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MVRMA OFFICERS PRESIDENT …………………………….......JOHN GREEN, TIPP CITY VICE PRESIDENT………………………..….DINA MINNECI, INDIAN HILL TREASURER…………………………….......JANINE COOPER, ENGLEWOOD SECRETARY …………….………………......JULIE TRICK, VANDALIA

RISKY BUSINESS A P UB LIC AT IO N O F T H E M IAM I V A LLEY RIS K M ANAG EM ENT AS S O C IAT IO N

FYI… Managing Risk of City-Sponsored Special Events By Tom Judy

4625 Presidential Way

Kettering, Ohio 45429

(937) 438-8878

www.mvrma.com

Tom Judy, Executive Director

Craig Blair, Claims Manager

Starr Markworth, Loss Control Manager

Sandy Caudill, Office Coordinator

August 2016

Inside this issue:

FYI 1

The Claims File 3

Loss Control Lowdown 4

Broker’s Beat 6

Awards 10

Counselors’ Comments 11

From The Board Room 12

Pre-Planning Pre-planning should include an assessment of potential risks. Identify features such as the following which may re-quire special risk management consideration: The selling or serving of alcohol; Food vendors or caterers; Bleachers or grandstands; Temporary structures such as tents, restrooms or concession stands; Exhibitors, food vendors, or non-food vendors; Amusement rides and water slides, including inflatables; Petting zoos or animals; Fireworks, pyrotechnics, open flames or other fire-related dangers; The use of volunteers.

The Fire and Police Departments are key to the pre-event planning process. The Fire Department should be asked to

review plans for: first aid or emergency medical services; access routes for emergency vehicles; use of open fires,

fireworks or pyrotechnics; cooking facilities; the accessibility of fire suppression equipment; and the use of canopies,

tents or other fabric shelters. Police personnel should be involved in the planning for event security and traffic issues.

Summer and fall are the seasons when many of our members sponsor and manage

fairs, festivals and similar community events. These events can provide wonderful

opportunities to celebrate a spirit of community and enhance the reputation of the

City. However, for all of their benefits, such events do not come without risks. Gener-

ally, these risks can be mitigated with proper planning and attention to detail.

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FYI continued

Food and Liquor: Nearly all special events include some type of food and drink. If the event involves vendors or caterers, most of the

risk can be transferred to these parties by contract. The contract should include insurance requirements to be met by

the vendors and caterers. This is especially important if alcohol will be sold or served. MVRMA can assist members in

the development of these contractual insurance requirements.

If alcoholic beverages will be served by the city, either by employees or volunteers, servers must be adequately trained in techniques to prevent underage drinking and the over consumption by individuals of legal drinking age. It is advisable to restrict consumption of alcohol to a designated area and/or use wrist bands or hand stamps to identify individuals of legal drinking age. Upon request, MVRMA staff can assist members with other suggestions for the safe use of alcohol at city events. Entertainment: The construction or erection of a stage and special lighting systems create risks to be considered. Ensure that such structures have been properly inspected before use. Contracts with entertainers should include proper insurance re-quirements and language holding the city harmless for claims caused by the negligence of the entertainers. Community events often include special entertainment such as fireworks, petting zoos and animal acts, amusement rides and inflatables, and skydiving. Such entertainment can bring a lot of excitement to an event, but they come with unique risks. It is especially important to have contracts with these vendors in which they agree to hold harmless and indemnify the city as well as meet strict insurance requirements. Generally, these vendors have their own standard contract which is written to protect their interests. MVRMA can review such contracts to suggest insurance require-ments and other changes to better protect the city’s risk management interests. Pre-Event Walkthrough Safety Inspection The defense of a claim arising out of the event will be strengthened if you can document a thorough pre-event safety

inspection. The inspection should begin with a review of the prior year’s incident reports and a confirmation that ap-

propriate corrective actions have been taken. Next, officials responsible for the safety of the event should conduct a

walkthrough to assess the safety of physical structures such as bleachers, tents, restrooms, concession stands as well

as the surrounding grounds and parking areas. Any deficiencies and the corrective actions should be documented in

writing. MVRMA can assist in developing a safety inspection document.

Volunteers The city is responsible for the actions of its volunteers. All volunteers should be trained in safety rules and procedures, and emergency procedures. Background checks are advised for volunteers who will be handling money. Weather Community special events usually occur during the height of Ohio’s thunderstorm and tornado season. We recom-mend the city develop a plan to ensure the safety of festival goers during such a weather event or other emergency. Designate an event staff person to ensure the constant monitoring of weather conditions via National Weather Ser-vice resources or local media. Also, person(s) should be identified who have the authority to evacuate, cancel or post-pone the event. Establish methods such as air horns, sirens and public address systems, to communicate weather emergencies to event attendees. Design an evacuation plan and place signs instructing attendees on what to do in an emergency. Finally, special event staff, including volunteers, should be trained on their responsibilities in the event of a weather emergency and evacuation.

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FYI continued

The Claims File MVRMA Claims Checklist By Craig Blair

Over the last year several new board trustees and claims representatives have been appointed by our members. We offer to provide a “MVRMA Orientation” day at the MVRMA offices to each of these new appointees. The orientation process includes an overview of claims management which focuses on how and when to report claims to MVRMA. The claims reporting policy has been covered in previous articles, but members have requested a simple guideline to refer to when dealing with incidents or claims with their city.

Auto Accident: 1. Check on the safety of all parties involved. 2. Exchange information.

Auto ID Cards should be in all members’ vehicles. These cards are developed to assist the employees in these stressful situations. The card has information on who insures the vehicle (MVRMA) and who the other party can contact at the city to discuss a claim. Also, the card instructs the employee to provide a statement only to the police department and not to discuss liability issues regarding the accident. If new Auto ID cards are needed, please contact Sandy Caudill at MVRMA.

3. Report the accident.

The accident should be reported by the employee to their supervisor by the end of the day, and then a report should be forwarded to the MVRMA trustee or claims representative. The first report of loss or injury claim should be submitted to MVRMA within 24-48 hours after the incident. This form can be found on the MVRMA website. Due to the offsets (immunities) allowed under Ohio law, early contact with the other parties is essen-tial to the claims process. Many claims involve residents who are waiting to hear from the city or their repre-sentative. Also, a police report does not have to be completed prior to sending the claim to MVRMA. If the city has not yet determined who is at fault in the accident, MVRMA will communicate to the third party as well as explain the claim process.

4. Inspection of the damages will be completed by MVRMA.

The city may get estimates from the body shop of their choice. MVRMA will inspect all vehicles and the scene if necessary. If the weather is a factor in any way, the report needs to be submitted to MVRMA immediately so we can inspect the scene before it changes.

5. Claim payments.

All claims are to be reported and paid through MVRMA who will pay the body shops directly and pay the third parties accordingly.

Special Event Insurance Some of the risk associated with a special event can be can be mitigated through thorough planning and good safety practices. Much of the remaining risk can be transferred to third parties. Invariably, the City will retain some of the event’s risk, however. Claims arising out of City-sponsored events are generally covered by MVRMA. However, if in-curred, such claims losses would increase the city’s loss experience and affect future contributions to the pool. To avoid that potential, MVRMA recommends obtaining Special Event Liability Insurance for most events. Coverage can be ex-panded to cover co-sponsors and vendors, if desired. Special Event Liability Insurance is a pass through cost to the mem-ber city and normally has no deductible. The “best practices” section of the MVRMA website contains a Special Events Risk Assessment form to help members with the decision of whether to obtain special events coverage. MVRMA wants to help its members’ special events to be truly special. Please contact MVRMA staff if we can be of assis-

tance with your event.

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Loss Control Lowdown—

TargetSolutions Online Training

By Starr Markworth

Since 2007, MVRMA has offered online training opportunities to the members. At the June Board meeting, the MVRMA board authorized an agreement to extend our relationship with TargetSolutions for the ninth year. TargetSolutions was established in 1999 to assist clients in reducing their claims and losses using technology and Internet-based tools. They are the leading provider of internet based tools for public entities and self-insured risk pools. For $300 per year, any MVRMA member can choose to participate in the TargetSolutions’ MVRMA online training curriculum. For the annual fee, members receive unlimited access for all employees and all courses. The MVRMA training catalog includes: Driver Training, Human Resources, OSHA/Safety Compliance and Su-pervisory training. MOTOR VEHICLE SAFETY TargetSolutions’ Online Driver Training & Compliance Program offers organizations a solution to reduce motor vehicle losses. Driver curriculum is designed to change unsafe driving behavior and reinforce critical safe-driving concepts. Courses have been tailored to meet the varied needs of drivers of automobiles, large trucks and passenger vans. Supervisor curriculum is designed to provide supervisors with the training necessary to maintain a staff of safe and capable drivers. HUMAN RESOURCES TargetSolutions’ Human Resources courses are designed to provide training that is relevant and essential to all employees. Courses covering Employment Practices for Supervisors cover issues encountered in the work-place for individuals tasked with making employment decisions, including issues of harassment, hiring and termination, discrimination, evaluation and documentation. OSHA & COMPLIANCE TargetSolutions’ online courses can be used to help comply with OSHA and other federal and state regulatory agency training mandates. All required compliance training courses can be completed online, eliminating the logistic issues inherent in traditional training methods. OSHA & Compliance courses cover the following cate-gories: General Safety, Environmental Awareness, Human Resources and supervisor-related course topics.

The Claims File Continued

Checklist for a third party that is injured or has damages on city property: 1. Public safety concerns. The area or roadway involved should be marked with cones or barricades. 2. Scene inspection. Whenever a third party is injured or has damages on city property, an inspection of the scene before repairs are made is vital to defending the claim. MVRMA will respond within 24 hours of notice in most cases and will take photos and measurements. Liability cannot be determined until an investigation is completed in these situations. City property is insured through MVRMA and all claims of this type are to be reported and paid through MVRMA. If you have any questions regarding the claims process, please contact Craig Blair at MVRMA.

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Loss Control Lowdown….Continued

For more information on MVRMA’s Online Training programs, please contact Loss Control Manager, Starr Markworth at 937-438-8878 or by email smarkworth@mvrma.com.

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Brokers’ Beat

Active Shooter Preparedness

An active shooter is an individual actively engaged in killing or attempting to kill people in a confined and populated area, typically through the use of firearms. An active shooter in your workplace may be a current or former employ-ee or acquaintance of a former employee. Active Shooter situations are unpredictable and victims are selected at random. These situations evolve quickly and are often over within minutes before law enforcement can arrive on the scene. As a result, The U.S. Department of Homeland Security offers the following information regarding best practices for coping with an active shooter situation: Good Practices for coping with an active shooter situation : Be aware of your environment and any possible dangers.

Take note of the two nearest exits in any facility you visit.

If you are in an office, stay there and secure the door.

If you are in a hallway, get into a room and secure the door.

As a last resort, attempt to take the active shooter down. When the shooter is at close range and you cannot flee, your chance of survival is much greater if you can try to incapacitate him/her.

Call 911 when it is safe to do so. Don’t ever assume that someone else has called. Response to an Active Shooter: 1. Run - If there is an accessible escape path, attempt to evacuate the premises. Be sure to:

Have an escape route and plan in mind.

Evacuate regardless of whether others agree to follow.

Leave your belongings behind.

Help others escape, if possible.

Prevent individuals from entering an area where the active shooter may be.

Keep your hand visible.

Follow the instructions of any police officer.

Do not attempt to move wounded people.

Call 911 when you are safe.

2. Hide - If evacuation is not possible, find a place to hide where the active shooter is less likely to find you. Your hiding place should:

Be out of the shooter’s view.

Provide protection if shots are fired in your direction (i.e., an office with a closed door). Not trap you or restrict your options for movement.

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Brokers’ Beat Continued

To prevent an active shooter from entering your hiding place: Lock the door.

Blockade the door with heavy furniture.

If the active shooter is nearby:

Lock the door.

Silence your cell phone.

Turn off any source of noise (i.e., radios, television).

Hide behind large items (i.e., cabinets, desks).

Remain quiet. If evacuation and hiding out are not possible: Remain calm.

Dial 911, if possible, to alert police to the active shooters location. 3. Fight - As a last resort and only when your life is in imminent danger, attempt to disrupt and/or incapacitate the active shooter by: Acting as aggressively as possible against him/her.

Throwing items and improvising weapons.

Yelling.

Committing to your actions.

HOW TO RESPOND WHEN LAW ENFORCEMENT ARRIVES: Law enforcement’s purpose is to stop the active shooter as soon as possible. Officers will proceed directly to the area in which the last shots were heard. Officers will usually arrive in teams of four (4). Officers may wear regular uniforms or external bulletproof vests, Kevlar helmets, and other tactical equip-

ment. Officers may be armed with rifles, shotguns or handguns. Officers may use pepper spray or tear gas to control the situation. Officers may shout commands, and may push individuals to the ground for their safety. Do not stop to ask officers for help or direction when evacuating, just proceed in the direction from which

officers are entering the premises.

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Brokers’ Beat….Continued

How to react when law enforcement arrives: Remain calm and follow officer’s instructions.

Put down any items in your hands. (i.e., bags, jackets).

Immediately raise hands and spread fingers.

Keep hands visible at all times.

Avoid quick movements towards officers such as holding on to them for safety.

Avoid pointing, screaming or yelling.

Information to Provide to Law Enforcement or 911 Operator: Location of active shooter.

Number of shooters, if more than one.

Physical description of shooters.

Number and type of weapons held by shooters.

Number of potential victims at the location. The first officers to arrive to the scene will not stop to help injured persons. Expect rescue teams comprised of addi-tional officers and emergency medical personnel to follow the initial officers. These rescue teams will treat and remove any injured persons. They may also call upon able-bodied individuals to assist in removing the wounded from the premises. Once you have reached a safe location or an assembly point, you will likely be held in that area by law enforcement until the situation is under control, and all witnesses have been identified and questioned. Do not leave until law en-forcement authorities have instructed you to do so. TRAINING YOUR STAFF FOR AN ACTIVE SHOOTER SITUATION To best prepare your staff for an active shooter situation, create an Emergency Action Plan (EAP), and conduct training exercises. Together, the EAP and training exercises will prepare your staff to effectively respond and help minimize loss of life. Components of an Emergency Action Plan (EAP) Create the EAP with input from several stakeholders including your human resources department, your training depart-ment (if one exists), facility owners / operators, your property manager, and local law enforcement and/or emergency responders. An effective EAP includes: A preferred method for reporting fires and other emergencies.

An evacuation policy and procedure.

Emergency escape procedures and route assignments (i.e., floor plans, safe areas).

Contact information for, and responsibilities of, individuals to be contacted under the EAP.

Information concerning local area hospitals (i.e., name, telephone number, and distance from your location).

An emergency notification system to alert various parties of an emergency including individuals at remote locations within premises , local law enforcement and local area hospitals .

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Brokers’ Beat….Continued

Components of Training Exercises Recognizing the sound of gunshots.

Reacting quickly when gunshots are heard and/or when a shooting is witnessed. Evacuating the area. Hiding out. Acting against the shooter as a last resort. Calling 911. Reacting when law enforcement arrives. Adopting the survival mind set during times of crisis.

The most effective way to train your staff to respond to an active shooter situation is to conduct mock active shooter training exercises. Local law enforcement is an excellent resource in designing training exercises.

Additional Ways to Prepare For and Prevent an Active Shooter Situation Preparedness

Ensure that your facility has at least two evacuation routes.

Post evacuation routes in conspicuous locations throughout your facility.

Include local law enforcement and first responders during training exercises.

Encourage law enforcement, emergency responders, SWAT teams, K-9 teams, and bomb squads to train for an active shooter scenario at your location.

Prevention

Foster a respectful workplace.

Be aware of indications of workplace violence and take remedial actions accordingly. For additional resources on Active Shooter, please visit the U.S. Department of Homeland Security website: http://www.dhs.gov/active-shooter-preparedness

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At the June meeting, the MVRMA Board recognized member cities for their outstanding performance in controlling losses for the 2015 loss year. Standard of Excellence Award The City of Bellbrook, Centerville and Springdale were present-ed with the Standard of Excellence Award for incurring losses less than $100 per employee in 2015. The City of Kettering was recognized as the Overall Winner for achieving the lowest losses per employee.

2015Award Winners

Pictured L-R: Jerry Thamann, City of Springdale; Mark Schlagheck, City of Bellbrook. Photos unavailable Steve

Hinshaw, City of Centerville, Nancy Gregory, City of Kettering.

Departmental Zero Losses The Board recognized the following departments that achieved zero losses in 2015:

Consecutive Years Zero Losses The following departments were recognized by the Board for achieving zero losses for at least three consecutive years:

DEPARTMENT CITY

Fire Blue Ash, Piqua, Springdale, Wilmington

Parks and Recreation Englewood, Indian Hill, Mason, Montgomery, Springdale, Tipp City, Vandalia, Wilmington, Wyoming

Police Bellbrook, Centerville, Englewood, Indian Hill, Miamisburg, Piqua, Tipp City, West Carrollton, Wilmington, Wyoming

Streets / Refuse/ PW Bellbrook, Tipp City

Water / Wastewater Bellbrook, Mason, Miamisburg, Piqua, West Carrollton, Wilmington, Wyoming

DEPARTMENT CITY CONSECUTIVE YEARS

Parks & Recreation Englewood 3

Parks & Recreation Montgomery 15

Parks & Recreation Wyoming 7

Police West Carrollton 4

Water / Wastewater Bellbrook 3

Water /Wastewater Mason 6

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Counselors’ Comments By Dinsmore and Shohl

LIQUIDATED DAMAGES CLAUSES ALLOWED

IN PUBLIC CONTRACTS

In Boone Coleman Construction, Inc. v. Village of Piketon, the Ohio Supreme Court recently held that liquidated damages in public-works contracts are valid and en-forceable as long as the agreed upon damages do not constitute a penalty. Specifi-cally, liquidated damages are enforceable if: (1) the actual damages are uncertain as to amount and difficult to prove; (2) the liquidated damage amount is not manifestly

unconscionable, unreasonable, and disproportionate in amount; and (3) the parties intend that damages in the amount stated should follow a breach of contract. The reasonableness of the liquidated damages amount must be considered by looking at what the parties knew at the time the contract was executed, not by retrospective-ly considering the ultimate damages. In the Boone case, the Village of Piketon (“Piketon”) solicited bids for a road construction project and Boone Coleman Construction, Inc. (“Boone Coleman”) was hired for the project. The contract required work to be completed within 120 days of the date of commencement, and a liquidated damages clause required Boone Coleman to pay Piketon $700 per day for each day after the specified completion date that work was not sub-stantially completed. The contract required the project to be completed by May 30, 2008. However, Boone Coleman did not complete the project until July 2, 2009, 397 days after the completion date. Piketon sued seeking to enforce its contractual claim for $277,900 in liquidated damages. The trial court granted Pike County summary judgment for the full value of its liquidated damages. Ohio’s 4th District Court of Appeals reversed and held that the liquidated damages were excessive and constituted a pen-alty, and were unenforceable. The Ohio Supreme Court vacated the decision, and held that Piketon’s liquidated damages were not a penalty. The Court noted that liquidated damages are important in public-works contracts because damages to the public for delays in construction are difficult to quantify. Additionally, liquidated dam-ages benefit the public by helping to ensure projects are timely completed. Finally, the Court noted that the amount was not unreasonable. The fact that the liquidated damages were substantial was the result of Boone Coleman’s significant breach of contract. Including liquidated damage provisions in public contracts is an effective tool to ensure timely performance, but the amount of liquidated damages specified must be reasonable. Courts are more likely to uphold daily or weekly damage amounts (such as $700 per day) than a single lump sum. It is also important to clearly provide for liquidated damages in the contract to establish that the parties intended for such damages to apply. Finally, to help solidify a claim that the parties intended to allow for such damages, notice should be provided that a deadline to complete a project is approaching, and that liquidated damages will be assessed.

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Upcoming Training Events

Please continue to check our website, mvrma.com for upcoming training dates:

Upcoming Training—Date and Location TBD

Situational Awareness for Public Safety First Responders—

October 31st at Yankee Trace

Driver Training—September and October

Snow and Ice—October and November

Trenching and Excavation

Law Enforcement Legal Update

Actions taken at the June 20, 2016 Board meeting included approval of:

Renewal of TargetSolutions training

2015 Annual Report

Pinnacle’s Actuarial Report

7/1/16 Property Renewal

Agreement for Electric Generation and Transmission Supply Services

From The Board Room

SANDY CAUDILL, EDITOR

Upcoming Board Events

Board Meeting

September 19, 2016, 9:30 AM

MVRMA Office

AGRiP Conference

October 2nd—5th

Denver, Colorado