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HomeMy WebLinkAboutMWMC Agenda Packet AGENDA II.a. AGENDA II.b. ______________________________________________________________________________ AGENDA IV. • • • Digital Signature: Attachment 1 Page 1 of 2 Digital Signature: Digital Signature: Attachment 1 Page 2 of 2 User fees, Septage fees Interest income Other Operating Revenues SDC reimbursement fees SDC Improvement fees Interest earnings To cover cash flow needs between receipts To cover expenses for 2 months in unforeseen circumstances. For use to avoid major rate swings Required by bond covenants, it’s only use is to increase net reve- nues if ever we are in danger of not meeng our coverage rao. Required by DEQ loan documents to guarantee payment of debt service on SRF loans. Toward high deducble in the event of major claim. To fund capital projects as determined by the Commission in the CIP plan. Funded by operang revenues to save for recurring replacement of equipment and vehicles as determined by the asset management team. Used for capital projects that qualify for use of SDC revenues per ORS 223.307 including debt service repayment. SRF Loan Reserves $50K — 0.1% Capital Reserve $22.3M — 40.5% Equip. Replacement Reserve $12.3M —22.3% SDC Reserves $8.2M —14.9% Insurance Reserve $1.5M — 2.7% Rate Stabilizaon Reserve $2M — 3.6% Rate Stability Reserve $2M — 3.6% Operang Reserve $5.9M —10.6% Working Capital Reserve $900K —1.6% Reserves after FY24 SB2 Total of Reserves: $55.3M Attachment 2 Page 1 of 2 User fees, Septage fees Interest income Other Operating Revenues SDC reimbursement fees SDC Improvement fees Interest earnings To cover cash flow needs between receipts To cover expenses for 2 months in unforeseen circumstances. For use to avoid major rate swings Required by bond covenants, it’s only use is to increase net reve- nues if ever we are in danger of not meeng our coverage rao. Required by DEQ loan documents to guarantee payment of debt service on SRF loans. Toward high deducble in the event of major claim. To fund capital projects as determined by the Commission in the CIP plan. Funded by operang revenues to save for recurring replacement of equipment and vehicles as determined by the asset management team. Used for capital projects that qualify for use of SDC revenues per ORS 223.307 including debt service repayment. SRF Loan Reserves $50K — 0.1% Insurance Reserve $1.5M — 2.7% Reserves after FY24 SB3 Total of Reserves: $54.6M SDC Reserves $8.2M — 15% Equip. Replacement Reserve $12.3M — 22.5% Capital Reserve $22.4M — 41% Rate Stabilizaon Reserve $2M — 3.7% Rate Stability Reserve $2M — 3.7% Working Capital Reserve $900K — 1.6% Operang Reserve $5.3M — 9.7% Attachment 2 Page 2 of 2 ______________________________________________________________________________ AGENDA V. Attachment 1 Page 1 of 3 Attachment 1 Page 2 of 3 Attachment 1 Page 3 of 3 Named Insured: Metropolitan Wastewater Management Commission Effective Dates: July 1, 2024 - July 1, 2025 Brown & Brown Insurance Services, Inc California License #0F09618 Attachment 2 Page 1 of 10 This proposal is based upon the exposures made known to the Agency by you and contains only a general description of the coverage(s) and does not constitute a policy/contract. For complete policy information, including exclusions, limitations, and conditions, please refer to your policy. In the event of difference, the policy will prevail. BROWN & BROWN 2 of 27 Table of Contents Executive Summary ................................................................................. 5 Premium Summary .................................................................................. 6 AM Best Rating Disclosure ...................................................................... 7 Schedule of Other Policies ...................................................................... 8 SDIS Property Quote ............................................................................... 9 Coverage Side-by-Side ......................................................................... 10 Property (SDIS) ..................................................................................... 11 Equipment Breakdown (SDIS) ............................................................... 14 Property (Starr) ...................................................................................... 15 Compensation Disclosure ...................................................................... 17 Common Policy Exclusions ................................................................... 18 Risk Management Services ................................................................... 19 Property Schedule ................................................................................. 21 Equipment Schedule.............................................................................. 25 Attachment 2 Page 2 of 10 This proposal is based upon the exposures made known to the Agency by you and contains only a general description of the coverage(s) and does not constitute a policy/contract. For complete policy information, including exclusions, limitations, and conditions, please refer to your policy. In the event of difference, the policy will prevail. BROWN & BROWN 3 of 27 Who We Are Growth has no finish line. No matter where you are on your growth journey, we can help you find solutions to meet your ever-evolving insurance and risk management needs. If you are a highly complex multinational company, an individual or anything in between, our experienced teams can help every step of the way. Attachment 2 Page 3 of 10 This proposal is based upon the exposures made known to the Agency by you and contains only a general description of the coverage(s) and does not constitute a policy/contract. For complete policy information, including exclusions, limitations, and conditions, please refer to your policy. In the event of difference, the policy will prevail. BROWN & BROWN 4 of 27 Preparing You for Tomorrow’s Risks—Today™ We pride ourselves on our ability to couple national strength with local, personalized service. Our Brown & Brown of Oregon, LLC - based team is as connected to the more than 15,000 teammates across Brown & Brown and our team of companies as it is here in our community. We have become a leading insurance brokerage because we view insurance differently and utilize our vast experience and wide-reaching network to deliver superior service and solutions to our customers, both big and small. We believe that our teammates and the relationships they form with our customers are our strength. Our reputation has been built on a solid foundation of teamwork, strengthened by people who are dedicated to providing the highest degree of service. Our team thanks you for the opportunity to work together. Please find our contact information below. Service Team – Brown & Brown Insurance Services, Inc Name Phone Email PROPERTY & CASUALTY  Account Executive Geoff Sinclair, ARM (503)790-9364 geoffrey.sinclair@bbrown.com Account Manager Jess Butler, CISR (503)525-5452 jess.butler@bbrown.com CLAIMS & RISK MANAGEMENT Tim Clarke, MLS, CPCU, AIC (503)219-3223 tim.clarke@bbrown.com Betsy Shenk (503)219-3289 betsy.shenk@bbrown.com Jonathan Stephens, ARM, AIC, AIS (503)219-3297 jonathan.stephens@bbrown.com Jessica Van der Weilen (503)219-3274 jessica.vanderwielen@bbrown.com MAIN PHONE (503)274-6511 MAIN FAX (503)274-6524 Attachment 2 Page 4 of 10 This proposal is based upon the exposures made known to the Agency by you and contains only a general description of the coverage(s) and does not constitute a policy/contract. For complete policy information, including exclusions, limitations, and conditions, please refer to your policy. In the event of difference, the policy will prevail. BROWN & BROWN 5 of 27 Executive Summary The insurance landscape for public entities has undergone notable shifts over the better part of four years, influenced by various factors including emerging risks, regulatory changes, and market dynamics. With the increasing frequency and severity of lawsuits against municipalities, schools, and other government bodies, the demand for comprehensive coverage remains strong. Reinsurers are grappling with the challenge of pricing risks adequately while navigating a volatile claims environment. High-profile incidents such as cyberattacks, civil rights violations, and natural disasters have raised the stakes and need for comprehensive coverage among public entities, prompting insurers to reassess their underwriting strategies and risk management protocols. The 2024-25 renewal market shows slight improvements compared to recent policy years, with some lines of coverage faring better than others. Property/Reinsurance Rates: Market rates have increased substantially across coverage lines, but insurers are targeting 2024 growth in some sectors, creating welcome competition in the reinsurance market. We believe rates will continue to press upwards slightly and property valuations will remain a focus. However, after six years of rate increases and high loss ratios, 2023 was profitable for property reinsurers, signaling some potential relief. Attachment 2 Page 5 of 10 This proposal is based upon the exposures made known to the Agency by you and contains only a general description of the coverage(s) and does not constitute a policy/contract. For complete policy information, including exclusions, limitations, and conditions, please refer to your policy. In the event of difference, the policy will prevail. BROWN & BROWN 6 of 27 Premium Summary Line of Business Expiring Premium (Inception) Renewal Premium Carrier Starr Surplus Lines Insurance Company Starr Surplus Lines Insurance Company Admitted/AM Best NonAdmitted/A XV NonAdmitted/A XV Property $446,040.00 Pending Boiler & Machinery Inspection Fee $4,000.00 Pending OR Surplus Lines Tax $9,000.08 Pending Stamping Fee $10.00 Pending Fire Marshal Tax $1,35012 Pending Total Package Premium $460,400.92 Pending Broker Service Fee $29,240.00 $30,118.00 Grand Total $489,640.92 Pending Payment Plans Line of Business Payment Plan Billing Plan Property & Broker Service Fee Due on effective date Billed by Brown & Brown Subjectivities: Signed Statement of Values Signed/completed terrorism forms. You must elect or reject coverage. The additional premium plus any fees and taxes will apply if signed rejection is not received by company or if electing coverage. Signed Non-Admitted Carrier Statements Attachment 2 Page 6 of 10 This proposal is based upon the exposures made known to the Agency by you and contains only a general description of the coverage(s) and does not constitute a policy/contract. For complete policy information, including exclusions, limitations, and conditions, please refer to your policy. In the event of difference, the policy will prevail. BROWN & BROWN 7 of 27 FSC Adjusted Policyholders Surplus I Less than 1 II 1 to 2 III 2 to 5 IV 5 to 10 V 10 to 25 VI 25 to 50 VII 50 to 100 VIII 100 to 250 Note: Ranges are in millions of U.S. Dollars FSC Adjusted Policyholders Surplus IX 250 to 500 X 500 to 750 XI 750 to 1,000 XII 1,000 to 1,250 XIII 1,250 to 1,500 XIV 1,500 to 2,000 XV Greater than 2,000 AM Best Rating Disclosure A.M. Best's ratings are independent opinions, based on a comprehensive quantitative and qualitative evaluation, of a company's balance sheet strength, operating performance, and business profile. They are not a warranty of a company's financial strength and ability to meet either its obligations to policyholders or its financial obligations. Financial Strength Ratings provide an opinion of an insurer’s financial strength and ability to meet ongoing obligations to policyholders. The following table outlines the rating scale and associated descriptions: Secure Vulnerable A++, A+ Superior B, B- Fair A, A- Excellent C++, C+ Marginal B++, B+ Very Good C, C- Weak D Poor E Under Regulatory Supervision F In Liquidation S Rating Suspended To enhance the usefulness of these ratings, A.M. Best assigns each letter-rated (A++ through D) insurance company a Financial Size Category (FSC). The FSC is designed to provide a convenient indicator of the size of a company in terms of its statutory surplus and related accounts. The following table outlines the financial size categories: Attachment 2 Page 7 of 10 This proposal is based upon the exposures made known to the Agency by you and contains only a general description of the coverage(s) and does not constitute a policy/contract. For complete policy information, including exclusions, limitations, and conditions, please refer to your policy. In the event of difference, the policy will prevail. BROWN & BROWN 8 of 27 Schedule of Other Policies Policy Number Policy Description Policy Term Insurance Company Premium 39P580025170 General Liability 01/01/24 – 01/01/25 Special Districts Insurance Services Trust $35,568 Attachment 2 Page 8 of 10 This proposal is based upon the exposures made known to the Agency by you and contains only a general description of the coverage(s) and does not constitute a policy/contract. For complete policy information, including exclusions, limitations, and conditions, please refer to your policy. In the event of difference, the policy will prevail. BROWN & BROWN 9 of 27 SDIS Property Quote Line of Business Premium Carrier Special Districts Insurance Services Trust Admitted/AM Best Admitted/Not Rated Quote Option 1 - $150,000 Deductible Property/Equipment $473,315.00 Earthquake $6,277.00 Flood $2,947.00 Equipment Breakdown $95,411.00 Best Practices Credit ($54,155.00) Total Package Premium $523,795.00 Quote Option 2 - $100,000 Deductible Property/Equipment $513,503.00 Earthquake $6,277.00 Flood $2,947.00 Equipment Breakdown $95,411.00 Best Practices Credit ($58,753.00) Total Package Premium $559,385.00 *Quote reflects annual premium, premium will be prorated based on a July 1, 2024 effective date. Payment Plans Line of Business Payment Plan Billing Plan SDIS Package Due to SDIS Directly billed by SDIS Subjectivities: Signed Statement of Values Attachment 2 Page 9 of 10 This proposal is based upon the exposures made known to the Agency by you and contains only a general description of the coverage(s) and does not constitute a policy/contract. For complete policy information, including exclusions, limitations, and conditions, please refer to your policy. In the event of difference, the policy will prevail. BROWN & BROWN 10 of 27 Coverage Side-by-Side Carrier Starr Surplus Lines Insurance Company (Incumbent) Special Districts Insurance Services Trust Premium Pending $559,363.00 Admitted/Non Admitted Non Admitted Admitted A.M. Best Rating A XV Not Rated by AM Best Limit Sharing n/a Shared limit with all SDIS members Policy Dates 07/01/2024 - 07/01/2025 01/01/2024 - 01/01/2025 COVERAGES Building & Personal Property $100,000,000 per occurrence $420,480,720 Equipment $100,000,000 per occurrence $2,837,781 Earthquake $50,000,000 $10,000,000 Flood $100,000,000 $10,000,000 Sewer Pipes $10,000,000 $87,914,920 Owosso Pedestrian/Bike Bridge $2,500,000 $3,500,000 Trees (Including Poplar Grove), Shrubs, Plants $250,000 Poplar Grove excluded Total Insured Values $423,318,501 $423,318,501 Perils Risks of Direct Physical Loss - subject to policy terms and conditions Risks of Direct Physical Loss - Subject to policy terms and conditions Boiler and Machinery/Equipment Breakdown Included $100,000,000 Business Interruption $5,000,000 $1,000,000 Contingent Business interruption $3,000,000 Not Stated Debris Removal $10,000,000 $5,000,000 Errors & Omissions $2,500,000 Not Stated Expediting Expenses $1,000,000 $10,000,000 Course of Construction $10,000,000 $2,000,000 Newly Acquired Property $10,000,000 $500,000 Trees, Shrubs, Plants & Lawns $250,000 Not Stated VALUATION Real and BPP Agreed Value Replacement Cost Mobile Equipment Actual Cash Value Stated Value DEDUCTIBLES Property / BPP $250,000 $150,000 Mobile Equipment Included $10,000 Earth Movement 2% / $250,000 minimum 2% / $150,000 Flood $500,000 2% / $150,000 Sewer Pipes $500,000 $150,000 Attachment 2 Page 10 of 10 AGENDA VI.