View our Annual Report.
Message from the President/CEO
D uring the last few years, we’ve experienced a number of challenging economic conditions, including the COVID-19 pandemic, supply chain issues and inflation. We’ve also faced multiple severe weather events, such as
in assessing risks, crafted tailored solutions and maintained strong relationships with members.
• Two finance department staff members attained their Certified Public Accountants (CPA) licenses, and four staff members completed their associate- level insurance designations (ARM and AINS) for the Insurance Institutes. This demonstrates their unwavering commitment to upholding the highest standards of financial integrity and accountability. • Our Director of Loss Control, Chester Darden, was elected to the National PRIMA board. His selection is a recognition of his exceptional skills, experience and leadership in the field of risk management. In addition, I am honored to have been appointed to the NLC Mutual Board. This opportunity allows me to contribute to the broader insurance industry, represents the trust placed in PEP and its leadership, and reflects the collective expertise and reputation we have built over the years. All of us at PE Partners are strongly committed to providing our members with the most effective risk management products and services to help you serve your employees and citizens. We take your trust in us seriously, and thank you for your partnership as we work together to protect your properties, reduce liability losses and keep your employees free from injury. As we move forward, I am confident that our exceptional team will continue to drive our organization to even greater heights. Together, we will overcome challenges,
City of Maryville
Year-in-Review by the Numbers
flooding, wildfires and storms. These have all contributed to increases in construction costs, vehicle shortages and increased labor expenses. In addition, the frequency and severity of law enforcement liability and employment-related claims have led to base rate increases. Each of these factors impacts our members, along with the cost of claims. 2023 was the toughest year for property claims since the catastrophic flooding of 2010, and the market continues to feel the pressure. At Public Entity Partners, our philosophy has always focused on stability and consistency. We want to do as much as we can to insulate our members from market swings. We are also committed to making conservative financial decisions so that PE Partners can weather these fluctuations and continue to serve our members for the decades ahead. Our commitment to our members goes beyond providing insurance coverage. We actively partner with our members to mitigate risk and foster a culture of safety. Equipping our members with training, education, best practices, and risk liability knowledge and tools strengthens their organizations, and fosters a collective commitment to safety, well-being and long-term success. Here are some recent achievements of our outstanding team that exemplify the dedication, proficiency and professionalism that define PEP: • Our underwriting department’s diligent efforts and unwavering commitment to excellence resulted in an exceptional performance during the July renewals as they continued to provide expertise
Our underwriting department insured: 43,450 member employees 42,287 vehicles 20,800 buildings
Our member services department conducted: 233 member assistance and training sessions Through casualty and property surveys, member follow-ups, training, grants and scholarships, our loss control department experienced: 16,974 contacts with members and awarded or invested $767,265 in board-approved value-added products and services
embrace opportunities, and ensure a bright and prosperous future for PEP. As we approach our 45th anniversary, we’re excited to see what the future holds.
PEP Value
Work to ensure the diverse needs, concerns, and ideas of members and employees are welcomed and considered as decisions are made. Equally important, create an environment in which all members and employees are empowered, feel secure when sharing input, and are encouraged to fully contribute to the organization. Inclusiveness
Sincerely,
Michael G. Fann President/CEO
2 Annual Report 2023
M embers of PE Partners’ Board of Directors contribute their time to serve local governments across the state of Tennessee. The Board provides insight into the governance of our operations and steers the direction of our organization. Some of the primary services provided by the Board of Directors at their quarterly meetings include reviewing our financial reports, approving an annual budget, and authorizing rates, dividends and coverage changes.
Public Entity Partners Board of Directors
Curtis Hayes Chair Mayor, Livingston Term 2 (Expires 2025)
Randy Brundige Vice Chair Mayor, Martin Term 2 (Expires 2025)
DaVena Hardison Director Council Member, Columbia Term 1 (Expires 2024)
John Holden Director Mayor, Dyersburg Term 1 (Expires 2024)
Victor Lay Director Town Manager, Nolensville Term 2 (Expires 2026)
Lois Preece Director Mayor, Niota Term 1 (Expires 2025)
Todd Smith Director City Administrator, Greeneville Term 1 (Expires 2025)
Samuel (Sam) Tharpe Director Commissioner, Paris Term 2 (Expires 2026)
Bobby King Director Mayor, Henderson TML President 2022 (Term expired 2023)
Ron Williams Director Mayor, Farragut TML President 2023
Mission We partner with Tennessee governmental entities in providing effective risk management products and services with a commitment to member best interests.
Vision Making a difference in the lives of Tennessee public entity employees and the citizens they serve.
Annual Report 2023 3
Annual Report 2023
Table of Contents
Town of Jasper
Message from the President/CEO
2
Board of Directors
3
Our Coverages
5
Town of Spring City
Public Entity Partners’ Insurance Program
6
Data Insights
7
Grants and Scholarships
8
PE Partners’ Property Conservation Grant
9
Training: Empowering Member Employees 10 PE Partners and MTAS Risk Management Series 11 Managing Risk Through Effective Supervision 12 Value-Added Services 13 Symposium Overview 14 Honor Roll and Hall of Fame Awards 15 Excellence in Risk Management Awards 16 Financial Strength 18 Chattanooga Housing Authority’s Training Facility 19
City of Brentwood
City of Dayton
Page 4 photos feature some of the entities that were recognized in 2023 for 40 years of membership with PE Partners
Front Cover Photos (left to right) City of Bristol, City of Columbia, City of Bartlett
Back Cover Photo City of Shelbyville
City of Goodlettsville
City of Pigeon Forge
4 Annual Report 2023
Our Coverages
P ublic Entity Partners tailors our insurance programs to the unique exposures and loss experiences of our members.
City of Union City
• General Liability • Personal Injury Liability • Law Enforcement Liability • Catastrophic Medical Coverage Liability Coverages
• Errors or Omissions Liability • Employment Practices Liability • Employment Benefits / Fiduciary Liability • Class Action Liability Coverage • Optional Punitive Damage Coverage • Automobile Liability • Automobile Physical Damage • Optional Stated Value Fire or Utility Schedules • Optional Privacy and Network Security Liability
Town of Unicoi
• Optional Cyber Extension • UAV (Drone) Coverage
Property & Crime Coverage
• Buildings and Personal Property • Electronic Data Processing Equipment • Equipment Breakdown (Boiler and Machinery)
City of Alcoa
• Mobile Equipment • Computer Fraud
• Employee Dishonesty • Forgery or Alternation • Theft, Disappearance or Destruction Workers’ Compensation Coverage • Statutory Coverage • Voluntary Accident and Medical Coverage
City of Hohenwald
City of Jefferson City
Annual Report 2023
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Public Entity Partners’ Insurance Program P ublic Entity Partners was established to help provide effective and affordable insurance to Tennessee municipalities. Today, we provide Liability, Workers’ Compensation, and Property and Crime coverages to nearly 500 municipal entities throughout Tennessee. To help ensure stability in future municipal insurance markets, Public Entity Partners provides coverage in accordance with the Tennessee Governmental Tort Liability Act, lobbies to maintain reasonable tort limits, and monitors and maintains important checks and balances. PE Partners introduced Workers’ Compensation coverage in 1981 as the first insurance program offered to our members. Workers’ Compensation ensures that injured workers have access to medical care. It also covers wage replacement, depending on the amount of time an injured employee is unable to work. Successful Workers’ Compensation programs are partnerships designed to keep employees safe and free from accidents and injury through the application of risk management practices. In the event of an injury or accident, these programs also provide treatment so that injured employees can return to work at or as close to their pre-injury conditions as possible.
Town of White Bluff
Workers’ Compensation coverage is statutory in nature. Our claims process and focus on risk management measures help provide our members with a safety net that protects their entities and employees in the event of a workplace injury. PE Partners offers training resources to assist members with the prevention of Workers’ Compensation claims. These include in-person training and online resources, such as HR Hero™, EHS Hero™ and Local Government Risk Academy. In addition, we employ Casualty Loss Control Consultants for East, Middle and West Tennessee. These consultants inspect protocols and make recommendations for reducing loss ratios. The insurance programs offered by PE Partners are necessary and deliberate. From Workers’ Compensation to Property & Crime and Liability, each coverage has been tailored to the unique exposures and loss experiences of our members. Understanding local government operations and how they change through the years is an important component for determining the coverages we provide to our members, and we are pleased to offer an insurance program that allows our members to fully utilize the benefits of governmental pooling. Integrity is the uncompromising adherence to strong ethical principles at all times. Be ethical and fair in our business practices, and do what is in the best interest of members while embracing the truth with honesty and transparency. Integrity PEP Value
City of East Ridge
6 Annual Report 2023
Data Insights
Workers’ Compensation Statistics
Total Insured Values (TIV)
30,063 Employees covered for workers’ compensation
4,937
$145,805,917
$240,413,191
Volunteer firefighters and EMTs, reserve police officers and elected officials covered for voluntary medical
$417,132,932
Property Statistics
Town of Greeneville
= 1,000 employees
Total workers’ compensation payroll: $1,234,842,131
= 1,000 employees
20,972 Properties Insured
Liability Statistics
$11,721,591,969
54,462 School and Head Start Students
18,011 Street Miles
5,966 Organized Team Sports
EDP Equipment TIV
Total Personal Property TIV
Mobile Equipment TIV
Total Buildings TIV
$12,524,944,009 Total insured value of all properties
5,557 Police Officers, including Auxiliary/Reserve
121 Swimming Pools
City of Savannah
Annual Report 2023 7
Grants & Scholarships
P ublic Entity Partners’ Grants & Scholarships program invests in training, education and equipment to help keep our members’ employees safe and protect their resources. This program provides financial assistance to help members purchase essential safety and loss prevention items, as well as increase their knowledge of risk management and loss control techniques. The program includes the Cyber Security, James L. Richardson Driver Training, Property Conservation and Safety Partners grants. Public Entity Partners also supports risk management by providing scholarships to our members for the PRIMA Institute, National PRIMA and Tennessee PRIMA, as well as the Legal and Liability Risk Management Institute for law enforcement personnel.
Grants
Scholarships
(Awarded in FY22-23)
(Awarded in FY22-23)
Legal & Liability Risk Management Institute
41 Cyber
3
Town of Linden
Security
“Without the National PRIMA Scholarship from PEP, I would not have been able to attend the best conference I have ever attended. I am extremely interested in risk management and this conference ignited my interest. It allowed me to network with others in risk management to share concepts and ideas that I will use not only in my current HR role, but also for the City of La Vergne. I would like PEP to know that your scholarship programs are so impactful as our budget would not have allowed me to attend otherwise. I send my sincere gratitude for this amazing opportunity.”
46 James L.
14 LEIC Police Risk Management 3 National PRIMA 3 PRIMA Institute Excellence in Risk Management 192 Virtual Academy 9 TnPRIMA Institute Excellence in Risk Management
Richardson Driver Training
72 Property
Conservation
Leah Presley Employment Engagement Administrator City of La Vergne
126 Safety
Partners
Amount Allocated: $623,355
“I am so appreciative of the support PEP provided to the City of Murfreesboro through the TnPRIMA grant. This funding allowed Murfreesboro to send additional HR staff members to the TnPRIMA conference. The conference gave us many safety tips and best practices for risk management. In addition, the conference’s networking opportunities gave us an idea of how other cities handle risk management issues similar to ours.”
Amount Allocated: $145,265
Randolph Wilkerson Director of Employee Services City of Murfreesboro
City of White House
8 Annual Report 2023
Focus on Property Conservation Grant
A s stewards of public tax dollars, Public Entity Partners’ members are tasked with protecting and preserving public facilities. While property coverage can protect member entities in the event of a loss, taking steps to reduce the severity or frequency of a property loss is sound risk management. Property conservation is an organized and managed effort directed toward loss prevention and reduction. This affects the frequency and severity of property losses. A comprehensive property conservation program preserves and protects the physical assets of public agencies, and can play a vital role in protecting agencies from the dangers of unforeseen property losses. PEP’s Property Conservation 50/50 Matching Grant provides funding for members with property coverage. This funding may be used toward the purchase of property loss prevention and control items. This year, 72 members received funding from this grant program. While security cameras, fencing and lighting are the most requested needs for this grant, numerous additional items qualify. These include, but are not limited to: • Bollards • Infrared thermography equipment • Lightning attenuation (lightning protection) systems • Items identified or recommended as loss prevention/control items on a property conservation loss control survey • Security cameras/lighting/fencing • Sprinkler head protective cages • Testing recommendations at facilities that participate in transformer oil or gas analysis (TOGA) programs
City of Algood
City of Collierville
Town of Farragut
City of Hendersonville
Photo credit: Rick Murray - Memories By Murray
“Alcoa City Schools was awarded one of PE Partners’ Property Conservation Grants, which we used toward the new addition to our Intermediate School. We needed fencing for the playground but didn’t have budget funds for accomplishing this. The Property Grant allowed us to fence this area to reduce potential claims losses. Because we are a small school district, we are more than appreciative to PEP for supporting our needs.”
“The Town of Tiptonville has badly needed surveillance equipment for our recreational fields complex. By receiving the PEP Property Grant, we have been able to not only acquire the needed equipment, but to also provide security cameras that can be remotely reviewed. This equipment allows us to monitor the fields, concessions, parking area and more. We have been able to reduce our liability, while also having this video as backup for various incident investigations that may arise. If not for the PEP Property Grant, it would have been a long time before we would have been able to access such equipment.”
Scott Porter Contracted Facility and Grounds Services Alcoa City Schools
Joe England Chief of Police Town of Tiptonville
Annual Report 2023
9
Training: Empowering Member Employees
to Serve Their Citizens Safely and Effectively
Northwest Tennessee Human Resource Agency
P ublic Entity Partners strongly invests in providing our members with numerous training options throughout the year to help improve employee safety, reduce liability and preserve public resources. These include in-person training, webinars, our annual Risk & Insurance Symposium, online training and scholarships for various risk management educational opportunities. PE Partners’ Loss Control Training Program features in-person training at your location. The classes may be tailored to address your entity’s own loss experience or a timely topic. They can also be customized for specific needs or departments, such as supervisors, police, public works or general administration. In Fiscal Year 2022-2023: • PEP provided 109 in-person training sessions , representing 228 hours of training , with an attendance of 4,133 participants • PEP members completed 7,964 online classes via our Local Government Risk Academy safety, liability and risk management training platform • 3,235 member employees watched 180 videos from PEP’s DVD Library • 291 member employees participated in 6 Partnering for Success webinars We believe that every employee of each of our member organizations has some degree of responsibility for risk management. We strive to train as many public entity employees as possible on the best practices for risk and claims mitigation, ensuring they are well prepared to serve their citizens safely and effectively. Provide innovative products and services which meet or exceed the needs and expectations of our members. Empower members to understand the principles of risk management as they make decisions for their entity. Service PEP Value
City of Germantown
“Sarah Curtis, Public Entity Partners’ Training Specialist, did an excellent job with our Civility training. She had excellent presentation skills, added the right amount of humor and classroom interaction, and made the entire training experience an enjoyable one. She is a very gifted trainer who deserves to be recognized!”
Kimberly Brickles Executive Assistant to the City Manager/HR Director City of Springfield
“As a city’s risk manager, I am constantly striving to provide updated training for the safety of our employees. Your onsite training, recordings and EHS Hero have been a lifesaver. I have been especially impressed with the PEP instructors who have visited our city and delivered a broad spectrum of knowledge and experience dealing with the complexities that are often neglected. This in turn has raised employee awareness and impacted employee behavior with regard to protecting each other and safeguarding our citizens. PEP’s classes have always been thorough, challenging and thought provoking, with hands-on participation and enlightened decision-making exercises. Your instructors are top-shelf quality with professional attitudes and presentations, and your partnership is much appreciated.”
David Graves Workplace Safety and Risk Manager City of Maryville
10 Annual Report 2023
PE Partners and MTAS Risk Management Series I dentifying, managing and mitigating risk is everyone’s responsibility. When risk management is effectively implemented and regularly applied, it can save your organization money. Public Entity Partners and MTAS (Municipal Technical Advisory Service) joined together this year to present a special virtual educational series on risk management for our members and the governmental entities served by MTAS. This four-part series, led by Sarah Curtis, PE Partners’ Loss Control Training Consultant, educated participants about the most common risk exposures faced by public entities and how they could utilize best practices to minimize risk for their organizations.
City of Athens
City of Springfield
The series included:
Developing a Culture of Safety Many organizations are moving toward an enterprise risk management plan that encompasses a more comprehensive approach to risk management. While these plans are diverse and can often be organization or industry specific, they all have one thing in common. Risk management must be embedded in organizational culture. This session focused on solutions for weaving loss prevention strategies into the culture of an organization and engaging employees in the process. Property Conservation: Protecting Your Assets Reducing property losses is an important aspect of any risk management plan. Focusing on the most common property risks, this session offered guidance on minimizing risk and protecting public assets. The discussion included best practices in property conservation, using a holistic approach of loss prevention, accountability and communication. Liability: Reducing Your Exposure Public entities face unique exposures due to the nature of the services they provide. This session dove into some of the most common exposures, including general liability, employment practices liability and law enforcement liability. It also explored policies and best practices for mitigating these risks and minimizing the impact of a loss. Workers’ Compensation: Protecting Your Employees and Your Operations
City of Jackson
“Today’s session, ‘Developing a Culture of Safety,’ was targeted at department directors and their immediate subordinates, and focused on our safety culture. The information presented was current, applicable and practical. PEP is fortunate to have high- caliber presenters and the cities PEP serves are true recipients of that good fortune.” Carl Sells Human Resources Director City of Cookeville
Considering the risks associated with the numerous jobs it takes to run a public entity, most employers will experience work-related injuries at some point. While employee safety and the mitigation of these risks should be of top concern, it is also important to have a plan in place should a work-related injury occur. This session provided participants with steps to properly manage their workers’ compensation claims and ensure the best possible outcomes for injured employees and their entity. Additional resources were shared with participants to assist in navigating the workers’ compensation claims process. “PE Partners was excited to offer these opportunities for reaching municipalities and furthering their knowledge in risk management best practices,” Curtis said. “We were also proud to partner with MTAS in an effort to reach as many city employees as possible.”
Annual Report 2023 11
Managing Risk Through Effective Supervision I n the fall of 2023, PEP presented a free training series, “Managing Risk Through Effective Supervision.” This opportunity was designed for first-line supervisors and their roles in creating a culture of safety. Additional session topics included the positive impact of effective communication and the importance of motivating your team through constructive leadership while also being a productive manager. Sarah Curtis, PEP’s Loss Control Training Consultant, led these sessions in cities across the state to give members equal access to this in-person event. Nearly 400 employees attended these training events. “We were excited to offer this training for supervisors as it is every employee’s duty to create a safety culture in the workplace,” Curtis said. “By training the first-line supervisors on how to effectively utilize their skills, we can mitigate risks and prevent accidents.”
City of Cookeville
City of Columbia
“PEP’s presentation to promote a positive work environment, team building, and both personal and professional development taught our employees the importance of treating their co-workers with respect. The Northwest Tennessee Human Resource Agency appreciates PEP’s collaboration with our agency and commitment to enhancing our employees’ morale, knowledge, productivity and engagement. While increasing effectiveness and saving taxpayer money is a primary goal, PEP goes above and beyond that to actually care about our employees and make a difference for them.” Melinda Poteet Goode Executive Director Northwest TN Human Resource Agency and Development District
In-Person Training Sessions and Webinars Provided in 2023:
• Civility • Conflict in the Workplace • Developing a Culture of Safety • Engaging Employees through Performance Management • Hostile Work Environment • Liability: Reducing Your Exposure • Managing at All Levels • Managing Risk Through Effective Supervision • Mutual Aid vs. Interlocal Agreements
• Personnel Policies • Police Retention/Recruitment • Professional and Proven Hiring Practices • Property Conservation: Protecting Your Assets • Resiliency • Respectful Workplace • Sexual Harassment • Workers’ Compensation: Protecting Your Employees and Your Operations
• Workplace Culture • Work Zone/Flagging
City of Martin
12 Annual Report 2023
A long with PE Partners’ extensive training program, we offer value-added services to provide efficient solutions, helpful resources and support for the work conducted by employees of our member entities. These include: • A DVD library with 280 titles on safety and liability, including Driving Safety; Harassment and Discrimination; Maintenance Operations and Construction; and Wellness, Fitness and Prevention. • Free training toolkits from both EHS Hero ® and HR Hero ® , with nearly 4,400 training resources to help members streamline their Environmental, Health, Safety (EHS) and Human Resources (HR) programs. • Our annual Partnering for Success Webinar Series, which focuses on timely topics currently impacting our members. • Our monthly PartnersNews e-newsletter, which includes timely information on risk mitigation, educational opportunities and risk management tips. Value-Added Services Hold ourselves to high work standards when serving our members and fellow co-workers. Strive to maintain a level of competency within our team so the best products and services for our members can continually be created. Quality PEP Value
Town of Jonesborough
City of Oak Ridge
Additional value-added resources include: • Virtual Academy: PEP offers a subscription supplement for this high-level online law enforcement personnel training with nationally recognized experts. • Full Package Bonus: Members who participate in PE Partners’ Liability, Property and Workers’ Compensation programs are eligible for a full package bonus. • GatherGuard: This general liability policy can help mitigate risks associated with public and third-party requests to use local government properties and facilities, while also providing valuable protection to the event host and venue. • Legal Hotline: PE Partners’ Legal Hotline provides free guidance to members with legal issues that could potentially turn into claims or lawsuits. • Local Government Risk Academy: PEP’s free online educational platform offers topics on management, human resources, law enforcement and safety. • Property Valuations: Property program members are provided with valuations of the properties they insure through PE Partners, which offer replacement costs and actual cash values.
“While employers are required by OSHA to provide employees with a safe environment, each employee needs to be aware of his or her exposure to potential hazards, take action to avoid or eliminate them, and report hazards or unsafe conditions as they arise. PEP’s DVD Library is designed to provide employees from every department with a high-level overview of workplace safety topics and tips, allowing an entity’s risk manager to deliver effective and consistent safety orientation training. This helps reduce costly incidents and turnover, while also boosting productivity and morale. The DVD Library is a great tool for introducing training sessions, and lends itself to further discussion during our safety meetings by putting together a PowerPoint presentation that complements the DVD topic. Thank you for providing this resource for members. I take advantage of it on a frequent basis.”
“Having access to a professionally compiled library of materials is a valuable bonus for our small HR and compliance team. Benefits such as HR Hero save hours in initial research and drafting, letting us focus on tailoring the policies and trainings for our organization’s specific needs.”
Candi Henry Chief Legal Counsel Greater Nashville Regional Council
Darby Bushey Risk Manager City of Pigeon Forge
Annual Report 2021 12 2023 13
Symposium Overview & Testimonials
Public Entity Partners held its seventh consecutive Risk & Insurance Symposium in August. This annual event serves to educate and recognize our members, and provide opportunities for them to network with each other. This year’s Symposium had a record attendance of 275 registrants representing more than 150 members. Session topics helped expand attendees’ knowledge and provided them with numerous risk management best practices. The sessions included: • Be Nice: Six Interpersonal Superpowers for Success in a Hybrid World • Conflict Management: A New View of an Old Topic • Customer Service Excellence • Data Breach Response: A Comprehensive Approach to Notification and Technical Best Practices • Defensive Driving Problems, Solutions and Resources • Exploring the World of Property Valuations for Insurance Purposes
“Once again, PEP has provided an excellent conference program! I always leave with great information that is directly applicable to my work environment.” Jeannie Anderson City Recorder City of Niota
“I have been coming for more than five years. I always learn something new and enjoy networking with leaders from other cities. Thank you for investing in me for my city.” Jacqueline Grandberry Vice Mayor City of Mount Pleasant
• Mutual Aid vs. Interlocal Agreements • Police K9 Handling of the 21st Century
• Potholes to Avoid on the Risk Management Highway • Risk and Responsibility in Special Events Traffic Control • Risk Management: Your Role and Responsibility • Seven Mistakes You’re Making in Cybersecurity as a Non-Technical Leader • Tennessee Drug-Free Workplace • Trends in Medical Inflations and Workers’ Compensation
“I’m always impressed with the conference and speakers.” Shannon L. French Office Manager Paris-Henry Co. Public Utility District
14 Annual Report 2023
Honor Roll & HOF Awards
This year, Public Entity Partners honored five individuals with two new awards for a lifetime of achievement and excellence in service to Tennessee’s cities, towns, local agencies and taxpayers.
R ex Barton was named to the Tennessee Public Risk Management Honor Roll . Now retired, Rex was the first Police Risk Management Consultant for UT-MTAS (University of Tennessee Municipal Technical Advisory Service) and served in that role for more than 28 years.
Rex continues to provide part-time consultation services. His contributions have been vital to police risk management, the professionalism of the police discipline and the successes in Tennessee law enforcement that we enjoy today.
Four individuals were inducted into the Public Risk Management Hall of Fame:
Dr. Ed M. Young (posthumous) worked alongside Herbert Bingham in examining the feasibility of pooling in Tennessee and advocating for the passage of the legislation to authorize governmental pools in Tennessee. He served as The Pool’s first Operational Manager, and is still the only non-City Manager to be recognized by the Tennessee City Management Association for his distinguished service.
Herbert J. Bingam (posthumous) served as the Executive Director of the Tennessee Municipal League from 1946-1982. His numerous accomplishments included his efforts to create UT-MTAS, a vital agency within UT’s Institute for Public Service. Following the passage of the 1973 Tennessee Governmental Tort Liability Act and a hardening liability market across the U.S., he oversaw the formation of the TML Insurance Pool (now Public Entity Partners) in 1979. Judy Jones Housley has made a significant impact on PEP’s members in her role as Loss Control Consultant for the past 37 years. Even though she officially worked with 160 East Tennessee entities, her guidance and support have helped many other entities statewide. She has also contributed to the national public risk discipline through national organizations, such as the National League of Cities Risk Information Sharing Consortium programs and PRIMA, and has accumulated numerous accolades and awards as a result of her involvement. Her diligent work with PEP has made cities safer, prevented untold numbers of accidents and injuries, and helped protect city property.
Thomas Randall “Randy” Williams began his 40-year Tennessee public service career with the City of Paris in buildings and codes, then was promoted to City Manager. During this time, he served on The Pool’s Board of Directors. In addition, he served as a Municipal Management Consultant with MTAS for a number of years, then joined The Pool, eventually serving as Director of Client Services (now retired) to help build relationships with Tennessee’s entities. He also served as Acting Deputy Director for TML (Tennessee Municipal League).
Annual Report 2023 15
Excellence in Risk Management Awards
One of the highlights of every Symposium is the Excellence in Risk Management Awards Luncheon, when we gather to acknowledge individuals, departments, cities and towns, and recognize their invaluable contributions to risk management and the far-reaching impacts they have on their communities.
T he Excellence Awards are designed to recognize entities of all sizes that make use of available resources to implement programs that benefit their employees and citizens.
Amanda Gibson CSR – Business Insurance, McInturff, Milligan & Brooks Nominated by Callie Westerfield and Patsy Fuller
Larry Daniels Chattanooga Housing Authority Nominated by Judy Housley
“I would like to make a recommendation for the Excellence in Risk Management Award. The Town of Greeneville’s insurance broker, Amanda Gibson, is the human resources main contact for insurance and risk management issues we may have at any given time. Amanda has shown a dedication to serving us, with a vast amount of knowledge and fast responses. She is always right on whatever task it is with a smile and a positive attitude.” – Patsy Fuller, Human Resources Director, Town of Greeneville
“Larry Daniels has been a steadfast advocate and tireless driving force for property maintenance excellence at the Chattanooga Housing Authority (CHA) for many, many years. His exceptional motivation and commitment to mentor our up-and-coming technicians, and foster robust and attractive career paths for the skilled maintenance trades, have resulted in our maintenance training center, which we believe is filling a critical gap in the educational spectrum for these types of job functions. With Larry’s leadership, we are looking forward to the further development of this initiative, bringing in more types of trades, skills and teaching to further CHA’s mission and our employees.” – Mike Sabin, Director of Public Housing, Chattanooga Housing Authority “The information and networking were fantastic. I came away with more tools for my toolbox.” Eva Valentine Human Resources City of Etowah
“This is the second time I have attended the Symposium. This time was exceptional!” Jeannie Decker Grant Writer City of Pikeville
16 Annual Report 2023
Libby Rutledge City of McMinnville Nominated by Jim Bell Hatchel
Lisa Harding Town of Gates Nominated by Debbie Yeager and Paul Chambliss
“The City of McMinnville is committed to keeping employees safe, reducing our liability exposures and safeguarding our public resources. We strive to provide a high level of service to our residents, without sacrificing the safety of our staff or our community. We are equally committed to providing safe facilities for the use and enjoyment of our community. Libby has spearheaded our efforts over the past few years to ensure that we are meeting our commitments through loss control, employee development and organizational professionalism. Our staff members have stepped up to the challenge as well and we couldn’t do it without them. Thank you so much, Libby and staff, for your hard work and dedication to keeping our community, facilities, employees and public resources safe.” – Nolan Ming, City Administrator, City of McMinnville
“Lisa has a passion for risk management and continues to review the Town of Gates’ current risk management programs to stay proactive in safety prevention. The city has very low/minimum claims experience and there is no adversity under her leadership. She attends and supports PEP’s Risk and Insurance Symposium annually and has attended the PRIMA Institute. Lisa also attends PEP’s West Tennessee TnPRIMA roundtable meetings regularly to obtain education and knowledge for enhancing current risk management programs, and/or to develop policies/programs for promoting safety among their employees and community.” – Debbie Yeager, PEP’s West Tennessee Member Services Representative
“Under Anna Perry’s leadership over the past three years, the Mid-Cumberland Human Resource Agency has seen a 90% decrease in the severity of liability claims and an 88% decrease in the frequency of liability claims. In addition, during the same time period, the organization has seen an 88% decrease in the severity of workers’ compensation claims and a 57% decrease in the frequency of workers’ compensation claims.” – Chester Darden, PEP’s Director of Loss Control Anna Perry Transportation Director, Mid-Cumberland Human Resource Agency Nominated by Chester Darden
Jennifer Benjamin Risk Management & Safety Coordinator, Town of Collierville Nominated by Andy Lacewell
“Jennifer has been proactive in taking on the role of Risk Management & Safety Coordinator for a city of 52,000 people. She leads their safety committee in regular inspections of city facilities to ensure they are safe for the public and to minimize the risk of property loss. She works very closely with PE Partners’ loss control consultants to identify and mitigate potential liability and property risks throughout the city.” – Andy Lacewell, PEP’s West Tennessee Property Conservation Consultant
Annual Report 2023 17
Financial Strength
O ver the years, PE Partners has prioritized financial strength and transparency for our members to safeguard our ability to provide long-term service to Tennessee’s governmental entities and the citizens they serve. To navigate ongoing market fluctuations, PEP conducted a rate study with independent actuaries in 2023, ensuring adequate reserves, accurate base rates and continued support for our members in the face of potential catastrophic losses.
For fiscal year 2023, loss and loss adjustment expenses accounted for approximately 56% of overall expenses. Reinsurance premiums ceded (19.45%), general and administrative expenses (15.15%), and policy acquisition costs (9.36%) accounted for the additional 44% of overall expenses. PE Partners is proud to share our financials with our membership. This allows you to personally assess and understand the financial stability that we purposefully work to achieve every year — with the value of each member in mind.
Dividend Payment
Be committed to being financially sound to ensure our members are served into the future by being thoughtful and cost-effective with time, skills and resources. Promote professionalism and best practices in every aspect of our work, seeking to maximize every opportunity to fulfill our mission. Stewardship PEP Value
A value of participating in a risk-sharing pool is the return of excess surplus directly to members. Due to the economic challenges and associated risks that faced our country in 2023, we made the difficult decision to withhold any distribution of dividends to members. This was not a reflection of PE Partners’ current fiscal health, but was merely a conservative approach to help ensure that we remain financially healthy as we serve our membership in the coming years.
This is only the second time in our annual dividend program’s 26-year history that PEP has not declared a dividend. Since 1996, we have been able to return $130 million in dividends directly to our members. While our evaluation is ongoing, it is our sincere hope that our Board of Directors will be able to declare a dividend for the 2024-25 year.
Statement of Revenues, Expenses and Changes in Net Position as of June 30, 2023
Statement of Net Position as of June 30, 2023
2023
2022
Current assets
$251,188,664
Premises, property and equipment (net) Right-to-use subscription-based IT asset
$8,775,124 $689,428 $750,000 $2,833,969
Operating revenues Operating expenses
$65,899,543 ($58,851,497)
$19,595,538 ($62,637,562) ($43,042,024)
Other assets
Operating Income
$7,048,046
Deferred outflows of resources (pension)
Total Assets and Deferred Outflows of Resources
$264,237,185
Non-operating revenues (expenses)
-
$350
Total current liabilities Net pension liability
$144,693,229
Change in Net Position
$7,048,046
($43,041,674)
$2,261,648 $344,345
Subscription-based IT liability, exc current portion
Deferred inflows of resources (pension)
$17,773
Beginning net position
$109,802,804
$160,844,478 ($8,000,000) $109,802,804
Dividends (declared and lapsed)
($69,339)
Total Liabilities and Deferred Inflows of Resources
$147,316,995
Ending Net Position
$116,920,190
Investment in capital assets
$8,775,124
Unrestricted
$108,145,066 $116,920,190
Total Net Position
Total Liabilities and Net Position
$264,237,185
18 Annual Report 2023
A “Small Project” for Generating Skilled Labor Has Provided a Powerful Loss Control Tool for the Chattanooga Housing Authority
W hen the Chattanooga Housing Authority (CHA) was experiencing difficulty finding skilled workers to maintain their facilities, Larry Daniels, CHA’s Maintenance Supervisor, took it upon himself to create a training facility that equips maintenance staff with the skills needed to safely and correctly perform their jobs. “CHA employs 50-55 maintenance staff workers,” said Mike Sabin, CHA’s Director of Housing Operations. “We had been having issues finding trade labor for several years, but even more so after the pandemic. We were having to hold job fairs to recruit maintenance labor.”
Judy Housley and Larry Daniels at PEP’s 2023 Risk & Insurance Symposium, where Larry was honored with an Excellence Award
CHA maintenance technicians spent five months preparing a building that was out of service and transformed it into a training facility. “Larry took it upon himself to create this facility, which had no budget,” Mike said. “When he started, it was only going to be a small training area for small projects, but Larry had something more significant in mind, and worked evenings and weekends to achieve it.”
“This facility enables our maintenance staff to be well- trained for the jobs at hand and has had a tremendous impact on employees doing work correctly,” Larry said. “It gives them the knowledge they need for approaching potentially deadly work when working with electrical items and the confidence that they are doing the work correctly. The program also creates more productive employees and fosters interest in various trades, which can further employees’ careers at CHA.” A 45-year CHA veteran, Larry holds numerous certifications from Chattanooga State Technical Community College. He is a certified manager of maintenance and a housing quality standard specialist, and has earned a state master’s electrical contractor license. He is a mechanical board member for the City of Chattanooga, and serves as chairman of the Tennessee Association and Redevelopment Authorities mechanical board. He was promoted to his current position with CHA in 2007, and has a lengthy track record of commitment to quality that has helped CHA earn a longstanding reputation for public housing property maintenance excellence. “Larry is committed to providing public housing residents with safe, well-cared-for places to live, but he went above and beyond with the training facility,” Mike said. “It is a loss control tool for preventing on-site injuries, has decreased liability for property losses due to repairs being properly completed, and has set a new standard for the entire industry.”
Larry at one of the electrical training areas
The facility’s grand opening was held on July 20, 2022, and the first training took place the very next day. Training is currently offered in electrical and plumbing, with plans to expand to other areas, including HVAC training. “In each room, Larry has built a training ground for connecting electrical services, maintaining gas and water heaters, and repairing and replacing water lines, toilets and showers — anything CHA’s maintenance workers might encounter,” said Judy Housley, PE Partners’ recently retired East Tennessee Loss Control Consultant. “The maintenance workers go through extensive training before being released to work on CHA’s facilities.” Larry leads the training for the maintenance staff. He is assisted with the plumbing training by John Alier, owner of South East Total Service. John is a Tennessee master plumber who has donated materials to the facility and aided Larry with training since the facility first opened.
Larry proposed a training facility for maintenance staff and received approval to move forward with the project in January 2022. Larry and a team of experienced
Larry leading a training class
Annual Report 2023 19
From Bristol
Serving Tennessee’s Public Entities Bartlett to
Annual Report 2023
562 Franklin Road, Suite 200 Franklin, TN 37069
memberservices@pepartners.org www.pepartners.org
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