001All right, here we go. Good morning, the April 23rd, 2026 special board meeting is now in order. I'm happy to welcome my fellow board members and the public. I'd like to take this opportunity to remind the public that the appropriate place for public participation in the meeting is during your individual public comment opportunity as identified in the agenda. Outside of your individual public comment opportunity, your role in the meeting is as an observer. Paul, roll call, please. Mr. Noise? Here. Mr. Wright? Here. Mr. Campbell? Here. Mr. Thomas? Here. Mr. Streit? >> Here. Please stand for the Pledge of Allegiance. Stand. I pledge allegiance to the flag of the United States of America, and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all. I wanted to take
002a second and say thank you for everybody that came today. Got members from Gallagher, members from ambulance, from our procurement staff, and some of our other people, um, from the our risk management. So, I appreciate you guys being here. Um, this brings us to the adoption of the agenda. Do I hear a motion? Move for approval. Second. Paul, roll call, please. Mr. Noise? Aye. Mr. Campbell? Aye. Mr. Rushin? Aye. Mr. Wright? Aye. Mr. Streit? Aye. We're now on to the public comment section. Paul, do we have any speakers? I have not received Does anybody want to get up and get 3 minutes worth to speak? Okay, good. All right, that concludes the agenda for items only on public comments. Thank you for taking out the time to schedule to address the board. And that brings
003us to the our action item. This is C1, 2026-27 renewal of our district's property, boiler machinery, and terrorism sabotage insurance policies. Do I hear a motion? Move to approve. Second. All right, let's go to discussion. Um, anybody, any board member wish to discuss any of the items? I'd just like to say thank you for, um, bringing this to light. Uh, thank Mr. DeFrain and his entire team and the BPS, everybody at BPS that had to handle this, as well as Gallagher for, um, helping get the cost out for us. Yeah, I would much it. It's great all the way around. Anybody else got anything to say? Uh yeah, I'll add a just a couple comments on this one. So, I I find one of my frustrations as a board member is the fact that renewals
004are coming to our board the very last minute. Was not ample time for us to really adequately research and make sure that we are getting the best price for the district. And so, I just expressed that from all angles procurement. This is one of those things where, "Hey, if you see it." Like that should trigger a warning to to send it sooner so that we're not right up against the line right now. I mean, you know, what are we, 2 days out from this policy expiring? So, uh that's one of the frustrations we had. I appreciate Gallagher's work. It sounds like you guys went back and sharpened pencils and did a lot of a lot of work to really get this price in line. Uh so, I appreciate your effort there. Uh just from moving
005forward, I would prefer if we could get these things 60 days before they're going to to renew. That will give us time to really look at them and and not have to come so close to the wire as we are right now. So, that's all. If it means saving a million and 1.3 million 1.3 million, it can be 2 days before. And I will make note it was supposed to be the week before, but Yeah, for all of for everybody that's in here, the meeting was uh Gallagher had brought forward a not to exceed larger number than what we had here saying, "Hey, we can um sign it off." I think where our problem is is and I'm hearing Ms. Ms. Wright, and it may be some of the other members, is um under our
006procurement policies, we had stated under the standard policy we made the short-term disability contract that we wanted to start having these ahead of time. Like we wanted to have these at least 45 days ahead of time um in regards to that contract at the time, which is not anything Gallagher had. It was under a different um consultant on the health side. We had brought forward a a contract that came right up on renewal. So, it didn't give us the opportunity that if this was too much or too little that to to actually negotiate a little bit. And what it was was the contract was actually tied um the short-term disability was tied to a whole 'nother RFP, which was odd, and it just made it to where it was a mess. So, in order for
007us to do it, it comes on the agenda, and then all of a sudden we didn't know that it was up, and then 2 weeks later we're supposed to do it uh sign it and then the actual renewal date is like a week later we can't do anything. So for the future for I think we all would agree that we would like to have as a vest in final 45 days out is that kind of a good a real fair with that? Possible. And what do you mean as possible? Well, I mean I we've got a procurement you know director of procurement over here. I don't know you know that's not my area of expertise. I mean Paul could probably speak to that or we could ask it Sue or or uh uh staff to
008speak to it but you know sure. Um yeah. I think it's entirely possible for us to do some processing for this Broward asset. We will work on that the Broward will put those out. Okay. Thank you so much. So the first piece was is to establish that we get these 45 days out. Next thing is is I really appreciate Gallagher for everything that you guys did. Um real quick was wondering if one of the Gallagher representatives could come up and just explain um the differences between the Amwins wholesale, the RPS and some of the other stuff. Is there somebody who can help? Yes sir. Yeah. If you when you come up if you can state your name and stuff like that. You can just go out to see Frank there. I'm Terry Stubbs, Arthur J.
009Gallagher. I'm your retail agent on your on your program. We won the RP back in a 23 up it's a continuation. Your wholesale brokers are representing you with RPS and Susan Fleming with Amwins. So on a retail side I think the best way to probably make the analogy is you watch sporting events we always see the insurance companies advertise the Chubb, the CNA, the Travelers. Those are standard insurance markets. Uh those are the insurance markets I as a retailer could access. However, when it comes to large cat exposed property like you are especially being coastal Florida the standard markets generally do not write that. They may own some companies that write it. Chubb has a company called Westchester but it's non-standard and the non-standard marketplace is only accessed through wholesalers. It's really a distribution process
010is what it is as opposed to hundreds of retail agents approaching them. They have a few key wholesale markets. So, what we do is generally on most placements they have one wholesaler that approaches the market and then you use a different London broker in London as well to access the London market. However, with with Brevard, we've done something in additional. We got two wholesale brokers involved and AmWINS and RPS are two of the four largest. I consider them the two fastest especially in general but specifically for Florida public entity business. So, we've got both they're they're actually competitors but they all play well in the sandbox together and they work in tandem to approach the marketplace for you. There were 24 market participants on your replacements on your program last year. This year there's 27.
011They're all non-standard. They're not markets that I can approach directly. So, that's why we use the wholesale marketplace to do that. It's a It's a little odd. It's a little different and it's not um uh probably for for somebody not in the insurance business it probably looks a little different but that's it's really a distribution process in our in our business. And that's indicated just so you guys know inside the page two of the document that shows all the different all the different insurance carriers what they're doing. It's a It's a complex when you have this much. Um It's complex to as to how many different carriers and stuff like that and what you'll find inside of here is some of these that you see here are either the Gallagher wholesaler or AmWINS on here.
012So, that is That's literally a puzzle. Yeah, it is but it's it's a very difficult and complicated puzzle to put together and I thank you for putting that together. >> And and so and as well as your retail agent, I'm your general agent. So, we handle your student accident, your property, your casualty, being your AL/GL, your workers comp, all those They just eat and breathe property insurance all day long every day. They're in the marketplace. They they know all the players and so it is even if it wasn't something I couldn't access, there's still efficiency in the way that you know, I I if I have 20 accounts they have literally probably hundreds and they're they're basically in the market working this all day long. So it's just the way that we achieve try to
013get you the best price. And I and I just full transparency I Amwins is here today and I asked them I said you guys didn't need to come all the way over here and then I remember their actual office is in um Satellite Beach. So they regionally Amwins >> It was just OTB. So So there I appreciate you guys coming today. Thank you so much for that. You guys are a big part of our success here. So thank you. >> Susan's got a student at Satellite High School and one of our graduates too. So she's got best interest at well. >> That's right. That's how we like it here in Melbourne. Um all right. So real quick um one of the things the reasons that just so everybody understands um when we were getting this
014document even this document's great but some of the things that I would like procurement to make sure the next time we do this with 45 days out is if we can have the cancellation policies minimum earned and all of that stuff because what ends up happening is and this is we in in this group there is no indication of anything like this. But in the event that there was a renewal today and then they're up for renewal in 3 months. What ends up happening is is that if somebody else comes in and becomes the broker, right? Then in the next 3 months they would depending on the minimum earned or the cancellation clauses, there's a good chance that they would receive the commissions for the rest of the time. Now that's usually what usual and
015customary is like 35% minimum earned premium and stuff like that. So I didn't know uh so just so you know, the reason that we're moving in that direction is is because we want to make sure that those terms and and conditions will actually give us a better um quote in the future in this regard if that if that helps. All right. Um can you to the difference? So we receive different commissions based on your contract, which I pulled up, which is the difference commissions between your wholesaler and Amwins wholesaler. Can you explain that to me? Yes. So, we as a retailer, we make 3% and then we purchase services on your behalf so that we net out basically 1.5%. Is is us on retail side. The wholesale side, both Amwins and RPS or both and
016London your London broker you well, they're all making their capped at 4%. Got it. Okay. And just so you know, at no point is there a reason to crawl back any of those commissions. Those are usual and standard and those are those commissions are set up and needed for the work that they do. You saw this puzzle. This is a very easy puzzle for what it is. It's well deserved and those marketplaces. I just wanted to make sure because there are differences between the commissions between um the different wholesalers and stuff like that. So, thank you for asking that. I'm not sure if you can answer it right now because we have the renewal is literally like 2 days and we have to get it in by tomorrow. Do you know what the cancellation clauses
017or the minimum earned on the Amwins say for instances? Do you guys know that by any chance? Uh 35% except for where the yeah, except for if that goes into June 1st, it becomes a hurricane then the minimum earned for cancellation. I got you. And then uh cancellation clauses is there a anything that says that it can't be canceled within a certain amount of time? It's just a minimum premium. Minimum premium and then the again the hurricane minimum earned with after June 1st. Perfect. And that's that's completely standard and everything else. So, for that perspective, I just wanted to say um Mr. Terry and I met each other I think it was like 3 years ago at um a conference that we were at over in Tampa. And he's now been nothing but a very
018uh gentleman and uh a really good person to have a conversation with. So, if you guys ever have questions, I'm sure Terry would always answer any of those questions. >> Yeah, we appreciate this opportunity. I mean, we we we enjoy working with your risk management department. We do that on a daily basis, but anytime, you know, you're there's questions whatever, we're we'll make ourselves available. We we tell Storm if she's got a question at 8:00 on a Sunday night, you got a you got my cell phone number. It's It's the best Don't bother him on a Saturday night or something. It's okay. We can be a little bit >> why we didn't bring the Lloyd's people over from London? It's good. We're saving money. That's why. Their 4% commission doesn't cover the Those advertising is
019national plus Mr. Chair, I do have a question for you when he when he's Yes, sir. I would just like you to can maybe explain for the general public um how this even came about. You know, this obviously this contract came up. Now we just saved roughly 1.3 million dollars, which is equivalent to 15 positions or more. Um so, in a time that we're cost-cutting or in trying to pinch pennies, could you just kind of explain how this all came about? >> Yeah, so they came forward with a hey, here's our um here's where we think we're going to be. They went ahead and brought back a It looks like on March 5th, 8.96. Then on March 26th, 7.6. And then currently we're at 6.7. All kudos to you going to the market to squeeze
020and to work and to keep quoting. All to Ms. Storm for I hear I called Ryan and I was like, Ryan, where they at now, right? And he's like, she's she's pressing. She's pressing. So, we really appreciate what you guys did. Um but if that helps. So, there's there's a way that you first get the the wave of quotes back, if I may. And then they say, okay guys, you're a little high over here. You're a little high. And when you're looking at this massive infrastructure, then they're able to start squeezing each one of these groups. And now we're down to 6.7. And I think where I'm most concerned is not so much the total cost, but the cents per square foot. So, you have 20 We're at 23 cents per square foot right now.
021And I know that if you guys bled everybody and went to the mattresses, we might get to like 21. Um but I don't know, you know, we don't have the time for that and everything else. But um that that is very very good what they did. They Gallagher stepped up and you know, sharpened the mattresses and everything like that. Sharpened the pencils and did a great job. So. Thank you very much. All right. Sure. Well, you know what? We work with school districts. I we do 40 or so over 40 of the 67 school districts here in the state. I do others in another states as well. They are all hurting. We know it. Yeah, whether you whether it's voucher system, the tax base, whatever, everybody's hurting. We try to do our best and and
022we know what? You're all going to go to conferences. You're all going to talk to each other. We do our best to provide you the best term we can. And apologies for the I know it seems late. What we're trying to do is work the market to get you the best price we can. We can we can go out earlier and and get you prices by you know, 45 days in advance. It I can't guarantee it would be the same result as we would get, you know, for this because basically those underwriters are working on 41s and 31s and then 71s the big day. That's where the title. So, it's nice that you guys are before 71 actually on your on your property day. Any of that wins season from that perspective. And that but
023with that 45 days out it gives us the opportunity to do a market check to where we say, "Okay, if this is where we are, great. If not, then you could go squeeze them some more." You know what I mean? That's having that set up that would be great. Um all right. So, I'm good. Is everybody else good? We're good? All right. So, there's a motion on floor. Um poll will call please. All right. I. Mr. Shizik. I. Mr. Campbell. I. Mr. Dell. I. Okay, with that we have no other further business. This meeting's concluded. Thank you again.