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Home My WebLink AboutVI(I) Discussion/ Action Re: Liability Issues-Ride-A-Long In Police Cruisers And Use Of City Bus For Non-City Sponsored Functions AGENDA 12-17-96 Item VI I "CENTER OF GOOD LIVING -PRIDE OF WEST ORANGE" ••CO "RGRI OCOeG S.SCOTT VANDERGRIFT 0� COMMISSIONERS 6,e, tii:, RUSTY JOHNSON �, � Q CITY OF OCOEESCOTTANDERSON v O 150 N.LAKESHORE DRIVE SCOTT A.GLASS l+� C� OCOEE,FLORIDA 34761-2258 JIM GLEASON yJF ,�� (407)656 2322 CITY MANAGER �f GpOp ELLIS SHAPIRO MEMORANDUM TO: The Honorable Mayor and Board of City Commissioners FROM: Ellis Shapiro, City Manager DATE: December 3,1996 RE: LIABILITY ISSUES -POLICE CRUISERS AND CITY BUS In October Commissioner Gleason and at least one other member of the City Commission questioned why the City of Ocoee did not allow ride along in the police cruisers or expanded the use of the City bus to other groups outside the purview of the City recreational function. Attached is a memorandum from Peggy Psaledakis, acting as our Risk Manager, • which suggests why the City has taken a conservative view on this matter and also suggests that the more liberal the policy of the City is regarding these issues, the more open we are to coverage problems. She also states that she stands ready to operate under the policies established by your Board either this evening or in the future. Respectful y S b• itted, ES:fdg r Attachment Ocoee _ • i, gyp , na1)., , 1• `?� of eooa , PEGGY PSALEDAKIS,DIRECTOR PERSONNEL/EMPLOYEE RELATIONS 150 N.LAKESHORE DRIVE•OCOEE,FLORIDA 34761 (407)656-2322•FAX(407)656-8504 MEMORANDUM TO: ELLIS SHAPIRO, CITY MANAGER FR: PEGGY PSALEDAKIS, RISK MANAGEMENT DA: NOVEMBER 21, 1996 SU: RIDE ALONGS - -POLICE CRUISERS At the commission meeting on November 5, 1996, you advised me that Commissioner Anderson asked why the West Orange Leadership Program participants could not ride in our Police Cruisers . Further, Commissioner Anderson stated that the Orange County Sheriff' s department and Winter Garden police department do allow the West Orange Leadership Program participants to ride along in cruisers . Commissioner Anderson further questioned if the reason we do not allow it is due to an insurance problem. On October 10, 1996, Commissioner Gleason inquired about the use of the City Recreation bus to transport the Chamber of Commerce Leadership Program members . During this same time frame, Jim Beech was asked by the Historical Society, Lions Club, Little League and other groups to use the City Recreation bus . HISTORY CLAIMS When I was hired in 1990, one of my main tasks was to bring the loss ratio down on auto liability claims and workers compensation claims . The claims were out of control.. The vehicle accidents in the police department were a constant problem. I believe in 1993 we were denied auto coverage through our carrier at the time which was Hartford because of the police department . We began to take a very strong approach through disciplinary procedures to try to bring those claims under control . We have been somewhat successful, however, we continueto have automobile accidents with the police vehicles and more often than not, we are at fault as far as the insurance companies are concerned. THE PRIDE OF WEST ORANGE PAGE TWO LIABILITY EXPOSURE The obvious exposure to liability when carrying passengers in cruisers is in the event of an emergency call, if a citizen ,were in the cruiser when a cruiser was travelling at a high rate of speed, we expose the citizen to a potential collision situation. We cannot simply drop the citizen off on a street corner. As to the bus situation, the obvious is the amount of passengers on the bus during a collision incident and/or seat falls, including bumps . SOLUTION We can do anything we want to and allow all ride alongs . We must be ever cognizant of the liability exposure . We can take the risk. WHY DO OTHER CITIES DO IT? I can understand the political issues and public relations issues which are important to us all . I am not interested in other cities . I don' t know what exposure they have and what claims experience they have. I don' t know what premiums they are paying based on exposure. I only know of our history and the claims we have had. RECOMMENDATIONS As the Risk Manager for the City, in good conscience, I must say that a conservative approach to controlling claims is the safest and least costly approach. I cannot in good conscience, say its okay, let them all ride ! I will follow those instructions given to me concerning this issue . . "CENTER OF GOOD LIVING - PRIDE OF WEST ORANGE" MAYOR• COMMISSIONER • �tC�t3 S. SCOTT VANDERGRIFT i r,c, • + COMMISSIONERS • CITY OF OCOEE RUSTY JOHNSON :.i j Q SCOTTANDERSON v O 150 N.LAKESHORE DRIVE SCOTT A.GLASS t� �V OCOEE,FLORIDA 34761-2258 III GLEASON J�\ �� (407)656-2322 CITY MANAGER '``�`�� Gasp \ ELLiSSHAPIRO MEMORANDUM TO: Jim Gleason, Commissioner FROM: Ellis Shapiro, City Manage " DATE: October 11, 1996 RE: USE OF CITY RECREATION BUS As a result of the request by the Chamber of Commerce regarding the use of our City bus for a leadership class of young people from the high school and our subsequent turn down of that use, you have requested information regarding this turn down from our insurance company. Attached hereto is a memo from Peggy Psaledakis, our insurance administrator, and from Poe & Brown, regarding this issue. Esw2:fdm:5 5 Attachments cc: S. Scott Vandersrift, Mayor City Commission Ocoee • • y�0: �• Nor `�os coon` PEGGY PSALEDAKIS,DIRECTOR • PERSONNEL/EMPLOYEE RELATIONS • 150 N.LAKESHORE DRIVE•OCOEE,FLORIDA 34761 (407)656-2322•FAX(407)656-8504 • • MEMORANDUM • • TO: ELLIS SHAPIRO, CITY MANAGER FR: PEGGY PSALEDAKIS, RISK MANAGEMENT 4.. • j . DA: OCTOBER 10; 1996 • 'SU: USE OF CITY RECREATION BUS :, TRANSPORTING 'CITIZENS IN .CITY VEHICLES • • The following is my understanding: • *Commissioner -Gleason i -i r i-i t the Comm�ssione_ G�..ason has l.cui_e.� about she use of City Recreation Bus to transport Chamber- of Commerce youth leadership program members ' (20) . 'I have also attached • information on lease agreements . • *The Recreation Director,- Jim Beech has Had inquires from the Historical Society, Lions -Club, Little League and other groups that would like to use the City Recreation Bus . *This morning Chief Mar{ 'mentioned that some members from the Chamber of Commerce for 'some program would like to ride in the City of Ocoee -Police vehicles . Also, the scouts and others . • I contacted Poe & Brown and received the attached response. Please advise if I should forward a copy of this memorandum and the Poe & Brown response to the Mayor, all Members of the Commission, the Recreation Director and Police chief .• - i 77-IE PRIDE OF WEST ORANGE BRCWN. INC 917 P01 OCT 1CC' Sb 29: 43 Poe & Brown INSURANCE Facsimile Cover To: Peggy Psaledakis Company: City of Ocoee Phone: 656-2322 Fax: 656-8504 From: Ken L. Enlow, CLU,M1 Company: Poe & Brown, Inc. Phone: 407-660-8282 Fax: 407-660-2012 Date: 10-10-96 No. of Pages: Comments: Peggy: Re: Use of City owned bus The rating for the bus owned by the City,of Ocoee has been promulgated based on the limited use of the bus for the City recreation department transporting children to recreational facilities within the area. Also, the current rating anticipates limited use by the recreation department to transport seniors on outings under the auspices of the recreation department. The current rating has been calculated with the understanding that the City has two designated drivers. These drivers have the proper COL endorsements to their drivers license and comply with the City of Ocoee personnel rules and driving policy as it relates to points and DUI charges. 2600 Lake Lucien Dr., Suite 100, Maitland, FL 32751-7234 ERCWN INC 917 F02 OCT 10' S6 S: • Allowing this vehicle to be used by outside groups significantly changes the exposure and this is not anticipated in the current rating. If the City is going to move ahead with allowing outside groups to use this vehicle, I need parameters for this use because this will dramatically increase the premium. In my personal opinion, I do not think that the City should assume the significantly larger liability exposure that would be created by allowing outside groups to use this vehicle. You also asked me if it would be acceptable to allow outside groups to use the bus with the designated City bus drivers as drivers. Again, in my opinion, the City is significantly increasing its exposure to lawsuit and I don't believe the City should do this. Even with the use of City drivers, the rates would increase. Part of my concern in allowing a particular group to use the City bus is that this will set a precedent for any group to make a request for this vehicle. If you say yes to one group, how will you be able to say no to another. Any time a city owned vehicle is used to transport other than city employees, the liability exposure for the city goes up. Not only is this true for the bus, it is also true for City Police and Fire vehicles. Allowing other than city employees to ride in these vehicles creates the potential for a large liability claim. 2500 Lake Lucien Dr., Suite 100, Maitland, FL 32751-7234 -•ti -oak.-«:.~_c r J� & BROWN INC 927 P01 CCT 10' S6 14: 41 Poe & Brown INsURA.NCE• Facsimile Cover Sheet To: Peggy Psaiedakis Company: City of Ocoee Phone: 656-2322 ext 124 Fax: 656-8504 From: .Ken L. Enlow, CLU,AAI Company: Poe & Brown, Inc_ Phone: 40 i-660-8282 Fax: 407-660-2012 Date: 10-10-96 No. of Pages: Comments: Peggy: Re: Use of City owned bus by outside entities If the City of Ocoee enters into a short term lease agreement with the outside entity and in that agreement requires the other party to name the City of Ocoee as an additional insured, the insurance of the other party would be primary. You should have the city attorney draw up.an agreement for you to use. This agreement should stipulate minimum acceptable limits of insurance ( I recommend a minimum of$1,000,000. combined single limit liability) The agreement should also stipulate a minimum acceptable AM Best ratingfor the insurance carrier of the other party (I recommend A- , VIII as a minimum accepatable rating) 2600 Lake Lucfen Dr., Suite 100, Maitland, FL 32751-7234 FC ri?OLaN avO 77 . P!,�. OCT 10 9E '4,1 Also, when such an agreement is entered into, you should require the other party to provide the city with a certificate of insurance verifying the coverage and verifying that the city has been named as an additional insured. This certificate should be in the possession of the city before the bus is allowed to be used. You also mentioned the possibility of obtaining waivers of liability from the other . party or from the persons riding in the bus. You ought toverify this with the city attorney, however, it is my opinion that such releases would be worthless. Let me know if you need anything further. Ken L Eniow, CLU, AA1 Senior Vice President 2600 Lake Lucien Or., Suite 100, Maitland, FL 32751-7234