FIRE AGENCIES INSURANCE RISK AUTHORITY

30th Anniversary Report

Fire Agencies Insurance Risk Authority Susan Blankenburg, General Manager 1255 Battery Street, Suite 450 San Francisco, CA 94111 Office 415.536.4005 Fax 415.536.8499

June 11, 2018

Message from FAIRA’s General Manager Susan Blankenburg

FAIRA is celebrating its 30th Anniversary this year and we would like to take this opportunity to thank each of our member Districts, our Board of Directors’ and valued business partners who have helped to make us the successful multi-state pool that we are today.

Having the privilege to serve as FAIRA’s General Manager since 2014, and seeing what has been accomplished in this short time, has been exciting! We have streamlined our operations by building out the FAIRA website. Members have 24/7 access to request certificates of insurance, add and delete vehicles, report accidents or post emails to the membership – all with just the click of the button. Another favorite is the online capability to access your current schedules of Vehicles, Buildings, Certificates of Insurance issued, and copies of your insurance applications and invoices.

Under the purview of our Loss Control Consultants we have made significant strides with our Risk Management and Loss Control efforts over the past couple of years. These highlights include:

 24 loss control field reports – that assess: o Utilization of FAIRA Risk Management Manual o Hiring/Firing Personnel Policy and Procedures o Driver Training o Vehicle Maintenance o Contractual Risk Transfer o Reporting of Claims in compliance with Tort Claims Act  5 webinars o Crisis Stop o Behavioral Risk Assessment – BeRTHA o Suicide in the Fire Service o Bullying, Hazing and Harassment o You’ve Received a Complaint for Harassment – What’s Next?  8 Drive to Survive Courses  Insurance Requirements Manual updated  Annual Training on Risk Transfer in Contracts held  2 hours free consulting for Employment Practices related actions

In closing, it’s my pleasure to serve as FAIRA’s General Manager for another year. I would like to thank and acknowledge my Board of Directors’ for all of their hard work and dedication. Lastly, I would like to thank all of our 100+ member Districts once again for the opportunity to serve you.

Best regards,

Table of Contents

About FAIRA

In 1987, one of the largest insurers of fire districts advised that they would not be renewing coverage. Fire Chief Rich Blacker took it upon himself to survey other fire districts and received an overwhelming consensus in response: an insurance alternative was desperately needed. The result is FAIRA, an insurance program conceived by Fire Chiefs and Directors of eleven Charter Fire Protection Districts who worked together for over a year. Together, they drafted the original Joint Powers Authority Agreement and Bylaws, and fulfilled all of the legal and registration requirements with California’s Secretary of State. Each dedicated many hours of work and attended multiple meetings throughout California to create a comprehensive solution that provides continuous coverage with

reduced premiums.

FAIRA's first year resulted in a 30% premium reduction, and that was just the beginning! Since then, FAIRA has saved millions of dollars in insurance premiums. In fact, Charter Districts who have been members since inception have received cumulative savings of 50% or more, even during periods of considerable growth!

We continue to evaluate the evolving challenges faced by fire districts in California and Nevada, so that we can address changing needs year after year. The past three decades has seen ups and downs in the insurance industry, while FAIRA has proven to be a stable and practical solution with financial returns for the benefit of its member districts.

We look forward to serving you in the years to come!

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PARTNERS STAFF

FAIRA’s Partners protect the organization’s FAIRA’s General Manager, Susan Blankenburg, is a insurance, legal and financial interests. This seasoned veteran within the Public Entity field. Ms. multi-disciplinary team ensures that FAIRA Blankenburg remains current on evolving trends that remains financially sound as a comprehensive impact FAIRA, assesses critical needs, and provides insurance alternative that is cost-effective, yet updates and proposed solutions to the Board. In responsive to the changing needs of the fire addition, she collaborates with FAIRA’s Partners to districts it serves. address the goals set forth by FAIRA’s Board.

Arthur J. Gallagher General Manager Risk Management Services  Susan Blankenburg, General Manager  Britni Parsons, Client Service Manager  Zack Phillips, Financial Analyst FAIRA Staff  Ron Green, Certificate Unit  Maria Villafuerte, Administrative Analyst  Nichole Henry, Claims Advocate  Eric Kikalo, Client Service Manager

General Counsel Risk Control Consultant  Dale Bacigalupi, Esq., Lozano Smith, LLP  Marco Guardi, ARM CRIS MPA

Special Counsel, EPLI Matters  Peter Flanderka, Esq.  Kevin Osterbeg, Esq.

Certified Public Accountant  John Paget, CPA

Investment Planning  Don Jesberg, KCM Investment Advisors, LLC

Auditor  James Mastro, Cuttone & Mastro CPA’s

Actuary  Jack Joyce, Bay Actuarial Consultants

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Who We Serve

Alpine Fire Protection District Mason Protection District Alta Fire Protection District Mi-Wuk Sugar Pine Fire Protection District American Protection District Montecito Fire Protection District Anderson Fire Protection District Montezuma Fire Protection District Arbuckle-College City Fire Protection District Moraga-Orinda Fire Protection District Arcata Fire Protection District Protection District Aromas Tri- Protection District Murphys Fire Protection District Bald Protection District Murrieta Fire Protection District Ben Lomond Fire Protection District North Central Fire Protection District Bennet Valley Fire Protection District North Lyon County Fire Protection District Blue Protection District North Sonoma Coast Fire Protection District Bodega Bay Fire Protection District Northstar Community Services District Fire Dept.

Bonita-Sunnyside Fire Protection District Oakdale Rural Fire Protection District Borrego Protection District Occidental Community Service District Fire Dept. Branciforte Fire Protection District Orange County Fire Authority Cachugua Fire Protection District Orange Cove Fire Protection District Carlotta Community Service District Pajaro Valley Fire Protection District Carmel Highlands Fire Protection District Penn Valley Fire Protection District Carpinteria-Summerland Fire Protection District Placer Hills Fire Protection District Central County Fire Department Ramona Municipal Water District Central Fire Protection District of Santa Cruz County Rincon Valley Fire Protection District Central Lyon County Fire Protection District Roseland Fire Protection District Chalfant Valley Community Service District Ross Valley Fire Protection District Clements Rural Fire Protection District Sacramento Protection District Cloverdale Fire Protection District Salida Fire Protection District Cordelia Fire Protection District Samoa Peninsula Fire Protection District Cypress Fire Protection District San Miguel Consolidated Fire Protection District Eagleville Fire Protection District San Ramon Valley Fire Protection District Ebbetts Pass Fire Protection District Shasta Community Service District Esparto Fire Protection District Shasta Lake Fire Protection District Fig Garden Fire Protection District Smith Valley Fire Protection District Five Cities Fire Authority Sonoma Valley Fire & Rescue Authority Forestville Fire Protection District South Coast Fire Protection District Fort Bidwell Fire Protection District South Monterey County Fire Protection District Fort Dick Fire Protection District South Placer Fire Protection District Fresno County Fire Protection District South Santa Clara County Fire Protection District Garberville Fire Protection District Southern Inyo Fire Protection District Geyserville Fire Protection District Suisun Fire Protection District Glen Ellen Fire Protection District Susan River Fire Protection District Gold Ridge Fire Protection District Telegraph Ridge Fire Protection District Gonzalez Rural Fire Protection District Tiburon Fire Protection District Happy Valley Fire Protection District Timber Cove Fire Protection District Humboldt Bay Fire Protection District Vacaville Fire Protection District Kentfield Fire Protection District Valley Center Fire Protection District Kenwood Fire Protection District Waterloo-Morada Fire Protection District Kneeland Fire Protection District West Stanislaus Fire Protection District Lake Forest Fire Protection District Westport Fire Protection District Lake Valley Fire Protection District Wheeler Crest Fire Protection District Lakeside Fire Protection District White Mountain Fire Protection District

Lee Vining Fire Protection District Windsor Fire Protection District Lone Pine Fire Protection District Windsor Avenue Fire Protection District Los Altos Hills County Fire District Zayante Fire Protection District

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Members

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The Board

President Director Director Chief Bill Paskle Chief Tim Isbell Chief Sean Bailey Alpine FPD Bonita-Sunnyside FPD Northstar CSD Alpine, CA San Diego, CA Truckee, NV

Vice President Director Director Jonathan Wilby Chief Mark Pomi Chief Scott Draper Orange County FA Kentfield FPD Mason Valley FPD Irvine, CA Kentfield, CA Yerington, NV

Treasurer Director Director Chief Howard Wood Chief Criss Brainard Peter Liebig Vacaville FPD San Miguel Consolidated FPD Lakeside FPD Vacaville, CA Spring Valley, CA Lakeside, CA

Secretary Director Chief Mark Johnson Chief Eric Walder Fresno FPD South Placer FPD Sanger, CA Granite Bay, CA

Director Director Chief Brennan Blue Chief Richard Pearce Aromas Tri-County FPD Tiburon FPD Monterey, CA Tiburon, CA

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Facts & Figures

Where We Are Today

FAIRA began 30 years ago out of necessity, a FAIRA At-a-Glance program designed from scratch to meet the needs of its Fire Districts. Today, FAIRA is a mature, Total Members 103 experienced and financially-secure pool of public agencies. With 102 Fire members in California Total Firefighters 3,032 and Nevada, we are the largest and only multi- Total Operating Budget $818,471,588 state Fire District pool in the United States, and Total Property Value $818,067,206 we continue to grow. Total Vehicle Units 2,291 Total Calls 321,402 Superior Protection at Unprecedented Rates

We negotiated FAIRA’s coverages to address the myriad of liabilities that Fire Protection Districts Stellar Performance encounter. FAIRA’s complex insurance program includes General Liability, Auto Liability, Public For the past 10 years, FAIRA’s rates have Officials’ Errors & Omissions Liability, remained stable, saving nearly $100 Million Employment Practices Liability, Paramedic/EMT while providing superior coverage and Medical Malpractice, Professional Liability, services! Property, Equipment Breakdown, Emergency Services Equipment, Auto Physical Damage, FAIRA’s investments have exceeded the Crime, Cyber, Drones, Garage Liability, Garage benchmarks of other pools! Just how is all of this Keeper Liability/Legal Liability, and Third Party possible? Liability coverage for use of facilities. Experience Counts! Given the risks that you face every single day, knowing that your District is protected is critical. FAIRA’s General Manager has extensive Public Entity & Fire District experience, combined with Another key concern is FAIRA’s performance, proven expertise in insurance and other forms of since 100% of funds go right back to FAIRA’s risk transfer. As a result, FAIRA’s insurance rates Members. lead the marketplace when it comes to coverage terms and pricing. So… how did FAIRA do? However, there’s still much more to FAIRA. In addition to comprehensive coverage at unprecedented rates, FAIRA also provides professional services to its Members such as risk management, loss control and compliance training.

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Overview

GENERAL LIABILITY COVERAGE

Who Is Insured: FAIRA, Firefighters, Paramedics, Volunteers, Other Employees, Past and Present Members of the Governing Board, Officers, and Medical Directors (Administrative Duties) while acting within the scope of his or her duties, Others under your control who provide a service benefiting the District, including auxiliaries and other volunteer organizations subject to reporting.

Coverage includes: third-party Bodily Injuries and Property Damage arising from a negligent act, omission of the District. Professional Liability known as Medical Malpractice is included for Paramedics. Unmanned Aircraft, Watercraft, Pollution Liability for sudden and accidental, Garage Keepers Liability Legal, Liquor Liability and coverage for Special Events.

PROPERTY COVERAGE

Insured Property: Buildings or structures, personal property, portable equipment, fire dogs and fine arts (to name a few) belonging to the District, employees and other property that in the District’s care, custody and control when in conjunction with official District business purposes.

Coverage is provided on a full Replacement Cost (no coinsurance) for all buildings when damage is repaired. Coverage includes: Loss of Income, Extra Expense and sublimits for Earthquake Sprinkler Leakage and Flood.

MANAGEMENT LIABILITY COVERAGE

Coverage is provided for Employment-related Practices, Administration of Employee Benefits Plans, and other Wrongful Acts not excluded. Public Officials Errors’ and Omissions commonly known as Directors’ and Officers’ that extends to outside Directorships. Cyber Liability includes Privacy and Network Security coverage protect against third party actions, including Breach Response Costs.

AUTOMOBILE COVERAGE

Insured Vehicles: Fire Engines, Pumpers, Ambulances, Paramedic Vans, Rescue Vans, Private Passenger and Commercial Automobiles, Service Units, Sports Utility Vehicle and Mobile Equipment.

Coverage is provided for third-party Bodily Injury or Property Damage caused by an Accident. Automobile Physical Damage is provided an Agreed Value basis for all units except Private Passenger units, owned, leased, borrowed and temporary substitutes.

CRIME

Employee Dishonesty coverage is provided for the dishonest acts committed by an Employee with intent to cause the Insured a loss or for the dishonest party to obtain financial benefit, such as loss and/or damage to money, securities and property other than money and securities resulting from “employee dishonesty”. Coverage includes Forgery or Alteration, Faithful Performance of Duty, and Computer Fraud. No exclusion applies to persons required by law to be individually bonded, a treasurer, or tax collector, by whatever name known.

This document may contain a general outline of certain terms and conditions of insurance coverage proposed by insurance carriers. It is not intended to interpret the terms of the policy or to be legal advice, but rather summarizes our understanding of the coverage provided.

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Risk Management

How FAIRA Helps You Manage Risk Specialized Claims Handling

FAIRA Staff evaluate the risks of FAIRA works with claims adjusters who each District and provides cost- specialize in Fire District Claims. They effective tools that target specific understand the importance of working business needs. For example, we with members to protect valuable provide professional services such as immunities that exist and assist with reviewing and negotiating service providing guidance to send proper contracts. notification triggering the Tort Clam’s Act. To mitigate claims from employment practices, FAIRA’s Members are They understand the human element entitled to an initial legal consultation when managing claims and consistently when a potential employment claim received high scores for their customer arises. We even provide free training service. We have found that they are fair programs like “Drive to Survive,” to in promptly paying what is due, and help Districts decrease auto-related strongly denying claims when we are not claims. liable.

We hold monthly conference calls to discuss open claims, claims trends, and various approaches to help resolve difficult claims fairly and swiftly.

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Services

LOSS CONTROL Fire Department Solutions Tailor-Made for Your Day-to-Day Challenges

Loss Control Expertise

 Monitors Trends to Identify a District’s Most Urgent Needs  Solutions Implemented to Date: - Human Resources Policy Audits - Web-Based and Software Skills Courses - Webinars Focused on Behavioral Dynamics - Free Legal Consultations for Employment Practices

Drive to Survive

 For Districts with a High Frequency & Severity of Auto Claims  Overwhelmingly Positive Feedback from Attendees: ”Excellent driver training. I would like to see this class for each member of my department.” “One of the best classes I have ever attended in my 14 years of service.” “Kept a ‘dry’ subject fun”.

CRISIS COACH Webinar Series

 CrisisSTOP  Behavioral Risk Assessment  Suicide in Fire Service  Bullying, Hazing and Harassment

Targeted E-Learning Courses for Public Entities

 Sexual Harassment  Supervisor Skills 101 and 102  Peer to Supervisor Transitions  Workplace Bullying & Harassment

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Services

COMPLIANCE Making It Easy to Keep Up with Changing Regulations

Compliance Training

 Web-Based Courses  Designed for Firefighters & EMS Providers  Compliant with OSHA, NIOSH & CDC

GetSET Safety Essentials Training Gallagher’s Live Webcasts for Supervisors  Safety  Incident Investigation  Job Hazards & OSHA  Slips Trips and Falls Prevention, and other Topics

BUSINESS RESOURCES A Wealth of Expertise at Your Service

24/7 Access to Policy Services www.faira.org File claims, request insurance certificates, or add vehicles … at your convenience!

Insurance and Compliance Needs  Contract Review  Indemnification and Insurance Requirements - Release of Liability Forms for Donations - Waivers for Ride-Alongs

Policies & Procedures  Risk Management Manuals - Claims Handling - Fleet Safety Manual - Workplace Drug Policy  Standard Operating Procedures  Workplace Misconduct

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Services

LEGAL CONSULTATION Helping You Steer Clear of Potential Liabilities

 General Counsel for FAIRA Board Matters  Two Hours’ initial Consultation for Employment Liability Incidents  Presentations: - Elements of Risk Transfer by Denise Simpson, Esq. - Best Employment Practices to Avoid EPLI Claims by Morin Jacob, Esq.

FINANCIAL CONSULTING Protecting Your Financial Interests

 Professional Budget Planning  Audits and Actuarial Analysis  Investment Advisors  Professional Property Appraisals

FAIRA ADMINISTRATION Strategic Planning with Measurable Results

 Negotiation of Insurance Rates & Coverages  Customized Claims Handling Team  Assist with the Management and Oversight of FAIRA Partners  Monitor Issues and Trends Impacting FAIRA  Provide Guidance on Public Relations Efforts  Prepare and Update Official Board Documents - JPA’s, Bylaws and Resolutions - FAIRA Membership Roster  Accounting - Oversight of Banking and Investment Partners - Rate Stabilization Fund

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FIRE AGENCIES INSURANCE RISK AUTHORITY

SUSAN BLANKENBURG, GENERAL MANAGER 1255 BATTERY ST., SUITE 450 SAN FRANCISCO, CA 94111