BOARD OF DIRECTORS Meeting Agenda Wednesday, March 21, :30 a.m. - Tower Two Westbrook Corporate Center Conference Room

Transcription

1 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government BOARD OF DIRECTORS Meeting Agenda Wednesday, March 21, :30 a.m. - Tower Two Westbrook Corporate Center Conference Room I. CALL TO ORDER - Roll Call II. CONSENT AGENDA A. The following reports, for information only, can be found in the Member Section of the IRMA website IRMA Financial Statements IRMA Investment Portfolio IRMA Payables Quarterly Investment Performance Report Membership Recruitment Report Claims Operational Report Quarterly Claims Analysis Report B. Welcome to 2018 Board of Directors (Informational) 2018 Calendar of IRMA Meetings (pg. 1) Board of Directors Statement of Responsibility (pg. 2) Statement of Responsibility for Delegates/Alternates (pg. 3) Conflict of Interest Policy (pg. 4) Proxy Policy Bylaws (pg. 6) C. Standing Committee Documents (Informational) Membership Relations Committee 2018 Committee Roster (pg. 10) 2017 MRC Objectives Accomplishments (pg. 11) 2018 MRC Objectives (pg. 13) Workers Compensation Focus Program Cover Memo (pg. 14) 2018 IRMA Onsite Summer Safety Internship Program (pg. 17) Administration & Finance Committee 2018 Committee Roster (pg. 19) 2017 AFC Objectives Accomplishments (pg. 20) 2018 AFC Objectives Revised (pg. 22) Training & Education Committee 2018 Committee Roster (pg. 23) 2018 Steering Committee Officers Roster (pg. 24) 2017 Training & Education Objectives Accomplishments (pg. 25) 2018 Training & Education Objectives (pg. 26) 2018 Training Programs Update (pg. 27) Voice Vote Roll Call Vote Majority of Membership Bylaw Vote 2/3 of Membership

2 Board of Directors Meeting Agenda March 21, 2018 Page Special Training Schedule (pg. 28) 2018 Education Summit (pg. 32) Safety First Program Update (pg. 36) 2017 Grant Programs Update (pg. 39) Coverage, Claims & Litigation Committee 2018 Committee Roster (pg. 40) 2017 Coverage, Claims & Litigation Committee Objectives Accomplishments (pg. 41) 2018 Coverage, Claims & Litigation Committee Objectives (pg. 43) New Medical Management Pilot Program (pg. 44) Executive Board 2018 Committee Roster (pg. 45) IRMA Committee Policy (pg. 46) IRMA Officers Statement of Responsibility (pg. 48) Executive Board Statement of Responsibility (pg. 50) At-Large Representatives Statement of Responsibility (pg. 52) Executive Director/Staff Report Presentation of IRMA s New Video Streaming Presentation of IMAP Awards (pg. 53) III. CHAIR S REPORT FRANCES A. Changes in IRMA Delegates/Alternates Robert Hoff, Delegate Carol Stream FPD Peter Nickell, Delegate Clarendon Hills Sharon Peterson, Delegate Countryside Gail Paul, Alternate Countryside Patrice Sutton, Delegate Libertyville Kelly Amidei, Alternate Libertyville Jack Knight, Delegate Lisle Eric Ertmoed, Alternate Lisle David Erb, Delegate Mount Prospect Michael Cassady, Alternate Mount Prospect B. Nomination of Chair-Elect Mike Braiman, Wilmette (pg. 55) IV. ACTION ITEMS A. Approval of Board of Directors Meeting Minutes of December 13, 2017 (pg. 57) B. Statement of Responsibility for Coverage, Claims & Litigation Committee-Modification (pg. 65) C Member Participation Report (pg. 67) D. Statement of Responsibility for Membership Relations Committee-Modification (pg. 71)

3 Board of Directors Meeting Agenda March 21, 2018 Page 3 E. Grant Program Guidelines (pg. 73) F. Proposed Grant Revisions (pg. 76) G. Budget Policy-Modification (pg. 77) H. Budget Amendment (pg. 79) I. Establish a Capitalization Policy (pg. 82) J. Amendment to the IRMA Flex 125 Plan (pg. 84) K. Request from Tinley Park (pg. 88) L. Recommendation from the Ad Hoc Committee: Exposure Base (pg. 96) V. ADDITIONS TO AGENDA VI. CONFIRMATION OF NEXT MEETING Tuesday, June 12, :30 a.m. - Westbrook Corporate Center Conference Room VII. ADJOURNMENT To ensure a quorum, please call contact Donna Sluis at donnas@irmarisk.org or call her at (708) , if you are not able to attend the meeting.

4 2018 CALENDAR OF IRMA BOARD & STANDING/STEERING COMMITTEE MEETINGS JANUARY FEBRUARY MARCH APRIL MAY JUNE TEC 2/1 1:30 pm CCLC 2/8 1:30 pm MRC - 2/14 9:30 am AFC 2/15 9:30 am EB 2/28 9:30 am BOD - 3/21 9:30 am PCSC - 4/5 10:00 am PWSC 4/10 8:30 am FCSC - 4/12 10:30 am PRSC 4/19 8:30 am CCLC 5/3 9:30 am TEC 5/9 1:30 pm MRC 5/16 9:30 am AFC 5/23 9:30 am EB 5/30 9:30 am BOD 6/12 9:30 am Joint Steering Mtg-6/21 Outgoing Chair Awards Auditor Presentation CAFR Annual Risk Mgmt Report Best Risk Mgmt. Awards JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER PWSC 8/14 8:30 am PCSC - 8/16 10:00 am FCSC 8/23 10:30 am TEC 9/5 1:30 pm MRC 9/12 9:30 am CCLC 9/19 9:30 am AFC 9/25 9:30 am Committee review Preliminary budget EB 10/3 9:30 am BOD 10/17 Following the Education Summit at NIU Naperville FCSC 10/25 10:30 am Preliminary Budget Personnel Report Coverages MRC - 11/7 9:30 am CCLC 11/8 9:30 am PCSC 11/8 10:00 am PWSC 11/13 8:30 am TEC 11/14 1:30 pm AFC 11/15 9:30 am EB 11/28 9:30 am BOD - 12/12 9:30 am Final Budget Board of Directors (BOD) Note: Meets Wednesday at 9:30 a.m. Westbrook Corporate Center Conference Room Tower 2 Executive Board (EB) Coverage, Claims & Litigation (CCLC) Training & Education (TEC) Membership Relations (MRC) Administration & Finance (AFC) Police Chiefs Steering Committee (PCSC) Fire Chiefs Steering Committee (FCSC) Public Works Steering Committee (PWSC) Parks and Recreation Steering Committee (PRSC) G:\Office Administration\Calendars\2018 CALENDAR OF IRMA BOARD & STANDING COMM MEETINGS-Highlighted BOD & EB Meetings.Doc 1

5 BOARD OF DIRECTORS STATEMENT OF RESPONSIBILITY The IRMA Bylaws establish a Board of Directors as the governing body of the Agency. Each member shall appoint one person as delegate to represent their entity on the IRMA Board of Directors. The members shall also select an alternate to attend board meetings and vote in the absence of the delegate and carry out the other duties of the delegate in his/her absence or inability to act. Each member shall be entitled to one (1) vote on the Board of Directors. However, IRMA encourages the attendance of both delegate and alternate at all Board of Directors meetings. A quorum shall consist of a majority of the membership and a quorum is required to conduct the business of the Board of Directors. A simple majority of a quorum shall be sufficient to approve all matters that come before the Board except for those matters requiring a greater vote than a simple majority of a quorum and in those instances it shall require a two-thirds majority of the membership. The Board of Directors shall elect one (1) of its members to serve as Chair of the Board, one (1) member to serve as Chair Elect, one (1) member to serve as Treasurer and Chair of the Administration and Finance Committee, one (1) At-Large Representative from large IRMA members, and one (1) At-Large Representative from small IRMA members. Members' size will be determined based on revenue base. The Board of Directors is charged with determining the general policy of the Agency. It has responsibility for hiring the Agency's executive director; approval of annual Budget and Cash and Investment Policy, approval of annual contribution rates and supplemental payment to the IRMA loss fund or other funds established by the Board; approval of Bylaws and Amendments; approval of new members, and delegating authority to the Executive Board. The Board of Directors are required to meet at least four (4) times a year -- at least two (2) during the first half of the year and at least two (2) during the second half. Special meetings may be called by the Chair or 20 per cent of the directors of the Board. Ten (10) days written notice is required. Time, place, date and purpose of meeting shall be designated in the notice. Revised 12/98 Revised 10/04 HANDBOOK\SEC105.V-1 2

6 STATEMENT OF RESPONSIBILITY FOR MEMBERS OF THE BOARD OF DIRECTORS (DELEGATES/ALTERNATES) The role of the Delegate is primarily to serve as the link between the member and IRMA. The IRMA By-Laws (Article II, Section 2.01(B) recognize the importance of this responsibility by requiring the Delegate/Alternate Delegates be appointed by the Chief Executive Officer (highest elected official) of the public entity and confirmed by the legislative body. The following statements represent the essential responsibilities of the IRMA Delegates/Alternates: 1. Attend all Board of Directors meetings or, if unable, assure attendance of the appointed Alternate Delegate. 2. Promptly review and distribute to appropriate staff all IRMA correspondence, and communicate as necessary with IRMA to keep contact lists current. 3. Volunteer to serve on Standing or Ad Hoc Committees and to remain informed and involved with IRMA issues. 4. Attend an IRMA Orientation and other training offerings on current risk management issues. 5. Actively participate in the governance of IRMA. 6. Assess issues of importance as they effect the entire IRMA organization, as well as your individual entity. 7. Make every effort to periodically keep senior management and /or your entity s elected officials abreast of key issues at IRMA and the unique opportunities provided your public entity through membership in IRMA. 8. All other responsibilities that will foster the mission and By-Laws of IRMA. Adopted 3/95 Revised 10/04 Revised 1/14/09 G:\Committees\Executive Board\2009\EB Meeting \Welcome to 2009 EB\Statement of Responsibilty for Members of the Board of Directors.doc 3

7 IRMA CONFLICT OF INTEREST POLICY A. OFFICERS AND EMPLOYEES All IRMA officers and employees and their agents are required to conduct IRMA business in accordance with ethical standards that prohibit actual or potential conflicts of interest, as follows: 1. An actual or potential conflict of interest occurs when an officer or employee is in a position to influence a decision that may result in personal gain for that employee or their agent, as a result of IRMA dealings. 2. Business transactions between officers and employees and any IRMA service providers, IRMA Members or other IRMA agents must not result in personal gain to the officers and employees. "Personal gain" means bribes, illegal rebating, product bonuses, special fringe benefits, unusual price breaks or other windfalls designed to ultimately benefit the officer, the employee or their agent. Any appearance of a potential conflict of interest should be avoided whenever possible. 3. Any officer or employee found to be in violation of this conflict of interest policy may be subject to disciplinary action, up to and including termination of employment for employees and expulsion from the Board of Directors for officers. B. MEMBERS, DELEGATES AND COMMITTEE MEMBERS All IRMA members, delegates, and committee members and their agents shall refrain from any activities that are within any of the prohibitions described above, and any activities: 1. Which may produce personal gain to them as a result of their IRMA dealings; 2. Which may result in individual gain to any IRMA member other than gains associated with the member's rights and privileges defined by the IRMA bylaws, policies and procedures (for example, votes on behalf of members at Board Meetings). 3. Which present any appearance of an actual or potential conflict of interest. C. AGENTS "Agent" means any person or entity who acts for any IRMA officer, employee, member, delegate, alternate or committee member. 4

8 D. IRMA ACTION IRMA may report to appropriate law enforcement authorities and the individual's public entity employer any conduct or activities prohibited above, which may be in violation of local, state or federal laws. Adopted 12/11/96 Revised 10/ Revision to Handbook-Vol I-Section 1.06-Conflict of Interest POlicy 5

9 6

10 7

11 8

12 Official Proxy Designation Date: I, (print name), am the Delegate or Alternate authorized to vote as the representative of (print Member name). I designate (print name) as Proxy to act in my place as the only representative of the Member authorized to vote on the matters that come before the membership for a vote at the Board of Directors Meeting on. I understand this Proxy is effective only for this specific meeting, and may be exercised only by a vote at the meeting of the IRMA Board of Directors. (Signed) **************************** This Proxy, or an equivalent writing, must be signed by the authorized Delegate or Alternate and filed with the IRMA Executive Secretary at least one day in advance of the Board of Directors Meeting, that is, no later than 5:00 p.m. on the day prior to the Board meeting. This Proxy may be filed electronically with a personal signature by as an attached PDF file or as a fax. Senior Administrative Assistant: Donna Sluis Tel: Fax: donnas@irmarisk.org G:\Office Administration\Forms\Official Proxy Designation.docx 9

13 2018 MEMBERSHIP RELATIONS COMMITTEE Chair Bridget Wachtel Village of Flossmoor (708) (708) Fax Keith Sbiral 12/31/18** Village of Brookfield (708) (708) Fax Jack Knight 12/31/18** Village of Lisle (630) (630) Fax Charles Meyer 12/31/18** Village of Lincolnwood (847) (847) Fax Michael Braiman 12/31/19** Village of Wilmette (847) (847) Fax Denise Joseph 12/31/19** Village of Glencoe (847) (847) Fax Kyle Kordell 12/31/19 Village of Lake Zurich (847) (847) Fax Janet Gorman 12/31/19 Village of Villa Park (630) (630) Fax Joyce DeLeon 12/31/19 City of Rolling Meadows (847) X-1011 (847) ** Second 2-year term (final) G:\Committees\Membership Relations Committee\2017\2017MRCRoster.docx 10

14 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Membership Relations Committee Dan LeTourneau, Director of Risk Management Services DATE: February 2, 2018 RE: 2017 MRC Objectives Year End Results Action Requested: Update the Committee with the results of the 2017 MRC objectives. Background/Discussion: Below are the results of the 2017 objectives for the Membership Relations Committee (MRC): 1. Monitor and enhance WC Focus Program based on program results. - Implemented revisions to consolidate Part II / Part III report to Excel format. - Members making progress overall and improving their overall risk management programs. - Members taking advantage of 100% Lexipol Grant offering in police and fire to improve their overall operating procedures. - Members provided with Summer Safety Intern assistance for policy review and development. - See attached 2017 WC Focus Program Fourth Quarter Summary Report 2. Review completed Membership Survey and oversee recommendations. - Raise member awareness of the IRMA services: Developed new IRMA brochure and marketing/member retention materials, E-News offerings, meetings with members focusing on services and training, and continued expansion of online and web-based training services. - IRMA Website Improvement: Staff conducted a RFP for redevelopment of the website. Staff/MRC sub-committee reviewed responses and noted a wide variance in price and scope of services. Committee members provided additional, lower cost service provider options to improve the design and functionality of the website. These options will be pursued in 2018 and included addition of a departmental list serve. - Electronic Reporting of Claims: Risk Master Upgrades budgeted for 2018 will providing electronic reporting of claims functionality for all members. - Aging Workforce Training: IRMA conducted Succession Planning training which was well attended. A Succession planning Guideline was developed to assist members. Building teamwork Across Generations training is scheduled for

15 Memorandum to Membership Relations Committee Re: 2017 MRC Objectives Year End Results February 2, 2018 Page 2 of 2 3. Oversee the 2017 IRMA Summer Onsite Safety/Risk Management Internship Program. Pursue two qualified interns as available. - Staff retained the services of two summer safety interns from NIU during The safety interns provided policy review and development services to ten IRMA members including three WC Focus Program members. 4. Market IRMA to prospective medium to large municipalities with focus on services and optional deductible programs. - Revitalize IRMA marketing materials. o Staff completed development of a new, custom, full color, professionally designed proposal format, which was used for recruitment of both Arlington Heights and Mount Prospect. In addition, we implemented a Microsite for marketing IRMA electronically through a separate professional developed web address devoted solely to marketing IRMA to prospective members. - Staff to attend local municipal conferences. o IRMA is now a Corporate Partner of ILCMA. Staff attended the ILCMA Summer Conference and set-up an exhibitor table to market its pooling program and services. Staff will also be attending the ILCMA Winter Conference. - Oversee Member recruitment budget. o The marketing budget was used to develop the professional proposal document, build a new electronic Microsite, and become an ILCMA Corporate Partner. 5. Complete review and revision to IRMA Growth Policy. - The current IRMA Growth policy was updated to reflect the pool s current marketing efforts and practices and approved by the IRMA Board of Directors. Recommendation: Concur with staff s 2017 MRC Objectives Year End Results. Membership Relations Committee 2/14/18: The MRC approved the 2017 Objectives - Year End Results. Executive Board 2/28/18: The Executive Board received the MRC 2017 Objectives Year-End Results. There was no discussion on this item. DLT\ll G:\Committees\Membership Relations Committee\2018\ \2017 MRC Objectives -Results-1.Docx 12

16 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Membership Relations Committee Dan LeTourneau, Director of Risk Management Services DATE: February 2, 2018 RE: 2018 MRC Objectives Action Requested: Approve the 2018 objectives for the Membership Relations Committee. Background/Discussion: Below are the 2018 objectives for the Membership Relations Committee (MRC): 1. Monitor and enhance WC Focus Program based on program results. - Evaluate program participants as part of the Annual Claims to Contribution Report process to determine their status in the program for Recommend a new program participant to replace the Village of Westchester with a member in need of assistance to reduce their overall workers compensation experience. - Revise the Part II Program Excel report which tracks quarterly activities by member departments. Add report tabs to improve ease of member use 2. Market IRMA to prospective medium to large municipalities with a focus on training, risk management services and optional higher deductible programs including attending local municipal conferences. 3. Oversee the 2018 IRMA Summer Onsite Safety/Risk Management Internship Program. - Pursue two qualified interns as available to work onsite at member locations. 4. Review Participation Program to evaluate the need to incentivize members to attend Board of Directors meetings. 5. Complete website revision to improve site aesthetics and functionality including the addition of a departmental list serve. 6. Evaluate the possibility of combining the Training & Education Committee with the Member Relations Committee. Recommendation: Concur with staff s Proposed 2018 MRC Objectives. Membership Relations Committee 2/14/18: The MRC approved the 2018 MRC Objectives. Executive Board 2/28/18: The Executive Board received the 2018 MRC Objectives. There was no discussion on this item. 13

17 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Membership Relations Committee Dan LeTourneau, Director of Risk Management Services DATE: January 31 st, 2018 RE: Workers Compensation Focus Program 4 th Quarter/Annual 2017 Reports Purpose: The purpose of this memorandum is to provide the MRC with a review of the 4 th Quarter/2017 annual Workers Compensation Focus Program member progress. Background: The IRMA Workers Compensation Focus Program began on April 1, 2016 with participating members identified as the Village of Brookfield; Carol Stream; Roselle and Westchester. Attached for review are the completed individual member reports for the 4 th Quarter of Part I of the individual member quarterly reports outline claim frequency and severity year to date as compared to their IRMA member targets for workers compensation. Part II provides a summary of risk management/safety activities completed in the 4 th quarter of Below is a brief 4 th Quarter overview for each of the WC Focus Program participants: Village of Brookfield The Village of Brookfield completed 2017 with a workers compensation claim frequency of 15 versus their IRMA target of 10, resulting in an annual variance of 150% of target. There were 3 additional workers compensation claims in the 4 th quarter. Two were small medical only claims in public works and one lost time claim in police from an officer pushing a disabled vehicle. This preventable claim has been reviewed and remedial measures have been implemented. The Village s claim frequency is well over target due mainly to 8 workers compensation claims incurred in the first quarter. Of the 15 overall workers compensation claims, 11 are medical only. The Village s annual workers compensation claims experience is only $34,584, which is well below their annual IRMA workers compensation target of $203,997 or just 17% on an annualized basis. All departments attended the Fall IRMA Educational Summit in October. The Public Works Department re-established their Safety Committee and Accident Review Board in the 4 th quarter and will be conducting meetings beginning in the 1 st quarter of Public Works has completed review of their JSA s and are conducting safety meetings and daily safety talks. The Brookfield Fire Department is continuing to develop their Lexipol operational policy manual and have finalized their new Behavior Observation policy which will be implemented in the 1 st quarter of The department will also be developing Lock-out/Tag-out Procedures and an equipment kit for use onsite at emergency scenes. The Police Department completed their review, update and training on their new pursuit policy based on the Lexipol policy. They will be completing their new Lexipol policy manual in the 1 st quarter along with completing additional officer CIT training and Mental Health training. The Department has recently purchased door breaching kits for their squads in response to an officer knee injury resulting from manually breaching a door. Attached for review is Part I and the new Part II of the WC Focus Program Quarterly Report, which details the Village s risk management activities completed during the 4 th quarter and planned for the 1 st quarter of

18 Memorandum to Membership Relations Committee January 31 st, 2018 Re: Workers Compensation Focus Program 4 th Quarter 2017 Reports Page 2 Village of Carol Stream The Village of Carol Stream completed 2017 with a workers compensation annual frequency of 18 as compared to their IRMA target of 15, resulting in an annualized variance of 120% of target. The Village incurred 3 additional claims in the 4 th quarter, 2 of which are small medical only claims. There was one larger lost time claim resulting from an officer rupturing his Achilles Tendon at the police academy while running. The Village s annual workers compensation claims experience of $321,942 exceeds their IRMA annual severity target of $288,961 resulting in an annualized variance of 108%. After meeting with representatives from Axon (formerly Taser International) to discuss their offer of evaluating the use of Tasers in a fully funded study including the devices and full training, the study has been put on hold based on lack of a recommendation from the Police Chief, and a loss of $1.2 million of sales tax revenue which would be needed to fully fund the ongoing Taser program once implemented. IRMA continues to recommend that the police department accept the Axon offer a fully funded study due to department combative encounters in arrest situations. The Police Department continues their roll call safety component and the use of Police One video training along with defensive tactics training. Public Works conducted several additional safety training programs during the 4 th quarter including JSA development and training, hearing protection training and testing, and a comprehensive PPE review. Part I and Part II WC Focus Program Quarterly Reports, which detail the Village s risk management activities completed during the 4 th quarter of 2017 and planned for the 1 st quarter of 2018 are attached for your review. Village of Roselle The Village of Roselle completed the 4 th Quarter of 2017 with no workers compensation claims resulting in annual workers compensation claims frequency of 9 versus their target of 12 or tracking below target at 75%. The Village s overall workers compensation claim experience for 2017 is $111,607, which is well below their IRMA severity target of $217,396 resulting in very favorable annualized variance of target of only 51.3%. The Fire Department is in the process of completing their Lexipol operational best practices policy & procedure manual. They are targeting completion by no later than 2 nd quarter of They will be completing their physicals and wellness survey by the end of the 1 st quarter The department is scheduled to complete their Health Safety Officer(HSO) and Incident Safety Officer(ISO) training by the end of the 1 st quarter, The Police Department continues its efforts to pursue an annual physical fitness program with required compliance testing with their union. Progress has been slow, but they are continuing the process. All officers completed NAPD driver training at NIPSTA during They continue to conduct monthly reviews of both traffic accidents and use of force incidents and have formalized their accident investigation process. The department has trained 6 officers in CIT training and fitted all with custom molded hearing protection for use on the range. Officers will receive defensive tactics and CPR training in the first quarter of The Public Works Department continues its efforts to complete their updated, more detailed operational manual and expand their JSA program. They have developed an Employee Orientation Manual and completed hearing testing during the 4 th quarter of Attached for review is Part I and the new Part II of the WC Focus Program Quarterly Report, which details the Village s risk management activities completed during the 4 th quarter and planned for the 1 st quarter of

19 Memorandum to Membership Relations Committee January 31 st, 2018 Re: Workers Compensation Focus Program 4 th Quarter 2017 Reports Page 3 Village of Westchester The Village of Westchester completed the 4 th quarter of 2017 without a workers compensation claim. Their 2017 annual workers compensation claims frequency is 6 as compared to their IRMA target of 9 or only 67% of target on an annualized basis. The Village s 2017 annual workers compensation claims experience is $47,356 which is substantially below their IRMA target of $167,763 or only 28% of target. The Village has continued to improvement their overall risk management performance. Attached for review is Part I of their WC Focus Program Quarterly Report, which details the Village s risk management activities completed during the 4 th quarter of The Village of Westchester has benefited from the program as their risk management efforts have improved significantly over the past two years in the program. The Village s overall workers compensation loss experience is well below the IRMA target in each of the last three years with their loss frequency also below target in the last two years. The Village was removed from the IRMA Workers Compensation Focus Program for 2018 as a withdrawn member. The Village will be leaving IRMA as of January 1 st, Recommendations: Review and accept the 4 th Quarter 2017 Workers Compensation Focus Program Reports from the participating members. Staff will make a recommendation to replace the Village of Westchester with another IRMA member in need of further assistance to reduce their workers compensation experience and evaluate each current program member status as part of the Annual Claims to Contribution Report. Membership Relations Committee 2/14/18: The MRC accepted the th Quarter Workers Compensation Focus Program Reports from the four participating members and staff s recommended process to replace the Village of Westchester with another member in need of assistance. Executive Board 2/28/18: The Executive Board received the th Quarter Workers Compensation Focus Program Report. There was no discussion on this agenda item. DLT/ll Attachments G:\Committees\Membership Relations Committee\2018\ \4th Quarter 2017 WC Focus Program - Cover.Docx 16

20 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Membership Relations Committee Dan LeTourneau, Director of Risk Management Services DATE: February 5, 2018 RE: 2018 IRMA Onsite Summer Safety Internship Program Purpose: The purpose of this memorandum is to update the Membership Relations Committee (MRC) on the status of the 2018 IRMA Summer Safety Internship Program. Background/Discussion: The member application process identified members interested in retaining the services of a summer safety intern. This process also ensures that projects identified for the prospective intern meet their technical capabilities and available time frames. We currently have five (5) requests from members for summer safety intern assistance which includes one WC Focus Program member. We will offer interns to the three (3) additional WC Focus Program members, as needed. Of the total applications, three (3) members are requesting interns for the first time and two (2) members have previously utilized the services of a summer intern. We have retained one qualified intern to date and are currently working on obtaining a second qualified candidate. We have sent out multiple member requests for interest in use of a summer intern. Based on review of the member requests, staff is recommending the following internship requests be granted for 2018: Village of Carol Stream (WC Focus Program Member) Tasks: Review/Research/Update additional PW JSAs Review function and results of safety committee activities City of Crystal Lake Tasks: Review/Update PW safety policies Review PW JSAs for recommended improvements City of Palos Park Tasks: Assist is review of safety committee & accident investigation policies Research performance review policies and forms Review departmental operational procedures for consolidation Village of Bloomingdale Tasks: Review and update Lock-out/Tag-out Policy and equipment options Village of Riverside Tasks: Consolidation of Village-wide Safety Policies into consolidated electronic manual Adapting recreation policies into at a Glance format for resident and use on website or pamphlet Development of public works training records into a spreadsheet format identifying and categorizing training types by employee Update HazCom/Right to Know Policy & SDS organization. Revise and update chlorine gas policy 17

21 Memorandum to Membership Relations Committee February 5, 2018 Re: 2018 IRMA Onsite Summer Safety Internship Program Page 2 of 2 Recommendation: Review the 2018 IRMA Summer Safety Intern Assignments. Staff will continue to pursue a second qualified safety intern. Membership Relations Committee 2/14/18: The MRC accepted the Summer Safety Internship Program Report and emphasized that members in the Workers Compensation Focus Program should again receive assistance as needed through the program. Executive Board 2/28/18: The Executive Board received the 2018 Summer Safety Intern Assignments. Staff reported a second intern was retained. There was no additional discussion on this item. DLT/ll Attachments G:\Committees\Membership Relations Committee\2018\ \2018 IRMA Onsite Summer Safety Internship Program-Memo.Docx 18

22 2018 ADMINISTRATION & FINANCE COMMITTEE Chair Eric Helm Deputy City Manager City of Crystal Lake (815) (815) Fax Vice-Chair Lynn McCammon Finance Director 12/31/18 ** Village of Winfield (630) (630) Fax Barry Krumstok City Manager 12/31/19 ** City of Rolling Meadows x 1001 (847) Fax krumstokb@cityrm.org Brad Bettenhausen Treasurer 12/31/18 Village of Tinley Park (708) (708) bbettenhausen@tinleypark.org Elizabeth Holleb Finance Director 12/31/18 City of Lake Forest (847) (847) hollebe@cityoflakeforest.com Jason Bielawski Assistant Village Administrator 12/31/18 ** Village of Roselle (630) (630) Fax jbielawski@roselle.il.us Larry Noller Finance Director 12/31/19 ** Village of LaGrange Park (708) (708) Fax lnoller@lagrangepark.org Colleen Nigg Manager, Human Resources 12/31/19 Village of Barrington (847) (847) Fax cnigg@barrington-il.gov Tom Kuehne Finance Director 12/31/19 Village of Arlington Heights (847) tkuehne@vah.com Bettina O Connell Finance Director 12/31/19 Village of Lake Bluff (847) (847) Fax boconnell@lakebluff.org ** Second 2-year term (final) G:\Committees\Administration & Finance Committee\2018\2018 AFC Roster.Docx 19

23 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Administration and Finance Committee Rita Boserup, Director of Financial Services and Administration DATE: February 8, 2018 RE: 2017 Administration & Finance Committee Objectives Accomplishments Action Requested: To provide the Committee update on the status of the 2017 Goals of the Committee. Background/Discussion: The following 2017 IRMA objectives are in the areas of responsibility of the Administration and Finance Committee: 1. Review all the reports that Finance either sends to the members or posts to the website, including information in the report, time frame covered in the report, and last time it was prepared. In process and carried over to Having a new member join IRMA has helped this process as we explain our reports and respond to their requests for information. 2. Develop and distribute a basic financial guide to IRMA, directed mainly at financial staff that are new to IRMA, including the revenue base, contribution calculations, experience modifier, optional deductible, and cost allocation. In process and carried over to An IRMA Financial Basics summary report was developed that has proven useful. Materials were prepared for last year s Summit and for the recent Ad Hoc committee that presented information on some of these topics. Still more work to be done to compile a comprehensive manual. 3. Evaluate accepting credit cards for payment of subrogation collections. In process and carried over from We believe that using PayPal is a good method for this and are exploring setting up an account. PayPal was evaluated and not a good fit due to costs. We have several proposals, but they are all general estimates since we don t know how many credit card charges will be made and total amount charged each month. We also need to work out a fee structure to chargeback the cardholder and establish control and accounting processes. 4. Prepare a Popular Annual Financial Report (PAFR). Started and carried over into

24 Memorandum to Administration and Finance Committee Re: 2017 Administration & Finance Committee Objectives Accomplishments February 8, 2018 Page 2 of 2 5. Evaluate the feasibility and cost to replace the claims management software (Riskmaster). It was decided that the most cost effective route is to upgrade our existing systems and move to a hosted environment rather than moving completely to a new provider. Staff is familiar with the basics of the current software, which will shorten training time on the upgraded software, plus there will be little or no data conversion cost. Recommendation: For information only. Administration and Finance Committee (2/15/18): The AFC approved the year end results for 2017 objectives. Executive Board 2/28/18: The Executive Board received the AFC 2017 Objectives Accomplishments. There was no discussion on this item. RB G:\Committees\Administration & Finance Committee\2018\ Meeting\AFC Objectives-2017 accomplishments.doc 21

25 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Administration and Finance Committee Rita Boserup, Director of Financial Services and Administration DATE: February 8, 2018 RE: 2018 Administration & Finance Committee Objectives Action Requested: Approve the goals and objectives of the Committee for Background/Discussion: The following are the proposed goals and objectives of the Administration and Finance Committee for 2018: 1. Review all the reports that Finance either sends to the members or posts to the website, including information in the report, time frame covered in the report, and last time it was prepared. In process and carried over from Having a new member join IRMA has helped this process as we explain our reports and respond to their requests for information. 2. Develop and distribute a basic financial guide to IRMA, directed mainly at financial staff that are new to IRMA, including the revenue base, contribution calculations, experience modifier, optional deductible, and cost allocation. In process and carried over from An IRMA Financial Basics summary report was developed that has proven useful. Materials were prepared for last year s Summit and for the recent Adhoc committee that presented information on some of these topics. 3. Implement accepting credit cards for payment of subrogation collections. In process and carried over from We have received several estimates from service providers. We need to determine how to setup the fee charged each payor and the internal control and accounting processes. 4. Prepare a Popular Annual Financial Report (PAFR). This is in the early stages and is carried over into Implement hosting and upgrading the claims management software (Riskmaster), the LSS (Legal Suite Solutions), and BI (Business Intelligence report writer). This will be the largest project undertaken by IRMA, other than the initial installation of the software in Review all the insurance/benefit plans that IRMA has in place and evaluate their effectiveness and cost. Recommendation: Approve the goals and objectives of the Committee for 2018 as presented along with any additional recommendations from the Committee. Administration and Finance Committee (2/15/18): The AFC approved the 2018 objectives with the addition of drafting a rate stabilization policy. Executive Board 2/28/18: The Executive Board received the AFC 2018 Objectives. There was no discussion on this item. RB 22

26 2018 TRAINING & EDUCATION COMMITTEE Chair Michelle Robbins Village of Brookfield (708) (708) Fax Amy Zukowski 12/31/19 ** Village of Homewood (708) Phone (708) Fax Tia Messino 12/31/19 ** Village of Carol Stream (630) (630) Fax Mary Rath 12/31/18 Village of Arlington Heights (847) (847) Fax Melissa DeFeo 12/31/18 Village of Northfield (847) (847) Fax mdefeo@northfieldil.org Nadine Alletto 12/31/18 Village of Woodridge (630) (630) Fax nalletto@vil.woodridge.il.us Anita Neville 12/31/19 Village of Lake in the Hills (847) (847) Laura Ditanto (PWSC) 12/31/18* Village of Libertyville (847) lditanto@libertyville.com James Arie (FCSC) 12/31/18* Village of Barrington (847) (847) Fax jarie@barrington-il.gov Matt Smizinski - Deputy Chief (PCSC) 12/31/18* Village of Lake Bluff (847) (847) Fax msmizinski@lakebluff.org * Steering Committee Liaison - 1-Year term (final) ** Second 2-year term (final) G:\Committees\Training & Education Committee\2018\2018 TEC - Roster.Docx 23

27 2018 STEERING COMMITTEE OFFICERS POLICE CHIEFS T&E Liaison Deputy Chief Matt Smizinski, Lake Bluff (847) (847) (Fax) Chair Chief Marc Maton, Lemont (630) (630) (Fax) Vice Chair Chief James Kruger, Oak Brook (630) (630) (Fax) Secretary Chief Dave Anderson, Lisle (630) (630) (Fax) FIRE CHIEFS T&E - Liaison Fire Chief, James Arie, Barrington (847) jarie@barrington-il.gov (847) (Fax) Chair Lt. Jim Buenrostro, West Chicago FPD (630) jimb@wegofpd.org (630) (Fax) Vice Chair Fire Chief Bob Grabowski, Homewood (708) bgrabowski@homewoodil.gov (708) (Fax) Secretary Fire Chief Barry Liss, Oak Brook (630) bliss@oak-brook.org (630) (Fax) PUBLIC WORKS T&E Liaison Laura Ditanto, Libertyville (847) lditanto@libertyville.com Chair Ed Bailey, Riverside (708) ebailey@riverside.il.us (708) (Fax) Vice Chair Andrew Letson, Lincolnwood (847) aletson@lwd.org (847) (Fax) Secretary Sam Barghi, Carol Stream (630) sbarghi@carolstream.org (630) (Fax) PARKS & RECREATION T&E Liaison N/A Chair Rob Gunther, Park Forest (708) rgunther@vopf.com (708) (Fax) Vice Chair Heather Bereckis, Hinsdale (630) hbereckis@villageofhinsdale.org (630) (Fax) G:\Committees\Steering Committees\Steering Committee Officers\2018 Steering Committee Officers.Docx 24

28 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Training & Education Committee Jennifer Swahlstedt, Risk Management & Training Manager DATE: January 9, 2018 RE: 2017 Training & Education Objectives - Completion The following 2017 IRMA goal oriented objectives were completed as noted below: 1. Review existing video library, assess needs and update inventory. During the course of reviewing the video library, it was determined to move towards video streaming library in 2018 to meet members video training needs. 2. Video stream applicable onsite training programs. In 2017, two programs were filmed and placed on the IRMA website for membership view. The 2018 budget allots for the filming of an additional four (4) training programs. 3. Develop and implement the fall Educational Summit for the membership. The 2017 Educational Summit was conducted on October 16, 2017 in a new format, including interactive workshop sessions, no keynote speaker and a half day instead of a full day. 4. Explore additional grant programs aimed at reducing injuries. The Board of Directors approved three (3) additional grants to the 2018 budget, which are targeted at reducing injuries; Lift Assist Equipment Grant, Work Zone Safety Equipment Grant and Firefighter Ballistic Protective Equipment Grant. 5. Develop and distribute the Public Official s Handbook. This has not been completed and will be removed from TEC future goals. 6. Analyze usefulness of Predictive Modeling Analytics. Predictive Modeling Analytics was implemented in October 2017, which requires an ongoing analysis of effectiveness and utilization by staff. Milliman will produce quarterly reports quantifying effectiveness as well. Executive Board 2/28/18: The Executive Board received the TEC 2017 Objectives Completion. There was no discussion on this item. JS/ll G:\Committees\Training & Education Committee\2018\2-1-18\2017 TEC Objectives - Completion.Doc 25

29 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Training & Education Committee Jennifer Swahlstedt, Risk Management & Training Manager DATE: January 6, 2018 RE: 2018 Training & Education Objectives Action Requested: Adopt the 2018 objectives for the Training and Education Committee (TEC). Background/Discussion: In 2017, the TEC revised its objectives from routine task-oriented items to annual goals to help foster more innovative responses to meet Membership training and educational needs. The following 2018 IRMA goal oriented objectives are recommended for the Training & Education Committee. 1. Identify products and/or services targeted at reducing risk and secure member pooled pricing. 2. Audit 2018 Special Training pilot programs and partnership with PDRMA, as well as evaluate additional opportunities to collaborate with other entities to provide training. 3. Analyze claims trends and member requests when creating the 2019 Special Training programs. 4. Develop and implement the fall Educational Summit for the membership. 5. Explore additional grant programs aimed at reducing injuries, specifically for police departments. 6. Evaluate the possibility of combining the Training & Education Committee with the Member Relations Committee. Recommendation: Staff is recommending the above objectives for 2018 be approved along with any additional recommendations from the Committee. Training & Education Committee, 2/1/2018: The TEC approved the 2018 Objectives. Executive Board 2/28/18: The Executive Board received the TEC 2018 Objectives. There was no discussion on this item. JS/ll G:\Committees\Training & Education Committee\2018\2-1-18\2018 TEC Objectives.Doc 26

30 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Training & Education Committee Jennifer Swahlstedt, Risk Management & Training Manager DATE: January 10, 2018 RE: 2018 Programs - Update The following chart shows the status of new 2018 Programs: 2018 New Program Status Online Video Streaming: Coastal Flix Implemented; Live to Membership on January 8, 2018 Videography In-Progress; Selection four (4) training programs to film Work Zone Quick Reference Guides In-Progress; 2018 MUTCD Guides under review by Start Group. Meeting TBS Expanded Pooled Services On-Going; Secured MSDS Online a Safety Data Sheet (SDS) online management system & Target Solutions an online public safety training management system. Open to member recommendations. JS/ll G:\Committees\Training & Education Committee\2018\2-1-18\2018 Programs - Update.Doc 27

31 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government 2018 IRMA TRAINING SCHEDULE Course Topic Instructor Dept./Group Date Location Rescue Taskforce Program Limit to 300 attendees Member Orientation Limited to 14 attendees First Responders Behavioral Health Workshop 3 Part Series, 3hrs each 12:30p 3:30pm Limit to 35 each Ed Mohn & Chief Berkowsky ST Police, Fire, Dispatch February 6 1:30p 4pm IRMA Staff All March 1, April 17, September 27 8:45am 12:15pm Self Care Path, Sarah Gura ST Police, Fire Intro to 1st Responder Behavioral Health February 28 Intro to 1 st Responder Coping Knowledge & Skills March 28 Intro to 1 st Responder Behavioral Health Policies May 2 COD, 425 Fawell Blvd., Glen Ellyn IL IRMA Office 2/28: Oak Brook Training Room 3/28: Oak Brook Training Room 5/2: Oak Brook Training Room Playground Maintenance PDRMA Hosted / Offered PDRMA / Various recognized playground experts Limit 5 attendees Target Solutions Luncheon Target Solutions Informational Only March 8 11:30a 1:30p Use of Force Train the Trainer Limit to 30 Cross Cultural Communications Limit to 60 Jeff Chudwin & Bernard Hogancamp Professor Andrea Polites 1 G://Departments/TrainingandEducation/2018/2018Training Programs PDRMA March 7 & 8 8:30a 4:00pm PCSC March 19 & 20 9a 5pm Northbrook Park Disctrict, Sports Center, 1730 Pfingsten Rd., Northbrook, IL Oak Brook Training room Village of Lisle Police Department, 5040 Lincoln Ave., Lisle IL CCWS / All TBA College of DuPage TBA Technology & Security Professor Felix Davis CCWS / All TBA College of DuPage TBA Security & Emergency Planning for the Modern Day Aquatics Facility Paul Timm PDRMA April 5 9a 12pm 28 NIU Naperville, 1120 E Diehl Rd., Naperville IL 60563

32 PDRMA Hosted / Offered Limit to 5 attendees Chainsaw Safety 101 Cut down 2 3 trees Limited to 16 each course Chainsaw Safety 102 Cut down 17 trees Limited to 8 attendees each course. Must have completed 101 Mower Safety Train the Trainer Limit to 3 attendees (Pilot) Mower Safety Limit to 8 attendees each course Tim Ard Tim Ard Tom Grey and Associates Tom Grey and Associates PWSC & PRSC (PDRMA partner) PWSC & PRSC (PDRMA partner) PWSC, PRSC (PDRMA Host) PWSC, PRSC (PDRMA partner) April 16 April 19 April 17 April 20 April TBA April 24 8:00 am 2:30pm (PDRMA Location) April 23 April 25 April 26 8:00 am Noon (PDRMA Location) 4/16: Will County Forest Preserve Joliet 4/19: TBA 4/17: Will County Forest Preserve Joliet 4/20: TBA 4/TBA: TBA Wheaton Park District Manchester Park Services Center 1000 Manchester Rd. Wheaton IL /23: Wheeling Park District, Park & Facilities Service Building, 245 Egidi, Wheeling IL /25: Prospect Heights Park District, Gary Morava Recreation Center, Rm 1 & Dundee Lot, 110 W. Camp McDonald Rd., Prospect Heights IL Safe Operation & Towing of a Trailer Limit to 3 attendees (Pilot) Trench & Excavation Safety Limited to 12 attendees Tom Grey & Associates Start Group PWSC, PRSC (PDRMA Host) PWSC (PDRMA partner) April 27 8:00a 11:30a (PDRMA Location) May 8 May 9 7a 3:30p 4/26: Lisle Park Dist., Community Center, Room C, 1825 Ohio St., Lisle IL Lisle Park Dist., Community center, Rm C, 1825 Ohio St., Lisle IL /8: Hinsdale Katherine Legge Memorial Park 5901 S. County Line Rd., Hinsdale, IL /9: Village of Lake Zurich 505 Telser Road, 2 G://Departments/TrainingandEducation/2018/2018Training Programs 29

33 Lake Zurich, IL MSDS Online Luncheon MSDS Online Informational Only May 10 11:30a 1:30pm Taking Action Against Cancer in the Fire Service Train the Trainer Firefighter Cancer Support Network FCSC May 15 8am 3pm Village of Lisle, PD Training room TBD Limit to Contractual Risk Transfer Limit to 45 *Filmed OSHA 10 Hour Limited to 40 attendees Traffic Incident Management Awareness Limit to 30 attendees *Save 5 for PDRMA Traffic Incident Management Train the Trainer Dan LeTourneau CCWS TBA 9:30a 11:30a Bill Crimmins PWSC May 21 & 22 Day 1 8:30am 3:30pm Day 2 8:30 a.m. 12:30pm StartGroup ST Police, Fire, PW June 5 7:30am 11:30 am StartGroup ST Police, Fire, PW June 5 12:00pm 4:00 pm Westbrook Corporate Center Tower 2 Westbrook Corporate Center Tower 2 Westbrook Corporate Center Tower 2 Westbrook Corporate Center Tower 2 Limit to 30 attendees *Save 5 for PDRMA Establishing a UAS Program Limit to 70 AeroVista Joint Steering Committee Workshop June 21 8:30am 12:30pm Westbrook Corporate Center Tower 2 Welding Safety Limit to 10 Confined Space Compliance Limited to 12 attendees each IL BIS, Steve Gilbert PWSC August 1 7:30a 3:30p Start Group PWSC (PDRMA Partner) August 7 & 8 7:30a 3:30p Arlington Heights 222 N. Ridge Avenue, Arlington Heights, IL /7: Village of Bartlett, 1150 Bittersweet Dr., Bartlett IL Building Teamwork Across Generations IL BIS, Francene Pelmon 3 G://Departments/TrainingandEducation/2018/2018Training Programs CCWS August 28 7:30a 12:30pm 8/8: Village of Lincolnwood Fire Department 6900 N. Lincoln Avenue, Lincolnwood, IL Illinois BIS, 1100 E Warrenville Rd., Ste. 30

34 Limit to 70 CDL Supervisor/Reasonable Suspicion Limit 35 attendees Brush Chipper Operations Train the Trainer Limit to 3 attendees (Pilot) Brush Chipper Operations Limit 8 attendees each Rick Kronberg Perspectives Tom Grey and Associates Tom Grey and Associates PWSC September 12 8:30am 11:30am (PDRMA Split) PWSC, PRSC September 17 7:30am 3:30pm PWSC, PRSC (PDRMA partner) September :30a 11:30am 150, Naperville IL Westbrook Corporate Center Tower 2 Carol Stream 245 Kuhn Road, Carol Stream, IL /18: Village of Brookfield, 8820 Brookfield Ave., Brookfield IL /19: Village of Hanover Park, 2041 Lake St., Hanover Park IL Aerial Lift Safety Limit 8 attendees Tom Grey & Associates PWSC (PDRMA partner) September 21 7:30a 11:30a 9/20: City of Lake Forest, Municipal Services Building 800 N. Field Drive, Lake Forest, IL Village of Riverside, 3860 Columbus Dr., Riverside IL Police Forum TBA PCSC September 20 TBA Electrical Safety Bob LoMastro PWSC October 4 Session I: Beginners 7:30am 11:00am Westbrook Corporate Center Tower 2 Mobile Work Zone Safety Limit 30 *PDRMA 3 Spots Educational Summit IRMA Staff / Workshop Session II: Advanced 12:00pm 3:30pm StartGroup PWSC October 9 8a 12noon Membership October 17 8:00am 12pm TBA CCWS November TBA Village of Bartlett, 1150 Bittersweet Dr., Bartlett IL NIU Naperville Contact: Suzanne Krause skrause@niu.edu 4 G://Departments/TrainingandEducation/2018/2018Training Programs 31

35 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Training & Education Committee Jennifer Swahlstedt, Risk Management & Training Manager DATE: January 10, 2018 RE: Education Summit Action Requested: Review the th Annual Education Summit and discuss a theme, topics, target audience and structure for the 5 th Education Summit on October 17, Background: The th Annual Education Summit was a departure in format from previous years. Last year, the format was staff lead workshops, which focused on member specific issues and claim trends that affect each operating department. The attendance was improved from 2016, mirroring attendance levels seen in 2014 and However, the format did identify challenges, such as obtaining active participation, as well as room for improvements, like adding members to the presentation panel. As reflected in the attached evaluations, overall the workshops were well received with an average rating of 4.5/5 and the entire program was rated 3.5/4. The summit was then followed by the Board of Director s Meeting. Discussion: Staff is recommending the following for the 2018 Education Summit: 1) Maintain the half-day workshop format followed by the Board of Directors meeting 2) Identify topics which address recent claim trends and/or challenges facing the pool 3) Encourage member participation through including members as panelists 4) Administer a small charge to attendants to maintain attendance levels Recommendation: Staff is asking for TEC input regarding the planning for the 2018 Education Summit. Training & Education Committee, 2/1/2018: TEC decided to keep the format from 2017 as half-day staff lead workshop without key note speakers followed by the Board of Director meeting. TEC believes the inclusion of members on the discussion panel will be instrumental in raising awareness on topics, increasing participation and providing first-hand accounts of scenarios. TEC recommends administering a $25 No Show Fee to discourage absenteeism. TEC believes a topic devoted to IRMA Financials is important and recommends training to encompass how to use the data/reports from IRMA in assisting member safety programs. Discussion of additional topics will continue through the second quarter. Member Relations Committee, 2/14/2018: The MRC agreed with continuing the format as was done in 2017 and recommended a survey be sent to the membership for topic ideas. MRC recommended training for frontline supervisors to examine the role of safety training in the management handling of possible legal and/or injury claims by use of case studies. Executive Board 2/28/18: The Executive Board received the Education Summit Report. There was no discussion on this agenda item. JS/ll Attachment: 4 th Annual Education Summit Evaluations 32

36 IRMA 4th Annual Education Summit NIU Campus October 16, 2017 Overall Rating The Benefits of IRMA Are Zoning Decisions Plaguing Your Community Unfit for Duty: The Cost of Complacency Slow Down: The New De-Escalation Tactic for Police Departments Career Ending Injuries: How it Affects Your Bottom Line and How IRMA Helps Tackling IRMA Financial Equations Speaker's Knowledge Well Organized & Effective Provided Meaningful Information Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Comments The presenters were knowledgeable and enthusiastic. Thus, keeping it interesting Next Summit, any day but Monday. Unfit for Duty-Would like to see discussion/information on PTSD. Essential job functions-any critical items on that could be highly recommended to include job description? Great hand outs Telly needs to speak up a bit, but he and Rita make a good team. Thank you for making the training available. I believe this summit increases our level of comfort with the subject matter. All initial registration information indicated the Summit began at 8:00 am. New agenda and materials when we arrived indicated 8:30 am. If there was some confusion or change, it should have been mentioned with possibly and apology to the group. Certain parts of the Unfit for Duty presentation seems overemphasized. The Career Ending Injuries presentation was fantastic. 33

37 IRMA 4th Annual Education Summit NIU Campus October 16, 2017 Overall Rating The Benefits of IRMA Are Zoning Decisions Plaguing Your Community Unfit for Duty: The Cost of Complacency Slow Down: The New De-Escalation Tactic for Police Departments Career Ending Injuries: How it Affects Your Bottom Line and How IRMA Helps Tackling IRMA Financial Equations Comments Speaker's Knowledge Well Organized & Effective Provided Meaningful Information Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Zoning-could have been longer, informative. I liked the case studies and it was great that some of the attendees were actually involved with the cases. Interesting topic. "IRMA Financial"- Informative, comments from the audience were useful too. I'd be interested in a "training" on assessing changing deductibles to a higher deductible Jenny did an outstanding job putting this Summit together Well done. Liked the structure and the sessions Auditorium was tough to talk with those around me Case studies and break out groups were good Financials-A little too much time spent on Risk Master. I wish there was more time spent on the formulas. Would like a scenario based exercise into Claim to FMLA- PSEBA & all the stumbling blocks along the way. PSEBA & FMLA-more information I enjoyed the outside speakers like in the previous years Some of the case studies will cause me to learn our pursuit policies as I have no idea. In "Slow Down", members of law enforcement seemed unwilling to engage in discussion of case studies. Either they did not want to second guess another officer's actions. Or they did not want to admit that they would have taken the same action as outlined in the case study. The session on de-escalation tactics was not well received by officers in the session I did notice that in the later session(slow down), not much participation from those in the room. I felt like the officers in the room shut down. 34

38 IRMA 4th Annual Education Summit NIU Campus October 16, 2017 Overall Rating The Benefits of IRMA Are Zoning Decisions Plaguing Your Community Unfit for Duty: The Cost of Complacency Slow Down: The New De-Escalation Tactic for Police Departments Career Ending Injuries: How it Affects Your Bottom Line and How IRMA Helps Tackling IRMA Financial Equations Comments Speaker's Knowledge Well Organized & Effective Provided Meaningful Information Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Well Organized & Effective Info. Presented Was Relevant & Useful Presenter(s) Allowed Me to Work& Learn From Others Total The de-escalation session did not appear to be well received by the police officers. It appeared they shut down almost immediately as there was almost no participation from the audience. My sense was the police were being bashed for wrongful pursuits without acknowledgement of the difficulty of their jobs and having to make split second decisions under pressure. We did not learn the outcome of the cases from the videos shown, so the audience could see how an actual case wound its way through the litigation process. Or maybe the videos should be shown and then discussion initiated about what was done wrong and what was done right. Ideas could have been solicited about how what other action the ofc could have done. There were several police chiefs present as well as deputy chiefs, so lack of participation was surprising. Perhaps if the session had been approached from the perspective that we are all here to learn. We'd like to hear from the audience on tactics that have worked for them and what tactics have not worked well. There did not seem to be any take always the audience could bring back to their departments for consideration as to whether or not they should incorporate the suggestions into their policies. 35

39 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Training and Education Committee Jennifer Swahlstedt, Risk Management and Training Manager DATE: January 25, 2018 RE: Safety First Program Update Purpose: The purpose of this memorandum is to inform the TEC of the progress with the Safety First Program, one of the newer risk prevention and management initiative as part of the Early Intervention Program. Background/Description: The Safety First Program was introduced as part of the Early Intervention Program in April 2017 to the standing committees and the full Board of Directors in June The program s goal is to assist in the reduction of preventable losses, address claims patterns and trends, track IRMA outreach and training, promote IRMA programs and recognize members that are pro-active in risk mitigation post-accident. Once fully implemented mid-year 2017, the risk management team aided members with 21 preventable losses, providing guidance and risk mitigation recommendations. As of January 25, 2018, the risk management team has assisted with 7 preventable losses. Additionally, starting in 2018, Safety First Recognition s are being sent to members who provide additional insight on claims submitted by identifying preventable losses and remedial measures on the Supervisor Investigation Report form. Please find attached copies of a sample risk management recommendation letter and recognition . Recommendation: Staff recommends TEC provide feedback to further improve and expand upon the Safety First Program. Training & Education Committee, 2/1/18: TEC approved the direction of the Safety First Program, commenting on the addition of positive feedback from IRMA will assist in furthering safety cultures within the membership. Executive Board 2/28/18: The Executive Board received the Safety First Program Update and expressed support for the growing program. JS/ll G:\Committees\Training & Education Committee\2018\2-1-18\Safety First Program Update.Doc 36

40 37

41 38

42 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Training & Education Committee Jennifer Swahlstedt, Risk Management & Training Manager DATE: January 10, 2018 RE: 2017 Grant Programs The following chart shows the actual reimbursements made to members as of January 9, 2018: 2017 Grant Programs 2017 Funding Awards as of 1/09/18 Members Awarded Lexipol Policy Manual Development $15,000 Reimburse up to 50% of initial implementation costs $20,937 5 Injury Prevention Training $5,000 Reimburse up to 50% of cost $5,641 2 Accreditation / Reaccreditation $15,000 A: Reimburse up to 50% of cost R: Reimbursement up to 25% of the cost $21, Fire Service Equipment Program $100,000 Reimburse up to 1/3 the cost, Maximum $15,000 $86, All Tier 1 Trailer Gate Lift Assist $2,000 $0 0 Reimburse up to $200 per device Flagger Grant $3,090 $495 1 G:\Committees\Executive Board\2018\ \2017 Grant Programs - Update.Doc 39

43 2018 COVERAGE, CLAIMS & LITIGATION COMMITTEE Chair Julia Cedillo Village of LaGrange Park (708) X107 (708) Fax Kevin Wachtel 12/31/18** Village of Villa Park (630) (630) Fax Kate Croteau 12/31/18** Village of Hanover Park (630) (630) Fax Doris Harmon-Warren 12/31/18 Village of Crete (708) Cell # No Fax # dorisjhw@gmail.com Patrick Brennan 12/31/18 Village of Kenilworth (847) (847) Fax pbrennan@villageofkenilworth.org Greg Van Dahm 12/31/18 Village of Northbrook (847) (847) Fax greg.vandahm@northbrook.il.us Bryon Vana 12/31/19** City of Darien (630) (630) Fax bvana@darienil.gov Barbara Maziarek 12/31/19** Village of Palos Park (708) (708) Fax bmaziarek@palospark.org John DuRocher 12/31/19 Village of Indian Head Park (708) (708) Fax jdurocher@indianheadpark-il.gov Peter Vadopalas 12/31/19 Village of Mundelein (847) (847) Fax pvadopalas@mundelein.org ** Second 2-year term (final) G:\Committees\Coverage, Claims & Litigation Committee\2018\2018 CCLC - Roster.Docx 40

44 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Coverage, Claims & Litigation Committee Susan Garvey, Director of Legal Services DATE: February 1, 2018 RE: 2017 Committee Goals and Objectives Accomplishments Action Requested: To provide the Committee an update on the goals and objectives of the Committee for Background/Discussion: The following is the status of the goals and objectives of the Coverage, Claims & Litigation Committee for 2017: 1. Review and evaluate changes or modifications to all IRMA Coverage documents as suggested by staff and make recommendation of approval of changes to the membership. Analyze the need for a coverage workshop. Staff made one recommendation for modification to the IRMA GL and POL coverage relative to the deductible for zoning matters. The coverage was clarified to provide that the zoning deductible stacks on top of the member s chosen deductible. The change was approved by the Board of Directors at the June 2017 Board meeting. Based upon the lack of controversial coverage issues, staff did not recommend a coverage workshop in This goal will continue into 2018 to address coverage matters that were raised late in the year. 2. Review and approve reinsurance renewal and optional coverage program. The reinsurance renewal and optional coverage program for 2018 was approved as recommended by the Committee by the Board of Directors at the October 16, 2017 Board of Director s meeting. The renewal included an increase in IRMA limits to $12 million. 3. Review and approve changes to the IRMA Claims Manual in accordance with the appropriate recommendations of the Claims Audit conducted in This project will continue into

45 Memorandum to Coverage, Claims & Litigation Committee Re: 2017 Committee Goals and Objectives Accomplishments February 1, 2018 Page 2 of 2 4. Create new claims reports including information from the predictive modeling project. New reports will be provided the Committee throughout Work with the AFC and staff to evaluate potential new claims processing software. Staff completed an RFP for consultant to assist with this goal but upon further evaluation it was recommended to not go forward with this project at this time to evaluate the forthcoming upgrades to the current claims processing software. Recommendation: For information only. Coverage Claims and Litigation Committee 2/8/18: The CCLC approved the 2017 Objectives Accomplishments. Executive Board 2/28/18: The Executive Board received the CCLC 2017 Objectives Accomplishments. There was no discussion on this item. SG/ds G:\Committees\Coverage, Claims & Litigation Committee\2018\2-8-18\2017 CCL Objectives.Amended.Accomplishments.doc 42

46 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Coverage, Claims & Litigation Committee Susan Garvey, Director of Legal Services DATE: February 1, 2018 RE: 2018 Committee Goals and Objectives Action Requested: Approve the goals and objectives of the Committee for Background/Discussion: The following are the proposed goals and objectives of the Coverage, Claims & Litigation Committee for 2018: 1. Review and evaluate changes or modifications to all IRMA Coverage documents as suggested by staff and make recommendation of approval of changes to the membership. Analyze the need for a coverage workshop. 2. Review and approve reinsurance renewal and optional coverage program. 3. Review and approve changes to the IRMA Claims Manual in accordance with the appropriate recommendations of the Claims Audit conducted in Review and evaluate the need to create a policy for a regular RFP process for selection of defense counsel for IRMA s approved list. Recommendation: Approve the goals and objectives of the Committee for 2018 along with additional recommendations from the Committee. Coverage Claims and Litigation Committee 2/8/18: The CCLC approved the Committee objectives for Executive Board 2/28/18: The Executive Board received the CCLC 2018 Objectives. There was no discussion on this item. SG/ds G:\Committees\Coverage, Claims & Litigation Committee\2018\2-8-18\2018 CCL Objectives.doc 43

47 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Coverage, Claims & Litigation Committee Susan Garvey, Director of Legal Services Jennifer Swahlstedt, Risk Management and Training Supervisor Mike Metzger, Workers Compensation Supervisor DATE: February 1, 2018 RE: Risk Management Initiatives and New Medical Management Pilot Program Purpose: The purpose of this memorandum is to advise the CCLC of risk management initiatives and a new medical management pilot program. Background/Discussion: Every year, workers compensation claims consume approximately 60-70% of IRMA s costs. Over the past few years, we have invested significant resources toward preventing and reducing work-related injuries. For example, the Safety First Program was introduced as part of the Early Intervention Program in April 2017 to the standing committees and the full Board of Directors in June The program s goal is to assist in the reduction of preventable losses, address claims patterns and trends, track IRMA outreach and training, promote IRMA programs and recognize members that are pro-active in risk mitigation post-accident. Once fully implemented mid-year 2017, the risk management team aided members with 21 preventable losses, providing guidance and risk mitigation recommendations. As of January 25, 2018, the risk management team has assisted with 7 preventable losses. Additionally, starting in 2018, Safety First Recognition s are being sent to members who provide additional insight on claims submitted by identifying preventable losses and remedial measures on the Supervisor Investigation Report form. Please find attached copies of a sample risk management recommendation letter and recognition . In addition to these Safety First initiatives, we are conducting a pilot medical management program with eight IRMA members. Dr. Raj Khanna of CompCorePro will be providing medical oversight of all new claims for these eight members starting February 1, Dr. Khanna is a Sports Medicine specialist with over twenty-five years of experience in occupational health. Several of our members previously utilized Dr. Khanna s occupational medicine clinic in Bellwood before he sold Advanced Occupational Medicine Specialists and created CompCorePro. I have attached a flyer regarding CompCorePro services. They will review every doctor visit within 24 hours and provide updates with their recommendations via , which will be sent to both IRMA and the member s claims coordinator. They will assist in coordination of care to efficiently move the case to closure. The cost for this service is a flat fee of $250 per claim, which includes all necessary monitoring, medical review and recommendations regarding appropriate treatment. We are very excited about this program and believe it will provide significant cost savings. Recommendation: For information only. Coverage Claims and Litigation Committee 2/8/18: The CCLC expressed support of the new initiatives and medical management pilot program. Executive Board 2/28/18: The Executive Board received the memo. There was no discussion on this item. 44

48 2018 Executive Board Chair Jessica Frances Village of Riverside (708) (708) Fax Treasurer/Chair of Administration & Finance Committee Eric Helm City of Crystal Lake (815) (815) Fax Chair-Elect At-Large Representative (Small IRMA Member) Lisa Scheiner Village of River Forest (708) (708) Immediate Past Chair Kathleen Gargano Village of Hinsdale (630) (630) Fax At-Large Representative (Large IRMA Member) Peggy Halik Village of Woodridge (630) (630) Fax Coverage, Claims & Litigation Committee Chair Julia Cedillo Village of LaGrange Park (708) X-107 (708) Fax Training & Education Committee Chair Michelle Robbins Village of Brookfield (708) (708) Fax Membership Relations Committee Chair Bridget Wachtel Village of Flossmoor (708) (708) Fax G:\Committees\Executive Board\2018\2018 Executive Board - Roster.Docx 45

49 IRMA COMMITTEES The Bylaws of IRMA specifically provide for Committees of the Agency, and the work of the Committees constitutes an important part of the management of this Agency. There are four (4) standing Committees of IRMA: 1. Administration & Finance Committee 2. Coverage, Claims & Litigation Committee 3. Membership Relations Committee 4. Training & Education Committee The Board of Directors has adopted a "Statement of Committee Responsibility" for each of the Standing Committees. (See attached.) The Chair of the Board appoints the Chair of each of the Standing Committees except the Administration and Finance Committee. It is the responsibility of each Committee Chair to recruit the members of his or her Committee, and select from among their Committee members a Committee Vice Chair to serve with full power and authority of the Committee Chair in the absence of the Committee Chair. The Chair and the Executive Director can assist in such recruitment. IRMA Delegates and Alternates are encouraged to serve as members of the Committees. Committee Chairs shall recruit Delegates and Alternates whenever possible. Committee member term of participation is two years. Committee members are limited to two consecutive terms on a given committee. Only one representative from a member shall serve on the same Committee at any one time. Committee size is recommended to be 7-10 members (including Chair). The Committee Chair and IRMA staff will be responsible for monitoring Committee member's attendance. The Committee Chair is responsible for consulting with Committee members whose meeting attendance falls below 75%. The Committee Chair has the authority and prerogative to replace Committee members whose attendance demonstrates a lack of interest in Committee work. Committees are expected to consider matters within their area of responsibility, and matters assigned by the Chair, and to report back to the Executive Board and the Board of Directors. All Committee members are defended and indemnified by IRMA in accordance with Section 5.04 of the Contract and Bylaws. Committees will meet as determined by the Committee Chair. The Chair may appoint an Ad Hoc Committee to study special issues. Such Ad Hoc Committees will report their findings and recommendations to the Executive Board and the Board of Directors. The Executive Director and/or a member of his or her staff is a non-voting member of the Committees and will attend all Committees to give guidance, prepare reports and answer Committee questions. 1 46

50 Committees are expected to maintain minutes of their meetings. The originals are filed with the Executive Director and made part of the permanent records of IRMA. The Nominating Committee will be chaired annually by the Immediate Past Chair. The Committee will consist of the three Immediate Past Chairs and up to two additional participants selected from the members who volunteer to serve on the Committee. The Committee will interview and select candidates interested in serving as Chair Elect, Treasurer of IRMA, and the two At-Large Executive Board Members for the next year's term. The Committee will also solicit member interest in serving on Committees. The Chair of the Nominating Committee will present the nominees at the final Board meeting for a vote by the Board of Directors. Approved 11/89 Revised 10/04 Revised 3/7/07 Revised 1/14/09 Revised 3/1/17 G:\IRMA Organization\Website\Bylaws And Policies\IRMA Committees Policy.Docx 2 47

51 IRMA OFFICERS STATEMENT OF RESPONSIBILITY Officers of the Agency include a Chair and Chair Elect, Immediate Past Chair, Treasurer and Executive Director who are elected or appointed by the Board and are prescribed, in general, the following duties in the By-Laws: The Chair of the Board is the Chief Executive Officer of the Agency, and shall preside at all meetings of the Board and the Executive Board. The Chair may request information from any officer of the Agency or any employee or independent contractor of the Agency. The Chair shall vote on all matters that come before the Board; the Chair shall be a nonvoting ex-officio member of all Agency Committees. The Chair shall have other powers as granted from time to time by the Board of Directors. The Chair Elect shall carry out the duties and responsibilities of the Chair during any absence or inability of the Chair to perform such duties. The Chair Elect shall be a voting member of the Executive Board. The Chair Elect shall carry out other functions and responsibilities as assigned by the Board of Directors and Chair. The Treasurer of the Agency shall also be the Chair of the IRMA Finance Committee. The Treasurer shall be a voting member of the Executive Board and has overall responsibility for the funds and securities of the Agency. The Treasurer shall be responsible for the monitoring of the IRMA Cash and Investment Policy and shall determine that the Agency is in compliance with all bylaws and rules and regulations of the Board of Directors relating to investments and the financial record keeping of the Agency. The Immediate Past Chair shall serve as a voting member of the Executive Board. The Immediate Past Chair shall also serve as Nominating Committee chair to develop recommended candidates for elected officers and at-large representatives for the upcoming year. In addition, the Immediate Past Chair should strive to ensure that all members have opportunities to serve and encourage participation in the governance of the pool. The Immediate Past Chair will also be responsible for other duties as assigned by the Board of Directors and Chair. If the Immediate Past Chair is no longer a member of the Board of Directors, the previous Immediate Past Chair shall serve a second term. The above mentioned officers are elected to their term of office by the Board of Directors. The Executive Director is the chief administrative officer of the Agency and shall supervise and manage the day-to-day operations of the Agency and its personnel and carry out the policy of the Agency as established by the Board of Directors. His/her duties shall include the execution of instruments as authorized by the Board; execute agreements under $15,000 in accordance with the annually approved budget; preparation of the annual budget; making recommendations regarding policy and employment of agents, consultants and contractors; reporting of claims filed and payments made; employment of Agency personnel; expend funds; and the performance of such other duties as generally required by the Chief Administrative Officer of a governmental risk pool or as may be prescribed by the charter and Bylaws or the rules and regulations of the Board of Directors. The Executive Director is appointed by the Board of Directors for a term to be determined by the Board. The Executive Director shall keep and maintain the Agency's official books 48

52 and records and minutes and shall execute and witness such documents and agreements as approved and authorized by motion of the Board of Directors and comply with all official requests for information on behalf of the Agency as required by certain federal, state and local laws and regulations. Adopted 1/92 Revised 10/04 Revised 1/14/09 Revised 3/18/15 G:\IRMA Organization\WEBSITE\WORD DOCUMENTS\BOARD & COMMITTEES\IRMA Officers Statement of Responsibility.doc 49

53 EXECUTIVE BOARD STATEMENT OF RESPONSIBILITY The Executive Board shall oversee the general policy and the rules and regulations adopted by the Board of Directors in between the regular meetings of the Board of Directors and conduct the duties and responsibilities of the Board of Directors as defined in the IRMA By-Laws and report to the full Board at its next regularly scheduled meeting. 1. The Executive Board shall consist of the following voting members: Chair, Chair Elect, Immediate Past Chair, Treasurer, and the Chairs of all other Standing Committees of IRMA, and At-Large Representatives. These positions will all be selected from the members of the Board of Directors. Additionally, the IRMA Executive Director will be a nonvoting member of this Board. 2. The Chair and Chair Elect of IRMA shall be the Chair and Chair Elect of the Executive Board. 3. The Chair of IRMA shall select the Chairs of the several Standing Committees (except the Administration & Finance Committee) and shall report the selection to the Board of Directors at the first meeting of the new year. 4. The Board of Directors shall elect two At-Large Members to the Executive Board. The Nominating Committee will recommend candidates from the Board of Directors to serve as At-Large Executive Board Members. These At-Large Executive Board Members should have prior committee experience, but cannot be concurrently serving on a Standing Committee. One At-Large Member is to be chosen from smaller IRMA members (members with a revenue base below the IRMA median) and one At-Large Member from larger IRMA members (members with a revenue base at or above the IRMA median). At- Large Executive Board Members are elected to one-year terms with a limit of three consecutive terms in order to increase representation on the Executive Board. 5. All matters coming before the Executive Board that result in a final decision shall require a simple majority of a quorum of the Executive Board. The responsibilities of the Executive Board include: 6. The review and recommended approval of the annual line item budget and Average Contribution Rate. 7. Authorize contracts for expenditures of Agency funds within the budgeted amounts approved from the annual budget adopted by the Board of Directors and limited by the Purchase and Sales Policy and reported, in writing, to the next regular meeting of the Board of Directors. 8. Authorize the settlement of claims or lawsuits filed against the Agency or its members in accordance with the Claims Policy and By-Laws of IRMA. 9. Review Appeals Committee findings and recommendations as prescribed by the appropriate sections of the By-Laws. 50

54 10. Assign projects, studies and reports to the Executive Director and staff and review such projects and reports and take appropriate action. 11. Attend and participate in appropriate training, including IRMA sponsored sessions, professional conferences and seminars sponsored by public risk management and pooling associations, or other training offerings on current risk management issues, as provided for in the IRMA annual budget. 12. Recruit, conduct interviews, and negotiate the employment contract and conduct annual performance evaluations of the Executive Director with the advice and consent of the Board of Directors. 13. To take such other actions, or make decisions on behalf of the Board of Directors, when in the judgment of the Executive Board an emergency exists or the full Board cannot be convened in a timely manner and the action or decision is within the scope of the IRMA charter and bylaws and will serve the best business interest of the IRMA Members. 14. Complete all assignments delegated to the Executive Board by motion of the Board of Directors. Revised 2/97 Revised 10/04 Revised 1/14/09 G:\Committees\Executive Board\2009\EB Meeting \Welcome to 2009 EB\Executive Board Statement of Responsibility.doc 51

55 AT-LARGE EXECUTIVE BOARD REPRESENTATIVES STATEMENT OF RESPONSIBILITY 1. Two At-Large Representatives shall be elected from the IRMA Board of Directors. 2. Candidates will be nominated by the IRMA Nominating Committee based on their prior committee experience, interest in serving on the Executive Board and other qualifications for effectively representing the membership as expressed on the nomination form. 3. One At-Large Representative shall be selected from smaller IRMA members with a revenue base below the median and one Representative from larger IRMA members with a revenue base at or above the IRMA median. 4. At-Large Representatives are elected to one-year terms with a limit of three consecutive terms. 5. Once elected, the At-Large Representatives will represent the entire IRMA membership on the Executive Board. 6. At-Large Representatives should have some prior committee experience, but will not be concurrently serving on a standing committee. 7. At-Large Representatives should be in touch with the general membership in order to provide additional insight and information to the Executive Board on issues of importance to the membership. 8. The At-Large Representatives will prepare appropriate verbal or written reports to assist the Chair of IRMA, Executive Board and IRMA staff in developing and implementing products/services to meet the overall membership needs. 9. The At-Large Representatives will complete other projects, studies and reports as assigned by the IRMA Chair. Adopted 10/11/95 Revised 1/14/09 G:\Committees\Executive Board\2009\EB Meeting \Welcome to 2009 EB\At-Larage Representatives Statement of Responsibility.doc 52

56 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Board of Directors Dan LeTourneau, Director of Risk Management Services DATE: February 28, 2018 RE: 2017 IRMA Level II & IMAP Accreditation/Re-accreditation Awards PURPOSE: To recognize members who have achieved IRMA Level II Accreditation, IMAP Accreditation, and IMAP Re-accreditation during BACKGROUIND: The IRMA Level II Accreditation Program was developed to provide a second higher level of accreditation for high performing members to challenge their publicsector risk management expertise and performance. Any member with a scheduled IMAP evaluation is eligible to achieve IRMA Level II Accreditation. Members earning a percentage of compliance with best practices in public risk management of 95% or greater for their IMAP evaluation and a five-year claims severity to IRMA target of 70% or less achieve IRMA Level II Accreditation. A recognition plaque and a check for $1,500 will be presented at the first Board meeting of the following year to all members achieving Level II Accreditation during the previous year. The real financial incentive for obtaining IRMA Level II Accreditation will be from the reduced annual contribution resulting from a member s loss experience credit. AWARDS: The following members have achieved IRMA Level II Accreditation during 2017: Village of Kenilworth Village of Lemont 95% - IMAP Percentage of Compliance 45.82% - 5 yr. Loss Severity to IRMA Target 95% - IMAP Percentage of Compliance 39.34% - 5 yr. Loss Severity to IRMA Target We are proud to recognize the Village of Kenilworth and Village of Lemont as the fourth and fifth recipients of IRMA Level II Accreditation with an engraved plaque and a check for $1,500. The following IRMA members have achieved IMAP Accreditation during 2017: Village of Arlington Heights Village of Berkeley Village of Crete NIPSTA Village of Olympia Fields Village of Park Forest Village of Stickney Village of Westchester 91% - IMAP Percentage of Compliance 88% - IMAP Percentage of Compliance 87% - IMAP Percentage of Compliance 86% - IMAP Percentage of Compliance 86% - IMAP Percentage of Compliance 85% - IMAP Percentage of Compliance 89% - IMAP Percentage of Compliance 93% - IMAP Percentage of Compliance 53

57 Memorandum to Board of Directors Re: 2017 IMAP Accreditation Awards February 28, 2018 Page 2 of 2 We are proud to recognize the above members with an engraved plaque for their efforts in obtaining 85% or greater percentage of compliance with the IMAP criteria. The following IRMA members have achieved IMAP Re-accreditation during 2017: Village of Brookfield 86% Carol Stream FPD 96% City of Countryside 93% Village of Lake Bluff 91% Village of Lake in the Hills 99% Village of Northbrook 89% Village of Oak Brook 88% City of Palos Heights 90% Village of Villa Park 87% These members will be recognized with an engraved plaque for achieving IMAP Reaccreditation. Members obtaining IRMA Level II Accreditation will now receive Re-Accreditation IMAP & loss experience evaluations every five years. IMAP Accredited members will receive IMAP Re- Accreditation evaluations every four years. All non-accredited members will receive IMAP evaluations every three years. Congratulations to all of the above accredited members for all their continued efforts in developing and maintaining an outstanding public-sector risk management program. DL/ds G:\Committees\Board Of Directors\2018\ \2017-IMAP Accreditation Awards-Memo.Doc 54

58 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Executive Board Kathleen Gargano, Nominating Committee Chair DATE: February 14, 2018 RE: Nomination of Chair-Elect Action Requested: Approve the nomination of Mike Braiman of Wilmette as Chair-Elect for Background/Discussion: Dave Clark, who was elected to Chair for , has left the Village of Glencoe and can no longer serve as Chair. Therefore, pursuant to Section 2.06 of the IRMA Bylaws, Jessica Frances (Chair-Elect) is automatically the Chair and there is a vacancy in the office of Chair-Elect. As the Immediate Past Chair, I serve as the Chair of the Nominating Committee. I have convened a Nominating Committee consisting of myself, Jessica Frances and Drew Irvin, to recommend a person to become Chair-Elect. The Nominating Committee has nominated Mike Braiman of Wilmette to serve as Chair-Elect. Mr. Braiman has been a member for both large and small members and has served in the IRMA Committee system for a number of years. Mr. Braiman has indicated that he will accept the nomination. The Committee would like to thank Dave Clark for his efforts and contributions in serving IRMA over the years. Please find attached a letter addressed to the Board of Directors from Dave Clark. Recommendation: Approve the nomination of Mike Braiman to serve as Chair-Elect for Executive Board 2/28/18: The Executive Board approved the nomination of Mike Braiman to be Chair-Elect for KG/ds Attachment G:\Committees\Executive Board\2018\ \Nomination of Chair Elect.2018.doc 55

59 January 29, 2018 Intergovernmental Risk Management Agency Board of Directors Four Westbrook Corporate Center Suite 940 Westchester, IL Dear Members of the Board of Directors, I regret to inform you that I am no longer employed by an Intergovernmental Risk Management Agency (IRMA) employer and therefore I cannot fulfill my obligation as Chairman of the Board of Directors. I apologize for any inconvenience that this situation may have caused the IRMA organization. I have personal faith that IRMA will proceed without missing a beat as it is served by extremely professional individuals on all committees and a tremendous staff. I encourage each of you as members (and staff) to continue to be as involved as possible in order to advance the organization's success into the future. I was truly looking forward to being the Chairman. Under the leadership of Margo Ely, IRMA continues to be at the top of its' game in all aspects of public sector risk management. During my time of involvement with IRMA, which spans back to the late 1980's, IRMA has continued to grow, evolve, and match services to member expectations. I am very proud of my professional association with IRMA. I was looking forward to seeing first hand what the future would bring. At this time, I will be cheering from the sidelines. All the best to each of you in your personal and professional endeavors. Sincerely, David Clark Cc: Margo Ely, Executive Director IRMA Staff 56

60 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government I. CALL TO ORDER BOARD OF DIRECTORS Meeting Minutes Wednesday, December 13, 2017 Westbrook Corporate Center Conference Room 9:30 a.m. Chair Gargano called the meeting to order at 9:30 a.m. Ely called the roll and a quorum was declared. II. PRESENTATION OF INNOVATION AWARD TO HANOVER PARK Ely presented the award to the Hanover Park Fire Department on their SMARTER Study. A presentation was given by Chief Craig Haigh and Dr. Denise Smith, Director, First Responder Health & Safety Laboratory of Skidmore College regarding the Department s participation in a national research project targeted at studying seen and unseen health implications that firefighters encounter to improve equipment and reduce line-of-duty injuries and deaths. III. RECOGNITION OF OUTGOING IRMA LEADERS Ely commented she appreciates our members participating on the committees and recognized Kathleen Gargano, Outgoing Chair; Jessica Frances, Outgoing Chair of the Administration & Finance Committee. Also recognized were the following: Administration & Finance Committee Darrell Langlois (Village of Hinsdale) Doug Haywood (Village of Mundelein) Coverage, Claims & Litigation Committee Sharon Peterson (City of Countryside) Carol LeBeau (City of West Chicago) Membership Relations Committee Colleen Nigg (Village of Barrington) Eric Ertmoed (Village of Lisle) Jake Rife (Village of Cary) Training & Education Committee Jennifer Clough (Village of Lake in the Hills) Brendan McLaughlin (Village of LaGrange Park) PWSC Liaison 2017 Tim Cassidy (Village of Northbrook) FCSC Liaison 2017 Brian Budds (Village of Western Springs) PCSC Liaison

61 Board of Directors Meeting Minutes December 13, 2017 Page 2 IV. CONSENT AGENDA Gargano mentioned the items were listed below and can be found in the member section of the IRMA website. A voice vote was not needed. V. EXECUTIVE DIRECTOR/STAFF REPORT Update on Ad Hoc Committee: Exposure Base Ely commented that the committee will be looking at the exposure base and that everyone is welcome to come to all of the meetings. We will keep you updated as the committee meets. VI. CHAIR S REPORT A. Changes in IRMA Delegates/Alternates Gargano welcomed the following new Delegates/Alternates: Jake Rife, Delegate Cary Courtney Sage, Alternate Cary Russ Wajda, Delegate Hillside Joe Pisano, Alternate Hillside Maureen Potempa, Alternate Clarendon Hills Zach Creer, Delegate LaGrange Andrianna Peterson, Alternate - LaGrange B. NOMINATING COMMITTEE REPORT SLATE OF CANDIDATES FOR 2018 OFFICERS Irvin commented he was thankful for everyone who has volunteered to serve and put in the time and thanked Clark for helping him put this together. A motion was made by Irvin and seconded by Wachtel to elect the candidates for The motion carried. VII. ACTION ITEMS Gargano mentioned there are a lot of items here and with the interest of time, she asked for a motion to approve action items in omnibus fashion. A motion was made by Clark and seconded by Frances. Gargano asked if there were any questions on any of the agenda items. Hearing none. A voice vote was called and the motion carried. Ely commented it will be appropriate to approve the action items that are listed below: A. Approval of Minutes of October 16, 2017 B. Village of Westchester Removal from WC Focus Program Ely commented the removal of Westchester from the WC Focus Program because they have given us notice that they are leaving IRMA effective January 1, Staff is going to invest our time in the focus program to another member. 58

62 Board of Directors Meeting Minutes December 13, 2017 Page 3 C. Village of Lincolnshire Membership Application Ely commented that at a recent board meeting, Lincolnshire decided to go with private insurance finding that the IRMA pricing was not competitive with the private marketplace. D. Village of Mount Prospect Membership Application Ely commented that staff was at Mount Prospect s board workshop meeting for the staff recommendation and also an outside consultant recommendation to join IRMA, because we provide excellent coverage/services and are priced competitively. By joining IRMA, Mount Prospect is projected to save approximately $300,000 a year. Mount Prospect will take action at their next Board meeting. Staff anticipates that Mount Prospect will be joining IRMA effective January 1, The action was amended to include the provision of coverage to Mount Prospect at limits of $15 million. E. West Central Consolidated Communications Membership Application Ely commented that the dispatching agency will be joining IRMA once they get up and running this spring. F. Proposed Enhancements of IRMA s Long-Term Growth Plan Ely gave a brief overview of the changes to the growth plan to the board. G. NSN Unemployment Administration Contract Extension Ely commented the Unemployment Administration Contract is no change to the pricing. H Final Budget Ely commented you are approving the 2018 Budget with a rate of 1.99, which is a reduction in the rate. The way we are doing that is by utilizing the $5 million from our interest income from 2017 as a rate reduction. Frances gave an overview of the budget to the board. I Final Interest Income Credit Ely commented the interest income credit is that we will return $7 million to our membership in A roll call vote was taken to approve the action items listed above. All were in favor. VIII. IX. EXECUTIVE SESSION None ADDITIONS TO AGENDA Adoption of the Sexual Harassment Policy Ely commented there is a handout out on the table for all of your employees to have that training. If you have any questions on the training or on a policy, IRMA staff will be happy to assit. A motion was made by Irvin and seconded by Frances to approve the adoption of the Sexual Harassment Policy. The motion carried. 59

63 Board of Directors Meeting Minutes December 13, 2017 Page 4 X. CONFIRMATION OF NEXT MEETING Wednesday, March 21, 9:30 a.m. Westbrook Corporate Conference Center XI. ADJOURNMENT A motion was made by Irvin and seconded by Clark to adjourn the meeting. A voice vote was called and the motion carried. Submitted by: Approved by: Margo Ely Executive Director Jessica Frances IRMA Chair G:\Committees\Board Of Directors\2018\ \Bodmeetingminutes Docx 60

64 61

65 62

66 63

67 64

68 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Board of Directors Coverage, Claims & Litigation Committee Susan Garvey, Director of Legal Services DATE: February 2, 2018 RE: Modifications to CCL Committee Statement of Responsibilities Action: Approve the modifications to the Committee s Statement of Responsibility; this item requires approval by the Board of Directors. Background/Discussion: In reviewing the Committee s Statement of Responsibility in preparation of the Committee s first meeting, Staff has identified two provisions of the Statement that are appropriate for modification. Staff is proposing the following modifications. Item 1 on the Committee s Statement of Responsibility provides for the Committee s responsibility to review and approve contractual services in excess of $15,000. Included in the list of contractual services to be reviewed is Support Services for the Claims Department. Staff is recommending that this be removed from the Committee s responsibilities. The support services provided to the Claims Department are services such as nurse case managers or medical bill reviews. These services are generally provided on a per claim or per service basis and charged back to the claim. Since these services are charged back to the claims files, they are not a specific budget item. Item 9 on the Committee s Statement of Responsibility provides for the Committee to Review selected cases involving Declination/Reservation of Rights letters to gain an understanding of the coverage. The Committee s other responsibilities include monitoring and reviewing the Coverage Documents for changes, annually approving the re-insurance program, and reviewing Appeal Decisions and making recommendations to the Executive Board for appropriate changes to coverage. Any controversial coverage matters are brought to the Committee through any of these responsibilities, making item 9 duplicative. The Statement of Responsibility with the proposed changes is attached for the Committee s consideration. Recommendation: Approve the proposed changes to the Committee s Statement of Responsibility. Coverage Claims and Litigation Committee 2/8/14: The CCLC approved the changes to the Committee s Statement of Responsibility. Executive Board 2/28/18: The Executive Board received the Modification to the CCLC Statement of Responsibilities. There was no discussion on this item. SG/ds G:\Committees\Coverage, Claims & Litigation Committee\2018\2-8-18\Modifications to Statement of Committee Responsibilities.doc 65

69 COVERAGE, CLAIMS & LITIGATION COMMITTEE STATEMENT OF RESPONSIBILITY The Coverage, Claims & Litigation Committee will be primarily responsible for the development of policies and procedures affecting the claims and litigation handling for the IRMA membership. 1. Review and recommend approval of contractual services where the value is in excess of $15,000 as follows: Support Services for the Claims Department Commercial Insurance Coverage Broker Insurance Services Independent Claims and/or Litigation Audits 2. Monitor IRMA Litigation Management Policy and review approved list of IRMA defense attorneys. 3. Monitor and review the IRMA Coverage Document and recommend new or additional types and levels of coverages for the following coverage year. 4. Annually recommend approval of the renewal of the insured/self-insured coverage program. 5. Annual review and approval of the Committee s portion of the line item budget. The recommended budget will be forwarded for final approval to the Executive Board. 6. Review coverage appeal decisions and make recommendation(s) to the Executive Board regarding the need for coverage modifications, if any. 7. Review and approve claim/lawsuit settlements within the Committee s authority level and consistent with IRMA s Claim Policy. 8. Regularly review open and closed claims/lawsuits, at least on a quarterly basis, using guidelines established by AGRIP and IRMA. 9. Review selected cases involving Declination/Reservation of Rights letters to gain an understanding of the coverage Review the necessity for a coverage workshop on an annual basis and if needed, facilitate the Coverage Workshop Any additional responsibilities as assigned by the Chair of IRMA Serve as the Appeals Committee for appeals of settlement recommendations in accordance with the Section 4.02A. of the Bylaws Objection to Settlement, Member Right to Defend, Right to Appeal Settlement. Adopted 11/89 Revised 9/01 Revised 10/04 Revised 3/23/05 Revised 1/7/07 Revised 3/14/12 G:\IRMA Organization\WEBSITE\WORD DOCUMENTS\BOARD & COMMITTEES\Statement of Responsibility-Coverage Claims & Litigation Committee.doc 66

70 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Membership Relations Committee Dan LeTourneau, Director of Risk Management Services DATE: February 7, 2018 RE: 2017 Member Participation Report Action Requested: Approve the 2017 IRMA Member Participation Report and recommend sending the corresponding participation encouragement letters to members. Background/Discussion: IRMA s continued success as an intergovernmental pool can be largely attributed to the membership s interest and participation in the organization. The participation rates are analyzed in four areas: Board meetings, standing/ad hoc committees, steering committees, and standing committee chairs/steering committee officers. The report includes established guidelines and formulas used to determine the participation percentages. Each category of participation is weighted based on its essential value to IRMA, with the greatest weight given to Board of Directors meetings. Based on the 2017 membership participation percentages identified below, overall participation increased from 67.1% in 2016 to 69.8% in The number of members in Category 1 (80% or greater) increased from 27 to 31, while the number of members in Category 3 (40% or less) remained at 8. The chart below provides a side by side comparison between 2016 and 2017 participation by category: Category 1 27 members 31 members Category 2 34 members 31 members Category 3 8 members 8 members Overall Percent 67.1% 69.8% Category I (31 Members) Members with an annual percentage of 80% or above receive a letter of appreciation for their commitment to IRMA. IRMA Member Board Meeting Participation (max 50%) Standing and Ad-Hoc Committees (max 25%) Steering Committees (max 20%) Standing Chairs & Steering Officers (max 5%) Total (max 100%) Barrington 50.00% 25.0% 20.0% 5.0% 100.0% Brookfield 50.00% 25.0% 20.0% 5.0% 100.0% Flossmoor 50.00% 25.0% 20.0% 5.0% 100.0% Hinsdale 50.00% 25.0% 20.0% 5.0% 100.0% LaGrange Park 50.00% 25.0% 20.0% 5.0% 100.0% Libertyville 50.00% 25.0% 20.0% 5.0% 100.0% Lincolnwood 50.00% 25.0% 20.0% 5.0% 100.0% Riverside 50.00% 25.0% 20.0% 5.0% 100.0% Lake Bluff 50.00% 25.0% 15.0% 5.0% 95.0% 67

71 Memorandum to Membership Relations Committee Re: 2017 Member Participation Report February 7, 2018 Page 2 of 4 River Forest 50.00% 25.0% 15.0% 5.0% 95.0% Darien 50.00% 25.0% 20.0% 0.0% 95.0% Lake Forest 50.00% 25.0% 20.0% 0.0% 95.0% Lake in the Hills 50.00% 25.0% 20.0% 0.0% 95.0% Mundelein 50.00% 25.0% 20.0% 0.0% 95.0% Roselle 50.00% 25.0% 20.0% 0.0% 95.0% Villa Park 50.00% 25.0% 20.0% 0.0% 95.0% Lemont 50.00% 25.0% 13.3% 5.0% 93.3% Crystal Lake 50.00% 25.0% 15.0% 0.0% 90.0% Glencoe 50.00% 25.0% 10.0% 5.0% 90.0% Rolling Meadows 50.00% 25.0% 15.0% 0.0% 90.0% Cary 50.00% 25.0% 13.3% 0.0% 88.3% Countryside 50.00% 25.0% 13.3% 0.0% 88.3% Northbrook 37.50% 25.0% 20.0% 5.0% 87.5% Western Springs 37.50% 25.0% 20.0% 5.0% 87.5% Hanover Park 50.00% 25.0% 10.0% 0.0% 85.0% Carol Stream 37.50% 25.0% 20.0% 0.0% 82.5% Lisle 37.50% 25.0% 20.0% 0.0% 82.5% Wilmette 37.50% 25.0% 20.0% 0.0% 82.5% Winfield 37.50% 25.0% 20.0% 0.0% 82.5% Burr Ridge 37.50% 25.0% 13.3% 5.0% 80.8% Woodridge 50.00% 25.0% 0.0% 5.0% 80.0% Category II (31 Members) Members with a participation rating between 79% and 41% will be sent a letter thanking them for their participation and encouraging them to improve their participation over the next year. IRMA Member Board Meeting Participation (max 50%) Standing and Ad-Hoc Committees (max 25%) Steering Committees (max 20%) Standing Chairs & Steering Officers (max 5%) Total (max 100%) Crete 37.50% 25.0% 15.0% 0.0% 77.5% Northfield 50.00% 25.0% 0.0% 0.0% 75.0% Homewood 25.00% 25.0% 15.0% 5.0% 70.0% Bartlett FPD 50.00% 0.0% 20.0% 0.0% 70.0% Morton Grove 50.00% 0.0% 20.0% 0.0% 70.0% Stickney 50.00% 0.0% 20.0% 0.0% 70.0% Westmont 50.00% 0.0% 20.0% 0.0% 70.0% West Chicago 37.50% 25.0% 6.7% 0.0% 69.2% NEMRT 50.00% 0.0% 15.0% 0.0% 65.0% Richton Park 50.00% 0.0% 15.0% 0.0% 65.0% 68

72 Memorandum to Membership Relations Committee Re: 2017 Member Participation Report February 7, 2018 Page 3 of 4 IRMA Member Board Meeting Participation (max 50%) Standing and Ad-Hoc Committees (max 25%) Steering Committees (max 20%) Standing Chairs & Steering Officers (max 5%) Total (max 100%) Indian Head Park 50.00% 0.0% 13.3% 0.0% 63.3% Kenilworth 37.50% 25.0% 0.0% 0.0% 62.5% Palos Park 37.50% 25.0% 0.0% 0.0% 62.5% Park Forest 50.00% 0.0% 5.0% 5.0% 60.0% Winfield FPD 50.00% 0.0% 10.0% 0.0% 60.0% Carol Stream 37.50% 0.0% 20.0% 0.0% 57.5% FPD Hillside 37.50% 0.0% 20.0% 0.0% 57.5% Sugar Grove 37.50% 0.0% 20.0% 0.0% 57.5% Bloomingdale 50.00% 0.0% 6.7% 0.0% 56.7% Palos Heights 50.00% 0.0% 6.7% 0.0% 56.7% Lake Zurich 50.00% 0.0% 5.0% 0.0% 55.0% Bartlett 37.50% 0.0% 13.3% 0.0% 50.8% Arlington Heights 25.00% 25.0% 0.0% 0.0% 50.0% Cary Library 50.00% 0.0% 0.0% 0.0% 50.0% District Oak Brook 0.00% 25.0% 20.0% 5.0% 50.0% West Chicago 25.00% 0.0% 20.0% 5.0% 50.0% FPD Willowbrook 50.00% 0.0% 0.0% 0.0% 50.0% Addison 25.00% 0.0% 20.0% 0.0% 45.0% Berkeley 25.00% 0.0% 20.0% 0.0% 45.0% Westchester 25.00% 0.0% 20.0% 0.0% 45.0% Olympia Fields 37.50% 0.0% 6.7% 0.0% 44.2% Category III (8 Members) For Members with participation rates of 40% or below, or members not attending at least two (2) Board of Directors meetings, a letter will be sent that outlines the importance of member participation with a request that the Member improves their level of participation in the future. Those members in Category III for two consecutive years will receive a letter requesting immediate improvement in their participation or be referred to the Membership Relations Committee for further action. IRMA Member Board Meeting Participation Standing and Ad-Hoc Steering Committees Standing Chairs & Total (max 100%) 69

73 Memorandum to Membership Relations Committee Re: 2017 Member Participation Report February 7, 2018 Page 4 of 4 (max 50%) Committees (max 25%) (max 20%) Steering Officers (max 5%) LaGrange 25.00% 0.0% 15.0% 0.0% 40.0% NIPSTA** 37.50% 0.0% 0.0% 0.0% 37.5% West Dundee 37.50% 0.0% 0.0% 0.0% 37.5% Tinley Park 12.50% 25.0% 0.0% 0.0% 37.5% Clarendon Hills 12.50% 0.0% 15.0% 0.0% 27.5% Hazel Crest 12.50% 0.0% 15.0% 0.0% 27.5% LTACC 25.00% 0.0% 0.0% 0.0% 25.0% East Hazel Crest* 0.00% 0.0% 10.0% 0.0% 10.0% IRMA Average 40.9% 14.3% 13.7% 1.4% 69.8% * Two years in Category III ** Three years in Category III Recommendation: Approve the 2017 Annual Membership Participation Report and participation encouragement letters to be sent to members based on their category of participation. Membership Relations Committee 2/14/18: The MRC approved the 2017 Annual Membership Participation Report and the participation encouragement letters to be sent to members based on their category of participation. Staff will call all members in Category III. Executive Board 2/28/18: The Executive Board approved the Membership Participation Report with the following revision Burr Ridge and Woodridge should be moved to the Category I table as both have a participation percentage of 80% or above, which has been done. DLT/ds G:\Committees\Membership Relations Committee\2018\ \2017 Member Participation Report Memo.Docx 70

74 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: Membership Relations Committee FROM: Dan LeTourneau, Director of Risk Management Services DATE: February 1 st, 2018 RE: Revision to MRC Statement of Responsibility Action Requested: Approve staff s recommendation to revise item #8 on the MRC Statement of Responsibility policy regarding member exit interviews, and update Items #6 & #7 to reflect the new Workers Compensation Focus Program. Background: During review of the Membership Relations Committee Statement of Responsibility it was noted that item #8 regarding an IRMA Member exit interview process has not been utilized and does not reflect the current process of member retention. Item #8 of the current MRC Statement of Responsibility outlines a process of IRMA Exit Interviews conducted within 60 days of receiving notice of a member withdrawal with the MRC Chair or Committee member present. It requires the MRC Chair or representative to prepare a written report at the next Board of Directors meeting. This exit interview process outlined in item #8 has not been utilized to obtain information from exiting members regarding their reasons for leaving IRMA. The information has been obtained from IRMA staff and reported to the Membership Relations Committee for discussion and follow-up actions as needed. Discussion: As part of IRMA Staff s active efforts to retain members of IRMA, we have continually promoted our process of meeting with members at onset of any proposed effort to evaluate any other viable risk management and insurance options. Staff would immediately setup onsite meetings at member locations to discuss any issues or desires to obtain alternative quotes. Any issues or concerns with IRMA giving rise to a member pursuing alternative quotes are documented and addressed, with all information being reported back to the Membership Relations Committee including any specific concerns expressed. This process includes meetings with both member staff and Board members whom are considering other risk management options to further educate them on the many benefits, resources and advantages of IRMA and intergovernmental risk pooling. If members have expressed an interest in obtaining an additional quote not due to any issue or concern regarding IRMA but have a sincere interest to evaluate IRMA and its services, we encourage the member to allow us to actively participate in the process to ensure they are receiving a fair and equitable comparison. We believe our current proactive process identified above allows for a more timely and specific response to any members concerns which may give rise to them pursuing options outside of IRMA. Another benefit of this process is ability to address or correct any concern early in the process to reduce the likelihood of receiving a notice of withdrawal from any IRMA member. Based on the above discussion we are recommending the attached outlined revisions to items #6, #7 & 8 in order to update the document to reflect the current practices and procedures. Recommendation: Approve the staff recommendation to revise the Membership Relations Committee Statement of Responsibility to update policy items #6, #7, & #8. Membership Relations Committee 2/14/18: The MRC approved the recommended revisions to the MRC Statement of Responsibility. Executive Board 2/28/18: The Executive Board received the recommended revisions to the MRC Statement of Responsibility. There was no discussion on this item. 71

75 MEMBERSHIP RELATIONS COMMITTEE STATEMENT OF RESPONSIBILITY 1. Coordinate and approve the annual membership marketing program. 2. Review the annual membership participation report and follow-up on recommendations. 3. Annual review of new membership selection guidelines, including special district guidelines. 4. Review membership applications and reports prepared by the IRMA staff and report the findings and recommendations to the Board of Directors. 5. Annually review and report on the future membership direction of IRMA, taking into consideration the expected or desired growth of IRMA; future revenue base growth, new membership markets, loss of members, need for special marketing efforts to increase membership, etc. 6. Review the Annual State of the Membership Report to determine those members that do not meet membership standards established by IRMA and recommend remedial action, including the IRMA Watchlist Workers Compensation Focus Program. 7. Coordinate the IRMA WatchlistWorkers Compensation Focus Program process and review the Quarterly Watchlist Workers Compensation Focus Program Member Reports to evaluate progress and make recommendations. 8. Committee Chair or Committee Member designee to coordinate and attend IRMA Member exit interviews to be held within 60 days of receiving IRMA staff will meet with an IRMA member contemplating issuing or having issued a written notice of withdrawal from the Pool.a Member and Staff will prepare a written memoreport detailing the results of the meeting and member retention actions for the MRC, Executive Board andfor the next regularly scheduled Board of Directors meeting. 9. Review and report on periodic market comparison studies performed by independent consultants. 10. Monitor federal and state proposed legislation, administrative rules or regulations which may impact operations of IRMA or its individual Members; reporting to the IRMA Board of Directors the progress of such legislation and recommend course of action in supporting or opposing such legislation. 11. Propose legislation, rules or regulations to benefit the IRMA organization and/or its Members and recommend a course of action to obtain the passage of any such legislation. 12. Coordinate legislative lobbyist efforts in Springfield. 13. Annual review and approval of the Committee s portion of the line item budget. The recommended budget will be forwarded for final approval to the Executive Board. 14. Such further responsibilities as may be assigned by the Chair of IRMA. G:\IRMA Organization\Website\WORD DOCUMENTS\BOARD & COMMITTEES\Membership Relations Committee Statement Of Responsibility.Doc Adopted 11/89 Revised 9/01 Revised 3/23/05 Revised 1/07 Revised 1/14/09 Revised 2/18 72

76 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Training & Education Committee Membership Relations Committee Administration & Finance Committee Executive Board Jennifer Swahlstedt, Risk Management & Training Manager DATE: February 1, 2018 RE: Grant Program Guidelines Action Requested: Approve grant guidelines as presented. Background/Discussion: At the November 8, 2017 MRC meeting, the committee reviewed and voted on changes to the Membership Participation Policy to include that a member must attend at least two (2) of the prior four (4) Board of Director meetings to be eligible to receive IRMA grant funding. This item advanced to the Executive Board Meeting on November 29, 2017, wherein the Executive Board revised this direction to provide staff discretion as to participation levels, allowing for consideration of participation in all IRMA meetings, rather than just Board of Director meetings, and also consideration of attendance at trainings and other participation activities. Additionally, at the November 2017 meeting, the MRC voted that members who have withdrawn or are in the withdrawal process, should no longer be eligible to participate in the Workers Compensation Focus Program. The Executive Board approved this item and further directed that withdrawn/withdrawing members are no longer eligible for any grant program as well. The attached General Grant Guidelines were added to the website for membership reference and are reflective of the Executive Board action. Recommendation: Approve the grant guidelines as outlined in the attachment. Training & Education Committee, 2/1/18: The TEC discussed the Grant Guidelines and voted to approve the grant guidelines with a minimum participation requirement of attendance at 2 of the last 4 BOD meetings with an appeal option for members who are denied a grant for lack of participation. However, TEC directed that withdrawn and withdrawing members should have no such appeal right. Membership Relations Committee, 2/14/18: The MRC agreed with the TEC motion. Administration & Finance Committee, 2/15/18: The AFC discussed that participation is more than simply attending BOD meetings, which has shown no correlation to reduction of risk for the pool. The grant guidelines were approved as originally presented in the attachment, which does not include a minimum participation threshold of attending at least 2 of the last 4 Board of Director meetings. 73

77 Executive Board, 2/28/18: The Executive Board declined to adopt a threshold of 2 of the last 4 BOD meetings, approved of an appeal right to the TEC for members who are denied a grant for lack of sufficient participation, approved that members that have provided notice of withdraw have no appeal rights. In addition, the Executive Board modified language to include a reminder to the pool that grants are a privilege, which are dependent on the BOD annual approval of budget funding. The attached grant guidelines reflect the Executive Board direction. JD/ll Attachment 74

78 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Training & Education Committee Jennifer Swahlstedt, Risk Management & Training Manager DATE: January 10, 2018 RE: Grant Program Guidelines The following grant guidelines have been added to the website: General Grant Guidelines These guidelines establish the basis for application review and remittance of the various grant programs. 1) Members who have withdrawn from the pool or are in the IRMA withdrawal process forfeit any grant application in process and are no longer eligible to apply for, or receive grants. 2) In order to be an eligible recipient, members must have sufficient participation levels in IRMA meetings, trainings and other participation activities. Consistent attendance at Board of Director meetings is required. Any member who has been denied a grant due to poor participation levels, may notify the Executive Director of the desire to appeal staffs denial to the Training & Education Committee within 10 days of staff notification. 2) The grant program is a privilege for members and not an entitlement. The continuation of any grant program is dependent Board of Directors approval of the budget annually. 3) Applications can be submitted at any time, limit one application per program during the fiscal year. 4) All grants are reimbursement based. Members must submit the invoice(s), proof of payment(s), letter of completion (as applicable), and proof of departmental training (as applicable) for remittance. 5) Remittance is on a first-come, first-serve basis until the budgeted amount is depleted. 6) Specific guidelines pertaining to each program are indicated on the individual grant applications. JS/ll 75

79 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Training & Education Committee Jennifer Swahlstedt, Risk Management & Training Manager DATE: January 10, 2018 RE: Proposed Grant Revisions Action Requested: Approve staff recommendations for financial maximums to be placed on all grants. Background: The administration of the Fire Service Equipment Program set the precedent of how new grant programs would be administered. Specifically, the new 2018 grants follow the example of paying 1/3 of the cost up to a previously identified amount. The three long-standing grants, which provide no grant remittance maximums are the Accreditation / Reaccreditation Programs, Injury Prevention Program, and Lexipol Policy Manual Development Program. Discussion: For 2018 and thereafter, staff recommends keeping the existing grant requirements, but implementing the following grant remittance maximums per application: Accreditation / Reaccreditation Program $ 3,500 Injury Prevention Program $ 1,700 Lexipol Policy Manual Development Program $ 4,000 Recommendation: Approve staff recommendations to implement the financial maximums as presented. Training & Education Committee, 2/1/18: The TEC approved recommendations as presented, effective 1/01/2018, requiring the maximum award allotted be evaluated every two (2) years by staff. Executive Board of Directors (2/28/18): The Executive Board approved as recommended. JS/ll 76

80 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY M E M O R A N D U M The Risk Management Solution for Local Government TO: FROM: Administration & Finance Committee Rita Boserup, Director of Financial Services DATE: February 13, 2018 RE: Budget Policy Revision ACTION REQUESTED: Approve the attached revised Budget Policy. BACKGROUND/DISCUSSION: The Village of Arlington Heights is the first new member that has joined IRMA at mid-year in 7 years (NIPSTA in May 2010). Under current accounting standards, revenue should not be allocated to expense line items. The change in standard some years ago requires us to revise a section of the Budget Policy (see attached redline copy). Past practice was to allocate a new member s contribution against any unbudgeted expenses incurred for that new member, with the balance going to the loss fund. Current practice is to record the revenue in the Contribution Revenue line item, with the offset going entirely to the Loss Fund. As these two accounts will be over budget, a budget amendment should be issued to adjust the budget amounts for both accounts, if the amount over is significant. RECOMMENDATION: Consider the revised Budget Policy. Administration and Finance Committee (2/15/18): The AFC approved the revised Budget Policy. Executive Board (2/28/18): The Executive Board approved the revised Budget Policy. RB Attachment G:\Committees\Administration & Finance Committee\2018\ \Cover Memo For Budget Policy.Docx 77

81 BUDGET POLICY The purpose of the Budget Policy is to define parameters for administration of the budget. The policy is to minimize changes to the budget by allowing individual expense line items to exceed the budget as long as the category is within the allowed variance of the budgeted amount. The total budget cannot be exceeded without Board of Directors approval. If required, changes to the budget can be made in two ways, budget amendments and budget transfers. A budget amendment should be used when the total budget is increased while a budget transfer should be used to move budgeted amounts from one category to another without increasing the total budget. The following guidelines are established for administering the budget: Budget amendments require approval of the Board of Directors. When new members are added mid-year that were not included in the original budget for that year, the contribution revenue budget is will be exceeded by the new member contribution. As the offsetting entry for the contribution revenue is to the loss fund, the loss fund budget will be exceeded as well. The contribution is allocated to pay direct costs associated with that member (i.e. commercial insurance) with the balance allocated to the loss fund. In this case, the net budget is not changed since revenues equal expenses, and no transfer or amendment is required. A budget amendment is required to increase both the Contribution Revenue and Loss Fund budgets for the new member s contribution, if that amount is significant. The overall budget will remain balanced. The budget is divided into major categories and line items within those categories. With the Executive Director's approval, a major category (except Personnel Services) can exceed the budget by up to 10%, as long as the total budget is not exceeded. Expense line items can exceed the budget as long as the total budget for the category is not exceeded by more than 10%. The Personnel Services category cannot be exceeded without approval of the Executive Board except that the Executive Director can exceed the personnel category by $10,000 per year for new hires only and report those to the Administration & Finance Committee. Budget transfers between categories will be permitted if one category will exceed its budget by more than 10% and another category has surplus funds. All transfers require the approval of the Executive Director and must be reported to the Administration & Finance Committee. All transfers from/to an individual category are cumulative for the year. Individual budget transfers over $10,000 require the additional approval of the Administration & Finance Committee and will be reported to the Board of Directors at its next meeting. A budget report will be prepared for the Administration & Finance Committee periodically (not less than quarterly) on the budget to actual figures. Approved 12/94 Revised 10/04 78

82 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Eric Helm, Chair Administration & Finance Committee Rita Boserup, Director Finance and Administration Margo Ely, Executive Director DATE: February 13, 2018 RE: 2017 Budget Amendment Action Requested: Approve a budget increase of $430,564 to the Contribution Revenue line item and an offsetting budget increase in the Loss Fund expense line item. The overall IRMA 2017 actual spending budget remains unchanged; this amendment is needed due to the midyear addition of Arlington Heights. Background/Discussion: The IRMA Budget Policy provides that a budget amendment is needed if the total IRMA budget amount is increased. Due to the mid-year addition of the Village of Arlington Heights to IRMA, without a budget amendment, overall expenses will exceed the total budget by approximately $256,000. The entry for a member s contribution payment is to increase revenues with an equal amount entered as an expense to the Loss Fund. It is this entry to the Loss Fund that has caused the expenses to exceed the original budget; the spending for 2017 is under budget. We need to increase the Contribution Revenue budget by $430,564, which is the amount received from Arlington Heights, and increase the Loss Fund line item by the same amount in order to keep the budget balanced. After this amendment, budgeted expenses will total $30,865,616 and we will be under budget by $174,211. Attached are Revenue and Expense Summary Budget Comparison reports, both before and after the amendment. The Budget Policy states that the total budget cannot be exceeded without approval, so the Administration and Finance Committee, Executive Board, and Board of Directors need to approve this change. Recommendation: Approve the budget amendment. Administration and Finance Committee (2/15/18): The AFC approved the budget amendment. Executive Board (2/28/18): The Executive Board approved the budget amendment. RB G:\Committees\Administration & Finance Committee\2018\ Meeting\Budget Adjustment Memo-2017.doc 79

83 80

84 81

85 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY M E M O R A N D U M The Risk Management Solution for Local Government TO: FROM: Administration & Finance Committee Rita Boserup, Director of Financial Services DATE: February 8, 2018 RE: Capitalization Policy ACTION REQUESTED: Approve the attached Capitalization Policy. BACKGROUND: For financial statement purposes, IRMA capitalizes assets at a threshold of $500 and above. Although there is a footnote in the Comprehensive Annual Financial Report indicating that the capitalization threshold is $500, I could not locate a formal policy that memorializes this amount. DISCUSSION: Each year, IRMA purchases various equipment, computers, and furniture. The purpose of this capitalization policy is to indicate a conscious, formal effort by IRMA to develop the treatment of property additions and deletions in the accounting records. A capitalization policy ensures that an item is treated the same way, every time. Capital assets are defined as assets with an initial, individual cost of more than $500 and an estimated useful life of greater than one year. Additions or improvements that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Currently capital assets consist of equipment, computers, and furniture. These items are recorded at cost and are being depreciated over their estimated useful life using the straight-line method. IRMA estimates the useful life of all classes of assets to be five years. IRMA staff will spend significantly less on recordkeeping if the capitalization policy is raised to $5,000 per individual item as they will spend less time maintaining records for each immaterial item. A capitalized asset will also be recorded on the fixed asset schedule in the year it is placed in service, depreciated each year over its useful life, and then eventually disposed of. By having a higher capitalization policy, there is less recordkeeping relating to individual assets that have smaller historical costs. At $5,000, the only items that will be capitalized are major computer purchases, copiers, and a limited amount of furniture. RECOMMENDATION: Consider the new Capitalization Policy. Administration and Finance Committee (2/15/18): The AFC approved the Capitalization Policy. Executive Board (2/28/18): The Executive Board approved the Capitalization Policy. RB Attachment G:\Committees\Administration & Finance Committee\2018\ \Cover Memo For Capitalization Policy.Docx 82

86 Intergovernmental Risk Management Agency Capitalization Policy INTRODUCTION Capital assets are defined as assets with an initial, individual cost of $5,000 or more and an estimated useful life of greater than one year. Additions or improvements that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Currently capital assets consist of equipment, computers, and furniture. These items are recorded at cost and are being depreciated over their estimated useful life using the straight-line method. IRMA estimates the useful life of all classes of assets to be five years. 1. Purpose This accounting policy establishes the minimum cost (capitalization amount) that shall be used to determine the capital assets that are to be recorded in IRMA s annual financial statements. 2. Capital Asset definition A Capital Asset is defined as a unit of property that: (1) has an economic useful life that extends beyond 12 months; and (2) was acquired or produced for a cost of $5,000 or more. Capital Assets must be capitalized and depreciated for financial statement purposes. Additions or improvements that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. 3. Capitalization thresholds IRMA establishes $5,000 as the individual cost threshold for minimum capitalization. Any items costing below this amount should be expensed in IRMA s financial statements. 4. Capitalization method and procedure All Capital Assets are recorded at historical cost as of the date acquired and depreciated using the straight-line method. Tangible assets costing below the aforementioned threshold amount are recorded as an expense for IRMA s annual financial statements. Alternatively, assets with an economic useful life of 12 months or less are required to be expensed for financial statement purposes, regardless of the acquisition or production cost. 5. Effective date This policy is effective for the 2017 fiscal year. Any asset that does not meet the above requirements shall be expensed. 83

87 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY M E M O R A N D U M The Risk Management Solution for Local Government TO: FROM: Administration & Finance Committee Rita Boserup, Director of Financial Services DATE: February 8, 2018 RE: Amendment to the IRMA Flex 125 Plan ACTION REQUESTED: Approve the attached Flex 125 Plan Amendment, effective at the start of the 2019 plan year. BACKGROUND/DISCUSSION: IRMA offers its employees a section 125 flexible spending plan. Recently, the IRS has increased the limit for employee contributions. IRMA s current plan contains a specific a dollar limit. The attached plan change allows for future contribution increases based on the tax code without having to adopt an amendment every time the limit changes. As this affects only employee contributions, it has no cost effect to IRMA. The plan can t be changed during the plan year, so this change will be effective at the start of the 2019 plan year. RECOMMENDATION: Approve the attached Flex 125 Plan Amendment, effective at the start of the 2019 plan year. Administration and Finance Committee (2/15/18): The AFC approved the Flex 125 Plan Amendment. Executive Board (2/28/18): The Executive Board approved the Flex 125 Plan Amendment. RB Attachment G:\Committees\Administration & Finance Committee\2018\ \Cover Memo For Flex 125 Plan.Docx 84

88 ACTIONS TAKEN AND RESOLUTIONS ADOPTED BY CONSENT OF Intergovernmental Risk Management Agency The undersigned, being Intergovernmental Risk Management Agency (the "Employer"), hereby adopt the following resolutions by unanimous consent and direct that this Consent Resolution be entered in the minute books of the Corporation. WHEREAS, the Corporation desires to amend the Intergovernmental Risk Management Agency Flex 125 Plan definition of Flex FSA Adoption Agreement Item VI Flexible Spending Account Elections, FSA section (a), effective at the start of the 2019 plan year and applicable to all future plan years, as set forth in the attached Amendment; and NOW, THEREFORE, BE IT RESOLVED, that the Corporation hereby adopts the attached amendment effective at the start of the 2019 plan year and applicable to all future plan years; BE IT FURTHER RESOLVED, that the officers of the Corporation are authorized and directed to take any and all action as may be necessary to effectuate this Resolution. By By By Date Date Date 85

89 AMENDMENT TO THE INTERGOVERNMENTAL RISK MANAGEMENT AGENCY 125 Cafeteria Plan This Amendment to the Intergovernmental Risk Management Agency Flex 125 Plan is adopted by INTERGOVERNMENTAL RISK MANAGEMENT AGENCY (the "Employer"), effective as of the date set forth herein. WHEREAS, the Employer desires to amend Plan s definition of Flex FSA Adoption Agreement Item VI Flexible Spending Account Elections, FSA section (a); NOW, THEREFORE, effective at the start of the 2019 plan year and applicable to all future plan years, the definition Flex FSA Adoption Agreement Item VI Flexible Spending Account Elections, FSA section (a) in the Plan is replaced with the following definition: The maximum annual salary reduction amount an Employee may elect for any Plan Year will be equal to the IRS annual statutory limit. IN WITNESS WHEREOF, and as evidence of the adoption of the amendments set forth herein, the undersigned officer of Intergovernmental Risk Management Agency has executed this Amendment to the Plan, this day of, Intergovernmental Risk Management Agency By: Title: 86

90 Summary of Material Modification to Intergovernmental Risk Management Agency Flex 125 Plan To: Employee and COBRA Participants in the Intergovernmental Risk Management Agency Flex 125 Plan From: Rita Boserup, Director of Financial Services & Administration Date: February 16, 2018 The Intergovernmental Risk Management Agency Flex 125 Plan sponsored by Intergovernmental Risk Management Agency has been revised. All of the changes summarized below are effective at the start of the 2019 plan year and applicable to all future plan years. The maximum annual salary reduction amount an Employee may elect for any Plan Year will be equal to the IRS annual statutory limit. Please attach this Summary of Material Modification to your Summary Plan Description for future reference. Please contact me, Rita Boserup, Director of Financial Services & Administration (acting on behalf of the plan administrator, Intergovernmental Risk Management Agency), if you have questions regarding the information in this Summary of Material Modification, or if you need another copy of the Summary Plan Description. I can be reached at (708) Or you can write me at: Intergovernmental Risk Management Agency 4 Westbrook Corporate Center, Suite 940 Westchester, IL Attn: Rita Boserup, Director of Financial Services & Administration ERISA Information: Plan Sponsor: Intergovernmental Risk Management Agency Sponsor s EIN: Plan Name: Intergovernmental Risk Management Agency Flex125 Plan Plan Number: 503 Plan Year: 01/01/

91 INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: Executive Board Margo Ely, Executive Director DATE: February 23, 2018 RE: Tinley Park Request for Additional Time to Rescind Notice of Withdrawal ACTION REQUESTED: Consider a request from Tinley Park to allow until August 31, 2018 to rescind a timely Notice of Withdrawal from IRMA, and to grant the Executive Director the authority to accept any such requested rescission with ratification by the Board at the October 17, 2018 meeting. BACKGROUND: Since its inception, IRMA has required advance notice from any member looking to withdraw from the pool. When IRMA was first formed, notice of withdrawal was required one year in advance. In 2013, the Illinois legislature passed Public Act at the urging of private commercial insurance companies and brokers, which amended the Intergovernmental Cooperation Act to provide that risk pool requirements for written notice of withdrawal cannot exceed 120 days. In response to the new law, the IRMA Board of Directors amended the IRMA Contract & Bylaws, the IRMA Statement of Guidelines for Membership Selection, Withdrawal and Expulsion and the Member Reserve Fund Policy to comply with the new law, while also maintaining the financial integrity of the Pool by assuring sufficient notice prior to the IRMA coverage renewal and budgetary process. As a result, in order to assure the Member s Reserve is returned, a member must provide at least 9 months notice of withdrawal. This requirement is provided in the IRMA Contract and Bylaws as well as the IRMA Statement of Guidelines for Membership Selection, Withdrawal & Expulsion and the IRMA Reserve Fund Policy and Procedure. A member can leave the pool with the required minimum 120 days notice, but would not be entitled to the return of their Member s Reserve Fund. DISCUSSION: The Village of Tinley Park intends to engage in due diligence to explore insurance options other than IRMA, to take effect January 1, 2019, and needs time to do so. (Attachment A, Tinley Park Request). However, the Village wants to make sure it retains its Member Reserve Fund by providing Notice of Withdrawal 9 months in advance of 1/01/2019, which would be March 30, The IRMA Statement of Guidelines for Membership Selection, Withdrawal and Expulsion requires that the member must rescind the Notice of Withdrawal within 60 days of proper submittal of the Notice of Withdrawal, which includes a member board resolution. This rescission must be approved by the Member Relations Committee, the Executive Board and the Board of Directors. (Attachment B, IRMA Statement of Guidelines for Membership Selection, Withdrawal and Expulsion). The most recent time the Board has considered such a request was from Buffalo Grove in 2016 when the Village requested until July 28, 2016 to rescind their notice, which was originally filed on March 29 th, This request was approved by the Board of Directors. Tinley Park is IRMA s 2 nd largest member and has positive loss experience for many years, as reflected in Attachment C. 88

92 Memorandum to Executive Board February 23, 2018 Re: Tinley Park Request for Additional Time to Rescind Notice of Withdrawal Page 2 Timing Concerns IRMA staff begins the process to obtain quotes for excess coverage in June with final numbers arriving in late August/early September. In May, we receive the preliminary loss fund rate report from our actuaries and our members provide their revenue base worksheets in July. These activities are part of the annual budget process and require that we have accurate membership numbers for underwriting purposes. Although staff prefers an earlier decision by Tinley Park, we are able to accommodate their August 31 st request. Advance Approval of Rescission Assuming that Tinley Park requests to rescind its Notice of Withdrawal before September, the next Board Meeting is not until October 17, At that time, staff will present its preliminary budget. In order to prepare the budget, it is important that staff be able to rely on the membership count, its revenues and loss experiences in order to calculate an accurate contribution rate for the entire membership for For this reason, staff recommends that the Board grant staff the authority to grant a rescission if Tinley Park requests to rescind its 2018 Notice of Withdrawal. RECOMMENDATION: Consider Tinley Park s request and give staff the necessary authority to grant the rescission in advance of the October Board meeting. Executive Board 2/28/18: The Executive Board approved of the request from Tinley Park to allow until August 31, 2018 to rescind a timely Notice of Withdrawal from IRMA and to grant the Executive Director the authority to accept such rescission with ratification by the Board of Directors at the October 17, 2018 meeting. ME/ Attachments G:\Committees\Executive Board\2018\ \Tinley Park Request.Doc 89

93 90

94 IRMA STATEMENT OF GUIDELINES FOR MEMBERSHIP SELECTION, WITHDRAWAL & EXPULSION These guidelines have been established and delineated in order to continue to maintain the best possible standards of risk management pooling for all current and future members of IRMA and to provide a fair and reasonable basis upon which to assist in the membership selection process. It is this process and these guidelines that should reasonably assure all members of the best possible protection against unexpected, unusual or unforeseen accidental losses and strive to maintain a common risk profile for all pool members. IRMA TARGET MEMBER GUIDELINES These guidelines will be utilized by IRMA staff to assist in focusing the Pool s marketing efforts towards public entities meeting a majority of the criteria identified below. IRMA will use its normal evaluation criteria for prospective members completing an IRMA application. Professionally Managed Located in six collar counties surrounding Chicago Population between 2,500 and 75,000 Looking for long-term stability and enhancement of their loss prevention program versus lowest available price Willingness to dedicate the partial resources of a full-time employee to participate in pooling Favorable loss history as compared to IRMA targets Financially stable with current financial audit Have in place or willingness to implement: Personnel handbook; ERTW policy; Safety manual; and Sidewalk Inspection/Repair program The information analysis and the interview and on-site inspection will focus on the following general categories: Management/personnel/operational activities Insurance/claim history -- property/casualty/workers' compensation and other Sources of revenue -- taxes, fees, etc. Property owned -- real/personal Property leased -- lessor/lessee Contractual liability process -- construction, maintenance, leases, and other contractual relations Non-contractual tort liability exposure I. PRE-INTERVIEW/ON-SITE INSPECTION DATA A. Membership Application Questionnaire -- In addition to providing basic insurance underwriting information, the questionnaire is designed to provide necessary information to develop an inventory of exposure to loss and focus on both traditional insurable risks and self-insured exposures. It is expected to provide the pool with information to formulate a risk profile of risks common to the IRMA pool and any exposures traditionally not covered by the pool. It is also the desire of the IRMA management that the questionnaire will produce the risk 1 91

95 management information in an orderly and objective manner. B. Current Annual Comprehensive Finance Report -- to evaluate the financial stability of the applicant community and/or the municipality's bond rating. Prospective Member Contribution Size -- An evaluation of the applicant's contribution size shall be done to ensure that there will be no disadvantage in offering membership to municipalities and special districts whose contribution will not cover administration and loss expenses charged against the pool. The minimum contribution size shall be not less than $50,000 per year, exclusive of the experience modifier. D. Risk Management Attitude -- A management interview will help determine management's opinion of the current conditions of the prospective member's safety/risk management program and how strong a commitment the prospective member has toward improved loss control with membership in the IRMA program. The interview will be conducted by the IRMA Executive Director or Director of Risk Management Services and included in the loss control evaluation report prepared on behalf of the applicant. II. INTERVIEW/ON-SITE EVALUATION PHASE This phase of the membership selection process will only occur if the applicant's loss experience record and other data compare favorably to the IRMA membership averages and estimated assigned targets for the last three (3) to five (5) years' loss history. This part of the membership evaluation report will be conducted on-site by the IRMA Executive Director or Director of Risk Management Services experienced in conducting the Agency's annual on-site evaluation. The applicant should set aside several hours of a designated day to meet the demands of this portion of the evaluation report. The interview and on-site evaluation will address all of the following areas: Management Commitment and Direction: - Safety Policy and Management Organization and Personnel Procedure Department Head and Supervisory Participation: - Authority/Responsibility/Accountability Safety Committee/Accident Review Board Development Overall Safety/Loss Prevention Method and Techniques Occupational (work related) Illness and Injury Loss Control Documentation/Recordkeeping of Safety/Loss Prevention/Control Program Fleet Safety Management Liability Exposure Programs 2 92

96 Geography/Population Size/Size of Management Staff For further details see IRMA form entitles "Safety Performance Evaluation Rating". III. WITHDRAWAL & REAPPLICATION The applicant must understand and fully comply with the IRMA withdrawal and reapplication policy as stated. A. Withdrawal In accordance with Section 4.05 (B) of the IRMA Contract and Bylaws, once a member has completed payment of its New Member s Reserve, it may withdraw upon giving at least 120 days written notice. Upon receiving written notification in the IRMA office of a member's intention to withdraw, said member shall be considered a "withdrawn member" from that day forward. B. Early Withdrawal Under certain circumstances, it may be in the best interest of the Pool to waive the 120 day notice of withdrawal requirements. The following criteria will be utilized to determine if an early withdrawal will be granted: 1. Member s claims to contribution ratio exceeds 100% over the past five (5) years; or 2. Expulsion proceedings are being considered; or 3. The Pool may appear to benefit financially, if the member is allowed to withdraw without the one year s notice; or 4. Other identifiable criteria where an early withdrawal would be beneficial to the Pool can be submitted to the Board of Directors with a Membership Relations Committee and Executive Board recommendation. All early withdrawal requests are subject to Board of Director approval per By-law provisions. The decision of the IRMA Board of Directors will be final. If the Board of Directors votes to approve the waiver of the 120 day notice requirement and the request for early withdrawal, the Board of Directors, at its sole discretion, shall establish the effective date of the withdrawal of the MEMBER. C. Withdrawal from IRMA on a date other than the end of any IRMA fiscal year If, as a result of approved early withdrawal or expulsion, a Member s participation in IRMA is cancelled on any date other than the end of the IRMA fiscal year, the Member will receive a reimbursement of the pro-rata share of the Member s contribution to the Loss Fund and the Member s contribution for Commercial Insurance Services, based upon the number of days remaining in the fiscal year following the Member s departure. The member s contribution to administration of the pool for the year of withdrawal shall not be reimbursed. 3 93

97 D. Reinstating Withdrawn Member With a membership goal to retain and recruit good members, the Board of Directors recognizes that under special circumstances there may be a need to permit a member to rescind their notice of withdrawal and reinstate its membership in IRMA. To assist the Membership Relations Committee in determining special circumstances, the following criteria should be considered during the deliberations. 1. The notice of withdrawal is rescinded within sixty (60) days from the receipt of the withdrawal notice by way of a certified copy of a resolution from the member's governing board. 2. The member's decision to withdraw was made without the full knowledge of the facts and ramifications of their coverage and risk management options. 3. The member has been in good standing in IRMA and is able to meet a new member selection criteria and/or other criteria as outlined in the Annual Risk Management Report. 4. The Chief Administrative Officer and Senior Management have demonstrated strong support of the IRMA program, which includes but is not limited to participation in IRMA sponsored programs, and educating and advocating the IRMA organization. 5. The Membership Relations Committee and Executive Board may consider additional criteria relevant to the decision to reinstate a withdrawn member. The Membership Relations Committee will review the requests and forward their recommendation to the Executive Board for further consideration. Upon approval by the Executive Board, the report of the Membership Relations Committee will be placed on the next regular or special meeting of the Board of Directors. The reinstatement shall require the affirmative vote of a majority or more of the entire membership of the Board of Directors. E. Reapplication A withdrawn member shall be unable to reapply for a period of three years from the date the written notification of withdrawal was received in the IRMA office. Furthermore, said withdrawn member must reapply through the normal application process, having to once again meet all requirements and standards for a new member. IV. RATINGS ANALYSIS AND DECISION The Executive Director's office will direct and supervise the gathering of all necessary data and documentation from each of the applicants and will develop and analyze the 4 94

98 information in the appropriate formats for review and recommendation to the Membership Relations Committee. The Committee's review and analysis will compare the applicant's loss history over the past three to five years against the IRMA average for the same period. The same measure will also be performed in evaluating the applicant during the Interview/On-site Evaluation Rating phase of the selection process. As part of the Membership Relations Committee's final evaluation, they will make a recommendation whether the applicant should be granted an experience modifier upon inception, based wholly or in part on the following criteria: A. The Applicant is currently self-insured or participating in an intergovernmental risk management pool. B. The Applicant has available accurate, computerized loss history for the three years required to calculate the experience modifier most recent three to five year period which includes total incurred experience for each individual claim. C. The individualized loss experience will continue to be made available to IRMA for at least two full years after acceptance into IRMA. D. Other objective criteria established upon review of an application. The Committee's recommendations are to be forwarded to the Board of Directors for final decision at the next Board meeting. The applicant will be advised by the IRMA Executive Director in writing of the decision of the Board following the meeting. The written decision will include the details of the membership decision including any special conditions that may have been included in the Board's resolution of approval. Adopted 5/27/87 Revised/Approved 5/95 Revised/Approved 2/00 Revised 12/18/02 Revised 3/26/08 Revised 3/31/10 Revised 7/1/2011 Revised 10/30/13 G:\IRMA Organization\WEBSITE\WORD DOCUMENTS\BYLAWS AND POLICIES\Membership\Statement of Guidelines For Membership Selection-Withdrawal & Expulsion.doc 5 95

99 M E M O R A N D U M INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government TO: FROM: Administration and Finance Committee Executive Board Board of Directors Margo Ely, Executive Director DATE: February 6, 2018 RE: Recommendation from the Ad Hoc Committee: Exposure Base ACTION REQUESTED: Concur with the recommendation of the Ad Hoc Committee: Exposure Base that no further exploration of an alternative exposure base is necessary. BACKGROUND: At the October 16, 2017 Board of Director s meeting, the BOD approved the appointment of an Ad Hoc Committee to explore options to change the denominator in the IRMA contribution formula to something other than revenue, in order to enhance member recruitment and retention efforts. (Attachment A: BOD memo attached). The Committee consisted of 18 members, which are listed in the attached Roster. (Attachment B: Ad Hoc Committee Members). In addition to the Committee members, IRMA staff, Peter Wright of Wright Benefit Strategies, Doug Nishimura and Richard Frese from our actuary Milliman, and AFC Chair Eric Helm, participated in the Committee. The Committee met on December 13, 2017 and January 11, DISCUSSION: At the first meeting, the Committee discussed the objectives of contribution allocation methods for pooling and also some potential objectives of the Committee, including a full review of the revenue rating and experience modifier calculation. (Attachment C: Minutes from December 13, 2017 meeting). The Milliman actuaries explained their process for establishing a loss fund rate, which considers separate exposures for different lines, i.e., revenues for general liability; payroll for worker s compensation; vehicles for auto liability and property for property claims. This is consistent with how private insurance companies establish rates, although insurance carrier rating methods vary considerably including models through subjective marketing adjustments, particularly for new business and renewals and are essentially less transparent and open than the IRMA rating methodology, which is designed to be consistent and fair to all members. In addition, insurance companies offer separate lines of coverage separately, as opposed to the IRMA s all-in coverage for members. As result, insurance companies have various methods of verifying rates/premiums, including frequent payroll audits for worker s compensation coverage. At the end of the December 13 th meeting, the Committee directed Milliman to run a report showing rates per member with the four different exposures and compare these rates to the current rate per $100 of revenue method. In addition, the Committee wanted a presentation of basic financial information for IRMA s contribution formula. At the second meeting, staff provided a presentation of IRMA s contribution formula. The most striking information was a comparison of the relative impact from a revenue increase compared to the impact from an increase or decrease in losses. Attachment D provides the 3 relevant slides that show that the IRMA experience modifier is highly effective in adjusting contributions in response to losses, while revenue increases have a less dramatic impact on contributions. Both the experience modifier and revenue calculations are based on five year averages, thus a change in revenue for a member is less of a factor in rating than actual losses. 96

100 Memorandum Re: Recommendation from the Ad Hoc Committee: Exposure Base Page 2 of 2 In addition, Milliman presented the findings from the Underwriting Formula Exercise. (Attachment E). This information reveals 2 important conclusions. First, an underwriting formula provides a correlation that is less than 2% closer to losses compared with revenue formula (89.8% compared to 88.1% correlation under the revenue model.) Second, an underwriting formula would require IRMA to conduct payroll audits of our members. The Committee discussed how, over time, contributions under both models would likely result in similar contributions due to the impact of the experience modifier. We know that an overwhelming majority of member expenditures are payroll and capital projects. So a large consideration of an expenditure exposure would be payroll. The Milliman exercise also reflects that any such change could result in a significant change approximately 20% of members would see a contribution change of ten percent or more, and several members would see changes exceeding 20%. This type of variation is ill advised and inconsistent with the IRMA core value of stability in contributions. Furthermore, the burden of conducting payroll audits to determine worker classification outweighs the potential increase of less than 2% in risk correlation. There were three dissenting votes to the Committee s recommendation. All three dissents expressed concern that the Committee did not sufficiently explore the issues and should have further analyzed an expenditure definition. Moving Forward: This exercise provided staff with reliable data to address concerns related to our reliance on revenues in our contribution formula. First, this exercise reflects that our formula is fair and equitable and is adjusted by actual losses, with revenue increases having a lesser impact on contributions compared to losses - holding members accountable for losses to a much greater extent than any revenue increase. In addition, this exercise also supports the simple conclusion that revenues are very closely correlated with expenditures, which should always be true for a municipal government. If revenues greatly exceed expenditures over a 5 year period, the entity would receive a direct credit to contributions through the experience modifier if the revenue increase was not tied to services leading to exposures, such as building reserves, in addition to the interest income credit, which would likely increase as well in this scenario. Finally, payroll audits would be absolutely necessary since different jobs have very different risks. Members that do not have Fire Departments have less risk than those members with Fire Departments. The cost and burden of such audits simply outweighs any potential benefit on the marketing side. In conclusion, an underwriting formula could increase correlation to losses slightly, but result in wide variation in premiums compared to today for a significant portion of the membership and require a significant amount of additional work. Over time, it is expected that losses would modify contributions so that they would be similar to the current model due to the experience modifier, which is directly related to losses. Based on this analysis, the Committee recommended maintaining the revenue model. Staff will utilize this information in our member recruitment conversations and keep the membership apprised of its impact. RECOMMENDATION: Concur with the Ad Hoc Committee s recommendation to maintain the status quo. Administration and Finance Committee (2/15/18): The AFC concurred with the Ad Hoc Committee recommendation. Executive Board (2/28/18): The Executive Board concurred with the Ad Hoc Committee recommendation. ME/ds Attachments G:\Committees\Administration & Finance Committee\2018\ \Ad Hoc Committee Recommendation.Doc 97

101 Attachment A 98

102 Attachment A 99

103 Attachment A 100

104 Attachment A 101

105 Attachment A 102

106 Attachment A 103