My apologies for the delay in reviewing the information you have providedconcerning the cost of insurance for the Johnston Chamber of Commerce. As you know, the Chamber has sought quotes for various insurance products including general liability, commercial property, directors & officers, and umbrella. Additionally, the Chamber needs to secure insurance associated with the operation of a beverage garden in conjunction with the annual Green Days celebration. I have reviewed the information you have provided, but I am unable to reach a conclusion about whether the coverage and associated premiums are appropriate to the situation. I have also had difficulty comparing the quote provided with other information we have received. For this reason, I would like to reset the assumptions and request that you develop a new quote based on these updated assumptions.

1.I believe it is important that we clarify the business arrangements between the Johnston Chamber of Commerce and Enterprise MidAmerica/Enterprise Iowa. Enterprise MidAmerica and EnterpriseIowa are private for-profit companies located in Johnston. The Johnston Chamber of Commerce and the Johnston Economic Development Corporation have contracted with Enterprise MidAmerica for management services. This contract provides that Enterprise MidAmerica will provide both personnel and office space for the Chamber and JEDCO.EnterpriseIowa, an affiliate of Enterprise MidAmerica, holds the lease for office space at 5408 NW 88th Street, Suite 120.EnterpriseIowa also secures commercial liability and commercial property insurance for its operations at this address. This insurance coverage extends to the activities of Enterprise MidAmerica in the same location.EnterpriseIowa also provides a certificate of insurance to various entities including the building owner, the Johnston Chamber of Commerce, the Johnston Economic Development Corporation and other clients as needed. The amount of the coverage and the associated premiums are as follows:

Commercial General Liability

General aggregate $2,000,000

Per Occurrence $1,000,000

Products Aggregate $2,000,000

Personal Injury $1,000,000

Fire Damage $100,000

Medical Expense $5,000

Total Premium/$100

Additional Insureds - Manager or Lessors of Premises/$50

Additional Insureds - Lessors ofLeased Equipment/$50

Certified Acts of Terrorism/$4

Grand Total/$204

Commercial Property

Legal Liability $400,000/$200

Business Personal Property $50,000/$143

Certified Acts of Terrorism/$7

Grand Total/$350

Given these facts, it is unclear to me to what extent either the Johnston Chamber of Commerce or the Johnston Economic Development Corporation require liability and commercial property insurance beyond the coverage already provided by Enterprise Iowa.

2. The Johnston Economic Development Corporation currently secures liability insurance and dishonesty insurance. The amount of the coverage and the associated premiums are as follows:

Legal Liability $1,000,000/$1121

Dishonesty $50,000/$271

It is unclear to me to what extent these organizations require liability and commercial property insurance beyond the coverage already provided by EnterpriseIowa. Further, it seems sensible that the Board of Directors ofeach organization should have similar coverage for Director's and Officers and "dishonesty" insurance. We also wish to clarify whether these products are the same or different from errors and omissions insurance.

3. The Johnston Chamber of Commerce requires insurance coverage for the Green Days celebration. This coverage needs to be sufficient to protect the Chamber from liability for the overall event. We can provide you with the current budget for Green Days that will provide a general description of the various activities. It is my understanding that certain events such as the Carnival and the bike race are covered under separate insurance policies secured by the event sponsors. If you require more information about this - please advise. Note: There will not be a 3 on 3 basketball tournament in 2007.

Additionally, it will be necessary to secure insurance for the operation of the "beverage garden." Premium quotes are needed for the following two options: Option A: beer garden only. Option B: beer garden and margarita bar.

4. The Johnston Chamber of Commerce has recently purchased two sets of materials that may require insurance coverage. The first are four sets of banners that are displayed on various light/utility poles around the community. These banners are stored in facilities controlled by the City of Johnston when they are not on display. We are seeking information from the City to determine if their insurance would cover this material in the event they are damaged are destroyed. The total value of the banners (purchase price) is approximately $25,000.00. If this material is not covered by City insurance, what would the insurance premium be for replacement cost?

The second set of materials is holiday decorations that would also be displayed on light/utility poles during the months of November and December. This is a new purchase and the materials have not yet arrived. The total value of these materials is approximately $5,000.00. When they arrive, the decorations will be temporarily stored in the basement of our office facility at 5408 NW 88th Street. We anticipate that a new storage space will be secured in January of 2008 when the decorations are ready to be stored again following the 2007 holiday season.

I hope this additional information is helpful in the preparation of an updated and itemized quote. We look forward to your response.

Phil Dunshee

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