PURMIT Board of Trustees Meeting
May 16, 2019
Minutes
Trustees Present: Ryan Hagemann (WOU) Brian Roy (PSU), Christina McKnight (OSU), Vivian Chen (OIT), Lara Moore (EOU)
Others Present: Sheryl Sattler, Ryan Britz (Berkley), Sid Friedman, Ron Cutter, Joel Troisi (BBNW), James Parker (DWT)
Call to Order
Chair Lara Moore called the meeting to order at 9:05 a.m.
Roll Call
Roll call was taken.
Review and Approval of Minutes
Meeting minutes from the February 5, 2019 PURMIT Board of Trustees meetings were reviewed and discussed.
Action:
A motion was made by Mr. Hagemann to approve the minutes. The motion was seconded by Ms. Moore. The motion carried with no objections.
PURMIT Financial Review as of March 31, 2019
Ms. Sattler from Berkley Risk presented the financial information as of March 31, 2019. Ms. Sattler noted PURMIT had $3.8M of operating revenue and an operating income of $905K, resulting in a current surplus of $9.98M. Ms. Sattler continued her discussion with the balance sheet portion of the financial statement, noting the Trust has $20M in assets and $10.2M in liabilities. Ms. Sattler also noted that since the designated funds had been transferred to the Oregon State Treasury, PURMIT has earned approximately $181K of investment income. Ms. Sattler commented that all Trust lines of business continue to operate at a profit. PURMIT’s expenses remained on budget. PURMIT continues to add surplus to the operation and has positioned itself well by utilizing the Oregon State Treasury as an investment vehicle within the overall PURMIT investment portfolio. Berkley continues its quarterly review of the surplus position and will advise the Trustees as to the amounts that are eligible for transfer to the Oregon State Treasury. Finally, Ms. Sattler mentioned that PURMIT’s financial position is above the Oregon statute’s regulatory requirement.
Action:
No action taken at this time.
Financial Proforma Update and Discussion
Ms. Sattler continued the financial discussion by reviewing the Proforma document and its trajectory out to 2022. Ms. Sattler noted that the Proforma document does not include any potential SAIF dividend for the group for the 2019 year and beyond. Ms. Sattler also noted that the Proforma is in line with prior assumptions and factors that were utilized to generate the exhibit
Action:
K Financial and PwC LLP 2019 Engagement Contracts
Mr. Britz presented the contract renewal terms for PURMIT’s auditor, K Financial and its actuary, PricewaterhouseCoopers. The terms and conditions remained the same as expiring.
Action:
A motion was made by Mr. Hagemann to approve the contracts for K Financial and PricewaterhouseCoopers. The motion was seconded by Mr. Roy. The motion carried with no objections.
Legal Counsel Items
Mr. Parker discussed several items with the group:
- Property Memorandum of Coverage – He advised that Davis Wright Tremaine has attorneys that have experience drafting insurance coverage and have the resources to work on the project, should Trustees choose to move forward.
- ProCor – He is working with ProCor and BBNW to complete the conflict waiver, resulting from ProCor being a subsidiary of BBNW.
- RMIS Contract – Origami has not been able to meet PURMIT’s required terms, despite several attempts. Because of this inability, Mr. Parker requested the Trustees provide direction if he should continue his efforts or stop. After discussion the Trustees did not express an interest in waiving the required terms of the RFP. Parker noted that he would let Origami know and stop negotiations.
- UM/UIM – Formal adoption and selection of lower UM/UIM limits is the appropriate risk management step for the Trust to take. At the same time, it is recommended that PURMIT also confirm its intent for offering PIP limits. Parker presented a combined form for each institution, showing the UI/UIM and PIP limits decided offered by the Trust. The Trustees discussed the proposed solution.
Action:
A motion was made by Mr. Roy to adopt the UM/UIM and PIP policy and form as presented by Mr. Parker. The motion was seconded by Mr. Hagemann. The motion carried with no objections.
The Trustees called a break at 9:47 a.m.
The meeting was called back into session at 9:55 a.m.
Executive Session
The Board adjourned the regular meeting and went into Executive Session at 10:02 a.m. to address documents and information relating to attorney-client privileged communications and trade secret documents. The executive session was held pursuant to ORS 192.660(2)(f) and ORS 192.660(2)(h).
The Board exited Executive Session at 1:03 p.m.
Final Decisions Related to Executive Session Discussions (if any)
The Board made no decisions related to executive session.
Adjourn
The Board adjourned the meeting at 1:04 p.m.
