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Published by the Public Risk Management Association

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April 2011

MMSEA Section 111 Reporting Is Not the Only Medicare Game in Town

Going Beyond Section 111: Why Medicare Conditional Payments Should Be on the Claims Radar

What Is Your Leadership Legacy? Technology Improves Public Transportation Fleet Management

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Risk. Reinsurance. Human Resources.

Volume 27, No. 4 | April 2011 | www.primacentral.org

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

Interim Executive Director Marshall Davies, Ph.D.

Contents

President Laura Peterson, JD, MPA Director of Risk and Insurance University of Wyoming Laramie, WY Past President Ron Hayes Risk Manager Calcasieu Parish School Board Lake Charles, LA

6 MMSEA Section 111 Reporting Is Not the Only Medicare Game in Town Going Beyond Section 111: Why Medicare Conditional Payments Should Be on the Claims Radar

President-Elect Cindy B. Mallett, AIC, CWCP, ARM-P Risk Manager City of Gainesville Gainesville, GA Directors Betty Coulter Risk Management Director City of Asheville Asheville, NC Matt Hansen, MPA Director, Risk Management Division City & County of San Francisco San Francisco, CA Dan Hurley, CSP, ARM-P, MS Senior Director, Risk Management & Safety Norfolk Public Schools Norfolk, VA

By Mark Popolizio, J.D.

12 What Is Your Leadership Legacy?

Dave Parker, ARM-P Risk Manager Pima County Sheriff’s Department Tucson, AZ Marilyn Rivers, CPCU, ARM, AIC Director of Risk and Safety City of Saratoga Springs Saratoga Springs, NY

By Jann E. Freed, Ph.D.

16 Technology Improves Public Transportation Fleet Management By Rodell Notbohm

Linda Spacek Interim Director, Human Resources City of San Marcos San Marcos, TX Editor Jennifer Ackerman, CAE Senior Manager, Communications 703.253.1267 • jackerman@primacentral.org Advertising Donna Stigler 888.814.0022 • donna@ahi-services.com

Public Risk (ISSN 0891-7183) is published 10 times per year by the Public Risk Management Association, 500 Montgomery Street, #750, Alexandria, VA 22314 tel: 703.528.7701 • fax: 703.739.0200 email: info@primacentral.org • Web site: www.primacentral.org

16 In Every Issue 4 News Briefs | 19 Advertiser Index | 20 Member Spotlight

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. Periodical postage paid at Alexandria, VA, and additional mailing offices. POSTMASTER: Send address changes to PRIMA, 500 Montgomery Street, #750, Alexandria, VA 22314. Copyright 2011 Public Risk Management Association Reprints: Contact the Reprint Outsource at 717.394.7350.

April 2011 | Public Risk

Message from PRIMA President Laura Peterson

What’s Your Legacy?

ften when we think about legacy, we think of public figures. Sometimes the legacy is unintentional and unwanted, like Nixon’s. Other times the legacy is good and lasting like that of President Abraham Lincoln, who’s legacy might be summed up best by his own statement that government’s “leading object is, to elevate the condition of men…to afford all, an unfettered start, and a fair chance, in the race of life.” Either way, public figures create a visible legacy because of the nature of their positions and the outcomes of their bold actions. Recently I was asked to comment, on behalf of PRIMA, on a high-profile public event. That request, along with the article in this issue of Public Risk about the legacy of leadership, started me asking the question, “What is the legacy of a risk manager or a risk management program?” If risk managers do their jobs well, the majority of our entities’ activities go smoothly. When something goes wrong, it is handled efficiently and with as little fanfare as possible. All of this occurs without most people ever realizing the planning, the training or the effort of risk management to ensure their event was a success or the clean up from an incident was handled swiftly, without delay or drama. If the risk management program’s legacy is essentially a strong but silent one, then the legacy for PRIMA is the same. PRIMA’s role is to work tirelessly wherever we are needed to ensure that risk management continues to have an important place in public entities and that you have the tools you need to do your job. I would like to spend pages telling you all the things PRIMA has been doing to further

this silent legacy but I have limited space so I want to highlight a few recent activities. PRIMA is reaching out to federal regulatory agencies to ensure that as new regulations are considered, the concerns and opinions of public entities, and our differences from the private sector, are understood. With the assistance of generous corporate sponsorship, PRIMA’s Webinar series is available free to members, a benefit providing timely education even during difficult budget times. The PRIMA Board also recently authorized investment in changes and updates to PRIMA’s operational resources to ensure we have the people, equipment and tools needed to serve all PRIMA members in all locations and with all the demands of new technologies. These are just a few of the exciting things happening behind the scenes at PRIMA to help you build a risk management legacy in your own organization for years to come. I hope you will take time to learn about and take advantage of all the resources your membership in this wonderful organization provides. Sincerely,

If the risk management program’s legacy is essentially a strong but silent one, then the legacy for PRIMA is the same. PRIMA’s role is to work tirelessly wherever we are needed to ensure that risk management continues to have an important place in public entities and that you have the

Laura Peterson, JD, MPA 2010–2011 PRIMA President Director of Risk and Insurance University of Wyoming

tools you need to do your job.

April 2011 | Public Risk

News Briefs

News

Briefs TSA Agent Arrested for Smuggling Drugs through Airport Security A Transportation Security Administration (TSA) agent and one other person have been arrested for allegedly smuggling drugs through the security checkpoints at the Buffalo Niagara International Airport, reports WBEN.com. Minnetta Walker, a 43-year-old Buffalo resident and nine-year employee of the TSA, is charged with “conspiring to defraud the United States by interfering with and obstructing the security measure, procedures and requirements of the TSA,” according to a criminal complaint. She is also accused of “aiding and abetting another individual in entering an aircraft and airport area in violation of federal security requirements.” The other person who was arrested is 30-year-old Amherst resident, Derek Frank. U.S. Attorney Bill Hochul tells reporters that Frank is the person whom Walker helped evade security. A separate complaint charges Frank with “continuing a criminal enterprise.” Frank is accused of violating what’s commonly referred to as the “Drug Kingpin Law.” “Mr. Frank would travel from Buffalo to Arizona, and once in Arizona, assist or directly ship packages of marijuana over the mail back to the Buffalo area, where they were then sold on the streets,” Hochul explains. According to Assistant U.S. Attorney Mary Catherine Baumgarten, the lead prosecutor on the case, Walker allegedly helped Frank evade security on at least six or seven different occasions. On each occasion, she did something different, Baumgarten says.

Tenn. Overtakes Mo. in Meth Lab Seizures, Busts Missouri is not leading the nation in methamphetamine lab busts and seizures for the first time since 2003, according to figures released in March. Tennessee had 2,082 meth lab incidents in 2010, said Tom Farmer, the state’s meth task force director. That tops Missouri’s total of 1,960. Most other states have not yet released 2010 figures, which could further shake up the rankings, reports the Associated Press. Farmer and Franklin County, Mo., officer Jason Grellner, former president of the Missouri Narcotics Officers Association, said colleagues in neighboring states say they’ll report huge spikes, too. The Tennessee figure won’t be confirmed until summer. Drug Enforcement Administration spokeswoman Barbara Carreno said numbers for national meth lab incidents won’t be released until July because many states have not yet tallied them. Missouri saw a 10 percent increase in meth lab incidents over the 1,774 in 2009, but Tennessee’s numbers jumped 41 percent, Farmer said. Meth lab incidents also jumped by nearly 300 in Indiana, to 1,395 in 2010.

Public Risk | April 2011

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Safety Workers Protest Camden Layoffs A few dozen public safety workers staged a protest outside Camden City Hall, saying recent layoffs had made the city an unsafe place to live and work, reports The Inquirer. The demonstrators, most of them laid-off workers but also a few firefighters who had finished their shifts in the morning, held signs and chanted in unison: “Restore public safety now.” In a budget crunch, Camden officials in January laid off 163 police officers and 60 firefighters, in addition to 113 other city employees. As one result of the cutbacks, union officials say, firehouses have been rearranged and now function with seven companies each shift, down from 11 a couple of years ago. Camden firefighter Joseph DiPaolo sustained burns to his face and neck while fighting a blaze in the Fairview section of the city recently. He and union officials blame the injuries on lack of backup and slow response time.

Legislators Worry about Raising Vehicle Insurance Requirements A bill that would boost the state’s minimum vehicle insurance level sparked legislators’ fears that the higher premiums it would bring would harm poor and indigent people and force more drivers to go uninsured, reports the Las Vegas Review-Journal. “The poor will be hurt by this bill,” Assemblyman Mark Sherwood, R-Henderson, said about the bill that would increase the minimum amount of liability insurance required for people to be allowed to drive in Nevada. “It sucks to be poor, we all know that. A $300 (rate increase) is a lot for some people.” Assemblywoman Dina Neal, D-North Las Vegas, said some friends earn about $36,000 a year and they barely can pay month-to-month costs of auto insurance as it is. “This has nothing to do with the recession,” Neal said. “We are working-class people living on fixed incomes.” Their remarks came during an Assembly Transportation Committee debate on Assembly Bill 120. The bill was proposed by Assemblyman William Horne, who was injured in an accident in which the other driver had only the minimum liability insurance required by law. It is not clear whether the bill would be approved. Its next stop is a Transportation Committee workshop.

Calendar of Events The Public Risk Management Association (PRIMA) hosts or sponsors a wide variety of educational programs for public risk practitioners. These meetings and events provide an optimum forum for public risk professionals to acquire new knowledge or skills, exchange ideas and expand peer networks. PRIMA’s calendar of events is current at time of publication. For the most up-to-date schedule, visit www.primacentral.org.

Webinars 2011 April 13: FREE for Members! A Recipe for Risk Management July 20: FREE for Members! Managing Volunteer Risks October 19: FREE for Members! Risk Management Alphabet Soup November 16: FREE for Members! Winning Strategies for Contractual Risk Transfer

PRIMA Annual Conferences June 5–8, 2011 PRIMA 2011 Annual Conference Portland, OR Portland Convention Center June 3–6, 2012 PRIMA 2012 Annual Conference Nashville, TN Opryland Hotel June 2–5, 2013 PRIMA 2013 Annual Conference Tampa, FL Tampa Convention Center June 8–11, 2014 PRIMA 2014 Annual Conference Long Beach, CA Long Beach Convention Center

April 2011 | Public Risk

Medicare Conditional Payments

MMSEA Section 111 Reporting Is Not the Only Medicare Game in Town Going Beyond Section 111: Why Medicare Conditional Payments Should Be on the Claims Radar By Mark Popolizio, J.D.

Public Risk | April 2011

www.primacentral .org

little over three years after President Bush signed Section 111 of the Medicare, Medicaid & SCHIP Extension Act of 2007 (MMSEA or

Section 111) into law, official reporting for certain non-group health claims will finally commence in the first quarter of 2011, with full implementation of Section 111 reporting now slated for January 2012. For the past three years, the claims industry has incurred considerable expense and dedicated significant time and resources building Section 111 compliance programs to meet Medicare’s new “notice and reporting” mandates. Section 111’s steep penalty ($1,000 per day, per claim) has rightfully focused the claims industry’s attention on developing Section 111 compliance protocols. However, in all the fireworks over Section 111, it is important that another Medicare compliance obligation is not lost in the shuffle: Medicare Conditional Payments. On a number of levels, this separate compliance obligation could actually have a much greater and direct impact on everyday claims handling and settlement than Section 111’s reporting mandates. Importantly, it must be understood that Medicare’s conditional payment rights exist independently of Section 111. Thus, although the Centers for Medicare and Medicaid Services (CMS) recently delayed Section 111 reporting for certain liability (including self-insurance) claims, primary payers still need to address the conditional payment issue even if reporting is not yet required under Section 111, or is otherwise exempted per a Section 111 reporting exception. As Medicare continues to more ardently enforce its rights under the Medicare Secondary Payer Statute (MSP), now is the time for primary payers and practitioners to make sure that conditional payments are on their claims radar and that proper protocols are in place to address the issue as part of claims handling and settlement practices.

What Are Medicare Conditional Payments? Medicare conditional payments are payments made by Medicare for accident-related medical treatment for which another payer is responsible as determined and defined under the MSP. There are several manners in which conditional payments can arise in relation to workers’ compensation, no-fault, liability and other injury-based claims. The most typical way for conditional payments to arise relates to cases where the primary payer denies the claim and does not pay for medical services. In this instance, if the claimant is a Medicare beneficiary, Medicare typically steps in and provides medical treatment for the alleged accidentrelated injury or condition. Conversely, a primary payer may actually accept responsibility to provide accident-related medical treatment (such as a compensable workers’ compensation claim or non-fault claim), but the treating physician mistakenly submits the bills to Medicare for payment instead of to the primary payer.

Must Medicare be Reimbursed for Conditional Payments? Yes. Pursuant to 42 U.S.C. § 1395y (b)(2)(B)(ii), Medicare has a statutory right of reimbursement for conditional payments. This section, in pertinent part, provides as follows: A primary plan and an entity that receives payment from a primary plan, shall reimburse the appropriate Trust

April 2011 | Public Risk

Medicare Conditional Payments Fund for any payment made by the Secretary under this subchapter with respect to an item or service if it is demonstrated that such primary plan has or had a responsibility to make payment with respect to such item or service.

In addition, a settlement or contractual obligation demonstrates “responsibility” under the MSP. (See, 42 C.F.R. § 411.22(a)(3)).

While it is a common settlement practice in many quarters to “pin” the responsibility for conditional payment reimbursement on the claimant, it is questionable at best whether CMS is obligated to abide by such settlement provisions given its broad powers under the MSP and corresponding regulations. One potentially troubling regulation in this regard is 42 C.F.R. § 411.24, which provides that if CMS is unsuccessful in its efforts to obtain conditional payment reimbursement from the claimant, then the “primary payer must reimburse Medicare even though it has already reimbursed the beneficiary or other party.”

With respect to reimbursement, if CMS does not need to take legal action, the amount of recoverable conditional payments is the lesser of either the Medicare primary payment, or the amount of the full primary payment that the primary payer is obligated to pay. Medicare’s claim may be reduced by “procurement costs” as outlined in the Code of Federal Regulations. If legal action is necessary, Medicare may seek twice the amount of the Medicare primary payment against the primary payer.

The recent case of U.S. v. Stricker, No. 09-2423 (N.D. Ala., September 30, 2010), illustrates Medicare’s broad enforcement rights. In Stricker, the government sued the plaintiff law firms, the defendant corporations and their insurance carriers involved in a 2003 liability settlement for their alleged failure to protect Medicare’s interests regarding conditional payments. As part of this action, Medicare claimed double damages against the primary payers (insurers and corporations).

The claimant may appeal a conditional payment claim through an established administrative appeals process and may file an action in federal court. Claimants also enjoy other potential methods to request a reduction of the conditional payment claim including economic hardship and equity and good conscience.

While this action was ultimately dismissed on the unrelated and technical grounds of the statute of limitations, Stricker nonetheless underscores the need for all parties to ensure that conditional payments are being addressed and dispels the erroneous belief that conditional payments are solely the claimant’s (plaintiff’s) problem.

A primary plan’s responsibility for such payment may be demonstrated by a judgment, a payment conditioned upon the recipient’s compromise, waiver, or release (whether or not there is a determination or admission of liability) of payment for items or services included in a claim against the primary plan or the primary plan’s insured, or by other means.

Who is At Risk? Under the MSP, Medicare has wide latitude in terms of who it may pursue for conditional payment reimbursement and how it may do so. Medicare has a direct action against “any and all entities that are or were required or responsible” for making payment, as well as any entity that “receives” a primary payment, including a beneficiary, provider,

supplier, physician, attorney, state agency or private insurer. Medicare also has a subrogation right and rights of joinder and intervention. As noted, CMS may seek double damages against primary payers in certain situations.

Public Risk | April 2011

How Can Conditional Payment Information Be Obtained? The parties must take affirmative steps to request conditional payment information from CMS. This entails a separate “notice and reporting” process from Section 111 involving the following steps: Step One: Reporting the Claim to COBC To get the process rolling, the claim must be reported to Medicare’s Coordination of Benefits Contractor (COBC). Reporting to COBC is made via phone, writing or fax. It is important to note that this is a separate and independent reporting process from Section 111 electronic reporting. Step Two: MSPRC Issues Certain Documents Once COBC is placed on notice, it in turn notifies another contractor, the Medicare Secondary Payer Recovery Contractor (MSPRC). The MSPRC will then issue a

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As Section 111 reporting finally (and slowly) commences, it is vitally important that primary payers do not fall prey to “tunnel vision” by failing to look beyond Section 111 to address other Medicare compliance obligations, such as conditional payments. Public entities owe it to themselves to develop best practices and protocols to address conditional payments as part of their overall Medicare compliance program.

Rights and Responsibilities Letter to the parties advising of Medicare’s reimbursement rights. Per the MSPRC, within 65 days of the date of the Rights and Responsibilities Letter, a Conditional Payment Letter (CPL) will be issued providing an initial itemization of its claimed conditional payment amount. Typical information contained in a CPL includes, but is not limited to, provider information, diagnosis/ICD codes, service dates, total charges and claimed conditional payment amount. It is important to note that as the case continues, it may be necessary to request “updated” CPLs. CMS has established a variety of methods and forms (e.g. Proof of Representation, Consent to Release or Carrier Letter of Representation) to be used to obtain CPLs. Information regarding which method and document to be used can be found at www.msprc.info. Step Three: The CPL Must be Reviewed for Accuracy When a CPL is received, it must be reviewed line-by-line for accuracy. The MSPRC should be contacted to request the removal of any inappropriate claims. Step Four: Request a “Final” Conditional Payment Figure Under CMS’ current process, the parties generally cannot obtain Medicare’s final conditional payment figure until after the claim is actually settled and the executed settlement agreement is sent to the MSPRC. When CMS issues its final demand, it gives the party against whom demand is made 60 days from the date of the conditional payment final demand issue date to tender payment. If reimbursement is not tendered in accordance with the 60 day timeline, interest will be assessed. If payment is not tendered within 120 days, the matter will likely be referred to the U.S. Department of Treasury for official collection action.

Per CMS, it should be noted that there are two instances when a Conditional Payment Notice (CPN) will be issued in lieu of a CPL: 1. If the MSPRC is notified of a settlement, judgment, award or other payment through Section 111 reporting rather than from the beneficiary or their representative; and 2. If the MSPRC has been alerted to a settlement, judgment, award or other payment by the beneficiary or their representative before the usual Conditional Payment Letter has been issued. As Section 111 reporting finally (and slowly) commences, it is vitally important that primary payers do not fall prey to “tunnel vision” by failing to look beyond Section 111 to address other Medicare compliance obligations, such as conditional payments. Public entities owe it to themselves to develop best practices and protocols to address conditional payments as part of their overall Medicare compliance program. Mark Popolizio, Esq., is the vice president of customer relations for NuQuest/ Bridge Pointe.

April 2011 | Public Risk

PRIMA 2011 Annual Conference

Blazing the Trails of Risk June 5–8, 2011 Portland, OR Oregon Convention Center Plan now to attend the industry’s ONLY conference dedicated to risk management in the public sector! At the 2011 Annual Conference, you will have more than 50 educational sessions in nine tracks from which to choose, including an employee benefits track, school risk management, pooling and risk control. We’ve all heard that these topics are going to effect us sooner or later. Find out how your peers are addressing these new responsibilities!

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What Is Your Leadership Legacy?

What Is Your

Leadership Legacy? Most people think about legacy at the end of their careers-as they near retirement. But the time to think about it is now as that will make you a better leader today.

By Jann E. Freed, Ph.D.

When should you start thinking about the legacy you are leaving as a leader? In some ways, professional athletes have an advantage because they “retire” at a much younger age than most of us and the media continually reminds them of their legacy. In an article about Shaquille O’Neal in Sports Illustrated, the writer notes that at this point everything Shaq says and does is focused on his legacy and what people will remember about him after his basketball career is over. But some athletes are fortunate to move on into other careers, such as broadcasting, launched by their popularity as an athlete. People often feel they are too young or too old to think about their legacy. But the time to think about it is now. Most people think about legacy at the end of their careers, as they near retirement. But Robert Galford and Regina Maruca, authors of Your Leadership Legacy, advocate that “thinking about your legacy now makes you a better leader today no matter how far you are from retirement.” Based on interviews with people at all organizational levels—recently retired senior leaders, senior managers whose retirements were close, CEOs in mid-career and other leaders—Galford and Maruca believe we all should be engaged in legacy-thinking: a forward-thinking tool that is counter-intuitive to what we typically think of as legacy work. As Jim Kouzes and Barry Posner state in their book, A Leader’s Legacy, thinking about legacy encourages us to think about today’s actions in a larger context. Legacy-thinking requires us to go beyond the common practice of short-term thinking because legacies include the past, present and future. As leaders, whether we realize it or not, we are leaving a legacy with the decisions we make and the actions we take. Our legacy is revealed in how others who work with us, for us and beside us feel and think about us as a result of having been in our presence. We leave our legacy daily and it can be good or bad. If you want to read some stories of people leaving bad legacies, go to www.workingamerica.org. Every year, Working America runs a national competition for America’s worst

Public Risk | April 2011

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boss—and it is tough competition. Unfortunately, there are familiar stories submitted to the Bad Boss Contest about hard work, bad pay, no benefits and lack of respect. What do we want people to remember about us as leaders? What influence are we having on others on a daily basis?

THE BIG PICTURE Thinking about legacy encourages us to think about today’s actions in a larger context. It requires us to go beyond the common practice of short-term thinking because legacies include the past, present and future. To illustrate how legacy-thinking works, Galford and Maruca use the analogy of a photo mosaic: an image made up of many other tiny images. When up close, it is possible to see each image on its own. But when viewed from a distance, all of the images create one distinct whole image. If we imagine our own portrait made up of individual images—the faces of people who work for us, community connections, our customers/ clients/constituents and others—the more consistent our leadership legacy, the clearer the larger image and vice versa. The overall photo mosaic comprises our approach to leadership, how we treat others and what others think of what and how we are leading. In fact, how we treat others and make others feel influences how they go home and treat others because as leaders, we have influence over people’s lives. A recent example of leadership impact is the reality television series, Undercover Boss. The introduction for the show

says, “The economy is going through tough times. Many hard-working Americans blame wealthy CEOs who are out of touch with what’s going on in their own companies.” Each episode of the show features a senior executive at a major corporation, working incognito as a new entry-level hire in the company for one week, to find out how the company really works, including the impact of corporate policies. CEOs often are moved to tears after discovering employees in low-paying jobs working so hard to earn paychecks. After the show’s first season, there were several key themes that emerged as bosses worked alongside workers: • Employees want personal recognition and not necessarily more money for work well done. • People are different and value different rewards. • Policies are often impractical and employee input would help make them practical. • Changes often take place after the boss has experienced how things actually are working. • Once the boss is revealed, employees are surprised, but grateful for the experience.

April 2011 | Public Risk

What Is Your Leadership Legacy?

Thinking about legacy encourages us to think about today’s actions in a larger context. It requires us to go beyond the common practice of short-term thinking because legacies include the past, present and future.

WHAT HAVE YOU LEARNED? Since now is the time to start thinking about your legacy, here are some questions to consider: • What are two or three personal characteristics (skills, behaviors, or values) for which you would most like to be remembered? • How would you like to have these characteristics manifest themselves? • What have you learned in your current role, your work and your life so far that you would most like to pass on to others? • How will you convey that learning? These questions can be answered in a legacy statement that should be reviewed and updated as you gain additional life experiences. It isn’t so much about making a statement as it is about a way of thinking. Legacy-thinking is grounded in selfawareness, hopes and intentions. It is focused on what we are leaving behind, wherever we go, whatever we do and with whomever we encounter along the way. Legacy can be thought of as similar to the cliché, “Character is how you act when no one is looking.” Because even if we don’t

Public Risk | April 2011

think about the impact we are making, others are noticing, whether we like it or not. Think of two people who are building meaningful legacies. How are they doing it? What decisions are they making? What behaviors are repeated? How do others respond to them? Try to emulate their behavior. Conversely, avoid the behavior of those you do not respect. Dave Thomas, founder of Wendy’s, has been attributed as saying that “a reputation is earned by the actions you take each day.” It is important to remember that leadership legacies are built by each decision and action or inaction on a daily basis. Even in these times when decisions are difficult to make, we still have control over how we make them and how they are communicated. Kouzes and Posner summarize it this way: “The legacy you leave is the life you lead.” And they add: “Leaders must decide on what matters in life before they can live a life that matters.” Jann E. Freed, Ph.D., is a professor of management at Central College and the Mark and Kay De Cook Endowed Chair in Leadership and Character Development. Her article appeared in the July/August issue of Training/Lakewood Media Group.

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Technology Improves Public Transportation Fleet Management

Technology Improves Public Transportation Fleet Management By Rodell Notbohm

Surveillance cameras are popping up everywhere in America, including deployment on many public transportation systems in small rural communities and large metropolitan cities. Yet most people would probably be surprised to know what is on the other side of the lens and how these tools help risk professionals manage public transportation fleets. For example, some city buses can have up to 16 cameras onboard capturing video footage from every angle inside and outside the vehicle. Accelerometers and event switches alert transportation headquarters when a driver needs assistance or when a bus is jarred, such as in a traffic accident. At transportation headquarters, the alert triggers the video feed to appear immediately on monitors in the command center. System-included software and mobile-device applications, including those made for Appleâ€™s iPhone, make it possible for first responders, transit police and transit managers to view activity on the bus live from wherever they are. In recent years, transit operations nationwide have converted to digital video and high-performance mobile video surveillance systems, including King County (Seattle, Wash.) Metro Transit, San Diego (Calif.) Metropolitan Transit System, Metro Area Transit (Omaha, Neb.) and Chicago METRA. Cities like these are flocking to the technologies described here thanks to federal grants, public safety pressure, the need for hard evidence in litigation and to reduce discovery costs. Jacksonville Transportation Authority (JTA) is one transit agency that is successfully leveraging this technology trend to improve passenger safety and satisfaction, increase driver security and vehicle health and reduce liability.

Public Risk | April 2011

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“A key component of our video surveillance system is its flexibility… flexibility that will allow us to add additional cameras and continually adapt Onboard Video Systems Onboard video systems are the foundation of a transit video surveillance system. They include the audio and video hardware physically mounted inside and outside transit vehicles. Most transit vehicles have multiple cameras covering every interior and exterior vantage point. Oftentimes, onboard systems are combined with systems in facilities and bus yards to ensure propertywide surveillance. JTA Skyway trains travel more than two miles through eight stations, all of which are unmanned. Kenneth Williams, manager of Skyway operations, was tasked with finding a solution that would provide surveillance for these broad areas to increase rider safety and security while protecting the agency from frivolous lawsuits, liability issues and fare-skippers. Williams set out to implement a solution to meet the needs of transit managers, while also providing surveillance access and coordination abilities to first responders and law enforcement. The solution is a state-of-the-art command center for viewing and monitoring live video feeds from all Skyway stations and trains. The control center provides transit officials with the ability to view video in real-time and provide playback of previously recorded video. In order to make the command center vision a reality, the Skyway’s 10 trains are equipped with digital video recorders (DVR) and four cameras strategically placed in the interior of each train. These cameras provide video of passengers onboard as well as passengers entering and exiting the trains. In addition, each Skyway station is equipped with facility-based DVRs and anywhere from four-to-eight cameras strategically positioned to provide full surveillance of each station. Display monitors located in the command center provide a comprehensive view of the entire Skyway operation and

the system to best enable transit managers to dispatch police immediately if safety or security concerns arise, including pedestrians crossing illegally into Skyway stations, jumping over gates, skipping fares or participating in acts of vandalism and violence. The command center also provides access for instantly investigating passenger-reported incidents. The system allows law enforcement agencies to view real-time video from remote locations to ensure that security incidents are handled as quickly and safely as possible.

suit our organization’s needs,” Williams said.

“Real-time video feeds have allowed us to not only prevent potential security and vandalism incidents, but also review any complaints that arise from commuters,” Williams said. “Safety and security remain our number one priority. Video surveillance solutions are key to addressing our safety and security concerns.” Williams recalls a time before digital video was available and transit managers had to physically remove video hard drives to review video from the transit vehicles. Now, video feeds from JTA Skyway stations and trains are sent digitally to the command center’s large-scale viewing management software, which caches and stores video. “A key component of our video surveillance system is its flexibility…flexibility that will allow us to add additional cameras and continually adapt the system to best suit our organization’s needs,” Williams said. Compatibility is vital when the agency desires upgrades to its existing system through new technology, such as adding live, streaming video back to headquarters or GPS and timetagging of video. In addition, because fleets are often outfitted over a period of time, backwards compatibility with

April 2011 | Public Risk

Technology Improves Public Transportation Fleet Management

Public risk management requires situational awareness to protect a community and its resources, including the public transportation systems on which thousands of commuters rely every day. In order to reduce the risks these systems present, monitoring lets officials know exactly what is going on with every vehicle.

older systems is important for reduction of costs and easy system management.

Fleet Management Solutions Fleet management software allows for the easy management of video and fleet information with comprehensive tools, including automatic downloading, archiving, reporting and viewing. Fleet management tools increase the accessibility of data to risk managers, public safety and transit agency officials. They include accelerometers, motion detectors and remote viewing. Accelerometers are becoming a more common requirement for transit surveillance. This technology flags video and provides live feeds in the event of an incident. Accelerometers are used to alert transit managers to accidents, poor driving behaviors and aid in driver training. Motion detection capabilities trigger the digital video recording system to start recording at the first sign of movement. The passive infrared sensor detects any movement inside the vehicle when the bus is turned off to ensure the bus is secure when not in use. JTA implemented some of these fleet management tools to enhance their transit video surveillance. To improve incident investigation, JTA installed video surveillance cameras with cellular and Wi-Fi capabilities on buses, community shuttles and Skyway trains. These video cameras enable transit managers to log on remotely, view cameras onboard and quickly investigate passenger and employee concerns. With cellular capabilities, transit managers can investigate incidents and provide hard evidence that can be acted upon quickly and effectively. Within the agency’s secure network, transit managers are able to view real-time or historical video feeds from either the command center or other agency computers.

Public Risk | April 2011

“We can now log on instantaneously and view incidents as they occur, or soon thereafter,” Williams said. “In a city the size of Jacksonville, it is crucial that we have real-time viewing capabilities. When an incident occurs, or a bus operator is in need of assistance, we can now respond immediately and provide the necessary assistance to both operators and commuters.” These capabilities also provide transit managers with up-todate health notifications of the entire fleet. In addition to video surveillance capabilities, JTA’s control center is able to view real-time graphical route information and GPS data, identifying exactly where each bus is located. In the event of an emergency, the system provides bus operators with an incident switch that tags the event and provides instant access to live video of the incident. Earlier this year, JTA’s digital video recording system captured a vital incident. In this particular instance, a camera installed on the exterior street side of a JTA bus captured video footage that shows a bus rider attempting to cross the street behind the bus as he is struck by an oncoming vehicle. The video from this incident will undoubtedly be crucial in substantiating information from those involved. Public risk management requires situational awareness to protect a community and its resources, including the public transportation systems on which thousands of commuters rely every day. In order to reduce the risks these systems present, monitoring lets officials know exactly what is going on with every vehicle. While it may be impossible to be present at every traffic incident or onboard dispute, public risk managers are required to know and deliver information on exactly what happened in each of these incidents and the many others presented by public transportation systems. Rodell Notbohm is the general manager for Apollo Video Technology.

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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 underbudget? 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.

Go Online and Get Out of the Classroom! If you are agent/broker, business executive, risk manager, or an operational risk staff member, the in-depth knowledge you receive with an ARM designation will greatly benefit you and your entity. The Associate in Risk Management (ARM) designation requires completion of the 3-part ARM series: ARM 54–Risk Assessment; ARM 55–Risk Control; and ARM 56–Risk Financing. Prepare for these exams with the Public Risk Management Association's online tutorials—proven beneficial tools in the studying process. Upon purchase, you have 365 days of studying time. The tutorials fit your individual schedule, whether you are at work, at home, or on travel; they are available 24/7. Check out the PRIMA Online Programs section of our Web site, www.primacentral.org, and register today!

April 2011 | Public Risk

Member Spotlight

City of Lincoln Creates a Risk Management Culture Each month, Public Risk features a member who has 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.

n early 2010, the City of Lincoln, Neb., moved five separate departments into one integrated Development Services Center (DSC). “We needed a more efficient and convenient way of supporting residential and commercial development business in Lincoln,” said Mayor Chris Beutler. “The DSC allows the public easy access to the building and safety, city-county health, city-county planning, public works and utilities and urban development departments.” “With the new DSC, we now have opportunities for an engineering, urban development, environmental health and watershed management review of all projects on one floor of city hall,” said Bill Kostner, risk manager. “It also presented an opportunity to develop a comprehensive risk management program to provide safety and security to the 133 staff members in those five departments of the DSC.” According to Kostner, the impetus for the comprehensive risk management plan was an injury sustained by a worker in the DSC. “(DSC Manager) Fred Hoke was interested in preventing future injuries and accidents,” said Kostner. “He asked us pointedly, ‘How can we prevent this from happening again? How can we go beyond this injury and be the safest department at the City of Lincoln? Will you help us to develop a world-class risk management plan?’” One of the first, early priorities was to develop a DSC Risk Management Committee, which included personnel from all five agencies that make up the DSC. Some of the committee’s initial assignments involved listing each area in the department where staff could go in case of severe weather conditions. “We have our share of major summer and winter storms in Lincoln,” said Hoke. “These areas were marked on a DSC floor map and posted in each of the departments. We’re also working on a ‘You are here’ format to post evacuation notices in each office or cubicle so staff know exactly where they are to congregate in an emergency situation.”

Public Risk | April 2011

One of the committee members from building and safety is a certified bomb technician and provided “Bomb Threat” cards and information for each phone. “If a staff member receives a threatening call, that member has a list of questions and techniques to get pertinent information that could help in the apprehension of the caller,” said Kostner. The DSC Risk Management Committee is also working on a web-based process for loss reporting to risk management while copying senior staff. “Presently, loss reports are available online, but with five formerly separate departments now working together, we are looking at a process to do prompt loss reporting electronically to the risk management division, while also advising local administration,” said Kostner. Next, the DSC departments started reviewing their business continuity plans. Using the policy and template established by risk management, the departments realized that their business continuity plan was incomplete and lacked clear steps to take in case of business interruption. “We’re still working with each department to ensure that their staff know exactly what location they will need to establish to continue their work if they can’t operate out of their current office space,” said Hoke. “This is an ongoing process but I am pleased to say that our DSC has developed a risk management culture,” said Kostner. “More risk management training also is on the horizon for the DSC departments…we must continue to train, to prepare and to plan for that unexpected contingency that could result in loss to our city.” “I saw Fred Hoke again last week and asked, ‘How’s it going?’ He smiled and said, ‘We’re building the best and safest DSC in the nation!’” For more information, contact Fred Hoke, DSC manager, at fhoke@lincoln.ne.gov or Bill Kostner, risk manager, at bkostner@lincoln.ne.gov.

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