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OF
THE MIAMI VALLEY RISK MANAGEMENT ASSOCIATION
MVRMA Office, 4625 Presidential Way, Kettering, Ohio. The meeting began at 9:10 am.
The following individuals were present when the meeting was called to order: Sherry Callahan, Beavercreek; Jim Pfeffer, Blue Ash; Nancy Gregory, Kettering; Kim Lapensee, Madeira; Bruce Snell, Mason; Dody Bruck, Miamisburg; Wayne Davis, Montgomery; Mary Wright, Piqua; Derrick Parham, Springdale; Dick Drennen, Tipp City; Sue Knight, Troy; Julie Trick, Vandalia; David Watson, West Carrollton; Dina Minneci, Wyoming; John Milazzo, and Lauren Beiter, Marsh; and Kathy St. Pierre, Craig Blair, Starr Markworth, and Michael Hammond, MVRMA.
Tom Judy, Sidney arrived at 9:20 am.
Motion by Mr. Pfeffer, seconded by Ms. Knight to approve the Consent Agenda. Motion carried.
Finance Committee Report
In Mr. Judy’s absence, Mr. Hammond provided a summary of the Finance Committee meeting held February 28.
The Committee recommended closure of LY 5 (1993) since all claims are now closed. Motion by Mr. Pfeffer, seconded by Ms. Minecci, to close LY 5 once all funds have been recovered from the stop loss policy purchased for that loss year. Motion carried.
As a requirement of the AGRIP Pool Recognition Program, MVRMA must annually review its investment policy. At its February 28 meeting, the Finance Committee reviewed the MVRMA Cash and Investment Policy and recommended MVRMA begin investing in two-year treasury notes in order to maximize the pool’s return on investments. Mr. Hammond reported that staff had met with Mr. Gentner from Fifth Third Bank and had completed the necessary paperwork to begin making these investments. He further explained that Mr. Gentner will be invited to the next Finance Committee Meeting where MVRMA’s investment plan will be discussed in greater detail.
Mr. Hammond noted the five brokers (AON, Acordia, Marsh, Robert F. Driver and Willis Pooling) who were sent pre-qualifying questionnaires as part of this year’s broker RFP process. All but AON responded to the questionnaire, and Mr. Hammond shared a recap of the responses. He informed the Board that brokers will be given the option of quoting their fees for two years with an optional third year and/or three years with an optional fourth and fifth year. When the Board was questioned about whether to include all four brokers in the RFP process, they responded in the affirmative. The Finance Committee will conduct an interview with each broker who submits a proposal and will make a recommendation at the June 10 Board Meeting.
Staff was informed the Excess Flood Policy for Flood Zone B ($10M excess $5M) purchased 7/1/01 covers only buildings, not contents. To add contents to this policy would cost an additional $8,754. The Finance Committee recommended, and the Board agreed, to forego the contents coverage since the Board’s decision to purchase this policy was based on a premium of $11,250. Mr. Hammond explained contents would be covered by MVRMA’s SIR for the first $250,000, by the property policy for the next $500,000 and by the city for the remainder up to $5M. Ms. Knight, Trustee for the City of Troy with approximately $50M of property located in Flood Zone B, was in agreement with this decision.
Bylaws Committee Report
Mr. Hammond explained the review of the Agreement and Bylaws was prompted by a decision to eliminate the 10% New Member Fee. Since this change would require an amendment to the current Bylaws, Ms. Gregory assigned a committee to review the document in its entirety. A draft of the amended Bylaws and a summary of the recommended changes were included in the agenda packet. Subsequent to the agenda packet’s distribution, staff met with Mr. Surdyk, MVRMA’s corporate attorney, and the following additional changes were recommended:
Page 3 – Deleted the last sentence from the definition of Executive Director, “The President of the Association…by the Board of Trustees.”
Page 4 – Reworked the definition of Reinsurance to allow “for part or all…by the Association” to follow “agrees to indemnify the Association.”
Page 5 – Provided a new definition for Self-Insurance. Re-worded the definition for Self-Insurance Loss Fund.
Page 8 – Article V, subsection (a) Clarified the President’s responsibility to “preside at all meetings” and in the absence of an Executive Director, to be the Chief Executive Officer. Subsection (b) (1) Clarified the Board’s responsibility to hire the Executive Director, agents and independent contractors.
Page 12 – Article V, subsection (j) Provided a more accurate explanation of reimbursement for Board representatives who attend conferences on behalf of MVRMA. At the Meeting, it was suggested to change Article VI, subsection (a) as follows: “The dates of regular meetings of the Board shall be established prior to the beginning of each fiscal year.” Special meetings of the Board of Trustees may be called by the President, or by a simple majority of the Trustees.”
Page 13 – Article VII, subsection (a) Clarified the President’s responsibility to “preside at all meetings of the Board of Trustees” and in the absence of an Executive Director, to be the Chief Executive Officer.
Page 14 – Article VII, subsection (a) 5 Clarified the Executive Director’s responsibility to hire all employees.
Page 17 – Article VIII, subsection (e) Reworked the last sentence to read “The funds derived…in amount to fund the purchase of Excess Insurance, Stop Loss Insurance and/or Reinsurance, the administrative expenses of the Association and to create adequate reserves for the scope of Risk Management set forth herein and as may be determined by the members.”
Page 19 – Article IX Changed the first sentence to read “The Association shall provide…policies and any Reinsurance obtained from time to time…its members.”
Page 21 – Article X Deleted the word “excess” in the third paragraph.
Motion by Mr. Pfeffer, seconded by Ms. Lapensee, to approve the amended Agreement and Bylaws so long as a review by a tax attorney verifies the recommended changes do not compromise MVRMA’s tax exempt status. If the attorney recommends no substantive changes, a final amended copy is to be forwarded to each member city for approval by each city’s governing body. However, if any substantive changes are recommended, the amended Agreement and Bylaws is to be reviewed again at the June 10 Board Meeting for final approval. A rollcall vote was taken with all 15 members in attendance voting in the affirmative. Motion carried.
Risk Management Committee Report
This year Ms. Markworth will be conducting more “hands-on” training for OSHA and will be including specialists to discuss the various topics. Not wanting to discount the benefit of MVRMA’s CD Rom training, she and the Risk Management Committee are recommending conducting these sessions at the member city, specifically for the member’s employees. When requested, Ms. Markworth would run the equipment and handle the pre and post testing, but a well-versed city employee(s) would lead the discussion and answer questions as they pertain to their particular city’s circumstances. Ms. Trick reported her city (Vandalia) “tested” this format, and it was very well received. In fact, immediately following the presentation, Vandalia’s Fire Chief talked with Ms. Markworth about scheduling additional training. This format will be highlighted in the upcoming issue of Risky Business.
A three-day pursuit training program will be held in London, Ohio May 29-31. There is no cost for the actual seminar, but each attendee will be responsible for his own travel, food and lodging expenses. To encourage attendance at this program, MVRMA is offering ten $100 scholarships to help defray these costs. The scholarships will be given on a first come, first served basis. Ms. Markworth will be sending a memo to each member police department encouraging their attendance and application for the scholarships. Class size will be limited, so early registration is recommended.
Ms. Markworth informed the Board of a “Risks and Roads” program conducted by Doug Wyseman, who presented the very well received Parks and Recreation seminar last fall. She is trying to schedule this seminar, geared toward supervisors and administrative staff, for presentation later this year.
Ms. Markworth referred to the flyer included in the agenda packet which details the confined space training available through the Butler County Joint Vocational School. In conjunction with the MVCC, she has arranged a trip to the school on April 10 to learn more about the program. All interested parties are invited to attend. Member cities will contact the school directly to schedule this training.
Mr. Hammond referred to his recent memo concerning a teleconference seminar addressing the vulnerability and risks to public water and wastewater systems. Several member cities have requested to participate. Mr. Hammond is working with the City of Miamisburg to schedule the March 26 teleconference at that centrally located city.
Marsh USA Inc. Report
Mr. Milazzo stated the insurance market has somewhat stabilized. It doesn’t appear to be getting any worse; however, it is doesn’t appear to be getting any better either.
Ms. Beiter reported on the renewal of the Excess Flood Policy for Flood Zone B which will expire 6/30/02. The current policy was written by Royal. So far, Royal has not committed to renewing this policy, but Ms. Beiter will consult other markets if necessary. Right now it is difficult to get a firm premium quote because the property market is constantly changing, and many of the reinsurance treaties expire on 7/1/02.
Executive Director’s Report
Mr. Blair attended the NPX Board Meeting held at the AGRIP Conference in Savannah, Georgia last week. A discussion item of importance to MVRMA was determining the criteria for acceptance of new members. The Ohio Plan, which is in direct competition with MVRMA, had inquired about joining NPX. With the hardening insurance market, interest in NPX and its potential benefits has increased. The NPX Board agreed it was time to develop policies and procedures for accepting new members. Therefore, a Membership Committee was formed to evaluate those groups seeking admission.
Both Mr. Blair and Ms. Markworth attended the AGRIP Conference. Several sessions were devoted to the PRDP program, which had real relevance for Mr. Blair. He is currently integrating the PRDP interface into MVRMA’s claims program. PRDP will provide a national database for benchmarking claims activity in the future.
The idea of NPX establishing a captive was also discussed. A committee will be reviewing this possibility and will provide more information at the NPX Board Meeting to be held in San Antonio in May.
Mr. Hammond reviewed the Janiel vs. Beavercreek claim for which no lawsuit has been filed as yet. While crossing the street in his wheelchair, Mr. Janiel was struck by a police vehicle. Mr. Janiel, who lost his right leg as a child, suffered substantial injury to his left leg. He currently resides in an assisted living facility and may never be able to return home. The initial demand in this case is $539,000 which may be offset by $109,000 in medical bills. Motion by Mr. Parham, seconded by Ms. Knight, to authorize up to $500,000 to settle the Janiel claim. A rollcall vote was taken with all 15 members in attendance voting in the affirmative. Motion carried.
Ms. Gregory consulted the Board about whether to hold a strategic planning retreat again this year. Since there are no pressing issues, the Board agreed to forego a retreat in 2002 and consider holding one again during the April-June 2003 timeframe.
Mr. Parham questioned whether an increase for Awards breakfasts would be possible for the upcoming Awards program. Ms. St. Pierre noted an increase of $2 over the previous $6/person was included in the 2002 budget.
Having concluded its business for the day, the Board adjourned at 11:00 am.