2015 annual meeting itinerarycjprma.org/docs/meetings/annual-mtg-agenda-packet-may-2105.pdf · page...

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MAY 19, 20 and 21, 2015

CJPRMA ANNUAL MEETING ITINERARY

CJPRMA 3201 Doolan Road, Suite 285

Livermore, CA 94551 (925) 290-1310

TUESDAY, MAY 19, 2015 12:00 - 1:00 Kick Off Lunch – CJPRMA 1:00 - 3:15 Board Meeting 3:15 - 3:30 Break 3:30 - 4:30 Board Meeting (continued) 6:00 Dinner & Bocce – Campo di Bocce (175 E. Vineyard Avenue, Livermore,

CA 94550, (925) 249-9800) WEDNESDAY, MAY 20, 2015 7:30 - 8:00 Breakfast – CJPRMA 8:00 - 10:00 Board Member Training “Life after Ferguson”

Gregory M. Fox, Senior Partner and Rich Osman, Partner – Bertrand, Fox, Elliot, Osman & Wenzel

10:00 - 10:30 Break – CJPRMA Office 10:30 - 11:30 Board Member Training “Mediation”

Judge Raul A. Ramirez (ret.), Ramirez Arbitration and Mediation Services 11:30 - 12:30 Lunch 12:30 - 5:00 Tour – Lawrence Livermore National Laboratory, (7000 East Avenue,

Livermore, CA 94550) *For your comfort and safety, please wear flat-sole, closed–toe and closed–heel shoes. 6:00 Appetizer/Dinner – Zephyr Grill & Bar, (1736 First Street, Livermore, CA 94550, (925) 961-1000)

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THURSDAY, MAY 21, 2015 7:30 - 8:00 Breakfast – CJPRMA 8:00 - 9:00 Board Member Training “PINS Advantage”

Katy Rose and Marshall Rose, Customer Service Consultant – PINS Advantage

9:00 - 10:15 Board Member Training “Legal Update”

A. Byrne Conley, Esq. – Gibbons and Conley

10:15 - 10:30 Break 10:30 - 12:00 Board Member Training “Taser International”

Isaiah Fields, Director Legal Services and Government Affairs – Taser International

12:00 - 1:00 Lunch 1:00 - 2:00 Board Meeting (continued)

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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY

BOARD OF DIRECTORS MEETING

May 19, 20 & 21, 2015 - 1:00 P.M.

CJPRMA Main Office 3201 Doolan Road, Suite 285

Livermore, CA 94551

(925) 837-0667

AGENDA

I. CALL TO ORDER: 1:00 p.m.

II. ROLL CALL

III. PRESENTATIONS

A. Recognition of service for President Giles

B. Board Member service recognition

C. 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.

D. COMMUNICATIONS

A. Board Members

B. General Manager/Secretary

C. Next Scheduled Meetings: Board of Directors (06/18/2015) CJPRMA Main Office Executive Committee (7/16/2015) City of Richmond E. APPROVAL OF MINUTES

Minutes of the Board of Directors meeting held on March 19, 2015 (Pages 7-14)

F. CONSENT CALENDAR ( I ) Information Only ( A) Action Item

Board of Directors Meeting Agenda Annual Meeting May 19, 2015 – May 21, 2015

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) 290-1310, 24 hours in advance of the meeting.

1. Additional Covered Party Certificates Approved by the General Manager (A)(Pages 15-

21)

2. Financial Report of CJPRMA for the quarter ending February 28, 2015 (A) (Pages 22-37)

VIII. ACTION CALENDAR ( A) Action Item

3. Casualty & Property Insurance Renewals for Fiscal Year 2015-2016 (A) (Pages 38-41)

4. Approve the proposed rate and membership for Association of Bay Area Governments’ Pooled Liability Association Network (PLAN) (A) (Pages 42-73)

5. City of Redding request to join the Auto Physical Damage Program (A) (Pages 74-77)

6. Recommendation to adopt a resolution for participation in the PARS Public Agencies

Post-Retirement Health Care Plan 115 Trust and approve funding contribution (A) (Pages 78-107)

7. Approve the proposed Operating Budget for 2015-2016 (A) (Pages 108-125)

8. Approval of 2015 Claims Audit (A) (Pages 126-127)

IV. INFORMATION CALENDAR ( I ) Information Only ( A) Action Item

9. New Board Members/Alternates (I) (Pages 128-130)

10. Business Calendar for 2015 (I) (Pages 131-134)

11. Report from Investment Manager (I) (Pages 135-162)

12. Expense Reimbursement for Board Members/Alternates pursuant to Board Policy #21 (A) (Pages 163-166)

13. Risk Management Issues (I) (Pages 167-179)

X. CLOSED SESSION

1. Government Code Section 54956.9 (a) Conference with Legal Counsel - Pending Litigation Name of Case: Bertoli v. City of Sebastopol (REMIF) Court: Sonoma County Superior Court Case No.: SCV-247619



2. Government Code Section 54956.9 (a) Conference with Legal Counsel - Pending Litigation

Name of Case: Holt-Singh v. City of Stockton Court: N/A Case No.: N/A


Name of Case: Navarro v. City of Alameda Court: N/A Case No.: N/A


Name of Case: Molera (Walker Survivors) v. City of Vacaville Court: Federal District Court Eastern District of California Case No.: 2:14 - CV – 00374

5. Government Code Section 54956.9 (a) Conference with Legal Counsel - Litigation

Name of Case: Gilliam, et. al. v. City of West Sacramento (YCPARMIA) Court: United States District Court – County of Yolo Case No.: NO 2:13 - CV - 02276- WBS-AC

6. Government Code Section 54956.9 (a)

Conference with Legal Counsel - Pending Litigation Name of Case: Storey v. City of Roseville, et, al. Court: Superior Court of California, County of Placer Case No.: SCV0032572


Name of Case: Milan v. City of Vallejo Court: Superior Court of California, County of Solano Case No.: FCS042585




Name of Case: Johnson v. City of Vallejo Court: United States District Court Eastern District of California, County of Solano Case No.: 2:13-cv-01072-JAM-KJN


Name of Case: Hernandez v. City of Richmond Court: United States District Court – Northern District of California Case No.: 3:14-cv-030799 JST

X. ACTION ON CLOSED SESSION ITEMS

XI. ADJOURNMENT

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Board of Directors Minutes for March 19, 2015 Page 2 of 8

OTHERS PRESENT

III. PRESENTATIONS

None

IV. THIS TIME IS RESERVED FOR MEMBERS OF THE PUBLIC TO ADDRESS THE

BOARD OF DIRECTORS ON MATTERS OF BOARD BUSINESS.

V. COMMUNICATIONS

A. Board Members: B. General Manager/Secretary: C. Next Scheduled Meetings: Executive Committee (04/23/2015) CJPRMA

Annual Meeting (05/19/2015-05/21/2015) CJPRMA Board of Directors (06/18/2015) CJPRMA

VI. APPROVAL OF MINUTES

A motion was made by Director Greer, seconded by Director Akil, to approve the minutes of the Board of Directors meeting held December 18, 2014. Directors Akil, Fields, Marquez, Schwarz, Hamilton, Magdich, Islas, Kurihara, Ferguson, Greer, Dolan, Paul Carroll, Roger Carroll, Henderson, Giles, Garrett, Leahy and Tonks voted for approval of the minutes. Motion passes.

VII. CONSENT CALENDAR

1. Financial Report of CJPRMA as of December 31, 2014 (A)

2. Additional Covered Party Certificates Approved by the General Manager (A)

A motion was made by Director Henderson, seconded by Director Paul Carroll, to approve the Consent Calendar. Directors Akil, Fields, Marquez, Schwarz, Hamilton, Magdich, Islas,

19) David Clovis, CJPRMA 26) Jas Sidhu, Livermore 20) Lola Deem, CJPRMA 27) Shannon Moore, Richmond 22) Craig Schweikhard, CJPRMA 28) Robert Lowe, AON 22) Saima Kumar, CJPRMA 29) Patrick Hurley, Manning and Kass 23) Carol Cakebread, CJPRMA 24) Martin Cassell, Chandler Asset Mgmt 25) A. Byrne Conley, Gibbons & Conley

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Kurihara, Ferguson, Greer, Dolan, Paul Carroll, Roger Carroll, Henderson, Giles, Garrett, Leahy and Tonks voted for approval of the calendar. Motion passes.

VIII. ACTION CALENDER (Action Items Only)

3. Expense Reimbursement for Board Members/Alternates Pursuant to Board Policy #21 (A)

The general manager proposed modifications to adopted Policy #21: the current expense reimbursement for Board members/alternates, which was adopted by the Board of Directors on November 16, 2006. The general manager has reviewed this policy and determined that there are numerous opportunities for education for Board Members at alternative conferences. Currently, the policy will reimburse each member for one attendee at the annual PARMA and CAJPA conference. In addition, this policy authorizes two members from each member agency to attend the CJPRMA Annual Meeting. No change is recommended in that section of the policy. Although both of these programs provide for high quality learning opportunities, there are a number of national programs that would expand the learning opportunities and further develop the Board of Directors.

The major opportunities for enhanced Board Member learning could be obtained at conferences offered by the following agencies: Association of Government Risk Insurance Pools (AGRIP), Risk and Insurance Management Society (RIMS), Public Risk Insurance Management Association (PRIMA), Annual Risk Console Educational Forum (VENTIV), and AON Property Symposium. These sessions are typically presented throughout the country and would expand learning opportunities for our Directors.

CJPRMA currently budgets $35,000 for this reimbursement. The total amount paid for fiscal year 2013-2014 was $27,000. The cost of the seminars identified would increase the cost to this organization for these programs. We propose limiting the maximum reimbursement for these programs to be $2,500 per event. By adopting the proposed modification to this policy, staff would recommend an increase in this line item for fiscal year 2015-2016 of approximately $5,500 or $500 per member. We would recommend monitoring the usage during the first year of implementation and review the policy after the program is in place for one fiscal year. It is also recommended that this policy change be effective July 1, 2015, for the 2015-2016 program year. Ferguson provided his support. Garrett asked if this applies to webinars and the general manager clarified that this pertains to conferences specifically, not trainings. The general manager suggested that a committee devise the list of approved seminars.

A motion was made by Director Henderson, seconded by Director Roger Carroll, to approve the revisions to this policy as presented by the general manager and to authorize the Executive Committee to approve the list of seminars that will be added to this policy. Directors Akil, Fields, Marquez, Schwarz, Hamilton, Magdich, Islas, Kurihara, Ferguson, Greer, Dolan, Paul Carroll, Roger Carroll, Henderson, Giles, Garrett, Leahy and Tonks voted for approval of said policy revisions and authority to the Executive Committee. Motion passes.

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4. Update on General Manager’s Compensation Plan (A)

The general manager provided the results of a survey completed September 15, 2013, by Creative Management Solutions, Inc. and commissioned by the Public Entity Risk Management Authority (PERMA) for the purpose of evaluating their compensation plan. The general manager advised that Creative Management Solutions completed a similar survey for CJPRMA in 2009. The high and low compensation points currently in place for the general manager were adopted by the Board of Directors at their May 6, 2009, meeting. Director Tonks expressed concerns with the survey methods specific to the selection of organizations to include. Tonks stated that the survey is comparing CJPRMA to organizations that differ so much from CJPRMA to be out of perspective. Director Ferguson supported Tonk’s opinion and added that this results in an inequitable situation. Ferguson added that CJPRMA does not need to be located in Livermore and location bonuses are not necessary because CJPRMA can be moved and the organization was previously told that the location would not be used as a factor for determining salaries when the decision was made to move the CJPRMA office to Livermore. Director Akil supported adjusting the general manager’s salary range due to the need to keep the position marketable when it is open in the future and also due to the size of the agency’s budget. Director Islas stated that it is premature to move forward with adjustment of the general manager’s salary range. Director Greer expressed support for the salary range adjustment. Director Paul Carroll stated that 6 years is a long time to keep a salary range static, that it seems reasonable to adjust the range, and proposed assessing whether this study is relevant for determining the CJPRMA general manager’s salary range. Director Magdich stated reasons why she believes the study is relevant for this discussion and her support for the adjustment. Director Roger Carroll stated that this proposed adjustment is consistent with a 4% COLA over 6 years and seems reasonable to approve at this time. A motion was made by Director Akil, seconded by Director Greer, to approve the proposed general manager’s top step salary range in the amount of $197,604. Directors Akil, Fields, Marquez, Schwarz, Hamilton, Magdich, Greer, Dolan, Paul Carroll, Roger Carroll, Henderson, Giles, Garrett, Leahy and Tonks voted for approval of the new general manager’s salary range. Directors Schwarz, Islas, Kurihara and Ferguson voted against the motion. Motion passes.

IX. INFORMATION CALENDAR

5. Report from Investment Manager (I)

Martin Cassell, Chandler Asset Management, presented the CJPRMA investment portfolio, investment strategy, and update on economic factors that have had a direct impact on the

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investments. 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 5 years. As of February 28, 2015, the Loss Payment Account was valued at $11,448,662. This was a decrease of $1,794,388 from its valuation of $13,243,050 on November 30, 2014. During the reporting period, four securities matured and $1.8 million was withdrawn from the portfolio in order to fund the redistribution. Several securities were purchased across the Agency, Commercial Paper and Corporate sectors of the market to keep the portfolio structure in line with Chandler objectives. The Loss Payment Account has sufficient funds to meet the expenditure requirement 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, 2015, the Long Term Growth Account was valued at $40,700,954. This was an increase of $497,402 from its valuation of $40,203,552 on November 30, 2014. Four securities were sold to facilitate the portfolio characteristic adjustments. Several securities were purchased across the Treasury, Agency and Corporate sectors of the market. The purchased securities ranged in maturity from January 2020 to September 2024.

As of February 28, 2015, the Long Term Growth/Tactical Account was valued at $40,648,180. This was an increase of $133,549 from its valuation of $40,514,631 on November 30, 2014. Three securities matured and four securities were sold to facilitate portfolio characteristic adjustments. Multiple securities were purchased across the Treasury, Agency, Commercial Paper and Corporate sectors of the market. The purchased securities ranged in maturity from June 2015 to January 2020. No action was required.

6. Renewal Strategy Plan for 2015-2016 Program Year

AON Risk Services and CJPRMA Staff have met and created a renewal strategy for the 2015-2016 coverage programs. Mr. Robert Lowe of AON Risk Services attended this meeting and updated 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 19, 2015, Board of Directors Meeting.

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The general manager presented tentative guidelines for renewal to the Executive Committee at its January meeting. Mr. Lowe and the general manager answered director’s questions regarding the current status of the renewal process. To date, the incumbent carriers providing coverage have not provided any firm proposals for the upcoming renewal. Directors Ferguson and Akil expressed concerns in regards to the timing of this renewal strategy discussion and their agency’s budgeting deadlines. The general manager and Mr. Lowe agreed to prepare an email for all directors announcing budget estimations.

No action was required.

7. Member Portal Rollout

Staff has been working with our graphics provider Marketing VUE to create a new member-only portal on the CJPRMA website. This area is designed to store numerous documents that will be available to members for their use. Members will be assigned a confidential password. Passwords will initially be provided to all Board Members. Additional passwords will be provided upon request. The layout of the page is relatively simple but also includes the ability to search data based upon relevant topics. Staff will begin loading documents as they are received. The page will include confidential information and the password should not be shared for confidentiality. The documents that will be included in this area will include member data, forms, policies, copies of court decisions, copies of submissions on litigated matters including rulings on MSJ’s, and other court related data. No action was required.

8. New Board Members/Alternates (I)

The following notifications regarding a change in director/alternate designation were provided to CJPRMA since the last meeting:

Santa Rosa: Director – Cliff Hunt, Risk Manager Alternate – Paul Carroll, Employee Relations Manager Chico: Alternate – Frank Fields, Administrative Services Director

No action was required.

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13. 2015 Business Calendar (I)

The 2015 Business Calendar was provided as a standing agenda item for all board meetings. This calendar provides board members and staff with a list of key business items and the required dates for completion. No action was required.

14. Risk Management Issues (I)

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.

Issues that have been requested to be listed for discussion are set forth below:

Infrastructure Coverage - (Chris Constantin, Chico) Revise language from direct and immediate accidental damage to tangible property owned or used by any covered party. This item was tabled until the next Board of Directors meeting.

X. CLOSED SESSION


Conference with Legal Counsel - Litigation

(Time Certain: 10 a.m.)

Name of Case: Hernandez v. City of Richmond Court: United States District Court – Northern District of California Case No.: 3:14-cv-030799 JST

2. Government Code Section 54956.9 (a) Conference with Legal Counsel - Pending Litigation Name of Case: Molera v. City of Vacaville Court: United States District Court – Eastern District of California Case No.: 2:14 at 00374

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Conference with Legal Counsel - Pending Litigation Name of Case: Holt-Singh, et. al. v. City of Stockton Court: N/A Case No.: N/A


Name of Case: Bertoli v. City of Sebastopol (REMIF) Court: Sonoma County Superior Court Case No.: SCV-247619

5. Government Code Section 54956.9 (a) Conference with Legal Counsel - Litigation Name of Case: Gilliam, et. al. v. City of West Sacramento (YCPARMIA) Court: United States District Court – County of Yolo Case No.: NO 2:13 - CV - 02276- WBS-AC

6. Government Code Section 54956.9 (a) Conference with Legal Counsel - Pending Litigation Name of Case: Skoumbas v. Orinda Court: Superior Court State of California – County of Contra Costa Case No.: C05-00552

XI. ACTION ON CLOSED SESSION ITEMS

Status updates were provided on all closed session items. The general manager received direction from the Board of Directors for five of the listed closed session items. No action was required on the remaining closed session item.

XII. ADJOURNMENT

A motion by Director Greer and Seconded by Director Carroll to adjourn the meeting at 12:43 p.m. Motion passes.

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Certificate of Coverage Report 5-19-2015

Organization Member Additional Covered Party Amount of Coverage Requested

Activity Start Date Activity End Date Description

Alameda Alameda The East Bay Regional Park District, its officers,

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1,000,000.00 Jun 17, 2015 Aug 19, 2015 Use of facilities for Summer Day Camp of

bChico Chico Oshkosh Capital, its successors and/or all assigns

2,000,000.00 Apr 22, 2015 Apr 22, 2025 Master Lease Purchase Agreement for three (3) 2015 Pierce Velocity Pumpers

Chico Chico The State of California, the 3rd District Agricultural Association, Butte County, their directors, officers, agents, servants and employees

1,000,000.00 May 19, 2015 May 26, 2015 Use of Commercial Vendor space at 2015 Silver Dollar Fair for PD crime prevention and safety booth, and information booth- Educational Storm Water

County of Yolo YCPARMIA Davis Joint Unified School District

1,000,000.00 Apr 16, 2015 Apr 16, 2015 Use of multipurpose room for Royal Oaks Townhall

County of Yolo YCPARMIA State of California, California Exposition & State Fair, its agents, officers, directors, employees and servants

1,000,000.00 Jun 19, 2015 Aug 2, 2015 Exhibit at 2015 State Fair

County of Yolo YCPARMIA The State of California, its officers, agents,

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1,000,000.00 Apr 17, 2015 Dec 31, 2017 Yolo County Probation Department: Supervised

l kfDavis YCPARMIA Davis Joint Unified School District

1,000,000.00 May 20, 2015 May 20, 2015 Use of Chavez Elementary School Multipurpose Room for Neighborhood Workshop.

Esparto Unified School District

YCPARMIA Pacific Environmental Education Center

1,000,000.00 Mar 30, 2015 Apr 3, 2015 Use of facilities by all sites and programs of the named insured for the Outdoor education program for Sixth Grade class

Eureka REMIF Rouse Properties Incs, General Managers, The

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1,000,000.00 Mar 14, 2015 Mar 14, 2015 The City of Eureka Community Emergency

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Eureka REMIF Rouse Properties, Inc. General Managers

1,000,000.00 Apr 25, 2015 Apr 25, 2015 City of Eureka Zoo Staff participating in a Math Fair at the Bayshore Mall by staffing an information booth.

Fairfield Fairfield Grocery Outlet, Inc., a California Corporation

2,000,000.00 Aug 31, 2012 Aug 31, 2017 Lease of building located on 200 Travis Blvd (PAL Matt Garcia Youth Center)

Fairfield Fairfield Key Governmental Finance, Inc., their successors and assigns

1,000,000.00 Apr 30, 2015 Apr 30, 2019 Leasing of Automatic External Defibrillators (SAM-AED)

Fairfield Fairfield Sunstate Equipment Company

1,000,000.00 Apr 27, 2015 Apr 27, 2016 Renting Equipment for Building Maintenance

Folsom NCCSIF California Department of Parks and Recreation

5,000,000.00 Feb 27, 2015 May 1, 2040 License agreement to construct, operate and

h kFolsom NCCSIF Kaiser Permanente 1,000,000.00 May 9, 2015 May 9, 2015 Love My Mom Event on May 9, 2015

Folsom NCCSIF The State of California and U.S Bureau of

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1,000,000.00 May 16, 2015 May 16, 2015 Folsom's Run with Nature event is a 5k walk/run h ll k l lFolsom NCCSIF The State of California,

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1,000,000.00 Feb 15, 2015 Jun 30, 2030 Agreement for temporary transfer of vehicular

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5,000,000.00 Feb 27, 2015 May 2, 2040 License agreement to construct, operate and

h kGridley NCCSIF Gridley Unified School District, its officers, agents, employees, and Board members are added as additional insured.

1,000,000.00 Jun 20, 2015 Jun 20, 2015 Hershey Track Meet on June 30th , 2015

Gridley NCCSIF That the State of California, the District

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1,000,000.00 May 28, 2015 May 31, 2015 Food Concession Booth at the annual Nor-Cal l hGridley NCCSIF The State of California,

Department of Fish and ldl f ff

1,000,000.00 May 9, 2015 May 9, 2015 Annual Kids Fishing Derby at Boneyard Pond / /Livermore Livermore Union Pacific Railroad

Company2,000,000.00 Sep 24, 2014 Jun 30, 2030 Pipeline Crossing

Agreement: Mile Post 50.17 Oakland Subdividision/Branch Folder No. 2883-08

Lodi Lodi AEG Cycling LLC, a Delaware Limited Liability Company and the AEG

5,000,000.00 May 10, 2015 May 12, 2015 Amgen Tour of California -a Tour de France-style cycling road race created

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Lodi Lodi City of Galt, its elected officials, officers and

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2,000,000.00 Apr 1, 2015 Apr 1, 2030 City of Galt will provide City of Lodi, and its law

f ff dLodi Lodi County of San Joaquin 1,000,000.00 May 8, 2015 May 12, 2015 The City of Lodi requires an encroachment permit from San Joaquin County to place traffic control barricades/signage for the AMGEN tour.

Loomis SCORE Placer Union High School District and its officers, agents and employees

1,000,000.00 May 16, 2015 May 16, 2015 Loomis Annual Spring Clean-Up Day

Loomis SCORE The State of California, its officers, agents and employees as the additional insured

1,000,000.00 Mar 23, 2015 Jun 30, 2015 Landscape and freeway maintenance agreement within state highway right of way at the Horseshoe Bar interchange on State Route 80 within the Town of Loomis.

Richmond Richmond The TJX Companies and its Affliates

2,000,000.00 Jun 22, 2015 Sep 9, 2015 Youth work services program. 15 City of Richmond youths will work in the Pinole, CA TJ Maxx store from 6/22/15-9/09/15.

Rio Dell SCORE Rio Dell School District its officials, agents and employees

1,000,000.00 May 9, 2015 May 9, 2015 Rio Dell Spring Clean Up Day on 5/9/15

Rio Vista NCCSIF Yolo-Solano County Air Quality Management District, its officials, trustees, agents, employees, and volunteers

1,000,000.00 Mar 12, 2015 Mar 12, 2016 As respects the agreement regarding the use of Clean Air Funds for 2015 V 8 Flex Fuel Valve Timing gasoline utility truck.

Rohnert Park REMIF Cotati Rohnert Park Unified School District

1,000,000.00 May 2, 2015 May 2, 2015 Use of Evergreen School Parking Lot

Rohnert Park REMIF The Sonoma County Fair and Exposition Inc., Harvest Fair Association of Sonoma County, the County of Sonoma, their officers, agents and employees

1,000,000.00 Mar 20, 2015 Mar 20, 2015 Use of Sonoma County Fair, Car Mart Lot by Rohnert Park Department of Public Safetly

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San Leandro San Leandro San Lorenzo Unified School District

1,000,000.00 Jul 13, 2015 Jul 17, 2015 City's use of District Buildings and Facilities at Washington Manor Middle School for the Youth Basketball Camp Program.

San Leandro San Leandro The Roman Catholic Bishop of Oakland, A

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1,000,000.00 Jun 5, 2015 Jun 6, 2015 Use of St. Leander Church parking lot area f dSan Rafael San Rafael The Downtown San

Rafael Farmers Market1,000,000.00 Apr 2, 2015 Sep 24, 2015 Library booth offering

books for checkout and sign ups for library cards.

San Rafael San Rafael The State of California, its officers, employees, and servants are included as additional insured but only insofar as operations under this contract or permit are concerned

1,000,000.00 Jun 16, 2015 Aug 11, 2015 Summer Camp Day Trips to Samuel P. Taylor Park

San Rafael San Rafael The State of California, its officers, employees, and servants are included as additional insured but only insofar as operations under this contract or permit are concerned

1,000,000.00 Jul 28, 2015 Aug 6, 2015 Summer Camp Day Trips to Tomales Bay-Heart's Desire Beach

Santa Rosa Santa Rosa Luther Burbank Rose Parade & Festival

1,000,000.00 May 16, 2015 May 16, 2015 Informational booth on storm water, pollution and support stewardship of local creeks.

Santa Rosa Santa Rosa Roseland School District 1,000,000.00 Apr 22, 2015 Jan 31, 2016 Use of facilities for a steering committee meeting for Roseland projects.

Sebastopol REMIF City of Santa Rosa, its officers, agents, employees and volunteers

1,000,000.00 Apr 1, 2015 Dec 31, 2015 Leasing of training motorcycle to train Sebastopol Police Officer.

Shasta Lake SCORE Gateway Unified School District, its elected or appointed officials, employees, agents and volunteers.

1,000,000.00 May 12, 2015 May 12, 2015

Page 19Page 19


Sonoma REMIF County of Sonoma, its officers, agents and employees

1,000,000.00 Apr 29, 2015 Apr 29, 2015 Use of facility for City Council Meeting.

Sunnyvale Sunnyvale St. Louis School 1,000,000.00 May 9, 2015 May 9, 2015 Use of School Track for physical agility testing for City of Sunnyvale public safety recruits.

Ukiah REMIF Near and Arnold's School of Performing Arts and Cultural Education

1,000,000.00 Apr 26, 2015 Apr 26, 2015 Poetry Festival - Reading of award winning poems, music, light refreshments.

Ukiah REMIF Sunset Publishing Corporation and its parents, subsidiaries, affiliates, and assigns

1,000,000.00 Jun 6, 2015 Jun 7, 2015 Exhibtor booth at the Sunset Magazine "Celebration Weekend"

Ukiah REMIF Ukiah School District, its officers and employees

1,000,000.00 Jun 16, 2015 Jul 9, 2015 Youth Basketball Class (3rd - 6th Grades)

dUkiah REMIF Ukiah Unified School District, District , it's employees

1,000,000.00 Jun 14, 2015 Aug 16, 2015 West African Drum Class

Ukiah REMIF Ukiah Unified School District, its officers and employees

1,000,000.00 Mar 30, 2015 Jun 12, 2015 Use of facility for Girls Youth Softball League Practices and Games: Monday - Friday: 5 - 8 p.m. and Saturday - Sunday: 9 a.m. - 3 p.m.


1,000,000.00 Jun 15, 2015 Jun 19, 2015 Summer Safari Day Camp


1,000,000.00 Jul 11, 2015 Jul 25, 2015 Dance and Floor Gymnastic s for Kids

Ukiah REMIF Ukiah Unified School District,its officers, employees

1,000,000.00 Apr 19, 2015 May 3, 2015 Use of facility for Lifeguard training:April 19 2015 Sunday

Vacaville Vacaville Holman Capital Corporation and its

1,000,000.00 Apr 1, 2015 Apr 23, 2030 Lease/Purchase Agreement between City f ll d lVallejo Vallejo Lennar Mare Island LLC

and Kennedy Wilson Properties, Ltd

5,000,000.00 Apr 1, 2015 Apr 30, 2015 Use of parking lot south of Building 459 as described in Exhibit B.

Vallejo Vallejo Lennar Mare Island, LLC and Kennedy Wilson Properties, Ltd.

5,000,000.00 Apr 1, 2015 Apr 30, 2015 Use of building 944 as described in Exhibit B by the City of Vallejo Police Department.

Page 20Page 20


Vallejo Vallejo Vallejo City Unified School District

2,000,000.00 Apr 15, 2012 Apr 15, 2029 Land Lease Agreement for Park Project between Vallejo City Unified School District and the City of Vallejo. Lease Agreement # 995118.1 (APN 0182-050-020)

West Sacramento YCPARMIA Banc of America Public Capital Corp and/or its assigns

1,000,000.00 Mar 20, 2015 Feb 28, 2019 CISCO Networking per Lease Agreement #3156998 for a total financed of $324,631.12

West Sacramento YCPARMIA KaBoom! and The Walt Disney Company

1,000,000.00 Apr 27, 2015 May 31, 2015 Playground Agreement for Bryte Park, West Sacramento

West Sacramento YCPARMIA The Giants Community Fund and the San Francisco Giants, and each of their subsidiaries and affiliated entities, and their respective directors, officers and employees

1,000,000.00 Jun 12, 2015 Aug 15, 2015 Jr. Giants Baseball Program

Winters YCPARMIA WinterJointed Unified School District

1,000,000.00 May 20, 2015 May 20, 2015 Use of Waggoner School swimming pool for After School

Winters YCPARMIA Winters Joint Unified School Distric t

1,000,000.00 May 26, 2015 May 26, 2015 Use of Shirley Rominger School swimming pool for after school program end of the year party.

Winters YCPARMIA Winters Joint Unified School District

1,000,000.00 Apr 1, 2015 Sep 30, 2015 Use of High School swimming pool for recreation swim, swim team, adult lap swim and swim lessons

Winters YCPARMIA Winters Joint Unified School District

1,000,000.00 Jun 8, 2015 Jul 31, 2015 Use of Waggoner School for Munchin Camp Summer Program

Yuba City NCCSIF Yuba-Sutter United Way 1,000,000.00 Apr 1, 2015 Nov 1, 2015 Healthier Children Community Impact Grant Agreement

89,000,000.00

May 5, 2015Summary

Page 21Page 21

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Page 22Page 22

System: 5/5/2015 4:21:49 PM California Joint Powers Page: 1User Date: 1/31/2015 VENDOR CHECK REGISTER REPORT User ID: LOLA Payables Management

Ranges: From: To: From: To: Check Number First Last Check Date 1/1/2015 1/31/2015 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 --------------------------------------------------------------------------------------------------------------------------------- 18579 ADP01 ADP, LLC 1/6/2015 BOA CKG PMCHK00000619 $300.46 18580 AKIL01 LUCRETIA AKIL 1/6/2015 BOA CKG PMCHK00000619 $30.68 18581 AMERICAN EXPRES AMERICAN EXPRESS 1/6/2015 BOA CKG PMCHK00000619 $215.59 18582 AON02 AON RISK CONSULTANTS, INC 1/6/2015 BOA CKG PMCHK00000619 $13,500.00 18583 AQUA01 AQUACHILL DRINKING WATER SYSTE 1/6/2015 BOA CKG PMCHK00000619 $42.51 18584 CARM01 CHRIS CARMONA 1/6/2015 BOA CKG PMCHK00000619 $267.68 18585 CLARE01 CLARE COMPUTER SOLUTIONS 1/6/2015 BOA CKG PMCHK00000619 $1,345.00 18586 CONEXIS01 CONEXIS 1/6/2015 BOA CKG PMCHK00000619 $105.00 18587 DIRECT01 DIRECTV 1/6/2015 BOA CKG PMCHK00000619 $138.97 18588 FEDEX01 FEDEX 1/6/2015 BOA CKG PMCHK00000619 $50.29 18589 FRAN01 FRANK, RIMERMAN CONSULTING 1/6/2015 BOA CKG PMCHK00000619 $942.40 18590 GARRETT02 CELESTE GARRETT 1/6/2015 BOA CKG PMCHK00000619 $79.48 18591 GIBBONS GIBBONS & CONLEY 1/6/2015 BOA CKG PMCHK00000619 $9,630.18 18592 GIVE001 GIVE SOMETHING BACK 1/6/2015 BOA CKG PMCHK00000619 $102.88 18593 LIVERMORE CITY OF LIVERMORE 1/6/2015 BOA CKG PMCHK00000619 $1,062.27 18594 MAZE01 MAZE & ASSOCIATES 1/6/2015 BOA CKG PMCHK00000619 $1,570.00 18595 MIDLAND01 MIDLAND NATIONAL 1/6/2015 BOA CKG PMCHK00000619 $131.46 18596 MURPHY01 MURPHY, CAMPBELL, 1/6/2015 BOA CKG PMCHK00000619 $780.00 18597 PERS02 CALPERS MEDICAL 1/6/2015 BOA CKG PMCHK00000619 $4,707.33 18598 PERS03 CAL PERS 1/6/2015 BOA CKG PMCHK00000619 $4,666.91 18599 PETERS01 PETERS, HABIB, MCKENNA 1/6/2015 BOA CKG PMCHK00000619 $3,501.86 18600 RAWE01 DAVID RAWE 1/6/2015 BOA CKG PMCHK00000619 $120.96 18601 STAND002 STANDARD INSURANCE 1/6/2015 BOA CKG PMCHK00000619 $648.45 18602 STATE02 STATE OF CALIFORNIA 1/6/2015 BOA CKG PMCHK00000619 $1,000.00 18603 STOCKTON CITY OF STOCKTON 1/6/2015 BOA CKG PMCHK00000619 $119,185.51 18604 VANG01 VANGUARD CLEANING SYSTEMS, INC 1/6/2015 BOA CKG PMCHK00000619 $741.98 18605 WATKINS02 WATKINS & LETOFSKY LLP 1/6/2015 BOA CKG PMCHK00000619 $1,636.00 18607 AFLAC01 AFLAC 1/20/2015 BOA CKG PMCHK00000620 $33.78 18608 ALLIED01 ALLIED ADMINISTRATORS 1/20/2015 BOA CKG PMCHK00000620 $593.82 18609 AON ESOLUTIONS AON ESOLUTIONS, INC. 1/20/2015 BOA CKG PMCHK00000620 $93,768.55 18610 CORODATA01 CORODATA RECORDS 1/20/2015 BOA CKG PMCHK00000620 $52.70 18611 DIRECT01 DIRECTV 1/20/2015 BOA CKG PMCHK00000620 $32.94 18612 FRYKLAND01 JOHN FRYKLAND 1/20/2015 BOA CKG PMCHK00000620 $170.00 18613 GIVE001 GIVE SOMETHING BACK 1/20/2015 BOA CKG PMCHK00000620 $231.61 18614 ICMA01 ICMA RETIREMENT TRUST - 457 1/20/2015 BOA CKG PMCHK00000620 $4,414.32 18615 LEXIS LEXIS NEXIS 1/20/2015 BOA CKG PMCHK00000620 $390.00 18616 PAPER01 PAPER CLIP INC. 1/20/2015 BOA CKG PMCHK00000620 $2,625.00 18617 PERS01 CalPERS 1/20/2015 BOA CKG PMCHK00000620 $300.00 18618 PERS03 CAL PERS 1/20/2015 BOA CKG PMCHK00000620 $8,922.32 18619 PETERS01 PETERS, HABIB, MCKENNA 1/20/2015 BOA CKG PMCHK00000620 $125.83 18620 PINS01 PINS 1/20/2015 BOA CKG PMCHK00000620 $125.00 18621 PRIMA01 PRIMA 1/20/2015 BOA CKG PMCHK00000620 $385.00 18622 RHTINNEY01 R. H. TINNEY, INC. 1/20/2015 BOA CKG PMCHK00000620 $811.00 18623 SMALL01 SMALL BUSINESS BENEFIT 1/20/2015 BOA CKG PMCHK00000620 $86.40 18624 SOUTHTECH SOUTHTECH SYSTEMS 1/20/2015 BOA CKG PMCHK00000620 $2,381.88 18625 TELE01 TELEPACIFIC COMM 1/20/2015 BOA CKG PMCHK00000620 $979.18 18626 VERIZ01 VERIZON WIRELESS 1/20/2015 BOA CKG PMCHK00000620 $193.44 18627 WELLS 06 WELLS FARGO 1/20/2015 BOA CKG PMCHK00000620 $97.19 REMIT000000000000049 RICOH01 GE CAPITAL 1/6/2015 PMCHK00000619 $0.00 -------------------- Total Checks: 49 Total Amount of Checks: $283,223.81 ====================

Page 23Page 23


Ranges: From: To: From: To: Check Number First Last Check Date 2/1/2015 2/28/2015 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 --------------------------------------------------------------------------------------------------------------------------------- 18628 ADP01 ADP, LLC 2/3/2015 BOA CKG PMCHK00000621 $221.28 18629 AMER02 AMERICAN APPRAISAL ASSOCIATES, 2/3/2015 BOA CKG PMCHK00000621 $22,500.00 18630 AON02 AON RISK CONSULTANTS, INC 2/3/2015 BOA CKG PMCHK00000621 $500.00 18631 AQUA01 AQUACHILL DRINKING WATER SYSTE 2/3/2015 BOA CKG PMCHK00000621 $42.51 18632 ATCONF01 AT CONFERENCE 2/3/2015 BOA CKG PMCHK00000621 $58.14 18633 CARM01 CHRIS CARMONA 2/3/2015 BOA CKG PMCHK00000621 $215.05 18634 CAROLCAKEBREAD CAROL CAKEBREAD 2/3/2015 BOA CKG PMCHK00000621 $96.36 18635 CLARE01 CLARE COMPUTER SOLUTIONS 2/3/2015 BOA CKG PMCHK00000621 $1,345.00 18636 CONEXIS01 CONEXIS 2/3/2015 BOA CKG PMCHK00000621 $105.00 18637 DEPT INDUST DEPARTMENT OF INDUSTRIAL RELAT 2/3/2015 BOA CKG PMCHK00000621 $225.00 18638 ENTERPRISE01 ENTERPRISE RENT-A-CAR 2/3/2015 BOA CKG PMCHK00000621 $34.72 18639 FEDEX01 FEDEX 2/3/2015 BOA CKG PMCHK00000621 $55.46 18640 GIBBONS GIBBONS & CONLEY 2/3/2015 BOA CKG PMCHK00000621 $9,780.09 18641 GIVE001 GIVE SOMETHING BACK 2/3/2015 BOA CKG PMCHK00000621 $542.32 18642 LIVERMORE CITY OF LIVERMORE 2/3/2015 BOA CKG PMCHK00000621 $6,238.19 18643 MARKET VUE 01 MARKETING VUE 2/3/2015 BOA CKG PMCHK00000621 $750.00 18644 PERS02 CALPERS MEDICAL 2/3/2015 BOA CKG PMCHK00000621 $6,113.77 18645 PERS03 CAL PERS 2/3/2015 BOA CKG PMCHK00000621 $4,461.16 18646 STAND002 STANDARD INSURANCE 2/3/2015 BOA CKG PMCHK00000621 $648.45 18647 THOMSON WEST THOMSON REUTERS - WEST 2/3/2015 BOA CKG PMCHK00000621 $244.14 18648 VANG01 VANGUARD CLEANING SYSTEMS, INC 2/3/2015 BOA CKG PMCHK00000621 $425.00 18649 ALAMEDA CITY OF ALAMEDA 2/4/2015 BOA CKG PMCHK00000623 $67,236.00 18650 CCCMRMIA C.C.C.M.R.M.I.A. 2/4/2015 BOA CKG PMCHK00000623 $89,013.00 18651 CSJVRMA C.S.J.V.R.M.A. 2/4/2015 BOA CKG PMCHK00000623 $232,526.00 18652 FREMONT CITY OF FREMONT 2/4/2015 BOA CKG PMCHK00000623 $103,966.00 18653 MANTECA CITY OF MANTECA 2/4/2015 BOA CKG PMCHK00000623 $10,564.00 18654 NCCSIF N.C.C.S.I.F. 2/4/2015 BOA CKG PMCHK00000623 $251,186.00 18655 PERMA PERMA 2/4/2015 BOA CKG PMCHK00000623 $324,337.00 18656 PETALUMA CITY OF PETALUMA 2/4/2015 BOA CKG PMCHK00000623 $12,469.00 18657 POMONA CITY OF POMONA 2/4/2015 BOA CKG PMCHK00000623 $118,755.00 18658 REDDING CITY OF REDDING 2/4/2015 BOA CKG PMCHK00000623 $57,142.00 18659 REMIF R.E.M.I.F. 2/4/2015 BOA CKG PMCHK00000623 $92,055.00 18660 ROSEVILLE CITY OF ROSEVILLE 2/4/2015 BOA CKG PMCHK00000623 $25,083.00 18661 SUNNYVALE CITY OF SUNNYVALE 2/4/2015 BOA CKG PMCHK00000623 $107,357.00 18662 VALLEJO CITY OF VALLEJO 2/4/2015 BOA CKG PMCHK00000623 $43,386.00 18663 YCPARMIA Y.C.P.A.R.M.I.A. 2/4/2015 BOA CKG PMCHK00000623 $138,821.00 18664 ADP01 ADP, LLC 2/24/2015 BOA CKG PMCHK00000624 $223.66 18665 AFLAC01 AFLAC 2/24/2015 BOA CKG PMCHK00000624 $50.67 18666 ALLIED01 ALLIED ADMINISTRATORS 2/24/2015 BOA CKG PMCHK00000624 $593.82 18667 AMERICAN EXPRES AMERICAN EXPRESS 2/24/2015 BOA CKG PMCHK00000624 $129.38 18668 BNY01 THE BANK OF NEW YORK MELLON 2/24/2015 BOA CKG PMCHK00000624 $2,961.39 18669 CONEXIS01 CONEXIS 2/24/2015 BOA CKG PMCHK00000624 $105.00 18670 CORODATA01 CORODATA RECORDS 2/24/2015 BOA CKG PMCHK00000624 $52.80 18672 GEARY,SHEA, O'D GEARY, SHEA, O'DONNELL 2/24/2015 BOA CKG PMCHK00000624 $80,198.16 18673 GIVE001 GIVE SOMETHING BACK 2/24/2015 BOA CKG PMCHK00000624 $185.18 18674 GLAD01 GLADSTONE INTERNATIONAL, INC. 2/24/2015 BOA CKG PMCHK00000624 $2,437.50 18675 LEXIS LEXIS NEXIS 2/24/2015 BOA CKG PMCHK00000624 $390.00 18676 MURPHY01 MURPHY, CAMPBELL, 2/24/2015 BOA CKG PMCHK00000624 $435.60 18677 ONLINE RISK01 ONLINE RISK SOLUTIONS 2/24/2015 BOA CKG PMCHK00000624 $2,500.00 18678 PERS03 CAL PERS 2/24/2015 BOA CKG PMCHK00000624 $4,461.16 18679 PETERS01 PETERS, HABIB, MCKENNA 2/24/2015 BOA CKG PMCHK00000624 $597.50 18680 RAWE01 DAVID RAWE 2/24/2015 BOA CKG PMCHK00000624 $493.35 18681 RICOH01 GE CAPITAL 2/24/2015 BOA CKG PMCHK00000624 $6,323.48 18682 ROSEVILLE CITY OF ROSEVILLE 2/24/2015 BOA CKG PMCHK00000624 $1,253.99 18683 SANTA ROSA CITY OF SANTA ROSA 2/24/2015 BOA CKG PMCHK00000624 $1,345.52 18684 SCHWARZ01 STEVE SCHWARZ 2/24/2015 BOA CKG PMCHK00000624 $1,473.36 18685 STOCKTON CITY OF STOCKTON 2/24/2015 BOA CKG PMCHK00000624 $1,558.15 18686 TELE01 TELEPACIFIC COMM 2/24/2015 BOA CKG PMCHK00000624 $997.20Page 24Page 24


* Voided Checks

Check Number Vendor ID Vendor Check Name Check Date Checkbook ID Audit Trail Code Amount --------------------------------------------------------------------------------------------------------------------------------- 18687 VERIZ01 VERIZON WIRELESS 2/24/2015 BOA CKG PMCHK00000624 $199.18 18688 VISTA GRANDE VISTA GRANDE LANDSCAPE MANAGEM 2/24/2015 BOA CKG PMCHK00000624 $755.00 -------------------- Total Checks: 60 Total Amount of Checks: $1,838,218.69 ====================

Page 25Page 25

Current Assets Cash 351,063$ Investments 92,394,689 Interest Receivable 403,107 Accounts Receivable 1,305 Prepaid Insurance 1,746,733 Other Prepaids 271,265 Deposits 2,793

Total Current Assets 95,170,955

Capital Assets Building & Improvements 2,821,324 Land 548,250 Equipment 385,393 Office Furniture 151,284 Accumulated Depreciation (554,542) Construction in Progress - Doolan Rd -

Capital Assets, Net 3,351,709

TOTAL ASSETS 98,522,664$

Current Liabilities Unearned Contributions 3,998,685$ Accounts Payable 54,646 Accrued Liabilities 637,877 Accrued Employee Benefits 413 Deferred Revenue -

Total Current Liabilities 4,691,621

Noncurrent Liabilities Reserve for Loss-Liability 50,252,817 OPEB Liability 273,514

Total Noncurrent Liabilities 50,526,331

TOTAL LIABILITIES 55,217,952

Net Assets Current Year Earnings (573,445) Retained Earnings-Liability 32,357,071 Retained Earnings-Property 85,231 Retained Earnings-Boiler & Machinery 8,069 Retained Earnings-Auto Physical Damage 8,207 Excess Loss Fund 13,606,772 Member Refunds - Liability (2,187,192)

TOTAL NET POSITION 43,304,713$

CJPRMASTATEMENT OF NET POSITION

As of February 28, 2015

Page 26Page 26

February % to YTD % to Net Income Net Income

Operating Revenues Member Contributions 997,274 (105.58) 7,957,747 (1,387.71) PY Member Contributions - - 5,835 (1.02) Fees Earned 916 (0.10) 7,328 (1.28) Appraisal Fees - 0.00 - 0.00

Total Operating Revenues 998,190 (105.67) 7,970,910 (1,390.00)

Claim Expense Settlements Paid - - 9,200,620 (1,604.45) Settlement Reimbursements (119,186) 12.62 (9,200,620) 1,604.45 Current Year Loss Provision 750,000 (79.40) 6,000,000 (1,046.31) Loss Reserve Adjustment (Prior Year) - - - 0.00 Insurance Premiums 436,684 (46.23) 3,335,377 (581.64) PY Premium Adj - 0.00 41,729 (7.28)

Total Claim Expense 1,067,498 (113.01) 9,377,106 (1,635.22)

Gross Profit (Loss) (69,308) 7.34 (1,406,196) 245.22

Operating Expenses Salaries 37,371 (3.96) 317,655 (55.39) PERS Contributions 5,907 (0.63) 53,133 (9.27) Health Benefits 6,638 (0.70) 53,802 (9.38) Life Insurance 143 (0.02) 1,902 (0.33) OPEB Expense - 0.00 - 0.00 Disability Insurance 506 (0.05) 3,605 (0.63) Office Liability/Property Insurance 2,018 (0.21) 15,542 (2.71) General Manager - Wellness Program 138 (0.01) 1,246 (0.22) Auto Allowance 923 (0.10) 7,846 (1.37) Payroll Tax Expense 537 (0.06) 4,537 (0.79) Payroll Services 474 (0.05) 3,113 (0.54) Admin - Training/Conferences/Travel/Mtgs 191 (0.02) 11,608 (2.02) Risk Mgmt -Conferences/Travel/Meetings 637 (0.07) 1,004 (0.18) Risk Mgmt - Training & Supplies - 0.00 1,800 (0.31) Temporary Services - 0.00 13,134 (2.29) Actuarial Services - 0.00 14,000 (2.44) Audit - Claims - 0.00 - 0.00 Audit - Financial - 0.00 18,070 (3.15) Web Site Maintenance 515 (0.05) 2,203 (0.38) Computer Programming - 0.00 - 0.00 Info Systems Technical Support 2,777 (0.29) 17,059 (2.97) Legal - Board Counsel - G&A 1,776 (0.19) 14,582 (2.54) Legal - Board Counsel - Claims - 0.00 - 0.00 Other Claim Expenses - 0.00 - 0.00 Legal - Outside - G&A - 0.00 - 0.00 Treasurer Fees - 0.00 1,200 (0.21) Taxes & Assesments 6,238 (0.66) 12,476 (2.18)

CJPRMASTATEMENT OF OPERATIONS

For the Eight Months Ending February 28, 2015All Departments

Page 27Page 27




Other Consultants - 0.00 - 0.00 Other Consultants - Property - 0.00 - 0.00 Claims Adjustment Fee - Property - 0.00 - 0.00 Bond Premiums 563 (0.06) 4,504 (0.79) Copying/Printing - 0.00 1,046 (0.18) Records Management 51 (0.01) 419 (0.07) Computer H/W & S/W Expensed 1,837 (0.19) 3,676 (0.64) Depreciation 12,831 (1.36) 102,679 (17.91) Dues/Memberships - 0.00 2,696 (0.47) Commision/Title/Escrow Charges - 0.00 - 0.00 CAJPA Accreditation - 0.00 5,365 (0.94) Equipment Rental 11,873 (1.26) 12,833 (2.24) Maintenance & Repair - Equipment - 0.00 2,352 (0.41) Capital Outlay - 0.00 - 0.00 Furniture & Equipment Expensed - 0.00 1,133 (0.20) Office Rent - 0.00 - 0.00 Utilities - DAVITA - 0.00 988 (0.17) Utilities - CJPRMA - 0.00 7,894 (1.38) Building CAM 2,785 (0.29) 12,882 (2.25) Office Supplies 703 (0.07) 6,271 (1.09) Janitorial Services & Supplies 425 (0.04) 4,766 (0.83) Postage/Shipping 222 (0.02) 1,539 (0.27) Publications 390 (0.04) 4,088 (0.71) Online Subscriptions 125 (0.01) 250 (0.04) Promotion/Advertising - 0.00 - 0.00 Telecommunications 1,329 (0.14) 12,688 (2.21) Personnel Recruitment - 0.00 1,663 (0.29) Workers' Comp. Insurance - 0.00 1,371 (0.24) Annual Meeting - 0.00 - 0.00 Board Meeting Expense 601 (0.06) 6,237 (1.09) Gen'l Liability - Training 655 (0.07) 5,287 (0.92) BOD - Brd Mtg Travel Expense 459 (0.05) 3,376 (0.59) BOD - Conferences 7,031 (0.74) 18,019 (3.14) Asset Management Fees - Chandler 8,003 (0.85) 62,334 (10.87) RMIS - Support 4,046 (0.43) 29,492 (5.14) Bank Charges 3,097 (0.33) 8,543 (1.49) Risk Control Online Service 6,181 (0.65) 38,405 (6.70) Other Expenses - 0.00 - 0.00 Contingency Fund - 0.00 - 0.00 Allocated G&A - Liability (916) 0.10 (7,328) 1.28 Allocated G&A - Property 833 (0.09) 6,664 (1.16) Allocated G&A - Boiler & Machinery - 0.00 - 0.00 Allocated G&A - Auto Physical Damage 83 (0.01) 664 (0.12)

Total Expense 129,997 (13.76) 932,315 (162.58)

Net Operating Income (Loss) (199,305) 21.10 (2,338,511) 407.80

Page 28Page 28




Investment Income Interest Income - Liability 136,155 (14.41) 1,108,382 (193.28) Realized Gain on Investment 3,235 (0.34) 488,463 (85.18) Unrealized Gain on Investment (913,038) 96.66 59,169 (10.32)

Total Investment Income (773,649) 81.90 1,656,014 (288.78)

Other Income/ Expense Gain on disposal of asset - 0.00 - 0.00 Other Income - 0.00 300 (0.05) Rental Income 28,346 (3.00) 108,752 (18.96)

28,346 (3.00) 109,052 (19.02)

Net Income (Loss) (944,608) 100.00 (573,445) 100.00

Page 29Page 29

February % to YTD % toNet Income Net Income

Operating Revenues Member Contributions 724,287 (68.40) 5,773,851 (966.97) Fees Earned - 0.00 - 0.00

Total Operating Revenues 724,287 (68.40) 5,773,851 (966.97)

Claim Expense Settlement Reimbursements - 0.00 - 0.00 Current Year Loss Provision 750,000 (70.83) 6,000,000 (1,004.84) Loss Reserve Adjustment (Prior Year) - 0.00 - 0.00 Insurance Premiums 158,823 (15.00) 1,211,039 (202.82)

Total Claim Expense 908,823 (85.83) 7,211,039 (1,207.66)

Gross Profit (Loss) (184,536) 17.43 (1,437,188) 240.69

Operating Expenses Salaries 37,371 (3.53) 317,655 (53.20) PERS Contributions 5,907 (0.56) 53,133 (8.90) Health Benefits 6,638 (0.63) 53,802 (9.01) Life Insurance 143 (0.01) 1,902 (0.32) OPEB Expense - 0.00 - 0.00 Disability Insurance 506 (0.05) 3,605 (0.60) Office Liability Insurance 2,018 (0.19) 15,542 (2.60) General Manager - Wellness Program 138 (0.01) 1,246 (0.21) Auto Allowance 923 (0.09) 7,846 (1.31) Payroll Tax Expense 537 (0.05) 4,537 (0.76) Payroll Services 474 (0.04) 3,113 (0.52) Admin - Training/Conferences/Travel/Mtgs 191 (0.02) 11,608 (1.94) Risk Mgmt - Conferences/Travel/Mtgs 637 (0.06) 1,004 (0.17) Risk Mgmt - Training & Materials - 0.00 1,800 (0.30) Temporary Services - 0.00 13,134 (2.20) Actuarial Services - 0.00 14,000 (2.34) Audit - Claims - 0.00 - 0.00 Audit - Financial - 0.00 18,070 (3.03) Web Site Maintenance 515 (0.05) 2,203 (0.37) Computer Programming - 0.00 - 0.00 Info Systems Technical Support 2,777 (0.26) 17,059 (2.86) Legal - Board Counsel - G&A 1,776 (0.17) 14,582 (2.44) Legal - Board Counsel - Claims - 0.00 - 0.00 Other Claim Expenses - 0.00 - 0.00 Legal - Outside - G&A - 0.00 - 0.00 Treasurer Fees - 0.00 1,200 (0.20) Taxes & Assesments 6,238 (0.59) 12,476 (2.09) Other Consultants - 0.00 - 0.00 Bond Premiums 563 (0.05) 4,504 (0.75) Copying/Printing - 0.00 1,046 (0.18) Records Management 51 (0.00) 419 (0.07) Computer H/W & S/W Expensed 1,837 (0.17) 3,676 (0.62)


For the Eight Months Ending February 28, 2015Liability

Page 30Page 30




Depreciation 12,831 (1.21) 102,679 (17.20) Dues/Memberships - 0.00 2,696 (0.45) Commision/Title/Escrow Charges - 0.00 - 0.00 CAJPA Accreditation - 0.00 5,365 (0.90) Equipment Rental 11,873 (1.12) 12,833 (2.15) Maintenance & Repair - Equipment - 0.00 2,352 (0.39) Capital Outlay - 0.00 - 0.00 Furniture & Equipment Expensed - 0.00 1,133 (0.19) Office Rent - 0.00 - 0.00 Utilities -DAVITA - 0.00 988 (0.17) Utilities - CJPRMA - 0.00 7,894 (1.32) Building CAM 2,785 (0.26) 12,882 (2.16) Office Supplies 703 (0.07) 6,271 (1.05) Janitorial Service & Supplies 425 (0.04) 4,766 (0.80) Postage/Shipping 222 (0.02) 1,539 (0.26) Publications 390 (0.04) 4,088 (0.68) Online Subscriptions 125 (0.01) 250 (0.04) Promotion/Advertising - 0.00 - 0.00 Telecommunications 1,329 (0.13) 12,688 (2.12) Personel Recruitment - 0.00 1,663 (0.28) Workers' Comp. Insurance - 0.00 1,371 (0.23) Annual Meeting - 0.00 - 0.00 Board Meeting Expense 601 (0.06) 6,237 (1.04) Gen'l Liability - Training 655 (0.06) 5,287 (0.89) BOD - Brd Mtg Travel Expense 459 (0.04) 3,376 (0.57) BOD - Conferences 7,031 (0.66) 18,019 (3.02) Asset Management Fees - Chandler 8,003 (0.76) 62,334 (10.44) RMIS - Hosting - 0.00 - 0.00 RMIS - Support 4,046 (0.38) 29,492 (4.94) Bank Charges 3,097 (0.29) 8,543 (1.43) Risk Control Online Service 6,181 (0.58) 38,405 (6.43) Other Expenses - 0.00 - 0.00 Contingency Fund - 0.00 - 0.00 Allocated G&A - Liability (916) 0.09 (7,328) 1.23

Total Expense 129,081 (12.19) 924,987 (154.91)

Net Operating Income (Loss) (313,617) 29.62 (2,362,175) 395.60

Investment Income Interest Income 136,155 (12.86) 1,108,382 (185.62) Realized Gain on Investment 3,235 (0.31) 488,463 (81.80) Unrealized Gain on Investment (913,038) 86.22 59,169 (9.91)

Total Investment Income (773,649) 73.06 1,656,014 (277.34)

Page 31Page 31




Other Income/Expense Gain on disposal of asset - 0.00 - 0.00 Other Income - 0.00 300 (0.05) Rental Income 28,346 (2.68) 108,752 (18.21)

28,346 (2.68) 109,052 (18.26)

Net Income (Loss) (1,058,920) 100.00 (597,109) 100.00

Page 32Page 32


Operating Revenues Member Contributions - Property 192,166$ 0.00 1,537,328$ 0.00 Member Contributions - Environ Pollution 16,191 0.00 129,528 0.00 PY Member Contributions - Property - 0.00 5,835 0.00 Loss Adjustment Contributions - 0.00 - 0.00 Fees Earned 833 0.00 6,664 0.00 Other Income - 0.00 - 0.00

Total Operating Revenues 209,190 0.00 1,679,355 0.00

Claim Expense Settlements Paid - 0.00 9,196,046 0.00 Settlement Reimbursements (119,186) 0.00 (9,196,046) 0.00 Insurance Premiums - Property 195,029 0.00 1,486,777 0.00 Insurance Premiums - Environ Pollution 16,234 0.00 129,872 0.00 PY Ins Premium Adj - 0.00 14,393 0.00

Total Claim Expense 92,077 0.00 1,631,042 0.00

Gross Profit (Loss) 117,113 0.00 48,313 0.00

Operating Expenses Claims Adjustment Fee - 0.00 - 0.00 Allocated G&A - Property 833 0.00 6,664 0.00 Other Consultants - Property - 0.00 - 0.00

Total Operating Expenses 833 0.00 6,664 0.00

Net Income (Loss) 116,280$ 100.00 41,649$ 100.00


For the Eight Months Ending February 28, 2015Property

Page 33Page 33


Operating Revenues Member Contributions 24,998$ 0.00 199,984$ 0.00

Total Operating Revenues 24,998 0.00 199,984 0.00

Claim Expense Settlements Paid - B&M - 0.00 - 0.00 Settlement Reimbursements - B&M - 0.00 - 0.00 Insurance Premiums 25,802 0.00 196,696 0.00 PY Ins Premium Adj - 0.00 1,991 0.00

Total Claim Expense 25,802 0.00 198,687 0.00

Operating Expenses Allocated G&A - B&M - 0.00 - 0.00

Total Operating Expenses - -

Investment Income - 0.00 - 0.00

Net Income (Loss) (804)$ 100.00 1,297$ 100.00


For the Eight Months Ending February 28, 2015Boiler and Machinery

Page 34Page 34


Operating Revenues Member Contributions 39,632$ 0.00 317,056$ 0.00 PY Member Contributions - - - 0.00 Fees Earned 83 0.00 664 0.00

Total Operating Revenues 39,715 0.00 317,720 0.00

Claim Expense Settlements Paid - APD - 0.00 4,574 0.00 Settlement Reimbursements - APD - 0.00 (4,574) 0.00 Insurance Premiums 40,796 0.00 310,993 0.00 PY Ins Premium Adj - 0.00 25,345 0.00

Total Claim Expense 40,796 0.00 336,338 0.00

Gross Profit (Loss) (1,081) 0.00 (18,618) 0.00

Operating Expenses Allocated G&A - Auto Physical Damage 83 0.00 664 0.00

Total Operating Expenses 83 0.00 664 0.00

Operating Income (Loss) (1,164) 0.00 (19,282) 0.00

Net Income (Loss) (1,164)$ 100.00 (19,282)$ 100.00


For the Eight Months Ending February 28, 2015Auto Physical Damage

Page 35Page 35

Annual Budget Budget Expense % of VarianceFY 14/15 YTD YTD Annual Budget under/ (over)

100% 67%

Personnel Salaries 502,000$ 334,667$ 317,655$ 63.3% 17,012$ Auto Allowance 12,000 8,000 7,846 65.4% 154 PERS Contributions 80,000 53,333 53,133 66.4% 201 Health Benefits 80,000 53,333 53,802 67.3% (469) Life Insurance 4,000 2,667 1,902 47.6% 765 OPEB Expense 70,000 46,667 - 0.0% 46,667 Disability Insurance 5,700 3,800 3,605 63.2% 195 Workers' Comp. Insurance 6,000 4,000 1,371 22.9% 2,629 Payroll Tax Expense 8,000 5,333 4,537 56.7% 796 General Manager - Wellness Program 1,800 1,200 1,246 69.2% (46)

Total Personnel Expenses 769,500 513,000 445,097 57.8% 67,903

Maintenance & Operation Office Rent - - - 0.0% - Utilities - DAVITA - - 988 0.0% (988) Utilities - CJPRMA 15,000 10,000 7,894 52.6% 2,106 Building Maintenance 27,000 18,000 12,882 47.7% 5,118 Equipment Rental 25,000 16,667 12,833 51.3% 3,834 Maintenance & Repair - Equipment 2,000 1,333 2,352 117.6% (1,018) Office Liability/Property Insurance 22,000 14,667 15,542 70.6% (876) Bond Premiums 6,800 4,533 4,504 66.2% 29 Payroll Services 4,500 3,000 3,113 69.2% (113) Tuition Reimbursement 500 333 - 0.0% 333 Office Supplies 8,500 5,667 6,271 73.8% (605) Janitorial Service & Supplies 7,000 4,667 4,766 68.1% (99) Telecommunications 18,000 12,000 12,688 70.5% (688) Postage/Shipping 3,000 2,000 1,539 51.3% 461 Personnel Recruitment - - 1,663 0.0% (1,663) Dues/Memberships 3,000 2,000 2,696 89.9% (696) Publications 12,000 8,000 4,088 34.1% 3,912 Online Subscriptions - - 250 0.0% (250) Copying/Printing 9,000 6,000 1,046 11.6% 4,954 Records Management 800 533 419 52.4% 114 Promotion/Advertising 1,000 667 - 0.0% 667 CAJPA Accreditation 6,000 4,000 5,365 89.4% (1,365) Furniture & Equipment Expensed 10,000 6,667 1,133 11.3% 5,533 Computer H/W & S/W Expensed 10,000 6,667 3,676 36.8% 2,991 Info SystemsTechnical Support 19,000 12,667 17,059 89.8% (4,393) Web Site Maintenance 2,400 1,600 2,203 91.8% (603) Computer Programming - - - 0.0% - Actuarial Services 16,000 10,667 14,000 87.5% (3,333) Audit - Financial 19,500 13,000 18,070 92.7% (5,070) Audit - Claims Primary 8,000 5,333 - 0.0% 5,333 Temporary Services 1,000 667 13,134 1313.4% (12,467)

CJPRMAACTUAL EXPENSES VS BUDGET

For the Eight Months Ending February 28, 2015

Page 36Page 36

Annual Budget Budget Expense % of VarianceFY 14/15 YTD YTD Annual Budget under/ (over)

100% 67%

CJPRMAACTUAL EXPENSES VS BUDGET

For the Eight Months Ending February 28, 2015

Legal - Board Counsel - G&A 30,000 20,000 14,582 48.6% 5,418 Legal - Board Counsel - Claims 85,000 56,667 82,667 97.3% (26,000) Legal - Outside - G&A 5,000 3,333 - 0.0% 3,333 Legal - Outside - Claims 400,000 266,667 502,652 125.7% (235,985) Other Claim Expenses 100,000 66,667 59,909 59.9% 6,758 Treasurer Fees 3,600 2,400 1,200 33.3% 1,200 Taxes & Assessments - - 12,476 0.0% (12,476) Other Consultants 10,000 6,667 - 0.0% 6,667 Admin - Conferences/Travel/Mtgs 22,000 14,667 11,608 52.8% 3,059 Risk Mgmt - Conferences/Travel/Mtgs 12,000 8,000 1,004 8.4% 6,996 Risk Mgmt -Training & Supplies 40,000 26,667 1,800 4.5% 24,867 Gen'l Liability - Training 12,000 8,000 5,287 44.1% 2,713 BOD - Brd Mtg Travel Exp 12,000 8,000 3,376 28.1% 4,624 BOD - Conferences 35,000 23,333 18,019 51.5% 5,314 Board Meeting Expense 15,000 10,000 6,237 41.6% 3,763 Annual Meeting 40,000 26,667 - 0.0% 26,667 Risk Control Online Serv 56,000 37,333 38,405 68.6% (1,072) Asset Management Fees 105,000 70,000 62,334 59.4% 7,666 RMIS - Support/Annual Fee 36,500 24,333 29,492 80.8% (5,159) Bank Charges 11,000 7,333 8,543 77.7% (1,210) Other Expenses 5,000 3,333 - 0.0% 3,333 Contingency Fund 20,000 13,333 - 0.0% 13,333

Total Maint. & Op. Expenses 1,312,100 874,733 1,029,766 78.5% (155,033)

Capital Outlay Capital Outlay 80,000 53,333 - 0.0% 53,333

Total Capital Outlay 80,000 53,333 - 0.0% 53,333

Subtotal 2,161,600 1,441,067 1,474,863 68.2% (33,796)

Less:Assessment Against Liability Reserve 585,000 390,000 645,228 110.3% (255,228) Assessment Against Interest 105,000 70,000 62,334 59.4% 7,666

Total G&A 1,471,600$ 981,067$ 767,301$ 52.1% 213,765$

Page 37Page 37

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Page 38Page 38

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Casualty Renewal: Staff will provide the Board of Directors with multiple alternatives to further stabilize the cost of programs moving to the future. CJPRMA has been offering two SIR’s to its members since inception. These attachment points are at $500,000 and $1,000,000 SIR. Historically, there was a $250,000 SIR but that program is no longer available to members. In addition, the Board authorized staff to provide a $2,500,000 SIR for the ABAG Plan should they join CJPRMA this year. When reviewing the overall cost of inflation, the U.S. inflation site reveals that a claim which would have cost $500,000 in 1986 based upon inflation would cost $1,070,812 today, for a total rate of cumulative inflation of 114.2%. In addition to the overall inflation rate, the cost of claims continues to rise as the severity continues to impact the organization. It will be interesting to apply the same rise of inflation to the cost of claims to determine if severity is truly on the rise or if we are simply experiencing the effects of inflation. Originally, CJPRMA provided coverage to a maximum limit of $10 million and retained the entire limit. In 2000 the organization started purchasing re-insurance and retained a total of $5,000,000. Since that time the cost of insurance has continued to rise. However, due largely to the excellent efforts of our members, CJPRMA staff, and good luck we have not exceeded our retention on any loss. We have on numerous occasions experienced claims that certainly were on the footsteps of our re-insurance program and virtually “knocking on the door”; we still have maintained that outstanding record. In light of that exceptional performance since 1986, perhaps it is the appropriate time to consider expanding the retention layer from the current mark to $7.5 million or $10 million. This conceptual change in the structure of the program should provide two benefits to our membership. The first being the reduction in the cost of reinsurance and the second being increased equity in the program that would result in additional re-distributions to members in the future. Aon and staff continue to evaluate multiple options for retention layers and multiple underwriting opportunities. AON Risk Services aggressively approached Munich Re., for a viable renewal option for the 2015-2016 program year. The preliminary quote provided by Munich Re honored the same quote provided by them for the 2014-2015 program year and the proposed renewal amount for the 2015-2016 program is $1,567,066. This quote provided CJPRMA a reduction over the 2013-2014 program year of approximately $66,000. Although this quote is somewhat greater than the cost provided by Starr Insurance Company, the quote remains approximately 4% less than the premium contributions for the 2013-2014 program. The Starr quote for 2014-2015 program was apparently too low for the marketplace evidenced by their rapid departure from the California Public Agency market. Munich Re. is currently evaluating a multi-year option and the final quote with options which will be provided at the meeting. Property Program: The Property Program has been placed with Munich Re. since 2007. Since that time we have experienced a very good relationship with Munich and the costs of coverage have been reasonable with minimal increases. In addition, our loss history over those years has been very good with no significant losses. The 2014-2015 program year CJPRMA property program participants have experienced significant property losses and one loss that exceeded the primary layer retention. The one event in Stockton alone has erased all positive banking layer that was previously held by Munich and we are now in a negative loss position. The property program participants were proactive in adopting a new vacant/unoccupied amendment to the current program and that amendment became effective January 1, 2015. The preliminary rate increase

Page 39Page 39

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quoted by Munich Re for the property program including the City of Stockton is 19%. Without the City of Stockton exposures, the rate increase was 5%. AON Risk Services was directed to market the property program if a satisfactory renewal option is not reached with Munich. The program participants may be asked to re-evaluate the current deductible attachment point of $25,000 and also look at the potential of experience rating for members that have made significant contributions to the cost of the program. We all understand that the benefit of pooling is that every member may experience losses and over time equal losses will not have a significant impact on costs. This year, due to the magnitude of the single loss, some flexibility in rating and an alternative to the current model may be presented. Based upon the Munich Re quote, AON approached several other markets for the property program. These carriers included XL Insurance and AIG. AIG Reinsurance is offering a program that would include the entire $300,000,000 of limits. The limits would be equal to the expiring programs, and would utilize the current Memorandum of Coverage and McLarens Young would remain as the property program adjuster. The preliminary quote received from AIG is for $1,651,200. This pricing for the program is approximately $469,000 less than the 2014-2015 cost and approximately 22% lower. This preliminary quote provides significant savings to the property program participants and will provide additional savings over the proposed renewal rate provided by Munich Re. The final details of the quote are being finalized and will be presented at the meeting. We are also pursuing a multi-year option with AIG on these programs. Hartford Steam Boiler has provided the Boiler & Machinery program for a number of years. We are anticipating a flat renewal for this program. AIG advised that Hartford Steam Boiler is their preferred partner for Boiler & Machinery Programs and there should be no conflicts on coverage issues. Auto Physical Damage: The Auto Physical Damage Program (APD) is currently insured by Hanover Insurance Company. This program has a history of being very cost effective for the membership. It is not uncommon for members to experience one or two losses in any given year. Three APD program participants Chico, Vacaville and Vallejo, have experienced losses at a greater frequency and severity than the other members of the program. Unfortunately, the City of Stockton just sustained an APD loss of a fire engine which will also have an impact on the renewal pricing. Preliminary indications from Hanover demonstrate they will be pursuing an increase in rate of the program. They are also exploring alternative deductibles and alternative higher cost vehicle deductibles (i.e. fire engines), for members that have experienced a higher than average frequency and severity of losses. The final quotation with specific deductible modification will be provided at the meeting. AON is also in the process of receiving alternative quotations from other carriers that provide APD coverage. Alternative pricing, if available, will be provided to the members of the APD program at the meeting. The Aon team will also be providing renewal quotes for the office/business package, pollution program, office earthquake program, and boiler & machinery program. Proposals for the new

Page 40Page 40

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cyber liability program will be provided at the June meeting. The renewal rates and proposed program costs will also be provided at the meeting. The general manager and Dr. Deeb have repeatedly discussed and evaluated the renewal options. Although many of the quotations were provided prior to preparing this agenda bill a number of the quotes were not yet finalized. In addition, the general manager provided additional direction to AON to refine the quotes that had been provided. Due to the fact that terms and conditions are still being negotiated and finalized, the final renewal quotes will be provided at the meeting.

The general manager will be prepared to recommend an insurance renewal program for CJPRMA once the quotes have been finalized.

Fiscal Impact:

1. Rates to be provided at the meeting Exhibits:

1. Aon handouts to be provided at the meeting

Page 41Page 41

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Page 42Page 42

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The general manager previously prepared a one-page synopsis of the application as submitted and the benefits to CJPRMA for adding PLAN as a member. This document is attached hereto and incorporated by reference to this agenda bill. Mr. Jim Hill, ABAG Risk Management Officer, attended the May 13, 2014 meeting and provided the Board of Directors with information regarding the operation of PLAN and their desire to further expand the pooling levels by joining CJPRMA. Mr. Hill will not be in attendance at this meeting as he previously provided the Board with all information required to effectively make a determination of the benefits of PLAN membership. The PLAN is a non-profit corporation formed in 1986, whose purpose is to benefit the citizens of each member community by establishing a stable, cost-effective self-insurance, risk sharing and risk management program. ABAG administers the plan under the direction of its member communities. The PLAN provides multiple lines of coverage including liability, property, auto physical damage and workers’ compensation. The PLAN is governed by a 29 member Board of Directors. James Hill, ABAG Risk Management Officer serves as the administrator of the program. The PLAN members are all Bay Area cities many being full service. The following is a list of the current members of the PLAN.

American Canyon Atherton Benicia Burlingame Campbell Colma Cupertino Dublin East Palo Alto Foster City Gilroy Half Moon Bay Hillsborough Los Altos Hills Los Gatos Millbrae Milpitas Morgan Hill Newark Pacifica Portola Valley Ross San Bruno San Carlos Saratoga South San Francisco Suisun City Tiburon Woodside

The PLAN’s current liability retention limit is $5M. Excess coverage for the current program year is in the amount of $10M in coverage limits excess of the $5M retention. PLAN also offers an optional $25M additional excess limit that is currently purchased by four members. The general manager has met with Mr. Hill and attended a PLAN Board of Directors Meeting. The PLAN board is very interested in joining CJPRMA but was overwhelmed with other issues at the time of the 2014-2015 renewal. The Board of Directors directed Mr. Hill to defer the decision to join CJPRMA until July 1, 2015. PLAN requested that CJPRMA consider the development of an additional pooled layer of $2M or $2.5M in addition to requesting a quote at the $1M retention limit. Based on discussions with Mr. Hill, staff prepared a rate for a program that includes a $2.5M excess of $2.5M retention. The estimated 2015-2016 PLAN payroll is $383,444,000. This payroll amount would increase the overall CJPRMA payroll for PY 2015-2016 of $1,493,769,000 by 25.7%.

Page 43Page 43

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Claims Administrator Craig Schweikhard performed a claims study at the ABAG-PLAN office on April 9, 2014. He reviewed 14 files on the initial claims loss run with reserves that exceeded $100,000. Reserve Review: Findings of the 14 files reviewed:

1. Since the initial report, four cases have settled substantially lower than the reserve. 2. On two cases the member has prevailed on MSJ and is on appeal with no adjustment on

reserves. 3. One case involves a significant coverage issue recognized by the pool, but still has a

large loss reserve. 4. One case involving successful risk transfer with no adjustment in reserves. 5. Two cases that have significant defenses to liability that are reserved substantially.

This item was reviewed by the Board of Directors at the 2014 meeting and was found to be acceptable. In addition Mr. Craig Bowlus, the auditor utilized by CJPRMA, recently performed a claims audit for PLAN and reviewed 100 claims. Mr. Bowlus commented that since PLAN hired York Risk Services to administer their claims, the claims process had significantly improved. The PLAN has hired a Claims Manager that has been very effective in managing all aspects of claim administration. Actuarial Analysis: Mujtaba Datoo, Aon Risk Services, performed an actuarial review of the ABAG PLAN for CJPRMA. Mr. Datoo performed the review of all claims submitted by PLAN and utilized the 10 year claims paid rolling average methodology to develop a pricing structure. Once the preliminary review was completed, staff directed AON to create loss allocation for a $2.5M layer excess of a $2.5M SIR. The intent of creating this layer was to provide a buffer layer for CJPRMA and to evaluate the option of PLAN dropping to a $1M SIR over time. The 2014 actuarial study for CJPRMA was used as the basis of the creation of the new program. The following chart shows the CJPRMA and PLAN premium with the current approved rate structure for the 2015-2016 program year. This is to demonstrate what the Plan premium would be if they were to attach at the current Pool C $4M excess of $1M. Projected 2015/2016 contributions as approved

Pool C Pool D Total CJPRMA 0.390 0.243 0.737

Payroll 1,493,769,000 1,493,769,000

Premium 5,825,699 3,629,859 $ 9,455,558

ABAG Payroll 383,444,000 383,444,000

Premium 1,495,432 931,769 $2,427,201

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PLAN’s contribution for PY 15/16 attaching at Pool C is $2,427,201. Also note this calculation estimates the overall cost of Pool D that includes administration overhead and reinsurance. This will not be confirmed until the Board of Directors approves the renewal quotes for the 2015/2016 program year. This rating plan does not include the individual rating based upon the actual experience that was calculated by Mujtaba Datoo. The above is being provided only as a comparison for the actual proposed contribution that will be explained below. $2.5M excess of $2.5M The following chart shows the loss rates, prepared by AON Risk Services, for the Pool C modified layer of $2.5M limit excess of a $2.5M self-insured retention layer based on the ten year rolling average.

$2.5M xs $2.5M 70% confidence-

undiscounted

CJPRMA excluding ABAG 0.184

CJPRMA including ABAG 0.197

ABAG stand-alone 0.248

The results of the actuarial study are based upon 10 years of trended, developed losses. The period utilized for the study was 2001/02 through 2010/11. This is the same period utilized for the most current actuarial report approved by the Board of Directors. The actuary provided the following comment regarding the PLAN losses:

For the layer from $2.5 million to $5 million, we estimate that the loss rate per $100 payroll including ABAG would be approximately 35% higher than the rate excluding ABAG. This is based on 10 years of trended, developed losses.

AON Risk Services also calculated the loss rate using the conventional actuarial method. Using this method, they estimated that the loss rate per $100 payroll including ABAG would be approximately 2.7% higher ($0.150) than the rate excluding ABAG ($0.146). At 70% confidence level, on an undiscounted basis, the loss rate including ABAG is $0.192. The intention of the implementation design is that the PLAN will share equally in all losses in Pool C; this would eliminate the requirement to add an additional pooling layer. ABAG would not stand-alone in the $2.5M xs of $2.5M layer; their losses would comingle with the existing CJPRMA members.

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Conventional method - 70% confidence – undiscounted

$2.5M xs $2.5M Rate Loss Premium

ABAG 0.192 $736,212

Per the actuary report utilizing a conventional calculation the required contribution from PLAN to fully fund the Pool C hybrid layer would be $736,212. Reinsurance: AON obtained a preliminary program renewal quote from Munich Re Insurance for PY 2015-2016 with a rate of $0.1049 per $100 of payroll. To date we are still awaiting the quote for the second layer of excess. AON provided Munich with exposure and claim data from the PLAN and they have presented an alternative quote to CJPRMA that includes their exposures. The proposed contribution including the PLAN would increase the total contribution by approximately 2%. The renewal quote without PLAN is $1,567,066. The proposed increase and the primary excess cost for PLAN will be $464,372. If PLAN accepts the proposal provided and chooses to become a member the total contribution to Munich Re for renewal will be $2,031,438. Staff recommends that the additional cost of reinsurance $464,372 be billed to PLAN. AON has also identified that a broker fee increase would be required if PLAN joins the CJPRMA program. The current annual broker fee is approximately $332,000 which also includes the cost of the annual claims audit. The fee proposed by AON for inclusion of PLAN is $60,000 per year. This fee also includes an allocation of $10,000 towards the annual audit.

Reinsurance $20M xs $5M $15M xs $25M Total

CJPRMA excluding ABAG 1,567,066 300,000 1,897,066

CJPRMA including ABAG 2,031,438

ABAG 464,372 85,000 549,372

Admin Fees/ELF: Total CJPRMA payroll, including the PLAN, for fiscal year 2015/2016 will be $1,877,212,603. The PLAN payroll of $383,444,000 accounts for 20.5% of the total payroll. The annual administration portion of the liability premium is $1,425,000. The PLAN portion of this cost would be 20.5% for a total of $292,125. The Excess Loss Fund (ELF) contribution for PY 2015-2016 would also be based upon the 20.5% payroll of the Plan and adjusted to 63% of the total layer. The 63% is based upon the relationship of the $2.5 million retention layer vs. the $1 million retention of all other members in Pool C. The normal annual ELF contribution by all the members is $2.25M. In order to

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maintain a lower premium for PY 15/16, it was recommended to reduce the total ELF contribution to $1M. Based on this amount, the PY 15/16 PLAN contribution to ELF will be $129,150. In addition, PLAN will be required to contribute one additional year of ELF paid over three years. This was the same methodology utilized when the City of Richmond joined CJPRMA. The additional year would be based on the total normal ELF contribution of $2.25M. The additional ELF contribution would be $290,587 ($96,862 for 3 years). The overall contribution by PLAN for ELF and administration for PY 15/16 would be $518,137. The contributions by PLAN, would create a future cost savings for existing members in reduced administration and ELF contributions.

Admin Cost ELF

Current Members 1,132,875 1,959,413

ABAG 292,125 290,587

Total Admin/ELF 1,425,000 2,250,000

The anticipated total contribution required for PLAN to join the CJPRMA program effective July 1, 2015 is $1,863,721.

Loss Premium 736,212 Admin Fee 292,125 Excess Loss Fund 226,012 Reinsurance 549,372 Broker Fee 60,000 Total PY 15/16 Premium 1,863,721

Other Information: The PLAN provides a very robust risk management training program. In addition, the PLAN funds for risk management incentives for their members. It has a number of key polices in place that promote effective management of risk for their members. The PLAN has established minimum standards for their members. Members are required to complete an annual self-audit of their programs with requirements and timelines for correction of deficiencies. Copies of all audits are provided to the PLAN for review and compliance. Policies provided to CJPRMA for review included the following:

Risk Management Policy Self Accountability & Accountability Model Claim Policy Liability Claims Procedure Manual Funding Policy

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Bylaws Staff has reviewed the policies provided by PLAN and have determined that the program appears to demonstrate a strong commitment to risk management and significant efforts to minimize risk. Copies of the above policies are attached hereto as exhibits. Recommendation: Both the AON Risk Services actuary and Munich Re have evaluated the PLAN data. They have identified historical losses to be slightly higher than the current experience of CJPRMA members. As we performed several evaluations of the PLAN program it appears that their reserving practices are far more conservative than the majority of CJPRMA members. This factor alone suggests that future rates for PLAN will reflect a positive impact on their overall loss history and a reduction on their required contributions. In addition, the most recent actuary report prepared by the PLAN’s consultant has shown their funding requirements are decreasing; a sign of improved loss history with favorable resolutions of significant claims. An additional factor for consideration is the opportunity for CJPRMA to increase our spread of risk by acquiring a new member. We all recall that we have experienced questionable results from two of our most recent additions PERMA and Pomona. However, more recently we expanded our membership by adding Richmond and they have become a very good member, not negatively impacting our program. The PLAN represents a significant increase in our overall membership. They currently represent a total increase in payroll by 24.9%, which would increase our total payroll base for program year 2015-2016 to approximately $1.85 billion. In addition, having a significant increase in payroll would also minimize the impact on attrition in the event that current members were considering leaving the CJPRMA program. This approach is a long-term solution for stabilizing our costs in the future. The PLAN membership is geographically consistent with many of our bay area members so we have a better understanding of the political realities of those agencies and the impact of the judicial climate in which they operate. The PLAN continues to review their operations to insure they are providing outstanding service to their members while always identifying ways to minimize losses. The cost savings and the overall stabilization of the membership base improve the current CJPRMA position and therefore will have an overall positive impact on our membership. Therefore, the general manager recommends that the Board of Directors approve the proposed rate and membership for Association of Bay Area Governments’ Pooled Liability Association Network PLAN for participation in the 2015-2016 program year. The general manager will be present to discuss the recommendation above.

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Fiscal Impact:

To be determined. The preliminary estimates indicate there will be an overall projected savings to existing CJPRMA members of approximately $583,000.

Exhibits:

1. ABAG PLAN application summary recommendation 2. AON actuary report dated May 12, 2015

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Association of Bay Area Governments, Pooled Liability Association Network

(ABAG-PLAN)

Summary of Recommendations

Retention: $2.5 million excess of $2.5 million (modified pool C), to $40 million pool limits

Cost Summary for 2015-2016 Program Year (estimate only)

PLAN Impact on current Members

Payroll $383,444,000 25.7% increase

Pool C Premium $736,212 None

Excess ($20 xs $5) $464,372 None

Excess ($15 xs $20) $85,000 None

Admin Fees $292,125 ($292,125)

ELF Contribution $226,012 ($129,150)

Broker Fee $60,000 None

Total contribution for PLAN: $1,863,721

Total saving for CJPRMA members: $421,275

Overall positive impacts to CJPRMA with PLAN membership:

1. Produce a significant increase in spread of risk by increasing payroll by 25.7%.

2. Stabilize membership and minimize impact on future attrition.

3. Meet long term objectives of controlled quality growth.

4. Long standing program with recognized Northern California members.

5. Effective management of program.

6. Commitment to cost saving by effective management of risk.

7. Members’ jurisdictional issues similar to existing members.

8. Reduction of contribution to ELF by current members.

9. Administration fee spread over larger payroll base.

10. ABAG-PLAN loss history demonstrating signs of improvement.

11. Three-year commitment to program.

12. Evaluating participation in the property program.

13. Development of alternate retention layer.

14. Marketability to new members based on overall size of the organization.

Other items for consideration:

1. Determine timing for inclusion of Employment Practices Coverage.

2. Offset any excess rate increases for three years.

3. Overall loss experience.

4. Establishing a set of requirements for the performance of the PLAN should the Board approve

membership.

Staff will be available to discuss the findings as listed above and assist with creating direction for the

Board of Directors in evaluating the ABAG-PLAN application.

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May 12, 2015 California Joint Power Risk Management Authority 3201 Doolan Road, Suite 285 Livermore, California 94551 Attn: Mr. David Clovis

General Manager

ABAG We have reviewed the liability claim and payroll information of ABAG. California Joint Powers Risk Management Authority (CJPRMA) requested that we estimate loss rates including ABAG in the layer $2.5 million excess of $2.5 million. Based on data in our most recent completed actuarial study of CJPRMA (report dated December 11, 2014), we estimate that CJPRMA’s expected loss rate for 2015/16 in the layer $2.5 million excess of $2.5 million is $0.144 per $100 of payroll. CJPRMA’s loss rate in this layer was not estimated in our actuarial study, but these estimates are based on loss and exposure data contained in that study. The expected loss rate for ABAG in the same layer is $0.194. Based on these indications, if ABAG were a member of CJPRMA, ABAG’s expected loss rate for liability would be approximately 35% higher than the average of the other CJPRMA members. The average loss rate including ABAG is $0.154, an increase of 7% from the $0.144 rate. These estimated rates are based on 10 years (2001/02 through 2010/11) of developed, trended pooled losses and are expected level, undiscounted. The loss rate for ABAG at 70% confidence level, undiscounted would be $0.248. We also calculated the loss rate using conventional actuarial methods. Using these methods, we estimate that the loss rate per $100 payroll including ABAG would be approximately 2.7% higher ($0.150 per $100 payroll) than the rate excluding ABAG ($0.146). These rates are calculated in the same manner as shown in Exhibit LI-15 (page 2) on page 62 of the actuarial study. At 70% confidence level, on an undiscounted basis, the loss rate including ABAG is $0.192. The calculations are based on loss data and exposure provided by CJPRMA. For ABAG, general liability and automobile liability claims are included. In our analysis, we relied on CJPRMA’s loss development patterns and trend assumptions. As discussed in the recent actuarial study, while pooled amounts are lower for the ten year period used in the current actuarial study (2001/02 through 2010/11) than in the prior study, there have been several large claims reported in 2011/12 and 2012/13. As these years will be included in the 10 year average in upcoming actuarial studies, an increase in funding amounts and loss rates may be realized. A summary of claims over $1 million is shown for both CJPRMA and ABAG in Table I-3 on page 4. �

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The conventional actuarial methods are based on a “base” rate limited to $250,000. We then apply increased limits factors to derive the $0.5 million to $5 million layers. The CJPRMA 2015/16 “base” rate at $250,000 is $1.34. Including ABAG, the 2015/16 “base” rate is $1.36. A summary of the loss data for ABAG (limited to $250,000) is in Table I-1.

Table I-1 ABAG

Summary of Loss Data Limited to $250,000

Claim Period (1)

Number of Claims

(2)

Total Paid (3)

Total Reserve

(4)

Total Incurred (3)+(4)

(5)

Total Payroll (000)

(6)

1997/98 833 $4,219,381 $0 $4,219,381 N/A

1998/99 817 2,929,745 29,698 2,959,443 N/A

1999/00 716 2,618,730 0 2,618,730 $259,327

2000/01 681 3,595,235 0 3,595,235 277,589

2001/02 798 3,988,405 0 3,988,405 308,709

2002/03 896 7,256,477 39,048 7,295,525 344,103

2003/04 761 4,665,304 0 4,665,304 359,641

2004/05 822 3,416,443 1 3,416,444 420,907

2005/06 801 5,161,143 31,366 5,192,510 429,762

2006/07 785 4,438,299 0 4,438,299 450,426

2007/08 891 5,992,737 2,980 5,995,717 476,093

2008/09 793 4,550,579 79,159 4,629,737 491,987

2009/10 689 4,532,586 131,137 4,663,723 476,031

2010/11 545 3,455,573 270,749 3,726,322 441,406

2011/12 532 4,395,033 1,280,393 5,675,426 374,330

2012/13 571 3,144,176 3,092,934 6,237,110 361,896

2013/14 505 1,019,898 1,900,915 2,920,813 348,305

Total 12,436 $69,379,744 $6,858,380 $76,238,124 $5,820,512

Note: Data was provided by CJPRMA and is valued as of December 31, 2014.

Payroll is from prior actuarial study for ABAG.

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A summary of the loss data for CJPRMA (limited to $250,000) is in Table I-2.

Table I-2 CJPRMA

Summary of Loss Data Limited to $250,000

Claim Period (1)

Number of Claims

(2)

Total Paid (3)

Total Reserve

(4)

Total Incurred (3)+(4)

(5)

Total Payroll (000)

(6)

1997/98 2,604 12,598,697 0 12,598,697 $847,077

1998/99 2,434 9,716,932 0 9,716,932 889,277

1999/00 2,642 13,507,099 65,529 13,572,627 957,847

2000/01 2,735 12,429,601 13,889 12,443,490 1,041,984

2001/02 2,888 13,777,845 3,659 13,781,504 1,133,786

2002/03 2,994 17,344,285 30,750 17,375,035 1,225,690

2003/04 2,792 15,979,497 287,627 16,267,124 1,272,635

2004/05 2,612 14,419,418 31,270 14,450,688 1,310,911

2005/06 2,685 16,004,366 13,866 16,018,231 1,382,986

2006/07 2,472 16,394,896 192,848 16,587,744 1,360,456

2007/08 2,542 19,844,163 203,109 20,047,272 1,469,423

2008/09 2,203 14,416,574 1,283,959 15,700,532 1,583,626

2009/10 2,233 14,590,849 1,083,036 15,673,885 1,645,677

2010/11 2,163 13,461,149 2,605,567 16,066,716 1,578,499

2011/12 1,923 10,040,585 5,985,535 16,026,120 1,516,744

2012/13 1,944 5,216,687 9,971,192 15,187,879 1,496,619

2013/14 1,539 2,440,001 6,846,414 9,286,415 1,455,653

Total 41,405 $222,182,644 $28,618,250 $250,800,891 $22,168,890

Note: Loss data was provided by CJPRMA and is valued as of June 30, 2014.

Loss and payroll amounts exclude PERMA, which is no longer a member of CJPRMA.

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A summary of claims with incurred amounts between $1 million and $5 million for both ABAG and CJPRMA is in Table I-3.

Table I-3 ABAG and CJPRMA

Summary of Loss Data for Claims with An Incurred Value Between $1 Million and $5 Million

ABAG CJPRMA (Pool C)

Claim Period (1)

Number of Claims

(2)

Total Incurred

(3)

Total Payroll (000)

(4)

Number of Claims

(5)

Total Incurred

(6)

Total Payroll (000)

(7)

2001/02 2 $1,452,906 $308,709 1 $81 $1,133,786

2002/03 2 3,575,194 344,103 3 1,712,410 1,225,690

2003/04 0 0 359,641 4 2,017,498 1,272,635

2004/05 1 40,367 420,907 4 4,573,973 1,310,911

2005/06 2 1,643,182 429,762 2 2,498,411 1,382,986

2006/07 0 0 450,426 4 5,897,098 1,360,456

2007/08 2 1,935,775 476,093 3 4,151,542 1,469,423

2008/09 1 120,835 491,987 4 104,381 1,583,626

2009/10 1 300,050 476,031 5 7,501,487 1,645,677

2010/11 0 0 441,406 2 272 1,578,499

2011/12 2 2,272,224 374,330 1 1,809,804 1,516,744

2012/13 0 0 361,896 3 5,000,000 1,496,619

2013/14 0 0 348,305 0 0 1,455,653

Total 13 $11,340,533 $5,283,596 36 $35,266,957 $18,432,705

Note: Data for ABAG was provided by CJPRMA and is valued as of December 31, 2014.

Data for CJPRMA was provided by CJPRMA and is valued as of June 30, 2014. Payroll amounts exclude PERMA, which no longer a member of CJPRMA.

In 2001/02 through 2013/14, ABAG has experienced three claims over $2.5 million and CJPRMA has had 13 such claims.

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A comparison of ABAG and other pool members of CJPRMA is in Table I-4, for amounts in the layers from $1 million and $5 million and $2.5 million to $5 million. The average amounts are based on 10 years (2001/02 through 2010/11) of developed, trended pooled losses and are expected level (except for column (8) which is at 70% confidence level) and undiscounted.

Table I-4 Comparison to Pool Members

Member (1)

$4 Million Excess of $1 Million $2.5 Million Excess of $2.5 Million 10-Year Average Ultimate

Loss (2)

2015/16 Payroll (000)

(3)

Implied Loss Rate(2)/(3)/10

(4)

10-Year AverageUltimate

Loss (5)

2015/16 Payroll (000)

(6)

Implied Loss Rate (5)/(6)/10

(7)

70% Level Implied

Loss Rate(8)

CJPRMA excl ABAG $4,552,334 $1,493,769 $ 0.305 2,146,913 $1,493,769 $ 0.144 $ 0.184

ABAG 1,981,443 383,444 0.517 743,546 383,444 0.194 0.248

CJPRMA incl ABAG 6,533,777 1,877,213 0.348 2,890,459 1,877,213 0.154 0.197

NCCSIF 1,032,330 140,704 0.734 447,560 140,704 0.318 0.407

REMIF 815,870 102,277 0.798 500,000 102,277 0.489 0.626

SCORE 0 19,957 0.000 0 19,957 0.000 0.000

YCPARMIA 0 187,386 0.000 0 187,386 0.000 0.000

Note: (2) and (5) are from Exhibit LI-15. CJPRMA amounts exclude PERMA.

(3) and (6) are based on 2014/15 payroll provided by CJPRMA and 2% trend.

As shown in Table I-4, the implied loss rates for NCCSIF and REMIF are higher than ABAG, while SCORE and YCPARMIA are lower. Please call with any questions you may have. Respectfully submitted, Aon Global Risk Consulting By

Mujtaba Datoo, ACAS, MAAA, FCA Actuarial Practice Leader

MD:blc X:\Clients\Actuarial\C\C.J.P.R.M.A. 438\2014_06_30\ABAG\CJPRMA_ABAG_051115.doc

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CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY Exhibit LI-1LIABILITY - INCLUDING ABAG

Data Summary as of June 30, 2014

ClaimPeriod

SpecificSelf-InsuredRetention

AggregateRetention

Months ofDevelopment

6/30/14Payroll(000)

ReportedClaims6/30/14

OpenClaims6/30/14

LimitedPaid

Losses6/30/14

LimitedCase

Reserves6/30/14

LimitedReportedIncurredLosses6/30/14

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)------------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------- --------------------- ---------------------

1997/98 $250,000 None 204.0 $1,091,518 3,437 0 $16,818,078 $0 $16,818,0781998/99 250,000 None 192.0 1,141,051 3,251 2 12,646,677 29,698 12,676,3751999/00 250,000 None 180.0 1,217,174 3,358 6 16,125,829 65,529 16,191,3582000/01 250,000 None 168.0 1,319,572 3,416 5 16,024,836 13,889 16,038,7252001/02 250,000 None 156.0 1,442,495 3,686 11 17,766,251 3,659 17,769,9102002/03 250,000 None 144.0 1,569,793 3,890 8 24,600,762 69,798 24,670,5592003/04 250,000 None 132.0 1,632,276 3,553 13 20,644,800 287,627 20,932,4272004/05 250,000 None 120.0 1,731,817 3,434 14 17,835,861 31,271 17,867,1322005/06 250,000 None 108.0 1,812,748 3,486 11 21,165,509 45,232 21,210,7412006/07 250,000 None 96.0 1,810,882 3,257 9 20,833,194 192,848 21,026,0432007/08 250,000 None 84.0 1,945,516 3,433 23 25,836,900 206,089 26,042,9892008/09 250,000 None 72.0 2,075,613 2,996 23 18,967,152 1,363,117 20,330,2702009/10 250,000 None 60.0 2,121,708 2,922 54 19,123,434 1,214,173 20,337,6072010/11 250,000 None 48.0 2,019,905 2,708 84 16,916,722 2,876,316 19,793,0382011/12 250,000 None 36.0 1,891,073 2,455 251 14,435,618 7,265,928 21,701,5462012/13 250,000 None 24.0 1,858,514 2,515 400 8,360,863 13,064,126 21,424,9892013/14 250,000 None 12.0 1,803,959 2,044 920 3,459,899 8,747,330 12,207,228

----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------Total 53,841 1,834 $291,562,386 $35,476,629 $327,039,015

Loss and exposure information for ABAG is included for 1997/98 through 2013/14. Loss data is valued as of December 31, 2014.

(8), (9) and (10) are net of specific self insured retention.

Data was provided by CJPRMA.

CJPRMA_LI_063014_2500Attachment_WithABAG.xlsx6

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Summary of Percent Losses Paid, Losses Reported and Claims Reported


Percent LimitedLosses

Paid

Percent LimitedLosses

Reported

PercentClaims

ReportedMonths of

Development

Percent ExcessLosses

Paid

Percent ExcessLosses

Reported

Percent ExcessClaims

Reported(1) (2) (3) (4) (5) (6) (7) (8)

------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------360.0 # 100.0% # 100.0% # 100.0% 360.0 # 100.0% # 100.0% # 100.0%348.0 # 100.0% # 100.0% # 100.0% 348.0 # 100.0% # 100.0% # 100.0%336.0 # 100.0% # 100.0% # 100.0% 336.0 # 100.0% # 100.0% # 100.0%324.0 # 100.0% # 100.0% # 100.0% 324.0 # 100.0% # 100.0% # 100.0%312.0 # 100.0% # 100.0% # 100.0% 312.0 # 99.9% # 100.0% # 100.0%300.0 # 100.0% # 100.0% # 100.0% 300.0 # 99.9% # 100.0% # 100.0%288.0 # 99.9% # 100.0% # 100.0% 288.0 # 99.9% # 99.9% # 100.0%276.0 # 99.9% # 100.0% # 100.0% 276.0 # 99.8% # 99.9% # 100.0%264.0 # 99.9% # 100.0% # 100.0% 264.0 # 99.8% # 99.9% # 100.0%252.0 # 99.8% # 100.0% # 100.0% 252.0 # 99.7% # 99.8% # 100.0%240.0 # 99.8% # 100.0% # 100.0% 240.0 # 99.5% # 99.7% # 100.0%228.0 # 99.7% # 100.0% # 100.0% 228.0 # 99.3% # 99.5% # 100.0%216.0 # 99.5% # 100.0% # 100.0% 216.0 # 99.0% # 99.3% # 100.0%204.0 # 99.3% # 100.0% # 100.0% 204.0 # 98.6% # 99.0% # 100.0%192.0 # 99.0% # 100.0% # 100.0% 192.0 # 98.0% # 98.5% # 100.0%180.0 # 99.0% # 100.0% # 100.0% 180.0 # 97.6% # 98.0% # 100.0%168.0 # 99.0% # 100.0% # 100.0% 168.0 # 97.1% # 97.5% # 100.0%156.0 # 98.8% # 100.0% # 100.0% 156.0 # 96.1% # 97.1% # 100.0%144.0 # 98.5% # 100.0% # 100.0% 144.0 # 94.7% # 96.1% # 100.0%132.0 # 98.0% # 100.0% # 100.0% 132.0 # 92.8% # 94.7% # 100.0%120.0 # 97.5% # 99.8% # 100.0% 120.0 # 90.7% # 92.8% # 99.9%108.0 # 96.5% # 99.5% # 100.0% 108.0 # 88.5% # 90.7% # 99.8%

96.0 # 95.1% # 99.0% # 100.0% 96.0 # 85.3% # 88.8% # 99.7%84.0 # 92.3% # 98.0% # 100.0% 84.0 # 81.3% # 87.7% # 99.2%72.0 # 87.9% # 96.1% # 100.0% 72.0 # 77.4% # 85.5% # 98.7%60.0 # 82.2% # 93.7% # 99.8% 60.0 # 68.8% # 82.1% # 97.3%48.0 # 74.7% # 89.7% # 99.3% 48.0 # 55.0% # 77.1% # 95.3%36.0 # 59.8% # 83.4% # 98.3% 36.0 # 38.1% # 67.9% # 93.0%24.0 # 33.2% # 74.2% # 93.6% 24.0 # 15.0% # 50.4% # 88.6%12.0 # 12.1% # 44.7% # 74.9% 12.0 # 3.1% # 12.0% # 26.6%

(2), (3), (4), (6), (7) and (8) are from the CJPRMA actuarial study dated 12/11/14.

7

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Developed Limited Paid Losses

ClaimPeriod


6/30/14

LimitedPaid

Losses6/30/14

PercentLosses

Paid

DevelopedLimited

PaidLosses(3)/(4)

(1) (2) (3) (4) (5)------------------------- ------------------------ ------------------------ ------------------------ ------------------------

1997/98 204.0 $16,818,078 99.3% $16,935,4531998/99 192.0 12,646,677 99.0% 12,773,1431999/00 180.0 16,125,829 99.0% 16,287,0872000/01 168.0 16,024,836 99.0% 16,185,0842001/02 156.0 17,766,251 98.8% 17,979,8012002/03 144.0 24,600,762 98.5% 24,971,1522003/04 132.0 20,644,800 98.0% 21,060,4082004/05 120.0 17,835,861 97.5% 18,295,7522005/06 108.0 21,165,509 96.5% 21,928,3652006/07 96.0 20,833,194 95.1% 21,907,8342007/08 84.0 25,836,900 92.3% 27,984,7362008/09 72.0 18,967,152 87.9% 21,571,0972009/10 60.0 19,123,434 82.2% 23,271,2542010/11 48.0 16,916,722 74.7% 22,644,5032011/12 36.0 14,435,618 59.8% 24,154,1622012/13 24.0 8,360,863 33.2% 25,181,4202013/14 12.0 3,459,899 12.1% 28,656,634

(3) is from Exhibit LI-1.


8

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Developed Limited Reported Incurred Losses

ClaimPeriod


6/30/14


PercentLosses

Reported

DevelopedLimited

ReportedIncurredLosses(3)/(4)

(1) (2) (3) (4) (5)------------------------- ------------------------ ------------------------ ------------------------ ------------------------

1997/98 204.0 $16,818,078 100.0% $16,818,0781998/99 192.0 12,676,375 100.0% 12,676,3751999/00 180.0 16,191,358 100.0% 16,191,3582000/01 168.0 16,038,725 100.0% 16,038,7252001/02 156.0 17,769,910 100.0% 17,769,9102002/03 144.0 24,670,559 100.0% 24,670,5592003/04 132.0 20,932,427 100.0% 20,932,4272004/05 120.0 17,867,132 99.8% 17,902,8662005/06 108.0 21,210,741 99.5% 21,323,5792006/07 96.0 21,026,043 99.0% 21,243,5872007/08 84.0 26,042,989 98.0% 26,575,5652008/09 72.0 20,330,270 96.1% 21,160,9422009/10 60.0 20,337,607 93.7% 21,697,7942010/11 48.0 19,793,038 89.7% 22,067,0592011/12 36.0 21,701,546 83.4% 26,009,4492012/13 24.0 21,424,989 74.2% 28,887,7432013/14 12.0 12,207,228 44.7% 27,322,357



9

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Developed Limited Case Reserves

ClaimPeriod


6/30/14

PercentLosses

Paid

PercentLosses

Reported

PercentLosses

Reserved6/30/14[(4)-(3)]/

[100.0%-(3)]

LimitedPaid

Losses6/30/14

LimitedCase

Reserves6/30/14

DevelopedLimitedCase

Reserves(6)+(7)/(5)

(1) (2) (3) (4) (5) (6) (7) (8)------------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------

1997/98 204.0 99.3% 100.0% 100.0% $16,818,078 $0 $16,818,0781998/99 192.0 99.0% 100.0% 100.0% 12,646,677 29,698 12,676,3751999/00 180.0 99.0% 100.0% 100.0% 16,125,829 65,529 16,191,3582000/01 168.0 99.0% 100.0% 100.0% 16,024,836 13,889 16,038,7252001/02 156.0 98.8% 100.0% 100.0% 17,766,251 3,659 17,769,9102002/03 144.0 98.5% 100.0% 100.0% 24,600,762 69,798 24,670,5592003/04 132.0 98.0% 100.0% 100.0% 20,644,800 287,627 20,932,4272004/05 120.0 97.5% 99.8% 92.1% 17,835,861 31,271 17,869,8292005/06 108.0 96.5% 99.5% 84.8% 21,165,509 45,232 21,218,8562006/07 96.0 95.1% 99.0% 79.1% 20,833,194 192,848 21,076,9252007/08 84.0 92.3% 98.0% 73.9% 25,836,900 206,089 26,115,8162008/09 72.0 87.9% 96.1% 67.5% 18,967,152 1,363,117 20,987,1492009/10 60.0 82.2% 93.7% 64.8% 19,123,434 1,214,173 20,996,3152010/11 48.0 74.7% 89.7% 59.3% 16,916,722 2,876,316 21,770,4862011/12 36.0 59.8% 83.4% 58.8% 14,435,618 7,265,928 26,785,2362012/13 24.0 33.2% 74.2% 61.3% 8,360,863 13,064,126 29,663,8092013/14 12.0 12.1% 44.7% 37.1% 3,459,899 8,747,330 27,049,022

0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%

(3) and (4) are from Exhibit LI-2.


10

Page 60Page 60


Preliminary Projected Ultimate Limited Losses to 2013/14

ClaimPeriod

DevelopedLimited

PaidLosses

DevelopedLimited

ReportedIncurredLosses


Reserves

PreliminaryProjectedUltimateLimitedLosses

(1) (2) (3) (4) (5)------------------------- ------------------------ ------------------------ ------------------------ ------------------------

1997/98 # $16,935,453 $16,818,078 $16,818,078 # $16,818,0781998/99 # 12,773,143 12,676,375 12,676,375 # 12,695,7291999/00 # 16,287,087 16,191,358 16,191,358 # 16,210,5042000/01 # 16,185,084 16,038,725 16,038,725 # 16,067,9972001/02 # 17,979,801 17,769,910 17,769,910 # 17,811,8882002/03 # 24,971,152 24,670,559 24,670,559 # 24,730,6782003/04 # 21,060,408 20,932,427 20,932,427 # 20,961,1902004/05 # 18,295,752 17,902,866 17,869,829 # 17,968,2292005/06 9 21,928,365 21,323,579 21,218,856 9 21,402,6472006/07 8 21,907,834 21,243,587 21,076,925 8 21,309,7722007/08 7 27,984,736 26,575,565 26,115,816 7 26,673,5002008/09 6 21,571,097 21,160,942 20,987,149 6 21,173,4562009/10 5 23,271,254 21,697,794 20,996,315 5 21,731,8942010/11 4 22,644,503 22,067,059 21,770,486 4 22,063,9192011/12 3 24,154,162 26,009,449 26,785,236 3 25,948,7062012/13 2 25,181,420 28,887,743 29,663,809 2 28,456,9052013/14 1 28,656,634 27,322,357 27,049,022 1 27,479,878

0 00 00 00 00 00 00 00 00 00 00 00 00 0




(5) is based on (2) to (4) and actuarial judgment.

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Bornhuetter - Ferguson Analysis

I. A-priori Loss Rate

ClaimPeriod


Payroll(000)

LimitedLoss Rateper $100 of

Payroll(2)/(3)/10

Loss RateTrend

(2014/15= 1.000)

TrendedLimited

Loss Rateper $100 of

Payroll(4)X(5)

ProjectedA-priori


Payroll(7)/(5)

(1) (2) (3) (4) (5) (6) (8)--------------------------- ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------

2004/05 # $17,968,229 $1,731,817 $1.04 1.219 $1.26 $1.102005/06 9 21,402,647 1,812,748 1.18 1.195 1.41 1.132006/07 8 21,309,772 1,810,882 1.18 1.172 1.38 1.152007/08 7 26,673,500 1,945,516 1.37 1.149 1.57 1.172008/09 6 21,173,456 2,075,613 1.02 1.126 1.15 1.202009/10 5 21,731,894 2,121,708 1.02 1.104 1.13 1.222010/11 4 22,063,919 2,019,905 1.09 1.082 1.18 1.242011/12 3 25,948,706 1,891,073 1.37 1.061 1.46 1.272012/13 2 28,456,905 1,858,514 1.53 1.040 1.59 1.292013/14 1 27,479,878 1,803,959 1.52 1.020 1.55 1.32

(7) Projected 2014/15 a-priori loss rate per $100 of Payroll $1.35

II. Bornhuetter - Ferguson Analysis Based on Limited Paid Losses

ClaimPeriod

LimitedPaid

Losses6/30/14

PercentLosses

Paid

ProjectedA-priori


PayrollPayroll(000)

B-FUnpaidLosses

[100.0%-(3)]X(4)X(5)X10

B-FUltimateLimited

PaidLosses(2)+(6)

(1) (2) (3) (4) (5) (6) (7)--------------------------- ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------

2009/10 # $19,123,434 82.2% $1.22 $2,121,708 $4,612,411 $23,735,8462010/11 # 16,916,722 74.7% 1.24 2,019,905 6,356,192 23,272,9142011/12 # 14,435,618 59.8% 1.27 1,891,073 9,655,179 24,090,7972012/13 # 8,360,863 33.2% 1.29 1,858,514 16,068,263 24,429,1262013/14 # 3,459,899 12.1% 1.32 1,803,959 20,940,581 24,400,479

III. Bornhuetter - Ferguson Analysis Based on Limited Reported Incurred Losses

ClaimPeriod


PercentLosses

Reported

ProjectedA-priori


PayrollPayroll(000)

B-FUnreported

Losses[100.0%-(3)]X(4)X(5)X10

B-FUltimateLimited

ReportedLosses(2)+(6)

(1) (2) (3) (4) (5) (6) (7)--------------------------- ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------

2009/10 # $20,337,607 93.7% $1.22 $2,121,708 $1,622,224 $21,959,8312010/11 # 19,793,038 89.7% 1.24 2,019,905 2,589,545 22,382,5832011/12 # 21,701,546 83.4% 1.27 1,891,073 3,974,531 25,676,0772012/13 # 21,424,989 74.2% 1.29 1,858,514 6,214,330 27,639,3192013/14 # 12,207,228 44.7% 1.32 1,803,959 13,175,385 25,382,613

Section I, (2) is from Exhibit LI-6.

Section I, (3), Section II, (5) and Section III, (5) are from Exhibit LI-10.

Section I, (5) is based on a 2% trend.

Section I, (7) is based on Section I, (6) and actuarial judgment.

Sections II and III, (2) are from Exhibit LI-1.

Sections II and III, (3) are from Exhibit LI-2.

Sections II and III, (4) are from Section I, (8).

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Frequency Times Severity Analysis

I. Projected Ultimate Claims

ClaimPeriod


6/30/14

ReportedClaims6/30/14

PercentClaims

Reported

ProjectedUltimateClaims(3)/(4)

Payroll(000)

Frequencyper $1M of

Payroll(5)/(6)X1,000

(1) (2) (3) (4) (5) (6) (7)------------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------

2004/05 120.0 3,434 100.0% 3,434 $1,731,817 1.982005/06 108.0 3,486 100.0% 3,486 1,812,748 1.922006/07 96.0 3,257 100.0% 3,257 1,810,882 1.802007/08 84.0 3,433 100.0% 3,433 1,945,516 1.762008/09 72.0 2,996 100.0% 2,996 2,075,613 1.442009/10 60.0 2,922 99.8% 2,928 2,121,708 1.382010/11 48.0 2,708 99.3% 2,727 2,019,905 1.352011/12 36.0 2,455 98.3% 2,497 1,891,073 1.322012/13 24.0 2,515 93.6% 2,686 1,858,514 1.452013/14 12.0 2,044 74.9% 2,729 1,803,959 1.51

II. Frequency Times Severity

ClaimPeriod


ProjectedUltimateClaims

AverageSeverity(2)/(3)

SeverityTrend

(2014/15= 1.000)

TrendedAverage

ClaimSeverity(4)X(5)

De-TrendedProjected2014/15Average

ClaimSeverity(7)/(5)

FrequencyTimes

Severity(3)X(8)

(1) (2) (3) (4) (5) (6) (8) (9)------------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------

2004/05 $17,968,229 3,434 $5,232 1.638 $8,572 $6,175 $21,203,9512005/06 21,402,647 3,486 6,140 1.559 9,574 6,487 22,614,2032006/07 21,309,772 3,257 6,543 1.484 9,711 6,815 22,197,7552007/08 26,673,500 3,433 7,770 1.413 10,977 7,160 24,581,1672008/09 21,173,456 2,996 7,067 1.345 9,503 7,523 22,537,6122009/10 21,731,894 2,928 7,422 1.280 9,500 7,903 23,140,5972010/11 22,063,919 2,727 8,091 1.218 9,857 8,303 22,642,5852011/12 25,948,706 2,497 10,392 1.160 12,051 8,723 21,781,9532012/13 28,456,905 2,686 10,595 1.104 11,694 9,165 24,616,2382013/14 27,479,878 2,729 10,070 1.051 10,579 9,628 26,275,840

(7) Projected 2014/15 average claim severity $10,116




Section II, (2) is from Exhibit LI-6.

Section II, (3) is from Section I, (5).

Section II, (5) is based on a 5.1% trend.

Section II, (7) is based on (6) and actuarial judgment.

13

Page 63Page 63


Projected Ultimate Limited Losses to 2013/14

ClaimPeriod

DevelopedLimited

PaidLosses

DevelopedLimited

ReportedIncurredLosses


Reserves

B-FUltimateLimited

PaidLosses

B-FUltimateLimited

ReportedLosses

FrequencyTimes

Severity

ProjectedUltimateLimitedLosses

(1) (2) (3) (4) (5) (6) (7) (8)------------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- ----------------------- -----------------------

1997/98 $16,935,453 $16,818,078 $16,818,078 $0 $0 $0 # $16,818,0781998/99 12,773,143 12,676,375 12,676,375 0 0 0 # 12,696,0001999/00 16,287,087 16,191,358 16,191,358 0 0 0 # 16,211,0002000/01 16,185,084 16,038,725 16,038,725 0 0 0 # 16,068,0002001/02 17,979,801 17,769,910 17,769,910 0 0 0 # 17,812,0002002/03 24,971,152 24,670,559 24,670,559 0 0 0 # 24,731,0002003/04 21,060,408 20,932,427 20,932,427 0 0 0 # 20,961,1902004/05 18,295,752 17,902,866 17,869,829 0 0 0 # 17,968,0002005/06 21,928,365 21,323,579 21,218,856 0 0 0 9 21,403,0002006/07 21,907,834 21,243,587 21,076,925 0 0 0 8 21,310,0002007/08 27,984,736 26,575,565 26,115,816 0 0 0 7 26,673,0002008/09 21,571,097 21,160,942 20,987,149 0 0 0 6 21,173,0002009/10 23,271,254 21,697,794 20,996,315 23,735,846 21,959,831 23,140,597 5 21,732,0002010/11 22,644,503 22,067,059 21,770,486 23,272,914 22,382,583 22,642,585 4 22,064,0002011/12 24,154,162 26,009,449 26,785,236 24,090,797 25,676,077 21,781,953 3 25,949,0002012/13 25,181,420 28,887,743 29,663,809 24,429,126 27,639,319 24,616,238 2 27,752,0002013/14 28,656,634 27,322,357 27,049,022 24,400,479 25,382,613 26,275,840 1 26,324,000

0000000000000






(8) is based on (2) to (7) and actuarial judgment.

14

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Projected Ultimate Limited Losses for 2014/15 and Subsequent

ClaimPeriod


Payroll(000)

LimitedLoss Rateper $100 of

Payroll(2)/(3)/10

Loss RateTrend

(2014/15= 1.000)

TrendedLimited


Payroll(4)X(5)

(1) (2) (3) (4) (5) (6)--------------------------- ------------------------ ------------------------ ------------------------ ------------------------ ------------------------

2004/05 $17,968,000 $1,731,817 $1.04 1.219 $1.262005/06 21,403,000 1,812,748 1.18 1.195 1.412006/07 21,310,000 1,810,882 1.18 1.172 1.382007/08 26,673,000 1,945,516 1.37 1.149 1.572008/09 21,173,000 2,075,613 1.02 1.126 1.152009/10 21,732,000 2,121,708 1.02 1.104 1.132010/11 22,064,000 2,019,905 1.09 1.082 1.182011/12 25,949,000 1,891,073 1.37 1.061 1.462012/13 27,752,000 1,858,514 1.49 1.040 1.552013/14 26,324,000 1,803,959 1.46 1.020 1.49

--------------------------- ------------------------ ------------------------ ------------------------ ------------------------ ------------------------Total $232,348,000 $19,071,734 $1.22 $1.36

ClaimPeriod

ProjectedLimited


Payroll

ProjectedPayroll(000)


(7)X(8)X10

PresentValueFactor

PresentValue of

ProjectedLimited


Payroll(7)X(10)

PresentValue of


(8)X(11)X10(1) (7) (8) (9) (10) (11) (12)

--------------------------- ------------------------ ------------------------ ------------------------ ------------------------ ------------------------ ------------------------17 2014/15 $1.33 $1,832,002 $24,457,000 0.94 $1.25 $22,948,000

2015/16 1.36 1,877,213 25,561,000 0.94 1.28 23,985,0002016/17 1.39 1,914,757 26,594,000 0.94 1.30 24,954,0002017/18 1.42 1,953,052 27,669,000 0.94 1.33 25,962,0002018/19 1.45 1,992,113 28,786,000 0.94 1.36 27,011,000


(3) was provided by CJPRMA.

(5) is based on a 2% trend.

(7) for 2014/15 is based on (6) and actuarial judgment.

(7) for 2015/16 and subsequent are based on 2014/15 plus a 2% trend.

(8) to 2015/16 was provided by CJPRMA. Other claim periods are based on a 2% trend.

(10) is based on a 2% interest rate and the payout pattern in Exhibit LI-2.

15

Page 65Page 65


Single Parameter Pareto Ratio to $100,000

Threshold

TrendedProjectedUltimateLosses

at or Above$100,000

ActualRatio to

$100,000

SingleParameter

Ratio to$100,000

(1) (2) (3) (4)-------------------------------- -------------------------------- -------------------------------- --------------------------------

100,000 755 100.00% 100.00%250,000 294 38.94% 36.24%500,000 138 18.28% 16.82%

1,000,000 38 5.03% 7.80%1,500,000 22 2.91% 4.98%2,000,000 12 1.59% 3.62%5,000,000 3 0.40% 1.31%

10,000,000 0 0.00% 0.61%

2,500,000 8 1.06% 2.83%

(2) is based on data for 2003/04 through 2012/13 provided by CJPRMA.

(3) is based on (2).

(4) is based on a parameter of 1.108.

16

Page 66Page 66


Projected Occurrences at or above $100,000 per $1,000,000 of Payroll for 2014/15

ClaimPeriod

ProjectedOccurrencesat or Above$100,000

PercentClaims

Reported

ProjectedUltimate

Occurrencesat or Above$100,000

(2)/(3)Payroll(000)

WageTrend

(2012/13)= 1.000)

TrendedPayroll(000)

(5)X(6)

Occurrencesat or Above

$100,000 per$1,000,000of Payroll(4)/(7)X

$1,000,000(1) (2) (3) (4) (5) (6) (7) (8)

-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------2004/05 68 99.9% 68 $1,731,817 1.331 $2,304,821 0.02952005/06 83 99.8% 83 1,812,748 1.292 2,342,261 0.03542006/07 89 99.7% 89 1,810,882 1.254 2,271,699 0.03922007/08 94 99.2% 95 1,945,516 1.218 2,369,509 0.04012008/09 65 98.7% 66 2,075,613 1.182 2,454,328 0.02692009/10 72 97.3% 74 2,121,708 1.148 2,435,761 0.03042010/11 74 95.3% 78 2,019,905 1.115 2,251,348 0.03462011/12 90 93.0% 97 1,891,073 1.082 2,046,365 0.04742012/13 79 88.6% 89 1,858,514 1.051 1,952,555 0.04562013/14 41 26.6% 154 1,803,959 1.020 1,840,038 0.0837

-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------Total/Average 755 893 $19,071,735 $22,268,686 0.0401

(9) Prior projected occurrences at or above $100,000 per $1,000,000 of payroll 0.0380

(10) Selected 2014/15 occurrences at or above $100,000 per $1,000,000 of payroll 0.0366

(2) is based on data provided by CJPRMA.


(5) is based on data provided by CJPRMA.


(9) is based on (8) and actuarial judgement.

17

Page 67Page 67


Projected Loss Rate per $100 of Payroll for 2014/15 - Single Parameter Pareto

Pool Pool Level

2014/15Projected

Occurrencesat or Above

$100,000 per$1,000,000of Payroll

SingleParameter

ParetoRatio

to $100,000

SingleParameter

ParetoAverage

OccurrenceSeverityin Layer

2014/15ProjectedLoss Rateper $100 of

Payroll(1) (2) (3) (4) (5) (6)

------------------- ------------------------------------------------ ------------------- ------------------- ------------------- -------------------Pool A $250,000 Excess of $250,000 $0.0366 36.24% $416,978 $0.2213Pool B $500,000 Excess of $500,000 0.0366 16.82% 833,955 0.2054Pool C $4,000,000 Excess of $1,000,000 0.0366 7.80% 2,477,690 0.4217Pool D $35,000,000 Excess of $5,000,000 0.0366 1.31% 8,339,551 0.1603

Pool C1 $3,500,000 Excess of $1,500,000 0.0366 4.98% 3,193,788 0.3085Pool C2 $3,000,000 Excess of $2,000,000 0.0366 3.62% 3,745,072 0.2311Pool C3 $2,500,000 Excess of $2,500,000 0.0366 2.83% 4,169,776 0.1727



(5) is based on Exhibit 3, by inference.

(6) for Pool A is based on (3)X(4)X((5)-250,000)/10,000.

(7) for Pool B is based on (3)X(4)X((5)-500,000)/10,000.

(8) for Pool C is based on (3)X(4)X((5)-1,000,000)/10,000.

(9) for Pool D is based on (3)X(4)X((5)-5,000,000)/10,000.

18

Page 68Page 68

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY Exhibit LI-14 (page 1)LIABILITY - INCLUDING ABAG

Projected Loss Rates per $100 of Payroll

I. Increased Limits Factor

Pool A Pool B Pool C Pool D-------------------- -------------------- -------------------- --------------------

(1) Insurance statistics 0.142 0.113 0.247 0.121(2) Single parameter pareto 0.166 0.154 0.316 0.120(3) Prior 0.140 0.118 0.233 0.098(4) Selected 0.147 0.126 0.257 0.113

II. Selected 2014/15 Loss Rate 0.196 0.168 0.343 0.151

III. Projected loss rates per $100 payroll

Year Pool A Pool B Pool C Pool D(1) (2) (3) (4) (5)

-------------------- -------------------- -------------------- -------------------- --------------------1986/87 0.064 0.049 0.085 0.0331987/88 0.067 0.051 0.089 0.0351988/89 0.070 0.053 0.094 0.0371989/90 0.073 0.055 0.099 0.0391990/91 0.076 0.058 0.104 0.0411991/92 0.079 0.061 0.109 0.0431992/93 0.082 0.064 0.115 0.0451993/94 0.085 0.067 0.121 0.0481994/95 0.088 0.070 0.127 0.0511995/96 0.092 0.073 0.133 0.0541996/97 0.096 0.076 0.140 0.0571997/98 0.100 0.079 0.147 0.0601998/99 0.104 0.083 0.154 0.0631999/00 0.108 0.087 0.162 0.0672000/01 0.112 0.091 0.170 0.0712001/02 0.117 0.095 0.179 0.0752002/03 0.122 0.099 0.188 0.0792003/04 0.127 0.103 0.198 0.0832004/05 0.132 0.108 0.208 0.0882005/06 0.137 0.113 0.219 0.0932006/07 0.143 0.118 0.230 0.0982007/08 0.149 0.123 0.242 0.1032008/09 0.155 0.129 0.254 0.1092009/10 0.161 0.135 0.267 0.1152010/11 0.167 0.141 0.281 0.1212011/12 0.174 0.147 0.295 0.1282012/13 0.181 0.154 0.310 0.1352013/14 0.188 0.161 0.326 0.1432014/15 0.196 0.168 0.343 0.1512015/16 0.204 0.175 0.357 0.157

2015/16 0.191 0.164 0.335 0.147(present value)

2015/16 0.220 0.198 0.429 0.221(present value, 70% confidence level)

Section I, (1) is based on ISO Premises/Operations Table 2.

Section I, (2) is based on Exhibit LI-13, by inference.

Section III, (2) to (5) are based on Section II and the following trend:Pool Trend-------------------- --------------------Pool A 4.0%Pool B 4.6%Pool C 5.1%Pool D 5.6%

Present value amounts are based on a 2% interest rate and the payout pattern in Exhibit LI-2 (page 1).

19

Page 69Page 69


Projected Loss Rates per $100 of Payroll

I. Increased Limits Factor3.5x1.5 2x3 2.5x2.5

Pool C1 Pool C2 Pool C3-------------------- -------------------- --------------------

(1) Insurance statistics 0.168 0.122 0.086(2) Single parameter pareto 0.231 0.173 0.129(3) Prior 0.166 0.121 0.106(4) Selected 0.188 0.134 0.107

II. Selected Loss Rate 0.251 0.179 0.143

III. Projected loss rates per $100 payroll

Year Pool C1 Pool C2 Pool C3(1) (2) (3) (3)

-------------------- -------------------- -------------------- --------------------2014/15 0.251 0.179 0.1432015/16 0.264 0.188 0.150

2015/16 0.338 0.241 0.192full value, 70% confidence level)

2015/16 0.248 0.176 0.141(present value)

2015/16 0.317 0.225 0.180(present value, 70% confidence level)

Pool C1 is $3,500,000 excess of $1,500,000. Pool C2 is $3,000,000 excess of $2,000,000. Pool C3 is $2,500,000 excess of $2,500,000.

Section I, (1) is based on ISO Premises/Operations Table 2.

Section I, (2) is based on Exhibit LI-13, by inference.

Section III, (2) and (3) are based on Section II and the following trend:

Pool Trend-------------------- --------------------Pool C 5.1%

Present value amounts are based on a 2% interest rate and the payout pattern in Exhibit LI-2 (page 1).

20

Page 70Page 70


2001/02 through 2010/11 Trended Developed LossesTen Years Excluding the Three Most Recent Years

ClaimNumber

ClaimPeriod


6/30/14

Pool BReportedIncurredLosses6/30/14

Pool CReportedIncurredLosses6/30/14

PercentLosses

Reported

LossTrend

(2015/16= 1.000)

Pool BDevelopedTrendedLosses

(4)/(6)x(7)

Pool CDevelopedTrendedLosses

(5)/(6)x(7)

Pool C3DevelopedTrendedLossesmax[(9)-

1,500,000; 0](1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------2001-2002-0003 2001/02 156 $81 97.1% 1.98 $0 $165 $02001-2002-0004 2001/02 156 837 97.1% 1.98 1,707 0 02001-2002-0012 2001/02 156 270 97.1% 1.98 551 0 02001-2002-0013 2001/02 156 27 97.1% 1.98 55 0 02001-2002-0019 2001/02 156 10,010 0 97.1% 1.98 20,419 0 02001-2002-0025 2001/02 156 1,485 97.1% 1.98 3,029 0 02001-2002-0029 2001/02 156 297 97.1% 1.98 606 0 02001-2002-0040 2001/02 156 3,375 97.1% 1.98 6,885 0 02001-2002-0042 2001/02 156 200 97.1% 1.98 408 0 02001-2002-0049 2001/02 156 68 97.1% 1.98 138 0 02002-2003-0012 2002/03 * 144 6,081 96.1% 1.89 0 11,931 02002-2003-0017 2002/03 144 2,274 96.1% 1.89 4,462 0 02002-2003-0020 2002/03 144 54 96.1% 1.89 0 106 02002-2003-0023 2002/03 * 144 22,986 96.1% 1.89 0 45,103 02002-2003-0024 2002/03 144 1,499 0 96.1% 1.89 2,940 0 02002-2003-0025 2002/03 144 500,000 1,709,303 96.1% 1.89 500,000 3,835,127 2,335,1272002-2003-0030 2002/03 144 4,200 0 96.1% 1.89 8,241 0 02002-2003-0043 2002/03 144 1,823 96.1% 1.89 3,576 0 02002-2003-0048 2002/03 144 1,490 96.1% 1.89 2,923 0 02002-2003-0070 2002/03 144 0 3,053 96.1% 1.89 0 5,990 02002-2003-0071 2002/03 144 2,870 0 96.1% 1.89 5,631 0 02003-2004-0002 2003/04 132 0 773,850 94.7% 1.80 0 1,467,844 02003-2004-0004 2003/04 132 6,012 0 94.7% 1.80 11,403 0 02003-2004-0006 2003/04 132 1,283 0 94.7% 1.80 2,433 0 02003-2004-0016 2003/04 132 1,526 0 94.7% 1.80 2,894 0 02003-2004-0025 2003/04 132 14,349 0 94.7% 1.80 27,217 0 02003-2004-0030 2003/04 132 5,670 0 94.7% 1.80 10,755 0 02003-2004-0035 2003/04 132 2,079 94.7% 1.80 3,943 0 02003-2004-0038 2003/04 132 0 41 94.7% 1.80 0 77 02003-2004-0040 2003/04 132 162 94.7% 1.80 307 0 02003-2004-0052 2003/04 132 645 94.7% 1.80 1,223 0 02003-2004-0056 2003/04 132 0 1,243,458 94.7% 1.80 0 2,358,600 858,6002003-2004-0063 2003/04 132 0 150 94.7% 1.80 0 285 02003-2004-0064 2003/04 132 187,614 0 94.7% 1.80 355,869 0 02003-2004-0066 2003/04 132 3,504 0 94.7% 1.80 6,647 0 02004-2005-0001 2004/05 120 1,418 0 92.8% 1.71 2,612 0 02004-2005-0017 2004/05 120 2,331 0 92.8% 1.71 4,296 0 02004-2005-0021 2004/05 * 120 0 4,000,000 92.8% 1.71 0 4,000,000 2,500,0002004-2005-0025 2004/05 120 95,219 0 92.8% 1.71 175,476 0 02004-2005-0031 2004/05 120 500,000 1,010,192 92.8% 1.71 500,000 2,283,081 783,0812004-2005-0041 2004/05 120 0 60 92.8% 1.71 0 111 02004-2005-0042 2004/05 120 62 0 92.8% 1.71 113 0 02004-2005-0044 2004/05 120 19,233 0 92.8% 1.71 35,443 0 02004-2005-0048 2004/05 120 500,000 3,560,701 92.8% 1.71 500,000 4,000,000 2,500,0002004-2005-0049 2004/05 120 2,376 0 92.8% 1.71 4,378 0 02004-2005-0055 2004/05 120 33 0 92.8% 1.71 61 0 02004-2005-0058 2004/05 120 335,852 0 92.8% 1.71 500,000 118,930 02004-2005-0061 2004/05 120 0 3,020 92.8% 1.71 0 5,565 02004-2005-0067 2004/05 * 120 0 1,237,364 92.8% 1.71 0 2,280,295 780,2952005-2006-0001 2005/06 108 465 0 90.7% 1.63 835 0 02005-2006-0003 2005/06 108 0 0 90.7% 1.63 0 0 02005-2006-0005 2005/06 108 102,287 0 90.7% 1.63 183,724 0 02005-2006-0007 2005/06 108 500,000 451,321 90.7% 1.63 500,000 1,208,725 02005-2006-0013 2005/06 * 108 0 17 90.7% 1.63 0 30 02005-2006-0014 2005/06 108 366,726 0 90.7% 1.63 500,000 158,698 02005-2006-0015 2005/06 108 500,000 2,047,090 90.7% 1.63 500,000 4,000,000 2,500,0002005-2006-0017 2005/06 108 3,638 0 90.7% 1.63 6,535 0 02005-2006-0019 2005/06 108 15 0 90.7% 1.63 27 0 02005-2006-0020 2005/06 108 423,044 0 90.7% 1.63 500,000 259,854 02005-2006-0026 2005/06 108 225 0 90.7% 1.63 404 0 02005-2006-0052 2005/06 * 108 0 358,557 90.7% 1.63 0 644,025 02005-2006-0060 2005/06 * 108 0 716,584 90.7% 1.63 0 1,287,099 02005-2006-0062 2005/06 108 135 0 90.7% 1.63 242 0 02005-2006-0065 2005/06 108 1,518 0 90.7% 1.63 2,727 0 02005-2006-0073 2005/06 108 276,500 0 90.7% 1.63 496,638 0 02005-2006-0074 2005/06 108 100,000 0 90.7% 1.63 179,616 0 02005-2006-0075 2005/06 108 4,630 0 90.7% 1.63 8,317 0 02006-2007-0002 2006/07 96 25,999 0 88.8% 1.55 45,410 0 02006-2007-0003 2006/07 96 30 0 88.8% 1.55 52 0 02006-2007-0005 2006/07 96 240 0 88.8% 1.55 419 0 02006-2007-0013 2006/07 96 500,000 447,548 88.8% 1.55 500,000 1,154,966 02006-2007-0014 2006/07 96 500,000 216,126 88.8% 1.55 500,000 750,770 02006-2007-0022 2006/07 96 0 0 88.8% 1.55 0 0 0

21

Page 71Page 71



ClaimNumber

ClaimPeriod


6/30/14



PercentLosses

Reported

LossTrend

(2015/16= 1.000)


(4)/(6)x(7)


(5)/(6)x(7)


1,500,000; 0](1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------------------------------- -------------------- --------------------2006-2007-0030 2006/07 96 $126,902 $0 88.8% 1.55 $221,643 $0 $02006-2007-0032 2006/07 * 96 6,032 0 88.8% 1.55 10,535 0 02006-2007-0034 2006/07 * 96 0 233,176 88.8% 1.55 0 407,260 02006-2007-0040 2006/07 96 100,633 0 88.8% 1.55 175,763 0 02006-2007-0047 2006/07 96 1,469 0 88.8% 1.55 2,565 0 02006-2007-0048 2006/07 96 500,000 3,518,038 88.8% 1.55 500,000 4,000,000 2,500,0002006-2007-0068 2006/07 96 500,000 1,715,386 88.8% 1.55 500,000 3,369,341 1,869,3412006-2007-0070 2006/07 96 118 0 88.8% 1.55 207 0 02006-2007-0072 2006/07 96 2,633 0 88.8% 1.55 4,599 0 02007-2008-0001 2007/08 84 528 0 87.7% 1.48 889 0 02007-2008-0009 2007/08 84 21,558 0 87.7% 1.48 36,308 0 02007-2008-0010 2007/08 84 1,542 0 87.7% 1.48 2,596 0 02007-2008-0023 2007/08 84 1,096 0 87.7% 1.48 1,845 0 02007-2008-0027 2007/08 * 84 500,000 171,210 87.7% 1.48 500,000 630,471 02007-2008-0031 2007/08 84 500,000 4,129,941 87.7% 1.48 500,000 4,000,000 2,500,0002007-2008-0035 2007/08 84 186 87.7% 1.48 0 313 02007-2008-0036 2007/08 84 129,947 0 87.7% 1.48 218,861 0 02007-2008-0045 2007/08 * 84 0 338,213 87.7% 1.48 0 569,629 02007-2008-0042 2007/08 84 83 0 87.7% 1.48 139 0 02007-2008-0049 2007/08 84 0 0 87.7% 1.48 0 0 02007-2008-0058 2007/08 84 500,000 21,415 87.7% 1.48 500,000 378,182 02007-2008-0059 2007/08 84 51 0 87.7% 1.48 85 0 02007-2008-0060 2007/08 84 1,155 0 87.7% 1.48 1,945 0 02007-2008-0062 2007/08 84 372,827 0 87.7% 1.48 500,000 127,927 0

2007-2008-0065 2007/08 84 19,865 0 87.7% 1.48 33,458 0 02008-2009-0005 2008/09 72 1,271 0 85.5% 1.41 2,090 0 02008-2009-0010 2008/09 72 279,465 0 85.5% 1.41 459,759 0 02008-2009-0014 2008/09 72 413 0 85.5% 1.41 679 0 02008-2009-0025 2008/09 72 998 0 85.5% 1.41 1,642 0 02008-2009-0034 2008/09 72 0 288 85.5% 1.41 0 473 02008-2009-0038 2008/09 72 0 924 85.5% 1.41 0 1,520 02008-2009-0043 2008/09 72 17,409 0 85.5% 1.41 28,640 0 02008-2009-0044 2008/09 72 500,000 102,862 85.5% 1.41 500,000 491,792 02008-2009-0048 2008/09 72 1,953 0 85.5% 1.41 3,213 0 02008-2009-0050 2008/09 72 0 308 85.5% 1.41 0 506 02009-2010-0002 2009/10 60 500,000 3,000,000 82.1% 1.34 500,000 4,000,000 2,500,0002009-2010-0003 2009/10 60 425,000 0 82.1% 1.34 500,000 193,938 02009-2010-0005 2009/10 60 0 2,000,000 82.1% 1.34 0 3,265,590 1,765,5902009-2010-0011 2009/10 60 0 1,487 82.1% 1.34 0 2,427 02009-2010-0015 2009/10 60 330 0 82.1% 1.34 539 0 02009-2010-0020 2009/10 60 17 0 82.1% 1.34 27 0 02009-2010-0023 2009/10 60 66 0 82.1% 1.34 108 0 02009-2010-0026 2009/10 60 1,796 82.1% 1.34 2,932 0 02009-2010-0027 2009/10 60 0 0 82.1% 1.34 0 0 02009-2010-0029 2009/10 60 0 750,000 82.1% 1.34 0 1,224,596 02009-2010-0030 2009/10 60 50 0 82.1% 1.34 81 0 02009-2010-0034 2009/10 60 0 1,750,000 82.1% 1.34 0 2,857,392 1,357,3922009-2010-0059 2009/10 60 1,302 0 82.1% 1.34 2,126 0 02010-2011-0006 2010/11 48 68 0 77.1% 1.28 112 0 02010-2011-0007 2010/11 48 231 0 77.1% 1.28 383 0 02010-2011-0015 2010/11 48 0 73 77.1% 1.28 0 121 02010-2011-0018 2010/11 48 1,595 0 77.1% 1.28 2,641 0 02010-2011-0020 2010/11 48 507 0 77.1% 1.28 840 0 02010-2011-0022 2010/11 48 17 0 77.1% 1.28 28 0 0

2010-2011-0036 2010/11 48 0 198 77.1% 1.28 0 328 02010-2011-0055 2010/11 48 66,238 0 77.1% 1.28 109,714 0 0ABGV10232 2001/02 162 500,000 391,201 97.3% 1.98 500,000 1,313,451 0ABGV10614 2001/02 162 500,000 1,061,705 97.3% 1.98 500,000 2,677,817 1,177,817ABGV10508 2001/02 162 180,202 0 97.3% 1.98 366,683 0 0ABGV11189 2002/03 150 500,000 797,323 96.6% 1.89 500,000 2,032,962 532,962ABGV11513 2002/03 150 500,000 2,777,870 96.6% 1.89 500,000 4,000,000 2,500,000ABGV12145 2002/03 150 53,523 0 96.6% 1.89 104,501 0 0ABGV13175 2003/04 138 372,470 0 95.4% 1.80 500,000 201,244 0ABGV13207 2004/05 126 108,687 0 93.7% 1.71 198,298 0 0ABGV13459 2004/05 126 500,000 40,367 93.7% 1.71 500,000 485,895 0ABGV14621 2005/06 114 500,000 1,445,979 91.7% 1.63 500,000 2,954,887 1,454,887ABGV14827 2005/06 114 500,000 197,203 91.7% 1.63 500,000 737,813 0ABGV19388 2006/07 102 58,827 0 89.8% 1.55 101,677 0 0ABGV15693 2007/08 90 500,000 183,478 88.3% 1.48 500,000 643,974 0ABGV17911 2007/08 90 423,472 0 88.3% 1.48 500,000 208,787 0ABGV16200 2007/08 90 500,000 1,752,297 88.3% 1.48 500,000 3,269,790 1,769,790ABGV16472 2007/08 90 24,758 0 88.3% 1.48 41,439 0 0ABGV17339 2008/09 78 28,646 0 86.6% 1.41 46,531 0 0ABGV17413 2008/09 78 500,000 120,835 86.6% 1.41 500,000 508,437 0ABGV17880 2008/09 78 234,439 0 86.6% 1.41 380,804 0 0ABGV17627 2009/10 66 500,000 300,050 83.8% 1.34 500,000 779,373 0ABGV18538 2009/10 66 144,482 0 83.8% 1.34 231,044 0 0ABGV19353 2010/11 54 300,000 0 79.6% 1.28 481,231 0 0------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------------------------------- -------------------- --------------------

Total $18,030,207 $44,609,648 $20,910,790 $75,213,614 $32,184,882

22

Page 72Page 72



ItemClaimPeriod


6/30/14



PercentLosses

Reported

LossTrend

(2015/16= 1.000)


(4)/(6)x(7)


(5)/(6)x(7)


1,500,000; 0](1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

------------------------ -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------I. Including PERMA

2001/02 156 $1,196,771 $1,452,987 97.1% 1.98 $1,400,481 $3,991,434 $1,177,8172002/03 144 1,567,677 5,316,670 96.1% 1.89 1,632,274 9,931,219 5,368,0892003/04 132 595,313 2,017,498 94.7% 1.80 922,690 4,028,049 858,6002004/05 120 2,065,209 9,851,703 92.8% 1.71 2,420,678 13,173,876 6,563,3752005/06 108 3,279,183 5,216,751 90.7% 1.63 3,879,065 11,251,131 3,954,8872006/07 96 2,322,882 6,130,274 88.8% 1.55 2,562,870 9,682,337 4,369,3412007/08 84 3,496,881 6,596,740 87.7% 1.48 3,837,567 9,829,074 4,269,7902008/09 72 1,564,593 225,216 85.5% 1.41 1,923,357 1,002,728 02009/10 60 1,573,043 7,801,537 82.1% 1.34 1,736,857 12,323,317 5,622,9822010/11 48 368,656 272 77.1% 1.28 594,950 450 0

-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------Total $18,030,207 $44,609,648 $20,910,790 $75,213,614 $32,184,882

10 year average $1,803,021 $4,460,965 $2,091,079 $7,521,361 $3,218,488

II. Excluding PERMA2001/02 156 $1,196,771 $1,452,987 97.1% 1.98 $1,400,481 $3,991,434 $1,177,8172002/03 144 1,567,677 5,287,604 96.1% 1.89 1,632,274 9,874,185 5,368,0892003/04 132 595,313 2,017,498 94.7% 1.80 922,690 4,028,049 858,6002004/05 120 2,065,209 4,614,340 92.8% 1.71 2,420,678 6,893,581 3,283,0812005/06 108 3,279,183 4,141,594 90.7% 1.63 3,879,065 9,319,976 3,954,8872006/07 96 2,316,851 5,897,098 88.8% 1.55 2,552,336 9,275,077 4,369,3412007/08 84 2,996,881 6,087,317 87.7% 1.48 3,337,567 8,628,973 4,269,7902008/09 72 1,564,593 225,216 85.5% 1.41 1,923,357 1,002,728 02009/10 60 1,573,043 7,801,537 82.1% 1.34 1,736,857 12,323,317 5,622,9822010/11 48 368,656 272 77.1% 1.28 594,950 450 0

-------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- -------------------- --------------------Total $17,524,176 $37,525,461 $20,400,255 $65,337,769 $28,904,587

10 year average $1,752,418 $3,752,546 $2,040,026 $6,533,777 $2,890,459

I. Including ABAG 10 year average 2,890,4592015/16 payroll 1,877,213

Loss rate per $100 payroll 0.154

II. Excluding ABAG 10 year average 2,146,9132015/16 payroll 1,493,769

Loss rate per $100 payroll 0.144

* - PERMA claim

(4) and (5) were provided by CJPRMA.



23

Page 73Page 73

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Page 74Page 74

Back to Agenda

A list of Redding’s APD claims for the period of 2007 to present has been provided for review. A review of the claims revealed a total of five losses that would have been eligible for recovery from the program. The losses occurred in 2007, 2008, 2011, 2013 and 2014. The total claim recovery for entire period for all losses reported would have been $226,000. A review of the annual average loss data for the eight-year period would be $28,250 per year. This loss experience is favorable to the program. A copy of the claims data for 2007 to present has been included with this agenda bill. Staff recommends approval of the request of the City of Redding to join the APD program.

Fiscal Impact:

There is no direct fiscal impact because any premium generated goes directly to the insurer.

Exhibits: 1. Letter from City of Redding, dated May 4, 2014, includes loss data.

Page 75Page 75

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Page 78

Back to Agenda

In June 2004, the Governmental Accounting Standards Board (GASB) issued Accounting Statement Number 45 that requires public agencies providing post-employment benefits (such as medical insurance) to disclose the long term cost associated with those benefits. Specifically, GASB 45 establishes rules for the measurement, recognition and display of OPEB expenses and expenditures, related liabilities and assets and note disclosures in the Authority’s financial reports. While GASB 45 does not require an agency to prefund the long term liability nor to adopt or create an IRC 115 Trust, there are significant policy reasons why it is prudent to do so. They include:

Greater rate of return which lowers liabilities and Annual Required Contributions (ARC) Agencies that prefund use higher discount rate

Demonstrates prudent financial management Contributions into the trust are “assets” that offset liabilities on financial statements Expected GASB changes will affect balance sheet

GFOA recommends prefunding OPEB and considers it “best practice”

OPEB assets are accessible for OPEB expenses at any time

The latest valuation report for the CJPRMA OPEB is as of 06/30/2014. As of this date the unfunded actuarial accrued liability (UAAL) was $398,355 with a discount rate of 3.25% (baseline). By prefunding and increasing the discount rate to 5.5%, the UAAL reduces to $300,127. Staff has reviewed the programs for creating and funding a post retirement plan and trust with two organizations: Public Agency Retirement Services (PARS) and CalPERS (CERBT), both are IRS approved 115 OPEB Trusts. Under PARS, the OPEB Trust Team consists of: PARS as Trust Administrator and Consultant, US Bank as Trustee, and HighMark Capital management as the Investment Manager. Under CERBT, internal CalPERS investment staff and their partner StateStreet Global Advisors manages investments. The CalPERS Board sets the investment policy and asset allocation. In reviewing the two plans it was evident that there were many similarities; the chart below points out a few differences between the plans. PARS CalPERS Asset allocation strategies 5 or can customize 3 Investment Management HighMark Capital Mgmt. StateStreet Global

Advisors OPEB Trust Services 19 yrs. 8 yrs. Statement frequency Monthly Quarterly Disbursements Option to disburse directly to

retiree Disbursement to entity only

Program Fees Admin 0.25% Trustee/Invest Mgmt Fee 0.35%

Total Service Cost 0.10%

Agencies 140 427

Page 79

Back to Agenda

PARS v. CERBT Performance Comparison (As of December 31, 2014)

Portfolio 3 Months 1 Year 3 Years 5 Years PARS Capital Appreciation

2.27% 6.05% 13.26% 10.12%

CERBT Strategy 1 0.96% 5.22% 11.49% 9.29% The chart above compares the most aggressive strategies for PARS and CERBT. The reason this strategy was used for comparison is because the CERBT Strategies 2 & 3 have only been in existence since 2011 & 2012 and do not have a 5 year history. After careful review of both the CalPERS and PARS 115 trust plans, staff has determined that it is in CJPRMA’s best interest to initiate an agreement with the PARS 115 trust. From a financial perspective, PARS has a higher 5 year performance return history (thru 12/31/2014) than the CalPERS CERBT. The PARS trust offers the Authority the choice of five prebuilt investment strategies (as opposed to three investment options offered by CalPERS). The PARS plan includes the choice of Active or Passive/Index asset management styles or a combination, a Dedicated PARS Senior Consultant, Dedicated PARS Client Services Coordinator and Senior Portfolio Manager from Highmark Capital Management to service our ongoing needs and make personal visits. There are various approaches to funding the Actuarial Accrued Liability and the PARS OPEB Trust, a few include:

1. Continue with the pay-as-you-go approach which wouldn’t require a trust plan. This doesn’t set aside any funds for the OPEB, costs more in the long run and is not recommended.

2. Contribute only the Annual Required Contribution (ARC) which at 06/30/14 was $64,283. This includes a 30 year amortization of the UAAL of $15,916. This is not recommended.

3. Make an annual contribution of $100,000, which would include the Normal Cost of approximately $35,000 and amortization payment of $65,000.

4. Make an initial deposit to the trust paying the total UAAL of approximately $300,000. Then pay the ongoing annual normal cost of approximately $35,000. The deposit would be made by transferring $300,000 from the Chandler investment program to the PARS Trust Plan. Recommended.

Staff recommends:

The Board of Directors approve the Authority’s establishment of the PARS Post-Retirement Health Care Plan and Trust and adopts Resolution No. 2015-1.

The Board of Directors designate the general manager as the Authority’s Plan Administrator and authorize him to sign, on behalf of the Authority, all agreements to establish participation in the PARS Public Agencies Post-Retirement Health Care Plan 115 Trust.

Fund the trust by paying the total UAAL of $300,000.

Page 80

Back to Agenda

Fiscal Impact: There is no fiscal impact associated with entering into an agreement to join the PARS 115 Trust; the ongoing administrative fee and investment management fee will be paid out of the investment assets or earnings.

Exhibits:

1. CJPRMA Retiree Health Benefit 2. PARS Proposal for OPEB and Pension Pre-Funding Trust Services 3. Resolution No. 2015-1 – Resolution for PARS Public Agencies Post-Retirement Health

Care Plan Trust

Page 81

Retiree Medical Benefit July 15, 2010

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY RETIREE HEALTH BENEFIT

Eligibility Criteria

Effective for employees who retiree on or after July 01, 2010 the following eligibility criteria will apply for the California Joint Powers Risk Management Authority Retiree Health Benefit as described herein:

1. The employee must have retired within 120 days of their last day of employment with CJPRMA, except in a case of a husband and wife who both work for CJPRMA.

2. The employee must have a minimum of ten (10) years of service of full-time employment or equivalent with CJPRMA.

Industrial Disability Retirement

An employee who retires from CJPRMA with an industrial disability retirement from PERS and who is totally disabled will be eligible for this benefit regardless of his or her length of service.

Husband and Wife Employees

If both husband and wife are employees of CJPRMA, both must be retired before they would be eligible for the retiree benefit. The 120 days retirement requirement will apply when the second spouse retires. When both are retired, each will be eligible for the benefit amount. If the retirees divorce, each will continue to receive a benefit.

Reimbursement Amount

The percentage used to calculate the reimbursement amount will be based on the percentage schedule listed below and the CalPERS Kaiser North Plan premium rate for an employee and one dependent. The retiree health benefit will reimburse the cost of medical insurance; this does not include premium costs for dental, vision, or other similar form of health services.

Page 82Page 82

Retiree Medical Benefit July 15, 2010

CJPRMA Years of Service CJPRMA’s Contribution 10 75% 15 100%

The reimbursement amount will be for the actual cost of the monthly premium for medical insurance for the retiree and one dependent. The reimbursement amount shall not exceed the maximum amount that the retiree qualifies for based on the CalPERS Kaiser North Plan premium rate for the employee plus one dependent and his or her years of service.

Upon the retiree’s eligibility for Medicare, CJPRMA will reimburse an amount including the cost of Medicare Parts A and B, if the employee is required to obtain such part to secure medical coverage. The total amount of the reimbursement will not exceed the maximum amount the retiree qualifies for based on CalPER Kaiser North Plan premium rate for the employee plus one dependent and his or her years of service.

A surviving spouse of a deceased retiree will be eligible to receive reimbursement in an amount equal to 50% of the reimbursement amount in effect at the time of death of the retiree. The surviving spouse must have been married to the retiree at the time of retirement. Eligibility for this benefit will cease upon remarriage or death of the spouse.

Administration

The General Manager will determine what form of evidence and frequency of its submission to CJPRMA is necessary for verification of retiree medical insurance coverage. Additionally, the General Manager will be responsible for establishing all procedures and policies necessary for administering the program in an orderly and equitable manner.

Page 83Page 83

l f d iProposal for OPEB and Pension Pre‐Funding Trust Services

California Joint Powers Risk M t A th itManagement AuthorityMay 19, 2015

Page 84Page 84

C t tContacts

PARSDENNIS YU, CEBS Senior Vice [email protected]; 800.540.6369 ext. 104

HIGHMARK CAPITAL MANAGEMENT

ANDREW BROWN, CFA, Senior Portfolio [email protected]; 415.705.7605

2Page 85Page 85

OPEB Trust TeamOPEB Trust Team

Trust Administrator and Consultant

• Recordkeeping/Sub trust

Trustee• Safeguard plan assets• Oversight protection

Investment Manager• An investment sub‐advisor to U.S.

Bank

Role

• Recordkeeping/Sub‐trust accounting

• Actuarial Coordination•Monitor Contributions/ Process

Disbursements

g p• Plan Fiduciary

• Custodian of assets

• Open architecture• Investment policy assistance

• Monitor Plan Compliance• Ongoing Client Liaison

•Pre‐fund Pension Option – NEW!

Corporate Experience31 years 152 years 96 years

Corporate Experience(1984 – 2015) (1863 – 2015) (1919 – 2015)

OPEB Experience 19 years 10 years 19 years

Number of plans underNumber of plans under administration 1,113 plans for 600 public agencies

Dollars under More than $

More than More than $15 3 billionadministration $1.7 billion $4 trillion$15.3 billion

under management

3Page 86Page 86

MORE THAN 145 OPEB CLIENT AGENCIESCITIES SPECIAL DISTRICTSAlameda Redding Calaveras County Water District Rowland Water DistrictAllen Rialto California JPIA Santa Barbara County Law LibraryAtherton Richmond Central Contra Costa Sanitary District South Montebello Irrigation DistrictBakersfield Rosemead Central Contra Costa Transit Authority South Orange County Wastewater Authority

MORE THAN 145 OPEB CLIENT AGENCIES

Brisbane San Leandro Coachella Valley Water District South Placer Fire Protection DistrictCamarillo Santa Clara Coastside Fire Protection District Southern Marin Fire Protection DistrictCarver Santa Clarita Contra Costa Mosquito & Vector Control District Superior Court of CA, County of Contra CostaCommerce Sausalito – pension too Crestline Village Water District Superior Court of CA, County of ImperialConroe Southlake Delta Diablo Superior Court of CA, County of InyoCoppell Temple City Desert Recreation District Superior Court of CA County of KernCoppell Temple City Desert Recreation District Superior Court of CA, County of KernCoronado Tyler Eastern Sierra Community Services District Superior Court of CA, County of MarinCovina Union City Fresno Irrigation District Superior Court of CA, County of MercedCrescent City Wareham Fresno Metropolitan Flood Control District Superior Court of CA, County of OrangeCupertino Woodland Glenn‐Colusa Irrigation District Superior Court of CA, County of San MateoDuarte Yountville Great Basin Unified Air Pollution Control District Superior Court of CA, County of ShastaElk G Y V ll H d A R i & P k Di i S i C f CA C f Si kiElk Grove Yucca Valley Hayward Area Recreation & Park District Superior Court of CA, County of SiskiyouEuless Housing Authority of Florence, SC Superior Court of CA, County of SonomaFort Worth Housing Authority of the County of San Bernardino Tarrant Regional Water DistrictFountain Valley COUNTIES INTELECOM Vallejo Sanitation & Flood Control DistrictGalt Amador Menlo Park Fire Protection District Ventura Regional Sanitation DistrictGarland Contra Costa Mesa Water District Walnut Valley Water DistrictyHalf Moon Bay Imperial Metropolitan Transportation Commission West County Wastewater DistrictHaltom City Inyo Mid‐Peninsula Water District Western Riverside Council of GovernmentsHercules Kern Mojave Desert Air Quality Management District SCHOOL DISTRICTSHermosa Beach Merced Montecito Fire Protection District Bass Lake Joint UESD Ontario‐Montclair SDHurst Mono Monterey Bay Unified Air Pollution Control District Bellflower USD Red Bluff Joint ESDLa Verne Plumas Moraga Orinda Fire Protection District Calistoga Joint USD Red Bluff Joint UHSDLa Verne Plumas Moraga‐Orinda Fire Protection District Calistoga Joint USD Red Bluff Joint UHSDLake Forest Plymouth Municipal Water District of Orange County Centinela Valley UHSD River Delta USDLakewood San Benito Northern Lancaster County Reg Police Department Corning Union ESD Riverdale Joint USDLivermore Shasta Orange County Vector Control District El Dorado UHSD San Bruno Park SDMammoth Lakes Solano – pension too Orange County Water District Fowler USD San Marino USDMansfield Sonoma Placer County Resource Conservation District John Swett USD Trona JUSDNorth Richland Hills Trinity Rancho Murrieta Community Services District Lemon Grove SD Twin Rivers USDNorwalk Yolo Manteca USD Visalia USDNovato COMMUNITY COLLEGE DISTRICTS Moreno Valley USD

State Center CCD Yosemite CCD Last Updated: April 2015Page 87Page 87

Section 115 Trust Fund

• Why Pre‐Fund your Retiree health obligations?• Stabilized cost

• Funding over time prevents the growth of the Authority’s unfunded liability

• Benefit security for employees• Benefit security for employees• Assets in the trust provide employees with security that they will receive the benefit when

promised

• Investment flexibility• Investment flexibility• Since assets are held in trust outside the assets of the employer, diversified investment strategies

may be utilized which may generate higher returns over time

• Funding equity• Funding equity• Funding liability is not transferred to the next generation

• Credit implications

5

• Failure to provide funding may adversely impact the Authority’s credit rating and ability to borrow

Page 88Page 88

A t i l R ltActuarial Results

Valuation Date: June 30, 2014Pay‐As‐You‐GoDiscount Rate:

Pre‐FundingDiscount Rate:

Financial Summary

Valuation Date: June 30, 2014 Discount Rate:3.25%

Discount Rate:5.50%

Actuarial Accrued Liability (AAL) $398,355

Actuarial Value of Assets $0

Unfunded Actuarial Accrued Liability (UAAL) $398,355 $300,127

Normal Cost $48,367

Amortization of UAAL $15,916

Annual Required Contribution (ARC) $64,283

Note: Rule of thumb is for every one percent increase in the discount rate the unfunded liability is reduced by 10%

6

Note: Rule of thumb is, for every one percent increase in the discount rate, the unfunded liability is reduced by 10%.

Page 89Page 89

Ad t f PAdvantages of Program

• 19 years providing OPEB Trust Services

• IRS Approved 115 OPEB Trust – on multiple‐employer basis

• Flexible investment options –active or passive; 5 model strategies or can customize

• Transparency of holdings in investment portfolio

• Option to disburse directly to retiree

• Can use same 115 Trust for prefunding pension obligations too

7Page 90Page 90

Ad t f PAdvantages of Program

Simple Investment Approach

DEDICATED

Simple Investment Approach

DISCUSSION PHASE

‐ Target Discount RateRisk Tolerance

DEDICATED PORTFOLIO MANAGER

‐Makes Recommendation‐ Fiduciary Responsibility

MODEL PORTFOLIOS

Conservative – 5%‐20% EquityMod‐Conservative – 20%‐40% Equity

‐ Risk Tolerance‐ Investment Philosophy‐ Asset Allocation

Fiduciary Responsibility‐ Drafts Investment Policy‐ Annual On‐site Reviews‐ Cell phone access

Moderate – 40%‐60% EquityBalanced – 50%‐70% EquityCap. Appreciation – 65%‐85% Equity

8Page 91Page 91

FFeesGASB 45 OPEB Trust Administration / Consulting Fees

Company Name Plan Set up Fee Ongoing

PARS None 0.25% for assets under $5 million0.25% for assets $5‐10 million0.20% for assets $10‐15 million0.15% for assets $15‐50 million0.10% for assets over $50 million

Trustee/Investment Management Fees

Company Name Trustee/Custodial Fees Investment Management FeeU.S. Bank Discretionary – waived

(Recommended)Discretionary – Ranges from 0.24% to 0.34% depending on risk tolerance level (net after fee waivers)0.35% for assets under $5 million0.25% for assets $5—$10 million0.20% for assets $10—$15 million0 15% f $15 $50 illi0.15% for assets $15—$50 million0.10% for assets over $50 million

PARS does not receive any compensation from the investments or any commissions, back-end loads, or any other forms of compensation.9Page 92Page 92

HighMark Capital ManagementHighMark Capital Management

Investment Program Information

10Page 93Page 93

1 ESTABLISH: DETERMINE YOUR STRATEGIC ASSET ALLOCATION STRATEGY1. ESTABLISH: DETERMINE YOUR STRATEGIC ASSET ALLOCATION STRATEGY

Efficient Frontier: Equity Fixed Income CashEfficient Frontier: Equity Fixed Income Cash

l Ret

urn

Moderate

Balanced

Capital Appreciation

pect

ed M

ode

EquityFixed Income Cash

Investment Objectives

Conservative

Moderately Conservative

Exp Equity Income Cash

Conservative 5-20% 60-95% 0-20%

Moderately Conservative 20-40% 50-80% 0-20%

Moderate 40-60% 40-60% 0-20%

Balanced 50-70% 30-50% 0-20%

Capital Appreciation 65-85% 10-30% 0-20%

Expected Model Risk (standard deviation)

Each Investment Objective is a hypothetical construct only and does not reflect actual investment decisions or recommendations. Past performance is no indication of future results. Please refer to page entitled ‘Disclosures’ at the back of this presentation for more information.

Capital Appreciation 65-85% 10-30% 0 20%

11

p g p

Page 94Page 94

2 CONSTRUCT YOUR PORTFOLIO: SAMPLE PORTFOLIO

Moderate Objective

2. CONSTRUCT YOUR PORTFOLIO: SAMPLE PORTFOLIO

St t i R A t All ti

Equity 40-60% Equity

Fixed Income 40-60% Large Cap Core 10.60%

Cash 0-20% Large Cap Value 7.00%

L C G h 00%

Strategic Ranges Asset Allocation

Large Cap Growth 7.00%

Mid Cap Value 2.10%

Equity 48.50% Mid Cap Growth 2.10%

Fixed Income 48.25% Small Cap Value 3.60%

Tactical Allocation

Cash 3.25% Small Cap Growth 3.60%

International 7.00%

Tactical - Europe 2.10%

Emerging Markets 3.40%

Fixed Income

Interm-Term 39.70%

Short-Term 6.15%

High Yield 2.40%

*Each strategy represented in the Sample Portfolio is a hypothetical construct only and does not reflect actual investment decisions or recommendations. Past performance is no indication of future results. Please refer to page entitled ‘Disclosures’ at the back of this presentation for more information. Data is as of 2.18.2015.

Cash 3.25%

High Yield 2.40%

12Page 95Page 95

3 CONSTRUCT YOUR PORTFOLIO: SAMPLE PORTFOLIO3. CONSTRUCT YOUR PORTFOLIO: SAMPLE PORTFOLIO

Ticker Fund NamePARS

Moderate Actively Managed Mutual Funds

Equity <60% equityLarge Cap Core 5.80% SMGIX Columbia Contrarian Core Z

4.80% SICWX Sentinel Common Stock FundLarge Cap Value 4.20% LSGIX Loomis Sayles Value Y

2.80% DODGX Dodge & Cox StockLarge Cap Growth 3.50% HACAX Harbor Capital Appreciation InstlLarge Cap Growth 3.50% HACAX Harbor Capital Appreciation Instl

3.50% PRGFX T. Rowe Price Growth StockMid Cap Value 2.10% TIMVX TIAA‐CREF Mid‐Cap Value Inst.Mid Cap Growth 2.10% IYMIX Ivy Mid Cap Growth ISmall Cap Value 3.60% NSVAX Columbia Small Cap Value II ZSmall Cap Growth 3.60% PRNHX T. Rowe Price New HorizonsInternational 3.20% NWHNX Nationwide Bailard International Equities Fundq

1.90% DODFX Dodge & Cox International Stock1.90% MQGIX MFS International Growth I

Tactical ‐ Europe 2.10% FEZ SPDR EURO STOXX 50 ETFEmerging Markets 3.40% SEMNX Schroder Emerging Market Equity Inv

48.50%

Fixed Income Short Term Bond 6.15% VFSUX Vanguard Short‐Term Investment‐Grade AdmInterm Term Bond 19.85% PTTRX PIMCO Total Return Instl

19.85% NWJJX Nationwide HighMark Bond FundHigh‐Yield 2.40% PHIYX PIMCO High Yield Instl

48.25%

Securities shown here may change from time to time, at the discretion of HighMark. Please refer to page entitled ‘Disclosures’ at the back of this presentation for more information

Cash 3.25% FPZXX First American Prime Obligation Z

TOTAL 100.00%

13

information.

Page 96Page 96

Comprehensive Investment Solution

HighMark® Capital Management, Inc.’s (HighMark)

diversified investment portfolios are designed to

balance return expectations with risk tolerance.

Key features include: sophisticated asset allocation

and optimization techniques, four layers of

diversification (asset class, style, manager, and

security), access to rigorously screened, top tier

money managers, flexible investment options, and

experienced investment management.

Rigorous Manager Due Diligence

Our manager review committee utilizes a rigorous

screening process that searches for investment

managers and styles that have not only produced

above-average returns within acceptable risk

parameters, but have the resources and commitment

to continue to deliver these results. We have set high

standards for our investment managers and funds.

This is a highly specialized, time consuming approach

dedicated to one goal: competitive and consistent

performance.

Flexible Investment Options

In order to meet the unique needs of our clients,

we offer access to flexible implementation strategies:

HighMark Plus utilizes actively managed mutual

funds while Index Plus utilizes index-based securities,

including exchange-traded funds. Both investment

options leverage HighMark’s active asset allocation

approach.

Risk Management

The portfolio is constructed to control risk through

four layers of diversification – asset classes (cash,

fixed income, equity), investment styles (large cap,

small cap, international, value, growth), managers

and securities. Disciplined mutual fund selection and

monitoring process helps to drive return potential

while reducing portfolio risk.

WHY THE PARS DIVERSIFIED CONSERVATIVE PORTFOLIO?

INVESTMENT OBJECTIVE

PARS DIVERSIFIED PORTFOLIOS

CONSERVATIVE AS OF MARCH 31, 2015

To provide a consistent level of

inflation-protected income over

the long-term. The major portion

of the assets will be fixed income

related. Equity securities are

utilized to provide inflation

protection.

ASSET ALLOCATION — CONSERVATIVE PORTFOLIO

ANNUAL RETURNS HighMark Plus (Active)

2008 -9.04%

2009 15.59%

2010 8.68%

2011 2.19%

2012 8.45%

2013 3.69%

2014 3.88%

Strategic Range Policy Tactical

Equity 5 – 20% 15% 15%

Fixed Income 60 – 95% 80% 80%

Cash 0 – 20% 5% 5%

Index Plus (Passive)

2008 -6.70%

2009 10.49%

2010 7.67%

2011 3.70%

2012 6.22%

2013 3.40%

2014 4.32%

PORTFOLIO FACTS HighMark Plus (Active)

Inception Data 07/2004

No of Funds in Portfolio 20




A newly funded account enters a composite after three full months of management and is removed from a composite at the end of the last full month that the account is consistent with the criteria of the composite. Terminated accounts are included in the historical results of a composite through the last full month prior to closing. Composites may include accounts invested in domestic (U.S.) or international (non-U.S.) individual securities, funds, or a combination thereof. Account exclusions based on equity security concentrations are applied quarterly. Employing a construction methodology different from the above could lead to different results.

ANNUALIZED TOTAL RETURNS HighMark Plus (Active)

Current Quarter* 1.85%

Blended Benchmark** 1.47% Year To Date* 1.85%

Blended Benchmark* 1.47% 1 Year 4.45%

Blended Benchmark 4.84% 3 Year 4.64%



Blended Benchmark 4.53%

Index Plus (Active)







Blended Benchmark 4.53% * Returns less than 1-year are not annualized. **Breakdown for Blended Benchmark: 7.5% S&P500, 1.5% Russell Mid Cap, 2.5%

Russell 2000, 1% MSCI EM FREE, 2% MSCI EAFE, 52.25% BC US Agg, 25.75% ML 1-3 Yr US Corp/Gov’t, 2% US High Yield Master II, 0.5% Wilshire REIT, and 5% Citi 1 Mth T-Bill. Prior to October 2012, the blended benchmarks were 12% S&P 500; 1% Russell 2000, 2% MSCI EAFE, 40% ML 1-3 Year Corp./Govt, 40% BC Agg, 5% Citi 1 Mth T-Bill. Prior to April 2007, the blended benchmarks were 15% S&P 500, 40% ML 1-3Yr Corp/Gov, 40% BC Agg, and 5% Citi 1 Mth T-Bill.

Efficient Frontier

Risk (Standard Deviation)

Rew

ard

(Rat

e of

Ret

urn)

Conservative


Moderate

Capital Appreciation Balanced

(Gross of Investment Management Fees, but Net of Embedded Fund Fees)

Page 97Page 97

350 California Street

Suite 1600

San Francisco, CA 94104

800.582.4734

www.highmarkcapital.com

ABOUT THE ADVISER HighMark® Capital Management, Inc. (HighMark) has over 90 years (including predecessor organizations) of institutional money management experience with more than $15.2 billion in assets under management. HighMark has a long term disciplined approach to money management and currently manages assets for a wide array of clients. ABOUT THE PORTFOLIO MANAGEMENT TEAM Andrew Brown, CFA®

Senior Portfolio Manager Investment Experience: since 1994 HighMark Tenure: since 1997 Education: MBA, University of Southern California; BA, University of Southern California Kevin Churchill, CFA®, CFP®

Senior Portfolio Manager Investment Experience: since 1996 HighMark Tenure: since 2012 Education: MS, Seattle University; BS, University of Puget Sound Salvatore “Tory” Milazzo III, CFA®

Senior Portfolio Manager Investment Experience: since 1991 HighMark Tenure: since 2014 Education: BA, Colgate University J. Keith Stribling, CFA Senior Portfolio Manager Investment Experience: since 1985 HighMark Tenure: since 1995 Education: BA, Stetson University Christiane Tsuda Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2010 Education: BA, International Christian University, Tokyo Matthew Webber, CFA®

Senior Portfolio Manager Investment Experience: since 1995 HighMark Tenure: since 2011 Education: BA, University of California, Santa Barbara Anne Wimmer, CFA®

Senior Portfolio Manager Investment Experience: since 1987 HighMark Tenure: since 2007 Education: BA, University of California, Santa Barbara Asset Allocation Committee Number of Members: 14 Average Years of Experience: 26 Average Tenure (Years): 14 Manager Review Committee Number of Members: 7 Average Years of Experience: 23 Average Tenure (Years): 11

The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Composites are managed by HighMark’s HighMark Capital Advisors (HCA) with full investment authority according to the PARS Conservative active and passive objectives and do not have equity concentration of 25% or more in one common stock security.

The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. As of March 31, 2015, the blended rate is 0.58%. US Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 36 basis points paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio returns. Assuming an investment for five years, a 5% annual total return, and an annual sub-advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a 10 million initial value would grow to $12.54 million after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. In Q1 2010, the PARS Composite definition was changed from $750,000 minimum to no minimum. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on trade-date accounting.

Blended benchmarks represent HighMark’s strategic allocations between equity, fixed income, and cash and are rebalanced monthly. Benchmark returns do not reflect the deduction of advisory fees or other expenses of investing but assumes the reinvestment of dividends and other earnings. An investor cannot invest directly in an index. The unmanaged S&P 500 Index is representative of the performance of large companies in the U.S. stock market. The MSCI EAFE Index is a free float-adjusted market capitalization index designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI Emerging Markets Free Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe. The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe. The US High Yield Master II Index tracks the performance of below investment grade U.S. dollar-denominated corporate bonds publicly issued in the U.S. domestic market. Wilshire REIT index measures U.S. publicly traded Real Estate Investment Trusts. The unmanaged Barclays Capital (BC) U.S. Aggregate Bond Index is generally representative of the U.S. taxable bond market as a whole. The Merrill Lynch (ML) 1-3 Year U.S. Corporate & Government Index tracks the bond performance of The ML U.S. Corporate & Government Index, with a remaining term to final maturity less than 3 years. The unmanaged Citigroup 1-Month Treasury Bill Index tracks the yield of the 1-month U.S. Treasury Bill.

HighMark Capital Management, Inc. (HighMark), an SEC-registered investment adviser, is a wholly owned subsidiary of MUFG Union Bank, N.A. (MUB). HighMark manages institutional separate account portfolios for a wide variety of for-profit and nonprofit organizations, public agencies, public and private retirement plans, and personal trusts of all sizes. It may also serve as sub-adviser for mutual funds, common trust funds, and collective investment funds. MUB, a subsidiary of MUFG Americas Holdings Corporation, provides certain services to HighMark and is compensated for these services. Past performance does not guarantee future results. Individual account management and construction will vary depending on each client’s investment needs and objectives. Investments employing HighMark strategies are NOT insured by the FDIC or by any other Federal Government Agency, are NOT Bank deposits, are NOT guaranteed by the Bank or any Bank affiliate, and MAY lose value, including possible loss of principal.

HighMark Plus (Active)

Columbia Contrarian Core Z

T. Rowe Price Growth Stock

Columbia Small Cap Value II Z

T. Rowe Price New Horizons

Nationwide Bailard International Equities

Nationwide HighMark Bond

Vanguard Short-Term Invest-Grade Adm

Loomis Sayles Value Y

PIMCO Total Return

Dodge & Cox International Stock

MFS International Growth I

Sentinel Common Stock I

First American Prime Obligation Z

TIAA-CREF Mid Cap Value

Ivy Mid Cap Growth

Harbor Capital Appreciation

Schroder Emerging Market Equity

Dodge & Cox Stock

SPDR Euro Stoxx 50 ETF

PIMCO High Yield

SAMPLE HOLDINGS


iShares S&P 500

iShares S&P 500/Value

iShares S&P 500/Growth

iShares S&P Small Cap 600 Value

iShares S&P Small Cap 600 Growth

iShares MSCI EAFE

iShares Russell Midcap Value

iShares Russell Midcap Growth

iShares Barclays Aggregate Bond




SPDR Barclays High Yield Bond ETF

Vanguard FTSE Emerging Markets ETF

Holdings are subject to change at the discretion of the investment manager.

STYLE

Small Cap 2.2%

Interm-Term Bond 53.0%

Short-Term Bond 23.3%

Large Cap Core 3.1%


Mid Cap 1.2%

Intl Stocks 3.8%

Cash 5.3%

Large Cap Value 2.1%

High Yield 4.0%

Page 98Page 98





















performance.








approach.

Risk Management








WHY THE PARS DIVERSIFIED MODERATELY CONSERVATIVE PORTFOLIO?



MODERATELY CONSERVATIVE AS OF MARCH 31, 2015

To provide current income and

moderate capital appreciation.

The major portion of the assets is

committed to income-producing

securities. Market fluctuations

should be expected.

ASSET ALLOCATION — MODERATELY CONSERVATIVE PORTFOLIO


2008 -15.37%

2009 18.71%

2010 10.46%

2011 1.75%

2012 10.88%

2013 7.30%

2014 4.41%


Equity 20 - 40% 30% 29%

Fixed Income 50 - 80% 65% 68%

Cash 0 - 20% 5% 3%


2008 -12.40%

2009 11.92%

2010 9.72%

2011 3.24%

2012 8.24%

2013 6.78%

2014 5.40%
















Index Plus (Active)






Blended Benchmark 6.28% Inception To Date (119-Mos.) 5.38%

Blended Benchmark 5.30% * Returns less than 1-year are not annualized. **Breakdown for Blended Benchmark: 15.5% S&P500, 3% Russell Mid Cap, 4.5%

Russell 2000, 2% MSCI EM FREE, 4% MSCI EAFE, 49.25% BC US Agg, 14% ML 1-3 Yr US Corp/Gov’t, 1.75% US High Yield Master II, 1% Wilshire REIT, and 5% Citi 1 Mth T-Bill. Prior to October 2012, the blended benchmarks were 25% S&P 500; 1.5% Russell 2000, 3.5% MSCI EAFE, 25% ML 1-3 Year Corp./Govt, 40% BC Agg, 5% Citi 1 Mth T-Bill. Prior to April 2007, the blended benchmarks were 30% S&P 500, 25% ML 1-3Yr Corp/Gov, 40% BC Agg, and 5% Citi 1 Mth T-Bill.

Efficient Frontier


Rew

ard

(Rat

e of

Ret

urn)

Conservative


Moderate



Page 99Page 99


Suite 1600


800.582.4734








The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Composites are managed by HighMark’s HighMark Capital Advisors (HCA) with full investment authority according to the PARS Moderately Conservative active and passive objectives and do not have equity concentration of 25% or more in one common stock security.













PIMCO Total Return






Ivy Mid Cap Growth



Dodge & Cox Stock


PIMCO High Yield

SAMPLE HOLDINGS


iShares S&P 500





iShares MSCI EAFE










STYLE

Small Cap 4.4%



Large Cap Core 6.1%


Mid Cap 2.4%

Intl Stocks 7.7%

Cash 3.3%


High Yield 3.4%

Page 100Page 100





















performance.








approach.

Risk Management








WHY THE PARS DIVERSIFIED MODERATE PORTFOLIO?



MODERATE AS OF MARCH 31, 2015

To provide growth of principal

and income. It is expected that

dividend and interest income will

comprise a significant portion of

total return, although growth

through capital appreciation is

equally important.

ASSET ALLOCATION — MODERATE PORTFOLIO


2008 -22.88%

2009 21.47%

2010 12.42%

2011 0.55%

2012 12.25%

2013 13.06%

2014 4.84%


Equity 40 - 60% 50% 49%

Fixed Income 40 - 60% 45% 48%

Cash 0 - 20% 5% 3%


2008 -18.14%

2009 16.05%

2010 11.77%

2011 2.29%

2012 10.91%

2013 12.79%

2014 5.72%
















Index Plus (Active)







Blended Benchmark 5.86% * Returns less than 1-year are not annualized. **Breakdown for Blended Benchmark: 26.5% S&P500, 5% Russell Mid Cap, 7.5%

Russell 2000, 3.25% MSCI EM FREE, 6% MSCI EAFE, 33.50% BC US Agg, 10% ML 1-3 Yr US Corp/Gov’t, 1.50% US High Yield Master II, 1.75% Wilshire REIT, and 5% Citi 1 Mth T-Bill. Prior to October 2012, the blended benchmarks were 43% S&P 500; 2% Russell 2000, 5% MSCI EAFE, 15% ML 1-3 Year Corp./Govt, 30% BC Agg, 5% Citi 1 Mth T-Bill. Prior to April 2007, the blended benchmarks were 50% S&P 500, 15% ML 1-3Yr Corp/Gov, 30% BC Agg, and 5% Citi 1 Mth T-Bill.

Efficient Frontier


Rew

ard

(Rat

e of

Ret

urn)

Conservative


Moderate



Page 101Page 101


Suite 1600


800.582.4734








The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Composites are managed by HighMark’s HighMark Capital Advisors (HCA) with full investment authority according to the PARS Moderate active and passive objectives and do not have equity concentration of 25% or more in one common stock security.













PIMCO Total Return






Ivy Mid Cap Growth



Dodge & Cox Stock


PIMCO High Yield

SAMPLE HOLDINGS


iShares S&P 500





iShares MSCI EAFE










STYLE

Small Cap 7.2%



Large Cap Core 10.6%


Mid Cap 4.2%

Intl Stocks 12.5%

Cash 3.3%


High Yield 2.4%

Page 102Page 102





















performance.








approach.

Risk Management








WHY THE PARS DIVERSIFIED BALANCED PORTFOLIO?



BALANCED AS OF MARCH 31, 2015

To provide growth of principal

and income. While dividend and

interest income are an important

component of the objective’s

total return, it is expected that

capital appreciation will comprise

a larger portion of the total return.

ASSET ALLOCATION — BALANCED PORTFOLIO


2008 -25.72%

2009 21.36%

2010 14.11%

2011 -0.46%

2012 13.25%

2013 16.61%

2014 4.70%


Equity 50 – 70% 60% 58%

Fixed Income 30 – 50% 35% 39%

Cash 0 – 20% 5% 3%


2008 -23.22%

2009 17.62%

2010 12.76%

2011 1.60%

2012 11.93%

2013 15.63%

2014 6.08%














Blended Benchmark 9.52% Inception to Date (102-Mos.) 5.50%


Index Plus (Active)






Blended Benchmark 9.52% Inception to Date (90-Mos.) 4.85%

Blended Benchmark 5.41% * Returns less than 1-year are not annualized. **Breakdown for Blended Benchmark: 32% S&P500, 6% Russell Mid Cap, 9% Russell

2000, 4% MSCI EM FREE, 7% MSCI EAFE, 27% BC US Agg, 6.75% ML 1-3 Yr US Corp/Gov’t, 1.25% US High Yield Master II, 2% Wilshire REIT, and 5% Citi 1 Mth T-Bill. Prior to October 2012, the blended benchmarks were 51% S&P 500; 3% Russell 2000, 6% MSCI EAFE, 5% ML 1-3 Year Corp./Govt, 30% BC Agg, 5% Citi 1 Mth T-Bill. Prior to April 2007, the blended benchmarks were 60% S&P 500, 5% ML 1-3Yr Corp/Gov, 30% BC Agg, and 5% Citi 1 Mth T-Bill.

Efficient Frontier


Rew

ard

(Rat

e of

Ret

urn)

Conservative


Moderate

Capital Appreciation

Balanced


Page 103Page 103


Suite 1600


800.582.4734








The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Composites are managed by HighMark’s HighMark Capital Advisors (HCA) with full investment authority according to the PARS Balanced active and passive objectives and do not have equity concentration of 25% or more in one common stock security.

The composite name has been changed from PARS Balanced/Moderately Aggressive to PARS Balanced on 5/1/2013. The adviser to the PARS portfolios is US Bank, and HighMark serves as sub-adviser to US Bank to manage these portfolios. US Bank may charge clients as much as 0.60% annual management fee based on a sliding scale. As of March 31, 2015, the blended rate is 0.58%. US Bank pays HighMark 60% of the annual management fee for assets sub-advised by HighMark under its sub-advisory agreement with US Bank. The 36 basis points paid to HighMark, as well as other expenses that may be incurred in the management of the portfolio, will reduce the portfolio returns. Assuming an investment for five years, a 5% annual total return, and an annual sub-advisory fee rate of 0.36% deducted from the assets at market at the end of each year, a 10 million initial value would grow to $12.54 million after fees (Net-of-Fees) and $12.76 million before fees (Gross-of-Fees). Additional information regarding the firm’s policies and procedures for calculating and reporting performance results is available upon request. In Q1 2010, the PARS Composite definition was changed from $750,000 minimum to no minimum. Performance results are calculated and presented in U.S. dollars and do not reflect the deduction of investment advisory fees, custody fees, or taxes but do reflect the deduction of trading expenses. Returns are calculated based on trade-date accounting.












PIMCO Total Return






Ivy Mid Cap Growth



Dodge & Cox Stock


PIMCO High Yield

SAMPLE HOLDINGS


iShares S&P 500





iShares MSCI EAFE










STYLE

Small Cap 8.8%





Mid Cap 5.0%

Intl Stocks 15.0%

Cash 3.3%


High Yield 1.9%

Page 104Page 104





















performance.








approach.

Risk Management








WHY THE PARS DIVERSIFIED CAPITAL APPRECIATION PORTFOLIO?



CAPITAL APPRECIATION AS OF MARCH 31, 2015

The primary goal of the Capital

Appreciation objective is growth

of principal. The major portion of

the assets are invested in equity

securities and market fluctuations

are expected.

ASSET ALLOCATION — CAPITAL APPRECIATION PORTFOLIO

ANNUAL RETURNS

2008 N/A%

2009 23.77%

2010 12.95%

2011 -1.35%

2012 13.87%

2013 20.33%

2014 6.05%


Equity 65 - 85% 75% 73%

Fixed Income 10 - 30% 20% 24%

Cash 0 - 20% 5% 3%





Inception Data N/A



ANNUALIZED TOTAL RETURNS








* Returns less than 1-year are not annualized. **Breakdown for Blended Benchmark: 39.5% S&P500, 7.5% Russell Mid Cap, 10.5% Russell 2000, 5.25% MSCI EM FREE, 10.25% MSCI EAFE, 16% BC US Agg, 3% ML 1-3 Yr US Corp/Gov’t, 1% US High Yield Master II, 2% Wilshire REIT, and 5% Citi 1 Mth T-Bill.

Efficient Frontier


Rew

ard

(Rat

e of

Ret

urn)

Conservative


Moderate



Page 105Page 105


Suite 1600


800.582.4734








The performance records shown represent size-weighted composites of tax exempt accounts that meet the following criteria: Composites are managed by HighMark’s HighMark Capital Advisors (HCA) with full investment authority according to the PARS Capital Appreciation active and passive objectives and do not have equity concentration of 25% or more in one common stock security.













PIMCO Total Return






Ivy Mid Cap Growth



Dodge & Cox Stock


PIMCO High Yield

SAMPLE HOLDINGS


iShares S&P 500





iShares MSCI EAFE










STYLE

Small Cap 10.8%





Mid Cap 6.2%

Intl Stocks 18.9%

Cash 3.0%


High Yield 1.2%

Page 106Page 106

RESOLUTION NO. 2015-1

RESOLUTION FOR PARS PUBLIC AGENCIES POST-RETIREMENT HEALTH

CARE PLAN TRUST

WHEREAS it is determined to be in the best interest of the California Joint Powers Risk Management Authority (the “Authority”) to participate in the PARS Public Agencies Post-Retirement Health Care Plan Trust (the “Program”) to fund post-employment benefits for its employees as specified in the Authority’s policies and/or applicable collective bargaining agreements; and WHEREAS the Authority is eligible to participate in the Program, a tax-exempt trust and plan performing an essential governmental function within the meaning of Section 115 of the Internal Revenue Code, as amended, and the Regulations issued there under, and is a tax-exempt trust under the relevant statutory provisions of the State of California; and WHEREAS the Authority’s adoption and operation of the Program has no effect on any current or former employee’s entitlement to post-employment benefits; and WHEREAS the terms and conditions of post-employment benefit entitlement, if any, are governed by contracts separate from and independent of the Program; and WHEREAS the Authority’s funding of the Program does not, and is not intended to, create any new vested right to any benefit nor strengthen any existing vested right; and WHEREAS the Authority reserves the right to make contributions, if any, to the Program. NOW THEREFORE, BE IT RESOLVED THAT: 1. The Board of Directors hereby adopts the PARS Public Agencies Post-Retirement Health

Care Plan Trust, including the PARS Public Agencies Post-Retirement Health Care Plan, effective _______________, 2015; and

2. The Board of Directors hereby appoints the General Manager, or his/her successor or his/her

designee as the Authority’s Plan Administrator for the Program; and 3. The Authority’s Plan Administrator is hereby authorized to execute the PARS legal and

administrative documents on behalf of the Authority and to take whatever additional actions are necessary to maintain the Authority’s participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the Authority’s Program.

____________________________ President 2015 Date adopted & approved

Page 107Page 107

ITE

ME

GE

Rec

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TEM: 7

EETING: 05

ENERAL MA

commended Staff reco

ategic Direc

This item

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5/19-05/21/20

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CALRISK M

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Budget is curs and capital

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budget is estied Outside-Le what the di

Y 2015-2016:

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LIFORNIAMANAGE

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TITLE: PRO

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ear 2015-20the current 2

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Page 108Page 108

Back to Agenda

Personnel: 0.4% increase ($2,900).

Salaries: 4.6% increase ($23,000). Benefits/Expenses: 7.5% decrease ($20,100)

Operations: 3.6% increase ($22,500)

Office Expenses: 4.7% increase ($14,500). Professional Services: 4.8% decrease ($4,500). Board Related Expenses: 0.0%. Building Ops: 25.5% increase ($12,500).

Capital Outlay: 25% decrease ($20,000).

Direct Program Expenses: 0.0% increase.

Funding: At the December 2014 board meeting, the Board approved the preliminary liability rates for PY 2015/2016, which included an overhead amount of $1,425,000. This amount and the following sources of income will be used to fund the FY 2015/2016 administrative budget.

Funding per PY 15/16 premium $1,425,000 CSRMA member payments $ 27,000 Davita rental income $ 129,204 Davita CAM charges $ 40,872 Risk Console member payments $ 15,400 Total projected funding $1,637,476

Proposed15/16 administrative budget $1,510,000

Favorable position $ 127,476 Staff respectfully recommends that the Board approve the proposed FY 2015-2016 administrative and direct program budgets.

Fiscal Impact:

1. Expenditures:

Administrative $1,510,000 Direct Program 690,000 Total $2,200,000

Exhibits:

1. FY 2014-2015 Budget Variance Report 2. Proposed FY 2015-2016 Budget

Page 109Page 109

G:\123DATA\BUDGET\FY 15-16\FY 14-15 budget variance rpt.docx

FY 2014-2015

Budget Variance Report

After reviewing the administrative expenditures for the 2014-2015 fiscal year, it is anticipated that we will

end the year approximately $123,664 or 8.4% under budget. The following will provide you with a brief

explanation of the key favorable and unfavorable results.

Line Item

Budget to

Actual

Favorable/

(Unfavorable)

Explanation

Administrative

Personnel

Salaries 15,700 Admin Asst position open for 3.5 mos.

Office Expenses

Copying/Printing 6,000 Not used

Furniture & Equip Expensed 6,000 Not used

RMIS – Annual Fees (12,500) Contract amendments increased annual fee

Temporary Service (20,134) Temp contract employees

RM – Training & Supplies 25,000 Not used.

Contingency Fund 20,000 Not used. Requires Executive Committee

approval.

Professional Services

Other Consultants 7,500 Not used

Board Related Expenses

Annual Meeting 10,000 Savings due to meeting being held at

Livermore office.

Building Operations

Taxes & Assessments (12,500) Mello-Roos taxes.

CAM - Davita (33,000) To be offset by Davita CAM revenue of

approximately $37,500

CAM – CJPRMA 7,000 Not used

Capital Expenditures 50,000 Not used.

Page 110Page 110

California Joint Powers

Risk Management Authority

CJPRMA

2015 – 2016

Proposed Budget

Page 111Page 111

CJPRMA

2015-2016

Proposed Budget

Table of Contents

Description of Budgeted Line Items .................................................................................................................................... 1 - 4

Proposed Budget

Budget Summary ...................................................................................................................................................... 5 - 6

Personnel ...................................................................................................................................................................... 7

Operations

Office Expenses ................................................................................................................................................. 8

Professional Services ........................................................................................................................................ 9

Board Related Expenses ................................................................................................................................... 9

Building Operations .......................................................................................................................................... 10

Capital Outlay .............................................................................................................................................................. 11

Direct Program Year Expenses ................................................................................................................................... 12

Budget Funding ....................................................................................................................................................................... 13

Page 112Page 112

BUDGET DESCRIPTIONS

1

LINE ITEM DESCRIPTION PERSONNEL SALARIES The approved CJPRMA staff positions include: General Manager, Claims Administrator,

Financial Analyst, Executive Assistant and Administrative Assistant. The salaries have been budgeted at the top of the salary ranges for each position.

BENEFITS/EXPENSES Auto Allowance General Manager and Claims Administrator are allocated $6000 annually. Health Benefits The employee health benefit is a flex plan that includes medical, dental, vision and deferred

compensation. CJPRMA contracts with PERS for medical coverage. A $1290.60 monthly employer contribution is made towards the flex plan benefits for active employees. Any surplus not used for premiums goes into the deferred compensation program for the employee. Employer share for retired employees medical and administrative fee is $77.10 per month.

Life Insurance Life insurance is purchased for employees at one and a half their annual salary. OPEB Expense Employer’s periodic required contribution to a defined benefit OPEB plan. Per GASB is not

required to be actually paid each year but does need to be calculated and disclosed. Disability Insurance Long-term disability is provided through The Standard Insurance Company. PERS - Retirement The PERS rate for FY 15/16 for classic employees is budgeted at 10.958%. PEPRA

employee is 6.237%. The rates are established by PERS. Workers’ Comp Insurance Is obtained from State Compensation Insurance Fund. The rates for FY 15/16 are $1.29 for

Salesperson-Outside and $1.03 for Clerical. Payroll Tax Expense Medicare - Employer contribution rate is 1.45% of payroll. SUI if applicable. General Manager – Wellness Program Wellness benefit per employment contract. OFFICE EXPENSES Office Rent Interim rent payment while building purchase finalized. Last rent payment was July 2014. Equipment Rental Copier lease.

Page 113Page 113

BUDGET DESCRIPTIONS

2

LINE ITEM DESCRIPTION Maintenance & Repair – Equipment Repair and maintenance of office equipment and furniture. Office Liability Insurance Office casualty, auto insurance and DIC - earthquake. Bond Premiums Office bond premium. Tuition Reimbursement Reimbursement for tuition, books, and related fees for completion of approved education. Office Supplies Office and household supplies. Telecommunications Telephone, cell phones and internet service. Postage/Shipping Postage related costs, including Certified Mail, Parcel Post, UPS/Fed Ex Personnel Recruitment Costs associated with hiring new employees. Dues/Memberships Professional organization membership fees. Publications/Online Subscriptions Subscriptions, legal updates, LexisNexis Online. Copying/Printing Costs related to printing and production of stationery, business cards, annual report. Records Management Offsite records storage. Promotion/Advertising Purchase of promotional items. Furniture and Equipment Expensed Provides for the purchase of equipment and furniture of less than $5,000. Computer Hardware/Software Expensed Provides for the purchase of hardware & software of less than $5,000. IS Technical Support Provides for maintenance and support of computer systems. RMIS – Annual Fees/Support License, Support, Hosting and Data Load fees related to the Risk Console system. Temporary Services Contract employees for special projects.

Page 114Page 114

BUDGET DESCRIPTIONS

3

LINE ITEM DESCRIPTION Admin – Training/Conferences/Travel Costs associated with staff travel not directly related to a claim: meetings, seminars and

conferences; includes registration, fees, lodging, travel and meals. Risk Management – Travel & Meetings Costs associated with RM conducting audits and meetings at sites. Risk Management – Training & Supplies Costs associated with member training seminars and classes. Audit – Primary Claims Cost associated with primary claims audit conducted by Claims Administrator. Bank Charges Bank service fees associated with investment custody bank services and Bank of America. Other Expenses General expenses such as nameplates and plaques, misc expenses. Contingency Fund For unplanned expenses. Requires executive committee approval. PROFESSIONAL EXPENSES CAJPA Accreditation Fee for the triennial accreditation review. Next review November 2017. Actuarial Services Cost for annual actuarial review which determines the proceeding year’s funding rates and

reserve balances. Audit – Financial Cost for annual financial audit conducted by CPA firm. Legal-Board Counsel-G&A Board counsel legal services not accounted for as a claim expense. Legal-Outside-G&A Outside legal services not related to a claim. Treasurer Fees Monthly fees for review of investment reports, bank and investment reconciliations. Other Consultants Consulting fees related to outside professional services. Payroll Services Costs related to ADP payroll services. BOARD RELATED EXPENSES General Liability Training Reimbursement Reimbursement to member entities for 50% up to $3000 annually for liability training. For

members who have elected not to participate in the CSRMA Risk Control Online Service.

Page 115Page 115

BUDGET DESCRIPTIONS

4

LINE ITEM DESCRIPTION CSRMA – Risk Control Online Risk control online and support subscription. Board Meeting Travel Expense Reimbursement

Member reimbursements for costs associated with attending board and executive committee meetings.

BOD - Conference Reimbursement Member reimbursement for cost of registration for one representative from each member

entity; cost of three nights accommodations, meals, and airfare, shuttle service and mileage. Board Meeting Expenses Costs associated with meetings, i.e. supplies, meals, facility. Annual Meeting All costs associated with annual meeting such as facility, food and speakers. NEW BUILDING OPERATIONS Taxes & Assessments Mello-Roos assessment to City of Livermore. CAM – Davita Common area maintenance fees paid by Davita. Utilities - CJPRMA PG&E and other costs associated to CJPRMA only. CAM - CJPRMA Common area maintenance fees paid by CJPRMA. Janitorial Services & Supplies Expenses related to janitorial services and supplies. CAPITAL OUTLAY Office equipment purchase such as computers, printers & projector and furniture purchases

in excess of $5,000. DIRECT PROGRAM YEAR EXPENSES Asset Management Fees Monthly costs of investment manager, this is charged against investment income. Legal-Board Counsel Claims Board counsel legal fees related to claim expenses. This is charged against the liability

account for claims that were previously accrued per the actuarial study. Legal-Outside-Claims Outside legal fees related to claim expenses. This is charged against the liability account for

claims that were previously accrued per the actuarial study. Other Claim Expenses Non-legal fees related to claim expenses. This is charged against the liability account for

claims that were previously accrued per the actuarial study.

Page 116Page 116

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY (CJPRMA)BUDGET SUMMARYFY 2015-16

FY 14-15$ % Budget to

Current Proposed Proposed Projected ActualADMINISTRATIVE Proposed Budget Increase Increase Actual Favorable Actual ActualEXPENDITURES FY 15-16 FY14-15 (Decrease) (Decrease) FY 14-15 (Unfavorable) FY 13-14 FY 12-13

PERSONNEL

Salaries 525,000 502,000 23,000 4.6% 486,300 15,700 463,773 459,190 Benefits/Expenses 247,400 267,500 (20,100) -7.5% 255,700 11,800 257,666 298,671

Total Personnel 772,400 769,500 2,900 0.4% 742,000 27,500 721,439 757,861

OPERATIONS

Office Expenses 323,000 308,500 14,500 4.7% 271,866 36,634 296,671 234,743 Professional Services 90,100 94,600 (4,500) -4.8% 75,570 19,030 81,031 123,949 Board Expenditures 170,000 170,000 - 0.0% 142,000 28,000 135,709 118,961

Total Operations 583,100 573,100 10,000 1.7% 489,436 83,664 513,411 477,653

BUILDING OPERATIONS

Building Operations 94,500 49,000 12,500 25.5% 86,500 (37,500) 99,438 178,006

CAPITAL OUTLAY

Capital Outlay 60,000 80,000 (20,000) -25.0% 30,000 50,000 - 162,755

Total Capital Outlay 60,000 80,000 (20,000) -25.0% 30,000 50,000 - 162,755

Total Administrative Expenditures 1,510,000 1,471,600 38,400 2.6% 1,347,936 123,664 1,334,288 1,576,275

5Page 117Page 117

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY (CJPRMA)BUDGET SUMMARYFY 2015-16


Current Proposed Proposed Projected ActualDIRECT PROGRAM Proposed Budget Increase Increase Actual Favorable Actual ActualEXPENDITURES FY 15-16 FY14-15 (Decrease) (Decrease) FY 14-15 (Unfavorable) FY 13-14 FY 12-13

Total Direct Program 690,000 690,000 - 0.0% 902,000 (212,000) 611,829 273,146

Total Administrative andDirect Program Expenditures 2,200,000$ 2,161,600$ 38,400$ 1.8% 2,249,936$ (88,336)$ 1,946,117$ 1,849,421$

6Page 118Page 118

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY (CJPRMA)PERSONNELFY 2015-16


Current Proposed Proposed Projected ActualProposed Budget Increase Increase Actual Favorable Actual Actual

PERSONNEL FY 15-16 FY14-15 (Decrease) (Decrease) FY 14-15 (Unfavorable) FY 13-14 FY 12-13

Salaries 525,000 502,000 23,000 4.6% 486,300 15,700 463,773 459,190 Auto Allowance 12,000 12,000 - 0.0% 12,000 - 12,000 12,000 Health Benefits 80,000 80,000 - 0.0% 78,000 2,000 78,524 77,900 Life Insurance 4,000 4,000 - 0.0% 3,000 1,000 2,341 2,341 OPEB Expense 50,000 70,000 (20,000) -28.6% 65,000 5,000 62,950 65,757 Disability Insurance 6,100 5,700 400 7.0% 5,200 500 5,941 4,580 PERS - Retirement 81,000 80,000 1,000 1.3% 79,400 600 70,304 122,313 Workers' Comp Ins 4,500 6,000 (1,500) -25.0% 4,000 2,000 5,207 4,817 Payroll Tax Expense 8,000 8,000 - 0.0% 7,300 700 18,807 7,163 GM - Wellness Program 1,800 1,800 - 0.0% 1,800 - 1,592 1,800

Total Personnel 772,400 769,500 2,900 0.4% 742,000 27,500 721,439 757,861

7Page 119Page 119

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY (CJPRMA)OPERATIONSFY 2015-16



OPERATIONS FY 15-16 FY14-15 (Decrease) (Decrease) FY 14-15 (Unfavorable) FY 13-14 FY 12-13

Office Expenses

Office Rent - - - 0.0% - - (1,687) 22,265 Equipment Rental 25,000 25,000 - 0.0% 25,000 - 26,252 18,876 Maint & Repair - Equipment 2,500 2,000 500 25.0% 2,500 (500) 4,010 800 Office Liability/DIC Ins 26,000 22,000 4,000 18.2% 25,400 (3,400) 25,234 19,139 Bond Premiums 7,000 6,800 200 2.9% 6,757 43 6,342 6,311 Tuition Reimb 500 500 - 0.0% - 500 - - Office Supplies 9,000 8,500 500 5.9% 9,500 (1,000) 8,261 6,088 Telecommunications 18,000 18,000 - 0.0% 17,500 500 17,936 19,696 Postage/Shipping 3,000 3,000 - 0.0% 2,500 500 2,131 2,359 Personnel Recruitment 2,000 - 2,000 100.0% 2,000 (2,000) 1,867 - Dues/Memberships 3,000 3,000 - 0.0% 3,000 - 949 2,215 Publications/Subscriptions 11,000 12,000 (1,000) -8.3% 8,000 4,000 9,034 13,009 Copying/Printing 9,000 9,000 - 0.0% 3,000 6,000 8,055 989 Records Management 800 800 - 0.0% 650 150 623 989 Promotion/Advertising 1,000 1,000 - 0.0% 250 750 - - Furniture & Equip Expensed 8,000 10,000 (2,000) -20.0% 4,000 6,000 18,892 2,055 Computer HW/SW Expensed 10,000 10,000 - 0.0% 8,000 2,000 10,174 15,442 IS Technical Support 25,000 19,000 6,000 31.6% 24,000 (5,000) 19,963 24,777 Website Support 3,200 2,400 800 33.3% 3,100 (700) 2,715 RMIS - Hosting - - - 0.0% - - 1,200 RMIS - Annual Fees/Support 56,000 36,500 19,500 53.4% 49,000 (12,500) 41,720 27,556 Temporary Services 1,000 1,000 - 0.0% 21,134 (20,134) 21,954 6,342 Admin - Training/Conf/Travel 22,000 22,000 - 0.0% 18,625 3,375 21,186 19,794 Risk Mgmt-Travel & Mtgs 10,000 12,000 (2,000) -16.7% 6,400 5,600 6,420 966 Risk Mgmt-Trng & Supplies 30,000 40,000 (10,000) -25.0% 15,000 25,000 28,594 13,631 Audit - Primary Claims 4,000 8,000 (4,000) -50.0% 4,000 4,000 1,750 Bank Charges 11,000 11,000 - 0.0% 11,550 (550) 10,523 10,058 Other Expenses 5,000 5,000 - 0.0% 1,000 4,000 3,773 186 Contingency Fund 20,000 20,000 - 0.0% - 20,000 - -

Total Office Expenses 323,000 308,500 14,500 4.7% 271,866 36,634 296,671 234,743

8Page 120Page 120

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY (CJPRMA)OPERATIONSFY 2015-16



OPERATIONS FY 15-16 FY14-15 (Decrease) (Decrease) FY 14-15 (Unfavorable) FY 13-14 FY 12-13

Professional Services

CAJPA Accreditation - 6,000 (6,000) -100.0% 5,400 600 - - Actuarial Services 16,000 16,000 - 0.0% 16,500 (500) 20,500 26,500 Audit - Financial 21,000 19,500 1,500 7.7% 18,070 1,430 18,510 9,083 Audit - Claims - - - 0.0% - - - 30,953 Legal-Board Counsel-G&A 30,000 30,000 - 0.0% 25,000 5,000 22,869 28,149 Legal-Outside-G&A 5,000 5,000 - 0.0% - 5,000 - 21,838 Treasurer Fees 3,600 3,600 - 0.0% 3,600 - 3,600 3,600 Other Consultants 10,000 10,000 - 0.0% 2,500 7,500 11,472 - Payroll Services 4,500 4,500 - 0.0% 4,500 - 4,080 3,826

Total Professional Services 90,100 94,600 (4,500) -4.8% 75,570 19,030 81,031 123,949

Board Related Expenses

Gen'l Liability Training Reimb 12,000 12,000 - 0.0% 9,000 3,000 5,066 3,000 CSRMA Risk Control Online Serv 56,000 56,000 - 0.0% 55,000 1,000 55,125 28,750 Board Meeting Travel Expense 12,000 12,000 - 0.0% 8,000 4,000 6,641 8,125 BOD - Conferences 40,000 35,000 5,000 14.3% 30,000 5,000 26,717 36,947 Board Meeting Expenses 15,000 15,000 - 0.0% 10,000 5,000 13,201 8,033 Annual Meeting 35,000 40,000 (5,000) -12.5% 30,000 10,000 28,959 34,106

Total Board Expenses 170,000 170,000 - 0.0% 142,000 28,000 135,709 118,961

9Page 121Page 121

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY (CJPRMA)BUILDING OPERATIONSFY 2015-16



BUILDING OPS FY 15-16 FY14-15 (Decrease) (Decrease) FY 14-15 (Unfavorable) FY 13-14 FY 12-13

Taxes & Assessments 12,500 - 12,500 100.0% 12,500 (12,500) 34,427 2,632 Montevina Assn Dues - - - 0.0% - - 12,863 Utilities - Davita - - - 0.0% - - 22,913 CAM - Davita 33,000 100.0% 33,000 (33,000) Utilities - CJPRMA 15,000 15,000 - 0.0% 14,000 1,000 11,387 15,990 CAM - CJPRMA 27,000 27,000 - 0.0% 20,000 7,000 24,568 749 Janitorial Serv & Supplies 7,000 7,000 - 0.0% 7,000 - 6,143 4,040 Commission/Title/Escrow - - - 0.0% - - - 131,718 Relocation Expense - - - 0.0% - - - 10,014

Building Operations 94,500 49,000 12,500 25.5% 86,500 (37,500) 99,438 178,006

10Page 122Page 122

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY (CJPRMA)CAPITAL OUTLAYFY 2015-16



CAPITAL OUTLAY FY 15-16 FY14-15 (Decrease) (Decrease) FY 14-15 (Unfavorable) FY 13-14 FY 12-13

Capital Outlay 60,000 80,000 (20,000) -25.0% 30,000 50,000 - 162,755

Total Capital Outlay 60,000 80,000 (20,000) -25.0% 30,000 50,000 - 162,755

11Page 123Page 123

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY (CJPRMA)Direct Program Year ExpensesFY 2015-16



Program Year Expenses FY 15-16 FY14-15 (Decrease) (Decrease) FY 14-15 (Unfavorable) FY 13-14 FY 12-13

Asset Mgmt Fees 105,000 105,000 - 0.0% 102,000 3,000 87,910 93,871 Legal-Board Counsel Claims 85,000 85,000 - 0.0% 100,000 (15,000) 31,744 49,029 Legal-Outside-Claims 400,000 400,000 - 0.0% 600,000 (200,000) 490,476 127,511 Other Claim Expenses 100,000 100,000 - 0.0% 100,000 - 1,699 2,735

Total Program Expenses 690,000 690,000 - 0.0% 902,000 (212,000) 611,829 273,146

12Page 124Page 124

CALIFORNIA JOINT POWERS RISK MANAGEMENT AUTHORITY (CJPRMA)BUDGET FUNDINGFY 2015-16

FY 15-16

Projected Funding:PY 2015/2016 Administrative Funding 1,425,000$ CSRMA Member Payments 27,000$ Davita Rental Income 129,204$ Davita CAM Charges 40,872$ Risk Console Member Payments 15,400$

1,637,476$ Expenses:Proposed Administrative Expenditures 1,510,000$

Favorable/(Unfavorable) 127,476$

FY 14-15

Funding:

PY 2014/2015 Administrative Funding 1,425,000$ CSRMA Member Payments 28,625$ Davita Rental Income 129,204$ Davita CAM Charges 40,872$

1,623,701$ Expenses:

Projected Administrative Expenditures 1,347,936$

Favorable/(Unfavorable) 275,765$

13Page 125Page 125

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Page 126Page 126

Back to Agenda

The following trends were noted:

The number of excess reported claims examined increased by 24% from 2013 to 2104, and

then by another 23% from 2014 to 2015 (111 claims in 2013 to 143 in 2014 to 176 in 2015). This continuing trend is largely associated with CJPRMA opening files on reported matters, even when the primary reserve did not approach the member’s SIR (40 of the files examined this year had incurred values of $50,000 or less). Even taking this into consideration, claims counts do appear to be trending up.

The net incurred value in both the primary and excess layers has been growing. There was a 31% increase from $42.7 million to $56.5 million in 2015. This follows a 9% increase from 2013 to 2014. Some of the increase can be attributed to the addition of 33 files; however, average incurred values are also up.

At the primary level, the average incurred on a reported file has gone from $192,000 to $229,000.

The average total incurred (including excess reserves) on a reported file has increased from $298,000 to $315,000.

Mr. Bowlus identified three recommendations. These recommended items were also made in earlier reports. In the first instance, partial completion has been accomplished. The third is an ongoing process that needs special attention when there are staffing changes in member’s legal department:

Once a claim is reported and accepted as an excess file by CJPRMA, automated RMIS or Excel data exchange relative to critical financial developments should be provided by all members on at least a quarterly basis. There has been improvement in this area, but further progress is possible.

Quarterly captioned reports should be required on all watch list cases, regardless of whether outside or in-house counsel is involved.

When there are changes in legal departments, especially with members who handle their own litigation, there can be lapses in meeting excess reporting requirements. CJPRMA needs to make certain that new staff is clear on reporting requirements, and should follow up with a meeting to clarify reporting requirements if there are initial challenges.

Mr. Schweikhard has shared the primary audits with the relevant members. For the most part claims were well handled at the primary level. Findings have been shared with the individual members and recommendations have been made regarding improvement to primary claims handling.

Mr. Bowlus will provide a presentation to the Board of Directors on his findings.

General Manager recommends approval of the 2015 Claims Audit.

Fiscal Impact:

None.

Exhibits:

1. Copies of the 2015 Claims Audit Summary will be provided at the meeting 2. Copies of the 2015 Claims Audit will be provided at the meeting

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Page 128Page 128

Since 1979

City of Davis

City of Winters

City of Woodland

County of Yolo

Esparto Unified School District

City of West Sacramento

Yolo Emergency Communications Agency

Yolo/Solano Air Quality Management Disthct

Capay Valley Fire Protection District

Springlake Fire Protection District

California Superior Court County of Yolo

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Yolo County Law Library

Yolo County In-Home Supportive Services Public Authority

Yo]o County Local Agency Formation Commission

Davis Cemetery District

Madison Fire Protection District

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Yolo County Habitat Conservation JPA

Dunnigan Fire Protection District

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Clarksburg Fire Protection District

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YOLO COUNTY PUBLIC AGENCY RISK MANAGEMENT INSURANCE AUTHORITY

77 W. Lincoln Avenue Woodland, CA95695 (530)666-4456 FAX (530)666-4491 www.ycparmia.com

David Clovis, General Manager CJPRMA

3201 Doolan Road, Suite 285

Livermore, Ca. 94551

RECEIVED

MAR • c• 2015

3/26/15

David,

The YCPARMIA Board has appointed Marinda Griese, Staff Investigator, as YCPARMIA's Board

Alternate effective immediately. Bes•a rds,

Cc Marinda Griese

Page 129Page 129

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Page 132Page 132

2015 Business Calendar Updated 03/11/2015

pg. 2

May Distribution of Board of Directors Annual Meeting Agenda– 05/12/2015 Board of Directors Annual Meeting – 05/19/2015 – 05/21/2015

o Commercial Insurance Renewals o Proposed Budget for 2015-2016 o Claims Audit Presentation o AB 1234 Ethics Training (even numbered years)

Return Certificate of Coverage Renewals Lists to Staff Deadline for Members to submit Agenda items for June Meeting – 05/28/2015

June

CJPRMA Board Member Orientation – 06/03/2015 Distribution of Board of Directors Meeting Agenda – 06/11/2015 Board of Directors Meeting – 06/18/2015

o Bi-annual election of President and Vice President (even numbered years) o Election of Executive Committee Members o Bi-annual Review of Conflict of Interest Code (odd numbered years) o Bi-annual Appointment of Treasurer (even numbered years)

Certificates of Coverage Renewals mailed to certificate holders (6/30/2015) Risk Management Plan Revisions Requests for reimbursement of liability training expenses due by August 31,2015

July

Distribution of Executive Committee Meeting Agenda – 07/09/2015 Executive Committee Meeting – 07/16/2015 General Liability Premiums Billed Auto Physical Damage Program Premiums Billed Property Program Premiums Billed Boiler & Machinery Premiums Billed Member Quarterly Payroll Reports -07/31/2015

August

Financial Audit in process Actuarial Study in process Marshburn Training – 08/18/2015 – 08/19/2015 Requests for reimbursement of liability training expenses due by August 31,2015

Page 133Page 133

2015 Business Calendar Updated 03/11/2015

pg. 3

September Distribution of Executive Committee Agenda – 09/10/2015 Executive Committee Meeting – 09/18/2015 CAJPA Conference 09/15/2015 - 09/18/2015

October

Deadline for Members to submit Agenda items for October Meeting – 10/01/2015 Distribution of Board of Directors Meeting Agenda – 10/15/2015 Board of Directors Meeting – 10/22/14

o Actuarial Study Presented o Approval of Annual Meeting and Holiday Calendars

Member Quarterly Payroll Reports – 10/30/2015 November

Distribution of Executive Committee Meeting Agenda – 11/12/2015 Executive Committee Meeting – 11/19/2015 Deadline for Members to submit Agenda items for December Meeting –

11/19/2015 December

Distribution of Board of Directors Meeting Agenda – 12/10/2015 Board of Directors Meeting – 12/17/2015

o Annual Report Presented o Financial Audit Presented o Annual Review of Investment Policy

Deadline for change to SIR or withdrawal from any CJPRMA program - 12/31/2015

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Page 135Page 135

Back to Agenda

in maturity from January 2020 to February 2025. Three securities were sold to facilitate the additions to the portfolio. As of April 30, 2015, the Long Term Growth/Tactical Account was valued at $40,792,857. This was a decrease of $7,358 from its valuation of $40,800,215 on January 31, 2015. Multiple securities were purchased across the Treasury, Agency, Asset Backed, Commercial Paper and Corporate sectors of the market to keep the portfolio duration and structure in line with Chandler objectives. The purchased securities ranged in maturity from June 2015 to January 2020. Two securities were sold and four matured to facilitate the additions to the portfolio.

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.

Fiscal Impact: From January 31, 2015 to April 30, 2015, the value of the investment portfolio decreased by approximately $2,178,838

Exhibits:

1. Investment Report from Chandler Asset Management, dated 04/30/2015

Page 136Page 136

CHANDLER ASSET MAN AGEMENT

6225 Lusk Boulevard | San Diego, CA 92121 | Phone 800.317.4747 | Fax 858.546.3741 | www.chandlerasset.com

Investment Report

Period Ending

April 30, 2015

California Joint Powers

Risk Management Authority

Page 137Page 137

TABLE OF CONTENTS

Economic Update

Account Profile

SECTION 1

SECTION 2

1

1

Page 138Page 138

SECTION 1

Economic Update

2

2

Page 139Page 139

Moderate Economic Growth

Source: US Department of Labor Source: Federal Reserve

Source: US Department of Commerce Source: U.S. Department of Labor

0

50

100

150

200

250

300

350

400

450

(00

0's

)

Nonfarm Payroll (000's)

0

100

200

300

400

500

600

700

800

(00

0's

)

Single-Family Housing Starts

0.5%

1.0%

1.5%

2.0%

2.5%

Core CPI Y-O-Y % Change

77.0%

77.5%

78.0%

78.5%

79.0%

79.5%

80.0%

Capacity Utilization

3

Page 140Page 140

Treasury Yields

Source: Bloomberg

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

1/31/15 4/30/15

0.00%

0.10%

0.20%

0.30%

0.40%

0.50%

0.60%

0.70%

Yield on the Two-Year NoteApril 2013 through April 2015

January 31, 2015 and April 30, 2015

4

4

Page 141Page 141

SECTION 2

Account Profile

5

5

Page 142Page 142

Objectives

Chandler Asset Management Performance Objectives 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.

Strategy In order to achieve these objectives, the portfolios invest in high quality fixed income securities consistent with the investment

policy and California Government Code.

Investment Objectives

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 for investment 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 to

provide 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 to

provide for long-term asset growth in order to offset potential inflation. The Long Term Growth Account (Tactical) has been

implemented to help manage the combination of extraordinary low interest rates and the intermediate risk of rates rising.

6

Page 143Page 143

Compliance

Category Standard Comment

Asset-Backed and

Mortgage-Backed Securities

Combined 20% Maximum, 5% per issue,

AA-ratedComplies

Banker’s Acceptances 40% max; A1/P1; <180 days max maturity Complies

Commercial Paper 25% max; A1/P1; <270 days max maturity Complies

LAIF 20% max Complies

Medium Term Notes 30% max; A-rated Complies

Money Market Funds 20%; AAA or SEC Registered Complies

Negotiable CDs 30%; 3-year maximum Complies

Time Certificates of Deposits No limit; FDIC Insured; 3-years max maturity Complies

Treasury Issues No limit Complies

US Agencies No limit Complies

Futures and Options Prohibited Complies

Reverse Repos Prohibited Complies

Guaranteed SBA Notes Prohibited Complies

Derivative Securities 5% per issue; 5-year maximum Complies

Range notes Prohibited Complies

MBS IO Strips Prohibited Complies

Zero interest accrual Prohibited Complies

California Joint Powers Risk Management Authority

April 30, 2015

The portfolio complies with State law and with the Authority’s investment policy, except as noted below.

General Parameters

COMPLIANCE WITH INVESTMENT POLICY

7

7

Page 144Page 144

Compliance

Modified Duration Approx. equal to duration of liabilities Complies

Maximum Maturity 5 years Complies

% invested <1 year Enough for cashflow Complies

Modified Duration Within 80 to 120% of the benchmark Complies

Maximum Maturity 10 years Complies

California Joint Powers Risk Management Authority

April 30, 2015

COMPLIANCE WITH INVESTMENT POLICY

Long Term Growth Account

Account Specifics Parameter

Loss Payment Account

8

8

Page 145Page 145

Account Profile

Total Market Value 11,462,905 13,254,300

Modified Duration 0.87 0.91 0.91

Average Quality** NR AA/Aa2 AA/Aa2

Average Market Yield 0.23 % 0.43 % 0.39 %

Average Purchase Yield n/a 0.49 % 0.44 %

Benchmark* Portfolio Portfolio

Average Maturity (yrs) 0.89 0.95 0.93

* 0-3 yr Treasury

** Benchmark is a blended rating of S&P, Moody's, and Fitch. Portfolio is S&P and Moody's respectively.

CJPRMA - The Loss Payment Account

04/30/2015 01/31/2015

Portfolio Characteristics

Several securities were purchased in the Asset Backed, Commercial Paper, and Corporate sectors of the market to keep the portfolio structure in line with Chandler objectives. One security was sold and three matured to facilitate the additions to the portfolio. $1.8 million was withdrawn from the portfolio during the reporting period.

9

9

Page 146Page 146

Sector Distribution


April 30, 2015 January 31, 2015

The sector allocation evolved predominately driven by the 12.1% reduction in the LAIF allocation to 10.9% of the portfolio.

10

10

Page 147Page 147

Quality Distribution


1/31/15 2.0 % 57.7 % 17.3 % 0.0 % 23.0 %

4/30/15 6.2 % 65.2 % 17.6 % 0.0 % 10.9 %

Source: S&P Ratings

AAA AA A <A NR

April 30, 2015 vs. January 31, 2015

1/31/154/30/15

11

11

Page 148Page 148

Duration Distribution



1/31/15 31.7 % 5.9 % 20.0 % 31.6 % 10.8 % 0.0 % 0.0 % 0.0 %

4/30/15 24.6 % 5.2 % 25.3 % 37.2 % 7.8 % 0.0 % 0.0 % 0.0 %

0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+

The duration of the portfolio was unchanged during the reporting period, remaining at 0.91. The Chandler team continues to expect interest rate volatility to stay elevated in coming months offset by the global demand for dollar based assets, which should keep the overall level of interest rates from moving materially higher.

12

12

Page 149Page 149

Investment Performance

0-3 yr Treasury* 0.04 % 0.42 % 0.33 % 0.32 % 0.48 % 2.00 % 3.44 %

CJPRMA - The Loss Payment Account 0.11 % 0.51 % 0.42 % 0.43 % 0.68 % 2.33 % 3.88 %

*1-5 Year Govt until 7/31/01; Then 0-3Year Treasuries

Annualized3 months 12 months 2 years 3 years 5 years 10 years Since Inception

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 the ending value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.

CJPRMA - The Loss Payment AccountPeriod EndingApril 30, 2015

Total Rate of Return

Annualized Since Inception

August 31, 1995

13

13

Page 150Page 150

Account Profile



Average Quality** AAA AA+/Aa1 AA+/Aa1





* BAML 5-10 Yr US Treasury/Agency Index


CJPRMA The Long Term Growth Account

04/30/2015 01/31/2015


Multiple securities were purchased across the Treasury, Agency, and Corporate sectors of the market to keep the portfolio duration and structure in line with Chandler objectives. The purchased securities ranged in maturity from January 2020 to February 2025. Three securities were sold to facilitate the additions to the portfolio.

14

14

Page 151Page 151

Sector Distribution


April 30, 2015 January 31, 2015

The sector allocation changed moderately during the reporting period. The Treasury and Corporate allocation each increased by 4.6% and 1.0%, to 30.3% and 14.6% of the portfolio, respectively, offset by declines in the Agency and Money Market allocation of 3.0% and 2.8%, to 54.5% and 0.5% of the portfolio, respectively.

15

15

Page 152Page 152



1/31/15 3.3 % 89.3 % 7.4 % 0.0 % 0.0 %

4/30/15 0.5 % 91.1 % 8.4 % 0.0 % 0.0 %

Source: S&P Ratings

AAA AA A <A NR


1/31/154/30/15

16

16

Page 153Page 153



Portfolio Compared to the Benchmark as of April 30, 2015

Benchmark* 0.1 % 0.0 % 0.0 % 0.0 % 17.0 % 54.2 % 28.7 % 0.0 %

Portfolio 0.5 % 0.0 % 1.2 % 3.7 % 27.3 % 37.2 % 30.0 % 0.0 %

0 - 0.5 0.5 - 1 1 - 2 2 - 3 3 - 5 5 - 7 7 - 10 10+


The duration of the portfolio increased, currently 5.90 versus 5.69 at the end of the prior reporting period. Interest rate volatility is poised to stay elevated in coming months offset by the global demand for dollar based assets, which should keep the overall level of interest rates from moving materially higher.

17

17

Page 154Page 154


BAML 5-10 Yr US Treasury/Agency Index -1.32 % 5.57 % 1.06 % 1.97 % 4.94 % 5.31 % 6.10 %

CJPRMA The Long Term Growth Account -0.89 % 5.22 % 1.63 % 2.46 % 5.39 % 5.83 % 6.53 %



CJPRMA The Long Term Growth AccountPeriod EndingApril 30, 2015



October 31, 1995

18

18

Page 155Page 155

Account Profile



Average Quality** AAA AA+/Aa1 AA/Aa1







CJPRMA The Long Term Growth Account (Tactical)

04/30/2015 01/31/2015


Multiple securities were purchased across the Treasury, Agency, Asset Backed, Commercial Paper, and Corporate sectors of the market to keep the portfolio duration and structure in line with Chandler objectives. The purchased securities ranged in maturity from June 2015 to January 2020. Two securities were sold and four matured to facilitate the additions to the portfolio.

19

19

Page 156Page 156

Sector Distribution


April 30, 2015 January 31, 2015

The sector allocation was relatively stable with only modest changes, all of which were less than 1.0% of the total portfolio.

20

20

Page 157Page 157



1/31/15 3.8 % 82.1 % 12.0 % 0.0 % 2.1 %

4/30/15 5.1 % 82.1 % 10.7 % 0.0 % 2.1 %

Source: S&P Ratings

AAA AA A <A NR


1/31/154/30/15

21

21

Page 158Page 158



Portfolio Compared to the Benchmark as of April 30, 2015

Benchmark* 0.8 % 0.1 % 4.7 % 32.9 % 25.4 % 22.7 % 13.4 % 0.0 %

Portfolio 3.1 % 3.4 % 9.0 % 22.4 % 30.4 % 12.0 % 19.6 % 0.0 %

0 - 0.25 0.25 - 0.50 0.50 - 1 1 - 2 2 - 3 3 - 4 4 - 5 5+


The duration of the portfolio increased to 2.50 versus 2.42 at the end of the prior reporting period. Interest rate volatility is poised to stay elevated in coming months offset by the global demand for dollar based assets, which should keep the overall level of interest rates from moving materially higher.

22

22

Page 159Page 159


BAML 1-5 Yr US Treasury/Agency Index -0.05 % 1.68 % N/A N/A N/A N/A 1.64 %

CJPRMA The Long Term Growth Account (Tactical) 0.00 % 1.75 % N/A N/A N/A N/A 1.93 %



CJPRMA The Long Term Growth Account (Tactical)Period EndingApril 30, 2015



December 31, 2013

23

23

Page 160Page 160

Issuers

24

24

Page 161Page 161

Issuers Continued

25

25

Page 162Page 162

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Page 163Page 163

CALIFORNIA JOINT POWER RISK MANAGEMENT AUTHORITY BOARD POLICY Number B21 Page 1 of 1

Subject: Expense Reimbursement for CJPRMA for Board Members/Alternates and Staff

Date Adopted: November 16, 2006

Effective Date: November 16, 2006

Agenda Bill 913 Date Revised:

Supersedes:

B19 & B7

Board Members/Alternates and Staff shall be reimbursed for actual and necessary expenses incurred in performing their official duties. 1) Attendance at Meetings

Board Members/Alternates and Staff shall be reimbursed for the actual and necessary expenses they incur to attend meetings, such as Board meetings, Executive Committee meetings, Committee meetings or meetings of a similar nature.

They will be compensated for the reasonable cost of travel, meals, lodging, and other related expenses.

Mileage shall be reimbursed at the current Internal Revenue Service rate.

2) Attendance at Conferences or Organized Educational Activities

Board Members/Alternates and Staff shall be reimbursed for the actual and necessary expenses they incur to attend authorized conferences, organized educational activities, or activities of a similar nature.

They will be compensated for the reasonable cost of travel, meals, lodging, and other related expenses.

Mileage shall be reimbursed at the current Internal Revenue Service rate.

3) Number of Authorized Attendees

CJPRMA will reimburse its members for the cost of having one representative from each member entity attend the CAJPA and PARMA conferences, subject to the limitations contained herein. A member that elects to attend a conference/seminar described below will be limited to attendance at either the CAJPA or PARMA conference during any fiscal year.

CJPRMA will reimburse its members for the cost of having two representatives from each member entity attend its annual meeting, as long as at least one is a Board Member or Alternate. CJPRMA will reimburse its members for the cost of having one representative from each member entity attend a risk management related conference in lieu of attending the CAJPA or PARMA Page 164Page 164






Supersedes:

B19 & B7

Annual Conference. The pre-approved lists of conferences that may be submitted for reimbursement are listed under item number 15 of this policy. The maximum amount of reimbursement for these courses will be $2,500. Members that intend to submit a request for reimbursement for a conference/seminar that is not included on the list must receive prior approval from the general manager. Formal requests to expand the current list of approved conferences will be submitted to the Executive Committee for approval.

4) Lodging costs shall not exceed the maximum group rate published by the conference or activity

sponsor, provided that it is available at the time of booking. If unavailable, comparable lodging consistent with this policy, will be authorized.

5) The cost of meals shall be limited to the following: Breakfast $15.00 Lunch $20.00 Dinner $40.00

Receipts shall be required for the above reimbursements. In the event that receipts are unavailable, the reimbursement will be limited to the current Internal Revenue Service rate.

6) An expense reimbursement line item will be included for reasonable non-meal tips. 7) Government and/or group rates offered by a provider of transportation or lodging services shall be

utilized whenever possible. 8) All expenses that do not fall within the Board expense policy shall be approved by the governing

body, in a public meeting, before the expense is incurred. 9) Expense forms shall be provided by CJPRMA and must be utilized for reimbursements. 10) Expense reports shall document that the expenses meet the existing policy for expenditure of

public resources. 11) Expense reports shall be submitted within a reasonable period of time, as determined by the Board

of Directors, and shall be accompanied by receipts documenting each expense. 12) All documents related to reimbursable agency expenditures are public records subject to disclosure

under the California Public Records Act. Page 165Page 165






Supersedes:

B19 & B7

13) Expense reports shall be retained by CJPRMA in compliance with its Records Retention Policy. 14) Ethics training shall be provided pursuant to the requirements set forth in the California

Government Code.

15) List of Preapproved Conferences: Public Agency Risk Managers Association (PARMA) Annual ConferenceCa Association of Joint Powers Authority (CAJPA) Annual Conference, Legislative Action Days, Finance &

Technology Conference, Risk Pool Management CoursePublic Risk Insurance Management Association (PRIMA) Annual ConferenceAssociation of Government Risk Pools (AGRIP) Annual Conference, Fall Education Forum, Risk Insurance Management Society (RIMS) Annual ConferenceVENTIV Corporation Annual Risk Console Educational Forum AON Corporation Risk Pool Symposium, Annual Property SymposiumCa. Public Employment Relations Association (CAPELRA) Annual Conference

Authorized Signature

Robert J. German , General Manager

Page 166Page 166

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Page 167Page 167

Page 168

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Page 170

Page 171

AMENDED IN ASSEMBLY APRIL 16, 2015

AMENDED IN ASSEMBLY APRIL 8, 2015

california legislature—2015–16 regular session

ASSEMBLY BILL No. 1146

Introduced by Assembly Member Jones

February 27, 2015

An act to amend, repeal, and add Section 115800 of the Health andSafety Code, relating to recreational safety.

legislative counsel’s digest

AB 1146, as amended, Jones. Skateboard parks.Existing law prohibits an operator of a skateboard park from

permitting a person to ride a skateboard at the park, unless the personis wearing a helmet, elbow pads, and knee pads. Existing law providesthat a skateboard facility owned or operated by a local public agencythat is not supervised on a regular basis may satisfy the aboverequirement if it complies with certain things, including the adoptionof an ordinance that requires a person riding a skateboard in the facilityto wear a helmet, elbow pads, and knee pads, as provided. Existing lawprovides that a public entity is not liable to a person who participatesin a hazardous recreational activity and skateboarding at a facility ownedor operated by a public entity as a public skateboard park is a hazardousrecreational activity, if certain conditions are met.

For purposes of the above provisions relating to skateboard safetyand liability, among others, this bill would include other wheeledrecreational devices, as defined, until an unspecified date. January 1,2020.

97

Page 172Page 172

Vote: majority. Appropriation: no. Fiscal committee: no.

State-mandated local program: no.

The people of the State of California do enact as follows:

line 1 SECTION 1. Section 115800 of the Health and Safety Code line 2 is amended to read: line 3 115800. (a) An operator of a skateboard park shall not permit line 4 a person to ride a skateboard or other wheeled recreational device line 5 in the skateboard park, unless that person is wearing a helmet, line 6 elbow pads, and knee pads. line 7 (b) With respect to a facility, owned or operated by a local public line 8 agency, that is designed and maintained for the purpose of riding line 9 a recreational skateboard or other wheeled recreational device,

line 10 and that is not supervised on a regular basis, the requirements of line 11 subdivision (a) may be satisfied by compliance with the following: line 12 (1) Adoption by the local public agency of an ordinance line 13 requiring a person riding a skateboard or other wheeled recreational line 14 device at the facility to wear a helmet, elbow pads, and knee pads. line 15 (2) The posting of signs at the facility affording reasonable line 16 notice that a person riding a skateboard or other wheeled line 17 recreational device in the facility must wear a helmet, elbow pads, line 18 and knee pads, and that a person failing to do so will be subject to line 19 citation pursuant to the ordinance required by paragraph (1). line 20 (c) “Local public agency” for purposes of this section includes, line 21 but is not limited to, a city, county, or city and county. line 22 (d) For purposes of this section, “other wheeled recreational line 23 device” means nonmotorized bicycles, scooters, in-line skates, line 24 roller skates, or wheelchairs. line 25 (e) (1) Riding a skateboard or other wheeled recreational device, line 26 or any concurrent combination of these activities at a facility or line 27 park owned or operated by a public entity as a public skateboard line 28 park, as provided in paragraph (3), shall be deemed a hazardous line 29 recreational activity within the meaning of Section 831.7 of the line 30 Government Code if all of the following conditions are met: line 31 (A) The person riding the skateboard or other wheeled line 32 recreational device is 12 years of age or older. line 33 (B) The riding of the skateboard or other wheeled recreational line 34 device that caused the injury was stunt, trick, or luge riding.

97

— 2 —AB 1146

Page 173Page 173

line 1 (C) The skateboard park is on public property that complies line 2 with subdivision (a) or (b). line 3 (2) In addition to subdivision (c) of Section 831.7 of the line 4 Government Code, this section does not limit the liability of a line 5 public entity with respect to any other duty imposed pursuant to line 6 existing law, including the duty to protect against dangerous line 7 conditions of public property pursuant to Chapter 2 (commencing line 8 with Section 830) of Part 2 of Division 3.6 of Title 1 of the line 9 Government Code. However, this section does not abrogate or

line 10 limit any other legal rights, defenses, or immunities that may line 11 otherwise be available at law. line 12 (3) (A) Except as provided in subparagraph (B), for public line 13 skateboard parks that were constructed on or before January 1, line 14 1998, this subdivision shall apply to hazardous recreational activity line 15 injuries incurred on or after January 1, 1998, and before January line 16 1, 2001. For public skateboard parks that are constructed after line 17 January 1, 1998, this subdivision shall apply to hazardous line 18 recreational activity injuries incurred on or after January 1, 1998. line 19 For purposes of this subdivision, a skateboard facility that is a line 20 movable facility shall be deemed constructed on the first date it is line 21 initially made available for use at a location by the local public line 22 agency. line 23 (B) For public skateboard parks that were constructed after line 24 January 1, 1996, and before January 1, 1998, this subdivision shall line 25 apply to hazardous recreational activity injuries incurred on or line 26 after January 1, 2012. line 27 (4) The appropriate local public agency shall maintain a record line 28 of all known or reported injuries incurred by a person riding a line 29 skateboard or other wheeled recreational device in a public line 30 skateboard park or facility. The local public agency shall also line 31 maintain a record of all claims, paid and not paid, including any line 32 lawsuits and their results, arising from those incidents that were line 33 filed against the public agency. Copies of the records of claims line 34 and lawsuits shall be filed annually, no later than January 30 each line 35 year, with the Assembly Committee on Judiciary and the Senate line 36 Committee on Judiciary. line 37 (5) (A) Except as provided in subparagraph (B), this subdivision line 38 shall not apply on or after January 1, 2001, to public skateboard line 39 parks that were constructed on or before January 1, 1998, but shall

97

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line 1 continue to apply to public skateboard parks that are constructed line 2 after January 1, 1998. line 3 (B) On and after January 1, 2012, this subdivision shall apply line 4 to public skateboard parks that were constructed on or after January line 5 1, 1996. line 6 (6) For purposes of injuries that occur while operating a wheeled line 7 recreational device described in subdivision (d) in a skateboard line 8 facility, this subdivision shall apply to any claim filed on or after line 9 January 1, 2016.

line 10 (f) This section shall remain in effect only until _____ January line 11 1, 2020, and as of that date is repealed, unless a later enacted line 12 statute, that is enacted before ______ January 1, 2020, deletes or line 13 extends that date. line 14 SEC. 2. Section 115800 is added to the Health and Safety Code, line 15 to read: line 16 115800. (a) An operator of a skateboard park shall not permit line 17 a person to ride a skateboard in the park, unless that person is line 18 wearing a helmet, elbow pads, and knee pads. line 19 (b) With respect to a facility, owned or operated by a local public line 20 agency, that is designed and maintained for the purpose of riding line 21 a recreational skateboard, and that is not supervised on a regular line 22 basis, the requirements of subdivision (a) may be satisfied by line 23 compliance with the following: line 24 (1) Adoption by the local public agency of an ordinance line 25 requiring a person riding a skateboard at the facility to wear a line 26 helmet, elbow pads, and knee pads. line 27 (2) The posting of signs at the facility affording reasonable line 28 notice that a person riding a skateboard in the facility must wear line 29 a helmet, elbow pads, and knee pads, and that a person failing to line 30 do so will be subject to citation under the ordinance required by line 31 paragraph (1). line 32 (c) “Local public agency” for purposes of this section includes, line 33 but is not limited to, a city, county, or city and county. line 34 (d) (1) Riding a skateboard at a facility or park owned or line 35 operated by a public entity as a public skateboard park, as provided line 36 in paragraph (3), shall be deemed a hazardous recreational activity line 37 within the meaning of Section 831.7 of the Government Code if line 38 all of the following conditions are met: line 39 (A) The person riding the skateboard is 12 years of age or older.

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line 1 (B) The riding of the skateboard that caused the injury was stunt, line 2 trick, or luge riding. line 3 (C) The skateboard park is on public property that complies line 4 with subdivision (a) or (b). line 5 (2) In addition to subdivision (c) of Section 831.7 of the line 6 Government Code, this section does not limit the liability of a line 7 public entity with respect to any other duty imposed pursuant to line 8 existing law, including the duty to protect against dangerous line 9 conditions of public property pursuant to Chapter 2 (commencing

line 10 with Section 830) of Part 2 of Division 3.6 of Title 1 of the line 11 Government Code. However, this section does not abrogate or line 12 limit any other legal rights, defenses, or immunities that may line 13 otherwise be available at law. line 14 (3) (A) Except as provided in subparagraph (B), for public line 15 skateboard parks that were constructed on or before January 1, line 16 1998, this subdivision shall apply to hazardous recreational activity line 17 injuries incurred on or after January 1, 1998, and before January line 18 1, 2001. For public skateboard parks that are constructed after line 19 January 1, 1998, this subdivision shall apply to hazardous line 20 recreational activity injuries incurred on or after January 1, 1998. line 21 For purposes of this subdivision, a skateboard facility that is a line 22 movable facility shall be deemed constructed on the first date it is line 23 initially made available for use at a location by the local public line 24 agency. line 25 (B) For public skateboard parks that were constructed after line 26 January 1, 1996, and before January 1, 1998, this subdivision shall line 27 apply to hazardous recreational activity injuries incurred on or line 28 after January 1, 2012. line 29 (4) The appropriate local public agency shall maintain a record line 30 of all known or reported injuries incurred by a person riding a line 31 skateboard in a public skateboard park or facility. The local public line 32 agency shall also maintain a record of all claims, paid and not paid, line 33 including any lawsuits and their results, arising from those incidents line 34 that were filed against the public agency. Copies of the records of line 35 claims and lawsuits shall be filed annually, no later than January line 36 30 each year, with the Assembly Committee on Judiciary and the line 37 Senate Committee on Judiciary. line 38 (5) (A) Except as provided in subparagraph (B), this subdivision line 39 shall not apply on or after January 1, 2001, to public skateboard line 40 parks that were constructed on or before January 1, 1998, but shall

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line 1 continue to apply to public skateboard parks that are constructed line 2 after January 1, 1998. line 3 (B) On and after January 1, 2012, this subdivision shall apply line 4 to public skateboard parks that were constructed on or after January line 5 1, 1996. line 6 (e) This section shall become operative on ________ January line 7 1, 2020.

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CAJPA-Sponsored AB 1402 (Harper) Inverse Condemnation: Comparative Fault Summary: AB 1402, authored by Assembly Matthew Harper (R-Huntington Beach) will apply the provisions of Section 998 of the Code of Civil Procedure to actions in inverse condemnation, thus allowing a plaintiff's compensation to be reduced if an earlier settlement offer that was more favorable than the final judgment was rejected. AB 1402 also reduces compensation to the plaintiff by the amount the plaintiff contributed to his comparative fault. Why this is needed: CAJPA believes a change in statute is needed as a basic issue of fairness. Today, plaintiffs in other actions are held responsible for their portion of damages. However, a public entity in an inverse condemnation action must pay the entire damage award, even if the plaintiff was responsible for a greater portion of the damage. AB 1402 also saves taxpayer dollars by correcting this unfair process to ensure public entities are not asked to pay more in damages than was actually caused by that entity. Background: Comparative fault principles are applied by courts in other, comparable areas of tort law such as strict products liability. Courts also apportion fault between negligent and strictly liable defendants, so strictly liable defendants can seek indemnity based on comparative fault. Inverse condemnation liability is based on the California Constitution, Article I, section 19, which provides: “Private property may be taken or damaged for public use only when just compensation, ascertained by a jury unless waived, has first been paid to, or into court for, the owner.” Liability under this section is imposed regardless negligence or fault, and has been extended in a variety of cases, including flooding, land subsidence, a broken water main and even a sewer backup. The law of inverse condemnation is expanding, as claimants seek to fit their claims into the “takings” theory in order to recover attorney fees and avoid elements of proof necessary under nuisance and dangerous condition law, and statutory affirmative defenses. An inverse condemnation defendant may seek equitable indemnity based on comparative fault. Currently, however, there is no case law establishing that a plaintiff’s comparative fault can be raised as an affirmative defense. As the use of inverse condemnation has expanded, failure to consider comparative fault has led to unjust results. That is why AB 1402 is needed. Examples of why AB 1402 is needed:

A self insurance pool of sanitary districts, had a recent claim by a homeowner who built a home addition without proper permits and with new bathroom drains below the height of the nearest manhole, who then sued under inverse condemnation when a back-up occurred;

The same pool has another claim where the homeowner’s contractor built a home addition over the lateral cleanout, which caused a sewage backup into the crawlspace rather than in the yard, and the homeowner sued the member District under inverse condemnation;

A self insurance pool of cities, has a case pending against a member City where the office building was constructed without a backflow prevention device as required by the City Ordinance and Uniform Plumbing Code, and the business owner sued under inverse for a sewer backup;

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CALIFORNIA ASSOCIATION OF JOINT POWERS AUTHORITIES

2015 ACTION BILLS

AB 280 (Brown): This bill would give the small claims court jurisdiction over an action filed by a

city, county, city and county, school district, county office of education, community college

district, local district, or any other local public entity if the amount of the demand does not

exceed $10,000. This bill would also eliminate the provision relating to the transfer of small

claims actions where the opposing party is represented by counsel.

CAJPA Position: CAJPA SUPPORTS AB 280, which raises the limit for public agency claims to

be handled in small claims court from $5,000 to $10,000. Right now, CAJPA public agency

JPAs spend unnecessary additional funds to recover from those who cause damage to

property or injury to employees, or forgo recovery, because of the added costs of legal

representation and litigation when filing such claims in Superior Court. By raising the dollar

amount in small claims actions, this bill would ease the costs to collect on relatively small

claims and make recovery of public funds from those who caused the loss more feasible and

streamlined.

Bill Location: Assembly Committee on Judiciary

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