2015 Board of Directors Meeting California Housing Workers’ Compensation Authority State of the JPA At a Glance 2015 Board of Directors Meeting April 30, 2015

Staff introductions Adrienne Beatty - Administration Ramona Buchanan - Administration Jackie Miller – WC Program Mgmt Nancy Broadhurst – Finance Henri Castro – Risk Control Dave Beal – Risk Control

CHWCA Mission Statement CHWCA was created in 1991 with the purpose of: CHWCA Mission Statement Reducing the amount and frequency of losses Sharing the risk of self-insured losses Jointly purchasing and providing administrative and other services The mission of the California Housing Workers’ Compensation Authority (CHWCA) is to protect member resources by providing a stable and economical Workers’ Compensation Program through an aggressive claims management policy and quality risk management services for its members.

CHWCA Advantages Ownership and control of coverage, claims management, and risk control Representation on Board and Committees Share the cost of risk among similar entities Continuous claims oversight Dividend/retrospective plans and incentives

Member Obligations Prompt reporting of ALL claims to TPA Cooperation in adjusting/ investigating claims Provide data to CHWCA Active Participation in Safety Program Attendance at Annual Board Meeting

Membership & Committees Membership (Board of Directors) 33 Members Executive Committee 7 Members Risk Management Committee 5-12 Members (8 current)

Committees Executive Committee Representative Agency Jim Shields (President) Sacramento H & RA Bob Hoskins (Vice President) Kings County HA Vacant (Treasurer) Stephen Pelz Kern County HA Wes Weir Eureka City/Humboldt County HA Vacant Lost Bill Fagan (Treasurer/B-Payroll below median), Rudy Tamayo (D-Payroll above median), and Linda Nichols (At Large) this year. Category A – 4 largest payroll (SHRA) Category B – payroll below the median – vacant! Category C – South (Kern) Category C – North (Eureka/Humboldt) – expiring! Category C – Central (Kings) – expiring! Category D – payroll above the median – expiring AND vacant! “At Large” – vacant! All Officer terms are expiring this year.

Committees Risk Management Committee Representative Agency Wes Weir Eureka City/Humboldt County HA Wendell Garrett Sacramento H & RA Jim Kruse San Joaquin County HA Todd Crabtree Mendocino CDC Patricia Friou Ventura County HA Jennifer Dawson San Bernardino County HA Janis Holt Yolo County Housing Karen Wilson Kern County HA Rod Roche Alameda City HA Eureka/Humboldt – below median/North SHRA – top 4/North San Joaquin – above median/Central Mendocino – below median/North Ventura – below median/South San Bernardino – above median/South Yolo – median/North Kern – above median/South Alameda City – above median/North RMC Makeup/Duties: Holds regular meetings in April, August, and November (in conjunction w/EC). Committee Chair reports to Executive Committee Membership attempts to include a cross section of representatives from small, medium, and large agencies Committee is responsible for: Providing direction to staff regarding safety/loss control activities Developing annual Risk Control Work Plan Selecting annual Safety Award recipients Approving RC expenditures of up to $5,000 Addressing requests by the Executive Committee or Board.

Overall Financial Position Current Premium (For Fiscal Year 2015) Pooled Portion $ 3,413,260 (7.1%)* Purchased Excess $ 546,020 Total Premium $ 4.97 Million (5.0%) (Represents $120 million in estimated payroll) *Pool premiums would have been $757K or 22% higher without the Mid-Layer Pool! Equity Position (As of December 31, 2014) Total Net Assets $8,012,112 Confidence Level Budget Funding 80% Dividend Distribution 70% **Budget funding increased to 80% this year from 75%** - at 75% the budget would have only increased by 0.7%. Premium amount not shown: claims servicing ($368,380), DIR Assessment ($90,000), and admin fees ($555,875). Actual paid excess 14/15 = $513,564 ($493,949 yearly premium - $2M-$5M deposit of $19,615) Estimated paid excess 15/16 = $533,229 ($513,614 yearly premium - $2M-$5M deposit of $19,615) Current Premium (For Fiscal Year 2014) Pooled Portion $ 3,187,785 (2.9%)* Purchased Excess $ 525,960 Total Premium $ 4.74 Million (4.5%) (Represents $122 million in estimated payroll) *Pool premiums would have been $3.9M or 23% higher without the Mid-Layer Pool! Equity Position (As of December 31, 2013) Total Net Assets $7,204,039 Confidence Level Budget Funding 75% (2013-2014) Equity Position (As of December 31, 2012) - Total Net Assets - $6,928,660 Equity Position (As of December 31, 2011) - Total Net Assets - $ 9,056,217

Workers’ Compensation Coverage LAWCX Commercial Excess Coverage $5,000,001 - Statutory Limits MID-LAYER POOL $2,000,001 - $5,000,000 Group Shared Self-Insurance $500,001 - $2,000,000 CHWCA $250,001 - $500,000 Dollar One – $250,000

2013-2016 Strategic Objectives Goal #1 – Increase Member Engagement, Retention, and Awareness of Pool Services and Benefits. Goal #2 – Preserve and Enhance the Equity Position of the Pool and Analyze Alternative Uses for Equity. Goal #3 – Evaluate and Refine Structure and Delivery of Risk Control Services. Goal #1 Objectives: Develop and disseminate an eBrief after each EC. Schedule a Q&A session for future CHWCA Annual Retreats. Evaluate regional trainings as a delivery method for CHWCA information and services. NorCal in March 2015. Central/Southern late June and October. Coordinate member site visits with ED and EC members. Provide the WC Roles and Responsibilities’ Webinar annually. Goal #2 Objectives: Investigate short- and long-term bond markets. Executive Committee approved April 2014. Analyze dividend and assessment policies. Revised by EC in April 2014. Evaluate options to enhance Investment options. EC analyzes as necessary. Fund RC activities/incentive program using dividend monies. RMC/EC will analyze in April/August/November 2015. Goal #3 Objectives: Evaluate allocation of training time across pool members. 2015 Risk Control Plan. Increase program engagement of pool members not using srvcs.

CHWCA 2014 Highlights - General President Jim Shields appointed Treasurer of LAWCX Revised and clarified Bylaws Began work on CHWCA “diversification” Bylaws: EC criteria (changed from premium to payroll) Board Rep/Alt Agency Position requirements Revised Dividend/Assessment calculations Increased WCPM settlement authority Changed date member must rescind Notice of Intent to Withdraw Added more stringent re-entry requirements for withdrawn members Diversification: Other special districts (CCTA) JPA additions or mergers (CAPRI, VCJPA, SDRMA, HAARP) Alternative (non-insurance) service offerings

CHWCA 2014 Highlights - Financial 2015 Budget funding increased to 80% CL Revised ex-mod calculation Released dividends and continue to maintain equity above 90% Ex-Mod: From WCIRB to internally rated

CHWCA 2014 Highlights - RC Hosted three regional trainings on the subject of workplace violence and for-cause drug testing Developed individual risk control action plans for each member Revised the Safety Awards Program Increased maximum membership of RMC Regional Trainings: Patrick Prince Safety Award Program: Awards for both agencies and direct employees RMC: From max of 9 to 5-12.

Questions?