Sharing Services Identifying and Managing Risks of “Borrowed” Employees Through a Contract Brian Gaviglio Litigation Management Attorney League of Minnesota Cities Richard Spiers VP - Claims Genesis

Audience Poll Is Anyone Sharing Services? What Services are Being Shared? Are You Sharing With a Government or a Private Entity?

Services Being Shared Police and Fire Departments Major Crime Investigating Groups Large Scale Emergency + Disaster Response Engineering / Building Inspection Water and Wastewater Operations Street and Highway Maintenance Recreation Programs + Special Events Library Districts Equipment Usage Public and Private Partnerships Presentation coming up – After #3

Things to Consider Before Making An Agreement Police Shootings Shared Vehicle Pedestrian Accident Multiple Named Defendants Wrongful Incarceration – Major Crime Teams User Town can be Claimed against for improper hiring

Why Did This Begin? Some Towns Were Growing Quickly and Needed Assistance Public Funding Accounts Did Not Have Sufficient Amounts Increased Media Scrutiny of a Publicized Need to Improve Services in a More Economic Manner Political Push for Local Government to Collaborate and Share Resources (Illinois Budget Issues)

Goals Cost Savings Property Tax Reductions Improved Quality of Service Efficiency Utilize Expertise Building Partnerships and Coalitions for Future

Who Can You Share With? Cities Counties Townships States Private Businesses Entities Public and Private Partnerships Presentation coming up

Save Money Advantages Infrastructure Expertise Road Maintenance 911 Efficiency Better Fire Equipment Reduce Number of Employee Costs Improve Services in Other Areas Remain Consistent in Provision of Services Save Money

Concerns Politics Job Losses Quality Control Reduction Mayors + City Counsels + Department Heads (Chiefs) Job Losses Employee Anger Quality Control Reduction Project Maintenance Lack of Communication Schedule Constant Meetings Informal Agreement – Snowplow Breakdown, e.g.

More Concerns Funding Sources Shared Emergency Dispatching Will This Have an Impact on State or Federal Funding? Shared Emergency Dispatching Added Potential Liability to Members? Loss of Hiring and Training Control Citizen Concerns Conduct a Survey Make Sure Public is Made Aware

Pre-Agreement Considerations Experience Level of Service Entity’s Reputation Any Prior Publicized Complaints Possible Effect on Your Reputation Accountability Getting the Most Bang From Your Buck

Types of SSA’s Joint Powers Agreements Consolidating Existing Similar Services Mutual Aid Agreements Contract Service Agreements Shared Resource Agreements Shared Personnel Agreements

Agreement Requirements Wording Needs to Be Clear Regarding: Purpose Assumption of Liability / Defense / Indemnity / Insurance Responsibilities Specified Details of Services Being Provided Payment Details Administrative Responsibilities Communication Schedule Clash cover talk

Agreements Start a Joint Advisory Committee Verify Equipment and Supplies Provider Employee Definition Service Continuation Details – Dealing With a Request by a Member to Leave the SSA Ending / Terminating the Agreement Details

Important Aspects to Consider Management Skills Overall Support Communication Close Attention During Implementation Consistency within Contract Contract Wording

Audience Poll What Generated the Desire to Share? Were Goals Set for Implementation? Greatest Challenges? Did Any Negative Issues Arise? Most Positive Results?

Questions?

Proprietary Notice and Disclosure Notice The material contained in this presentation has been prepared solely for informational purposes by Genesis Management and Insurance Services Corporation and League of Minnesota Cities. The material is based on sources believed to be reliable and/or from proprietary data developed by Genesis and League of Minnesota Cities, but neither Genesis nor League of Minnesota Cities represent as to its accuracy or its completeness. The content of this presentation is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. Disclosure Genesis Insurance Company is licensed in the District of Columbia, Puerto Rico and all states. Genesis Insurance Company has its principal place of business in Stamford, CT and operates under NAIC Number 0031-38962.

Contact Information: Brian Gaviglio League of Minnesota Cities Tel: (651) 281-1275 bgaviglio@lmc.org Richard Spiers Genesis Underwriting and Insurance Services Tel: (312) 526-7566 richard.spiers@gumc.com