Public Risk August 2013 by Moire Marketing Partners

Published by the Public Risk Management Association

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AUGUST 2013

TONY HARRIS IS PRIMA'S 2013 PUBLIC RISK MANAGER OF THE YEAR

LANDFILL RISK MANAGEMENT How to Avoid Getting Down in the Dumps!

ELECTED AND NOW YOU’RE STUCK WITH ‘EM

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Volume 29, No. 7 | August 2013 | www.primacentral.org

The Public Risk Management Association promotes effective risk management in the public interest as an essential component of public administration.

PRESIDENT Betty Coulter Director of Risk Management and Insurance University of North Carolina at Charlotte Charlotte, NC

CONTENTS

PAST PRESIDENT Dan Hurley, CSP, ARM-P, MS Senior Director, Risk Management & Safety Norfolk Public Schools Norfolk, VA PRESIDENT-ELECT Regan Rychetsky, ABCP Director, HHS Enterprise Risk Management and Safety Texas Health and Human Services Commission Austin, TX

Dean Coughenour, ARM Risk Manager City of Goodyear Goodyear, AZ

6 TONY HARRIS IS PRIMA’S 2013 PUBLIC RISK MANAGER OF THE YEAR

Terri Evans Risk Manager City of Kingsport Kingsport, TN

By Jennifer Ackerman, CAE

Matt Hansen, MPA Director, Risk Management Division City & County of San Francisco San Francisco, CA

12 LANDFILL RISK MANAGEMENT

How to Avoid Getting Down in the Dumps!

By Joe Jarret

DIRECTORS Ed Beecher Risk Manager City of Pompano Beach Pompano Beach, FL

Amy Larson, Esq. Risk and Litigation Manager City of Bloomington Bloomington, MN Tracy Seiler Manager of Risk Finance The University of Texas System Austin, TX

15 ELECTED AND NOW YOU’RE STUCK WITH ‘EM

EXECUTIVE DIRECTOR Marshall W. Davies, Ph.D. EDITOR Jennifer Ackerman, CAE Deputy Executive Director 703.253.1267 • jackerman@primacentral.org

By Dennis Molenaar

ADVERTISING Donna Stigler 888.814.0022 • donna@ahi-services.com

Public Risk is published 10 times per year by the Public Risk Management Association, 700 S. Washington St., #218, Alexandria, VA 22314 tel: 703.528.7701 • fax: 703.739.0200 email: info@primacentral.org • Web site: www.primacentral.org Opinions and ideas expressed are not necessarily representative of the policies of PRIMA. Subscription rate: $140 per year. Back issue copies for members available for $7 each ($13 each for non-PRIMA members). All back issues are subject to availability. Apply to the editor for permission to reprint any part of the magazine. POSTMASTER: Send address changes to PRIMA, 700 S. Washington St., #218, Alexandria, VA 22314.

IN EVERY ISSUE

4 News Briefs | 19 Advertiser Index | 20 Member Spotlight

AUGUST 2013 | PUBLIC RISK

PRIMA 2013

WEBINAR SERIES FREE FOR PRIMA MEMBERS! Looking for a cost-effective way to train your staff while avoiding the frustration of budget cuts and travel expenses? The Public Risk Management Association’s Webinar series is designed to help risk management professionals like you excel in the field without leaving your office.

WEDNESDAY, SEPTEMBER 18 | 12 PM – 1:30 PM EST Implementing ERM in the Public Sector: Obstacles and Opportunities PRESENTERS: Dorothy Gjerdrum, ARM-P, CIRM, Executive Director, Gallagher Public Sector Matt Hansen, Director, Risk Management, City & County of San Francisco, CA Public entities have unique obstacles and barriers to implementing enterprise risk management (ERM). Politics, leadership, budget constraints, operational history (“we’ve always done it this way”) and resistance to change are a few of the constraints that challenge the development of ERM. In some entities, risk managers are viewed as “the person who says no” to new projects and activities or simply the insurance buyer. Combine those obstacles and attitudes and it’s no wonder that there is a perception that ERM is hard to implement! But does it have to be? This Webinar will provide tools and solutions to address implementation constraints, begin to shift attitudes and turn obstacles into opportunities. During this Webinar, participants will: • Understand the barriers to ERM implementation and ways to address them • Review how public entities with successful ERM programs have approached obstacles • Consider tools and solutions to begin to implement ERM in your entity Who should attend: • City and county risk managers • Contract administrators and department heads • Project managers • Decision-makers • Risk management consultants • Risk managers and analysts

PRIMA members receive complimentary registration and access to the Webinars! S E R I ES S P O N S O R :

For more information, or to register, visit www.primacentral.org.

Message from PRIMA President Betty Coulter

WHEN TRAGEDY STRIKES

he movie, Day After Tomorrow, depicts the effects of global climate change and how those changes create three “super storms” of violent weather across the world. Mankind struggles to survive amidst the rapidly changing events of a natural phenomenon. Most everyone has been touched by the devastating effects of a natural disaster. Unlike catastrophic events resulting from human error, natural disasters are significant adverse events from a natural process that is vast and negatively impacts thousands of people each year. We have seen many disasters, from Hurricanes Andrew, Katrina and Sandy; to tsunamis and tornadoes; to the recent wildfires of Arizona, which took the lives of 19 firefighters. As risk managers, these types of risks are inherent in our profession. But how do we prepare for such devastating events? Developing frameworks around present and future risks to identify community vulnerabilities sets the stage for identifying those risks that are most prevalent. Establishing a network of professionals for collaboration to evaluate and outline the worst case scenarios of each risk is another element of disaster planning. Identifying exposures to human life, loss of property, and loss of commerce—actions that can be taken before an event occurs—is another critical element of risk identification. An important aspect in preparation of the framework for disaster management is vetting how the crisis can be managed and how responses are adapted for each event. Risk managers need to create a network of local, regional and national resources that have the ability to respond to a catastrophic event in a timely and effective manner. Ensure that you have tested your business continuity plan in preparation for aid in disaster recovery, but also to mitigate the effects of the disruption of your organization. Business continuity plans should be live and evolving strategies that are adjusted for any potential disaster. Review and evaluate your insurance coverage to understand how events from a natural disaster are covered and what is excluded. Explore opportunities for enhancing your coverage through the purchase of riders, by utilizing

the non-standard insurance market and any other federal or state programs that may supplement your current insurance policy. Examine and update mutual aid agreements to identify responsibilities of those operations that aid in disaster response. PRIMA strives to meet the needs of risk managers by offering various types of disaster planning and recovery resources. Our recent Annual Conference offered a session, When Disaster Strikes: Emergency Management and Safety Planning (if you missed it, the session handouts are available via the conference app), the upcoming PRIMA Institute will offer opportunities to discuss with colleagues and instructors new developments of insurance and disaster recovery and those important issues addressing disaster management. The PRIMA Cybrary has been updated to include new information addressing concerns and developments of establishing frameworks for risk management that can be applied to the disaster evaluation processes. PRIMA Webinars and podcasts are also tools that can be utilized to research information on developing and benchmarking disaster recovery frameworks. Additionally, PRIMA’s Risk Manager’s Tool Kit is another valuable resource.

As risk managers, these types of risks are inherent in our profession. But how do we prepare for such devastating events?

If you would like more information on PRIMA’s resources, contact Jessica Konrath (jkonrath@primacentral.org), PRIMA’s director of education and training, Marshall Davies (mdavies@primacentral.org), the executive director of PRIMA; or anyone of on our Board of Directors. You can also reach out to me, Betty Coulter, at Bcoulte1@uncc.edu. Sincerely,

Betty P. Coulter 2013–2014 PRIMA President Director of Risk Management and Insurance UNC Charlotte

AUGUST 2013 | PUBLIC RISK

News Briefs

NEWS

BRIEFS PAID SICK TIME LAW PASSES IN NYC, VETO OVERRIDDEN New York City is becoming the most populous place in the United States to make businesses provide workers with paid sick time, after lawmakers overrode a mayoral veto to pass a law expected to affect more than 1 million workers, reports the Associated Press. With the vote, the city joined Portland, Ore.; San Francisco; Seattle; Washington, D.C.; and the state of Connecticut in requiring the benefit for at least some workers. Similar measures have failed in some other places, including Milwaukee, Denver and Philadelphia. Supporters see the New York measure as a pace-setter, although it has some significant limits and conditions, and they envision such laws becoming a national norm in coming years. ‘‘The catalyst will have been the successful struggle we waged here in New York City,’’ said Dan Cantor, the national executive director of the Working Families Party, which is among groups pushing the cause in Maryland, Oregon, Vermont and Washington state, among others. Advocates say workers shouldn’t have to choose between their physical and financial health. And customers and colleagues shouldn’t have to be exposed to employees who come to work sick, supporters add. Camilo Montes is diabetic and has felt ill at times during his six years working at a Queens car wash, but he has stuck it out instead of going home because he doesn’t get paid sick days, he said. Because he’s supporting himself and his mother in Veracruz, Mexico, ‘‘I can’t afford to lose a day’s salary,’’ Montes, 46, said through a Spanish interpreter after paid sick leave supporters rallied outside City Hall. But critics say that the government should leave sick day arrangements to workers and bosses and that the requirement will burden small businesses. ‘‘Faced with this increase in costs, employers will seek to offset them in any number of ways, including reducing other benefits employees receive,’’ entrepreneur-turnedpolitician Mayor Michael Bloomberg wrote in vetoing the measure earlier this month. ‘‘... It will harm the very people it seeks to help.’’

FEDS OFFER FUNDING FOR STATES' DUAL-ELIGIBLE COORDINATION PROJECTS The federal Centers for Medicare and Medicaid Services (CMS) announced that they would offer up to $12 million in funding for states to develop ombudsmen programs for their efforts to better coordinate care between Medicare and Medicaid, reports Governing.com. The demonstration projects were created by the Affordable Care Act (ACA), and six states have been approved for them so far and 20 others have applied. The projects aim to improve the experience of the roughly 9 million elderly and disabled Americans who qualify for both programs, known as dual-eligibles. As Governing has reported, because the programs pay differently and cover different services, care is often fragmented. The earliest states are formally launching their demonstrations in summer 2013. The $12 million, which will be spread over three years, will help states create oversight entities to monitor the demonstrations' progress and handle any issues that patients have. A patient's care will be overseen by one health plan for most of the demonstrations, so the ombudsmen will serve as an independent overseer and adviser. If patients have problems with their new care, they will be able to go to the ombudsmen to voice them. States have also committed to meeting cost-savings goals under their agreements with CMS—usually 1 percent in the first year and 4 percent by the third—and the ombudsmen will make recommendations about how to meet those goals. Dual-eligibles account for 15 percent of the Medicaid population but 40 percent of its spending, so cost-savings are a significant element of the demonstrations.

The huge financial information firm he founded, Bloomberg LP, does offer paid sick time, he has noted. But small companies can’t afford it, he says.

PUBLIC RISK | AUGUST 2013

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ILL. GOV. QUINN SIGNS INTO LAW TOUGH FRACKING REGULATIONS Illinois Gov. Pat Quinn signed into law the nation's strictest regulations for high-volume oil and gas drilling. "This new law will unlock the potential for thousands of jobs in Southern Illinois and ensure that our environment is protected," Quinn said in a news release announcing his widely expected signature on the bill that he pushed for and that the Legislature passed overwhelmingly a few weeks ago. The new law establishes rules that oil and gas companies must follow during hydraulic fracturing, or fracking, which uses high-pressure mixtures of water, sand or gravel and chemicals to crack underground rock formations and release oil and natural gas. Companies will be required to disclose chemicals and to test water before and after drilling as well as hold the companies liable for contamination. Opponents of the legislation—who unsuccessfully pushed a two-year moratorium to allow more time to study the environmental and health impact of fracking—said they are considering a legal challenge to the law. "We have already put together a legal team with attorneys from all over the country to look at various aspects of the bill," said Annette McMichael, a property owner in Johnson County who belongs to a coalition that opposes fracking. "We are looking at what legal avenue to pursue." One of the sponsors of the bill, Sen. Michael Frerichs, D-Champaign, said the fact that fracking is already happening in Illinois makes the law that much more important as the state moves to "protect the environment while allowing for job creation." Environmental groups that helped craft the legislation said they were hopeful the safeguards will address their continued concerns about the method's "environmental impact." "The environmental community looks forward to working with the governor and agencies to make sure that this bill is strongly enforced," Jan Walling, executive director of the Illinois Environmental Council, said in statement released by Quinn's office. According to Quinn's office, the law would make Illinois the first state in the nation to require hydraulic fracturing operators to submit chemical disclosures to the state both before and after fracking, as well as require the companies to conduct water testing before the fracking process and then again a number of times after it's completed.

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AUGUST 2013 | PUBLIC RISK

TONY HARRIS

is PRIMA’s 2013 Public Risk Manager of the Year By Jennifer Ackerman, CAE

PUBLIC RISK | AUGUST 2013

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ike many public entities, Cabarrus County, N.C., handed over its insurance administration to its finance department. A safety officer oversaw workers’ compensation and other safety issues. But as the county grew, this cobbled

together risk management department just didn’t work anymore. With the departure of its safety officer, county officials saw an opportunity to bring in someone with the expertise to oversee all of the county’s risk management issues.

In 2006, Cabarrus County hired Tony L. Harris as its first risk manager. Since then, Harris has not only established well-regarded safety programs but he has saved the county countless thousands of dollars.

oversees 20 departments, including risk management. The county offers the typical municipal services, such as parks and active living, social services, transportation, a public library system and public safety.

“Tony created the risk management position we have now and made it into what it is today,” said Johanna Ray, health and wellness manager for Cabarrus County.

“Risk management has the challenge of assuring that claims, incidents or lawsuits are mitigated properly and that any hazards or exposures are minimized,” said Harris. “It is also a challenge to understand the dynamic makeup of the county, which may cause the county to be more susceptible to claims or lawsuits.”

“A risk management department did not exist prior to my arrival,” said Harris. “It was divided among other departments. I have had the privilege of developing the department. I have the advantage of having the support of senior county staff. I am located in the county manager’s office, which gives me instant access to the ear of senior management.” “If there are issues or concerns about risk management, I am able to address them immediately,” he continued. In June, the Public Risk Management Association named Harris its 2013 Public Risk Manager of the Year. The award is the highest honor the association bestows on a member. It was created to honor risk managers who go above and beyond and who have found solutions to difficult problems.

SOLVING PROBLEMS WITH PROGRAMS An area that has truly been beneficial to the county is the implementation of a consistent post-hire motor vehicle review program. “In collaboration with human resources, I worked to establish a program that would offer the county savings as well as keep an active review of county drivers,” said Harris.

JUST OUTSIDE OF CHARLOTTE

While all employee driving records are reviewed post-hire, Harris wanted to establish a way to monitor their driving records after they began working for the county. His program utilized the state motor vehicle system that would provide the county with access to the motor vehicle records of county employees at no charge. Even if an employee receives a ticket and fails to notify the county of a violation or conviction, the system sends a notice to the county if there is a conviction.

Located northeast of Charlotte, N.C., Cabarrus County has a population of just over 180,000. It has a five-member Board of Commissioners, which is elected at-large. The Board of Commissioners hires a county manager, who

Access to the state motor vehicle system saves the county more than $9,000 each year in fees previously paid for the continuous monitoring of driving records.

Harris received his award during PRIMA’s 2013 Annual Conference in Tampa, Fla.

AUGUST 2013 | PUBLIC RISK

Tony Harris is PRIMA’s 2013 Public Risk Manager of the Year

“He goes the extra mile to make sure that he learns what the laws are and keeps up with any updates,” said Juanita Allen, senior attorney. “Then he shares that information with all of the employees so we, as a county, can be successful.”

Harris also received his defensive driver instructor certification in order to provide defensive driving training to county staff. On average, the cost of the class was $25 per employee to attend the four-hour training. “Over the past two years, I have trained more than 125 employees, which has saved the county approximately $3,100,” said Harris. “The class has been very beneficial. Employee awareness of driving defensively both on the job and off is priceless.” Another area where Harris has stepped in to save the county time and money is insurance purchasing. Under Harris, Cabarrus County has partnered with another nearby county to create an Alliance, which is somewhat similar to a pool. The alliance allows both counties to purchase insurance at an estimated 7.5 percent rate reduction for property and more than a 10 percent reduction for excess liability. “He’s not sheltered in just workers’ compensation or the insurance and safety training area,” said Pamela Dubois, deputy county manager. “He carries those things into our health insurance programs and our employee clinic. He looks for ways we can interrelate assets that the county has to help us save money in different areas, like insurance.” The county purchases an excess workers’ compensation policy for all employees except Title V employees, who are covered through the primary policy. The county has a $75,000 excess workers’ comp premium with a $500,000 retention. The manual premium for workers’ comp would cost the county approximately $1.2 million per year, according to the county’s current remuneration. Based on the amount of WC claims it incurred

PUBLIC RISK | AUGUST 2013

between 2011 and 2012, the county experienced a savings of over $900,000.

A COLLABORATIVE APPROACH One thing Harris’ coworkers say over and over is how much he works with other county departments to develop communication channels that are both efficient and effective. “Risk management collaborates with department heads, supervisors and front-line employees,” said Harris. “As the risk manager, I have developed a channel where employees can contact me to discuss current and future projects. It has helped me to discover projects and initiatives that are ongoing that I may not have been aware of over the years.” Harris also reviews incident reports submitted to risk management in order to gain a greater understanding of incidents that are occurring frequently. By reviewing occupational safety and health administration logs in-house, he can also have a better understanding of the types of loss and number of loss days. “He goes the extra mile to make sure that he learns what the laws are and keeps up with any updates,” said Juanita Allen, senior attorney. “Then he shares that information with all of the employees so we, as a county, can be successful.” Harris has also developed an excellent working relationship with the county’s human resources department. “I believe that this effort has helped eliminate gaps or major exposures related to equal employment opportunity, FMLA and ADA rights,” said Harris.

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Tony Harris is PRIMA’s 2013 Public Risk Manager of the Year

A MENTOR TO OTHERS Harris contributes not just to his workplace, but also his community. He has participated in several career day events with the Cabarrus County Boys & Girls Club. “I provided camp participants with insight into the safety and risk management field,” Harris said. “I have also had the honor of being invited to speak to risk management students at Appalachian State University.” Harris currently sits on the Brantley Risk and Insurance Board of Advisors at Appalachian State. He also earned his bachelor’s degree in risk and insurance from Appalachian State, as well as a Master of Science degree in safety, security

and emergency management with a concentration in occupational safety from Eastern Kentucky University. Dubois sums up Harris’ contributions to Cabarrus County with this: “Tony has been invaluable in utilizing his expertise in insurance and safety to expand the risk and safety management program for the county. All of the changes that have been made over the last 6.5 years have made an impact on the county through cost reductions and a safe-minded working environment.” PRIMA congratulates Tony Harris on his career of risk management excellence!

“Tony has been invaluable in utilizing his expertise in insurance and safety to expand the risk and safety management program for the county…"

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LANDFILL RISK MANAGEMENT HOW TO AVOID GETTING DOWN IN THE DUMPS! By Joe Jarret

PUBLIC RISK | AUGUST 2013

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They are known as garbage dumps, ash heaps, refuse piles and waste sites. They are often maligned and misunderstood, despite having the unique ability to pose significant risks to public health, safety or property. They are landfills and if ill managed, have the potential to expose your entity to myriad risks and liabilities. As any professional public manager will testify, the days of public entities arbitrarily digging holes and burying solid waste have, by and large, come to an end. This comes as some relief when one considers the fact that in 2012 alone, Americans generated about 250 million1 tons of trash. Today’s landfill, most commonly defined as property set aside for the purpose of safe disposal of solid waste, either municipal (e.g. household trash), industrial (construction debris) or hazardous waste (toxic chemicals, etc.), is a sophisticated operation. Also known as waste management facilities, the stuff of modern landﬁlls include engineered protective liners, leachate (liquids that move through or drain from a landfill) collection systems, groundwater monitoring systems, methane gas collection equipment and extensive and detailed environmental reporting requirements. In fact, according to the United States Environmental Protection Agency (EPA), modern landfills are presumed to be “well-engineered facilities that are located,2 designed, operated and monitored to ensure compliance with federal regulations.” LAWS & REGULATIONS Since the environmental and health effects of landfills and hazardous waste sites can be extensive, the regulation of such sites is of great concern to the EPA and other government agencies. In other words, such facilities are on their proverbial radar! There are many restrictions and regulations regarding such sites, some simple, others hyper-technical and all designed with the health, welfare and safety of the general public in mind. Some of these regulations include: • Monitoring groundwater and soil to ensure that chemical levels are within acceptable ranges. • Use of liners (usually plastic sheets and layered clay) to prevent leakage of hazardous materials. • Location restrictions to ensure that no potential leakage hazard could come from nearby geological attributes such as faults and wetlands. • Safe operating practices regarding the control of waste exposure, etc. • Closure regulations concerning the safe maintenance and monitoring of closed landfills and hazardous waste sites. • Corrective action for any potential leakages from waste sites.3 In conjunction with rules promulgated by federal and state regulatory agencies, the United States Code of Federal Regulations mandates that landfills adhere to a virtual panoply of standards, among them: • Operating practices—include compacting and covering waste frequently with several inches of soil to help reduce odor; control litter, insects and rodents; and protect public health. • Groundwater monitoring requirements—requires testing groundwater wells to determine whether waste materials have escaped from the landfill.

• Location restrictions—ensure that landfills are built in suitable geological areas away from faults, wetlands, flood plains or other restricted areas. • Corrective action provisions—control and clean up landfill releases and achieve groundwater protection standards. • Composite liners requirements—include a flexible membrane (geomembrane) overlaying two feet of compacted clay soil lining the bottom and sides of the landfill to protect groundwater and the underlying soil from leachate releases.4

THE ROLE OF THE PUBLIC RISK MANAGER Because even the best-designed sites can expose their operators and owners to significant government fines and legal backlash, the risk manager must remain an integral player in landfill safety and loss control. One of the primary tools in the risk manager’s tool kit is risk assessment. Risk assessment has been widely used as a tool for the development of waste management facilities. At the strategic level, risk assessment is used to inform decision makers about the landfill planning process. In terms of a specific site, environmental risk assessment is used to identify risk management options. As an engineering tool, risk assessment is used to optimize the mitigation measures required to prevent, control or minimize the risks to the5 environment from the site. Because the time-honored tools of risk avoidance and risk transfer often do not apply to landfills, such operations bear considerable vigilance on the part of operators and risk managers. This is especially true for those entities that are self-insured or have difficulty purchasing umbrellas or excess insurance policies. As a result of the duty to insure landfills are operating within the bounds of the law while 6 remaining environmentally sound, Barbara Deas, author

AUGUST 2013 | PUBLIC RISK

Landfill Risk Management: How to Avoid Getting Down in the Dumps!

END NOTES: 1. The United States Environmental Protection Agency, www.epa.gov 2. Id. 3. Id. 4. 40 Code of Federal Regulation, Part 25PART 258—Criteria For Municipal Solid Waste Landfills. 5. Risk assessment as an engineering tool in landfills, A. Mavropoulos, D. Kaliampakos, National Technical University of Athens, Greece. 6. “Money Pits: Big risks lurk in municipal landfills” Waste 360 by Barbara Deas, president, ACE Westchester Environmental, for ACE Westchester, Atlanta, Ga. 7. De Young, R. “Motivating People to Recycle: The Use of Incentives,” Resource Recycling (May-June).

of Waste360, recommends that owners and operators ask themselves four key questions:  Does your landfill operate with a focus on compliance? The goal of all compliance programs is to pass a state, federal or local audit at any time.  Does your landfill’s quality control program include screening for hazardous wastes if the facility is not permitted to handle them? Screening includes evaluation of manifest information prior to delivery to the site, use of electromagnetic and other screening tools at the weigh scales and establishing procedures in the event hazardous material makes its way into a waste cell.  Does your landfill require certificates of insurance? Customers making deliveries should provide certificates of insurance in the event that they create a liability exposure while on the site or in cases where potentially responsible parties (PRP) must be established. By requiring current certificates and mapping loads into specific cells, operators and owners can pass or at least share liability for a specific problem with the customers who caused it.  Do you maintain good public relations with the community and participate in community events that will establish your reputation as a “good neighbor”? Good community relations can dramatically reduce complaints, which in turn reduces the risk of exposure. Regarding the fourth of Deas’ suggestions, because landfills often evoke the ire of citizens who in turn share their frustrations with elected and appointed officials, an effective public education program is a must. Ineffective or half-hearted education programs may confuse the public, reduce public confidence or elicit hostility toward the program and its administrators. Public education stimulates interest in how waste management decisions are made.

And, when citizens become interested in their community's waste management programs, they frequently demand to be involved in the decision-making process. Communities should anticipate such interest and develop procedures for involving the public, as well as insuring strict compliance with open records and meetings laws when applicable. When the public is involved in program design, it helps ensure that the stigmas often associated with landfills are reduced. Further, such public education affords the risk manager the opportunity to showcase some of the best management practices designed to insure the landfill is a safe, low-risk7 endeavor.

SAFETY FIRST! Despite the fact that landfills, at times, don’t have the best of reputations, there exists a significant number of citizens who view landfills with a certain fascination, thus rendering them (the landfills, not the people) attractive nuisances. In some regions, landfills are the perfect spot to observe the various bird species that often frequent such sites or are just fun places to scavenge. Needless to say, public access must be closely supervised. There are times when public access is necessary to allay the fears of elected officials or members of the general citizenry. Further, landfills have become popular educational tools. Some entities have taken to provide behind-the-scenes tours of landfills to interested officials, citizens and/or student groups. Participants have the opportunity to learn how a landfill is operated so that it meets federal, state, local regulations as well as observe the different ways a landfill operation reuses and recycles on-site to benefit our environment. Nevertheless, such sites pose significant hazards, some latent, some patent. Merely because some courts have ruled that a landfill operator may assert the common law defense that a hazardous condition was “open and obvious,” and that the owner therefore had no legal duty to protect an invitee against it, does not mean that a landfill should be a place where people can wander about at will. Because it is often not practical to declare that landfills are per se “off limits,” the risk manager should consider, where practical, requiring visitors to sign hold-harmless agreements and attend a safety briefing, while insuring strict accountability for all who venture there. Today’s landfill is a highly regulated enterprise that is not without its risks. By staying involved in the operation and regulation of this necessary function, the risk manager can go a long way in protecting her or his entity from liability, thereby keeping the frequency and severity of claims to a minimum. Joe Jarret is an attorney, mediator and former public risk manager who lectures on behalf of the Department of Political Science, University of Tennessee, Knoxville. He is a past-president of the Southwest Florida Chapter of PRIMA.

PUBLIC RISK | AUGUST 2013

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Elected and Now You’re

STUCK WITH ‘EM By Dennis Molenaar

Every four years, public entities across the nation participate in the election process and as their citizens vote in new elected officials, public entity risk managers wait to see what the election results mean for them. Who will be the decision makers? What are their political and educational backgrounds? Are they aware of the full scope of responsibility that they are inheriting or the importance of the risk manager’s position within the entity? With each newly elected official comes the uncertainty of what changes will be implemented, as there is no requirement to continue any of the existing programs, procedures or departments. Additionally, risk managers must assess the risk that may stem from the elected official themselves. From sanitation workers to the mayor’s office and everywhere in between, local elected officials interact with the public in ways that expose government entities to a vast range of liability claims and potential lawsuits. And often it is a decision made directly by the elected official that generates a claim filed against the entity. Given this wide range of potential liability, how can an entity’s risk manager avoid loss? There are a number of steps a risk manager can take to help newly elected officials navigate their new position while also increasing awareness of the importance of a risk management role within government.

CREATE POLICIES AND PROCEDURES FOR ELECTED OFFICIALS There are no qualifications to hold public office. Elected officials can range from local business owners and employees wanting to give back to their communities, to retirees or those hoping to further a special interest project. Most local elected officials have varying work, education and political backgrounds, as well as different (and sometimes contrary) ideas of how the government should run and what the important issues are to address. Some may be ill-equipped or unqualified to manage complex, multi-million dollar enterprises such as a local government, but are now in a position where they must do exactly that.

AUGUST 2013 | PUBLIC RISK

Elected and Now You’re Stuck With ‘Em

To help guide newly elected officials, risk managers should ensure clear policies and procedures are in place… Creating guidelines of acceptable behavior for these issues can help newly elected officials understand what is allowed and how to avoid trouble.

To help guide newly elected officials, risk managers should ensure clear policies and procedures are in place. Such procedures exist for all other governmental departments, so it only makes sense that a basic set of policies and procedures should exist for elected officials. These should cover common problem areas like email communications, open meeting statutes and public records violations. Creating guidelines of acceptable behavior for these issues can help newly elected officials understand what is allowed and how to avoid trouble.

IMPLEMENT A TRAINING PROGRAM No matter the varying backgrounds, experiences or views of elected officials, one thing is constant across all: once elected, they become the chief risk managers for their communities. When something goes wrong, they are held accountable, taking the heat for an entity’s mistake or misstep. Therefore, it can be very helpful for risk managers to partner with local legal counsel to come up with a training program for newly elected officials. This program should endeavor to train all elected officials on the basics of risk management for the entity, highlighting the current programs in place, safety training and loss history/ claims. Bring all elected officials up-to-date on what is happening in your community and give them the basic tools to help them help you. Any effort to reduce

PUBLIC RISK | AUGUST 2013

claims before they occur will reflect positively on the official and you. Training should be conducted for all newly elected officials—from mayors to city and county commissioners and sheriffs. Start everyone on the same page and provide a refresher training once a year.

DOCUMENT EVERYTHING One key “lesson” to include in any training program centers around documentation. Failure to document actions is a primary exposure for public official’s liability. Too often, decisions are made in government but go undocumented— opening the entity and individual up to a potential claim. For example, when voting on a planning and zoning permit, the city or county commissioners should document the vote and why it was approved or denied. The same goes for budgetary issues and employee hiring and firing. Documenting actions and decisions is not always top-of mind or second nature for most people, so it is important to highlight it within training. Documentation is a critical habit elected officials must form to protect themselves and the entity.

DEVELOP A RELATIONSHIP Many risk managers feel newly elected officials are unapproachable because they were elected or because risk management is only one department (or even just one person) among many. Sometimes it can be a battle to catch the attention of an official, but it is an important battle to fight. Developing a relationship with these individuals can help a risk manager show officials that risk management is a necessary, cost-efficient governmental function. Encourage officials to engage with you in the risk management process. As mentioned before, they are essentially the

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CALENDAR OF EVENTS PRIMA’s calendar of events is current at time of publication. For the most up-to-date schedule, visit www.primacentral.org.

WEBINARS 2013 • September 18: Implementing ERM in the Public Sector: Obstacles and Opportunities • November 13: Amendments to Americans With Disabilities Act—Implications for Human Resource Management

chief risk managers for the entity, and it may be helpful to remind them of this fact. Take the time to educate them about the insurance buying process, safety programs and risk management techniques that may reduce losses. Engage them in risk management decisions. By giving the public official some ownership over risk management and safety process, and offering your advice and expertise, an entity can thrive on a culture of safety.

SCHEDULE REGULAR MEETINGS WITH POLICYMAKERS Once you’ve developed a working relationship with your elected officials and they understand the importance of risk management and the principles of their new position, it is important to schedule regular meetings with them to discuss recent claims, litigation and other legal issues your entity is, or could be, facing. Keeping everyone informed throughout the year will help keep officials engaged in decisions that may result in reducing claims and keeping your commissioner and entity out of the news. At the end of each year, think about implementing an annual review of activity—a culmination of your meetings throughout the year to restate the important decisions risk management made and how it positively affected the entity. In the end, when working with elected officials, a risk manager must be mindful to balance the goals and objectives of the public entity and the desires and wishes of the elected official; all the while acknowledging the legal responsibilities, obligations and liabilities generated by an elected official. It’s a delicate line that a risk manager must walk but can be done effectively by implementing policies and procedures to follow, training the elected officials on his or her new role and educating them on the importance risk management plays in the financial stability and safety of their community. Dennis Molenaar is the vice president of risk control for OneBeacon Government Risks.

PRIMA ANNUAL CONFERENCES June 8–11, 2014 PRIMA 2014 Annual Conference Long Beach, CA Long Beach Convention Center June 7–10, 2015 PRIMA 2015 Annual Conference Houston, TX George R. Brown Convention Center June 5–8, 2016 PRIMA 2016 Annual Conference Atlanta, GA Hyatt Regency Atlanta

OTHER MEETINGS November 4–8 PRIMA Institute 2013 Milwaukee, WI

UPCOMING CHAPTER MEETINGS Chapter meetings are listed on a space-available basis. For a complete list of PRIMA chapter meetings, visit www.primacentral.org. For information on a specific meeting, please contact the chapter directly. Arizona Sept. 11–13 Kansas Nov. 16 Tennessee Nov. 14–16 Texas Nov. 11–14 To have your chapter meeting listed on the PRIMA Web site, contact Bles Dones at bdones@primacentral.org.

AUGUST 2013 | PUBLIC RISK

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Has your entity launched a successful program? An innovative solution to a common problem? A money-saving idea that kept a program under-budget? Each month, Public Risk features articles from practitioners like you. Share your successes with your colleagues by writing for Public Risk magazine! For more information, or to submit an article, contact Jennifer Ackerman at jackerman@primacentral.org or 703.253.1267.

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Member Spotlight

PRINCE WILLIAM COUNTY PUBLIC SCHOOLS RELEASES TOP TEN VIOLATIONS PROJECT Each month, Public Risk features a member who has

rince William County (Va.) Public Schools Office of Risk Management and Security Services (RMSS) struggled with how to communicate the importance of maintaining a safe school.

gone above and beyond in a feature column titled “Member Spotlight.” Do you know someone who deserves recognition, has made a contribution or excelled in their profession? If so, we’d like to hear from you for this exciting column, as PRIMA shines the spotlight on its members. To be considered for the Member Spotlight column, contact Jennifer Ackerman at jackerman@primacentral.org or 703.253.1267.

Each year, every school in Prince William County is inspected by a safety specialist from RMSS. Beginning in 2008, the inspections began to show an alarming increase in safety violations. The safety specialists with RMSS determined that a major cause was a lack of communication regarding school safety within the school system. “We became intent on developing a systematic approach to educating the schools in understanding the process and importance of maintaining a safe school,” said Patti Pittman, director of risk management and security services for Prince William County Public Schools (PWCS). The result was a “Top Ten Violations” brochure, introduced in 2010. By reviewing the brochure prior to their inspections, school staff and teachers could recognize common violations in their school and correct them. Pittman says that the brochure resulted in a significant decrease in safety violations at PWCS.

In 2012, the RMSS safety team updated the “Top Ten Violations” brochure and created a video that mirrored the brochure. “The safety team was resolute that a video would create more of an audience and in turn, work toward improving the safety culture at PWCS,” said Pittman. Pittman says that the “Top Ten” video can be adapted to suit other schools districts because of its adherence to standards set forth by the International Fire Code, International Building Code and OSHA. “All educational systems could immediately benefit from this manual—from daycares to universities,” said Pittman. PWCS Top Ten Violations took home the honorable mention award for risk management product at PRIMA’s 2013 Annual Conference in Tampa, Fla. For more information, contact Patti Pittman at pittmanp@pwcs.edu.

The top ten violations that Pittman's staff identified in PWCS could be the violations from any school or entity. They included: · Improper clearance between ceiling sprinklers and storage. · Extension cords used as a substitute for permanent wiring. · Artwork and teaching materials on the walls of corridors that exceeded more than 20 percent of the wall area, which is a fire code violation. · A marked emergency evacuation plan not clearly visible in every room.

PUBLIC RISK | AUGUST 2013

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