A J OINT P OWERS A UTHORITY

1750 Creekside Oaks Drive p. 800-541-4591 Suite 200 f. 916-244-1199

Sacramento, CA www.caltiponline.org 95833

AGENDA AND MEETING NOTICE

CalTIP Spring Board of Directors Meeting 2017 Thursday, April 20, 2017

Hyatt Regency Sacramento 1209 L Street Sacramento, CA 95814 Phone: (916) 443-1234

In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability- related modification or accommodation to participate in this meeting, please contact Maria de Leon at (800) 541-4591, ext. 1187, or (916) 244-1199 (fax). Requests must be made as early as possible, and at least one (1) full business day before the start of the meeting.

Materials and documents relating to an open agenda item that are provided to the CalTIP Board of Directors after distribution of the agenda packet are available for public inspection at: 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833, during normal business hours.

THURSDAY, APRIL 20, 2017

Hosted Full Breakfast – Tahoe Room 7:30 a.m. – 9:00 a.m.

Special Meeting of the Member Services Committee – Golden State Room 8:30 a.m.

Hosted Full Lunch – Tahoe Room 12:00 p.m. – 1:00 p.m.

Meeting of the Board of Directors – Golden State Room 9:00 a.m.

Hosted Reception – Tahoe Room 5:30 p.m. – 7:30 p.m.

Page 1. CALL MEETING TO ORDER

2. ROLL CALL/INTRODUCTIONS

3. PUBLIC COMMENT**

4. APPROVAL OF AGENDA AS POSTED (OR AMENDED)

5. CONSENT CALENDAR 5 All matters listed under the Consent Calendar are considered to be routine and can be enacted by one motion. There will be no separate discussion of these items prior to the time the Board votes on the motion unless members of the Board, staff or public request specific items to be discussed or removed from the Consent Calendar for specific action. *A. Minutes of the December 1-2, 2016, CalTIP Board of Directors Meeting 6 *B. Treasurer’s Report as of October 31, 2016 23

* Denotes reference material(s) attached. CalTIP Spring Board of Directors Meeting 2017 Page 2 of 4

*C. Treasurer’s Report as of January 31, 2017 62 *D. Interim Financial Statements as of October 31, 2016 103 *E. Interim Financial Statements as of January 31, 2017 112 *F. CalTIP General Account Check Register – November 1, 2016, through April 7, 2017 121 *G. 2016/17 Risk Control Work Plan Status Update 122 *H. CalTIP Conflict of Interest Code 130 *I. Email Notice: – Confirmation of Withdrawal from CalTIP 133 *J. Email Notice: City of Santa Rosa – Rescission of Notice of Intent to Withdraw from 134 CalTIP *K. Letter of Engagement with Sampson, Sampson & Patterson, LLP, for Financial Audit 135 Services *L. 2017/18 Vehicle Physical Damage Program Declarations and Memorandum of Coverage 141 Recommendation: Approval of Consent Calendar.

6. REPORTS A. Report by Board Chair (Verbal) – Mr. Charles Anderson Recommendation: None B. General Manager’s Report and Update on the State of CalTIP – Ms. Micheon Balmer 176 Recommendation: None

7. CLOSED SESSION Pursuant to Subdivision (a) of the Government Code, Section 54956.95, the Board will convene in Closed Session to discuss the following claims:

• Mayra Sierra v Riverside Transit Agency • Torres/Avila v. Golden Empire Transit District • Joiner, et. al. v. Riverside Transit Agency • Whisler, Shari v El Dorado Transit Authority • Vargas v. District • Jackson v. Amador Transit • Charles v. Central Contra Costa Transit Authority • Wang v. El Dorado County Transit Authority • Bosch v. City of Folsom • Morgan v. Monterey Salinas Transit District • Montano v. • Taylor v. Omnitrans • Gonzalez v. Riverside Transit Agency\

8. REPORT FROM CLOSED SESSION Pursuant to Government Code Section 54957.1, the Committee must report in open session any action, or lack thereof, taken in closed session.

9. CLAIMS MATTERS *A. Presentation of Claims Audit Reports – Michael Patterson, PMG Risk 178 Recommendation: The Board receive and file the 2016 Claims Audit Reports of the City of Auburn, City of Folsom, City of Lincoln, Golden Empire Transit District, and York Risk Services Group (Reserve Audit) prepared by PMG Risk.

10. SAFETY AND RISK CONTROL MATTERS *A. Presentation of CalTIP Member Profile Survey Report 213 Recommendation: The Member Services Committee recommends the Board provide direction regarding next steps and best uses of the CalTIP Member Profile Survey information. *B. Presentation of CalTIP Loss Analysis Report 243 Recommendation: The Member Services Committee recommends the Board receive and file the 2016/17 Loss Analysis Report. * Denotes reference material(s) attached. CalTIP Spring Board of Directors Meeting 2017 Page 3 of 4

*C. Consideration of Proposed 2017/18 Risk Control Work Plan 267 Recommendation: The Member Services Committee recommends the Board approve the proposed 2017/18 Risk Control Work Plan, and direct staff to implement the plan.

11. ADMINISTRATIVE MATTERS *A. Appointment of New CalTIP Finance Manager 272 Recommendation: The Oversight Committee recommends the Board appoint Ms. Nancy Broadhurst as CalTIP Finance Manager, effective immediately. *B. Consideration of Proposed Agreement with Alliant Insurance Services for Insurance 274 Brokerage and Consulting Services Recommendation: The Oversight Committee recommends the Board approve the final proposed Agreement with Alliant Insurance Services for Insurance Brokerage and Consulting Services for a four-year term, effective July 1, 2017.

12. REINSURANCE AND EXCESS INSURANCE MATTERS *A. 2017/18 Reinsurance and Excess Insurance Renewal Proposal – Alliant Insurance 295 Services i. Approval of Vehicle Physical Damage Program Excess Insurance Coverage Recommendation: The Oversight Committee recommends the Board approve the renewal of CalTIP’s 2017/18 Vehicle Physical Damage Program at a $100,000 self-insured retention, with Alterra providing excess insurance coverage of $19.9M in excess of $100,000 and Maxum Indemnity/Lloyd’s/Hiscox providing excess insurance coverage of $10M in excess of $20M for total limits of $30M.

ii. Approval of Liability Program Reinsurance and Excess Insurance Coverage Recommendation: The Oversight Committee recommends the Board approve the renewal of CalTIP’s 2017/18 Liability Program at a $1.5M self- insured retention funded at the 90% confidence level, with Government Entities Mutual, Inc. providing reinsurance coverage of $1.5M in excess of $1.5M; and Munich Re providing reinsurance coverage of $7M in excess of $3M. Staff further recommends the Board approve Hallmark providing excess coverage of $5M in excess of $10M; and Allied World Assurance Company providing excess coverage of $10M in excess of $15M, for total available liability limits of $25M.

13. GOVERNANCE AND COVERAGE MATTERS *A. Approval of Revised Liability Program Memorandum of Coverage for 2017/18 301 Recommendation: The Oversight Committee recommends the Board approve the revised Declarations and Liability Program Memorandum of Coverage to become effective May 1, 2017. *B. Approval of Revised Liability Program Master Program Document 352 Recommendation: The Oversight Committee recommends the Board approve the revised Liability Program Master Program Document, effective May 1, 2017. *C. Approval of Governance Policy 3.03 – Operations – Claims Management Requirements 374 for Prior Program II Members Recommendation: The Oversight Committee recommends the Board approve Governance Policy 3.03 – Operations – Claims Management Requirements for Prior Program II Members, effective May 1, 2017. *D. Approval of New Litigation Management Policies and Procedures 378 Recommendation: The Oversight Committee recommends the Board approve the new Litigation Management Policies and Procedures.

* Denotes reference material(s) attached. CalTIP Spring Board of Directors Meeting 2017 Page 4 of 4

*E. Resolution Establishing Meeting Dates for the 2017/18 Program Year 438 Recommendation: 1) Adopt the Resolution Establishing Meeting Dates for the 2017/18 Program Year; 2) Direct staff on how to proceed with a Strategic Planning Meeting; and 3) Direct staff to proceed with scheduling the Management Committee meetings, as proposed. F. Election of Board Members to the Oversight Committee 441 Recommendation: The Board elect two Members of the CalTIP Board to the Oversight Committee for the remainder of the current term, effective May 1, 2017, through April 30, 2018. G. Election of CalTIP Board Treasurer 442 Recommendation: The Board elect the Treasurer to complete the current term to be vacated by Mr. Craig Fajnor, Riverside Transit Agency, effective May 1, 2017, through April 30, 2018. H. Review Nominations for Management Committees and Call For Nominations from the 443 Floor Recommendation: None I. Employment Risk Management Authority *i. Adoption of Resolution 02-2017, Authorizing Participation in the Employment Risk 445 Management Authority Recommendation: Staff recommends the Board adopt Resolution 02-2017, Authorizing Participation in the Employment Risk Management Authority, effective July 1, 2017. *ii. Approval of Employment Risk Management Authority Joint Powers Authority 449 Agreement Recommendation: Staff recommends the Board approve the Employment Risk Management Authority Joint Powers Authority (JPA) Agreement, and authorize the CalTIP Board Chair to execute the Agreement. iii. Appointment of a Representative and Alternate to the Employment Risk 492 Management Authority Board of Directors Recommendation: Staff recommends the Board authorize the Oversight Committee to appoint a representative and alternate to the Employment Risk Management Authority Board of Directors.

14. CLOSING COMMENTS This time is reserved for comments by Board members and staff and to identify matters for future Board business.

15. ADJOURNMENT

**Members of the public may address the Board of Directors (Board) on any non-agendized matter within its jurisdiction subject to appropriate decorum. All persons wishing to make public comment must notify CalTIP staff at the locations listed on the front of the Agenda. Public comment is limited to three minutes per speaker and the total time available for public comment may be limited at the discretion of the Chair of the Board. The Board will not respond during the meeting to matters raised under public comment. Pursuant to provisions of the Brown Act, no discussion or action may be taken on these matters unless they are listed on the agenda, or unless certain emergency or special circumstances exist. Persons wishing to speak on matters listed on the agenda will be allowed to speak for not more than three minutes immediately prior to the Board discussion on an item. The Board may direct staff to investigate and respond and/or schedule certain matters raised under public comment for consideration at a future Board meeting.

* Denotes reference material(s) attached. A J OINT P OWERS A UTHORITY

1750 Creekside Oaks Drive p. 800-541-4591 Suite 200 f. 916-244-1199

Sacramento, CA www.caltiponline.org 95833

AGENDA AND MEETING NOTICE

CalTIP Spring Board of Directors Meeting 2017 Friday, April 21, 2017

Hyatt Regency Sacramento 1209 L Street Sacramento, CA 95814 Phone: (916) 443-1234

In compliance with the Americans with Disabilities Act, if you are a disabled person and you need a disability- related modification or accommodation to participate in this meeting, please contact Maria de Leon at (800) 541-4591, ext. 1187, or (916) 244-1199 (fax). Requests must be made as early as possible, and at least one (1) full business day before the start of the meeting.

Materials and documents relating to an open agenda item that are provided to the CalTIP Board of Directors after distribution of the agenda packet are available for public inspection at: 1750 Creekside Oaks Drive, Suite 200, Sacramento, CA 95833, during normal business hours.

FRIDAY, APRIL 21, 2017

Hosted Full Breakfast – Tahoe Room 7:30 a.m. – 9:00 a.m.

Meeting of the Oversight Committee – Golden State Room 8:30 a.m.

Meeting of the Board of Directors – Golden State Room 9:00 a.m.

Page 1. CALL MEETING TO ORDER

2. ROLL CALL/INTRODUCTIONS

3. PUBLIC COMMENT**

4. GOVERNANCE MATTERS A. Report on Results of Election of Board Members to the Oversight Committee, Finance & 3 Administration Committee, and the Member Services Committee Recommendation: Information only.

5. ACTUARIAL MATTERS *A. Liability Program Actuarial Study as of November 30, 2016 4 Recommendation: The Finance & Administration Committee recommends the Board accept the Liability Program Actuarial Report as of November 30, 2016, dated April 10, 2017. *B. Vehicle Physical Damage Program Actuarial Study as of November 30, 2016 33 Recommendation: The Finance & Administration Committee recommends the Board accept the Vehicle Physical Damage Program Actuarial Report as of November 30, 2016, dated April 10, 2017.

* Denotes reference material(s) attached. CalTIP Spring Board of Directors Meeting 2017 Page 2 of 2

*C. Liability Program Experience Modification Factors Report for 2017/18 58 Recommendation: The Finance & Administration Committee recommends the Board accept the Liability Program Experience Modification Factors Report for 2017/18, dated April 10, 2017.

6. FINANCIAL MATTERS *A. Liability Program Retrospective Adjustment Calculation as of April 30, 2016 69 Recommendation: The Finance & Administration Committee recommends the Board approve the Liability Program Retrospective Adjustment Calculation as of April 30, 2016. A distribution of equity is not recommended at this time. B. 2017/18 Vehicle Physical Damage Program Dividend Distribution 75 Recommendation: The Finance & Administration Committee does not recommend a dividend release to participating members in the Vehicle Physical Damage Program at this time. *C. Approval of Proposed Equity Building Plan 76 Recommendation: The Finance & Administration Committee recommends the Board approve and implement Option 2 in 2017/18, as detailed in the attached Summary. *D. 2017/18 Revenue and Expense Budgets 79 Recommendation: The Finance & Administration Committee recommends the Board approve the 2017/18 Revenue and Expense Budgets with the Liability Program at the 90% confidence level, and pooled retention to $1.5 million, with the reinsurance and excess rates subject to finalization. *E. 2017/18 Liability Program Contribution Calculation 87 Recommendation: The Finance & Administration Committee recommends the Board approve the 2017/18 Liability Program Member Contributions at the 90% confidence level and discounted at 1.0%, at the $1.5 million pooled retention, with the reinsurance and excess rates subject to finalization. *F. 2017/18 Vehicle Physical Damage Program Contribution Calculation 95 Recommendation: The Finance & Administration Committee recommends the Board approve the 2017/18 Vehicle Physical Damage Program Member Contributions, at the expected confidence level, with the excess insurance rate subject to finalization.

7. CLOSING COMMENTS This time is reserved for comments by Board members and staff and to identify matters for future Board business.

8. ADJOURNMENT

**Members of the public may address the Board of Directors (Board) on any non-agendized matter within its jurisdiction subject to appropriate decorum. All persons wishing to make public comment must notify CalTIP staff at the locations listed on the front of the Agenda. Public comment is limited to three minutes per speaker and the total time available for public comment may be limited at the discretion of the Chair of the Board. The Board will not respond during the meeting to matters raised under public comment. Pursuant to provisions of the Brown Act, no discussion or action may be taken on these matters unless they are listed on the agenda, or unless certain emergency or special circumstances exist. Persons wishing to speak on matters listed on the agenda will be allowed to speak for not more than three minutes immediately prior to the Board discussion on an item. The Board may direct staff to investigate and respond and/or schedule certain matters raised under public comment for consideration at a future Board meeting.

* Denotes reference material(s) attached.