both Long Term Growth Accounts are utilized to provide long term asset growth in order to offset inflation. The maturity range of these investments is a maximum of ten years.
As of February 28, 2019 the Long Term Growth Account / Tactical was valued at $17,239,248. This was an increase of $279,585 from its valuation of $16,959,663 on November 30, 2018. The portfolio purchased several securities during the quarter in the Treasury, Agency, Asset Backed and Corporate sectors of the market. The majority of the purchases have maturity dates in 2023 with the exception of the Asset Backed security which has a shorter maturity profile. Several securities were sold to facilitate the new holdings in the portfolio.
As of February 28, 2019, the Long Term Growth Account was valued at $39,228,437. This was an increase of $1,076,166 from its valuation of $38,152,271 on November 30, 2018. Transactional activity in the portfolio was light in the reporting period. The structure of the portfolio remains in line with Chandler targets and the only purchase made was to adjust the overall duration of the strategy via an extension transaction in the Treasury sector.
The investments in all accounts comply with CJPRMA’s investment policy.
No action was required. This is an information only item.
7. Liability and Auto Physical Damage Renewal Strategy Plan for Program Year 2019‐2020 (I)
Aon Risk Services and CJPRMA Staff have met and created a renewal strategy for the 2019‐2020 coverage programs. Dr. William Deeb of Aon Risk Services was present to update the Board of Directors on the renewal process, condition of the market, and recommendations on the overall strategy for renewal. The renewal strategy includes the timing of delivery of data to underwriters and a set of expectations for receiving quotations. The goal for the renewal strategy is to provide the Board of Directors with a complete renewal plan for approval at the May 2019 Meeting.
CJPRMA members provided updated underwriting data for Aon to use in marketing the programs. Having current and accurate data helps the carriers to better understand our risk, and it helps our broker better negotiate favorable terms. Staff and Aon will continue to work on the data collection format for the liability program in order to make it easier to use for members.
No action was required. This is an information only item.
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Per Government Code section 54954.2, persons requesting disability‐related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837‐0667 24 hours in advance of the meeting.
pg. 5
8. Property Renewal Strategy Plan for Program year 2019‐2020 (I)
The general manager discussed the 2019‐2020 Property Program renewal process. He explained that CJPRMA’s property program currently utilizes domestic carriers for approximately 25% of the primary $25,000,000 in limits and the remaining 75% is placed in the Lloyd’s of London marketplace. The 2019‐2020 program is anticipated to maintain a similar ratio of domestic placements to London market placements. Coverage in excess of the primary layer is provided by the (Alliant Property Insurance Program (APIP) structure.
Alliant Insurance Services and CJPRMA Staff created a renewal strategy for the 2019‐2020 Property Program renewal. Mr. Robert Lowe and the general manager recently met with the Lloyd’s underwriters currently participating in the program. The general manager introduced himself to the underwriters and explained CJPRMA’s commitment to risk management activities. The general manager, the brokers and the underwriters spent a considerable amount of time discussing California wildfires and their impact on the global property insurance market. While the topic was not directly addressed by most of the underwriters, there is a sense that a higher separate deductible for wildfire could be proposed by the market.
The London marketplace is under pressure to achieve profitability, and Lloyd’s has also limited the amount of new business that most syndicates are authorized to write. The underwriters are being pushed toward quality, and the meetings with the underwriters have taken on renewed importance. The underwriter’s value long‐term stable relationships, and the messaging from CJPRMA was that we also want to create and maintain such relationships.
While in London, staff also attended a presentation on Beazley’s Deadly Weapon (formerly Active Shooter) Programs. Staff has invited Beazley to attend the Board of Directors annual meeting that will describe the risk and the coverage.
The 2019‐2020 renewal strategy includes the timing of delivery of data to the underwriters and a set of expectations for receiving quotations. The goal for the renewal strategy is to provide the Board of Directors with a complete renewal plan for approval at the May Board of Directors meeting. Program participants were asked to provide updates schedules of value by March 14, 2019. Mr. P.J. Skarlanic, Vice President of Alliant Insurance Services presented an update on the renewal process and an update of the status of the insurance marketplace.
Prior to moving the Property Program to Alliant, the program was governed by a Memorandum of Coverage (MOC) that was reinsured following form to the MOC. With the move to Alliant, the coverage form for the Property Program has been the Alliant APIP form. There have been some challenges in aligning the MOC with APIP. The APIP form is very broad, and it is a large form. In trying to mirror the APIP form, there have been instances in which the MOC and the APIP form have been in conflict. This has created confusion for program participants and confusion when we need to provide coverage information to third parties (e.g. CalOES or FEMA).
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Per Government Code section 54954.2, persons requesting disability‐related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837‐0667 24 hours in advance of the meeting.
pg. 6
The general manager will request action from the program participants at the annual meeting to address these conflicts. Rather than try to align the MOC with APIP and create confusion as to coverage, the recommendation will be to adopt the APIP form as the controlling document for the program and eliminating the MOC. If there are any specific differences from APIP that program participants would like to include, those can be addressed via endorsements to APIP or through a greatly reduced MOC that covers only those differences.
No action was required. This is an information only item.
9. Proposed Amendments to the CJPRMA Bylaws Article III, Directors & Officers, and Article IV, Executive Committee (I)
The general manager recommended that he would like to propose a change to the CJPRMA Bylaws at the annual meeting to the Board of Directors. This would also serve as thirty day written notice of proposed amendments. Article XV of the CJPRMA Bylaws states the process for amending the Bylaws:
“These Bylaws may be amended by a majority vote of the entire Board provided that any amendment is compatible with the purposes of the Authority, is not in conflict with the JPA Agreement, and has been submitted to the Board at least thirty (30) days in advance.”
It was explained that in 2017, the Board of Directors approved an amendment to the Bylaws reducing the annual number of board meetings from five to four. Since then, the Board has not held a June meeting. The current Bylaws call for Officer and Executive Committee elections to be held during the June meeting. The proposed amendment changes that to the August meeting. This is consistent with Board practice since 2017.
No action was required. This is an information only item.
10. New Board Members/Alternates (I)
Notifications regarding a change in director/alternate designations that have been received as of the last meeting are indicated herein:
1) Fairfield Director Chris Carmona – Risk Manager
2) Alameda Alternate Michael Roush – Interim City Attorney
3) YCPARMIA Alternate David Due – Staff Investigator II
4) Petaluma Alternate Peggy Flynn – City Manager
No action was required. This is an information only item.
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Per Government Code section 54954.2, persons requesting disability‐related modifications or accommodations, including auxiliary aids or services in order to participate in the meeting, are requested to contact CJPRMA at (925) 837‐0667 24 hours in advance of the meeting.
pg. 7
11. Business Calendar for 2019 (I)
The 2019 business calendar was provided to the Board as a standing agenda item. The calendar provides key business items and the required dates for completion for the Board.
No action was required. This was an information only item.
12. Risk Management Issues (I)
The Directors discussed the following risk management issues:
1) PTSD Issues in Fire Departments – Gail Kiyomura, Stockton
2) ADA coordinators and ADA training: suggestions for good resources to train staff on appropriate ways to interact with disabled public, as well as types of services available – Lauren Monson, San Rafael
3) Mandatory Settlement Authority through video – Cecilia Quiambao, Petaluma
No action was required. This was an information only item.
XI. ADJOURNMENT
The meeting was adjourned at 1:20 p.m.
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Back to Agenda
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 1 TITLE: ADDITIONAL COVERED PARTY CERTIFICATES APPROVED BY THE GENERAL MANAGER
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
Approval of the additional covered party certificates that have been issued by the general manager.
Strategic Direction:
This item addresses Strategic Goal 4, Actively Market the Value of CJPRMA Both Externally and Internally. Item Explanation:
Attached is Exhibit 1, which is a list of the 38 additional covered party certificates that have been approved by the general manager and issued since the last board meeting.
Fiscal Impact:
None
Exhibits:
1. Report of Additional Covered Party Certificates Approved by the General Manager
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Certificate of Coverage Report Date Board Notice: May 22, 2019
Organization: Ascending order
Organization Member Additional Covered Party Amount of Coverage Requested
Activity Start Date
Activity End Date
Description
Alameda Alameda Sacramento Municipal Utility District ("SMUD"). 2,000,000.00 Jun 17, 2019
Jun 28, 2019
Climbing Training for Alameda Municipal Power, City of Alameda employees by Sacramento Power Academy.
Chico Chico "That the State of California, the District Agricultural Association, County Fair, the County in which the fair is located, Lessor/Sublessor if fair site is leased/subleased, Citrus Fruit Fair, California Exposition and State Fair, of Entities (public or non-profit) operating California designated agricultural fairs, their directors, officers, agents servants, and employees are made additional insured, but only insofar as the operations under this contract are concerned."
YCPARMIA Davis Chamber of Commerce, its officers, directors, employees and volunteers (collectively DCOC).
1,000,000.00 May 16, 2019
May 16, 2019
Participation in 'Celebrate Davis' at 1405 "F" Street, Davis, CA.
County of Yolo
YCPARMIA State of California, California Exposition & State Fair, its agents, officers, directors, employees and servants.
1,000,000.00 Jun 14, 2019
Aug 4, 2019
Exhibit at the 2019 California State Fair (July 21-28, 2019)
Dixon NCCSIF "That the State of California, the 36th District Agricultural Association, County Fair, Citrus Fruit Fair, and California Exposition and State Fair or Entities (public or non-profit) operating California designated agricultural fairs, their directors, officers, agents, servants, and employees are made additional insured, but only insofar as the operations under this contract are concerned."
1,000,000.00 May 7, 2019
May 13, 2019
Rental Agreement Contract # CI-19-340 with Dixon Police Department for Booth at the Dixon May Fair.
Esparto Unified School District
YCPARMIA River City Baseball Investment Group, LLC ; Sacramento River Cats Baseball Club, LLC; River Stadium Management, LLC; River City Parking, LLC; River City Freeze, LLC; River City Concessions, LLC; River City Land Holding Company, LLC; City of West Sacramento, its officers, officials, employees and volunteers; County of Sacramento; County of Yolo; River City Regional Stadium Financing Authority; BNY
2,000,000.00 Mar 19, 2019
Mar 19, 2019
Use of Raley Field for High School Varsity Baseball Game
Eureka REMIF Eureka City Schools, its officials, agents and employees.
1,000,000.00 Apr 30, 2019
Apr 30, 2019
Community meeting for future park improvements, outreach meeting at Lincoln School Cafeteria.
Eureka REMIF Pacific View Charter School 1,000,000.00 Apr 11, 2019
Apr 11, 2019
Facility Rental Agreement for community meeting for public re: improvements to park
Folsom NCCSIF "State of California and U.S. Bureau of Reclamation, their officers, employees, and servants, are included as additional covered party but only insofar as operations under this contract or permit are concerned."
1,000,000.00 May 5, 2019
May 5, 2019
City of Folsom's Police Department Peace Officers Memorial Ride event.
Folsom NCCSIF Broadstone Land LLC/Palladio at Broadstone and TRI Property Management Services, Inc., and subsidiary or affiliate.
1,500,000.00 May 11, 2019
May 11, 2019
Love My Mom 5K event.
Folsom NCCSIF Folsom Cordova Unified School District 1,000,000.00 Mar Mar City of Folsom Zoo
May 15, 2019 - 1 - 11:24:37 AMPage 14
Certificate of Coverage Report Date Board Notice: May 22, 2019
Organization: Ascending order
Organization Member Additional Covered Party Amount of Coverage Requested
Activity Start Date
Activity End Date
Description
28, 2019
28, 2019
Outreach Program at Russell Ranch Elementary
Fortuna REMIF Town of Scotia Company, LLC, its officers, officials, employees and volunteers
1,000,000.00 Mar 15, 2019
Apr 30, 2019
Fortuna using boom mower to clear underbrush located on Town of Scotia property.
Fremont Fremont Alameda County, *its Board of Supervisors, officers, agents and employees.
1,000,000.00 Feb 10, 2019
Feb 10, 2022
Various meetings and training activities to be performed at Alameda County Sheriff's training facility.
Lakeport REMIF County of Lake, its officers, officials, employees, agents and volunteers.
1,000,000.00 Dec 19, 2018
Jun 30, 2019
Agreement between County of Lake and City of Lakeport for public safety dispatch services. (202554.5)
Generating Facility Interconnection Agreement for Non- Export Generating Facilities, Generating Facility Identification Number: 60O242236, Producer's electric service agreement ID number 4722231834
Livermore Livermore Pape Material Handling 1,000,000.00 Mar 25, 2019
Apr 2, 2019
Rental of vehicle (1 OT/T2-30, Equip # R 578) for use by Water Resources Division while City vehicle is being repaired. (Contract Number 7200373 S/N: 345661
Loomis SCORE Placer Union High School District and it's officers, agents, and employees.
1,000,000.00 May 4, 2019
May 4, 2019
Town of Loomis Spring Clean Up Day 5-4-19, Upper parking lot of Del Oro High School
Oroville NCCSIF American River Bank (the assignee of Holman Capital Corporation)
10,000,000.00 Apr 3, 2019
Apr 3, 2033
Lease-purchase agreement dated April 3, 2019 between the City of Oroville and Holman Capital Corporation for Solar and Energy Project.
Oroville NCCSIF Monday Club Foundation. 1,000,000.00 Apr 10, 2019
Apr 10, 2019
City of Oroville Docents Awards Luncheon.
Petaluma Petaluma Mr. Paul Foley, "131 Liberty Street LLC" 1,000,000.00 Apr 22, 2019
Jul 8, 2019
Fire Department Training.
Richmond Richmond Community Housing Development Corporation (CHDC), elective and appointed officials, other officers and directors, limited and general partners, and employees.
2,000,000.00 Mar 1, 2019
Jun 30, 2019
After school/homework activities.
Richmond Richmond State of California, its officers, agents, employees, and servants.
1,000,000.00 Oct 23, 2017
Jun 30, 2019
Develop strategies to reduce carbon emissions, improve air quality, & build
May 15, 2019 - 2 - 11:24:37 AMPage 15
Certificate of Coverage Report Date Board Notice: May 22, 2019
Organization: Ascending order
Organization Member Additional Covered Party Amount of Coverage Requested
Activity Start Date
Activity End Date
Description
resiliency in the face of changing climate with a focus on low-income and disadvantaged communities. Transformative Climate Communities Program Planning Grant No. 3018-706.
Richmond Richmond West Contra Costa Unified School District and the State of California and their representatives, employees, trustees, officers, and volunteers.
1,000,000.00 Feb 4, 2019
Jun 30, 2019
To provide special service and advise in financial, economic, accounting, engineering, legal or administrative matters.
Rio Dell SCORE Rio Dell School District, its officials, agents and employees.
1,000,000.00 May 11, 2019
May 11, 2019
Spring Clean-up day on May 11, 2019.
San Leandro San Leandro
San Leandro Unified School District 1,000,000.00 Mar 21, 2019
Apr 4, 2019
Special Event - San Leandro Police Fitness Training at Burrell Field.
San Leandro San Leandro
San Leandro Unified School District. 1,000,000.00 May 2, 2019
May 2, 2019
San Leandro Police S.W.A.T. and Hostage Negotiation Training at San Leandro High School Music and Vocation building.
San Rafael San Rafael
BioMarin Pharmaceutical Inc. 6,000,000.00 May 2, 2019
May 2, 2019
San Rafael Police Department training on 5/2/19 from 9:30 a.m. to 11:30 a.m. at 700 Irwin Street, San Rafael.
San Rafael San Rafael
Certificate holder, as owner, Harvest Properties, Inc., as property manager, and their respective agents, members, partners, employees, officers, directors and mortgagees.
1,000,000.00 Apr 10, 2019
Mar 11, 2020
City of San Rafael General Plan Steering Committee meetings to be held on 4/10/19, 6/12/19, 7/10/19, 8/14/19, 9/11/19, 10/9/19, 11/13/19, 12/11/19/ 1/8/20, 2/12/20, 3/11/20.
San Rafael San Rafael
MGP XI NORTHGATE LLC and Merlone Geier Management, LLC, and their respective officers, directors, partners, shareholders, agents and employees.
1,000,000.00 Apr 1, 2019
Apr 30, 2019
Pop-up public library concept with books, both bounded and e-books, a children's corner, staff office, storage area and possibly a sales area for used book sales.
San Rafael San Rafael
MGP XI NORTHGATE, LLC, MERLONE GEIER MANAGEMENT, LLC, their officers, directors, employees, beneficiaries and agents, and Northgate Mall.
1,000,000.00 May 1, 2019
Apr 30, 2020
Pop-up library including books, DVDs and other library materials to borrow, as well as a book drop, holds pickup and interactive technology and play spaces.
Santa Rosa Santa Rosa
Bellevue Union School District. 1,000,000.00 Jun 6, 2019
Jun 28, 2019
Use of facilities for Neighborhood Recreational Summer Camp from 6/6/19 to 6/28/19.
May 15, 2019 - 3 - 11:24:37 AMPage 16
Certificate of Coverage Report Date Board Notice: May 22, 2019
Organization: Ascending order
Organization Member Additional Covered Party Amount of Coverage Requested
Activity Start Date
Activity End Date
Description
Stockton Stockton The Giants Community Fund and San Francisco Baseball Associates, LLC, The Office of the Commissioner of Baseball, its Bureaus, Committees, Subcommittees and Councils, MLB Advanced Media, L.P., Major League Baseball Enterprises, Inc., Major League Baseball Properties, Inc. (doing business in its own name and as Major League Baseball Productions and Major League Baseball International), The MLB Netw
2,000,000.00 Apr 6, 2019
Dec 31, 2019
Junior Giants baseball program for boys and girls ages 5-18 years old.
Sunnyvale Sunnyvale Peninsula Corridor Joint Powers Board, San Mateo County Transit District, the Santa Clara Valley Transportation Authority, the City and County of San Francisco, TransitAmerica Services, Inc. or any successor operator of service Union Pacific Railroad Company and their respective directors, officers, employees, volunteers and agents while acting in such capacity, and their successors or assignees, as they now, or as they may hereafter be constituted, singly, jointly or severally.
5,000,000.00 May 1, 2019
Jun 30, 2020
Under License Agreement No. 800835, the City of Sunnyvale in the vicinity of MP 38.8 will install traffic signal hardware and wiring at intersection of North Sunnyvale & Hendy (the Facilities)upontheProperty.
Sunnyvale Sunnyvale The State of California, Judicial Council of California,andtheSuperiorCourtofCalifornia,County of Santa Clara, including their respective elected and appointed officials, judges, subordinate judicial officers, officers employees and agents.
1,000,000.00 May 16, 2019
May 16, 2019
License agreement for use of real property (parking lot) to support city sponsored food court operations for Employee Wellness and Employee Engagement Programs from 8:00 am to 5:00 pm on May 16, 2019.
Ukiah REMIF Ukiah Unified School District 2,000,000.00 Mar 18, 2019
Apr 18, 2019
Temporary use of UUSD property to conduct geotechnical investigation for possible design of recycled water pipeline, one bore located on southwest corner of the north Polomita field.
Valley Clean Energy Alliance JPA
YCPARMIA Davis Chamber of Commerce, its officers, directors, employees and volunteers (collectively DCOC).
1,000,000.00 May 16, 2019
May 16, 2019
Participation in 'Celebrate Davis' at 1405 F Street, Davis, CA.
Willows NCCSIF California Northern Railroad and its affiliates. 2,000,000.00 Apr 5, 2019
Jun 5, 2019
Right of Entry License Agreement with the City of Willows, Permit No. CFNR19028142.
Yuba City NCCSIF The County of Sutter and the Community Memorial Museum of Sutter County and their respective Board of Supervisors and Board of Directors, officers, trustees, agents, employees, and vounteers.
1,000,000.00 Apr 10, 2019
Apr 11, 2019
Use of Ettl Hall for staff training.
Summary 63,500,000.00
May 15, 2019 - 4 - 11:24:37 AMPage 17
Back to Agenda
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 2 TITLE: FINANCIAL REPORT OF CJPRMA AS OF JANUARY 31, 2019
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
Approval of the financial reports as of January 31, 2019
Strategic Direction:
This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive. Item Explanation:
Attached are the financial reports as of January 31, 2019. Staff recommends that the financial reports be approved.
Fiscal Impact:
None Exhibits:
1. Financial report as of January 31, 2019.
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System: 5/13/2019 8:25:28 AM California Joint Powers Page: 1User Date: 11/30/2018 VENDOR CHECK REGISTER REPORT User ID: LOLA Payables Management
Ranges: From: To: From: To: Check Number First Last Check Date 11/1/2018 11/30/2018 Vendor ID First Last Checkbook ID First Last Vendor Name First Last
System: 5/13/2019 8:25:28 AM California Joint Powers Page: 2User Date: 11/30/2018 VENDOR CHECK REGISTER REPORT User ID: LOLA Payables Management
* Voided Checks
Check Number Vendor ID Vendor Check Name Check Date Checkbook ID Audit Trail Code Amount --------------------------------------------------------------------------------------------------------------------------------- 21496 VISTA GRANDE VISTA GRANDE LANDSCAPE MGMT 11/28/2018 BOA CKG PMCHK00000735 $755.00 -------------------- Total Checks: 59 Total Amount of Checks: $343,133.68 ====================
Page 20
System: 5/13/2019 8:26:28 AM California Joint Powers Page: 1User Date: 12/31/2018 VENDOR CHECK REGISTER REPORT User ID: LOLA Payables Management
Ranges: From: To: From: To: Check Number First Last Check Date 12/1/2018 12/31/2018 Vendor ID First Last Checkbook ID First Last Vendor Name First Last
Sorted By: Check Number
* Voided Checks
Check Number Vendor ID Vendor Check Name Check Date Checkbook ID Audit Trail Code Amount --------------------------------------------------------------------------------------------------------------------------------- 21498 DREYER01 MARTINA KLEPETKOVA GUERRERO & 12/4/2018 BOA CKG PMTRX00001573 $662,500.00 21499 WALKER01 WALKER, HAMILTON, KOENIG & BUR 12/4/2018 BOA CKG PMTRX00001573 $750,000.00 21500 SANTA ROSA CITY OF SANTA ROSA 12/4/2018 BOA CKG PMTRX00001574 $3,519,067.27 21502 ADP01 ADP, LLC 12/5/2018 BOA CKG PMCHK00000736 $132.80 21503 ANGELO01 ANGELO, KILDAY & KILDUFF, LLP 12/5/2018 BOA CKG PMCHK00000736 $41,971.89 21504 AON01 AON RISK INS SERVICES WEST, IN 12/5/2018 BOA CKG PMCHK00000736 $13,458.00 21505 CITI CARDS CITI CARDS 12/5/2018 BOA CKG PMCHK00000736 $31.05 21506 CLARE01 CLARE COMPUTER SOLUTIONS 12/5/2018 BOA CKG PMCHK00000736 $1,897.50 21507 FREDIANI LYNETTE FREDIANI 12/5/2018 BOA CKG PMCHK00000736 $569.73 21508 ISAACS, MD ERIC ISAACS, MD 12/5/2018 BOA CKG PMCHK00000736 $625.00 21509 LIVER01 CITY OF LIVERMORE 12/5/2018 BOA CKG PMCHK00000736 $71.31 21510 PINS01 PINS 12/5/2018 BOA CKG PMCHK00000736 $819.00 21511 PRIME MECHANICA PRIME MECHANICAL 12/5/2018 BOA CKG PMCHK00000736 $529.57 21512 RAWE01 DAVID RAWE 12/5/2018 BOA CKG PMCHK00000736 $127.53 21513 SHAMROCK THE SHAMROCK COMPANIES, INC. 12/5/2018 BOA CKG PMCHK00000736 $134.94 21514 SOUTHTECH SOUTHTECH SYSTEMS 12/5/2018 BOA CKG PMCHK00000736 $2,500.96 21515 VANG01 VANGUARD CLEANING SYSTEMS, INC 12/5/2018 BOA CKG PMCHK00000736 $485.00 21516 ADP01 ADP, LLC 12/12/2018 BOA CKG PMCHK00000737 $19.80 21517 ALLIED01 ALLIED ADMINISTRATORS 12/12/2018 BOA CKG PMCHK00000737 $1,045.09 21518 AT&T06 AT&T 12/12/2018 BOA CKG PMCHK00000737 $293.51 21519 ATCONF01 ARKADIN INC 12/12/2018 BOA CKG PMCHK00000737 $28.58 21520 CONEXIS01 WAGEWORKS, INC 12/12/2018 BOA CKG PMCHK00000737 $210.00 21521 CORODATA01 CORODATA RECORDS 12/12/2018 BOA CKG PMCHK00000737 $58.93 21522 DUFF & PHELPS DUFF & PHELPS, LLC 12/12/2018 BOA CKG PMCHK00000737 $6,000.00 21523 FRANCO FRANCO SIGNOR LLC 12/12/2018 BOA CKG PMCHK00000737 $7,500.00 21524 GILES01 ANTHONY GILES 12/12/2018 BOA CKG PMCHK00000737 $168.28 21525 ICMA01 ICMA RETIREMENT TRUST - 457 12/12/2018 BOA CKG PMCHK00000737 $2,240.43 21526 LIV SANITATION LIVERMORE SANITATION, INC. 12/12/2018 BOA CKG PMCHK00000737 $1,312.99 21527 LIVER01 CITY OF LIVERMORE 12/12/2018 BOA CKG PMCHK00000737 $411.14 21528 MAZE01 MAZE & ASSOCIATES 12/12/2018 BOA CKG PMCHK00000737 $2,110.00 21529 PETERS01 PETERS, HABIB, MCKENNA & JUHL- 12/12/2018 BOA CKG PMCHK00000737 $220.00 21530 SMALL01 SMALL BUSINESS BENEFIT 12/12/2018 BOA CKG PMCHK00000737 $126.80 21531 SONITR01 SONITROL 12/12/2018 BOA CKG PMCHK00000737 $1,012.50 21532 STATE01 STATE COMPENSATION 12/12/2018 BOA CKG PMCHK00000737 $248.17 21533 STOCKTON CITY OF STOCKTON 12/12/2018 BOA CKG PMCHK00000737 $27,424.80 21534 TELE01 TPX COMMUNICATIONS 12/12/2018 BOA CKG PMCHK00000737 $1,800.28 21535 VALLEJO CITY OF VALLEJO 12/12/2018 BOA CKG PMCHK00000737 $4,723.72 21536 VENTIV VENTIV TECHNOLOGY INC. 12/12/2018 BOA CKG PMCHK00000737 $951.71 21537 VERIZ01 VERIZON WIRELESS 12/12/2018 BOA CKG PMCHK00000737 $226.97 21538 VISTA GRANDE VISTA GRANDE LANDSCAPE MGMT 12/12/2018 BOA CKG PMCHK00000737 $755.00 21539 GAILIP01 MINDY LOSEE AND THE LAW OFFICE 12/17/2018 BOA CKG PMCHK00000738 $950,000.00 21540 ADP01 ADP, LLC 12/20/2018 BOA CKG PMCHK00000739 $138.76 21541 BLAISDELL'S BLAISDELL'S BUSINESS PRODUCTS 12/20/2018 BOA CKG PMCHK00000739 $181.74 21542 ORKIN01 ORKIN 12/20/2018 BOA CKG PMCHK00000739 $129.90 21543 PG&E PG&E 12/20/2018 BOA CKG PMCHK00000739 $5,328.02 21544 TRIAD TRIAD PARK OWNERS ASSOCIATION 12/20/2018 BOA CKG PMCHK00000739 $676.28 21545 AQUA01 AQUACHILL 12/21/2018 BOA CKG PMCHK00000740 $42.61 21546 AT&T07 AT&T 12/21/2018 BOA CKG PMCHK00000740 $295.55 -------------------- Total Checks: 48 Total Amount of Checks: $6,010,603.11 ====================
Page 21
System: 5/13/2019 8:27:04 AM California Joint Powers Page: 1User Date: 1/31/2019 VENDOR CHECK REGISTER REPORT User ID: LOLA Payables Management
Ranges: From: To: From: To: Check Number First Last Check Date 1/1/2019 1/31/2019 Vendor ID First Last Checkbook ID First Last Vendor Name First Last
System: 5/13/2019 8:27:04 AM California Joint Powers Page: 2User Date: 1/31/2019 VENDOR CHECK REGISTER REPORT User ID: LOLA Payables Management
* Voided Checks
Check Number Vendor ID Vendor Check Name Check Date Checkbook ID Audit Trail Code Amount --------------------------------------------------------------------------------------------------------------------------------- 21605 ICMA01 ICMA RETIREMENT TRUST - 457 1/30/2019 BOA CKG PMCHK00000745 $22,392.53 21606 REDDING CITY OF REDDING 1/30/2019 BOA CKG PMCHK00000745 $45,478.53 21607 RICOH02 RICOH USA INC 1/30/2019 BOA CKG PMCHK00000745 $1,899.03 21608 RIMERMAN01 FRANK, RIMERMAN CO. LLP 1/30/2019 BOA CKG PMCHK00000745 $929.60 21609 STAND002 STANDARD INSURANCE CO 1/30/2019 BOA CKG PMCHK00000745 $902.25 -------------------- Total Checks: 63 Total Amount of Checks: $210,377.00 ====================
Page 23
ASSETSCurrent Assets Cash 1,249,600$ Investments 64,245,815 Total Cash and Investments 65,495,414
Interest Receivable 379,711 Accounts Receivable 2,515,733 Prepaid Insurance 2,751,291 Other Prepaids 180,460 Deposits - Total Current Assets 71,322,610
Capital Assets Building & Improvements 2,821,324 Land 548,250 Equipment 441,778 Office Furniture 151,284 Accumulated Depreciation (946,120) Capital Assets, Net 3,016,516 Total Assets 74,339,125
DEFERRED OUTFLOWS OF RESOURCESDeferred Outflows Related to Pensions 324,600
LIABILITIESCurrent Liabilities Unearned Contributions 6,782,015 Accounts Payable 13,628 Accrued Liabilities 125,624 Accrued Employee Benefits 13,115 Reserve for losses - Liability Current 13,621,113 Deferred Revenue 177,205 Total Current Liabilities 20,732,700
Noncurrent Liabilities Reserve for Loss-Liability 30,037,344 Net OPEB obligation (229,875) Net pension liability 949,102 Total Noncurrent Liabilities 30,756,571 Total Liabilities 51,489,271
DEFERRED INFLOWS OF RESOURCESDeferred Inflows Related to Pensions 61,984
NET POSITION Current Year Earnings 1,063,830 Retained Earnings-Liability 4,418,506 Retained Earnings-Property (9,568) Retained Earnings-Auto Physical Damage (17,070) Excess Loss Fund 17,656,772 Member Refunds - Liability -
Net Operating Income (Loss) (187,244) (70.76) (747,691) (70.28)
Page 26
January % to YTD % to Net Income Net Income
CJPRMASTATEMENT OF OPERATIONS
For the Seven Months Ending January 31, 2019All Departments
Investment Income Interest Income - Liability 139,411 52.68 864,822 81.29 Realized Gain on Investment (24,805) (9.37) (112,287) (10.55) Unrealized Gain on Investment 322,228 121.77 959,500 90.19 Total Investment Income 436,834 165.08 1,712,036 160.93
Other Income/ Expense Gain on disposal of asset - 0.00 - 0.00 Other Income - 0.00 - 0.00 Rental & CAM Income 15,024 5.68 99,486 9.35 Utilities Income - Davita/Golden Gate - 0.00 - 0.00
Net Operating Income (Loss) (175,547) (63.53) (991,026) (120.78)
Investment Income Interest Income 139,411 50.45 864,822 105.40 Realized Gain on Investment (24,805) (8.98) (112,287) (13.69) Unrealized Gain on Investment 322,228 116.62 959,500 116.94
Total Investment Income 436,834 158.09 1,712,036 208.66
Page 29
January % to YTD % toNet Income Net Income
CJPRMASTATEMENT OF OPERATIONS
For the Seven Months Ending January 31, 2019Liability
Other Income/Expense Gain on disposal of asset - 0.00 - 0.00 Other Income - 0.00 - 0.00 Rent & CAM Income 15,024 5.44 99,486 12.13 Utilities Income - Davita/Golden Gate - 0.00 - 0.00
15,024 5.44 99,486 12.13
Net Income (Loss) 276,311 100.00 820,495 100.00
Page 30
January % to YTD % toNet Income Net Income
Operating Revenues Member Contributions - Property 262,323$ 0.00 1,842,261$ 0.00 Member Contributions - Environ Pollution 12,127 0.00 84,889 0.00 Member Contributions - Cyber 3,474 0.00 36,318 0.00 Member Contributions - Corridor Fund 34,710 0.00 242,970 0.00 Member Contributions - Drone 1,767 0.00 9,203 0.00 PY Member Contributions - Property - 0.00 - 0.00 Loss Adjustment Contributions - 0.00 - 0.00 Fees Earned 2,016 0.00 14,112 0.00 Other Income - 0.00 - 0.00 Total Operating Revenues 316,417 0.00 2,229,753 0.00
Less:Assessment Against Liability Reserve 1,625,000 947,916 289,162 17.8% 658,754 Assessment Against Interest 75,000 43,750 36,759 49.0% 6,991
Total G&A 1,957,050$ 1,141,612$ 1,081,536$ 55.3% 60,076$
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ASSETS
OPEB Trust Investments 463,635$
NET POSITION
Total net position held in trust for OPEB 463,635$
CJPRMA
STATEMENT OF FIDUCIARY NET POSITIONAs of January 31, 2019
OPEB TRUST FUND
Page 35
Back to Agenda
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 3 TITLE: 2017-2019 STRATEGIC PLAN
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
None currently. The Strategic Plan update is provided as information only.
Strategic Direction:
This item addresses all of the strategic goals adopted by the organization.
Item Explanation:
The Board of Directors adopted the current strategic plan at the December 15, 2016 board meeting. The general manager has provided status updates for action items, and where no action has been taken, the general manager has recommended reevaluation of the timeline. The Board of Directors will meet in October 2019 to revise the strategic plan. This item presented is a discussion item only. Fiscal Impact:
1. None at this time. Exhibits:
1. CJPRMA Strategic Plan 2017-2019
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STRATEGIC PLAN 2017 - 2019
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The California Joint Powers Risk Management Authority is a member-directed excess liability risk retention pool that is dedicated to protecting its members from catastrophic losses and meeting the needs of its members by:
• Providing comprehensive, stable, and affordable excess liability coverage • Offering competitive and flexible coverage programs • Delivering quality risk management services • Preserving financial strength and solvency
CJPRMA continually exceeds expectations and ensures organizational vitality.
Mission Statement
Vision Statement
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Strategic Goal 1: Employ Customizable Products and Services to be Competitive Key Message: Enhance programs to minimize losses keeping premium rates and program costs competitive with the marketplace
PRIORITY ACTIONS ACTING PARTY STATUS TIMELINE
1. Identify alternative forms of asset management while exploring alternative investment markets to enhance CJPRMA’s return on investment.
Staff Exec
GM and Finance Officer attended seminar and follow-up call on captives in March and April 2019.
July 2017
2. Determine the adequacy of the current contribution methodology of members and develop a three- to five-year program to optimize CJPRMA’s funding. • Include loss development factors in
determining contributions. • Evaluate incentive options for positive loss
experience. • Evaluate increased contributions based upon
adverse loss experience.
Staff Exec
Timeline needs to be reevaluated. October 2017
3. Identify approaches to loss experience and develop an equitable methodology to respond to members that adversely impact the program.
Staff Exec
November 2017. BOD approved policy on “Review of Loss Member History.”
October 2017
4. Conduct a focused evaluation of current CJPRMA’s liability market conditions and implement programs and coverage options that optimize the delivery of services to members.
Staff
Coverage Cmte Brokers
This is an ongoing item. April 2017
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5. Promote effective risk management by providing support to members. • Evaluate options for implementing a TPA-style
claims management service for members.
Staff Exec
GM provides continual support to members. TPA-style claims management not evaluated. January 2018
6. Develop an Excess Workers Compensation Program Model for evaluation by the Board of Directors for 7/1/2018 implementation.
Staff Exec
There was significant activity on this project throughout 2017. Ultimately, not enough members provided data to allow program to move forward.
July 2017
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Strategic Goal 2: Invest Organizational Capital in the Development of Targeted Educational and Training Programs
Key Message: Train and retain members that contribute to the fiduciary health of CJPRMA
PRIORITY ACTIONS ACTING PARTY
STATUS TIMELINE
1. Implement a Board of Directors education academy to enhance the effectiveness and fiduciary stability of CJPRMA. • Identify existing state-of-the-industry trainings, if
available, rather than reinventing the wheel. Communicate to members.
• Offer online/webinar trainings. • Integrate success stories and best practices in
addition to theory.
Staff GM
A formal education academy has not been established. However, many training opportunities have been provided since the inception of the strategic plan and continue to be provided.
May 2017
2. Develop a Board of Directors mentoring program to facilitate enhanced learning by new directors. • Invite new members to attend a CJPRMA
Executive Committee meeting.
Staff Exec
Timeline needs to be reevaluated. March 2017
3. Provide customized and targeted trainings to members and their agencies on critical loss experience areas.
Staff In 2018, training provided on police practices and fire service EPL. EPL training scheduled for June 2019.
April 2017, 2018, 2019
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4. Implement a Risk Management Training Series for members and create a multi-year curriculum to enhance the loss mitigation activities of members. • Mandate board members attend at least one
training annually.
Staff Exec
ARM 54 offered in July 2018. ARM 55 offered in March 2019. No training mandate established as of March 2019.
April 2017
5. Take advantage of current marketplace training opportunities. Make programs available to members from select organizations, such as CAJPA and PARMA, or forge partnerships with other pooling organizations.
Staff CJPRMA promotes training through PARMA, CJPRMA and CSRMA. CJPRMA partners with CSRMA for the annual Sewer Summit.
July 2017, 2018, 2019
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Strategic Goal 3: Foster Informed and Engaged Board Leadership Key Message: Ensure all members understand and embrace risk management and claims management and are
active partners with CJPRMA
PRIORITY ACTIONS ACTING PARTY STATUS TIMELINE
1. Develop and implement a claims management process that integrates clear accountability to ensure long-term sustainability of the program.
Staff Claims Cmte
Claims Committee established and working on this.
May 2017
2. Create a framework to provide post-litigation debriefings based on best practices with executive staff members of agencies experiencing losses.
Staff Claims Cmte
Claims Committee established and working on this.
February 2017
3. Institute an agency-wide “Litigation Panel” or recommended vendor list of attorneys with an incentive for members to use recommended vendors. Develop a litigation management policy based on best practices.
Staff Claims Cmte
Claims Committee established and working on this.
July 2017
4. Create item specific ad-hoc committees of the Board of Directors for evaluation and creation of specific programs. Programs to include, but not be limited to, risk management, claims management and program development. • CJPRMA to fully staff committees. • Clearly establish goals, timelines and deliverables.
President Claims Committee established and has begun work.
On-Going
5. Formalize and put the succession plan into practice to ensure CJPRMA’s continuity.
GM Exec
New GM appointed in December 2018. July 2017
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Strategic Goal 4: Actively Market the Value of CJPRMA Both Externally and Internally Key Message: Build a healthy membership for long-term stability
PRIORITY ACTIONS ACTING PARTY STATUS TIMELINE
1. Enhance the availability of CJPRMA benchmarking and industry tools via the website and other electronic media. • Educate TPAs and members on loss-coding
methodologies.
Staff Claims Cmte
Timeline needs to be reevaluated January 2018
2. Provide enhanced data and risk-management-related materials to convey the importance of participating in pooling and the value of membership in CJPRMA. • Deliver detailed risk management loss information
to membership directed at eliminating losses.
Staff Exec
Timeline needs to be reevaluated March 2017
3. Create presentations on the value of CJPRMA and present them to all members’ executive teams or elected bodies. Use success stories. Staff
Previous GM has met with members, including executive teams and elected bodies. Current GM has held member meetings with most members, but not with exec teams/elected.
April 2017
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4. Identify potential members from the public-sector marketplace and communicate the benefits of joining CJPRMA.
GM Exec
LPFD added as a member effective July 2018. Provided quote to City of Oxnard in December 2018. Oxnard declined to apply for membership. Contacted City of Salinas in May 2019. Salinas had not been in a pool, but they joined ACCEL this year.
On-Going
5. Create a Board of Directors Manual to be provided to every Director and Alternate. • Provide annual updates • Create an online version of the manual
Staff Timeline needs to be reevaluated. May 2017
Page 45
Back to Agenda
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 4 TITLE: STATUS UPDATE ON GENERAL MANAGER’S GOALS & OBJECTIVES
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
None. This item is being provided to the Board of Directors as an update on the general manager’s 2018-2019 Goals and Objectives.
Strategic Direction:
This item addresses all of the strategic goals adopted by the organization.
Item Explanation:
The prior general manager’s Goals and Objectives FY 2016-2019 were created to identify the areas of priority for staff in meeting the objectives of the adopted strategic plan. The general manager has updated the “Tasks Completed” section of the form to address changes since he was appointed in December 2018. It is anticipated that the goals and objectives will be updated after the October 2019 strategic planning session. This item is being provided as an information item only and no formal action is required.
Fiscal Impact:
None
Exhibits:
1. General Manager’s Goals & Objectives 2018-2019
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GENERAL MANAGER GOALS & OBJECTIVES FOR 2018-2019
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Financial Strength and Solvency 15%
The general manager will monitor the development of programs and services for the organization that maintain the invested assets of CJPRMA, maintain or reduce the current costs to members and provide enhanced excess/reinsurance coverage to member exposures. Will make recommendation to the Board of Directors as needed.
Executive Committee
• Renewed lease with DaVita that includes higher rent for CJPRMA
• Working with broker and underwriters on PY 19/20 renewals.
• Provided extensive underwriting data to Aon for PY 19/20 GL renewal.
• Worked extensively with claims administrators and members to resolve cases via mediation at significant cost reductions for members.
Develop core products and services with innovation. 15%
The general manager will continue to evaluate and monitor the core products and services provided to members. These products and services will be driven to insure financial strength and solvency to CJPRMA. CJPRMA will also attempt to broaden coverage and services that meet the needs for cost effective services for our members. The primary areas of focus for the achievement of this goal will include the following:
1. Risk Management Information Services 2. Coverage 3. Claims Management
General Manager • Working with Ventiv to provide effective claims management/RMIS through Risk Console.
• Continuing primary and excess claims audits.
• Provided semi-annual updates to Board on losses and developments.
• Established Claims Committee with goal of making recommendations to reduce losses.
• Presented numerous topics for Board at annual meeting.
• Held ARM 54 class at CJPRMA • Visited many member sites to discuss
needs from pool and GM. • Met with underwriter for deadly weapon
(active shooter) coverage and working to schedule presentation to board.
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GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Develop and deliver targeted training programs to members based upon CJPRMA and member loss history. 10%
Collect the necessary data for the purpose of identifying the primary loss exposures for CJPRMA and our members. Utilize the data for the purpose of developing state of the art, effective training sessions for members. The primary areas of focus for completing this objective include the following:
1. Targeted training-Aligned to loss history and actual trends.
2. Member Education – Develop a training program for member management and operations.
3. Director Education and Training – Enhance skills of Directors through education and training.
General Manager • ARM 54 class • EPL training scheduled for June 2019 • CJPRMA University • Worked with numerous cities on specific
claims related issues including developing settlement and defense strategies
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GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Create an approach to marketing the value of CJPRMA to its members and identify market opportunities for control growth of the organization. 10%
Develop a member outreach program that provides members with key information identifying the value of CJPRMA to its members. In addition, evaluate the opportunities for development of a targeted marketing effort to organizations that meet and or exceed current member standards. The primary initiatives for the delivery of an effective outreach program will include:
1. Marketing communication brochure 2. Exclusions and alternative coverage 3. Market definition and outreach
General Manager • CJPRMA University • Provided quote to southern California city for
program participation • LPFD joined pool effective July 2018 • Met with members at their locations to discuss
needs from pool and GM. • Contacted two cities to discuss membership
with CJPRMA. One requested a premium quote by declined to apply. One had already joined another pool.
Implement and monitor an information technology upgrade to all CJPRMA systems. 10%
CJPRMA is implementing a new RMIS System. The system will be utilized as the primary workflow product for the organization and will provide membership with the opportunity to utilize multiple modules within the system for a significantly discounted pricing. In addition, CJPRMA will evaluate all of its technology solutions and will expressly evaluate for following key areas:
1. Claims Management Technology 2. Member information upgrade 3. Exposure Data 4. Webinars
General Manager • Continue to embrace the technology available within Risk Console for benefit of membership
• Implemented member portal within risk console for APD and property updates.
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GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Provide consultation to board members and individual member agencies by resolving questions and issues concerning agency risk management practices and procedures. 10%
The general manager is available to assist board members and their agencies by reviewing contracts, performing audits, reviewing policies and by making practices for best practice risk management. General manager will work with ad-hoc committee to develop CJPRMA standards for risk transfer and will populate the new Risk Console System with standardized contract requirements.
General Manager • Ongoing work with multiple board members on issues related to risk transfer, claim management, litigation management and multiple risk management issues
• Help members with contract reviews
Provide updated information to members on CJPRMA programs, services and provide ongoing updates on legislative changes including results of litigation affecting our industry. 5%
CJPRMA staff will provide ongoing updates to members on programs and services and shall provide training on an annual basis that will include:
1. New board member orientation 2. Update on all memorandum of coverage
documents 3. Claims update 4. Case law updates
General Manager and Staff
• Communicate with board of issues of legislative concern
• Disseminate information to Board Members on case law out of court of appeals both within CJPRMA and within the public sector environment
Enhance the CJPRMA claims processing, litigation management program and the delivery of litigation/claim information to the board of directors. 10%
The general manager will work with staff to continue to improve the delivery of claims management to members. Staff will review options for a preferred provider network of legal counsel, develop improved reporting to the board of directors on all claims and continue to provide semi-annual updates on the overall claims management process and organization experience.
General Manager and Staff
• Claims administrator works closely with each member on cases of liability within the member’s layer and CJPRMA layer
• Work aggressively on litigated matters and strive to identify cases of clear liability for resolution.
• Use advanced tools such as focus groups and mock trials to evaluate cases.
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5 | P a g e
GOALS OUTCOMES COMMITTEE ASSIGNMENT
TASKS COMPLETED
Manage all aspects of the operation of CJPRMA including staff, operations and outside vendors. 10%
The general manager has the overall responsibility to oversee the performance of staff and to work with staff to develop capabilities within CJPRMA. General manager must also oversee all outside vendors to insure the highest quality and most efficient use of resources for the delivery of service to the organization and its members.
General Manager • General manager appointed to position in December 2018.
• Worked with numerous vendors maintaining the CJPRMA building.
• Working with staff on career goals. Identifying training and experience opportunities for staff.
Manage the CJPRMA facility and coordinate all aspects of building maintenance and maintain relationship with tenant. 5%
General Manager will be responsible for maintaining all operations of the new facility and provide oversight and coordination of tenant relationship and coordination of other condo owners at facility.
General Manager • Renewed lease with DaVita. • Manage the operation of the office. Work with
tenant and owner of other suites to preserve CJPRMA asset.
• Continue ongoing management of all IT systems, security systems and all other building related infrastructure.
• Accepted position on board of Triad Business Park to protect interests of CJPRMA.
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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 5 TITLE: SETTLEMENT OF CLAIMS DISCUSSED IN CLOSED SESSION
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
None. This item is presented as information only.
Strategic Direction:
Strategic Goal 3: Foster Informed and Engaged Board Leadership
Item Explanation:
Government Code Section 54957.1 (4) requires that claims discussed in closed session must be reported when they are settled at a time following that closed session.
“Disposition reached as to claims discussed in closed session pursuant to Section 54956.95 shall be reported as soon as reached in a manner that identifies the name of the claimant, the name of the local agency claimed against, the substance of the claim, and any monetary amount approved for payment and agreed upon by the claimant.”
The following claims were previously discussed in closed session and have since been settled and have been dismissed:
Case Name Authority Final Settlement Amount Closed Date Newmaker v. City of Fortuna (REMIF)
On 2/7/18, the Executive Committee approved the $900K settlement agreement reached at mediation.
$ 900,000 10/29/2018
Fiscal Impact
None.
Exhibits:
None.
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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 6 TITLE: REPORT FROM INVESTMENT MANAGER
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
None. This item is being provided for information purposes only.
Strategic Direction:
This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive and Strategic Goal 3, Foster Informed and Engaged Board Leadership.
Item Explanation:
Pool investments are managed by Chandler Asset Management. The assets are held in CJPRMA’s bank custody account managed by the Bank of New York.
The investment program is divided into three parts: The Loss Payment Account, the Long Term Growth Account and the Long Term Growth/Tactical Account.
The Loss Payment Account is utilized to provide funds for operating expenses and the payment of losses. The Loss Payment Account invests in high grade securities with a maximum maturity of five years. As of April 30, 2019 the Loss Payment Account was valued at $3,216,722. This was a decrease of $4,958,951 from its valuation of $8,175,723 on January 31, 2019. Several securities were purchased in the Treasury, Agency, and Asset Backed sectors to increase the maturity profile of the strategy to be more consistent with the benchmark. Three securities matured and one was sold to help facilitate the new holdings in the portfolio. Additionally, the market value of the portfolio contracted due to the cumulative $5 million in withdrawals during the reporting period which was allocated out of the LAIF balance. The Loss Payment Account has sufficient funds to meet the expenditure requirements of the next six months.
Both Long Term Growth Accounts are utilized to provide long term asset growth in order to offset inflation. The maturity range of these investments is a maximum of ten years.
As of April 30, 2019 the Long Term Growth Account / Tactical was valued at $17,398,916. This was an increase of $184,960 from its valuation of $17,213,956 on January 31, 2019. Multiple securities were purchased in the Treasury, Agency, Asset Backed and Corporate sectors to keep the portfolio positioned consistent with Chandler’s objectives for the strategy. Three securities were sold and one
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matured to fund the new holdings in the portfolio. Late in the reporting period trading activity was light in anticipation of a liquidity need from staff that has not yet materialized.
As of April 30, 2019, the Long Term Growth Account was valued at $36,962,097. This was a decrease of $2,273,672 from its valuation of $39,235,769 on January 31, 2019. Two securities were sold and two matured during the reporting period to fund a liquidity need of $3 million in late March. The Chandler team sold shorter maturity securities, relative to the 5-10 year benchmark, to assist in keeping the overall portfolio structure consistent with Chandler Objectives for the strategy.
The investments in all accounts comply with CJPRMA’s investment policy.
Bill Dennehy, of Chandler Asset Management will be present to discuss the portfolio and our investment strategy. In addition, he will be providing an update on economic factors that have had a direct impact on the investments.
The Consolidated Monthly Account Statement with a detail listing of the investment holdings is attached for your information.
Fiscal Impact:
From January 31, 2019 to April 30, 2019, the value of the investment portfolio decreased by approximately $7,047,663.
Exhibits:
1. Investment Report from Chandler Asset Management dated April 30, 2019. 2. CJPRMA Consolidated Monthly Account Statement for the period April 1, 2019 through April
30, 2019.
Page 54
CHANDLER ASSET MANAGEMENT, INC. | 800.317.4747 | www.chandlerasset.com
INVESTMENT REPORT
Period Ending April 30, 2019
California Joint Powers Risk Management Authority
Page 55
SECTION 1 Economic Update
SECTION 2 Account Profile
Table of Contents As of April 30, 2019
1Page 56
SECTION | Section 1 | Economic Update
2Page 57
Source: US Department of Labor Source: US Department of Labor
0
50
100
150
200
250
300
350
MO
M C
hang
e In
(00
0's)
Nonfarm Payroll (000's)
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%Unemployment Rate
Underemployment Rate (U6)Unemployment Rate (U3)
Rate
(%)
Employment
3Page 58
Source: US Department of Labor Source: US Department of Commerce
The investment objectives of the California Joint Powers Risk Management Authority are first, to preserve principal; second,to ensure liquidity; and third, to earn a return that is commensurate with the first two objectives. Funds available forinvestment are segregated into three separate portfolios in order to meet the Authority's investment goals.
The Loss Payment Account
The Loss Payment Account shall be invested to match its duration to the duration of the Authority's expected claims and toprovide cash to pay losses, as they come due, and to pay the operating expenses of the Authority.
The Long Term Growth Account and the Long Term Growth Account (Tactical)
Recognizing that casualty liabilities are inflation sensitive, the Authority has established the Long Term Growth Account toprovide for long-term asset growth in order to offset potential inflation. The Long Term Growth Account (Tactical) has beenimplemented to help manage the combination of extraordinary low interest rates and the intermediate risk of rates rising.
The performance objective for the Loss Payment Account is to equal the return on a benchmark index with characteristics (duration and sector allocation) similar to the characteristics of the Loss Payment Account.
The performance objective of the Long-Term Growth Account shall be to exceed the return on the benchmark index of five to ten year US Government securities over a market cycle.
The performance objective of the Long-Term Growth Account (Tactical) shall be to exceed the return on the benchmark index of the one to five year US Government securities over a market cycle.
In order to achieve these objectives, the portfolios invest in high quality fixed income securities consistent with the investmentpolicy and California Government Code.
7Page 62
Category Standard Comment Treasury Issues Max maturity: 5 years for the Loss Payment Account; 10 years for the Long Term Growth Account Complies
US Agencies Max maturity: 5 years for the Loss Payment Account; 10 years for the Long Term Growth Account Complies
Municipal Securities "A" long-term debt rated category or higher by a NRSRO; 30% maximum; 5% max per issuer;Max maturity: 5 years for Loss Payment Account; 10 years for Long Term Growth Account
Complies
Supranationals "AA" rated or higher by a NRSRO; 30% maximum; 10% max per issuer; Unsubordinated obligations issued by IBRD, IFC, or IADB; 5 years max maturity
Complies
Asset Backed/ Mortgage Backed/ Collateralized Mortgage Obligation "AA" rated category by a NRSRO; "A" issuer rated or higher by a NRSRO; 20% maximum combined; 5 years max maturity Complies
Banker’s Acceptances "A-1" or higher by a NRSRO; 40% maximum; 5% max per issuer; 180 days max maturity Complies
Commercial Paper"A-1" short-term rated or higher by a NRSRO; and A" rated category or higher by a NRSRO, if long term debt issued; 25% maximum; 5% max per issuer; 270 days max maturity; Issuer is corp organized and operating in the U.S. with assets in excess of $500 mill ion
Complies
Corporate Medium Term Notes"A" rated category or higher by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporation organized and operating within U.S or by depository institutions l icensed by the US or any state and operating within the US; 5 years max maturity
Complies
Mutual Fund & Money Market Mutual Funds
Highest rating or "AAA" rated by two NRSROs; SEC registered adviser with AUM >$500 mill ion and experience > 5 years; 20% maximum in Mutual Funds and Money Market Mutual Funds; 10% max per one Mutual Fund; 20% max in Money Market Mutual Funds.
Complies
Time Deposits/ Certificates of Deposit 5% max per issuer; For FDIC Insured TDS, amount per institution is l imited to the max covered under FDIC; Collateralized for TDs in excess of maximum federal insurance; 3 years max maturity
Complies
Negotiable CDs "A" long-term debt rated or higher by a NRSRO; and or "A-1" short-term rated or higher by a NRSRO; 30% maximum; 5% max per issuer; 3 years max maturity
Complies
Local Agency Investment Fund (LAIF) 20% maximum Complies
Derivative Securities
5% per issuer in any single derivative security; 5 years max maturity; Includes investments permitted in the following types of derivatives only: a) Stripped Coupons and principal; b) Fixed coupon callable and putable securities; c) "Step-up" notes; d) Variable or floating rate notes, that are 1) Market based, 2) Other: float in the same direction as general level of interest rates, based on a rate that is not directly determined by the market (i .e. cost of funds), or that is pre-determined at the time of purchase. These are subject to some price volatil ity and offer value in certain interest rate environments; e) Asset-backed securities; f) Collateralized mortgage obligations (CMOs); and g) Mortgage pass-through securities issued by agencies of the Federal Government
Complies
ProhibitedInverse floaters; Ranges notes, Interest-only strips derived from a pool of mortgages; Zero interest accrual securities; Purchase or sale of securities in margin; Reverse Repurchase Agreements; Financial futures and options; Guaranteed Small Business Administration (SBA) notes
Complies
Max Per Issuer 5% per issuer (excluding US government, agencies, mortgage-backed, asset backed securities, and money market funds) Complies
California Joint Powers Risk Management Authority
The portfolio complies with state law and with the Client's investment policy, except as noted below.
Compliance
8Page 63
Compliance
Category Standard Comments
Modified Duration Approx. equal to duration of current claim liabil ities and operating expenses of the Authority Complies
Maximum Maturity 5 years Complies
% invested <1 year Enough for cashflow Complies
Category Standard Comments
Modified Duration Approx. equal to duration consistent with long term growth and future l iabil ities of the Authority;Within 80 to 120% duration of the benchmark
*0-3 yr Treasury **Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
Several securities were purchased across the Treasury, Agency and Asset Backed sectors to increase the maturity profile of the strategy to be more consistent with the benchmark. Three securities matured and one was sold to help facilitate the new holdings in the portfolio. Additionally, the market value of the portfolio contracted due to the cumulative $5 million in withdrawals during the reporting period which was allocated out of the LAIF balance.
As of April 30, 2019
10Page 65
CJPRMA - The Loss Payment AccountSector Distribution
ABS3.1%
Agency27.4%
Commercial Paper3.1%
LAIF10.6%Money Market
Fund FI0.2%
US Corporate18.8%
US Treasury36.7%
April 30, 2019 January 31, 2019
ABS0.5% Agency
10.8%
Commercial Paper1.2%
LAIF65.1%
Money Market Fund FI
0.1%
US Corporate7.4%
US Treasury14.9%
As of April 30, 2019
11Page 66
AAA AA A <A NR
04/30/19 2.1% 79.0% 7.2% 0.0% 11.8%
01/31/19 0.1% 31.4% 2.8% 0.0% 65.6%
Source: S&P Ratings
April 30, 2019 vs. January 31, 2019
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
AAA AA A <A NR
4/30/2019 1/31/2019
Quality DistributionCJPRMA - The Loss Payment Account
CJPRMA - The Loss Payment AccountDuration Distribution As of April 30, 2019
13Page 68
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
12 months 2 years 3 years 5 years 10 years Since Inception
CJPRMA - The Loss Payment Account 0-3 yr Treasury*
Total Rate of Return Annualized Since Inception 08/31/1995
Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
CJPRMA - The Loss Payment Account 0.79% 2.72% 1.83% 1.45% 1.08% 1.03% 3.42%
0-3 yr Treasury 0.74% 2.59% 1.59% 1.21% 0.91% 0.75% 3.03%
*1-5 Year Govt until 7/31/01; Then 0-3Year Treasuries
Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with theending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Investment PerformanceCJPRMA - The Loss Payment Account
*ICE BAML 1-5 Yr US Treasury/Agency Index **Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
Multiple securities were purchases in the Treasury, Agency, Asset Backed and Corporate sectors to keep the portfolio positioned consistent with Chandler’s objectives for the strategy. Three securities were sold and one matured to fund the new holdings in the portfolio. Late in the reporting period trading activity was light in anticipation of a liquidity need from staff that has not yet materialized.
As of April 30, 2019
15Page 70
CJPRMA The Long Term Growth Account (Tactical)Sector Distribution
ABS5.8%
Agency30.6%
Foreign Corporate
3.3%
Money Market Fund FI
0.7%
Supranational9.0%
US Corporate26.4%
US Treasury24.2%
April 30, 2019 January 31, 2019
ABS5.2%
Agency30.7%
Foreign Corporate
2.3%
Money Market Fund FI
0.9%Supranational
9.0%
US Corporate27.5%
US Treasury24.3%
As of April 30, 2019
16Page 71
AAA AA A <A NR
04/30/19 8.2% 65.7% 17.4% 0.0% 8.7%
01/31/19 8.1% 68.9% 14.5% 0.0% 8.5%
Source: S&P Ratings
April 30, 2019 vs. January 31, 2019
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
AAA AA A <A NR
4/30/2019 1/31/2019
Quality DistributionCJPRMA The Long Term Growth Account (Tactical)
Duration DistributionCJPRMA The Long Term Growth Account (Tactical)
As of April 30, 2019
18Page 73
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
12 months 2 years 3 years 5 years 10 years Since Inception
CJPRMA The Long Term Growth Account (Tactical) ICE BAML 1-5 Yr US Treasury/Agency Index
Total Rate of Return Annualized Since Inception 12/31/2013
Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
CJPRMA The Long Term Growth Account (Tactical) 1.10% 3.76% 1.70% 1.30% 1.48% N/A 1.55%
ICE BAML 1-5 Yr US Treasury/Agency Index 1.05% 3.66% 1.44% 1.04% 1.27% N/A 1.29%
Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with theending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Investment PerformanceCJPRMA The Long Term Growth Account (Tactical)
*ICE BAML 5-10 Yr US Treasury/Agency Index **Benchmark is a blended rating of S&P, Moody’s, and Fitch. Portfolio is S&P and Moody’s respectively.
Multiple securities were purchases in the Treasury, Agency, Asset Backed and Corporate sectors to keep the portfolio positioned consistent with Chandler’s objectives for the strategy. Three securities were sold and one matured to fund the new holdings in the portfolio. Late in the reporting period trading activity was light in anticipation of a liquidity need from staff that has not yet materialized.
As of April 30, 2019
20Page 75
CJPRMA The Long Term Growth AccountSector Distribution
Agency43.3%
Foreign Corporate
1.4%Money Market Fund FI
1.9%
US Corporate14.3%
US Treasury39.1%
April 30, 2019 January 31, 2019
Agency45.5%
Foreign Corporate
1.3%
Money Market Fund FI
0.8%
US Corporate16.0%
US Treasury36.5%
As of April 30, 2019
21Page 76
AAA AA A <A NR
04/30/19 2.8% 86.5% 10.7% 0.0% 0.0%
01/31/19 1.7% 87.1% 11.2% 0.0% 0.0%
Source: S&P Ratings
April 30, 2019 vs. January 31, 2019
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
AAA AA A <A NR
4/30/2019 1/31/2019
Quality DistributionCJPRMA The Long Term Growth Account
Duration DistributionCJPRMA The Long Term Growth Account
As of April 30, 2019
23Page 78
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
12 months 2 years 3 years 5 years 10 years Since Inception
CJPRMA The Long Term Growth Account ICE BAML 5-10 Yr US Treasury/Agency Index
Total Rate of Return Annualized Since Inception 10/31/1995
Annualized
TOTAL RATE OF RETURN 3 months 12 months 2 years 3 years 5 years 10 years Since Inception
CJPRMA The Long Term Growth Account 1.90% 6.14% 2.19% 1.38% 2.68% 3.97% 5.75%
ICE BAML 5-10 Yr US Treasury/Agency Index 1.54% 6.11% 1.83% 0.95% 2.44% 3.33% 5.33%
Total rate of return: A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with theending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
Investment PerformanceCJPRMA The Long Term Growth Account
As of April 30, 2019
24Page 79
Issue Name Investment Type % Portfolio
Government of United States US Treasury 34.47%Federal Home Loan Bank Agency 19.16%Federal National Mortgage Association Agency 14.77%Federal Home Loan Mortgage Corp Agency 2.03%Tennessee Valley Authority Agency 1.76%IBM Corp US Corporate 1.65%HSBC Holdings PLC Foreign Corporate 1.57%US Bancorp US Corporate 1.54%ChevronTexaco Corp US Corporate 1.53%Fidelity Institutional Govt Money Market Fund Money Market Fund FI 1.42%Honda Motor Corporation US Corporate 1.34%Bank of New York US Corporate 1.33%Deere & Company US Corporate 1.31%Qualcomm Inc US Corporate 1.31%International Finance Corp Supranational 1.13%JP Morgan Chase & Co US Corporate 1.09%Apple Inc US Corporate 1.04%Microsoft US Corporate 1.03%Federal Farm Credit Bank Agency 0.89%Intl Bank Recon and Development Supranational 0.87%John Deere ABS ABS 0.83%Inter-American Dev Bank Supranational 0.73%Pepsico Inc US Corporate 0.71%Honda ABS ABS 0.68%Local Agency Investment Fund LAIF 0.59%Berkshire Hathaway US Corporate 0.52%PNC Financial Services Group US Corporate 0.45%State Street Bank US Corporate 0.44%Wells Fargo Corp US Corporate 0.43%Oracle Corp US Corporate 0.43%Exxon Mobil Corp US Corporate 0.43%Toyota ABS ABS 0.40%BlackRock Inc/New York US Corporate 0.37%Boeing Company US Corporate 0.34%Wal-Mart Stores US Corporate 0.32%Toronto Dominion Holdings Foreign Corporate 0.31%Bank of America Corp US Corporate 0.22%Toyota Motor Corp US Corporate 0.22%
2019 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair marketvalue, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed inItem 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment ofdividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategywill be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies,contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or thededuction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ice Data Indices, LLC ("ICE"), used with permission. ICE permits use of the ICE indices and related data on an "as is" basis; ICE, its affiliates and their respective third party suppliers disclaim any andall warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data includedin, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or theindex data or any component thereof, and the indices and index data and all components thereof are provided on an "as is" basis and licensee's use it at licensee's own risk. ICE data, its affiliates and theirrespective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
This report is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to bereliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject tochange. This report may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative offuture results. This report is not intended to constitute an offer, solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as asubstitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that theborrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market ingeneral could decline due to economic conditions, especially during periods of rising interest rates.
Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full andtimely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.
As of April 30, 2019
27Page 82
Benchmark Disclosures
ICE BAML 1-5 Yr US Treasury/Agency Index
The ICE BAML 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifyingsecurities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than fiveyears remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule and a minimum amount outstanding of $1 billion for sovereigns and $250 million foragencies. (Index: GVA0. Please visit www.mlindex.ml.com for more information)
ICE BAML 5-10 Yr US Treasury/Agency Index
The ICE BAML 5-10 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifyingsecurities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least five years remaining term to final maturity and less than tenyears remaining term to final maturity, at least five years to maturity at time of issuance, a fixed coupon schedule and a minimum amount outstanding of $1 billion for sovereigns and $250 million foragencies. (Index: G6A0. Please visit www.mlindex.ml.com for more information)
0-3 yr Treasury*
The ICE BAML 0-3 Year US Treasury Index tracks the performance of US Dollar denominated Sovereign debt publically issued by the US government in its domestic market with maturities less than threeyears. Qualifying securities must have at least 18 months to maturity at point of issuance, at least one month and less than three years remaining term to final maturity, a fixed coupon schedule and aminimum amount outstanding of $1 billion. (Index: G1QA. Please visit www.mlindex.ml.com for more information)
The ICE BAML 1-5 Year US Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifyingsecurities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than fiveyears remaining term to final maturity, at least 18 months to maturity at time of issuance, a fixed coupon schedule and a minimum amount outstanding of $1 billion for sovereigns and $250 million foragencies. (Index: GVA0. Please visit www.mlindex.ml.com for more information)
As of April 30, 2019
28Page 83
MONTHLY ACCOUNT STATEMENT
California Joint Powers RMA Consolidated - Account #691
APRIL 1, 2019 THROUGH APRIL 30, 2019
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures.
CHANDLER ASSET MANAGEMENTchandlerasset.com
Chandler Team:For questions about your account, please call (800) 317-4747,or contact [email protected]
CustodianBank of New York MellonLauren Dehner(904) 645-1918
Page 84
ACCOUNT SUMMARYBeg. Values
as of 3/31/19End Values
as of 4/30/19
Market Value 57,292,661 57,247,784Accrued Interest 311,558 330,001Total Market Value 57,604,219 57,577,785Income Earned 124,222 117,438Cont/WDPar 57,507,612 57,597,914Book Value 57,111,711 57,205,433Cost Value 57,119,490 57,207,141
TOP ISSUERS
Government of United States 34.5%Federal Home Loan Bank 19.2%Federal National Mortgage Assoc 14.8%Federal Home Loan Mortgage Corp 2.0%Tennessee Valley Authority 1.8%IBM Corp 1.7%HSBC Holdings PLC 1.6%US Bancorp 1.5%
Category Standard Comment Treasury Issues Max maturity: 5 years for the Loss Payment Account; 10 years for the Long Term Growth Account Complies
US Agencies Max maturity: 5 years for the Loss Payment Account; 10 years for the Long Term Growth Account Complies
Municipal Securities"A" long-term debt rated category or higher by a NRSRO; 30% maximum; 5% max per issuer;Max maturity: 5 years for Loss Payment Account; 10 years for Long Term Growth Account
Complies
Supranationals"AA" rated or higher by a NRSRO; 30% maximum; 10% max per issuer; Unsubordinated obligations issued by IBRD, IFC, or IADB; 5 years max maturity
"AA" rated category by a NRSRO; "A" issuer rated or higher by a NRSRO; 20% maximum combined; 5 years max maturity Complies
Banker’s Acceptances "A-1" or higher by a NRSRO; 40% maximum; 5% max per issuer; 180 days max maturity Complies
Commercial Paper"A-1" short-term rated or higher by a NRSRO; and A" rated category or higher by a NRSRO, if long term debt issued; 25% maximum; 5% max per issuer; 270 days max maturity; Issuer is corp organized and operating in the U.S. with assets in excess of $500 million
Complies
Corporate Medium Term Notes"A" rated category or higher by a NRSRO; 30% maximum; 5% max per issuer; Issued by corporation organized and operating within U.S or by depository institutions licensed by the US or any state and operating within the US; 5 years max maturity
Complies
Mutual Fund & Money Market Mutual Funds
Highest rating or "AAA" rated by two NRSROs; SEC registered adviser with AUM >$500 million and experience > 5 years; 20% maximum in Mutual Funds and Money Market Mutual Funds; 10% max per one Mutual Fund; 20% max in Money Market Mutual Funds.
Complies
Time Deposits/ Certificates of Deposit5% max per issuer; For FDIC Insured TDS, amount per institution is limited to the max covered under FDIC; Collateralized for TDs in excess of maximum federal insurance; 3 years max maturity
Complies
Negotiable CDs"A" long-term debt rated or higher by a NRSRO; and or "A-1" short-term rated or higher by a NRSRO; 30% maximum; 5% max per issuer; 3 years max maturity
Complies
Local Agency Investment Fund (LAIF) 20% maximum Complies
Derivative Securities
5% per issuer in any single derivative security; 5 years max maturity; Includes investments permitted in the following types of derivatives only: a) Stripped Coupons and principal; b) Fixed coupon callable and putable securities; c) "Step-up" notes; d) Variable or floating rate notes, that are 1) Market based, 2) Other: float in the same direction as general level of interest rates, based on a rate that is not directly determined by the market (i.e. cost of funds), or that is pre-determined at the time of purchase. These are subject to some price volatility and offer value in certain interest rate environments; e) Asset-backed securities; f) Collateralized mortgage obligations (CMOs); and g) Mortgage pass-through securities issued by agencies of the Federal Government
Complies
ProhibitedInverse floaters; Ranges notes, Interest-only strips derived from a pool of mortgages; Zero interest accrual securities; Purchase or sale of securities in margin; Reverse Repurchase Agreements; Financial futures and options; Guaranteed Small Business Administration (SBA) notes
Complies
Max Per Issuer 5% per issuer (excluding US government, agencies, mortgage-backed, asset backed securities, and money market funds) Complies
California Joint Powers Risk Management Authority
The portfolio complies with state law and with the Client's investment policy, except as noted below.
Statement of ComplianceAs of April 30, 2019
Page 86
Category Standard Comments
Modified Duration Approx. equal to duration of current claim liabilities and operating expenses of the Authority Complies
Maximum Maturity 5 years Complies
% invested <1 year Enough for cashflow Complies
Category Standard Comments
Modified DurationApprox. equal to duration consistent with long term growth and future liabilities of the Authority;Within 80 to 120% duration of the benchmark
Complies
Maximum Maturity 10 years Complies
California Joint Powers Risk Management Authority
Long Term Growth Account
Loss Payment Account
Statement of ComplianceAs of April 30, 2019
Page 87
Holdings ReportAs of April 30, 2019
California Joint Powers RMA Consolidated
Account #691
CUSIP Security Description Par Value/Units Purchase DateBook Yield
Cost ValueBook Value
Mkt PriceMkt YTM
Market ValueAccrued Int.
% of Port.Gain/Loss
Moody/S&P Fitch
MaturityDuration
ABS
43814PAB6 Honda Auto Receivables Owner T 17-3 A21.57% Due 1/21/2020
582.52 09/25/20171.58%
582.47582.50
99.962.64%
582.260.33
0.00%(0.24)
NR / AAAAAA
0.730.04
47788MAC4 John Deere Owner Trust 2016-A A31.36% Due 4/15/2020
540.88 02/23/20161.37%
540.80540.86
99.943.31%
540.530.33
0.00%(0.33)
Aaa / NRAAA
0.960.03
43814QAC2 Honda Auto Receivables 2016-2 A31.39% Due 4/15/2020
16,409.33 05/24/20161.40%
16,409.0116,409.25
99.892.75%
16,390.5110.14
0.03%(18.74)
Aaa / NRAAA
0.960.08
89238BAB8 Toyota Auto Receivables Owner 2018-A A2A2.1% Due 10/15/2020
171,807.36 01/23/20182.12%
171,789.81171,797.89
99.852.67%
171,555.12160.35
0.30%(242.77)
Aaa / AAANR
1.460.26
43814WAB1 HAROT 2019-1 A22.75% Due 9/20/2021
150,000.00 02/19/20192.77%
149,990.34149,990.99
100.132.64%
150,187.65148.96
0.26%196.66
NR / AAAAAA
2.391.03
47788BAD6 John Deere Owner Trust 2017-B A31.82% Due 10/15/2021
9,747.75 07/11/20171.83%
9,747.049,747.34
99.472.64%
9,696.067.88
0.02%(51.28)
Aaa / NRAAA
2.460.65
47788BAD6 John Deere Owner Trust 2017-B A31.82% Due 10/15/2021
58,486.52 07/11/20171.83%
58,482.2458,484.04
99.472.64%
58,176.4147.31
0.10%(307.63)
Aaa / NRAAA
2.460.65
89239AAB9 Toyota Auto Receivables 2019-A A2A2.83% Due 10/15/2021
60,000.00 02/05/20192.85%
59,994.5559,994.98
100.172.65%
60,103.5675.47
0.10%108.58
Aaa / AAANR
2.460.90
47789JAB2 John Deere Owner Trust 2019-A A22.85% Due 12/15/2021
110,000.00 03/05/20192.87%
109,994.98109,995.22
100.222.64%
110,241.01139.33
0.19%245.79
Aaa / NRAAA
2.630.97
47788CAC6 John Deere Owner Trust 2016-B A42.66% Due 4/18/2022
95,000.00 02/21/20182.68%
94,993.1794,995.10
100.012.67%
95,006.08112.31
0.17%10.98
Aaa / NRAAA
2.971.13
47788CAC6 John Deere Owner Trust 2016-B A42.66% Due 4/18/2022
30,000.00 02/21/20182.68%
29,997.8429,998.45
100.012.67%
30,001.9235.47
0.05%3.47
Aaa / NRAAA
2.971.13
43814UAG4 Honda Auto Receivables 2018-2 A33.01% Due 5/18/2022
80,000.00 05/22/20183.03%
79,998.2679,998.66
100.752.54%
80,602.0886.96
0.14%603.42
NR / AAAAAA
3.051.52
43815HAC1 Honda Auto Receivables Owner 2018-3 A32.95% Due 8/22/2022
Important DisclosuresCalifornia Joint Powers RMA Consolidated
Account #691
Chandler Asset Management, Inc. (“Chandler”) is an SEC registered investment adviser. For additional information about our firm, please see our current disclosures (Form ADV). To obtain a copy of our current disclosures, you may contact your client service representative by calling the number on the front of this statement or you may visit our website at www.chandlerasset.com.
Information contained in this monthly statement is confidential and is provided for informational purposes only and should not be construed as specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of this statement, but may become outdated or superseded at any time without notice.
Custody: Your qualified custodian bank maintains control of all assets reflected in this statement and we urge you to compare this statement to the one you receive from your qualified custodian. Chandler does not have any authority to withdraw or deposit funds from/to the custodian account.
Valuation: Prices are provided by IDC, an independent pricing source. In the event IDC does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance: Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clients should not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Source ice Data Indices, LLC ("ICE"), used with permission. ICE PERMITS USE OF THE ICE INDICES AND RELATED DATA ON AN "AS IS" BASIS; ICE, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY SUPPLIERS DISCLAIM ANY AND ALL WARRANTIES AND REPRESENTATIONS, EXPRESS AND/OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, INCLUDING THE INDICES, INDEX DATA AND ANY DATA INCLUDED IN, RELATED TO, OR DERIVED THEREFROM. NEITHER ICE DATA, ITS AFFILIATES OR THEIR RESPECTIVE THIRD PARTY PROVIDERS GUARANTEE THE QUALITY, ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE INDICES OR THE INDEX DATA OR ANY COMPONENT THEREOF, AND THE INDICES AND INDEX DATA AND ALL COMPONENTS THEREOF ARE PROVIDED ON AN "AS IS" BASIS AND LICENSEE'S USE IS AT LICENSEE'S OWN RISK. ICE DATA, ITS AFFILIATES AND THEIR RESPECTIVE THIRD PARTY DO NOT SPONSOR, ENDORSE, OR RECOMMEND CHANDLER, OR ANY OF ITS PRODUCTS OR SERVICES.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Ratings: Ratings information have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of this statement, however we cannot guarantee its accuracy.
Security level ratings for U.S. Agency issued mortgage-backed securities (“MBS”) reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest and carries a AA+/Aaa/AAA by S&P, Moody’s and Fitch respectively.
ITEM: 7 TITLE: APPROVAL OF THE PROPOSED ADMINISTRATIVE AND DIRECT PROGRAM BUDGET FOR FISCAL YEAR 2019-2020
MEETING: 05/22 – 5/23/2019
GENERAL MANAGER:
Recommended Actions:
Staff recommends approval of the FY 2019-2020 administrative and direct program budget.
Strategic Direction:
This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive.
Item Explanation:
The proposed budget for fiscal year 2019-2020 is attached for Board consideration. Also attached is a variance report for the current 2018-2019 fiscal year.
The budget is divided into two parts: (1) Administrative Budget and (2) Direct Program Expenditures.
The Administrative Budget are current year expenditures and consists of three sections: personnel, operations and capital outlay.
Direct Program Expenditures are operating costs directly associated with the coverage program. The direct program budget does not have a direct affect on current year income since these costs are charged against the liability account for claim expenses accrued per actuarial studies in previous years, but does show potential cash flow impact.
Current Budget FY 2018-2019:
The approved administrative budget for fiscal year 2018-2019 is $1,957,050. It is projected that expenditures will come in about $82,074 (4.2%) under budget. The reasons for the largest differences are shown in the attached variance report.
Personnel: $18,225 (1.6%) under budget.
Office Expenses: $23,007 (7.3%) under budget.
Professional Services: $(26,585) (20.4%) over budget.
Board Related Expenses: $9,446 (7.2%) under budget.
Building Operations: $7,981 (4.4%) under budget.
Capital Outlay: $50,000 (100%) under budget.
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The Direct Program Budget is estimated to be $1,020,000 (60%) under expected. This is primarily due to lower than anticipated legal payments. At the excess level it is difficult to gauge what the direct program payments will be; this is always an approximation. The legal expenses do not impact the current year income since these were expensed in prior program years. The asset management fees are paid from the investment income.
Funding: FY 2018-2019 Administrative funding from liability premium $1,550,000 Property & APD Admin Fee 35,000 CSRMA member payments 19,500 DaVita rental income 121,187 Davita/Golden Gate Cam and PG&E payments 127,000 Total Funding 1,852,687 Projected Administrative Expenses 1,874,976 Unfavorable position $( 22,289)
At the time the 2018-2019 budget was approved, it was believed the budget would end up $100,000 under funded. This was due to increased salary expense for the crossover of the general manager and assistant general manager. The increase was not as large as anticipated, and, as a result, the year is expected to end up only $22,000 under funded. Proposed Budget FY 2019-2020:
The proposed administrative budget for 2019-2020 decreases by $41,750 (2.1%) to $1,915,300
After reviewing the administrative expenditures for the 2018-2019 fiscal year, it is anticipated that we will end the year approximately $82,000 or 4.2% under budget. The following will provide you with a brief explanation of the key favorable and unfavorable results.
ITEM: 8 TITLE: APPROVAL OF LIABILITY AND AUTO PHYSICAL DAMAGE RENEWAL FOR PROGRAM YEAR 2019-2020
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
Approval of the Aon insurance program renewal quotation. Authorize the general manager to bind the casualty, auto physical damage, office package, Office DIC, and all other commercial insurance programs provided by Aon Risk Services.
Strategic Direction:
This item addresses two strategic goals: Strategic Goal 1, Employ Customizable Products and Services to be Competitive and Strategic Goal 3, Actively Market the Value of CJPRMA both Externally and Internally.
Item Explanation:
The Board of Directors received a report from Dr. William Deeb of Aon Risk Services at the March board meeting. Dr. Deeb advised the Board that renewals for the liability program would include increases as the market continues to exert upward pressure on premium.
Dr. Deeb, Aon Risk Services, will be attending this meeting and will report on the results of the marketing process for the 2019-2020 program year. Final quotations for all programs will be provided at the meeting.
The global reinsurance market for public entities has seen unprecedented increases in frequency. Carriers are taking a particularly close look at increases in frequency in claims involving police, auto liability and employment practices liability. CJPRMA has had an increase in frequency with several losses hitting Munich Re’s layer, and those losses have included police claims and auto liability claims.
Casualty Program:
Munich Re provides reinsurance with $20,000,000 in limits in excess of the $5,000,000 CJPRMA retained limit. The rate for the 2019-2020 program year will be $.1690. The expiring premium for the 2018-2019 program year is $1,889,382. The renewal quote for the 2019-2020 program year is $2,964,749. This represents an increase of $1,075,367, approximately 57%.
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SCOR provides the second reinsurance layer of $15,000,000 excess of $25,000,000. The rate for the 2019-2020 program year will be $. 0366. The expiring premium for the 2018-2019 program year is $396,958. The renewal quote for the 2019-2020 program year is $623,224. This represents an increase of $226,266, approximately 57%.
Increases to individual members will be based on these rate increases and their reportable payroll values.
Auto Physical Damage:
The Auto Physical Damage Program (APD) is currently insured by Hanover Insurance Company. Participants have reported nine losses to date this program year.
Hanover provided a quote for all members at .24/$100 in value for the entire program. The rate for the 2018-2019 program year was .20/$100. The expiring premium for the 2018-2019 program year is $658,186. The renewal quote for the 2019-2020 program year is $855,309. This represents an increase of $197,123, approximately 30%.
Cost changes to individual members will be based on this premium increase and the reported values of their vehicles.
Difference in Condition (DIC) Office Quote:
The expiring premium for the office DIC program with Rockhill Insurance Company for the 2018-2019 program year is $9,606.64. The renewal quote for 2019-2020 is $10,414.20 with GuideOne National Insurance Company. This is an increased cost from the expiring policy of $807.56, approximately 8.4%.
CJPRMA Office Policy:
Federal Insurance Company currently provides the office liability policy. The premium paid for the 2018-2019 program was $4,981.50. The renewal quote for 2019-2020 program year is $5,134.02. The increase of $152.52 is a 3% increase.
Crime Policy:
The crime policy is currently provided by Hartford. The premium paid for the 2018-2019 program was $6,991. Hartford provided a quote of $7,029. for the 2019-2020 program year. This is an increase in the amount of $38 for a 0.5% increase. Fiscal Impact:
1. Total contributions by individual members to be determined by payroll or exposure data. Exhibits:
1. To be provided at the meeting.
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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 9 TITLE: APPROVAL OF THE REVISED PY 2019-2020 LIABILITY PREMIUM FUNDING
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
Approval of the revised funding and rates for program year 2019-20.
Strategic Direction:
This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive and Strategic Goal 3, Foster Informed and Engaged Board Leadership.
Item Explanation:
At the November 2018 board meeting, the Board of Directors approved the PY 2019-20 liability premium funding of $13,930,299 as shown below in (Table A). The funding for losses is determined by the actuary. The anticipated reinsurance and overhead funding amounts are provided to the actuary by staff.
When approval of the funding for PY 2019-20 was recommended by staff, it was projected that the reinsurance cost would increase 13% from the previous year to $2,802,514. The estimates are always subject to adjustment once the actual renewal amounts are known. Unfortunately this renewal wasn’t positive. The renewal reinsurance cost brought to us shows an increase of 57% for a total reinsurance cost of $3,804,690. This represents a shortfall of approximately $1 million in the funding previously approved. The funding that will be required for the program year is $14,932,475 as shown in (Table B).
PY 2019-20 Approved Rates & Funding
70% Confidence Level - Discounted (Table A)
Losses $9,577,785 Pool B 0.160 $2,578,989 Reinsurance 2,802,514 Pool C 0.399 6,998,796
Overhead 1,550,000 Pool D 0.248 4,352,514 Total $13,930,299 Total 0.807 $13,930,299
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PY 2019-20 Revised Rates & Funding
70% Confidence Level - Discounted (Table B)
Losses $9,577,785 Pool B 0.160 $2,578,989 Reinsurance 3,804,690 Pool C 0.399 6,998,796
Overhead 1,550,000 Pool D 0.305 5,354,690 Total $14,932,475 Total 0.864 $14,932,475
The total premium of $14,932,475 represents a 28% increase from the PY 2018-19 premium of $11,690,437. Attached is a spreadsheet which shows the preliminary premium for PY 2019-20, for each member, with the adjusted reinsurance funding. These premiums will be adjusted slightly once the final payroll figures have been submitted. This spreadsheet also shows the increase for each member from PY 2018-19 to PY 2019-20. We apologize we weren’t able to provide these numbers to you sooner but the reinsurance renewal process isn’t complete until the following May after the funding has been approved. Staff recommends approval of the revised PY 2019-20 funding of $14,932,475.
Losses 9,577,785 Pool B 2,578,989 0.16031 0.1603Reinsurance 3,804,690 Pool C 6,998,796 0.39884 0.3988Overhead 1,550,000 Pool D 5,354,690 0.30515 0.3051
ITEM: 10 TITLE: APPROVAL OF PROPERTY RENEWAL FOR PROGRAM YEAR 2019-2020
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions: Approval. The general manager recommends the Property Program participants approve the renewal proposal for the 2019-2020 program year and authorize the general manager to take appropriate actions to bind coverage. Strategic Direction: This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive. Item Explanation: CJPRMA transitioned the Property Program to Alliant Insurance Services for the 2016-2017 renewal. The program was created by Alliant and mirrors the Alliant Property Insurance Program (APIP) that is a proprietary program offered by Alliant. Mr. Robert Lowe, Vice President of Alliant Insurance Services will be attending this meeting and will provide the property program participants the quotations and options provided by the markets. The 2019-2020 program is structured with primary limits of $25 million and excess limits of $375 million. 75% of the primary layer is placed in the London market with Lloyd’s of London syndicates, and 25% is placed in the domestic market. Excess limits are provided by the APIP structure. The proposed percentage distribution among Lloyd’s and domestic carriers for the 2019-2020 program year has not been finalized as of May 15, 2019 and will be presented to members at the Board of Directors meeting on May 23, 2019. 2019-2020 Property Program/Boiler Machinery Quotations: Property program participants were presented an update on the initial strategy and anticipated costs for the 2019-2020 renewal at the March 2019 Board of Directors meeting. The underwriters expressed the need for the insurance market to move toward profitability and signaled that premium increases would be coming this year. They were pleased to see that attritional losses had decreased following the increase of the deductible to $100,000 with this program year. However, following the meetings with the underwriters, there was a major flood claim, and there are still several large active claims that have not yet been closed.
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Due to the volatile conditions of the property insurance market, carriers have been reluctant to provide quotes more than 60 days from renewal. Alliant has been working with the markets, and, as of May 15, 2019, the carriers have not provided final quotes for coverage. Final quotations will be provided to the Property Program participants at the Board of Directors meeting on May 23, 2019. In additional to the Property Program, renewal quotes will be provided for the Pollution Program, Drone Program and Cyber program. Finally, a quote for the Deadly Weapon Program (formally called “Active Shooter” coverage) will be presented to participants. While in London, staff attended a presentation on this program offered by Beazley. A presentation will be provided at this annual meeting regarding the impacts on public agencies from the active shooter terrorism events.
Staff recommends the Property Program participants authorize the general manager to take appropriate actions to bind the coverage. Fiscal Impact:
None currently. The ultimate financial impact will be based upon final submissions provided by the carriers.
Exhibits:
1. To be provided at the meeting.
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CALIFORNIA JOINT POWERS
RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 11 TITLE: APPROVAL OF PROPERTY PROGRAM DEDUCTIBLE BUY-DOWN
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
Recommend approval of the Property Program deductible buy-down for program year 2019-2020 and elimination of the deductible buy-down starting with program year 2020-2021.
Strategic Direction:
This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive. Item Explanation:
In May 2018, the participants of the Property Program voted to increase the program deductible from $25,000 to $100,000 for program year 2019/19. At the same time, they voted a deductible buy-down option that allowed for a $50,000 buy-down for the first loss for a participant and a $25,000 buy-down for the second loss for the same participant. No buy-down is available for a third or subsequent loss in the program year. The buy-down option was intended as a temporary measure to transition to the increased deductible, and staff recommends that it be eliminated effective July 1, 2020. Continuing the buy-down for program year 2019/20 provides for an additional year of transition and allows program participants to plan for a $100,000 deductible with no buy-down beginning with program year 2020/21. Elimination of the buy-down will mean that participants will need to retain the first $100,000 of any covered property loss, which should encourage loss control efforts at the participant level. If the participants approve the elimination of the buy-down, any funds remaining in the buy-down pool will be returned to participants on a pro rata basis either as refunds or as a reduction of participant premium for the 2020-2021 program year. In program year 2018-2019, three losses qualified for the deductible buy-down. All three losses are still being adjusted, so neither the deductible nor the buy-down has been applied yet. The self-funded deductible buy-down is currently funded at $430,000. Fiscal Impact
None currently. The ultimate fiscal impact will depend on the decision of Property Program participants.
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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 12 TITLE: APPROVAL OF CHANGES TO THE PROPERTY PROGRAM MEMORANDUM OF COVERAGE
MEETING: 05/22 – 5/23/2019
GENERAL MANAGER:
Recommended Actions:
Adopt the Alliant Public Entity Property Insurance Program (PEPIP) coverage form as the governing form for the CJPRMA Property Program effective July 1, 2019. Approve four endorsements to that coverage form. Cancel the CJPRMA Memorandum of Coverage (MOC).
Strategic Direction:
This item addresses Strategic Goal 1, Employ Customizable Products and Services to be Competitive. Item Explanation:
Prior to moving the Property Program to Alliant, the program was governed by a Memorandum of Coverage (MOC) that was reinsured following form to the MOC. With the move to Alliant, the coverage form for the Property Program has been the Alliant Public Entity Property Program (PEPIP) form. PEPIP is the leading element of the broader Alliant Property Insurance Program (APIP). There have been some challenges in aligning the MOC with PEPIP. The PEPIP form is very broad, and it is a large form. In trying to mirror the PEPIP form, there have been instances in which the MOC and the PEPIP form have been in conflict. This has created confusion for program participants and confusion when we need to provide coverage information to third parties (e.g. CalOES or FEMA). Rather than try to align the MOC with PEPIP and create confusion as to coverage, staff recommends adoption of the PEPIP form as the controlling document for the program and elimination of the MOC. Staff further recommends the approval of three endorsements to retain elements of the MOC that continue to be valuable to the Property Program. The endorsements are attached (Exhibits 2-4) and cover the following areas:
• Notice of Newly Acquired Property and Property Value Reporting • Notice of Loss • Exclusion of Certain Vacant Structures/Buildings
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Fiscal Impact: None currently. The ultimate financial impact will be based upon submissions provided by the carriers. Exhibits:
1. PEPIP Form 13 Master Wording 2. CJPRMA Property Program Endorsement 1: Notice of Newly Acquired Property and Property Value
Reporting 3. CJPRMA Property Program Endorsement 2: Notice of Loss 4. CJPRMA Property Program Endorsement 3: Exclusion of Certain Vacant Structures/Buildings
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PEPIP USA FORM No.13
MASTER POLICY WORDING
COVERAGE INCEPTING
FROM JULY 1, 2017 TO JULY 1, 2018
Page 167
Public Entity Property Insurance Program (PEPIP) Form No. 13
TABLE OF CONTENTS Page
SECTION I ................................................................................................................................................................... 1
GENERAL PROVISIONS .......................................................................................................................................... 1
A. INSURING AGREEMENT ............................................................................................................................. 1
B. NAMED INSURED .......................................................................................................................................... 1
C. MAILING ADDRESS OF NAMED INSURED ............................................................................................. 1
D. POLICY PERIOD ............................................................................................................................................ 1
E. LIMITS OF LIABILITY ................................................................................................................................. 1
F. OPTIONAL COVERAGE PARTICIPATION .............................................................................................. 3
G. DEDUCTIBLE PROVISIONS ........................................................................................................................ 3
H. UNIT OF INSURANCE DEFINED ................................................................................................................ 4
I. PRIORITY OF PAYMENTS .............................................................................................................................. 4
SECTION II ................................................................................................................................................................. 5
A. COVERAGE ..................................................................................................................................................... 5
B. EXTENSIONS OF COVERAGE .................................................................................................................... 5
1. PERSONAL EFFECTS ......................................................................................................................................... 5 2. PROPERTY IN COURSE OF CONSTRUCTION AND ADDITIONS ................................................................ 5 3. FIRE FIGHTING EXPENSES ............................................................................................................................... 6 4. OFF PREMISES SERVICES INTERRUPTION ................................................................................................... 6 5. ARCHITECTS AND ENGINEERS FEES AND LOSS ADJUSTMENT EXPENSES ......................................... 6 6. EXPEDITING EXPENSES ................................................................................................................................... 7 7. DEBRIS REMOVAL ............................................................................................................................................. 7 8. BUILDING LAWS ................................................................................................................................................ 7 9. DEMOLITION COST ........................................................................................................................................... 7 10. INCREASED COST OF CONSTRUCTION ......................................................................................................... 7 11. ERRORS & OMISSIONS ...................................................................................................................................... 8 12. ANIMALS ............................................................................................................................................................. 8 13. VALUABLE PAPERS........................................................................................................................................... 8 14. TRANSIT .............................................................................................................................................................. 8 15. VEHICLES WHILE ON INSURED PREMISES .................................................................................................. 8 16. ASBESTOS CLEAN UP AND REMOVAL .......................................................................................................... 8 17. PROTECTION AND PRESERVATION OF PROPERTY .................................................................................... 9 18. LEASEHOLD INTEREST ...................................................................................................................................... 9 19. AUTOMATIC ACQUISITION AND REPORTING CONDITIONS ................................................................... 10 20. MISCELLANEOUS UNNAMED LOCATIONS .................................................................................................. 11 21. ACCIDENTAL CONTAMINATION ................................................................................................................... 11
C. PROPERTY NOT COVERED ...................................................................................................................... 11
D. LOSS PAYMENT BASIS / VALUATION ................................................................................................... 12
SECTION III ............................................................................................................................................................. 16
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BUSINESS INTERRUPTION, EXTRA EXPENSE, RENTAL INCOME, TAX INTERRUPTION AND
TUITION INCOME .................................................................................................................................................. 16
A. COVERAGE ................................................................................................................................................... 16
1. BUSINESS INTERRUPTION ............................................................................................................................. 16 2. EXTRA EXPENSE .............................................................................................................................................. 17
B. EXTENSIONS OF COVERAGE .................................................................................................................. 17
1. INGRESS / EGRESS ........................................................................................................................................... 17 2. INTERRUPTION BY CIVIL AUTHORITY ....................................................................................................... 17 3. DEMOLITION AND INCREASED TIME TO REBUILD ................................................................................. 17 4. CONTINGENT TIME ELEMENT COVERAGE ............................................................................................... 18 5. TAX REVENUE INTERRUPTION .................................................................................................................... 18 6. EXTENDED PERIOD OF INDEMNITY ............................................................................................................ 18 7. EXPENSES TO REDUCE LOSS ........................................................................................................................ 19
C. EXCLUSIONS ................................................................................................................................................ 19
D. CONDITIONS APPLICABLE TO THIS SECTION .................................................................................. 19
E. DEFINITIONS ................................................................................................................................................ 19
1. GROSS EARNINGS ............................................................................................................................................ 19 2. MERCHANDISE ................................................................................................................................................. 20 3. EXTRA EXPENSE .............................................................................................................................................. 20 4. RENTAL VALUE ............................................................................................................................................... 20 5. PERIOD OF RESTORATION ............................................................................................................................. 21
SECTION IV .............................................................................................................................................................. 22
GENERAL CONDITIONS ....................................................................................................................................... 22
A. PERILS COVERED ....................................................................................................................................... 22
B. EXCLUSIONS ................................................................................................................................................ 22
C. STATUTES ..................................................................................................................................................... 26
D. TERRITORIAL LIMITS ............................................................................................................................... 28
E. REINSTATEMENT ....................................................................................................................................... 28
F. FREE ON BOARD (F.O.B.) SHIPMENTS .................................................................................................. 28
G. BREACH OF CONDITIONS ........................................................................................................................ 28
H. PERMITS AND PRIVILEGES ..................................................................................................................... 28
I. PROTECTIVE SAFEGUARDS .................................................................................................................... 29
J. NOTICE OF LOSS ......................................................................................................................................... 29
K. ARBITRATION OF VALUE ........................................................................................................................ 29
L. PROOF OF LOSS ........................................................................................................................................... 29
M. SUBROGATION ............................................................................................................................................ 29
N. CANCELLATION .......................................................................................................................................... 30
O. ABANDONMENT .......................................................................................................................................... 30
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P. ASSIGNMENT ................................................................................................................................................ 30
R. OTHER INSURANCE ................................................................................................................................... 31
S. EXCESS INSURANCE .................................................................................................................................. 31
T. RIGHT TO REVIEW RECORDS FOLLOWING AN INSURED LOSS ................................................. 31
U. CONCEALMENT AND FRAUD .................................................................................................................. 31
V. FULL WAIVER .............................................................................................................................................. 31
W. SUIT AGAINST COMPANY ........................................................................................................................ 32
Y. JOINT LOSS ADJUSTMENT – EXCESS PROPERTY ............................................................................ 33
Z. LENDER’S LOSS PAYABLE ....................................................................................................................... 34
AA. SEVERAL LIABILITY NOTICE ................................................................................................................. 36
AB. LOSS PAYABLE PROVISIONS .................................................................................................................. 36
AC. ELECTRONIC DATA ................................................................................................................................... 38
AD. LOSS ADJUSTMENT SERVICES ............................................................................................................... 39
AE. SERVICE OF SUIT CLAUSE (USA) APPLICABLE TO EXCESS CARRIERS .................................... 39
1. OCCURRENCE ................................................................................................................................................... 39 a. Windstorm ................................................................................................................................................. 39 b. Flood ......................................................................................................................................................... 40 c. Flood Zone A and V .................................................................................................................................. 42 d. Earthquake Shock ...................................................................................................................................... 42
2. PERSONAL PROPERTY OF OTHERS .............................................................................................................. 42 3. IMPROVEMENTS AND BETTERMENTS ....................................................................................................... 43 4. VALUABLE PAPERS AND RECORDS ............................................................................................................ 43 5. TIER I WINDSTORM COUNTIES ..................................................................................................................... 43
AG. ADDITIONAL INSURED’S / LOSS PAYEES ............................................................................................ 44
SECTION V ............................................................................................................................................................... 45
FINE ARTS ................................................................................................................................................................ 45
A. COVERAGE ................................................................................................................................................... 45
1. PROPERTY COVERED ..................................................................................................................................... 45 2. “WALL TO WALL” (“NAIL TO NAIL”) COVERAGE ..................................................................................... 45
B. EXCLUSIONS ................................................................................................................................................ 45
C. LOSS PAYMENT BASIS / VALUATION ................................................................................................... 46
D. SPECIAL CONDITIONS .............................................................................................................................. 47
SECTION VI .............................................................................................................................................................. 49
Public Entity Property Insurance Program (PEPIP) Form No.13
A. COVERAGE ................................................................................................................................................... 49
B. PERILS EXCLUDED ..................................................................................................................................... 49
C. PROPERTY EXCLUDED ............................................................................................................................. 50
D. LOSS PAYMENT BASIS / VALUATION ................................................................................................... 50
E. SPECIAL CONDITIONS .............................................................................................................................. 50
SECTION VII ............................................................................................................................................................ 51
A. COVERAGE ................................................................................................................................................... 51
B. EXCLUSIONS ................................................................................................................................................ 51
C. LOSS PAYMENT BASIS / VALUATION ................................................................................................... 51
D. DEFINITIONS: ............................................................................................................................................... 52
SECTION VIII ........................................................................................................................................................... 53
A. COVERAGE ................................................................................................................................................... 53
B. PERILS EXCLUDED ..................................................................................................................................... 53
C. PROPERTY EXCLUDED ............................................................................................................................. 54
D. LOSS PAYMENT BASIS / VALUATION ................................................................................................... 54
E. SPECIAL CONDITIONS .............................................................................................................................. 54
THIS SECTION COVERS PROPERTY ONLY WITHIN THE LIMITS OF THE UNITED STATES OF
F. DEFINITIONS ................................................................................................................................................ 55
1. UNMANNED AIRCRAFT .................................................................................................................................. 55 2. IN FLIGHT .......................................................................................................................................................... 55 3. IN MOTION ........................................................................................................................................................ 55
SECTION IX .............................................................................................................................................................. 56
BOILER AND MACHINERY BREAKDOWN EXTENSION ............................................................................. 56
PROGRAM AND/OR NAMED INSURED AND/OR DECLARATION SPECIFIC ENDORSEMENTS TO
BE PROVIDED AFTER THE ABOVE PAGE ....................................................................................................... 65
explosion, riot, riot attending a strike, civil commotion, actual physical contact with an
aircraft or airborne missile including objects falling therefrom, collision with other vehicles
or other contractors equipment whether or not such other equipment is covered hereunder,
landslide, or upset of the unit of which it is a part (but only when and to the same extent that
such other perils are covered by the Policy).
4. Loss or damage due to explosion arising from within steam boilers.
5. Loss or damage to dynamos, exciters, lamps, switches, motors or other electrical appliances
or devices, including wiring, caused by lightning or other electrical currents (artificial or
natural) unless fire ensues and then for the loss by fire only.
6. Loss or damage due to dishonesty of Named Insured’s employees or persons to whom the
Named Insured’s property is entrusted.
7. Loss or damage caused by or contributed to failure of the Named Insured to keep and
maintain the property in a thorough state of repair.
8. Loss or damage caused by or resulting from:
a. War, hostile or warlike action in time of peace or, including action in hindering,
combating or defending against an actual, impending or expected attack;
i. by any government or sovereign power (de jure or de facto) or by any
authority maintaining using military, naval or air forces or;
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ii. any military, naval or air forces or;
iii. by an agent of any such government, power, authority or forces;
b. any weapon of war employing atomic fission or radioactive force whether in time of
peace or war;
c. insurrection, rebellion, revolution, civil war, usurped power, or action taken by
governmental authority in hindering, combating or defending against such an
occurrence, seizure or destruction under quarantine or customs regulations,
confiscation by order of any government or public authority, or risks of contraband or
illegal transportation or trade;
9. Loss by nuclear reaction or nuclear radiation or radioactive contamination, all whether
controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote,
or be in whole or in part caused by, contributed to, or aggravated by the peril(s) covered
against in this endorsement; however, subject to the foregoing and all provisions of this
Policy, direct loss by fire resulting from nuclear reaction or nuclear radiation or radioactive
contamination is covered against by this Policy.
C. PROPERTY EXCLUDED
1. Automobiles, motorcycles, motor trucks, or parts thereof.
2. Buildings
3. Machinery or equipment or building materials to be installed in any building for the purpose
of becoming a part thereof; nor on any property which has become a permanent part of any
structure.
4. Property that is located underground.
5. Property while waterborne except while being transported on any regular ferry.
6. The storage risk of property not owned or required to be insured by the Named Insured at
premises controlled or leased by the Named Insured, except where incidental to the regular or
frequent use of the equipment or property.
7. Plans, blue prints, designs or specifications.
D. LOSS PAYMENT BASIS / VALUATION
On Contractors Equipment (whether self propelled or not), on or off premises, where Replacement
Cost (New) values are specified, loss or damage shall be based on 100% of the Replacement Cost
(New) at the time of loss. Partial losses shall be based on the cost of repairing or replacing the
damaged portion, up to the fair market value of the Contractors Equipment. However, should
these costs exceed the fair market value then recovery shall be based upon the Replacement Cost
(New).
If the values, provided by the Named Insured, provides a valuation based on replacement cost, then
recovery will be on the same basis, if replaced. If not replaced, the basis of recovery shall be actual
cash value.
E. SPECIAL CONDITIONS
This section covers property only within the limits of the United States of America.
It is a condition of this Policy that all articles covered hereunder are in sound condition at the time of
attachment of this Policy.
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SECTION VII
ACCOUNTS RECEIVABLE
A. COVERAGE
This Policy covers the loss of or damage resulting from insured perils to the Named Insured’s
records of accounts receivable as defined below, occurring during the Policy period.
B. EXCLUSIONS
In addition to the exclusions in the General Conditions, this coverage does not apply:
1. To loss due to any fraudulent, dishonest or criminal act by the Named Insured, a partner
therein, or an officer, director, employee or trustee thereof, while working or otherwise and
whether acting alone or in collusion with others.
For the purpose of this exclusion an act of vandalism or malicious damage by an employee
shall not constitute a dishonest, fraudulent or criminal act.
2. To loss due to bookkeeping, accounting or billing errors or omissions.
3. To loss, the proof of which as to factual existence, is dependent upon an audit of records or
an inventory computation; but this shall not preclude the use of such procedures in support if
claim for loss which the Named Insured can prove through evidence wholly apart therefrom,
is due solely to a risk of loss to records of accounts receivable not otherwise excluded
hereunder.
4. To loss due to alteration, falsification, manipulation, concealment, destruction or disposal of
records of accounts receivable committed to conceal the wrongful giving, taking, obtaining or
withholding of money, securities or other property, but only to the extent of such wrongful
giving, taking, obtaining or withholding.
C. LOSS PAYMENT BASIS / VALUATION
When there is proof that a loss covered by this Policy has occurred but the Named Insured cannot
accurately establish the total amount of accounts receivable outstanding as of the date of such loss,
such amount shall be based on the Named Insured’s monthly statements and shall be computed as
follows:
a. Determine the amount of all outstanding accounts receivable at the end of the same fiscal
month in the year immediately proceeding the year in which the loss occurs;
b. Calculate the percentage of increase or decrease in the average monthly total of accounts
receivable for the twelve (12) months immediately preceding the month in which the loss
occurs as compared with such average for the months of the preceding year;
c. The amount determined under (a) above, increased or decreased by the percentage calculated
under (b) above, shall be the agreed total amount of accounts receivable as of the last day of
the fiscal month in which said loss occurs;
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d. The amount determined under (c) above shall be increased or decreased in conformity with
the normal fluctuations in the amount of accounts receivable during the fiscal month
involved, due consideration being given to the experience of the business since the last day of
the last fiscal month for which statement has been rendered.
There shall be deducted from the total amount of accounts receivable, however established, the
amount of such accounts evidenced by records not lost or damaged or otherwise established or
collected by the Named Insured, and an amount to allow for probable bad debts which would
normally have been uncollectible by the Named Insured. All unearned interest and service charges
shall be deducted.
D. DEFINITIONS:
ACCOUNTS RECEIVABLE
a. All sums due to the Named Insured from customers provided the Named Insured is unable to
effect collection thereof as the direct result of loss or damage to records of accounts
receivable.
b. Interest charges on any loan to offset impaired collections pending repayment of such sums
made uncollectible by such loss or damage.
c. Collection expense in excess of normal collection cost and made necessary because of such
loss or damage.
d. Other expenses, when reasonably incurred by the Named Insured, in re-establishing records
of accounts receivable following such loss or damage.
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SECTION VIII
UNMANNED AIRCRAFT
A. COVERAGE
This Policy insures only Unmanned Aircraft, that are usual to your business that you own or are
required to insure, to pay for any physical damage loss sustained while not In Flight or In Motion
and which are not the result of fire or explosion following crash or collision while the Unmanned
Aircraft was In Flight or In Motion that are:
(1) Listed on the schedule which is a part of this policy or which is on file with us;
(2) Unscheduled but for an amount not to exceed the limit shown on the Declarations
If any of the property covered by this Section is also covered under any other provisions of the
Policy of which this Section is made a part, those provisions are hereby amended to exclude such
property, the intent being that the coverage under this Section is the sole coverage on such property.
B. PERILS EXCLUDED
This Section insures against all risks of direct physical loss or damage occurring during the policy
period to Unmanned Aircraft from any external cause except as provided below.
1. Loss or damage due to the Unmanned Aircraft being In Flight or In Motion including
during propulsion system startup or any time the propulsion system is operating.
2. Loss or damage due to wear, tear, rust, corrosion, latent defect, mechanical breakage,
freezing or improper assemblage.
3. Loss or damage due to the weight of the load imposed on the Unmanned Aircraft exceeding
the capacity for which such Unmanned Aircraft was designed.
4. Loss or damage to tires except where such loss or damage is caused by fire, theft, windstorm
or vandalism or is the direct result of physical damage covered by this policy.
5. Loss or damage to Unmanned Aircraft while being worked upon except for direct loss or
damage caused by resulting fire or explosion.
6. Loss or damage to dynamos, exciters, lamps, switches, motors or other electrical appliances
or devices, including wiring, caused by lightning or other electrical currents (artificial or
natural) unless fire ensues and then for the loss by fire only.
7. Loss or damage due to conversion, embezzlement or secretion by any person or organization
with legal right to possession of such Unmanned Aircraft under bailment, lease, conditional
sale, purchase agreement, mortgage or other legal agreement that governs the use, sale or
lease of the Unmanned Aircraft, nor for any loss or damage during or resulting therefrom.
8. Loss or damage due to dishonesty of Named Insured’s employees or persons to whom the
Named Insured’s property is entrusted.
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9. Loss or damage caused by or contributed to failure of the Named Insured to keep and
maintain the property in a thorough state of repair.
10. Loss or damage caused by or resulting from:
a. War, hostile or warlike action in time of peace or, including action in hindering,
combating or defending against an actual, impending or expected attack,
i. by any government or sovereign power (de jure or de facto) or by any
authority maintaining using military, naval or air forces; or
ii. any military, naval or air forces; or
iii. by an agent of any such government, power, authority or forces;
b. any weapon of war employing atomic fission or radioactive force whether in time of
peace or war;
c. insurrection, rebellion, revolution, civil war, usurped power, or action taken by
governmental authority in hindering, combating or defending against such an
occurrence, seizure or destruction under quarantine or customs regulations,
confiscation by order of any government or public authority, or risks of contraband or
illegal transportation or trade;
C. PROPERTY EXCLUDED
1. Unmanned Aircraft that are located in underground mines, caverns or underground storage
facilities.
2. Unmanned Aircraft while waterborne except while being transported on any regular ferry.
3. The storage risk of Unmanned Aircraft not owned or required to be insured by the Named
Insured at premises controlled or leased by the Named Insured, except where incidental to the
regular or frequent use of the equipment or property.
D. LOSS PAYMENT BASIS / VALUATION
On Unmanned Aircraft, on or off premises, where Replacement Cost (New) values are specified,
loss or damage shall be based on 100% of the Replacement Cost (New) at the time of loss. Partial
losses shall be based on the cost of repairing or replacing the damaged portion, up to the fair market
value of the Unmanned Aircraft. However, should these costs exceed the fair market value then
recovery shall be based upon the Replacement Cost (New).
If the values, provided by the Named Insured, provides a valuation based on replacement cost, then
recovery will be on the same basis, if replaced. If not replaced, the basis of recovery shall be actual
cash value.
E. SPECIAL CONDITIONS
This section covers property only within the limits of the United States of America.
It is a condition of this Policy that all articles covered hereunder are in sound condition at the time of
attachment of this Policy.
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F. DEFINITIONS
1. UNMANNED AIRCRAFT
Means a powered aerial vehicle that does not carry a human operator, uses aerodynamic forces to
provide vehicle lift, can fly autonomously or be piloted remotely, is recoverable and in some cases
can carry a non-lethal payload including the propulsion system and equipment usually installed in the
vehicle (1) while installed in the vehicle, (2) while temporarily removed from the vehicle and (3)
while removed from the aircraft for replacement until such time as replacement by a similar item has
commenced; also tools and equipment which are specially designed for the aircraft and which are
ordinarily carried therein.
2. IN FLIGHT
Means, with respect to fixed wing Unmanned Aircraft, the time commencing with the actual take-
off run or launch and continuing thereafter until it has completed its landing run; or capture; and if
the Unmanned Aircraft is a rotorcraft, from the time the rotors start to revolve under power for the
purpose of flight until they subsequently cease to revolve after landing; and if the Unmanned
Aircraft is a balloon, while it is inflated or being inflated or deflated.
3. IN MOTION
Means while the Unmanned Aircraft is moving under its own power or the momentum generated
therefrom or while it is In Flight and, if the Unmanned Aircraft is a rotorcraft, any time the rotors
are rotating or while it is In Flight and, if the Unmanned Aircraft is a glider or balloon, any time it
is being transported, towed or while it is In Flight.
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SECTION IX
BOILER AND MACHINERY BREAKDOWN EXTENSION
1. Perils Insured
In consideration of the premium paid and subject to the terms, conditions and Exclusions of the
policy to which this Extension is attached, and to the following terms and conditions, this Insurance
is extended to cover direct damage to Covered Property caused by a Covered Cause of Loss.
2. Additional Coverage
(a) Hazardous Substance
The additional expense incurred for cleanup, repair or replacement or disposal of damaged,
contaminated or polluted property as a result of an Accident, which causes property to
become damaged, contaminated or polluted by a substance declared hazardous to health by
an authorized governmental agency. The coverage provided by this clause is sub-limited to
USD as per Declaration Page. For the purpose of this coverage “Additional expense” means
any expense that would not have incurred, if no substance hazardous to health had been
involved in the accident
(b) Ammonia Contamination
The loss, including salvage expense, incurred with respect to damage by ammonia contacting
or permeating property under refrigeration or in process requiring refrigeration, as a result of
any one Accident to one or more Objects. The coverage provided by this clause is sub-
limited to USD as per Declaration Page.
(c) Water Damage
The loss, including salvage expense, with respect to property damaged by water, resulting
from any one Accident. The coverage provided by this clause is sub-limited to USD as per
Declaration Page.
(d) Media Coverage
The loss to all forms of electronic, magnetic and optical tapes and discs used in any electronic
computer or electronic data processing equipment directly damaged by an Accident to an
Object. The coverage provided by this clause is sub-limited to USD as per Declaration Page.
For the purpose of this coverage, the valuation basis for “Media” is as follows:
i. For “Media” that are mass-produced and commercially available, at the replacement
cost.
ii. For all other “Media”, at the cost of blank material for reproducing the records.
(e) Consequential Damage
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The “Consequential Damage” to refrigerated and frozen goods of the Named Insured or for
which the Named Insured is legally liable or under the Named Insured’s care, custody or
control caused solely by an Accident to an Object. For the purpose of this coverage,
“Consequential Damage” is defined as loss due to spoilage from lack of power, light, heat,
steam or refrigeration, resulting from Accident. The coverage provided by this clause is sub-
limited to USD as per Declaration Page.
(f) Utility Interruption
The loss caused by an Accident to an Object that is owned, operated or controlled by a public
or private entity that the Named Insured has contracted with to furnish them with electrical
utility service including all direct electrical suppliers. The coverage provided by this clause
is sub-limited to USD as per Declaration Page.
(g) CFC Refrigerants and Halon
The replacement of any CFC (chlorofluorocarbon) refrigerant used in refrigeration or air
conditioning equipment or Halon used in a fire suppression system due to an “Accident” to
an Object.
(h) Ordinance or Law
If an Accident to an Object at the Named Insured’s location damages a building that is
“Covered Property”, the Company will pay for
i. Loss to the Undamaged Portion of the Building, meaning loss to the undamaged
portion of the building caused by enforcement of any ordinance or law that:
a. Requires the demolition of parts of the same building not damaged by the
Accident to an Object; or
b. Regulates the construction or repair of buildings, or establishes zoning or land
use requirements at the location of the building.
ii. Demolition Cost meaning the cost to demolish and clear the site of undamaged parts
of the building, caused by the enforcement of building, zoning, or land ordinance or
use.
iii. Increased Cost of Construction, meaning the increased cost to:
a. Repair or reconstruct damaged portions of the building; and
b. Reconstruct or remodel undamaged portions of the building whether or not
demolition is required;
when the increased cost is a consequence of enforcement of building, zoning or land
use ordinance or law. But the Company will only pay for this increased cost if the
building is repaired, reconstructed or remodeled. Also, if the building is repaired,
reconstructed or remodeled, it must be intended for similar occupancy as the current
building, unless such occupancy is not permitted by zoning or land use ordinance or
law.
Insurance under this section only applies with respect to ordinance or law that is in
force at the time of the Accident to an Object. Insurance under this section does not
apply to:
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a. Costs associated with the enforcement of any ordinance or law which requires
any Named Insured or others to test for, monitor, clean up, remove, contain,
treat, detoxify, or neutralize, or in any way respond to, or assess the effects of
substances declared to be hazardous to health by a governmental agency; or
b. Loss due to any ordinance or law that:
i. The Named Insured was required to comply with before the Accident
to an Object even if the building was undamaged; and
ii. The Named Insured failed to comply with.
The coverage provided by this clause is sub-limited to USD as per Declaration Page.
3. Definition of Accident
Accident shall mean a sudden and accidental breakdown of the Object, or a part thereof, which
manifests itself at the time of it occurrence by physical damage to the Object that necessitates repair
or replacement of the Object or part thereof; but Accident shall not mean:
a. depletion, deterioration, corrosion , or erosion of material;
b. wear and tear;
c. leakage at any valve, fitting, shaft seal, gland packing, joint or connection;
d. the breakdown of any vacuum tube, gas tube or brush;
e. the breakdown of any structure or foundation supporting the Object or any part thereof;
f. the functioning of any safety device or protective device.
4. Definition of Object
Except as otherwise specifically designated herein, Object as described below shall mean any
equipment or apparatus which is owned by, leased by or operated under the control of the Named
Insured subject to the Exclusions and Special Provisions specified herein:
a. Any boiler, any fired vessel, any unfired vessel subject to vacuum or internal pressure other
than static pressure of contents, any refrigerating and air conditioning vessels, or any piping
and its accessory equipment, but such Object shall not include:
1. Any boiler setting, any insulating or refractory material,
2. Any sewer piping, any underground gas piping, any piping forming a part of a
sprinkler system or any water piping other than
(a) Feed water piping between any boiler and its feed pumps or injectors
(b) Boiler condensate returning piping
b. Any mechanical or electrical machine or electrical apparatus used for the generation,
transmission or utilization of mechanical or electrical power, but Object shall not include
1. Any structure or foundation other than a bedplate of a machine,
2. Any vehicle, elevator, crane, hoist, power shovel or drag line, but not excluding any
electrical equipment used with said machine or apparatus,
3. Any refractory material, or
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4. Any penstock or draft tube.
5. Covered Cause of Loss
A Covered Cause of Loss is an “Accident” to an Object insured hereon. An Object must be in use or
connected ready for use at the time of the Accident.
6. Covered Property
Covered Property, as used in this Extension, means any property that:
a. The Named Insured owns; or
b. Is in the Named Insured’s care, custody or control and for which they are legally liable
7. Special Provisions
a. As respects any boiler, fired or unfired vessel, refrigerating system or piping, the Company
shall not be liable for loss from an Accident while said Object is undergoing a hydrostatic,
pneumatic or gas pressure test that exceeds manufacturers recommended limits.
b. As respects any boiler of fired vessel, the Company shall not be liable for loss from an
explosion of gas or unconsumed fuel within the furnace of such Object or within the passages
from the furnace to the atmosphere, whether or not such explosion (a) is contributed to or
aggravated by an Accident to any part of said Object that contains steam or water, or (b) is
caused in whole or in part, directly or indirectly, by any Accident to any Object, or part
thereof, nor shall the Company be liable for any loss from an Accident caused directly or
indirectly by such explosion.
c. As respects any unfired vessel which is used for the storage of gas or liquid and which is
periodically filled, moved, emptied and refilled in the course of its normal service, such
vessel shall be considered as “connected ready for use” within the terms of this Extension of
the Policy.
d. As respects any Object or part of an Object that is being dismantled, reassembled or is in
storage, will be considered as “connected ready for use” within the terms of this Extension of
the Policy.
e. As respects any gas turbine of the internal combustion type, (a) the combustor or such Object
shall not be considered to be a “furnace” as the word is used in the Definition of Accident or
in Special Provision 2 above and (b) the Definition of Accident shall not mean the cracking
of any part of the Turbine exposed to the production of combustion.
f. As respects new turbine generator units, coverage shall not apply until the unit has been
contractually accepted by the Named Insured, that all tests required by the contractor have
been performed and satisfied and the unit has been placed in commercial operation.
8. Valuation
a. The Company will pay the Named Insured the amount the Named Insured spends to repair or
replace the property directly damaged by an Accident. The Company payment will be the
smallest of:
1) The Limit of Insurance;
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2) The cost at the time of the Accident to repair the damaged property with property of
like kind, capacity, size and quality;
3) The cost at the time of the Accident to replace the damaged property on the same site
with other property:
a) Of like kind, capacity, size and quality; and
b) Used for the same purpose
4) The amount the Named Insured actually spends that is necessary to repair or replace
the damaged property.
b. As respects any Object if the cost of repairing or replacing only a part of the Object is greater
than:
1) the cost of repairing the Object; or
2) the cost of replacing the entire Object on the same site;
The Company will pay only the smaller of (1) or (2). The repair parts or replacement Object
must be:
1) of like kind, capacity, size and quality; and
2) used for the same purpose.
c. The Company will not pay:
1) if the loss or damage is to property that is obsolete or useless to the Named Insured; or
2) for any extra cost if the Named Insured decides to repair or replace the damaged
property with property of a better kind or quality or of larger capacity,
d. If the Named Insured does not repair or replace the damaged property within 18 months after
the date of the Accident then the Company will pay on the smaller of the:
1) cost it would have taken to repair; or
2) actual cash value;
at the time of the “accident”.
Paragraph (d) does not apply to any time period beyond the 18 months that the Company agrees to in
writing.
e. As respects CFC (chlorofluorocarbon) refrigerant or Halon, the following valuation basis is
applicable:
1) If the CFC refrigerant or Halon is replaceable, the Named Insured may, at their
option, elect to:
a) Repair or replace the damaged refrigeration equipment, air conditioning
equipment or fire suppression system and replace the lost CFC refrigerant or
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Halon subject to it being of like kind, capacity, size and quality and used for
the same purpose; or
b) Change the refrigeration equipment, air conditioning equipment or fire
suppression system, through modification or replacement, to:
i. Refrigeration or air conditioning equipment that uses an approved non -
CFC refrigerant; or
i.
ii. A fire suppression system that uses an approved non – Halon agent.
But this option is available only if the change to the equipment or system is made
within 18 months after the date of the Accident or within any extended time period
that the Company agrees to in writing.
If Option 1) b) above is elected, the Company will not pay more than the least of the
following amounts:
a) The Limit of Insurance;
b) The cost at the time of the Accident to repair the damaged refrigeration
equipment, air conditioning equipment or fire suppression system, retrofit the
equipment or system to accept non – CFC refrigerant or non – Halon fire
suppressant, and charge the equipment or system with that refrigerant or fire
suppressant;
c) The cost at the time of the Accident to replace the damaged refrigeration
equipment, air conditioning equipment or fire suppression system with
equipment or a system that is functionally equivalent and uses an approved
non – CFC refrigerant or non – Halon fire suppressant;
d) The amount that the Named Insured actually spend that is necessary to change
the refrigeration equipment, air conditioning equipment or fire suppression
system, through modification or replacement, to equipment or a system that
uses an approved non – CFC refrigerant or non – Halon fire suppressant; or
e) One hundred twenty-five percent (125%) of the amount the Company
otherwise would have paid for loss to the refrigeration equipment, air
conditioning equipment or fire suppression system.
f. If the CFC refrigerant or Halon is not replaceable and:
(1) The Named Insured repairs or replaces the damaged equipment within 18 months
after the date of the Accident or within any extended time that the Company agrees to
in writing, the Company will pay the least of the following amounts:
(a) The Limit of Insurance;
(b) The cost at the time of the Accident to repair the damaged refrigeration
equipment, air conditioning equipment or fire suppression system, retrofit the
equipment or system to accept non – CFC refrigerant or non – Halon fire
suppressant, and charge the equipment or system with that refrigerant or fire
suppressant;
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(c) The cost at the time of the Accident to replace the damaged refrigeration
equipment, air conditioning equipment or fire suppression system with
equipment or a system that is functionally equivalent and uses an approved
non – CFC refrigerant or non – Halon fire suppressant;
(d) The amount that the Named Insured actually spend that is necessary to change
the refrigeration equipment, air conditioning equipment or fire suppression
system, through modification or replacement, to equipment or a system that
uses an approved non – CFC refrigerant or non – Halon fire suppressant.
(2) If the Named Insured does not replace the damaged equipment within 18 months after
the date of the Accident or within the extended time period that the Company agrees
to in writing, the Company will not pay more than the lesser of:
(a) The amount that the Company would have paid if repair or replacement of the
damaged equipment had been made as determined in F 1 above; or
(b) The actual cash value of the damaged equipment at the time of the Accident.
g. As respects Insurance under Ordinance and Law, the most the Company will pay as a result
of any one Accident for:
a) Loss to the Undamaged portion of the building is included in the Limit of Insurance
that otherwise applies to the damaged building. But in no event will the amount the
Company pay for loss to the building, including the loss in value of the undamaged
portion of the building due to enforcement of an ordinance or law to which this
coverage applies, exceed:
i. The amount that the Named Insured actually spend to repair, rebuild or replace
the building, but not more than the amount it would cost to restore the building
on the same premises and to the same height, floor area, style and comparable
quality of the original property insured; or
ii. The actual cash value of the building at the time of loss if the building is not
repaired or replaced.
b) Demolition and Increased Cost of Construction is USD as per Declaration Page,
subject to the following:
i. With respect to the coverage provided for Demolition Cost, the Company will
not pay more than the amount the Named Insured actually spend to demolish
and clear the site of the undamaged parts of the building;
ii. With respect to the coverage provided for Increased Cost of Construction:
(a) We will not pay for the Increased Cost of Construction:
Until the building is actually repaired or replaced at the same or
another premises; and
Unless the repairs or replacement are made as soon as reasonably
possible after the loss or damage, not to exceed 18 months. We may
extend this period in writing during the 18 months.
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(b) If the building is repaired or replaced at the same location, or if the
Named Insured elect to rebuild at another location, the most the
Company will pay for the increased cost of construction is the
increased cost of construction at the same location.
(c) If the ordinance or law requires relocation to another location, the most
the Company will pay for the increased cost of construction is the
increased cost of construction at the new location.
h. If a claim or “suit” is brought against the Named Insured alleging that the Named Insured is
liable for damage to property of another that was caused by an Accident to an Object, the
Company will either:
1. Settle the claim or “suit”, or
2. Defend the Named Insured against the “suit” but reserve the right for themselves to
settle at any point.
9. Exclusions
a. To loss:
1) from explosion of an Object other than:
a) Any steam boiler, steam piping, steam turbine, gas turbine, steam engine, or
b) Any machine when such loss is caused by centrifugal force or mechanical
breakdown,
b. Nuclear reaction or radiation or radioactive contamination however caused, however this
exclusion shall not apply to nuclear medicine at covered hospitals,
c. From fire concomitant with or following an Accident.
d. From an Accident caused directly or indirectly by fire
e. From a combustion explosion outside the Object concomitant with or following an Accident,
f. From an Accident caused directly or indirectly by a combustion explosion outside an Object
10. Conditions:
a. Inspection
The Company shall be permitted but not obligated to inspect the Named Insured’s property
and operations at any reasonable time. Neither the right to make inspections nor the making
thereof nor any advice or report resulting therefrom shall constitute an undertaking, on behalf
of or for the benefit of the Named Insured or others, to determine or warrant that such
property or operations are safe or healthful, or are in compliance with any law, rule or
regulation.
b. Suspension
Upon the discovery of a dangerous condition with respect to any Object, Alliant Insurance
Services, Inc., may immediately suspend the insurance, with respect to an Accident to said
Object, by written notice mailed or delivered to the Named Insured at the address of the
Named Insured stated in the Declaration Page, or at the location of the Object, as stated for it
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in a schedule or endorsement. The insurance so suspended may be reinstated by the
Company but only by an endorsement issued to form a part of this Policy. The Named
Insured shall be allowed the unearned portion of the premium paid for such suspended
insurance, pro rata for the period of suspension.
c. Notice of Accident and Adjustments
When an Accident occurs, written notice shall be given to the Company as soon as
practicable. The Company shall be given like notice of any claim made on account of such
Accident. The Company or their representative shall have reasonable time and opportunity to
examine the property, and the Named Insured’s Location of Risk, before repairs are
undertaken or physical evidence of the Accident is removed, except for protection or salvage.
Proof of loss shall be made in such form as the Company may require. If suit is brought
against the Named Insured for loss to which this Section of the Policy is applicable, any
summons or other process served upon the Named Insured shall be forwarded immediately to
the Company.
d. Deductible
In the event of an Accident to an Object as insured under this Extension that is concomitant
with or followed by physical loss or damage incurred under the All Risks policy that this
Extension attaches to, the deductible to be applied to the total loss shall be the applicable
Boiler & Machinery deductible.
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PROGRAM AND/OR NAMED INSURED AND/OR DECLARATION SPECIFIC
ENDORSEMENTS TO BE PROVIDED AFTER THE ABOVE PAGE
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ENDORSEMENT 1
CANCELLATION CLAUSE AMENDMENT DUE TO FINANCIAL STRENGTH DOWNGRADE ENDORSEMENT
It is hereby understood and agreed that Section IV, General Conditions, Clause N, Cancellation of this policy is amended. This endorsement modifies insurance provided by the policy:
The Cancellation Provision, Cancellation Condition, or Cancellation Clause, whichever is applicable, is
amended by adding the following paragraph to the end thereof:
Notwithstanding any other terms or conditions of this policy to the contrary, in the event that the
financial strength rating of the Company is downgraded to: (1) below A- by A.M. Best Co., or (2)
below BBB by Standard & Poor’s Ratings Services (hereinafter, the Credit Rating Downgrade), this
policy may be canceled by the FIRST NAMED INSURED by mailing prior written notice to the
Company or by surrender of this policy to the Company.
If this policy is canceled by the First Named Insured due to such Credit Rating Downgrade, then
the Company shall return the unearned pro rata proportion of the premium as of the effective date of
cancellation and shall waive any minimum earned premium requirement specified herein.
The following definitions apply to this endorsement:
1. Company means Lexington Insurance Company.
2. First Named Insured means the first Named Insured as shown on the Declarations page of this
policy. ALL OTHER TERMS, CONDITIONS AND EXCLUSIONS REMAIN UNCHANGED.
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ENDORSEMENT 2
COVERAGE TERRITORY ENDORSEMENT
This endorsement modifies insurance provided by the Policy:
The Insurer shall not be deemed to provide cover and the Insurer shall not be liable to pay any claim or
provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or
provision of such benefit would expose the Insurer, its parent company or its ultimate controlling entity to
any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions,
laws or regulations of the European Union or the United States of America.
PR4225 (07/13)
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ENDORSEMENT 3
WAR AND TERRORISM EXCLUSION ENDORSEMENT
(applies to locations outside the USA, its territories and possessions)
Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed
that this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused
by, resulting from or in connection with any of the following regardless of any other cause or event
contributing concurrently or in any other sequence to the loss;
(1) war, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or
not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportions of or
amounting to an uprising, military or usurped power; or
(2) any act of terrorism.
For the purpose of this endorsement an act of terrorism means an act, including but
not limited to the use of force or violence and/or the threat thereof, of any person or
group(s) of persons, whether acting alone or on behalf of or in connection with any
organization(s) or government(s), committed for political, religious, ideological or
similar purposes including the intention to influence any government and/or to put the
public, or any section of the public, in fear.
This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly
caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in
any way relating to (1) and/or (2) above.
If the Underwriters allege that by reason of this exclusion, any loss, damage, cost or expense is not covered
by this insurance the burden of proving the contrary shall be upon the Assured.
In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall
remain in full force and effect.
NMA2918
08/10/2001
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Public Entity Property Insurance Program (PEPIP) Form No.13
ENDORSEMENT NO. 4 This endorsement, effective 12:01 A.M., 07/01/2017 Issued to: Public Entity Property Insurance Program (PEPIP) Master Policy Form 13
This endorsement modifies insurance provided by this Policy: NOTICE: THE SUBLIMITS OF INSURANCE PROVIDED HEREIN ARE SUBJECT TO AND INCLUDED WITHIN POLICY LIMIT OF LIABILITY.
SCHEDULE Communicable Disease: $500,000 Per Occurrence and annual aggregate per named insured subject to an aggregate of $10,000,000 for Declarations 1-5, 8-13, 18-21, 25-30, and 33-34 combined. The following Additional Coverage is added to Section III, B. Extension of Coverage, item 4. Contingent Time Element Coverage: COMMUNICABLE DISEASE COVERAGE: Subject to the Annual Aggregate for Communicable Disease, we will pay actual business income loss sustained by you and communicable disease extra expense and crisis response expenses incurred by you, during the period of indemnity due to an order of an authorized governmental agency during the policy period that results in a partial or total suspension of your business operations at your medical facility. The following additional definitions apply to this Additional Coverage and supersede any similar definitions of this Policy to the contrary: 1. Crisis response expenses means reasonable and necessary expenses incurred: a. For public relations to restore the reputation and stature of your medical facility, and b. To assist you to recover money from any governmental program or agency for communicable disease extra expense incurred by your medical facility. 2. Communicable disease extra expense means reasonable and necessary extra expenses to: a. Cleanup, remove and dispose of any property at your medical facility that is contaminated by the presence of a communicable disease, and b. Restore your medical facility to its original condition,
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THIS ENDORSEMENT (1) CHANGES THE COVERAGE. PLEASE READ IT CAREFULLY.
NOTICE OF NEWLY ACQUIRED PROPERTY; PROPERTY VALUE REPORTING
Members shall report to CJPRMA any newly acquired property, structure, improvement or property enhancements with a value equal to or in excess of $5,000,000 within ninety days of acquisition. An additional premium will be charged, prorated from the date of acquisition through the end of the Program Term. All newly acquired structures with a value under $5,000,000 must be reported to CJPRMA for the Program Term immediately following the date of acquisition, or by June 30th of the program year, for inclusion in the premium for the following Program Term.
Members are required to report the value of structures based upon the CJPRMA approved appraisal report, including any annual cost of living adjustments to the appraised values. No lower “stated value” reporting is permitted.
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THIS ENDORSEMENT (2) CHANGES THE COVERAGE. PLEASE READ IT CAREFULLY.
NOTICE OF LOSS
In addition to providing Notice of Loss as required in Section IV(J) of the PEPIP USA Master Policy Wording, the Member shall provide simultaneous Notice to the CJPRMA at 3201 Doolan Road, Suite 185, Livermore, CA, phone (925) 837-0667, Fax (925) 290-1543. Alternatively, Notice may be provided via email to [email protected].
Notice of Loss must be provided “as soon as practicable upon knowledge within the risk management or finance division of the insured that a loss has occurred.” In addition, no Loss will be covered that is reported more than one year after the conclusion of the Program Term.
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THIS ENDORSEMENT (3) CHANGES THE COVERAGE. PLEASE READ IT CAREFULLY.
EXCLUSION OF CERTAIN VACANT STRUCTURES/BUILDINGS
Definition: The term vacant is defined as an entire abandonment, deprived of contents, empty, that is, without contents of substantial utility. The term unoccupied means lacking the habitual presence of human beings, and not used by the building owner or tenant to conduct customary operations.
Definition: The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.
Any member that has a structure/building covered by this property program must notify CJPRMA if it is or becomes a vacant or unoccupied structure/building, within 60 days of the structure/building becoming vacant or unoccupied. Once a structure/building has been vacant or unoccupied for a period of 90 days, regardless of whether it is reported as such, the structure will be considered vacant/unoccupied for the purpose of this addendum. All such vacant or unoccupied structures sustaining any loss covered within this MOC will be subject to the following limits of coverage.
1. There will be no rental interruption or loss of use coverage for any such structure/building. There will be no coverage for vandalism, building glass breakage, or water damage. All vacant/unoccupied structures sustaining loss will not be eligible to receive reimbursement at replacement cost. Settlement is strictly fair market value or the stated insurable value, whichever is less. In no event shall the total payment on any claim involving a vacant/unoccupied structure exceed the current reported value.
2. Failure to report the vacant/unoccupied status of the structure/building to CJPRMA within
60 days from the structure/building becoming vacant or unoccupied will result in a reduction in coverage for reimbursement of demolition costs to no more than 50% of the total cost of demolition.
3. Once a structure/property has been reported to CJPRMA as vacant/unoccupied, the
member will supply CJPRMA with an updated value of the structure recognizing the structure as vacant/unoccupied and submit the value based upon fair market value.
4. Failure to report the vacant/unoccupied status of the structure/building to CJPRMA within
60 days from the structure/building becoming vacant or unoccupied will result in a reduction in coverage to fair market value minus 50%.
A Member may eliminate the limitations in sections 2 and 4 above by subsequently reporting the vacant/unoccupied status to CJPRMA in writing a minimum of 60 days prior to a loss.
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As used herein, "vacant" and "unoccupied" does not include buildings or structures under construction, including substantial continuing activities of renovation. If a vacant/unoccupied building becomes no longer vacant or unoccupied, the member shall promptly report the change in status with updated valuation, and the limitations set forth above shall cease to apply to losses occurring after CJPRMA receipt of the Member’s written report of change in status and updated valuation.
The limitations in this addendum will not apply to mortgagors that are required by contract to be loss payees.
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Back to Agenda
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 13 TITLE: APPROVAL OF THE PROPOSED AMENDMENTS TO THE CJPRMA BYLAWS ARTICLE III, DIRECTORS & OFFICERS, AND ARTICLE IV, EXECUTIVE COMMITTEE MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
Approve proposed amendments to the Article III, Directors & Officers, and Article IV, Executive Committee, of the CJPRMA Bylaws.
Strategic Direction:
This item addresses Strategic Goal 3, Foster Informed and Engaged Board Leadership.
Item Explanation:
Article XV of the CJPRMA Bylaws describes the process for amending the Bylaws:
“These Bylaws may be amended by a majority vote of the entire Board provided that any amendment is compatible with the purposes of the Authority, is not in conflict with the JPA Agreement, and has been submitted to the Board at least thirty (30) days in advance.”
In 2017, the Board of Directors approved an amendment to the Bylaws reducing the annual number of board meetings from five to four. Since then, the Board has not held a June meeting. The current Bylaws call for Officer and Executive Committee elections to be held during the June meeting. The proposed amendment changes that to the August meeting. This is consistent with Board practice since 2017. While making these updates, staff also corrected several typographical and formatting errors. Also, payroll data is now gathered via form DE-9 rather than form DE-3DP, and staff made this nomenclature change. These proposed amendments were presented to the Board of Directors at the March 21, 2019 Board of Directors meeting, and that agenda item served as 30 days’ advance notice. The general manager will be present to discuss the recommended modifications.
Fiscal Impact:
None
Exhibits:
1. Draft CJPRMA Bylaws with proposed amendments and corrections
Offices ................................................................................................................... 4 3) ARTICLE III
Directors & Officers .............................................................................................. 5 Appointment of Board of Directors ................................................................. 5 Election and Removal of Officers .................................................................... 5
Receipt and Disbursement of Funds ................................................................. 13 9) ARTICLE IX
Settlement of Claims ........................................................................................... 14 10) ARTICLE X
Pooled Coverage Programs ............................................................................... 15 Automobile/General Liability Program ........................................................... 15 Automobile/General Liability Program Cash Contributions ............................ 15 Workers Compensation Program .................................................................. 17 Workers Compensation Program Cash Contributions ................................... 17 Property Program .......................................................................................... 18 Property Program Cash Contributions .......................................................... 18
11) ARTICLE XI
Memorandum of Coverage for the Automobile/General Liability Pooled Coverage Program ................................................................................. 19
12) ARTICLE XII
Assessments ....................................................................................................... 21 13) ARTICLE XIII
New Members ...................................................................................................... 22 Pool Membership .......................................................................................... 22 Coverage ....................................................................................................... 22 Application Process ....................................................................................... 22
14) ARTICLE XIV
Termination and Distribution ............................................................................. 24 Cash Contributions ........................................................................................ 24 Real and Personal Property (other than cash contributions) ......................... 24
Appendix A .......................................................................................................... 26 Principal Executive Office .............................................................................. 26
BYLAWS For the regulation of the California Joint Powers Risk Management Authority, except as otherwise provided by Statute or the Joint Powers Agreement Creating the California Joint Powers Risk Management Authority.
ARTICLE I
DEFINITIONS The terms in these Bylaws shall be as defined herein and in the Joint Powers Agreement Creating the California Joint Powers Risk Management Authority (hereinafter JPA Agreement), unless otherwise specified herein. 1. Alternate Director shall mean that individual appointed by a member entity to act in
the absence of its duly appointed representative except the alternate director shall not exercise the powers of an officer of the Authority or serve on the Executive Committee.
2. Authority shall mean the California Joint Powers Risk Management Authority created
by the JPA Agreement. 3. Board or Board of Directors shall mean the governing body of the Authority
composed of one representative of each member entity. 4. Cash Assessment shall mean an amount determined by the Board of Directors to
be paid by each member entity as necessary to meet the Authority's obligations. 5. Cash Contribution shall mean the annual dollar amount determined by the Board of
Directors which is payable by each member entity as its established share of the funding required to cover the financial obligations of each pooled coverage program in which the member entity participates.
6. Certificate of Coverage for Additional Covered Party shall be the document issued
by the Authority to third parties specifying the type and amount of pooled coverage provided to the member entity by the Authority and extended to the named third party for the specified purpose.
7. Claims shall mean demands made against the member entities or the Authority
arising out of occurrences which may be within the Authority's pooled coverage programs.
8. Covered Loss shall mean any loss resulting from a claim or claims against a member
entity or the Authority which is in excess of the member entity’s respective retained limit and is covered by any Memorandum of Coverage issued by the Authority or any purchased coverage programs and shall include loss payments, defense costs and other charges directly attributable to the resolution of the matter including defense costs incurred by the Authority.
9. Director shall mean that individual appointed from that member entity to serve on the
Board of Directors. 10. Entire Board shall consist of all directors, whether or not present at a Board meeting. 11. Excess Insurance shall mean that commercial insurance purchased by the Authority
to cover losses in excess of the Authority's pooled limits and/or each member entity's retained limit.
12. Executive Committee shall mean that body composed of the President,
Vice-President and five additional members of the Board of Directors elected in accordance with these Bylaws.
13. General Manager/Secretary shall mean an officer of the Authority appointed by a
majority of the entire Board and who shall serve at the pleasure of the Board. 14. Incurred Loss shall mean the sum of monies paid or reserved by the Authority to
investigate, defend and satisfy a covered loss sustained by a member entity or the Authority.
15. Majority Vote shall mean a number greater than one-half of the votes cast. 16. Member Entity shall mean each of the public entities which is a party to the JPA
Agreement. 17. Memorandum of Coverage shall be the document issued by the Authority to member
entities specifying the type, amount and conditions of pooled coverage provided to each participant by the Authority.
18. Plurality Vote shall mean the greatest number of votes when there are two or more
competitors for the same office. 19. Pooled Coverage Programs shall consist of coverages provided directly by the
Authority pursuant to a Memorandum of Coverage and/or provided by a purchased coverage program. These may include, but are not limited to, property, workers' compensation, and liability coverages as may be determined by the Board.
20. Program Year shall mean a period of time determined by the Board, usually 12 months, into which each pooled coverage program shall be segregated for purposes of accounting and record keeping.
21. Purchased Coverage Program shall mean any transfer of risk by the Authority
through the purchase of commercial excess insurance, participation in a joint powers authority, risk retention group or similar mechanism.
22. Retained Limit shall mean the amount of a claim which the member entity must incur,
or become liable for, before the Authority, or any applicable purchased coverage program, is obligated to pay.
23. Treasurer shall mean an officer of the Authority appointed by a majority of the entire
Board who shall serve at the pleasure of the Board.
The principal executive office for the transaction of business of the Authority and receipt of all notices is hereby fixed and located as described in Appendix A attached hereto and incorporated herein by reference. The Board shall have the authority to change the location of the principal executive office. Other business offices may be established by the Board at any time and at any place or places where the Authority is qualified to do business.
DIRECTORS & OFFICERS Appointment of Board of Directors The governing board or other duly designated official of each member entity of the Authority shall appoint a representative to the Board of Directors. Such representative shall be an employee or officer of the member entity, or in the case of a joint powers authority, may be an employee or officer of a member entity of such joint powers authority. The appointment shall be in writing, directed to the Authority at its designated principal executive office, and shall remain in effect until the receipt of a notice designating a replacement. Each member entity shall also designate an alternate director, in the manner described above, to act in the absence of its duly appointed representative except the alternate director shall not exercise the powers of an officer of the Authority or serve on the Executive Committee. Election and Removal of Officers The officers of the Authority shall be the President, Vice President, Treasurer and General Manager/Secretary. The President and Vice President shall be elected, as individuals, from among the members of the Board of Directors, not as the member entities they represent, in even numbered years and serve for a term of two years. The duties of the officers shall be assumed upon their election or appointment. The Treasurer will be appointed, by a majority of the entire Board, and shall serve at the pleasure of the Board. The term of Treasurer shall be two years, with appointments being made in the even number years, subject to the pleasure of the Board. The Treasurer may vote on matters before the Board, Executive or other appointed committees only if he/she is also a director serving in the appropriate capacity. The General Manager shall be the Secretary and Chief Administrative Officer of the Authority appointed by a majority of the entire Board and shall serve at the pleasure of the Board. Although the General Manager/Secretary is an officer of the Authority, he/she may not vote on matters before the Board, Executive or other appointed committees. The General Manager/Secretary may not be an employee or an officer of a member entity. Nomination of candidates for the offices of President and Vice-President shall be made in writing to the Authority no later than May 1 of each even numbered year. The General Manager/Secretary shall verify with the nominees that they are willing to run. The slate of nominees will be provided to each member entity at least thirty (30) days before the August June Board of Directors meeting. Voting for officers will be conducted at the August June Board meeting. A candidate may be nominated for more than one office. A candidate may withdraw at any time prior to the election by notifying the General Manager/Secretary either
orally or in writing. Election for President will be held first, then election for Vice President, then election for membership on the Executive Committee. Each director present shall cast one vote for each office. The candidate receiving the greatest plurality of votes for the particular office will be elected and will assume the office upon his/her election. In the event of a tie vote, those not involved in the tie vote will be eliminated and the remaining candidates will be the subject of a run off election as described above. If unsuccessful after the run off, the election for that office shall start again with all the candidates eligible. The President and Vice-President will serve for their elected term of office, until termination of employment or office with a member entity, or until removal from office by the affirmative vote of three-fourths of the members of the entire Board of Directors at any regular or special meeting of the Board of Directors. Vacancies in the offices of President or Vice-President will be filled by election of a replacement, at the next regular or special meeting of the Board, by a majority vote of the Board, to serve the remainder of the unexpired term.
The President and Vice-President shall serve on the Executive Committee during their incumbency in those offices. The remaining five members shall be elected from among the directors to serve a term of two years under the procedures set forth below. A member entity cannot hold more than one (1) position on the Executive Committee. A non-officer director must have served on the Board for at least twelve (12) months preceding the date of the election for the office. Powers The powers of the Executive Committee shall be those powers delegated to it by the Board of Directors which may include but are not limited to:
a. personnel matters concerning salary, benefits and working conditions of staff;
b. approval of warrants; c. approval of Requests for Certificates of Coverage for Additional Covered
Parties; d. covered loss settlement authority in an amount as determined by the
Board;
e. approval of contracts for routine services (claims audit, financial audit, actuarial study, etc.);
f. other authority as delegated by the Board.
The Board of Directors may revoke any of the powers delegated to the Executive Committee by a majority vote of the entire Board.
Election and Removal of Executive Committee Members Election of two non-officer members of the Executive Committee shall occur at the August June Board of Directors meeting in each odd numbered year by election from an eligibility list prepared by staff. The eligibility list shall consist of all Directors meeting the eligibility requirements set forth in this Article. Appointment of three directors shall be conducted in even numbered years, one from each
of three lists, after the election of officers. Staff shall prepare, starting with the June 2009 election, three lists of directors, randomly generated. One list shall consist of Directors from Member Entities that are themselves joint powers authorities; one list shall consist of Directors from Member Entities that are cities with a population of 100,000 or more; and one list shall consist of Directors from Member Entities that are cities with a population of less than 100,000. The eligibility list used in June, 2009 will carry over from the rotation order previously generated. The directors at the top of each applicable list shall be considered elected to open positions on the Executive Committee for a single term of two years each. If a director reaches the top of the list but is ineligible by reason of not having served on the Board for at least twelve (12) months, that Director will be passed but remain at the top of the list for the next election. If a Director reaches the top of the list but wishes to decline election to the Executive Committee, the Director may do so on a one-time basis only, but shall remain at the top of the list for the next following election. The President and Vice President shall be limited to two consecutive two-year terms, and will not be eligible to run for the same office after completing two terms, until being out of office for at least one term. Upon completion of a term as President, Vice President or as a member of the Executive Committee, a Director will move to the bottom of the eligibility list for election to the Executive Committee. The immediate past President will serve one (1) two -year term on the Executive Committee. This will be a non-voting member of the committee. Non-officer vacancies on the Executive Committee for rotation list positions will be filled by appointment of a replacement from the top of the applicable eligibility list, to fill the remainder of the unexpired term and the following two-year term. Non-officer vacancies on the Executive Committee for odd year election positions shall be filled by Board vote at the next meeting following the vacancy, to fill the remainder of the unexpired term. New Member Entities shall be added at the bottom of the applicable eligibility list at the time of admission to membership in the Authority. Non-officer members of the Executive Committee may be removed by the affirmative vote of three-fourths of the members of the entire Board of Directors at any regular or special meeting of the Board of Directors. Any member of the Executive Committee who has failed to attend at least 50% of the regular meetings of the Executive Committee within any 12 consecutive month period shall be automatically removed from the Executive Committee and from office if he/she is the President or Vice President.
MEETINGS Board of Directors Meetings There shall be at least four regular meetings of the Board of Directors each year, one of which shall be designated as the Annual Membership Meeting. At the final Board meeting of each calendar year, the Board shall fix the date, hour and location at which each regular meeting in the succeeding year is to be held. The General Manager/Secretary may request special meetings of the entire Board as needs dictate. Special meetings may also be called by the President or one-third of the Board. Notice of such special meetings shall be delivered personally, by electronic facsimile transmission or by mail, as provided by state law, to each Board member at least twenty-four (24) hours before the time of such meetings. A regular or special meeting of the Board may be cancelled or postponed by the General Manager/Secretary or President by notice delivered personally, by electronic facsimile transmission or by mail, as provided by state law, to each Board member at least twenty--four (24) hours before the time of such meeting. The Annual Membership Meeting may be postponed but not cancelled. Executive Committee Meetings The Executive Committee shall hold at least six four regular meetings each year, some of which may coincide with meetings of the Board of Directors. The President, at the final Executive Committee meeting in each calendar year, shall fix the date, hour and location at which the regular meetings in the succeeding year are to be held and notify all directors of such dates, times and locations. The President or General Manager/Secretary may request special meetings as needs dictate. Notice of such special meetings shall be delivered personally, by electronic facsimile transmission or by mail, as provided by state law, to each Board member at least twenty-four (24) hours before the time of such meetings. A regular or special meeting of the Executive Committee may be cancelled or postponed by the President or General Manager/Secretary by notice delivered personally, by electronic facsimile transmission or by mail, as provided by state law, to each Board member at least twenty-four (24) hours before the time of such meeting. General Meetings No business may be transacted by the Board, Executive Committee, or other appointed committees without a quorum of their respective members being present. A quorum of the Board shall consist of a majority of its number; a quorum of the Executive Committee shall
number five members. Quorums of other committees established by the Board shall be a majority of their members. A majority of the members present must vote in favor of a motion to approve it, except as otherwise provided in the JPA Agreement/Bylaws and except for the following:
1. Four votes are required to pass any Executive Committee motion except for votes to assume control of claims as outlined under Article IX.
2. A majority vote of the entire Board is required to amend the Bylaws provided
that any amendment is compatible with the purposes of the Authority, is not in conflict with the JPA Agreement and has been submitted to the Board at least thirty (30) days in advance.
3. A two-thirds vote of the entire Board is required to levy a cash assessment
for any pooled coverage program.
4. A three-fourths vote of the entire Board is required to remove an officer/non-officer of the Authority or a non-officer of the Executive Committee.
5. A three-fourths vote of the entire Board is required to expel any member
entity from the Authority.
The Board and the Executive Committee shall conduct their business in accordance with Roberts Rules of Order. An agenda of each Board or Executive Committee meeting shall be published and posted in the business office of the Authority in accordance with applicable state law. Official minutes of the Board and Executive Committee meetings shall be kept by the Authority in a minute book at its principal executive office and shall be distributed to the member entities as soon after the meetings as practicable.
Formatted: Indent: Left: 0.5", Hanging: 0.5", Tab stops:Not at 0.75"
DUTIES OF DIRECTORS AND OFFICERS The Board of Directors shall be responsible for governing the Authority either directly or by delegation to other bodies or persons unless prohibited by law or by the JPA Agreement, and shall exercise all those powers not specifically reserved to the member entities in the JPA Agreement. Each director shall have the authority to bind their member entity on all matters pertaining to the JPA Agreement, as provided in the JPA Agreement. Each director of a member entity shall be entitled to cast one vote in all matters requiring a vote, except in the case of an actual or potential conflict of interest. Each Member Entity shall be required to be represented, by a properly appointed Director/Alternate, at a minimum of 50% of all Board meetings held during the course of a program year. Failure to meet this minimum standard of attendance shall result in a 5% surcharge being added to the Member’s contribution calculation for the program year immediately following. The duties of the President shall be to preside at all meetings of the Board and the Executive Committee and to perform such other duties as the Board may specify. The duties of the Vice-President shall be to act as the President, in the absence of the President, and to perform such other duties as the Board may specify. The duties of the Treasurer shall be those specified in sections 6505.5 or 6505.6 of the California Government Code, to receive and safekeep all money coming into the treasury, to comply with all laws governing the deposit and investment of funds, and to approve the monthly financial report to the Board summarizing receipts, disbursements, and fund balances, along with a listing of all investments and other duties as specified by the Board. The duties of the General Manager/Secretary shall be to administer the operations of the Authority, to cause minutes to be kept as specified in the JPA Agreement, to maintain or cause to be maintained all accounting and other financial records of the Authority, to file all financial reports of the Authority and to perform such other duties as the Board may specify.
BUDGET An annual budget shall be presented by the General Manager/Secretary to the Board no later than thirty (30) days prior to the beginning of each fiscal year and shall be adopted no later than July 31 of each year. At the discretion of the Board, a multi-year budget may be adopted, thereby eliminating the requirements of annual presentation and adoption during the term of such multi-year budget. The budget shall separately show the following:
a. a general and administrative section; b. a revenue section; and, c. sections for each pooled coverage program specifying:
1) the actuarially estimated claims and allocated claims adjustment
costs; 2) an equitable allocation of the general and administrative costs; 3) an equitable allocation of the revenue.
RECEIPT AND DISBURSEMENT OF FUNDS Revenues of the Authority shall be received at its principal executive office. The Treasurer, General Manager/Secretary or other designee of the Board shall safeguard and invest funds in accordance with the Authority's current Investment Policy. The President, Vice-President, Treasurer and General Manager/Secretary shall be authorized signatories of the Authority's checking account. All checks disbursing funds of the Authority shall be signed by the appropriate number of officers as established by action of the Board. A register of all checks, issued since the last Board or Executive Committee meeting, shall be provided at each subsequent Board or Executive Committee meeting for approval. The General Manager/Secretary shall be authorized to make all expenditures for goods or services without specific approval, to the extent such funds have been included and approved by adoption of the budget, or as subsequently approved by the Board. Authority to expend funds for goods or services, approved by the Board or provided for in the budget, may be granted by the Executive Committee. The Executive Committee shall be authorized to permit budget modifications in amounts up to $25,000 for expenditures in excess of previously budgeted or approved amounts.
SETTLEMENT OF CLAIMS AllAll claims claims settlement recommendations shall be presented by the General Manager/Secretary, or his designee, to, and be approved by, the Board prior to final settlement, except that the Executive Committee shall have the authority to approve settlements in an amount not to exceed $750,000 of the Authority's funds. The General Manager shall have the authority to settle any claim up to $250,000. In accordance with the Memorandum of Coverage, the Authority may assume control of and defend or settle any claim determined to have a reasonable possibility of resulting in an ultimate net loss in excess of the member entity's retained limit. The procedure for assuming control of a claim shall be as follows:
1. The General Manager/Secretary may submit the issue of assuming control of
a claim directly to the Board of Directors, for decision, by presenting a written recommendation to that effect.
2. The General Manager and the covered party will have the right to submit
written materials and present oral arguments to the Board, subject to reasonable time constraints.
3. The Board may determine to assume control of a claim by a majority vote of
the entire Board.
4. The affected Board member (i.e. whose member entity is the defendant in the claim) shall be disqualified from the final discussion and vote on this issue.
The Authority shall provide a pooled coverage program for Automobile/General Liability. The Authority may also provide pooled coverage programs such as workers’ compensation, property, and other risks as determined by the Board of Directors. All member entities must participate in the Automobile/General Liability program in order to maintain their membership in the Authority. The terms and conditions of each pooled coverage program, including participation commitment (if any), choices of retained limits, cash contributions, formulas and other relevant details shall be determined by the Board. Any pooled coverage program in effect on the effective date of these Bylaws shall be continued in the absence of specific action by the Board of Directors to the contrary. Automobile/General Liability Program The Automobile/General Liability Program of the Authority shall provide coverage in accordance with the terms of the current Memorandum of Coverage and with limits and retained limit options as determined by the Board of Directors. Coverage may be provided by a pooled coverage program and/or purchased coverage programs as determined by the Board of Directors and as described in the Automobile/General Liability Program Master Plan Document, attached hereto and incorporated herein by reference. Automobile/General Liability Cash Contributions The Automobile/General Liability Program shall be funded by the annual cash contributions of the participating member entities at a level which is actuarially determined to be sufficient to cover the predicted losses, loss adjustment expenses, defense costs, excess insurance premiums (if any), and a pro rata share of the general and administrative expenses of the Authority. Cash contributions shall be calculated by taking into consideration the following factors:
1. The workers’ compensation payroll of each member entity, as determined by each member entity's DE-93DP reports for the four quarters ending March 31 prior to the commencement of the next program year.
2. There will be a minimum reported payroll, amounting to a percentage of the
total workers’ compensation payroll for all member entities participating in the program, as specified in the Master Plan Document.
3. A 5% surcharge shall be added to the contribution calculation of any member
that failed to have a properly designated representative (Director/Alternate) attend at least 50% of the Board meetings held during the immediately preceding program year.
Funds on deposit for each pooled layer of each program year shall be accounted for separately. Borrowing between program years, collectively, to cover losses, will be permitted, provided that the California Joint Powers Risk Management Authority liability program, as a whole, is determined to be actuarially sound and the total outstanding borrowing does not exceed five million dollars ($5,000,000.00). The amount borrowed will be repaid either as a charge against future deposit premium refunds, as they become available, or by a supplemental assessment levied by the Board of Directors, if such supplemental assessment is determined to be necessary by the Board. Interest will be charged on the borrowed funds based on the average monthly interest rate earned by the Authority, as determined by the Treasurer. Cash contributions made to the Authority, and any investment income attributed to such funds, shall be held in trust by the Authority for the benefit of the member entities. After payment of all claims, claims expense and other expenses which are the obligation of a program year, any remaining assets shall be redistributed to the participating member entities in accordance with their pro rata share of contributions. For Program Years 2008-2009 and following, the Authority will establish an Excess Loss Fund that will be used to provide funds in the event losses, loss adjustment expenses, and defense costs expended for any program year exceed the amount of cash contributions (and any interest earnings thereon) for loss funding for that program year. Payments from the Excess Loss Fund will not be charged back to the program year nor will the payments result in any assessment against program year members, but will instead act as a form of “stop loss” for the loss fund for that program year.
The Excess Loss Fund shall be accounted for as a single fund applying to all program years for 2008-2009 and following. Members retain an equity interest in funds contributed to the Excess Loss Fund and will be credited with any interest income realized by the Excess Loss Fund in proportion to their pro rata share of total contributions to the fund at the time the investment income is earned. Should any Member Entity withdraw from the Authority, the Board will establish a plan for an orderly return of the withdrawing member’s equity over a period of time, so that the Excess Loss Fund remains actuarially sound. The withdrawing member’s equity interest in the Excess Loss Fund shall be calculated on the basis of its pro rata share of equity balance at the time of withdrawal, but this figure shall be subject to subsequent adjustment because of any payments for losses and expenses by
the Excess Loss Fund on account of occurrences taking place while the Member Entity participated, and the withdrawn member shall continue to be entitled to its pro rata share of interest earned on any balance it has remaining in the Excess Loss Fund. The Board shall be entitled to maintain reasonable reserves in the Excess Loss Fund, but after all program years during which the withdrawn member participated are closed out, the withdrawn member will be entitled to a return of any remaining equity it has in the Excess Loss Fund. A withdrawn member will be required to pay an assessment in the event its equity balance in the Excess Loss Fund becomes negative on account of losses paid from the Excess Loss Fund for occurrences taking place during the program years in which the withdrawn member participated. The cash contributions of each member entity may be modified by the application of credits or charges as determined by the Board of Directors and in accordance with applicable policies and procedures adopted by the Board. Cash contribution invoices are payable upon receipt and become in arrears thirty (30) days after the commencement of the program year. Interest and/or penalties for all such invoices in arrears shall be calculated in accordance with policies and procedures adopted by the Board. Workers' Compensation Program The Workers’ Compensation Program shall consist of the following:
a. The Authority may purchase a policy of commercial excess insurance providing coverage with limits to be determined by the Board of Directors.
b. The Authority may establish and maintain a pooled coverage program for
claims below the commercial excess insurance, at the discretion of the Board of Directors, in an amount determined by the Board.
c. Member entities desiring to become participants in this pooled coverage
program, after July 1, 1990, may do so with the concurrence of at least two-thirds of the entities participating therein.
d. Member entities may be expelled from this pooled coverage program by a
vote of three-fourths of the remaining participants.
e. If the Workers’ Compensation Program is in effect, terms and conditions shall be as described in the Workers' Compensation Program Master Plan Document, attached hereto and incorporated herein by reference.
Workers' Compensation Cash Contributions The cash contributions shall be sufficient to pay the commercial excess workers
compensation insurance premium, to fund the Authority's pooled coverage program (if any) and to pay a portion of the Authority's general and administrative expenses in an amount to be determined by the Board of Directors. The cash contributions shall be based upon each member entity's DE-93DP payroll for the four quarters ending March 31 prior to the commencement of the next program year. Cash contribution invoices are payable upon receipt and become in arrears thirty (30) days after the commencement of the program year. Interest and/or penalties for all such invoices in arrears shall be calculated in accordance with policies and procedures adopted by the Board. Property Program The Property Program shall consist of the following:
a. The Authority may purchase a policy of excess insurance with limits to be determined by the Board of Directors. The coverage of such policy shall be as stated in the excess policy and as negotiated with the excess carrier(s).
b. The Authority may establish a pooled coverage program for claims below the
commercial excess insurance, at the discretion of the Board of Directors, in an amount determined by the Board.
c. Member entities desiring to become participants in this pooled coverage
program, after July 1, 1990, may do so with the concurrence of at least two-thirds of the entities participating therein.
d. Member entities may be expelled from this pooled coverage program by a
vote of three-fourths of the remaining participants.
e. The terms and conditions of the Property Program shall be as described in the Property Program Master Plan Document attached hereto and incorporated herein by reference.
Property Program Cash Contributions The cash contributions shall be sufficient to pay the commercial excess property insurance premium, to fund the Authority's pooled coverage program (if any), and to pay a portion of the Authority's general and administrative expenses in an amount to be determined by the Board of Directors. The cash contribution shall be based upon each member entity's stated property values and may be adjusted by the Board to take into account special or unusual risks. Cash contribution invoices are payable upon receipt and become in arrears thirty (30) days
after the commencement of the program year. Interest and/or penalties for all such invoices in arrears shall be calculated in accordance with policies and procedures adopted by the Board.
ARTICLE XI
MEMORANDUM OF COVERAGE FOR THE AUTOMOBILE/GENERAL LIABILITY POOLED COVERAGE PROGRAM
The following provisions shall apply with regard to the Memorandum of Coverage for the Automobile/General Liability pooled coverage program:
a. No action shall lie against the Authority with respect to the coverages and related provisions defined in the Memorandum of Coverage (Memorandum) for the Automobile/General Liability pooled coverage program unless, as a condition precedent thereto, there shall have been full compliance with all of the terms of the Memorandum, nor until the amount of the covered party’s obligation to pay shall have been finally determined either by judgment against the covered party, after actual trial, or by written agreement of the covered party, the claimant and the Authority. Any person or organization, or the representative thereof, who has secured such judgment or written agreement, shall thereafter be entitled to recover under said Memorandum to the extent of the coverage afforded therein. No person or entity shall have any right under said Memorandum to join the Authority as a party to any action against the covered party to determine the covered party’s liability, nor shall the Authority be impleaded by the covered party or its legal representative. Bankruptcy or insolvency of the covered party or of the covered party’s estate shall not relieve the Authority of any of its obligations under said Memorandum.
b. The Authority shall be subrogated, to the extent of any payment hereunder,
to all the covered party’s rights of recovery, and the covered party shall do nothing after loss to prejudice such rights and shall do everything necessary to secure such rights. Any amount so recovered shall be apportioned as follows:
1. 1. The Authority shall be reimbursed first to the extent of its actual
payments. If any balance remains unpaid, it shall be applied to reimburse the covered party.
2. The expenses of all such recovery proceedings shall be apportioned in
the ratio of the respective recoveries. If there is no recovery in proceedings conducted by the Authority, it shall bear the expenses thereof.
3. The Authority shall not be liable to any Covered Party for reimbursement
of ultimate net loss covered under the Memorandum of Coverage unless the Covered Party has timely reported the claim and submitted, no later than two years after final judgment or settlement of the claim, a request for reimbursement, itemizing the amount sought and providing any necessary supporting details. This paragraph shall operate as a limitations period on any claims for reimbursement of covered ultimate net loss, and operates in addition to the requirements set forth above of full compliance with all other terms of the Memorandum of Coverage.
ASSESSMENTS Upon a two-thirds vote of the entire Board, the Board shall have the authority to levy a cash assessment for any pooled coverage program. There must be a finding by the Board that there are insufficient funds available to the Authority to meet its legal obligations. A cash assessment shall be directed only to those member entities or former member entities which participated in the pooled coverage program during the program year in which the covered loss, causing the assessment, was incurred. Any costs, including attorney fees incurred by the Authority in collecting any cash assessment, shall be reimbursed in full by the member entity against which such collection action has been taken.
NEW MEMBERS The Board has established the following criteria for considering new members:
1. Pool Membership
Applicants accepted for membership after April 28, 1992, must participate in at least Pool Layers C and D of the Automobile/General Liability pooled coverage program.
2. Coverage
JPAs accepted for membership after April 28, 1992, may not add new members for CJPRMA coverage purposes, for a period of three years following their admission to the new JPA member, without the specific approval of two-thirds of the CJPRMA Board of Directors.
3. Application Process
Any applicant desiring to be considered for membership by CJPRMA must adhere to the following procedure:
a. Complete a CJPRMA application form which may include, but not be
limited to, the following information:
1) underwriting data for the current year; 2) payrolls for the prior five years; 3) loss history for the prior five years, 4) a copy of the most recent claims audit and actuarial reports; 5) a copy of the most recent audited Financial Statements; 6) an indication as to the pooled coverage programs in which the
prospective member wishes to participate and the anticipated retained limit for such programs; and
7) descriptions of its risk management programs.
b. Provide an actuarial study in a framework that is acceptable to
c. Provide a current accreditation or independent consultant’s report
from an organization that is acceptable to CJPRMA.
d. Submit to a staff analysis of their qualifications for membership and provide whatever documentation is required.
e. Comply with any other requests or considerations made by the Board
of Directors.
Additionally, applicants may, at their option, request a non-binding vote regarding their membership application. Subsequent to that vote, it shall be the applicant’s decision as to whether or not they wish to continue with the application process.
Upon review of a prospective member entity's application, and after necessary site visits by staff, a report, containing a staff recommendation, will be presented to the Board of Directors. The prospective member entity will be invited to attend a meeting of the Board of Directors to respond to questions concerning the application. The affirmative vote of two-thirds of the members of the entire Board is necessary for admission to the Authority.
TERMINATION AND DISTRIBUTION Upon termination of the Authority, in accordance with Article XXIV of the JPA Agreement, the Authority shall take all necessary actions to properly dispose of all claims and other liabilities of the Authority. When all obligations have been satisfied, all remaining assets of the Authority shall be distributed as follows: Cash Contributions: All remaining cash contributions shall be distributed among only the parties which have been participants in its pooled coverage program, including any of those parties which previously withdrew, or were expelled, pursuant to Articles XXI and XXII of the JPA Agreement and in accordance with the terms and conditions of the Bylaws. Each qualifying participant's share shall be determined on the same basis as the redistributions for each Automobile/General Liability program year. Real and Personal Property (other than cash contributions): All real and personal property shall be liquidated. Each member entity of the Authority, at the time of the Authority's termination, and each expelled or withdrawn member entity, which participated in the Automobile/General Liability program within the five years immediately preceding the termination, shall qualify to receive a portion of the Authority's liquidated assets. The cash from the liquidated assets will be distributed in the same manner as the cash contributions. The Board shall determine and make such distribution within six months after the last pending claim or covered loss, subject to the JPA Agreement, has been finally resolved.
AMENDMENTS These Bylaws may be amended by a majority vote of the entire Board provided that any amendment is compatible with the purposes of the Authority, is not in conflict with the JPA Agreement, and has been submitted to the Board at least thirty (30) days in advance. Any such amendment shall be effective immediately, unless otherwise designated.
The principal address of the California Joint Powers Risk Management Authority for the transaction of business and receipt of all notices shall be: 3201 Doolan Road, Suite 285 Livermore, CA 94551
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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 14 TITLE: CLAIMS EXPERIENCE REPORT
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions: None. This item is being provided for information purposes only.
Strategic Direction: This item addresses Strategic Goal 1, Core Products and Services Innovation and Strategic Goal 2, Member Education and Training Initiative. Item Explanation: Claims Administrator, Marinda Griese, will present an “overview of claims” to the Board of Directors. This report will be a review of all claims that have been reported to CJPRMA beginning with program year 2005-2006 through 2017-2018. The date range is consistent with the current methodology being utilized by our actuary for developing our program year contributions. The report is intended to be a high level overview of all claims. It will include description of claims frequency, severity and development history. The report also assists staff in the development of risk management training programs and a basis for establishing baseline criteria to be included in risk management audit standards.
Ms. Griese will be present to discuss the report with the Board of Directors.
Fiscal Impact: None Exhibits:
1. A copy of the report will be provided at the meeting
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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 15 TITLE: NEW BOARD DIRECTORS/ ALTERNATES
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
None. This item is being provided for information purposes only.
Strategic Direction:
This item addresses Strategic Goal 3, Foster Informed and Engaged Board Leadership.
Item Explanation:
Notifications regarding a change in director/alternate designations that have been received as of the last meeting are indicated herein:
1) YCPARMIA Director Armond Sarkis – CEO/Risk Manager
2) San Rafael Director Shibani Nag – Director of Employee Experience and Culture
3) San Rafael Alternate Sylvia Gonzalez-Shelton – Human Resources Coordinator
Fiscal Impact:
None Exhibits:
1. Letter – YCPARMIA Director 4-10-19 2. Letter – San Rafael Director and Alternate 5-3-19
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CALIFORNIA JOINT POWERS
RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 16 TITLE: BUSINESS CALENDAR FOR 2019 AND 2020
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions: None: This item is being provided for information only.
Strategic Direction: Strategic Goal 3, Foster Informed and Engaged Board Leadership. Item Explanation: The CJPRMA Business Calendar will be provided as a standing agenda item for Executive Committee meetings and Board of Director Meetings. This calendar provides Board Members and staff with a listing of key business items and the required dates for completion.
Fiscal Impact:
None Exhibits:
1. CJPRMA 2019 Business Calendar 2. CJPRMA 2020 Proposed Business Calendar
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WPData> Listings> Calendars> 2019 Revised 05/2019
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
2019 BUSINESS CALENDAR January
• Distribution of Executive Committee Agenda – 01/10/2019 • Executive Committee Meeting – 01/17/2019 • Member Quarterly Payroll Reports – 01/31/2019 • Distribution of Summary of Property Values • Distribution of Summary of APD Values • Distribution of Property and Loss Data – 01/31/2019
February
• FPPC Form 700 Filing Requests Sent Out • PARMA Conference - 02/10/2019 to 02/13/2019 Disneyland Hotel, Anaheim, CA • Return APD, Property and Boiler & Machinery Renewals Lists to Staff
March
• Deadline for Members to submit Agenda items for March Meeting – 03/11/2019 • Distribution of Board of Directors Meeting Agenda – 03/14/2019 • Board of Directors Meeting – 03/21/2019 • Distribution of Quarterly Member Loss Data • Bi-annual Review of Conflict of Interest Code • Training ARM 55 – 03/26 to 28/2019 CJPRMA
April
• FPPC Form 700 Filing Deadline – 04/01/2019 • Annual Meeting Room Requests • Distribution of Executive Committee Meeting Agenda – 04/11/2019 • Executive Committee Meeting – 04/18/2019 Redding • Distribution of Certificate of Coverage Renewals Lists • Requests for Nominations for President/Vice President (Bi-annually) • Distribute nomination for President and Vice President (even numbered years) • Member Quarterly Payroll Reports – 04/26/2019
May
• Deadline for Members to submit Agenda items for Annual Meeting – 05/09/2019 • Distribution of Board of Directors Annual Meeting Agenda – 05/15/2019 • Board of Directors Annual Meeting - 05/22 & 23/2019 CJPRMA
o Commercial Insurance Renewals o Proposed Budget for 2019-2020 o Claims Audit Presentation o Approval of Meeting, Business and Holiday Calendars
• Return Certificate of Coverage Renewals Lists to Staff
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WPData> Listings> Calendars> 2019 Revised 05/2019
June • Distribution of Executive Committee Meeting Agenda – 06/13/2019 • Executive Committee Meeting – 06/20/2019 • Requests for Nominations for President/Vice President (Bi-annually) • Certificates of Coverage Renewals mailed to certificate holders - 6/28/2019 • Risk Management Plan Revisions • Distribution of Quarterly Member Loss Data • Training – EPL, “12 Steps to Avoiding Liability & Nuts & Bolts Navigating Common Legal Risks for the Front End
Supervisor” by Liebert Cassidy Whitmore - 06/06/2019 Rocklin, CA & 06/13/2019 CJPRMA July
• General Liability Premiums Billed • Auto Physical Damage Program Premiums Billed • Property Program Premiums Billed • CJPRMA University (Board Member Orientation) - TBD • Member Quarterly Payroll Reports - 07/31/2019
August
• Deadline for Members to submit Agenda items for August Meeting – 08/05/2019 • Distribution of Board of Directors Meeting Agenda – 08/08/2019 • Board of Directors Meeting – 08/15/2019 • Bi-annual election of President and Vice President (even numbered years) • Election of Executive Committee Members • Bi-annual Appointment of Treasurer (even numbered years) • Financial Audit in process • Annual Review of Investment Policy • Actuarial Study in process • Requests for Program Year 2018-2019 reimbursement of liability training expenses due – 08/31/2019
September
• Distribution of Executive Committee Agenda – 09/13/2019 • Executive Committee Meeting – 09/19/2019 CJPRMA • CAJPA Conference - 09/10/2019 to 09/13/2019 Harrah’s and Harvey’s South Lake Tahoe, CA • Distribution of Quarterly Member Loss Data
• Deadline for Members to submit Agenda items for November Meeting – 11/11/2019 • Distribution of Board of Directors Meeting Agenda – 11/14/2019 • Board of Directors Meeting - 11/21/2019
o Actuarial Study Presented o Financial Audit Presented o Annual Report Presented
December
• Deadline for change to SIR or withdrawal from any CJPRMA program - 12/27/2019 • Distribution of Quarterly Member Loss Data
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WPData> Listings> Calendars> 2020 Revised 05/2019
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
Proposed - 2020 BUSINESS CALENDAR January
• Distribution of Executive Committee Agenda – 01/09/2020 • Executive Committee Meeting – 01/16/2020 • Member Quarterly Payroll Reports – 01/31/2020 • Distribution of Summary of Property Values • Distribution of Summary of APD Values • Distribution of Property and Loss Data – 01/31/2020
February
• FPPC Form 700 Filing Requests Sent Out • PARMA Conference - 02/25/2020 to 02/28/2020 Monterey Conference Center, Monterey, CA • Return APD, Property and Boiler & Machinery Renewals Lists to Staff
March
• Deadline for Members to submit Agenda items for March Meeting – 03/9/2020 • Distribution of Board of Directors Meeting Agenda – 03/13/2020 • Board of Directors Meeting – 03/19/2020 • Distribution of Quarterly Member Loss Data • Bi-annual Review of Conflict of Interest Code • Training – TBD
April
• FPPC Form 700 Filing Deadline – 04/01/2020 • Annual Meeting Room Requests • Distribution of Executive Committee Meeting Agenda – 04/10/2020 • Executive Committee Meeting – 04/16/2020 • Distribution of Certificate of Coverage Renewals Lists • Requests for Nominations for President/Vice President (Bi-annually) • Distribute nomination for President and Vice President (even numbered years) • Member Quarterly Payroll Reports – 04/30/2020
May
• Deadline for Members to submit Agenda items for Annual Meeting – 05/11/2020 • Distribution of Board of Directors Annual Meeting Agenda – 05/14/2020 • Board of Directors Annual Meeting - 05/22 & 23/2019 CJPRMA
o Commercial Insurance Renewals o Proposed Budget for 2021-2022 o Claims Audit Presentation o Approval of Meeting, Business and Holiday Calendars
• Return Certificate of Coverage Renewals Lists to Staff
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WPData> Listings> Calendars> 2020 Revised 05/2019
June • Distribution of Executive Committee Meeting Agenda – 06/11/2020 • Executive Committee Meeting – 06/18/2020 • Requests for Nominations for President/Vice President (Bi-annually) • Certificates of Coverage Renewals mailed to certificate holders - 6/30/2020 • Risk Management Plan Revisions • Distribution of Quarterly Member Loss Data • Training - TBD
July
• General Liability Premiums Billed • Auto Physical Damage Program Premiums Billed • Property Program Premiums Billed • CJPRMA University - TBA • Member Quarterly Payroll Reports - 07/31/2020
August
• Deadline for Members to submit Agenda items for August Meeting – 08/10/2020 • Distribution of Board of Directors Meeting Agenda – 08/14/2020 • Board of Directors Meeting – 08/20/2020 • Bi-annual election of President and Vice President (even numbered years) • Election of Executive Committee Members • Bi-annual Appointment of Treasurer (even numbered years) • Financial Audit in process • Annual Review of Investment Policy • Actuarial Study in process • Requests for Program Year 2019-2020 reimbursement of liability training expenses due – 08/31/2020
September
• Distribution of Executive Committee Agenda – 09/11/2020 • Executive Committee Meeting – 09/17/2020 CJPRMA • CAJPA Conference - TBA • Distribution of Quarterly Member Loss Data
October
• Member Quarterly Payroll Reports – 10/30/2020 November
• Deadline for Members to submit Agenda items for November Meeting – 11/06/2019 • Distribution of Board of Directors Meeting Agenda – 11/12/2020 • Board of Directors Meeting - 11/19/2020
o Actuarial Study Presented o Financial Audit Presented o Annual Report Presented
December
• Deadline for change to SIR or withdrawal from any CJPRMA program - 12/28/2020 • Distribution of Quarterly Member Loss Data
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Back to Agenda
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 17 TITLE: APPROVAL OF MEETING SCHEDULE FOR 2020
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions: Approval of the proposed meeting schedule for the 2020 calendar year. Strategic Direction: This item addresses Strategic Goal 3, Foster Informed and Engaged Board Leadership. Item Explanation: Attached is an exhibit of the proposed meeting schedule for 2020. Staff recommends approval of the proposed meeting schedule for 2020.
Fiscal Impact:
None Exhibits:
1. Proposed meeting schedule for 2020
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G: WPData> Listings> Calendars> 2020
BOD Approved 05/xx/2019
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
Proposed - 2020 MEETING SCHEDULE
Executive Committee ................................................................ Thursday, January 16, 2020
Board of Directors ....................................................................... Thursday, March 19, 2020
Executive Committee ..................................................................... Thursday, April 16, 2020
Board of Directors ............................................................... Wednesday, Thursday & Friday (Annual Membership Meeting) May 20, 21 & 22, 2020
Executive Committee ..................................................................... Thursday, June 18, 2020
Board of Directors ...................................................................... Thursday, August 20, 2020
Executive Committee ........................................................... Thursday, September 17, 2020
Board of Directors ................................................................. Thursday, November 19, 2020
No meetings are scheduled for February, July, October, and December.
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Back to Agenda
CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY
AGENDA BILL
ITEM: 18 TITLE: APPROVAL OF HOLIDAY SCHEDULE FOR 2020
MEETING: 05/22 & 23/2019
GENERAL MANAGER:
Recommended Actions:
Approval of the holiday schedule for the 2020 calendar year.
Strategic Direction:
This item addresses Strategic Goal 3, Foster Informed and Engaged Board Leadership.
Item Explanation:
Attached is an exhibit of the holiday schedule for 2020. Staff recommends approval of the 2020 holiday schedule.
Fiscal Impact:
None Exhibits:
1. Proposed Holiday schedule for 2020
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G: WPData> Listings> Calendars> 2020
BOD Approved 05/XX/2019
CALIFORNIA JOINT POWERS RISK
MANAGEMENT AUTHORITY
Proposed - 2020 HOLIDAY SCHEDULE
New Year Holidays… ............................................................... Wednesday, January 1, 2020
Martin Luther King, Jr. Day ......................................................... Monday, January 20, 2020
Presidents’ Day ......................................................................... Monday, February 17, 2020
Memorial Day .................................................................................. Monday, May 25, 2020
Independence Day ............................................................... (observed) Friday, July 3, 2020
Labor Day ................................................................................ Monday, September 7, 2020
Veterans’ Day .................................................................... Wednesday, November 11, 2020
This item is reserved for the discussion of risk management issues that are of concern to the members and for the provision of status updates on the risk management program.
1) 6th Circuit and the tire chalking case – Amy Northam, REMIF 2) Smart Cover Systems – Scott Mann, Sunnyvale
Fiscal Impact
None.
Exhibits:
1. To be handed out at the meeting. 2. Smart Cover Systems
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2
1
43
5 6
Easy deployment. Units are mobile. Can re-deploy smart cover monitoring units
to other problem areas in the city.Initial Capital Outlay
6 Units x $5,000 = $30,0006 x $1 x 365 = $2,190($1.00 per day per unit Monitoring fee)
ESD is purchasing another 10 smart covers effective July 1, 2019 for Sewer & Storm Covers
10-Year TCO of 16 Smart Covers = $85,840
Technology
Unit transmits data every 10 minutes to a satellite.
Displays on desk top computer at Treatment Plant.
System is linked to real-time NOAA weather events and displays ‘blue dots’ on a map where smart covers are deployed.
Treatment Plant knows when cover is disturbed / removed.
10-Year Battery Shelf LifeSystems has low battery alarm
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Sample Monitoring Report
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Sewer Claims7/1/1999 to 3/31/2019
195 Total Sewer Claims Average of 10 Claims Per Year$ 1,747,015.08 Total Sewer Losses Average Yearly Loss $87,350.75
10 Claims Above $10,000 Total Losses $1,572,752.21Average High Value Loss $157,275.22 Per ClaimHighest 20 Year Loss $498,260.59 (Claim Still Open)
185 Claims Below $10,000 Total Losses $174,262.87Average Low Value Loss $ 941.96 Per ClaimsLowest 20 Year Loss $ 252.00
Losses Since Smart Covers Installed $ 2,409.00In November 2018
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TCO v. Losses
10-Year TCO for Purchase / Monitoring of $ 85,840of 16 Smart Covers
20-Year Sewer Losses Total $ 1,747,015(Figure does not include staff labor or materials)
Potential Liability Cost Avoidance Savings $$ SUBSTANTIAL $$(Plus fines & citations from regulators and staff labor & material to repair)
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Other Agencies Using Technology
Sunnyvale, CA Carpinteria, CANewburgh, NY El Segundo, CAEscondido, CA Hawthorne, CAOceanside, CA San Antonio, TXKlamath Falls, OR Rohnert Park, CACamp Pendleton Marine Corps Base (San Diego County)(Not a complete list. See company website.)