AGENDA - perma.dst.ca.us › vertical › sites › {58E94294-CA71-4F19 … · 05-05-2016 · 2 Farmers Insurance Exchange Murrieta Gate that was not secured, hit claimant's vehicle

AGENDA

PUBLIC ENTITY RISK MANAGEMENT AUTHORITYEXECUTIVE COMMITTEE

MEETING PLACE: Public Entity Risk Management Authority36-951 Cook Street, Suite 101Palm Desert, CA 92211

PERMA Telephone: (760) 360-4966

MEETING DATE: Thursday, May 5, 2016

MEETING TIME: 10:30 A.M. ¶ Please Note Start Time

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

EXECUTIVE COMMITTEE

1. Chuck Buquet, President City of Victorville2. Kevin Kane, Vice-President Victor Valley Transit Authority3. Myrna Paakkonen City of Norco4. Saida Amozgar City of Perris5. Marjorie De La Cruz Palm Springs Aerial Tramway6. Joe Tanner City of Desert Hot Springs7. Rita Chapparosa City of Banning

1. CALL TO ORDER

2. INTRODUCTIONS

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

4. PUBLIC COMMENTSThe public may address the Executive Committee on any matter pertaining to PERMA thatis not on the agenda. The President reserves the right to limit the time of presentations byindividual or topic.

5. CONSENT CALENDARAll items on the Consent Calendar will be approved by one motion, and there will be nodiscussion of individual items unless an Executive Committee member or member of thepublic requests a specific item be pulled from the calendar for separate discussion.

A. Minutes of the Executive Committee Meeting - November 12, 2015B. Notification of Claims Closed - October 2015 through March 2016C. Notification of Claims Received - October 2015 through March 2016

Recommendation: Approve the Consent Calendar as presented.

6. REPORTS / INFORMATION ITEMSNone.

7. ACTION / DISCUSSION ITEMSA. American Technologies, Inc. (ATI) - Presentation

Recommendation: Presentation by Cindy Helmstead, Regional AccountExecutive for American Technologies, Inc. (ATI).

B. Pension Funding ConsiderationsRecommendation: Approve paying 100% of PERMA’s unfunded pension liabilitybalance of $643,221.

C. Personnel RulesRecommendation: Approve the proposed changes to the Personnel Rules.

D. PERMA StaffingRecommendation: Open for discussion.

8. CLOSED SESSIONA. Closed Session

Pursuant to Government Code Section 54957, the Executive Committee will hold aclosed session for the purpose of a public employee performance evaluation:

C Public Employee Performance Evaluation

Title: General Manager

Executive Committee Agenda - May 5, 2016 Page 2

B. Report from Closed SessionPursuant to Government Code Section 54957.1, the Executive Committee will reportin open session any action, or lack thereof, taken in closed session.

9. CLOSING COMMENTSThis time is set aside for Executive Committee members and staff to announceitems/activities which may be of general interest to the Executive Committee. There willbe no Executive Committee discussion on various matters involving PERMA except to askquestions or refer matters to staff, and no action will be taken unless listed on a subsequentagenda.

10. ADJOURNMENT

NOTICES:1. The next regularly scheduled meeting of the Executive Committee will be held Thursday,

September 1, 2016 at the PERMA office, 36-951 Cook Street, Suite 101, Palm Desert, CA 92211.

2. The next regularly scheduled meeting of the Board of Directors will be held Thursday, June 2, 2016at 10:00 a.m., at the Rancho Mirage Public Library, 71100 Highway 111, Rancho Mirage, California92270.

3. Documents and material relating to an open session agenda item that are provided to the ExecutiveCommittee less than 72 hours prior to a regular meeting will be available for public inspection andcopying at the PERMA office, 36-951 Cook Street, Suite 101, Palm Desert, during normal businesshours.

DECLARATION OF POSTING:I, Jennifer Martin, Secretary of the Public Entity Risk Management Authority, certify that a copy of thisagenda was posted in the Authority’s main office, 36-951 Cook Street, Suite 101, Palm Desert, on April 28,2016.

/s/ Jennifer Martin

Executive Committee Agenda - May 5, 2016 Page 3

PUBLIC ENTITYRISK MANAGEMENT AUTHORITY

EXECUTIVE COMMITTEE MEETINGMay 5, 2016

CONSENT CALENDAR

AGENDA ITEM 5: Consent Calendar

PREPARED BY: Scott EllerbrockGeneral Manager

RECOMMENDATION:Approve the consent calendar as presented.

FISCAL IMPLICATIONS:Not applicable for this report.

BACKGROUND & OVERVIEW:The Consent Calendar consists of items that require approval or acceptance, but are self-explanatory and require no discussion. If the Executive Committee would like to discuss anyitem listed, it may be pulled from the Consent Calendar.

The following items are on the Consent Calendar for approval:

A. Minutes of the Executive Committee Meeting - November 12, 2015B. Notification of Claims Closed - October 2015 through March 2016C. Notification of Claims Received - October 2015 through March 2016

REFERENCE MATERIALS ATTACHED:Minutes of the Executive Committee Meeting - November 12, 2015 . . . . . . . . . . . . Page 1Notification of Claims Closed - October 2015 through March 2016 . . . . . . . . . . . . . Page 4Notification of Claims Received - October 2015 through March 2016 . . . . . . . . . . Page 10

Page 1 of 15

Page 2 of 15

Page 3 of 15

PERMAClaims Closed for the Month of October 2015

SETTLEMENTS Total# Claimant Member Description Indemnity Costs Incurred1 Johnson, Jeffrey Perris Bicyclist struck pothole 12,501.00 32,360.10 44,861.102 Shih, Paul Moreno Valley City vehicle rear-ended claimant vehicle 675.88 0.00 675.883 Baker, Louis Desert Hot Springs Improper tow and impound 750.00 0.00 750.004 Interinsurance Exchange of the Auto Club Barstow City vehicle struck claimant vehicle 1,775.01 0.00 1,775.015 Martinez, Ricardo Adelanto City driver struck parked car 1,677.20 0.00 1,677.206 Kephart, Caroline Perris Claimant tripped over sign post and fell 684.00 0.00 684.00

Total 18,063.09 32,360.10 50,423.19

STATUTE EXPIRATION Total

# Claimant Member Description Indemnity Costs Incurred1 Wawanesa/Ester Murrieta Claimant vehicle struck manhole 0.00 0.00 0.002 Peterson, Paula Perris Pothole 0.00 0.00 0.003 Seefeldt, James Perris Motor vehicle drove into open trench 0.00 0.00 0.004 Southern California Edison Barstow Contractor damaged facilities during construction 0.00 0.00 0.005 Goldbeck, Mary La Mesa Claimant tripped over sidewalk irregularity and fell 0.00 0.00 0.006 Currie, Duncan Murrieta Excessive force 0.00 0.00 0.007 Giuliano, Chris Victorville Levied 2013 State tax return to satisfy lien 0.00 0.00 0.008 Gutierrez, Jose Moreno Valley Claimant vehicle struck pothole 0.00 0.00 0.009 Hamilton, Lennard Moreno Valley Claimant vehicle struck construction debris in roadway 0.00 0.00 0.0010 Nunez, Danielle Moreno Valley Claimant fell into uncovered water meter access hole 0.00 0.00 0.0011 Weston, Yolanda Moreno Valley Claimant vehicle struck boulder in roadway 0.00 0.00 0.0012 Cruz, Robert Perris Claimant struck by object from ride at fair 0.00 0.00 0.0013 Torres, Everett Perris Claimant vehicle struck sinkhole 0.00 0.00 0.0014 Holden, Tyler Murrieta Motor vehicle v. bicycle traffic collision 0.00 0.00 0.0015 Rolon, Brian San Jacinto Claimant vehicle struck pothole 0.00 0.00 0.0016 Rolon, Fabian San Jacinto Claimant vehicle struck pothole 0.00 0.00 0.0017 Moreno, Luis Coachella Claimant vehicle struck pothole 0.00 0.00 0.0018 Humphrey (Barker), Cathi Hesperia Dwelling damaged and personal property stolen 0.00 0.00 0.0019 Coleman, Don, et al. Victorville Claimants shot by unknown assailants 0.00 0.00 0.0020 Salazar, Andrea, et al. VVTA Bus failed to stop for stoplight and struck claimant vehicle. 0.00 0.00 0.0021 Newcommer, Mike Murrieta Vehicle struck tree overhanding in road 0.00 0.00 0.0022 Leonis, Sandra San Jacinto Heavy equipment during road construction damaged dwelling 0.00 0.00 0.0023 Longo, Phillip Cathedral City Claimant claimed personal property loss by ems personnel 0.00 0.00 0.0024 Matthias, Joan Cathedral City Claimant vehicle struck turn delinator 0.00 0.00 0.0025 Coleman, Siobhan Hesperia Claimant vehicle struck pothole 0.00 0.00 0.00

Total 0.00 0.00 0.00

ADJUDICATED CASES Total# Claimant Member Description Indemnity Costs Incurred- 0.00 0.00 0.00

Total 0.00 0.00 0.00

DISMISSALS/TENDERS Total# Claimant Member Description Indemnity Costs Incurred1 Bensen, Jeffrey Murrieta Retaliation, false arrest & false imprisonment 0.00 1,560.00 1,560.002 Landaverde, Juan Moreno Valley Improper tow and storage fees 0.00 0.00 0.003 O'Conner, Cindi La Mesa False arrest and false imprisonment 0.00 18,775.04 18,775.044 Moreno, Andrew Norco Claimant was playing on horse trail fence and fell 0.00 0.00 0.00

Total 0.00 20,335.04 20,335.04

MISCELLANEOUS Total# Claimant Member Description Indemnity Costs Incurred1 Roberts, Jeri, et al. Moreno Valley Refund of Planning Commission appeal fee 675.00 0.00 675.002 County of Riverside Jurupa Valley Breach of Agreement 0.00 0.00 0.00

Total 675.00 0.00 675.00

Claim Count Total IncurredRECAP # % $ %Settlements 6 16.2% 50,423.19 70.6%Statute Expirations 25 67.6% 0.00 0.0%Adjudicated Cases 0 0.0% 0.00 0.0%Dismissals/Tenders 4 10.8% 20,335.04 28.5%Miscellaneous 2 5.4% 675.00 0.9%

Total 37 100.0% 71,433.23 100.0%

Page 4 of 15

PERMAClaims Closed for the Month of November 2015

SETTLEMENTS Total# Claimant Member Description Indemnity Costs Incurred1 Alvarez, Jacob Coachella Rock from weed eater broke claimant's vehicle window 875.06 0.00 875.062 Raya, Gustavo Coachella Tree limb broke and fell onto claimant's personal property 447.85 0.00 447.853 Salinas, Debbie Murrieta Officer backed into claimant vehicle 738.24 115.00 853.244 Gongora, Oscar La Mesa Claimant property damaged during service of search warrant 2,000.00 297.05 2,297.055 Allstate Insurance Company La Mesa City police vehicle rear-ended claimant vehicle 2,679.98 0.00 2,679.986 Zigich, Christine Hesperia Uneven asphalt at curb damaged claimant's wheelchair 150.00 0.00 150.007 Cantorna, Jermel Desert Hot Springs Police vehicle struck parked car 351.30 0.00 351.308 Webb, Marianne Barstow Police vehicle struck claimant vehicle 6,401.91 291.10 6,693.01

Total 13,644.34 703.15 14,347.49


# Claimant Member Description Indemnity Costs Incurred1 Johnson-Blanche, Regina Banning Excessive water pressure damaged dwelling 0.00 0.00 0.002 Farmers Insurance Exchange Murrieta Gate that was not secured, hit claimant's vehicle 0.00 0.00 0.003 Gorza, J. Roger Banning Tree roots caused sewer backup 0.00 0.00 0.004 Donegan, Joanne Jurupa Valley Trip and fall at swimming pool on private property 0.00 0.00 0.005 Molina, Edward SunLine Transit Sudden bus stop caused claimant injury to knee and ankles 0.00 0.00 0.006 Brown, Steve Norco Tree limb fell and disrupted electrical service to residence 0.00 0.00 0.007 Harlacher, Frank San Jacinto Claimant vehicle struck pothole 0.00 0.00 0.008 Shaw, Louiis Sr. Banning Power failure 0.00 0.00 0.009 Taylor, Vanessa Murrieta Tree damaged block wall 0.00 0.00 0.0010 Nakamoto, Jack Banning City vehicle struck claimant vehicle 0.00 0.00 0.0011 Woods, Jesse Barstow Claimant vehicle drove sign 0.00 0.00 0.0012 Jimenez, Angel et al. Perris Claimant's vehicle struck pothole 0.00 0.00 0.0013 Cimarron Cove HOA Cathedral City During police pursuit, suspect vehicle struck claimant wall 0.00 0.00 0.0014 Metropolitan Direct Property & Casualty VVTA Traffic Collision - facts unknown 0.00 0.00 0.0015 Paquette, Kenneth Stanton Police officer lost or misplaced knife 0.00 0.00 0.0016 Anton, Blake Murrieta Bicyclist struck "L" meal in roadway and fell 0.00 0.00 0.0017 Southern California Edison Moreno Valley Contractor damaged underground electrical facilities 0.00 0.00 0.0018 Dominguez, Erica Norco Claimant vehicle struck sinkhole 0.00 0.00 0.0019 Aradillas, Amelia Banning Power failure damaged electronic equipment 0.00 0.00 0.00

Total 0.00 0.00 0.00


Total 0.00 0.00 0.00

DISMISSALS/TENDERS Total# Claimant Member Description Indemnity Costs Incurred1 Palmer, William Moreno Valley Claimant vehicle struck construction sign 0.00 0.00 0.002 Kana Pipeline Norco Claimant vehicle struck open manhole 0.00 0.00 0.003 Saremi, Shahrzad Moreno Valley Small claims court regarding vehicle citation 0.00 0.00 0.004 Buchanan, Norman San Jacinto Police vehicle passed left turning vehicle 0.00 0.00 0.005 Freire, Anthony Perris Police vehicle failed to stop for red light and struck claimant vehicle 0.00 0.00 0.00

Total 0.00 0.00 0.00

MISCELLANEOUS Total# Claimant Member Description Indemnity Costs Incurred1 DHS Alternative Healing Desert Hot Springs Challenge of permitting process for medical marijuana dispensary 0.00 0.00 0.002 Chavez, Patrick, et al. Perris Dispute over benefits 0.00 0.00 0.00

Total 0.00 0.00 0.00

Claim Count Total IncurredRECAP # % $ %Settlements 8 23.5% 14,347.49 100.0%Statute Expirations 19 55.9% 0.00 0.0%Adjudicated Cases 0 0.0% 0.00 0.0%Dismissals/Tenders 5 14.7% 0.00 0.0%Miscellaneous 2 5.9% 0.00 0.0%

Total 34 100.0% 14,347.49 100.0%

Page 5 of 15

PERMAClaims Closed for the Month of December 2015

SETTLEMENTS Total# Claimant Member Description Indemnity Costs Incurred1 Crespin, Freddie SunLine Transit Agency Bus struck claimant vehicle 298.36 0.00 298.362 Scott, Mary SunLine Transit Agency Bus damaged driveway 250.00 0.00 250.003 Dominguez, Jose, et al. Moreno Valley City vehicle made u-turn into claimant vehicle 12,131.07 6,335.16 18,466.234 Haas, Julia La Mesa Sewer back-up 21,401.15 1,258.83 22,659.985 American Automobile Assoc for Erika Delgado Desert Hot Springs City vehicle struck claimant vehicle 2,520.77 0.00 2,520.776 Llort, Valentine Rancho Mirage Cell phone stolen from library 630.72 0.00 630.727 Pasco, Angela Barstow Improper tow 420.00 0.00 420.008 Travelers Property Casualty Company Banning Fire at city-owned building damaged neighboring properties 4,350.78 0.00 4,350.78

Total 42,002.85 7,593.99 49,596.84


# Claimant Member Description Indemnity Costs Incurred1 Shaw, M.D., Suresh Desert Hot Springs City disconnected power, withheld permits and breached agreement 0.00 0.00 0.002 Gray, Dean Desert Hot Springs Violation of Brown Act, retaliation and violation of civil rights 0.00 0.00 0.003 Grant, Donovan Coachella Claimant vehicle struck "No Parking" barricade 0.00 0.00 0.004 Thoma, Tiffany Rancho Mirage Slurry splashed on claimant vehicle 0.00 0.00 0.005 Conditt, Timmothy Desert Hot Springs Police lost driver's license 0.00 0.00 0.006 Knapp, Jamie Desert Hot Springs Paint spilled on roadway 0.00 0.00 0.007 Verizon Perris Damage to buried cable 0.00 0.00 0.008 Negrete, Luis Perris Motor vehicle damaged in road construction zone 0.00 0.00 0.009 Huerta, Carmen et al. San Jacinto Heavy equipment during road construction damaged dwelling(s) 0.00 0.00 0.0010 Manuhu, James Norco City vehicle backed into claimant's vehicle 0.00 0.00 0.0011 Castillo, Armando Norco Tree roots invaded lateral sewer line 0.00 0.00 0.0012 Hall, Michael San Jacinto Claimant vehicle struck large pothole 0.00 0.00 0.0013 Castillo, Marianne Adelanto Contractor damaged water main 0.00 0.00 0.0014 Barnett, Dexter et al. Moreno Valley City vehicle rear-ended claimant vehicle 0.00 0.00 0.0015 Gall, Laura, et al. Cathedral City Motor vehicle v. pedestrian traffic collision 0.00 0.00 0.0016 Gardner, Erma, et al Jurupa Valley Claimant vehicle struck boulders in roadway 0.00 0.00 0.0017 Jaramillo, Jaime San Jacinto Claimant vehicle struck rock in construction zone 0.00 0.00 0.0018 Panpradith, Phenvana SunLine Transit Tree limb fell and damaged vehicle 0.00 0.00 0.0019 Sanders, Christopher SunLine Transit Claimant rode bicycle into sidewalk upon chasing bus 0.00 0.00 0.0020 Long, Catherine San Jacinto Claimant vehicle damaged driving through construction zone 0.00 0.00 0.0021 Munoz, Thomas et al. Moreno Valley Police officer failed to report stolen vehicle 0.00 0.00 0.0022 Craigmyle, Jennifer Jurupa Valley Tree roots damaged water service line 0.00 0.00 0.0023 Gonzalez, Sandra Victorville Slip and fall in supermarket parking lot 0.00 0.00 0.00

Total 0.00 0.00 0.00


Total 0.00 0.00 0.00

DISMISSALS/TENDERS Total# Claimant Member Description Indemnity Costs Incurred1 Tougnet, Carol San Jacinto Failure to comply, and enforce compliance, with ADA 0.00 7,921.00 7,921.002 KASA Construction Inc. Moreno Valley Claimant vehicle damaged during officer involved shooting 0.00 0.00 0.003 Oliver, Tony VVTA Bus cut-off by other vehicle 0.00 0.00 0.004 Tabbah, Andre Rancho Mirage Street sweeper pulled in front of claimant vehicle 0.00 0.00 0.005 Morgan, Travis Murrieta Items taken by PD for safe keeping after arrest were not all returned to claimant 0.00 0.00 0.00

Total 0.00 7,921.00 7,921.00

MISCELLANEOUS Total# Claimant Member Description Indemnity Costs Incurred1 Young, Robert Hesperia Claimant disputes Code Enforcement charges, fines and liens 0.00 0.00 0.002 South Coast Air Quality Management District, et al. Moreno Valley City violated CEQA in approving project 0.00 0.00 0.00

Total 0.00 0.00 0.00

Claim Count Total IncurredRECAP # % $ %Settlements 8 21.1% 49,596.84 86.2%Statute Expirations 23 60.5% 0.00 0.0%Adjudicated Cases 0 0.0% 0.00 0.0%Dismissals/Tenders 5 13.2% 7,921.00 13.8%Miscellaneous 2 5.3% 0.00 0.0%

Total 38 100.0% 57,517.84 100.0%

Page 6 of 15

PERMAClaims Closed for the Month of January 2016

SETTLEMENTS Total# Claimant Member Description Indemnity Costs Incurred1 Martinez, Justin Jurupa Valley Administrative Regulation and Ordinance violated freed speech 30,000.00 19,476.31 49,476.312 Miranda, Carlos Palm Springs Tramway PCV pipe struck claimant vehicle 483.43 0.00 483.43

Total 30,483.43 19,476.31 49,959.74


# Claimant Member Description Indemnity Costs Incurred1 Bretado, Israel Hesperia Claimant failed to stop for stop sign and was struck by OV 0.00 0.00 0.002 Chad, Davette Hesperia Solo vehicle rollover - fatality 0.00 0.00 0.003 Grandy Family Trust, et al. Adelanto Challenge of Code Enforcement Action(s) 0.00 0.00 0.004 English-Walls, Eshon'e Victorville Security guards used pepper spray/excessive force on students 0.00 0.00 0.005 Montiel, Axel, Jr. Perris Claimant fell from tree 0.00 0.00 0.006 Luevano, Martin Hesperia Rock struck claimant's vehicle 0.00 0.00 0.007 Gomez, Daisy Blythe Claimant vehicle struck pothole 0.00 0.00 0.008 Fitzgerald, Lila Banning Claimant vehicle struck dip in roadway 0.00 0.00 0.009 Johnson, Darin Moreno Valley Dog ingested poison and died 0.00 0.00 0.0010 Savoy, Ronda La Mesa Police forced open wrong door 0.00 0.00 0.0011 Kellough, Chris La Mesa Claimant vehicle struck pothole 0.00 0.00 0.0012 Green, Nedron Barstow Police lost and/or damaged property 0.00 0.00 0.0013 Hernandez, Andrew Jurupa Valley Claimant challenges citation issued by CHP 0.00 0.00 0.00

Total 0.00 0.00 0.00


Total 0.00 0.00 0.00

DISMISSALS/TENDERS Total# Claimant Member Description Indemnity Costs Incurred1 Osorio, Miguel Moreno Valley Vehicle struck construction debris (tender paid $157.55) 0.00 0.00 0.002 McCollum, Michael Moreno Valley Vehicle struck metal post in roadway (tender paid $118.76) 0.00 0.00 0.003 American Automobile Association San Jacinto Sheriff's department vehicle turned left into claimant (tender paid &,150.11) 0.00 0.00 0.00

Total 0.00 0.00 0.00

MISCELLANEOUS Total# Claimant Member Description Indemnity Costs Incurred1 Duque, Juan Hesperia City seized and refused to release service animal in unaltered state 0.00 0.00 0.002 Roman, Patricia Barstow Wrongful termination 0.00 0.00 0.00

Total 0.00 0.00 0.00

Claim Count Total IncurredRECAP # % $ %Settlements 2 10.0% 49,959.74 100.0%Statute Expirations 13 65.0% 0.00 0.0%Adjudicated Cases 0 0.0% 0.00 0.0%Dismissals/Tenders 3 15.0% 0.00 0.0%Miscellaneous 2 10.0% 0.00 0.0%

Total 20 100.0% 49,959.74 100.0%

Page 7 of 15

PERMAClaims Closed for the Month of February 2016

SETTLEMENTS Total# Claimant Member Description Indemnity Costs Incurred1 Cox Petroleum Transport SunLine Transit Bus struck claimant vehicle 176.45 0.00 176.452 King, Kenneth Banning Tree fell on vehicle 900.00 0.00 900.003 Dennis, Patrick Cathedral City Sprinklers damaged claimant's personal property 4,750.00 0.00 4,750.004 Jaime, Jeanette Banning Lack of wheelchair accessible facilities 17,000.00 0.00 17,000.005 Zaldivar, Yolanda La Mesa Fall - sidewalk no ADA complaint 20,000.00 0.00 20,000.006 Hansen, Jayme Victorville Claimant tripped over depression in roadway and fell 11,000.00 12,760.27 23,760.27

Total 53,826.45 12,760.27 66,586.72


# Claimant Member Description Indemnity Costs Incurred1 Hasson, Joseph Barstow Police vehicle struck claimant 0.00 0.00 0.002 Flores, Gina, et al. Banning Power surge damaged personal property 0.00 0.00 0.003 Spratt, Winston San Jacinto Claimant fell backwards due to defective bus stop bench 0.00 0.00 0.004 Garcia, Lourdes Adelanto Water service restored and home flooded 0.00 0.00 0.005 Diaz, Reina Coachella Fire truck struck claimant vehicle 0.00 0.00 0.006 Lara, Jacob Perris Claimant vehicle struck pothole 0.00 0.00 0.007 USAA et al. Perris Police motorcycle struck claimant's vehicle 0.00 0.00 0.008 Jaquay, Elizabeth Moreno Valley On-ramp for SR-60 closed for parade 0.00 0.00 0.009 Trisler, William Perris Motor vehicle collision-dangerous condition 0.00 0.00 0.0010 Worthy, Thomas Cathedral City Failure to investigate and arrest 0.00 0.00 0.0011 Grandy Family Trust Adelanto Challenge of Code Enforcement action(s) 0.00 0.00 0.0012 Doty, Donald Murrieta False arrest & unlawful seizure of motor vehicle 0.00 0.00 0.0013 Blankenship, Veronica Moreno Valley Failure to provide street lighting caused vehicle collision 0.00 0.00 0.0014 Hernandez, Haely Perris Claimant vehicle struck pothole 0.00 0.00 0.0015 Woods, Crispin SunLine Transit Claimant injured when another vehicle struck the bus 0.00 0.00 0.0016 Elson, Bruce Cathedral City Claimant vehicle struck broken curb 0.00 0.00 0.0017 Caballero, Elisa La Mesa Claimant fell in construction zone 0.00 0.00 0.0018 Ivory, Carla Moreno Valley Claimant tripped over sidewalk irregularity 0.00 0.00 0.0019 Vera, Benito Jurupa Valley City tree fell on claimant vehicle 0.00 0.00 0.0020 Mack, James Moreno Valley Claimant property damaged during search 0.00 0.00 0.0021 Thomas, Kimberly Murrieta Claimant tripped over sidewalk irregularity 0.00 0.00 0.0022 Shteynberg, Rudolf La Mesa Mistreatment by sheriff's department 0.00 0.00 0.00

Total 0.00 0.00 0.00

ADJUDICATED CASES Total# Claimant Member Description Indemnity Costs Incurred1 Wang, Lina Murrieta Suspension of business license and denial of new business license 0.00 47,993.52 47,993.52

Total 0.00 47,993.52 47,993.52

DISMISSALS/TENDERS Total# Claimant Member Description Indemnity Costs Incurred1 Venegas, Oscar VVTA Claimant cut leg and toe on sharp object on bottom of bus seat 0.00 0.00 0.002 de Leon, Alberto Moreno Valley Claimant bitten by K-9 0.00 0.00 0.00

Total 0.00 0.00 0.00

MISCELLANEOUS Total# Claimant Member Description Indemnity Costs Incurred1 IRC Coachella Ventures, LLC Coachella City failed to reimburse developer for cost of public improvements 0.00 0.00 0.00

Total 0.00 0.00 0.00

Claim Count Total IncurredRECAP # % $ %Settlements 6 18.8% 66,586.72 58.1%Statute Expirations 22 68.8% 0.00 0.0%Adjudicated Cases 1 3.1% 47,993.52 41.9%Dismissals/Tenders 2 6.3% 0.00 0.0%Miscellaneous 1 3.1% 0.00 0.0%

Total 32 100.0% 114,580.24 100.0%

Page 8 of 15

PERMAClaims Closed for the Month of March 2016

SETTLEMENTS Total# Claimant Member Description Indemnity Costs Incurred1 Cooks, Charlena Barstow False arrest and excessive force 80,000.00 9,858.27 89,858.272 Auto Club of Southern California Adelanto City vehicle backed into claimant vehicle 1,499.00 0.00 1,499.003 Prudential Overall Supply SunLine Transit Bus struck claimant vehicle 640.00 0.00 640.004 Electrend Inc. Murrieta City vehicle drove away with gas pump nozzle in vehicle 513.94 0.00 513.945 Romero, Ariah Perris Claimant injured when swing seat broke 200.00 0.00 200.006 Langarcia, Miguel SunLine Transit Bus struck claimant vehicle 2,372.97 0.00 2,372.977 Whalen, Jeanne et al. La Mesa Sewer back-up 13,391.92 2,927.31 16,319.238 Mountain View Community Association Moreno Valley Sprinklers damaged stucco wall 15,800.00 0.00 15,800.009 Nunes, Scott Murrieta Dead tree limbs scratched vehicle 2,353.00 0.00 2,353.0010 Rosa, Joseph La Mesa City vehicle backed into claimant vehicle 1,620.31 0.00 1,620.3111 State Farm Mutual Automobile Insurance Company Moreno Valley Claimant vehicle drove into ditch in roadway 5,176.14 0.00 5,176.14

Total 123,567.28 12,785.58 136,352.86


# Claimant Member Description Indemnity Costs Incurred1 Cochran, Steven Cathedral City Police damaged claimant's vehicle 0.00 0.00 0.002 Lee, Ryan Banning City disconnected water service to clmt's property 0.00 0.00 0.003 Johnson, Darin Moreno Valley Cat exposed to sick animals and became ill 0.00 0.00 0.004 Rodriguez, Christine Murrieta Claimant vehicle hit roadway delineator 0.00 0.00 0.005 Knoles, Marianne et al. Perris Claimant vehicle bottomed out crossing rail road tracks 0.00 0.00 0.006 Cantoria, Robert Norco Claimant vehicle hit dumpster 0.00 0.00 0.007 Smith, Kristen, et al. San Jacinto Motor vehicle v. pedestrian traffic collision 0.00 0.00 0.008 Eyer, Veronica San Jacinto Claimant tripped over sidewalk irregularity and fell 0.00 0.00 0.009 Preston, Troy Moreno Valley Motor vehicle v. bicycle traffic collision 0.00 0.00 0.0010 Garcia, Luis, et al. Cathedral City Motor vehicle v. motorcycle traffic collision 0.00 0.00 0.0011 Brookover, Rosalinda Hesperia Loose asphalt kicked up by vehicle struck claimant's vehicle 0.00 0.00 0.0012 Hawkins, Philip Hesperia Claimant bicycle struck concrete residue in bike path 0.00 0.00 0.0013 Villasenor, Juan Coachella City vehicle ran red light and struck claimant vehicle 0.00 0.00 0.0014 Matthews, Mary SunLine Transit Chime cord broke and struck claimant 0.00 0.00 0.00

Total 0.00 0.00 0.00

ADJUDICATED CASES Total# Claimant Member Description Indemnity Costs Incurred1 Hoekstra, George VVTA Driver not in control of bus 0.00 0.00 0.002 Moore, Marline VVTA Failure to offload passenger at safe location 0.00 0.00 0.003 Park, Don, et al. Murrieta Forced entry - unlawful search and seizure 0.00 5,569.40 5,569.40

Total 0.00 5,569.40 5,569.40

DISMISSALS/TENDERS Total# Claimant Member Description Indemnity Costs Incurred1 Midwest Insurance Company Victorville Vendor's employee tripped at entrance to maintenance shop and fell 0.00 0.00 0.002 Cheathem, Keston Hesperia False arrest, excessive force and malicious prosecution 0.00 0.00 0.003 Shed, Antonia Stanton Claimant tripped over sidewalk irregularity and fell 0.00 3,365.40 3,365.40

Total 0.00 3,365.40 3,365.40

MISCELLANEOUS Total# Claimant Member Description Indemnity Costs Incurred1 Cora Constructors, Inc. Blythe Breach of contract 0.00 0.00 0.00

Total 0.00 0.00 0.00

Claim Count Total IncurredRECAP # % $ %Settlements 11 34.4% 136,352.86 93.9%Statute Expirations 14 43.8% 0.00 0.0%Adjudicated Cases 3 9.4% 5,569.40 3.8%Dismissals/Tenders 3 9.4% 3,365.40 2.3%Miscellaneous 1 3.1% 0.00 0.0%

Total 32 100.0% 145,287.66 100.0%

Page 9 of 15

PERMAClaims Received ‐ October 2015

Claim PERMA

# Claimant Member Number Description Date of Loss Claim Filed Received

1 Saremi, Shahrzad Moreno Valley MV1621 Claimant challenging citation 8/5/2015 9/30/2015 9/30/2015

2 Alvarez, Jacob Coachella CH1604 Rock from weed eater broke claimant vehicle's window 8/13/2015 9/30/2015 9/30/2015

3 Matthews, James Barstow BW1608 City improvements adversely impacted public safety 8/15/2015 10/1/2015 10/1/2015

4 Strecke, Gunter Sunline Transit TS1607 Wheelchair struck passenger 8/9/2015 9/26/2015 10/1/2015

5 Cabrera, Karie Moreno Valley MV1622 During rain event, claimant property flooded 7/19/2015 10/2/2015 10/2/2015

6 Punjab Farms Coachella CH1306 Solo motorcycle traffic collision ‐ fatality 10/30/2012 10/1/2015 10/5/2015

7 Riley, Damion Victorville VI1602 Excessive force 7/28/2015 9/8/2015 10/5/2015

8 Carter, Liola Barstow BW1609 Sewer back‐up 7/1/2015 10/5/2015 10/5/2015

9 Kana Pipeline Inc. Norco NR1602 Claimant vehicle struck manhole cover 10/5/2015 10/5/2015 10/5/2015

10 State Farm et al. Moreno Valley MV1623 Claimant vehicle drove into ditch in construction zone 6/2/2015 10/6/2015 10/6/2015

11 Von Entress, Albert Murrieta MU1612 Claimant vehicle struck rock in road 9/29/2015 10/1/2015 10/6/2015

12 Pimenta, Victor Norco NR1603 Mailbox uprooted during construction 9/23/2015 10/7/2015 10/7/2015

13 Wood, Rocky et al. Sunline Transit TS1524 Bus rear‐ended claimant vehicle 5/20/2015 10/5/2015 10/8/2015

14 Cabading, Julia et al. La Mesa LM1611 Sewer back‐up 10/7/2015 10/8/2015 10/8/2015

15 Irvine, Richard Moreno Valley MV1624 New construction damaged claimant's property 10/8/2015 10/8/2015 10/8/2015

16 Velazquez, Hector et al. Moreno Valley MV1622 During rain event, claimant property flooded 7/19/2015 10/8/2015 10/8/2015

17 Zigich, Christine Hesperia HS1611 Uneven asphalt at curb damaged claimant wheelchair 9/8/2015 9/29/2015 10/8/2015

18 Castaneda, Sylvia et al. Jurupa Valley JV1607 Claimants stepped in pothole and fell 7/12/2015 10/9/2015 10/12/2015

19 Hantuli, Reema Moreno Valley MV1625 Claimant vehicle vandalized 9/10/2015 10/9/2015 10/12/2015

20 AAA et al. Desert Hot Springs DH1605 City vehicle struck claimant vehicle 6/26/2015 10/12/2015 10/12/2015

21 Tolliver, John La Mesa LM1612 Claimant stepped into an uncovered utility box and fell 6/11/2015 10/13/2015 10/13/2015

22 Colen, John Norco NR1604 Elected official eavesdropped on claimant 9/16/2015 10/14/2015 10/14/2015

23 KASA Construction, Inc et al. Moreno Valley MV1626 Claimant vehicle damaged during officer involved shooting 7/16/2015 10/15/2015 10/15/2015

24 Batts, Barry et al. Norco NR1605 Motor vehicle traffic collision ‐ dangerous condition 4/16/2015 10/14/2015 10/16/2015

25 Siudzinski, Sandra Victorville VI1603 Claimant tripped over sidewalk irregularity and fell 5/14/2015 9/23/2015 10/19/2015

26 Grandy Family Trust et al. Adelanto AD1604 Challenge of Administrative Hearing and Findings 9/8/2015 10/15/2015 10/19/2015

27 Interinsurance Exchange of the Auto Club of CA et al. San Jacinto JS1604 Police vehicle made left turn into claimant vehicle 7/27/2015 10/13/2015 10/19/2015

28 O'Fallin, James La Mesa LM1613 Claimant cited as being prosecuted for illegal camping 4/8/2015 10/19/2015 10/19/2015

29 Mendoza, Nina Perris PK1607 Claimant vehicle struck pothole 9/27/2015 10/15/2015 10/19/2015

30 Duque, Juan Hesperia HS1612 City seized and refused to release service animal 10/4/2015 10/20/2015 10/20/2015

31 Atigh, Manouchehr La Mesa LM1614 Claimant vehicle drove over paint dropped by contractor 10/10/2015 10/20/2015 10/21/2015

32 West, Timothy Jurupa Valley JV1608 Claimant vehicle struck pothole 10/2/2015 10/21/2015 10/22/2015

33 Crespin, Freddie Sunline Transit TS1608 Bus struck claimant vehicle 10/10/2015 10/21/2015 10/21/2015

34 Nunes, Scott Murrieta MU1613 Tree branch fell onto claimant vehicle 9/9/2015 10/19/2015 10/21/2015

35 Lewis, Randy Norco NR1606 Tree limb fell onto claimant vehicle 8/15/2015 10/22/2015 10/22/2015

36 Tucker, Laim Hesperia HS1613 Failure to apply sunscreen to day camp participant 6/10/2015 10/21/2015 10/22/2015

37 Lawrie, Julianne Norco NR1607 Claimant vehicle struck pothole 10/8/2015 10/21/2015 10/22/2015

38 IRC Coachella Ventures, LLC Coachella CH1605 City failed to reimburse developer for cost of public improvements 10/22/2015 10/22/2015 10/22/2015

39 Truly Holistic Caregivers Perris PK1608 Closure of medical marijuana dispensary 10/7/2015 10/21/2015 10/22/2015

40 Dogonyaro, Andrew Moreno Valley MV1627 Claimant vehicle struck pothole 9/1/2015 10/21/2015 10/23/2015

41 Zazzaro, Gaetano et al. Moreno Valley MV1622 During rain event, claimant property flooded 7/19/2015 10/23/2015 10/23/2015

42 Fenaroli, Jacqueline Murrieta MU1614 Unlawful search and seizure 9/23/2013 10/23/2015 10/23/2015

43 Melton, Theodore Barstow BW1610 Rock from weed eater broke claimant's windshield 10/21/2015 10/22/2015 10/26/2015

44 Moore, Robert Moreno Valley MV1628 Claimant vehicle damaged due to improper alignment of roads 10/26/2015 10/27/2015 10/27/2015

45 Miranda, Carlos PS Tram PT1601 PVC pipe struck claimant vehicle 10/7/2015 10/22/2015 10/27/2015

46 Martinez, Maria Victorville VI1601 During rain event, claimant property flooded 9/8/2015 10/8/2015 10/28/2015

47 McAulay, Kodie et al. Norco NR1608 Traffic collision on flooded roadway 5/22/2015 10/27/2015 10/28/2015

Page 10 of 15

PERMAClaims Received ‐ November 2015

Claim PERMA


1 Juarez, Alma et al. Blythe BT1507 Student had medical issue at Splash Pad, and later died 5/29/2015 11/2/2015 11/2/2015

2 Bambusch, Fred et al. Desert Hot Springs DH1606 Motor vehicle v. wheelchair traffic collision 5/14/2015 11/2/2015 11/2/2015

3 Roman, Patricia Barstow BW1611 Wrongful termination 10/30/2014 11/2/2015 11/2/2015

4 Davis‐Smith, Felicia Perris PK1609 Claimant vehicle damaged by poor condition of roadway 10/11/2015 11/2/2015 11/4/2015

5 Lueder, Ginger Banning BA1607 Tree roots damaged driveway 7/3/2015 11/3/2015 11/4/2015

6 Montes, Salma Sunline Transit TS1609 Claimant fell exiting the bus 10/21/2015 11/4/2015 11/5/2015

7 Fabela, Eloy et al. Holtville HV1601 Claimant vehicle(s) struck fire‐hose in roadway 10/24/2015 10/30/2015 11/5/2015

8 Gomez, Juan Carlos San Jacinto JS1605 Fire damaged claimant vehicle 10/30/2015 11/5/2015 11/5/2015

9 Jones, Antionette Moreno Valley MV1629 Claimant vehicle struck dip in roadway 9/14/2015 11/4/2015 11/5/2015

10 Ugorji, Theo Moreno Valley MV1630 Claimant vehicle struck pothole 10/19/2015 11/4/2015 11/5/2015

11 Flores, Victoria Moreno Valley MV1631 Claimant vehicle damaged by uneven pavement 10/29/2015 11/4/2015 11/5/2015

12 Torres, Carmen Sunline Transit TS1524 Bus rear‐ended claimant vehicle 5/20/2015 10/26/2015 11/6/2015

13 Warlin, James et al. Rancho Mirage RM1603 Traffic collision in construction zone 8/5/2015 11/9/2015 11/9/2015

14 Parker, Darnel Cathedral City CI1605 Police wrongfully impounded claimant vehicle 6/16/2015 11/9/2015 11/9/2015

15 Munoz, JoAnne Moreno Valley MV1632 Claimant vehicle damaged by uneven pavement 10/28/2015 11/9/2015 11/12/2015

16 Warren, Roger Moreno Valley MV1633 Traffic collision involving city owned vehicle 10/27/2015 11/10/2015 11/13/2015

17 Turner, Aryn Banning BA1608 Bus v. pedestrian traffic collision 10/30/2015 11/12/2015 11/12/2015

18 Allstate Insurance et al. Stanton NS1603 City vehicle struck claimant vehicle 8/19/2015 11/12/2015 11/16/2015

19 N. Robinson Transport LLC Perris PK1610 Claimant vehicle struck pothole 6/21/2015 11/16/2015 11/17/2015

20 Hansel, Grayce Sunline Transit TS1610 Claimant struck by seatbelt buckle 9/16/2015 11/17/2015 11/17/2015

21 Infinity Insurance et al. Moreno Valley MV1634 During inspection, claimant vehicle lunged forward and struck parked vehicle 6/22/2015 11/12/2015 11/18/2015

22 Soto, Alexandra Jurupa Valley JV1609 Leaves from city‐owned tree damaged claimant's pool and roof 11/17/2015 11/17/2015 11/18/2015

23 Paulek, Albert Thomas et al. Moreno Valley MV1620 City violated CGQA in approving project 8/19/2015 11/17/2015 11/19/2015

24 Goldkorn, Ruthee Moreno Valley MV1635 Meeting notice is not ADA compliant 11/15/2015 11/19/2015 11/19/2015

25 Pena, Sandra Victorville VI1604 Traffic collision ‐ dangerous condition 4/24/2015 10/20/2015 11/20/2015

26 Valenzuela‐Angulo, Sonia et al. Moreno Valley MV1622 During rain event, claimant property flooded 7/19/2015 11/23/2015 11/23/2015

27 Anderson, Steve Moreno Valley MV1636 Claimant vehicle struck pothole 10/20/2015 11/17/2015 11/23/2015

28 Washington, Eric Murrieta MU1615 Claimant vehicle impounded by police 7/17/2015 11/16/2015 11/19/2015

30 Nepusz, Erin Cathedral City CI1606 Claimant tripped over sidewalk irregularity and fell 5/26/2015 11/18/2015 11/23/2015

29 Diaz, Julian Cathedral City CI1607 Claimant vehicle backed out of driveway and struck debris 11/5/2015 11/17/2015 11/23/2015

31 Yuh, Lundar et al. Stanton NS1604 False arrest and imprisonment 9/24/2015 11/16/2015 11/23/2015

32 Herrera, Cynthia Adelanto AD1605 Claimant vehicle vandalized in City Hall parking lot 9/9/2015 11/24/2015 11/24/2015

33 Goldkorn, Ruthee Moreno Valley MV1637 Failure to comply with ADA 11/21/2015 11/24/2015 11/24/2015

Page 11 of 15

PERMAClaims Received ‐ December 2015

Claim PERMA


1 Mejia‐De La Rosa La Mesa LM1615 Police forcibly entered dwelling, damaged front and rear doors 11/18/2015 11/30/2015 11/30/2015

2 Baron, Javier Moreno Valley MV1638 Claimant vehicle struck pothole 11/8/2015 11/30/2015 11/30/2015

3 Bullock, Michael Sunline Transit TS1611 Other vehicle turned left in front of bus 5/25/2015 11/30/2015 11/30/2015

4 Llort, Valentine Rancho Mirage RM1604 Claimant's cellular telephone stolen 11/13/2015 11/23/2015 11/30/2015

5 Cabral Nuno, Paula PS Tram PT1602 Claimant fell and struck snow removal equipment 5/15/2015 12/1/2015 12/1/2015

6 Warren, April et al. Moreno Valley MV1633 Street sweeper v. motorcycle traffic collision 10/27/2015 11/30/2015 12/7/2015

7 Gonzalez, Luciano Moreno Valley MV1639 Motor vehicle v. pedestrian traffic collision 6/2/2015 12/2/2015 12/7/2015

8 Gordon II, Clifford et al. Victorville VI1605 Claimant fell from ride at County Fair 5/28/2015 11/16/2015 12/7/2015

9 McCoy, Donald Victorville VI1606 Claimant tripped over water meter box and fell 9/26/2015 10/26/2015 12/7/2015

10 Anderson, Betty Victorville VI1607 Claimant injured on ride at County Fair 5/4/2015 10/22/2015 12/7/2015

11 Bader, Jason Murrieta MU1616 Tree roots damaged wall 9/1/2015 12/1/2015 12/8/2015

12 Meek, Katherine La Mesa LM1616 Claimant vehicle struck parking divider 11/22/2015 12/7/2015 12/8/2015

13 Burkhardt, Todd La Mesa LM1617 Sewer back‐up 10/31/2015 12/1/2015 12/1/2015

14 Diaz, Miguel Hesperia HS1614 Claimant vehicle damaged in construction zone 11/21/2015 11/25/2015 12/8/2015

15 Kessler, Donald Hesperia HS1615 Claimant assaulted by emergency medical personnel 5/24/2015 11/23/2015 12/8/2015

16 Auto. Club of So. CA. et al. Adelanto AD1606 City vehicle backed into claimant vehicle 10/8/2015 12/14/2015 12/14/2015

17 Chavez, Loretta et al. Barstow BW1612 Officer involved shooting 9/14/2015 12/14/2015 12/14/2015

18 Verizon Banning BA1609 City damaged claimant's facilities 11/3/2015 11/24/2015 12/15/2015

19 Pena Perez, Jose Eduardo Moreno Valley MV1640 Claimant vehicle damaged by construction zone 11/19/2015 12/15/2015 12/15/2015

20 Southern California Gas Company Norco NR1609 Leaking 1" water service damaged 2" gas main 11/7/2015 12/14/2015 12/17/2015

21 Langarica, Miguel Sunline Transit TS1612 Bus struck claimant vehicle 10/19/2015 12/16/2015 12/17/2015

22 Lerma, Loretta Victorville VI1608 Tripped on crack in crosswalk and fell 11/4/2015 12/7/2015 12/17/2015

23 Goldkorn, Ruthee Moreno Valley MV1641 Failure to comply with ADA 12/11/2015 12/17/2015 12/17/2015

24 Lomas, Yongenette San Jacinto JS1606 Claimant vehicle struck pothole 12/3/2015 12/17/2015 12/21/2015

25 American Automobile Association Moreno Valley MV1633 Street sweeper v. motorcycle traffic collision 10/27/2015 12/15/2015 12/22/2015

26 Santillanes, Socorro et al. Coachella CH1606 City failed to provide/post notices to residents 6/10/2015 12/21/2015 12/21/2015

27 McGriff, Leonicia Hesperia HS1616 Head‐on traffic collision 6/25/2015 10/14/2015 12/22/2015

28 Stebbins, Donna Hesperia HS1617 City damaged property frontage 12/14/2015 12/14/2015 12/22/2015

29 Bryce, Florence Hesperia HS1618 Claimant tripped over sidewalk irregularity and fell 6/25/2015 12/11/2015 12/22/2015

30 Frantz, Donald Sunline Transit TS1613 Passenger broke brake handle off passenger's walker 12/14/2015 12/18/2015 12/22/2015

31 Aguirre, Tanya Moreno Valley MV1642 Tree limb broke window of claimant home 12/26/2015 12/29/2015 12/29/2015

32 Verizon et al. Moreno Valley MV1643 Underground utilities damaged 7/11/2015 12/30/2015 12/30/2015

Page 12 of 15

PERMAClaims Received ‐ January 2016

Claim PERMA


1 Haynes, Cindy et al. Hesperia HS1619 Water Main Break 12/14/2015 1/4/2016 1/4/2016

2 Pulido, Maricarmen Perris PK1611 Claimant vehicle struck dip in roadway 12/14/2015 1/4/2016 1/5/2016

3 Southern California Edison Perris PK1522 Sewer back‐up et al. 3/22/2015 12/22/2015 1/5/2016

4 Baratto, Mabel Sunline Transit TS1614 Bus braked and claimant fell as exiting 7/11/2015 1/5/2016 1/5/2016

5 Rodriguez, Ronald et al. Norco NR1610 Tree limb fell on electrical service to claimant home 12/26/2015 12/30/2015 1/7/2016

6 Bulgarelli, Tina Hesperia HS1620 Claimant vehicle damaged in construction zone 12/9/2015 12/14/2015 1/4/2016

7 Davis, Sybil Moreno Valley MV1644 Officer involved shooting ‐ fatality 7/16/2015 1/7/2016 1/11/2016

8 Anderson, Christine La Mesa LM1618 Claimant stepped into sprinkler control box and fell 7/25/2015 1/11/2016 1/11/2016

9 Vasquez, Jess Murrieta MU1617 Claimant property flooded 1/5/2016 1/6/2016 1/11/2016

10 Fisher, Alan Cathedral City CI1512 Motor Vehicle v. pedestrian traffic collision 8/31/2014 1/4/2016 1/11/2016

11 Feathers, Sandra Murrieta MU1618 Gate fell on claimant 1/5/2016 1/5/2016 1/11/2016

12 Daniel, Coleen Norco NR1611 Claimant tripped over cement overlay in parkway and fell 11/29/2015 12/21/2015 1/11/2016

13 Angle, Maria Desert Hot Springs DH1607 Claimant vehicle struck pothole 11/29/2015 1/11/2016 1/12/2016

14 Lule, David Moreno Valley MV1645 During rain event claimant property flooded 7/18/2015 1/11/2016 1/13/2016

15 Huerta, Kevin Moreno Valley MV1646 RTA bus rear‐ended claimant 12/13/2015 1/11/2016 1/13/2016

16 Romero, Ariah et al. Perris PK1612 Claimant injured when swing broke 1/11/2016 1/12/2016 1/13/2016

17 Gutierrez, Eddiberto Perris PK1613 Claimant vehicle struck pothole(s) 1/10/2016 1/12/2016 1/13/2016

18 Prude, Deborah Moreno Valley MV1647 Claimant vehicle struck pothole 1/6/2016 1/13/2016 1/14/2016

19 Saiz, Benjamin Coachella CH1607 City vehicle attempting to park and struck claimant vehicle 12/27/2015 1/13/2016 1/14/2016

20 Heirs of Rafael Castillo & Jonathan Castillo Banning BA1611 Multi‐vehicle traffic collision ‐ fatality 7/15/2015 1/14/2016 1/14/2016

21 Cox Petroleum Transport Sunline Transit TS1615 Bus struck claimant vehicle 12/29/2015 1/15/2016 1/19/2016

22 Suliman, Nader La Mesa LM1619 Claimant vehicle struck pothole 1/10/2016 1/19/2016 1/19/2016

23 Ponce, Nicolas Jurupa Valley JV1610 Tree branch fell onto claimant vehicle 12/26/2015 1/11/2016 1/19/2016

24 Cora Constructors Inc. Blythe BT1604 Breach of contract 1/15/2016 1/15/2016 1/19/2016

25 Dennis, Patrick Cathedral City CI1608 Sprinklers damaged claimant's personal property 1/9/2016 1/19/2016 1/19/2016

26 U.S. Bank Trust et al. Perris PK1614 Foreclosure encumbered by city's abatement lien 9/16/2015 1/14/2016 1/19/2016

27 Fraley, Cynder Hesperia HS1621 Claimant vehicle struck pothole 12/22/2015 1/7/2016 1/19/2016

28 State Farm Auto Insurance et al. Sunline Transit TS1616 Rain gutter fell onto claimant vehicle 10/15/2015 1/20/2016 1/20/2016

29 Belmonte, Reina et al. Murrieta MU1619 Police served search warrant and damaged claimant property 11/13/2015 1/11/2016 1/19/2016

30 Verizon Hesperia HS1622 City vehicle struck claimant's drop cable 11/24/2015 1/4/2016 1/19/2016

31 Kpaduwa, Uchenna Eastvale EV1601 False arrest 7/19/2015 1/14/2016 1/20/2016

32 Montijo, Louis Moreno Valley MV1648 During rain event, claimant property flooded 7/19/2015 1/19/2016 1/20/2016

33 Heirs of Rafael Castillo & Jonathan Castillo Moreno Valley MV1649 Multi‐vehicle traffic collision ‐ fatality (X2) 7/15/2015 1/14/2016 1/20/2016

34 Turner, Aryn et al. Banning BA1608 Bus v. pedestrian traffic collision 10/30/2015 1/20/2016 1/21/2016

35 Golden, Gail Moreno Valley MV1650 Claimant vehicle left roadway and was damaged 1/12/2016 1/21/2016 1/25/2016

36 Fierro, Cherlyn et al. San Jacinto JS1604 Police vehicle made left turn into claimant vehicle 7/27/2015 1/25/2016 1/25/2016

37 Amen, Deborah La Mesa LM1620 Claimant vehicle struck road hazard 1/5/2016 1/21/2016 1/27/2016

38 Berry, Patricia La Mesa LM1621 City vehicle struck claimant vehicle 1/21/2016 1/27/2016 1/27/2016

39 Marshall, Kendric Moreno Valley MV1651 City employee stole personal property and money from claimant vehicle 1/26/2016 1/27/2016 1/28/2016

40 Perez, Francisco Coachella CH1608 Claimant vehicle struck pothole 1/21/2016 1/27/2016 1/28/2016

41 Badillo, Jonathan Moreno Valley MV1652 Claimant vehicle drove over bolt in parking lot 1/26/2016 1/28/2016 1/28/2016

42 Anderson, Kirstin et al. Hesperia HS1623 Traffic collision ‐ fatality (x1) 7/30/2015 1/28/2016 1/28/2016

43 Wilson, Sr., James Banning BA1612 Train v. pedestrian traffic collision ‐ fatality 8/11/2015 1/27/2016 1/29/2016

Page 13 of 15

PERMAClaims Received ‐ February 2016

Claim PERMA


1 Padilla, Virginia Hesperia HS1624 Claimant vehicle struck pothole 10/22/2015 1/13/2016 1/29/2016

2 Zakharia, Edward Hesperia HS1625 During rain event claimant property flooded 10/1/2015 1/14/2016 1/29/2016

3 Zakharia, Edward Hesperia HS1626 Police failed to respond and protect property from theft 10/1/2015 1/14/2016 1/29/2016

4 Callahan, Amy Eastvale EV1602 Traffic collision 8/31/2015 2/1/2016 2/1/2016

5 Fontes, Jeremy Moreno Valley MV1653 Claimant vehicle struck manhole cover 1/29/2016 2/2/2016 2/2/2016

6 Valdivia, Edwardo Jurupa Valley JV1611 Claimant vehicle struck open ditch 1/25/2016 2/1/2016 2/2/2016

7 Espinosa, Cecilia Norco NR1612 City allowed non‐code compliant construction 1/1/2016 1/25/2016 2/2/2016

8 Sanders, Mike Norco NR1613 Tree limb fell onto and damaged claimant property 12/26/2015 1/21/2016 2/2/2016

9 Schmitt, Colin et al. Murrieta MU1620 Parking bollard fell onto claimant 12/21/2015 2/2/2016 2/3/2016

10 White, Alberta La Mesa LM1622 Fire personnel forced open door to respond to medical emergency 2/2/2016 2/3/2016 2/3/2016

11 Gardner, Ron La Mesa LM1623 During rain event claimant property flooded 1/5/2016 2/3/2016 2/3/2016

12 Woodyard, Scott PS Tram PT1603 Claimant placed bag on floor furnace and was burned 12/30/2015 1/25/2016 2/3/2016

13 Murrieta 492, L.P. Murrieta MU1621 Breach of contract 11/4/2015 2/2/2016 2/3/2016

14 Cummins, Michael Banning BA1613 During rain event claimant property flooded 1/6/2016 02/02/016 2/4/2016

15 Lamb, Kindrea Barstow BW1613 Claimant vehicle struck valley gutter 1/10/2016 1/29/2016 2/4/2016

16 Johnson, Pamela et al. Rancho Mirage RM1507 Traffic collision‐ fatality ‐ dangerous condition 11/4/2014 5/1/2015 2/4/2016

17 Martin, Alvarez Moreno Valley MV1654 City vehicle rear‐ended claimant vehicle 1/22/2016 2/5/2016 2/5/2016

18 Rivera, Luis Blythe BT1605 Claimant vehicle struck loose manhole cover 1/21/2016 2/2/2016 2/5/2016

19 Fragoza, Gabriel J. Blythe BT1606 Claimant property damaged during detonation of suspected explosive device 10/13/2015 2/3/2016 2/5/2016

20 Cronan, Kevin Cathedral City CI1609 Claimant vehicle struck median divider 1/18/2016 2/2/2016 2/8/2016

21 Tensar International Corporation Barstow BW1614 Breach of contract 10/16/2014 2/8/2016 2/8/2016

22 Silva, Anabel Banning BA1614 Water main failure 2/4/2016 2/8/2016 2/9/2016

23 Southern California Edison Barstow BW1615 Contractor struck claimant's underground vault 6/3/2015 10/29/2015 2/10/2016

24 Vaca, Charlotte et al. Banning BA1615 In‐custody death 8/13/2015 2/8/2016 2/10/2016

25 Broadey, Audley Hesperia HS1627 Claimant vehicle struck pothole 12/12/2015 2/1/2016 2/12/2016

26 Wood, Jessica et al. La Mesa LM1624 Tree fell onto the claimant vehicle 1/31/2016 2/16/2016 2/16/2016

27 Electrend Inc., DBA Creekside Gas Murrieta MU1622 City vehicle drove away with gas pump nozzle in vehicle 12/18/2015 2/11/2016 2/16/2016

28 Osaki, Angelica et al. La Mesa LM1625 False arrest of mother and illegal seizure of minor child 8/22/2015 2/17/2016 2/17/2016

29 Riverside County Transportation Commission et al. Moreno Valley MV1655 Challenge of city's adoption of three (3) initiative measures 11/24/2015 2/19/2016 2/22/2016

30 Faycurry, Dina Victorville VI1609 Claimant tripped over irregularity at concrete and a/c transition and fell 8/3/2015 1/27/2016 2/22/2016

31 Victoria Fire & Casualty Company Victorville VI1610 City vehicle backed into claimant vehicle 9/17/2015 1/4/2016 2/22/2016

32 Casitas Del Valle Apts. Moreno Valley MV1616 Excessive rainfall caused flooding and property damage 7/19/2015 2/19/2016 2/22/2016

33 Rasmussen, Roberta et al. Moreno Valley MV1647 Claimant vehicle struck pothole 1/6/2016 2/22/2016 2/22/2016

34 Magana, Anthony La Mesa LM1626 Police lost personal property 2/7/2016 2/23/2016 2/23/2016

35 Mifflin, Marie Sunline Transit TS1617 Bus braked abruptly and claimant struck seat with knee 12/29/2015 2/22/2016 2/23/2016

36 Center for Community Action and Environmental Justice Perris PK1615 City violated CEQA 1/12/2016 2/23/2016 2/24/2016

37 Center for Community Action and Environmental Justice Perris PK1616 City violated CEQA 1/12/2016 2/23/2016 2/24/2016

38 Sklar, Karyn La Mesa LM1627 Tree roots damaged driveway 2/12/2016 2/25/2016 2/25/2016

39 Morgan, Sarah Blythe BT1607 Rock kicked up by vehicle struck claimant vehicle 2/19/2016 2/24/2016 2/25/2016

40 Midfirst Bank, its successors or assigns Jurupa Valley JV1612 Declaratory reliefs and reformation of Grant Deed; as Quiet Title 2/22/2016 2/22/2016 2/26/2016

41 Guerra, Matthew et al. Hesperia HS1412 MV v. M/C Traffic Collision ‐ Dangerous Condition 10/30/2013 2/18/2016 2/26/2016

42 Mayer, Robert et al. Murrieta MU1623 Land subsidence caused damage to block wall 2/22/2016 2/22/2016 2/29/2016

43 Fosgett, Gregg Murrieta MU1624 Police damaged computer screen 12/18/2015 2/22/2016 2/26/2016

44 Weiss, Allen La Mesa LM1628 Motor vehicle struck claimant tree 1/19/2016 2/29/2016 2/29/2016

45 Balloon, Shelly La Mesa LM1629 During rain event, claimant vehicle damaged 1/4/2016 2/29/2016 2/29/2016

Page 14 of 15

PERMAClaims Received ‐ March 2016

Claim PERMA# Claimant Member Number Description Date of Loss Claim Filed Received

1 Mardan Transportation, LLC. et al. VVTA VT1502 Bus rear‐ended Claimant vehicle 6/2/2014 2/23/2016 2/25/2016

2 Johnson, Betty La Mesa LM1630 City vehicle damaged claimant's walker 2/3/2016 3/1/2016 3/1/2016

3 Valencia, Anita Barstow BW1616 Claimant stepped into uncovered meter box and fell 2/3/2016 2/16/2016 3/1/2016

4 Granillo, Linda Cathedral City CI1610 Police damaged claimant fence 1/21/2016 3/2/2016 3/2/2016

5 Youngblood, Richard Banning BA1616 City employee opened door into claimant vehicle 2/6/2016 3/2/2016 3/3/2016

6 Pettit, Thomas Desert Hot Springs DH1608 Claimant vehicle struck post for speed limit sign 9/4/2015 3/3/2016 3/7/2016

7 Alonso, Federico Banning BA1614 Water main failure 1/29/2016 3/3/2016 3/4/2016

8 Rosa, Joseph La Mesa LM1631 City vehicle backed into claimant vehicle 3/1/2016 3/4/2016 3/7/2016

9 Denhem, Ramsey Moreno Valley MV1656 Claimant vehicle struck pothole 3/6/2016 3/7/2016 3/7/2016

10 Paylor, Earline Murrieta MU1623 Land subsidence, or slippage, caused damage to block wall 2/22/2016 2/29/2016 3/7/2016

11 Kee, Catherine Murrieta MU1625 City vehicle backed into claimant vehicle 12/21/2015 2/26/2016 3/7/2016

12 Barnes, Carol Murrieta MU1626 Tree roots damaged claimants' property 2/24/2016 2/29/2016 3/7/2016

13 Smith, Christine et al. Murrieta MU1627 Tree roots damaged claimants' property 2/29/2016 2/29/2016 3/7/2016

14 Morgan, Jack Sunline Transit TS1618 Bus struck claimant 10/5/2015 3/8/2016 3/8/2016

15 Crestline Sanitation District et al. Hesperia HS1628 Challenge of City's approval of project & certification of EIR 1/27/2016 2/25/2016 3/8/2016

16 Goldkorn, Ruthee Moreno Valley MV1657 Conference Center is not ADA compliant 3/5/2016 3/9/2016 3/9/2016

17 Borja, Mike et al. Adelanto AD1607 Wrongful termination 12/1/2014 3/10/2016 3/10/2016

18 Vanderwaal, Michael San Jacinto JS1608 City vehicle pulled from stop sign and was struck by claimant motorcycle 2/25/2016 3/10/2016 3/10/2016

19 Reyes, Hector VVTA VT1602 Bus pulled from stop sign and was struck by claimant vehicle 10/8/2015 3/10/2016 3/14/2016

20 Agenbroad, LeRoy La Mesa LM1632 Tree fell onto and damaged claimant property 2/5/2016 3/14/2016 3/14/2016

21 McDermott (Chabot), Francine Blythe BT1608 Police conspired with school district 10/9/2015 3/9/2016 3/15/2016

22 Sun City Palm Desert Community Association Sunline Transit TS1619 Bus struck gate arm 1/15/2016 3/15/2016 3/16/2016

23 Acosta, Samuel Murrieta MU1628 Teacher head butted student 9/22/2015 3/15/2016 3/16/2016

24 Gandolfi, Jodie Jurupa Valley JV1613 Claimant vehicle damaged in construction zone ‐ no warning signs 1/27/2016 3/18/2016 3/21/2016

25 Covarrubias, Richard Stanton NS1605 Claimant riding bicycle and struck object on sidewalk 2/15/2016 3/17/2016 3/21/2016

26 Dahlum, Jonathan Moreno Valley MV1658 Claimant vehicle struck valley gutter and was damaged 3/14/2016 3/21/2016 3/22/2016

27 Marin Jr., Oscar La Mesa LM1633 Tree roots damaged claimant property 3/11/2016 3/23/2016 3/23/2016

28 Vick, Toya Moreno Valley MV1659 Police forcibly entered dwelling and damaged doors 3/17/2016 3/28/2016 3/29/2016

29 Martin, Michael Barstow BW1617 Unlawful search and seizure, and false arrest 9/24/2015 3/24/2016 3/30/2016

30 Henderson, Linda Desert Hot Springs DH1609 Motor Vehicle v. pedestrian traffic collision 10/7/2015 3/29/2016 3/30/2016

31 Johnson, Carolyn Banning BA1618 Claimant vehicle struck pothole 3/26/2016 3/29/2016 3/31/2016

Page 15 of 15



ACTION / DISCUSSION ITEMS

AGENDA ITEM 7A: American Technologies, Inc. (ATI) - Presentation


RECOMMENDATION:Presentation by Cindy Helmstead, Regional Account Executive for American Technologies,Inc. (ATI).


BACKGROUND & OVERVIEW:American Technologies, Inc. (ATI) is a full-service restoration, environmental andreconstruction company. Cindy Helmstead, Regional Account Executive for AmericanTechnologies, Inc. (ATI) will present at the meeting the services provided by ATI and theadvantages of an Emergency Response Agreement.

ATI offers a turnkey approach, including full-service from start to finish, and constantcommunication with a project manager throughout the process. Institute of Inspection,Cleaning and Restoration Certification (IICRC) technicians are trained to handle a full rangeof restoration challenges and are accustomed to working in sensitive environments.

ATI has 15 branch offices strategically located throughout the U.S., (4 in southernCalifornia: Orange, San Diego, Riverside, and Los Angeles) and are poised to respondswiftly to an emergency in any region – 24 hours a day, seven days a week.

Services include: C Catastrophe responseC Construction – including cabinetry and historic preservationC Environmental remediation – asbestos, mold, lead biohazards C Contents – pack-out, cleaning and restorationC Fire and smoke damage

C Water damage C High-tech solutions – document and electronics drying, thermal imaging

Emergency Response AgreementAn Emergency Response Agreement (ERA) is a disaster preparedness plan designed tohelp property owners and managers expedite an effective recovery and minimize businessinterruption after a disaster. This plan details how a disaster will be handled before ithappens. It will identify particular business needs, spell out specific recovery proceduresthat will be completed by ATI and establish a pre-determined agreement for recoveryservices. With an ERA in place a single phone call to one of the ATI offices will activatean immediate emergency response to start the recovery process.

A representative from ATI will meet with the agency to understand business needs andconcerns. They will then assist the agency in completing a comprehensive businessevaluation and action plan. Finally, both ATI and the agency complete a signed agreementspelling out each other’s duties in the event of a disaster.

REFERENCE MATERIAL ATTACHED:None.

Page -2-




AGENDA ITEM 7B: Pension Funding Considerations

PREPARED BY: Michael CatonFinancial Analyst

RECOMMENDATION:Approve paying 100% of PERMA’s unfunded pension liability balance of $643,221.

FISCAL IMPLICATIONS:Per the most recent CalPERS valuation report (attached), PERMA’s unfunded pension liabilityis estimated to be $643,221 at June 30, 2016 (see page 8 of the attached report).

CalPERS charges 7.5%, its estimated earnings rate, and based on the current amortizationschedule, paying off the unfunded liability will require total payments of $1,308,471 of which$665,250 is interest (see page 9 of the attached report).

The weighted average rate of return for PERMA investments is 1.42% at March 31, 2016.

The payment of $643,221 by June 30, 2016 would save the organization a considerableamount in interest and also decrease the 2016/17 employer contribution rate by approximately7.697% or $39,092.

There is no impact to PERMA’s net position as PERMA restated its beginning net position asof July 1, 2014 by $663,492 for pension obligations.

BACKGROUND & OVERVIEW:Governmental Accounting Standards Board (GASB) Statement 68, which changed the waypension assets, liabilities and expenses are recorded and disclosed, was implemented in theFinancial Statements for the year ended June 30, 2015. Basically, the fair market value of theassets set aside to pay pensions and the actuarial estimate of pension liabilities are nowrecorded on the Statement of Net Position (balance sheet) instead of being disclosed in afootnote. PERMA restated its beginning net position as of July 1, 2014 by $663,492 forpension obligations. Program year equity was adjusted for this restatement, and $66,349 was equally deducted from program years 2004/05 to 2013/14 (10 years).

CalPERS valuation report for 2014, the most recent year, projects the unfunded liability to be$643,221 at June 30, 2016. There are several options to pay off this liability - all theassumptions include an implied interest rate on the unfunded liability of 7.5%:

• Make the minimum required payment according to CalPERS Board policy, whichamortizes the amount over 30 years with a 5 year ramp up in contribution; the totalpaid would be $1,308,471 at an interest cost of $665,250. The required 2016/17payment is $39,092 and the subsequent projected years payments for 2017/18through 2021/22 are $46,594, $54,511, $62,861, $66,627, $71,043, respectively.

• Amortize the unfunded liability assuming a fresh start over a shorter period withlevel rate payments that increase by 3% for each year into the future. CalPERSprovided two scenarios - 15 years and 20 years. For 20 years, the total paidwould be $1,305,004 with an interest cost of $661,784, which saves $3,467. Thefirst payment would be $58,964. For 15 years, the total paid would be $1,096,662with an interest cost of $453,441, which saves $211,810. The first payment wouldbe $48,567.

• Make a one-time lump sum payment, and amortize the balance over the currentor shorter period.

We can select a shorter amortization period or make a lump sum payment, but once we pickan amortization period we have to adhere to it.

Given the interest rates of today and the foreseeable future, a lump sum payment of theunfunded liability would save the organization a considerable amount of interest given thatCalPERS is using an assumed rate of 7.5% and PERMA’s current weighted average rate ofreturn is 1.42%. Additionally, the payoff of the unfunded liability would reduce the 2016/17employer contribution rate by approximately 7.697% or $39,092.

Therefore, staff recommends a lump sum payment of 100% of the unfunded liability bemade. Unfortunately, the CalPERS actuaries expect to see more unfunded liability generatednext valuation because of substandard investment return, so the balance may never be100% paid off.

Pursuant to the requirements of GASB 68, the June 30, 2016 Net Pension Liability reflectedin the financial statements will have a measurement date of June 30, 2015. Therefore, at June 30, 2016, the payoff payment subsequent to the measurement date would be recordedas a Deferred Outflow of Resources rather than being included in the pension plan assets,which reduces the Net Pension Liability. The subsequent year’s measurement (for FY2016/17) will include the payment in the calculation of the pension plan’s assets and willreduce the Net Pension Liability accordingly.

Page -2-

REFERENCE MATERIALS ATTACHED:Statement of Net Position - June 30, 2015 and 2014CalPERS Actuarial Valuation as of June 30, 2014

Page -3-

PUBLIC ENTITY RISK MANAGEMENT AUTHORITY

STATEMENT OF NET POSITION

June 30, 2015 and 2014

2015 2014

ASSETS Current assets: Cash and cash equivalents (Note 2) $ 5,117,096 $ 6,520,511 Accounts receivable 920,549 978,632 Member receivable 90,480 19,328

Interest receivable 122,189 120,355 Prepaid expenses 41,076 42,915 Deposit with others 507 551 Investments, maturing within one year (Note 2) 500,775 2,079,268 Total current assets 6,792,672 9,761,560 Non-current assets: Investments with maturities in excess of one year (Note 2) 32,838,930 27,676,394 Capital assets, net of accumulated depreciation (Note 3) 844,194 894,787

Total non-current assets 33,683,124 28,571,181

Total assets 40,475,796 38,332,741 DEFERRED OUTFLOWS OF RESOURCES Related to pensions (Note 6) 83,195 -

LIABILITIES Current liabilities: Accounts payable 69,367 118,640 Pre-litigation defense 4,446 4,446 Property valuation 8,484 43,484 Compensated absences 52,369 58,999 Member deposits 13,264,825 12,294,275 Current portion of unpaid claims and claim adjustment

expenses (Note 4) 2,280,000 2,480,000 Total current liabilities 15,679,491 14,999,844 Non-current liabilities: Other payable - 42,233 Other post employment benefits (Note 7) 50,185 38,660 Net pension liability (Note 6) 542,415 - Unpaid claims and claim adjustment expenses (Note 4) 5,820,046 4,611,076

Total non-current liabilities 6,412,646 4,691,969 Total liabilities 22,092,137 19,691,813 DEFERRED INFLOWS OF RESOURCES Related to pensions (Note 6) 187,676 -

NET POSITION Net position (Note 5): Net investment in capital assets 844,194 894,787 Unrestricted 17,434,984 17,746,141

Total net position $ 18,279,178 $ 18,640,928

See accompanying notes to basic financial statements.

24

ACTUARIAL VALUATION as of June 30, 2014

for the MISCELLANEOUS PLAN

of the PUBLIC ENTITY RISK MANAGEMENT

AUTHORITY (CalPERS ID: 7249864813)

REQUIRED CONTRIBUTIONS

FOR FISCAL YEAR July 1, 2016 - June 30, 2017

TABLE OF CONTENTS

SECTION 1 – PLAN SPECIFIC INFORMATION

SECTION 2 – RISK POOL ACTUARIAL VALUATION INFORMATION

(CY) FIN PROCESS CONTROL ID: 468480 (PY) FIN PROCESS CONTROL ID: 433258 REPORT ID: 92145

Section 1

C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M

Plan Specific Information

for the MISCELLANEOUS PLAN

of the PUBLIC ENTITY RISK MANAGEMENT

AUTHORITY

(CalPERS ID: 7249864813) (Rate Plan: 3072)

TABLE OF CONTENTS

ACTUARIAL CERTIFICATION 1

HIGHLIGHTS AND EXECUTIVE SUMMARY

INTRODUCTION 3

PURPOSE OF SECTION 1 3

REQUIRED EMPLOYER CONTRIBUTION 4

PLAN’S FUNDED STATUS 5

PROJECTED EMPLOYER CONTRIBUTIONS 5

ASSETS AND LIABILITIES

ALLOCATION OF PLAN’S SHARE OF POOL’S EXPERIENCE/ASSUMPTION CHANGE 7

DEVELOPMENT OF PLAN’S SHARE OF POOL’S MVA 7

SCHEDULE OF PLAN’S SIDE FUND & OTHER AMORTIZATION BASES 8

ALTERNATE AMORTIZATION SCHEDULES 9

FUNDING HISTORY 9

RISK ANALYSIS

VOLATILITY RATIOS 12

ANALYSIS OF FUTURE INVESTMENT RETURN SCENARIOS 13

ANALYSIS OF DISCOUNT RATE SENSITIVITY 14

HYPOTHETICAL TERMINATION LIABILITY 15

PARTICIPANT DATA 16

LIST OF CLASS 1 BENEFIT PROVISIONS 16

PLAN’S MAJOR BENEFIT OPTIONS 18

CALPERS ACTUARIAL VALUATION - June 30, 2014 MISCELLANEOUS PLAN OF THE PUBLIC ENTITY RISK MANAGEMENT AUTHORITY

CalPERS ID: 7249864813

Rate Plan belonging to the Miscellaneous Risk Pool Page 1

ACTUARIAL CERTIFICATION

Section 1 of this report is based on the member and financial data contained in our records as of June 30, 2014 which was provided by your agency and the benefit provisions under your contract with CalPERS. Section 2 of this report is based on the member and financial data as of June 30, 2014 provided by employers participating in the Miscellaneous Risk Pool to which your plan belongs and benefit provisions under the CalPERS contracts for those agencies. As set forth in Section 2 of this report, the Pool Actuary has certified that, in their opinion, the valuation of the Risk Pool containing your MISCELLANEOUS PLAN has been performed in accordance with generally accepted actuarial principles consistent with standards of practice prescribed by the Actuarial Standards Board, and that the assumptions and methods are internally consistent and reasonable for the Risk Pool as of the date of this valuation and as prescribed by the CalPERS Board of Administration according to provisions set forth in the California Public Employees’ Retirement Law. Having relied upon the information set forth in Section 2 of this report and based on the census and benefit

provision information for your plan, it is my opinion as your Plan Actuary that the Side Fund and other Unfunded Accrued Liability bases as of June 30, 2014 and employer contribution as of July 1, 2016, have been properly and accurately determined in accordance with the principles and standards stated above. The undersigned is an actuary for CalPERS, who is a member of both the American Academy of Actuaries and Society of Actuaries and meets the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein.

TODD TAUZER, FSA, CERA, MAAA

Senior Pension Actuary, CalPERS Plan Actuary

HIGHLIGHTS AND EXECUTIVE SUMMARY

INTRODUCTION

PURPOSE OF SECTION 1

REQUIRED EMPLOYER CONTRIBUTION

PLAN’S FUNDED STATUS

PROJECTED CONTRIBUTIONS



Rate Plan belonging to the Miscellaneous Risk Pool Page

3

Introduction

This report presents the results of the June 30, 2014 actuarial valuation of the MISCELLANEOUS PLAN of the PUBLIC ENTITY RISK MANAGEMENT AUTHORITY of the California Public Employees’ Retirement System (CalPERS). This actuarial valuation sets the Fiscal Year 2016-17 required employer contributions. This actuarial valuation includes Board adopted changes to the demographic assumptions based on the most recent experience study report. The most significant of these is the improvement in post- retirement mortality acknowledging the greater life expectancies we are seeing in our membership and expected continued improvements. The actuarial assumptions and methods used in CalPERS public agency valuations are approved by the Board of Administration upon the recommendation of the Chief Actuary. The individual plan actuary whose signature appears in the actuarial certification in this report does not set plan specific actuarial assumptions. Effective with the 2014 actuarial valuation, Governmental Accounting Standards Board Statement No. 27 financial reporting information is no longer provided in CalPERS annual actuarial valuation reports. GASB 27 has been replaced with GASB 68 for financial statement reporting purposes. CalPERS is providing separate accounting valuation reports on a fee for service basis for our public agency employers. More details on GASB 68 and instructions for ordering your GASB 68 report are available on our website.

Purpose of Section 1

This section 1 report for the MISCELLANEOUS PLAN of the PUBLIC ENTITY RISK MANAGEMENT AUTHORITY of the California Public Employees’ Retirement System (CalPERS) was prepared by the Plan Actuary in order to: Set forth the assets and accrued liabilities of this plan as of June 30, 2014; Determine the required employer contribution for this plan for the Fiscal Year July 1, 2016 through June

30, 2017; and Provide actuarial information as of June 30, 2014 to the CalPERS Board of Administration and other

interested parties.

The pension funding information presented in this report should not be used in financial reports subject to Governmental Accounting Standards Board (GASB) Statement Number 68 for a Cost Sharing Employer Defined Benefit Pension Plan. A separate accounting valuation report for such purposes is available from CalPERS and details for ordering are available on our website. The use of this report for any other purposes may be inappropriate. In particular, this report does not contain information applicable to alternative benefit costs. The employer should contact their actuary before disseminating any portion of this report for any reason that is not explicitly described above. California Actuarial Advisory Panel Recommendations This report includes all the basic disclosure elements as described in the Model Disclosure Elements for Actuarial Valuation Reports recommended in 2011 by the California Actuarial Advisory Panel (CAAP), with the exception of including the original base amounts of the various components of the unfunded liability in the Schedule of Amortization Bases shown on page 8.

Additionally, this report includes the following “Enhanced Risk Disclosures” also recommended by the CAAP in the Model Disclosure Elements document:

A “Deterministic Stress Test,” projecting future results under different investment income scenarios

A “Sensitivity Analysis,” showing the impact on current valuation results using a 1 percent plus or minus change in the discount rate.

CALPERS ACTUARIAL VALUATION - June 30, 2014 MISCELLANEOUS PLAN OF THE PUBLIC ENTITY RISK MANAGEMENT AUTHORITY CalPERS ID: 7249864813


4

Required Employer Contribution

Fiscal Year Fiscal Year

Actuarially Determined Employer Contributions: 2015-161 2016-17

Employer Contributions (in Projected Dollars)

Plan’s Employer Normal Cost $ 60,325 $ 63,123

Plan’s Payment on Amortization Bases 34,012 39,0922

Total Employer Contribution $ 94,337 $ 102,215

Projected Payroll for the Contribution fiscal year $ 503,046 $ 507,872

Required Employer Contributions (Percentage of Payroll)

Pool’s Base Employer Normal Cost 10.298% 11.008%

Surcharge for Class 1 Benefits3

a) FAC 1 0.660% 0.626%

b) PRSA 1.034% 0.795%

Phase out of Normal Cost Difference4 0.000% 0.000%

Pools Expected Employee Contribution for Formula 7.947% 7.949%

Plan’s Total Normal Cost 19.939% 20.378%

Plan’s Employee Contribution Rate 7.947% 7.949%

Employer Normal Cost Rate 11.992% 12.429%

Required Employer Contribution for Fiscal Year 2016-17

Employer Normal Cost Rate5 12.429%

Plus Monthly Employer Dollar UAL Payment6 $ 3,257.70

Annual Lump Sum Prepayment Option $ 37,704

For Fiscal Year 2016-17 the total minimum required employer contribution is the sum of the Plan’s Employer Normal Cost Rate (expressed as a percentage of payroll) plus the Employer Unfunded Accrued Liability (UAL) Contribution Amount (in dollars). Whereas in prior years it was possible to prepay total employer contributions for the fiscal year, beginning with Fiscal Year 2015-16 and beyond, only the UAL portion of the employer contribution can be prepaid. Late payments will accrue interest at an annual rate of 10 percent.

Plan Normal Cost contributions will be made as part of the payroll reporting process. As a percentage of projected payroll your UAL contribution is 7.697 percent for a total Employer Contribution Rate of 20.126 percent.

1 The results shown for Fiscal Year 2015-16 reflect the prior year valuation and do not reflect any lump sum payment, side fund payoff or rate adjustment made after annual valuation report is completed.

2 The Plan’s Payment on Amortization Bases reflects the sum of all UAL amortization bases including the Plan’s Side Fund (where applicable).

3 Section 2 of this report contains a list of Class 1 benefits and corresponding surcharges for each benefit.

4 Risk pooling was implemented for most plans as of June 30, 2003. The normal cost difference was scheduled to be phased out over a five year period. The phase out of normal cost difference is 100 percent for the first year of pooling, and is incrementally reduced by 20 percent of the original normal cost difference for each subsequent year.

5 The minimum employer contribution under PEPRA is the greater of the required employer contribution or the total employer normal cost.

6 The Plan’s Payment on Amortization Bases Contribution amount for Fiscal Year 2016-17 will be billed as a level dollar amount monthly over the course of the year. Lump sum payments may be made through my|CalPERS. If you would like to prepay the entire Annual Payment toward your Plan’s Unfunded Accrued Liability, you can submit the Annual Lump Sum Prepayment amount against the July Unfunded Accrued Liability receivable. The Annual Lump Sum Prepayment must be received in full on or before July 31. If there is contractual cost sharing or other change, this amount will change. § 20572 of the Public Employees’ Retirement Law assesses interest at an annual rate of 10 percent if a

contracting agency fails to remit the required contributions when due.




5

Plan’s Funded Status

June 30, 2013 June 30, 2014

1. Present Value of Projected Benefits (PVB) $ 3,444,358 $ 3,763,346

2. Entry Age Normal Accrued Liability 2,868,321 3,209,895

3. Plan’s Market Value of Assets (MVA) 2,200,312 2,596,832

4. Unfunded Liability [(2) - (3)] 668,009 613,063

5. Funded Ratio [(3) / (2)] 76.7% 80.9%

Projected Employer Contributions

The estimated rate for 2017-18 is based on a projection of the most recent information we have available,

including an estimated 2.4 percent investment return for Fiscal Year 2014-15.

The table below shows projected employer contribution rates (before cost sharing) for the next five fiscal years, assuming CalPERS earns 2.4% for Fiscal Year 2014-15 and 7.50 percent every fiscal year thereafter, and assuming that all other actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur between now and the beginning of the projection period.

Required Contribution

Projected Future Employer Contribution Rates

2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Normal Cost % 12.429% 12.4% 12.4% 12.4% 12.4% 12.4%

UAL $ $39,092 $46,594 $54,511 $62,861 $66,627 $71,043

ASSETS AND LIABILITIES

DEVELOPMENT OF PLAN’S SHARE OF POOL’S EXPERIENCE/ASSUMPTION

CHANGE

DEVELOPMENT OF PLAN’S SHARE OF POOL’S MVA

SCHEDULE OF PLAN’S SIDE FUND & OTHER AMORTIZATION BASES

ALTERNATIVE AMORTIZATION SCHEDULES

FUNDING HISTORY



7

Allocation of Plan’s Share of Pool’s

Experience/Assumption Change

It is the policy of the CalPERS to ensure equity within the risk pools by allocating the pool’s experience gains/losses and assumption changes in a manner that treats each employer fairly and that maintains benefit security for the members of the System while minimizing substantial variations in employer contributions. For purposes of allocating the pool’s experience gains/losses and impact of assumption changes to all the individual plans within the pool, an individual plan’s share is allocated as follows:

1. Plan’s Accrued Liability $ 3,209,895

2. Projected UAL balance at 6/30/14 694,375

3. Pool’s Accrued Liability $ 13,137,020,035

4. Sum of Pool’s Individual Plan UAL Balances at 6/30/14 2,787,798,208 5. Pool’s 2013/14 Investment & Asset (Gain)/Loss (915,890,797)

6. Pool’s 2013/14 Other (Gain)/Loss 1,024,915

7. Plan’s Share of Pool’s Asset (Gain)/Loss [(1)-(2)]/[(3)-(4)] * (5) (222,620)

8. Plan’s Share of Pool’s Other (Gain)/Loss [(1)]/[(3)] * (6) 250

9. Plan’s New (Gain)/Loss as of 6/30/2014 [(7)+(8)] $ (222,369)

10. Increase in Pool’s Accrued Liability due to Change in Assumptions 577,299,719

11. Plan’s Share of Pool’s Change in Assumptions [(1)]/[(3)] * (10) $ 141,057

Development of the Plan’s Share of Pool’s Market

Value of Assets

1. Plan’s Accrued Liability $ 3,209,895

2. Plan’s UAL $ 613,063

3. Plan’s Share of Pool’s MVA (1)-(2) $ 2,596,832



8

Schedule of Plan’s Side Fund and Other Amortization Bases

There is a two-year lag between the Valuation Date and the Contribution Fiscal Year. The assets, liabilities and funded status of the plan are measured as of the valuation date; June 30, 2014. The employer contribution determined by the valuation is for the fiscal year beginning two years after the valuation date; Fiscal Year 2016-17. This two-year lag is necessary due to the amount of time needed to extract and test the membership and financial data, and due to the need to provide public agencies with their employer contribution well in advance of the start of the fiscal year. The Unfunded Accrued Liability (UAL) is used to determine the employer contribution and therefore must be rolled forward two years from the valuation date to the first day of the fiscal year for which the contribution is being determined. The UAL is rolled forward each year by subtracting the Payment on the UAL for the fiscal year and adjusting for interest.

Amounts for Fiscal 2016-17

Reason for Base Date

Established Amortization

Period Balance 6/30/14

Payment 2014-15

Balance 6/30/15

Payment 2015-16

Balance 6/30/16

Scheduled Payment

for 2016-17

SHARE OF PRE-2013 POOL UAL 06/30/13 20 $407,109 $31,379 $405,108 $29,669 $404,730 $30,559

ASSET (GAIN)/LOSS 06/30/13 29 $286,182 $0 $307,646 $4,327 $326,233 $8,914

NON-ASSET (GAIN)/LOSS 06/30/13 29 $1,084 $0 $1,165 $16 $1,236 $34

ASSET (GAIN)/LOSS 06/30/14 30 $(222,620) $0 $(239,316) $0 $(257,265) $(3,618)

NON-ASSET (GAIN)/LOSS 06/30/14 30 $250 $0 $269 $0 $289 $4

ASSUMPTION CHANGE 06/30/14 20 $141,057 $(2,286) $154,006 $(2,354) $167,998 $3,200

TOTAL $613,062 $29,093 $628,878 $31,658 $643,221 $39,093

Your plan’s allocated share of the risk pool’s pre-2013 UAL is based on your plan’s accrued liability and is amortized over the average amortization period of the combined existing amortization bases prior to June 30, 2013. The payment for Fiscal Year 2014-15 was allocated based on your plan’s payroll. The (gain)/loss bases are your plan’s allocated share of the risk pool’s gain/loss for the fiscal year as disclosed on the previous page. These (gain)/loss bases will be amortized according to Board policy over 30 years with a 5-year ramp-up.

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9

Alternate Amortization Schedules

The amortization schedule shown on the previous page shows the minimum contributions required according to CalPERS amortization policy. There has been considerable interest from many agencies in paying off these unfunded accrued liabilities sooner and the possible savings in doing so. As a result, we have provided alternate amortization schedules to help analyze your current amortization schedule and illustrate the advantages of accelerating unfunded liability payments towards your plan’s unfunded liability of $643,221 as of June 30, 2016, which will require total payments of $1,308,471. Shown below are the level rate payments required to amortize your plan's unfunded liability assuming a fresh start over the various periods noted. Note that the payments under each scenario would increase by 3 percent for each year into the future.

Current CalPERS Board policy calls for lump sum contributions in excess of the required employer contribution shall first be used to eliminate the side fund, if applicable, and then the plan’s share of the pool’s unfunded accrued liability. Please contact your plan actuary before making such a payment to ensure that the payment is applied correctly.

Funding History

The Funding History below shows the actuarial accrued liability, the plan’s share of the pool’s market value of assets, plan’s share of the pool’s unfunded liability, funded ratio and the annual covered payroll.

Valuation

Date

Accrued Liability

(AL)

Share of Pool’s Market Value of

Assets (MVA)

Plan’s Share of Pool’s Unfunded

Liability

Funded Ratio

Annual Covered Payroll

06/30/2011 $ 2,295,629 $ 1,639,685 $ 655,944 71.4% $ 442,126

06/30/2012 2,672,552 1,822,784 849,768 68.2% 452,469

06/30/2013 2,868,321 2,200,312 668,009 76.7% 460,358

06/30/2014 3,209,895 2,596,832 613,063 80.9% 464,775

Level Rate

Period 2016-17 Payment

Total Payments

Total Interest

Savings

20 $48,567 $1,305,004 $661,784 $3,467

15 $58,964 $1,096,662 $453,441 $211,810

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RISK ANALYSIS

VOLATILITY RATIOS

ANALYSIS OF FUTURE INVESTMENT RETURN SCENARIOS

ANALYSIS OF DISCOUNT RATE SENSITIVITY

HYPOTHETICAL TERMINATION LIABILITY



12

Volatility Ratios

The actuarial calculations supplied in this communication are based on a number of assumptions about very long-term demographic and economic behavior. Unless these assumptions (terminations, deaths, disabilities, retirements, salary growth, and investment return) are exactly realized each year, there will be differences on a year-to-year basis. The year-to-year differences between actual experience and the assumptions are called actuarial gains and losses and serve to lower or raise the employer’s rates from one year to the next. Therefore, the rates will inevitably fluctuate, especially due to the ups and downs of investment returns. Asset Volatility Ratio (AVR) Plans that have higher asset to payroll ratios produce more volatile employer rates due to investment return. For example, a plan with an asset to payroll ratio of 8 may experience twice the contribution volatility due to investment return volatility, than a plan with an asset to payroll ratio of 4. Below we have shown your asset volatility ratio, a measure of the plan’s current rate volatility. It should be noted that this

ratio is a measure of the current situation. It increases over time but generally tends to stabilize as the plan matures. Liability Volatility Ratio (LVR) Plans that have higher liability to payroll ratios produce more volatile employer rates due to investment return and changes in liability. For example, a plan with a liability to payroll ratio of 8 is expected to have twice the contribution volatility of a plan with a liability to payroll ratio of 4. The liability volatility ratio is also included in the table below. It should be noted that this ratio indicates a longer-term potential for contribution volatility and the asset volatility ratio, described above, will tend to move closer to this ratio as the plan matures.

Rate Volatility As of June 30, 2014

1. Market Value of Assets $ 2,596,832

2. Payroll 464,775

3. Asset Volatility Ratio (AVR = 1. / 2.) 5.6

4. Accrued Liability $ 3,209,895

5. Liability Volatility Ratio (LVR = 4. / 2.) 6.9




13

Analysis of Future Investment Return Scenarios

The investment return for Fiscal Year 2014-15 was announced July 14, 2015. The investment return in Fiscal Year 2014-15 is 2.4 percent before administrative expenses. For purposes of projecting future employer rates, we are assuming a 2.4 percent investment return for Fiscal Year 2014-15.

The investment return realized during a fiscal year first affects the contribution for the fiscal year two years later. Specifically, the investment return for 2014-15 will first be reflected in the June 30, 2015 actuarial valuation that will be used to set the 2017-18 employer contribution rates, the 2015-16 investment return will first be reflected in the June 30, 2016 actuarial valuation that will be used to set the 2018-19 employer contribution rates and so forth.

As part of this report, a sensitivity analysis was performed to determine the effects of various investment returns during fiscal years 2015-16, 2016-17 and 2017-18 on the 2018-19, 2019-20 and 2020-21 employer contributions. Once again, the projected contributions assume that all other actuarial assumptions will be realized and that no further changes to assumptions, contributions, benefits, or funding will occur.

Five different investment return scenarios were selected. The first scenario is what one would expect if the markets were to give us a 5th percentile return from

July 1, 2015 through June 30, 2018. The 5th percentile return corresponds to a -3.8 percent return for each of the 2015-16, 2016-17 and 2017-18 fiscal years.

The second scenario is what one would expect if the markets were to give us a 25th percentile return from July 1, 2015 through June 30, 2018. The 25th percentile return corresponds to a 2.8 percent return for each of the 2015-16, 2016-17 and 2017-18 fiscal years.

The third scenario assumed the return for 2015-16, 2016-17, 2017-18 would be our assumed 7.5 percent investment return which represents about a 49th percentile event.

The fourth scenario is what one would expect if the markets were to give us a 75th percentile return from July 1, 2015 through June 30, 2018. The 75th percentile return corresponds to a 12.0 percent return for each of the 2015-16, 2016-17 and 2017-18 fiscal years.

Finally, the last scenario is what one would expect if the markets were to give us a 95th percentile return from July 1, 2015 through June 30, 2018. The 95th percentile return corresponds to a 18.9 percent return for each of the 2015-16, 2016-17 and 2017-18 fiscal years.

The table below shows the estimated projected contributions and the estimated increases for your plan under the five different scenarios.

2015-18 Investment Return Scenario

Estimated Employer UAL Contribution Estimated Total

Change in Employer UAL Contribution between 2017-18

and 2020-21 2018-19 2019-20 2020-21

(3.8%) (5th percentile) $59,374 $77,538 $96,176 $49,582

2.8% (25th percentile) $56,534 $69,099 $79,458 $32,864

7.5% $54,511 $62,861 $66,627 $20,033

12.0%(75th percentile) $52,574 $56,709 $53,593 $6,999

18.9%(95th percentile) $49,604 $46,938 $0 $(46,594)

In addition to the UAL Contribution amounts shown above the estimated employer normal cost of 12.4 percent of payroll will also be payable in each of the fiscal years shown above. The projected plan normal cost is

expected to remain relatively stable over this time period.



14

Analysis of Discount Rate Sensitivity

The following analysis looks at the 2016-17 total normal cost rates and liabilities under two different discount rate scenarios. Shown below are the total normal cost rates assuming discount rates that are 1 percent lower and 1 percent higher than the current valuation discount rate. This analysis gives an indication of the potential plan impacts if the PERF were to realize investment returns of 6.50 percent or 8.50 percent over the long-term. This type of analysis gives the reader a sense of the long-term risk to the contribution rates.

Sensitivity Analysis

As of June 30, 2014 6.50% Discount Rate (-1%)

7.50% Discount Rate (assumed rate)

8.50% Discount Rate (+1%)

Plan’s Total Normal Cost 25.2% 20.4% 16.6%

Accrued Liability $3,679,722 $3,209,895 $2,821,408

Unfunded Accrued Liability $1,082,890 $613,063 $224,576



15

Hypothetical Termination Liability

The hypothetical termination liability is an estimate of the financial position of your plan if you had terminated your contract with CalPERS as of June 30, 2014. Your plan liability on a termination basis is calculated differently compared to the plan’s ongoing funding liability. For this hypothetical termination liability calculation both compensation and service are frozen as of the valuation date and no future pay increases or service accruals are included. For the Terminated Agency Pool the CalPERS Board adopted a more conservative investment policy and asset allocation strategy. Since the Terminated Agency Pool has limited funding sources due to the fact that no future employer contributions will be made, expected benefit payments are secured by risk-free assets. With this change, CalPERS increased benefit security for members while limiting its funding risk. However, this asset allocation has a lower expected rate of return than the PERF. Consequently, the lower discount rate for the Terminated Agency pool results in higher liabilities for terminated plans. The effective termination discount rate will depend on actual market rates of return for risk-free securities

on the date of termination. As market discount rates are variable the table below shows a range for the hypothetical termination liability based on the lowest and highest bond yields observed during the period from July 1, 2013 through June 30, 2015.

Valuation Date

Market Value of

Assets (MVA)

Hypothetical Termination

Liability1,2

@ 2.00%

Unfunded Termination

Liability @ 2.00%

Hypothetical Termination

Liability1,2 @ 3.75%

Unfunded Termination

Liability @ 3.75%

06/30/14 $ 2,596,832 $ 6,627,567 $ 4,030,735 $ 4,965,020 $ 2,368,188

1 The hypothetical liabilities calculated above include a 7 percent mortality contingency load in accordance with Board

policy. Other actuarial assumptions, such as wage and inflation assumptions, can be found in Appendix A.

2 The current discount rate assumption used for termination valuations is a weighted average of the 10-year and 30-year U.S. Treasury yields where the weights are based on matching asset and liability durations as of the termination date. The discount rates used in the table are based on 20-year Treasury bonds, rounded to the nearest quarter percentage point, which is a good proxy for most plans. The 20-year Treasury yield was 3.00% on June 30, 2014 and 2.90% on June 30, 2015.

In order to terminate your plan, you must first contact our Retirement Services Contract Unit to initiate a Resolution of Intent to Terminate. The completed Resolution will allow your plan actuary to give you a preliminary termination valuation with a more up-to-date estimate of your plan liabilities. CalPERS strongly advises you to consult with your plan actuary before beginning this process.




16

Participant Data

The table below shows a summary of your plan’s member data upon which this valuation is based:

June 30, 2013 June 30, 2014

Projected Payroll for Contribution Purposes $ 503,046 $ 507,872

Number of Members

Active 5 5

Transferred 0 0

Separated 3 3

Retired 5 5

List of Class 1 Benefit Provisions

One Year Final Compensation Post-Retirement Survivor Allowance

PLAN’S MAJOR BENEFIT OPTIONS

SECTION 1 – PLAN SPECIFIC INFORMATION FOR THE MISCELLANEOUS PLAN OF THE PUBLIC ENTITY RISK MANAGEMENT AUTHORITY

Plan’s Major Benefit Options

Shown below is a summary of the major optional benefits for which your agency has contracted. A description of principal standard and optional plan provisions is in Appendix B within Section 2 of this report.

Contract package

{sum_of_major_ben_1} Active Misc

Inactive Misc

Receiving Misc

Benefit Provision Benefit Formula 2.7% @ 55 2.0% @ 55

Social Security Coverage No No Full/Modified Full Full

Employee Contribution Rate 8.00% Final Average Compensation Period One Year One Year Sick Leave Credit Yes Yes Non-Industrial Disability Standard Standard

Industrial Disability No No Pre-Retirement Death Benefits

Optional Settlement 2W Yes Yes 1959 Survivor Benefit Level level 3 level 3 Special No No Alternate (firefighters) No No No

Post-Retirement Death Benefits

Lump Sum $500 $500 $500 Survivor Allowance (PRSA) Yes Yes Yes

COLA 2% 2% 2%

CalPERS Actuarial Valuation – June 30, 2014 Page 18 Rate Plan belonging to the Miscellaneous Risk Pool

Section 2

C A L I F O R N I A P U B L I C E M P L O Y E E S ’ R E T I R E M E N T S Y S T E M

Section 2 may be found on the CalPERS website

(www.calpers.ca.gov) in the Forms and

Publications section




AGENDA ITEM 7C: Personnel Rules


RECOMMENDATION:Approve the proposed changes to the Personnel Rules.

FISCAL IMPLICATIONS:The Personnel Rules were reviewed by Oliver Yee of Liebert Cassidy Whitmore, which cost$3,381.

BACKGROUND & OVERVIEW:The Personnel Rules were submitted to Liebert Cassidy Whitmore for a legal review. Thelast time the rules were reviewed by a labor attorney (Liebert Cassidy Whitmore) was 2005.

Attached are the revised Personnel Rules and below provides a summary of the changes:

1.0 GENERAL PROVISIONS - page 11.2 Applicability - removed Unclassified personnel and Volunteer and temporarypersonnel as exceptions, since rules do apply to them.

2.0 FAIR EMPLOYMENT - page 2Substantial change to entire section - replaced with comprehensive discrimination,harassment and retaliation prevention policy, since old language did not coverretaliation, nor clearly cover discrimination.

3.0 GENERAL RULES FOR AUTHORITY EMPLOYEES - page 93.3 Citizenship - changed language from citizen or legal residents to legally eligibleto work in the U.S.

3.4 Conflict of Interest - added language to strengthen outside employment conflictlanguage and approval process.

3.5 Nepotism - expanded list of relatives and improved language onaccommodations, if any.

3.6 Smoking Policy - included electronic cigarette use as a form of smoking.

3.7 Drug- and Alcohol-Free Workplace Policy - modified language to comply withConfidentiality in Medical Information Act (CMIA) and added objective factors whichcould result in requiring an employee to submit to an alcohol/drug test.

4.0 PERSONNEL ACTIONS - page 134.1 Appointments - added language to address promotional probationary employeesand the right to return to their previous position held if they do not pass probationand if the position is available (unless terminated for cause). Added language toclarify re-instated employees with good standing and within 1 year of resignation donot need to test or serve an initial probationary period.

4.4 Separation From Employment - added language stating resignation is final whenaccepted by the General Manager.

5.0 WORK SCHEDULES - page 175.1 Work Week and Working Hours - eliminated 9/80 alternative work week as anoption - no employee is on a 9/80 schedule and not a good schedule for the servicesPERMA provides its members.

5.2 Overtime - added language to address overtime worked without advancedapproval.

5.6 Attendance and Punctuality - added excessive absenteeism and tardiness aspossible causes for disciplinary action.

6.0 EMPLOYMENT DEVELOPMENT - page 206.2 Performance Reviews - replaced reference to “the grievance procedure”, sinceno procedure exists, with “any appeal process”. Performance reviews are notsubject to appeal.

8.0 BENEFITS - page 248.2 Holidays- clarified floating holidays do not carry over into subsequent years.

8.4 Sick Leave - added/changed language to comply with new Paid Sick Leave Lawwhich extends paid sick leave beyond full-time employees, address advance noticeof sick leave, certification from a physician, clarify limit of 3 days of personal leaveper fiscal year, and sick leave reinstatement.

8.5 Retirement - deleted phase-in of employee contributions since it is complete by

Page -2-

July 1, 2016. Added language to distinguish employee contributions between“Classic Employees” and “New Members” as defined by PEPRA.

9.0 LEAVE OF ABSENCE - page 319.2 Military Leaves of Absence - changed language so that military leave is simplygranted in accordance with state and federal law, since the leave requirements arestatutory and may change.

10.0 CONDUCT AND DISCIPLINE - page 3310.1.2 Disciplinary Procedure - clarified discipline procedures only apply to for causeemployees, i.e., at-will employees, may be disciplined or separated at will withoutthe disciplinary procedures.

10.3 Appeal - clarified that only for cause employees may appeal suspensions ofthree working days or more.

10.4 Discipline Appeal Hearing Procedure - added this section to detail proceduresand process involved in an appeal hearing.

11.0 DEFINITION OF TERMS - page 42Added definitions of an At-Will Employee and a For Cause Employee. Clarifieddefinitions of a Probationary Employee and a Temporary Employee as at-willemployees.

REFERENCE MATERIALS ATTACHED:Revised Personnel Rules - strikeout version

Page -3-

4265323.2 PU020-003

PERSONNEL RULES Revised

March 5, 2015 July 1, 2016

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PUBLIC ENTITY RISK MANAGEMENT AUTHORITY (PERMA) PERSONNEL RULES TABLE OF CONTENTS PAGE 1.0 GENERAL PROVISIONS

Purpose .................................................................................................................................1 Applicability ........................................................................................................................1 Responsibilities ....................................................................................................................1 Scope ....................................................................................................................................1 No Contract of Employment Created ..................................................................................1

2.0 FAIR EMPLOYMENT

Equal Employment Opportunity ..........................................................................................2 Policy Against Discriminatory Harassment .........................................................................2

3.0 GENERAL RULES FOR AUTHORITY EMPLOYEES

Political Activities ................................................................................................................4 Gifts and Gratuities ..............................................................................................................4 Citizenship ...........................................................................................................................4 Conflict of Interest ...............................................................................................................4 Nepotism ..............................................................................................................................5 Smoking Policy ....................................................................................................................5 Drug- and Alcohol-Free Workplace Policy .........................................................................5 Prohibited Conduct ..............................................................................................................5 Drug or Alcohol Testing ......................................................................................................6 Safety ...................................................................................................................................6

4.0 PERSONNEL ACTIONS

Appointments .......................................................................................................................7 Promotions ...........................................................................................................................8 Demotions ............................................................................................................................8 Separation From Employment .............................................................................................9

5.0 WORK SCHEDULES

Work Week and Working Hours .......................................................................................11 Overtime ............................................................................................................................11 Compensatory Time Off ("CTO") .....................................................................................11 Exempt Employees ............................................................................................................12 Time Sheets ........................................................................................................................12 Rest Periods .......................................................................................................................12 Meal Period ........................................................................................................................12 Attendance and Punctuality ...............................................................................................12

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PAGE 6.0 EMPLOYEE DEVELOPMENT

Training and Orientation ....................................................................................................13 Performance Reviews ........................................................................................................14

7.0 PERSONNEL RECORDS

Personnel Records ..............................................................................................................16 8.0 BENEFITS

Insurance Plans ..................................................................................................................17 Holidays .............................................................................................................................18 Vacation .............................................................................................................................18 Sick Leave ..........................................................................................................................20 Retirement ..........................................................................................................................22 Bereavement and Funeral Leave ........................................................................................22 Workers' Compensation .....................................................................................................22

9.0 LEAVES OF ABSENCE

Unpaid Leaves of Absence ................................................................................................23 Military Leaves of Absence ...............................................................................................23 Jury and Witness Duty .......................................................................................................23

10.0 CONDUCT AND DISCIPLINE

Conduct and Discipline ......................................................................................................26 Disciplinary Action ............................................................................................................27 Disciplinary Procedure.......................................................................................................28 Suspension, Reduction in Pay, Demotion, Dismissal ........................................................29 Appeal ................................................................................................................................29

11.0 DEFINITION OF TERMS ..............................................................................................30

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1.0 GENERAL PROVISIONS 1.1 Purpose The purpose of these rules and procedures is to establish systematic and uniform procedures for handling personnel matters. It shall be the duty of all Authority employees to read and be familiar with these rules, and to comply with and assist in carrying into effect the provisions of these rulesis manual and such internal management memoranda as the General Manager shall issue. 1.2 Applicability These rules establish the personnel system for the Authority for all regular full-time and part-time employees of the Authority, unless specified otherwise. These rules do not apply to the following unless specifically indicated in specific rules hereinExceptions are:

A. Unclassified personnel. BA. Members of appointive boards, commissions, and committees. BC. Persons engaged under contract to supply expert, professional, or technical

services. D. Volunteer and temporary personnel.

1.3 Responsibilities The Authority expects that its employees will:

A. Provide faithful and effective performance. B. Respect proper protocol and the normal chain of command. C. Display proper personal conduct and continuing fitness for the position. D. Not abuse the rights, privileges, and benefits provided by employment with the

Authority. E. Display courtesy and respect to the public. F. Observe proper grooming and report for work in neat, clean and appropriate

business attire. 1.4 Scope The policies, procedures, and rules incorporated herein shall not preclude the development of operating policies, procedures, and rules within specific departments of the Authority nor the development of personnel or administrative policies and procedures governing the implementation of these rules, policies, and procedures. The Authority retains the right to modify, supplement, revise, or rescind any provision of this manual without notice, as it deems appropriate in its sole and absolute discretion. 1.5 No Contract of Employment Created These rules do not create any contract of employment, express or implied, or any rights in the nature of a contract.

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2.0 EQUAL EMPLOYMENT OPPORTUNITY AND POLICY AGAINST DISCRIMINATION, HARASSMENT AND RETALIATIONFAIR EMPLOYMENT

2.1 Equal Employment Opportunity The Authority affords equal employment opportunity for all qualified employees and applicants as to all terms of employment, including compensation, hiring, training, promotion, transfer, discipline and termination. The Authority prohibits discrimination against employees or applicants for employment on the basis of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status or any other basis protected by law. Employees, volunteers, or applicants who believe they have experienced any form of employment discrimination or abusive conduct are encouraged to report the conduct immediately using the complaint procedures provided in these rules, or by contacting the U.S. Equal Employment Opportunity Commission or the California Department of Fair Employment and Housing.The Authority is an equal opportunity employer. Personnel actions will comply with all applicable laws prohibiting discrimination in employment, based on race, religious creed, color, national origin, ancestry, physical or mental disabilities where the individual is able to perform the essential functions of a job, with or without a reasonable accommodation, provided such accommodation does not impose an undue hardship on the Authority, medical condition, marital status, veteran and/or military status, sex, sexual orientation, pregnancy, age or any other category protected by law. Any technique or procedure used in recruitment and selection of employees shall be designed to measure only the job related qualifications of applicants. No recruitment or selection technique shall be used which, in the opinion of the Authority, is not justifiably linked to successful job performance. Applicants or employees who believe they have been discriminated against should report the alleged discrimination to the General Manager or President of the Authority. All complaints will be investigated as set forth in Section 2.2 below. 2.2 Policy Against Discriminationory, Harassment and Retaliation Purpose: The Authority has a strong commitment to prohibit and prevent discrimination, harassment, and retaliation in the workplace. The Authority has zero tolerance for any conduct that violates this Policy. Conduct need not arise to the level of a violation of state or federal law to violate this Policy. Instead a single act can violate this Policy and provide grounds for discipline or other appropriate sanctions. This Policy establishes a complaint procedure for investigating and resolving internal complaints. The Authority encourages all covered individuals to report, as soon as possible, any conduct that is believed to violate this Policy. Any retaliation against a person for filing a complaint or participating in the complaint resolution process is prohibited. Individuals found to be retaliating in violation of this Policy will be subject to appropriate sanction or disciplinary action up to and including termination. Covered Individuals and Scope of Policy: The individuals covered by this Policy are: applicants, employees regardless of rank or title, the Board of Directors, interns, volunteers, and contractors. This Policy applies to all terms and conditions of employment, internships, and volunteer opportunities, including, but not limited to, selection, hiring, placement, promotion, disciplinary action, layoff, recall, transfer, leave of absence, compensation, and training.

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Protected Classification: This Policy prohibits discrimination, harassment, or retaliation because: 1) of an individual's protected classification; 2) the perception that an individual has a protected classification; or 3) the individual associates with a person who has or is perceived to have a protected classification. "Protected Classification" includes race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expression, age, sexual orientation, or military and veteran status, or any other basis protected by law. Discrimination: This Policy prohibits treating individuals differently because of the individual's actual or perceived protected classification as defined in this Policy. Harassment: Harassment includes, but is not limited to, the following types of behavior that is taken because of a person's actual or perceived protected classification:

A. Speech, such as epithets, derogatory comments or slurs, and propositioning on the basis of a protected classification. This includes inappropriate comments about appearance, dress or physical features, conduct inconsistent with gender identification, or race-oriented stories and jokes.

B. Physical acts, such as assault, impeding or blocking movement, offensive touching,

or physical interference with normal work or movement. This includes pinching, grabbing, patting, propositioning, leering, or making explicit or implied job threats or promises in return for submission to physical acts.

C. Visual acts, such as derogatory posters, cartoons, emails, pictures or drawings

related to a protected classification.

D. Unwanted sexual advances, requests for sexual favors and other acts of a sexual nature, where submission is made a term or condition of employment, where submission to or rejection of the conduct is used as the basis for employment decisions, or where the conduct is intended to or actually does unreasonably interfere with an individual's work performance or create an intimidating, hostile, or offensive working environment.

E. Romantic or sexual relationships between supervisors and employees are

discouraged. There is an inherent imbalance of power and potential for exploitation in such relationships. The relationship may create an appearance of impropriety and lead to charges of favoritism by other employees. A welcome sexual relationship may change, with the result that sexual conduct that was once welcome becomes unwelcome and harassing.

Guidelines for Identifying Harassment: Harassment includes any conduct which would be unwelcome or unwanted to an individual of the recipient’s same protected classification. Use the following guidelines to determine if conduct is unwelcome or unwanted:

A. It is no defense that the recipient appears to have "consented" to the conduct at issue. A recipient may not protest for many legitimate reasons, including the need

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to avoid being insubordinate or to avoid being ostracized.

B. Simply because no one has complained about a joke, gesture, picture, physical contact, or comment does not mean that the conduct is welcome. Harassment can evolve over time. Small, isolated incidents might be tolerated up to a point. The fact that no one is complaining now does not preclude anyone from complaining if the conduct is repeated in the future.

C. Even visual, verbal, or physical conduct between two people who appear to

welcome the conduct can constitute harassment of a third person who observes the conduct or learns about the conduct later. Conduct can constitute harassment even if it is not explicitly or specifically directed at an individual.

D. Conduct can constitute harassment in violation of this Policy even if the individual

has no intention to harass. Even well-intentioned conduct can violate this Policy if the conduct is directed at, or implicates a protected classification, and if an individual of the recipient's same protected classification would find it offensive (e.g., gifts, over attention, endearing nicknames).

Retaliation: Retaliation is any adverse conduct taken because a covered individual has opposed harassment or discrimination, or has participated in the complaint and investigation process described herein. "Adverse conduct" includes but is not limited to: taking sides because an individual has reported harassment or discrimination, spreading rumors about a complaint, shunning and avoiding an individual who reports harassment or discrimination, or real or implied threats of intimidation to prevent an individual from reporting harassment or discrimination. Complaint Procedure: A covered individual who believes he or she has been harassed, discriminated against, or retaliated against should make a complaint, verbally or in writing, to any supervisor, manager, or the General Manager, without regard to any chain of command. Any supervisory or management employee who receives a harassment complaint should immediately notify the General Manager. If a covered individual believes he or she has been harassed, discriminated against, or retaliated against by the General Manager, the individual should make a complaint, verbally or in writing to the President of the Authority. Upon receiving notification of a harassment, discrimination or retaliation complaint, the General Manager or person to whom the investigation is delegated will complete and/or delegate the following steps.

A. Authorize and supervise the investigation of the complaint and/or investigate the complaint. The investigation will include interviews with: 1) the complainant; 2) the accused; and 3) other persons who have relevant knowledge concerning the allegations in the complaint.

B. Review the factual information gathered through the investigation to determine

whether the alleged conduct constitutes harassment, discrimination, or retaliation giving consideration to all factual information, the totality of the circumstances, including the nature of the conduct, and the context in which the alleged incidents occurred.

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C. Report a summary of the determination as to whether this Policy has been violated to appropriate persons, including the complainant, the alleged wrongdoer, the supervisor, and the General Manager. If discipline or sanctions are imposed, the level of discipline or sanctions will not be communicated to the complainant.

D. If conduct in violation of this Policy occurred, take or recommend to the appointing

authority prompt and effective remedial action. The remedial action will be commensurate with the severity of the offense.

E. Take reasonable steps to protect the complainant from further harassment,

discrimination, or retaliation. Proactive Approach: The Authority takes a proactive approach to potential Policy violations and will conduct an investigation if its supervisory or management employees become aware that harassment, discrimination, or retaliation may be occurring, regardless of whether the recipient or third party reports a potential violation. Option to Report to Outside Administrative Agencies: An individual has the option to report harassment, discrimination, or retaliation to the U.S. Equal Employment Opportunity Commission (EEOC) or the California Department of Fair Employment and Housing (DFEH). These administrative agencies offer legal remedies and a complaint process. The nearest offices are listed in the government section of the telephone book or employees can check the posters that are located on Authority bulletin boards for office locations and telephone numbers. Confidentiality: Every effort will be made to assure the confidentiality of complaints made under this Policy. Complete confidentiality cannot occur, however, due to the need to fully investigate and the duty to take effective remedial action. As a result, confidentiality will be maintained to the extent possible. An employee who is interviewed during the course of an investigation is prohibited from attempting to influence any potential witness while the investigation is ongoing. An employee may discuss his or her interview with a designated representative. The Authority will not disclose a completed investigation report except as it deems necessary to support a disciplinary action, to take remedial action, to defend itself in adversarial proceedings, or to comply with the law or court order. Responsibilities: A. Each non-manager or non-supervisor is responsible for:

1. Treating all individuals in the workplace or on worksites with respect and consideration.

2. Modeling behavior that conforms to this Policy. 3. Participating in periodic training.

4. Fully cooperating with the Authority's investigations by responding fully and truthfully to all questions posed during the investigation.

5. Taking no actions to influence any potential witness while the investigation is ongoing.

6. Reporting any act he or she believes in good faith constitutes harassment,

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discrimination, or retaliation as defined in this Policy, to his or her immediate supervisor, or the General Manager.

B. In addition to the responsibilities listed above, each manager and supervisor is

responsible for: 1. Informing employees of this Policy.

2. Taking all steps necessary to prevent harassment, discrimination, or retaliation from occurring, including monitoring the work environment and taking immediate appropriate action to stop potential violations, such as removing inappropriate pictures or correcting inappropriate language.

3. Receiving complaints in a fair and serious manner, and documenting steps taken to resolve complaints.

4. Following up with those who have complained to ensure that the behavior has stopped and that there are no reprisals.

5. Informing those who complain of harassment or discrimination of his or her option to contact the EEOC or DFEH regarding alleged Policy violations.

6. Assisting, advising, or consulting with employees and the General Manager regarding this Policy and complaint procedure.

7. Assisting in the investigation of complaints involving employee(s) in their departments and, if the complaint is substantiated, recommending appropriate corrective or disciplinary action in accordance with these Policies, up to and including discharge.

8. Implementing appropriate disciplinary and remedial actions. 9. Reporting potential violations of this Policy of which he or she becomes

aware, regardless of whether a complaint has been submitted. 10. Participating in periodic training and scheduling employees for training.

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As part of its commitment to equal opportunity, the Authority strictly prohibits harassment of employees in the workplace based on race, color, national origin, ancestry, religion, sex, sexual orientation, marital status, age, physical or mental disability, medical condition or any other category protected by law. Harassment includes all forms of offensive or unwelcome physical, verbal or visual conduct that interferes with an employee's work or creates an offensive or hostile working environment. Sexual Harassment: Sexual harassment of all types is specifically prohibited. Sexual harassment of employees in the workplace is unacceptable, and will not be tolerated. Sexual harassment is defined as unwelcome sexual advances, requests for sexual favors, sending sexually inappropriate or offensive e-mails, and other verbal, visual or physical conduct of a sexual nature. It is illegal whenever (a) submission to such conduct is made a condition of employment, either expressly or impliedly, (b) submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting that individual, or (c) such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile, or offensive working environment. Examples of Discriminatory Harassment: Examples of discriminatory harassment include unwelcome sexual propositions or marriage proposals; unwelcome hugging, kissing, or other offensive physical contact of a sexual nature; lewd gestures, racial remarks, or innuendos; unwelcome discussions of sexual practices or anatomy; and offensive posters, photographs, drawings, cartoons, jokes, stories, nicknames, or comments based on one=s protected characteristics. Application: This policy applies to all employees of the Authority, as well as the Board of Directors, and other persons at the workplace whom the Authority knows or has reason to know are violating this policy, including individuals providing service pursuant to a contract. All Authority personnel are expected to avoid any conduct that could be construed as discriminatory harassment by any employee. Appropriate corrective action will be taken against all offenders, including discipline or discharge of employees who violate this policy. Investigation: Any employee who believes he or she has been harassed should bring the matter to the attention of the General Manager immediately, and provide a full and accurate report of the underlying facts. Employees are urged to report first to the General Manager, but this is not required if the employee feels uncomfortable doing so. The employee may report to the President of the Authority. If the employee believes the General Manager is violating this policy, the employee is strongly encouraged to immediately report the incident(s) to the President of the Authority. Upon notification of a harassment complaint, the General Manager or other person to whom the investigation is delegated will conduct an investigation of the complaint as soon as possible. The investigation will generally include interviews with: (1) the complainant; (2) the accused harasser; and (3) any other persons the General Manager, or person delegated to investigate, has reason to believe has relevant knowledge concerning the complaint. This may include victims of similar conduct. All such reports will be kept confidential to the greatest extent possible, but some disclosure will be necessary to conduct a proper investigation. In each case, the employee reporting the problem

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will receive an oral or written reply from the General Manager, or President of the Authority, on the results of the investigation. Any employee who is not satisfied with the reply may appeal to the Executive Committee and will receive a reply. No employee shall be subject to any form of retaliation for reporting any violation, or participating in any investigation under this policy truthfully and in good faith. Employees who believe they have been retaliated against in violation of this policy should report it immediately to the General Manager or the President of the Authority. An investigation of any alleged retaliation will be conducted as set forth above. This policy also applies to unlawful harassment based on any of the other illegal criteria set forth in the Authority's Equal Employment Policy, including race, color, religion, national origin, age, sex, sexual orientation, disability, marital status, or medical condition. The Authority will not tolerate any harassment or discrimination in employment. Violation of this policy will result in discipline, up to and including termination of employment. Romantic or sexual relationships between supervisors and subordinate employees are discouraged. There is an inherent imbalance of power and potential for exploitation in such relationships. The relationship may create an appearance of impropriety and lead to charges of favoritism by other employees. A welcome sexual relationship may change, with the result that sexual conduct that was once welcome becomes unwelcome and harassing. By definition, sexual harassment is not within the course and scope of an individual=s employment with the Authority.

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3.0 GENERAL RULES FOR AUTHORITY EMPLOYEES 3.1 Political Activities The political activities of Authority employees or Authority volunteers are restricted by certain State and Federal laws. Employees of the Authority shall obey all applicable laws. Employees are specifically prohibited from engaging in political activities at any time while on duty, or while on the Authority premises provided, however, that an employee may participate in public political meetings on the Authority property. Authority employees may not use Authority funds or equipment for the purpose of providing support or opposition to a candidate or a ballot measure. Authority employees may not solicit political contributions from other Authority employees nor from persons on eligible lists for Authority jobs, except that they may solicit contributions from employees in connection with ballot issues affecting their wages, hours, and working conditions. Employees may make appeals to the public generally, even though this includes Authority employees. Nothing stated herein shall be construed as limiting any employee's right to vote, or freedom of reasonable expression or right of association, nor the exercise of any rights protected by the Constitution of the United States of America and the State of California. 3.2 Gifts and Gratuities Employees of the Authority shall not directly or indirectly solicit any gift or receive any gift whether in the form of money, services, loan, travel, entertainment, hospitality, promise, or any other form under circumstances which it could reasonably be inferred the gift was intended to influence them or could be expected to influence them in the performance of their official duties, or was intended as a reward for any official action on their part. If it becomes difficult or impossible to return such a gift to the sender, then it should be forwarded to the General Manager for forwarding to a local charity. The General Manager will notify the sender of this occurrence. Rejection of All gifts shall be done in a firm but tactful mannerrejected firmly but as tactfully as possible so the good intentions of the giver are properly acknowledged. If an employee receives any gift as specified above, the employee shall notify the General Manager of the nature of the gift on that or the following working day of receipt thereof. The General Manager's decision regarding whether the gift should be rejected shall be final. 3.3 Eligibility to WorkCitizenship At the time of employment, all persons employed by the Authority shall be legally eligible to work in citizens of the United States or legal residents for purposes of employment. 3.4 Conflict of Interest and Outside Employment The Authority does not impose unreasonable restrictions on an employee=s use of his or her personal time. Other employment presents no problem unless the employee=s work with the Authority is affected. Employment with a competitor is, however, considered a conflict of interest and, as such, is prohibited. In no case will an employee be permitted to work for another insurance carrier or provider, a member entity, or an entity with a claim pending against the Authority.

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An employee whose outside activities affect his or her on-the-job performance or prevent the employee from fulfilling the requirements of the position held (including periodic need for working overtime), or which, in the opinion of the Authority, constitute a conflict of interest, will be asked to refrain from such activity.An employee shall not engage in any paid or self-employment, activity, or enterprise which is inconsistent, incompatible or in conflict with his or her job duties, functions, or responsibilities at the Authority. Employment with a competitor is considered a conflict of interest and, as such, is prohibited. In no case will an employee be permitted to work for another insurance carrier or provider, a member entity, or an entity with a claim pending against the Authority. All employees must obtain written approval from the General Manager prior to undertaking any outside employment. Any employee who wants to undertake a paid outside employment, activity, or enterprise must submit a written request to the General Manager. The written request must include: the work hours and/or time required; job title or the nature of the activity; the work location; and the supervisor, manager and name of the employer or activity. The General Manager will determine if the outside employment, activity, or enterprise is compatible with the employee’s employment at the Authority. If the General Manager determines such activity is compatible, or would be if any conditions or restrictions applied, he or she will authorize the activity and specify the conditions/ restrictions in writing. An outside employment authorization is valid only up to one year. Should the employee continue the outside employment, activity, or enterprise for a longer duration, he or she must make another request following the aforementioned process. In addition, the employee must promptly report in writing to the General Manager any of the following changes that may occur during the year of an authorized outside employment: the outside employment ends; or the authorized employment changes as to the number of work hours, location, or types of duties. The General Manager shall have sole and final authority to determine whether an employee is in violation of this section, and or not a conflict exists. may revoke or suspend outside employment authorization at his or her sole discretion. An employee who refuses to restrict his or her outside employment, activity or enterprise activities or other employment after being asked to do so will be terminated. 3.5 Nepotism Employment of relatives in Authority positions is prohibited where (1) an employee would exercise a supervisory or evaluative role in relation to a relative; or (2) an employee is in a position to exert direct influence on the hiring, promotion, or performance evaluation of a relative; or (3) where potential problems of safety, security or morale exist. For purposes of this policy, relatives include an employee's or Board of Directors member's parent, grandparent, child, step-child, spouse, brother, sister, half-brother, half-sister, aunt, uncle, niece, nephew, or in-laws, and step relationships of those enumerated by marriage or domestic partnership. "Spouse" includes domestic partners, as defined by California law, and persons who cohabit without benefit of a legal marriage contract. If two employees marry or otherwise become related in a capacity specified as above, and the

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potential problems noted above exist, only one of the employees will be permitted to remain in his/her current position. The Authority will work with the employees to explore reasonable accommodations which can be made to eliminate the potential problems. Although the wishes of the employees may be considered, Tthe General Manager shall have the sole discretion to determine the accommodation, if any, that will be made and decision as to which employee will remain in his/her current position . The General Manager may determine that transfer or termination of one of the employees is necessary to be consistent with the Authority’s interest in the promotion of supervision, safety, security, or morale. Any such transfer or termination is not considered to be disciplinary and is not subject to anymust be made by the two employees within 30 calendar days. If no decision has been made during this time, the Authority will take whatever action is necessary. Such action may include the termination of one of the employees appeal or disciplinary due process procedures. 3.6 Smoking Policy The Authority is committed to providing a healthful and safe working environment for employees. In keeping with this commitment, smoking (including electronic cigarette use) is permitted only in designated smoking areas designated for that purpose. 3.7 Drug- and Alcohol-Free Workplace Policy It is the intent of the Authority to maintain a workplace that is free of illegal drugs and alcohol and to maintain a safe, healthful and productive working environmentdiscourage illegal drug and alcohol by for its employees. The Authority has a vital interest in maintaining safe and efficient working conditions for its employees. Use of illegal drugs and alcohol in connection with work is incompatible with health, safety, efficiency and service to the public. Employees who are under the influence of an illegal drug or alcohol on the job compromise the Authority=s interests, endanger their own health and safety and the health and safety of others, and can cause a number of other work-related problems, including property damage, absenteeism and tardiness, substandard job performance, increased workloads for co-workers, behavior that disrupts other employees, delays in the completion of jobs, and disruption of service to the public. 3.7.1 Prohibited Conduct In furtherance of this policy, the following conduct is prohibited and will subject an employee to discipline in accordance with Section 10 (Conduct and Discipline):

A. The consumption or use of alcohol or an illegal drug or controlled substancedrug during working hours or while subject to duty (i.e., stand by), on breaks, during meal periods or at any time while on Authority property;

B. Reporting to work or being subject to duty while under the influence of alcohol or an illegal drug or controlled substancedrug;

C. Manufacturing, selling, distributing, dispensing, sharing or possessing any illegal

drug or controlled substance drug during work hours or on Authority property;

D. Selling, distributing, dispensing, or sharing any prescription drug with any other person during work hours or on Authority property; or

E. Using or being under the influence of any prescription drug for which the employee

does not hold a prescription during work hours or while subject to duty.

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Any employee who is taking a prescription drug, which may affect job performance, is required to inform the General Manager prior to the beginning of his or her workday. The employee may be required to provide a written statement from the prescribing physician that indicates the employee concerning the details of the medication, its known side effects, its instructions for use, and whether the employee can safely perform the essential functions of his or her job while taking such medication.

3.7.2 Drug or Alcohol Testing The Authority, through the General Manager or his/her designee, may require that an employee submit to an alcohol and/or drug test when there is a reasonable suspicion it reasonably suspects that an employee has used or is under the influence of drugs or alcohol during work hours or while subject to duty. Reasonable suspicion to test exists if, based on objective factors, a reasonable person would believe that the employee is under the influence of drugs or alcohol during work hours or while subject to duty. Examples of objective factors, include, but are not limited to: unusual behavior, slurred or altered speech, body odor, red or watery eyes, unkempt appearance, unsteady gait, lack of coordination, sleeping on the job, a pattern of abnormal or erratic behavior, a verbal or physical altercation, puncture marks or sores on skin, runny nose, dry mouth, dilated or constricted pupils, agitation, hostility, confused or incoherent behavior, paranoia, euphoria, disorientation, inappropriate wearing of sunglasses, tremors, an accident involving Authority property or equipment, or other evidence of recent drug or alcohol use. The General Manager or his/her designee shall document the facts constituting the reasonable suspicion regarding the employee at issue. The screening may test for any substance which could impair the employee’=s ability to effectively and safely perform the functions of the job. A more sensitive, confirmatory test will be conducted if the first test is positive. The laboratory conducting the tests will not release any information to the Authority until this confirmatory test is completed. If an employee is directed to submit to a drug or alcohol test, and the results are positive, the employee shall have the opportunity, within forty-eight (48) hours of request, to provide verification of a current prescription for the drug identified in the request. If the employee does not provide acceptable verification, if the prescription is not in the employee=’s name, or if the employee has not previously notified the General Manager of the use of this drug, the employee shall be subject to disciplinary action, as outlined in Section 10 of these rules. If the employee is directed to submit to a drug or alcohol test and fails or refuses to do so, the employee shall be subject to disciplinary action as outlined in Section 10 of these rules. 3.8 Safety The practice of accident prevention is one of the most important employee responsibilities. Knowing and applying safe working methods are fundamental parts of every job. For their own protection, and in the interest of fellow workers and the public served, employees must learn and follow all established safety practices and avoid taking any chances that might result in injury. When in doubt, they should check with their supervisor. Any unsafe or hazardous condition must be reported directly to a supervisor immediately and to the General Manager.

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4.0 PERSONNEL ACTIONS 4.1 Appointments Regular Appointment A regular appointment is one established on a regular, continuous basis, either full time or part time. There are three kinds of regular appointments:

Probationary: All appointments made to a vacant regular for cause position, whether initial or promotional, shall be considered probationary for six months from the effective date of the appointment. As necessary, the probation period can be extended an additional six months if the General Manager or designee determines that the probationary period shall be extended. The probationary employee shall be given notice in writing prior to the expiration of the original probationary period.

The probationary period shall be regarded as part of the testing process and shall be utilized for closely observing the employee’=s work to determine the employee’=s fitness for the position. A probationary employee must demonstrate satisfactory performance in order to achieve regular status.

Periods of time on paid or unpaid leave exceeding three (3) days (consecutive or not) shall automatically extend the probationary period by that number of days the employee is on leave. If the probationary period is interrupted by military leave for a period which extends beyond half of the probationary period, then the employee shall serve a new probationary period upon return.

An employee on probationary status is an at-will employee, and may be suspended without pay, demoted or dismissed by the Authority at any time, without cause, and without notice or right of appeal. A probationary employee has no property interest in continuing employment. An employee on promotional probationary status who fails to satisfactorily complete the probationary period in the promotional position may return to the position held prior to promotion at the range and step held prior to promotion, if there is a vacancy in the prior position, unless he or she is terminated for cause. Should the original position no longer be available, the employee may be released without cause, without notice or right of appeal.

Service in any type of appointment other than regular shall not constitute service towards fulfillment of the probationary period of a regular appointment.

Former employees who are rehired and appointed to regular positions will serve the probationary period appropriate for the position.

Regular Full-Time Employment: Employees who successfully complete their probationary period and who regularly work a minimum of 40 hours per week shall become regular full-time employees and shall be entitled to all the benefits provided herein.

Regular Part-Time Employment: Employees who regularly work less than 40 hours per week but 20 hours or more a week, who successfully complete their probationary period shall become regular part-time employees and shall be entitled to regular status equal to the hours worked when compared to 40 hours per week. With the exception of sick leave as provided for under these rules, Nno other benefits will be provided for employees falling

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within this classification. Temporary Appointment A temporary appointment is one established to meet staffing requirements of short-term duration such as emergency, extra workloads, vacation relief, paid sick leave or other situations requiring short-term fluctuating staff needs. With the exception of sick leave as provided for under these rules, no other benefits will be provided for employees falling within this classificationTemporary employees will not be entitled to the benefits granted regular employees. Time spent in temporary status shall not be considered as service towards fulfillment of the probationary period of a regular appointment. Persons in temporary status will be paid an hourly rate established by the General Manager, which will not exceed the rate established for comparable full-time positions. Temporary positions may be established by the General Manager when deemed essential to the work program. General Manager shall determine the method of hiring temporary employees. Temporary employees serve at the pleasure of the Authority and may be removed at any time without cause, notice or any right of appeal. Acting Appointment An acting appointment may be made by the General Manager of a currently employed individual to serve in a higher classification to fill a vacancy due to a leave of absence, long-term illness or other reason resulting in a temporary vacancy resignation. To be eligible for an acting assignment, the employee must meet the training and experience requirements for the position. Acting appointments may also be made under other circumstances deemed for the good of the Authority by the General Manager. An acting appointment may be terminated at any time without right to appeal or hearing. The acting employee during this period will receive a 10% increase in his/her current assigned salary or the bottom step of the acting position, whichever is higher, after serving said assignment for thirty (30) calendar days, whichever is higher, as compensation for fulfilling these duties. This increase in compensation shall cease and will no longer be paid upon the termination of when the acting appointment terminates. Reinstatement The General Manager may consider the re-employment of employees to the same position who voluntarily resign their position in good standing if request is made within one (1) year. Such Eemployees will not be required to test for the position or to serve an initial probationary period, and shall retain the formerly held seniority rights and status. The General Manager may require the passing of the pre-employment medical exam/drug screen, psychological exam, employment reference check and criminal background check. 4.2 Promotions Positions may be filled by promotion from within or on an open competitive basis. Determination of the method of selection shall be made by the General Manager. Employees are encouraged to apply for promotional vacancies. Final selection of an applicant for any position will be made by the General Manager and will be in accordance with established procedures.

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4.3 Demotions No employee shall be demoted to a position for which he/she does not possess the minimum qualifications. Voluntary Demotion A voluntary demotion may occur following a request by an employee and approval by the General Manager. Voluntary Demotion Due to Lack of Work, Lack of Funds or Reorganization An employee may be offered a demotion in lieu of layoff for lack of work, lack of funds or reorganization, provided a position is available. Demotion for Reasons Other than Lack of Work, Lack of Funds or Reorganization The Authority may demote an employee for reasons other than lack of work, lack of funds or reorganization. An employee serving a probationary period may be demoted at any time, with or without cause, and without right of appeal. If an employee has gained regular status, a demotion will be enacted in accordance with established discipline procedures, which will include prior written notice and right of appeal. A demoted employee will be placed at the salary step of the appropriate salary range that does not provide an increase in salary. The effective date of demotion shall be the anniversary date for the purpose of salary increases and performance evaluations. 4.4 Separation From Employment Resignation An employee wishing to leave in good standing shall submit a written resignation on the appropriate Authority form to the employee’=s supervisor at least two weeks prior to the effective date of such resignation. The resignation becomes final when the General Manager accepts the written resignation. Once the written resignation has been accepted and is final, the employee cannot withdraw it. Job Abandonment An employee is deemed to have resigned if the employee is absent for five (5) consecutive scheduled work days without prior authorization and without notification during that period of the absence. On the third scheduled working day of unauthorized absence, the supervisor shall send an telegram or overnight letter to the employee’=s last known address of record informing the employee that if the employee fails to report to work within two (2) scheduled work days, or submit receive authorization for such absence, the employee will be deemed to have resigned. Prior to separation for job abandonment the employee will have an opportunity to present a justification for absence such as severe illness, false arrest or mental or physical impairment which prevented notification. Employees have no right to appeal if deemed to have resigned as a result of job abandonment. Termination Authority-initiated terminations of regular status, for cause employees shall be subject to the disciplinary provisions of these policies. Employees other than those having regular, for cause status may be terminated at any time without

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cause or right of appeal. Layoff Employees may be laid off for reorganization, lack of work or lack of funds. The order of layoff will be based on seniority and performance. Exit Interviews It is the option of the Authority to hold an exit interview with departing employees. The purpose of this interview will be to allow employees to communicate their views on their work with the Authority and the job requirements, operations, and training needs. It also provides the employee an opportunity to discuss issues concerning benefits and insurance. Exit interviews are conducted by the General Manager or designee and a summary of the exit interview will be placed in the employees personnel file. Return of Authority Property Employees are required to return all Authority property in their possession or control on or prior to their final day of employment.

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5.0 WORK SCHEDULES 5.1 Work Week and Working Hours Except as otherwise provided, the official work week for all employees shall consist of 40 hours commencing at 12:01 a.m. on Sunday and ending at 12:00 midnight the following Saturday. The General Manager may allow employees to work an alternate work schedule (e.g., 9/80). If employees work an alternate schedule, the work week will be adjusted so that no overtime is incurred. Employees shall be notified of their specific work hours at the time of initial appointment or appointment to a new position within the Authority service. Changes in work days, working hours, or reporting times shall be made by the General Manager in order to meet the needs of the Authority. Schedule changes will be communicated to affected employees in writing as soon as practical and prior to the change in schedule. 5.2 Overtime Non-exempt employees include all regular full-time, part-time hourly, or temporary employees who are covered by the overtime provisions of the Federal Fair Labor Standards Act (FLSA) and are eligible to receive overtime pay under the FLSA. Employees in this category are entitled to overtimepremium pay at the rate of one and one-half times their regular rate of pay for all hours worked in excess of 40 hours in a work week. Only actual hours worked will be counted toward the 40-hour threshold for purposes of calculating overtime pay. All overtime work by a non-exempt employee must be approved in advance by the employee's supervisor. Working overtime without advanced approval or an emergency situation is grounds for discipline. In the case of an emergency situation that causes a non-exempt employee to work overtime without advanced approval, the employee shall immediately notify his/her supervisor of the overtime worked, and by no later than the end of the next scheduled working day. All non-exempt employees not assigned to a regular shift of more than 40 hours per week will be compensated for overtime work in accordance with the Fair Labor Standards Act for all hours worked in excess of 40 hours in each work week. 5.2.1 Compensatory Time Off ("CTO") If it is determined by the General Manager to be in the best interests of the Authority, non-exempt employees may be compensated for overtime work by granting compensatory time off (CTO) at the rate of one and one-half hours earned for each overtime hour worked. CTO may be accumulated up to 24 hours (for 16 hours actually worked). CTO that has been earned but not taken will be paid to the employee upon termination of employment. Employees who request CTO will be permitted to use such time within a reasonable period after making the request unless using the CTO will unduly disrupt the operations of the Authority. 5.2.2 Exempt Employees Exempt employees include all employees whose positions are exempt from the overtime provisions of the Federal Fair Labor Standards Act. Such employees serve in positions designated as exempt are executive, administrative, or professional positions. Unless otherwise negotiated by contract with the Executive Committee, exempt employees will

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receive five (5) Administrative Leave days per year. Employees will be notified of the exempt or non-exempt status of the positions to which they are appointed at the time of appointment. 5.3 Time Sheets All non-exempt employees are required to complete a time sheet to record daily time worked during each pay period. Each time sheet is to be completed to provide an accurate record of hours worked, meal periods, overtime, absences and vacations. Employees may not Acarry over@ hours from one day to another day or week. No employee may complete a time sheet for another employee. Such an offense may result in disciplinary action, up to and including dismissal. 5.4 Rest Periods Each non-exempt employee is provided a fifteen (15) minute rest period during each four (4) hours of work. Rest periods are scheduled by each employee's supervisor to ensure that the employee's position and duties will be covered during periods of rest. Rest periods may not be combined or added to an employee's lunch break. Rest periods are to be scheduled approximately in the middle of each four (4) hour shift and may not be taken within one (1) hour of the beginning or ending of the four (4) hour shift. Employees may not leave work premises during a paid rest period without special permission from the appropriate supervisor. Employees are free to leave work premises during an unpaid meal period. Since rest periods are intended to provide employees with an opportunity for rest and relaxation, they should be taken away from the employee's work area. Employees are not permitted to perform any duties during such periods. 5.5 Meal Period A thirty (30) minute non-compensated meal period shall be provided to all full-time employees. This meal period should be taken at the approximate mid-point of the shift, unless Authority rules, procedures or regulations indicate otherwise. 5.6 Attendance and Punctuality Punctual and consistent attendance is a condition of employment. It is the employee's responsibility to be at work as scheduled, to arrange the employee’=s personal schedule to meet established working hours, and to notify the employee’=s supervisor as early as possible if the employee expects to be absent or tardy. An employee is expected to be at the employee’=s work station, ready to begin work, at the beginning of the employee’=s assigned shift. Any unauthorized absence or excessive absenteeism or tardiness may be cause for disciplinary action, up to and including discharge from employment. Authorized absence is defined as: Permission to be absent from duty for a specified purpose, with the right to return before or upon the expiration of the leave period.

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Accordingly, since rest periods are paid working hours, Authority employees are expected to remain on work premises during their coffee breaks. Employees are free to leave work premises during unpaid meal periods.

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6.0 EMPLOYEE DEVELOPMENT 6.1 Training and Orientation Orientation A new employee will be scheduled for an orientation program in order to receive an introduction to Authority employment, including its history, its operations, its personnel policies, and a review of employee benefits. During this period, employees are also asked to complete new-hire paperwork. Training It is the policy of the Authority to encourage and promote training and educational opportunities for all Authority employees to the end that the services they render to the Authority may be made more effective. The General Manager will establish such procedures as the General Manager deems appropriate to assist in the implementation of this policy. Probationary employees will receive instruction in the policies, procedures, and equipment use necessary to perform their job effectively. Training periods may be conducted either during or after normal working hours. Training sessions conducted during normal working hours shall be arranged so as to minimize interference with scheduled work. Non-exempt employees who are required by the Authority to attend in-service or out-service training programs which are scheduled outside the normal working hours will be compensated for the hours of attendance at the program at the appropriate hourly rate. Employees will not be compensated for attendance at elective out-service training programs which are scheduled outside normal working hours. The following categories of training are recognized for the employees of the Authority:

In-Service Training Any formal employee training or development program that is sponsored by the Authority. Such programs are designed and conducted to meet job-related needs of Authority employees.

Out-Service Training Any formal employee training or development program that is sponsored and conducted by any agency or organization other than the Authority. Conferences and seminars that are conducted primarily for training and educational development purposes are considered out-service training.

Job Related Out-Service Training Job-related out-service training is directly related to improving the employee's performance of present duties and is required by the Authority.

Elective Out-Service Training Elective out-service training is taken at the discretion of the employee to improve the employee's eligibility for career advancement or for personal growth. It is not required by the Authority but is intended for the direct future benefit of the Authority.

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Payment of Training Expenses Approval of General Manager No job-related out-service training may be taken, nor will any expenses be paid for out-service training, without the prior approval of the General Manager.

Job-Related Out-Service Training The employee shall receive his/her regular salary when attending job-related out-service training during the employee’=s regular work shift and may be reimbursed for tuition, travel, meals, and lodging at established rates set by the Authority, when such training is required by the Authority.

Elective Out-Service Training When an employee desires to participate in elective, career-oriented, out-service training, the General Manager may, within budgetary limits and in accordance with Authority policies, authorize the payment of regular salary and reimbursement for tuition, travel, meals, and lodging.

Uncompleted Training Assignment An employee who does not satisfactorily complete an out-service training assignment according to standards determined by the General Manager is not eligible for reim-bursement of tuition and other necessary expenses and shall return any advance payment received.

An employee who does not complete approved job-related training may also be subject to disciplinary action as provided in these policies.

Educational Reimbursement The Authority encourages its employees to continue job-related training and education. Regular full-time employees are eligible for reimbursement for tuition, books, and related fees for completion of approved post-high school education provided that:

The course is given by an accredited college or vocational school.

The employee has received advance written approval for reimbursement from the General Manager.

The employee passes the course with a grade of "C" or better.

Whether or not reimbursement for post-graduate college education shall be considered taxable income, shall be determined by the most current laws, rules and regulations of the Internal Revenue Service or other authorized regulatory agency. 6.2 Performance Reviews The General Manager or designee will provide a method of reporting of individual employee performance which relates to quantity and quality of work, ability, reliability, discipline, attendance, and other factors. The General Manager or designee will prescribe forms for such performance evaluations and shall be responsible for assuring that such evaluations are adequate to provide information to both the employee and the Authority for the purposes set forth in this section. An employee must have a satisfactory performance evaluation in order to be eligible for a merit salary increase or promotion. Deficiencies in performance by an employee may result in a decrease in salary, suspension, demotion, or dismissal. The Authority will attempt to hold a formal performance review at regular intervals. The format

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for these performance reviews will be designed by the Authority. A copy of the review will be provided to the employee and one copy will be placed in the employee’=s file. The Authority will also attempt to hold reviews for regular full-time and part-time employees on the employee’=s anniversary date. Business necessities, however, may necessitate that a performance review be held on a different date. Nothing in this section precludes the Authority from holding a performance review at more frequent intervals than that regularly established. The performance review is not subject to any appeal processthe grievance procedure. An employee who disagrees with the employee’=s review may file a written statement of the employee’=s objections, and the reasons therefore, which will be attached to the review and placed in the employee's personnel file. No other administrative reply or appeal shall be allowed.

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7.0 PERSONNEL RECORDS 7.1 Personnel Records Official Records The General Manager is the custodian of all official personnel records necessary to complete personnel transactions and to serve as reference for Authority Officials. The General Manager will maintain records showing administrative actions including records of employment history of each employee, performance evaluation records, and related files and correspondence.

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8.0 BENEFITS 8.1 Insurance Plans The Authority will maintain group health and welfare plans for all eligible employees. Temporary and part-time employees are not eligible for insurance plans. The Authority reserves the right to change carriers, modify covered benefits, or make any other changes to group insurance plans as necessary to serve the best interests of the Authority. Group Health Insurance (Medical, Dental, and Vision) Group health insurance coverage is available to each employee in a regular full-time position effective on the first day of the month following employment. The Authority pays, out of employee's cafeteria plan allowance, for the employee's medical insurance of the employee’=s choice, dental, and vision insurance. Dependents are also eligible to be covered by medical, dental, and vision insurance at the stated prices for the extra coverage. To cover both the employee's cost and all or part of the dependents' costs, the Authority allows a flat benefit per employee per fiscal year for regular full-time employees. The cafeteria plan allowance will be established each fiscal year to an amount equal to the total cost of the health insurance premiums of the family rate of the median HMO medical, dental, and vision plans offered. Any costs in excess of this amount must be paid by the employee. Employees can choose not to be covered by the Authority's medical, dental, and vision insurance only if they receive comparable coverage from another source and provide proof of such coverage. The employee must notify the General Manager of any changes in non-Authority provided benefits. Employees Hired Prior to July 1, 2008 For those employees hired before July 1, 2008 and opts out of all, or some, of the coverages, the Authority will place an amount in the employee’=s deferred compensation account equal to the difference of the selected coverage monthly premium(s) and a fixed allowance of $735. Employees Hired After July 1, 2008 For those employees hired after July 1, 2008 and opts out of all, or some of the coverages, the Authority will place an amount in the employee’=s deferred compensation account equal to 50% of the lowest, single rate, monthly premium of the coverage(s) not selected by the employee. The amount shall not exceed $735 per month. Payments by the employer stop if the employee is terminated, leaves employment or retires subject to PERS and COBRA requirements. Employees may also request payment of dependents' individual medical insurance policies from the cafeteria plan allowance fund if there are adequate remaining funds in the employee's account to do so or the employee takes a salary deduction to cover the cost. Specific information about group insurance should be requested from the General Manager. Long-Term Disability Insurance All employees in regular full-time positions are eligible for Long-Term Disability Insurance effective on the first day of the month following employment. The Long-Term Disability Insurance benefit shall be provided by the Authority at no cost to the employee.

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Short-Term Disability Insurance All employees in regular full-time positions are eligible for Short-Term Disability Insurance effective on the first day of the month following employment. The Short-Term Disability Insurance benefit shall be provided by the Authority at no cost to the employee. Life Insurance Life insurance is available to all employees in regular full-time positions effective on the first day of the month following employment. The Life Insurance benefit will be provided by the Authority at no cost to the employee. COBRA Rights Employees will be notified of their rights to retain coverage in the Authority's plans at their own cost when eligibility for participation in Authority plans ceases. 8.2 Holidays All employees in regular full-time positions shall be entitled to the following holidays with pay provided they work at least one day before and after the holiday unless the General Manager in his/her sole discretion waives this requirement.

A) New Year's Day B) Martin Luther King's Birthday C) President's Day D) Memorial Day E) Independence Day F) Labor Day G) Thanksgiving H) Day after Thanksgiving I) One-half (2) day on Christmas Eve Day – Half Day J) Christmas Day K) Four (4) floating holidays

Floating holidays are given in-lieu of Lincoln's Birthday, Admission Day, Columbus Day, and Veteran's Day. Floating holidays are subject to General Manager approval, must be taken during the current calendar year, and do not carry over into subsequent years and are subject to General Manager approval. A probationary employee shall not be entitled to take floating holidays. Holidays proclaimed by the President of the United States or the Governor of California may be granted upon approval of the Board of Directors. If any of the recognized holidays falls on Saturday, the preceding Friday shall be designated as a holiday. If any of the recognized holidays falls on Sunday, the following Monday shall be designated as a holiday. Employees will not be paid for unused floating holidays upon termination of employment. 8.3 Vacation Eligibility All employees in regular full-time positions shall accrue vacation benefits beginning with their first day of employment. Employees are expected to utilize their vacation leave within the year it is accrued. Employees in regular part-time positions and temporary employees are not eligible for vacation leave.

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Vacation Accrual Unless otherwise negotiated by contract with the Executive Committee, vacation leave for employees shall accrue from the employees' anniversary date as follows:

A. 5/6 of one working days for each month or 3.0769 hours per payroll period of regular service during each of the first three years (80 vacation leave hours per year).

B. 1 and -1/4 working days for each month or 4.6154 hours per payroll period of

regular service after the third year and through the tenth year (120 vacation leave hours per year).

C. 1 and- 2/3 working days for each month or 6.1538 hours per payroll period of

regular service during the eleventh year and each year thereafter (160 vacation leave hours per year).

Vacation benefits are not earned during any period of an unpaid leave of absence, or for any time worked beyond the employee's regular shift assignment in a pay period. Limitation of Accrual Vacation leave may accumulate to a maximum of two years' accrual. The General Manager may waive the limitation of accrual for employees, and the Executive Committee may waive the limitation of accrual for the General Manager. Accumulated vacation time which exceeds the two year maximum, and is not carried by approval, must be paid off. Time Vacation May Be Taken Vacation leave may be taken at the written request of the employee and the approval of the General Manager. To avoid disruption of the Authority's work, the General Manager has the sole discretion of whether or not to approve specific dates requested. In making the decision, the General Manager will consider such factors as employee seniority, ability of other employees to cover the employees work, Authority's meetings schedule and the like. Authority employees shall not be permitted to work for compensation for the Authority in any capacity during any paid vacation except during emergencies as determined by the General Manager. Holidays During Annual Vacation Leave If a designated holiday falls during vacation leave, the employee shall be entitled to the holiday with pay, not to be charged towards vacation leave. Annual Review/Payoff of Accumulated Vacation In June of each year, the Authority shall review each employee’s vacation accumulation. The Authority shall pay employees for those accrued hours in excess of the two year accrual maximum and adjust the affected employees’ vacation accumulation back to the two year accrual maximum. Alternatively, once the maximum vacation accrual is reached, and upon written request by an employee, the Authority may pay off up to half of an employee's accumulated vacation time in lieu of the employee taking the time off work, provided the employee has taken at least 40 hours of vacation within the last twelve months. Employees will be paid for unused accrued vacation time upon termination of employment.

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8.4 Sick Leave Defined Sick leave is defined as leave from duty granted to an employee because of illness, injury, exposure to contagious disease, to care for an immediate family member with a serious health condition, and medical, dental and optical appointments to the extent that such appointments are scheduled to create the least disruption in the work day. For purposes of this section, an employee's immediate family shall consist of the employee's spouse, domestic partner, or children; the employee's or spouse's mother, father, brother, sister, grandchildren or grandparents or other members of the employee's family residing in the employee's home; or other members of the employee's family primarily dependent upon the employee. One half of the employee’=s yearly accrual of sick leave may be used for the illness or injury of a parent, spouse, domestic partner, or child. The General Manager has the sole authority and discretion to decide whether or not it is appropriate for an individual to use sick leave time for an immediate family member’=s health condition or more than one half of the yearly accrual for a parent, child, spouse or domestic partner. Eligibility Full-time All employees who work 30 or more days within a year from the commencement of employment with the Authority in regular positions, both probationary and regular, are eligible to earn paid sick leave from date of appointment. An employee may use accrued sick leave beginning on the 90th day after the first day of employment with the Authority, subject to the limits and request provisions stated in these policies. Sick Leave Accrual Full-time employees – Sick leave time accrues at the rate of four (4) hours every pay period for full-time employees. Part-time employees – Part-time employees in regular positions accrue sick leave at the rate of .05 hours for each hour worked. All other employees (seasonal, temporary, employees not in regular status positions) – All other employees who are not full-time or part-time employees accrue sick leave at the rate of one hour for every 30 hours worked. Sick leave benefits will not be earned or granted during any Authority-authorized unpaid leave of absence or during an absence from duty not authorized by the Authority. Accumulated Sick Leave Sick leave may be accumulated up to ninety days (720 hours) after which accumulated sick leave time over ninety days (720 hours) will be paid off, effective July 1st of each year, on the basis of:

A. 50% of gross pay per hour or fraction thereof for employees with five (5) but less than eleven (11) continuous years of employment by the Authority

B. 65% for eleven (11) but not less than sixteen (16) continuous years

C. 75% for employees with continuous employment of sixteen (16) or more years.

Under the provisions of the Authority's PERS contract, employees are eligible for service credit at retirement for all unused accumulated sick leave.

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Granting Sick Leave Sick leave with pay shall be granted by the action of the General Manager. As a necessary condition for approval, Tthe employee must providenotify the employee’=s supervisor with advanced notice of use of sick leave if the sick leave is foreseeable. If the use of sick leave is not foreseeable, the employee must notify the employee’s supervisor of use of sick leave as soon as practicable, and if possible, no later than one (1) hour before the regularly scheduled starting time of the time of the day sick leave is taken. In addition, the employee must apply for any disability benefits to which the employee may be entitled. Such benefits will be coordinated with the Authority's sick leave so that the disability benefits are the primary source of income with the Authority's sick leave making up the difference between the employee's normal salary and the amount paid by the disability benefits. In no case shall the Authority's sick leave payments exceed sick leave that has been accrued on the books by the employee. CertificationEvidence of Illness The General Manager reserves the right to require employees to provide a physician’s certification a satisfactory statement of a licensed physician whenever an employee misses work due to an illness, injury, disability, or the care of an immediate family member. The employee may be asked to provide a physician's certificationstatement that verifies the employee’s incapacity to workan illness, injury, or disability, the beginning and end dates of the incapacity to workits beginning and ending dates, and/or the employee's ability to return to work without endangering the employee’=s safety or the safety of others. The General Manager may request such physician’s certification after an employee has used 24 hours, or three days, whichever is greater, of sick leaveNormally, a statement will not be requested for absences of three days or less, but the General Manager may request such a statement in situations where the General Manager deems it is warranted. Such verifications and releases, when requested, may be a condition of receiving sick leave benefits or returning to work. Proper Use of Sick Leave Sick leave time shall be allowed:

A. For personal illness or physical incapacity, resulting from causes beyond employee's control.

B. For enforced quarantine of the employee in accordance with community health

regulations.

C. To care for an immediate family member.

D. To meet dental and medical appointments or other sickness prevention measures.

E. For the foregoing reasons to the extent that the compensation is not payable under the terms of Workers' Compensation Insurance coverage.

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F. For personal leave up to three (3) days (24 hours) per fiscal year for any reason

upon prior approval of the General Manager. Recording Sick Leave Sick leave shall be recorded as taken on the employee time report form. Holidays During Sick Leave Observed holidays occurring during sick leave shall not be counted as a day of sick leave. Sick Leave While on Vacation Leave An employee shall be granted sick leave by the General Manager for illness while on vacation to the extent that it exceeds two (2) regularly scheduled work days. Such illness will be charged to sick leave rather than vacation leave only under the following conditions:

A. The illness or injury of the employee was of a nature that would preclude the effective use of vacation and would prevent the employee from performing his/her normal duties on the job.

B. The employee must notify the General Manager immediately upon the conclusion

of his/her approved vacation leave. Sick Leave Reinstatement If an employee separates from the Authority and is rehired within one year from separation, accrued and unused sick leave, to a maximum of 6 days or 48 hours, whichever is greater, will be reinstated. An employee who worked at least 90 days in the initial employment with the Authority may immediately use reinstated sick leave. An employee who had not worked 90 days in the initial employment with the Authority must work the remaining amount of the 90 day-qualifying period to be able to use accrued sick leave. 8.5 Retirement Retirement is defined as an employee who is fully vested in the Public Employee’=s Retirement System (PERS) and meets the retirement requirements of PERS. The provisions of the Retirement System are available from PERS. All regular full-time employees automatically become members of the Public Employee’=s Retirement System (PERS). Employees Hired Prior to January 1, 2013 For those employees hired prior to January 1, 2013, the Authority shall pay a portion of the employees= contributions as Employer Paid Member Contribution (EPMC) in accordance with the following schedule:

$ 8% of the employee normal contributions through June 30, 2014; $ 5% of the employee normal contributions effective July 1, 2014 through June 30,

2015; $ 2% of the employee normal contributions effective July 1, 2015 through June 30,

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2016; $ 0% of the employee normal contributions effective July 1, 2016.

Classic Member Employees Hired After January 1, 2013 For those employees who are “classic members” as defined under PEPRAhired after January 1, 2013, the Authority shall not pay any portion of the employees= normal contributions to PERS. New Member Employees Those employees who are “new members” as defined under PEPRA shall be responsible for paying at least 50% of the total normal cost of the plan, as defined by PERS, or that which similarly situated employees are contributing, whichever is greater. 8.6 Bereavement and Funeral Leave An employee compelled to be absent from duty because of the death of an immediate member of the family may be entitled to not more than three (3) working days, with pay, upon approval of the General Manager. An immediate member of the family is defined as a parent, spouse or domestic partner, child, step-child, brother, sister, grandparent, spouse's or domestic partner’=s parent, spouse's or domestic partner’=s child, spouse's or domestic partner’=s brother, spouse's or domestic partner’=s sister, or spouse's or domestic partner’=s grandparent. 8.7 Workers' Compensation The Authority provides Workers' Compensation as required by the Workers' Compensation Act of the State of California.

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9.0 LEAVES OF ABSENCE 9.1 Unpaid Leaves of Absence An employee may request an unpaid leave of absence to attend to a serious health condition of a direct family member or to attend to such other personal matters as an adoption or the birth of a child. The Authority reserves the right to review each such request on a case-by-case basis. The Authority reserves sole discretion in determining whether or not to grant such leave and to determine the duration of such leave. The Authority may impose additional terms or conditions such as the provision of a physician’=s note if the leave is for a health-related problem of a direct family member. 9.2 Military Leaves of Absence Military leaves of absence are granted in accordance with state and federal law. However, in order to be eligible, employees must submit written verification from the appropriate military authority. Any employee who is on temporary military leave of absence for military duty ordered for purposes of active military training, encampment, naval cruises, special exercises, or like activity, provided that the period of ordered duty does not exceed 180 calendar days including time involved in going to and returning from the duty, but not for inactive duty such as scheduled reserve drill periods, and who has been in the service of the Authority for a period of not less than one year immediately prior to the day on which the absence begins shall be entitled to receive his/her salary or compensation as an Authority employee for the first thirty (30) calendar days of any such absence. Pay for such purposes shall not exceed thirty (30) days in any one fiscal year. For the purposes of this section, in determining the one year of Authority service, all service of said employee in the recognized military service shall be counted as Authority service. Any employee who is a member of the State Military Reserve is entitled to a temporary military leave of absence without pay while engaged in military duty for purposes of military training, drills, unit training assemblies, or similar inactive duty training for not to exceed fifteen (15) calendar days annually, including time involved in going to and returning from that duty. The Authority will reinstate those employees returning from military leave to their same position or one of comparable seniority, status, and pay if they: A. Have a certificate of satisfactory completion of service; B. Apply within 90 days after release from active duty or within such extended period, if any, as their rights are protected by law; and C. Are qualified to fill their former position. Compliance with Legal Requirements Exceptions to this policy will occur wherever necessary to comply with applicable laws. 9.3 Jury and Witness Duty Jury Duty

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If an employee is called to jury duty, the employee must notify the employee’=s supervisor immediately so appropriate arrangements can be made for the time off required. Employees are expected to return to work within a reasonable time if excused from jury duty during regular business hours. Full-time employees in regular positions will be paid their regular wages while on jury duty (less amounts received for jury service) up to a maximum of twenty (20) working days each calendar year. Employees are requested to present a statement showing the amount of jury duty compensation and duration of service to receive pay for those days. Witness Duty An employee who is required by law to appear in court to testify as a witness in a job-related court case shall receive regular pay for the hours absent for such purpose unless the employee is appearing as a party or an expert. The General Manager shall solely determine whether the case is job-related. Full-time employees in regular positions who are subpoenaed to appear in court for a non-job-related purpose may use accrued vacation leave or leave without pay for such absence. Employees other than those designated above will be provided time off for jury or witness duty in an unpaid status.

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10.0 CONDUCT AND DISCIPLINE 10.1 Conduct and Discipline Employee Misconduct Employee misconduct shall be cause for disciplinary action. The term "misconduct" means not only any improper action by an employee in the employee's official capacity, but also conduct by an employee not connected with the employee's official duties that affects the employee's ability to perform official duties, and any improper use of the position as an employee for personal advantage. In addition, improper conduct includes, but is not limited to, the following:

1. Violation of any federal, state, or local law directly impacting the employee's fitness for employment.

2. Using, possessing, dealing, distributing, or being under the influence of

intoxicating beverages, unprescribed narcotics or unlawful drugs while on duty or at work locations, or reporting to work or operating Authority vehicles or equipment under the influence of alcohol or any unlawful or unprescribed drug.

3. Failure or refusal to comply with a lawful order or to accept and perform an

assignment from an authorized supervisor or Authority official.

4. Inefficiency, incompetence, carelessness, or negligence in performance of duties.

5. Engaging in Ddiscrimination,ory harassment or retaliation.

6. Excessive absenteeism, whether excused or unexcused, or inconsistent attendance.

7. Rude or discourteous treatment of supervisors, other employees or the public.

8. Dishonesty or its appearance.

9. Using the position for financial gain; solicitation of work for private business or personal acquaintance.

10. Failure to perform duties; insubordination.

11. Inattention to duty, tardiness, carelessness or negligence in the care and handling of

Authority property.

12. Loss or misuse of Authority funds.

13. Improper or unauthorized use of Authority property.

14. Damage to public property or waste of public supplies through misconduct or negligence.

15. Misuse of sick leave, including using sick leave under false pretenses.

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16. Furnishing false information to secure appointment, or falsification of time cards or

other records and reports.

17. Absence from duty without authorized leave, failure to report after leave of absence has expired or after such leave of absence has been disapproved, revoked, or canceled.

18. Violation of the provisions of these rules and regulations or any written policies

that may be prescribed by the Authority.

19. Acceptance by an employee of any bribe, gratuity, kickback, or other item of value when such is given in the hope or expectation of receiving preferential treatment.

20. Outside work that creates a conflict of interest with Authority work, or detracts

from the efficiency of the employee in the effective performance of Authority functions.

21. Failure to obtain or maintain necessary qualification, certificate, or license, which

is required as a condition of employment.

22. Possession of an unsafe driving record for those employees required to operate Authority vehicles.

23. Conduct which discredits the Authority or Authority personnel.

24. Refusal to subscribe to any oath or affirmation which is required by law in

connection with Authority employment.

25. Outside employment not specifically authorized by the appointing authority.

26. The refusal of any officer or employee of the Authority to testify under oath before any Grand Jury having jurisdiction over any then pending cause of inquiry in which the investigation of government bribery or misconduct in the Authority office is involved shall constitute of itself sufficient ground for the immediate discharge of such officer or employee.

27. Improper political activity. Example: Those campaigning for or espousing the

election or non-election of any candidate in national, state, county or municipal elections while on duty and/or during work hours or in an Authority uniform on or off duty; or the dissemination of political material of any kind while on duty and/or during working hours or in uniform.

28. Working overtime without authorization.

29. Prohibited conduct as provided in Section 3.7.1 (Prohibited Conduct).

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30. Or other just cause. 10.1.1 Disciplinary Action The disciplinary process outlined below has been established to provide general guidelines for a fair method for disciplining employees. Discipline may be initiated for various reasons, including, but not limited to, violations of Authority work rules, and employee misconduct as specified in these Rules and Procedures. The severity of the action depends on the nature of the offense and an employee's record, and may range from verbal counseling to immediate dismissal. Nothing in these Procedures requires imposition of disciplinary action in any particular order of severity or pursuant to the number of prior disciplinary actions.

Verbal counseling: An opportunity to communicate in a non-disciplinary fashion that a problem is perceived and that the supervisor is available to help solve it. (Not subject to the discipline or appeal procedures described below appealable.)

Verbal reprimand: To communicate to the employee that a repeat action may result in more serious discipline. (Not subject to the discipline or appeal procedures described below.Not appealable)

Written reprimand: A written communication to the employee that an offense has been committed. A copy of this warning is given to the employee and one copy is filed in the employee's personnel file. Employee may submit a written response within fourteen (14) days of receipt of the reprimand which will be attached to the written reprimand. (Not subject to the discipline or appeal procedures described below.Not appealable)

Suspension: Temporary removal of an employee from his/her duties without pay for disciplinary purposes. Employees may be suspended on the spot when there is a clear threat to the safety of other employees or the public. (Supervisors must check with the General Manager prior to instituting an on the spot suspension.)

Reduction in Pay: Reduction in pay shall be a decrease in salary to a lower step within the salary grade for disciplinary purposes. The decrease may be permanent or for a fixed period of time. Denial of a merit increase or a reclassification downward is not discipline and does not entitle an employee to notice or right of appeal.

Demotion: Reduction to a lower class with a lower rate of pay.

Dismissal: Termination from employment. The General Manager or designee may choose to enforce an alternative measure of discipline, such as demotion, in an effort to solve the problem short of dismissing an employee.

The Authority reserves the right to deviate from this policy when circumstances warrant such a deviation. The General Manager is vested with the authority to determine the appropriate course of action.

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The General Manager must be informed of the disciplinary problem prior to the issuance of the first written warning. Further steps in the disciplinary process involving suspension, reduction in pay, demotion or dismissal will not be taken without the approval of the General Manager. Regular status employees who have completed an initial probationary period shall be discharged only after appropriate disciplinary proceedings, which includes the opportunity for a pre-disciplinary meeting on the matter. An employee serving an initial probationary period may be discharged with or without cause or notice, and without any right to the application of the disciplinary or appeal procedures set forth belowprocess and with no rights of appeal. 10.1.2 Disciplinary Procedure

The following discipline procedures only apply to for cause employees. All employees other than for cause employees, i.e. at-will employees, may be disciplined or separated at will, with or without cause, and without the disciplinary procedures listed below.

A. Notice of Intent

Whenever the Authority intends to suspend an employee for three (3) or more working days without pay, demote the employee, reduce the employee in pay or dismiss the employee, the Authority shall give the employee a written notice of the intended discipline (Notice of Intent) which sets forth the following:

1. The disciplinary action intended;

2. The specific charges upon which the intended action is based;

3. A factual summary of the grounds upon which the charges are based;

4. A copy of all written materials, reports, or documents upon which the

intended discipline is based;

5. Notice of the employee’=s right to respond to the charges either orally or in writing to the Authority.

6. The date, time and person before whom the employee may respond in no

less than five (5) working days;

7. Notice that failure to respond at the time specified shall constitute a waiver of the right to respond prior to final discipline being imposed.

B. Response by Employee

The employee shall have the right to respond to the Authority orally or in writing.

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The employee shall have a right to be represented at any meeting set by the Authority to hear the employee’=s response. The employee’=s response will be considered before final action is taken. The employee’s failure to attend the meeting, or timely provide the written response, is a waiver of the right to respond.

C. Final Notice of Discipline

After the response or the expiration of the employee’=s time to respond to the notice of intent, the Authority shall: (1) dismiss the notice of intent and take no disciplinary action against the employee or (2) modify the intended disciplinary action or (3) sustain the intended disciplinaryproposed action and prepare and serve upon the employee a final notice of disciplinary action. The final notice of disciplinary action shall include the following:

1. The disciplinary action taken;

2. The effective date of the disciplinary action taken;

3. Specific charges upon which the action is based;

4. A factual summary of the facts upon which the charges are based;

5. The written materials, reports and documents upon which the disciplinary

action is based;

6. The employee’=s right to appeal and deadline to appeal. 10.2 Suspension, Reduction in Pay, Demotion, Dismissal The General Manager may take the following disciplinary action:

A. Impose a suspension without pay upon an employee when, in his/her judgment, such action will best serve the interests of the Authority.

B. Reduce the pay of any regular status employee.

C. Demote a regular status employee to a position in a lower class with an appropriate

reduction in pay for reasons including but not limited to unsatisfactory performance or physical disability, lack of work, or lack of funds.

D. Dismiss for cause any regular status employee.

10.3 Appeal of Discipline For cause employees may appeal Ssuspensions ofr three (3) working days without pay or more, reduction in pay, demotion or dismissal of regular statusmay be appealed to the Board of Directors by filing an appeal in writing with the General Manager to the Board of Directors by an appeal in writing to the General Manager within ten (10) calendar days of the date of the final notice of discipline.

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The Board of Directors may choose to conduct the appeal hearing or delegate the hearing to a hearing officer whose decision will be advisory to the Board. The hearing officer will be chosen from a list provided by te State Mediation and Conciliation Service through the alternate striking of names until one name remains. 10.4 Discipline Appeal Hearing Procedure The procedures below shall apply to a timely filed appeal of discipline by for cause employees of suspensions of three (3) working days without pay or more, reduction in pay, demotion or dismissal of regular status.

A. Appeal Hearing Officer

The Board of Directors may choose to conduct the appeal hearing or delegate the hearing to an appeal hearing officer whose decision will be advisory to the Board. The appeal hearing officer will be chosen from a list provided by the State Mediation and Conciliation Service through the alternate striking of names until one name remains.

B. Date and Time of the Appeal Hearing

Once the appeal hearing officer has been designated, the General Manager will set a date for an appeal hearing. The employee shall be notified in writing at least 21 calendar days prior to the hearing of the scheduled date.

C. Prehearing Notice of Witnesses and Evidence No later than ten (10) calendar days before the hearing date, each party will provide the other and the appeal hearing officer a list of all witnesses to be called (except rebuttal witnesses), and a copy of all evidence (except rebuttal evidence) to be submitted at the hearing. The Authority will use numbers to identify its evidence; the employee will use alphabet letters. Neither party will be permitted to call any witness or evidence that has not been listed, unless that party can show that the party could not have reasonably anticipated the need for the witness or exhibit.

D. Subpoenas Upon the request of either party, and upon his or her own motion, the appeal hearing officer will issue subpoenas to compel attendance at the appeal hearing. Each party is responsible for serving his/her/its own subpoenas. Employees of the Authority who are subpoenaed to testify during working hours will be released with pay to appear at the hearing. Employees of the Authority who are subpoenaed to testify during non-working hours will be compensated for the time they actually spend testifying.

E. Continuances The appeal hearing officer may continue a scheduled hearing only upon good cause shown.

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F. Record of the Appeal Hearing

The hearing shall be recorded, either electronically or by a court reporter, at the option of the Authority. If the Authority orders a transcript or makes a transcript of the recording, it will notify the employee within three (3) calendar days of ordering or making the transcript, and will provide a copy of the transcript upon receipt of the costs of duplication.

G. Employee Appearance

The employee must appear personally before the hearing officer at the time and place set for the hearing. The employee may be represented by any person he or she may select.

H. Conduct of the Hearing

1. Sworn Testimony

All witnesses shall be sworn in prior to testifying. The appeal hearing officer or court reporter shall request each witness to raise his or her hand and respond to the following: “Do you swear that the testimony that you are about to give is the truth, the whole truth, and nothing but the truth?”

2. Evidence

Hearings need not be conducted according to technical rules relating to evidence and witnesses, but hearings shall be conducted in a manner that the hearing officer decides is the most conducive to determining the truth. Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence, but over timely objection shall not be sufficient in itself to support a finding, unless such evidence would be admissible over objection in civil actions. The rules dealing with privileges shall be effective to the same extent that they are recognized in civil actions. Irrelevant or unduly repetitious evidence may be excluded. The appeal hearing officer shall determine the relevance, weight and credibility of testimony and evidence.

3. Exclusion of Witnesses

During the examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing.

4. Burden of Proof

The Authority has the burden of proof by the preponderance of the evidence.

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5. Authority of Hearing Officer

The appeal hearing officer shall not have the power to alter, amend, change, add to, or subtract from any of the terms of these appeal hearing procedures.

6. Professionalism

All parties and their attorneys or representatives shall not, by written submission or oral presentation, disparage the intelligence, ethics, morals, integrity or personal behavior of their adversaries or the appeal hearing officer.

7. Presentation of the Case The parties will address their remarks, evidence, and objections to the appeal hearing officer. The appeal hearing officer may terminate argument at any time and issue a ruling regarding an objection or any other matter. The appeal hearing officer may limit redundant or irrelevant testimony, or directly question the witness. The hearing will proceed in the following order unless the appeal hearing officer directs otherwise:

1) The Authority is permitted to make an opening statement;

2) The employee is permitted to make an opening statement;

3) The Authority will produce its evidence;

4) The employee will produce its evidence;

5) The Authority, followed by the employee, may present rebuttal evidence;

6) Oral closing arguments of no more than 20 minutes may be

permitted at the discretion of the appeal hearing officer. The Authority argues first, the employee argues second, and if the Authority reserved a portion of its time for rebuttal, the Authority may present a rebuttal. The parties may decide to submit written briefs in lieu of or in addition to oral closing arguments.

8. Written Briefs

Either party may request to submit a written brief. The appeal hearing officer will determine whether to allow written briefs, the deadline for submitting briefs, and the page limit for briefs.

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9. Appeal Hearing Officer’s Recommended Decision

Within 60 days of the conclusion of the hearing, the appeal hearing officer shall make written findings and a recommended decision as to the discipline. The Board of Directors shall review the findings and recommendations of the appeal hearing officer and may then affirm, revoke, or modify the findings, recommendations, or disciplinary action taken. The decision of the Board is final. There is no process for reconsideration.

10. Proof of Service of the Written Findings and Decision

The Authority will mail a copy of the final written findings and decision, along with a proof of service of mailing that confirms that each of the parties and each of the parties’ representatives were mailed the final written findings and decision. It shall be the responsibility of the employee to inform the Authority of his/her address. A copy of the decision shall also be provided to the General Manager.

11. Challenge by Writ

Pursuant to Code of Civil Procedure section 1094.6, the parties have 90 calendar days from the date of the proof of service of mailing of the written findings and decision to appeal the Authority’s decision to the Superior Court in County of Riverside.

The Authority and the disciplined employee have the right to examine and cross-examine witnesses and present evidence. The Authority has the burden of proof and will present its case first.

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11.0 DEFINITION OF TERMS Terms used in these policies are defined as follows: ALLOCATION - The assignment of an individual position to an appropriate class on the basis of the type, difficulty, and responsibility of the work performed in the position. As used in these personnel rules, employees are appointed to positions; positions are allocated to classes. ANNIVERSARY DATE - The date recurring yearly upon an employee's regular appointment or date of hire. This date is used principally in matters regarding vacation, sick leave and other related personnel actions. APPOINTMENT - The employment of a person in a position. Types of appointment include Regular, Probationary, Temporary, and Promotional Appointments. AT-WILL EMPLOYEE - An at-will employee is an employee who serves at the pleasure of the Authority, may be dismissed with or without cause, has no property right in continued employment, and has no right to any pre- or post-disciplinary procedural due process or appeal. AUTHORITY - The Public Entity Risk Management Authority. BOARD OF DIRECTORS - The Board of Directors of the Public Entity Risk Management Authority. CLASS OR CLASSIFICATION - A group of positions sufficiently similar in duties, responsibilities, authority, and qualifications for employment to permit combining them under a single title and equitable application of common standards of selection and compensation. CLASS SPECIFICATION - A written description of a class setting forth factors and conditions that are essential characteristics of positions in that class. CLASSIFICATION PLAN- The designation of a title for each class together with the specification for each class as prepared and maintained by the Authority. CONTINUOUS SERVICE - The period of employment since original appointment served without a break in service caused by a layoff of more than one year, resignation, or discharge. DATE OF HIRE - The date of an employee's original appointment to the Authority service. DAYS - Calendar days unless otherwise stated. DEMOTION - The voluntary or involuntary reduction of a regular employee from a position in one class to a position in another class having a lower maximum salary rate. DISCHARGE ORF DISMISSAL - The involuntary separation of an employee from the service of the Authority.

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FOR CAUSE EMPLOYEE – A regular employee who satisfactorily completes the probationary period, and has the right to pre and post-disciplinary procedural due process and appeal. FULL-TIME EMPLOYEE - An employee who is employed to work on a full-time basis (generally 40 hours per week, 52 weeks per year). LAY-OFF - The separation of an employee from the employee’=s position due to reorganization, the lack of work to be accomplished, or the lack of funds. LEAVE - Authorized or unauthorized absence from an employee's place of work. STEP INCREASE ELIGIBILITY DATE - The future date on which an employee becomes eligible for consideration for a salary advance within the salary range established for the class of position the employee occupies. ORIGINAL APPOINTMENT - The person's first appointment as an Authority employee. An employee receives a new original date of hire when rehired following resignation or discharge (other than lay-off). PART-TIME EMPLOYEE - An employee who is employed to work less than full time (32 hours or less per week). Part-time employees are not eligible for fringe benefits other than Workers' Compensation Insurance. PERSONNEL ACTION - Any action taken with reference to appointment, compensation, promotion, lay-off, dismissal, discipline, commendations, or any other action affecting the status of employment. POSITION - A combination of current duties and responsibilities requiring the full-time or part-time services of an employee. PROBATIONARY APPOINTMENT - The employment of a person in a regular position for a working test period during which job performance is evaluated as the basis for consideration for regular appointment. PROBATIONARY PERIOD - A working test period during which an employee is required to demonstrate his/her fitness for the actual performance of the assigned duties of the position. "Initial" probationary period is the first probationary period completed by an employee following the original date of hire. PROBATIONARY EMPLOYEE - An employee who is serving a probationary period for the position and/or class in which the employee is currently employed. A probationary employee serves at the pleasure of the Authority, may be dismissed with or without cause, has no property right in continued employment, and has no right to any pre- or post-disciplinary procedural due process or appealis subject to dismissal without recourse to any appeal procedure and without a showing of cause. A probationary employee has no property interest in continuing employment. PROMOTION - The advancement of an employee from a position in one class to a position in

4265323.2 PU020-003

44

another class having a higher maximum rate of pay. PROMOTIONAL APPOINTMENT - The probationary employment of an employee in a regular position following a promotion. RECLASSIFICATION - A change in the class level of an individual position by raising it to a higher class, reducing it to a lower class, or by moving it to another class at the same level on a basis of significant changes in kind, difficulty, or responsibility of the work performed in the position. REDUCTION IN PAY - A salary decrease within the limits of the pay range established for a class, generally as a disciplinary action. REGULAR APPOINTMENT - The employment of a person in a regular budgeted position following the successful completion of a probationary period. REGULAR EMPLOYEE - An employee who has successfully completed an initial probationary period in regular position. Includes permanent full-time and permanent part-time employees. REHIRE - The re-employment, without examination, within one year of separation, of a former employee into the same classification from which the employee separated. REINSTATEMENT - The re-employment, without examination, of a laid-off employee into the same or lower class from which the employee was laid off. RESIGNATION - Voluntary termination of employment. REPRIMAND - Oral or written notice of unsatisfactory performance or improper action given as a disciplinary action. RETIREMENT - Service: The voluntary termination of an employee after becoming eligible for and applying to the California Public Employees Retirement System for retirement benefits. Disability: The termination of an employee due to physical or mental inability to perform the duties of the position after an employee has become eligible for benefits under the California Public Employees Retirement System. SALARY RANGE - The range of salary rates for a class defined in the current salary table approved by the Board of Directors. SALARY RATE - The dollar amount of each step in a salary range; or, the flat dollar amount of salary for a class not having salary range. SALARY STEP - Each of the five steps defined in the current salary table approved by the Board of Directors. SEPARATION - The termination of an employee's employment with the Authority because of retirement, resignation, death, lay-off, or dismissal.

4265323.2 PU020-003

45

SUPERVISOR - An employee assigned responsibility for evaluation of permanently assigned employees and for organizing, assigning, and reviewing their work. SUSPENSION - The temporary and involuntary separation for a specified period of time of an employee from the position for disciplinary purposes. TEMPORARY EMPLOYEE - An employee appointed to meet short term staffing needs. Temporary employees are at-will employees. VACANCY - An authorized position for which funds are available which is not occupied.




AGENDA ITEM 7D: PERMA Staffing


RECOMMENDATION:Open for discussion.


BACKGROUND & OVERVIEW:This time is being reserved to have a general discussion on the current PERMA staffing,succession planning, and salary/benefits program.

Staffing ChartAttached is a staffing chart listing the major areas of services provided by PERMA by in-house staff and also by contract. The chart also provides the confirmed and possibleretirement dates of the current 5 employees.

Recruitment for the Claims Specialist PositionKaron Patterson, Claims Specialist, will retire February 1, 2017. The recruitment for theClaims Specialist position will start in September.

Succession Plans on General Manager and Claims ManagerAttached are the Succession Plans for the General Manager and Claims Manager. The plans address both a planned departure and an unplanned departure for the positions. Theplans have been updated with current compensation and benefits, and the contactinformation for Recruiting Firms and Publications has been updated/verified.

Salary and Benefits Survey A Salary and Benefits study was conducted in 2013. The study resulted in the Board takingthe following action effective July 1, 2014:

C approved a 7-step pay structure over the 5-step pay structure,C approved increases in annual salaries ranging from 3% to 16% (depending on

position),C approved an automatic salary adjustment based on CPI for Riverside for two years,C approved employees paying 100% of the CalPERS employee contributions, andC approved to conduct another study for consideration to be effective July 1, 2017.

The next Salary and Benefits study will be conducted in 2016-17 and considered by theExecutive Committee at its February 2, 2017 meeting.

REFERENCE MATERIAL ATTACHED:Staffing ChartSuccession Plan, Position: General ManagerSuccession Plan, Position: Liability Claims Manager

Page -2-

PERMA 5‐May‐16

Staffing Chart CONFIRMED /

YEARS POSSIBLE YEARS

@ PERMA RETIREMENT @ PERMA

AREA TITLE / FIRM NAME HIRE DATE CURRENT DATE RETIREMENT

1 Pool Administration

General Manager Scott Ellerbrock 30‐Aug‐90 25.70 1‐Sep‐20 30.03

2 Administrative Support

Secretary Jennifer Martin 6‐Oct‐14 1.58 6‐Oct‐34 20.01

3 Finance

Financial Analyst Mike Caton 15‐Jul‐96 19.82 1‐Oct‐22 26.23

4 General Liability Claims

Claims Manager Kerry Trost 4‐Jun‐12 3.92 4‐Jun‐19 7.00

Claims Specialist Karon Patterson 31‐Jan‐08 8.27 1‐Feb‐17 9.01

5 Workers' Comp. Claims

AdminSure ‐ ‐ ‐ ‐ ‐

Corvel ‐ ‐ ‐ ‐ ‐

York ‐ ‐ ‐ ‐ ‐

6 Employment Practices Claims

ERMA ‐ ‐ ‐ ‐ ‐

7 Property/DIC/Crime Claims

Alliant ‐ ‐ ‐ ‐ ‐

8 Risk Control Services

Bickmore ‐ ‐ ‐ ‐ ‐

sellerbrock

Highlight

sellerbrock

Highlight

Public Entity Risk Management Authority (PERMA)

Succession Plan

Position: General Manager

Reviewed by Executive Committee on May 5, 2016

Public Entity Risk Management Authority (PERMA)Succession Plan


Table of Contents

Succession Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Emergency Succession Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Job Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Job Advertisement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Compensation and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Cover Letter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Contact InformationRecruiting Firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Pooling Associations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Application for Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix A



Goal: To create a guide for the PERMA Board of Directors/Executive Committee to usein identifying/selecting a successor to the present General Manager.

1. Current General Manager’s Notification to the BoardA. The General Manager will first notify the President of his/her intention to leave.B. The President should attempt to negotiate at least a twelve-week notice from the

General Manager.C. The President will appoint an ad hoc Transition Committee (the Executive

Committee could assume this role).D. The President and/or General Manager advises the Board of Directors.

2. Transition Committee’s AgendaA. Review Job Description

The job description will be referenced 1) to write the ad for the position, 2) duringthe interviewing, 3) for ongoing guidance to the new General Manager, and 4)ensuring adequate compensation. Identify the most important criteria forselecting the new person and then rank the criteria (ranking comes in handywhen comparing candidates).

B. Determine Whether to Employ a Recruiting FirmThe Committee will need to decide whether to hire a professional recruiting firmor handle the hiring process themselves. The disadvantages of hiring arecruiting firm is the cost and time delay in the process. The TransitionCommittee will need to solicit bids from qualified recruiting firms and theninterview and select a recruiter. In a meeting, or series of meetings, thecommittee and recruiter will agree on the qualifications and attributes they areseeking in a General Manager. The Transition Committee should decide if theyare going to do a local and/or national search. This process may take 6 to 8weeks. The recruiter will need another 8 to 10 weeks to conduct a search ofcandidates and interview top candidates.

C. Advertise the PositionPost the full job description on the PERMA website. Prepare ads that include thejob title, general responsibilities, minimum skills and/or education required,benefits, salary range, whom they should send a resume to if they are interestedand by when, and a link to the job description on the PERMA website.

In addition to the regular job ad postings in newspapers and government jobpublications, post ads with risk management organizations such as PARMA,CAJPA, RIMS, and PRIMA.

Where appropriate, send cover letters and job descriptions to targetedprofessional organizations.

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D. Screen Resumes and ApplicationsShould the Committee decide to hire a recruiter, the recruiter can conduct theinitial screening and report to the committee his/her recommendations for the firstround of interviews.

If the Committee is screening the initial applications and resumes, the Committeeshould note the following:• Candidate’s career objective - or lack of it• Length of employment at previous jobs• Gaps of employment between jobs• Appropriate education and training for new role• Evidence of capabilities and skills in current and past work activities

E. Interview CandidatesShould the Executive Committee serve as the Transition Committee, theCommittee may experience scheduling difficulties since the Committee consistsof 7 Board members. The Interview Panel should consist of at least 4individuals, with the President and Vice-President serving as 2 of the individuals.

The Interview Panel may include the current General Manager, Board Counsel,and/or Broker as advisories. The Committee may also want to consider invitingthe Executive Director of another pool with which PERMA is familiar.

F. Check ReferencesTalking with references is an essential part of the process. Ensure that the list ofreferences includes employers and not just personal references. Conduct abackground check to ascertain if they have a criminal record.

G. Select the Candidate(s)The Interview Panel recommends the top two or three candidates to the entireBoard of Directors for discussion and selection.

If there are no suitable candidates - consider if the job requirements are toostringent or are an odd mix. Or, consider hiring the candidate who came in theclosest and plan for dedicated training to bring their skills to the needed levels.

If everyone turns down the job - the best strategy is to ask the candidates whythey turned the job down (e.g., pay is too low, organization seems confused onrole, process seemed contentious). Reconvene the Committee and recognizewhat went wrong and correct the problem. Call back the favorite candidates,admit the mistake, and explain why the organization would like to make an offeragain.

H. Offer LetterWhen the offer is accepted, always follow up with an offer letter, including theGeneral Manager contract which specifies the compensation, benefits, andstarting date.

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3. Administrative PreparationA. General Manager to develop roster of all Board members and service providers.B. General Manager to develop schedule of all major recurring activities during the

year (e.g., Board meetings, conferences, performance reviews, contract/leaseexpiration dates, budgets, newsletters, annual reports).

C. General Manager should complete performance reviews on all personnel beforehe/she leaves.

4. Interim Coordination

A. President and Vice President meets with General Manager to review officefacilities, procedures, and personnel issues.

B. Employment of an Acting General Manager might be necessary if the currentGeneral Manager must resign quickly. The hiring of an Acting General Managersolves the problem of dealing with critical problems immediately while providingthe organization the time to select and get ready for the next General Manager.

The advantages and disadvantages of hiring an outside executive versustemporarily promoting from within for the Interim are discussed below:

ExternalAdvantages• Fresh and experienced perspective• Not a candidate for the position -

greater objectivity

Disadvantages• Finding a qualified executive• Costly

InternalAdvantages• Save money• Less of a learning curve - familiar with

policies

Disadvantages• Objectivity and perspective not the

same as external• Knowing it’s a temporary appointment,

individual may not tackle tough issuesrequiring immediate attention

• Conflict if individual wants to apply forposition

5. Orienting New General ManagerA. Before the new General Manager begins employment, send him/her a welcome

letter to the organization, verifying the starting date and providing him/her a copyof the signed employment agreement.

B. The President, or assign a Board member to the new General Manager as their“buddy”, to brief them on strategic information and current issues, and to discussthe transition.

C. Introduce the new General Manager to staff before he/she begins employment. Staff will review all personnel and benefit forms, computer and office equipmentsystems, and passwords after he/she begins employment.

D. Ensure the new General Manager schedules orientation meetings with all serviceproviders.

Page -3-

Typical Timeline Employing a Recruiting Firm

< Committee solicits proposals and selects a recruiting firm . . . . . . . . . . . . . . 4 weeks< Committee meets with the recruiter, develops desired qualifications,

and recruiter conducts a search for candidates . . . . . . . . . . . . . . . . . . . . 6 weeks< Recruiter interviews top 10 - 15 candidates . . . . . . . . . . . . . . . . . . . . . . . . . 2 weeks< Recruiter meets with Committee to review results of interviews . . . . . . . . . 1 week < Committee interviews top 5 candidates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 week < Board interviews top 2 to 3 candidates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 week < Board makes an offer and negotiations commence . . . . . . . . . . . . . . . . . . 1 week < New General Manager starts work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 weeks

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 weeks

Typical Timeline Without Employing a Recruiting Firm

< Committee develops and posts job ad . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 weeks< Committee reviews applications and interviews top 5 candidates . . . . . . . . . 2 weeks< Board interviews top 2 to 3 candidates . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 week < Board makes an offer and negotiations commence . . . . . . . . . . . . . . . . . . 1 week < New General Manager starts work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 weeks

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 weeks

History of PERMA General Managers

Name Title Term Type of Recruitment

Scott Ellerbrock General Manager 09/97 - present Internal Promotion

Victor Lorch General Manager 06/95 - 09/97 External

Dennis Molloy Acting General Manager 05/95 - 06/95 Temporary Promotion

Robert Hallock General Manager 04/87 - 05/95 External

Les Cleveland General Manager (CVAG) 10/85 - 04/87 External

Page -4-

Public Entity Risk Management Authority (PERMA)Emergency Succession PlanPosition: General Manager

Goal: To create a guide for the PERMA Board of Directors/Executive Committee to usein identifying/selecting an Acting General Manager in the event of an unplannedabsence of the General Manager.

The General Manager job description is attached, which includes the essential jobfunctions of the position.

Succession Plan in the event of a temporary, unplanned absence - SHORT-TERM

1. DefinitionsA. A temporary absence is one in which it is expected that the General Manager

will return to his/her position once the events precipitating the absence areresolved.

B. An unplanned absence is one that arises unexpectedly, in contrast to a plannedleave, such as a vacation or a sabbatical.

C. A short-term absence is 3 months or less.

2. Notification to the BoardA. The Claims Manager will first notify the President of the unplanned absence of

the General Manager.B. The President will convene a meeting of the Executive Committee to affirm the

procedures described herein or to make modifications the Committee deemsappropriate.

C. The President advises the Board of Directors of the temporary leadershipstructure.

3. Standing appointee to the position of Acting General ManagerA. The Claims Manager will serve as Acting General Manager in the short term

absence of the General Manager.B. The back-up appointee will be the Financial Analyst.

4. CompensationA. The Acting General Manager will receive a temporary salary increase to the entry

level salary of the general manager position or to 20% above his/her currentsalary, whichever is greater.

5. Executive Committee responsible for oversight and support to the Acting GeneralManagerA. As with the present General Manager, the Executive Committee will have

responsibility for monitoring the work of the Acting General Manager.B. The Executive Committee will also be alert to the special support needs of the

executive in this temporary leadership role.

Page -5-

Succession Plan in the event of temporary, unplanned absence - LONG-TERM




C. A long-term absence is 3 months or more.

2. ProceduresThe procedures and conditions to be followed will be the same as for short-termabsence with one addition:

The Executive Committee will give immediate consideration, in consultation with theActing General Manager, to temporarily backfilling the management position leftvacant by the Acting General Manager.

The temporary backfilling may include the reassignment of the Claims Specialistposition, the hiring of a temporary manager, and/or contracting with a claimsadministration firm. The focus would be to cover the priority areas in which theActing General Manager needs assistance.

Succession Plan in the event of a PERMANENT, unplanned absence




C. A permanent absence is one in which it is firmly determined that the GeneralManager will not be returning to the position.

2. ProceduresThe procedures and conditions to be followed will be the same as for a long-termtemporary absence with one addition:

The President will appoint an ad hoc Transition Committee (the ExecutiveCommittee could assume this role) and follow the procedures to hire a new GeneralManager outlined in the Succession Plan of a planned absence.

Page -6-

Public Entity Risk Management Authority (PERMA)Job Description


Summary: Under the policy direction of the Public Entity Risk Management Authority(PERMA) Board of Directors, plans, organizes, coordinates and administers all PERMAfunctions and activities; provides administrative guidance to and supervision of PERMAstaff; and fosters cooperative working relationships with its member agencies, vendorsand staff. Facilitates complex decision making; carries out the General Manager'sduties specified in the Joint Powers Agreement; and performs related work as assigned.

Essential Job Functions: (Essential functions may include the following tasks,knowledge, skills and other characteristics. This list of tasks is ILLUSTRATIVE ONLY,and is not a comprehensive listing of all functions and tasks performed by positions inthis class.)

C Administers PERMA's affairs as determined by the organization's Joint PowersAgreement and Bylaws, policy directions from the Board of Directors and itsExecutive Committee.

C Serves as the Secretary of the organization.C Plans, organizes, coordinates and directs staff to develop goals and work activity

proposals of the organization which are then acted on by the Board of Directorsand/or its Executive Committee.

C Monitors the work of the organization's vendors/third party administrators to ensurecontract compliance and quality control.

C Advises the Board of Directors/Executive Committee on issues and programs.C Delivers well-prepared, concise and understandable public presentations.C Prepares and recommends long range plans for the organization's programs and

services and develops specific proposals for action.C Coordinates the preparation and administration of the organization's annual budget.C Represents the organization in contacts with its member agencies, other

governmental entities within and outside its service area, professional and otherorganizations directly or through subordinate staff.

C Responsible for the hiring and firing of all staff.C Directs the selection process, supervision and work evaluation of all employees.C Advises the Board of Directors on recommended pay scales for all employees

working under the direction of the General Manager.C Monitors and directs employee relations, staff development and grievance

procedures.

Knowledge and Skills:C Knowledge of administrative principles and program areas related to the

management of a joint powers insurance authority for local governmental agencies.Knowledge of computer systems and computer hardware, software and peripherals.

C Knowledge of insurance/risk management principles and programs.C Knowledge of general accounting practices, principles and methodologies.C Knowledge of claims settlement strategies and methodologies.

Page -7-

C Knowledge of legal requirements for risk management programs and services.

C Skill in assigning and leading the work of others.C Skill in preparing budgets and projecting costs for risk management programs.C Skill in composing narrative reports for statistical and financial reports and

recommendations.C Skill in analyzing various documents and researching sources for developing

possible risk management strategies.C Skill in preparing and conducting public presentations.C Skill in assessing large volumes of data to deduce trends and proper risk handling

strategies.

Minimum Qualifications:Bachelor’s Degree in Insurance, Risk Management, Public Administration or relatedfield; AND seven years experience in public risk management work including threeyears as a supervisor; AND an Associate in Risk Management for Public Entities (ARM-P) designation; AND a valid driver’s license; OR equivalent combination of education,training and experience.

Page -8-

Public Entity Risk Management Authority (PERMA)Job Advertisement


The Public Entity Risk Management Authority (PERMA), located in Palm Desert, CA, isseeking a General Manager who is responsible for the coordination, administration andmanagement of the organization’s liability, workers’ compensation, property, and otherinsurance programs. PERMA, a Joint Powers Authority (JPA), is made up of 32 publicentities, comprised of municipalities (22), transit (3), and special districts (7).

The General Manager reports to a Board of Directors and carries out the duties specifiedin the Joint Powers Agreement and related governing documents. The General Manageris responsible for the administration of all PERMA functions and activities. The GeneralManager provides administrative guidance to and supervision of PERMA staff; fosterscooperative working relationships with its member agencies, vendors and staff; facilitatescomplex decision making; analyzes situations and recommends appropriate action.

Any combination of education and experience equivalent to: bachelor’s degree ininsurance, risk management, public administration or related field; and seven yearsexperience in public risk management work including three years as a supervisor; and anAssociate in Risk Management for Public Entities (ARM-P) designation; and a valid driver’slicense.

For more about PERMA, contact information, a full job description, the compensation andbenefits, please visit the PERMA website at www.perma.dst.ca.us.

In order to be considered for this position, candidates must submit the required PERMAemployment application, which is available for download on the PERMA website.

Applications must be received by 4:30 p.m., Friday, [ENTER DATE].

Page -9-

Public Entity Risk Management Authority (PERMA)Compensation and BenefitsPosition: General Manager

Annual Salary $130,724 - $183,942

Travel Allowance$500 per month.

VacationVacation leave ranges from 10 days per year to 20 days per year depending upon theyears of service.

HolidaysThirteen holidays, four of which are floating, are provided each year.

Sick LeaveThirteen days of sick leave are provided each year.

Management Leave80 hours of paid administrative leave per year.

Health Insurance - Medical, Dental, VisionPERMA participates in the CalPERS medical insurance program which offers threePPOs (PERS Choice, PERS Care, and PERS Select) and two HMOs (Kaiser and BlueShield). Dental coverage is provided through Delta Dental, and vision coverage isprovided through UHC Vision.

Life InsuranceTerm life insurance in an amount equal to one-time the employee’s salary is providedby PERMA (capped at $150,000).

Disability InsuranceShort-term and long-term disability insurance is provided to employees providing abenefit of 60% of gross monthly earnings.

Public Employees’ Retirement System (CalPERS)PERMA employees are members of CalPERS. The retirement formula is 2% at age 62for “new members” as defined under PEPRA and 2.7% at age 55 for “classicemployees” as defined by PEPRA, with the costs being shared between PERMA andthe employee.

Deferred CompensationA deferred compensation program is offered through CalPERS allowing employees tosave and invest through pre-tax payroll deductions.

Page -10-

Public Entity Risk Management Authority (PERMA)Cover Letter


[DATE]

Dear _________________:

The Public Entity Risk Management Authority (PERMA), located in Palm Desert,California, has an exciting opportunity for a dynamic, progressive, and politically savvyleader to become the new General Manager.

Serving at the pleasure of the Board of Directors, the General Manager is charged withadministering the policies set by the Board and is delegated full responsibility andauthority for managing the day-to-day operations and activities of the organization.

PERMA is a joint powers authority providing various coverage programs and riskmanagement services to its thirty-one public agency members located throughoutsouthern California.

Ideal candidates will have a good breadth of insurance and risk managementknowledge and possess at least seven years of risk management experience in thepublic sector or closely related field. Excellent communication, project management,financial, and computer skills, as well as the ability to enhance the relationships with itsmembership, reinsurers, and vendors will serve the chosen candidate well. ABachelor’s degree from an accredited college or university in insurance or riskmanagement, or a related field such as public administration, and earned the ARM-Pdesignation are desirable.

The annual salary range for this position is $130,724 - $183,942 depending upon thecandidate’s experience and qualifications. A comprehensive benefit package is alsoprovided. To be considered for this career opportunity, please complete and submit theenclosed application along with a resume by Friday, [ENTER DATE] to:

President, Board of DirectorsPERMA36-951 Cook Street, Suite 101Palm Desert, CA 92211

For mor information about PERMA, you can visit the organization’s website atwww.perma.dst.ca.us.

Page -11-

Public Entity Risk Management Authority (PERMA)Contact Information


Recruiting Firms

CPS Executive Search241 Lathrop Way

Sacramento, CA 95815tel 916.263.1401

www.cpshr.us

Executive TrackersLos Angeles, CAtel 800.595.1845

www.executivetrackers.com

Professional RecruitingConsultants (PRC)6380 Wilshire Blvd.

Suite 1608Los Angeles, CA 90048

tel 323.988.1188www.professionalrecruitingc

onsultants.com

Avery Associates3 1/2 N. Santa Cruz Avenue,

Suite A Los Gatos, CA95030

tel: 408.399.4424www.averyassoc.net

Bob Murray & Assoc1544 Eureka Road

Suite 280Roseville, CA 95661

tel 916.784.9080www.bobmurrayassoc.com

Peckham & McKenney300 Harding Boulevard

Suite 106eRoseville, CA 95678

tel 866.912.1919www.peckhamandmckenney.com

Pooling Associations

CAJPACalifornia Association ofJoint Powers Authorities

700 R StreetSuite 200

Sacramento, CA 95811tel 916.231.2139www.cajpa.org

RIMSRisk and Insurance

Management Society5 Bryant Park

13th FloorNew York, NY 10018

tel 212.286.9292www.rims.org

PRIMAPublic Risk Management

Association700 S. Washington Street

Suite 218Alexandria, VA 22314

tel 703.528.7701www.primacentral.org

AGRIPAssociation of

Governmental Risk Pools9 Cornell Road

Latham, NY 12110tel 518.389.2782www.agrip.org

PARMAPublic Agency Risk

Managers Association1 Capitol Mall

Suite 800Sacramento, CA 95814

tel 844.467.2762www.parma.com

Page -12-

Publications

Desert SunP.O. Box 2734

Palm Springs, CA 92263 tel 800.233.3741

www.mydesert.com

San Bernardino Sun290 N. D Street

Suite 102San Bernardino, CA

92401tel 909. 889.9666www.sbsun.com

Press-Enterprise3450 Fourteenth Street

Riverside, California 92501tel 800.794.6397

www.pe.com

League of CA CitiesWestern Magazine

1400 K Street, 4th FloorSacramento, CA 95814

tel 916.658.8223www.westerncity.com

Government JobsDes Moines, IA 50208

tel 860.437.5700www.govtjobs.com

Jobs AvailableP.O. Box 1040

Modesto, CA 95353-1040tel 209.571.2120

www.jobsavailable.net

Careers in Government1345 S. Sierra Bonita

Los Angeles, CA 90019tel 310.403.8022

www.careersingovernment.com

Page -13-

Appendix A

Public Entity Risk

Management Authority (PERMA)

Application for Employment

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

(760) 360-4966 www.perma.dst.ca.us

An Equal Opportunity Employer / Americans With Disabilities Act

(EOE / ADA)

Position Desired: _______________________

Last Nam

e: __________________________ First N

ame: ___________________

MI: ____

http://www.perma.dst.ca.us/

PERMA – Application for Employment 2

YOUR CONTACT INFORMATION Instructions: Please fill out all pages of this form completely, either by typing or printing in ink. An original signature is required for each application unless submitted electronically. This application and any attachments become the property of PERMA.

Position You Are Applying For:

Your Name:

Last Name First Name MI

Your Mailing Address:

Street Address Apt. No.

City State Zip Code

Your Email Address (optional):

May we contact you at work? Yes No Your Telephone Number:

Home Phone Number Work Phone Number Cellular Phone/Other

( ) ( ) ( ) PERSONAL INFORMATION

Type of appointment you are seeking: Full-Time Part-Time Temporary

Do you have a valid driver’s license? Yes No Issuing State: _____ License Number: _____________ Expiration Date: _____________ License Class: _____________

Are you at least eighteen (18) years of age? Yes No Prior Military Service: _________________________________

If hired, can you provide proof that you are legally eligible to work in the United States? Yes No Have you ever worked or attended school under another name? If yes, what name? _______________________ Yes No

Bilingual Ability: Language: _______________________________ Understand Speak Read Write

Can you perform, with or without reasonable accommodation, the essential functions listed in the job description of the job for which you have applied? Yes No

Have you ever been employed by PERMA? If yes, hire date: ____________ exit date: _____________ Yes No

Do you have any relatives currently employed by PERMA? If yes, please provide name and relationship: ______________________________________________________ Yes No

Have you ever been dismissed or released from employment or have you ever resigned to avoid discharge? If yes, please explain: ___________________________________________________________________________ Yes No

Answering “Yes” to the question below does not constitute an automatic bar to employment. Factors such as age and time of the offense, seriousness and nature of the violation, and rehabilitation will be taken into account. When answering, do not include minor traffic infractions, any conviction for which the record has been sealed or expunged, any conviction for which probation has been successfully completed or otherwise discharged and the case has been judicially dismissed, referrals to and participation in any pretrial or post trial diversion programs, and marijuana-related offenses that occurred over two years ago in answering these questions. Have you pled guilty or “no contest” to, or been convicted of, a misdemeanor or felony? If yes, please state the nature of the offense(s), date(s), City, State and disposition. Date: ________________ City: __________________________ State: _____________ Offense: ____________________________________ Disposition:____________________________________ Yes No

EDUCATION & TRAINING Did you receive a high school diploma? Yes No Do you have a GED or High School Equivalency Diploma? Yes No Reference No. ___________ State ______ Date of Issuance _____________

High School Name Address, City, State, Zip


Training Beyond High School (College, University, Business College, or other schools) No. of years: 1 2 3 4 5 6 7 8 9+

Name & Location of Institution Dates Attended

Major GPA Degree: Yes No From To Describe any education or training not covered, which you feel is relevant to the job for which you are applying, include relevant licenses, certificates, certifications, professional registrations, or memberships you feel might be pertinent to the position. (Include type of license/registration, number and expiration date, and issuing agency) _________________________________________________________

WORK EXPERIENCE Instructions: The information required below must be submitted on this form. A resume can be attached as a supplement, but will not be accepted as a substitute for any portion of this form. Please account for the last ten (10) years beginning with your current or most recent employer. The work experience listed will be used to determine if you meet the minimum qualifications as stated on the job announcement. Applications that do not list related employment history/work experience will be considered incomplete and may be rejected; omitted information can not be considered or assumed. You may include volunteer experience and internships.

Employer Your Title Supervisor Supervisor Phone No. ( ) Address of Business (Street, City, State, Zip Code) Reason for Leaving

Your Duties Salary Hourly

Monthly Annually $

From (Month & Year) To (Month & Year)

Number of Employees Supervised: ______

May we contact your current or most recent employer? Yes No



Monthly Annually $




Your Duties $




PROFESSIONAL REFERENCES Please provide three (3) professional references from your most recent supervisors. Do not include friends or relatives. Name and Title Company Name Address (Street, City, State., Zip) Phone Number

( )

Email Address (if available) Name and Title Company Name Address (Street, City, State., Zip) Phone Number

( )

Email Address (if available): Name and Title Company Name Address (Street, City, State., Zip) Phone Number

( )

Email Address (if available) AUTHORIZATION TO RELEASE INFORMATION

I understand that PERMA may contact my previous employers. I authorize those employers to disclose to PERMA all records and information pertinent to my employment with them. In addition to authorizing the release of any information regarding my employment, I hereby waive any rights or claims I have or may have against my former employers, their agents, employees, and representatives, as well as other individuals who release information to PERMA, and release them from any and all liability, claims, or damages that may directly or indirectly result from the use, disclosure, or release of any such information by any person or party, whether such information is favorable or unfavorable to me. I authorize the persons named herein as personal references to provide PERMA with any pertinent information they may have regarding me.

______________________________________________________________ ____________________________________ Applicant’s Signaure Date

APPLICATION CERTIFICATION STATEMENT:

I hereby certify that the answers given by me on this application are true and correct to the best of my knowledge, and that I have not withheld any information that might adversely affect my chances for employment. I understand that any misstatement or omission of fact in this application or in any document used to obtain employment may result in rejection of this application, removal from any Employment List, disqualification from future consideration for employment with PERMA, or immediate discharge if I am employed, regardless of the time elapsed before discovery of the misstatement or omission. ______________________________________________________________ ____________________________________ Applicant’s Signature Date

Selection and Application Process: Possession of the minimum qualifications does not ensure that an applicant will be invited to the next phase of the examination process. PERMA reserves the right to invite only the most qualified applicants to participate in successive parts of the process. Candidates may be required to pass a physical examination. Accepted candidates may be required to pass a background investigation at PERMA’s expense. Some positions may require a live scan fingerprint background check and/or a drug screen examination. In compliance with the Immigration Reform and Control Act of 1986, all new employees must verify identity and entitlement to work in the United States by providing required original documentation.

Equal Opportunity Employer: PERMA encourages applications from all qualified candidates without regard to race, color, national origin, ancestry, sexual orientation, political affiliation or beliefs, religious affiliation or beliefs, sex, age, disability status, marital status, or pregnancy. We will endeavor to make a reasonable accommodation to the known physical or mental limitations of a qualified applicant with a disability unless the accommodation would impose an undue hardship on the operation of our business. If you believe you require such assistance to complete this form or to participate in an interview, please let us know. Resumes and Letters of Interest are encouraged and may be sent as attachments, but cannot substitute the PERMA Application. Submit your application to: PERMA, 36-951 Cook Street, Suite 101, Palm Desert, CA 92211, phone (760) 360-4966. Download a PERMA Application at www.perma.dst.ca.us.



VOLUNTARY EQUAL OPPORTUNITY EMPLOYER QUESTIONNAIRE

PERMA is an equal opportunity employer. The disclosure of the following information is voluntary and allows us to meet State and Federal government reporting requirements and evaluate the effectiveness of our recruitment efforts. This sheet will be removed from your application and the data will be kept confidential and will not be used in making employment decisions. Refusal to provide this information will not subject you to any adverse action.

Last Name First Name MI Date GENDER:

Male Female

RACIAL AND/OR ETHNIC HERITAGE PLEASE CHECK THE APPROPRIATE CATEGORY:

White, not Hispanic/Latino origin. A person having origins in any of the original peoples of Europe, the Middle East, or North Africa.

Black or African American, not Hispanic/Latino origin. A person having origins in any of the Black racial groups of Africa.

Hispanic or Latino. A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race.

American Indian or Alaskan Native, not Hispanic/Latino origin. A person having origins in any of the original peoples of North and South America, including Central America, and who maintain tribal affiliation or community attachment.

Asian, not Hispanic/Latino origin. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian Subcontinent, including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam.

Native Hawaiian or Other Pacific Islander, not Hispanic/Latino origin. A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands.

Two or more races, not Hispanic/Latino origin. All persons who identify with more than one of the above five races.

HOW DID YOU LEARN OF THIS VACANCY? PERMA Website (www.perma.dst.ca.us) Job Announcement Recruiter: __________________________________________

Referred By: ________________________________________

Newspaper: _________________________________________

Website: ___________________________________________

Other: _____________________________________________


Public Entity Risk Management Authority (PERMA)

Succession Plan

Position: Liability Claims Manager

Reviewed by Executive Committee on May 5, 2016



Table of Contents

Succession Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Emergency Succession Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Job Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Job Advertisement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Compensation and Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Contact InformationPooling Associations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Application for Employment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Appendix A



Goal: To create a guide for the PERMA General Manager to use in identifying/selectinga successor to the present Liability Claims Manager.

1. Current Liability Claims Manager’s Notification to the General ManagerA. The Liability Claims Manager will first notify the General Manager of his/her

intention to leave.B. The General Manager should attempt to negotiate at least a ten-week notice

from the Liability Claims Manager.C. The General Manager advises the Board of Directors.

2. General Manager’s AgendaA. Review Job Description

The job description will be referenced 1) to write the ad for the position, 2) duringthe interviewing, 3) for ongoing guidance to the new Claims Manager, and 4)ensuring adequate compensation. Identify the most important criteria forselecting the new person and then rank the criteria (ranking comes in handywhen comparing candidates).

B. Advertise the PositionPost the full job description on the PERMA website. Prepare ads that include thejob title, general responsibilities, minimum skills and/or education required,benefits, salary range, whom they should send a resume to if they are interestedand by when, and a link to the job description on the PERMA website.

In addition to the regular job ad postings in newspapers and government jobpublications, post ads with risk management organizations such as PARMA,CAJPA, RIMS, and PRIMA.

Where appropriate, send cover letters and job descriptions to targetedprofessional organizations.

D. Screen Resumes and ApplicationsThe General Manager should note the following during the screening of the initialapplications and resumes:• Candidate’s career objective - or lack of it• Length of employment at previous jobs• Gaps of employment between jobs• Appropriate education and training for new role• Evidence of capabilities and skills in current and past work activities

E. Interview CandidatesThe Interview Panel should consist of at least 3 individuals, the President orVice-President, General Manager, and Board Counsel.

Page -1-

The Interview Panel may include the current Liability Claims Manager as anadvisory. The General Manager may also want to consider inviting a LiabilityClaims Manager from another pool with which he/she is familiar.

F. Check ReferencesTalking with references is an essential part of the process. Ensure that the list ofreferences includes employers and not just personal references. Conduct abackground check to ascertain if they have a criminal record.

G. Select the Candidate(s)The Interview Panel will select the top two or three candidates for a finalselection by the General Manager.

If there are no suitable candidates - consider if the job requirements are toostringent or are an odd mix. Or, consider hiring the candidate who came in theclosest and plan for dedicated training to bring their skills to the needed levels.

If everyone turns down the job - the best strategy is to ask the candidates whythey turned the job down (e.g., pay is too low, organization seems confused onrole, process seemed contentious).

The General Manager will convene the Executive Committee to advise of whatwent wrong and correct the problem. The General Manager will call back his/herfavorite candidate, admit the mistake, and explain why he/she would like to makean offer again.

H. Offer LetterWhen the offer is accepted, the General Manager will follow up with an offerletter, which specifies the compensation, benefits, and starting date.

Typical Hiring Timeline

• General Manager develops and posts job ad . . . . . . . . . . . . . . . . . . . . . . . . 5 weeks• General Manager reviews applications and selects top 7 candidates . . . . . . 1 week• Interview Panel interviews candidates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 week• General Manager makes offer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 week• New Liability Claims Manager starts work . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 weeks

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 weeks

Page -2-

Public Entity Risk Management Authority (PERMA)Emergency Succession Plan


Goal: To create a guide for the PERMA General Manager to use in identifying/selectingan Acting Claims Manager in the event of an unplanned absence of the Liability ClaimsManager.

The Liability Claims Manager job description is attached, which includes the essentialjob functions of the position.

Succession Plan in the event of a temporary, unplanned absence - SHORT-TERM

1. DefinitionsA. A temporary absence is one in which it is expected that the Liability Claims

Manager will return to his/her position once the events precipitating the absenceare resolved.


C. A short-term absence is 3 months or less.

2. Standing appointee to the position of Acting Liability Claims ManagerA. The General Manager will serve as Acting Liability Claims Manager in the short

term absence of the Liability Claims Manager.B. The back-up appointee will be the Liability Claims Specialist.

3. CompensationA. If the Liability Claims Specialist is appointed as the Acting Liability Claims

Manager, he/she will receive a temporary salary increase to the entry level salaryof the Liability Claims Manager position or to 20% above his/her current salary,whichever is greater.

Succession Plan in the event of temporary, unplanned absence - LONG-TERM




C. A long-term absence is 3 months or more.

2. ProceduresThe procedures and conditions to be followed will be the same as for short-termabsence with one addition:

Page -3-

The General Manager will give immediate consideration to temporarily backfilling themanagement position left vacant by the Liability Claims Manager.

The temporary backfilling may include the reassignment of the Liability ClaimsSpecialist position, the hiring of a temporary manager, and/or contracting with aclaims administration firm. The focus would be to cover the priority areas in whichthe Acting Liability Claims Manager needs assistance.

Succession Plan in the event of a PERMANENT, unplanned absence




C. A permanent absence is one in which it is firmly determined that the GeneralManager will not be returning to the position.

2. ProceduresThe procedures and conditions to be followed will be the same as for a long-termtemporary absence with one addition:

The General Manager will follow the procedures to hire a new Liability ClaimsManager outlined in the Succession Plan of a planned absence.

Page -4-

Public Entity Risk Management Authority (PERMA)Job Description


Summary: Under general direction of the General Manager, performs professional levelfunctions involving the management of the liability claims program.

Essential Job Functions: (Essential functions may include the following tasks,knowledge, skills and other characteristics. This list of tasks is ILLUSTRATIVE ONLY, andis not a comprehensive listing of all functions and tasks performed by positions in thisclass.)

C Overall responsibility to manage and direct operation of PERMA’s liability claimsprogram.

C Receives, reviews and directs disposition of claims filed against member entities.C Establishes and maintains liability claim files, reserves and loss data.C Responsible for investigation, evaluation of liability and damages, negotiating and

settlement, litigation management and final disposition of liability claims.C Overall responsibility for management of data base and loss history.C Responsible for preparation of written reports, general correspondence, special reports

and projects related to liability claims.C Supervises and directs staff, outside adjusters and attorneys in the handling and

disposition of claims.C Attends settlement conferences, meetings and trials as necessary to effectively manage

litigated cases.C Attends Board and Executive Committee meetings, reports on status of liability claims

and makes recommendations as to action on claims.C Responsible for initial review of claims for coverage determination.C Coordinates and communicates with general counsel for legal opinions on coverage

relating to liability claims.C Prepares reservations of rights notices, declinations of coverage and other

communications to member entities relating to coverage and claims status.C Responsible for maintaining contact and communications with excess providers to

assure proper reporting of potential excess matters.C Responsible for review and approval of service billings for investigative and legal

services, forensic experts and other service providers related to the claims function.C Formulates and implements procedures for claims handling and litigation management.

Knowledge and Skills:C Knowledge of computerized spreadsheets and word processing.C Knowledge of risk management principles and programs.C Knowledge of insurance principles.C Knowledge of legal proceedings including depositions, interrogatories, trials, etc.C Knowledge of excess insurance reporting procedures, limits and responsibilities.C Knowledge of claims settlement strategies and methodologies.

Page -5-

C Skill in reading legal documents and court case proceedings to discern applicability toPERMA and its members.

C Skill in analyzing coverage.C Skill in preparing settlement terms, advice, negotiation and mediation strategies.C Skill in investigating claims details, logistics and exposures.C Skill in assigning and leading the work of others.C Skill in preparing training and presenting formal claims management strategies, status

and exposures to boards, attorneys, member agencies, and relevant parties.

Minimum Qualifications:Bachelor’s Degree in Insurance, Risk Management, Public Administration or related field;AND five years experience in public entity claims administration including two years as asupervisor; AND an Associate in Risk Management (ARM) designation; AND a validdriver’s license; OR equivalent combination of education, training and experience.

Page -6-

Public Entity Risk Management Authority (PERMA)Job Advertisement


The Public Entity Risk Management Authority (PERMA), located in Palm Desert, CA, isseeking a Liability Claims Manager who will be responsible for the management and directoperations of the liability claims program, which includes the development of policies,procedures, and systems. PERMA, a Joint Powers Authority (JPA), is made up of 32public entities, comprised of municipalities (22), transit (3), and special districts (7).

The position will perform a wide variety of claim services, such as investigation, evaluationof liability and damages, settlement negotiations, litigation management, and coveragedetermination. The position will also maintain expertise on current legislative and caselaws related to public sector litigation and consult with member entities on the dispositionof claims filed against them.

Any combination of education and experience equivalent to: bachelor’s degree ininsurance, risk management, public administration or related field; and five yearsexperience in public entity claims administration including two years as a supervisor; andan Associate in Risk Management for Public Entities (ARM-P) designation; and a validdriver’s license.

For more information about PERMA, a full job description, compensation and benefits,please visit the PERMA website at www.perma.dst.ca.us.

In order to be considered for this position, candidates must submit the required PERMAemployment application, which is also available for download on the PERMA website.

Applications must be received by 4:30 p.m., Friday, [ENTER DATE].

Page -7-

Public Entity Risk Management Authority (PERMA)Compensation and Benefits


Annual SalaryStep1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7$86,814 $91,155 $95,713 $100,499 $105,524 $110,800 $116,340

VacationVacation leave ranges from 10 days per year to 20 days per year depending upon theyears of service.

HolidaysThirteen holidays, four of which are floating, are provided each year.

Sick LeaveThirteen days of sick leave are provided each year.

Management LeaveManagement employees receive 40 hours of paid administrative leave per year.

Health Insurance - Medical, Dental, VisionPERMA participates in the CalPERS medical insurance program which offers threePPOs (PERS Choice, PERS Care, and PERS Select) and two HMOs (Kaiser and BlueShield). Dental coverage is provided through Delta Dental, and vision coverage isprovided through UHC Vision.

Life InsuranceTerm life insurance in an amount equal to one-time the employee’s salary is providedby PERMA.

Disability InsuranceShort-term and long-term disability insurance is provided to employees providing abenefit of 60% of gross monthly earnings.

Public Employees’ Retirement System (CalPERS)PERMA employees are members of CalPERS. The retirement formula is 2% at age 62for “new members” as defined under PEPRA and 2.7% at age 55 for “classicemployees” as defined by PEPRA, with the costs being shared between PERMA andthe employee.

Deferred CompensationA deferred compensation program is offered through CalPERS allowing employees tosave and invest through pre-tax payroll deductions.

Page -8-

Pooling Associations

CAJPACalifornia Association ofJoint Powers Authorities

700 R StreetSuite 200

Sacramento, CA 95811tel 916.231.2139www.cajpa.org

RIMSRisk and Insurance

Management Society5 Bryant Park

13th FloorNew York, NY 10018

tel 212.286.9292www.rims.org

PRIMAPublic Risk Management

Association700 S. Washington Street

Suite 218Alexandria, VA 22314

tel 703.528.7701www.primacentral.org

AGRIPAssociation of

Governmental Risk Pools9 Cornell Road

Latham, NY 12110tel 518.389.2782www.agrip.org

PARMAPublic Agency Risk

Managers Association1 Capitol Mall

Suite 800Sacramento, CA 95814

tel 844.467.2762www.parma.com

Publications / Resources

Desert SunP.O. Box 2734

Palm Springs, CA 92263 tel 800.233.3741

www.mydesert.com

San Bernardino Sun290 N. D Street

Suite 102San Bernardino, CA

92401tel 909. 889.9666www.sbsun.com

Press-Enterprise3450 Fourteenth Street

Riverside, California 92501tel 800.794.6397

www.pe.com

League of CA CitiesWestern Magazine

1400 K Street, 4th FloorSacramento, CA 95814

tel 916.658.8223www.westerncity.com

The Best InsuranceRecruiting Specialists (IRS)18685 N. Cave Creek Road

Phoenix, AZ 85032www.thebestirs.com

Government JobsDes Moines, IA 50208

tel 860.437.5700www.govtjobs.com

Jobs AvailableP.O. Box 1040

Modesto, CA 95353-1040tel 209.571.2120

www.jobsavailable.net

Careers in Government1345 S. Sierra Bonita

Los Angeles, CA 90019tel 310.403.8022

www.careersingovernment.com

Page -9-

Appendix A

Public Entity Risk

Management Authority (PERMA)

Application for Employment

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

(760) 360-4966 www.perma.dst.ca.us

An Equal Opportunity Employer / Americans With Disabilities Act

(EOE / ADA)

Position Desired: _______________________

Last Nam

e: __________________________ First N

ame: ___________________

MI: ____



YOUR CONTACT INFORMATION Instructions: Please fill out all pages of this form completely, either by typing or printing in ink. An original signature is required for each application unless submitted electronically. This application and any attachments become the property of PERMA.

Position You Are Applying For:

Your Name:

Last Name First Name MI

Your Mailing Address:

Street Address Apt. No.

City State Zip Code

Your Email Address (optional):

May we contact you at work? Yes No Your Telephone Number:

Home Phone Number Work Phone Number Cellular Phone/Other

( ) ( ) ( ) PERSONAL INFORMATION

Type of appointment you are seeking: Full-Time Part-Time Temporary

Do you have a valid driver’s license? Yes No Issuing State: _____ License Number: _____________ Expiration Date: _____________ License Class: _____________

Are you at least eighteen (18) years of age? Yes No Prior Military Service: _________________________________

If hired, can you provide proof that you are legally eligible to work in the United States? Yes No Have you ever worked or attended school under another name? If yes, what name? _______________________ Yes No

Bilingual Ability: Language: _______________________________ Understand Speak Read Write

Can you perform, with or without reasonable accommodation, the essential functions listed in the job description of the job for which you have applied? Yes No

Have you ever been employed by PERMA? If yes, hire date: ____________ exit date: _____________ Yes No

Do you have any relatives currently employed by PERMA? If yes, please provide name and relationship: ______________________________________________________ Yes No

Have you ever been dismissed or released from employment or have you ever resigned to avoid discharge? If yes, please explain: ___________________________________________________________________________ Yes No

Answering “Yes” to the question below does not constitute an automatic bar to employment. Factors such as age and time of the offense, seriousness and nature of the violation, and rehabilitation will be taken into account. When answering, do not include minor traffic infractions, any conviction for which the record has been sealed or expunged, any conviction for which probation has been successfully completed or otherwise discharged and the case has been judicially dismissed, referrals to and participation in any pretrial or post trial diversion programs, and marijuana-related offenses that occurred over two years ago in answering these questions. Have you pled guilty or “no contest” to, or been convicted of, a misdemeanor or felony? If yes, please state the nature of the offense(s), date(s), City, State and disposition. Date: ________________ City: __________________________ State: _____________ Offense: ____________________________________ Disposition:____________________________________ Yes No

EDUCATION & TRAINING Did you receive a high school diploma? Yes No Do you have a GED or High School Equivalency Diploma? Yes No Reference No. ___________ State ______ Date of Issuance _____________

High School Name Address, City, State, Zip


Training Beyond High School (College, University, Business College, or other schools) No. of years: 1 2 3 4 5 6 7 8 9+

Name & Location of Institution Dates Attended

Major GPA Degree: Yes No From To Describe any education or training not covered, which you feel is relevant to the job for which you are applying, include relevant licenses, certificates, certifications, professional registrations, or memberships you feel might be pertinent to the position. (Include type of license/registration, number and expiration date, and issuing agency) _________________________________________________________

WORK EXPERIENCE Instructions: The information required below must be submitted on this form. A resume can be attached as a supplement, but will not be accepted as a substitute for any portion of this form. Please account for the last ten (10) years beginning with your current or most recent employer. The work experience listed will be used to determine if you meet the minimum qualifications as stated on the job announcement. Applications that do not list related employment history/work experience will be considered incomplete and may be rejected; omitted information can not be considered or assumed. You may include volunteer experience and internships.



Monthly Annually $



May we contact your current or most recent employer? Yes No



Monthly Annually $




Your Duties $




PROFESSIONAL REFERENCES Please provide three (3) professional references from your most recent supervisors. Do not include friends or relatives. Name and Title Company Name Address (Street, City, State., Zip) Phone Number

( )

Email Address (if available) Name and Title Company Name Address (Street, City, State., Zip) Phone Number

( )

Email Address (if available): Name and Title Company Name Address (Street, City, State., Zip) Phone Number

( )

Email Address (if available) AUTHORIZATION TO RELEASE INFORMATION

I understand that PERMA may contact my previous employers. I authorize those employers to disclose to PERMA all records and information pertinent to my employment with them. In addition to authorizing the release of any information regarding my employment, I hereby waive any rights or claims I have or may have against my former employers, their agents, employees, and representatives, as well as other individuals who release information to PERMA, and release them from any and all liability, claims, or damages that may directly or indirectly result from the use, disclosure, or release of any such information by any person or party, whether such information is favorable or unfavorable to me. I authorize the persons named herein as personal references to provide PERMA with any pertinent information they may have regarding me.

______________________________________________________________ ____________________________________ Applicant’s Signaure Date

APPLICATION CERTIFICATION STATEMENT:

I hereby certify that the answers given by me on this application are true and correct to the best of my knowledge, and that I have not withheld any information that might adversely affect my chances for employment. I understand that any misstatement or omission of fact in this application or in any document used to obtain employment may result in rejection of this application, removal from any Employment List, disqualification from future consideration for employment with PERMA, or immediate discharge if I am employed, regardless of the time elapsed before discovery of the misstatement or omission. ______________________________________________________________ ____________________________________ Applicant’s Signature Date

Selection and Application Process: Possession of the minimum qualifications does not ensure that an applicant will be invited to the next phase of the examination process. PERMA reserves the right to invite only the most qualified applicants to participate in successive parts of the process. Candidates may be required to pass a physical examination. Accepted candidates may be required to pass a background investigation at PERMA’s expense. Some positions may require a live scan fingerprint background check and/or a drug screen examination. In compliance with the Immigration Reform and Control Act of 1986, all new employees must verify identity and entitlement to work in the United States by providing required original documentation.

Equal Opportunity Employer: PERMA encourages applications from all qualified candidates without regard to race, color, national origin, ancestry, sexual orientation, political affiliation or beliefs, religious affiliation or beliefs, sex, age, disability status, marital status, or pregnancy. We will endeavor to make a reasonable accommodation to the known physical or mental limitations of a qualified applicant with a disability unless the accommodation would impose an undue hardship on the operation of our business. If you believe you require such assistance to complete this form or to participate in an interview, please let us know. Resumes and Letters of Interest are encouraged and may be sent as attachments, but cannot substitute the PERMA Application. Submit your application to: PERMA, 36-951 Cook Street, Suite 101, Palm Desert, CA 92211, phone (760) 360-4966. Download a PERMA Application at www.perma.dst.ca.us.



VOLUNTARY EQUAL OPPORTUNITY EMPLOYER QUESTIONNAIRE

PERMA is an equal opportunity employer. The disclosure of the following information is voluntary and allows us to meet State and Federal government reporting requirements and evaluate the effectiveness of our recruitment efforts. This sheet will be removed from your application and the data will be kept confidential and will not be used in making employment decisions. Refusal to provide this information will not subject you to any adverse action.

Last Name First Name MI Date GENDER:

Male Female

RACIAL AND/OR ETHNIC HERITAGE PLEASE CHECK THE APPROPRIATE CATEGORY:

White, not Hispanic/Latino origin. A person having origins in any of the original peoples of Europe, the Middle East, or North Africa.

Black or African American, not Hispanic/Latino origin. A person having origins in any of the Black racial groups of Africa.

Hispanic or Latino. A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race.

American Indian or Alaskan Native, not Hispanic/Latino origin. A person having origins in any of the original peoples of North and South America, including Central America, and who maintain tribal affiliation or community attachment.

Asian, not Hispanic/Latino origin. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian Subcontinent, including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand and Vietnam.

Native Hawaiian or Other Pacific Islander, not Hispanic/Latino origin. A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands.

Two or more races, not Hispanic/Latino origin. All persons who identify with more than one of the above five races.

HOW DID YOU LEARN OF THIS VACANCY? PERMA Website (www.perma.dst.ca.us) Job Announcement Recruiter: __________________________________________

Referred By: ________________________________________

Newspaper: _________________________________________

Website: ___________________________________________

Other: _____________________________________________
