HomeMy WebLinkAboutOut of State Travel - Dallas, Texas - Risk Manager �'���� CITY OF PALM DESERT
� �
DEVELOPMENT SERVICES
• STAFF REPORT
REQUEST: Approve Out-of-State Travel to Attend the Public Risk and
Insurance Manager's (PRIMA) National Conference in Dallas,
Texas, on May 31 - June 2, 2009, to Receive "Author of the Year"
Award.
SUBMITTED BY: Gary Rosenblum, Risk Manager
DATE: May 7, 2009
CONTENTS: 1. Copy of Article "Public Agency as Landlord: Risk Management of
Affordable Housing" by Gary Rosenblum.
2. Copy of E-mail of Award Announcement.
3. Copy of E-mail for One-Day Pass to any Educational Session
and Exhibit Hall.
Recommendation:
By minute motion: Authorize the Risk Manager to travel to Dallas, Texas,
to attend the PRIMA Annual Conference in an amount not to exceed
$400.00. Funds are available in Account No. 110-4260-422.31-20.
Background:
This past January, the Risk Manager published an article, "Risk Management of
Affordable Housing" in the Public Risk magazine, the monthly publication of PRIMA
(attached). As noted in the attached email from PRIMA, the article was selected from
all articles published by Risk Managers this year to receive the "Author of the Year"
award, which is presented at the PRIMA awards banquet on June 1, 2009, in Dallas,
Texas. As this is an award of national significance in the Risk Management profession,
the City Manager concurs that this is a worthwhile trip to enable the Risk Manager to
receive the award in person.
Staff Report
Approval of Out-of-State Travel
Page 2
May 7, 2009
The total budget for the trip will not exceed $400.00 due to cost saving measures
arranged by the Risk Manager. Funds are available in Development Services budget
Account No. 110-4260-422.31-20.
Submitted By: Departme Head:
Gary Rosenblum Homer Croy
Risk Manager ACM for De lop ent Services
Approval:
J n M. Wo Imuth '='����'��t"'�C[LACT�(�:V
� y Matlag@1' APF�@�C�°!%��:E3— � I)F'NLE��)
R�'C'EIV6?U ()"i'ftt�:�l
,�l,l i�11:l�,Tl;r'CA I)ATE -
Paul Gibson �.vr5: � � �ner � �
Director of Finance �����` ���'r" `
a�scNT: on�
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VF,I2IFIF,D I3Y:
Original on File with City Cler s Uf'fice
G:\DEVSERVICES\GARY ROSENBLUM\WORD FILES\STAFF REPORTS�2009 STAFF REPORTS\PRIMA TRAVEL.DOCX
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By �.�ary Rosenblun GH, ARf��I
aLm Desert is a ci�y of 50,000 0�� with si�nihcane"green" c(�menis likc activ� conn-accors hold tlle citp har��lles�and
the ed�e of the P�,Iohave Desert, Ld and passive energy-�aviilg feaeures, aud extend addirional ins�u-.d sra�us t� the ciit�
miles east of Los Angeles."Che city� low-water use fixtures and landscaping can or redevelopment agenc�-.���ithou�goin�
is ju��tifably proud of i�s stron�financial achicve results not possible�vith private inro too muc1� detail, it is iinperative tfia�
balarlce slleet and a verti�solid lux�u�y housing affordable development.�Il�e renanis oFthe die concract 6as a clear and enEorceable
sectc�r. Hov��ever,like al1 cities,Pa1m Des�_rt afEordable portfolio enjo}�lo�i��r opera�ing indemniry ciause separace from a dear
also aeeds affordable housing.A vibrant ciry costs and t1�e citv o���nership�ets quality and specific insuraiice clause requiring
should not isolate or�narginalize diose with con�rol of the propert}'.Tenanrs develop a appropriace limits and adding the city as an
lowei�incomes.They slzould be able to acc�ss positive relationship�vi�h �he city and �ake addicional insuced. �
their jobs,shoppinb and communiry services pride in their housing.
inside the ciry witllout the expense and envi- When remodeling or demolishing older
ronmental impact of a�ong car eommute. In order co achieve these benefits,che ciry's properties, the environmental risks mostly
risks must be managed.The three risk sets for invo�ve the presence of lead and asbestos in
Palm Desert's Redevelopment Agency o�vns the city are construction rislis,which stem the properry.Lead is a neurotoxin that slowl��
and operates more rhan 1,200 affordable Erom demolition and remodeling,propert}' accumulates in the bod}�and can cause
units,many of which�vere purchased and inanagement risks and properry rislcs. damage�o the brain and nerves.Asbestos,a
remodeled as"green"afFordable units.When 1_no«n carcinooen,was commonl}r used for
a city bu}�s,renovates and then owns and fireproofing and insulating material, bu�was
operat�s residential real estate,the municipal Construction, remodelin�and demolition rescricted in the US in 1974.It can still be
risk mana�er is confronted with a ne�v array risLcs for housing are probably fainiliar to risl: found in various newer iinported construc-
of ris�s to manage. managers who are innolved�vid1 building tion ma�erials such as floor tile aad mastic,
or remodeLing municipal structures.The �va11 tape and popcorn coacin�, in insula�ion
Because these risks can be managed, Palm main issues involve ca�ti�actor liabilit��for and roof shingles.Lead usually�is found in
Desert has chosen to continue to utilize the operations>einploy�es and vehicles and o1d painc and occasionally�itnported tiles.
the advanta�es of o�vning and operating addressing th�environmental hazards that
its affordable portEolio. Pa1m Desert is often exist with older buildings. Toth are highly regulated b5�various
cominitted to reducin�energy and�vate� �o��ernmeni agencies, rnoscly at the state
coe�sum�tion in thz ciry b}�30 percent in Typically,liabilit}�mana�einen�is done and federal lea�ls, to protect both the public
10 years. Redeveloping blighted aparemeuts through contractual risk transfer���hece and�vorkers from ehposure. �XThen bu5�ing
�,vv:rv��.;�rimacentral.org j l�nuary zoo9 ; Y ublzc R€�k -g
_
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�au��e�ern�lishi;�b�r z��n��aating o1�1Lr pa-���- � .,��ir-�.su���e�E tas��_s�,���a vast a@ray c�� s�r�ethea�g that c�ra c�b.�a�_bac!<zs z�c,;st�;,
�
e;fics t�at ecrulc� in���l��e lead c�r-asbeste�s, ����ic e�he�asie�ls ca�als�be in thc gr�ean�' iitigation�iabiliiy a��c P-emodel cost u��i����}��i+
tl��e lce��risks to tnanage a�e preveiltin� csr a� a�nderground tanks, l�iunici�a(h�uye�s 7east expect ii in the uture.f�azc�t�ler ar�a Q>C
liabilic}� frorn exposing people (workers, nee�ro 6�aivaee tha�6u�ing a prope�ty caY, �o�cern in a reside���ial K�en�vatie�h is;irc ec�c��
eenants c�r t6e public) t�airbs�r;ze c�us<arso als�:inclia�l��uyi�gg iiab�fity fo��€n��ggr����i u�gra��_s Eor cldes hcrasii7g stoc�., partic��9zar�!_},
�raccting all the re�ulacor�=eequirements i�� contarnination,even if the containrna�i�n reeeofti installation ol�sprinklers. I�c sure io
a��vi�l ;Lgtilaec�ry fisl�,. es hist�:ic. Fie sute t�prove wh�r_her or:�o� che�k��it1�tlie 6uildin�an�J sajeiy divis9ori
grouncl cc+ntaminants are present beforc an�the f�re marsh�l tc gee 1�I�f\anc9 �i,�
l�'/it�a lead or asbestos piesent, it is critical purchasing an��psoper�y. s�fet}�requi�-ements u�Eo cod�.
te�llav�properl5�liccnsed contractors doing
�I�c;vork,and ii is equally critical to have l7Uhen a residential or apartment property
c�vcrsibht perforined by Ceecified Industrial is�uu�chased, and closed up in advae�ce The second risk_see��hen a city owns hc�usi�7g
F[ygienists(CIHs) who provide essential of demolition or remodeling, the empry relates ro avoiding potential liability in
scicntific proof of the presence or,prefera6Ly, properry may be weel�s or months away Ei-otn eelation ro interacting with the tena�Its o��
the absence oCcontaminants while the worls conseruction.Avoiding liabilit}�[�r losses prc��erry management rislcs.
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is being done.The CIHs are not hired by the or injuries that occur from trespassers and When tihe ciry owns the property in which
contractors, they must be independent third transients is done through a strong fencing people are living,as opposed to visiting
parties hired by the owner. Having the CIHs program combined with alert police and during normai working hours, the negacive
review the concainment procedures and code enforcement activity. interactions that can lead to claims (or losses
perform air monitoring to prove the contain- expands into the nights and weekends and
rnene warked properly manages the risk of Pools should be drained to avoid drowning can involve children and adults.The claims
health liabiliry claims made by present or and mosquito risk,but empry pools can can srem fi�om boch cenant-Landlord and
FutUre tenants,workers,members of the become attractive nuisances ro rogue skate- tenant-properry interactions.
public or any regulatory agency. boarders. Secause swimming pools are not
designed as skate parlcs,municipal skate park A ciry may have experiencz with public
Utilizing CIH services is expensive, but immunities are limited. reladons across a service counter in city hall,but
potential property owners should know if may not have the skill sets to manage day-to-
asbestos or lead is present on the propert�� Once the city renovates a property,ir must day interacrions with tenancs.O�ie method to
before any purchase is done. 7-hen the be upgraded for accessibiliry foe the disablec�. shield the ciry From claims arising from tenant-
purchase price can possibly reflect a Dedicated parking,appropriate entrance landlord interactions is to transfer t!-ie risk to a
discount for the cost of remediation and e.cit aecess,second-floor access and even third-party properry management service.Palm
and industrial hygiene consulting. New set�in;aside a certain number of units for full Desert utiLizes this method and uses only onc
properry owners must also properly inEoYm incerior accessibiliry renovation are among the management contractor for all properties."[liis
subsequent conct�ac�ors and tenants if lead many accessibility tssues to considec Avoiding improves communication and f-esponse from
o� asbestos are present, compliance with residential Americans ehe contract management cotnpany and helps
wieh Disabilities Act(ADA)standards is keep the rules consiseen�a�aLl propereies.
�� �'u�f�Qc� �2�sC: ; January zoog � uvww.primaceniral.org
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�_ :vc1l-lnsured rOr lLab1lltn and�P�eq�l�ed ��Sk��_ar�sic", LIlr �Lr�S�u_.1,L I, e 1. I:_11fL:� ,iORal 2�E �.S.i > �JJ�i�.. �
r_�hald the cit��hz�mless ior the_rest�lts of�i�� f�r�hose ii,nes�:';n�t, th ci��. cant��, a�oid i�i cs�3e�iy is iinisl eci ���se�i �.1�a�.;a�-e i�ora�e
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�=�ock che��are eontracted to do,lhis inclt ies being ir���olve� in a clain. and th�pr����aiiin�cost o.eonscr����ti-��, in
�laCs��lII� ��1�221d�1�1317�1CL"'�i iZ1ICis i1Ji.S L�'i �� Ifl.:2� -. ���;�- L ii_Di�i�.�L �P. �. � ��i5
regacd�ng rent,��mplaints,prop�i���inspec- ��o�:, �=�ell ��� m_na��in��nt coizipan�,'inves- ��reeu," t a ta s����t un apptaise Kno�rl�d���
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toca� a��d uo�'m�m2ir_�t,e�nancc_ �i���<�,, ��ilc��s �u�,��1z
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Li I�r:S� IitS 9.'nr_, jt-. 2.SI�Il1nC�1Ri :.i.�'.CS �? 'r'�, ��71��1�1r ��3FlP_ie-u..
Clcael;��ILnne the�i��ision�f labor on d_�fending claims,�ll3is i;especiall�
b�t�veen the management contractor and n��be of ihe landlocd�s,esponse io slip�and Z�he rea1 replacemen���alues of�rope�t��
che m��nicipal o�vner."Ihe managzme��t fall�nci mold claims. I�is also impof tant contents should also be considered,especi�11��
contractor should find and fi�minor hazards fo3 aa✓oiding dairr�s ti�at could arise aEter iEche rehabili�ation includes cemodelinb
and ce�mplaints pro�nptly�.On rhe other hand, the city should have had no�ice, a�id th� interiors and adding kitchen applianc�s,
signifieant issues such as capital improvements causal factor in the loss���as no� properl�� air condieioning, carpeting, erc. 1'rope;ey�
a�significan�safecy or code issues can l�e addlessed. Residential pro�iei�t��can have co�era�e usually I:as a personal prope�,���
direcred co the citj�owners promptl�r. risks in need of being addressed in parking componenc to cover conten�s, buc because
lo�s, common areas,�.a�allc�a�aes, stairs an�' thz5�are��sually�a sienple percencage of the
Since a city has Iimitations on when and elevators, and uplceep issues from lightiria, propert��insurance value, �his percentage
how it can spend mone}�on unexpected trees, rodents and mosqui�oes. may need to be adjusted upward to cover the
capital improvements, ir is important to cost of installed energy ef�icient upgrades.
have the management company effeceiveL�� Normally, crime is a police issue, not a
inspect the properties, report issues liabiliry issue For a ciry. Ho�vever,v�rhen A final componen�ro consider is how
efficiently and be able to competendy the cit}�manages residential properties, a imporcant the rznt collec�ed is eo the
handle routine maintenance. It is also liabiliry connection could be made to a financial well-being of the cin�. Business
important that the managemenc service crime committed on the property,�vhere interruption (BI) coverage protects against
contractor have qualiry standards to avoid there are Eactors like negiigent mainteuance loss of rent and extraordinarj�expenses
shoddy maintenance and repair�vork leading to improperl5�dark, overgro�vri in che zvent of a covered loss. Owning
that can prevenc either personal injury areas could allow a perpe�racor to lie in�-vaic residential property changes the risk profile
losses or property losses.A fund should be of a victim. It is highlj� undesirable for a of the municipal property�schedule. For
established that is under the control of the ciry eo be connec�ed to negligent conditions example, tenants cause fices more frequentl��
inanagement company�vith ciry oversight that can make it easier Eor criminals�o than would occur in municipal buildings
that is used to pay for immediate repairs opecate and both rhe cit��risk manager occupied during normal business hours for
and other tenant issues. and the managemen�company�must make municipal purposes. Candles,cooking and
preventing this a priorit��. cigaretres�vhile sleeping are not par�of the
The contractor should aLso have liability usual municipal property Ioss eYperience_
coverage For their professional services that One careless tenant can cause enough
include such things as dealings with the �[he final area of interest in managing damage to affect dozens of other units and
tenants and a background check of the tisk of residential a`ordable housing B/I coverage can help restore rent losses as
contractor's the on-property personnel. concerns the financial propertj�elements, well as shore up extraordinarj�coscs lilse
mostly valuing the propert��and having celocation assis�ance foc affected cenan�s.
It is important for the city to remain at the right kinds of coverage. De�eunining
"arms Length" and not manage the profes- replacement value of residential property In conclusion,a cit}�can own and opera�e
sional service activities of the eonu�accor. is noe a usual activity for a municipal cisl� residential properry for the benefit of lo���er
The contractor needs to handle collecting manager and it is particularly difFicult to income tenants, and the entire citv if the
the rent,signing Leases and responding value old, decrepit properties often bought risks are managed.�Ihe benefits of creating a
to all t}�pes oE tenant complaints. Despite under distress, and then reha6iLitated. 1ive15�,vibrant, energ5�-efficient cicv ace worth
the facr that tenants know the ciry is The purchase cost is a natural starting the risk management effort�[
the Iandlord and«�ill call the ciry with point, but adding in the pure cost of the
complaints, these need to be referled back cehabiliration projecc could overvalue v�,��Rose,��il�t;;a, C_%F%,�1�'VI?s zl��;•;sl.
o ' Oi":J9�CFi i�C�_%�C3G��g IJ?i�;':-, i,�i,
to the manaaement company to avoid d�e property. Investing in hibhly efficient ��u:�?a,;c-; f: j
damaging the protections of the concrao- "green" techno(ogy in che rehabilitation can
tor's contractual risk transfer.The ciry can, result in high-cos� rehabilitation and�his
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con�rac�or for inves�igating and responding being appraised for replacement aalue.
to major tenant liability claims or mold
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Loredo, Monica
From: Rosenblum, Gary
Sent: Friday, April 17, 2009 9:17 AM
To: Loredo, Monica
Subject: FW: Congrats! Public Risk Magazine Awards
From: Jennifer Ackerman [mailto:JAckerman@primacentral.org]
Sent: Wednesday, April 01, 2009 12:56 PM
To: Rosenblum, Gary
Subject: Congrats! Public Risk Magazine Awards
Dear Gary,
Congratulations! You both have been selected as Public Risk magazine Author of the Year by PRIMA's editorial
committee for your article on public entity as landlord! This is a big honor as you were chosen from a pool of dozens of
practitioner-writers.
Your names will be announced at PRIMA's awards luncheon, to be held on Monday, June 1, during PRIMA's Annual
Conference in Dallas. If you are able to attend, you will go up on stage to receive your award from PRIMA President
Sarah Perry. Please let me know by May 1 if you plan to attend the event. If not, your award will be shipped to you.
Congratulations again and keep up the good writing!
Best regards,
Jennifer
--------------------------------------------
Jennifer Hart Ackerman
Public Risk Management Association (PRIMA)
500 Montgomery Street, Suite 750
Alexandria, VA 22314
Direct: 703.253.1267
Fax: 703.739.0200
�ackerman(a�primacentral.orq
1
Loredo, Monica
From: Rosenblum, Gary
Sent: Friday, April 17, 2009 9:16 AM
To: Loredo, Monica
Subject: FW: Congrats! Public Risk Magazine Awards
From: Jennifer Ackerman [mailto:JAckerman@primacentral.org]
Sent: Friday, April 17, 2009 8:27 AM
To: Rosenblum, Gary
Subject: RE: Congrats! Public Risk Magazine Awards
Hi Gary,
Yes, definitely plan to come to the welcome reception.As an award winner, you will also be invited to the PresidenYs VIP
reception prior to the welcome reception on Sunday. You will receive an invitation to that event under separate cover. I've
also arranged for you to get a one-day pass for Monday, so you can attend any educational session you want plus go into
the exhibit hall.Just come to the registration desk on Sunday to get your pass and ticket to the welcome reception.
Please let me know if you have any questions.
I'm glad you're able to attend.
Best regards,
Jennifer
Jennifer Ackerman
703.253.1267
1