807 G. Street, Suite 356 Anchorage, Alaska 99501

Calendar September 2011 - December 2011

Building on Tradition. Protecting Your Future.

Alaska Fire Conference Fairbanks, AK September 19-24, 2011

AASA Fall Meeting Anchorage, AK October 6-8, 2011

AAESP/AASSP Fall Principal Conference Anchorage, AK October 16-18, 2011

Alaska Day (state holiday) October 18, 2011

Daylight Savings Time ends November 6, 2011

AML Local Government Conference Fairbanks, AK November 7-11, 2011

NLC Congress of Cities Phoenix, AZ November 9-12, 2011

ALASBO Annual Conference Anchorage, AK December 4-7, 2011

Recently, AMLJIA members received a copy of their 2012 Participant Coverage Memorandum. This Participant Coverage Memorandum serves as your “policy” and is the agreement between members on what is and is not covered in terms of property, casualty and workers’ compensation as well as some supplemental coverages.

The policy is written in “manuscript form.” What this means is the policy is tailored to cover a specific risk or market, in this case public entities and school districts with common exposures, and is unique to your risk. In contrast, many commercial insurance companies use standardized policy forms developed by the Insurance Services Office (IS0).

It is to members’ advantage that we write our own policy. A manuscript form provides flexibility to achieve the broadest coverage available in the market for our public entity exposures.

As a pool, members group together to purchase coverage to pay for losses within the group. This first layer of coverage is referred to as the “self-insured retention” (SIR). These losses are paid for with funds from the pool. We then reinsure or purchase excess coverage for the higher limits. Although we write our own policy, to some degree our reinsurance partners dictate what coverage we are able to offer. Through negotiation, or by providing certain coverages within the pooled layer, we are

FALL 2011

Social Media Reward v. RiskAre you LinkedIn? Have you friended anyone today? Are you lost in MySpace, or is social media a sweet Tweet? Whether or not you have a local government presence online, you should have a social media policy to avoid potential pitfalls.

see Adopt Policy to Avoid Social Media Risk on page 4

A M L J I A 807 G Street, Suite 356 Anchorage, Alaska 99501 907.258.2625 217 2nd Street, Suite 200 Juneau, Alaska 99801 907.586.3222

IN THIS ISSUE

Your Participant Coverage Memorandum . . . . . . . 1

Reporting a Claim . . . . . 1

In Good Company . . . . . 2

Pool News . . . . . . . . . 2

Adopt Policy to Avoid Social Media Risk . . . . . 4

The Law At Work . . . . . 6

Random Drug Tests — 10 Years Later . . . . . . . 6

Police Policy Development is Key . . . . 7

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“Privacy is dead, and social

media hold the smoking gun.”

—Pete Cashmore, Mashable CEO

amljia.org

Your Participant Coverage Memorandum

continued on page 3

Timely Reporting is EssentialThe best defense of a potential claim is achieved through early reporting and investigation. This will provide you with assurance that you have coverage for the event even if the claim is not made until years later. Prompt reporting gives your AMLJIA claims personnel a chance to investigate and interview witnesses while the facts are all still fresh in people’s minds.

As a member you will also benefit by receiving an assessment of the potential liability as well as advice on such matters as further liability exposures, evaluations and corrective actions.

Sometimes members are afraid that reporting a potential claim will drive up their contribution. In fact, the opposite is true. Timely reporting can save money by allowing our claims team to proactively manage claims.

You can find claims forms on our website, www.amljia.org. If you have any questions about filing, please call 1-800-337-3682 for assistance.

C o n n e c t i n g Yo u r C o m m u n i t y

In Good CompanyKevin Smith, Executive Director Welcome!

The AMLJIA is pleased to welcome two new school members this fall. Twindly Bridge Charter School, operating within the Mat-Su School District, chose to join AMLJIA upon recomendation from another member school. Twindly Bridge is a K-12 home school program supporting both home and school- based learning. We welcome principal Gerald Finkler and his staff.

The Galena City School District, under the direction of superintendent Chris Reitan, is our second new member. Galena’s school operation is somewhat unique in that it includes a local elementary through high school program, a residential boarding school program, and a distance delivery program for homeschoolers. The City of Galena is a long standing member of the AMLJIA, so we are very pleased to provide coverage and services for the school district as well.

Whether you have been a member for two months or twenty years, we love to hear from you! If you have suggestions for ways we can expand or improve our program or questions about our services, call us at 1-800-337-3682. You are always welcome to drop by our offices in Anchorage and Juneau, too, so stop by anytime.

Payroll Audits

Each spring, AMLJIA members are asked to complete an Exposure Questionnaire to identify your exposures and coverage needs. In the questionnaire, we ask that you submit an estimated payroll with that questionnaire so we can calculate workers’ compensation and general liability

premium for the coming year.

As we all know, actual payroll can vary considerably from estimates made months earlier. A special project may come to an end earlier than expected, or grant funding may come through that allows you to hire several employees for a new project. A position may re-main vacant for a long period while you search for the ideal candidate to fill the position.

No matter the reason for variation in estimated payroll, we want to make sure that each member is treated fairly. No member should pay for coverage they don’t need, and no member should get a “free ride” by having other members paying for their coverage. Whether a member has five employees or five hundred, they should expect to pay their share for coverage.

In July, you should have received a Member Payroll Audit report for 2011 showing the payroll by job class that you reported last year. You were asked to review it, make any adjustments (remember to report overtime wages at the straight-time rate), and return it to us by August 31, 2011. Please return your payroll audit if you have not already done so. Any member who does not return a completed audit will receive an automatic upward adjustment to their account.

Thank you for your cooperation in completing the Member Payroll Audit. If you have any questions or need help completing the audit form, please contact your broker or call your AMLJIA Risk Control Specialist or underwriter Paul Bryner at 1-800-337-3682.

I hope you’ve enjoyed your summer!

2 A service of the Alaska Municipal League

POOL NEWS

www.akml.org

907-586-1325

877-636-1325

61st Annual AML Local Government

ConferenceNovember 7-11, 2011

Westmark Hotel & Convention Center

Fairbanks, Alaska

“Step Up!” with your energy, vision, and commitment to work for the greater good of our communities

and our state.

able to offer broader coverage than might otherwise be available.

When you receive your policy, it is always prudent to do a cursory check to make sure your coverage is in order. A quick review of the declarations page will verify the name of the insured, the coverage period, the types of coverage and limits purchased, as well as endorsements affecting coverage to your policy. For a more detailed look at the policy, we recommend a call to your broker or the AMLJIA.

Your policy coverage is an “occurrence policy.” An occurrence policy provides coverage for claims that happen during the policy period, regardless of when the claim was reported. A variety of circumstances including statutes of limitations may determine whether or not there is coverage for a claim based on the time that has passed. However, in some instances a claim that happened years in the past, but was never reported, may be covered if there was an occurrence policy in place when the event took place.

Your policy is a contract and should be included in your records retention schedule. Hopefully, you will never have to pull it out once the policy year has ended, but in those rare occasions, you will have it readily available if it is needed.

As pool members, you also have the opportunity to suggest changes to your coverage, and your feedback is sought and welcome. Each year, prior to renewal, the AMLJIA administration brings any changes to the board of trustees for review and approval. The Board has approved the following changes to the FY2012 Memorandum:

Section II – Casualty

We added Agreement F Volunteer Medical Payments coverage with a $25,000 limit.

Section II: Definitions – We removed the definition of a “Participant” as this is defined in each individual Agreement of Section II.

Section II: Exclusions - The breach of contract exclusion has been expanded.

We added an exclusion for claims arising out of taxes or the issuance of bonds.

Section VI – Policies and Procedures

We clarified the claims procedures in this section.

The summary of coverage changes is intended to help you understand the AMLJIA Participant Coverage Memorandum. It is not intended to replace, supersede or supplement the Participant Coverage Memorandum, the Association’s Bylaws or the Cooperative Participation Agreement. You should review the Participant Coverage Memorandum for a complete description of coverage. Or, simply contact your broker or the AMLJIA and we will be happy to help.

FALL 2011 A M L J I A

Honorable Mention“Last year we received some fire extinguishers [with our Safety Savings Account]. We had a fire over the weekend and used some of the extinguishers to prevent the fire from spreading. Thanks for all your assistance.”

Winchell Ticknor, City of Nikolai

At Your ServiceDo you need new fire extinguishers or first aid supplies? Do your employees need safety glasses or other personal protective equipment to protect them on the job? Maybe your emergency lighting system needs to be replaced, or you want to provide ice grippers to employees to prevent slipping accidents this winter. Your Safety Savings Account can help!

AMLJIA provides a Safety Savings Account for each member to purchase safety equipment and supplies. Each year, your account will be credited based on your annual contribution and length of membership, with a minimum credit of $250. Any funds remaining in your account at the end of the fiscal year will roll over to the new year, providing that membership with the AMLJIA is continued.

Using your Safety Savings Account is easy. You can find ordering instructions and forms online at www.amljia.org/risk-management/safety-savings-account.html, or call Sharon Tunnell at 800-337-3682.

UNDERWRITING/CLAIMS

3

continued from page 1

Safety SavingS account

Adopt Policy to Avoid Social Media RiskSocial media is a new world of opportunity for local governments to communicate with citizens and receive feedback. Its risks are similar in nature to those of other types of communication, but with a different twist because material circulates so widely and there are many potential contributors. One recommended tool for addressing these risks is to adopt a social media policy. But what should be in that policy? It is not an easy question to answer.

You can find many local government social media policies are posted online, but this is an area where one size definitely does not fit all. Social media policies do not stand in isolation. They usually incorporate related policies by reference, and policies that address other issues are often amended to include social media specific provisions. Thus, social media policies are often a web of interrelated policies. Each government must take an individual approach to ensure that all these diverse parts come together to meet its unique needs.

In case you don’t think a social media policy is necessary for your small local government, or if you just aren’t sure why it could be so important, consider the

following scenarios and what the impact would be if one of them happened to you.

A local government employee uses his or her personal social media to post something that reflects poorly on your entity.

An employee Tweets sexually suggestive photos. Or a firefighter posts on his or her social media site photos in uniform with comments on medical calls to which he or she has responded.

Both work and social media are integral parts of employees’ lives, but they often do not realize how much the boundaries blur. In the past, indiscretions had limited circulation. Now they can go viral. With that power comes potential harm to the employer if the employment relationship is identifiable.

• Employees have freedom of speech rights, but local government can require employee behavior be appropriate if it can be linked back to and reflect on the government.

• Have an employee code of conduct that prohibits inappropriate behavior by employees that could reflect on the local government, whether it occurs on duty or off-duty.

• Have a policy that identifies information considered to be private or confidential and not for release on social media sites, such as a fellow employee’s health or personnel status, medical care provided to an injured citizen or personal injury lawsuits against the city.

• Remind employees that posts on social media outlets can be traced by anyone,

anytime. There is no privacy in social media.

• Discuss and determine how policies on personal use of social media will be enforced. Decide how the local government will respond if it receives a complaint.

While off-duty, an employee criticizes his or her government employer on a personal or professional social media site.

An emergency manager networks with other emergency managers through a social media site. The emergency manager from a city devastated by flooding posts on that site while off-duty a comment that his employer did not make available adequate resources for the flood fight.

Employees often network with their peers through personal social media or professional social media. Professional networking is actually useful to the local government, because its employees can learn from others in similar positions. With that benefit, however, comes the possibility that the employee will occasionally say something unfavorable about the employer.

An employee who posts on personal or professional social media sites while off-duty about a matter of public concern is probably acting within first amendment rights, even if the posting is critical of the government employer. Even a critical off-duty posting that is not about a matter of public concern is likely not grounds for employment action against the employee unless the employee has violated some

RISk MANAGEMENT

C o n n e c t i n g Yo u r C o m m u n i t y

4 A service of the Alaska Municipal League

AMLJIA Annual MeetingPlease join us for breakfast and our annual business meeting during the 61st Annual Local Government Conference. Don’t miss this opportunity to check your pool’s progress and meet the AMLJIA staff and Board of Trustees.

Date: Thursday, November 10, 2011

Time: 7:00 AM Breakfast is served!

Place: Fairbanks Westmark Hotel & Convention Center

FALL 2011 A M L J I A

5

other policy, for example, disclosed private or confidential information or otherwise violated the employee code of conduct. Taking employment action against an employee based on off-duty personal or professional postings is a risk in itself.

• Have a policy that requires employees posting on sites where their employment by the government is apparent to disclose that their comment reflects their own personal opinion, and not that of their government employer.

• Train employees that the employee code of conduct applies to their off-duty social media activities just as it would to other off-duty activities.

• Get legal advice before taking employment action against an employee for personal or professional postings; your coverage for a wrongrul termination suit depends on this.

A local government employee uses personal social media to harass or defame.

A supervisory level employee uses personal social media to harass a subordinate for filing a workers’ compensation claim. Or an employee reads a citizen-activist blog and responds with overly zealous and potentially defamatory arguments in the comments section. The targets react by claiming harassment, retaliation and defamation.

An employee’s use of personal social media can reflect back on the local government if the employment relationship is apparent on the posting. Social media

also provides another venue for negative interactions between employees, and one that is not easily controlled by the employer.

• Employees have freedom of speech rights, but local governments can require employee behavior be appropriate if it can be linked back to and reflect on the government or if it directly affects another employee or someone linked to the harasser through the local government entity.

• Have a written policy regarding inappropriate behavior by employees that could reflect on the local government, whether it occurs on- or off-duty.

• Have a written policy that requires employees posting on sites where their employment by the government is apparent to disclose that their comment reflects their own personal opinion, and not that of their government employer.

• Remind employees that posts on social media outlets can be traced by anyone, anytime. There is no privacy in social media.

• Train supervisors to use caution in establishing social media friendships with subordinates, to follow the same rules in those relationships that they would follow in the office, and to avoid discussing job performance issues through social media

An employee who is not designated to officially post on behalf of the local government posts a comment that violates the government’s comment policy. The government removes the post. The employee claims that her

free speech rights have been voilated.

Many local government social media sites are open for comments by the public. Employees who are members of that community can post as citizens, but they are subject to the same comment rules as anyone else.

• Train all employees that they are subject to the requirements of the comment policy when posting on their own behalf.

• Include compliance with the comment policy as part of the government’s employee code of conduct and include specifics about possible employment ramifications for employee comment policy violations.

There are risks to undertaking any new activity, but social media is a powerful tool for local governments looking for new and cost-effective ways to engage their citizens. Just be sure to adopt social media with due consideration and planning. This means having clear objectives, knowing the target audience, selecting the right social media for the task, and taking the time to develop the right policy. Social media evolves quickly, so it is a good practice for the social media policy to remain platform neutral, and to review and revise it frequently to meet the changing environment.

Stay ahead of the changing social media landscape. Your AMLJIA Human Resources staff can help you craft a social media policy. Call Kate Young or April Jacobs today at 1-800-337-3682.

Meet Your New AMLJIA Board MemberA recent vacancy on the AMLJIA Board of Trustees has been filled with the appointment of Dave Jones, Assistant Superintendent for Kenai Peninsula Borough School District. Dave has served Alaska school districts on Kodiak Island and the Kenai Peninsula for 14 years and has been involved in school finance for more than two decades.

“The first nine years I had to purchase insurance on the open market as no pools were available,” explains Dave. “When I first moved to Kodiak and we were covered in the AMLJIA pool I realized what a savings, service and value entities gain by being part of such a pool.”

You can find contact information for all of your AMLJIA board members at www.amljia.org/about-us/board-of-trustees.html.

C o n n e c t i n g Yo u r C o m m u n i t y

6 A service of the Alaska Municipal League

Random Drug Tests - 10 Years LaterIn June 2001, the Alaska Supreme Court surprised many of us by ruling that public employers cannot give random drug tests to police and firefighters – or, by implication, to other non-CDL employees (employees required to have a Commercial Driver’s License, or CDL, are subject to federal standards, including random testing). Public employers, including the AMLJIA’s members, worried that an end to random tests could lead to an unsafe workforce and workplace.

How has that prohibition worked out? Not as badly as we might have expected. For a start, the court made it plain that public employers may still drug test (1) upon application for employment, (2) upon promotion, demotion or transfer, and (3) after a vehicular accident. So, when an employee or applicant is changing jobs or gives a reason to worry because of an accident, public employers can still drug test.

Where does this ruling leave supervisors? Just as they should do in all situations, public employers need to focus on and manage employee performance. What an employee does with his or her weekend is less significant than whether the job is getting done, and done soberly. Part of an employee’s performance is in showing up ready to work, and that means sober.

Of course, any drug testing has to follow the employer’s written policy and must be applied equally to all employees. Members of the AMLJIA may request assistance with drug testing and other human resources policies from Kate Young by e-mailing katey@amljia.org, or call toll-free 800-337-3682. Members may also call the Employment Law Hotline, 877-426-5542, for advice about drug testing and any other employment-related question. There is no fee for these member services.

The court’s decision, which is not lengthy, is Anchorage Police Department Employees Ass’n and International Ass’n of Fire Fighters, Local 1264 v. Municipality of Anchorage. Any member who would like a copy is welcome to e-mail hotline@amljia.org.

HUMAN RESOURCES

The Law At WorkQ. We’re recruiting a new finance director, and I’m checking the references the finalists have listed on their applications. If I know someone at one of the applicants’ former employers, is it okay for me to call the person I know? Or do I have to stick to the list of references?

A. By all means, contact anyone you know who might have firsthand knowledge about an applicant’s performance at another job. There is no legal reason to confine yourself to the listed references. Often, prospective employers get the most candid information if they go above and beyond the references. As a bonus, Alaska law protects good-faith responses to inquiries about job candidates, so former employers have every reason to be honest with you. Above all, congratulations on taking a thorough approach to checking references; you can save yourself and your employer so much time and hassle by spending that time up front.

The employment law hotline is a service AMLJIA offers to our members. Members can call Longenbaugh Law Firm, LLC for a free 30 minute consultation per area of concern. Call the Employment Law Hotline next time you are faced with layoffs, restructuring a department, a discipline problem, or whether or not to terminate an employee. Call the Employment Law Hotline at 1-877-426-5542 before you take action.

Resource for SchoolsA new, free resource, After a Suicide: A Toolkit for Schools is available to help schools cope in the aftermath of a suicide. The guide was created by the Suicide Prevention Resource Center (SPRC) and the American Foundation for Suicide Prevention (AFSP), two of the nation’s leading organizations devoted to suicide prevention.

Developed by a team of national experts, the online toolkit draws on scientific research and best practices. It includes common warning signs and causes of suicide and emphasizes that schools should inform students about the connection between suicide and underlying disorders such as depression, anxiety, and substance abuse. It recommends that administrators remind the community about available mental health resources, including hotline numbers and local counseling services.

To download the toolkit, visit www.afsp.org/schools or http://www.sprc.org/AfteraSuicideforSchools.asp.

Save the Date!

Mark your calendar for the Law Enforcement Management Institute on

February 6-10, 2012. There is no fee to AMLJIA members to attend this

40-hour Alaska Police Standards Council certified course, and travel

subsidies will be available. Watch for more information coming soon at

www.amljia.org or call 1-800-337-3682.

FALL 2011 A M L J I A

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LAW ENFORCEMENT

Police Policy Development is KeyPolicy development and review/revision is essential to a well managed police department. Any attorney and/or expert witness representing an agency in a lawsuit against the police will explain that in addition to the police report of an incident, among the first items they request are; 1) training records of all involved, 2) equipment inspection records, and 3) relevant department policies.

Police department policies must be current and based on defensible models. Equally important is a review system of existing department policies. All existing department policies should be reviewed and updated as necessary, at least every three years. The high liability policies should be reviewed at least once every two years - some agencies do this annually. Whenever a new policy is instituted or an existing policy is revised,

mandatory training on the new policy should occur before implementation.

The challenge of staying current with police policy is by far the most difficult task for smaller police departments. This is a detail-oriented task that requires a true commitment by the chief and his/her staff. A policy failure could compromise the safety of the officer(s) and result in a poor outcome for subsequent lawsuits, a bad image for the agency, and a reduced tenure for the chief.

A Policy Review Committee is a crucial step in the effort to stay current with department policies. Generally, the goal of issuing/revising one general order per month is desirable for a smaller police department. There are many excellent resources available to the department member responsible for developing department policy. Two excellent tools for policy development are IACP NET and the IACP National Policy Center. It would be wise, if possible, for department members with this area of responsibility to become familiar with and to use these management tools.

After the department initiates a policy review, suggests changes, or determines

that a new policy is required, it is essential to have a supervisor and/or command officer review the policy. It is important to have a thorough review from all segments of the department, but not to the extent of causing “analysis paralysis.“ Timely review, comment and approval are essential if the policy review process is to be successful.

An environment of accountability is created through identifying and training on liability, equipment inspection, and policy development/revision. Smaller Agencies who focus on these activities will experience the benefits of managing liability, which will be reflected in the department’s level of professionalism and service.

For help with your egency’s policies and procedures, contact AMLJIA’s law enforcement range rider, Greg Russell, at police@amljia.org.

Excerpted from “Liability Management in Smaller Police Departments,” by Director Paul Schultz, Colorado Peace Officer Standards and Training, Denver, CO; Chief of Police (Ret.); Big Ideas for Smaller Law Enforcement Agencies, Winter 2010.

kudos to the Iditarod Area School District! A recent visit and facility inspection at Top of the Kuskokwim school in Nikolai revealed a well-maintained facility with no notable safety hazards. Thanks is due to principal Denis Gardella and the maintenance staff — Steve Graham, Nick Alexia, Sr., John Runkle and Barb Deardorff.

Your AMLJIA Risk Control Specialist can schedule a facility inspection to help you identify potential hazards and prevent losses. Call 1-800-337-3682 today to schedule a visit.