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HomeMy WebLinkAbout5.1 Pleasanton Housing Authority Insurance 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. ---------------------------------------------------------------------------- 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