May 30, 2018

PURMIT Board of Trustees Meeting – February 14, 2018

PURMIT Board of Trustees Meeting

February 14, 2018

Minutes


Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Patrick Hughes (OSU), Greg Perkinson (SOU), Vivian Chen (OIT)

Others Present: Sheryl Sattler, Jon Weber and Ryan Britz (Berkley), Jessica Gettman, Ron Graybeal, Shelley Dalmau (BBNW, Craig Scukas (PWC), Jamie Kilcoyne and Taylor Marsden (K Financial) and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 9:00 a.m.

 

Roll Call

Roll call was taken. Mr. Roy welcomed Greg Perkinson as Trustee representing SOU.  Mr. Perkinson introduced himself and noted that he was the VP of Finance and Administration for SOU.

Review and Approval of Minutes

Meeting minutes from the August 18, 2017 PURMIT Board of Trustees meeting were reviewed and discussed.  Mr. Hagemann noted that Mr. Catz’s name was misspelled on the September 21, 2017 meeting minutes.  Mr. Britz noted he would make the change.

Action:

A motion was made by Mr. Roy to approve all minutes with the change requested by Mr. Hagemann. The motion was seconded by Mr. Hagemann.  The motion carried with no objections.

PURMIT Financial Auditors Report for Fiscal Year 2016-2017 – K Financial

Mr. Kilcoyne and Mr. Marsden presented their audited financial report. Mr. Kilcoyne commented that this is the third year that K Financial has performed the audit on behalf of PURMIT.  Mr. Kilcoyne discussed the auditors letter and noted that there were no significant findings as a result of their audit that management’s estimates for reserves are at appropriate levels.  Mr. Kilcoyne noted that the Management Discussion and Analysis document is a requirement for the audit process and it provides a high level overview of the program and K Financial’s results.  The auditors issued a clean opinion.  Mr. Kilcoyne noted that loss reserves decreased for prior years, as shown by the actuarial report, and K Financial noted that the reserves were fairly stated.  Mr. Kilcoyne then thanked the group for their confidence selecting K Financial to perform PURMIT’s financial audit.

Action:

No action taken at this time.

Financial Review as of October 31, 2017

Ms. Sattler from Berkley Risk presented the financial information as of October 31, 2017. Ms. Sattler discussed the financial results, noting PURMIT had $7.9M of member contributions, $2.1M of operating revenue and a net income of $825K, resulting in an overall surplus of $7.2M for the year.   Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $18.6M in assets and $11.377M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $20K of investment income.  Mr. Roy asked about the restitution payments being received by the Trust and whether those funds should be sent back to the Member or remain in the Trust.  Ms. Sattler commented that the Trust member has been reimbursed for their portion of the loss by the Trust and the restitution payments should remain with the Trust account.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the proforma document and its trajectory out to 2021. Ms. Sattler noted that the proforma document included the SAIF dividend for the group.  Ms. Sattler also commented that the proforma includes options to return 25% or 50% of the SAIF dividend to PURMIT members.  The group discussed the options for returning a portion of the SAIF dividend to the members.  Mr. Roy commented that additional information was needed regarding the Trusts financial position and goals before moving forward.  Mr. Hughes commented that the group needs to explore options that will assist the Trust with setting appropriate financial goals and ways in which the goals can be achieved, and finally what to do with the funds once the appropriate funding levels have been achieved.  Mr. Parker commented that there are several ways the funds can be utilized to benefit the members, depending on what the groups is looking to do.  Mr. Britz commented that PricewaterhouseCoopers, PURMIT’s actuary, has the ability to perform this function and provide guidance to PURMIT.  Mr. Roy requested that Mr. Britz work with Mr. Scukas to provide a proposal for consideration with the goal to develop an appropriate plan to guide the group in establishing their surplus targets.

Action:

No action taken at this time.

July 1, 2018 Renewal Process and Timeline

Mr. Britz presented to the Trustees the desired timeline for the upcoming renewal activities. Mr. Graybeal discussed the approach that the BBNW team will be taking for each of the Trust’s coverages, and desired options and outcomes resulting from their renewal activities.  Mr. Hughes commented that he has some concerns with TBI exposure and what approach PURMIT’s liability carrier may be taking as a result of this exposure.  Mr. Graybeal noted that they are not expecting any changes from the current carrier and that his team would confirm same during the renewal process.  Mr. Roy commented that it would be a good decision to meet with the carrier since they have been a partner for several years, as this would further solidify the relationship and have a clear understanding as to their intent going forward.  Mr. Graybeal commented that he would discuss this with the carrier and work towards finding a time to have a meeting.

Action:

No action taken at this time.

Brown & Brown NW – Workers’ Compensation Self Insurance Presentation

Ms. Dalmau discussed with the Trustees the current workers’ compensation insurance program in place for the Trust as well as options to consider when exploring a self-insured option. The Trustees discussed the pros and cons of both options and requested Brown & Brown NW to continue the relationship with SAIF going forward and to keep the self-insurance mechanism in mind as an option for future consideration.

Action:

No action taken at this time.

Update form Claims Desk – Introduction of Jon Weber

Mr. Britz commented that Berkley made some internal changes to the claims team and that Jon Weber will now be the claims contact for PURMIT. Mr. Weber introduced himself and provided background information to the group about his career experiences and that he was looking forward to getting to know the group.

Action:

No action taken at this time.

 

The Board adjourned the regular meeting and went into Executive Session at 11:32 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 12:49 p.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board re-entered the regular meeting at 12:51 p.m.

There were no final decisions or actions related to Executive Session discussions.

Adjourn

The Board adjourned the meeting at 12:53p.m.

May 30, 2018

PURMIT Board of Trustees Meeting – September 21, 2017

PURMIT Board of Trustees Meeting

September 21, 2017

Minutes


Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Patrick Hughes (OSU), Lara Moore (EOU), Craig Morris (SOU), Vivian Chen (OIT)

Others Present: Sheryl Sattler and Ryan Britz (Berkley), Jason Catz (SOU), and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 12:00 p.m.

 

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the May, 22, 2017, June 6, 2017 and June 14, 2017 PURMIT Board of Trustees meeting were reviewed and discussed.

Action:

A motion was made by Mr. Roy to approve all minutes. The motion was seconded by Mr. Hagemann.  The motion carried with no objections.

Financial Review as of June 30, 2017

Ms. Sattler from Berkley Risk presented the financial information as of June 30, 2017. Ms. Sattler noted that the figures presented and discussed were unaudited.  PURMIT auditors were in Berkley’s office last week performing their field work portion of the audit.  The discussions went well and Berkley anticipates that the audit will be completed by the agreed upon date of November 10.  Ms. Sattler also noted that Berkley was waiting on the actuary to complete their review and that while discussing the reserves with them it came to Berkley’s attention that PwC was treating all liability claims on an occurrence basis.  Berkley staff discussed the coverage differences with PwC and outlined which coverages are occurrence and which are claims-made.  This change will have an impact to the reserve study and Berkley is awaiting the revised report before finalizing the financial information.  Berkley expects the proper recognition of the claims will result in a benefit to PURMIT’s surplus.   Ms. Sattler discussed the financial results, noting PURMIT had $5.6M of operating revenue and a net income of $549K, resulting in an overall surplus of $3.2M for the year.  .  Mr. Britz commented that he would confirm that the broker had or would net any earned commissions against the next fee installment.  Mr. Morris asked if the Trust was still exploring workers’ compensation self-insurance option.  Mr. Parker commented that Berkley, Brown & Brown and himself are continuing to have that dialogue and that per Trustee direction during prior meetings, will have options to present at the spring meeting.  Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $14.75M in assets and $11.474M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $6,500 of investment income.  Mr. Hagemann asked if prior financial statements will need to be restated due to actuarial recognition of the coverage parts and their claim basis.  Ms. Sattler indicated that the financial statements will not need to be restated.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the Financial Condition Monitoring Report. Ms. Sattler discussed the key ratios that PURMIT should be watching closely and noted that all ratios have been improving year after year.  Mr. Morris asked if there were any ratios that PURMIT should be concerned about.  Ms. Sattler commented that there are none at this time.  Ms. Sattler then discussed the proforma document and its trajectory out to 2020.  Mr. Morris noted that Ms. Sattler did a nice job explaining the financial situation and also the conservative nature of the proforma.  Mr. Roy echoed Mr. Morris’ comments.

Action:

No action taken at this time.

 

Berkley Contract

Mr. Parker commented that the contract between PURMIT and Berkley was a two year agreement, with five, two-year renewal options thereafter. As outlined in the contract, each party is to provide its intent to renew or non-renew.  Berkley Risk had previously provided intent in writing to renew their services for another two-year term.  Mr. Parker noted that, as outlined in the contract, PURMIT needs to decide to renew or non-renew their participation.

Action:

A motion was made by Mr. Morris to exercise PURMIT’s first option to extend its agreement with Berkley Risk as PURMIT’s administrator with instructions to Mr. Parker to document the agreement.  The motion was seconded by Mr. Hagemann.  After discussion, the motion carried with no objections.

Crime Policy – Social Engineering Options

Mr. Britz commented that Brown & Brown was exploring options that may increase the social engineering limit of the Crime policy. He noted that there have been discussions with markets that have provided additional limits and is awaiting further information.  He mentioned that he would provide information to the Trustees once he received from Brown & Brown.

Action:

No action taken at this time

United Educators – Risk Management Practices Credit Program

Mr. Britz made the Trustees aware of the credit that United Educators offers is member insureds. He noted that the total credit would be 6% and will be recognized at next years’ renewal.  He also noted that it is a two-stage process and the first phase has been completed, earning the Trust a 3% discount.  Phase II is being handled by members of the Risk Council and it is anticipated that the remaining 3% will be completed within the next few months.

Action:

No action taken at this time

Annual Retreat Planning

Mr. Britz presented an example of a planning retreat as a result of discussions from past meetings. The Trustees agreed that it would be beneficial to engage in this activity and should look to include other folks like each institution’s VP of Finance and members of the Risk Council.  Mr. Hagemann noted that it should be a meeting that is separate from a regular Board meeting.  Ms. Moore commented that she would like to see a section that addressed real and/or potential vulnerabilities to the Trust.  Mr. Hagemann commented that he would like to incorporate a dashboard process into the meeting, tracking accomplishments, goals, achievements, service providers, etc., keeping mind a way to present and inform PURMIT happenings back to member Presidents.  Mr. Britz commented that he will continue discussions with Brown & Brown and Mr. Parker further establish an appropriate agenda.  Mr. Roy noted that PSU would be willing to host the retreat.

Action:

No action taken at this time

Legal Counsel Items

No items were discussed.

Action:

No action taken at this time

Other items

No other items were discussed.

Action:

No action taken at this time.

The Board adjourned the regular meeting and went into Executive Session at 1:09 p.m. to address documents and information relating to attorney-client privileged communications and attorney work product. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 2:09 p.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board re-entered the regular meeting at 2:11 p.m.

Mr. Katz joined the meeting at the invitation of the Board. There were no final decisions or actions made related to Executive Session discussions.  Mr. Roy noted his appreciation to Mr. Parker for the work done on behalf of the Trust over the past few months.

Adjourn

The Board adjourned the meeting at 2:15p.m.

May 30, 2018

PURMIT Board of Trustees Meeting – August 18, 2017

PURMIT Board of Trustees Meeting

August 18, 2017

Minutes


Trustees Present: Ryan Hagemann (WOU), Lara Moore (EOU), Brian Roy (PSU), Patrick Hughes (OSU), Craig Morris (SOU)

Others Present: Ryan Britz (Berkley); James Parker (DWT); and Jason Catz (SOU)


Call to Order

Chair Brian Roy called the meeting to order at 9:01 a.m.

 

Roll Call

Roll call was taken.

The Board adjourned the regular meeting and went into Executive Session at 9:06 a.m. to address documents and information relating to attorney-client communications relating to a claim and potential litigation. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 10:26 a.m.

Final Decisions Related to Executive Session Discussions (if any)

There were no final decisions made related to Executive Session discussions.

Adjourn

The Board adjourned the meeting at 10:27 a.m.

April 16, 2018

PURMIT Board of Trustees Meeting – September 21, 2017

PURMIT Board of Trustees Meeting

September 21, 2017

Minutes


Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Patrick Hughes (OSU), Lara Moore (EOU), Craig Morris (SOU), Vivian Chen (OIT)

Others Present: Sheryl Sattler and Ryan Britz (Berkley), Jason Catz (SOU), and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 12:00 p.m.

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the May, 22, 2017, June 6, 2017 and June 14, 2017 PURMIT Board of Trustees meeting were reviewed and discussed.

Action:

A motion was made by Mr. Roy to approve all minutes. The motion was seconded by Mr. Hagemann.  The motion carried with no objections.

Financial Review as of June 30, 2017

Ms. Sattler from Berkley Risk presented the financial information as of June 30, 2017. Ms. Sattler noted that the figures presented and discussed were unaudited.  PURMIT auditors were in Berkley’s office last week performing their field work portion of the audit.  The discussions went well and Berkley anticipates that the audit will be completed by the agreed upon date of November 10.  Ms. Sattler also noted that Berkley was waiting on the actuary to complete their review and that while discussing the reserves with them it came to Berkley’s attention that PwC was treating all liability claims on an occurrence basis.  Berkley staff discussed the coverage differences with PwC and outlined which coverages are occurrence and which are claims-made.  This change will have an impact to the reserve study and Berkley is awaiting the revised report before finalizing the financial information.  Berkley expects the proper recognition of the claims will result in a benefit to PURMIT’s surplus.   Ms. Sattler discussed the financial results, noting PURMIT had $5.6M of operating revenue and a net income of $549K, resulting in an overall surplus of $3.2M for the year.  .  Mr. Britz commented that he would confirm that the broker had or would net any earned commissions against the next fee installment.  Mr. Morris asked if the Trust was still exploring workers’ compensation self-insurance option.  Mr. Parker commented that Berkley, Brown & Brown and himself are continuing to have that dialogue and that per Trustee direction during prior meetings, will have options to present at the spring meeting.  Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $14.75M in assets and $11.474M in liabilities.  Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $6,500 of investment income.  Mr. Hagemann asked if prior financial statements will need to be restated due to actuarial recognition of the coverage parts and their claim basis.  Ms. Sattler indicated that the financial statements will not need to be restated.

Financial Proforma Update and Discussion

Ms. Sattler continued the financial discussion by reviewing the Financial Condition Monitoring Report. Ms. Sattler discussed the key ratios that PURMIT should be watching closely and noted that all ratios have been improving year after year.  Mr. Morris asked if there were any ratios that PURMIT should be concerned about.  Ms. Sattler commented that there are none at this time.  Ms. Sattler then discussed the proforma document and its trajectory out to 2020.  Mr. Morris noted that Ms. Sattler did a nice job explaining the financial situation and also the conservative nature of the proforma.  Mr. Roy echoed Mr. Morris’ comments.

Action:

No action taken at this time.

 

Berkley Contract

Mr. Parker commented that the contract between PURMIT and Berkley was a two year agreement, with five, two-year renewal options thereafter. As outlined in the contract, each party is to provide its intent to renew or non-renew.  Berkley Risk had previously provided intent in writing to renew their services for another two-year term.  Mr. Parker noted that, as outlined in the contract, PURMIT needs to decide to renew or non-renew their participation.

Action:

A motion was made by Mr. Morris to exercise PURMIT’s first option to extend its agreement with Berkley Risk as PURMIT’s administrator with instructions to Mr. Parker to document the agreement.  The motion was seconded by Mr. Hagemann.  After discussion, the motion carried with no objections.

Crime Policy – Social Engineering Options

Mr. Britz commented that Brown & Brown was exploring options that may increase the social engineering limit of the Crime policy. He noted that there have been discussions with markets that have provided additional limits and is awaiting further information.  He mentioned that he would provide information to the Trustees once he received from Brown & Brown.

Action:

No action taken at this time

United Educators – Risk Management Practices Credit Program

Mr. Britz made the Trustees aware of the credit that United Educators offers is member insureds. He noted that the total credit would be 6% and will be recognized at next years’ renewal.  He also noted that it is a two-stage process and the first phase has been completed, earning the Trust a 3% discount.  Phase II is being handled by members of the Risk Council and it is anticipated that the remaining 3% will be completed within the next few months.

Action:

No action taken at this time

Annual Retreat Planning

Mr. Britz presented an example of a planning retreat as a result of discussions from past meetings. The Trustees agreed that it would be beneficial to engage in this activity and should look to include other folks like each institution’s VP of Finance and members of the Risk Council.  Mr. Hagemann noted that it should be a meeting that is separate from a regular Board meeting.  Ms. Moore commented that she would like to see a section that addressed real and/or potential vulnerabilities to the Trust.  Mr. Hagemann commented that he would like to incorporate a dashboard process into the meeting, tracking accomplishments, goals, achievements, service providers, etc., keeping mind a way to present and inform PURMIT happenings back to member Presidents.  Mr. Britz commented that he will continue discussions with Brown & Brown and Mr. Parker further establish an appropriate agenda.  Mr. Roy noted that PSU would be willing to host the retreat.

Action:

No action taken at this time

Legal Counsel Items

No items were discussed.

Action:

No action taken at this time

Other items

No other items were discussed.

Action:

No action taken at this time.

The Board adjourned the regular meeting and went into Executive Session at 1:09 p.m. to address documents and information relating to attorney-client privileged communications and attorney work product. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 2:09 p.m.

Final Decisions Related to Executive Session Discussions (if any)

The Board re-entered the regular meeting at 2:11 p.m.

Mr. Katz joined the meeting at the invitation of the Board.. There were no final decisions or actions made related to Executive Session discussions.  Mr. Roy noted his appreciation to Mr. Parker for the work done on behalf of the Trust over the past few months.

Adjourn

The Board adjourned the meeting at 2:15p.m.

April 16, 2018

PURMIT Board of Trustees Meeting – August 18, 2017

PURMIT Board of Trustees Meeting

August 18, 2017

Minutes


Trustees Present: Ryan Hagemann (WOU), Lara Moore (EOU), Brian Roy (PSU), Patrick Hughes (OSU), Craig Morris (SOU)

Others Present: Ryan Britz (Berkley); James Parker (DWT); and Jason Catz (SOU)


Call to Order

Chair Brian Roy called the meeting to order at 9:01 a.m.

 

Roll Call

Roll call was taken.

The Board adjourned the regular meeting and went into Executive Session at 9:06 a.m. to address documents and information relating to attorney-client communications relating to a claim and potential litigation. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 10:26 a.m.

Final Decisions Related to Executive Session Discussions (if any)

There were no final decisions made related to Executive Session discussions.

Adjourn

The Board adjourned the meeting at 10:27 a.m.

September 27, 2017

PURMIT Board of Trustees Meeting – June 14, 2017

PURMIT Board of Trustees Meeting

June 14, 2017

12:30 p.m.

Minutes


Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Patrick Hughes (OSU), Vivian Chen (OIT), and Craig Morris (SOU)

Others Present: Ryan Britz (Berkley) and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 12:37 p.m.

Roll Call 

Roll call was taken.

The Board adjourned the regular meeting and went into Executive Session at 12:40 p.m. to address documents and information relating to PURMIT trade secrets and attorney-client communications relating to the 2017 – 18 allocation model, handling of PURMIT documents and potential and/or current litigation. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 1:42 p.m.

Final Decisions Related to Executive Session Discussions (if any)

Mr. Parker noted that the Trustees need to decide on the social engineering limit and the allocation model to be utilized for the upcoming fiscal year. The allocation includes all the items previously discussed with the exception of the premium increase should the Trustees elect to buy the increased limits. In addition, the direction to Berkley will include the instruction to bind the allocation selected by the Trustees which is inclusive of insurance premiums, operational costs, actuarial loss picks and margin factor. The Trustee vote will also include permission for Berkley to instruct Brown & Brown to bind the insurance coverages previously discussed.

Action:

A motion was made by Mr. Roy to purchase the social engineering limit of $250,000. The motion was seconded by Mr. Morris. The motion carried with no objections.

 

The Trustees discussed the allocation options presented for the 2018 fiscal year.

Action:

A motion was made by Mr. Morris to approve the allocation model including a 5% margin factor as presented and authorize Berkley to cause insurance coverage to be bound as presented therein. The motion was seconded by Mr. Hagemann. Mr. Hughes objected and reiterated his preference for the no margin factor option. The motion carried with four votes in favor and one vote against (Hughes).

Adjourn

 The Board adjourned the meeting at 1:58 p.m.

September 27, 2017

PURMIT Board of Trustees Meeting – June 6, 2017

PURMIT Board of Trustees Meeting

June 6, 2017

10:00 a.m.

Minutes


Trustees Present: Ryan Hagemann (WOU), Lara Moore (EOU), Brian Roy (PSU), Patrick Hughes (OSU), Vivian Chen (OIT)

Others Present: Ryan Britz (Berkley); Ron Graybeal (BBNW); and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 10:03 a.m.

Roll Call

Roll call was taken.

The Board adjourned the regular meeting and went into Executive Session at 10:05 a.m. to address documents and information relating to PURMIT trade secrets and attorney-client communications relating to the 2017 – 18 allocation model, handling of PURMIT documents and potential and/or current litigation. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 11:05 a.m.

Final Decisions Related to Executive Session Discussions (if any)

There were no final decisions made related to Executive Session discussions. The next PURMIT Board of Trustees meeting is scheduled for June 14, 2017.

Adjourn

The Board adjourned the meeting at 11:06 a.m.

September 27, 2017

PURMIT Board of Trustees Meeting – May 22, 2017

PURMIT Board of Trustees Meeting

May 22, 2017

9:00 a.m. – 3:00 p.m.

Minutes


Trustees Present: Ryan Hagemann (WOU), Lara Moore (EOU), Brian Roy (PSU), Patrick Hughes (OSU)

Others Present: Sheryl Sattler, Kim Severson and Ryan Britz (Berkley); Ron Graybeal, Joel Troisi, Richard Poling, Shelley Dalmau and Jennie Randall (BBNW); and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 9:01 a.m.

Roll Call

 Roll call was taken.

Review and Approval of Minutes

 Meeting minutes from the January 26, 2017 PURMIT Board of Trustees meeting were reviewed and discussed.

Action:

A motion was made by Mr. Hagemann to approve the January 26, 2017 minutes. The motion was seconded by Mr. Hughes. The motion carried with no objections.

Financial Review as of March 31, 2017

Ms. Sattler of Berkley Risk presented PURMIT’s operating results and financial position as of March 31, 2017 to the Trustees. On a combined basis, PURMIT’s net position as of March 31, 2017 was

$3.4 million. Ms. Sattler noted that the performance of the Property component of the financial statement was showing a decrease from prior years due to increased loss activity with this line of business. Budget remains on track for the 2017 year and no recommendations for change were requested. Ms. Sattler also presented the projected fiscal year end Statements of 25% Regulatory Requirement slide, which shows PURMIT’s continued compliance with Oregon statutory requirements. PURMIT continues to exceed the minimum surplus requirement. Ms. Sattler also presented the Financial Condition Monitoring Report which continues to show improvement year over year and through March of 2017. Ms. Sattler commented that the continued improvement with these insurance metrics show PURMIT’s continued discipline with reserve setting and cost allocations

Action:

No action taken at this time.

Financial ProForma Update and Discussion

 Ms. Sattler provided the quarterly Proforma update, noting that the Trust’s financial condition and projections continue to improve. Berkley continues to monitor losses and operating costs as part of the ongoing financial management of the Trust. The Proforma will continue to be updated based on the most current loss and expense figures. Ms. Sattler also presented the updated financial metrics that Berkley will use to show the Trust’s financial performance. Mr. Britz commented that as the Trust continues to refine their focus regarding surplus expectations and intent, Berkley will model different scenarios and projections which will assist the Trust establishing the desired surplus position.

Action:

No action taken at this time.

Service Provider Contracts – K Financial, PricewaterhouseCoopers, Berkley Risk

Mr. Britz noted that K Financial has proposed to renew the existing contract for a one-year term at the expiring terms and pricing. K Financial has performed the audit work for the past two years for the Trust. It was agreed that PURMIT would retain K Financial to perform the audit for the 2016 fiscal year. PricewaterhouseCoopers has been the PURMIT actuary for several years. PricewaterhouseCoopers proposed to PURMIT a three year contract that outlined terms and pricing. The Board discussed and decided to take no action as to PricewaterhouseCoopers for the upcoming reserve study but to also explore other actuarial firm possibilities to ensure the work performed, terms and conditions are in line with what other actuarial firms are producing in the future. Mr. Britz noted that Berkley Risk had submitted their intent to renew to James Parker within the guidelines of the existing contract. The renewal terms and conditions remain consistent with the expiring agreement. Mr. Roy commented that he appreciated the administration work that had been performed by Berkley Risk since their inception. Mr. Hughes made a similar comment regarding the administration portion of the agreement. In regards to claims, Mr. Hughes requested the ability to have the Board discuss the roles and responsibilities of the Berkley claims staff and process , with the entire PURMIT Board of Trustees to ensure appropriate direction is given and to identify focus areas for Berkley Risk.

Action:

No action taken at this time.

PURMIT July 1, 2016 Actuarial Review

 Kevin Wick from PricewaterhouseCoopers presented the July 1, 2016 actuarial findings. Overall, PURMIT’s losses and reserves continue to develop as expected. The benefits of pooling member experience continues and is evidenced through the loss projections as well as the ability to purchase excess coverage at attractive and predictable attachment points. Mr. Wick also commented that the Trust’s net position continues to increase at a steady pace. Mr. Hughes and Mr. Wick discussed the confidence level used in the analysis. Mr. Wick thanked PURMIT for their continued confidence and partnership in Pricewaterhouse Coopers as the Trust’s actuary.

Action:

No action taken at this time.

Berkley Risk Claim Authority

The Trustees discussed and outlined the claim reporting guidelines to be instituted to keep the Trustees aware of specific adverse claims that may have a significant financial impact to PURMIT.

Action:

Mr. Roy made a motion (1) authorizing Berkley Risk to reserve and settle claims within PURMIT’s retained layer and (2) requiring Berkley Risk to report to the Board of Trustees at the next regular meeting, all claims reserved at or settled for $200,000 or more. The motion was seconded by Mr. Hagemann. The motion passed with no objections.

Legal Counsel Items

 Mr. Parker discussed the following items:

  • Brown & Brown Northwest contract has been finalized and signed by all
  • The PURMIT banking agreement with Oregon State Treasury has been approved by the Department of Justice and is ready for signature by PURMIT. Mr. Roy reiterated the Board’s stated goal of joining the Oregon Public University Fund for PURMIT’s investments. Mr. Britz commented that the long term plans remain and work continues to access the Public University Fund.

Other items

No other items were discussed.

Action:

No action taken at this time.

The Board adjourned the regular meeting and went into Executive Session at 10:46 a.m. to address documents and information relating to PURMIT trade secrets and attorney-client communications relating to the 2017 – 18 allocation model, handling of PURMIT documents and potential and/or current litigation. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).

The Board exited Executive Session at 2:55 p.m.

Final Decisions Related to Executive Session Discussions (if any)

There were no final decisions made related to Executive Session discussions. The next PURMIT Board of Trustees meeting is scheduled for June 6, 2017.

Adjourn

The Board adjourned the meeting at 3:01 p.m.

February 16, 2017

PURMIT- Board of Trustees Meeting – January 26, 2017

PURMIT Board of Trustees Meeting

January 26, 2017

9:00 a.m. – 1:30 p.m.

Minutes


Trustees Present: Ryan Hagemann (WOU), Lara Moore (EOU), Craig Morris (SOU), Brian Roy (PSU), Patrick Hughes (OSU), Vivian Chen (OIT)

Others Present: Sheryl Sattler, Jack Goodwin and Ryan Britz, (Berkley); Ron Graybeal, Tim Clarke and Michaelene Thomas (BBNW); Kevin Wick (PwC); Jamie Kilcoyne and Daniel Kugel (K Financial); and James Parker (DWT)


Call to Order

Chair Brian Roy called the meeting to order at 9:01 a.m.

 

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the August 9, 2016 PURMIT Board of Trustees meeting were reviewed and discussed.

Action:

A motion was made by Mr. Morris to approve the August 9, 2016 minutes. The motion was seconded by Mr. Hughes.  The motion carried with no objections.

Meeting minutes from the November 30, 2016 PURMIT Board of Trustees meeting were reviewed and discussed.

Action:

A motion was made by Mr. Morris to approve the November 30, 2016 minutes. The motion was seconded by Mr. Roy.  The motion carried with no objections.

PURMIT 2016 Financial Auditors Report for year ended June 30, 2016

Mr. Kilcoyne provided an overview of the financial audit work performed to the Trustees. Mr. Kilcoyne noted that there are two letters included in the audit packet:  Statute 114 and Statute 115.  Statute 114 outlines the responsibility of the auditor.  Statute 115 outlines the responsibility of the Trust’s management.  Statute 115 letter is used for management communication of any items regarding internal controls.  Mr. Kilcoyne noted that there were no issues with this years audit and the internal control recommendations noted in the June 30, 2015 audit letter had been resolved and appropriate controls have been established and working.  Mr. Kilcoyne commented that they issued a clean auditors opinion for the year ending June 30, 2016.  Mr. Kilcoyne expressed his thanks to PURMIT for their willingness to allow them to present the financial report.

Action:

No action taken at this time.

Financial Review as of December 31, 2016

Ms. Sattler of Berkley Risk presented PURMIT’s operating results and financial position as of December 31, 2016 to the Trustees. On a combined basis, PURMIT’s net position as of December 31, 2016 was $3.7 million.  Ms. Sattler noted that the performance of the Property component of the financial statement was showing a decrease in performance from prior years due to increased loss activity with this line of business.  Budget remains on track for the 2017 year and no recommendations for change were requested.  Ms. Sattler also presented the projected fiscal year end Statements of 25% Regulatory Requirement slide, which shows PURMIT’s continued compliance with Oregon’s statutory minimum surplus requirement.

Action:

No action taken at this time.

Financial ProForma Update and Discussion

Ms. Sattler provided the quarterly Proforma update, noting that the Trust’s financial condition and projections continue to improve. Berkley continues to monitor losses and operating costs as part of the ongoing financial management of the Trust.  The Proforma will continue to be updated based on the most current loss and expense figures.  Ms. Sattler also presented the updated financial metrics that Berkley will use to show the Trust’s financial performance.  Mr. Roy stated that the Proforma and financial metrics documents look good and appreciated that it showed the Trust’s financial performance on many separate levels.  Mr. Britz commented that as the Trust continues to refine their focus regarding surplus expectations and intent, Berkley will model different scenarios and projections which will assist the Trust establishing the desired surplus position.

Action:

No action taken at this time.

Brown & Brown Northwest Introduction

Brown & Brown Northwest (BBNW) individuals Ron Graybeal, Tim Clarke and Michaelene Thomas were present at the meeting to meet the Trustees and discuss BBNW’s involvement going forward. Mr. Graybeal discussed a proposed timeline that outlined BBNW’s intent for servicing PURMIT over the immediate 6 months leading up to and through the July 1, 2017 renewals.  Mr. Graybeal also provided a list of BBNW staff that will be working on the account to service PURMIT member needs and noted that a SharePoint site had been set up for PURMIT members to use.  Mr. Clarke mentioned that he had been invited and will attend the next in person meeting of the Risk Council.  He will be working on development of a proposed service plan that will be individualized for each of the PURMIT members.  Mr. Graybeal and Mr. Britz discussed July 1, 2017 renewal activities thus far and how the process will work for this renewal cycle.

Action:

No action taken at this time.

PURMIT July 1, 2016 Actuarial Review

Kevin Wick from PricewaterhouseCoopers presented the July 1, 2016 actuarial findings. Overall, PURMIT’s losses and reserves continue to develop as expected.  The benefits of pooling member experience continues and is evidenced through the loss projections as well as the ability to purchase excess coverage at attractive and predictable attachment points.  Mr. Wick also commented that the Trust’s net position continues to increase at a steady pace.  Mr. Hughes and Mr. Wick discussed the confidence level used in the analysis and determined that it is appropriate.  Mr. Wick thanked PURMIT for their continued confidence and partnership in Pricewaterhouse Coopers as the Trust’s actuary.

Action:

No action taken at this time.

Review of Service Provider Contracts

Mr. Britz discussed PURMIT’s service provider contract renewal dates. Service providers up or review include Berkley Risk, K Financial and Pricewaterhouse Coopers.  The Board discussed all three entities and provided Mr. Britz with direction to discuss terms and pricing with K Financial and Pricewaterhouse Coopers.  Mr. Britz agreed and commented that he would report back to the Trust any developments at the next Board meeting.

Action:

No action taken at this time.

July 1, 2017 Renewal Process

Mr. Britz commented that there were no additional items to discuss as this topic was addressed during the BBNW discussion.

Action:

No action taken at this time.

Legal Counsel items

Mr. Parker discussed the following items:

    • Workers’ Compensation – The Board’s latest guidance has PURMIT continuing to work with SAIF for the July 1, 2017 renewal term. Mr. Roy noted that he agreed with the plan, but also thinks the Trust should continue to explore all options. Mr. Parker agreed and commented that he would work with Mr. Britz and Mr. Graybeal to outline a plan inclusive of all pieces involved for a potential move to a self-insurance platform, to bring to the Board for consideration at the Fall Quarterly meeting of the BOT. Mr. Morris commented that it may be beneficial to participate in a meeting of the university finance directors to inform them of the desired approach and move, when the time is appropriate.
    • Broker of Record letters – There are certain policies and renewal processes that BBNW would like to occur in advance of the BBNW contract effective date that should be recognized within the insurance brokerage agreement. Mr. Parker noted that PURMIT can decrease the risk associated with the transition BOR’s by including language in the contract allowing BBNW and PURMIT to issue BOR’s and service those policies in advance of the contract start date provided the remaining terms of the contract are effective. Mr. Parker committed to including such terms in the draft Brokerage Services contract with BBNW. Mr. Morris noted that he is in agreement with Mr. Parker’s partial solution.
    • Insurance Brokerage Services contract – Contract is in the final stages of being drafted. Mr. Parker will send to Mr. Britz when draft is complete.
    • Waiver of Actual and Potential Conflicts of Interest – Mr. Parker distributed a waiver to the Trustees, that acknowledges and allows the continued work by Davis Wright Tremaine (DWT) on behalf of Brown & Brown on unrelated matters. The waiver outlined the responsibilities of DWT going forward in regard to their relationship with BBNW and PURMIT.
    • Banking update – Mr. Parker is waiting for communication from Treasury regarding process, procedure, and the insurance brokerage services contract on behalf of PURMIT. The motion was seconded by Mr. Roy.  The motion carried with no discussion.

 

Action:

Mr. Morris made a motion for Berkley Risk to sign the DWT conflict waiver and the insurance brokerage services contract on behalf of PURMIT. The motion was seconded by Mr. Roy.  The motion carried with no discussion.

Other items

  • Mr. Parker noted that he met with the General Counsel of the City and County Insurance Services. Mr. Parker commented that the discussion was general in nature and that as both entities continue to evolve there may be partnership opportunities.

 

Action:

No action taken at this time.

 

The Board adjourned the regular meeting and went into Executive Session at 11:49 a.m. to address documents and information relating to attorney-client communications regarding the handling of PURMIT documents and potential and/or current litigation. The executive session was held pursuant to ORS 192.660(2) (f) and ORS 192.660(2) (h).

The Board exited Executive Session at 1:39 p.m.

Final Decisions Related to Executive Session Discussions (if any)

There were no final decisions made related to Executive Session discussions.

The next PURMIT Board of Trustees meeting is scheduled for May 4, 2017.

Adjourn

The Board adjourned the meeting at 1:41 p.m.

September 15, 2016

PURMIT Board of Trustees Meeting – August 9, 2016

DRAFT

PURMIT Board of Trustees Meeting

August 9, 2016

9:00 a.m. – 2:00 p.m.

Minutes


Trustees Present: Ryan Hagemann (WOU), Craig Morris (SOU), Brian Roy (PSU), Patrick Hughes (OSU), Michelle Meyer (OIT)Trustees Not Present: Lara Moore (EOU)

Others Present: Ryan Britz, Jon Paulsen, Sheryl Sattler, Kim Severson (Berkley), and James Parker (DWT)


Call to Order

Chair Patrick Hughes called the meeting to order at 9:00 a.m.

Roll Call

Roll call was taken.

Review and Approval of Minutes

Meeting minutes from the May 4, 2016 and June 7, 2016 PURMIT Board of Trustees meetings were reviewed and discussed.

Action:

A motion was made by Mr. Morris to approve the minutes.  The motion was seconded by Mr. Roy. The motion carried with no objections.

Trust Chair Election

The Trust Chair position was open for election. The position is an annual term with no restrictions or term limits. Mr. Roy was nominated as Chair of the Trust and Mr. Hughes was nominated as Vice Chair of the Trust.

Action:

A motion was made by Mr. Hughes to elect Mr. Roy as Trust Chair. The motion was seconded by Mr. Hagemann. Motion carried with no objections.   A motion was made by Mr. Roy to elect Mr. Hughes as Trust Vice Chair. The motion was seconded by Mr. Morris. The motion carried with no objections.

Insurance Placement Services Discussion

The Board discussed the draft insurance placement services document and discussed the reasons for reviewing the insurance brokerage contract every few years and determined it was an appropriate time to explore the marketplace to obtain a formal review of insurance broker options.  A selection committee was established to review the responses resulting from the procurement process and report those results to the Trustees.

Action:

A motion was made by Mr. Hagemann to adopt Portland State University’s procurement policy as the procurement policy of PURMIT and to use that policy when developing the formal insurance placement request for proposal document. The motion was seconded by Mr. Morris.  The motion carried with no objections.

Workers Compensation Discussion

The Board discussed the workers’ compensation insurance program and potential options to be considered at the expiration of the current term.

Action:

No action at this time.

Cyber Coverage Discussion

The Board discussed the cyber coverage options presented and requested Berkley continue discussions with Gallagher to present additional options for a 1/1/17 effective date.

Action:

No action at this time.

Financial Review as of 6/30/2016, Proforma, Financial Metrics Discussion

Ms. Sattler of Berkley Risk presented PURMIT’s operating results and financial position as of June 30, 2016 to Trustees. On a combined basis, PURMIT’s net position as of 6/30/16 was $2.7 million. The financial information presented was unaudited.

Ms. Sattler presented the projected fiscal year end Statements of 25% Regulatory Requirement slide, which calculates PURMIT’s compliance with Oregon statute.  Assuming no change in net position within the next quarter, PURMIT will exceed the Oregon minimum surplus target.  The draft actuarial report showed positive improvements to losses which contributed to the increase in net position. Ms. Sattler provided an update to the quarterly Proforma document.  The Trust’s financial projections will continue to improve while losses meet projections and other operating costs remain steady.  The Board continued to review the projected surplus amounts and will continue working towards developing a target surplus, with quarterly updates from Berkley.  Finally, Ms. Sattler presented the financial metrics that will be used by Berkley to show the Trusts financial performance on many different levels.

Action:

No action taken at this time.

Banking/Funding Policy

The Trustees discussed establishing three separate funds: short term/working layer fund, liquid/higher interest earning fund, and a surplus long-term protected fund.  Mr. Parker indicated that he was very close to getting the Treasury banking account set up and ready for deposits. The Trustees reviewed the financials and determined how to allocate dollars to the different funds.

Action:

The Board authorized the transfer of an amount equal to PURMIT’s most recent quarterly unaudited statutory surplus plus 20% of the unaudited quarterly Reserve for loss and loss adjustment expenses to PURMIT’s account with the Oregon State Treasury (upon its opening). The Board further authorizes the Chair, Vice Chair, or another person designated by the Chair to approve a Berkley recommendation to transfer funds from PURMIT’s account with the Oregon State Treasury to PURMIT’s operating account with US Bank as necessary for the operation of the Trust.  Motion was made by Mr. Morris. The motion was seconded by Mr. Roy. Motion carried with no objections.

Legal Bill Review – Feasibility Study

Berkley presented a product that provides an independent review of legal bills as related to PURMIT claims. The Trustees recommended that the General Counsel at each campus be consulted in advance of any decision to implement legal bill review software.

Action:

No action taken at this time.

Legal Counsel Items

No items for discussion

Action:

No action taken at this time.

The Board adjourned the regular meeting and went into Executive Session at 12:10 p.m. to address documents and information relating to actuarial estimates, loss reserves, and claims that are the subject of current or likely litigation.  The executive session was held pursuant to ORS 192.660(2) (f) and ORS 192.660(2) (h).

The Board exited Executive Session at 1:15 p.m.

Final Decisions Related to Executive Session Discussions (if any)

There were no final decisions made related to Executive Session discussions.

Other items

Mr. Britz commented that the AGRiP membership dues were up for payment.  The Trustees decided that they did not wish to renew the AGRiP membership.

Adjourn

The Board adjourned the meeting at 2:02 p.m.