35-10 ResolutionRECORD OF RESOLUTIONS
DaYlon Le Blank. Inc.. Form No, 30095
Resolution No. 35 -1 Passed - .20
A RESOLUTION AUTHORIZING THE ADDITION OF
THREE NEW PROSPECTIVE MEMBERS TO THE
CENTRAL OHIO RISK MANAGEMENT ASSOCIATION
( CORMA), PURSUANT TO ARTICLE V, PARAGRAPH
(1) OF THE CENTRAL OHIO RISK MANAGEMENT
ASSOCIATION BYLAWS.
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 Worthington, Ohio, the
Village of Granville, Ohio and the Village of Groveport, 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 Resolution) by at least the 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, --7-- of the elected members concurring that:
Section 1 . The addition of the City of Worthington, Ohio, the Village of Granville,
Ohio, and the Village of Groveport, Ohio as new members of CORMA is hereby
approved.
Section 2 . This resolution shall take effect and be in force upon passage pursuant to
Section 4.04 (a) of the Revised Dublin Charter.
Passed this q -fA day of Ll� us , 2010.
May * • O fficer
Attest:
Clerk of Council
CITY OF DUBLIN.
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
Phone: 614- 410 -4400 • Fax: 614- 410 -4490
TO: Members of Dublin City Council
FROM: Terry Foegler, City ManagerTF�
DATE: August 5, 2010 °U�
INITIATED BY: David Harding, Director of Human Resources
Summary:
RE: Resolution No. 35 -10 —New Central Ohio Risk Management Association Members
Attached for your consideration is Resolution No. 35 -10, authorizing the addition of three prospective
new members to the Central Ohio Risk Management Association ( CORMA). These prospective new
members include the City of Worthington, Ohio; the Village of Granville, Ohio; and the Village of
Groveport, Ohio. As Council will recall, CORMA is the joint property and casualty 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.
The CORMA membership, in addition to the City of Dublin, currently includes the cities of Westerville,
Upper Arlington, Pickerington, Powell, and Grove City. Powell and Grove City joined CORMA as new
members in 2009. Council will recall that in August of 2009, Council adopted a similar resolution
(Resolution No. 39 -09) approving the addition of Powell and Grove City as new members of CORMA.
The 2009 expansion of CORMA from four to six members has been a success. Consequently, the
CORMA Board of Trustees has continued to evaluate growth opportunities in 2010 and, through the
ongoing advice and counsel of CORMA's Pool Administrator (Wichert Insurance Services), has once
again 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. As part of the
membership evaluation process, CORMA's Pool Administrator completed an analysis of the property
and liability exposures of the three prospective new members and determined that these cities present a
risk profile that is appropriate for membership in CORMA. Consequently, the CORMA Board of
Trustees has unanimously approved a membership invitation to the City of Worthington, the Village of
Granville, and the Village of Groveport.
In accordance with the Central Ohio Risk Management Association Bylaws, approval must also be
obtained by a two - thirds majority of the current member cities' governing bodies. Article V, paragraph
(i) of the CORMA Bylaws (attached) 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
current membership's City Councils.
Although the above -named cities /villages have satisfied CORMA's standards for new membership and
have been provided a membership invitation, their actual membership cannot be confirmed at this point.
Memo re. Resolution 35 -10 — CORMA
August 5, 2010
Page 2
However, in order to be ready, in the event these entities confirm membership, the existing CORMA
membership is in the process of proposing legislation to their respective Councils for approval of these
entities as new members, as required by the CORMA Bylaws. To date, the cities of Powell and
Pickerington have adopted such legislation.
As Council will recall from the discussion in 2009 regarding the approval of Powell and Grove City as
new members, there are three major advantages to pool expansion. These advantages include: lower
fixed costs for each current member of the Pool (i.e. pool administration, actuarial, and accounting fees);
spreading of the risk over a larger base of like exposures; and making CORMA more attractive to excess
insurance carriers.
Attached for your reference are two exhibits (Exhibits "A" and `B ") detailing the exposure and loss
experience data that was used in the expansion analysis. Exhibit A shows the exposure and experience
allocation for the current CORMA membership, while Exhibit B shows the exposure and experience
allocation for CORMA with the addition of the three new members. As noted on the 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; and loss experience
Each of the first four factors is weighted at 15 percent, respectively, while the loss experience factor is
weighted at 25 percent. One item to note on Exhibit B is that the total proportionate share assigned to
Worthington, Granville, and Groveport is 8.50 percent, 3.21 percent, and 4.75 percent, 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. It is also worthy to note that in comparing the
total proportionate share of exposure on Exhibit A and Exhibit B, the total proportionate share of the
exposure borne by the City of Dublin would decrease from 26.38 percent to 22.05 percent with the
addition of the three new members.
Tom Wichert, CEO/Principal of Wichert Insurance Services will be present at the August 9` Council
meeting to assist in responding to any questions Council may have on this matter.
Recommendation:
Staff recommends the adoption of Resolution No. 35 -10 at the August 9, 2010 Council Meeting.
Attachments
"Exhibit A"
CORMA 2009 - 2010
Exposure /Experience Allocation
(Current Membership)
Exposures
Population
# FT Officers
Property Values
Titled Vehicles
Ratable Expenditures
4 +Years Experience
Dublin
38,909
69
$76,714,970
265
$27,229,000
$347,931
Pickerington
16,575
26
$27,766,446
61
$4,714,000
$177,142
Upper Arlin ton
31,326
50
$34,400,445
182
$19,504,000
$328,810
Westerville
35,380
74
$100,070,529
221
$23,462,000
$223,983
Grove City
27,075
60
$28,096,892
104
$6,255,000
$337,926
Powell
12,500
18
$13,364,276
20
$2,569,000
$123,984
Totals
161,765
297
$280,413,558
853
$83,733,000
$1,539,776
Share
Population
# FT Officers
Property Values
Titled Vehicles
Expenditures
Experience
TOTALS
Dublin
24.05%
23.23%
27.36%
31.07%
32.52%
22.60%
26.38%
Pickerington
10.25%
8.75%
9.90%
7.15%
5.63%
11.50%
9.13%
Upper Arlington
19.37%
16.84%
12.27%
21.34%
23.29%
21.35%
19.30%
Westerville
21.87 %
24.92%
35.69%
25.91%
28.02%
14.55%
24.10%
Grove City
16.74%
20.20%
10.02%
12.19%
7.47%
21.95%
15.48%
Powell
7.73%
6.06%
4.77%
2.34%
3.07%
8.05%
5.61%
Totals
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Page 1
"Exhibit B"
CORMA 2009 - 2010
Exposure /Experience Allocation
(w /Prospective New Members)
Exposures
Population
# FT Officers
Property Values
Titled Vehicles
Ratable Expenditures
4 +Years Experience
Dublin
38,909
69
$76,714,970
265
$27,229,000
$347,931
Pickerington
16,575
26
$27,766,446
61
$4,714,000
$177,142
Upper Arlin ton
31,326
50
$34,400,445
182
$19,504,000
$328,810
Westerville
35,380
74
$100,070,529
221
$23,462,000
$223,983
Grove City
27,075
60
$28,096,892
104
$6,255,000
$337,926
Powell
12,500
18
$13,364,276
20
$2,569,000
$123,984
Grove port
4,500
34
$17,507,751
53
$4,304,000
$61,535
Granville
3,167
10
$21,428,000
28
$892,960
$81,821
Worthington
14,125
34
$54,916,685
77
$7,131,000
$109,268
Totals
183,557
375
$374,265,994
1011
$96,060,960
$1,792,400
Share
Population
# FT Officers
Property Values
Titled Vehicles
Expenditures
Experience
TOTALS
Dublin
21.20%
18.40%
20.50%
26.21%
28.35%
19.41%
22.05%
Pickerington
9.03%
6.93%
7.42%
6.03%
4.91%
9.88%
7.62%
Upper Arlington
17.07%
13.33%
9.19%
18.00%
20.30%
18.34%
16.27%
Westerville
19.27%
19.73%
26.74%
21.86%
24.42%
12.50%
19.93%
Grove City
14.75%
16.00%
7.51%
10.29%
6.51%
18.85%
12.97%
Powell
6.81%
4.80%
3.57%
1.98%
2.67%
6.92%
4.70%
Grove port
2.45%
9.07%
4.68%
5.24%
4.48%
3.43%
4.75%
Granville
1.73%
2.67%
5.73%
2.77%
0.93%
4.56%
3.21%
Worthington
7.70%
9.07%
14.67%
7.62%
7.42%
6.10%
8.50%
Totals
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
Page 1
Central Ohio Risk Management Association (CORMA)
Bylaws
Article V, Paragraph (i)
An approving Resolution passed by the governing bodies of at least two- thirds (2/3) of
the Members after recommendation by two - thirds (2/3) of the Board of Trustees shall be
required for the following matters:
(1) Admission of New Members
(2) Amendment of these Bylaws.