Risky Business

May 2010

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FYI:

-Mike Hammond

MVRMA is pleased to announce it has become a sponsoring risk management association for Lexipol, the country's leading provider of risk management resources for law enforcement.

Lexipol currently serves more than 950 law enforcement agencies in nine states, including more than 93% of the agencies in California. Lexipol will be available in Ohio later this year.

Lexipol's legal staff and law enforcement professionals work in collaboration with law enforcement representatives within the state to develop more than 140 essential policies to meet all key operational needs. Using Lexipol's interactive online software, each subscribing agency is able to develop a policy manual unique to its own mission, philosophy and resources. Having good policies is critical - during the last 12 years, Lexipol's subscribing agencies have never lost a court case based on faulty policy!

Once an agency's policy manual is adopted, it may then subscribe to Lexipol's Daily Training Bulletin service. This service, which is integrated with the policy manual, delivers scenario based training focused on topics of high risk, low frequency and policy changes. Having a good policy manual is important to a police department, but its value is lost if officers don't have a working knowledge of its applications.

Keeping track of changing laws, court decisions and best practices in law enforcement is a difficult and time consuming task far beyond the resources available to most police departments. Lexipol provides this resource by sending urgent updates when needed and regular updates twice annually.

Police departments participating in CALEA may find this service both beneficial and cost effective. In many instances, accreditation has seemed an all-consuming task. But, with Lexipol, an agency's policy manual can be formatted to be compliant with CALEA accreditation standards.

By becoming a sponsoring risk management association for Lexipol, MVRMA members are able to obtain discounted pricing. Member participation is optional and each member is responsible for its own cost. However, participating members have the option of using their MVRMA General Reserve Funds to pay all or a portion of the annual cost.

We believe Lexipol offers several advantages to police departments, including the potential for reducing police liability exposure and claims cost, as well as cost avoidance by limiting the need for in-house staff to develop and update polices. In addition, the use of the Daily Training Bulletins is an important feature of loss mitigation.

Currently, the MVRMA members of Bellbrook, Montgomery, Piqua, Wilmington and Wyoming have indicated they are planning to utilize the services of Lexipol. Additionally, the Police Chiefs at Piqua and Wyoming are serving on the advisory team to develop state specific content, referencing state statutes and determining best practices for leading police departments in Ohio.

"Knowledge renewal is required to stay abreast of the changing world of public safety. Monitoring change, interpreting the significance and translating those components into a practical application tool set is one of the greatest values Lexipol provides to clients," states Dan Merkle, CEO of Lexipol.

MVRMA is pleased to be able to sponsor Lexipol as a risk management resource for our member police departments. If you would like more information about Lexipol or the discounted pricing, contact our office.

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Counselors' Comments

 - Surdyk, Dowd & Turner

In Kennedy v. City of Cincinnati, the United States Sixth Circuit Court of Appeals addressed whether city officials/officers could be held liable for expelling an individual from municipally owned recreational property without procedural due process of law.

In Kennedy, the plaintiff possessed a $10.00 pool pass to a Cincinnati Recreation Center (CRC) swimming pool in the Cincinnati neighborhood of Mt. Washington. The Mt. Washington swimming pool is located next to an elementary school. CRC staff received complaints that the plaintiff watched children swimming in the pool. Furthermore, staff at the elementary school received complaints that the plaintiff was "lurking and staring" at young children.

Cincinnati police officers were summoned to the CRC swimming pool to investigate. The investigation revealed no outstanding warrants and that the plaintiff was not listed as a sexual predator. The officers were asked by the manager of the Mt. Washington swimming pool to remove the plaintiff, confiscate his pool pass and ban him from all CRC property (e.g. parks, pools and schools).

The plaintiff filed suit claiming that he was deprived of (1) a protected property interest in his $10.00 pool pass and (2) a liberty interest to enter into and loiter upon publicly owned property. The Sixth Circuit held that the plaintiff did not have a property interest in his membership to the pool. The Court held that deprivation of a $10.00 pool pass was too insignificant of a property right to invoke the protections of the federal Due Process clause.

The Court determined that an indefinite removal from all CRC property constituted a deprivation of a protected liberty interest. The Court considered the indefinite removal of the plaintiff a "partial banishment" and, therefore, tantamount to a criminal punishment or sanction. Though not expressly stated in the opinion, the Court took issue with city officials/officers permanently banishing the plaintiff from public property without notice or a hearing. As such, the Court determined that the plaintiff had protected liberty interest to "remain in a public place of his choice," and the City officials deprived him of this interest without due process. 

The Sixth Circuit's decision in Kennedy, while reaffirming the notion that a property interest must be significant before a due process violation exists, has nonetheless adopted a very broad definition of what constitutes a "liberty interest." In light of Kennedy, any attempt to permanently ban a person from public property, without notice or a hearing, may subject the municipality and its officials to a potential due process claim.

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The Claims File

- Craig Blair

Training is a Must!

With the current economy, most of our members have had to rethink their expenditures, from reduction of services to eliminating programs and even reducing their workforces. This summer, many of our cities will hire fewer seasonals or possibly none at all. While in the past we were concerned about training our seasonal help, this year may require training for long-term employees whose job responsibilities have changed.

In order to reduce or avoid claims, any employee who is shifted to new duties should be given a refresher course. For example, an employee who is moved from debris removal to tree trimming should be given chain saw training that includes instruction on the use of the equipment as well as the protective gear required. An employee who is driving a truck for the first time may need to be reminded of such driving concerns as securing loads and being aware of his surroundings before backing up.

Road crews are always a necessity in summer months. For these workers, whether new to the position or not, a Work Zone Safety class is always recommended. The proper use of signage in these situations not only protects the city's employees, but also cuts down on the number of claims for cars that drive through wet paint or asphalt.

MVRMA's video library, the on-line TargetSafety driving program and the classes offered by MVRMA are excellent resources for training new employees or retraining existing employees. Please contact the MVRMA office for assistance with your training needs.

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Loss Control Lowdown

-Starr Markworth

The Ohio Booster Seat Law

The Ohio booster seat law was recently amended and went into effect April 7, 2010. The changes in the law may have an effect on some city functions or activities that involve transporting children.

The law now requires that any child younger than eight years of age and less than four feet nine inches in height must be properly secured on a booster seat that meets the federal motor vehicle safety standards. The only exemptions are a taxicab or public safety vehicle. Any vehicle that is equipped with seatbelts at the time of manufacture or assembly must comply with the booster seat law.

A booster seat does what its name implies. It literally "boosts" the child higher in the seat so the seat-belt system can work the way it's supposed to. The seat-belt system is designed to go over bony parts of the body, and the shoulder strap fits snugly across the chest. This design focuses the impact during a crash on the sturdiest parts of the body, instead of the soft tissue areas of the belly and neck.

According to the Ohio Department of Public Safety, car crashes are the leading injury-related cause of death for children ages four to eight in Ohio. Booster seats have been proven in studies to reduce the chances of significant injuries for children ages four to seven.

If city activities require the transport of children younger than eight years of age and less than four foot nine inches in height - it is necessary for each child to be secured in a booster seat. Violation of the Ohio booster seat law is a minor misdemeanor.

Two types of booster seats are available. Many children already use a combination child seat/booster seat, which uses a harness while the child is a toddler. When the harness is removed, it can be used as a high-back booster seat. The other type of seat is a low-back or no-back version.

Booster seats typically cost $20 to more than $50, with the low-back or no-back versions being more affordable.

For more information: www.boostohiokids.org

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Brokers Beat

When you read through the MVRMA Liability Coverage Document, you will notice there are many exclusions, in fact, more than six pages of exclusions. In many cases, the excluded exposure is catastrophic, such as Nuclear, War and Terrorism, and it's very difficult to transfer the risk for these exposures to an insurer. However, a number of other exclusions are excluded because coverage is more readily available under a separate policy. In this article, we will focus on some of these liability exclusions and address some of the coverage alternatives.

Workers' Compensation and Employee Injury - This coverage is picked up under Workers' Compensation coverage required and offered through the State of Ohio. Workers' Compensation is a highly regulated coverage line, and most states mandate that it be underwritten and issued as a separate policy.

Property of Others in your Care, Custody and Control - Coverage for this exposure is found under the MVRMA property coverage where it is addressed as first party coverage or legal liability coverage depending on the contractual arrangement, if any, for the property in question.

Aircraft, Airport and Aviation Operations - Coverage is available under specialized aviation policies where underwriters are trained in identifying and pricing aviation exposures. The exposure addressed by aviation underwriters can be complicated and diverse, ranging from small airports without control towers to large international airports, and it can include operations involving balloons, hang gliders and helicopters. There are at least five major carriers that specialize in underwriting aviation coverage.

Medical Professional Liability - The intent of this exclusion is to exclude coverage for physicians and dedicated medical care facilities while still providing coverage for the manageable exposures such as paramedics, EMTs and public health nurses that are common to municipal entities. However, coverage for physicians and medical care facilities, while potentially catastrophic and highly specialized, is available within the insurance industry.

Watercraft - The intent of this exclusion is to cover watercraft less than 30 feet in length which is the less risky part of the marine exposure and allows coverage for small boats which are a common municipal exposure.  Coverage for vessels larger than 30 feet can become very complex and requires very specialized underwriting expertise to identify and price the exposure. Coverage for larger marine exposures can also involve interaction with international maritime law and can include operations with passengers for hire, ship repair facilities and complex interaction with federal worker statutes. Never the less, marine coverage for larger risks is available within the industry.

Pollution - The intent of this exclusion is to exclude coverage for larger pollution exposures that are already present but unknown to the insured. The intent is also to carve out and provide coverage for sudden and accidental pollution accidents along with some of the more customary pollution exposures common to public entities such as hostile fires, collision upset or overturn of automobiles, chlorine leaks, pesticide/herbicide operations and sanitary or storm sewer backups. Otherwise, pollution insurance is available for both known and unknown pollution exposures through at least five major carriers. Again, the underwriting of this class of insurance is very sophisticated and requires underwriters that have extensive training and backgrounds in environmental studies and regulations.

You will notice some common threads here. For the most part, the MVRMA Liability Coverage Document attempts to carve out coverage for the less risky part of the exclusions that are common to municipal entities. At the same time, MVRMA leaves the more complex and risky coverage to be purchased elsewhere within the industry under separate coverage lines and policies where specialized and sophisticated underwriting is available to evaluate exposures and price them accordingly.

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Coming Events

May 5-6, May 13-14, June 3-4

NAPD Driver Training

May 18

Back Safety

May 19

MS Excel

May 20

Workplace Violence

June 6-9

PRIMA Annual Conference

Orlando, FL

June 16

MS Power Point

June 21

MVRMA Quarterly Board Meeting

June 30

Fall Protection

July 7

MS Access

(For More Information, Call the MVRMA Office 937/438-8878)

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Workplace Violence

On May 20, MVRMA/MVCC will sponsor two sessions on Workplace Violence. This three-hour training will be held at the Miami Valley Communications Council offices and is available to members of either organization at no cost.

Work can be stressful, but it shouldn't be dangerous. Violence in the workplace is a problem you can't ignore no matter where you're employed. Protect yourself by recognizing these warning signs of possible danger from a co-worker:

l Aggressive behavior, like bullying, harassment or intimidation

l Frequent conflicts with co-workers, bosses, suppliers, customers, etc.

l Weapons - bringing a weapon to work unless it's required for the job, or talking about guns or other weapons inappropriately

l Fascination with violence, particularly with incidents of workplace violence in the news or support of using violence to solve problems

l Major changes in behavior - a normally outgoing colleague suddenly becomes quiet and withdrawn, for example

l Evidence of extreme stress or depression

l Substance abuse

l Sudden lack of attention to safety

l Threats of violence or harm

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Got a Successful Risk Management Program?

This year, the Public Risk Achievement Awards are being implemented as part of MVRMA's Safety Awards Program. Member cities will have the opportunity to share their accomplishments with their peers and possibly win a cash award. The city winning for Innovation in Public Risk Management will receive $1,000, and the winners of the Outstanding Achievement for a Public Risk Management Program will each receive $500. Applications are due soon. Please contact the MVRMA office for more information.

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A Community Partnership

- Jennifer Heft, Mason Assistant City Manager

Mason Assistant City Manager In 1999, the City of Mason began exploring partnership opportunities with Mason City Schools for the construction of a Community Center. In March 2003, that partnership, which includes the City's ownership of the land, the Schools' ownership of the facility (financed through a bond levy), and the City's operation of the facility, ignited Mason's efforts toward building a healthier community and organization.

The culmination of years of collaboration between Mason City Schools and the City of Mason is a Community Center that is one of the largest in the State of Ohio. It offers recreational services to residents of the city and the school district.

In 2007, the City began exploring the concept of adding a wellness component at the Community Center. In October of that year, the City selected a proposal from TriHealth that would advance both the financial position of the Community Center and the programming and fitness benefits available to Mason residents and the City's corporate business partners.

Mason's partnership with Group Health Associates, TriHealth and Bethesda Rehab is without peer in the region for a public-private sector partnership where a community center is integrated with a medical component to bring a comprehensive approach to wellness for the Mason residential and corporate community. This partnership also includes additional opportunities to spur local job creation, enhance membership-revenue growth, share operating expenses and set the groundwork for additional community amenities and partnerships. Some of the direct physical changes to the Community Center that will result from this partnership include: approximately 27,000 square feet of medical office space, 4,000 square feet of rehabilitation and therapy space, a new fitness floor (nearly three times its current size), a warm water therapy pool, a new multi-purpose gymnastics room, new flexible open programming space, a "Main Street" entrance to enhance traffic flow and provide additional cross-marketing opportunities for local businesses and community groups, expansion space for the possibility of additional complementary tenants and an expanded Kids Korner area.

There is likely no other private-public partnership of this kind in the country. Mason is at the forefront in its commitment to enhance health and wellness benefits for residents, corporate partners and employees. In the current economy, quality of life amenities are playing a growing role in a company's ability to attract the workforce it needs for success. Efforts to build a healthier residential and business community were confirmed with Mason's recent ability to attract a new business, Rhinestahl, to the city using the Community Center for an additional incentive.

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2009 Annual Report

Miami Valley Risk Management Association

2009 Annual Report

Mission Statement: The mission of the Miami Valley Risk Management Association is to deliver high quality risk management services to its member municipalities in a manner which provides long-term financial stability, minimization of risks, and protection of mutual interests.

Vision Statement: The vision of the Miami Valley Risk Management Association is to be the premier property and liability insurance pool for member municipalities in Ohio.

The Executive Director’s YEAR IN REVIEW

MEMBERSHIP - The Association continues to operate as a regional property and casualty insurance pool for qualified municipalities in Southwestern Ohio. MVRMA has maintained 20 members since 2004, and we are quite proud that no member has ever withdrawn in our 21 year history. MVRMA members are considered some of the better managed municipalities in the area with a strong commitment to the concepts of risk management and loss control.

BOARD LEADERSHIP & ADMINISTRATION - MVRMA’s Board Officers and committee structure, led by President Tom Reilly, West Carrollton, provide leadership for achieving effective governance. Because of their knowledge and expertise in municipal administration, the Trustees contribute significantly to the success of our program. Every MVRMA member was represented on at least one committee and actively participated. An experienced and dedicated staff consists of four full-time employees including: Executive Director, Administrative Assistant, Claims Manager and Loss Control Manager. MVRMA has built a strong foundation from operational strength and efficiency.

COVERAGE - MVRMA maintained a $1 million self-insured retention for its casualty program. Government Entities Mutual, Inc. (GEM), an association sponsored captive reinsurer, provided an additional $1 million in reinsurance coverage, with General Reinsurance Corp. providing another $8 million in reinsurance. MVRMA was pleased to begin its partnership with Gen Re, an A++ rated company considered to be a premier public entity reinsurer. Property coverage was again placed with Public Entities Property Insurance Program (PEPIP), a proprietary program of Alliant Insurance Services, Inc. PEPIP is the world’s largest public entity property program. Lexington Insurance Company is the lead insurer, providing coverage for the first $25 million. Various insurers make up the balance of the $1 billion per occurrence coverage limit. MVRMA’s self insured retention increased to $250,000 in July 2009. National Union Fire Insurance Company (AIG) continued to provide crime coverage with limits up to $1 million per occurrence.

2009 HIGHLIGHTS

· Held a Strategic Planning Retreat

· Acquired software to meet the Medicare Secondary Payer reporting requirements.

· Renegotiated the MVRMA office’s lease and option to purchase agreements

· Extended Executive Director’s contract until July 1, 2012

· Closed LY15 (2003) and returned $1,608,800 to the members

· Repealed the Voluntary UM/UIM coverage beginning 2010

· Received the "Making Your Tax Dollars Count" award from the State Auditor’s office

· Adopted a Code of Conduct Policy to conform with AGRIP Advisory Standards

-Michael Hammond, Executive Director

BALANCE SHEET

                                2009 (Unaudited)                                       2008

ASSETS:

Cash and Cash Equivalents                                         $7,302,749                                     $5,098,510

Claims Deductibles                                                               43,956                                            89,892

Other                                                                                     128,125                                          136,042

Prepaid Items                                                                      156,453                                          129,250

Property and Equipment, Less Depreciation                     10,400                                           11,136

 Investments                                                                    10,630,265                                   11,651,201

Total Assets                                                                  $18,271,948                                $17,116,031

LIABILITIES AND NET ASSETS:

Claims Reserves                                                           $4,399,570                                   $5,030,870

Members’ Refunds                                                          2,217,481                                     1,096,192

Members’ Credits                                                                 30,002                                          96,500

Accounts Payable and Accrued Liabilities                        16,611                                          11,912

Total Liabilities                                                              $6,663,664                                  $6,235,474

TOTAL NET ASSETS:                                               $11,608,284                               $10,880,557

CLAIMS INFORMATION

Property and Liability Insurance Claims Cost

As of March 31, 2010

Year           # of Claims           Indemnity                    Defense                Incurred Claims Cost         Avg. Per Claim

2003                 416                   $ 553,661                    $ 150,433                       $ 704,094                                $ 1,692

2004                 354                   $ 404,001                    $ 338,998                       $ 742,999                                $ 2,098

2005                 354                   $ 618,384                    $ 499,961                    $ 1,118,345                                $ 3,159

2006                 315                   $ 933,463                    $ 388,820                    $ 1,322,283                                $ 4,197

2007                 371                   $ 694,939                    $ 269,715                       $ 964,654                                $ 2,600

2008                 408                   $ 965,203                    $ 126,014                    $ 1,091,217                                $ 2,674

2009                 303                   $ 411,634                      $ 65,916                       $ 477,550                                 $ 1,576

Annual Avg.   360                   $ 654,469                     $ 262,837                     $ 917,306                                 $ 2,571

Incurred claims cost includes paid expenses (indemnity and defense) plus any amount reserved for future expenses related to the claim. If a claim is still open due to litigation, additional expenses may be paid in the future. For the purpose of this chart, claims represent the number of events that occurred during the coverage period and will be less than the claims count when compared to the chart below.

Claims by Type of Claim

As of March 31, 2010

Year                Auto Liability                  Auto Physical Damage                 General Liability            Property

2003              $ 168,869 (117)                          $ 170,423 (98)                          $ 269,762 (148)           $ 95,040 (87)

2004                $ 49,417 (86)                               $ 97,431 (90)                          $ 463,961 (119)         $ 132,190 (88)

2005              $ 235,834 (97)                             $ 114,621 (88)                         $ 513,042 (129)          $ 254,849 (81)

2006              $ 145,431 (70)                             $ 192,105 (94)                         $ 679,641 (107)          $ 305,105 (80)

2007              $ 281,519 (98)                             $ 168,954 (78)                         $ 277,243 (143)          $ 236,937 (85)

2008              $ 109,446 (75)                             $ 144,146 (62)                         $ 206,853 (169)          $ 630,772 (114)

2009                $ 38,622 (55)                             $ 141,877 (85)                         $ 112,081 (105)           $ 184,970 (86)

Total          $ 1,029,138 (598)                       $ 1,029,557 (595)                    $ 2,522,583 (920)        $ 1,839,863 (621)

Ann. Avg.     $ 147,020 (85)                            $ 147,080 (85)                          $ 360,369 (131)           $ 262,838 (89)

Per Claim          $ 1,721                                        $ 1,730                                       $ 2,742                         $ 2,963

Note: The numbers in parentheses reflect the number of claims for each type. Since some claims are charged to multiple types, the claim counts will be somewhat higher when compared to the chart above. Due to governmental immunity and insurance offset provisions, the cost of each claim is typically less than industry standards.

LOSS CONTROL ACTIVITIES

                                                     2005             2006             2007              2008            2009

Liability and Safety Classes                    36                 29                  37                   25                41

Individual Participants                              907               1012             1096               882             1300

Video Library Usage                                208               143               167                 159              175

Members Using Videos                          17/20             17/20            17/20             17/20           12/20

Risk/Needs Assessments                      19                   19                 18                   20                 19

　

　
From the Board Room...

At the March 15, 2010 Quarterly Board Meeting, the following actions were taken:

- Approved the Open Claims and Incurred Losses Report

- Approved a two-year contract with TargetSafety for online training

- Approved MVRMA's participation as a sponsoring organization for Lexipol

- Approved MVRMA's AGRIP Advisory Standards Recognition Application

- Approved the renewal of the brokerage agreement with Alliant Insurance Services
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