Newsletter

11^th Annual Capstone Award Nominations Being Accepted

The nomination period for the 11^th Annual California JPIA Capstone Award is open! The award is presented annually at the Authority’s Risk Management Educational Forum to an individual who best exemplifies risk management best practices among the Authority membership. Submissions will be accepted through April 12, 2024.

Please nominate someone who should be considered for the Capstone Award by completing the brief nomination form. Your input is crucial in identifying colleagues who promote risk management excellence.

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Nominees can be from any position within a member agency. They just need to be champions for risk management! Here are some examples of characteristics that will be considered:

• Works to support the member agency’s traditional or enterprise risk management efforts.
• Develops, implements, and administers loss control and prevention programs to mitigate risk exposures for the member agency.
• Coordinates support systems that serve the member’s risk management goals and needs.
• Influences others in developing quality risk management programs for the member agency.

At the 2023 Risk Management Educational Forum, Audrey Cray, from the City of Pacific Grove, was presented with the Capstone Award. Cray, the city’s finance and risk manager, was selected from five finalists and chosen for her exemplary risk management efforts. Some of her accomplishments include spearheading a very effective safety incentive program, assisting in developing and planning organization-wide training, and providing quarterly reports to the city council about workers’ compensation claims and the program’s state. Additionally, Audrey was recognized for leading by example when it comes to implementation and following through with the service and care of city employees. She is known for bringing people together.

All finalists will be recognized at this year’s Forum on October 9–11, 2024, at the Hyatt in Indian Wells. For questions about the Capstone Award, please contact Administrative Services Director Nikki Salas by email or at (562) 467-8722.

Temporary Housing and Support Services for Individuals Experiencing Homelessness

As California’s homeless crisis continues, local government agencies are responding to the need for temporary housing and support services. While these resources are best provided by public agencies and nonprofit organizations specializing in this area, local government agencies sometimes have to offer these services and assume the associated risk.

Suppose the agency intends to contract with another party to manage temporary housing and/or support services. In that case, a written agreement should be executed with indemnification language in favor of the agency. The following types and limits of insurance are recommended:

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• General liability $5M per occurrence / $6M general aggregate with the agency included as additional insured
• Sexual abuse and molestation liability $1M per occurrence / $2M aggregate
• Automobile liability $1M combined single limit
• Workers’ compensation (statutory limits) / employer’s liability $1M per accident or disease with subrogation waived in favor of the agency
• Professional liability $1M per claim / $2M aggregate

Keep in mind that certain property managers may refuse to indemnify the agency for general liability exposures and to include the agency as additional insured on their general liability coverage. This is a common practice in the commercial property management industry, where the building owner is generally expected to protect the property manager from liability. If your agency encounters this situation, please contact your regional risk manager for guidance.

If the agency intends to provide these services directly, the safety and security of staff and service recipients are paramount. A site security assessment should be conducted to identify scenarios that could lead to unauthorized access or potential violence. Ensure staff are aware of these exposures, develop a mitigation plan, and train staff on that plan. Clear rules should also be set and enforced to maintain order. In addition, staff working with individuals experiencing homelessness may face verbal or physical aggression. Thorough training on de-escalation techniques, crisis intervention, and personal safety protocols should be provided.

In addition, outbreaks of communicable diseases are more likely in congregate settings. Partner with public health agencies to implement sanitation protocols, provide hygiene essentials, and screen residents for potential illnesses.

If housing is leased, a close reading of the lease agreement is essential to understand your agency’s obligations clearly. This may include ensuring the building complies with California Health and Safety Code habitation requirements and other applicable regulations. The risk of theft, vandalism, and unauthorized access increases in temporary housing. Conduct regular inspections of the facility to prevent such occurrences or to address them as soon as possible. Finally, ensure the building meets accessibility standards for individuals with disabilities, including adequate signage and barrier-free entrances and exits.

Managing housing and support services for individuals experiencing homelessness is a complex endeavor. Assessing the risk and implementing the above recommendations will significantly contribute to the health and safety of staff and service recipients and reduce the likelihood of property and liability losses.

If you have any questions, please contact your regional risk manager.

California JPIA Shares Insights at CSMFO, Cal Cities City Managers, and PARMA Conferences

California JPIA staff members addressed the latest trends impacting local government agencies by sharing knowledge and best practices with municipal staff and industry peers at three important conferences: the 2024 California Society of Municipal Finance Officers (CSMFO) Conference, May the Magic of Finance Be with You, the 2024 League of California Cities City Managers Conference, and the Public Agency Risk Management Association (PARMA) 50^th Annual Conference and Expo.

CSMFO promotes excellence in financial management through innovation, continuing education, and professional development. The CSMFO Annual Conference in Anaheim, January 30–February 2, featured educational and motivational sessions, networking events, and an exhibit hall.

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In their panel presentation, “Emerging Trends: The Evolving  State of the Insurance Market,” California JPIA CEO Alex Smith and Finance Director Jason McBride discussed the current state of the insurance market, including emerging trends shaping the landscape. Managing Director of BMS Group, Hannah Watkins, and Senior Vice President of Alliant Insurance Services, Inc., Rob Lowe, rounded out the panel, sharing the challenges of the current insurance market conditions and countermeasures for cyber security risk.

The League of California Cities (Cal Cities) defends and expands local government control through advocacy efforts. Cal Cities also offers education and training programs designed to teach city officials about new developments in their field and allow for the exchange of solutions to common challenges facing their cities. The Cal Cities City Managers Conference in Hollywood, February 7–9, welcomed 500 city managers, assistant city managers, and deputy city managers from across the state who equipped themselves with essential information and updates to run their cities effectively.

When confronted with complaints against their city’s elected officials, city managers may walk a delicate tightrope. California JPIA Employment Practices Manager Kelly Trainer Policky moderated a panel of experts on this topic at the League of California Cities City Managers Conference. The discussion, titled “Walking the Line: Addressing Complaints Against Elected Officials,” provided vital insights and strategies for navigating these complex situations.

Session speakers included Renne Public Management Group Executive Director Nelson A. Fialho, Van Dermyden Makus Law Corporation Managing Partner Eli Makus, and Atkinson, Andelson, Loya, Ruud & Romo Partner Jenica Maldonado. Each panelist provided practical guidance on key legal considerations, offering insights into the specific challenges that arise when the subject of an investigation holds a position of authority.

The discussion centered on internal investigations, providing insight into inquiries, legal matters, and best practices for navigating sensitive situations. As they walked the conference attendees through the discussion questions for consideration, the panelists weighed in on best practices for navigating these sensitive situations and shared experiences encountered throughout their careers.

“City managers face an influx of difficult tasks every day,” said Trainer Policky. “It was my pleasure to join this panel on guiding city managers through complaints against elected official complaints. Bringing intentionality to each step of this process is of the utmost importance, from your initial response to receiving a complaint to disclosing investigation results.”

PARMA is an association dedicated to the professional development of California public agency risk managers and other municipal staff who support risk management in their organizations. It is guided by a cadre of volunteer leaders, including four California JPIA staff members: Workers’ Compensation Program Manager Jeff Rush, who serves as president; Claims and Insurance Director Paul Zeglovitch, who is the Secretary/Treasurer; Insurance Programs Manager Jim Thyden, who is a past-president and member; and Risk Services Director Alex Mellor, who, along with Jim, serve as members of the conference planning committee.

Trainer Policky provided additional employment expertise at the PARMA Conference in Indian Wells, February 20–23. During her session, titled “Under Pressure: Top Ten Mistakes Employers Make in Preventing and Responding to Harassment,” she dove into responding to employee complaints with empathy. Learn more about Trainer Policky’s insights in the Authority’s recent article.

“When California JPIA staff present at conferences and industry events, they provide relevant information and engage with local government employees and elected officials,” stated Smith. “We seek to add value by spotlighting the importance of best practices in risk management and good governance.”

The Lifecycle of a Liability Claim

This article provides a step-by-step guide to understanding the lifecycle of a liability claim.

The California Tort Claims Act governs claims against public entities in California, otherwise known as California Government Code sections 910-913.2. Claims for property damage or bodily injury must be filed within six months of the date of loss, while claims for real property (such as a house) must be filed within one year.

To properly file a claim against a public entity, the claim must be submitted to the agency clerk or another authorized person.

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After receiving a liability claim, members should “submit a claim” on the Authority’s website, www.cjpia.org, or send it via email.

Carl Warren & Co. (Carl Warren) is the Authority’s designated third-party claims administrator for the primary and excess liability programs. A Carl Warren supervisor will review the claim and assign an adjuster upon intake. The assigned adjuster will make initial contact with the member and the claimant. They will also determine if a late claim or insufficiency letter should be mailed and do so within the appropriate time limit, subject to member approval.

The next part of liability claims handling involves fact development. The assigned adjuster will send the member a written request for information outlining all the information necessary to evaluate the claim. Likewise, a phone call or written request will be made to the claimant to secure any information that is necessary to assess the claim and for injury claims—to obtain a recorded injury statement. These requests will go through the attorney’s office when an attorney is involved.

After gathering the information needed to assess liability exposure, the adjuster will either reject the claim or enter settlement negotiations with the claimant or their attorney. Generally, if a claim is a candidate for settlement, these initial efforts to do so will precede a rejection letter. If a settlement cannot be negotiated, a rejection letter will likely be mailed to set forth the six-month statute to file a lawsuit. The six-month statute is computed from the day the rejection letter is sent.

If a lawsuit is filed and served upon the member, the Authority assigns defense counsel from a pre-selected panel of attorneys. In the primary program, the Authority decides the attorney, although recommendations from the member are welcome. For the excess program, the member selects an attorney from the panel if the exposure on the case is within their member retained limit.

The litigation process can be lengthy—generally up to two years—and consists of initial pleadings (filing of the lawsuit and a response by the defense) and discovery (written requests for information from each side, depositions, and site inspections). This is followed by any potentially dispositive motions (summary judgment), mediation, and trial if the case cannot be settled. Throughout the litigation process, a Carl Warren adjuster or supervisor will manage the litigation and provide litigation management plans to the member at 90-day intervals. In addition, defense counsel is instructed to copy the member on any reports regarding the case’s progress. Should the exposure be significant, the Authority’s Claims and Insurance Director, Paul Zeglovitch, jointly manages the case.

For the primary program, the decision to settle or take a case to trial is solely that of the Authority. However, we invite collaboration with members and strive for a unified position. In the excess program, the member can decide to settle or take a case to trial if the exposure on the case is within their member retained limit.

If you have questions about the claims process, contact Paul Zeglovitch, claims and insurance director. For inquiries about a specific claim or case, please contact the assigned Carl Warren adjuster or supervisor.