 |
 |
|
|
OF
THE MIAMI VALLEY RISK MANAGEMENT ASSOCIATION
Time and Location
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; Michael Burns, Indian Hill; Nancy Gregory, Kettering; Julie Robinson, Madeira; Dody Bruck, Miamisburg; Kate Earley, Cheryl Hilvert and Terry Donnellon, Montgomery; Derrick Parham, Springdale; Sue Knight, Troy; Tom Reilly, West Carrollton; Dina Minecci, Wyoming; Robert Surdyk, Jenks, Surdyk, Oxley, Turner & Dowd; Kirk Bantz and John Milazzo, Marsh; and Kathy St. Pierre, Craig Blair, Don McGlothlin, and Michael Hammond, MVRMA.
David Watson, West Carrollton arrived at 9:15 am.
Consent Agenda Approval
Motion by Mr. Pfeffer, seconded by Mr. Burns to approve the Consent Agenda. Motion carried.
Ms. Gregory introduced and welcomed MVRMA’s new Loss Control Manager, Don McGlothlin, the former police chief for the City of Montgomery. She also welcomed back John Milazzo who has returned to the Marsh office in Cincinnati. John will be replacing Kirk Bantz as MVRMA’s Client Executive in July.
Risk Management Committee Report
Mr. Surdyk reviewed the Theobald vs. Montgomery lawsuit. An individual abandoned his vehicle on I-275 ¼ mile from the Montgomery exit. The vehicle remained there approximately 30 hours. (By law, the City of Montgomery is required to remove any abandoned vehicle within 48 hours.) An elderly gentleman, who had been driving intermittently on the berm, came upon the abandoned vehicle and swerved into the right-hand lane causing an accident which left Mr. Theobald paralyzed from the mid-chest down, blind and without the use of his arms and hands. The Federal Court has dismissed the lawsuit against the City of Montgomery and Hamilton County on the grounds that 1) the parked car was not a nuisance and 2) the car had remained alongside the roadway less than the 48 hours allowed by statute. The plaintiff has until Thursday afternoon (June 21) to appeal the Court’s finding. Because the plaintiff has nothing to lose and everything to gain, Mr. Surdyk is fairly certain the appeal will be filed, and there’s a good chance it will be granted. Mr. Surdyk asked the Board to consider a settlement offer not to exceed $100,000. He is hopeful the plaintiff will accept this offer as a means of covering expenses while the suit pending against the hospital and doctors who treated Mr. Theobald continues. Motion by Mr. Burns, seconded by Ms. Bruck, to authorize a settlement of Theobald vs. Montgomery in an amount not to exceed $100,000. A roll call vote was taken with all thirteen cities represented voting “yes.” Motion carried.
Ms. Hilvert and Mr. Donnellon, Montgomery’s City Manager and Law Director respectively, discussed their concerns regarding the existing Loss-Capping Policy. Because of the order in which claims are currently capped, the Theobald claim would be capped first at $35,000, and the $300,000+ tornado claim would be capped at $100,000. Ms. Hilvert and Mr. Donnellon would like the Loss-Capping Policy reviewed. Suggestions for possible changes included capping the worst loss first and counting weather related claims only once rather than three times. Ms. Gregory agreed to refer the review of this policy to the appropriate committee.
Before leaving, Mr. Surdyk mentioned he is currently working on an amicus brief on behalf of several pools and municipalities. It involves Wallace v. The Ohio Dept. of Commerce which seeks to challenge the constitutionality of both the public duty doctrine and the immunity provided under R.C. Section 2743. Mr. Surdyk asked if MVRMA would like to be named a participant in the brief. The expense of the brief will be shared by all participants, and MVRMA’s share would not exceed $1,500. Motion by Mr. Pfeffer, seconded by Ms. Knight, to participate in the aforementioned amicus brief. Motion carried.
Mr. Hammond reviewed the 2001 SPEC evaluations completed by Mr. O’Malley, MVRMA’s recently retired Loss Control Manager. Three cities were presented 2001 Pinnacle Awards for 100% compliance, Miamisburg, Montgomery and Troy. The Ascension Award, for the most improved evaluation, was awarded to the City of Beavercreek. Since awards had not been presented to the 2000 winners, they too were recognized at this meeting. The City of Troy received the 2000 Pinnacle Award, and the City of Wyoming received the Ascension Award.
Since MVRMA has an internal Voluntary Uninsured Motorist Coverage policy, it previously rejected UM/UIM coverage from the General Liability policy. However, recent Supreme Court decisions prompted the need for each member city as well as a MVRMA representative to sign new UM/UIM rejection forms. Motion by Ms. Minecci, seconded by Ms. Earley, to authorize the Executive Director to sign the UM/UIM rejection form for MVRMA. Motion carried.
Mr. Blair informed members of the Board the AIG EPL policy requires all EEOC notices to be reported so as not to prejudice coverage on a future claim or lawsuit. Any EEOC notices received since the first of the year should be reported to Mr. Blair.
Finance Committee Report
Mr. Reilly reviewed the Board’s concerns regarding Flood Zone B coverage. With the 2001 renewal, MVRMA’s Flood Zone B coverage was lowered from $100M annual aggregate to $500K annual aggregate. This limit is not sufficient to cover the City of Troy’s exposures (nearly $50M). Staff investigated possible alternatives and presented the various options to the City of Troy. The City of Troy was amenable to the recommendation presented by the Finance Committee. Motion by Mr. Burns, seconded by Mr. Parham, to purchase $10M excess $5M Flood Zone B coverage with an annual premium of $11,250, which will be in effect 7/1/01-7/1/02. Motion carried.
Mr. Reilly explained it is not possible for all cities to compute NOE on a cash basis. Therefore, the NOE calculation will not change. However, each city will now be asked to compute its own NOE and provide accompanying documentation. Mr. Pfeffer and his staff have agreed to review these calculations.
Mr. Reilly informed the Board of MVRMA’s option to renew its agreement with Marsh for a third year, effective August 11, 2001. At renewal, the fee for the third year will be reduced by $2,000 as provided in an amendment prepared by Marsh. This reduction is in lieu of Marsh’s assistance with the annual SPEC audits. Motion by Ms. Earley, seconded by Mr. Burns, to approve the third year renewal option of the Marsh Agreement and authorize the Executive Director to sign on behalf of MVRMA.
Awards Committee Report
Ms. Knight reviewed the results of this year’s Awards Program, which were included in the June 18th agenda packet. She noted no innovation award would be presented this year since neither of the two nominations met the criteria for the award. Motion by Mr. Pfeffer, seconded by Ms. Knight to approve the following awards:
Overall Winner: Wyoming ($42.64/employee)
Runner-up: Tipp City ($47.46/employee)
Departmental Winners: Police – Wilmington
Fire & EMS - Sidney
Water & Wastewater – Miamisburg & Wilmington
Parks & Recreation – Sidney & Springdale
Streets & Refuse – Beavercreek
Safety Performance Award Winners (Zero Losses 1998, 1999 & 2000):
Police – None
Fire & EMS – Wilmington (7 years), West Carrollton (3 years)
Water & Wastewater – Vandalia & Wyoming (7 years), Wilmington (6 years)
Parks & Recreation – Madeira (6 years)
Streets & Refuse – None
Award of Excellence Winners ($100 or Less/employee):
Mason ($78.65/employee)
Miamisburg (($97.35/employee)
Tipp City ($47.46/employee)
Vandalia ($73.78/employee)
Wyoming ($42.64/employee)
Award of Excellence – Consecutive Years:
Miamisburg –1998-2000
Vandalia – 1999-2000
Motion carried.
Mr. Pfeffer reported the results of the Membership & Marketing Survey recently completed and recommended, on behalf of the M&M Committee, the addition of four cities to the Approved List. Motion by Ms. Knight, seconded by Ms. Trick, to add the cities of Bellbrook, Centerville, Englewood and Piqua to MVRMA’s Approved List. Motion carried.
Mr. Hammond noted MVRMA received requests for insurance proposals from the cities of Clayton and Centerville. The M&M Committee did not wish to pursue Clayton for membership at this time. As a newly incorporated city, it would not have enough loss experience to determine its compatibility with the other members of MVRMA. Mr. Hammond will stay in touch with Dave Rowlands, Clayton’s City Manager, with the possibility of providing a proposal at a future renewal. Because of past experience with MVRMA, Mr. Rowlands is very much interested in membership. The request from Centerville is its second since 7/1/93 and will therefore require a $100 application fee. Mr. Hammond met with Centerville’s Finance Director to discuss the proposal, and the Finance Director agreed to pay the fee. Staff will continue to accumulate the information necessary to provide a proposal to the City of Centerville.
Mr. Bantz gave a brief overview of the effects of the tightening insurance market. He noted as of June 1, 57% of Marsh clients were experiencing rate increases of 15-50%. Many of the reinsurance treaties are currently being negotiated, and any increases to insurance companies will be passed on to consumers directly. The property market is currently very unstable. This year it will be more important than ever that applications provide as much information as possible. Sloppy or incomplete applications will not get the attention or consideration that is needed from the underwriters.
Marsh will start early to place MVRMA’s 2002 property program. In addition to the regular markets, another alternative may be available through the property pool Marsh hopes to have up and running by the third quarter of this year. MVRMA’s casualty program will be entering the third year of its rate guarantee, but Marsh plans to begin discussions with Discover Re early in hopes of securing a similar arrangement for the future.
Mr. Bantz informed the Board that Senate Bill 97 had passed the Senate and was expected to pass the House. This legislation was introduced to remedy numerous adverse Ohio Supreme Court rulings that have greatly expanded the scope of Uninsured/Underinsured Motorists insurance.
Mr. Milazzo added some additional information regarding property insurance. He noted there are currently several unresolved property lawsuits resulting from Y2K. GTE has a $400M lawsuit for Y2K coverage under its property program. Other suits may be filed pending the outcome of this case. The resolution of these suits could greatly impact the cost of property insurance.
Mr. Hammond noted the Actuarial Study for the Year Ended December 31, 2000 has been distributed to all members. The Financial Audit had not been completed as of the Board Meeting but was expected before the end of the week. Motion by Mr. Pfeffer, seconded by Ms. Knight, to approve the Actuarial Study for the year ended December 31, 2000. Motion carried.
Mr. Hammond provided copies of a “Tentative Agenda” for the July 9th Strategic Planning Meeting and asked for feedback from the group on any other topics that should be included. Mr. Parham expressed an interest in discussing the 10% New Member Fee as it relates to marketing the MVRMA program. Dan Cullen, head of the Public Practices Group for Marsh, will be the facilitator. All city managers have been invited as well as both the Trustee and Alternate from each member city. A continental breakfast will be available from 8:30-9:00, and lunch will also be provided.
Mr. Hammond recently attended his first Annual PRIMA/AGRIP Conference in Chicago. He thanked the Board for this opportunity and reported some of the highlights of his trip. His four days in Chicago included two AGRIP Board meetings as well as several pool related sessions.
E-mail addresses were distributed for all MVRMA staff. Mr. Watson asked if staff could be assigned email addresses to coincide with the MVRMA website address (i.e., kstpierre @mvrma.com). Staff will research this possibility and report their findings.
Mr. Hammond informed the Board that Robert F. Driver Co. recently merged with Alliant Resources Group, a national distributor of property, casualty and health insurance and other financial service products. Driver will continue to operate as it currently does with existing management.
At 11:04 am there was a motion by Ms. Earley, seconded by Ms. Knight, to recess into Executive Session to discuss the performance and compensation of the Executive Director. Motion carried.
At 11:17 am there was a motion by Mr. Pfeffer, seconded by Mr. Parham, to adjourn from Executive Session and return to Regular Session. Motion carried.
Personnel & Compensation Committee Report
Ms. Gregory instructed Ms. St. Pierre to make the CPI adjustment for the Executive Director’s salary range at the same time other staff adjustments are made (when the annual budget is completed).
Motion by Ms. Trick, seconded by Ms. Earley, to approve a 5% increase for the Executive Director effective 7/1/01. Motion carried.