MISSOURI INTERGOVERNMENTAL RISK MANAGEMENT ASSOCIATION BOARD OF DIRECTORS MEETING FRIDAY, FEBRUARY 5, 2016 MINUTES

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1 MISSOURI INTERGOVERNMENTAL RISK MANAGEMENT ASSOCIATION BOARD OF DIRECTORS MEETING FRIDAY, FEBRUARY 5, 2016 GENERAL AND ATTENDANCE MINUTES A regular meeting of the Board of Directors of the Missouri Intergovernmental Risk Management Association was held on the above date at the Hilton Garden Inn in Columbia, Missouri. The Chairman of the Board called the meeting to order at 10:00 a.m., and asked for introductions of all in attendance. Those in attendance were as follows: Board Members Derek Brown Albany Russell Rost Union Jennifer Schmidt Tipton Greg Hodge Moberly Jeanette Yount Arnold Zach McLeland Macon Amy Strough Maryville Phillip Shatzer Paris Rodney Bourne Rolla J.J. Wiseman Jackson Official Representatives Lee Barker Higginsville JJ Wiseman Jackson Tim Lacy Shelbina Other Representatives Mark Hickerson Hannibal Utilities Lee Barker Higginsville Jill Rickman Kennett Utilities Brian Crane Moberly Dennis Klusmeyer Shelbina Tim Lacy Shelbina Debbie Hopke Vandalia MIRMA Staff Matthew Brodersen - Executive Director Patrick Bonnot - Loss Control & Member Services Director Jeff Arp - Loss Control Specialist Kelly Beets - Senior Loss Control Consultant Ray Lentz - Claims and Litigation Director Terri Crane - Finance Assistant Jenne Auck Finance Director 1

2 Gina Viertel - Senior Workers Compensation Adjuster Susan Cannady - Claims Administrator OLD BUSINESS Item #1: Approval of the minutes of the Board of Directors Meeting held November 6, 2015 was brought before the Board. Copies of these minutes had been distributed to the Board prior to this meeting for their review. Zach McLeland of Macon made a motion to approve the minutes as presented. Phillip Shatzer of Paris seconded the motion and it carried unanimously. Item #2: Approval of the Closed Session minutes of the Board of Directors Meeting held November 6, 2015 was brought before the Board. Copies of these minutes had been distributed to the Board prior to this meeting for their review. Greg Hodge of Moberly made a motion to approve the minutes as presented. Jennifer Schmidt of Tipton seconded the motion and it carried unanimously. Item #3: Review of the coverage packet changes for fiscal years and to restore general liability excess coverage was brought before the Board. The Executive Director recapped the Board approval given at the November 6, 2015 board meeting to purchase excess general liability coverage from the current carrier, Genesis, for fiscal years and restoring the occurrence based coverage for fiscal years However, Genesis has not yet provided acceptable policy language so no action was taken on this item. NEW BUSINESS Item #1: Adoption of a resolution authorizing the Executive Director to execute a contract with Ellis and Associates for continued Aquatic Risk Management Services was brought before the Board. The Loss Control & Member Services Director explained that Ellis is on a three year contract. Ellis audits will go up $55.00 from $ to $ and remain flat during those three years. MIRMA also pays a retainer which is going up $500.00, from $5,500 to $6, and then also remains flat. Training fees will remain the same for this three year contract. It was asked if Ellis and Starfish are the only two options available, and if the membership has problems with either. The LC&MS Director stated there are minor issues with both. Red Cross is another provider that many members use, who is good but may not be as innovative as Ellis and Starfish. Starfish was a spin-off from Ellis in order to service smaller pools when Ellis began focusing more on waterparks. Slightly more members use Ellis than Starfish. 2

3 Russell Rost of Union made a motion to approve Resolution for Ellis services. Greg Hodge of Moberly seconded the motion and it carried unanimously. Item #2: Adoption of a resolution authorizing the Executive Director to execute a contract with Starfish for continued Aquatic Risk Management Services was brought before the Board. The Loss Control & Member Services Director explained that costs will increase on audits by approximately 5% each year. The audits will be $1,000 for 2016, $1,050 for 2017, and $1,100 for The Train the trainer fees will be $475, $500 and $525 over the three year period, and is currently $475. The LC&MS Director explained that there are no retainer fees in the contract which makes the price fairly comparable to the Ellis program. Jeanette Yount of Arnold made a motion to approve Resolution for Starfish services. J.J. Wiseman of Jackson seconded the motion and it carried unanimously. Item #3: Adoption of a resolution amending the Missouri Intergovernmental Risk Management Association Money Purchase Plan and Trust was brought before the Board. The Finance Director stated that there are no changes to the basic plan provisions, but the IRS requires all plan documents to be restated every six years to incorporate legislative changes. The amended plan incorporates language from the HEART/WRERA amendment (2010) and the PPA amendment (2009) that were previously adopted. The Finance Director stated there are no changes that affect the day-to-day operation of the plan. Amy Strough of Maryville made a motion to approve Resolution to approve the amended plan document and summary plan description. Zach McLeland of Macon seconded the motion and it carried unanimously. Item #4: Appointment of a financial committee to review MIRMA s Financial Management Policy. The Executive Director stated that a committee was put together to review the policy and investments about four years ago. The Finance Director would like to appoint a committee to fully review the policy and investments. The Executive Director stated the committee may need to revise the policy on collateralization. The Division of Finance stated that the bank is not allowed to collateralize MIRMA s deposits because they do not interpret MIRMA to be a political subdivision. The Chairman of the Board appointed the Committee members as follows: Greg Hodge, Moberly; Steffanie Rogers, Rolla; Katie Jeffers, Chillicothe; Troy Royer, Neosho. REPORTS AND PRESENTATIONS Item #1: A review of the status of large, outstanding claims was brought before the Board. The Claims and Litigation Director presented to the Board a list of current claims that MIRMA is handling with a total incurred loss of over $250,000. He stated that there was a recent work comp claim 3

4 hearing that went as bad as it could possibly go, which ruled for a perm-total. MIRMA will appeal but the claim may end up on the large loss list, which would make two perm-totals added this year. The Claims and Litigation Director stated the wrongful incarceration claim from Chillicothe has been settled and just waiting on the final paperwork. The seven EPL claims have all settled, so those should be paid and dropped off the large loss list within the next days. The large property loss for Chillicothe Utilities has been partly paid, and the boiler and machinery claim from West Plains will exceed the $500,000 SIR so he is waiting on Travelers approval to finalize the claim. The Claims and Litigation Director stated that the recent flooding event will also exceed the SIR and will be on the large loss report at the next board meeting. Item #2: A review of the investment activity, procedures and performance was brought before the Board. The Finance Director referred to the list of investments at December 31, 2015 and 2014 that was given to the Board. The CDs provide the monthly cash flow needed to fund MIRMA s claims and operations. The rest of the portfolio is a good mix of agencies and mortgage-backed securities. The Finance Director stated that the list of investments will be reviewed when the finance committee meets. Item #3: Conveyance of the Loss Control Services Report for the period ended December 31, 2015 was brought before the Board. The Loss Control and Member Services Director stated that the evaluations are in progress. The loss control department will focus on safety and firearms training next quarter. Item #4: A report on the discussions held at the Board s Strategic Planning Retreat held in Columbia the day before, on February 4, 2016, was brought before the Board. The Executive Director gave a brief overview of the discussions from the day before. The Executive Director stated the Board and staff discussed the $10,000 property deductible for traffic lights and pedestrian signals and decided to leave the deductible as is. In the fall, the awards committee and board had approved a prerequisite of car and body cameras for the police departments before a member is eligible to apply for other award items. The Board discussed the prerequisite and would like to have the police committee review when it meets in the spring to determine if this requirement should be amended. The Executive Director stated that the Board and staff discussed the possibility of a Missouri-based attorney replacing the services provided by HR Helpline/Enquiron, in order to provide local human resources counsel. Staff will check into the cost of this option and report to the Board. The Executive Director explained that there is an auto liability exclusion that some commercial insurers have adopted. The board did not want to adopt the exclusion. The $10,000 defense-only limit was discussed and determined to be a sufficient level of coverage. The EPL limits were addressed as being MIRMA s lowest limit. Staff will check into prices to add another $1 million of excess coverage above the $1 million SIR, with a $2 million aggregate. The Executive Director stated there was discussion of the use of a sewer backup program to help citizens during a backup when there is no liability from the member. It would not be practical for MIRMA to be involved in the administration of such a program, but it could be addressed by the members if they 4

5 chose to input a program within their cities. It was discussed if MIRMA should add language to the coverage packet that would limit MIRMA to the SIR if an excess carrier did not fulfill their obligations. It was decided not to add any language. MIRMA will add language to the coverage document that is intended to discourage the use of a 537 agreement by a plaintiff. The Executive Director stated that the health committee members were reviewed and it was determined that the Board members on the committee should be replaced since their cities did not participate in the health program. The Chairman removed Amy Strough, Maryville and J.J. Wiseman, Jackson and replaced them with Jennifer Schmidt, Tipton and Russell Rost, Union, to be effective immediately. The Executive Director stated that the staff and Board also reviewed the strategic goals that were accomplished during the year. Item #5: A report on the Health Program was brought before the Board. The Executive Director stated there were 26 proposals given in the fall of 2015, of which 24 were proposals to current MIRMA members. Of those, 11 joined the Health Program and they will be saving $562,000 or 12.5% based on max funding, and it was estimated that the program would save those members approximately $1.2 million or 26.8% based on the expected losses. The 11 members have a total employee count of 408 lives. Most groups that did not join were in grandfathered plans which are set to expire in October, There were four groups that are self-funded but would like to investigate the Health Program after it has been in place for a few years. The Executive Director will be giving 13 more proposals by July 1 st, and more again in the fall. MIRMA will be providing a luncheon to discuss the Health Program to interested parties at the CCFOA conference in March, and will also discuss again at the Annual Meeting. The Executive Director stated that the traditional MIRMA is being reimbursed by David Hickman for all the Health Program expenses. Item #6: A report on the marketing activity was brought before the Board. The Executive Director stated the City of Neosho joined the membership for all coverages on January 1, The City of Fair Grove will be joining on February 18 th for property and liability, with work comp effective on April 1 st. The Executive Director has also been in contact with the Cities of Warsaw and LaGrange. The City of Kahoka has chosen to leave the association at the end of fiscal year The Loss Control staff setup the MILO machine at the MML Central District Meeting and have been asked to be present with the MILO at other meetings. However, the MILO machine is nearing the end of its life, so it would be best to wait and showcase a new machine to avoid any technical difficulties. The Executive Director stated that MIRMA attended the MCMA winter workshop and met with several cities. Other upcoming meetings include the MML Central District Meeting and the CCFOA Spring Institute where MIRMA will be hosting an appreciation dinner, MIRMA booth, health luncheon, and providing fuchsia colored fleeces for the women attending, and gray for the men. MIRMA will also be setting up the booth at the MCMA and GFOA conferences in May and sponsoring dinner at the MML Elected Officials meeting. The Chairman reiterated that the best marketing tool is members discussing MIRMA with their neighbors. The Executive Director announced that Ray Lentz, Claims and Litigation Director, has accepted a 5

6 position in North Carolina with Patriot National and his last day will be February 26 th. The board congratulated him and thanked him for over ten years of service to MIRMA. CONCLUSION With no further items of business to come before the Board, Rodney Bourne of Rolla made a motion to adjourn and go into Closed Session. Jennifer Schmidt of Tipton seconded the motion and it carried unanimously. The meeting was adjourned into Closed Session at 10:50 a.m. Chairman of the Board ATTEST: Secretary 6