HomeMy WebLinkAboutItem 5.1 Pleasanton Housing Authority Insurance (2) r'
CITY OF DUBLIN go
AGENDA STATEMENT
CITY COUNCIL MEETING DATE: January 27, 19$6
SUBJECT Written Communication, Pleasanton Housing Authority
Insurance
EXHIBITS ATTACHED Letter from Pleasanton Housing Authority dated
December 9, 19$5 ; Letter from Michael Parsons ,
Executive Director of Pleasanton Housing Authority
dated January 3 , 1986; Draft letter from City to
Pleasanton Housing Authority
RECOMMENDATION Authorize Staff to send letter on behalf of the City
of Dublin to Pleasanton Housing Authority
FINANCIAL STATEMENT: The Pleasanton Housing Authority is requesting that
the City of Dublin contribute upwards of $35 ,000 to
the Pleasanton Housing Authority for insurance .
DESCRIPTION The City has received a letter from the Pleasanton
Housing Authority requesting the City of Dublin' s assistance in financing
the insurance. costs for the Pleasanton Housing Authority., The Pleasanton
Housing Authority has suggested that the City of Dublin contribute 75% of
the cost of insurance to the Pleasanton Housing Authority. This would
represent a cost in excess of $35 , 000 per year if the insurance costs were
$50, 000. We have received a preliminary indication that the annual costs
could be as high as $61 , 000 per year. If this was the case , the cost to the
City could exceed $45 , 000 per year.
Staff has discussed this issue with the City Attorney and has concluded that
the City ' s contribution of monies to the Pleasanton Housing Authbrity at
this time would be a gift of public funds . This conclusion is based upon
the fact that the City does not have any responsibility at this time for
Arroyo Vista public housing project and will not have responsibility until
the transfer is officially approved by the United States Department of
Housing and Urban Development .
It is Staff ' s recommendation that the Council authorize Staff to send a
letter to the Pleasanton Housing Authority (see attached ) , indicating that
the City would not be willing to pay 75% ' of the Housing Authority' s
insurance costs at this time . However, the City would be willing to pay a
pro-rated share in the future at such time as the U. S. Dept . of Housing &
Urban Development approved the transfer of Arroyo Vista. This pro-rated
share would be based upon that portion of the insurance premium that had not
been used at the time of the transfer from the Pleasanton Housing Authority
to the Dublin Housing Authority.
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COPIES TO : City of Pleasanton
ITEM NO. s
N
M
HOUSING December 9, 1985
N
co AUTHORITY
v of the City of
PLEASANTON
co
co
Mayor Peter Snyder
QysANpoy City of Dublin
11497 Silvergate Dr.
� = Dublin, CA 94568
o Re: Mutual Responsibility and Assistance for
Housing Authority Insurance Situation
o MICHAEL PARSONS
°C Executive Director
c Dear Mayor Snyder:
m
L
As in the case of many public agencies, the Pleasanton Housing
Authority is now caught up in the unavailability or extremely
high cost of insurance.
N
N
In past years, the Housing Authority' s total insurance package
a would be less than $10,000 per year. Now, even if we can obtain
coverage, it will wind up costing this small agency well over
$50,000 per year.
The Pleasanton Housing Authority Board of Directors , (i . e.
Pleasanton City Council ) at our December 3, 1985, meeting, con-
curred in exploring the following:
1 . Having the Pleasanton Housing Authority Board of
Directors Chairperson, Director Brandes , meet with
his counterpart from the City of Dublin.
2. At this meeting, they would discuss, resolve and
concur on the concept recently raised by the Pleasanton
Housing Authority Board of Directors of having both
the Cities of Dublin and Pleasanton assist the Housing
Authority through this severe insurance crisis.
3. The initial item to be discussed is the concept that
each city contribute financial assistance to the Housing
Authority, based upon the number of units found within
each municipality. That is to say for initial discussion
purposes, that the City of Pleasanton would provide 25%
Mayor Peter Snyder -2- December 9, 1985
(Kottinger Place - 50 units) and the City of Dublin would provide 759
(Arroyo Vista - 150 units) of the total funds needed to obtain the total
annual insurance package for the Pleasanton Housing Authority.
Please contact Director Brandes to arrange a meeting.
Sincerely yours,
Karin Mohr, Vice-Chairperson
Pleasanton Housing Authority
KM:MP:hfd
cc: Board of Directors
Board of Commissioners
Richard C. Ambrose, City Manager, Dublin
January 3, 1986
TO: PHA BOARD OF DIRECTORS AND COMMISSIONERS
FROM: MICHAEL PARSONS, EXECUTIVE DIRECTOR
r
RE: PHA INSURANCE AND PAYMENT SCHEDULE
ACTION: INFORMATIONAL
Background: The total prorated comprehensive general liability premium
is $19,529. 00 and the total prorated fire and extended coverage premium
is $10,970.00; both are in effect only through June. 30, 1986. Whether
or not these particular policies, as well as the others, are renewed at
that time will have to be decided then.
Cooper, McKenzie and Murphy are billing the City of Pleasanton for these
two policies and the Housing Authority will then reimburse the City.
The Housing Authority will pay off both bills by June 30, 1986; on a
schedule of making six equal monthly payments on both classes of insurance.
For these two categories alone, the annual cost will be $60,998.00; in
1984, we paid a. mere $3,872.00. I do not know how long this Agency can
sustain these excessive insurance rates. This insurance issue should be
examined again, reviewed and other decisions made in May or June of 1986.
The Pleasanton Housing Authority is a member of a consortium of California
Housing Authorities trying to establish an "insurance pool " to receive
more favorable insurance rates. Besides this, the Housing Authority will
work with any other available opportunity that may reduce our total insurance
costs. This may well include cancelling and a possible refund at a later
date, the insurance arrangement we've structured with the City of Pleasanton;
if we are able to find. a better insurance program. Time will tell !
Please contact me if you have any questions.
MP:hfd
cc: Mr. Jim Walker, Pleasanton City Manager
Mr. Ben Fernandez, Cooper, McKenzie and Murphy
CITY OF DUBLIN
P.O. Box 2340
Dublin, CA 94568 (415) 829-4600
January 28, 1986
Pleasanton Housing Authority
6700 Dougherty Road
Dublin, CA 94568
Subject : Pleasanton Housing Authority Insurance
Honorable Board Members :
The City of Dublin is in receipt of your letter of December 9,
1985 . In that letter, you requested 'that the City of Dublin
consider contributing 751 of the costs of insurance for the
Pleasanton Housing Authority this year.
Since the City of Dublin has no guarantee from the U. S.
Department of Housing & Urban Development that the transfer of
Arroyo Vista to the Dublin Housing Authority will occur, it is
the position of the City of Dublin at this time that it will not
contribute -to the Housing Authority' s insurance costs . The City
would be willing to pay a pro-rated share at such time that the
transfer of Arroyo Vista to the Dublin Housing Authority is
approved by the U. S . Department of Housing & Urban Development .
That pro-rated share would be based upon the formula presented in
your letter of December 9 , 1985 and the unused insurance premium
at the time of the transfer.
I would be more than happy to meet and discuss this issue with a
representative of your Board to clarify any questions that you
might have .
Sincerely,
Peter W. Snyder
PWS:kk Mayor