1. CFAS Collier Fire Administrative Services

2. What we are not proposing Independent Fire District merger/consolidation Fire/EMS consolidation Closing Fire Stations Reducing the number of first responders Reducing compensation (salary, benefits, pension) Increasing mill tax rates

3. What we are proposing By (date t/b/d) provide a cooperative administrative services function for as many Independent Districts who choose to participate Participation strictly voluntary Study participation must have formal approval of respective governing boards CFAS owned by participating Districts CFAS governed by its own Board of Directors appointed by the member Districts

4. What will be investigated? What administrative functions are done now in house or outsourced ? What does each function now cost? Where is “Best of Breed” provider for each function? What will it cost to do, if all - or even some - functions done by CFAS?

5. What else might be considered? Group purchasing of insurance Cooperative purchasing of consumables Common training Equipment and/or facilities sharing Grant writing Logistics

6. What might be the benefits realized? Administrative cost reduction Volume purchasing discounts and other economies Budget reallocation, use savings where needed More professionalism, including improved financial tools Public relations

7. What is the next step? Q & A Formal vote to participate

8. Disclaimer No CFAS Committee member has any personal nor any financial interest with any of the organizations currently doing business with any of the 5 Independent Fire Districts No CFAS Committee member has any personal nor any financial interest with any of the organizations where we obtained information No CFAS Committee member is related to anyone in the employ of any of the 5 Fire Districts The following recommendations are strictly based on our study and our business & professional experience

9. What did we find? Software - Windows based Multiple Application Software packages for same functions Few Admin staff/Fire District - multiple responsibilities Multi vendors similar services - sub-optimizing buying power $15,516,000 Outside Services $10,876,000 potential for cooperative purchasing $5,500,000 Health Insurance $2,182,000 Professional Services $1,303,000 Other Insurance $1,039,000 Operational/Administrative/Building Supplies $474,000 Fuel $376,000 Vehicle Maintenance

10. Who we contacted, What we learned Two current Fire District Insurance Reps – Learned reasons joint insurance purchasing could not be done, why little cost could be saved, & why it would take 6 months to get a joint purchase premium estimate Fl. Office of Insurance Regulation - Provided specific Statute supporting joint insurance purchase FIRST Responder Joint Insurance Fund - Provides joint property & liability insurance purchase for Independent Fire Districts (NJ) The Benecon Group - Provides joint health insurance purchase for Municipalities (Pa & Md) Gravity Benefits - local Benefits Consultant - July 2, they requested the District’s health insurance census and other health insurance data Milliman - National actuarial services - July 14 provided savings estimate accurate to +/-1% (16% Fixed savings, 12% Opportunity savings, 17% Ancillary Benefit savings)

11. Recommendations Establish Collier Fire Administrative Services Association - not for profit - Fl. Statute Chapter 627.654 Retain legal counsel - prepare broad based bylaws to provide Administrative and other Services for the common good & providing for potential expansion Select CFAS Association - Board of Trustees Establish Virtual vs. Physical office, assign tasks Coordinate & rebid all outside services Professional Services, Operational/Admin/Building Supplies, Fuel, Vehicle Maintenance Coordinate & rebid Health & Property Insurance Consider using same “Best of Breed” software, for same applications, consider web-based applications

12. Cost/Benefit Analysis What is the benefit? * Potential savings of Cooperative Purchasing $1,350,000 to $1,600,000/year *No additional administrative personnel *Limited or no reduction of administrative personnel *Fewer suppliers for same products or services *Potential for new suppliers with better offerings *Benefit Plan flexibility What is the cost? *Legal fee to setup CFAS Association Cooperation, Coordination, without Consolidation

13. Possible Insurance Improvement Strategy Coordinate Medical Insurance purchase (UHC & BCBS) - immediate reduction total costs - benefit enhancements - control costs & receive dividends for healthy years Coordinate Ancillary Program purchase - currently 8 different carriers amongst 5 districts - immediate & long term cost reduction Strategy/Plan Design - evaluate HSA strategy - reduce diversified administration - reduce administration costs Similar strategy for non health related insurance

14. Next Steps Consider adding near by Districts, thus increasing contract volumes, possibly further decreasing prices Prioritize implementation Year 1 - non-insurance products and services Year 2 - health and property insurance Year 3 - administrative applications (possibly earlier) Open entire bid process to both existing & new suppliers, as current contracts expire Pricing reacts to competition

15. Sources and References Michelle Robleto - Deputy Commissioner, Life & Health, Fl Office of Insurance Regulation Michelle.Robleto@floir.comMichelle.Robleto@floir.com Toma Wilkerson - Director, Life & Health Financial Oversight, Fl Office of Insurance Regulation Toma.Wilkerson@floir.comToma.Wilkerson@floir.com Gerry Smith - Life & Health Product Review, Fl Office of Insurance Regulation Gerry.Smith@floir.comGerry.Smith@floir.com Michael Nachef - Legislative Assistant to Senator Garrett Richter Nachef.Michael.S37@FLSenate.gov Nachef.Michael.S37@FLSenate.gov Barbara Murphy - FIRST Responder Joint Insurance Fund (NJ) FirstJIF.org Bmurphy@RLMinc.orgBmurphy@RLMinc.org Steve Gingrich - Vice President, The Benecon Group - Benefit Administrators & Consultants (Pa & Md) SGingrich@Benecon.comSGingrich@Benecon.com Milliman National Actuary - Milliman.com Matthew Moraski - Gravity Benefits, Bonita Springs MMoraski@GravityBenefits.com 239-495-2082 MMoraski@GravityBenefits.com

16. Other Meetings Ray Witkowski – Glatfelter Insurance Group rwitkowski@vfis.comrwitkowski@vfis.com Pat Case – Case Benefit Consultants pcase@casebenefits.compcase@casebenefits.com

17. Questions Marvin Easton - IBM International consultant - retired Carson Beadle - Mercer Health/Benefits Consulting- retired Ken Ginsberg - Government attorney - retired Joe Moreland - National Fire Academy President - retired John Svirsky - Developer & Fire Commissioner With minimal cost and minimal effort, and no additional nor reduction in personnel, by Cooperation, Coordination, without Consolidation, the 5 Independent Fire Districts, by joint purchasing, could save $ 1,350,000 - $ 1,600,000 annually

18. Current Status ENFD, GGFD, IIFD, NNFD established CFAS Sept. 25, 2012 as a Florida Not for Profit Corporation Board of Directors – George Danz succeeded by Steve Hemping ENFD, Dave Stedman GGFD, Dick Rice IIFD, John McGowan NNFD By-Laws approved Jan. 15, 2013 Initial Lead Agencies; ENFD (Fuel), GGFD (HVAC- Facilities Maintenance), NNFD (Lawn Maintenance) Common Procurement Procedure Subcommittee – Tara Bishop ENFD, Nolan Sapp GGFD, Becky Bronsdon NNFD,

19. Additional Activities CFAS Website under development – Dave Stedman