Public Entity Risk Management Authority (PERMA) Strategic Plan

Transcription

1 Public Entity Risk Management Authority Strategic Plan 2017

2 TABLE OF CONTENTS History... 1 Membership... 2 Coverage Programs and Participation... 6 Results of Membership Satisfaction Survey... 8 Strengths, Weaknesses, Opportunities and Threats Goals and Objectives Mission Statement... 18

3 HISTORY Starting in the mid-1970s, public entities were unable to purchase some types of insurance and/or obtain affordable coverage in the commercial market. By the mid-1980s, commercial liability insurance was virtually unavailable for public entities. As a result, state legislation was enacted to authorize public entities to self-insure and pool their assets to jointly control their risks and pay their claims. The Public Entity Risk Management Authority was created in 1985 for the purpose of jointly funding programs of insurance. PERMA is a statewide agency consisting of thirty-two (32) members. PERMA is not driven by profit - the rates are driven only by the membership s experience and exposure. PERMA has developed public entity risk retention pools for general liability and workers compensation coverage. PERMA also offers coverage options in property, auto physical damage, special events, employment practices liability, difference in conditions, crime, cyberliability, and employee benefits. PERMA is governed by a Board of Directors, which consists of one representative and one alternate from each member agency. The Board meets two times a year. The Board elects an Executive Committee consisting of a President, Vice-President and five Members-At-Large, which meets four times a year to supervise and conduct PERMA affairs. The day-to-day business of PERMA is handled by a full-time staff headed by a General Manager. Page 1 of 18

4 Municipalities 1. Adelanto 2. Banning 3. Barstow 4. Blythe 5. Canyon Lake 6. Cathedral City 7. Coachella MEMBERSHIP 8. Desert Hot Springs 9. Eastvale 10. Hesperia 11. Holtville 12. Jurupa Valley 13. La Mesa 14. Moreno Valley 15. Murrieta 16. Norco 17. Perris 18. Rancho Mirage 19. San Jacinto 20. Stanton 21. Victorville 22. Westmorland Special Districts 23. Imperial County Transportation Commission (ICTC) 24. Imperial Valley Emergency Communications Authority (IVECA) 25. March JPA 26. Mojave Desert & Mountain Integrated Waste Management Authority 27. Mount San Jacinto Winter Park Authority 28. Palo Verde Valley Transit Agency 29. Southern California Intergovernmental Training and Development Center 30. SunLine Transit Agency 31. Victor Valley Economic Development Authority (VVEDA) 32. Victor Valley Transit Authority By Population 0-10, ,000-25, ,000-50, ,000-75, , , , N/A (Special District)...10 Total...32 By Payroll $0 - $1M...11 $1M - $5M...9 $5M - $10M...3 $10M - $15M...3 $15M - $20M...2 $20M - $25M...4 Total...32 By County Imperial...4 Orange...1 Riverside...18 San Bernardino...7 San Diego...2 Total...32 Page 2 of 18

5 MEMBERSHIP Member Entity Director Alternate Adelanto Penny Rose Larry Jarvis Accounting Supervisor Sr. Management Analyst Banning Rita Chapparosa Vacant Deputy HR Director Barstow Ava Reyes Vacant Admin. Services Manager Blythe Mallory Crecelius Christa Elms Deputy Admin Services Director Payroll Manager Canyon Lake Aaron Palmer Kirsten Rowe City Manager Admin. Services Director Cathedral City Tami Scott Vacant Administrative Services Director Coachella Bill Pattison Sandy Krause Finance Director HR Manager Desert Hot Joe Tanner Pamela Meuse Springs Administrative Services Director HR Analyst Eastvale Angelica Zepeda Vacant Senior Account Clerk Hesperia Brian Johnson Rita Perez Assistant City Manager Sr. HR Analyst Holtville Denise Garcia Hector Orozco Personnel Technician Finance Supervisor ICTC Mark Baza Michelle Bastidas Executive Director Administrative Analyst Page 3 of 18

6 MEMBERSHIP Member Entity Director Alternate IVECA Rodolfo Aguayo Vacant Director of HR & RM Jurupa Valley Gary Thompson Alan Kreimeier City Manager Admin. Services Director La Mesa Rita Freeman Nedra Johnson Human Resources Manager Management Analyst March JPA Matthew Schenk Vacant Financial Manager/Controller MD&MIWMA John Davis Vacant General Manager Moreno Valley Terrie Stevens Bridgette Montgomery Admin Services Director Sr. HR Analyst MSJWPA Marjorie De La Cruz Tara Meinke (dba PS Aerial VP of HR and RM VP of Finance Tramway) Murrieta Cynthia Perez Vacant Sr. Management Analyst Norco Andy Okoro Myrna Paakkonen City Manager HR Analyst Palo Verde Valley George Colangeli Dale Reynolds Transit Agency Transit Manager Administrative Supervisor Perris Isabel Carlos Saida Amozgar Asst. Director of Admin. Services HR & Risk Supervisor Rancho Mirage Britt Wilson Vacant Management Analyst Page 4 of 18

7 MEMBERSHIP Member Entity Director Alternate San Jacinto Tim Hults Carolyn Durden City Manager HR Coordinator So. CA Inter- Mike Gray Marisa McCullough governmental Executive Director Director of Training Training & Development Center (dba Regional Training Center) Stanton Cynthia Guzman Stephen Parker Departmental Assistant Admin. Services Director SunLine Transit Eric Taylor Ramon Aguiar Agency Procurement Manager Risk Management Specialist VVEDA Keith Metzler Sophie Smith Executive Director Economic Development Division Head VVTA Kevin Kane Vacant Executive Director Victorville Charles Buquet Vacant Risk Manager Westmorland Sally Traylor Vacant City Clerk Page 5 of 18

8 COVERAGE PROGRAMS AND PARTICIPATION Coverage programs available to PERMA members: General Liability. The General Liability Program provides defense and indemnity coverage against claims and suits arising from covered occurrences. It provides $50 million in broad form general liability coverage, which includes coverage for auto liability, third party bodily injury and property damage, personal injury, and public officials errors and omissions. Members select from a self-insured retention (SIR) of $0, $10,000, $25,000, $50,000, $75,000, $100,000, $125,000, $250,000, or $500,000. Cyber Liability. The Cyber Liability program provides coverage for information security and privacy liability, privacy notification costs, regulatory defense and penalties, website media contact liability, cyber extortion, first party data protection and business interruption losses. Workers Compensation. The Workers Compensation program provides statutory benefits for employee injuries arising out of and in the course of employment. It provides statutory limits in workers compensation coverage and $5,000,000 in employers liability coverage. Members select from a self-insured retention (SIR) of $50,000, $100,000, $150,000, $200,000, or $250,000. Property/APD. The Property program is a fully insured program providing all-risk replacement cost coverage. Automobile physical damage coverage is also available on an agreed amount basis. Employment Practices Liability. The EPL program provides members coverage for employment related lawsuits, such as wrongful termination and discrimination, through participation in the Employment Risk Management Authority (ERMA). ERMA provides $1 million in employment practices liability coverage. Additional EPL coverage is provided by CSAC-EIA. Crime. This program provides public employee dishonesty, forgery or alteration, and computer fraud coverage. The limit options range from $1,000,000 to $5,000,000. Employee Benefits. The Employee Benefits program is a fully insured program providing a wide range of health and welfare benefits and services. Page 6 of 18

9 COVERAGE PROGRAMS AND PARTICIPATION Year Joined Member Entity General Liability W/C Property/ APD ERMA Crime Barstow Perris Westmorland Banning Blythe Cathedral City Coachella Desert Hot Springs Holtville Norco Rancho Mirage San Jacinto Stanton SunLine Transit Murrieta Adelanto March JPA MD&MIWMA VVEDA VVTA PV Valley Transit Victorville IVECA La Mesa PS Tramway Moreno Valley Eastvale Hesperia ICTC Canyon Lake Jurupa Valley Regional Training Center Total Page 7 of 18

10 PERMA MEMBERSHIP SATISFACTION SURVEY RESULTS /1/2017 Total number of responses 16 out of 52 (31%) 1 General and Administrative Services Staff: Very Very Not Courteous and professional Knowledgeable Responsiveness to written, e mail, and telephone requests Overall level of satisfaction Average % 98% 0% 2% 0% 0% 0% 100% Comments: 99% 1% 0% 0% 0% 0% 100% 1 Everyone is great! 2 Great staff. 3 Great staff to work with. 4 Great management and staff team. 5 Outstanding staff timely and informative responses. 6 PERMA has a wonderful team. Knowledgeable and very helpful. 2 Liability Claims Administration Staff: Very Very Not Courteous and professional Knowledgeable Responsiveness to written, e mail, and telephone requests Overall level of satisfaction Average % 88% 0% 0% 0% 0% 13% 100% Comments: 83% 7% 3% 0% 0% 6% 100% No responses for this question. Page 8 of 18

11 PERMA MEMBERSHIP SATISFACTION SURVEY RESULTS /1/2017 Total number of responses 16 out of 52 (31%) 3 Workers' Compensation Claims Administration: Very Very Not Courteous and professional Knowledgeable Responsiveness to written, e mail, and telephone requests Overall level of satisfaction Average % 34% 25% 6% 5% 0% 30% 100% Comments: 50% 19% 0% 2% 0% 29% 100% 1 Experience delays with responses to City inquiries and requests. 2 Great staff to work with. 3 I didn't always get a quick response from AdminSure but it wasn't an excessive delay. 4 Outstanding staff. 5 Responsiveness to e mail could be a bit better, even if it is a simple "Let me look into that and get back to you". TPA Firm Count Percent CorVel 2 33% AdminSure 2 33% York 1 17% N/A 1 17% 6 100% 4 Board Counsel Gibbons & Conley: Very Very Not Courteous and professional Knowledgeable Responsiveness to written, e mail, and telephone requests Overall level of satisfaction Average % 45% 13% 19% 0% 0% 23% 100% Comments: 38% 3% 19% 0% 0% 40% 100% 1 Have little or no direct contact with counsel. 2 I have not had any correspondence with Board Counsel. Page 9 of 18

12 PERMA MEMBERSHIP SATISFACTION SURVEY RESULTS /1/2017 Total number of responses 16 out of 52 (31%) 5 Broker Services Alliant Insurance Services: Very Very Not Courteous and professional Knowledgeable Responsiveness to written, e mail, and telephone requests Overall level of satisfaction Average % 67% 25% 0% 0% 0% 8% 100% Comments: 57% 0% 6% 2% 0% 34% 100% 1 Alliant is great to work with. 2 I really have had no direct interaction with Alliant that I can recall. 3 No dealings with them. 6 Loss Control Bickmore: Very Very Not Courteous and professional Knowledgeable Responsiveness to written, e mail, and telephone requests Overall level of satisfaction Average % 66% 30% 2% 0% 0% 3% 100% 63% 34% 0% 0% 0% 3% 100% Comments: 1 Response to correspondence wasn't always made quickly. It wasn't excessive for a response though. 2 Terrie Norris is a genuine expert in the field. A great resource to collaborate with and approachable! Page 10 of 18

13 PERMA MEMBERSHIP SATISFACTION SURVEY RESULTS /1/2017 Total number of responses 16 out of 52 (31%) 7 Level of satisfaction with risk management services: Very Very Not Training/Consulting (Bickmore) Reimbursement of training expenses program Agility Recovery Hotline legal services (Employment ERMA) Webinars Streaming videos TargetSafety Policy library (PERMA and Bickmore website) Conferences (PARMA/CAJPA) Police/Fire policy manuals (Lexipol) Subrogation recovery WeTip Workshops Average % 46% 21% 8% 0% 0% 25% 100% Comments: 37% 27% 9% 0% 0% 27% 100% No responses for this question. 8 Level of satisfaction with financial services: Very Very Not Liability program funding Workers' Compensation program funding Investment of surplus funds (PFM) Annual budget Invoicing Financial reports Average % 72% 19% 0% 0% 0% 9% 100% Comments: 62% 20% 3% 0% 0% 15% 100% No responses for this question. Page 11 of 18

14 PERMA MEMBERSHIP SATISFACTION SURVEY RESULTS /1/2017 Total number of responses 16 out of 52 (31%) 9 Communications with Board Members: Very Very Not Correspondence (written/ ) Agendas Staff reports Minutes Website Annual report Meeting locations Length of meetings Average % 77% 13% 8% 0% 0% 2% 100% 81% 16% 4% 0% 0% 0% 100% Comments: 1 Would prefer board meetings be at Doubletree since we are only meeting twice per year now. 10 Overall satisfaction of programs that you are participating in: Very Very Not Liability Cyber Liability Workers' Compensation Property/Vehicle ERMA Crime Coverage Special Events Average % 63% 20% 3% 0% 0% 15% 100% Comments: 59% 14% 7% 0% 0% 20% 100% No responses for this question. Page 12 of 18

15 PERMA MEMBERSHIP SATISFACTION SURVEY RESULTS /1/2017 Total number of responses 16 out of 52 (31%) 11 If you are not participating in one or all of the following programs, please indicate why: Workers' Special Compensation Property ERMA Crime Events Total Total Cost 19 Participating in another pool Currently self insured 11 Purchased commercial coverage 14 Will review at renewal 20 Other Comments: 1 Have coverage elsewhere. 2 Too small for workers' compensation Have not needed event insurance yet. 12 Level of satisfaction with PERMA's participation in other pools: Very Very Not CSAC EIA (Excess Liability) Coverage Limits sufficient? Cost satisfactory? LAWC (Excess Workers' Compensation) Coverage Limits sufficient? Cost satisfactory? ERMA.(Primary Employment Practices) Coverage Limits sufficient? Costs satisfactory? Average % 47% 43% 0% 0% 0% 10% 100% Comments: 48% 25% 4% 0% 0% 23% 100% No responses for this question. Page 13 of 18

16 PERMA MEMBERSHIP SATISFACTION SURVEY RESULTS /1/2017 Total number of responses 16 out of 52 (31%) 13 Do you believe the PERMA programs compare favorably with what would be available to you from the commercial marketplace or from other pools? Yes No Don't Know Total Total Average % 88% 6% 6% 100% 84% 0% 16% 100% Comments: 1 The programs in our opinion are much better than what we could access from the commercial market and the costs are much better. 14 Have you received, or been approached to receive, a competitive quote(s)? Yes No Don't Know Total Total Average % 6% 94% 0% 100% 13% 87% 0% 100% Comments: 1 Several companies came around about 2 years ago wanting to quote insurance. We assumed they had all gone to some marketing seminar and someone told them to contact Cities to sell insurance. They all had the same sales pitch. 15 Do you consider PERMA a good value? How strongly do you agree with the statement, "PERMA provides good value for the dollars spent."? Strongly Probably Not Agree Agree Don't Agree Applicable Total Total Average % 94% 6% 0% 0% 100% Comments: 90% 10% 0% 0% 100% No responses for this question. Page 14 of 18

17 PERMA MEMBERSHIP SATISFACTION SURVEY RESULTS /1/2017 Total number of responses 16 out of 52 (31%) 16 What are the two most important things that should be done in the next two to five years to make PERMA a better risk sharing pool and organization for its members? 1A All is good! 2A Recruit more members to broaden the pool. 1B Training to reduce liability claims. 2B Training to reduce workers' compensation claims. 1C Continue aggressive claims defense. 2C 17 In summary, what is your overall level of satisfaction with PERMA? Above Below Exceptional Average Average Average Total Total Average % 100% 0% 0% 0% 100% 81% 19% 0% 0% 100% Comments: 1 PERMA has been great. I have been able to learn a lot about risk pools since first being introduced a year and a half ago. All the staff and programs support the cause and keep information readily available. Thank you! 2 PERMA is an exceptional risk sharing pool an organization. Therefore I was not able to answer Q.16. Working with PERMA and its employees have been a great experience thus far and look forward in continuing working together. Page 15 of 18

18 STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS STRENGTHS Cohesive Board of Directors Good relationship between Board and staff Control retained by members Financially secure and stable Lack of bureaucracy, non-political climate Flexible program administration Efficient structure of organization Continuously strive to meet member needs Coverages available for all exposures Experienced management and consultants Staff size to membership ratio WEAKNESSES Frequency of Board member turnover, so few know the value of PERMA PERMA does not control its own destiny due to reliance on excess insurers, subject to excess insurers policy and procedures Size of membership (spread of risk) Geographically spread out OPPORTUNITIES Professional and prompt customer service Networking with risk management professionals Hard market Broad coverage High limits of coverage Stable, cost effective premiums Dividends THREATS Competitive pools and insurance companies Taking membership for granted Soft market Complacency Legislation which creates additional exposure Taking on too much risk Page 16 of 18

19 GOALS AND OBJECTIVES GOAL #1: Maintain 100% retention rate of current membership, by Objective 1: Providing high levels of service and communicate candidly; Objective 2: Continued personal interaction with members - keep asking for member input; Objective 3: Staff availability for prompt responsiveness; Objective 4: Developing an annual report for distribution to management, councils and boards; Objective 5: Conducting topical training workshops, and orientations; Objective 6: Following up with members to fill vacancies on the Board of Directors; and Objective 7: Follow up and engage with under-participating members. GOAL #2: Increase membership, by Objective 1: Participating in and/or sponsoring industry related conferences and associations; Objective 2: Revisiting former members; Objective 3: Emphasizing organization is member-directed, very responsive, and customer service friendly; Objective 4: Getting the word out about PERMA s financial strength; and Objective 5: Referrals and contacts by Board members. GOAL #3: Maintain financially secure, stable and cost effective programs, by Objective 1: Maintaining a minimum 90% overall confidence level in pooled programs before dividends are returned; Objective 2: Approving an annual administrative/program budget, deposit premiums and equity distribution; Objective 3: Conducting an actuarial evaluation at least bi-annually on pooled programs; Objective 4: Reviewing and approving coverage documents annually; and Objective 5: Reviewing and approving investment portfolio and policy annually. Page 17 of 18

20 MISSION STATEMENT The Public Entity Risk Management Authority is a member-directed pool dedicated to providing financially secure, stable, and cost effective coverage programs and risk management services for its members. Page 18 of 18