MEMBERSHIP RELATIONS COMMITTEE Committee Meeting Agenda

INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government MEMBERSHIP RELATIONS COMMITTEE Committee Meeting Agenda I. CALL TO ORDER Wednesday, September 12, IRMA Office 9:30 a.m. II. APPROVAL OF MINUTES: May 16, (pg. 1) III. MEMBER MARKETING & RETENTION (pg. 5) IV. 2019 PRELIMINARY BUDGET (pg. 10) V. VILLAGE OF WESTCHESTER-NOTICE OF WITHDRAWAL STATUS (pg. 11) VI. VILLAGE OF TINLEY PARK-WITHDRAWN ON JANUARY 1, 2019 (pg. 16) VII. REVISION TO STATEMENT OF GUIDELINES FOR MEMBERSHIP SELECTION, WITHDRAWAL & EXPULSION (pg. 19) VIII. SUMMER SAFETY INTERN PROGRAM FINAL OVERVIEW (pg. 25) IX. WORKERS COMPENSATION FOCUS PROGRAM 2 ND QUARTER RESULTS (pg. 26) X. ADDITIONS TO AGENDA XI. XII. CONFIRMATION OF NEXT MEETING - Wednesday, November 7,, 9:30 a.m. IRMA Office ADJOURNMENT To ensure a quorum, please contact Lisa Leban at lisal@irmarisk.org or (708) 236-6343, if you are not able to attend the meeting. Copy to: Jessica Frances, IRMA Chair Vote needed

INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government MEMBERSHIP RELATIONS COMMITTEE Meeting Minutes PRESENT: Bridget Wachtel, Chair Jack Knight Kyle Kordell Keith Sbiral Charles Meyer Janet Gorman (via phone) Michael Braiman Denise Joseph John Prejzner ALSO PRESENT: Margo Ely Dan LeTourneau Jennifer Swahlstedt Lisa Leban Frankie Giannetti Wednesday, May 16, 9:30 a.m. ABSENT: Joyce DeLeon I. CALL TO ORDER Wachtel called the meeting to order at 9:30. A roll call was taken, and a quorum declared. II. III. IV. APPROVAL OF MINUTES: A correction of time was made in the minutes. A motion was made by Prejzner and seconded by Meyer to approve the meeting minutes of May 16,. The motion carried. MEMBERSHIP RECRUITMENT REPORT APRIL LeTourneau gave an update on the recruitment efforts that IRMA has taken and are included in the recruitment and retention report. LeTourneau attended the ILCMA Winter Conference, Metro Managers Golf Outing, and the ILCMA Summer Conference. IRMA also sponsored the IAMMA Spring Conference. Recent recruitment efforts include: Village of Glen Ellyn/ Glenbard Wastewater Authority, SEECOM, Village of Winnetka, Village of Lincolnshire, Village of Elmhurst, Village of Elk Grove Village, City of Wheaton and the Village of Blue Island. IRMA MEMBER STANDARDS & GUIDELINES POLICY UPDATE Wachtel stated that this is more of a housekeeping item. LeTourneau agreed and stated the updates were to update the annual report name and replace the Watchlist Program with the IRMA Workers Compensation Focus Program. A motion was made by Meyer and seconded by Joseph to approve the staff recommendation to update the IRMA Member Standards and Guidelines policy to reflect the updated annual report name, the newer IRMA Workers Compensation Focus Program, which replaced the previous Watchlist Program and the new June publish date. The motion carried. V. IRMA STATEMENT OF GUIDELINES FOR MEMBERSHIP SELECTION, WITHDRAWAL & EXPULSION - POLICY UPDATE Wachtel stated this is another policy update. A motion was made by Joseph and seconded by Kordell to approve the update of the IRMA Statement of Guidelines for Membership Selection, Withdrawal & Expulsion to reflect the referral to the IRMA Bylaws. Section 4.03 -Expulsion of Members requirements and reflect the requirement of five years of loss experience to provide the experience modifier. The motion carried. 1

Membership Relations Committee Meeting Minutes May 16, Page 2 VI. 2017 CLAIMS TO CONTRIBUTION REPORT LeTourneau gave an overview of the Claims to Contribution Report. The report identifies members that could be recommended for the Workers Compensation Focus Program. The report provides an overall Five-Year Member Claims to Contribution ratio for each IRMA member and provide further analysis for those members that have a ratio over 100% to determine if an adverse pattern or trend exists. LeTourneau described the criteria for members asked to participate in the Workers Compensation Focus Program. There were four members participating in the program. Westchester was removed from the program as when they provided notice of their intent to leave IRMA. It is believed that Westchester would have been removed from the program regardless, as their workers compensation claims numbers were down substantially. LeTourneau gave a thorough summary of the members that will remain on the Worker s Compensation Focus Program, which are: Roselle, Brookfield and Carol Stream. A question was asked if the member is required to be in the program, or is the program mandated. LeTourneau stated that we do not typically use the word mandated, however, participation is required. It is a program that was developed to assist members and they are receptive to the help. LeTourneau stated that the new member recommended to be added to the Workers Compensation Focus Program is the Village of Morton Grove. A detailed report was given stating why Morton Grove is an ideal candidate for the Workers Compensation Focus Program. LeTourneau stated that the member was spoken to and was receptive about being included in the program. A motion was made by Knight and seconded by Meyer to accept the 2017 Claims to Contribution Report. The motion carried. VII. VIII. MT. PROSPECT CLAIMS HANDLING Ely stated that Mount Prospect contacted IRMA and would like to have IRMA handle all of their open general liability claims. The number of claims that would be taken over are 6 general liability claims. Ely is hoping that providing this service would be a recruiting tool. The thought is that their Workers Compensation Claims Administration contract ends in December and Ely believes that they will ask IRMA to take the Workers Compensation claims as well. The price outlined in the memo is the amount that IRMA believes will cost our adjusters to take over the claims. Ely stated that these claims should be closed rather quickly. Wachtel asked if there would be an exposure. Ely stated that there would not be an insurance exposure for IRMA. It is our adjusters handling the 6 GL claims. Ely envisions that we would handle this on a case by case basis. We would need to have board approval whenever a new member is accepted, and that member would like IRMA to take over their existing claims. A motion was made by Joseph and seconded by Prejzner to authorize claims administration services for Mount Prospect GL claims effective July 1, for a price of $7,726. The motion carried. ELIMINATION OF IRMA S WRITTEN LEGISLATIVE MISSION STATEMENT Ely stated that upon the website redesign, we found the legislative mission statement. We are not lobbyists and it is not one of our core functions. A motion was made by Kordell and seconded by Meyer to eliminate IRMA s written Legislative Mission Statement. The motion carried. 2

Membership Relations Committee Meeting Minutes May 16, Page 3 IX. 2017 UNEMPLOYMENT COMPENSATION CLAIMS ADMINISTRATION-ANNUAL OVERVIEW LeTourneau gave a summary of the Unemployment Compensation Claims Administration - Annual Overview. There was a very small increase in of less than 1% from 159 claims submitted in 2016 to 174 in 2017. Overall, claims are down 79% since their highest level or 412 in 2013. Their customer service continues to be well received by members. X. SUMMER INTERNSHIP PROGRAM UPDATE LeTourneau stated that we have two interns that will be joining IRMA that are current Safety Program students at Illinois State University. Each intern will spend 2 weeks at the selected member locations. Members have submitted application which outlines the tasks that the interns will be working on. We again anticipate a positive outcome for our Members and Summer Interns. XI. XII. XIII. VI. WORKERS COMPENSATION FOCUS PROGRAM - 1 ST QUARTER RESULTS LeTourneau gave a brief summary of each of the Worker s Compensation Focus Program participants, which are: Brookfield, Carol Stream and Roselle. The reports are included in the packet for review. Overall all member participants are making good progress. RECOMMENDATION ON POSSIBLE MERGER OF TEC & MRC Ely stated that there was an objective for both MRC and TEC to review the possibility of a merger of the two standing Committees. Ely gave an overview of the discussions from the TEC Meeting. TEC voted to be changed to the Training and Risk Management Committee. MRC is more marketing focused which includes membership recruitment and retention. Wachtel stated that the only area that overlaps is member retention. Ely stated that training can also be considered an overlap as that is a marketing tool as well. Carreras suggested that perhaps TEC could provide a report to the MRC to discuss any perceived overlap. Carreras stated there is value in having the two separate committees. Having two separate committees also engages more of the members into participation. When there are items that do overlap would it possible to have a joint meeting or a meeting where we could have different members from the two committees attend. Ely stated the Workers Compensation Focus Program is an example of overlap as the training assists with the decrease in incidents. A motion was made by Meyer and seconded by Kordell to change the Training and Education Committee to the Training and Risk Management Committee and retain two sperate Committees at this time. The motion carried. ADDITIONS TO AGENDA There were no additions to the agenda. EXECUTIVE SESSION Executive Director s Performance Review A motion was made by Joseph and seconded by Meyer to move into Executive Session for the purpose of discussing matters of personnel pursuant to 5 ILCS 120/2(c)(1). Roll was called and the motion carried. XIV. CONFIRMATION OF NEXT MEETING The next meeting of the Membership Relations Committee is scheduled for Wednesday, September 12, at 9:30 a.m. at the IRMA Office. 3

Membership Relations Committee Meeting Minutes May 16, Page 4 XV. ADJOURNMENT At 10:38 a.m., a motion was made by Joseph and seconded by Meyer to adjourn the meeting. The motion carried. SUBMITTED BY: Dan LeTourneau Director of Risk Management Services APPROVED BY: Bridget Wachtel Membership Relations Committee Chair G:\Committees\Membership Relations Committee\\9-12-18\Mrcminutes180516.Doc 4

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: August 26, RE: Recruitment, Retention and Marketing Efforts Purpose: Provide the MRC with an update on recent member recruitment, retention and marketing efforts. Discussion: Marketing/Recruitment Staff has continued its efforts to recruit new IRMA members with a focus on medium to large municipalities. Please see the attached Membership Recruitment & Retention Report for additional detail. In addition to our direct marketing efforts, recent marketing activities include: IAMMA Spring Conference: Program Sponsor Metro Managers Golf Outing: Sponsor & Attendance ILCMA Annual Sponsor ILCMA Summer Conference: Sponsor & Recruitment Booth NIU MPA Golf Playday Hole Sponsor ILCMA City/County Management in Illinois- IRMA Article (See attached) IGFOA Conference: Attendance & Recruitment Booth IPELRA Gold Level Sponsor: Event Sponsorship, IRMA Introduction/Overview at Event, Two Registrations & Recruitment Booth ILCMA Winter Conference: Sponsor, Attendance & Recruitment Booth IRMA has purchased a professional pull-up marketing banner which can be used as a floor banner or for table top use. We have also purchased IRMA logo tablecloths for use at conferences. Member Retention Activities: Staff has been working with Tinley Park and Westchester recently. Additional information is provided in separate agenda items. Recommendation: Provide staff with feedback related to the information provided. DLT/ll Attachments: Membership Recruitment & Retention Report ILCMA-The Key to Risk Management: Be Proactive Article G:\Committees\Membership Relations Committee\\5-16-18\Recruitment & Retention Memo.Docx 5

MEMBERSHIP RECRUITMENT & RETENTION REPORT (As of August) RECENT RECRUITMENTS Municipality Special District Village of Huntley Status of Data Submission Received Financial & Claim Information Contribution $385,036/ 8.68% credit $2,500 Ded. Accept/Decline Application Awaiting Formal Application Add l Info. Currently in MICA until 5/19. IRMA quote substantially lower. Village of Winnetka N/A TBD TBD Met on May 31,. Pursuing 2019 app. SEECOM Application Received $52.315/ (10.10% credit) $2,500 Ded. /$29,095 Members Reserve TBD Consolidated Dispatch: Crystal Lake, Cary, Algonquin, 9 others by contract. Village of Elmhurst Village of Elk Grove City of Wheaton Village of Lincolnshire N/A TBD TBD Contact from ILCMA Conference. Sent information. Pursuing meeting w/ Jim Grabowski. N/A TBD TBD Contact from ILCMA Conference. Pursuing meeting with Ray Rummel. N/A TBD TBD Bob Lenhardt, Finance Director, not interested in a quote this year. Will review in 2019. Complete $276,062 (14,20% credit) () 2019 Moved to Comm. Ins. Program. Will contact for 2019 quote. 6

APPLICATIONS ACCEPTED / DECLINED / REMOVED FROM SOLICITATION Municipality/ Special District Village of Glen Ellyn Glenbard Wastewater Authority West Central Consolidated Comm. WC3) Village of Blue Island Contribution $492,228 (26.2% credit)/$2,500 Ded. $116,587 (16.62% credit)/$2,500 Ded. $50,282/$2,500 Ded. TBD Accept/Decline Application Never submitted application Never submitted application Accepted Effective 5/1/18 Never Submitted Application Notes IRMA quote well below current MICA program cost. No coverage detail rec d. Not pursuing Applic. GWA would come in w/ Village. Not pursuing application. Consolidated Dispatch: Riverside, Brookfield, North Riverside. McCook by contract. Mike Marzal, Dir. Of Finance & Admin., requested an IRMA Quote. No response LTACC $50,000 Accepted Consolidated Dispatch: LaGrange, LaGrange Park, Western Springs. Village of $934,600/$100k Accepted New Member effective 6/1/17. Arlington Hts. Ded. Village of Mount Prospect Accepted New Member effective 1/1/18. Village of Glenview Village of Highwood Village of Deer Park $1,065,357 (27.29% Credit) $100k Ded. = $596,600 $1,608,992 (32.11% credit) $100k Ded. =$917,126 139,304 / 30.69% Debit $77,333 (18.10% credit) SWANCC $67,842 (19.10% credit) N/A High Debit/Not Recommended Not Feasible Not Feasible Selected a commercial insurance program. Removed from solicitation. Will reapply at a later date 5 employees/1 full time. Services contracted to 3 rd. parties. Current IMLRMA Quote $22k. Single service special district which does not need many coverages and most services of IRMA. Current program cost is $47,512. 7

MEMBER RETENTION Municipality/ Special District Village of Tinley Park Village of Westchester Village of Stickney Current Contribution $1,125,548 (w/ 25.47% credit) $754,069 - $50K Ded. $453,215 (w/ 26.4% debit) $209,541 (w/ 20.15% debit) Notice of Withdrawal Received Yes Yes No Notes Tinley Park leaving IRMA as of 1/1/19. Board vote of 4-3 to move to higher priced program with significant deductible increase. Staff presented a strong rec. to remain in IRMA at 8/28 Board meeting. Tabled to 9/11/18. Approached by Mesirow (Andrew Madigan) to quote. Not interested in leaving IRMA at this time G:\Committees\Membership Relations Committee\\9-12-18\ Membership Recruitment & Retention Report-August.Docx 8

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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: August 30, RE: 2019 Preliminary Budget Action Requested: Approve the Committee s preliminary budget for 2019. Background/Discussion: In accordance with the IRMA Budget Policy and the Standing Committees Statements of Responsibility, each standing committee reviews and approves its portion of the budget. The Administration and Finance Committee and the Executive Board then review the detailed operating budget in total. The Membership Relations Committee is responsible for two items in the preliminary budget: Contractual Services Legislative and Contractual Services Unemployment Services, the specific detail of which is provided in the attached Budget Report. For 2019, we are recommending that the budget be changed to Legislative & Marketing. We will have some budget to respond to possible Workers Compensation Reform along with funds for both marketing efforts for prospective members and retention of current members. Legislative & Marketing: Increase budget from $10,000 in to $20,000 for 2019 to cover the cost of additional marketing. Unemployment Claims Administration: Small increase in annual cost per contract, Tinley Park withdrawing and addition of Mt. Prospect, result in recommendation of small budget increase from $14,000 for to $15,000 for 2019 for all IRMA member employees. Recommendation: Approve the Committee s 2019 preliminary budget as presented. DLT/ll G:\Committees\Membership Relations Committee\\9-12-18\V. 2019 Preliminary Budget To MRC-Memo Draft.Docx 10

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 DATE: August 29, RE: Westchester Rescission of Notice to Withdraw from IRMA Purpose: Provide the MRC with an overview of the Village of Westchester s consideration of whether to rescind their notice of withdrawal from IRMA, which will be decided at their September 11 th Board meeting. Background/Discussion: In September of 2017, the Westchester Village Board passed a resolution as notice of its intent to withdraw from IRMA effective January 1. 2019. The Village s acting Village Manager/Management Consultant at the time believed that the Village was not a good fit since IRMA required a significant amount of risk management efforts and commitment that they could not manage. The efforts included participation in the IRMA Workers Compensation Focus Program which resulted in a significant reduction in their workers compensation loss experience and a reduced overall IRMA contribution. Since that time, the Village hired David Plyman as Village Manager and Trina Cercelli as Finance Director. Both individuals met with IRMA and indicated their support for safety, risk management and the IRMA program. The attached memo and resolution in support of rescinding their notice of withdrawal was submitted by David Plyman for the Village s August 28 th Board meeting. Margo attended the meeting to address any questions, issues or concerns which may arise. It was noted at the meeting that the Village still did not have any other insurance quotes for comparison purposes although they issued the notice of intent to withdraw from IRMA in September of 2017. After much discussion including a short presentation from Margo on the effectiveness and value of IRMA in assisting the Village in its recent reduction in losses and a reduced annual contribution, the Board voted to table the item until the September 11, Board Meeting. The Village of Westchester has continued to experience significant transition in key staff management positions including Village Manager, and Finance Director. The extended vacancies in these key positions created some financial, personnel and leadership challenges for the Village. During this same period the Village experienced Board changes resulting in some political differences, which also provided challenges for the Village and its staff. They have improved in their training participation by attending 37 IRMA training programs from 2015-2017. During the same three-year period their overall IRMA participation was below average ranging from 57.5% to 45%. Pool members are not subsidizing the Village as their claims to contribution ratio has not been over 11% since 2014 when their ratio was 114%. The Village still has an experience modifier debit of 26.40 %, although it has improved since their 2016 debit of 41.22%. While we have seen some improvements, there are still obstacles ahead to overcome. If the Village Board votes to rescind their notice of withdrawal and remain in IRMA, 11

Memorandum to Membership Relations Committee August 30, Re: Westchester Rescission of Notice to Withdraw from IRMA Page 2 the MRC will need to vote on the issue, which will then be an action item for the Executive Board and the Board of Directors. Recommendation: Review the above information and background to consider whether to accept the rescission of the Village of Westchester s notice of intent to withdraw from IRMA as of January 1, 2019. DLT/ll Attachment: Westchester Memo-Rescission of IRMA Withdrawal G:\Committees\Membership Relations Committee\\9-12-18\VI. Westchester Rescission Of Withdrawal Notice.Docx 12

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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 Margo Ely. Executive Director Dan LeTourneau, Director of Risk Management DATE: August 28, RE: Tinley Park Withdrawn from IRMA effective January 1, 2019 Purpose: The purpose of this memorandum is to inform the Membership Relations Committee of the Village of Tinley Park s Board final decision to withdraw from IRMA effective January 1, 2019. Background/Discussion: The attached memorandum was previously distributed to all IRMA delegates and alternates, providing information regarding Tinley Park s decision to leave IRMA and explaining the very slight financial impact to IRMA. (attachments are excluded, but available upon request). The official letter from Tinley Park is attached. Conclusion: Provide feedback to staff. DLT/ll Attachments: Memo-Tinley Withdraws from IRMA Tinley Park Letter of Withdrawal G:\Committees\Membership Relations Committee\\9-12-18\VII. Tinley Pk. Withdrawal Memo.Docx 16

INTERGOVERNMENTAL RISK MANAGEMENT AGENCY The Risk Management Solution for Local Government M E M O R A N D U M TO: FROM: IRMA Delegates and Alternates Margo Ely, Executive Director DATE: August 24, RE: Tinley Park Withdraws from IRMA PURPOSE: The purpose of this memorandum is to advise the IRMA membership that Tinley Park has decided to withdraw from IRMA. This decision has minimal financial impact to the IRMA budget. BACKGROUND: In February, Tinley Park notified IRMA that it intended to explore insurance options other than IRMA for the 2019 calendar year. The IRMA Board of Directors voted to allow Tinley Park until August 31, to rescind its Notice of Withdrawal. DISCUSSION: In May, the Tinley Park Village Board rejected staff s recommendation to retain an outside independent consultant to evaluate insurance options and instead voted to retain the services of commercial broker Mesirow/Alliant to seek commercial insurance bids. Mesirow/Alliant sought pricing from six insurance entities; 2 declined to participate and 1 provided numbers that were too high. As such, the Village received pricing from 3 entities and only 1 came close to being competitive with the IRMA pricing the Illinois Counties Risk Management Trust (ICRMT). (Attached is the Tinley Park agenda item for the August 14 Committee of the Whole meeting). You will note from the attachment that the ICRMT pricing required Tinley Park to move to a $300,000 deductible for worker s compensation, $150,000 for law enforcement and $100,000 for general liability. IRMA s pricing offers deductible options, but the pricing referenced in the agenda item is for a $50,000 deductible across all lines. After IRMA and ICRMT made presentations to the Board on August 14, (IRMA PowerPoint attached), the Board members voted 4-2 to leave IRMA and join ICRMT, against staff s recommendation. The issue was presented for final action at the Village Board meeting Tuesday, August 21 and the Board voted 3-3 with the mayor casting the deciding vote to join ICRMT. Moving forward, Tinley Park s departure will have minimal budgetary impact to the pool, at less than ½ of 1% to the overall budget. The majority of our budget is our loss fund (used to pay claims on an annual basis), which constitutes approximately 80% of the budget. Our actuaries (Milliman) provide us with projections each year for our loss fund and they said the following in response to Tinley Park s departure: we wouldn t expect any significant changes to the loss fund, up or down. As such, the only impact will be Tinley Park s share of our administrative budget, which is approximately $168,000 which is less than ½ of 1% of our $30 million budget. RECOMMENDATION: Please feel free to contact me with any questions or concerns. Attachments: Tinley Park Agenda IRMA PowerPoint 17

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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 Margo Ely, Executive Director DATE: August 31, RE: Statement of Guidelines for Membership Selection, Withdrawal & Expulsion Action Requested: Review and approve the staff recommended policy revisions to clarify the process for rescission of a Notice of Withdrawal from IRMA. Background/Discussion: The IRMA Statement of Guidelines For Membership Selection, Withdrawal & Expulsion provides detailed guidelines for the Pool and its members outlining the criteria for the selection of new members, withdrawal of existing members and the expulsion of a current member. As part of the required withdrawal process, and in accordance with Section 4.05 (B) of the IRMA Contract and Bylaws, a member must provide at least 120 days written notice to withdraw from the Pool. However, in order to be eligible for a return of their member reserve, members must provide nine months written notice of withdrawal. As such, the Board Resolution provided by the member must be received by March 30 th for withdrawal effective January 1 st of the following year. This nine month notice provision allows IRMA staff and its actuaries sufficient time to work on a budget and loss fund predictions, with and without members considering withdrawal. The current Statement of Guidelines allows a member 60 days to rescind their notice of withdrawal. Recently, members that have issued a nine month notice of intent to withdraw from IRMA have also asked that they be provided additional time to rescind the notice. Obtaining coverage quotes requires additional time and these requests have been approved. For this reason, staff recommends revising the Statement of Guidelines to provide that members can rescind their notice of intent to withdraw until August 31 st, subject to approval by the MRC and Executive Board. The revisions are highlighted on the attached document. There are also a few highlighted housekeeping revisions. Recommendation: Approve the staff recommended revisions to the IRMA Statement of Guidelines for Membership Selection, Withdrawal & Expulsion to allow for rescission of notice of intent to withdraw by no later than August 31 st for withdrawal effective January 1 st of the following year with final approval by the MRC and Executive Board. DLT/ll Attachment: IRMA Statement of Guidelines for Membership Selection, Withdrawal & Expulsion G:\Committees\Membership Relations Committee\\9-12-18\Guidelines For Membership Selection,Withdrawal, Explusion -Memo.Docx 19

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 75,000100,000 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, 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 produce the risk management information in an orderly and objective manner. 1 20

B. Current Audited Financial Statements Annual Comprehensive Finance Report -- to evaluate the financial stability of the applicant community and/or the municipality's bond rating. C. 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 cost 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 the results will be 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 on 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 Geography/Population Size/Size of Management Staff 2 21

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 or by no later than August 31 st for a January 1 st withdrawal of the following year. In order to preserve a member s right to return of their members reserve funds, notice of withdrawal must be received 9 months prior to the January 1 st withdrawal of the following year or by no later than March 30 th. Upon receiving written notification along with a board resolution 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 in accordance with Section 4.03 of the IRMA Contract and Bylaws Expulsion of members; 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 bylaw 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 3 22

shall not be reimbursed. 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 no later than August 31 st of the preceding year in which the withdrawal notice was submitted, 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 member s 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, 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 4 23

and documentation from each of the applicants and will develop and analyze the 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 five years against the IRMA average for the same period. The same measure will also be performed in evaluating the applicant during the Interview/Onsite 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 can provide IRMA with the necessary information to provide 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 five years required to calculate the experience modifier which includes total incurred experience for each individual claim. C. The individualized loss experience will continue to be made available to IRMA. 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 Revised 5/18 Revised 9/18 G:\IRMA Organization\Website\Bylaws And Policies\Membership\Statement Of Guidelines For Membership Selection-Withdrawal & Expulsion.Doc 5 24

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: August 28, RE: IRMA Onsite Summer Safety Internship Program - Final Overview Purpose: Update the Membership Relations Committee (MRC) on the completed IRMA Summer Safety Internship Program. Background: We have just completed the IRMA Summer Safety Internship Program. We were again able to secure two qualified summer safety interns from the Illinois State University (ISU) Accredited Safety Degree. Both interns were retained for a 12-week period. - Vincent Manna - Morgan Pfafman The following members received an onsite safety intern during the summer of : Village of Bloomingdale Village of Brookfield (WC Focus Program Participant) Village of Carol Stream (WC Focus Program Participant) City of Crystal Lake Village of Riverside Village of Palos Park Village of Morton Grove (WC Focus Program Participant) Village of Northbrook Village of Roselle (WC Focus Program Participant) Overall the onsite summer intern program was again very well received by all participating members. IRMA implemented a new electronic survey evaluation process for to receive additional feedback from both members receiving a summer safety intern and from the intern regarding their experience at our member locations. Member feedback was extremely positive from all members receiving a summer safety intern. Each intern possessed good verbal and written communication skills and were technically competent coming from the ISU Safety Program. They always presented themselves in a professional manner. The interns were able to assist IRMA members with research and policy development in many safety/risk management related areas. IRMA provided each intern with opportunities to attend IRMA member field evaluation visits to assist with their safety/risk management education. One intern was also able to provide some assistance to IRMA staff and work on model policies and pool related projects at the end of the summer. We will again be requesting a budget for two summer safety interns for summer of 2019. Recommendation: Approve Staff s recommendation to pursue two additional summer safety interns for the summer of 2019. /DLT G:\Committees\MG:\Committees\Membership Relations Committee\\9-12-18\ IRMA Onsite Summer Safety Internship Program-Memo.Docx 25

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: August 23, RE: Workers Compensation Focus Program 2nd Quarter Reports Purpose: The purpose of this memorandum is to provide the MRC with a review of the 2 nd Quarter, 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. The Village of Westchester was removed from the program at the end of 2017 resulting from their issuance of a Notice of Intent to Withdraw from IRMA. The Village of Morton Grove was recommended to participate in the Workers Compensation Focus Program as part of the Annual Claims to Contribution Report which was approved by the IRMA Board of Directors at the June 12, meeting. 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 2 nd quarter of. Below is a brief 2 nd Quarter, overview for each of the WC Focus Program participants. Each WC Focus Program member received an IRMA Summer Safety Intern for two weeks starting in late May : Village of Brookfield The Village of Brookfield completed the 2 nd quarter of with a workers compensation claim frequency of 11 versus their IRMA target of 1, resulting in an annual variance of 200% of target. The Village s 2 nd quarter workers compensation claims experience was $22,600 resulting in a year to date loss experience of $312,806, which continues to track well above their annual IRMA workers compensation target of $181,997 at 345% on an annualized basis. The Public Works back injury in February which resulted from lifting bags on concrete mix resulted in $182,134 of their workers compensation loss experience. There were 6 additional workers compensation claims in the 2 nd quarter, 2 in Police, 2 in Public Works and 2 in Recreation. All new claims were medical only. The Police claims resulted from a dog bite and dehydration while directing traffic. The Public Works claims arose from a finger laceration and a trip over a phone book during a building inspection. Recreation incurred claims from a summer camper throwing a kick board in the pool, hitting a counselor and a slip & fall on wet grass. The Village addressed each injury and provided their specific implemented loss prevention actions. The Public Works Department continues to conduct monthly Safety Committee/Accident Review Board meetings, weekly safety talks and daily safety tips. They are drafting and posting meeting minutes. They are coordinating CPR/AED training for employees and have ordered an 26

Memorandum to Membership Relations Committee August 23, Re: Workers Compensation Focus Program 2 nd Quarter Reports Page 2 AED unit for the Public Works facility. The Fire Department continues to work on completion of their new Lexipol manual which is expected to be completed by year-end. They have conducted training on self-rescue, downed firefighter extraction and roof operations. They have purchased face mask wipes for use at fire scenes and a set of back-up gear for employees. The Police Department continues with the development of their new Lexipol manual which should be completed by year-end. The Department continues to provide verbal de-escalation and additional CIT/Mental Health training. Monthly officer meetings are being conducted to review departmental SOP s to identify and complete improvements. The Department has instituted a Traffic Stop Video Review Program with a written review form to provide best practice information to officers as part of their behavior observation program. Attached for review is Part I and Part II of the WC Focus Program Quarterly Report, which provides additional details of the Village s risk management activities completed during the 2 nd quarter and planned for the 3 rd quarter of. Village of Carol Stream The Village of Carol Stream completed the 2 nd quarter of with a workers compensation frequency of 8 as compared to their annual IRMA target of 15, resulting in an annualized variance of 107% of target. The Village s total year to date workers compensation experience as of the 2 nd quarter is $46,842 which is tracking well below their IRMA annual severity target of $275,114, resulting in an annualized variance of target of just 34%. The 3 new workers compensation claims incurred during the 2 nd quarter were all small medical only claims. The claims resulted from a subject resisting arrest, smoke inhalation from an apartment fire and a baton class training injury. The Police Department continues their roll call safety component, use of Police One video training, defensive tactics training and 40-hour Crisis Intervention Training for officers. The department also adheres to full officer participation in the Police Law Institute online training program. The Department also received harassment, blood borne pathogens and slips, trips & falls training and conducted traffic stop training for each shift. The Public Works Department continued to conduct many additional safety training programs during the 2 nd quarter including: seasonal employee training, hot work/welding, summer hazards, mower safety, trailer safety, chainsaw safety, new silica management program, OSHA 10-hour, and confined space rescue. The Department also purchased and trained on wireless headsets to improve communication and provide hearing protection during several high noise field operations including sewer jetting. Attached for review is Part I and Part II of the WC Focus Program Quarterly Report, which provides additional details of the Village s risk management activities completed during the 2 nd quarter and planned for the 3 rd quarter of. 27

Memorandum to Membership Relations Committee August 23, Re: Workers Compensation Focus Program 2 nd Quarter Reports Page 3 Village of Roselle The Village of Roselle completed the 2 nd Quarter of with an additional 3 workers compensation claims for a total of 6 year to date versus their target of 10 or tracking at 120% of target. The Village s overall workers compensation claim experience for the 2 nd quarter was only $2,501, which is tracking well below their IRMA severity target of $194,765, resulting in very favorable annualized variance of target of only 11% at the completion of the 2 nd quarter. All workers compensation losses are small medical only claims. The Fire Department experienced an employee wrist injury claim from a fall while exercising and a debris in the eye claim while conducting vehicle rescue training. The Public Works Department had a facial laceration claim resulting from a chlorine cylinder cap while moving the cylinder. The Administration Department completed Hazard Communication (GHS) and Emergency Action Plan training in the 2 nd quarter. The Fire Department continues with the process of developing their Lexipol operational best practices policy & procedure manual which is targeted for completion by end of 3 rd quarter. The Department continued their process of completed physicals and wellness surveys on all employees and conducted mental health training. Expected completion by the end of the 3 rd quarter. The Police Department has made significant progress with their union to implement an annual physical fitness program with required compliance testing. They will be meeting with the union in late August to finalize the details. The program will include an annual mental fitness/wellness check-up. Their monthly use of force reviews has reduced these incidents to three for the entire 2 nd quarter, lowering the risk of officer injury. The Department has trained additional officers in the 40-hour CIT training and should have all officers trained by end of summer. All current and new officers completed behind the wheel tactical/defensive driving training. The Public Works Department is nearing completion of their new comprehensive operational manual with the assistance of the IRMA summer safety intern. They are conducting quarterly departmental safety committee meetings and continue to expand their JSA program by completing four new JSA s per quarter. They have adopted their new Employee Orientation Manual which was used to train two new employees. A new safety training schedule was developed for the Department. They are working on completing their hearing conservation program. Attached for review is Part I and Part II of the WC Focus Program Quarterly Report, which provides additional details of the Village s risk management activities completed during the 2 nd quarter and planned for the 3 rd quarter of. Recommendations: Review and accept the 2 nd Quarter Workers Compensation Focus Program Reports from the participating members along with the Kick-off meeting overview for the new WC Focus Program Member, Village of Morton Grove. DLT/ll Attachments: Part I & Part II WC Focus Reports-Brookfield Part I & Part II WC Focus Reports Carol Stream Part I & Part II WC Focus Reports-Roselle G:\Committees\Membership Relations Committee\\9-12-18\2 nd Quarter WC Focus program - Cover.Docx 28