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Res No 149-15-14488
RESOLUTION NO.149-15-14488 A Resolution authorizing the City Manager to purchase Workers' Compensation Insurance. WHEREAS,the CityhasreceivedinsurancequotesforWorkers1 Compensation Coverage. WHEREAS TheCityreceivedarenewal quote from FMIT for the continuation of the existing coverage,but received no other proposals for the necessary coverage; WHEREAS,the City Administration recommends that the City continue coverage with the FloridaLeagueofCities through FMIT for Workers'Compensation Coverage for the 2015-2016 Fiscal Year based upon the current proposal; NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA THAT: Section I.The City Commission hereby authorizes the CityManager to execute therenewalinsurancepolicyfor Workers'Compensationwith FMIT forthe 2015-2016 Fiscal Year. Section 2.This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED this 24th day of September 2015. ATTEST:APPROVED: CITY CLERK READ AND APPI LANGUAGE, EXEC D AS TO FORM, ITY ANI MAY©R COMMISSION VOTE:4-0 Mayor Stoddard:Yea ViceMayorHarris:Absent Commissioner Welsh:yea Commissioner Liebman:Yea Commissioner Edmond Yea South'Miami THE CITY OF PLEASANT LIVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM To: From: Date: TheHonorableMayor&MembersoftheCityCommission StevenAlexander,City Manager September 15,2015 Agenda Item No.:•J- Subject: Background: Worker's Compensation,Property,General Liability,Automobile, Public Officials and Employment Practices Insurance TheCity solicited and received proposals for the City's Workers' Compensation,Property,General Liability Automobile,PublicOfficials and Employment Practices Insurance coverage for FY 2015-2016 from carriers currently writing municipal business in South Florida.The following table summarizes the responses received. FMIT INSURANCE DESCRIPTION FMIT PropertyCoverage $142,150 Inland Marine Included Equipment Breakdown Coverage Included CrimeandBondCoverage Included GeneralLiabilityCoverage $59,575 Police Professional Liability Coverage $156,330 Automobile Coverage $93.098 FMIT Property.Auto and General Liability SubTotal $451,153 Workers Compensation $186,124 FMITTotal Premium $637,277 South'Mami THE QTY OF PLEASANT LIVING CITY OF SOUTH MIAMI OFFICE OF THE CITY MANACER INTER-OFFICE MEMORANDUM PGIT INSURANCE DESCRIPTION Property Coverage Inland Marine Equipment BreakdownCoverage CrimeandBondCoverage General Liability Coverage Police Professional Liability Coverage Automobile Coverage PGIT $120,049 $836 Included $750 $88,993 $66,022 $123,238 PGIT Property,Auto and General Liability SubTotal $399,888 Workers Compensation $188,764 PGIT TotalPremium $588,652 PUBLIC OFFICIALS &EMPLOYMENT PRACTICES LIABILITY In addition to the package quotations summarized above,the City received an independent quote foritsPublicOfficials&Employment Practices Liability coverage.Both FMIT and PGIT declined to quote this line of coverage. ACE American Insurance Description Total Premium Limitof Liability $1,000,000 Deductible/SIR EachClaim: Public Officials/Public Entity Liability -$100,000 EmploymentPractices Liability -$150,000 ZoningClaims -$250,000 $50.887 f «f /CITY OF SOUTH MIAMI Sm itlr Miami office ofthe city manager INTER-OFFICE MEMORANDUM Recommendation: Workers'Compensation Policy After further negotiations within the last week,we were able to reduce the originalFMIT proposal by $13,455.TheCity Manager recommends that the City renew its Workers'Compensation policy with FMIT fora total premium of $186,124.The City continues to receive the company's preferred rating because of the continuing coverage,including a5% credit foritsDrug Free WorkPlacepolicy and an additional 2%credit for its newly created Safety Policy.This year's renewal represents a decrease of approximately 13%over last year's premium. THE CITY OF PLEASANT LIVING Property,General Liability and Automobile Insurance The City Manager recommends that the City renew itspolicywith PGIT foritsProperty,General Liability andAutomobileInsurancecoveragefor a total premium of $399,888.This represents an increase of approximately 3.8%overlast year's premium.This increase islargely attributable to the additionof several newvehicles to the City's inventory.As set forth above,the PGIT proposal contains the most favorable rates for these linesofcoverageandoffersa two year rate guarantee. PublicOfficialsand Employment PracticesLiability The City Managerfurtherrecommends that the City renewits policy with ACE American Insurance Company for the PublicOfficials and Employment Practices Liability policyfora premium of$50,887. South*1 Miami THE CITY OF PLEASANT LIVING Amount: ATTACHMENTS: CITY OF SOUTH MIAMI OFFICE OF THE CITY MANAGER INTER-OFFICE MEMORANDUM The breakdown of the totalpremium costs foralllines of insuranceis set forth below: FMIT Workers'Compensation Actual Proposed FY 2014-FY 2015- 2015 2016 $214,533 $186,124 PGIT General Liability,Property&Automobile $385,086$399,888 ACE Public Officials and Employment Practices $49.136 $50,887 Total Premium Proposed Resolutions Proposal Package from FMIT Proposal Package fromBrown&Brown $648,755 $636,899 Coverage Workers'Compensation Experience Modification Department ofInsuranceandFinancial Services FLORIDA MUNICIPAL INSURANCE TRUST RENEWAL QUOTE FOR 2015-2016 City of South Miami FMIT 0563 Deductible $0 0.94 10/1/15 Limit Total Payroll $7,670,896 Premium $186,124 includes:Drug Free Credit Yes Safety Credit:Yes Note:Coverage summaries providedherein are intendedasanoutlineof coverage onlyand are necessarily brief.Inthe event ofloss,allterms,conditions,and exclusions ofactual Agreement and/or Policies will apply. Quote No.:WQ2FL1013202115-01 Effective:10/01/2015 i Quote Expiration Date:10/01/2015 12:00 AM i GOVERNMENTAL Reference Number:46476 INSURANCETRUST p^,Referenoe Number:210994 QUOTATION FOR City of South Miami 6130 Sunset Dr. South Miami,FL 33143 Presented by Public Risk Underwriters for: Brown &Brown,Inc.i 14900 NW 79th Court,Suite 200 :j i Miami Lakes,FL 33016 !j r i 9/15/2015 9:42 AM ,] Thebrief (tesolptlw of coveraseaiftolnrt in thb document a be^prowWed asan acco For mote cnnpl&wddetaKedlnfentMenrtlatta tothescopeand Dnttstf SpsdmenfennsareavaBebie upon request Page2 Reference Number:46476 NamedCovered Party:Qty of south Miami 9/15/2015 9:42 AM Term: CoverageProvidedBy: Quote No.; 10/01/2015 to 10/01/2017 Preferred Governmental Insurance Trust WQ2FL1013202115-01 Toprotect members ofthe fund from largelosses arid toprotectthe financial security ofthe fund,the Preferred Governmental Insurance Trust (PGTT)boardof trustees haselectedtopurchaseanextremelyconservativeexcessoflossinsurancestructure.We stress PGITexcess oflossstructurebecause an excess structure provides PGIT membersseverallevelsofprotection that reinsurancedoes not Foremostamongthese Is thefactthat PGIT's excessofloss policies list every individual memberanamedinsured,giving everymember directaccesstothe fnsurance company tor paymentof dalms.Reinsurersareonlyresponsibletothetrustitself.Therefore,if atrust became financially troubled,thereisnoguaranteefromaninsurancecompanythatany individual daim will bepaidoreventhata reimbursement will go towards the originating dalm. PGTT isanon-assessable TVust authorizedunder FloridaStatute and is notratedby AM Best.PGIT isnotprotectedbytheFloridaGuarantee Association In the event It becomes unableto meet itsclaims payment oblications.PGTT membersare not constrained bynotice requirementsorpunitiverun-off claims coststoexit.PGTT Is a non-admitted pool In the state of Florida. Public Risk Underwriters Insurance Sohtttcnsfi>rPt&tic Entities Public RiskUnderwriters (PRU),aspartofBrown&Brown,\s oneofthepremierinsurance service organizations for public entities inthe United States.Ourexclusive focus and In-depth understanding ofthe unique riskexposuresandoperatingenvironmentofthepublicsector allowsustotailor customized products and services to meet our clients'needs. Preferred Governmental Claims Services (PGCS)isdedicatedto exclusively serving Florida governmental agencies.PGCSadministers andclosely controls allclaimsfrom start tofinish. This team offtifttime,licensed adjusters understands federal laws and state statutes governing actions against public entities.Atoll-free telephone number is provided to facilitate reporting of claims. Compensation Disclosure Weappreciatethe opportunity toassist with yourinsuranceneeds.Information concerning compensation paidtootherentitlesforthis placementandrelatedservicesappearsbelow.Pleasedonothesitatetocontactusifany additional information isrequired. Our officeIs ownedby Brown &Brown,Inc.Brawn &Brown entitiesoperate independently andarenotrequiredto utilize other companies ownedby Brown &Brown,Inc.,butroutinelydo so. For the Coverage Term referenced above,your insurance was placed through PGTT.PGTT isan independent entity formed by Florida public entitlesthrough an Interlocal Agreement forthe purpose of providing its members with anarrayof insurance coverages and services.PGIT hascontractedwithentitles owned by Brown &Brown,Inc.to perform various services.Asexplained below,those Brown &Brown entitles are compensated for their services. PGTT hascontracted with PRU,acompanyownedby Brown &Brown,Inc,toadminister PGIT's operations.The administrative services providedby PRU to PGTT include: Underwriting /Coverage review /Marketing /Policy Review /Accounting /Issuanceof PGTT Coverage Agreements /PGTT Member Ualson / Risk Assessment and Control Pursuant to Its contract with PGTT,PRU receives an administration fee,based onthesizeand complexity ofthe account,ofupto 12.0%of the PGTT premiumsbilledandcollected. PGIT has also contracted with PGCS,a compehy owned by Brown &Brown,Inc.,for purposes of administering the dalms of PGTT members. TheservicesprovidedbyPGCSto PGTT may mdude: Claims Uaison with Insurance Company /Claims Liaison with PGrrMembers /Claims Adjustment Tter^description ofcoverage a>r^^Formom annotate tori detailed i^rrr»atJoor^tfrg to Specimen forms ateawSsble upon request Page3 Pursuant to Its contract with PGIT,PGCS receives a dalms administration fee for those accounts which PGCS services ofupto5%ofthe non- property portionofthepremiumsyoupayto PGTT. PGTT also utilizes wholesale insurance brokers,some of whteh (such as Peachtree Special Risk Brokers and MacDuff Underwriters)are owned by Brown &Brown,Inc.,for the placement of PGITs Insurance policies,and for individual risk placements for some PGTT members (excess and surplus lines,professional liability coverage,etc)The wholesale Insurance broker may provide the following services: Risk Placement Coveragereview Claims Liaison withInsuranceCompany Policy Review CurrentMarketIntelligence The wholesate insurance broker's compensation is derived from your premium,and Is largely dictated ty the insurance company.RtypJcaBy ranges between 10%and 17%ofthe premiums youpayto PGTT for your coverage.Somewholesale brokers usedby Brown to place your coveragemayalsoactas Managing General Agents for various Insurance companies,andmaybe compensated directly bythose insurance companiesfortheirservices fn placing and maintaining coverage withthose particular companies. The wholesale Insurance brokerage utilized inthe placement ofyour property Insurance was Peachtree Special RiskBrokers,whichisa companyownedby Brown &Brown Inc.Furthermore,any professional liability coverage afforded by the packageof Insurance you purchased was acquired through Apex Insurance Services,which is also a company owned by Brown &Brown Inc. IMPORTANT NOTE: This quote covenstwo(2)annualtwelvemonthperiods,from 10/01/201512:00:00 AMto 10/01/201612:00:00 AMandfrom10/01/2016 12:00:00 AM to10/01/2017 12:00:00 AM.The following conditions applyin addition toallotherconditionsof this quote: A.All Aggregate limits resetforthe period 10/O1/201612:00:00 AM to 10/01/201712:00:00 AM.Lossesapplying toone annual coverageperiod will noterodetheaggregate limits ofanother annual coverage period, B.The premium forthe period 10/01/201612:00:00 AM to 10/01/201712:00:00 AM will be determined basedonupdatedexposure valuesfor this period. CRatesfortheperiod 10/01/201612:00:00 AMto10/01/2017 12:00:00 AM will be Identical tothoseforthe period commencing 10/01/2015 12:OO.*O0 AM,withpremiums subject to the following: 1.NCQ Experience modification factors will be applied as promulgated. 2.Changesto Schedules:Property,Inland Marine,and Automobile symbol 7 only 3-Payroll 4.Number of Employees D.Intheeventof cancellation ofanyline of business prior to 10/01/201712:00:00 AM,apenaltyequalto60dayspremiumofsuch lfne(s)ofbusinessshallbecomeearned,any provision oftheagreementtothecontrarynotwithstanding. 1.Thispenaltyisearnedandpayableregardlessofwhennoticeofsuch cancellation is given,oreffectivedate of such cancellation. Thebriefdescription ofcoveragecontainedIntotedocument is being provided asan accommodation onlyand Is not Intended tocoveror describe allCoverage Agreementterm*For more compfetoami ctetalledlrrfbiTnatlOT relating tothescope er^Spedmen termsareavailable uponrequest Page 4 'SOVEBIMENttl raUHNCCHilKl NamedCovered Party: Term: CoverageProvidedBy: Quote No.: ESTIMATED ANNUAL PAYROLL Class Code Description Reference Number:46476 City of South Miami 10/01/2015 to 10/01/2017 Preferred Governmental Insurance Trust WQ2FL1013202115-01 5509 STREET OR ROADMAINTENANCE 7720 POLICE OFFICERS &DRIVERS 8380 AUTOMOBILESERVICEREPAIR 8810 CLERICAL 9015 BULDINGS-OWNER OR LESSEE 9102 PARK NOC-EMPLOYEES 8i DRIVERS 9403 GARBAGE-COLLECTION&DRIVERS 9410 MUNICIPAL NOC 9/15/2015 9:42 AM Payroll 220,315 335,829 125,831 1,681,028 367,635 701,267 220^15 217,371 $7,129,591 TteMef description cf coverage <m^For more OTmpteteajiddetaBeduifiHiMUtfire^Spedmen forrns are available upon request Pages BKURANCETWST NamedCoveredParty: Term: coverage ProvidedBy: Quote No.: Reference Number:46476 City of South Miami 10/01/2015 to 10/01/2017 Preferred Governmental Insurance Trust WQ2FL1013202115-01 EMPLOYERS1 LIABILITY COVERAGE BodilyInjurybyAccident Each Accident BodilyInjurybyDisease Agreement Limit Bodily InjurybyDisease Each Employee First Year $1,000,000 $1,000,000 $1,000,000 ESTIMATED BILLING Manual Premium Experience Modifier Estimated Annual Premium Minimum Annual Premium Drug-Free Credit SafetyCredit Experience Modifiers: 0.940 10/01/2015 0.940 $2,000,Monoline $4,000 PayTerm:WC-25%Down &9EqualInstallments Firstpaymentof$47,341.00Isdue10/01/2015. 9 Monthly Installmentsof$15,713.67aredue beginning 11/01/2015, MakeChecksPayabletoPreferred Governmental InsuranceTrust $262,307 $188,764 Included Included 9/15/2015 9:42 AM Second Year Estimate $1,000,000 $1,000,000 $1,000,000 $262,307 $188,764 Included Included ThebriefdescrJptkmcfcawae^c^Formore ccrnpleteartd detailed Information relating tothe scope andUrate of coverage,please refer tfiredly totheCoverage Agreement documents.Spedmen forms areavaBabfe upon request. Page6 PARTICIPATION AGREEMENT Applicationfor Membership inthe Preferred Governmental Insurance Trust Theundersignedlocalgovernmental entity,certifying itselftobeapublicagencyoftheStateofFloridaas definedinSection 163.01,FloridaStatutes,hereby formally makes appfication with theTrustforcontinuing workers' compensation,liability,property and/or casualtycoveragethrough membership inthePreferred Governmental Insurance Trust to bepome effective 12:01 a.m.(effective dateofcoverageagreement),andif accepted bytheFund'sdulyauthorizedrepresentative,does herebyagree as follows; (a)To accept and be boundbytheprovisionsoftheFlorida Workers1 Compensation Act; (b)That,bythis reference,thetermsandprovisionsoftheAmendedInterlocal Agreement creating the Preferred GovernmentalInsuranceTrustdateOctober 1,2004 arehereby adopted,approvedandratifiedbytheundersigned local governmental entity.The undersigned localgovernmentalentitycertifiesthatit has received acopyof the aforementioned Amended Interlocal Agreement and further agrees tobe bound by the provisions and obligations of the Amended Interlocal Agreement as provided therein; (c)Topayallpremiumsonorbeforethedatethe same shallbecomedueand,In theevent Applicant failstodo so,topayanyreasonablelate penalties andcharges arising therefrom,andallcostsof collection thereof,including reasonable attorneys'fees; (d)Toabideby the rules andregulations adopted bytheBoardof Trustees oftheFund; (e)Thatshould either the Applicant ortheFunddesiretocancelcoverage,it will givenot less than thirty (30)days priorwrittennoticeofcancellation; (f)Thatall information contained in the underwriting application provided totheFund as a condition precedent to participationin the Fundis true,correct and accurate Inall respects. (NameofLocalGovernmentalEntity) By: Witness Signature Signature Printed Name Printed Name >•Title: Witness Signature Printed Name IS HEREBY APPROVED FOR MEMBERSHIP IN THIS FUND,AND COVERAGE IS EFFECTIVE THE DAY OF -,,20.SIGNED THIS DAY OF ,20 _^_r By:. Administrator/Trustee AMENDED INTERLOCAL AGREEMENT CREATING THE PREFERRED GO\ER^teF|#D^iSy|t^CETR0$T Tlais Amended Interlocal Agreement*restating ajdiaodi^ahg the Pieferred Qove^jomental Insurance Tiusi*is ir^de.iu^ci :«>Tjtic^m]ai^p effective October 1»5004,by sad:"aipa£ig:^-:ljocai Goverturiej^al Eiltiies whohaveexecuted Participation Agreements ^Apr^afidn Jdr H#iber^p:fe( the Preferred .Gitrverinra^^become effective October1,^004,suchLocal Goverruioental Entities representing:ope hundred peixent (100%)of the Qovemm^tal^Eotiries participating in the Prefened Governmental Insurance Trust,together with such other Local Govenmiental Bntit^who hereafter become ni^bers <rf.the the purposes ar^d subject to the conditions and jrestrictions,as hereinafter setfortL WBER^}^shall have gbverhir*^^powers to enable tbeiii to conduct municipal g^vemment, p^ffprm ih^uijiial:ftioctioa^and render &f^f^^^^ municipal purposes except as othew^ pt^fpnn intinicirAl ftinciions,and render &iitii<^may eKqr^e any pow^r for WHEREAS,Section 125.01 .Honda Statues,proirides that counti^shall haw the pow^r tp cv^e%c^^specifica%prohibit^by law;and WHEREAS,Section 166.021,Florida Stetuiea,.provides in part that ^...muiricipalities shall ha^ej the goverriffichtal,corporate.^ipr6pi3^^enable th^n to ^oridurt Jjiunkdpal government!perform Jiiunidpal functions,and tender municipal services,.and may exercise any power for TO^rii^naipur^ses,exc^jl whet]exprfes^prorntritedby lawr>x,and WHEREAS.Section 163.01,Florida Statutes,coromanly known as the Florida Interlocal Cooperation Act of 1969**,provides that T^^Govertira^tal En-SWes may enter into interlocal agreements in order tomakethemostefficientuseof thedr powers by enabling themto cooperate with otbec Local Governmental Entities ona basis of mutualadvantage,t^hereby provididg.services andfacilities in amanner,and pursuant toforms of goveromwtfcl organijLatiGQ,thatwill best accord with geographic,economic,population/and other factors influencingthe needs and development of Local Commnriities;and WHEREAS*Section S24.4622j Honda Statutes,providesthatanytwoor more Local Govemniental Entities m^e^er into to irierlocal agreem^th$purpose ofsecuringthe payment of beogfits under Chapter 440,Horida Statute^proyided such local ^yernmental self- lo$i^apce therebyhas $n annual normal premium in excessoffive million dollars ($5,000,000,00),maintains,a'continuing program of excess insurance coverage;submits annual audited year-end financial statements,and hasa governing bodywhichis comprised entirelyoflocal elected officials;and WHEREAS,Section 768.2S,Florida Statutes,providesthatthestateanditsagenciesand "subdivisionsare authorized tobe self-insuteds toenter intp risk management program^or to purchase liabifity insurance for whatever coverage they may choose^or to have any combination thereof,in anticipation of any claim,judgEneJtt,and claimsbillwhichthey may b$liabletopay pursuantto such section;and TSEERLEAS,Sffctibn 11 £072,Hdiidi Stetftes*autoi^^any cqusty,mpi^paffly.or political subepvisioa tobe self-insui^d,toenterintorisk management programs,or to purchase lability ii^ranre ^it may choose%orto |iave ai#co&t^in anticipation of any judgment or settlement whidi its officers,employees,,or agsnts may be liable to pay pui^ant to a civilorcivil ri^>Mws^t.described in &^111 j^ WHEREAS,Secripn 624.46^,Flddda Statutes,prd^^ftat a governmental self-Msurance pool created pursuant toSection 768:28(16),Plorida Statutes,shallJiot be considered a coinmercial sel^insur^eibtid;a£id WHEREAS,each of 1te participating Local Governmental Bitities which are party to this Agreement,and all subsequent Local Gpvemmarjtal EotirW which bfecnme party tn tJnrSft AjB^^Tri^Fif^ arepublic agencies a?defined inSection 163.01,Elorida Statutes,addare Authorized to enter into this Interlocal Agreement by executing aParticipation Agreement;and WHEREAS,each of th&^e^art apartytothis Agreement have thepowers and authorities to establish,operate and maintain their own individual self-insured programs for the purpo^of securing pa^Chapter 440,Horida Statutes;and WHEREAS;each ofthe Local Governmental Entities which 9£e a party tothis Agreement have the ppwets and authoritiestoestablish,operate atid n^ntainthqr own individual self-inured programs for the purpose of securing payment of benefits under risk management programs or liability insurance ptograins;and WHEREAS,itisin the public interest,and inthe best interest ofthe parties hereto,thatthey join together to estahlish a consolidated aad compfehensiyePund forthepaymentofbenefits under the Florida Workers'Compensation law,pa^antofclaro$,judgments and claims "biils which they maybecome liable to pay,pajpfceot rf;c^*mci^rights liabilities,payment of casualty and property losses*and the purchase of appropriate policiesof insurancej excess insurance and reinsurance to pro^de protection agakst suchclaims 3 WHEREAS,the governing authority of each of the Local C^e^nmentalEptities which are a party tothis Agreement have duly authorized the execution and delivery ofa Particip^ion Agreement qb|ig^ih£.^ WHEREAS,it is tte in^of tins Agreemett toallow Oovi^ai^cxei^edhfi^y,p^suanttothet^rmsarid conditions ctfthis Iujierlocal Agl^eexaent;- IftQW.TBS^^delivery of aPMcipation Agreeoa^nt, thepartiesheretodoherebycovenant and agtee asfbllow3 SECTION! Jl^.QlilPdIL^teNdP.1tEGITALS The ftregoing WHEREAS clausesare incorptiratod ifi,abd made a part of.tibas Amended SECTION!!; The following definitions shall apply to the provisions ofthis Amended Liberloeal 2.1 ADUmistRATQR.Anindividual,partnership or coloration engagedbytheFund to carryoutthepoliciesoftheFundandprovidethe day-to-day executivemanagement and oversight Ofthe Fund's operations,including,butnot limited to,acirninistrahon, marketing,underwriting,quoting;issuance,maintenance and auditing of coverage terms,coordinating other thirdparty service providers retained bytheFund aqd ensuringthat the policiesadddecisions oftheBoardofTrustees ace implemented. 2j2 Glj^^l»m*M^a^c^P shaft w*m the procasa of identifying,rec^vihgj handling,adjusting,reserving,resolving arid piaocnog forthe funding of eligible olaims made byor agqinst any Member ofthe Ttust aid any other nec^saiyri^mauagemept operations. 2.3 CdN^RTJSirnoNfs^^cmlribui^^shaU mean any premium charge or other consider^n imposedorcollected by$qt on behalf of the T>ust,from itA Members based on criteria adojpted from time to time bythe Board of Trustees.Contributions inay be determir^d and »t with-re^ec^toall ^Member or otherwise.The tetms *C6ntiitaition(syV ^^Kteito «id *^atuipn Contnl3utijan(s)"are u^intejth^ge^ly and synonymously throughout this Z4 gr^R^^&i^i:^ov*i^4^Agreements*sh$Ilmeto-tlte tepfas ahd cbnditMns rf to policies of insurance^^cess insurance policies and reinsurance policies which are provided to Buftd Mwiibers from time to time vM&aaapi^^ insurance coverages providedtotheFund Members,^s maybe modified or altered from time totime wilh respectto allMember s,any individpal Member orotherwise, within the applicable notice and procedural requirements oflaw,orinany other rules atnd regdatibns adopted bythe Board ofTru^ees, %5 BCJNb."Fund*shall tnean the #oup aelf-inaiirer*&fund or bust fund which is hereby createdforthepurposessetforth herein,known as the Preferred Gxrvemmental 2.6 2.7 2.8 X9 2:10 2U1 2.12 2.14 2.15 Ixisuraoce Trust,the term*^uiid?*TrusT and "IYust Fund-are used interchangeably acid synonymously throughout this Agreement Local Governmental.Entity OR.EimpEs."Local Governmental Entity or Entities'*shall mean any "publte agftlic/*as defined by Section 163.01(5)^),Florida Statutes. MbmsSr.Trferrfj^-**shall mean a Lpcal Governriigrital Entity which has duly executed a Participation-Agreement and otherwise has complied withall pro visions ofthis Agreement,and which thereafter is entitled to ail the rights and benefits conferred by,and subject to all conditions and obligations imposed by»this Agreejhent,lhe Coverage Terms,qi?anyrules and regulations whichmaybe adopted by the Board of Trustees. NO^frCOMgLiAWCH-^^CoinpliaT^e^^hall mean the failure to comply with;t£e tejnns rf thi^r Agreen^rtf;the Coverage.Terms,oranyrules tod regulationswhich maybe adopted by the Boardof Ttustees,butonly to the e7*teE$thstt suchNon- Compliance is deemedmaterialby,acid within thesolediscretionof,the Bqard of pj^TifaPA^ow.A^^EB^g^'Tarticig^on jAgre^ehr ahall mean the application for membership inthe Preferred Governmental Tnaurance Trust pursuant to whieh.an .appljring member agr;^es to be bound by thfc provisions of the Florida Wooers* Coinpensation Act,this Amended Interlocal Agreement,tiie^rules and -regulations .adqptecj by the Bo^of Trustees of th^Fund,and whto ^c^pted bythe Board of Trustees or fhjeir dv^.autto^of the Interlocal ppT^rjitoy qoNTRrtimsitfsY^Contriburibn(ft)H shall mean Ctonfribuhon(>)t Thi^-Party Claims MAHAdBB.4tThiTd-party Oajxhs Manager'*shall meanan individualor organization providingclaimsmanagement services totheFund. trust.*tnistH:iri.mmA**tf*fc. Trusthes.^iisfees"or "Boatd ofTrustees*4 shall mean the collegia!body charged With the operation and admanistration c«f the Bind pursuant tothe provisions of this Agreemejit TRtiSTPorro-"TrustFundnshallmft$n tl^^undr. 3,1 3.2 13 SEGTtONUI ESTASLTSrtlVfENT OF "PREFERREP The Pj^feired Gcvemmenr^Insurance Trust is hereby established and created pursuant tothe provisiom ctf Articie VIE,Section 2,oftheFlorida C^SUS%,S#ions 125.(31,163JD1,6244622.76&28(15)(a)^lU-C^Borida Statutes,forthe purposes,and withthe powers,dutiesand obligations*as herein set forth. LbGAtlON,Tte.tacation.ot^i^ptinc^al ^cexrfthe^stshallbe dAetSfBaaed frbiri timeto tirj^byth^Board ofIVustoes. tis made andc^ecuted^and the Fund ^purposes oi: (a)Pooling Member's resources to fulfill TyTetabftS*legal Hatrilities and obligations,includingi butnotlimitedto,providing forthe payment of benefits under theRbnda^Ltofe (b)To rranimize the cost of providing workers'cornpensaricin coverage by devdoping and wsBmrtg -sp^afizad efeim.services,by developing ahd refining, internallyorthrough third party ^er'Vice providers,amanagedcare system,together vir^;the;^the Members; <c)To pay t|r^i^^^;i^^liab^y and casualty courage to participating £r^A3i>«yDS^-SjEuiJp^bi^Iwt not ^^&ed to,public officials errors and omissions, ^pl0i^jpmfM^l^fityl^law enforcement liability claims; Topayorprovide for property coverageto partic^ating Members; To payftr or provide to'itsparJdyap^^Mfi^^scoyec^in anticipation of gment orsettlementresulting from acivilrightsaction arising under federal lawt (f)Topay for or provide to participating Members coverage in anticipation of any claims hillpassed bythe Legislature; (g)Topayfororprovidetoparticipating Member?coverage foranyotherrisk authorized underMorida lawto b^self-insured; (h)Topayfororprovideto participating Membersallor a partofsuch coverage This Agreement is jut iqtended to create a partiiecship pr other legal entity whereby one Member assumes the obligations of another Member,or the.obligations ofthe 3.4 N<^-ASS6sSAi&iixitY.Shoulda dcfidtdevebp inthe Trusty ijecowries,whereby claims or other expenses cannot be pmdj:each individual Member AhaD assijme hab^ty for the costs rf claims brought Against t^M^ber as if suchMemberwereindividually self-insured.EachindividualMember shall thereafter be responsible forits incfividual costs including,.btjt notlimitedto,claims ada|pis&^20^Li ^vidiotrt am ohb'gation to,ora ogjbt of contribution from,otter 3,5 Powers.The Trust shallhaveallthe righ^pow^duties andprivilegesasset forth in Article VIII,Section 2of t^Horida Constil^and Sections 163.01.et s$q.,$2&4j^622»7^^^1^^i>and ililfi^^p^afef^fcahle FloridaStatutesrwhich are necessary to accomplish the purposes described ki Section 3.3,including but.not limited to thefollowing: (a)Securing.thep^rinent ofbenefes.under Chapter 440,Florida Statutes. (b)^c^^0pisimiajfts from Members .for the p^pose of paying for ojf casualty,property,and labij^coveragei ^jsekiiing tl»:.payiriwat of (c)Eayfi^a£ry.*oth^i^ lawto te s^-irisqred. (d)Payi^for Or providing allor apart of such coverages. (e)To make,enter into,and arrange for insurance^reinsurance,excess insurance, efifrastropbic insurance,^p-lps^in^jrance,orany ot^coverageastheFundshall deem necessary and appropriate*without mich purchase being deemed a wfflver of ijin&eragii immunity. (f)To pay*or approve the payment of,anyexpensesandfees associated withthe (g5 To indemnify and hold harmless any Trustee,officeroftheFund,orany person acting on beh&if ofthe Fund,to the follest extent such indemnification is permitted bylaw,against (1)reasonable expenses actuallyandnecessarilyincurredin 7 connection ttfith any threatened*p*riding or completed action,suitorproceeding, whethercivili administrafive or dvil investigative*includinganyaction,suitor proceeding by or on.behalf ofthe Fund,seeking tohold said person liable by reason of the fact that heor she was acting in such capacity,and (2)reasonable payments madebyhimorherin satisfaction of any judgment,monetary decree or settlement forwhichheorshe Ji^y haw become liableinany suci action,suitorproceeding by reason ofthe iact that he orshewas acting insuch capacity.This indemnification is ntf intended to,and does not^waive ao^pun^bat^ofthe Fund,Trustees servingin their,capacity,asTrusteestothe Fund,ortoofficersor employeesqfthe Fbnd,by virtue ofthe.laws of the staje of Horida*butis merely in addition tosuchrights,pr^(Ref.624.489 and 768.28,FS). ^BGTIQNIV 4-1 fffiBTiIi1ffgi Tlie Board of Trustees shall meetat such-time and in such location as may be acceptable toa majority ofthe 5oard of Trustees.The Chairman ofthe BoardofTrustees or his designee shall setthe date*timeand location of each. meeting,and ni^e/theretf shall,,be forpished to ejich Tjustee by t±ie Ch^man or his deri^ieeBotless thahlen (10)days.prior tothe date of such meeting.Sjch notice §jh$ill specify tb?date,timeand location pf sp^meeting;and may specify jhe purpose the^f.^ai^ac^hp Stt¬ic^to eachTmst^e by mail tothe address cJ sucii T^^officeor offices ofiheFund.In no ev^sJ^ttoS^thau quarterly. The Chairman of the Board oranythree(3)Trustees may call a special meeting and dbxc*;^.%-^^send the prec^guisite notice for any special meeting c#the Board of Trustees.Special meetings ofthe Board of Trustees may be held at any time andplacewithoutnotice,or with less thaft th^all Trustees execute a waiver iif notice and consent to said meeting. Forpurposes of a.duly called meeting oftheBoardof Trustees,a quorum shallexist tf a jjagpdtyofihememberiof theBoicd pfTrusteesare preStot. The Administrator shall k^p minutes,ofall meetings,proceedings and actsofthe Board of Trustees,butsuchminutes.need notbe verbatim.Copies of all.minutesof theBoard of Trustees shall be seed bytheAdministratortoall Trustees. 4.2 VoisNQ..All actionsby,and decisions t?f,theBoard erf Trusteesshallbe by vote of a majority ofthe trustees attending a duly called meeting ofthe Board of Trustees at which a quowm is piestot;however,intheevent ofa duly caUed'sped ^meeting*all actions by,and decisions of,the Board of Trustees may beby vote ofa majority of t^T^^e^present ^nd attending sqch specialmeeting if aproperwaiver of notice and consent was obtained as provided heredn.j i 4.3 omcfe6y7^v^pi^The Board of Trustees shall establish,maintain and provide adequate funding for an office or offices for the administration of the Fund.The j address of such rj|Bce or plfic^s shall be made knotwn to the units of local \ goyerrimeDte eligible topartidpate in,or participating in,the'Fund.Thebooks and records peit^dningto theFundandits admini^ration shallbekeptand Ti^rrtained at thec^epr offices of tl»i!^nd.I 4.4 exbcutio^gp T^q^/jyn^pg.A certificate,document,or other instrument signed by the Chaicn^or the.Admi^of ^.Fund shall be evidence of the action of the j Board of Trustees and any such certificate^document,or other instrument so signed ! ^hay ctocius^ely ^be atithentic.Lik^se,all arts and matters ^s^ thereinshall conclusively bepresumedto be-true. 4.5 A^mzzmm*of ADMihnsTRATQR.Ti^trusty sb^>?^%oate and prtxvide coift^r^atipn ft>r ah Admhi^^or to adr^affairs ofthe Fund.Any Administrator so des^of ^^stee^w^afi^B^bond withthe Trgstees asnamed obligee.The amount ctf^cii bohd'shall be determined by the Trustees and.the evidence thereof shall be available toall units of government eligibletoparticipate,or partidpating in,the Futid. 4.6 CQMftNS^tigwiAND SB^msHM^Nt og TBXJ&ess,The Board of Trustees jaay fromtimetq time establish ai»asonat^amc^of rcpmpen^tionto cover attendance atadulycalled meeting bytheBoardof Trustees,ortocoverthe performance ofthe normalduties of a Trustee.Such compensation shallinclude r^mbursement for reasonable arid necessarye^eosesincujied therewitL SECnONV yftJMBEiL QUALIFICATION.TBBM OP QEHSE 5.1 ntji^rj^qtjat^The operation and administration of the Trust shall bethe joint i^ohsibility of a Board*of Trustees consisting of »>#&(7) Trav?tees.No Tikisiee maybe elected who is*or continue to serve asa Trustee after becoming,an owner,office^,or e^lcrjee-of-a sendee provider tothe Fond..Each Trustee shaU beanelected officialofa Member.Notwo (2)Trustees maybe elected o|Hcials from the same Member.Each Ti?Us|^s|^serve for a.period of four (4) years,or th6balan6^of such Trustee's term of office as an elected-official of the Membec,l^chMte*shall %st becufc A Ti^stee |nay s«^sp(^B$a^e four (4).ye»jr: term^prodded such Tiustee contiriufcs to remain ^elected officialofa Member. Eadi ^nd every Trustee named,and each successor Trustee,shall acknowledge and consent to thdr electionasa Trustee by givingWritten notice of acceptance of such %j*pitfrfr$$pb .tty tbft ^bflTryman^or acting chairman ofthe Board of Trustees. 5.2 RBSI0HAI1ON AND Removal OF A TRUSTEE.A Trustee may tesign aiid become and remain folly cfischarged from all further duties or responsibilities hereunder;by giving at least sixty (60).days prior .wjfeto jd^ delivery pt&i^oracting chairman of|he Boati a?J^s£^S^dti &P&§#^.**.1^$*?.M&^&&^&$-&& effect,and suchjce^itfwns^date designated uhle^ji specessor Trustee hasbeen elected atan easier date.as herein prodded,;3A.^hrj&/$y«rt;> re^ltiation shall take effect iinmediately %bri1he election of su^sucoessot Trystee^ Additionally>oral notice of resignation maybe given at anyduly convened meeting of theTrustees,which saidoral notice ofresignation sfacali be incoirporated,andmade a part c4 the minutes of such duly convened meeting:A Trustee mayberemoved by amajorityvoteof.the Board ofTrusteesorbyamajorityvote of-the Member s.Any Trustee*uponleaving office,shall forthwith tuiii over said deliver to the-chairman or the secretary of the Trustees atthe principal office of theTrustanyandallrecords, books,documentsorother property in such Trustees possession,orundersuch Trustees control,which belongs to the Trust. 10 53 election of successor trustees.Accessor T^tees shall beelectedbya majority voteoftheBoard of Trustees..N^ndnatioosfoc the election ofTrustees may bemadebythe Board of Trustees orbyany Member ofthe Fund. 5.4 TOOST^TrrLB.Inthe everit of death*j»agii^oiVJD^^or inabilkjr toact by ijny' one pr more of the Trustees,the remaimngTcustees ?hall have allthe powers,rights, estates and interests of thisTrustandshall be chared with its duties'arid' responsibilities;provided,however,thatinsuch case(^),noaction may betaken unle$lit is cjoncorted in byamajority of the remaining Trq^^j 5.5 TKrj&hfe obfiobers.The Trustees shall elect from amongthemselves a chairman.I i \nie^hairman and secretary of the Board of Ttustees.Suchofficers shall be elected anmally at the end ofthe fisc al year efthe Trust and may succeed themselves.j 5.6 Pow^jura^^The Board of Trusty shaU^| the general supervision and operation of the Furid,and shall conduct the business j activities of'^in accordance with this Agreement,its by-laws,rules and j regulations and appHcab^^*ad '#$*-sfatejtes acid rules and regulations.In 1 connection therewith,the Board ofTrustees may exerdse the folbwing authority and j powers:| (a)Tocollect premiums from participating;Members inan amount individually a^eed to by the Fund add said Membto>jfa\fo:pxpto&of paying for or providing j the coverages provided inltiisAjgeem (b)To pay for or proyi^such esce?>insura^c*or Mn^rance cMefagp.as is \ uece^saiy^ (fe)To^boirow fonds,issue bonds ^d other certificates of indebtedness,and .orletters of creditto assist in-providihl the coverages provided in (d)To pay for or proyide appropri^e Ji^bijity and other type?of insurance^to cover the acts ofthe iBoard of Trustees ofthe Rand. (e)To contract with appropriate professionalserviceproviderstomeetthe purposes of the Hindi and to expend fundsforthe reasonable operating and administrative experts of-tjbe$&&*including but notlimited to,all .reasonable and necessary expense?which may be incurred in connection With the establishment of the Pund,in connection with the.employment of such administrative,legal, accounting,andother eipert orclerical assistance tp theFurid,and in connection with 11 the leasingand purchase ofsuch premise,material,suppliesand eijuipment as the B oard,in its discretion,maydeem necessary foror appropriate tothe performance of its duties,or the duties of the Administrator or the:otbec agents or employees ofthe Bond- (f)To pay claims thefund becomes legally obliged topay pursuant tothe CoverageAgreementsentered into by and betweenthe Fund andpartidpating Members. (g)Toestablishand accumulate as part erf theFund adequate reservestocarry out the purposesoftheFund. (h)Topaypremiums on,andto otherwise secure op provide,insurance products that are ancillary to tte coverages authorized by tins Agreement (i)Toinvest andrrfnvest fmdsth^maycome into the possession ofthe Fund, (j)To.assume tlie assets and liabilities pf the Fund. (k)To lake suchactions and expendsuch funds as ace reasonably necessaryto fociHtate the.ces^tion ofthe business of the Fund. (1)To exerdse such powers that are authorized tobe eserdsed by trustees under andpursuantto the law?6f Florid^.. (m)Totakesuch other action and expend'3uch funds as are reasonably necessary to accpjj^J^the ptoses of t^Fqn^. 5.7 api^qval o!>MEMBERS.The Board of Trustees;afterthe inception ofthe Fund, shall receive ^^qiSoQSfop m«i]d|^^fram prospective new pattidpants in the Bund ^shall ap^c^wiipplkir^formembership in accordance With the.^rms of this Agreement,any Participatim Agreement,applicable foderal and state statutes ahd rules z^nd reguktio^and ^establishedbythe Board of Trusteesforthe admission of new membersintothe Fund;provided,however,no prospective member may participate intheFund uoless such ptoSpectivememberis a public agency of the state.As used herein,the phrase public agency"includes,hut is nc^limited to,the stale,its agenqies,counties,inumdpalities,special didricts, school districts!and other governmental erifitiesitte independent establishments and con^itutibnal officers of thestate,counties,municipalities,schooldistricts,special districts,andothergovernmentalentities;andcorporationsprimarilyacting as instrumentalitiesor agendes of theslate,counties,munidpalities,special districts, schooldistricts,andothergovernmentalentities.The Board of Trustees shallbe the 15 solejudge of whetherornotan applicant for membership shall beeligibleto participate in the Fund;provided^however,the Board of Trustees may delegate the functions associated with approval ofMemberstothe Administrator. 5.8 mteoRtiNO.The Boslrd of Trusteesshall be responsible for add shallcausetobe prepared and filed such annual or other periodic audits^reports and disclosures as may berequiredfrom time to timepursuantto applkable federalandstate statutes and rules and regulations,including butnot limited to,periodic payroll audits, periodic summary loss reports,periodicstatements cf finandal conation,certified audits,appropriate applications filed by prospective new members,reports as to firwndarstandings,payroll records,reports relating tocoverage,experience,loss and compensation payments,summary loss data statements,periodic status reports,and any ether such reports asmay bereqtmed foom^.tim^to timeto accoxnplish the purpbse of the Fundortosatisfytherequirements of appropriategovernmental entities, 5.9 l&ustms*jjf&itinrr.The.Trusteesandtheiragentsand'emplo3reessha^not,be liable foranyact of omission or commission taken pursuant tothis A^ementu^ such act constitutes a^tillfol btea^rffidbciary i$dfi^s riqr^shall anyTrustee be liable for any actof ojrnissionor commisrion hy any other^^^or.by any employee or agent erftheH^,T^Ifonclbef^|^s^oe^etb #^e%hddiiannless and indemrtify the Trustees arid their ageite ^damageor ^pense incurred by said pers^ns.or eirjfi^ca&fcdty o^behalf $f the Fbnd, ujrilei^suck ktiimcbdstStutes $r>adlKul t»^id&^3df £^i^a|rsr 3iatij33w 5110 REL&&MGB oiHf rogyr^r^soption.TheSoscd pfTpqst^sm^e^and ceasuit with legal counsel coi^erning'any question tvhich mayarise ^to the duties and powers ofthe Board erf Trustees or with reference to any other matter partpniiag to thii Agreement orthe Fund created thereby;and theopinion of such counsel sh^be foil and complete authorization and protection from liability arising outoforinrespecttoany action takenor suffered bythe Board °f Trustees oran individual Trustee acting hereunder in good faith and in ajtjcoridance wfth the opinion of suchcounsel, &U *YrLkws>JtULBS and regulations.The.Board ofTrustees may adoptandenforce such by-laws,rules and leguiatibns as between the Members ofthe Fund and.the 13 Fund governing-the operation of the Fudd as areconsistentwiththe terms of this Agreement and as are reasonably necessary to accomplish/the purposes ofthe Rind. ^C?ITQNM 6.1 responst^tlities.The Administrator shall have thepower and authority to implement^of Tru&e^^by theBoardofTrusteesastheyrelateto the on-going operation and supervisionofthe Fund,the bylaws,rulesand regulations establishedbythe Bbard of Tri^stees,the provisionsofthisAgreement,and applicable federalandstatestatutes,rules and regulations.The powers,duties and r^on^balities of the Ad the Bbard of Trusteesshall "be set forth in ah Administrative Agreement executed between t±»Board ofTrusteesand the Administrator. 6.2 coKtEOStlTlOMS^The Administratot '^hall deposit info the account oraccounts designatedbytheBoardof Trustees,atthe financial institutionorinstitutions designated by theBoard ofTrusteed,allcontributionsasandwhen poUected fromthe Members and sold modes shall be disbursed only inthe manner provided by this, ^gwiemeht,the Coveri^:Agreementa*the rufc.s,regulation and by-law^^rf Board of Trustees,and the Agteement enteced intobyand between the Board of Twstees and thfc:Admimstrator. MEMBERS 7.1 MEMffiBRSfflg CANCBLLAT1QN,SUSPENSION QK.feCPULSION.TteJBbard crfTtodtees shall be thesolejudge of whether membership inthe tbnd.may be cancelled,or. whether a member maybe suspended or expelled from the Rjhd;provided,however, theBoard of Trustees may delegate the functions associated with cancellation, suspension or expulsion of a Member tothe Adimrristrator.Written notice ofany such cancellation,suspension or eatpulsion shall be provided by the Band tothe member no less than tfairty (30)days prior to the effective date erf suii cancellation suspensionor expulsion,andnoiiahilityunderthis Agreement:oranyother 14 agreement,certificate*document,or otbw instrument executed by the Jbnd arjdtibe member pursuant to "this Agreement,shall accede tothe Band followingtheeffective date of such cancellation,suspensions pr expulsion.The minimal notice provisions ofthis paragraph shall not-i&ffyMtt-QNBt a memberfipls tomakethe requisite contribution^for coverages underthisAgreementwhensuch contributions sice due.. 7.2 RESPQNSimuTiE^OFMEMSERS.By execution of aPartiripation Agreem^it a^eeing tobe bound bytheterms and conditions ofthis Amended Interlocal Agreement,each Memberagreestoabidebythe fcdlowkg rulcs^~ (a)The Trustees have the sole responsibility to govern and direct the affairs of the Rind pur^ant to tHsAgtee^e^ (b)Any Member who formally applies for Member ship-inthis Fund,and whois accepted by ihefiWj^^party to tiBrls Amended Merlocal Agreement andshallbebound by ail oftheterms and cdndtiqns contained herdn.The Partidpation Agte^constitute a counterpart erf this Amended Interlocal Agreement,and this Amended;Inteciocal Agreement shallconstitute ^ counterpart ofthePartidpation Agreement (c)Tomaintain a reasonable loss.prevention program inorderto provide the maximum in safe^and lawful practices as such may relate to the jpotential liability ashamed by the Rir^under fids A^efcment or any other agreement,certificate, document,or oti»rinsrjtLment executed bythe Hand and £&*&j^tothis (d)?pjSatyl$yti$thfc^Gqi^&fca^ (e)To^pmvide iirjcmedi event.to-acdifent eri^rfent occurs which is fikfely togive riseto a cMm wfthin ^anyother agreement,certificate,document,or other-mafnTment executed bythe Band andthe ID ."&>promptLy make all contributions for coverages arising under this Agreemetjt,orany ether agreement,certificate,document,or other instrument executed bythe Bind and the Member prirsoant to this Agreement,atthetime and in the mann^by tbeiBoard ofTrustees,§aid ci»tnb^mayhe .jwdpeed by ai^discount,participation credit,orother contribution reduction program established by die Board of Trustees. 15 (g)Inthe event of the payment of any loss by the Rind onbehalf of the Member, the Bind shall be subrogated totheextentofsuch payment to all therightsofthe Memberagainstaqypartyorother eptity.legally responsible for damagesresulting from said loss,andin stjch event,tJae lumber;Mr.^ officers,employees and agents,to execute ard ckKver such in^uments andpapersas is required,and dowhateverelse is reasonably neces^ry,to secure such,righttothe Fund/-and to cooperate with and otherwise assist the Fund as maybe necessary to effect any recoverysoughtbythe Fuild p^sijant to such subrogatedrights. (h)The Hoard of Trustees,its Administrator,andany erf their agents,servants, employees or attorney^shall be permitted atail reasonable times and upon reasonable noticetoinspect .the-property*workplaces,plants,works,machineryand appfiance'c$v5e^orany otber agreement,certificate, docUJT4edt,or ertte|:iAStrument executed by theMember add the Fund pursuant to this Agreement,^and 3hall be permitted atall reasonable timeswhiletheMember partidpates i£theFond,a$d uptoand induding two(2)yearsfollowingthe. termination ofits membership in die Fund,to examine the Members'books, vouchers,contracts,documents andrecords of any and e^^ery kind which showor tend to show or verify any loss that maybe paid ormay have been paid bythe Fbnd on behalf ofthe Mc^^pursuant tothis AgreemeM,or afcy other ag^ement, certificate^document^or other instrument executed by the Member and the Rind pursuaqt to this AgreemenJ,or tvhich show:or wr%the ac(fur^cy pf any ooiitribiition whichispaidor payable bythe Mefober pvir^gant to.tfc»team's erf this Agreement,or any other agre<jment»certificate,docujrjient,or c^her instament executed by the Memberand tiae Rind'pui?s\3aht tothisAgreement- <i)The Fund isto defend in the name and on behalf ofthe Member any claims, suits or other lejgai proceedings which may at any time be instituted against the Member on account of bodily injury liability,property-damage,property damage liability,errors and omissions liability or any other such Babafity,monetary or otherwise,totheextentsuch defense andliabilityhasbeen assumed bythe Fund pursuantto his Agi^emecrt,oranyotheragreement,ceitifieate,document,orother instrument executed bythe Member and the Fund pursuant to thi^Agceemeot,subject toanyandall erf the definitions,terms,concfitions and «tdurion contained in said agreements,oranyetheragreement,certificate,doci^nent,orother instruments, 16 although such claims,suits,allegations or demands ace ^wholly groundless,false, fraudulent,and to pay all costs taxed against the Member in any such legal, proceedings i^ehcW bythe Fund orthe Member,allinterest,if-any,legallyaccruing before and after entry of judgment in such proceedings*:}M^'ti^€M^^JijM^^in theinvestigation,r»gotiation or defense of such claims,suits,allegations or demands. Such defense shall be kjbjei^its Admini^rator,Which may make such investigations and settlement of any such claim,suit,or-other le^l proceeding,monetary op t^erm The.Member agrees to cooperate folly with the Ftind,its administrator and their agents*with respect to the investigation/adjy^^any claim,suit,or other legal proceedingtmone^covered bythe terms r^this Agreement and/or any p^desdf^steacfc ^ess Si^mc»or r^-iisurance which have beenpurchasedto proyic]eprc^such daims andliabilities. The Member acknowledges that failure to cooperate folly in the investigation, defense orlitigation .of iaacib;claims,suits,orliabilities may constifufte g0ox3nds for denial of coverage pursuant tothis Agreement and/or the applicable polidesof insurance, (j)The liability crfthe Fund is.spedfically limited'te the discharge of the liability pf-^&^thi^Agteemeot ;pr any other agr^mertf, certificatei dqcumenti or trther;^exec^ed bythe Member and ^t^Baid to tjbg^pg^^does not apply to p.uditive or (k)|feJ^|he :fttod and the Member otherwise.exgDpsaly agree |n.wi^ti^ cpyerag&by the Rind foraMember imder the fcc^;.i#ffi^ agreemerd:,certificate,document^or other instrument executed bytheMember and the Bitod pilrsutot to th&;Ag^mi^i'4^f«ag!ife automatically pnthe la^:day of September ofeach calendar year,and no.liabilityunder this Agreement,orany other agf^mecit,pert^ficatei document,or other jntfnftnent executed bythe Member and the Rand pursuant tothis Agreement,-shall accruetotheFundbeyondsuchexpiration date unless such Memher reqewsits coverage. (1)Except as otherwisef pitivided herein,a Member's coverage maybe cancelled bythe Fund or the Member at any timeuponno Jess thanthirty (30)days prior writtennoticebythe Board of Ttustees br Administrator tothe Member,orbythe 17 MembertotheBoardofTrustees.The notice shall statethe date such cancellation shall become effective, (m)Excess monies remaining after the paymerit of claims and claims expenses, acid after provision has Been m^ule for tto payment of open claims aind outstariiing res^ves,may be distributed try the Board of Trustees to foe Members participatiijgin the Rjnd in such manner as t±.eBo^crfTrustees shall deemto beeditable. (n)Therewillbeno disbursements out of thereservefond established by the Fundby way ofdividendsor distpbutiom erf accum^ated reaves after provision has beenmade lor all obligations against the Fund and except at the discretion:^the BMrd of Trustees. (a)Qualified service prc^ders,including attorneys selectedby the Band,shall: defend,investi^te,settle and otherwise process and dBispose of all daims,suits, allegations-ordemandsthat mayresultinliabilityassumed by th^Fcmd on behalf of the Member pqrsuant to'this Agreement,or jpy other agreement,certificate, document,op otherinstrumeot executed by the Member and the Fuxid pursuant to this (p)The Member,throughthe Board of Ttustws,doe§.herebyappointthe Administrator as its agent anditfft^^ necessary contracts,,reports,w^yer^agi^ejiients,exc<?ss iiteurance contacts,service contracts^and other documents Eeasonahly necessaj^to.accompti^to purposes arid to fulfill the respon^bilfties irf the Bind;to m^e or arran^for the paymen):of daims*daim^e^i^eases,and aH.otiaerinaltei?Squired or necessity insofar as they: affect the matters covered pt^rsuant to tbe teems pf ifs Agreement,orany ptfapr agreejjient,certificate,document,op otherinstalmentexecutedby the Member >id' the Rind pursuant to tias Agreement*and the rules and regulations now or -hereafter promulgate b^theBoard c^Trus^^ (q)To make prompt payment odf all contributions and penalties as required bythe Board ofTrusitees,smd conttibutions or penalties tobe determined by JheBoatd erf Trustees.Any disputes concerning contributions or penalties shall be resolved after the payment erf said con^ibutions orpenalties. (r)Topay reasonable penalties as detenmned by theBoard of Trustees for late payment of contributions required under this Agreement;orany other agreement 18 certificate,document,orother fcistmment executed bythe Member andthe Fund pursuant tothis Agreement (s)Coverage bythe Fund under the terms ofthis Agreement,or any other agreement,certificate,document,or otfeer instrument executed bythe Me»mb<5p and the Fund pursuant t^tlds Agreemem,^be cancelled,uponnplessthan ten (10)dayspriorwrittennotice from theFundtothe MembeP,fornonpaymentof contributions. (t)Toabideby all theterms anil conditionsof tins Agreement,thePartidpation Agrfcemerii,the Fund's by-laws,the rules and regulations,the terms ofany coverage document issued by the Fupd tothe Megnher4 andany other agreement,certificate, document,or other instrument executed bythe Member atid the Fund pursuant tothis 'vplui^aiily transferstotheTrust anyri^lts acid privilegessuch •the laws ofthe State ofFlorida,inducH^Actions 163.01,-and 768^;Elt^^statlrtory protons pertaining to such Member's sovereign immunity and the applicable hnritations ofthe Member?* liabilityto $10Q,000:OQ perindividdai claim,and to$200,000.00formultiple cl^d^ arising out of thesame transaction;The purchase of insurance orindemnity fc&eur^construed as atyjjiij!^by theMembers. True and complete accounts sh$b^^ the.Tpustv;T^a^pufite.of theTrust shall be audited ap^ certMied public accountant?,which shall 1^selected bytheBoard of Trustees. 'SBCQtiNEK WtATTOW Tins Agreement shall cpdinue fo:full force and effect urmU it isterimnatec]by the mutual consent of all the Members;provided,however,th#this Section IX shall not be construed to preclude:the termimtibn and windingupoftheTrust wifom the discretion of the Board of Trustees,ortheamendment erf tMs A©»ement prui^ant to 3ectioriX- 19 SBCTIGNX AMENDMENT ThisAgreementmaybe amended uponthewritten consent erf the Members of foe Fund. Execution of a Participation Agreement or renewal of coverages provided by the Bind shall constitute such written consent SECTIONS CTATUTE^^ TheTrustshallatall times actin accordance with the provisionsof statutes,rules and regplations erftheState ofFk ^TlOffXEI 12.1 p&ojgttihoM AoA3M3t AssiowMffiBLSiT;No Memlxr may as^^any right,claim,or interest it m^brve under ^coverage team,and no creditor, assigXtee,op tmxd-party benefid of ^Mfeir^^or title toany part,sharei interest funds,or assets oftheTrustexceptas specifically May be agreed toby.the.Trust 12.2 Ap^jc^aLE'LAaly.ThisAgreement shall he governed by arid construed in accordance withthe statute^rules and regulations c^|iie Stete of Florida,and ^31 questionspertainingto its validity,constn^ction,and admiritstration shall,be det^mtincd in accordance with the laws of the^tate of"Florida. 123 Bi^R^mm^tt.The Triitt andits Members shall ha^»thq powerto enforce this Agreement by action brought in any .court of appropriate jurisdetion wilMn the St^ ofFlorida. 12.4 StiraRLfiamLifry.If airy term or provision ofthis Agreement,orthe appfication of such termorprovisiontoany person pr circumstahce,shallto ainy extentbe invalid or unenforceable,the remainder of fois Agpeemepfc andthe application of such termor provisionto persons or circumstances otherthanthosetowhich itis held invalid or 20 unenforceable shall notbe effected,,and each teem or provision ofthis Agreement shall be valid and enforceable to the foU extent peridtted bylew. 125 CQNsmucJ30N.Whenever any Words are used in this Agreement inthe jnasculine gender,they shall be construed its thought theywere also usedinthefeminineor neutral gender in all sftuations where theywould so apply.Whenever apiy words are used in this Agpeemefitfo the ^{palari t£^r.4j|iall be coivrtrued as though they were alsoused in the.plural from inall situations wheretheyWouldso ^pply.Whenever any words areusedin :this Agreement in the pluralform,they shallbeconstrued as were used inthe singular form in all situations wheretheywouldso 12.6 FisGiMLTmigL The Fund shall operate ona fiscal year from 12:01 a.m.,October 1,to the lastday of September of the succeeding year.Applicationfor when approved inwriting by the Board of Trustees or'its designee, (constitute a-continu^unless cancelled bytheBoardof.Trustees c^thepaiticipatingMeinberiam^ IfyjMji^^Ago^jnent or renewal of crjyerages provided by the Fund,andupon acceptance bythe Board of Trustees,ortheir designated agecrit,theMember agrees to be-fully bound by the terms and tonditions^of the An^L^^^ October 1,2004,and thereafter. ^1 AMENDED INTERLOCAL AGREEMENT CREATING THE PREFERRED GOVERNMENTAL INSURANCE TRUST WHEREAS,SectionXoftheAmended Interlocal Agreement Creating The Preferred Governmental Insurance Trust (alternatively "Preferred","Fund"or 'Trust")provides thatthe Interlocal Agreementmay beamendedbythe members of Preferred,and that executionofeithera Participation Agreementoran AgreementforRenewal of Coverage shall constitutewrittenconsenttosuchamendment;and WHEREAS ,in orderto protecttheintegrityof Preferred,itscontinuedsuccessandprovidesecurityas to itsoperationandadministration,itis essential that the provisions of the Interlocal Agreement,relating to whomayserveasaTrusteeof Preferred,be fully compliant with applicable Florida Statutes; NOW,THEREFORE ,by execution of a Participation Agreement or Agreement forRenewalofCoverage, the Members of Preferreddo hereby amend subsection 5.1 of the Amended Interlocal Agreement id read as follows: 5.1 NUMBER AND QUALIFICATION OF TRUSTEES.The operation and administration of the Trustshall bethejointresponsibilityofa Board of Trusteesconsistingofseven (7)Trustees.NoTrusteemaybe elected who is,or cdntihue toserveas a Trusteeafterbecoming,an owner,officer,or employee of a service provider to the Fund.Uponinitial election to the Board of Trustees,a Trustee shad be alocal elected official of a rnemberof the Trust.No two (2)Trustees maybe local elected officialsfrom the same governmental entity.Each Trusteeshallservefora period of four (4)years,or the balance of such Trustee's term ofofficeasa local elected official.Following a Trustees'initial term of office,sudi Trustee may continue to serve asaTrustee of Preferredprovided:(1)such Trustee holdsanofficeasan elected local official (as requiredby s.6244622(1}(d)Florida Statues);and (2)amajority of the Board of Trustees,in their sole discretion,determine that itis in the best interest of the Trust that such Trustee continue to serve as a Trustee of Preferred,and so elects such Trustee to continue to serve a successive term,or terms.Each andeveryTrusteenamed,andeachsuccessorTrustee,shall acknowledgeand consenttotheirelectionasaTrusteeby giving written noticeof acceptance of suchelectiontothe Chairman,oracting Chairman,of the Board of Trustees. Effective Date:October 1,2013 22