HomeMy WebLinkAboutResolution 68-14RECORD OF RESOLUTIONS
BWV;, Inc., Form No. 300x5
68 -14
Resolution No. _ ._. -_ -. Passed 20
A RESOLUTION AUTHORIZING THE ADDITION OF
TWO NEW MEMBERS TO THE CENTRAL OHIO RISK
MANAGEMENT ASSOCIATION ( CORMA), PURSUANT
TO ARTICLE V, PARAGRAPH (I) OF THE CENTRAL
OHIO RISK MANAGEMENT ASSOCIATION BY LAWS.
WHEREAS, pursuant to Article V, paragraph (I) of the Central Ohio Risk
Management Association ( CORMA) Board Bylaws, the CORMA Board of
Trustees has unanimously recommended the addition of the City of Marysville,
Ohio and the City of Canal Winchester, Ohio for membership in the Central
Ohio Risk Management Association; and
WHEREAS, Section V, paragraph (I) of the Central Ohio Risk Management
Association ( CORMA) Bylaws requires that said Board of Trustees'
recommendation be approved by at least two- thirds of the City Councils of the
current CORMA membership.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin,
State of Ohio, of the elected members concurring, that:
Sect ion 1. The addition of the City of Marysville, Ohio and the City of Canal
Winchester, Ohio as new members of CORMA is hereby approved.
Section 2. This resolution shall take effect and be in force upon passage in
accordance with Section 4.04 (a) of the Revised Charter.
Passed this day of r 2014
or — Presiding Officer
Attest:
(� ` Clerk of Council
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
City of Dublin Phone: 614 - 410 -4400 • Fax: 614 - 410 -4490
To: Members of Dublin City Council
From: Marsha I. Grigsby, City Manager
Date: August 7, 2014
Initiated By: Ron Whittington, Risk Manager
Memo
Re: Resolution No. 68 -14 —New Central Ohio Risk Management Association Members
Summary
Attached for your consideration is Resolution No. 68 -14, authorizing the addition of the City of
Marysville, Ohio and the City of Canal Winchester, Ohio as new members of the Central Ohio Risk
Management Association ( CORMA). CORMA is the joint self- insurance pool formed under Chapter
2744 of the Ohio Revised Code of which the City of Dublin has been a member since its inception
in 1997. For the past 17 years, CORMA has provided cost effective property and liability insurance
services to its membership, which (in addition to the City of Dublin) includes the Cities of
Westerville, Upper Arlington, Pickerington, Powell, Grove City and Groveport.
Through the assistance of CORMA's Pool Administrator (Wichert Insurance Services), the CORMA
Board of Trustees has determined that it would be advantageous for CORMA to expand its
membership, on a selective basis, to other cities they believe have like risk management interests
and priorities and would be a good fit for the current CORMA membership. The CORMA Board has
established a membership committee that has engaged in the process of identifying a list of
prospects, based on certain common attributes. The entities that have been identified on this
prospect list are financially strong cities with a reputation for professional local government
management and a commitment to sound risk management practices. Two of these entities
include the City of Marysville and the City of Canal Winchester.
In order to accomplish CORMA's objective of adding quality members, approval must be obtained
by a two- thirds majority of the currently member cities' governing bodies. In that regard, Article V,
paragraph (i) of the CORMA Bylaws requires that new members first be approved by at least two -
thirds of the CORMA Board of Trustees, followed by the approval, by resolution, of at least two -
thirds of the governing bodies of the current member cities. The CORMA Board of Trustees has
unanimously approved the addition of the Cities of Marysville and Canal Winchester as new
members of CORMA, thus advancing the new membership process to the second stage of the
process requiring approval by at least two- thirds of the governing bodies of the current member
cities.
CORMA's Pool Administrator, Wichert Insurance Services, has completed an analysis of the
property and liability exposures of the Cities of Marysville and Canal Winchester and has
determined that these cities present a risk profile that is appropriate for membership in CORMA.
Their assessment included the risk exposures in the Cities of Marysville and Canal Winchester and
the advantages of expanding the CORMA membership. Three major advantages are both Canal
Winchester and Marysville bring strong positive characteristics and loss records to CORMA; the
additions will lower fixed costs for each current member of the Pool (i.e. pool administration,
actuarial, and accounting fees); and will make CORMA more attractive to excess insurance carriers.
Memo re. Res. 68 -14 — Proposed CORMA additions
August 7, 2014
Page 2 of 2
Attached is Exhibit "A" labeled " CORMA 2013 -14 Exposure Allocation," which shows the exposure
allocation for the current CORMA membership with the addition of the Cities of Marysville and
Canal Winchester. As noted in these exhibits, the factors determining each entity's proportionate
share of the risk include the following:
❑ Population
❑ Number of Full -Time Police Officers
❑ Property Values
❑ Titled Vehicles
❑ Ratable Expenditures
❑ Loss Experience
Although not appearing on the Exhibit, each of the first four factors is weighted at 15 %,
respectively, while the Loss Experience factor is weighted at 25 %. One thing to note on "Exhibit
A" is that the proportionate share assigned to the Cities of Marysville and Canal Winchester is
11.52% and 3.26 %, respectively. Given the relative size and complexity of their operations, these
cities do not represent a significant increase in exposure for the current CORMA membership.
Recommendation
Staff recommends the adoption of Resolution No. 68 -14 at the August 11, 2014 Council meeting.
Exhibit A
CORMA 2013 -2014 A//ocation(/nc/uding Cana/ Winchester
and Marysville)
Exposures 2013
Population
#FTOfficers
Property Values
Titled Vehicles
Ratable exp
4+ yrs experience
Dublin
41,751
62
$97,883,914
257
$24,403,000
$745,794
Pickerington
18,291
28
$54,975,114
68
$3,943,000
$425,739
Upper Arlington
34,223
50
$49,396,222
182
$17,855,000
$271,923
Westerville
36,665
79
$117,874,126
253
$30,966,000
$337,869
Grove City
35,708
61
$31,303,008
107
$9,161,000
$177,753
Powell
11,153
17
$15,128,953
23
$2,478,000
$26,986
Grove port
5,300
23
$19,661,581
53
$5,551,000
$155,198
Canal Winchester
7,101
0
$33,098,243
35
$1,514,000
$113,766
MaEysville
Totals
Share 2013
22,187
Population
38
-# FT Officers
$151,095,171
Property Values
1291
Titled Vehicles
$9,310,000
000
Expenditures
$124,667
Experience
TOTALS
Dublin
19.66%
17.32%
17.16%
23.22%
23.20%
31.34%
22.92%
Pickerington
8.61%
7.82%
9.64%
6.14%
3.75%
17.89%
9.87%
Upper Arlington
16.11%
13.97%
8.66%
16.44%
16.98%
11.43%
13.68%
Westerville
17.26%
22.07%
20.66%
22.85%
29.44%
14.20%
20.39%
Grove City
16.81%
17.04%
5.49%
9.67%
8.71%
7.47%
10.52%
Powell
5.25%
4.75%
2.65%
2.08%
2.36%
1.13%
2.85%
Grove port
2.50%
6.42%
3.45%
4.79%
5.28%
6.52%
5.00%
Canal Winchester
3.34%
0.00%
5.80%
3.16%
1.44%
4.78%
3.26%
Ma sville
10.45%
10.61%
26.49%
11.65%
8.85%
5.24%
11.52%
NA&IA
Prepared By: Wichert Insurance
Date: May 15 2014
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