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HomeMy WebLinkAboutMMIA News and Views Summer 2004:' Views ~ Montana Municipal Insurance Authority Summer Issue 2004 THE BOARD M.\%: 2 l, 2004 Bob Worthington introduced John cnrramngs who has accepted the position of Personnel Director/EPLI Administrator. He will begin work on June 7, 2004. ' Terry Alborn, of JCCS, presented the June 30, 2003 financial audit for the MMIA Property Program. The current assets were $835,924, with liabilities of $11,587. The equity of the Program was $835,924. Bob Worttdngtoa informed the Board that the Property Program relies heavily on the commercial insurance markets. The MMIA fully funds a $350,000 SIR and reinsures the remaining ex- posures. Bob Worthington distributed copies of actua~ Allen Hall's cal- culations for the Reu'ospeetive Rating of the MMIA Liability Pro- gram. The report conmths Allen's recommendations for FY 04/05. The report shows the Liability Program continues to incur signifi- cant large losses. Driver Alliant, our broker for the Property Program, has agreed to perform a valuation of all structures with a value over $5 million. This will be done at no cost to the MMIA. In addition, they have agreed to analyze any or all other properties in the Program at a cost of $213 per property. Alan Hulse reported on the Jim Tillotson Program which was held in Billings on May 6 & 7, 2004. The program was held in conjunction with the City Clerics and Elected Officials Institutes. Once again we saw an increase in attendance with 48 attorneys attending. They included both representatives of our member cit- ies and towns and attorneys who provide defense for MMIA liabil- ity claims. Stun Kaleczyc, Steve Wade, Harlan Krogh and Kevin Meek were recognized for donating their time and knowledge as presenters. Bob Worthington circulated a draft of a Resolution that would authorize the MMIA to assume management of the feasibility and operations portions of a health insurance program. It provides for a board that would be advisory to the MMIA Board and would work with the consultants who have been rem/ned to work on the project. In order to develop a self-insurance program, it will be necessary to have in place an interlocal agreement. The League committee be- lieves it would be most expedient to ulilize the interiocal agreement currently in place for the MMIA. The Town of Hobsnn was approved for membership in the MMIA. MARCH 26. 2004 The MLEA has expressed serious interest in working with the MMIA and MACo in the development of a joint assistance pro- gram. The proposal, prelinfinary at this time, would involve f'man- cial and leadership assistance from the MMIA and MACo. with the MLEA providing staffing and support for the position. The indi- con,hued on back MOB IN(,, %'EEDEATING AND PARK INSPECTION By Lenny D. Lundin "Ping", "Bang", "Crock"! No, this isn't the beginning of another episode of those beloved Caped Crusaders. It is what happens when enough care isn't given to protect those areas surrounding your worksite. As you begin another season of summer maintenance on the park system, it is time to revisit your safety and awareness practices. There is an awful lot of ground to cover once those mowers and weedeaters get out of the shop. In your haste to get this ground covered, do not forget another important aspect of get- ting the job done, the safety of others. The person running the equipment is responsible for much more than the grass or weeds. They have people and property to keep in mind as well. When we are out mowing our own lawns, we know the lay of the land and what to expect as our mower hams across the lush green carpet. What may be forgotten when out mowing in parks and boulevards, is just how many people may have used this area since you were last there. Sure, you know what it was like when you last worked the area, but with all of the activity in these areas things can change dramatically. Before firing up the mower, take a minute to give the area a thorough inspection for rocks and debris. It does take some time, but it will be time well spent. If you were to dam- age property or injure someone, you will be using far more resources than you would have with the initial inspection. Ask people to move themselves and their property out of harms way for the brief moment it takes you to complete your project. They will be much more upset with you if they are injured by a flying object. It is also a good idea to know the equipment you will be using. What is the clearance of the mower? Should you be mowing this area with a riding mower or a push mower? What direction will the weed eater throw the material? How do you kill the engine quickly if need be? Training plays an importam role in every job. Park Main- tenance is no exception. The employee needs to be as com- fortable with the equipment and surroundings as possible. Take the time to familiarize everyone with all aspects of their job. Safety should always be a priority. THIS CRIME RENEWAL ~ ~ ~ t ,. E By John Craig - Property Program Manager Every three years we ask our covered members to reapply for Crime & Fidelity coverage. It is an opportunity to pick up any changes in the declaration information that drives coverage and rates. This year's renewal should have been simple and easy, just another quick exercise for the MMIA. Unfortunately, it was not simple, easy or quick for most of our members. I regret any and all problems you may have experienced and will strive to do better with future renewal requests. Most of the problem stemmed from the design of the form. We are already undertaking a complete redraft to make it user friendly and above all, directed toward municipal government. We also broke the routine of ground ma/ling and sent our requests to many mem- bers electronically. This actually worked quite well, so we will move toward more of this paperiess communication. There are still a lot of challenges, none the least of which is gathering e-mail addresses from all of our memberskip. If you would like to participate in our paperless transition, please make sure to send us your current e- mall address. As we start a new coverage year you have MMIA's pledge to build an improved service experience for our members. With your help we can take the crime out of coverage renewal and restore peace & harmony to our renewal relationship. Thanks for your con- tinued patience. NEW FACES AT MMIA John M. Cummings, PHR has joined MMIA as the organization's Employment Practices Specialist and Personnel Direc- ton John brings with him considerable experience in providing a full spectrum of human resoume and employee benefit consulting services to public and private employem throughout Montana. John received his Master of Business Administration (MBA) from the University of Montana and his Bachelor of Arts Degree from Gonzaga University. Currently, John is the President of the Helena Chapter of the Society for Human Resource Management i(SHRM) and is a Certified Professional in Human Resources (PI-IR). John's experience, education and expertise will assist MMIA's members with a wide variety of employment practices including, but not limited to: qualifying for MMIA's Employment Practices Liability (EPLI) Coverage, personnel policy review and develop- ment, job description development, employee compensation analy- sis, wage and hour consulting, recrmtment consulting, and pro- viding discipline and termination assistance. In addition, John is available to provide a wide range of on-site education sessions to employees and supervisors. John enjoys spending time with his family, including his wife and three year old daughter ~yler and six year old son Narc. When time allows, John may also be found fly-fishing on the Missouri or bird hunting with his 10 year old black lab. Please introduce yourself to John, he is here to assist you. Call John at the MMIA office at (406) 443-0907; (800) 635-3089; or ' c. igg.t~r~g~@ trara a.n et. COVERAGE FOR MUNICIPAL SKATEBOARD PARKS By Alan Hulse COO As many of you are aware, the MMIA Memorandum of Liability Coverage specifically excludes coverage for'skateboard parks. Exclusion #31 of the Memorandum excludes coverage for: 31. Any liability arising out of the use of a structure designed to facilitate the openztlan or use of a skateboard, whether or not the structure is utilized for skuteboardingpurposes. Since 1998, member entities can obtain liability coverage for skateboard parks by applying for and receiving an endorse- ment for coverage. Initially in order to obtain the skateboard park coverage endorsement, the facility had to meet specific design criteria established by the MMIA and it had to be certi- fied by an engineer or architect licensed in the State of Mon- tana that the facility met these criteria. This requirement was changed in May of 2003. Now in order to obtain the endorse- ment for coverage, all a member need do, is certify in writing to the M3/IIA that the skateboard facility was designed by a de- sign professional, and that the designer has professional liabil- ity insurance. The endorsement is issued on an annual basis and every July, the members who have the endorsement must certify to the MMIA that either no changes were made to the park, or if changes were made they were designed by a profes- sional who has liability insurance. For those members who currently have an endorsement, you will receive notice from the MMIA in July and it is critical that you respond in order to obtain coverage for the next policy yeas. If you have a skateboard park or are contemplating building one, one thing you may want to consider from a risk manage- ment stand point is to fence the perimeter of the park. This seems to be a growing trend nationally, and the purpose is not necessarily to keep people in or out of the park, but to channel users to one location when they enter so that signs can be posted advising of rules, hours of operation, and recommend- ing use of safety equipment. While this is not required in order to obtain the endorsement, it may be helpful in defending po- tential claims. Another issue that should be considered is onsite supervi- sion of the park. Many public entities are supervising their skateboard parks in order to establish and enforce park rules. In a supervised park, you can require helmets and/or other safety equipment be used and enforce that requirement. If the park is unsupervised, it is more difficult to require the use of safety equipment, because of the inability to consistently en- force the role. If you make the use of safety equipment manda- tory, you create a duty to enforce the role and could create liability exposure for your entity for falling to do so. While supervision is definitely advantageous, we realize that it is also costly. If your community can't afford to supervise your skate park, then you need to be very careful with the roles that you establish and how those rules will be enforced. For those members who are contemplating a skateboard park, please give me a call and I will provide you with the details of obtaining an endorsement for coverage. WORKER'S COMPENSATION WAGE REPORTING ... "WHAT IS IT REALLY?" By Susan Peck - Supervisor Worker's Compensation Unit Worker's compensation claims often include compen- sation for lost wages. One of the most often asked ques- tions we hear is "How do you determine my compensation for lost wages?" This is often followed by "What wages .should I report for our injured employee?" The following ~s a quick summary of Worker's Compensatioa Wage re- porting requirements: Wages means; ail remuneration paid for services per- formed by an employee for an employer. Wages in- clude the cash value of all remuneration paid in any medium other than cash. WAGES: WHAT IS INCLUDEDAND WHAT TO REPORT · Commissions, bonuses and remuneration at the regular hourly rate for overtime work, holidays, vacations and sick leave. · Back pay ur any similar pay made for or in regard to prior service by the employee, for the employer (other than retirement or pension benefits from a qualified plan). · Tips or other gratuities received by the employee, to the extent that tips or gratuities are documented by the employee to the employer for tax purposes. · Income ur payment in the form of a draw, wage, net profit, or substitute for money received or taken by a sole proprietor or partner, regardless of whether the sole proprietor or par•er has performed work or pro- vided services for remuneration. · Board, Iodging, rent or housing flit constitutes a part of the employee's remuneration and is based on its actual value. · Payments made to an employee on any basis other ~han time worked, including but not limited to piece- work, an incentive plan or profit-sharing arrangement. WAGES DO NOT INCLUDE · Employee expense reimbursements or allowances for meals, lodging, navel subsistence and other expenses. · Payment made by the employer for employee's retire- ment or pension. · Sickness or accident disability under a workers' com- pensation policy. · Medical or hospitalization expenses in connection with sickness or accident disability, including health insurance for the employee or the employee's imme- diate family. MEET THE BOARD JOE MENICUCCI BIOGRAPHY · Born and raised in Ana~ conda, Montana. · Member Board of Directors Montana Municipal Insur- ance Authority, 10 years · City Manager, Belgrade, 14 years · Board Chair Human Resouree Development Council, Bozeman · M~mber Drinking Water State Revolving Fund Advisory Com_ rmttee · Chairman, Economic Development Committee, Belgrade Chum_ her of Commerce · Member Transportation Committee, Belgrade Chamber of Corn_ merce · Member Gallatin County Transportation Advisory Committee · Member International City Managers Association · Member Mort•un Economic Developers Association · Married to wife Kris, who is a sixth grade teacher at Belgrade Intermediate School. They have one son, Joseph, who is a PHD candidate in Chemical and Biological Engineering at Mon- tana State Uaiversity. A New York Yankee fan at heart. · Loves woodworking COMMENTARY I have just completed my l0b year as an MMIA Board member. In that time I have watched the urgardzation grow, expanding mem- bership as well as coverage. The member owned MMIA is respon- sive to the needs of its members large and small. One of the greatest challenges as a Board member is to create and direct the many programs in a fashion fair to all of the memberskip. MMIA membership includes the vast majority of Incorporated Montana Cities and Towns. The s~rengdi of number provides orga- nizatinnal socudty in a world of risk management uncertainty. I am pleased to be an integral part of it and would highly recommend any non - member to give serious consideration to the opportunities provided by the MMIA. · Life insuranee for the employee or the employee's immediate family. · Vacation or sick leave benefits acc•ed but not paid · The actual eacnings for the four pay periods immediately preeeding the date of injury are the employee's wage used to compute the disability benefit rate. These are the wages that need to be reported for an employee who is missing time from work as a result of an indus~al injury. These highlights should help in answering the often asked ques- tions. If you are still puzzled, give us a call @ (800)635-3089. We'll gladly. walk you through die claims and reporting process. MMIA PO Box 6669 Helena ~ 59604.6669 BOARD OF DIRECTORS Joe Meniencci ........... Acting Chair, City of Belgrade Marlene Mahlum ........... Secretary, City of Wolf Point Tim Magee, Treasurer ....................... City of Itelena KellyAudet ..................................... City of Great Fails Larry Bonderud .................................... City of Shelby Bob McCarthy .................... Butte-Silver Bow County Jim Nugent ........................................ City of Missoula Cai Oraw ................................................. City of Sidney Rick Harden ...................................... City of Billings Duune Larson .................................. City of Kaiispell Kathy Denke ............................ City of Thompson Fails Webb Mandeville ...................... City of Columbia Falls MiralGamradt .................................... City of Bozeman Presort Standard JUL 2 9 2004 CITY OF LAUREL I O.S. Postage PAID lelena, HT 59601 Permit #Z21 ~ .............. AUTO**3-DIGIT 590 Mayor City of Laurel PO BOX 10 LAUREL MT 59044-0010 hhhhh,lh,.h,hh,llh,,Ih..,lllh,.,,lllh,,,Ih,I FROM THE BOARD ROOM CONTINUED vidual would bring a risk management focus to the training and i PrOvlde trmmng to all levels of law enfomement. A serious lack of training for line officers is one of the most critical voids cur- rently identified by all parties Allen Hail presented the experience modification factors for the Liability Program. It was noted that MOD calculations are intended to be as revenue neutral as possible. Bob Worthington presented the proposed preliminary FY 04/05 rates for the Workers' Compensation Program. The rates :have been calculated to incfude the 10.8% increase recommended by the actuary. Adjustments will also be made for the calcula- tion of coverage for volunteers. There will not be a change in the individual class code rates. An analysis of this structure will be conducted during the coming year and presented in the next actuarial report. CALENDAR OF EVENTS AUGUbT 3 - Health Insurance Board, Helena 16 - 18 - AGRIP, Newport RI 27 - Board of Directur's meeting, Helena SEFrEMBER 6 - Labor Day Holiday Bob Worthington presented the proposed preliminary FY 04/ 05 rates for the Liability Program. The rates have been adjusted to reflect the recommendations of the actuary and will increase from 7.5 to 9.5%, subject to the deductible level. The minimum premium will also increase. Bob Worthington presented the proposed preliminary FY 04/ 05 rates for the Property Program. Bob reminded the Board that these are the most difficult rates to establish at a preliminary level. A significant part of the Program is reinsured and we do not recdive rate indications from our reinsurers until mid-May. At this time it appears we will receive a modest premium increase. With this and the significant increase in TIV, which now exceeds $I billion, staff is recommending an increase in the preliminary rates of 5% for FY 04405. This rate increase would be applied equally to each deductible category. A motion was approved directing staff to prepare a feasib'flity study of funding the layer of liability coverage currently rein- sured with the proceeds of a bond issue. Staff was directed to develop a (1) Conflict of interest policy; (2) Code of conduct for Board and stuff; and/or, (3) successor policy for key staff. Bob Worthington distributed copies of the evaluation for the recently concluded Mayors Academy. The Academy was a joint effort of the MMIA and the Local Government Center and was funded with a grant from PERI. The Academy was attended by 35 mayors and was well received. The evaluations were overwhelm- ingly positive. The Program will be continued during the Upcom- ing Elected Officials Institute.