16.A
A Community Meeting was then held at the Hemet Public Library on October 17, 2023 where several residents of the Stoney Mountain community participated in exploring solutions to the speeding issue in their community.
On May 21, 2024, this proposal was presented to the Planning Commission. Several members of the Stoney Mountain Community also provided input at this meeting.
ANALYSIS:
The data collected by the Police Department in late 2022 resulted in the following table of metrics.
Total Vehicles Surveyed 3,980
Average MPH 29.2
Median MPH 30.0
Mode MPH 29.0
85th Percentile MPH 35.0
Maximum MPH 77
% 25-34 MPH 61%
> 50 MPH 0.1% (3)
Data collected by Public Works on August 31, 2023 resulted in the following table of metrics.
Average MPH Max MPH 85th Percentile 24 HR Volume
Alabaster Dr.
North
28 38 33 1,346
Alabaster Dr.
South
30 43 36 823
Cinnabar Ave
North
23 33 27 1,669
Cinnabar Ave
South
28 36 31 835
The results of the input from the October 2023 community meeting found speed lumps to be the most compatible traffic calming solution. The input from the community meeting for locations of the speed lumps were not as easy to decipher but was used along with some engineering analysis to prepare the attached proposed speed lump locations. The traffic calming proposal includes the construction of Speed Lumps in nine locations as shown in Attachment 2. A summary exhibit of the input received from multiple groups at the community meeting is included as Attachment 3.
DISCUSSION:
At the public October 23, 2023 community meeting, the City Public Safety Departments also provided input to the traffic calming tools and expressed their concerns and preference to the various tools.
The Public Safety Concerns mainly related to response times for the community. The City of Hemet Fire Department has provided a standard design that allows would allow their response vehicles to utilize the speed lump cutouts and reduce any impact to response times within the community.
16.A
The proposed speed lump locations took into consideration alternative routes that may shift traffic to a preferred street if it would allow the motorists to avoid and bypass a speed lump. the locations should not allow such a preference to shift traffic patterns to the extent possible.
The Planning Commission heard several members of the Stoney Mountain community at the May 21, 2024 meeting. Amongst a general support for the proposal, comments included how the worst and most frequent speeding occurs on Alabaster Drive and there was a request for an additional speed lump location on Alabaster. Some speakers preferred speed humps over speed lumps as well. Upon further review of the plan after receiving this input, the City Engineer is recommending one additional speed lump on Alabaster Drive as shown in Attachment 2.
STRATEGIC PLAN INTEGRATION:
GOAL ONE: QUALITY OF LIFE:
To ensure that Hemet is safe, clean, attractive and comfortable for all who live, work, and visit.
Objective 1: Enhance the visual appearance of the community to make it attractive and reduce blight.
Objective 2: Explore and implement homelessness solutions for the City of Hemet.
Objective 3: Increase Public Safety visibility and response.
FISCAL IMPACT:
The proposed speed lump installation cost is estimated at $90,000. Staff is recommending an appropriation from General Fund reserves in this amount to fund the project.
ALTERNATIVE(S):
1. Do not approve the proposed plan and appropriation
2. Provide alternative direction to the City Manager.
ATTACHMENT(S):
Attachment 1 - Resolution for Stoney Mt Speed Lumps
Attachment 2 - Stoney Mt Speed Lump Exhibit
Attachment 3 - Summary Exhibit of Input From Community Meeting
16.A
CITY OF HEMET RESOLUTION NO. 2024-XXX 1
CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2024-xxx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, APPROVING THE PROPOSED
STONEY MOUNTAIN TRAFFIC CALMING PLAN AND
AUTHORIZING THE ADMINISTRATIVE SERVICES
DIRECTOR TO RECORD A SUPPLEMENTAL
APPROPRIATION OF $90,000 FROM GENERAL FUND
BALANCE AND AUTHORIZING STAFF TO ADVERTISE
FOR BIDS TO INSTALL THE PROPOSED SPEED LUMPS
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, the Public Works Engineering Division is responsible for coordinating traffic calming requests; and
WHEREAS, in mid-2022 members of the Stoney Mountain Community reached out to the Police and Public Works Department with concerns about speeding in their Community; and
WHEREAS, in late 2022, the Police Department conducted some focused enforcement and collected data in the Stoney Mountain community; and WHEREAS, the Public Works Department coordinated additional 25 MPH signs and striping at several strategic locations in the Stoney Mountain Community.; and WHEREAS, Several additional Stoney Mountain community members started contacting City representatives and making public comments at City Council meetings regarding a continued vehicle speeding issue in early 2023; and
16.A
CITY OF HEMET RESOLUTION NO. 2024-XXX 1
WHEREAS, in August 2023, Public Works had traffic data collected for speed and volumes at two locations on Alabaster Dr. and two locations on Cinnabar Ave; and WHEREAS, a Community Meeting was then held at the Hemet Public Library on October 17, 2023 where several residents of the Stoney Mountain community participated in exploring solutions to the speeding issue in their community; and WHEREAS, on May 21, 2024, this proposal was presented to the Planning Commission and several members of the Stoney Mountain Community provided input at this meeting; and
WHEREAS, the City Engineer has revised the initial traffic calming proposal based on the input from the Planning Commission meeting by adding a 9th speed lump location.
WHEREAS, the estimated cost to install the nine speed lumps is $90,000.
WHEREAS, staff recommends approval of the traffic calming plan and requests an appropriation to fund the implementation of the plan.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
SECTION 1. FINDINGS – The recitals set forth above are hereby adopted as findings in support of this Resolution.
SECTION 2. Approves the proposed traffic calming plan for the Stoney Mountain community consisting of nine speed lump locations.
16.A
CITY OF HEMET RESOLUTION NO. 2024-XXX 1
SECTION 3. Authorizes the Administrative Services Director to record a supplemental appropriation in the amount of $90,000 to fund the construction of the speed lumps.
SECTION 4. Authorizes staff to advertise for bids to construct the speed lumps.
SECTION 5. EFFECTIVE DATE - This Resolution shall become effective upon its adoption.
PASSED, APPROVED AND ADOPTED this 25th Day of June.
____________________________
Joe Males, Mayor
ATTEST:
_____________________________
John Paul Maier, City Clerk
16.A
CITY OF HEMET RESOLUTION NO. 2024-XXX 1
State of California )
County of Riverside )
City of Hemet )
I, John Paul Maier, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 25th day of June, 2024, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
John Paul Maier, City Clerk
16.A
SHEET OF
Stoney Mountain Speed Lumps Exhibit
1 1 SHEETS
AS SHOWN
SCALE:
MAY 15, 2024
DATE:
SIGNATURE:
SIGNATURE:
DATE:
DATE:
CITY OF HEMET
16.A
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Table 3 - speed Bump
Table 3 - speed Lump
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Stoney Mountain
Traf?c Calming Measures
16.A
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jun 25 2024
Department: Community Development
Submitted by: Mark Prestwich, City Manager
Benigno Sandoval, Economic Development Manager;
☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:
Consideration and Approval of a Resolution of the City Council of the City of Hemet, California, Adopting a Commercial Facade Improvement Grant Program and Authorizing Waiver of Planning and Building Permit Fees for Program Participants
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Approve a Resolution Adopting a City of Hemet Commercial Facade Improvement Grant Program and Authorizing Waiver of Planning and Building Permit Fees for Program Participants BACKGROUND:
The City Council's adopted Strategic Plan and Safe and Clean Streets Initiative includes a Fiscal Year (FY) 2023-24 Action Item to create a two-year Commercial Facade Improvement Pilot Program. Staff researched similar programs in other communities to develop recommended program criteria and worked with City Council liaison Councilmember Lilienthal and the Planning Commission to receive feedback on program elements, including eligibility and funding recommendations. The Planning Commission provided recommendations to program design at their meeting of June 4, 2024.
DISCUSSION:
The recommended Commercial Facade Improvement Grant Program is designed to encourage enhancement of the physical appearance of City of Hemet commercial corridors. The City Council has appropriated $450,000 in the Fiscal Year 2023-24 budget in support of the program. An additional $450,000 is recommended to be included in the FY 2024-25 budget to expand the impact of this program.
The recommended Program offers two types of facade improvement grants, as well as up 10 hours of architectural fees and five hours of design assistance to alleviate up-front design costs.
16.B
The long-term objective is to upgrade and improve the physical appearance of businesses, encouraging retention of existing businesses, increasing property values, and improved business vitality.
Micro-Business Grant (Hemet Downtown Specific Plan Area) The Micro-Business Grant program is limited to the Downtown Specific Plan area and along Florida Avenue between Santa Fe Street and San Jacinto Street, with a preference for improvements on Florida Avenue. The focus is to enhance the attractiveness of downtown Hemet and encourage investment. This grant provides reimbursement of up to $30,000 for commercial building facade improvements with a 5% match requirement. Projects must be completed within six months of the grant approval or building permit issuance. Museums and nonprofit organizations are eligible to apply as well. The program includes an initial 60-day application period before applicants will be presented to the Planning Commission for review and prioritized for funding. $120,000 of the City's $450,000 FY 2023-24 appropriation is recommended to be distributed for Micro-Business Grants which will fund improvements at a minimum of four businesses. An additional $120,000 of the City's $450,000 FY 2024-25 appropriation is also recommended for Micro-Business Grants. The FY 2024-25 funding will fund a minimum of four additional Micro-Business Grant projects.
Macro-Business Center Grant (Citywide Retail Shopping Centers) The Macro-Business Center Grant is intended to incentivize an investment in a distressed large shopping center. This grant provides a competitive match requirement of 20% of eligible project costs. Projects must be completed within 18 months of building permit issuance. The City has allocated $330,000 of its FY 2023-24 budget for one Macro-Business Center Grant that requires a minimum private investment of $66,000, and the program requires a minimum total project investment of $350,000. The Planning Commission recommended the City allow a Macro-Business Center Project to use a combination of Fiscal Year 2023-24 and Fiscal Year 2024-25 funding should the cost of desired improvements exceed the City's macro-grant annual allocation.
With the exception of the architectural and design fees noted above, grant funding is to be used for labor and materials directly related to the commercial facade construction only. Program funds are to be used for exterior building improvements and revitalization rather than a simple routine maintenance or equipment (e.g. tools). The City of Hemet will provide reimbursement of expenses after it deems the project is completed, and upon the submission of invoices, and proof of payment. If the project is anticipated to extend beyond the required completion date, prior written City Manager approval is required to extend the performance period.
Program Priority
Applications for property improvements will be prioritized according to the following criteria:
1. Projects that involve a historical restoration/renovation of a building.
2. Projects that provided significant value to the Harvard District or Florida Avenue.
3. Properties or areas that historically have been targeted for graffiti and/or are prone to blight.
4. Properties or areas adjacent to historic facilities such as the Hemet Depot/Museum.
16.B
Eligible Applicants
Owners of commercially zoned property located within one of the following areas are eligible to apply for the Commercial Facade Improvement Grant:
1. Hemet Downtown Specific Plan Area
2. Florida Avenue between State Street and San Jacinto Street Eligible Property Improvements
All improvements shall conform to City Building Codes, the City’s Zoning Ordinance, and applicable Design Guidelines. Properties or businesses with active Zoning or Code Enforcement cases are not eligible for this program. Eligible improvements include, but are not limited to:
Historic Building Restoration (removal of removal of non-historic materials or additions such as stucco and exposing original masonry/brick)
Exterior Facade Treatments (stucco, brick veneer, paint removal, etc.) Replacement of Signage
New Awnings
Exterior Painting visible from right-of-way
Exterior Lighting
New Windows/Window Frames
New Exterior Doors
Construction of New Facade Elements
Anti-graffiti Treatment to Existing Windows
Installation of Permanent Landscaping
Construction of Outdoor Dining or Gathering Spaces
Murals, if they are professionally done and receive Planning Commission approval, provide an important aesthetic improvement and/or improve an expanse of wall or surface prone to graffiti.
Parking lot improvements complimentary to primary building facade improvements Roof and structural improvements complimentary to primary building facade improvements. Additional improvements that are deemed to be consistent with the intent of the program Application Process
Given the scale of investment anticipated with the Commercial Facade Improvement Grant Program and to ensure eligible businesses have an opportunity to consider participating this this program, it is recommended the City utilize a 60-day application period for potential applicants. All applications will be reviewed by City staff for eligibility and presented to the Planning Commission for review and potential award. The attached draft Commercial Facade Improvement Grant Program Guidelines provide a summary of the application process.
STRATEGIC PLAN INTEGRATION:
16.B
GOAL TWO: ECONOMIC OPPORTUNITY
To ensure that Hemet is a hub, with access to quality jobs, shopping options, and a varied and sustained tax base.
Objective 1: Develop business practices that welcome new development by streamlining processes.
Objective 2: Provide resources for new businesses to enhance the customer service experience.
FISCAL IMPACT:
The City Council has appropriated $450,000 in the FY 2023-24 budget in support of the Commercial Facade Improvement Program. An additional $450,000 is included in the draft FY 2024-25 budget to expand the impact of this program.
ALTERNATIVE(S):
1. Consider adjusting the recommended grant matches of 5% (micro) and 20% (macro) to a different match figure.
2. Provide alternative direction to the City Manager.
ATTACHMENT(S):
Attachment 1: Resolution for Commercial Facade Improvement Program Attachment 2: City of Hemet - Commercial Facade Improvement Program Guidelines
16.B
CITY OF HEMET RESOLUTION NO. 2024-XXX 1
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CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2024-xxx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, APPROVING THE
COMMERCIAL FACADE IMPROVEMENT GRANT
PROGRAM
The City Council of the City of Hemet, California (hereafter referred to as the “City Council”) does resolve as follows:
WHEREAS, the City Council's adopted Strategic Plan and Safe and Clean Streets Initiative includes a Fiscal Year (FY) 2023-24 Action Item to create a two-year Commercial Facade Improvement Pilot Program.
WHEREAS, the Commercial Facade Improvement Grant Program (CFIGP) is a new City of Hemet business incentive program to enhance the physical appearance and attract new visitors to the City’s major commercial corridors.
WHEREAS, the Hemet City Council has appropriated $450,000 towards the program for Fiscal Year 2023-24; and
WHEREAS, on June 25, 2024, the Hemet City Council appropriated an additional $450,000 towards the program for Fiscal Year 2024-25; and WHEREAS, the City Council desires to waive Application and Processing Fees Associated with the Commercial Facade Improvement Pilot Program as provided in Section 1.
WHEREAS, the waiver of fees has been reviewed by the City Council and staff in accordance with the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines, and it has been determined that the adoption of this ordinance is exempt from CEQA pursuant to Section 15061(b)(3) of the CEQA Guidelines.
16.B
CITY OF HEMET RESOLUTION NO. 2024-XXX 2
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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
SECTION 1. Application and Processing Fee(s) shall mean payment of an application fee to reflect the cost of building permit issuance and be waived for participation in the City of Hemet Commercial Facade Improvement Grant Program:
16.B
CITY OF HEMET RESOLUTION NO. 2024-XXX 3
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SECTION 2. CEQA FINDINGS - The City Council hereby finds that in accordance with the California Environmental Quality Act (“CEQA”) and the CEQA Guidelines, the adoption of this Resolution is exempt from CEQA pursuant to Section 15061(b)(3)
SECTION 3. EFFECTIVE DATE - This Resolution shall become effective on June 25, 2024.
16.B
CITY OF HEMET RESOLUTION NO. 2024-XXX 4
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16.B
CITY OF HEMET RESOLUTION NO. 2024-XXX 5
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PASSED, APPROVED AND ADOPTED this 25th day of June, 2024. ____________________________
Joe Males, Mayor
ATTEST:
_____________________________
John Paul Maier, City Clerk
16.B
CITY OF HEMET RESOLUTION NO. 2024-XXX 6
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State of California )
County of Riverside )
City of Hemet )
I, John Paul Maier, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 25th day of June 2024, and was passed by the following vote:
AYES: Council Members:
NOES: Council Members:
ABSTAIN: Council Members:
ABSENT: Council Members:
_____________________________
John Paul Maier, City Clerk
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
1 | P a g e
City of Hemet – Economic Development
City of Hemet
Commercial Facade Improvement Grant
Program Guidelines
June 2024
City of Hemet
https://www.hemetca.gov
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
2 | P a g e
City of Hemet – Economic Development
PROGRAM OVERVIEW
The Commercial Facade Improvement Grant Program (CFIGP) is a new City of Hemet business incentive program to enhance the physical appearance of and attract new visitors to the City’s major commercial corridors. The Program offers two types of facade improvement grants, as well as up ten (10) hours of architectural fees and five (5) hours of design assistance to alleviate up-front design costs. The City Council has appropriated $450,000 in Fiscal Year 2023-24 and the draft Fiscal Year 2024-25 budget includes an additional $450,000 toward this program.
Applications will be considered on a first-come, first-served basis. The long-term objective is to upgrade and improve the physical appearance of businesses, encouraging retention of existing businesses, increasing property values, and improving business vitality.
PROGRAM COMPONENTS
Commercial Facade Improvement Grants
Small-Business Grant – Provides reimbursement of up to Thirty Thousand Dollars ($30,000) for commercial building façade improvements with a 5% matching requirement. Projects must be completed within six (6) months of the grant approval or building permit issuance. The Small-Business Grant program is limited to the Downtown Specific Plan area with a preference for improvements on Florida Avenue. Museums and non-profit organizations are eligible to apply as well. The City has allocated $120,000 for Small-Business Grants which will fund improvements at a minimum of four (4) businesses in Fiscal Year 2023-24. The City intends to allocated an additional $120,000 toward Small-Business Grants in the Fiscal Year 2024-25 budget allowing an additional number of buildings to participate. Applications will be reviewed by staff and subsequently presented to the Planning Commission for review and prioritized for funding after an initial 60-day application period. All submittals following the initial application period will be considered for funding as they are submitted.
Macro-Business Center Grant – Provides a reimbursable matching grant of 80% of eligible project costs. The total cost of the improvement work must be more than Three Hundred Fifty Thousand Dollars ($350,000). Matching grant recipients are required to contribute a minimum of 20% of the total facade improvement costs. Projects must be completed within eighteen (18) months of building permit issuance. The City has allocated $330,000 for one Macro-Business Center Grant in Fiscal Year 2023-24 that requires a minimum private investment of $66,000. The City intends to allocate an additional $330,000 toward a Macro-Business Center Grant in Fiscal Year 2024-25.
Applicants for the Macro-Business Center Grant with projects in excess of $396,000 may consolidate funding from Fiscal Year 2023-24 and 2024-25 appropriations toward their
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
3 | P a g e
City of Hemet – Economic Development
project so long as a match of 20% is provided. Planning Commission approval is required for all Macro-Business Center Grants.
With the exception of architectural and design assistance noted below, grant funding is to be used for labor and materials directly related to the commercial facade construction only.
Program funds are to be used for exterior building improvements and revitalization rather than a simple routine maintenance or equipment (e.g. tools).
The grant program will provide reimbursement of expenses after it deems the project is completed, and upon the submission of invoices, and proof of payment. If the project is anticipated to extend beyond the required completion date, prior written City Manager approval is required to extend the performance period.
Architectural Design or Design Assistance
The City of Hemet will provide reimburse a maximum of ten (10) hours of Architectural Design Assistance for Exterior Commercial Facade Improvements to approved applicants.
The City will also reimburse up to five (5) hours of professional designer services (e.g. paint, signage, awnings, windows, etc.). The City reserves the right to limit hourly rates if professional fees appear unreasonably higher than industry standard.
Fee Exemption
Applicants for the Commercial Facade Improvement Program are exempt from Planning and Building permit fees. Note, fee exemption does not apply to any mandated fees by the State of California or fees required by other public agencies.
Figure 1:
Hemet Downtown District Map
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
4 | P a g e
City of Hemet – Economic Development
PROGRAM REQUIREMENTS AND PRIORITIES
Program Priority
Applications for property improvements will be prioritized according to the following criteria:
1. Projects that involve a historical restoration/renovation of a building.
2. Projects that provided significant value to the Harvard District or Florida Avenue.
3. Properties or areas that historically have been targeted for graffiti and/or are prone to blight.
4. Properties or areas adjacent to historic facilities such as the Hemet Depot/Museum.
Eligible Applicants
Owners of commercially zoned property located within one of the following areas are eligible to apply for the Commercial Facade Improvement Grant:
1. Hemet Downtown Specific Plan on Florida Avenue between State Street and San Jacinto Avenue
2. Retail Shopping Centers located in the City of Hemet Note, tenants must have the property owner’s written consent before any facade improvements are made. In addition, the grant application must be signed by the property owner.
Eligible Property Improvements
All improvements shall conform to City Building Codes, the City’s Zoning Ordinance, and applicable Design Guidelines. Properties or businesses with active Zoning or Code Enforcement cases are not eligible for this program. Eligible improvements include, but are not limited to:
• Historic Building Restoration (removal of non-historic materials or additions such as stucco and exposing original masonry/brick)
• Exterior Facade Treatments (stucco, brick veneer, paint removal, etc.) • Replacement of Signage
• New Awnings
• Parking Lots
• Exterior Painting visible from right-of-way
• Exterior Lighting
• New Windows/Window Frames
• New Exterior Doors
• Structure Components such as Foundation, Wall, Beams, Floor, Slab, Columns, Stairs, and Frames (Only Macro Business-Center Grant qualify).
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
5 | P a g e
City of Hemet – Economic Development
• Construction of New Facade Elements
• Anti-graffiti Treatment to Existing Windows
• Installation of Permanent Landscaping
• Construction of Outdoor Dining or Gathering Spaces
• Murals, if they are professionally done and receive Planning Commission approval, provide an important aesthetic improvement and/or improve an expanse of wall or surface prone to graffiti.
• Additional improvements that are deemed to be consistent with the intent of the program.
PROGRAM PROCEDURES
Applicant Intake and Eligibility
1. Application and Required Documents. Applications are available at Hemet City Hall or online at www.hemetca.gov. Each application must be completed in its entirety, signed and submitted with all required documents as listed in the application, signed proof of ownership or lease agreement, and submit a Certificate of Good Business Standing (https://bizfileonline.sos.ca.gov). Please contact the City’s Economic Development Manager at (951) 765-2310 for assistance with any application questions. The City will maintain a waiting list for all prospective participants.
Incomplete applications will not be processed.
2. Review of application. All complete applications will be date stamped when received. An initial application period of 60 days will be established before Applications are reviewed by staff and presented to the Planning Commission for review and prioritized for funding.
Incomplete applications will not be processed until all requested information is submitted. A City staff representative will contact applicants via telephone and through written correspondence concerning Planning Commission approval or denial of their application. Eligible applicants will be contacted to enter into an agreement with the City and schedule a property inspection.
Property Inspection
1. Initial Inspection. A site visit will be arranged between the Community Department staff and the property owner and/or business owner to undertake an inspection of the building and to develop specifications for the Program. Staff will inspect the property to ensure that the building meets code requirements for the exterior of the building.
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
6 | P a g e
City of Hemet – Economic Development
2. Follow-Up Inspection. If City Staff finds code violations during the initial inspection, the property owner and/or applicant will be required to correct those violations before continuing in the Program process. A follow-up inspection will be arranged between City Staff and the property owner and/or business owner to ensure the property is up to code.
Contractor Selection
1. Procurement. Applicants are free to select their contractor and submit at least one quote to the City of Hemet. The chosen contract must comply with the City’s prevailing wage and other requirements for contractors. The City reserves the right to require or obtain additional bids/estimates to determine the validity of the proposed project cost.
2. Contractor Requirements. The City shall maintain a file for each contractor performing work pursuant to the terms and conditions of this program. The file shall include the following information:
a. Copies of the contractor's current liability and worker’s compensation insurance policies;
b. Copies of the contractor's current California Contractor's License; c. Copy of contractor’s City Business License;
d. Provide a subcontractor list as applicable.
All contractors shall have current General Liability and/or Workers Compensation insurance and a valid state contractor's license and will not be allowed to work until proof of current insurance and/or license is provided.
3. Ineligible Contractors
a. The City and the applicant(s) shall agree not to award any contract for rehabilitation work, to be paid for in whole or in part, with proceeds from the Program, to any contractor who does not have a valid state contractor’s license, who cannot produce sufficient evidence of current Worker’s Compensation and Liability Insurance coverage, or who is on the federal Housing and Urban Development's (HUD's) Debarred Contractor list.
b. All owner/builders, or any member of the applicant's family or extended family, are considered ineligible, regardless of credentials or license. Any ineligible contractor found working at the job site will be removed without compensation.
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
7 | P a g e
City of Hemet – Economic Development
Award of Grant
1. Notification. The City shall notify the selected contractor of the award of the grant award and shall establish date, time and place for the pre-construction conference.
The pre-construction conference will include City Staff, property/business owner(s), and contractor.
2. Agreement. The agreement for the approved facade improvements shall be prepared by the City Attorney’s Office and shall be entered between the property/business owner(s) and the City.
3. Private Arrangements. The City cautions the property/business owner and the contractor not to enter “side deals" for additional work or deviations from the approved scope of work.
4. Pre-Construction. Prior to construction, the City will arrange a pre-construction meeting which shall be attended by the contractor, the property/business owner(s), and representative City staff. The purpose of this meeting is to explain all Program requirements and procedures, coordinate and schedule the work start date, and answer questions related to contract documents.
5. Start of Construction. No work shall commence until a “Notice to Proceed” has been issued to the contractor, signed by the property/business owner(s) and the City. In addition, no work shall commence until all required permits have been issued by the City’s Building Division.
a. The contractor shall contact the Community Development Department to obtain all requirements for plan submittal to obtain building permits. Plans will be reviewed by the City’s Building and Planning divisions.
b. Applicants for this program are exempt from City Planning and Building permit fees. This fee exemption does not apply to fees mandated by the State of California including, but not limited to, the California Green Building Standards fees.
Reimbursement Process
1. Upon approval, the City of Hemet will enter into agreement with the applicant and approved work may begin immediately after the agreement is fully executed.
2. Applicants are responsible for obtaining all necessary permits (including building permits) and authorities from the City.
3. Staff will inspect the project to ensure compliance with grant.
4. Work must be completed within six months (micro) or 18 months (macro) of grant award.
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
8 | P a g e
City of Hemet – Economic Development
5. All work must comply with approved plans.
6. Grant funds will only be disseminated to the contractor not the applicant, once the construction of the City approved improvements has been completed and has been inspected by City Staff.
7. Grant funds will be disseminated upon the issuance of a Notice of Completion has been issued by City Staff.
Applicant Responsibilities:
1. Property Maintenance. The property/business owner(s) is/are responsible for property maintenance during the rehabilitation work (contractor is responsible for keeping the property clean of all construction material). The property/business owner(s) is/are responsible for insuring that the rehabilitation work is not impeded because of their actions or the actions of their tenant(s). The City shall encourage the contractor and his/her employees to provide adequate pedestrian and property protection at the construction site.
2. Property Tax Bills. Current property tax bills for the subject property must be current.
The property owner(s) is/are responsible for insuring that the property taxes are current. The City will verify that the property taxes for the property are current. If the property’s tax statement indicates a delinquency, at the time of the Program application, the City shall not proceed with grant processing until it is supplied with a Certificate of Redemption or other appropriate documentation of proof of payment.
3. Notice of Completion. The property/business owner(s) is/are responsible for scheduling a final job completed inspection with the City’s Building, Life and Safety Department.
The City will verify that the project received a passing final inspection. After all requirements have been met, the City will issue a Notice of Completion to the property/business owner(s).
FUNDING
Funding for the Commercial Facade Improvement Program is allocated by the City of Hemet City Council, and the amount of funds available each year is not guaranteed. The grant funds are distributed on based on review and prioritization by the City’s Planning Commission. If grant funds are depleted at the time of application submission, City Staff will keep your application on file. However, if additional funds become available, City Staff will contact applicants on the waiting list.
The City of Hemet reserves the right to cancel or modify this Program at any time prior to grant approval, with written notice to the applicant by the Economic Development Manager.
Continuation of the Program is subject to sufficient funding as appropriated by the Hemet City Council.
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
9 | P a g e
City of Hemet – Economic Development
APPLICANT CERTIFICATION
Please read the statements below and initial and sign certify that you understand:
____I/we certify that the building owner is the owner of the property. ____I/we certify that there are no current code enforcement actions pending against this property*.
____I/we have attached a copy of all current leases.
____I/we have attached relevant photos of the building facade(s) to be included in this program.
____I/we have reviewed the program overview and guidelines, have familiarity with responsibilities of each party and understand that:
____All services to be performed by contractors shall be the subject of agreement between applicant and contractor(s).
____The Agency shall not assume any liability for such agreements, except as specifically authorized by the program.
____I/we have read and understand the City of Hemet program guidelines, accept the qualifications and conditions and through signature(s) below, certify that I/we are qualified and will abide by such conditions set forth in this application and all reasonable conditions which may be issued by the City of Hemet in the implementation of this program. I understand that this is a voluntary program, under which the City of Hemet has the right to approve or deny any project or proposal or portions thereof.
Signature: _________________________________________ Date: ___________________ Property Owner Signature ____________________________ Date: ___________________ (If Tenant is Applying)
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
10 | P a g e
City of Hemet – Economic Development
Commercial Facade Improvement
Grant Program Application
___________________________________________________________________________ Please fill out the application completely and submit to [email protected] or send to:
City of Hemet
Attention: Economic Development Department
445 E. Florida Ave
Hemet, CA 92543
(951) 669–0265
* SECTION 1 - APPLICANT INFORMATION:
Name: ____________________________________________________________________ Circle All That Apply: Property Owner Business Owner/Tenant Business Name: _____________________________________________________________ Property Address: ____________________________________________________________ Mailing Address: ____________________________________________________________ Phone Number: _____________________________________________________________ Email: _____________________________________________________________________ Total Number of Businesses in Building: _________________________________________ Name(s) of Other Businesses:
___________________________________________________________________________ ___________________________________________________________________________ * SECTION 2 - PROPERTY OWNER INFORMATION (Complete even if the current tenant is the applicant):
Property Owner Name: _______________________________________________________ Property Owner Mailing Address: _______________________________________________ Property Owner Daytime Phone Number: ________________________________________ As the legal owner of the above property, I hereby grant authorization to complete the façade improvements indicated on this application.
16.B
Commercial DRAFT Commercial Facade Improvement Grant Program Guidelines
Guidelines
11 | P a g e
City of Hemet – Economic Development
Signature: __________________________________________________ Date: __________ * SECTION 3 - FUNDING:
Grants (Please Check One):
___ Small-Business Grant (Requires minimum 5% match; Reimbursement of up to $30,000) ___ Macro-Business Grant (Requires minimum 20% match; Reimbursement of up to 80% of eligible expenses up to $700,000 (requires minimum applicant investment of $66,000) Grant Amount Requested: $__________________
Estimated Total Project Cost: $_______________
SECTION 4) SCOPE OF WORK:
General Description of Work:
___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ * SECTION 5 - ACKNOWLEDGMENT:
We certify that the owner is the property owner of record and that there are no current zoning or code enforcement actions pending against the property. I have read and understand the Program Guidelines and accept them. I certify that I am qualified and will abide by such conditions set forth in this application and all reasonable conditions which may be issued by the City of Hemet in the implementation of this project.
Property Owner(s) Signature: __________________________________ Date: ___________
16.B
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jun 25 2024
Department: Finance
Submitted by: Mark Prestwich, City Manager
Tiffany Barnett, Acting Administrative Services Director; ☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:
A Resolution of the City Council of the City of Hemet, California, Approving the City to Join Public Risk Innovation, Solutions, and Management (PRISM), Authorize the City Manager or their Designee to Sign the Memorandum of Understanding for the City to Participate in their Excess Workers Compensation, Property, Cyber and Pollution Programs for FY 2024-25, and Authorize the Waiver of Procurement Process Due to Urgency
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
Approve A Resolution of the City Council of the City of Hemet, California, Approving the City to Join Public Risk Innovation, Solutions, and Management (PRISM), Authorize the City Manager or Their Designee to Sign the Memorandum of Understanding for the City to Participate in PRISM Excess Workers Compensation, Property, Cyber and Pollution Programs for FY 2024-25, and Authorize the Waiver of Procurement Process Due to Urgency.
BACKGROUND:
On July 1, 2020, the City of Hemet joined California Joint Powers Insurance Authority (CJPIA) who provided the City with liability, workers compensation and property insurances; as well as, coverage for cyber and pollution.
In March 2024 the City was notified by CJPIA that they would no longer extend membership to the City, terminating coverage with the City as of June 30, 2024.
Since the termination notification date from CJPIA, City Staff have been working with a broker from Alliant to establish new insurance carriers.
ANALYSIS:
16.C
Through the assistance of the professional brokerage firm, Alliant, the City has been recommended and accepted to participate in the joint power authority with Public Risk Innovation, Solutions and Management (PRISM) for the insurance coverage of workers compensation and property insurance; as well as, cyber and pollution.
As such, under Article 1, Chapter 5, Division 7, Title 1 of the California Government Code (Section 6500 et seq.) permits two or more public agencies by agreement to exercise jointly powers common to the contracting parties.
The City of Hemet desires to join together with the members of PRISM for the purpose of jointly funding and/or establishing excess and other insurance programs as determined. PRISM has determined that it is necessary for each member of PRISM delegate to a person[s] or position[s] authority to act on the member’s behalf in matters relating to the member and PRISM.
DISCUSSION:
Prior to joining the CJPIA, the City's insurance carrier for excess liability, workers compensation, property, cyber and pollution was held with PRISM (formerly CSAC) for several years. In July 2020, under the direction of a former City Manager, Staff was directed to seek out an alternative carrier that would offer more extensive training programs. As a result, the City transitioned from PRISM to CJPIA.
With the recent membership changes the City experienced with CJPIA, Staff was directed to seek out another insurance carrier and teamed together with Alliant. Alliant is one of the top five largest commercial retail insurance brokerage firms in the U.S and the City previously utilized their services for several years prior to joining CJPIA.
Alliant submitted the City's application to PRISM and, at their recent board meeting, PRISM accepted the City into their programs, with the exception of liability insurance.
PRISM was formed in 1979 as CSAC Excess Insurance Authority to find cost effective insurance solutions and risk management services for California Counties. Public entities began joining PRISM in 2001.
Membership includes:
95% of California Counties
70% of California Cities
10% of California Educational Organizations, Special Districts, Housing Authorities, Fire Districts, and 27 Joint Powers Authorities
PRISM has five national participants through PRISM's captive insurance company, the Affiliate Risk Captive (ARC), nine major Coverage Programs in Workers' Compensation, Property, Liability, Health, Dental, Medical Malpractice, and Construction; as well as, 20 Miscellaneous and Ancillary coverage programs such as Vision, Cyber, and Pollution. PRISM’s total estimated premiums for 2023/24 is nearly $1.9 billion and they have saved Members over $660 million in the last five years.
STRATEGIC PLAN INTEGRATION:
16.C
GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.
Objective 1: Operate in a financially sustainable manner.
Objective 2: Evaluate existing practices to ensure continuity with industry best practices.
Objective 3: Provide Council with policies that are consistent while lessening liabilities.
Objective 4: Increase employee retention by training and creating a positive workplace.
Objective 5: Streamline fire prevention coordination efforts.
FISCAL IMPACT:
Appropriations for the PRISM programs have been established within the Fiscal Year 2024-25 Recommended Budget; therefore, no additional appropriations are recommended at this time.
Workers Compensation, account 681-2350-2500, $854,000
Property, Cyber and Pollution Insurance, account 683-2200-2500, $247,100 ATTACHMENT(S):
Attachment 1 - PRISM Joint Powers Agreement Resolution
Attachment 2 - PRISM Joint Powers Agreement, Amended June 30, 2020 Attachment 3 - PRISM EWC MOU 3-6-09
Attachment 4 - PRISM Property PROGRAM MOU
Attachment 5 - PRISM City of Hemet_Property Proposal
Attachment 6 - PRISM 2425_Cyber_Proposal_City of Hemet
Attachment 7 - PRISM 2425_Pollution_Proposal_City of Hemet
16.C
CITY COUNCIL RESOLUTION NO. 2024-XXX
CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HEMET, CALIFORNIA, APPROVING THE CITY TO JOIN
PUBLIC RISK INNOVATION, SOLUTIONS AND
MANAGEMENT (PRISM), AUTHORIZE THE CITY MANAGER
OR THEIR DESIGNEE TO SIGN THE MEMORANDUM OF
UNDERSTANDING FOR THE CITY TO PARTICIPATE IN
PRISM EXCESS WORKERS COMPENSATION, PROPERTY,
CYBER AND POLLUTION PROGRAMS FOR FY 2024-25
AND AUTHORIZE THE WAIVER OF PROCUREMENT
PROCESS DUE TO URGENCY
The City Council of the City of Hemet does resolve as follows:
WHEREAS, Article 1, Chapter 5, Division 7, Title 1 of the California Government Code (Section 6500 et seq.) permits two or more public agencies by agreement to exercise jointly powers common to the contracting parties; and
WHEREAS, the City of Hemet desires to join together with the members of PUBLIC RISK INNOVATION, SOLUTIONS AND
MANAGEMENT (PRISM) for the purpose of jointly funding and/or establishing excess and other insurance programs as determined; and WHEREAS, PRISM has determined that it is necessary for each member of PRISM delegate to a person[s] or position[s] authority to act on the member’s behalf in matters relating to the member and PRISM;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET
FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
16.C
CITY COUNCIL RESOLUTION NO. 2024-XXX
SECTION 1. ACTIONS.
The City Council of the City of Hemet that said City Council does hereby approve becoming a member of PRISM, authorizes execution of the PRISM Joint Powers Agreement, and except as to actions that must be approved by the City Council, the City Manager or their designee is hereby appointed to act in all matters relating to the member and the Authority.
SECTION 2. EFFECTIVE DATE.
This Resolution shall become effective on June 25, 2024.
16.C
CITY COUNCIL RESOLUTION NO. 2024-XXX
PASSED, APPROVED, AND ADOPTED ON JUNE 25th, 2024.
____________________________
Joe Males, Mayor
ATTEST:
__________________________
John Paul Maier, City Clerk
16.C
CITY COUNCIL RESOLUTION NO. 2024-XXX
State of California )
County of Riverside )
City of Hemet )
I, John Paul Maier, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 25th day of June, 2024, and was passed by the following vote:
AYES: Council Members:
NOES: Council Member:
ABSTAIN: Council Member:
ABSENT: Council Member:
________________________________
16.C
16.C
Adopted: October 5, 1979
Amended: May 12, 1980
Amended: January 23, 1987
Amended: October 7, 1988
Amended: March 1993
Amended: November 18, 1996
Amended: October 4, 2005
Amended: February 28, 2006
Amended: June 30, 2020
JOINT POWERS AGREEMENT
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT
This Agreement is executed in the State of California by and among those counties and public entities organized and existing under the Constitution of the State of California, which are parties signatory to this Agreement. Public Risk Innovation, Solutions, and Management (referred to herein as PRISM), formerly known as CSAC Excess Insurance Authority, was formed under the sponsorship of CSAC. California counties, hereinafter called member counties, and public entities, hereinafter called member public entities, (collectively “members”) shall be listed in Appendix A, which shall be attached hereto and made a part hereof.
RECITALS
WHEREAS, Article 1, Chapter 5, Division 7, Title 1 of the California Government Code (Section 6500 et seq.) permits two or more public agencies by agreement to exercise jointly powers common to the contracting parties; and
WHEREAS, Article 16, Section 6 of the California Constitution provides that insurance pooling arrangements under joint exercise of power agreements shall not be considered the giving or lending of credit as prohibited therein; and
WHEREAS, California Government Code Section 990.4 provides that a local public entity may self-insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these; and
WHEREAS, pursuant to California Government Code Section 990.6, the cost of insurance provided by a local public entity is a proper charge against the local public entity; and WHEREAS, California Government Code Section 990.8 provides that two or more local entities may, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4 and such pooling of self-insured claims or losses is not considered insurance nor subject to regulation under the Insurance Code; and WHEREAS, the counties and public entities executing this Agreement desire to join together for the purpose of jointly funding and/or establishing excess and other insurance programs as determined; NOW THEREFORE, the parties agree as follows:
ARTICLE 1
DEFINITIONS
“CSAC" shall mean the County Supervisors Association of California, dba California State Association of Counties.
"Board of Directors" or "Board" shall mean the governing body of PRISM. "Claim" shall mean a claim made against a member arising out of an occurrence, which is covered by an excess or primary insurance program of PRISM in which the member is a participant.
16.C
JPA, PRISM Amended: June 30, 2020
"Executive Committee" shall mean the Executive Committee of the Board of Directors of PRISM.
"Fiscal year" shall mean that period of twelve months which is established by the Board of Directors as the fiscal year of PRISM.
"Government Code" shall mean the California Government Code. “Insurance program” or “program” shall mean a program which has been designated as a major program of PRISM under which participating members are protected against designated losses, either through joint purchase of primary or excess insurance, pooling of self-insured claims or losses, purchased insurance or any other combination as determined by the Board of Directors. The Board of Directors, the Executive Committee, or a program’s governing committee may determine applicable criteria for determining eligibility in any insurance program, as well as establishing program policies and procedures.
"Joint powers law" shall mean Article 1, Chapter 5, Division 7, Title 1 (commencing with Section 6500) of the Government Code.
"Loss" shall mean a liability or potential liability of a member, including litigation expenses, attorneys' fees and other costs, which is covered by an insurance program of PRISM in which the member is a participant.
"Member county" shall mean any county in the State of California which has executed this Agreement and become a member of PRISM. "Member County" shall also include those entities or other bodies set forth in Article 3 (c).
“Member Public Entity” shall mean any California public entity, which is not a California county, which has executed this Agreement, and become a member of PRISM, “Member Public Entity” shall also include those entities or other bodies set forth in Article 3(c). “Miscellaneous Program” is an insurance program of PRISM that does not involve pooling of self-insured claims or losses and may be made available to members as well as non-member public entities that are not a party to this Agreement.
"Occurrence" shall mean an event which is more fully defined in the memorandums of coverage and/or policies of an insurance program in which the participating county or participating public entity is a member.
"Participating county" shall mean any member county which has entered into a program offered by PRISM pursuant to Article 14 of this Agreement and has not withdrawn or been canceled therefrom pursuant to Articles 20 or 21.
“Participating public entity” shall mean any member public entity which has entered into a program offered by PRISM pursuant to Article 14 of this Agreement and has not withdrawn or been canceled therefrom pursuant to Articles 20 or 21.
"Self-insured retention" shall mean that portion of a loss resulting from an occurrence experienced by a member, which is retained as a liability or potential liability of the member and is not subject to payment by PRISM.
"Reinsurance" shall mean insurance purchased by PRISM as part of an insurance program to cover that portion of any loss, which exceeds the joint funding capacity of that program.
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JPA, PRISM Amended: June 30, 2020
ARTICLE 2
PURPOSES
This Agreement is entered into by the member counties and member public entities in order to jointly develop and fund insurance programs as determined. Such programs may include, but are not limited to, the creation of joint insurance funds, including primary and excess insurance funds, the pooling of self-insured claims and losses, purchased insurance, including reinsurance, and the provision of necessary administrative services. Such administrative services may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, actuarial consulting, claims adjusting, and legal defense services.
ARTICLE 3
PARTIES TO AGREEMENT
(a) There shall be two classes of membership of the parties pursuant to this Agreement consisting of one class designated as Member Counties and another class designated as Member Public Entities.
(b) Each member county and member public entity, as a party to this Agreement, certifies that it intends to and does contract with all other members as parties to this Agreement and, with such other members as may later be added as parties to this Agreement pursuant to Article 19 as to all programs of which it is a participating member. Each member also certifies that the removal of any party from this Agreement, pursuant to Articles 20 or 21, shall not affect this Agreement or the member’s obligations hereunder. (c) A member for purposes of providing insurance coverage under any program of PRISM, may contract on behalf of, and shall be deemed to include:
Any public entity as defined in Government Code § 811.2 which the member requests to be added and from the time that such request is approved by the Executive Committee of PRISM.
Any nonprofit entity, including a nonprofit public benefit corporation formed pursuant to Corporations Code §§ 5111, 5120 and, 5065, which the member requests to be added and from the time that such request is approved by the Executive Committee. (d) Any public entity or nonprofit so added shall be subject to and included under the member’s SIR or deductible, and when so added, may be subject to such other terms and conditions as determined by the Executive Committee. (e) Such public entity or nonprofit shall not be considered a separate party to this Agreement. Any public entity or nonprofit so added, shall not affect the member’s representation on the Board of Directors and shall be considered part of and represented by the member for all purposes under this Agreement.
(f) The Executive Committee shall establish guidelines for approval of any public entity or nonprofit so added in accordance with Article 3(c) and (d). (g) Should any conflict arise between the provisions of this Article and any applicable Memorandum of Coverage or other document evidencing coverage, such Memorandum of Coverage or other document evidencing coverage shall prevail.
ARTICLE 4
TERM
This Agreement shall continue in effect until terminated as provided herein.
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JPA, PRISM Amended: June 30, 2020
ARTICLE 5
CREATION OF PRISM
Pursuant to the joint powers law, there is hereby created a public entity separate and apart from the parties hereto, to be known as Public Risk Innovation, Solutions, and Management (“PRISM”), with such powers as are hereinafter set forth.
ARTICLE 6
POWERS OF PRISM
PRISM shall have all of the powers common to General Law counties in California, such as Alpine County and all additional powers set forth in the joint powers law, and is hereby authorized to do all acts necessary for the exercise of said powers. Such powers include, but are not limited to, the following:
(a) To make and enter into contracts.
(b) To incur debts, liabilities, and obligations.
(c) To acquire, hold, or dispose of property, contributions and donations of property, funds, services, and other forms of assistance from persons, firms, corporations, and government entities.
(d) To sue and be sued in its own name, and to settle any claim against it. (e) To receive and use contributions and advances from members as provided in Government Code Section 6504, including contributions or advances of personnel, equipment, or property.
(f) To invest any money in its treasury that is not required for its immediate necessities, pursuant to Government Code Section 6509.5.
(g) To allow non-member public entities and non-member counties to participate in Miscellaneous Programs and for risk management services to be provided to nonmember counties and non-member public entities including out-of-state participants in a PRISM program.
(h) To carry out all provisions of this Agreement.
Said powers shall be exercised pursuant to the terms hereof and in the manner provided by law.
ARTICLE 7
BOARD OF DIRECTORS
PRISM shall be governed by the Board of Directors, which shall be composed as follows:
(a) One director from each member county, appointed by the member county board of supervisors and serving at the pleasure of that body. Each member county board of supervisors shall also appoint an alternate director who shall have the authority to attend, participate in and vote at any meeting of the Board of Directors when the director is absent. A director or alternate director shall be a county supervisor, other county official, or staff person of the member county, and upon termination of office or employment with the county, shall automatically terminate membership or alternate membership on the Board of Directors.
(b) Ten directors consisting of seven directors and three alternate directors chosen in the manner specified in the Bylaws from those participating as public entity members. A director or alternate public entity director shall be an official, or staff person of the public
16.C
JPA, PRISM Amended: June 30, 2020
entity member, and upon termination of office or employment with the public entity, shall automatically terminate membership or alternate membership on the Board of Directors. (c) Member county directors shall consist of a minimum of 80% of the eligible voting members on the Board of Directors. The public entity member directors shall be reduced accordingly to ensure at least 80% of the Board of Directors consists of county director members (By way of example, if the number of county members is reduced from the current 54 by member withdrawals to a level of 28, then county members would be at the 80% level, 28/35. If the county members go to 27, then the public entity members would lose one seat and would only have 6 votes).
Any vacancy in a county director or alternate director position shall be filled by the appointing county's board of supervisors, subject to the Provisions of this Article. Any vacancy in a public entity director position shall be filled by vote of the public entity members.
A majority of the membership of the Board of Directors shall constitute a quorum for the transaction of business. Each member of the Board of Directors shall have one vote.
Except as otherwise provided in this Agreement or any other duly executed agreement of the members, all actions of the Board of Directors shall require the affirmative vote of a majority of the members; provided, that any action which is restricted in effect to one of PRISM's insurance programs, shall require the affirmative vote of a majority of those Board of Directors members who represent counties and public entities participating in that program. For purposes of an insurance program vote, to the extent there are public entity members participating in a program, the public entity Board of Directors members as a whole shall have a minimum of one vote. The public entity Board of Directors members may in no event cast more votes than would constitute 20% of the number of total county members in that program (subject to the one vote minimum). Should the number of public entity Board of Directors votes authorized herein be less than the number of public entity Board of Directors members at a duly noticed meeting, the public entity Board of Directors members shall decide among themselves, which Board of Directors member shall vote. Should they be unable to decide, the President of PRISM shall determine which director(s) shall vote.
ARTICLE 8
POWERS OF THE BOARD OF DIRECTORS
The Board of Directors shall have the following powers and functions:
(a) The Board of Directors shall exercise all powers and conduct all business of PRISM, either directly or by delegation to other bodies or persons unless otherwise prohibited by this Agreement, or any other duly executed agreement of the members or by law. (b) The Board of Directors may adopt such resolutions as deemed necessary in the exercise of those powers and duties set forth herein.
(c) The Board of Directors shall form an Executive Committee, as provided in Article 11.
The Board of Directors may delegate to the Executive Committee and the Executive Committee may discharge any powers or duties of the Board of Directors except adoption of PRISM's annual budget. The powers and duties so delegated shall be specified in resolutions adopted by the Board.
(d) The Board of Directors may form, as provided in Article 12, such other committees as it deems appropriate to conduct the business of PRISM. The membership of any such other committee may consist in whole or in part of persons who are not members of the Board of Directors.
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JPA, PRISM Amended: June 30, 2020
(e) The Board of Directors shall elect the officers of PRISM and shall appoint or employ necessary staff in accordance with Article 13.
(f) The Board of Directors shall cause to be prepared, and shall review, modify as necessary, and adopt the annual operating budget of PRISM. Adoption of the budget may not be delegated.
(g) The Board of Directors shall develop, or cause to be developed, and shall review, modify as necessary, and adopt each insurance program of PRISM, including all provisions for reinsurance and administrative services necessary to carry out such program. (h) The Board of Directors, directly or through the Executive Committee, shall provide for necessary services to PRISM and to members, by contract or otherwise, which may include, but shall not be limited to, risk management consulting, loss prevention and control, centralized loss reporting, actuarial consulting, claims adjusting, and legal services.
(i) The Board of Directors shall provide general supervision and policy direction to the Chief Executive Officer.
(j) The Board of Directors shall receive and act upon reports of the committees and the Chief Executive Officer.
(k) The Board of Directors shall act upon each claim involving liability of PRISM, directly or by delegation of authority to the Executive Committee or other committee, body or person, provided, that the Board of Directors shall establish monetary limits upon any delegation of claims settlement authority, beyond which a proposed settlement must be referred to the Board of Directors for approval.
(l) The Board of Directors may require that PRISM review, audit, report upon, and make recommendations with regard to the safety or claims administration functions of any member, insofar as those functions affect the liability or potential liability of PRISM. The Board of Directors may forward any or all such recommendations to the member with a request for compliance and a statement of potential consequences for noncompliance. (m) The Board of Directors shall receive, review and act upon periodic reports and audits of the funds of PRISM, as required under Articles 15 and 16 of this Agreement. (n) The Board of Directors may, upon consultation with a casualty actuary, declare that any funds established for any program has a surplus of funds and determine a formula to return such surplus to the participating counties and participating public entities, which have contributed, to such fund.
(o) The Board of Directors shall have such other powers and duties as are reasonably necessary to carry out the purposes of PRISM.
ARTICLE 9
MEETINGS OF THE BOARD OF DIRECTORS
(a) The Board of Directors shall hold at least one regular meeting each year and shall provide for such other regular meetings and for such special meetings as it deems necessary.
(b) The Chief Executive Officer of PRISM shall provide for the keeping of minutes of regular and special meetings of the Board of Directors, and shall provide a copy of the minutes to each member of the Board of Directors at the next scheduled meeting. (c) All meetings of the Board of Directors, the Executive Committee and such committees as established by the Board of Directors pursuant to Article 12 herein, shall be called,
16.C
JPA, PRISM Amended: June 30, 2020
noticed, held and conducted in accordance with the provisions of Government Code Section 54950 et seq.
ARTICLE 10
OFFICERS
The Board of Directors shall elect from its membership a President and Vice President of the Board, to serve for one-year terms.
The President, or in his or her absence, the Vice President, shall preside at and conduct all meetings of the Board of Directors and shall chair the Executive Committee.
ARTICLE 11
EXECUTIVE COMMITTEE
The Board of Directors shall establish an Executive Committee of the Board of Directors, which shall consist of eleven members: the President and Vice President of the Board of Directors, and nine members elected by the Board of Directors from its membership.
The terms of office of the nine non-officer members shall be as provided in the Bylaws of PRISM.
The Executive Committee shall conduct the business of PRISM between meetings of the Board of Directors, exercising all those powers as provided for in Article 8, or as otherwise delegated to it by the Board.
ARTICLE 12
COMMITTEES
The Board of Directors may establish committees, as it deems appropriate to conduct the business of PRISM. Members of the committees shall be appointed by the Board of Directors, to serve two year terms, subject to reappointment by the Board of Directors. The members of each committee shall annually select one of their members to chair the Committee.
Each committee shall be composed of at least five members and shall have those duties as determined by the Board of Directors, or as otherwise set forth in the Bylaws.
Each committee shall meet on the call of its chair, and shall report to the Executive Committee and the Board of Directors as directed by the Board of Directors.
ARTICLE 13
STAFF
(a) Principal Staff. The Chief Executive Officer shall be appointed by and serve at the pleasure of the Board of Directors. The Chief Executive Officer shall serve as the Board Secretary and administer the business and activities of PRISM, subject to the general supervision and policy direction of the Board of Directors and Executive Committee; shall be responsible for all minutes, notices and records of PRISM and shall perform such other duties as are assigned by the Board and Executive Committee. (b) Treasurer and Auditor. Pursuant to Government Code Section 6505.6, the Chief Financial Officer shall serve as the Treasurer/Auditor. The duties of the Treasurer are set forth in Article 16 of this Agreement. The Chief Financial Officer shall draw warrants to pay demands against PRISM. The Chief Financial Officer shall comply with the provisions of Government Code Section 6505.5 (a-d) and shall be appointed by and serve at the pleasure of the Chief Executive Officer.
(c) Other Staff. The Board of Directors, Executive Committee or Chief Executive Officer shall provide for the appointment of such other staff as may be necessary for the administration of PRISM.
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JPA, PRISM Amended: June 30, 2020
ARTICLE 14
DEVELOPMENT, FUNDING AND IMPLEMENTATION
OF INSURANCE PROGRAMS
(a) Program Coverage. Insurance programs of PRISM may provide coverage, including excess insurance coverage for:
(1) Workers' compensation;
(2) Comprehensive liability, including but not limited to general, personal injury, contractual, public officials errors and omissions, and incidental malpractice liability;
(3) Comprehensive automobile liability;
(4) Hospital malpractice liability;
(5) Property and related programs;
and may provide any other coverages authorized by the Board of Directors. The Board of Directors shall determine, for each such program, a minimum number of participants required for program implementation and may develop specific program coverages requiring detailed agreements for implementation of the above programs.
(b) Program and PRISM Funding. The members developing or participating in an insurance program shall fund all costs of that program, including administrative costs, as hereinafter provided. Costs of staffing and supporting PRISM, hereinafter called PRISM general expenses, shall be equitably allocated among the various programs by the Board of Directors, and shall be funded by the members developing or participating in such programs in accordance with such allocations, as hereinafter provided. In addition, the Board of Directors may, in its discretion, allocate a share of such PRISM general expense to those members, which are not developing or participating in any program, and require those counties and public entities to fund such share through a prescribed charge.
(1) Annual Premium. Except as provided in (2) below, all post-development costs of an insurance program shall be funded by annual premiums charged to the members participating in the program each policy year, and by interest earnings on the funds so accumulated. Such premiums shall be determined by the Board of Directors or the program’s governing committee upon the basis of a cost allocation plan and rating formula developed by PRISM with the assistance of a casualty actuary, risk management consultant, or other qualified person. The premium for each participating member shall include that participant’s share of expected program losses including a margin for contingencies as determined by the Board of Directors, program reinsurance costs, and program administrative costs for the year, plus that participant’s share of PRISM general expense allocated to the program by the Board of Directors.
(2) Premium Surcharge
(i) If PRISM experiences an unusually large number of losses under a program during a policy year, such that notwithstanding reinsurance coverage for large individual losses, the joint insurance funds for the program may be exhausted before the next annual premiums are due, the Board of Directors or the program’s governing committee may, upon consultation with a casualty actuary, impose premium surcharges on all participating members; or
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(ii) If it is determined by the Board of Directors or the program’s governing committee, upon consultation with a casualty actuary, that the joint insurance funds for a program are insufficient to pay losses, fund known estimated losses, and fund estimated losses, which have been incurred but not reported, the Board of Directors or the program’s governing committee may impose a surcharge on all participating members. (iii) Premium surcharges imposed pursuant to (i) and/or (ii) above shall be in an amount which will assure adequate funds for the program to be actuarially sound; provided that the surcharge to any participating member shall not exceed an amount equal to three (3) times the member’s annual premium for that year, unless otherwise determined by the Board of Directors or the program’s governing committee.
Provided, however, that no premium surcharge in excess of three times the member’s annual premium for that year may be assessed unless, ninety days prior to the Board of Directors taking action to determine the amount of the surcharge, PRISM notifies the governing body of each participating member in writing of its recommendations regarding its intent to assess a premium surcharge and the amount recommended to be assessed each member. PRISM shall, concurrently with the written notification, provide each participating member with a copy of the actuarial study upon which the recommended premium surcharge is based.
(iv) A member which is no longer a participating member at the time the premium surcharge is assessed, but which was a participating member during the policy year(s) for which the premium surcharge was assessed, shall pay such premium surcharges as it would have otherwise been assessed in accordance with the provisions of (i), (ii), and (iii) above.
(c) Program Implementation and Effective Date. Upon establishment of an insurance program by the Board of Directors, PRISM shall determine the manner of program implementation and shall give written notice to all members of such program, which shall include, but not be limited to: program participation levels, coverages and terms of coverage of the program, estimates of first year premium charges, effective date of the program (or estimated effective date) and such other program provisions as deemed appropriate.
(d) Late Entry Into Program. A member which does not elect to enter an insurance program upon its implementation, pursuant to (c) above, or a county or public entity which becomes a party to this Agreement following implementation of the program, may petition the Board of Directors for late entry into the program. Such request may be granted upon a majority vote of the Board of Directors members, plus a majority vote of those board members who represent participants in the program. Alternatively, a county or public entity may petition the Executive Committee for late entry into the program, or a program committee, when authorized by an MOU governing that specific program, may approve late entry into that program. Such request may be granted upon a majority vote of the Executive Committee or program committee.
(e) Reentry Into A Program. Except as otherwise provided in a Program Memorandum of Understanding, any county or public entity that is a member of an insurance program of PRISM who withdraws or is cancelled from an insurance program under Articles 21 and 22, may not reenter such insurance program for a period of three years from the effective date of withdrawal or cancellation.
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ARTICLE 15
ACCOUNTS AND RECORDS
(a) Annual Budget. PRISM shall annually adopt an operating budget pursuant to Article 8 of this Agreement, which shall include a separate budget for each insurance program under development or adopted and implemented by PRISM.
(b) Funds and Accounts. The Auditor of PRISM shall establish and maintain such funds and accounts as may be required by good accounting practices and by the Board of Directors. Separate accounts shall be established and maintained for each insurance program under development or adopted and implemented by PRISM. Books and records of PRISM in the hands of the Auditor shall be open to inspection at all reasonable times by authorized representatives of members.
PRISM shall adhere to the standard of strict accountability for funds set forth in Government Code Section 6505.
(c) Auditor's Report. The Auditor, within one hundred and eighty (180) days after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to the Board and to each member.
(d) Annual Audit. Pursuant to Government Code Section 6505, PRISM shall either make or contract with a certified public accountant to make an annual fiscal year audit of all accounts and records of PRISM, conforming in all respects with the requirements of that section. A report of the audit shall be filed as a public record with each of the members and also with the county auditor of the county where the home office of PRISM is located and shall be sent to any public agency or person in California that submits a written request to PRISM. The report shall be filed within six months of the end of the fiscal year or years under examination. Costs of the audit shall be considered a general expense of PRISM.
ARTICLE 16
RESPONSIBILITIES FOR FUNDS AND PROPERTY
(a) The Treasurer shall have the custody of and disburse PRISM's funds. He or she may delegate disbursing authority to such persons as may be authorized by the Board of Directors to perform that function, subject to the requirements of (b) below. (b) Pursuant to Government Code Section 6505.6, the Treasurer shall:
(1) Receive and acknowledge receipt for all funds of PRISM and place them in the treasury of the Treasurer to the credit of PRISM.
(2) Be responsible upon his or her official bond for the safekeeping and disbursements of all PRISM funds so held by him or her. (3) Pay any sums due from PRISM, as approved for payment by the Board of Directors or by any body or person to whom the Board of Directors has delegated approval authority, making such payments from PRISM funds upon warrants drawn by the Auditor.
(c) Pursuant to Government Code Section 6505.1, the Chief Executive Officer, the Treasurer, and such other persons as the Board of Directors may designate shall have charge of, handle, and have access to the property of PRISM. (d) PRISM shall secure and pay for a fidelity bond or bonds, in an amount or amounts and in the form specified by the Board of Directors, covering all officers and staff of PRISM, and all officers and staff who are authorized to have charge of, handle, and have access to property of PRISM.
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ARTICLE 17
RESPONSIBILITIES OF MEMBERS
Members shall have the following responsibilities under this Agreement. (a) The board of supervisors of each member county shall appoint a representative and one alternate representative to the Board of Directors, pursuant to Article 7. (b) Each member shall appoint an officer or employee of the member to be responsible for the risk management function for that member and to serve as a liaison between the member and PRISM for all matters relating to risk management. (c) Each member shall maintain an active risk control program, and shall consider and act upon all recommendations of PRISM concerning the reduction of unsafe practices. (d) Each member shall maintain its own claims and loss records in each category of liability covered by an insurance program of PRISM in which the member is a participant, and shall provide copies of such records to PRISM as directed by the Board of Directors or Executive Committee, or to such other committee as directed by the Board of Directors or Executive Committee.
(e) Each member shall pay premiums and premium surcharges due to PRISM as required under Article 14. Penalties for late payment of such premiums and/or premium surcharges shall be as determined and assessed by the Board of Directors. After withdrawal, cancellation, or termination action under Articles 20, 21, or 23, each member shall pay promptly to PRISM any additional premiums due, as determined and assessed by the Board of Directors under Articles 22 or 23. Any costs incurred by PRISM associated with the collection of such premiums or other charges, shall be recoverable by PRISM.
(f) Each member shall provide PRISM such other information or assistance as may be necessary for PRISM to develop and implement insurance programs under this Agreement.
(g) Each member shall cooperate with and assist PRISM, and any insurer of PRISM, in all matters relating to this Agreement, and shall comply with all Bylaws, and other rules by the Board of Directors.
(h) Each member shall have such other responsibilities as are provided elsewhere in this Agreement, and as are established by the Board of Directors in order to carry out the purposes of this Agreement.
ARTICLE 18
ADMINISTRATION OF CLAIMS
(a) Subject to subparagraph (e), each member shall be responsible for the investigation, settlement or defense, and appeal of any claim made, suit brought, or proceeding instituted against the member arising out of a loss.
(b) PRISM may develop standards for the administration of claims for each insurance program of PRISM so as to permit oversight of the administration of claims by the members.
(c) Each participating member shall give PRISM timely written notice of claims in accordance with the provisions of the Bylaws and the applicable program Memorandum of Coverage.
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(d) A member shall not enter into any settlement involving liability of PRISM without the advance written consent of PRISM.
(e) PRISM, at its own election and expense, shall have the right to participate with a member in the settlement, defense, or appeal of any claim, suit or proceeding, which, in the judgment of PRISM, may involve liability of PRISM.
ARTICLE 19
NEW MEMBERS
Any California public entity may become a party to this Agreement and participate in any insurance program in which it is not presently participating upon approval of the Board of Directors, by a majority vote of the members, or by majority vote of the Executive Committee.
ARTICLE 20
WITHDRAWAL
(a) A member may withdraw as a party to this Agreement upon thirty (30) days advance written notice to PRISM if it has never become a participant in any insurance program pursuant to Article 14, or if it has previously withdrawn from all insurance programs in which it was a participant.
(b) After becoming a participant in an insurance program, a member may withdraw from that program only at the end of a policy year for the program, and only if it gives PRISM at least sixty (60) days advance written notice of such action.
ARTICLE 21
CANCELLATION
(a) Notwithstanding the provisions of Article 20, the Board of Directors may:
(1) Cancel any member from this Agreement and membership in PRISM, on a majority vote of the Board of Directors members. Such action shall have the effect of canceling the member’s participation in all insurance programs of PRISM as of the date that all membership is canceled.
(2) Cancel any member’s participation in an insurance program of PRISM, without canceling the member’s membership in PRISM or participation in other programs, on a vote of two-thirds of the Board of Directors members present and voting who represent participants in the program.
The Board of Directors shall give sixty (60) days advance written notice of the effective date of any cancellation under the foregoing provisions. Upon such effective date, the member shall be treated the same as if it had voluntarily withdrawn from this Agreement, or from the insurance program, as the case may be.
(b) Except as otherwise provided in a program Memorandum of Understanding, a member that does not enter one or more of the insurance programs developed and implemented by PRISM within the member’s first year as a member of PRISM shall be considered to have withdrawn as a party to this Agreement at the end of such period, and its membership in PRISM shall be automatically canceled as of that time, without action of the Board of Directors.
(c) A member which withdraws from all insurance programs of PRISM in which it was a participant and does not enter any program for a period of six (6) months thereafter shall be considered to have withdrawn as a party to the Agreement at the end of such period, and its membership in PRISM shall be automatically canceled as of that time, without action of the Board of Directors.
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ARTICLE 22
EFFECT OF WITHDRAWAL OR CANCELLATION
(a) If a member’s participation in an insurance program of PRISM is canceled under Article 21, with or without cancellation of membership in PRISM, and such cancellation is effective before the end of the policy year for that program, PRISM shall promptly determine and return to that member the amount of any unearned premium payment from the member for the policy year, such amount to be computed on a pro-rata basis from the effective date of cancellation.
(b) Except as provided in (a) above or as otherwise provided in a program Memorandum of Understanding, a member which withdraws or is canceled from this Agreement and membership in PRISM, or from any program of PRISM, shall not be entitled to the return of any premium or other payment to PRISM, or of any property contributed to PRISM.
However, in the event of termination of this Agreement, such member may share in the distribution of assets of PRISM to the extent provided in Article 23 provided; however, that any withdrawn or canceled member, which has been assessed a premium surcharge pursuant to Article 14 (b) (3) (ii) shall be entitled to return of said member’s unused surcharge, plus interest accrued thereon, at such time as the Board of Directors declares that a surplus exists in any insurance fund for which a premium surcharge was assessed. (c) Except as provided in (d) below, a member shall pay any premium charges, which the Board of Directors determines are due from the member for losses and costs incurred during the entire coverage year in which the member was a participant in such program regardless of the date of entry into such program. Such charges may include any deficiency in a premium previously paid by the member, as determined by audit under Article 14 (b) (2); any premium surcharge assessed to the member under Article 14 (b) (3); and any additional amount of premium, which the Board of Directors determines to be due from the member upon final disposition of all claims arising from losses under the program during the entire coverage year in which the member was a participant regardless of date of entry into such program. Any such premium charges shall be payable by the member in accordance with PRISM's invoice and payment policy. (d) Those members that have withdrawn or been canceled pursuant to Articles 20 and 21 from any program of PRISM during a coverage year shall pay any premium charges which the Board of Directors determines are due from the members for losses and costs which were incurred during the member’s participation in any program.
ARTICLE 23
TERMINATION AND DISTRIBUTION OF ASSETS
(a) A three-fourths vote of the total voting membership of PRISM, consisting of member counties, acting through their boards of supervisors, and the voting Board of Directors members from the member public entities, is required to terminate this Agreement; provided; however, that this Agreement and PRISM shall continue to exist after such election for the purpose of disposing of all claims, distributing all assets, and performing all other functions necessary to conclude the affairs of PRISM. (b) Upon termination of this Agreement, all assets of PRISM in each insurance program shall be distributed among those members which participated in that program in proportion to their cash contributions, including premiums paid and property contributed (at market value when contributed). The Board of Directors shall determine such distribution within six (6) months after disposal of the last pending claim or other liability covered by the program.
(c) Following termination of this Agreement, any member which was a participant in an insurance program of PRISM shall pay any additional amount of premium, determined by the Board of Directors in accordance with a loss allocation formula, which may be
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necessary to enable final disposition of all claims arising from losses under that program during the entire coverage year in which the member was a participant regardless of the date of entry into such program.
ARTICLE 24
LIABILITY OF BOARD OF DIRECTORS, OFFICERS, COMMITTEE MEMBERS
AND LEGAL ADVISORS
The members of the Board of Directors, Officers, committee members and legal advisors to any Board of Directors or committees of PRISM shall use ordinary care and reasonable diligence in the exercise of their powers and in the performance of their duties pursuant to this Agreement. They shall not be liable for any mistake of judgment or any other action made, taken or omitted by them in good faith, nor for any action taken or omitted by any agent, employee or independent contractor selected with reasonable care, nor for loss incurred through investment of PRISM funds, or failure to invest.
No Director, Officer, committee member, or legal advisor to any Board of Directors or committee shall be responsible for any action taken or omitted by any other Director, Officer, committee member, or legal advisor to any committee. No Director, Officer, committee member or legal advisor to any committee shall be required to give a bond or other security to guarantee the faithful performance of their duties pursuant to this Agreement.
The funds of PRISM shall be used to defend, indemnify and hold harmless PRISM and any Director, Officer, committee member or legal advisor to any committee for their actions taken within the scope of the authority of PRISM. Nothing herein shall limit the right of PRISM to purchase insurance to provide such coverage, as is hereinabove set forth.
ARTICLE 25
BYLAWS
The Board of Directors may adopt Bylaws consistent with this Agreement, which shall provide for the administration and management of PRISM.
ARTICLE 26
NOTICES
PRISM shall address notices, billings and other communications to a member as directed by the member. Each member shall provide PRISM with the address to which communications are to be sent.
Members shall address notices and other communications to PRISM to the Chief Executive Officer of PRISM, at the office address of PRISM as set forth in the Bylaws.
ARTICLE 27
AMENDMENT
A two-thirds vote of the total voting membership of PRISM, consisting of member counties, acting through their boards of supervisors, and the voting Board of Directors members from member public entities, is required to amend this Agreement. However, the Executive Committee is authorized to make non-substantive, clerical amendments to the Agreement and does not need to obtain approval from the Board of Directors to make such amendments.
ARTICLE 28
EFFECTIVE DATE OF AMENDMENTS
Any amendment of this Agreement shall become effective upon the date specified by the Board of Directors and upon approval of any Amended Agreement as required in Article 27. Approval of any amendment by the voting boards of supervisors and public entity board members must take place no later than 30 days from the effective date specified by the Board of Directors.
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ARTICLE 29
PROHIBITION AGAINST ASSIGNMENT
No member may assign any right, claim or interest it may have under this Agreement, and no creditor, assignee or third party beneficiary of any member shall have any right, claim or title to any part, share, interest, fund, premium or asset of PRISM.
ARTICLE 30
AGREEMENT COMPLETE
This Agreement constitutes the full and complete Agreement of the parties.
ARTICLE 31
DISPUTE RESOLUTION
When a dispute arises between PRISM and a member, the following procedures are to be followed:
(a) Request for Reconsideration. The member will make a written request to PRISM for the appropriate Committee to reconsider their position, citing the arguments in favor of the member and any applicable case law that applies. The member can also, request a personal presentation to that Committee, if it so desires. (b) Committee Appeal. The committee responsible for the program or having jurisdiction over the decision in question will review the matter and reconsider PRISM’s position.
This committee appeal process is an opportunity for both sides to discuss and substantiate their positions based upon legal arguments and the most complete information available. If the member requesting reconsideration is represented on the committee having jurisdiction, that committee member shall be deemed to have a conflict and shall be excluded from any vote.
(c) Executive Committee Appeal. If the member is not satisfied with the outcome of the committee appeal, the matter will be brought to the Executive Committee for reconsideration upon request of the member. If the member requesting reconsideration is represented on the Executive Committee, that Executive Committee member shall be deemed to have a conflict and shall be excluded from any vote. (d) Arbitration. If the member is not satisfied with the outcome of the Executive Committee appeal, the next step in the appeal process is arbitration. The arbitration, whether binding or non-binding, is to be mutually agreed upon by the parties. The matter will be submitted to a mutually agreed arbitrator or panel of arbitrators for a determination. If Binding Arbitration is selected, then the decision of the arbitrator is final. Both sides agree to abide by the decision of the arbitrator. The cost of arbitration will be shared equally by the involved member and PRISM.
(e) Litigation. If, after following the dispute resolution procedure paragraphs a-d, either party is not satisfied with the outcome of the non-binding arbitration process, either party may consider litigation as a possible remedy to the dispute.
ARTICLE 32
FILING WITH SECRETARY OF STATE
The Chief Executive Officer of PRISM shall file a notice of this Agreement with the office of California Secretary of State within 30 days of its effective date, as required by Government Code Section 6503.5 and within 70 days of its effective date as required by Government Code Section 53051.
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IN WITNESS WHEREOF, the undersigned party hereto has executed this Agreement on the date indicated below.
DATE:____________________ MEMBER: ___________________________________ (Print Name of Member)
BY: ________________________________________
(Authorized signature of Member)
Seal:
16.C
APPENDIX A
JOINT POWERS AGREEMENT
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT
(PRISM)
(as of AUGUST 7, 2020)
ALAMEDA COUNTY
ALPINE COUNTY
AMADOR COUNTY
BUTTE COUNTY
CALAVERAS COUNTY
COLUSA COUNTY
CONTRA COSTA COUNTY
DEL NORTE COUNTY
EL DORADO COUNTY
FRESNO COUNTY
GLENN COUNTY
HUMBOLDT COUNTY
IMPERIAL COUNTY
INYO COUNTY
KERN COUNTY
KINGS COUNTY
LAKE COUNTY
LASSEN COUNTY
MADERA COUNTY
MARIN COUNTY
MARIPOSA COUNTY
MENDOCINO COUNTY
MERCED COUNTY
MODOC COUNTY
MONO COUNTY
MONTEREY COUNTY
NAPA COUNTY
NEVADA COUNTY
ORANGE COUNTY
PLACER COUNTY
PLUMAS COUNTY
RIVERSIDE COUNTY
SACRAMENTO COUNTY
SAN BENITO COUNTY
SAN BERNARDINO COUNTY
SAN DIEGO COUNTY
SAN JOAQUIN COUNTY
SAN LUIS OBISPO COUNTY
SANTA BARBARA COUNTY
SANTA CLARA COUNTY
SANTA CRUZ COUNTY
SHASTA COUNTY
SIERRA COUNTY
SISKIYOU COUNTY
SOLANO COUNTY
SONOMA COUNTY
STANISLAUS COUNTY
SUTTER COUNTY
TEHAMA COUNTY
TRINITY COUNTY
TULARE COUNTY
TUOLUMNE COUNTY
VENTURA COUNTY
YOLO COUNTY
YUBA COUNTY
ACCEL
ALAMEDA HEALTH SYSTEM
AMADOR TRANSIT
BAHARMA (BAY AREA HOUSING AUTHORITY
RISK MANAGEMENT AUTHORITY)
BAY AREA AIR QUALITY MGMT DISTRICT
BERKELEY UNIFIED SCHOOL DISTRICT
CALIFORNIA FAIR SERVICES AUTHORITY
CALIFORNIA MENTAL HEALTH SERVICES
AUTHORITY
CALIFORNIA STATE LEGISLATURE
CALIFORNIA STATE UNIVERSITY RISK
MANAGEMENT AUTHORITY
(CSURMA)
CAMPBELL UNION SCHOOL DISTRICT
CAPITOL AREA DEVELOPMENT AUTHORITY
CAPRI
CASITAS MUNICIPAL WATER DISTRICT
CATALINA ISLAND MEDICAL CENTER
CENTRAL CONTRA COSTA SANITARY
DISTRICT
CENTRAL COUNTY FIRE DEPARTMENT
CENTRAL REGION SCHOOL INSURANCE
GROUP (CRSIG)
CENTRAL SIERRA CHILD SUPPORT AGENCY
CITY OF ALAMEDA
CITY OF ALBANY
CITY OF AMERICAN CANYON
CITY OF ANAHEIM
CITY OF ATASCADERO
CITY OF ATWATER
CITY OF BAKERSFIELD
CITY OF BALDWIN PARK
CITY OF BEAUMONT
CITY OF BELL
CITY OF BELMONT
CITY OF BERKELEY
CITY OF BUENA PARK
CITY OF BURLINGAME
CITY OF CALABASAS
CITY OF CALEXICO
CITY OF CAPITOLA
CITY OF CARMEL BY THE SEA
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CITY OF CARSON
CITY OF CHICO
CITY OF CHULA VISTA
CITY OF CLOVIS
CITY OF CONCORD
CITY OF CORONA
CITY OF CORONADO
CITY OF COSTA MESA
CITY OF COVINA
CITY OF CUPERTINO
CITY OF CYPRESS
CITY OF DALY CITY
CITY OF DEL MAR
CITY OF DIXON
CITY OF DOWNEY
CITY OF EL CAJON
CITY OF EL CENTRO
CITY OF EL MONTE
CITY OF ELK GROVE
CITY OF ENCINITAS
CITY OF ESCALON
CITY OF ESCONDIDO
CITY OF FAIRFIELD
CITY OF FOLSOM
CITY OF FONTANA
CITY OF FOSTER CITY
CITY OF FOUNTAIN VALLEY
CITY OF FREMONT
CITY OF GALT
CITY OF GARDEN GROVE
CITY OF GARDENA
CITY OF GOLETA
CITY OF HANFORD
CITY OF HAWTHORNE
CITY OF HAYWARD
CITY OF HEMET
CITY OF HESPERIA
CITY OF HUNTINGTON BEACH
CITY OF IMPERIAL BEACH
CITY OF IONE
CITY OF IRVINE
CITY OF LANCASTER
CITY OF LEMON GROVE
CITY OF LIVE OAK
CITY OF LIVERMORE
CITY OF LOMPOC
CITY OF LOS ALAMITOS
CITY OF LOS ALTOS
CITY OF MANHATTAN BEACH
CITY OF MAYWOOD
CITY OF MENLO PARK
CITY OF MERCED
CITY OF MILL VALLEY
CITY OF MILLBRAE
CITY OF MISSION VIEJO
CITY OF MODESTO
CITY OF MONTEBELLO
CITY OF MORENO VALLEY
CITY OF MURRIETA
CITY OF NAPA
CITY OF NATIONAL CITY
CITY OF NEEDLES
CITY OF NEWPORT BEACH
CITY OF NOVATO
CITY OF OAKLAND
CITY OF OCEANSIDE
CITY OF OROVILLE
CITY OF OXNARD
CITY OF PACIFICA
CITY OF PALMDALE
CITY OF PASADENA
CITY OF PASO ROBLES
CITY OF PERRIS
CITY OF PICO RIVERA
CITY OF PLEASANTON
CITY OF POMONA
CITY OF PORT HUENEME
CITY OF RANCHO CORDOVA
CITY OF RANCHO MIRAGE
CITY OF RANCHO SANTA MARGARITA
CITY OF REDDING
CITY OF REDLANDS
CITY OF REDONDO BEACH
CITY OF REDWOOD CITY
CITY OF RIALTO
CITY OF RICHMOND
CITY OF RIDGECREST
CITY OF ROSEVILLE
CITY OF SACRAMENTO
CITY OF SAN BERNARDINO
CITY OF SAN BRUNO
CITY OF SAN CLEMENTE
CITY OF SAN DIEGO
CITY OF SAN JACINTO
CITY OF SAN LEANDRO
CITY OF SAN MATEO
CITY OF SAN RAMON
CITY OF SANTA CLARA
CITY OF SANTA ROSA
CITY OF SANTEE
CITY OF SHAFTER
CITY OF SIMI VALLEY
CITY OF SOLANA BEACH
CITY OF SOUTH PASADENA
CITY OF SOUTH SAN FRANCISCO
CITY OF STANTON
CITY OF STOCKTON
CITY OF SUNNYVALE
CITY OF TORRANCE
CITY OF VACAVILLE
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CITY OF VALLEJO
CITY OF VENTURA
CITY OF VISALIA
CITY OF VISTA
CITY OF WALNUT CREEK
CITY OF WATSONVILLE
CITY OF WEST COVINA
CITY OF WEST SACRAMENTO
CITY OF WESTMINSTER
CITY OF WHITTIER
CITY OF YUBA CITY
COACHELLA VALLEY ASSICIATION OF
GOVERNMENTS (CVAG)
COAST COMMUNITY COLLEGE DISTRICT
CONTRA COSTA COUNTY IHSS PUBLIC
AUTHORITY
COUNCIL OF SAN BENITO COUNTY
GOVERNMENTS
CSAC EXCESS INSURANCE AUTHORITY
CSRM
DEL NORTE IHSS PUBLIC AUTHORITY
DUBLIN SAN RAMON SERVICES DISTRICT
EAST BAY REGIONAL PARK DISTRICT
EAST SAN GABRIEL VALLEY ROP
EVERGREEN SCHOOL DISTRICT
EXCLUSIVE RISK MANAGEMENT
AUTHORITY OF CALIFORNIA (ERMAC)
FAIRFIELD-SUISUN SEWER DISTRICT
FIRST FIVE CONTRA COSTA CHILDREN &
FAMILIES COMMISSION
FIRST FIVE SACRAMENTO COMMISSION
GARVEY SCHOOL DISTRICT
GOLD COAST TRANSIT DISTRICT
GOLDEN EMPIRE TRANSIT DISTRICT
GREAT BASIN UNIFIED AIR POLLUTION
CONTROL DISCTRICT
GSRMA
GSRMA JPA ADMINISTRATION
HOUSING AUTHORITY OF THE COUNTY OF
MONTEREY
HOUSING AUTHORITY OF THE COUNTY OF
RIVERSIDE
HUMBOLDT TRANSIT AUTHORITY (HTA)
HUNTINGTON BEACH UNION HIGH SCHOOL
DISTRICT
IMPERIAL COUNTY IHSS PUBLIC
AUTHORITY
INLAND EMPIRE HEALTH PLAN
INLAND EMPIRE UTILITIES AGENCY
IRVINE RANCH WATER DISTRICT
KERN COUNTY HOSPITAL AUTHORITY
KERN HEALTH SYSTEMS
KERN IHSS PUBLIC AUTHORITY
KINGS COUNTY AREA PUBLIC TRANSIT
AGENCY
KINGS WASTE & RECYCLING AUTHORITY
LAKE ELSINORE UNIFIED SCHOOL DISTRICT
LOCAL AGENCY WC EXCESS JPA (LAWCX)
LOMPOC HEALTHCARE DISTRICT
LONG BEACH UNIFIED SCHOOL DISTRICT
LOS ANGELES COUNTY DEVELOPMENT
AUTHORITY (LACDA)
LOS ANGELES COUNTY LAW LIBRARY
LOS ANGELES UNFIED SCHOOL DISTRICT
RISK MANAGEMENT AUTHORITY
MARIN COUNTY TRANSIT DISTRICT
MENDOCINO COAST DISTRICT HOSPITAL
MONTEREY BAY AREA SELF INSURANCE
AUTHORITY
MONTEREY COUNTY WATER RESOURCE
AGENCY
MONTEREY SALINAS TRANSIT
MORONGO BASIN TRANSIT AUTHORITY
MOUNTAIN COMMUNITIES HEALTHCARE
DISTRICT
MT. DIABLO UNIFIED SCHOOL DISTRICT
MUNICIPAL POOLING AUTHORITY (MPA)
NAPA SANITATION DISTRICT
NCSDIA
NORTHERN CA CITIES SELF INSURANCE
FUND
NORTHERN CALIFORNIA POWER AGENCY
OAKLAND UNIFIED SCHOOL DISTRICT
OFFICE OF COMMUNITY AND INVESTMENT
AND INFRASTRUCTURE
OMNITRANS
ORANGE COUNTY FIRE AUTHORITY
ORANGE COUNTY SANITATION DISTRICT
ORANGE COUNTY TRANSPORTATION
AUTHORITY
OTAY WATER DISTRICT
PALO VERDE VALLEY HEALTH CARE
DISTRICT HOSPITAL
PASADENA UNIFIED SCHOOL DISTRICT
PASIS – SAN DIEGO
PLACER COUNTY WATER AGENCY
PLEASANT HILL RECREATION & PARK DIST
PORT OF OAKLAND
PUBLIC AGENCY RISK SHARING
AUTHORITY OF CALIFORNIA
PUBLIC ENTITY RISK MANAGEMENT
AUTHORITY
REDONDO BEACH UNIFIED SCHOOL DIST
RIVERSIDE IHSS PUBLIC AUTHORITY
RIVERSIDE TRANSIT AGENCY
SACRAMENTO – YOLO MOSQUITO AND
VECTOR CONTROL DISTRICT
SACRAMENTO AREA FLOOD CONTROL
AGENCY
SACRAMENTO COUNTY CONTRACTS
16.C
PRISM
Joint Powers Agreement Appendix A
SAN BENITO IHSS PUBLIC AUTHORITY
SAN BERNARDINO DEPARTMENTS
SAN BERNARDINO IHSS PUBLIC AUTHORITY
SAN BERNARDINO MUNICIPAL WATER
DEPARTMENT
SAN DIEGO COUNTY IHSS PUBLIC
AUTHORITY
SAN DIEGO COUNTY WATER AUTHORITY
SAN DIEGO HOUSING COMMISSION
SAN DIEGO METROPOLITAN TRANSIT
SYSTEM
SAN DIEGO UNIFIED SCHOOL DISTRICT
SAN JOSE UNIFIED SCHOOL DISTRICT
SAN LUIS OBISPO RTA (SLORTA)
SAN MATEO CONSOLIDATED FIRE
DEPARTMENT
SAN MATEO COUNTY SCHOOLS
INSURANCE GROUP
SANTA BARBARA METROPOLITAN TRANSIT
DISTRICT
SANTA CLARA COUNTY LIBRARY DISTRICT
JPA
SANTA CLARA COUNTY OFFICE OF
EDUCATION
SANTA CLARA COUNTY VECTOR CONTROL
DISTRICT
SANTA CLARA HOUSING AUTHORITY
SANTA CRUZ COUNTY FIRE AGENCIES
INSURANCE GROUP
SANTA CRUZ METRO TRANSIT DISTRICT
SCHOOLS EXCESS LIABILITY FUND
SHASTA IHSS PUBLIC AUTHORITY
SIRMA
SOLANO TRANSPORTATION AUTHORITY
SONOMA COUNTY ERA
SONOMA MARIN AREA RAIL TRANSIT
SOUTH BAY AREA SCHOOLS INSURANCE
AUTHORITY
SOUTH COAST AIR QUALITY MANAGEMENT
DISTRICT
SOUTH COUNTY AREA TRANSIT
SPECIAL DISTRICT RICK MANAGEMENT
AUTHORITY
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF ALPINE
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF AMADOR
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF BUTTE
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF CALAVERAS
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF COLUSA
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF CONTRA COSTA
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF DEL NOTRE
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF EL DORADO
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF LAKE
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF LASSEN
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF MERCED
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF ORANGE
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF PLACER
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF SAN BENITO
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF SAN LUIS OBISPO
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF SANTA BARBARA
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF SANTA CRUZ
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF SHASTA
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF SONOMA
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF STANISLAUS
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF TRINITY
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF TUOLUMNE
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF YOLO
SUPERIOR COURT OF CALIFORNIA,
COUNTY OF YUBA
SUTTER IHSS PUBLIC AUTHORITY
TAHOE TRANSPORTATION DISTRICT
TORRANCE UNIFIED SCHOOL DISTRICT
TOWN OF COLMA
TOWN OF YOUNTVILLE
TRANSPORTATION CORRIDOR AGENCIES
TRINDEL INSURANCE FUND
TURLOCK IRRIGATION DISTRICT
UNION SANITARY DISTRICT
UNIVERSITY OF CALIFORNIA, HASTINGS
COLLEGE OF LAW
UPLAND UNIFIED SCHOOL DISTRICT
WEST SAN GABRIEL LIAB. & PROP. JPA
WEST SAN GABRIEL WC JPA
WESTERN RIVERSIDE COUNCIL OF
GOVERNMENTS
YOLO PARMIA
16.C
Adopted: March 5, 1993
Amended: October 4, 1996
Amended: October 6, 2006
Amended: March 6, 2009
MEMORANDUM OF UNDERSTANDING
EXCESS WORKERS' COMPENSATION PROGRAM
This Memorandum of Understanding is entered into by and between Public Risk Innovation, Solutions, and Management (hereinafter referred to as "PRISM") and the participating members who are signatories to this Memorandum.
1. Joint Powers Agreement. Except as otherwise provided herein, all terms used herein shall be as defined in Article 1 of the Joint Powers Agreement Creating PRISM (hereinafter referred to as "Agreement"), and all other provisions of the Agreement not in conflict with this Memorandum shall be applicable.
2. Annual Premium. The participating members, in accordance with the provisions of Article 14(b)(2) of the Agreement, shall be assessed an annual premium for the purpose of funding the Excess Workers' Compensation Program (hereinafter referred to as the "Program"). Annual premiums shall include expected losses for the policy period, including Incurred But Not Reported losses (IBNR), as well as a margin for contingencies based upon a confidence level as determined by the Board of Directors of PRISM (hereinafter Board), and adjustments, if any, for a surplus or deficit from all program policy periods. In addition, the premium shall include program reinsurance costs and program administrative costs, plus PRISM's general expense allocated to the Program by the Board for the next policy period.
3. Cost Allocation. Each participating member’s share of annual premium shall be determined pursuant to a cost allocation plan as described in Article 14(b)(2) of the Agreement. The Board approved cost allocation plan is attached hereto as Exhibit A and may be amended from time to time by an affirmative vote of the majority of the Board representing the members participating in the Program.
4. Dividends and Assessments. The Program shall be funded in accordance with paragraph 2 above. In general, the annual premium, as determined by the Board, will be established at a level which will provide adequate overall funding without the need for adjustments to past policy period(s) in the form of dividends and assessments. However, should the Program for any reason not be adequately funded, except as otherwise provided herein, pro-rata assessments to the participating members may be utilized to ensure the approved funding level for those policy periods individually or for a block of policy periods, in accordance with the provisions of Article 14(b)(3) of the Agreement.
16.C
PRISM Amended: March 6, 2009
Excess Workers’ Compensation Program MOU
Pro-rata dividends will be declared as provided herein. Dividends may also be declared as deemed appropriate by the Board.
5. Closure of Policy Periods. Notwithstanding any other provision of this Memorandum, the following provisions are applicable:
(a) Upon reaching ten (10) years of maturity after the end of a program period, that period shall be "closed" and there shall be no further dividends declared or assessments made with respect to those program periods except as set forth in paragraph 6(a), below;
(b) Notwithstanding sub-paragraph (a) above, the Board may take action to leave a policy period "open" even though it may otherwise qualify for closure. In addition, the last ten (10) policy periods shall always remain "open" unless the Board takes specific action to declare any of the last ten (10) policy periods closed.
(c) Dividends and assessments (other than as outlined in paragraph 6(a), below) shall be administered to the participating members based upon the proportion of premiums paid to the Program in "open" periods only. For purposes of administering dividends and assessments pursuant to this subparagraph, all "open" policy periods shall be considered as one block. New members to the Program shall become eligible for dividends and assessments upon participating in the Program for three (3) consecutive policy periods (not less than 24 months). Participating members who withdraw from the Program prior to the three-year policy period restriction are still eligible for any assessments that arose out of the policy years they participated in the Program.
6. Declaration of Dividends. Dividends shall be payable from the Program to a participating member in accordance with its proportionate funding to the Program during all “open” policy periods except as follows:
(a) A dividend shall be declared at the time a program period is closed on all amounts which represent premium surcharge amounts assessed pursuant to Article 14(b)(3) of the Agreement where the funding exceeds the 80% confidence level. This dividend shall be distributed based upon each member’s proportionate share of assessment paid and accrued to the policy period being closed.
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PRISM Amended: March 6, 2009
Excess Workers’ Compensation Program MOU
7. Memorandum of Coverage. A Memorandum of Coverage will be issued by PRISM evidencing membership in the Program and setting forth terms and conditions of coverage.
8. Claims Administration. Each participating member is required to comply with PRISM’s Underwriting and Claims Administration Standards (including Addendum A - W.C. Claims Administration Guidelines) as amended from time-to-time, and which are attached hereto as Exhibit B and incorporated herein.
9. Late Payments. Notwithstanding any other provision to the contrary regarding late payment of invoices or cancellation from a Program, at the discretion of the Executive Committee, any member that fails to pay an invoice when due may be given a ten (10) day written notice of cancellation.
10. Disputes. Any question or dispute with respect to the rights and obligations of the parties to this Memorandum regarding coverage shall be determined in accordance with the Joint Powers Agreement Article 31, Dispute Resolution.
11. Amendment. This Memorandum may be amended by two-thirds of PRISM’s Board of Directors and signature on the Memorandum by the member’s designated representative who shall have authority to execute this Memorandum. Should a member of the Program fail to execute any amendment to this Memorandum within the time provided by the Board, the member will be deemed to have withdrawn as of the end of the policy period.
12. Complete Agreement. Except as otherwise provided herein, this Memorandum constitutes the full and complete agreement of the members.
13. Severability. Should any provision of this Memorandum be judicially determined to be void or unenforceable, such determination shall not affect any remaining provision.
14. Effective Date. This Memorandum shall become effective on the effective date of coverage for the member and upon approval by the Board of any amendment, whichever is later.
15. Execution in Counterparts. This Memorandum may be executed in several counterparts, each of which shall be an original, all of which shall constitute but one and the same instrument.
16.C
PRISM Amended: March 6, 2009
Excess Workers’ Compensation Program MOU
IN WITNESS WHEREOF, the undersigned have executed this Memorandum as of the date set forth below.
Dated: ________________ ______________________________________ Public Risk Innovation, Solutions, and Management
Dated: ________________ ______________________________________ Member Entity: _________________________
3/6/2009
16.C
Last Amended: 3/7/2003
EXHIBIT A
EXCESS WORKERS’ COMPENSATION PROGRAM
COST ALLOCATION PLAN
As delegated by the Board of Directors, the Executive Committee will determine the specific allocation of all costs among the members subject to the following parameters:
Actuarial Analysis
An annual actuarial analysis will be performed using loss data and payroll collected from the members. The analysis will determine the necessary funding rates at various confidence levels and using various discount assumptions.
Different rates may be developed for different groups or classes of business as is deemed necessary or appropriate by the Executive Committee. At the March Board meeting, the Board of Directors will select the funding level rates and discount factors to be used based upon the actuarial analysis and recommendations from the Actuary, the Underwriting Committee and the Executive Committee.
Pool Contributions
The total needed deposit pool contribution will be determined by multiplying the rates described above by the payroll for all of the members participating in the pool. Estimated payroll for the year being funded will be used. The Executive Committee may break the pool into different layers for allocation purposes, and may apply a different loss experience modification for each layer as is deemed appropriate based on loss frequency. In general, the lower layers will be subject to greater experience modification and the higher layers will be subject to lower experience modification or no experience modification. Within the layers, the larger members will be subject to greater experience modification than the smaller members. After the experience modification has been applied for each layer, there will be a pro-rata adjustment back to the total needed deposit pool contribution. This amount will be collected from the members at the beginning of the policy period. The actual payroll for the period will be determined after the completion of the policy period and an adjustment to each member’s pool contribution will be made to account for the difference between the estimated and actual payroll. Additional contributions will be collected or return contributions will be refunded as appropriate.
Reinsurance Premiums
The reinsurance premium will be determined through negotiations with the reinsurer(s) and approved by the Board upon recommendation of the Underwriting and Executive Committees. This premium will then be allocated among the members based upon their estimated payroll. Adjustments will be
16.C
EWC Program MOU
Exhibit A
made based on the actual payroll upon completion of the policy period in the same manner as described in the Pool Contribution section above.
PRISM Administration Fees
The total PRISM Administration Fees will be determined through the annual budgeting process with an appropriate amount allocated to the Excess Workers’ Compensation Program. These fees will be allocated among the members as determined by the Executive Committee. In general, the basis for this allocation will be each member’s percentage of the total pool contributions and reinsurance premium.
Deviation From the Standard
The Executive Committee may establish policies to deviate from the standard allocation methodology selected for each year on a case-by-case basis, if necessary. They may also elect to further delegate some or all of the decisionmaking authority described herein to the Underwriting Committee.
16.C
Adopted: December 6, 1985
Last Amended: July 1, 2019
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
UNDERWRITING AND CLAIMS ADMINISTRATION STANDARDS
I. GENERAL
A. Each Member shall appoint an official or employee of the Member to be responsible for the risk management function and to serve as a liaison between the Member and PRISM for all matters relating to risk management.
B. Each Member shall maintain a loss prevention program and shall consider and act upon all recommendations of PRISM concerning the reduction of unsafe conditions.
II. EXCESS WORKERS' COMPENSATION PROGRAM
A. Members of the Excess Workers’ Compensation Program, except those members of the Primary Workers’ Compensation Program whose responsibilities are outlined in Section IV below, shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member.
1. The Member shall use only qualified personnel to administer its workers' compensation claims. At least one person in the claims office (whether in-house or outside administrator) shall be certified by the State of California as a qualified administrator of self-insured workers' compensation plans.
2. Qualified defense counsel experienced in workers’
compensation law and practice shall handle litigated claims.
Members are encouraged to utilize attorneys who have the designation “Certified Workers’ Compensation Specialist, the State Bar of California, Board of Legal Specialization”.
3. The Member shall use PRISM's Workers' Compensation Claims Administration Standards (Addendum A) and shall advise its claims administrator that these standards are utilized in PRISM's workers' compensation claims audits.
B. The Member shall provide PRISM written notice of any potential excess workers' compensation claims in accordance with the requirements of PRISM's Bylaws. Updates on such claims shall be provided pursuant to the reporting provisions of PRISM’s Workers’
EXHIBIT B
16.C
Compensation Claims Administration Standards (Addendum A) or as requested by PRISM and/or PRISM's excess carrier.
C. A claims administration audit utilizing PRISM's Workers' Compensation Claims Administration Standards (Addendum A) shall be performed once every two (2) years. In addition, an audit will be performed within twelve (12) months of any of the followingevents:
1. There is an unusual fluctuation in the Member's claim experience or number of large claims, or
2. There is a change of workers' compensation claims administration firms, or
3. The Member is a new member of the Excess Workers’ Compensation Program.
The claims audit shall be performed by a firm selected by PRISM unless an exception is approved. Recommendations made in the claims audit shall be addressed by the Member and a written response outlining a program for corrective action shall be provided to PRISM within sixty (60) days of receipt of the audit.
D. Each Member shall maintain records of claims in each category of coverage (i.e. indemnity, medical, expense) or as defined by PRISM and shall provide such records to PRISM as directed by the Board of Directors, Claims Review Committee, Underwriting Committee, or Executive Committee. Such records shall include both open and closed claims, allocated expenses, and shall not be capped by the Member’s self-insured retention.
E. The Member shall obtain an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS) at least once every three (3) years. Based upon the actuarial recommendations, the Member should maintain reserves and make funding contributions equal to or exceeding the present value of expected losses and a reasonable margin for contingencies.
III. GENERAL LIABILITY PROGRAMS
A. Members of the General Liability 1 or General Liability 2 Programs, except those members of the Deductible Buy-Down Program whose responsibilities are outlined in Section V below, shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member.
1. The Member shall use only qualified personnel to administer its liability claims.
16.C
2. Qualified defense counsel experienced in tort liability law shall handle litigated claims. Members are encouraged to utilize defense counsel experienced in the subject at issue in thelitigation.
3. The Member shall use the Liability Claims Administration Standards (Addendum B) and shall advise its claims administrator that these standards are utilized in PRISM's liability claims audits.
B. The Member shall provide PRISM written notice of any potential excess liability claim in accordance with the requirements of PRISM's Bylaws.
Updates on such claims shall be provided pursuant to the reporting provisions of PRISM’s Liability Claims Administration Standards (Addendum B) or as requested by PRISM and/or PRISM's excess carrier.
C. A claims administration audit utilizing PRISM's Liability Claims Administration Standards (Addendum B) shall be performed once every two (2) years. In addition, an audit will be performed within twelve (12) months of any of the followingevents:
1. There is an unusual fluctuation in the Member's claims experience or number of large claims, or
2. There is a change of liability claims administration firms, or
3. The Member is a new member of the General Liability 1 or General Liability 2 Program.
The claims audit shall be performed by a firm selected by PRISM unless an exception is approved. Recommendations made in the claims audit shall be addressed by the Member and a written response outlining a program for corrective action shall be provided to PRISM within sixty (60) days of receipt of the audit.
D. Each Member shall maintain records of claims in each category of coverage (i.e. bodily injury, property damage, expense) or as defined by PRISM and shall provide such records to PRISM as directed by the Board of Directors or applicable committee. Such records shall include open and closed claims, allocated expenses, and shall not be capped by the Member’s self-insured retention.
E. The Member shall obtain an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS) at least once every three (3) years. Based upon the actuarial recommendations, the Member should maintain reserves and make funding contributions equal to or exceeding the present value of expected losses and a reasonable margin for contingencies.
16.C
IV. PRIMARY WORKERS’ COMPENSATION PROGRAM
A. Members of the Primary Workers’ Compensation Program shall provide the third party administrator written notice of any claim in accordance with the requirements of PRISM. Members must also cooperate with the third party administrator in providing all necessary information in order for claims to be administered appropriately.
B. PRISM shall be responsible for ensuring qualified personnel administer claims in the Primary Workers’ Compensation Program and that claims are administered in accordance with PRISM’s Workers’ Compensation Claims Administration Standards (Addendum A).
C. PRISM shall be responsible for ensuring a claims administration audit utilizing PRISM’s Workers’ Compensation Claims Administration Standards (Addendum A) is performed once every two (2) years.
D. PRISM shall be responsible for obtaining an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS)annually.
V. DEDUCTIBLE BUY-DOWN PROGRAM
A. Members of the Deductible Buy-Down Program shall provide the third party administrator written notice of any claim or incident in accordance with the requirements of PRISM. Members must also cooperate with the third party administrator in providing all necessary information in order for claims to be administeredappropriately.
B. PRISM shall be responsible for ensuring qualified personnel administer claims in the Deductible Buy-Down Program and that claims are administered in accordance with PRISM’s Liability Claims Administration Standards (Addendum B).
C. PRISM shall be responsible for ensuring a claims administration audit utilizing PRISM’s Liability Claims Administration Standards (Addendum B) is performed once every two (2) years.
D. PRISM shall be responsible for obtaining an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS)annually.
VI. PROPERTY PROGRAM
A. Members of the Property Program shall maintain appropriate records including a complete list of insured locations and schedule of values pertaining to all real property. Such records shall be provided to PRISM or its brokers as requested by the Executive or Property Committees.
16.C
B. Each Member shall perform a real property replacement valuation for all locations over $250,000. Valuations shall be equivalent to the Marshall Swift system and shall be performed at least once every five (5) years for all locations over $1,000,000 and at least once every ten (10) years for all locations with a valuation between $250,000 and $1,000,000. New members shall have an appraisal or valuation performed within one year from entry into the Program.
VII. MEDICAL MALPRACTICE PROGRAM
A. Program I
1. Members of Medical Malpractice Program I (hereinafter Program I) shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member.
a. Members of Program I shall use only qualified personnel to administer its health facility claims.
b. Qualified defense counsel experienced in health facility law shall handle litigated claims.
c. Members of Program I shall use the "Claims Reporting and Handling Guidelines" in the PRISM Medical Malpractice
Program Operating and Guidelines Manual (hereinafter
Operating and Guidelines Manual), and shall advise its claims administrator that these claims handling guidelines are utilized in PRISM's medical malpractice claims audits.
2. Members of Program I shall provide PRISM written notice of any potential excess claim or "major incident" in accordance with the requirements of PRISM and of the excess carrier as stated in the Operating and Guidelines Manual. Updates on such claims or major incidents shall be provided as requested by PRISM.
3. A claims administration audit utilizing PRISM's Claims Reporting and Handling Guidelines in the Operating and Guidelines Manual shall be performed once every three (3) years. In addition, an audit will be performed within twelve (12) months of any of the following events:
a. There is an unusual fluctuation in the Member's claims experience or number of large claims, or
b. There is a change of health facility claims administration firms, or
16.C
c. The Member is a new member of the Medical Malpractice Program, or
d. The Medical Malpractice Committee requests an audit. The claims audit shall be performed by a firm(s) selected by PRISM.
Recommendations made in the claims audit shall be addressed by the Member and a written response outlining a program for corrective action shall be provided to PRISM within sixty (60) days of receipt of the audit.
4. Each Member shall maintain records of claims in each category of coverage (i.e. bodily injury, property damage, expense) or as defined by PRISM and shall provide such records to PRISM as directed by the Board of Directors or applicable committee. Such records shall include open and closed claims, allocated expenses, and shall not be capped by theMember’s self-insured retention.
5. Members of Program I shall obtain an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS) at least once every three (3) years. Based upon the actuarial recommendations, the Member should maintain reserves and make funding contributions equal to or exceeding the present value of expected losses and a reasonable margin for contingencies.
6. The Member shall have an effective risk management program in accordance with the "Risk Management Guidelines" as stated in the Operating and Guidelines Manual.
B. Program II
1. For Medical Malpractice Program II (hereinafter Program II) Members, PRISM shall be responsible for the investigation, settlement, defense and appeal of any claim made, suit brought or proceeding instituted against the Member. PRISM may contract with a third party administrator for handling of such claims.
2. PRISM shall be responsible for ensuring the third party administrator uses qualified personnel to administer Program II claims.
3. PRISM shall be responsible for ensuring qualified defense counsel experienced in health facility law shall handle litigated claims.
4. PRISM shall be responsible for ensuring a claims administration audit utilizing PRISM's Claims Reporting and Handing Guidelines in the Operating and Guidelines Manual shall be performed once every two (2) years.
16.C
The claims audit shall be performed by a firm(s) selected by PRISM.
Recommendations made in the claims audit shall be addressed by the third party administrator and a written response outlining a program for corrective action shall be provided to PRISM within sixty (60) days of receipt of the audit.
5. PRISM shall be responsible for obtaining an actuarial study performed by a Fellow of the Casualty Actuarial Society (FCAS) annually.
6. The Member shall have an effective risk management program in accordance with the "Risk Management Guidelines" as stated in the Operating and Guidelines Manual.
VIII. SANCTIONS
A. PRISM shall provide the Member written notification of the Member's failure to meet any of the above-mentioned standards or of other concerns, which affect or could affect PRISM.
B. The Member shall provide a written response outlining a program for corrective action within sixty (60) days of receipt PRISM's notification.
C. After approval by the Executive or applicable Program Committee of the Member's corrective program, the Member shall implement the approved program within ninety (90) days. The Member may request an additional sixty (60) days from the Executive or applicable Program Committee. Further requests for extensions shall be referred to the Board ofDirectors.
D. Failure to comply with subsections B or C may result in cancellation of the Member from the affected PRISM Program in accordance with the provisions in the Joint Powers Agreement.
E. Notwithstanding any other provision herein, any Member may be canceled pursuant to the provision of the Joint PowersAgreement.
16.C
ADDENDUM TO EXHIBIT B
Adopted: December 6, 1985
Last Amended: July 1, 2019
ADDENDUM A
WORKERS' COMPENSATION
CLAIMS ADMINISTRATION STANDARDS
The following Standards have been adopted by Public Risk Innovation, Solutions, and Management (hereinafter PRISM) in accordance with Article 18(b) of the PRISM Joint Powers Agreement. It is the intent of these Standards to ensure compliance with all applicable Labor Code and California Code of Regulations Sections. In the event that there exists a conflict between the Standards, the Labor Code or the Code of Regulations, the most stringent requirement shall apply.
I. CLAIMS HANDLING - ADMINISTRATIVE
A. Case Load
1. Each claims examiner assigned to the Member should handle a targeted caseload of 150 but not to exceed 165 claims. In situations where caseloads include future medical and medical only claims, these claims shall be counted as 2:1 in the caseload limit.
2. Supervisory personnel should not handle a caseload, although they may handle specific issues or a small number of conflict claims.
B. Case Review and Documentation
1. Documentation shall reflect any significant developments in the file and include a plan of action. Plan of action statements shall be updated at the time of examiner diary review.
2. The examiner shall review indemnity and medical-only files at intervals not to exceed 45 calendar days. Future medical files shall be reviewed at intervals not to exceed 90 calendar days.
3. The supervisor shall review all new claims within 60 calendar days of initial set up and subsequently monitor activity on indemnity files at intervals not to exceed 120 calendar days. Future medical files shall be reviewed by the supervisor at intervals not to exceed 180 calendar days.
16.C
4. File contents shall comply with Code of Regulations Sections 10101, 10101.1 and 15400, and be kept in a neat and orderly fashion. If claims are maintained in a paperless system, documents shall be clearly identified (e.g., medical report, WCAB Orders, legal, etc.).
5. Medical Only Claims
a. If a medical-only claim is still open at 90 calendar days, it shall be transferred to an indemnity examiner.
b. If, at any time, it is anticipated there will be indemnity benefits paid, the claim shall be transferred to an indemnity claim type. c. If the medical-only claim remains open at 180 days, the claim shall be converted to an indemnity claim type, unless there is documentation showing that medical treatment will be ending and the claimant will be discharged from care within the next 30 days, or the claimant is only seeking treatment for a bloodborne pathogen exposure protocol.
C. Communication
1. Telephone Inquiries
Return calls shall be made within 1 working day of the original telephone inquiry. All documentation shall reflect these efforts.
2. Incoming Correspondence
All correspondence received shall be clearly stamped with the date of receipt.
3. Return Correspondence
All correspondence requiring a written response shall have such response completed and transmitted within 5 working days of receipt.
4. Ongoing Claimant Contact
On cases involving unrepresented injured workers who are off work, telephone contact shall be made at a minimum of once every 30 days and within 3 working days after discharge from the hospital or outpatient facility following a surgical procedure. This is in addition to nurse case management involvement on claims where nurse case managers are assigned.
16.C
D. Fiscal Handling
1. Fiscal handling for indemnity benefits on active cases shall be balanced with appropriate file documentation on a semi-annual basis and prior to sending a benefit termination notice to verify that statutory benefits are paid appropriately. Balancing is defined as, “an accounting of the periods and amounts due in comparison with what was actually paid”.
2. In cases of multiple losses with the same person, payments shall be made on the appropriate claim file.
E. Medicare Reporting
Mandatory reporting to the Center for Medicaid Services (CMS) shall be completed directly or through a reporting agent in compliance with Section 111 of the Medicare Medicaid and SCHIP Extension Act of 2007 (“MMSEA”). Medicare eligibility shall be documented in the claim file at time of settlement evaluation.
II. CLAIM CREATION
A. Three-Point Contact
Three-point contact shall be conducted on all claims with the nonrepresented injured worker, employer representative and treating physician within 3 working days of receipt of the claim by the third party administrator or self-administered entity. If a nurse case manager is assigned to the claim, initial physician contact may be conducted by either the claims examiner or the nurse case manager. This initial contact should be substantive and clearly documented in the claim file. In the event a party is non-responsive, there shall be evidence of at least three documented attempts to reach the individual.
B. Compensability
1. The initial compensability determination (accept claim, deny claim or delay acceptance pending the results of additional investigation) and the reasons for such a determination shall be made and documented in the file within 14 calendar days of the filing of the claim with the employer. In the event the claim is not received by the third party administrator or self-administered entity within 14 calendar days of the filing of the claim with the employer, the third party administrator or self-administered entity shall make the initial compensability determination within 7 calendar days of receipt of the claim.
16.C
2. Delay of benefit letters shall be mailed in compliance with the Division of Workers’ Compensation (DWC) guidelines. In the event the employer does not provide notice of lost time to the third party administrator or self-administered entity timely to comply with DWC guidelines, the third party administrator or self-administered entity shall mail the benefit letters within 7 calendar days of notification.
3. The final compensability determination shall be made by the claims examiner or supervisor within 90 calendar days of employer receipt of the claim form.
C. AOE/COE Investigation
If a decision is made to delay benefits on a claim, an AOE/COE investigation shall be initiated within 3 working days of the decision to delay. This may include, but is not limited to, assigning out for witness/injured worker statements, initiating the QME/AME process, requesting medical records, etc.
D. Reserves
1. Using the information available at claim file set up, an initial reserve shall be established for the most probable case value.
2. The initial reserve shall be electronically posted to the claim within 14 calendar days of receipt of the claim.
E. Indexing
All claims shall be reported to the Index Bureau at time of initial set up and re-indexed on an as needed basis thereafter. Blood borne pathogen exposure claims are an exception to this requirement.
PRISM maintains membership with the Index Bureau that members can access.
III. CLAIM HANDLING – TECHNICAL
A. Payments
1. Initial Temporary and Permanent Disability Indemnity Payment a. The initial indemnity payment shall be issued to the injured worker within 14 calendar days of knowledge of the injury and disability. In the event the third party administrator or selfadministered entity is not notified of the injury and disability
16.C
within 14 calendar days of the employer’s knowledge, the third party administrator or self-administered entity shall make payment within 7 calendar days of notification. Initial permanent disability payments shall be issued within 14 calendar days after the date of last payment of temporary disability. Effective 1/1/2013, permanent disability payments shall be issued upon approval of an Award pursuant to Labor Code Section 4650(b)(2). Prior to a PD Award, advances may be due if the employer has not offered the employee a position paying at least 85% of their wages and compensation at time of injury or the employee is not employed in a position paying at least 100% of their wages and compensation at time of injury. This shall not apply with salary continuation.
b. The properly completed DWC Benefit Notice shall be mailed to the employee within 14 calendar days of the first day of disability. In the event the third party administrator or selfadministered entity is not notified of the first day of disability until after 14 calendar days, the DWC Benefit Notice shall be mailed within 7 calendar days of notification.
c. Self-imposed penalty shall be paid on late payments in accordance with Section III. A.7 of this document.
d. Overpayments shall be identified and reimbursed timely where appropriate. The third party administrator or selfadministered entity shall request reimbursement of overpaid funds from the party that received the funds. If necessary, a credit shall be sought as part of any resolution of the claim.
2. Subsequent Temporary and Permanent Disability Payments a. Eligibility for indemnity payments subsequent to the first payment shall be verified, except for established long-term disability.
b. Ongoing indemnity payments shall be paid in accordance with Labor Code Section 4650(c).
c. Subsequent DWC benefit notices shall be issued in
accordance with CCR 9812.
d. Self-imposed penalty shall be paid on late payments in accordance with Section III. A.7 of this document.
3. Final Temporary and Permanent Disability Payments
16.C
a. All final indemnity payments shall be issued timely. b. The appropriate DWC benefit notices shall be issued in accordance with CCR 9812.
c. Self-imposed penalty shall be paid on late payments in accordance with Section III. A.7. of this document.
4. Award Payments
a. The claim file shall reflect demonstrated efforts to initiate/batch payments on undisputed Awards,
Commutations, or Compromise and Release agreements
within 10 working days following receipt of the appropriate document, unless the Award indicates payment is due sooner. b. For all claims in the Primary Workers’ Compensation (PWC) Program and/or excess reportable claims, copies of all
Awards shall be provided to PRISM at time of payment.
5. Medical Payments
a. Medical treatment billings (physician, pharmacy, hospital, physiotherapist, etc.) shall be reviewed for correctness, approved for payment and paid within 60 days of receipt. b. The medical provider shall be notified in writing within 30 days of receipt of an itemized bill if a medical bill is contested, denied or incomplete.
c. A bill review process should be utilized whenever possible.
There should be participation in a PPO and/or MPN whenever possible.
6. Injured Worker Reimbursement Expense
a. Reimbursements to injured workers shall be issued within 15 working days of the receipt of the claim for reimbursement. b. Advance travel expense payments shall be issued to the injured worker 10 working days prior to the anticipated date of travel.
7. Penalties
16.C
a. Penalties shall be coded so as to be identified as a penalty payment.
b. If the Member utilizes a third party administrator, the Member shall be advised of the assessment of any penalty for delayed payment and the reason thereof, and the administrator’s plans for payment of such penalty, on a monthly basis.
c. If the Member utilizes a third party administrator, the Member, in their contract with the administrator, shall specify who is responsible for specific penalties.
B. Medical Treatment
1. Each Member shall have in place a Utilization Review process as set forth in Labor Code Section 4610.
2. Disputes regarding utilization review determinations shall be resolved using the Independent Medical Review process set forth in Labor Code Section 4610.5.
3. Nurse case managers shall be utilized where appropriate. Rationale for assignment and continued necessity shall be documented in the claim notes at each regular diary review.
4. If enrolled in a Medical Provider Network, the network shall be utilized whenever appropriate.
C. Apportionment
1. Investigation into the existence of apportionment shall be documented.
2. If potential apportionment is identified, all efforts to reduce exposure shall be pursued.
D. Disability Management
1. The third party administrator or self-administered entity shall work proactively to obtain work restrictions and/or a release to full duty on all cases. The TPA or self-administered entity shall notify a designated Member representative immediately upon receipt of temporary work restrictions or a release to full duty, and work closely with the Member to establish a return to work as soon as possible.
16.C
2. The third party administrator or self-administered entity shall notify a designated Member representative immediately upon receipt of an employee’s permanent work restrictions so that the Member can determine the availability of alternative, modified or regular work.
3. If there is no response within 20 calendar days, the third party administrator or self-administered entity shall follow up with the designated Member representative.
4. Members shall have in place a process for complying with laws preventing disability discrimination, including Government Code Section 12926.1, which requires an interactive process with the injured worker when addressing a return to work particularly with permanent work restrictions.
5. Third party administrators or self-administered claims professional shall cooperate with members to the fullest extent, in providing medical and other information the member deems necessary for the member to meet its obligations under federal and state disability laws.
E. Supplemental Job Displacement Benefits
1. Supplemental Job Displacement Benefits – Dates of injury on or after 1/1/04 and before 1/1/13: Benefits pursuant to Labor Code Section 4658.5 shall be timely provided. Dates of injury on or after 1/1/13:
Benefits pursuant to Labor Code 4658.7 shall be timely provided.
2. The third party administrator or self-administered entity shall secure the prompt conclusion of SJDB.
F. Reserving
1. Reserves shall be reviewed at regular diary and at time of any significant event, e.g. - surgery, P&S/MMI, return to work, etc., and adjusted accordingly. This review shall be documented in the file regardless of whether a reserve change was made. Where the SIP model does not apply, claims shall be reserved for the most probable value.
2. Indemnity reserves shall reflect actual temporary disability indemnity exposure with 4850 differential listed separately.
3. Permanent disability indemnity exposure shall include life pension reserve if appropriate.
16.C
4. Future medical claims shall be reserved in compliance with CCR 15300 (b)(4) allowing adjustment for reductions in the approved medical fee schedule, undisputed utilization review, medically documented non-recurring treatment costs and medically
documented reductions in life expectancy.
5. Allocated expense reserves shall include medical cost containment, legal, investigation, copy service and other related fees.
6. A reserve worksheet shall be utilized and/or detailed rationale substantiating reserve levels shall be documented within the claim file.
G. Resolution of Claim
1. Within 10 working days of receiving medical information indicating that a claim can be finalized, the claims examiner shall begin appropriate action to finalize the claim.
2. Follow up finalization efforts shall continue and be documented at regular diary reviews until resolution is complete.
3. Settlement value shall be documented appropriately utilizing all relevant information.
4. Where settlement includes resolution of future medical for a Medicare beneficiary or an expected Medicare beneficiary, the settlement shall document the strategy to protect Medicare’s secondary payer status.
5. Pursuant to CCR15400.2, claim files with awards for future benefits shall be reviewed for administrative closure two years after the last provision of benefits.
H. Settlement Authority
1. No agreement shall be authorized involving liability, or potential liability, of PRISM without the advance written consent of PRISM.
The member shall be notified of any settlement request submitted to PRISM.
2. The third party administrator shall obtain the Member’s authorization on all settlements or stipulations in excess of the settlement authority provided in any provision of the individual contract between the Member and the claims administrator.
16.C
3. Proof of settlement authorization(s) shall be maintained in the claim file.
IV. LITIGATED CASES
The third party administrator or self-administered entity shall establish written guidelines for the handling of litigated cases. The guidelines should, at a minimum, include the points below, which may be adopted and incorporated by reference as "the Guidelines".
1. The third party administrator or self-administered entity shall promptly initiate investigation of issues identified as material to potential litigation. The Member shall be alerted to the need for in-house investigation, or the need for a contract investigator who is acceptable to the Member. The Member shall be kept informed on the scope and results of investigations.
2. The third party administrator or self-administered entity shall, in consultation with the Member, assign defense counsel from a list approved by the Member. Initial referral and ongoing litigation management shall be timely and appropriate. The third party administrator or self-administered entity shall maintain control of the ongoing claim activities.
3. Settlement proposals directed to the Member shall be forwarded by the third party administrator, self-administered entity or defense counsel in a concise and clear written form with a reasoned recommendation. Settlement proposals shall be presented to the Member as directed so as to insure receipt in sufficient time to process the proposal.
4. Knowledgeable Member personnel shall be involved in the preparation for medical examinations and trial, when appropriate or deemed necessary by the Member so that all material evidence and witnesses are utilized to obtain a favorable result for the defense.
5. The third party administrator or self-administered entity shall comply with any reporting requirement of the Member.
V. SUBROGATION
1. In all cases where a third party (other than a Member employee or agent) is responsible for the injury to the employee, attempts to obtain information regarding the identity of the responsible party shall be made within 14 calendar days of recognition of subrogation potential.
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2. Once identified, the third party shall be contacted within 14 calendar days with notification of the Member's right to subrogation and the recovery of certain claim expenses.
3. If the third party is a governmental entity, a claim shall be filed with the governing board (or State Board of Control as to State entities) within 6 months of the injury or notice of the injury. If the third party is a nongovernmental entity, a complaint shall be filed in civil court within two years in order to preserve the statute of limitations.
4. Periodic contact shall be made with the responsible party and/or insurer to provide notification of the amount of the estimated recovery to which the Member shall be entitled.
5. If the injured worker brings a civil action against the party responsible for the injury, the claims administrator shall consult with the Member about the value of the subrogation claim and other considerations.
Upon Member authorization, subrogation counsel shall be assigned to file a Lien or a Complaint in Intervention in the civil action.
6. Whenever practical, the claims administrator shall aggressively pursue recovery in any subrogation claim. They should attempt to maximize the recovery for benefits paid, and assert a credit against the injured worker’s net recovery for future benefit payments.
7. Member (and PRISM if applicable) approval is required to waive pursuit of subrogation or agree to a settlement of a third party recovery. This approval shall be documented in the claim file. In cases of self-administered entities, a process shall be documented noting the authority levels within the member organization to waive pursuit of subrogation or agree to a settlement of a third party recovery.
VI. EXCESS COVERAGE
A. Claims meeting the definition of reportable excess workers’ compensation claims as defined by the Memorandum of Coverage Conditions Section shall be reported to PRISM within five working days of the day on which it is known the criterion is met. Utilize the Excess Workers’ Compensation First Report Form available through PRISM’s website.
B. Subsequent reports shall be transmitted to PRISM on a quarterly basis on all indemnity claims and on a semi-annual basis on all future medical claims or sooner if claim activity warrants, or at such other intervals as requested by PRISM, in accordance with Underwriting and Claims Administration Standards. Utilize the Excess Workers’ Compensation Status Report Form
16.C
available through PRISM’s website, or a comparable form to be approved by PRISM.
C. Reimbursement requests shall be submitted in accordance with PRISM’s reporting and reimbursement procedures on a quarterly or semi-annual basis depending on claims payment activity. Utilize the Excess Workers’ Compensation Claim Reporting and Reimbursement Procedures available through PRISM’s website.
D. A closing report with a copy of any settlement documents not previously sent shall be sent to PRISM.
Following is the history of amendments to this document:
Amended: March 4, 1988
Amended: October 7, 1988
Amended: October 6, 1995
Amended: October 1, 1999
Amended: June 6, 2003
Amended: March 2, 2007
Amended: July 1, 2009
Amended: July 1, 2011
Amended: March 2, 2012
Amended: October 4, 2013
Amended: July 1, 2019
16.C
Adopted: June 4, 1999
Amended: October 1, 2004
Amended: June 19, 2008
MEMORANDUM OF UNDERSTANDING
PROPERTY PROGRAM
This Memorandum of Understanding is entered into by and between the Public Risk Innovation, Solutions, and Management (hereinafter referred to as "PRISM") and the participating members who are signatories to this Memorandum.
1. Joint Powers Agreement. Except as is otherwise provided herein, all terms used herein shall be as defined in Article 1 of the Joint Powers Agreement Creating the Public Risk Innovation, Solutions, and Management (hereinafter referred to as "Agreement"), and all other provisions of the Agreement not in conflict with this Memorandum shall also be applicable.
2. Program Committee. There is hereby established a Property Program Committee (hereinafter referred to as "Property Committee" or “Committee”) and, except as otherwise provided herein, said Committee shall have full authority to determine all matters affecting the members including, but not limited to, approval of new members and premium/rate setting and establishment of policies regarding data submission and provisions for notice of withdrawal, as long as such policies are not in conflict with the Joint Powers Agreement.
The Property Committee shall consist of eleven (11) voting members and two (2) alternates. The Executive Committee of PRISM shall appoint the Committee members, to be selected from members in the Program as follows: Seven (7) of the Committee members are to be appointed from the members who make up the top fourteen (14) members according to the amount of annual property premium paid (“Large Members”).
Two (2) of the Committee members are to be appointed from those remaining members not within the top fourteen (14) members (“Smaller Members”). One (1) of the members may be appointed from any member (“At Large”). The remaining seat shall be designated for a Public Entity member. If there are no Public Entity nominees or not enough members available from a category (Large, Smaller, At Large), the Executive Committee shall make the appointment from members participating in the Program without regard to category.
The two (2) alternates may be appointed from any member.
The terms of the members of the Committee shall be for two (2) years, except for the Public Entity representative and the alternate representatives whose terms shall be for one (1) year. The expiration dates of the two-year appointments shall be staggered so that terms of no more than five (5) members will expire at any one time. The Committee will annually, at its first meeting of the calendar year, select its officers, consisting of a Chair and Vice Chair.
The Committee, when necessary to fulfill the purposes of this Memorandum, shall meet on the call of the Chair of the Committee as provided in Article 12 of the Agreement and Article VI of the Bylaws of PRISM (hereinafter referred to as the “Bylaws”).
16.C
Adopted: June 4, 1999
Amended: October 1, 2004
Amended: June 19, 2008
A majority of the members of the Committee shall constitute a quorum for the transaction of business. Except as otherwise provided herein, all actions of the Property Committee shall require the affirmative vote of a majority of the members of the Committee. Any meeting of the Committee shall be subject to the applicable provisions of Government Code § 54950 et seq., commonly known as the “Brown Act.”
3. Premiums. The participating members, in accordance with the provisions of Article 14 of the Agreement, shall be assessed an annual premium for the purpose of funding the Property Program. Annual premium contributions, including administrative costs associated with the Program shall be established by the Property Committee.
4. Cost Allocation. Each member’s share of annual premium shall be determined by the Property Committee; however, the Committee may delegate any or all of this authority as it deems appropriate.
5. Application to the Program. All applications to join the Property Program will be evaluated and subject to approval by the Committee and the underwriter. Any entity, which makes application to become a participating member of the Program, who is not already a participating member in PRISM must also be approved in accordance with the provisions of Article 19 of the Agreement.
New members may be added to the Program during the term of the coverage year on a pro-rata basis.
6. Withdrawal and/or Cancellation From the Program. Withdrawal of a member from the Program shall be in accordance with the withdrawal provisions of Article 20 or 21 of the Agreement.
7. Late Payments. All provisions for payments shall be in accordance with the Invoicing and Payment Policy adopted by the Board of Directors. Notwithstanding any other provision to the contrary regarding late payment of invoices or cancellation from a Program, at the discretion of the Executive Committee, any member that fails to pay an invoice when due may be given a ten (10) day written notice of cancellation.
8. Resolution of Disputes. Any question or dispute with respect to the rights and obligations of the parties to this Memorandum shall be determined in accordance with Article 31 of the Agreement, Dispute Resolution.
9. Amendment. This Memorandum may be amended by a majority vote of the Property Committee, upon ninety (90) days advance written notice to the members and county counsels. Each member shall approve of any amendment by signature on the Memorandum by a member’s representative who shall have authority to execute this Memorandum. Should a member of the Program fail to execute any amendment to this Memorandum within the time provided by the Committee, the member will be deemed to have withdrawn from the Program on the next annual renewal date.
16.C
Adopted: June 4, 1999
Amended: October 1, 2004
Amended: June 19, 2008
6/19/2008
10. Complete Agreement. Except as otherwise provided herein, this Memorandum constitutes the full and complete agreement of the members.
11. Severability. Should any provision of this Memorandum be judicially determined to be void or unenforceable, such determination shall not affect any remaining provision.
12. Effective Date of Agreement. This Memorandum shall become effective on the date of coverage for the member or upon approval by the Property Committee of any amendment, whichever is later.
13. Execution in Counterparts. This Memorandum may be executed in several counterparts, each of which shall be an original, all of which shall constitute but one and the same instrument.
IN WITNESS WHEREOF, the undersigned have executed this Memorandum as of the date set forth below.
Dated Public Risk Innovation, Solutions, and Management
Dated Member Entity: x
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
PROPERTY PROGRAM PROPOSAL
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
ENTITY NAME City of Hemet
COVERAGE TERM July 1, 2024 to March 31, 2025
COMPANY(IES) AFFORDING
COVERAGE
Public Risk Innovation, Solutions, and Management (PRISM) and excess insurance provided by attached Schedule of Insurers TOTAL INSURED VALUES $112,287,881
EARTHQUAKE VALUES $0 – Earthquake Coverage Not Included COVERAGE PROVIDED All Risk including Flood on:
• Real Property
• Personal Property
• Boiler and Machinery
• Rental Income including Revenue Bond Payments
• Business Interruption
• Accounts Receivable
• Electronic Data Processing Media and Extra Expense
• Extra Expense
• Building Laws, Increased Cost of Construction and Demolition, Contingent Liability due to operation of Building Codes • Property in Transit
• Valuable Papers and Records
• Fine Arts
• Errors and Omissions
• Architects/Engineers Fees and Claims Consultant Fees
• Course of Construction with values not to exceed $100,000,000 when incidental to an existing location
• $100,000,000 Course of Construction limit with value not to exceed $100,000,000 for projects at new sites. (No Automatic Coverage for projects with a full contract price in excess of $100,000,0000 unless agreed by the underwriters)
• Increased Cost of Construction
• Earthquake Sprinkler Leakage
• Accidental Contamination
• Golf Courses, Tees, Greens & Landscaping
• Specially Trained Animals
• Fire Legal Liability
• Joint Loss Clause
• Fire Department Charges
• Asbestos cleanup and removal caused by an insured peril • Terrorism
And as defined in the PRISM Property Memorandum of Coverage
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
PROPERTY PROGRAM PROPOSAL
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
LIMITS Primary Limits (Defined as First $10M in Coverage) $10,000,000 Per occurrence All Risk coverage for covered parties in Towers I, II, III, IV, V, VI, VII, VIII and IX
$10,000,000 Per occurrence and annual aggregate for Flood coverage for covered parties in Towers I, II, III, IV, V, VI, VII, VIII and IX
$10,000,000 Per occurrence and annual aggregate Earthquake coverage, if purchased, for covered parties in Towers I-VII and Tower IX.
City of Hemet’s schedule of locations would be in Tower VIII.
Limits (including Excess):
Annual occurrence limits for All Risk and annual aggregate limits on Flood and Earthquake Shock applies as follows:
Tower All Risk *Flood Earthquake Shock
I $300,000,000 $200,000,000 $100,000,000
II $300,000,000 $200,000,000 $100,000,000
III $300,000,000 $200,000,000 $100,000,000
IV $300,000,000 $200,000,000 $100,000,000
V $300,000,000 $200,000,000 $100,000,000
VI $300,000,000 $200,000,000 $100,000,000
VII $300,000,000 $200,000,000 $ 25,000,000
VIII $300,000,000 $200,000,000 $0
IX $500,000,000 $1200,000,0 $100,000,000
$300,000,000 All Risk per occurrence combined for all members within each Tower, $500,000,000 for Tower IX
$200,000,000 Flood per occurrence and annual aggregate combined for all members within Towers I - VIII for locations in Flood Zone A/V, $25,000,000 for Tower IX for Flood Zones A/V
$225,000,000 Flood per occurrence and annual aggregate combined for all members within Towers I - VIII for locations outside Flood Zones A/V, $100,000,000 for Tower IX for Flood Zones outside of A/V Excess All Risk Only Rooftop Limit
$300,000,000 per occurrence and annual aggregate for Towers I-VIII combined, excess of $300,000,000 per occurrence as respects Towers I, II, III, IV, V and VI separately
$400,000,000 excess of $600,000,000 All Risk only for San Bernardino County Arrowhead Regional Medical Center
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
PROPERTY PROGRAM PROPOSAL
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
LIMITS
Continued
Excess Earthquake Rooftop Layer (for members that purchase EQ) $365,000,000 per occurrence and in the annual aggregate for Towers I, II, III, IV, V and VI combined, excess of $100,000,000 per occurrence and in the annual aggregate as respects Towers I, II, III, IV, V, and VI separately.
SUBLIMITS $750,000,000 Standalone Terrorism per occurrence and annual aggregate for Towers I-IX combined
The following is understood to apply per occurrence and per Tower unless otherwise stated.
$100,000,000 Course of Construction (project value not to exceed $100,000,000 for any project at new sites)
$ 50,000,000 Accounts Receivable
$ 50,000,000 EDP Media & Extra Expense
$ 50,000,000 Errors and Omissions
$ 50,000,000 Extra Expense
$ 50,000,000 Property in Transit
$ 50,000,000 Valuable Papers
$ 50,000,000 Increased Cost of Construction
$ 20,000,000 Asbestos clean-up & removal caused by a specified insured peril as defined in the PRSIM Property
Memorandum of Coverage
$ 5,000,000 or 25% of the building value or cost to upgrade to LEED certification whichever is less to green standards
$ 3,000,000 Unscheduled tunnels, bridges, dams, catwalks (except those not for public use), roadways, highways, streets, sidewalks, culverts, channels, levees, dikes, berms
embankments (including any engineered land),
streetlights, traffic signals, meters, road way or highway fencing (including guardrails), landfills and all similar property. (All Risk and Flood, excluding the peril of
Earthquake) each occurrence subject to a $500,000
deductible.
Landfills include underground liners, installed liners, or liners while being installed; installed geotextile mats or geotextile mats while being installed; installed collection pipes or collection pipes while being installed; any
material or substance that make up the landfill;
embankments; filters; or material deposited or disposed thereon. Landfill do not include the following located at a landfill site:
1. Buildings
2. Machinery and equipment
3. Stock and supplies
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
PROPERTY PROGRAM PROPOSAL
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
SUBLIMITS
Continued
4. Contractor’s equipment
5. Vehicles
$ 2,500,000 Unscheduled Fine Arts (scheduled Fine Arts limit to be negotiated on an individual basis)
$ 2,500,000 Money and Securities for Named Perils only
$ 1,000,000 Accidental Contamination each occurrence including land and land values
$ 1,000,000 Specially Trained Animals (Search & Rescue & Police etc.) subject to a stipulated value of $50,000 per animal each occurrence subject to a $1,000 deductible each
occurrence
$ 1,000,000 Unscheduled Business Interruption
$ 500,000 Unscheduled Contingent Business Interruption
$ 100,000 Unmanned Aircraft (Drone) per occurrence while in Storage and in Transit subject to $10,000 deductible as more fully defined in the MOC. Not covered while in flight. 125% of the values on file for scheduled landfills
BOILER & MACHINERY
SUBLIMITS
$100,000,000 Per Accident Boiler & Machinery (Participating Members only)
$ 5,000,000 Errors and Omissions
$ 2,000,000 Each Incident, each member aggregate. Earthquake Resultant Damage – applies only to locations where
Earthquake Shock is purchased under All Risk Property
Policy
$ 2,000,000 Service Interruption
$ 2,000,000 Consequential Damage (spoilage of food, medicine, and blood)
$ 2,000,000 Ammonia Contamination
$ 2,000,000 Hazardous Substances
$ 2,000,000 Water Damage
$ 2,000,000 Media
$ 1,000,000 Computer Equipment - Blanket All Members
Newly Acquired Locations included up to 365 days
MAJOR EXCLUSIONS
(Including but not limited to)
• Cyber Exclusion (Cyber Exclusion for Lloyd’s of London capacity has been replaced with mandatory exclusion, LMA 5400 which applies to all overseas capacity)
• Power Transmission and Feeder Lines more than 1000 feet from insured premises
• Aircraft, Watercraft and Rolling Stock (except Light Rail Vehicles unless declared)
• Land and Water
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
PROPERTY PROGRAM PROPOSAL
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
MAJOR EXCLUSIONS
(Including but not limited to)
Continued
• Pollution, Contamination or Seepage (except Accidental Contamination) per form
• Ocean Marine Transit
• Standing Timber, Growing Crops and Animals (except specific police, search & rescue type)
• Shipment by mail after delivery into the custody of the Post Office Department
• Railroad Property except whilst in course of construction, Dams, Piers, Wharves, Docks, Underground Pipes, Outfalls, etc., unless scheduled
• Contractors Equipment, unless scheduled
• Licensed Vehicles, unless scheduled
• $3,000,000 sublimit for Unscheduled Tunnels, Bridges, Dams, Catwalks, Roadways, Highways, Streets, Sidewalks, Culverts, Street Lights, and traffic Signals (All Risk and Flood, excluding the peril of Earthquake) See Sublimit Details.
• Error in Design, Faulty Workmanship and Faulty Materials (except for resulting damage)
• Communicable Disease
OPTIONAL COVERAGES A) EARTHQUAKE, AT SCHEDULED LOCATIONS ONLY • At scheduled locations on file with PRISM only
B) CONTRACTORS (MOBILE) EQUIPMENT
• Summary of Equipment schedule required by type and overall value • Including Earthquake, Flood and Collision
• Actual Cash Value or Replacement Cost Valuation at Covered party option (based on value declared)
C) LICENSED VEHICLES
• Summary of Vehicles schedule required by type and overall value • Including Earthquake, Flood and Collision
• Actual Cash Value or Replacement Cost Valuation at Covered party option (based on value declared)
D) FINE ARTS
• Unscheduled automatically covered to $2,500,000 per occurrence • Per schedule over $2,500,000
DEDUCTIBLES All Risk
$ 25,000 per occurrence
Boiler and Machinery Breakdown
$ 25,000 per occurrence
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
PROPERTY PROGRAM PROPOSAL
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
DEDUCTIBLES
Continued
Earthquake Shock (for members that purchase EQ)
5%* of total values per unit** per occurrence subject to a minimum of $100,000 and separate $50,000,000 maximum for Tower VI less the PRISM Buy-Down credit as described below
PRISM Deductible Buy Down Credit (for members that purchase EQ) For all Earthquake events occurring in a single policy year in Towers I-VII, PRISM is responsible for a maximum credit of 3% of total values per unit, per occurrence, per covered party subject to a maximum of $30,000,000 per occurrence and annual aggregate for all covered parties excess of a member deductible of 2% of total values per unit per occurrence per covered party.
It is further understood and agreed that if the $30,000,000 annual aggregate PRISM Deductible Buy-Down credit is exceeded by an accumulation of loss(es) from one or more events in a single policy year, the payments to individual covered parties will be made on a proportional basis. The proportion shall be the ratio of the total $30,000,000 maximum credit available to all covered parties in a single year divided by the total amount payable has no $30,000,000 maximum credit been imposed.
Flood
For properties located outside Flood Zones A and V:
$25,000 per covered party or the member’s All Risk deductible, whichever is greater, except $100,000 for Pima County.
For properties located within flood Zones A and V:
$100,000 per covered party or the member’s All Risk deductible, whichever is greater, except $500,000 for Pima County.
Named Storm
2% of total values per unit** per occurrence subject to a $500,000 minimum Piers/wharfs and any connected structures or property (including Flood/Wavewash
$ 500,000 per occurrence
Hail
1% per unit for Pima County
Vehicles and Mobile Equipment:
Non-Collision/Collision:
If the member elects Actual Cash Value (ACV) or Replacement Cost Value (RCV) coverage, then the applicable deductible will be $15,000 per occurrence except $100,000 per occurrence for any vehicle with RCV greater than $250,000
Buses
$ 100,000 per occurrence
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
PROPERTY PROGRAM PROPOSAL
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
DEDUCTIBLES
Continued
All Other Perils and Coverages
Please reference the Schedule of Deductibles for individual covered party deductibles
** Unit defined as separate building, contents within separate building, property in the open (yard), or time element coverage at separate building
NEW LOCATIONS Non-Earthquake Locations
It is understood and agreed that the Memorandum of Coverage is automatically extended to cover additional property and interests including new covered parties, which may be acquired or otherwise become at the risk of the covered party during the Memorandum period, within the Territorial
Limits, where the values for such additional property and/or interest including new covered parties do not exceed $100,000,000 (for 100%) per acquisition. Nil additional premium shall be charged in respect of such additional property and PRISM shall be advised of such addition by quarterly reporting.
In the event that the values of such additional property and/or interest including new covered parties exceed $100,000,000 (for 100%) per acquisition, details of such additional property and/or interests are to advised to PRISM prior to effective date and will be added at rates to be agreed by PRISM.
Except for new and existing covered parties of a Joint Powers Authority, additions and deletions of Real and Personal Property and associated Business Interruption/ Extra Expense shall not be subject to any reporting to PRISM where the total insured values do not exceed $10,000,000 per acquisition subject to a $100,000,000 in the annual aggregate all acquisitions combined.
Earthquake Locations
It is understood and agreed that this Memorandum is automatically extended to cover additional property and interests including new covered parties, which may be acquired or otherwise become at the risk of the covered party during the Memorandum period, within the Territorial Limits, where the values for such additional property and/or interest including new covered parties do not exceed $25,000,000 (for 100%) per acquisition. Nil additional premium shall be charged in respect of such additional property and PRISM shall be advised of such additions by quarterly reporting (Applies to Towers I, II, III, IV, V and VI only).
Optional Coverages
In the event that a covered party who does not purchase coverage for vehicles and/or contractors equipment and/or scheduled Fine Arts at the inception/anniversary of this Memorandum subsequently purchases same an additional premium will be due to PRISM.
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
PROPERTY PROGRAM PROPOSAL
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
NOT TO EXCEED ANNUAL
PREMIUM (subject to market
approval of rate and binding values)
$ 215,000
BROKER ALLIANT INSURANCE SERVICES, INC.
Ralph Hurst, President
Thomas Bryson, Senior Vice President
Allison Spaulding, Vice President
Robert Lowe, Senior Vice President
Sara Carlisle, Account Executive
DATE June 11, 2024
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
PROPERTY PROGRAM PROPOSAL
NOTE: THIS INDICATION IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 1301 Dove Street Suite 200 Newport Beach, CA 92660 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
This indication is provided as a matter of convenience and information only. All information included in this indication, including but not limited to personal and real property values, locations, operations, products, data, automobile schedules, financial data and loss experience, is based on facts and representations supplied to Alliant Insurance Services, Inc. by you. This indication does not reflect any independent study or investigation by Alliant Insurance Services, Inc. or its agents and employees.
Please be advised that this indication is also expressly conditioned on there being no material change in the risk between the date of this indication and the inception date of the proposed policy (including the occurrence of any claim or notice of circumstances that may give rise to a claim under any policy which the policy being proposed is a renewal or replacement). In the event of such change of risk, the insurer may, at its sole discretion, modify, or withdraw this indication whether or not this offer has already been accepted.
This indication is not confirmation of insurance and does not add to, extend, amend, change, or alter any coverage in any actual policy of insurance you may have. All existing policy terms, conditions, exclusions, and limitations apply. For specific information regarding your insurance coverage, please refer to the policy itself. Alliant Insurance Services, Inc. will not be liable for any claims arising from or related to information included in or omitted from this indication of insurance
Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our website at www.alliant.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also contact us at: Alliant Insurance Services, Inc., Attention: General Counsel, 701 B Street, 6th Floor, San Diego, CA 92101.
Analyzing insurers' over-all performance and financial strength is a task that requires specialized skills and in-depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Alliant Insurance typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor's have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings.
A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies. You can visit them at www.ambest.com. For additional information regarding insurer financial strength ratings visit Standard and Poor's website at www.standardandpoors.com.
Our goal is to procure insurance for you with underwriters possessing the financial strength to perform. Alliant does not, however, guarantee the solvency of any underwriters with which insurance or reinsurance is placed and maintains no responsibility for any loss or damage arising from the financial failure or insolvency of any insurer. We encourage you to review the publicly available information collected to enable you to make an informed decision to accept or reject a particular underwriter. To learn more about companies doing business in your state, visit the Department of Insurance website for that state.
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
ENTITY NAME City of Hemet
POLICY TERM July 1, 2024 to July 1, 2025
COMPANY(IES) AFFORDING
COVERAGE
1. Beazley – (Lloyd’s of London Syndicate AFB 2623/623)
2. Axis – (Lloyd’s of London Syndicate 1686)
3. Ironshore – (Liberty Surplus Insurance Corporation)
4. Tokio Marine – (Houston Casualty Company)
5. Safety National – Safety Specialty Insurance Company
6. Zurich Insurance Company Ltd and IQUW (A Lloyd’s of London Syndicate 1856) – 50/50 Quota Share
7. AXA XL – Indian Harbor Insurance Company
8. Munich Re Lloyd’s Cyber Consortium 7729
a. Munich Re Syndicate 457 – 74%
b. Nephila Syndicate 2358 – 16.5%
c. Ren Re Syndicate 1458 – 9.5%
A.M. BEST’S GUIDE RATING 1. A (Excellent); Financial Size Category XV ($2 Billion or greater) as of February 9, 2024
2. A (Excellent); Financial Size Category XV ($2 Billion or greater) as of April 15, 2024
3. A (Excellent); Financial Size Category XV ($2 Billion or greater) as of April 15, 2024
4. A++ (Superior); Financial Size Category XV ($2 Billion or greater) as of April 15, 2024
5. A++ (Superior) Financial Size Category XV ($2 Billion or greater) as of April 15, 2024
6. A+ (Superior); Financial Size Category XV ($2 Billion or greater) and A (Excellent); Financial Size Category XV ($2 Billion or greater) – 50/50 quota share as of April 15, 2024
7. A+ (Superior); Financial Size Category XV ($2 Billion or greater) as of April 15, 2024
8. A (Excellent); Financial Size Category XV ($2 Billion or greater) as April 15, 2024
STANDARD & POOR’S RATING 1. AA- (Stable) as of February 9, 2024
2. AA- (Stable) as of April 15, 2024
3. A (Stable) as of April 15, 2024
4. A+ (Stable) as of April 15, 2024
5. AA- (Stable) as of April 15, 2024
6. AA (Stable) and AA- (Stable) – 50/50 quota share as of April 15, 2024
7. AA- (Stable) as of April 15, 2024
8. AA- (Stable) as of April 15, 2024
CALIFORNIA STATUS Non-admitted (All carriers)
CHOICE OF LAW California (All carriers)
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
ARBITRATION JURISDICTION
STATE
N/A (All carriers)
DISPUTE RESOLUTION Insurance Policy so disputes will be resolved in the court system (All carriers)
RETROACTIVE
& CONTINUITY DATE
7/1/2024
COVERAGE PROVIDED CLAIMS MADE AND REPORTED POLICY
Breach Response Costs
First Party Loss
Business Interruption Loss Resulting from a Security Breach Business Interruption Loss Resulting from a System Failure Dependent Business Interruption Loss Resulting from a Security Breach Dependent Business Interruption Loss Resulting from a System Failure Cyber Extortion Loss
Data Recovery Costs
Liability
Data & Network Liability
Regulatory Defense & Penalties
Payment Card Liabilities & Costs
Media Liability (Electronic Medial Only)
eCrime
Fraudulent Instruction
Funds Transfer Fraud
Telephone Fraud
Criminal Reward
Reputation Costs
Computer Hardware Replacement Costs
Invoice Manipulation
Cryptojacking
PRIMARY LAYER LIMIT(S) 1. Beazley
$ 2,000,000 Per Member Aggregate Limit of Liability (Aggregate for all coverages combined, including Claim Expenses) with sublimits below. $25,000,000 Policy Aggregate Limit of Liability for all Members/Insureds combined (Aggregate for all coverages combined, including Claim Expenses) with sublimits below.
$ 500,000 Breach Response Costs
Limit increases to $1,000,000 for each Member/Insured with Total Insured Value (TIV) below $750,000,000 or $1,250,000 for each Member/Insured with Total Insured Value (TIV) greater than $750,000,000 at the time of inception, if the Member/Insured agrees to utilize services entirely from Beazley Nominated Service Providers
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
PRIMARY LAYER LIMIT(S)
Continued
First Party Loss
Business Interruption Loss:
$ 750,000 Resulting from Security Breach
$ 500,000 Resulting from System Failure
Dependent Business Interruption Loss:
$ 750,000 Resulting from Dependent Security Breach
$ 100,000 Resulting from Dependent System Failure
As respects to Business Interruption Loss and Dependent Business Interruption Loss:
$750,000 Resulting from Security Breach sublimit includes the following:
Business Interruption Loss:
$500,000 Resulting from System Failure
Dependent Business Interruption Loss:
$750,000 Resulting from Dependent Security Breach
$100,000 Resulting from Dependent System Failure
Which means the $500,000 Business Interruption Loss Resulting from a System Failure, the $750,000 Dependent Business Interruption Loss Resulting from a Dependent Security Breach, and the $100,000 Dependent Business Interruption Resulting from a Dependent System Failure are within the Business Interruption Resulting from a Security Breach $750,000 sublimit.
$ 750,000 Cyber Extortion Loss
$ 750,000 Data Recovery Costs
Liability
$ 2,000,000 Data & Network Liability
$ 2,000,000 Regulatory Defense & Penalties
$ 2,000,000 Payment Card Industry Fines & Penalties
$ 2,000,000 Media Liability (Electronic Media Only)
eCrime
$ 75,000 Fraudulent Instruction
$ 75,000 Funds Transfer Fraud
$ 75,000 Telephone Fraud
Criminal Reward
$ 25,000 Criminal Reward
Other Sublimits:
$ 200,000 Reputation Loss Endorsement
$ 200,000 Computer Hardware Replacement Costs Endorsement $ 100,000 Invoice Manipulation Endorsement
$ 50,000 Cryptojacking Endorsement
SELF-INSURED
RETENTION
$ 50,000 Per Claim for each Member/Insured with (Total Insured Value (TIV) less than and equal to $250,000,000 at the time of policy inception) Eight hour waiting period threshold for first party claims
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
EXCESS LAYER LIMIT(S) 2. Axis
All limits, sublimits, terms changes/enhancements provided by Beazley are recognized and followed by Axis except for the Business Interruption, Cyber Extortion Loss, and Data Recovery Costs sublimits and Beazley Breach Response Costs optional coverage below, all subject to Drop Down provisions within the Policies.
$ 3,000,000 Per Member Aggregate Limit of Liability (Aggregate for all Coverages combined, including Claims Expenses)
$15,000,000 Policy Aggregate Limit of Liability for all Members/Insureds combined (Aggregate for all Coverages combined, including Claim Expenses)
Business Interruption Loss:
$ 1,000,000 Resulting from Security Breach
$ 1,000,000 Resulting from System Failure
Dependent Business Interruption Loss:
$ 750,000 Resulting from Dependent Security Breach
$ 100,000 Resulting from Dependent System Failure
As respects to Business Interruption Loss and Dependent Business Interruption Loss:
1,000,000 Resulting from Security Breach sublimit includes the following:
Business Interruption Loss:
$ 1,000,000 Resulting from System Failure
Dependent Business Interruption Loss:
$ 750,000 Resulting from Dependent Security Breach
$ 100,000 Resulting from Dependent System Failure
Which means the $1,000,000 Business Interruption Loss Resulting from a System Failure, the $750,000 Dependent Business Interruption Loss Resulting from a Dependent Security Breach, and the $100,000 Dependent Business Interruption Loss Resulting from Dependent System Failure is within the Business Interruption Resulting from a Security Breach $1,000,000 sublimit. The $100,000 Dependent Business Interruption Loss Resulting from Dependent System Failure is also within the $750,000 Dependent Business Interruption Loss Resulting from a Dependent Security Breach sublimit.
$ 1,000,000 Cyber Extortion Loss
$ 1,000,000 Data Recovery Costs
EXCESS LAYER LIMIT(S) 3. Excess Layer: Ironshore (Liberty) All limits, sublimits, terms changes/enhancements provided by Beazley and Axis are recognized and followed by Ironshore/Liberty, except for the Beazley Breach Response Costs optional coverage below, all subject to Drop Down provisions within the Policies.
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
EXCESS LAYER LIMIT(S)
Continued
$ 3,000,000 Per Member Aggregate Limit of Liability (Aggregate for all Coverages combined, including Claim Expenses)
$15,000,000 Policy Aggregate Limit of Liability for all Members/Insureds combined (Aggregate for all Coverages combined, including Claim Expenses)
EXCESS LAYER LIMIT(S) 4. Tokio Marine (Houston)
All limits, sublimits, terms changes/enhancements provided by Beazley, Axis, and Ironshore/Liberty are recognized and followed by Tokio Marine, except for the Beazley Breach Response Costs optional coverage below, all subject to Drop Down provisions within the Policies.
$ 2,000,000 Per Member Aggregate Limit of Liability (Aggregate for all Coverages combined, including Claim Expenses)
$15,000,000 Policy Aggregate Limit of Liability for all Members/Insureds combined (Aggregate for all Coverages combined, including Claim Expenses)
EXCESS LAYER LIMIT(S) 5. Safety National (New carrier to this layer) All limits, sublimits and terms changes/enhancements provided by Beazley, Axis, Ironshore/Liberty, and Tokio Marine, are recognized and followed by Safety National, except for the Beazley Breach Response Costs optional coverage below, all subject to Drop Down provisions within the Policies. $ 2,000,000 Per Member Aggregate Limit of Liability (Aggregate for all Coverages combined, including Claim Expenses)
$15,000,000 Policy Aggregate Limit of Liability for all Members combined (Aggregate for all Coverages combined including Claim Expenses) EXCESS LAYER LIMIT(S) 6. Zurich/IQUW – 50/50 quota share All limits, sublimits and terms changes/enhancements provided by Beazley, Axis, Ironshore/Liberty, Tokio Marine, and Safety National are recognized and followed by Zurich/IQUW except for the Beazley Breach Response Costs optional coverage below, all subject to Drop Down provisions within the Policies. $ 2,000,000 Per Member Aggregate Limit of Liability (Aggregate for all Coverages combined, including Claim Expenses)
$10,000,000 Policy Aggregate Limit of Liability for all Members combined (Aggregate for all Coverages combined including Claim Expenses) EXCESS LAYER LIMIT(S) 7. AXA XL (New carrier to this layer) All limits, sublimits and terms changes/enhancements provided by Beazley, Axis, Ironshore/Liberty, Tokio Marine, Safety National, and Zurich/IQUW, are recognized and followed by AXA XL, except for the Beazley Breach Response Costs optional coverage below, all subject to Drop Down provisions within the Policies. $ 2,000,000 Per Member Aggregate Limit of Liability (Aggregate for all Coverages combined, including Claim Expenses)
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
EXCESS LAYER LIMIT(S)
Continued
$10,000,000 Policy Aggregate Limit of Liability for all Members combined (Aggregate for all Coverages combined including Claim
Expenses)
EXCESS LAYER LIMIT(S) 8. Munich Re
All limits, sublimits and terms changes/enhancements provided by Beazley, Axis, Ironshore (Liberty), Tokio Marine, Safety National, Zurich/IQUW, and AXA XL are recognized and followed by Munich Re, except for the Beazley Breach Response Costs optional coverage below, all subject to Drop Down provisions within the Policies.
$ 2,000,000 Per Member Aggregate Limit of Liability (Aggregate for all Coverages combined, including Claim Expenses)
$10,000,000 Policy Aggregate Limit of Liability for all Members/Insureds combined (Aggregate for all Coverages combined, including Claim Expenses)
SUMMARY Limits, Sublimits, and Annual Premium for all layers combined (Beazley, Axis, Ironshore/Liberty, Tokio Marine, Safety National, Zurich/IQUW, AXA XL, and Munich Re) as follows, all subject to Drop Down provisions within the Policies. All limits/sublimits shown below are within the Per Member Aggregate Limit of Liability and not in addition to.
$ 18,000,000 Per Member Aggregate Limit of Liability (Aggregate for all Coverages combined, including Claim Expenses)
$115,000,000 Policy Aggregate Limit of Liability for all Members combined (Aggregate for all Coverages combined, including Claim Expenses) $ 18,000,000 Data & Network Liability
$ 18,000,000 Regulatory Defense & Penalties
$ 18,000,000 Payment Card Liability & Costs
$ 18,000,000 Media Liability
$ 4,000,000 Breach Response Costs Non-Beazley Vendors
$ 8,000,000 Breach Response Costs - Insureds with TIV less than $750,000,000 who utilize Beazley Vendors
$ 10,000,000 Breach Response Costs - Insureds with TIV greater than $750,000,000 who utilize Beazley Vendors
$ 7,750,000 Business Interruption from Security Breach
$ 7,500,000 Business Interruption from System Failure
$ 6,000,000 Dependent Business Interruption from Security Breach $ 800,000 Dependent Business Interruption from System Failure $ 7,750,000 Cyber Extortion
$ 7,750,000 Data Recovery Costs
$ 600,000 Fraudulent Instruction
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
SUMMARY
Continued
$ 600,000 Funds Transfer Fraud
$ 600,000 Telephone Fraud
$ 200,000 Criminal Reward
$ 1,600,000 Reputation Loss
$ 1,600,000 Computer Hardware Replacement
$ 400,000 Cryptojacking
$ 800,000 Invoice Manipulation
MAJOR EXCLUSIONS
(Including but not limited to)
Bodily Injury or Property Damage
Trade Practices and Antitrust
Gathering or Distribution of Information
Prior Known Acts & Prior Noticed Claims
Racketeering, Benefit Plans, Employee Liability & Discrimination Sale or Ownership of Securities & Violation of Securities Laws Criminal, Intentional or Fraudulent Acts
Patent, Software Copyright, Misappropriation of Information Other Insureds & Related Enterprises
Trading Losses, Loss of Money & Discounts
Media Related Exposures
First Party Loss
The contractual liability exclusion is now only in relation to the Media Liability section
Sanctions Limitation and Exclusion
War and Cyber War Exclusion with Single Entity Carve Back Asbestos, Pollution and Contamination Exclusion
Misappropriation of trade secrets - less restrictive under the new policy as it is tied only to a control group, meaning Directors of the Insured First Party Loss:
Seizure, nationalization, confiscation, or destruction of property or data by official order of any governmental or public authority; Costs or expenses incurred by the Insured to identify or remediate software program errors or vulnerabilities or update, replace, restore, assemble, reproduce, recollect or enhance data or Computer Systems to a level beyond that which existed prior to a Security Breach, System Failure, Dependent Security Breach, Dependent System Failure or Extortion Threat; but solely with respects to Business Interruption Loss, this exclusion will not apply to the extent that such costs or expenses are less than or equal to such costs or expenses incurred to restore the Computer System to the same or equivalent condition that existed immediately prior to a Security Breach or System Failure;
Failure, interruption, or malfunction of Financial Market Infrastructure, Digital, and Internet Infrastructure, power, water, oil, gas, electrical, sewage, or other utilities, or mechanical infrastructure or services, that are not under Insured Organization’s direct operational control Or Fire, flood, earthquake, volcanic eruption, explosion, lightning, wind, hail, tidal wave, landslide, act of God or other physical event
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
MAJOR EXCLUSIONS
Continued
Website Tracking Exclusion Endorsement – Limited to Hospitals This exclusion applies to hospitals, defined as institutions that comprise all the following: A Health Facility with overall administrative and professional responsibility and an organized medical staff that provides 24-Hour inpatient care, including the following services: Medical, nursing, surgical, anaesthesia, laboratory, pharmacy, and dietary services.
All excess carriers noted above will follow the same Website Tracking Exclusion Endorsement that Beazley has added and was presented to the Executive Committee back on February 29, 2024.
CLAIMS REPORTING Immediate notice must be made to all insurers of all potential claims and circumstances
OPTIONAL COVERAGE 1. Beazley
Beazley Breach Response Costs Option:
Beazley’s Breach Response (BBR) enhancement option continues to be available on a per Member basis to increase notification costs up to 3,000,000 individuals affected by a breach. If a Member elects this option, the limit is based on the number of individuals affected by a breach, and paid per person, rather than a set dollar amount. The enhancement also provides additional limits up to $1,000,000 for Legal, Forensics and Public Relations with lower retentions. These enhancements do not erode the $2,000,000 aggregate limit of liability per Member, nor the $25,000,000 aggregate limit of liability for all Members.
Beazley’s Breach Response endorsement was enhanced effective July 1, 2018 increasing the Member’s Breach Response Costs limit from $500,000 or $1,000,000/$1,250,000 (depending on if Beazley nominated vendor is chosen) to $2,000,000. The Member has the ability to tap into their individual limit to respond to Privacy Breaches should the lives limit and/or legal/forensics/PR limit become exhausted. The Breach Response Costs limit is part of the $2,000,000 aggregate limit per Member and the $25,000,000 aggregate limit for all Members combined.
This endorsement requires the utilization of Beazley nominated vendors. An application needs to be completed in order to provide a BBR quote.
There is a possibility of a declination to quote if the underwriter determines that the member’s cyber security controls are not satisfactory.
Axis, Ironshore/Liberty,Tokio Marine, Safety National, Zurich/IQUW, AXA XL and Munich Re will increase the Breach Response Costs sublimit to full limit for members with the Breach Response Endorsement, this is subject to the Member Aggregate Limit and the Policy Aggregate Limit (However, all carriers will not provide coverage for the following additional limits/coverages that are provided by the Breach Response Costs Endorsement: Number of Lives Limit and Legal Services/Computer Expert Services/Public Relations/Crisis Management Expenses Limit).
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
OPTIONAL COVERAGE
Continued
Beazley Breach Response Costs with New Boost option
The Beazley Breach Response endorsement will include a new additional option (Boost) that increases limits to $2,000,000 for each of the following coverages:
Business Interruption Loss Resulting from Security Breach Business Interruption Loss Resulting from System Failure Cyber Extortion Loss
Data Recovery Costs
Boost coverage availability is contingent upon whether the insured has favorable cyber security controls and is subject to additional underwriting The Boost option is part of the $25,000,000 aggregate limit for all Members combined and the $2,000,000 aggregate limit for each Member. Axis, Ironshore/Liberty, Tokio Marine, Safety National, Zurich/IQUW, AXA XL and Munich Re will increase the Business Interruption Loss Resulting from Security Breach, Business Interruption Loss Resulting from System Failure, Cyber Extortion Loss, and Data Recovery Costs sublimits to full limits for members with the Beazley Breach Response plus Boost endorsement. This is subject to the Member Aggregate Limit and the Policy Aggregate Limit.
Technology Errors and Omissions Option:
Technology Based Services & Technology Products – Optional per member with the requirement of a completed application at additional premium to be determined, this is subject to the Member Aggregate Limit and the Policy Aggregate Limit.
TOTAL INSURED VALUE (TIV) 112,287,881
ANNUAL PREMIUM $24,440
BROKER ALLIANT INSURANCE SERVICES, INC.
Nazie Arshi, Senior Vice President
Rob Lowe, Senior Vice President
Meghan O’Malley, First Vice President
Armando Vieyra, Account Manager
PROPOSAL DATE June 19, 2024
SUBJECTIVITIES Cyber Security Health Check conducted within first year of joining the Program Must join PRISM’s Property and Excess Workers’ Compensation Programs
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
CYBER LIABILITY PROGRAM
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY FORM IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION Alliant Insurance Services, Inc. 18100 Von Karman Avenue 10th Floor Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861
This proposal is provided as a matter of convenience and information only. All information included in this proposal, including but not limited to personal and real property values, locations, operations, products, data, automobile schedules, financial data and loss experience, is based on facts and representations supplied to Alliant Insurance Services, Inc. by you. This proposal does not reflect any independent study or investigation by Alliant Insurance Services, Inc. or its agents and employees.
Please be advised that this proposal is also expressly conditioned on there being no material change in the risk between the date of this proposal and the inception date of the proposed policy (including the occurrence of any claim or notice of circumstances that may give rise to a claim under any policy which the policy being proposed is a renewal or replacement). In the event of such change of risk, the insurer may, at its sole discretion, modify, or withdraw this proposal whether or not this offer has already been accepted.
This proposal is not confirmation of insurance and does not add to, extend, amend, change, or alter any coverage in any actual policy of insurance you may have. All existing policy terms, conditions, exclusions, and limitations apply. For specific information regarding your insurance coverage, please refer to the policy itself. Alliant Insurance Services, Inc. will not be liable for any claims arising from or related to information included in or omitted from this proposal of insurance
Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our website at www.alliant.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also contact us at: Alliant Insurance Services, Inc., Attention: General Counsel, 701 B Street, 6th Floor, San Diego, CA 92101.
Analyzing insurers' over-all performance and financial strength is a task that requires specialized skills and in-depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Alliant Insurance typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor's have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings.
A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies. You can visit them at www.ambest.com. For additional information regarding insurer financial strength ratings visit Standard and Poor's website at www.standardandpoors.com.
Our goal is to procure insurance for you with underwriters possessing the financial strength to perform. Alliant does not, however, guarantee the solvency of any underwriters with which insurance or reinsurance is placed and maintains no responsibility for any loss or damage arising from the financial failure or insolvency of any insurer. We encourage you to review the publicly available information collected to enable you to make an informed decision to accept or reject a particular underwriter. To learn more about companies doing business in your state, visit the Department of Insurance website for that state.
IMPORTANT NOTICE: The Non-Admitted and Reinsurance Reform Act (NRRA) went into effect on July 21, 2011.
Accordingly, surplus lines tax rates and regulations are subject to change which could result in an increase or decrease of the total surplus lines taxes and/or fees owed on this placement. If a change is required, we will promptly notify you. Any additional taxes and/or fees must be promptly remitted to Alliant Insurance Services, Inc.
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
POLLUTION PROGRAM I
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION.
Alliant Insurance Services, Inc. 18100 Von Karman Avenue Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861 Page 1 of 8 ENTITY NAME City of Hemet
COVERAGE TERM July 1, 2024 to July 1, 2025
COMPANY AFFORDING
COVERAGE
Ironshore Specialty Insurance Company
A.M. BEST’S GUIDE RATING A (Excellent); Financial Category XV ($2 Billion or greater) as of February 9, 2024 STANDARD & POOR’S RATING A (Stable) as of February 9, 2024 CALIFORNIA STATUS Non-admitted
CHOICE OF LAW Silent
ARBITRATION JURISDICTION
STATE
N/A
DISPUTE RESOLUTION Insurance Policy so disputes will be resolved in the court system RETROACTIVE DATE July 1, 2024 for the following:
Products Pollution, Mold and Contractors Environmental Legal Liability (CELL) coverage. This retroactive date will reinstate annually to match the effective date of the policy.
July 1, 2001 or when the member joined (whichever is latest) applies for all other coverages, a $500,000 sublimit applies to all claims for pre-existing conditions.
COVERAGE PROVIDED CLAIMS MADE AND REPORTED POLICY
Products Pollution
July 1, 2024 retroactive date applies with a $5,000,000 each incident/$10,000,000 aggregate sublimit. Coverage applies for loss that the Insured becomes legally obligated to pay as a result of Claims for Bodily Injury, Property Damage or Remediation Expense but only if:
i. The Bodily Injury, Property Damage or Remediation Expense arises from Products Pollution;
ii. The Products Pollution commenced on or after the PRODUCTS POLLUTION AND EXPOSURE LIABILITY RETROACTIVE DATE of July 1, 2024, as amended by this endorsement; and
iii. A Claim for such Bodily Injury, Property Damage or Remediation Expense is first made against the Insured and reported to the Company in writing during the Policy Period, or during the Extended Reporting Period if applicable.
PFOS/PFAS
Excluded
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
POLLUTION PROGRAM I
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION.
Alliant Insurance Services, Inc. 18100 Von Karman Avenue Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861 Page 2 of 8
COVERAGE PROVIDED
Continued
Mold
Retroactive date of 7/1/2024 applies. Elevated retention applies. With the exception of any Covered Property whose intended use is healthcare or hospitality, the Company will pay all Loss in excess of $1,000,000. Solely with respect to any Covered Property whose intended use is healthcare or hospitality, the Company will pay all Loss in excess of the greater of: (i) $1,000,000 or the deductible set forth in the Declarations, whichever is greater; or (ii) $100,000 multiplied by the number
of rooms impacted by the same, related, or continuous Pollution Incident. For areas which are not used as
patient, guest or resident rooms, each 250 square feet of floor space of the entire section of the location impacted, as determined in the Company’s reasonable discretion, shall be deemed a room for purposes of
calculating the deductible. A sublimit of $1,000,000 applies only to healthcare and hospitality facilities. Notwithstanding anything within the Policy to the contrary, the most the Company shall pay for all Restoration Costs, Business Interruption Expenses and Extra Expenses at healthcare and hospitality facilities only is shall not exceed $1,000,000, regardless of the number of Pollution Incidents. (the change from expiring is that the sublimit and per room deductible now applies to healthcare and hospitality facilities only).
Sewage Backup
Included. $1,000,000 deductible/$2,000,000 program aggregate sublimit applies.
Sewer Backup means wastewater that enters into a building or basement as a result of a blockage in trunk sewer lines or lateral sewer lines, to the extent connected to trunk sewer lines, owned by the Named Insured.
Overcharge means a condition in which the wastewater or storm water flow rate in trunk sewer lines or lateral sewer lines, to the extent connected to trunk sewer lines, owned by the Named Insured, exceeds 100% of the hydraulic capacity of the sewer lines and is a result of excess precipitation or groundwater entering the sewer lines.
Legionella
$500,000 deductible applies/$1,000,00 per named aggregate sublimit Landfills
Landfills excluded however a giveback to the exclusion applies for Remediation Expenses incurred exclusively for remediation of pollutants that are beyond the boundaries of the Covered Property.
“Any landfill material which is on or under the Covered Property(ies); any waste material which has been intentionally deposited on or under any Covered Property; or any Fill Material deposited on or under a Covered Property. However, this paragraph shall not apply to Remediation Expenses incurred exclusively for remediation of Pollutants that are beyond the boundaries of the Covered Property”.
A time element restriction now applies to pollution conditions discovered beyond the boundaries of a landfill. The incident must be discovered within 7 days and reported within 21 days.
Business Interruption
5 day waiting period
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
POLLUTION PROGRAM I
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION.
Alliant Insurance Services, Inc. 18100 Von Karman Avenue Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861 Page 3 of 8
COVERAGE PROVIDED
Continued
Covered Operations
Included via Contractors Environmental Legal Liability (CELL) coverage. Work covered includes: Land-based pesticide/herbicide spraying, household hazardous waste collection events, weatherization
assistance programs; and
Materials, parts or equipment furnished by the Insured or a subcontractor working on its behalf in connection with such work or operations. Sublimits apply.
A July 1, 2024 retroactive date applies on the renewal. This retroactive date will reinstate annually to match policy inception.
Automatic Acquisition
Any real property newly acquired, owned, leased, managed, rented or occupied by the Insured during the Policy Period (hereinafter “Acquired Real Property”), subject to all of the following conditions:
a. Within one hundred eighty (180) days from the effective date of the Named Insured taking title to or its occupancy of such real property, the Named Insured must give notice of such taking title or occupancy in writing to the Company’s underwriter and provide the underwriter with a properly completed and signed Site Pollution Incident Legal Liability Select Application. The Named Insured thereafter must provide any supporting documentation reasonably requested by the underwriter;
b. If and when the Named Insured timely complies with paragraph 2.a. above, the Company shall within thirty (30) days thereafter either:
i) approve the location and schedule the location by endorsement as a Covered Property;
ii) approve the subject property(s) as a Covered Property with additional specific coverage conditions or exclusions; or iii) inform the Named Insured that the subject real property(s) is(are) not approved and will not be included as a Covered Property(s). If the subject real property(s) is(are) approved, to be scheduled to this Policy as a Covered Property(s), such scheduling shall be subject to an additional premium of $0.00004303 for Program I and $0.00002804 for Program II (per dollar of Total Insurable Values).
This premium shall be pro-rated during the Policy Period subject to a minimum premium of $450. However, there shall be no additional premium for any Covered Property with Total Insurable Values which are less than $25,000,000. Coverage hereunder for any property
added as a Covered Property shall only apply if the additional premium set forth above is paid when due;
c. Coverage under this Policy shall only apply to Loss, Business Interruption Expense or Extra Expense arising out of a Pollution Incident(s) that commences on or subsequent to the earlier of the Named Insured’s taking title or its occupancy of such property. In the event that the Company provides written notice that the property will not be scheduled as a Covered Property, there shall be no coverage for any Pollution Incident or Claim unless written notice of such Pollution Incident or Claim was received by the Company prior to the Company’s issuance of its notification that the property will not be scheduled as a Covered Property; and
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
POLLUTION PROGRAM I
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION.
Alliant Insurance Services, Inc. 18100 Von Karman Avenue Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861 Page 4 of 8
COVERAGE PROVIDED
Continued
d. The material use of the property must conform to the intended use description set forth in the Declarations.
Underground Storage Tanks
UST’s are excluded except exclusion does not apply to any Underground Storage Tank:
1. Which has been closed or abandoned in place in accordance with all applicable Environmental Laws prior to the Inception Date;
2. Removed prior to the Inception Date;
3. Which is in full compliance with 40 CFR Part 280 and any state regulations applicable to Underground Storage Tanks; or
4. Which is in full compliance with federal, provincial or territorial or local technical standards applicable to Underground Storage Tanks.
$500,000 deductible applies for UST’s. A $1,000,000 deductible applies for UST’s that are older than 25 years and that are discovered during a Voluntary Investigation; or that is encountered, disturbed or discovered while an Insured or any other party is performing a Capital Improvement (regardless of whether such Pollution Incident was previously known or unknown by any Insured). Cannot be used for filing financial assurance, coverage is excess of state tank funds/coverage
Airports (small municipal only, large airports excluded) and Dams Sudden and accidental coverage only. The Pollution Incident giving rise to such Loss must be discovered by the Insured within seven (7) days of its commencement and the Pollution Incident is demonstrable as commencing on a specific date; and the Pollution Incident must be reported to the Company in writing no later than twenty-one (21) days following the discovery of such Pollution Incident, and in any event during the Policy Period.
Amended exception/giveback to the airport exclusion for passenger airports with less than 2,500 passenger boardings per year (an exception for the Sacramento airport (PRISM II) so that it is not excluded by the 2,500 passenger provision).
COVERED LOCATIONS Covered Property means any location identified in any Statement of Values or “Vacant and Non Vacant Land Listings ”on file with the Company, as of the Inception Date, including, but not limited to, any subsurface potable water, wastewater or storm water pipelines to or from a Covered Property provided that such pipelines are located within a one thousand (1,000) foot radius of such Covered Property. Covered Property shall also include any location scheduled to this Policy by endorsement.
LIMITS $10,000,000 Per Pollution Condition
$10,000,000 Per Member Aggregate Limit of Liability
$50,000,000 Policy Aggregate Limit of Liability for all Members combined $10,000,000 Policy Aggregate Limit of Liability for Business Interruption for all Members combined
All members of a JPA will share the $10,000,000 per Pollution Condition Limit and $10,000,000 per Member Aggregate Limit of Liability
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
POLLUTION PROGRAM I
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION.
Alliant Insurance Services, Inc. 18100 Von Karman Avenue Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861 Page 5 of 8 DEDUCTIBLE $250,000
5 Days Business Interruption Waiting Period
$500,000 Deductible for UST’s < 25 years of age
$1,000,000 Deductible for UST’s > 25 years of age and those discovered during voluntary site investigation and capital improvements
$1,000,000 Deductible for sewer backup
SUBLIMITS/ELEVATED
DEDUCTIBLES
Fines and penalties $250,000 aggregate limit
Image Restoration $250,000 each incident/program aggregate Disinfection Event Expenses $25,000 each incident/program aggregate Legionella $500,000 deductible and $1,000,000 per name insured aggregate Mold excess of $1,000,000 deductible or 100,000 multiplied by the number of rooms impacted by the same, related or continuous pollution Incident(s) Restoration Costs shall not exceed $1,000,000 each incident aggregate Sewer Backup $1,000,000 deductible and $2,000,000 program aggregate sublimit
Products Pollution - Sublimit of $5,000,000 each incident/$10,000,000 program aggregate applies.
UST’s, $500,000/$1,000,000 depending on age/circumstance, see above for further detail
Wildfire $1,000,000 per incident/$5,000,000 program aggregate $2,000,000 program aggregate sublimit was added and now applies to the giveback to the exclusion for lead claims (the giveback is for bodily injury, property damage and remediation expenses in groundwater and the inadvertent disturbance of lead based paint). Previously no program sublimit applied. Inadvertently Omitted Location $1,000,000 per named insured limit Contractors Environmental Legal Liability (CELL):
$1,000,000 each incident/$2,000,000 program aggregate for Herbicide, Insecticide and Pesticide Applications
$5,000,000 each incident/$10,000,000 program aggregate for All other operations with the exception of above
EXTENDED REPORTING
PERIOD
90 days automatic Extended Reporting Period
Four years Supplemental Extended Reporting Period for no more than 200% of term premium
INSURING AGREEMENT Pay on behalf of the insured for Loss, Remediation Expenses, Emergency Response Expenses, Third Party Claims, Transportation, Waste Disposal Activities, and Business Interruption
DEFENSE COSTS AND
EXPENSES
Defense Costs and Expenses are included in the deductible and within Limits of Liability
MAJOR EXCLUSIONS
(Included but not limited to)
Airports (exception for those with less than 2,500 passengers where S&A coverage only applies)
Asbestos and Lead Based Paint (a giveback to the exclusion applies for bodily injury, property damage and remediation expenses in groundwater and the inadvertent disturbance of lead based paint)
Activity Use Limitation
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
POLLUTION PROGRAM I
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION.
Alliant Insurance Services, Inc. 18100 Von Karman Avenue Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861 Page 6 of 8
MAJOR EXCLUSIONS
Continued
Capital Improvement – Now applies to all locations. Previously applied to auto repair facilities, airports, golf courses, fuel depots and fuel storage facilities only.
Criminal Punishments
Closure, Post Closure and Reclamation Costs
Contractual Liability
COVID – 19
Damage to Your Product
Divested Property
Drinking Water Standards Exceedance
Employer Liability
Engineering Controls/Operation and Maintenance (O&M) Costs Firing Ranges
Groundwater & Surface Water Monitoring Costs
Impoundments
Insured’s Internal Expenses
Insured’s Non-Compliance
Insured vs. Insured
Insured’s Professional Services
Known Injury or Damage
Known Pollution Incident
Landfill Material
Material Change In Potable Water Supply Source
Material Change In Use
Non-Disclosure
Nuclear or Radiological Material – Intentional or Unlawful Release Oil and gas - Any Pollution Incident, in whole or in part, due to or in any way associated with oil and/or gas operations, including but not limited to wells, pipelines and production, storage and refining facilities Odor
PFOS/PFAS excluded
Product as Waste (Giveback applies to biosolid-derived fertilizer that is sold/distributed by a named insured, provided the biosolid-derived fertilizer was processed by a covered property used as a wastewater treatment plant) Products Liability
Prior Claims
Property Damage to Conveyances
Transportation
Underground Storage Tanks
Upgrades
Voluntary Site Investigation – Now applies to all locations. Previously applied to auto repair facilities, airports, golf courses, fuel depots and fuel storage facilities only
War
Workers Compensation, Unemployment, Social Security, Disability and Similar Laws
BBK Landfill
Aircraft, Auto, or Watercraft
Asbestos, Polychlorinated Bipheyls (PCBs), and Lead. Previously applied to lead only
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
POLLUTION PROGRAM I
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION.
Alliant Insurance Services, Inc. 18100 Von Karman Avenue Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861 Page 7 of 8
CLAIMS REPORTING
REQUIREMENTS
All claims must be reported to the carrier as soon as practicable, regardless if under Deductible. This is a claims made policy claims must be reported prior to expiration of the policy.
MINIMUM EARNED PREMIUM 100% earned at inception
CANCELLATION 90 days written notice to First Named Insured 10 days for non-payment of premium
Fraud or misrepresentation
Any “insured’s” failure to comply with the terms, conditions or contractual obligations under this policy including failure to pay the deductible when due Nonpayment of premium when due
ANNUAL PREMIUM $4,076 (Inclusive of taxes and fees)
REAL PROPERTY VALUE 90,063,083
TERRORISM Included
CONDITIONS Must join PRISM’s Property and Excess Workers’ Compensation Programs BROKER ALLIANT INSURANCE SERVICES, INC.
Nazie Arshi, Senior Vice President
Katrina Seese, Assistant Vice President
Rob Lowe, Senior Vice Presdient
Armando Vieyra, Account Manager
PROPOSAL DATE June 19, 2024
16.C
PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT (PRISM)
POLLUTION PROGRAM I
2024/2025 PROPOSAL
NOTE: THIS PROPOSAL IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT AMEND, EXTEND OR ALTER THE POLICY IN ANY WAY. PLEASE REFER TO THE POLICY FORM FOR COMPLETE COVERAGE AND EXCLUSION INFORMATION.
Alliant Insurance Services, Inc. 18100 Von Karman Avenue Irvine, CA 92612 PHONE (949) 756-0271 www.alliant.com License No. 0C36861 Page 8 of 8 This PROPOSAL of insurance is provided as a matter of convenience and information only. All information included in this PROPOSAL, including but not limited to personal and real property values, locations, operations, products, data, automobile schedules, financial data and loss experience, is based on facts and representations supplied to Alliant Insurance Services, Inc. by you. This PROPOSAL does not reflect any independent study or investigation by Alliant Insurance Services, Inc. or its agents and employees.
Please be advised that this PROPOSAL is also expressly conditioned on there being no material change in the risk between the date of this PROPOSAL and the inception date of the proposed policy (including the occurrence of any claim or notice of circumstances that may give rise to a claim under any policy which the policy being proposed is a renewal or replacement). In the event of such change of risk, the insurer may, at its sole discretion, modify, or withdraw this PROPOSAL, whether or not this offer has already been accepted.
This PROPOSAL is not confirmation of insurance and does not add to, extend, amend, change, or alter any coverage in any actual policy of insurance you may have. All existing policy terms, conditions, exclusions, and limitations apply. For specific information regarding your insurance coverage, please refer to the policy itself. Alliant Insurance Services, Inc. will not be liable for any claims arising from or related to information included in or omitted from this PROPOSAL of insurance.
Alliant embraces a policy of transparency with respect to its compensation from insurance transactions. Details on our compensation policy, including the types of income that Alliant may earn on a placement, are available on our website at www.alliant.com. For a copy of our policy or for any inquiries regarding compensation issues pertaining to your account you may also contact us at: Alliant Insurance Services, Inc., Attention: General Counsel, 701 B Street, 6th Floor, San Diego, CA 92101.
Analyzing insurers' over-all performance and financial strength is a task that requires specialized skills and in-depth technical understanding of all aspects of insurance company finances and operations. Insurance brokerages such as Alliant Insurance typically rely upon rating agencies for this type of market analysis. Both A.M. Best and Standard and Poor's have been industry leaders in this area for many decades, utilizing a combination of quantitative and qualitative analysis of the information available in formulating their ratings.
A.M. Best has an extensive database of nearly 6,000 Life/Health, Property Casualty and International companies. You can visit them at www.ambest.com. For additional information regarding insurer financial strength ratings visit Standard and Poor's website at www.standardandpoors.com.
Our goal is to procure insurance for you with underwriters possessing the financial strength to perform. Alliant does not, however, guarantee the solvency of any underwriters with which insurance or reinsurance is placed and maintains no responsibility for any loss or damage arising from the financial failure or insolvency of any insurer. We encourage you to review the publicly available information collected to enable you to make an informed decision to accept or reject a particular underwriter. To learn more about companies doing business in your state, visit the Department of Insurance website for that state.
IMPORTANT NOTICE: The Non-Admitted and Reinsurance Reform Act (NRRA) went into effect on July 21, 2011. Accordingly, surplus lines tax rates and regulations are subject to change which could result in an increase or decrease of the total surplus lines taxes and/or fees owed on this placement. If a change is required, we will promptly notify you. Any additional taxes and/or fees must be promptly remitted to Alliant Insurance Services, Inc.
16.C
City of Hemet
City Council Meeting
STAFF REPORT
Meeting: City Council Meeting - Jun 25 2024
Department: Finance
Submitted by: Mark Prestwich, City Manager
Tiffany Barnett, Acting Administrative Services Director; ☐ Receive and File ☐ Consent Calendar ☒ Business Item ☐ Public Hearing TITLE:
Proposed Fiscal Year 2024-25 Operating Budget
RECOMMENDED ACTION:
It is respectfully recommended that the City Council:
1. Adopt a Resolution of the City Council of the City of Hemet, California, Adopting the Budget and Approving Appropriations For the Fiscal Year Commencing July 1, 2024, and Ending June 30, 2025; and
2. Approve the FY 2024-25 Annual Budget; and
3. Receive and file the Measure U Citizen Oversight Committee's letter of support for the proposed FY 2024-25 Measure U Budget with recommended changes.
BACKGROUND:
To increase transparency and make the budget document more user-friendly, the Budget document was transitioned to a digital format in FY 2022-23. Moving into the FY 2024-25 Budget, the document has been prepared again using this platform. The document can be accessed online through the City's website or directly through the following link: https://city-hemet-ca-budgetbook.cleargov.com/17220 The City's initial FY 2024-25 Budget Workshop was held on May 14, 2024.
ANALYSIS:
Notable Changes
On May 28, 2024, a second Budget Workshop was held to present an overview of the FY 2024-25 Budget along with financial trends of the City. Since this workshop, there have been some additional changes that are important to highlight. The changes are recommended as follows:
16.D
Measure U Citizens Oversight Committee Acknowledgement
16.D
The Members of the Measure U Citizen Oversight Committee met on May 9, 2024, May 30, 2024, June 6, 2024, and June 18, 2024, to discuss the finalized FY 2022-2023 fiscal year financials and the proposed FY2024-25 Measure U Budget.
The Committee has submitted a letter to the City Council to accompany the budget document to offer their insight and provide any recommendations. (Attachment 3) Their letter highlights the following:
"Pursuant to Section 74-145(A)(2) of the Hemet Municipal Code, the Citizen's Oversight Committee on the Hemet Transactions and Use Tax, commonly known as the Measure U Committee (the "Committee"), has met to review and report on the proposed and actual expenditures of the Hemet Transactions and Use Tax. The Committee finds that the proposed and actual expenditures of the Hemet Transactions and Use Tax are consistent with Ordinance No. 1918, Resolution 4703 and Resolution 4731 (collectively "Measure U Documents"), with the following noted exceptions and recommendations:
Recommendation #1: The City's agreement with City Net for Street Outreach and Engagement Services is generally consistent with the Measure U Documents, however, the Committee recommends the City Council appropriate the funds to pay for Emergency Shelter/Bridge Housing, along with the associated administrative fee, meal vouchers, and damage to motel/hotel rooms to the General Fund instead of Measure U.
Recommendation #2: The City Council may properly appropriate up to 2.4 million dollars of additional insurance costs projected to be incurred by the City for Fiscal Year 2024/25 to Measure U Fund Balance as these additional costs are specifically authorized by Resolution 4703 and have a direct nexus to the provision of law enforcement services. This motion was approved at the June 18, 2024 Measure U Citizen Oversight Committee Meeting 3-1, with Committee Member Clark voting no.
Exception #1: The City Council has not budgeted the necessary funds to achieve the mandatory staffing ratio of 1.2 sworn peace officers per 1,000 residents as stated in Section 6 of Resolution 4703."
DISCUSSION:
Proposal of FY 2024-25 Budget
Retail sales are projected to increase by approximately 2.1% from FY 2023-24, along with Measure U sales tax revenues increasing approximately at 1.6% compared to the FY 2023-24 projected ending balance. Additionally, property taxes are projected to grow approximately 3.81% more than in the FY 2023-24 projected ending balance.
General Fund Revenues for FY 2024-25 are projected to be $80,150,000 inclusive of Measure U. Of this amount, Measure U revenues are projected to be $16,527,000. Overall, this is an increase of General Fund revenues of $7.93 million over the FY 2023-24 amended revenue projections. A large portion of this increase is a result of cost allocation of General Fund Administration.
Measure U
16.D
City Council Resolution 4731, passed after the approval of the Measure U 1% sales tax in November 2016, directs the allocation of Measure U revenues to Police (2/3) and Fire (1/3). Additionally, Resolution 4731 includes a maintenance of effort provision that the City not, in any fiscal year, reduce the percentage of General Fund revenues budgeted and appropriated for Hemet police and fire services below 72% of the total General Fund expenditure budget for the given fiscal year.
In FY 2024-25, General Fund revenues exclusive of Measure U and transfers are projected to be $59,150,600. This means that $42,588,400 (72%) of these revenues are to be dedicated to Public Safety for their operations. As stated earlier, Measure U revenues are projected to be $16,527,000, with $11,018,000 or 2/3 of the total revenues allocated to Police and $5,509,000 or 1/3 of the total revenues allocated to Fire.
One-time Use of Measure U Fund Balance
Police Measure U expenditures are projected to be $17,059,800. Of this amount, $532,800 of these planned expenditures are proposed to utilize fund balance to address one-time needs within the Department. These proposed one-time uses are for the following:
City Net Service $532,800
City Net Services has been updated from the previous Council Workshops based on the Measure U Citizen's Oversight Committee's recommendation to move the portion of Bridge Housing, cost of
16.D
motel room rental, motel pet fees, and damages, motel client food cards and a 10% de minimis rate totaling $493,400 to the General Fund rather than Measure U.
Fire Measure U expenditures are projected to be $5,509,000. There are no proposals of one-time uses of fund balance for the department.
Personnel Changes
Due to the City's focus on bringing the total compensation of all positions to a market average, adjustments to staffing are minimal in the recommended budget. The budget increases citywide positions by 1.5 employees, including a full-time, a part-time position and trading a position.
Highlighted changes to the City's team include the following:
Police (0):
o -1.0 Police Officer
o 1.0 Police Lieutenant
Fire (0.5):
o 0.5 EMS Coordinator
Library (1):
o 1 Librarian
One-time Use of General Fund Balance
With the City ending FY 2023-24 with an Unassigned General Fund balance of $30,214,501, it has been recommended that the City invest in several citywide projects using $6,082,400.
These projects are as follows:
Additional Citywide Street Improvement/Paving Project; $2,000,000 Contribution to Liability Fund to cover negative fund balance; $1,000,000 City Beautification (Trash Enclosures with Roofs); $500,000 Facade Improvement Macro Project; $500,000
Kitchen Grant(s) for Downtown Restaurant(s); $300,000 Election costs for three council seats and ballot measure; $213,000 Pension 115 Trust Contribution; $200,000
Park Design; $150,000
Development Fee Study $150,000
City Net (Bridge Housing, motel and meals portion); $149,400 Outfitting for new fire truck approved by City Council May 14, 2024; $125,000 Mobile Command Center - Sales Tax; $105,000
Store Front Vandalism; $100,000
Community Enrichment Grants; $100,000
Architect services for Fire Station 2; $100,000
Utility Truck; $80,000
Vehicle for fourth Code Officer $70,000
Vehicle for Community Solutions Coordinator $60,000
City Hall Facility Improvements - Lobby, Patio and Lactation Room; $50,000 Classification Analysis; $50,000
Engineer/Architect Design Plan for Training Tower; $35,000 Personnel Policy Update by Labor Attorney; $25,000
PEG - Cabling and cameras; $20,000
STRATEGIC PLAN INTEGRATION:
16.D
GOAL FIVE: ORGANIZATIONAL EFFECTIVENESS
To identify the work needed inside the City organization to effectively provide services to the community and ensure financial stability.
Objective 1: Operate in a financially sustainable manner.
Objective 2: Evaluate existing practices to ensure continuity with industry best practices.
Objective 3: Provide Council with policies that are consistent while lessening liabilities.
Objective 4: Increase employee retention by training and creating a positive workplace.
Objective 5: Streamline fire prevention coordination efforts.
FISCAL IMPACT:
The City Council is required to adopt a budget for the succeeding fiscal year prior to the end of the current fiscal year. Staff has prepared the proposed Fiscal Year 2024-25 Budget.
ATTACHMENT(S):
Attachment 1 - Budget Resolution 2425
Attachment 2 - GANN Limit Calculation
Attachment 3 - Measure U Oversight Committee Letter 2024-06-18 Attachment 4 - Fiscal Year 2024-2025 Operating Budget
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CITY COUNCIL RESOLUTION NO. 2024-XXX
CITY OF HEMET
HEMET, CALIFORNIA
RESOLUTION NO. 2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HEMET, CALIFORNIA, ADOPTING THE BUDGET AND
APPROVING APPROPRIATIONS FOR THE FISCAL YEAR
COMMENCING JULY 1, 2024, AND ENDING JUNE 30,
2025
The City Council of the City of Hemet does resolve as follows:
WHEREAS, the budget for the City of Hemet ("BUDGET") for the fiscal year commencing July 1, 2024, and ending June 30, 2025 as prepared and submitted by the City Manager and as modified by the City Council, is hereby approved and adopted as the budget of the City of Hemet for said fiscal year. A copy of said budget is hereby ordered filed in the office of the City Clerk and shall be certified by the City Clerk as having been adopted by this resolution.
WHEREAS, the Budget, as adopted by the City Council, establishes the total appropriation provided for each City Department and Fund subject to all applicable ordinances of the City and statutes of the State. To ensure that the expenditures of each Department and Fund do not exceed the appropriation, expenditures for each Department and Fund are limited to the amounts authorized by the City Council in the Budget, plus any carryover amounts and supplemental appropriations separately and individually approved by the City Council. The City Manager is authorized to transfer budgeted amounts between Divisions and accounts within the same Department and Fund over the course of the fiscal year covered by the Budget so long as such transfer is reported to the City Council within forty-five (45) days. Any transfer of appropriations
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CITY COUNCIL RESOLUTION NO. 2024-XXX
between Departments or Funds or any increased appropriation for a Department or Fund must be authorized by the City Council. Expenditures may not legally exceed budgeted appropriations at the Department level within a Fund. City Council approval is required for all transfers from unappropriated fund balances or contingency reserves.
WHEREAS, at the close of the fiscal year unexpended appropriations in the operating budget will be encumbered as necessary to underwrite the expense of outstanding purchase commitments. Unexpended appropriations for authorized but uncompleted projects as approved by the City Council may be carried forward to the next succeeding budget upon approval of the City Manager.
WHEREAS, total appropriations within funds will be increased only by amendment of the budget by motion of the City Council.
WHEREAS, the City Manager may reduce expenditure appropriations within funds as a method of fiscal control, and the Administrative Services Director may decrease revenue estimates to reflect economic change during the fiscal period.
WHEREAS, the Administrative Services Director is hereby authorized to transfer monies in accordance with the interfund transfers listed in said budget, and to transfer monies to cover operational expenditures of the City through transfers of funds in such amounts, and at such times during the fiscal year as may be determined necessary to the competent operation and control of City business or to provide for adequate cash flow, except that no such transfer shall be made in contravention of State law or City ordinances.
WHEREAS, Section 7910 of the California Government Code provides for a formal spending limit. The spending limitation for the fiscal year 2024-25 totals
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CITY COUNCIL RESOLUTION NO. 2024-XXX
$145,511,866 based on population growth and change in California per capita personal income. The option of using the percentage change in the local assessment roll due to the addition of local non-residential new constructing has not been used. The 2024-25 budget subject to the spending limit is $64,474,366 and, therefore, below the limit. (Attachment 2; GANN Limit Calculation)
WHEREAS, the City Manager is hereby authorized to appropriate budget in the HOME Funds as program income is paid to the City in order for the City to re-loan these funds to qualified homeowners.
WHEREAS, adjustments made by the City Council during the budget hearing and documented in the minutes for this action will be incorporated within the final printed budget document. The City Manager is hereby authorized to approve any corrections in the budget document that are clerical in nature.
WHEREAS, the City Clerk shall certify to the adoption of this resolution.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HEMET FINDS, DETERMINES, ORDERS AND RESOLVES AS FOLLOWS:
SECTION 1. ACTIONS.
The City Council authorizes the Administrative Service Director to establish appropriations in the General Ledger as detailed within the Fiscal Year 2024-25 Budget Document. (Attachment 3, FY 2024-25 Budget)
SECTION 2. EFFECTIVE DATE.
This Resolution shall become effective on June 25, 2024.
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CITY COUNCIL RESOLUTION NO. 2024-XXX
PASSED, APPROVED, AND ADOPTED ON JUNE 25th, 2024.
____________________________
Joe Males, Mayor
ATTEST:
__________________________
John Paul Maier, City Clerk
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CITY COUNCIL RESOLUTION NO. 2024-XXX
State of California )
County of Riverside )
City of Hemet )
I, John Paul Maier, City Clerk of the City of Hemet, do hereby certify that the foregoing resolution was adopted by the Hemet City Council on the 25th day of June, 2024, and was passed by the following vote:
AYES: Council Members:
NOES: Council Member:
ABSTAIN: Council Member:
ABSENT: Council Member:
_________________________________
John Paul Maier, City Clerk
16.D
16.D
CITY OF HEMET
24/25 EXPENDITURE LIMITATION
CALCULATION
Preliminary
2024/2025
All funds Budgeted Expenditures 24/25 139,844,730
Less:
Fee Supported:
Fund 225/LLMD (1,799,800)
Fund 227/Post Prop-218 Lighting Dist (468,867)
Fund 228/Post Prop-218 Landscape Dist (2,075,364)
Fund 229/Public Works CFD (39,900)
Fund 254/Sewer (3,382,400)
Fund 571/Water (12,656,400)
Rev - General User Fees (110-0601 - 110-0790) (3,976,000) Rev - Licenses & Permits (fund 110 & 120) (6,493,000)
Rev - Fines & Forfeits (70,000)
Rev - Literacy Grants (10,000)
Internal Service Funds:
Fund 680 / Administrative Services (2,417,400)
Fund 681 / Workers' Comp (1,464,000)
Fund 682 / Medical Insurance (350,000)
Fund 683 / Liability Insurance (6,192,100)
Fund 684 / Vehicle Maintenance (2,003,200)
Fund 685 / Facility Maintenance (2,560,900)
Fund 686 / PW Admin (2,247,800)
Fund 687 / Dental/Vision -
Fund 689 / Retiree Medical (4,730,000)
Fund 690 / Unemployment Benefits (25,000)
Fund 691 / Legal Services (1,035,000)
Fund 692 / Emergency Services -
Debt Service:
Fund 396 / RDA Retirement Obligation Fund (125,000)
Fund 496 / Hemet Project Area 2014 Refunding (885,100)
Fund 788 / Heartland 2006 Refunding (757,400)
Grants:
Fund 240 / CDBG (885,299)
Major Capital (over $100,000) (2,130,000)
Expenditures Subject to Limitations 81,064,800
PY Gann x CY Cost of living change x CY Population change Prior Year Gann Limit 140,190,036
Current Year Per Capita Cost of Living Change 1.0362
Current Year Population Change 1.0017
Calculation of factor for CY 1.0380
2024/25 Gann Expenditure Limit 145,511,866
Variance Below Gann Limit 64,447,066
16.D
Measure U Oversight Committee
June 18, 2024
Hemet City Council
445 East Florida Avenue
Hemet, CA 92543
Members of the Hemet City Council:
Pursuant to Section 74-145(A)(2) of the Hemet Municipal Code, the Citizen's Oversight Committee on the Hemet Transactions and Use Tax, commonly known as the Measure U Committee (the "Committee"), has met to review and report on the proposed and actual expenditures of the Hemet Transactions and Use Tax. The Committee finds that the proposed and actual expenditures of the Hemet Transactions and Use Tax are consistent with Ordinance No. 1918, Resolution 4703 and Resolution 4731 (collectively "Measure U Documents"), with the following noted exceptions and recommendations:
Recommendation #1: The City's agreement with City Net for Street Outreach and Engagement Services is generally consistent with the Measure U Documents, however, the Committee recommends the City Council appropriate the funds to pay for Emergency Shelter/Bridge Housing, along with the associated administrative fee, meal vouchers, and damage to motel/hotel rooms to the General Fund instead of Measure U.
Recommendation #2: The City Council may properly appropriate up to 2.4 million dollars of additional insurance costs projected to be incurred by the City for Fiscal Year 2024/25 to Measure U Fund Balance as these additional costs are specifically authorized by Resolution 4703 and have a direct nexus to the provision of law enforcement services. This motion was approved at the June 18, 2024 Measure U Citizen Oversight Committee Meeting 3-1, with Committee Member Clark voting no.
Exception #1: The City Council has not budgeted the necessary funds to achieve the mandatory staffing ratio of 1.2 sworn peace officers per 1,000 residents as stated in Section 6 of Resolution 4703.
Sincerely,
On behalf of the Measure U Committee
16.D
City of Hemet
FY2024/2025 Annual Operating Budget
Last updated 06/21/24
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 15 of 494 Page 1
16.D
TABLE OF CONTENTS
Introduction 5
Cover Page 6
Transmittal Letter 6
GFOA Budget Award 10
History of City 11
Demographics 12
Organizational Chart 16
Budget Process 17
Basis of Budgeting 20
Fund Structure 21
Financial Policies 26
Additional Information 27
FY2024/2025 Annual Operating Budget Resolution 28
Reserve Fund Balance Requirement Ordinance 32
Historical Expenditures and Revenue 37
Budget Overview 38
Budget Summary Charts 39
Strategic Plan 42
Priorities & Issues 49
Budgeted Positions 50
GANN Appropriations Limit 63
Fund Summaries 65
All Funds Summary 66
General Fund 74
Measure U 81
Special Revenue Funds 87
Development Impact Funds 94
Water Enterprise Fund 100
Internal Service Funds 107
Funding Sources 113
Major Revenue Sources 114
Departments 136
All Department Summary 137
City Council 148
City Manager 153
City Manager Administration 158
Community Engagement 162
Grants Administration 165
City Clerk 169
City Clerk Administration 173
Elections 177
City Clerk Records Management 180
Administrative Services 182
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 16 of 494 Page 2
16.D
Administration 187
Finance - General Accounting 194
Finance - Procurement 198
Finance - Payroll 202
Finance - Utility Billing 206
Human Resources - Employee Services 209
Human Resources - Employee Appreciation 213
Information Technology - Applications 216
Information Technology - Government TV 220
Information Technology - Systems 223
Treasurer 227
Police 232
Police Administration 237
Investigations 244
Patrol 249
ROCS 255
Traffic 261
Community Services 266
Police Records Management 271
Police Dispatch 275
Technology Services 279
Fire and Life Safety 283
Fire Administration 288
Fire/EMS Operations 293
Emergency Services 299
Fire Dispatch 303
Fire Prevention 307
Building 311
Code Compliance 316
Library 321
Library Administration 325
Adult Services 330
Child Services 334
Support Services 338
Literacy 342
Community Development 346
Community Development Administration 350
Planning 354
Economic Development 358
Housing 362
Public Works 366
Assessment Districts 372
Engineering - Capital Improvement 392
Engineering - Development 396
Engineering - Inspections 400
Engineering - Permits 404
Facilities Maintenance 408
Fleet Maintenance 413
Parks 417
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 17 of 494 Page 3
16.D
Sewer 422
Storm Drain 427
Streets 432
Water 437
Non-Departmental 443
Animal Regulation 449
Heartland 2006 Refunding Bond 452
Hemet Project Area 2014 Refunding Bond 455
RDA Retirement Obligation 458
Other Non-Departmental 461
ISF Through Departmental Operating Costs 466
Capital Improvements 473
Capital Improvement Program 474
Appendix 475
Glossary 476
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 18 of 494 Page 4
16.D
INTRODUCTION
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 19 of 494 Page 5
16.D
City Manager's Message
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 20 of 494 Page 6
16.D
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 21 of 494 Page 7
16.D
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 22 of 494 Page 8
16.D
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 23 of 494 Page 9
16.D
Last year’s Adopted FY 2023-24 Annual Budget document received the Government Finance Officer’s Association of the United States and Canada (GFOA) "Distinguished Budget Presentation Award" for the City of Hemet's annual budget for the fiscal year beginning July 1, 2023. In order to receive this award, a governmental entity must publish a budget document that meets program rating criteria, such as a policy document, operations guide, financial plan, and communications device.
This award is valid for a period of one year only. In preparing the Adopted FY 2024-25 Annual Budget document, staff followed the GFOA criteria. This document will be submitted to be considered for the FY 2024-25 budget award.
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 24 of 494 Page 10
16.D
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 25 of 494 Page 11
16.D
Population Overview
TOTAL POPULATION
89,651
.8%
vs. 2021
GROWTH RANK
83 out of 498
Municipalities in California
DAYTIME POPULATION
82,325
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey 5-year estimates
POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates * Data Source: U.S. Census Bureau American Community Survey 5-year Data and the 2020, 2010, 2000, and 1990 Decennial Censuses 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2… 40k
50k
60k
70k
80k
90k
<5 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 >85 City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 26 of 494 Page 12
16.D
Household Analysis
TOTAL HOUSEHOLDS
30,963
Municipalities must consider the dynamics of household types to plan for and provide services effectively. Household type also has a general correlation to income levels which affect the municipal tax base.
* Data Source: American Community Survey 5-year estimates 10%
lower than state average
Family Households
44%
12%
lower than state average
Married Couples
44%
29%
higher than state average
Singles
31%
24%
higher than state average
Senior Living Alone
16%
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 27 of 494 Page 13
16.D
Economic Analysis
Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living.
HOUSEHOLD INCOME
Above $200,000
5%
74%
lower than state average
Median Income
$49,901
46%
lower than state average
Below $25,000
22%
67%
higher than state average
* Data Source: American Community Survey 5-year estimates Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
$25,000 to $50,000
Below $25,000
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 28 of 494 Page 14
16.D
Housing Overview
2022 MEDIAN HOME VALUE
$277,200
* Data Source: 2022 US Census Bureau (http:/ www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
HOME VALUE DISTRIBUTION
* Data Source: 2022 US Census Bureau (http:/ www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
HOME OWNERS VS RENTERS
Hemet
39%
Rent
61%
Own
State Avg.
44%
Rent
56%
Own
* Data Source: 2022 US Census Bureau
(http:/ www.census.gov/data/developers/datasets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
2009
2010
2011
20122013
2014
2015
2016
2017
2018
2019
2020
2021
2022
100k
150k
200k
250k
300k
> $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 29 of 494 Page 15
16.D
Citizens of Hemet
Carole Kendrick Councilmember District 1Jackie Peterson Councilmember District 2Malcolm Lilienthal Mayor Pro Tem District 3
Mark Prestwich City Manager
Steven Grahan City Attorney
Tiffany Barnett Acting Administrative
Services Director
Kathye Caines
Senior Librarian
Monique AlanizFlejter Community Development Director
Michael Arellano Chief of Police
Eddie Sell Chief of Fire
Noah Rau Public Works Director/City
Engineer
John Paul Maier City Clerk
Joe Males Mayor District 4Linda Krupa Councilmember District 5 City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 30 of 494 Page 16
16.D
Budget Process and Timeline
The annual budget process begins in January of each year. The budget team, which includes the City Manager, Administrative Services Director, Accounting Manager, Principal Accountant and all Department Heads, reviews the needs of the City and available funding. The Budget Team uses this information to develop spending priorities and department expenditure targets for the upcoming fiscal year.
In fiscal year 2021-2022, the City Manager incorporated city services into programs and concepts that align with the Council’s established priorities, creating a first time program-based budget. Fiscal year 2024-2025 will be the fourth year that program-based budgeting is being used and will continue to layer the foundation of historical data in this manner.
In February, a Budget Memo is sent out to all Department Heads by the City Manager with instructions on how to proceed with the initial budget.
The Finance Division works on updating salary and benefit costs, which include any MOU increases, CalPERS increases, and any merit increases due to individual employees. The Finance Division also updates cost allocation information for use with Internal Service Fund allocations.
Department revenue estimates are compiled from projections of activity for the upcoming fiscal year. The Administrative Services Director and the City Manager meet shortly after requests are submitted to analyze the City’s ability to fund all programs and review any requests for additions. These additions include the following:
Expenditure requests above the established department target; Personnel requests, including temporary personnel, and any proposed reclassifications.
The budget team holds meetings with each department to discuss their budget requests and to obtain additional information to assist in the resolution of the requests. Following this review, department staff performs a final adjustment to their line item submissions.
In May, public City Council budget workshops are held to receive public comment and to review the components of the Proposed Budget and any modifications to fiscal policies, prior to formal consideration for adoption. Any changes based on this review are incorporated prior to adoption at a subsequent City Council meeting, which should occur in June.
All appropriations lapse at year-end, except for those relating to encumbrances approved for carryover to the following fiscal year. The City Council has the legal authority to amend the budget at any time during the fiscal year. Budgetary controls are maintained to ensure compliance with the budget as approved by the City Council. Adjustments between funds or requests for additional funding require the approval of the City Council. As referenced in the Budget Resolution, the City Manager has the authority to make changes to departmental budgets. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is at the department level.
The City has a formalized mid-year budget review process which is used to update the appropriations and revenue projections halfway through the fiscal year. The City begins this process in December by analyzing revenue projections, service contracts, new City Council priorities, and the impacts of legislation from the State and Federal Government. In January, departments review their individual budgets to identify any savings or to request additional funds to meet the needs of new programs or spending priorities. The result is a Mid-Year budget document that ensures that sufficient funding is available to meet the updated objectives and priorities for the remainder of the fiscal year. This document is taken to the City Council for adoption.
Feb 7, 2024
Request ISF data from departments and divisions
Feb 7, 2024
Issue budget instructions
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 31 of 494 Page 17
16.D
Feb 7, 2024
Open Eden for department budget entry
Feb 7, 2024
Salary and benefit data distributed to departments and divisions Feb 8, 2024
Eden entry of department's expenditure requests due to Finance Feb 26, 2024
ISF data due back to Finance
Feb 27, 2024
FY 2023-24 Mid-year reports available
Mar 1, 2024
Revenue projections due to Finance
Mar 8, 2024
Salary and benefit data updates due back to Finance
Mar 25, 2024
Preliminary Budget presented to CM for initial review (Supplemental requests review if needed)
Apr 1, 2024
First series of meetings with departments
Apr 3, 2024
Strategic Goals Update Workshop
May 14, 2024
First City Council Budget Workshop
May 28, 2024
Second City Council Budget Workshop (if needed)
Jun 25, 2024
Budget Adoption
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 32 of 494 Page 18
16.D
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 33 of 494 Page 19
16.D
Basis of Budgeting
All governmental funds are both accounted for and budgeted using the modified accrual basis of accounting. Their revenues are recognized when they become “measurable” and “available.” Revenues are considered measurable when they are reasonably estimable. Revenues are considered available when they will be collected either during the current period or soon enough after the end of the period to pay for the current year's liabilities. The primary revenue sources susceptible to accrual are property and sales taxes, franchise fees, transient occupancy taxes, investment income, fines and forfeitures collected by County courts, and motor vehicle-in-lieu subventions.
Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. An exception to this general rule is principal and interest due on general long-term debt, which is recognized when due.
Proprietary and Fiduciary funds are accounted for and budgeted using the full accrual basis of accounting, i.e., revenues are recognized in the period earned and expenses are recognized in the period incurred.
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of funds are recorded in order to reserve that portion of the applicable appropriation, is employed in the governmental funds.
Outstanding encumbrances at the end of the fiscal year are recorded as reservations of fund balance since the commitments will be paid in the subsequent year. Encumbrances do not constitute expenditures or liabilities.
City of Hemet | Adopted June 25, 2024 - Resolution 2024-XXX Page 34 of 494 Page 20
16.D