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Risk Management

Seasoned Insurance Pro Embraces Municipal Focus

June 20, 2025

Phil Latvis joined VLCT as the Director of Risk Management Services in April with an impressive range of experience in not only commercial insurance but also Vermont’s state-level insurance regulation. In addition to the official announcement of his being hired, we asked Phil to answer this slate of questions to help our readers get to know him a little better.
 

Why VLCT? What interested you about working for VLCT? What is your background in municipal government?  

Having worked in the insurance industry in Vermont for many years, I learned of VLCT’s strong reputation for member service. Interacting with friends and coworkers who serve in various municipal roles and had firsthand experience with VLCT, their comments about the organization ranged from “Super Helpful” to “Vital”. When the Director of Risk Management Services position became available, I saw it as an opportunity to apply my experience to serving Vermont municipalities in a way that would build on the outstanding work that had been done and to strengthen the team that serves our member municipalities.  

What are you working on at VLCT? What most excites you about this position? 

As Director of Risk Management Services, I enjoy the opportunity to lead an outstanding team of professionals who serve our members’ risk management needs. We are in the enviable position of having a very strong group with many years of experience serving our members.  

An important aspect of my role is to position us to develop the next generation of professionals who will serve our members in the future. In doing so, we must evaluate the needs and challenges that our members are facing today and anticipate the ones we expect to emerge so that we have the skills necessary to meet the needs. We will be engaging members in conversations to better assess their current and anticipated needs. Member engagement and helping members solve important and difficult risk and insurance challenges is one of the most rewarding aspects of my role.

Tell us a little bit about yourself, your interests, a fun fact about you, etc. 

Though not a native, Vermont has been part of most of my life. I grew up in Spofford, a village of Chesterfield, New Hampshire which is across the Connecticut River from Brattleboro. Early in my career a job opportunity brought me to Vermont and we settled in the Upper Valley, living in Quechee and then Wilder (both villages in Hartford). My wife, Tammy, and I have three grown children and two new granddaughters (1 year and 5 months). While our downsizing brought us just over the border, when our kids are asked where home is, they all say Vermont.    

I most look forward to spectacular summers and falls as I enjoy boating, paddleboarding, and hiking. Tammy and I also enjoy traveling, whether it is a day trip, a weekend getaway, or an international trip.

What do you want members to know about your work? Are there any common misconceptions or misunderstandings about what you do?  

Our work at VLCT PACIF is so much more than insurance. Our role is to help members manage their long-term cost of risk in an effective manner. Unlike commercial insurers, who routinely decide whether to insure an organization, we exist to serve our members and to help them understand and address potential causes of loss to keep their employees safe and to minimize the financial impact of losses that do occur to the member and its taxpayers.  

If you had an unlimited budget, what would you most want to focus on in your work? 

With an unlimited budget we would make every community disaster proof. Since that’s not realistic, we can take steps to help communities plan how to minimize damage to the extent possible and develop plans to get members functioning in a normal manner as quickly as possible. In addition, we can work with coalitions of agencies and organizations that share in the goal of minimizing the effects of natural disasters on our communities to help identify and develop programs for assistance. 

How are you committed to justice, diversity, equity, inclusion, and belonging in your work? 

In past work experience I have served as an equity liaison and participated in work to prevent unfair discrimination in the pricing, availability, and function of insurance.  

Beyond just being the right thing to do, being committed to justice, diversity, equity, inclusion, and belonging is essential for a thriving workplace. To me, justice is about fairness, and equity is about making sure that everyone has what they need to succeed. Diversity makes an organization stronger because a variety of backgrounds and life experiences contributes to better decisions. Inclusion is embracing the participation of everyone, which leads to a sense of belonging and a feeling of being respected. Being aware of and intentional with how all of this works together creates a better environment and better outcomes for all.  

UVM and VTrans Seeking Examples of Mudslides/Debris Flows Impacting Town Roads

Member for

2 years 5 months
Submitted by bwaninger@vlct.org on
hillside landslide debris covering a paved road

VTrans is seeking your examples of mudslides or debris flows that affect town roads and which occurred in heavy rains, including those in 2023 and 2024. UVM is working with VTrans to develop a debris flow hazard identification and monitoring program in response to the increased frequency of these in Vermont. 

UVM is seeking sites to visit for information on slope steepness, soils, groundwater, and local knowledge of the damage and cleanup. They are looking for land slides and mud slides that are independent of water channels. If your town experienced a mudslide or debris flow that impacted a town road, please contact John Lens, PhD, PE john.lens@uvm.edu with information and to arrange a site visit. John's contact information is:

Dr. John E. Lens, PE
Professor of Practice
University of Vermont
Department of Civil and Environmental Engineering
Mobile: 802-272-2796
Email: john.lens@uvm.edu 

Debris flows and mudflows destroy property, block roads, impact critical infrastructure like water and sewer lines, and can be deadly. It is difficult to identify where debris flows and mudflows are likely to happen using existing mapping methods. You can help map risk areas and improve hazard planning in Vermont.

Learn more about this project at Landslide Hazard Identification and Monitoring | Agency of Transportation.

Funds Transfer Fraud is a Preventable Risk!

April 10, 2025

In recent months, PACIF has seen an increase in the number of claims resulting from funds transfer fraud being conducted successfully on members of all sizes. Aside from the fact that these claims are preventable by using some simple practices, PACIF’s crime coverage is limited to $50,000 per occurrence – which might not cover an entire loss.  

This guidance explains what funds transfer fraud is and lists basic prevention measures that anyone with access to municipal accounts should use to avoid falling victim to these schemes. 

A “funds transfer fraud” claim stems from when a municipal official or staff member who, deceived by a fraudulent instruction, transfers municipal funds to a third party that is not entitled to the payment. These instructions most commonly arrive in emails, but they may arrive – or some element of the fraud may be conducted – by phone, text, or mail.  

Examples of common claim scenarios include: 

  • The finance staff receives an email that appears to come from an employee who is requesting that their direct deposit account be changed to a different account or financial institution. This may even use the member’s own request form. The finance staff member makes the payroll change and unknowingly is now depositing the employee’s payroll check into a criminal’s account. 
  • Unbeknownst to the municipal official or staff member, their email account has been infiltrated and is being monitored by a criminal, who notices that a financial transaction is occurring between the municipality and a vendor or contractor. At some point during the communication, the criminal inserts themselves into the communication thread and generates an invoice or request for payment that appears to be legitimate. They often will ask that depository information be changed. When payment is made, it goes to the criminal instead of the legitimate vendor. 
  • A municipal staff member receives a request from a (fraudulent) vendor who requires a change to their bank depository information. The staffer, trying to apply due diligence, asks the vendor to provide the request on their company letterhead, and the bogus vendor complies using a spoofed copy of the legitimate vendor’s letterhead. The staffer is deceived and makes a payment to the fraudulent vendor. 
  • Municipal staff responsible for finances receive an email or other communication that appears to come from the municipal manager, selectboard chair, or another person who could legitimately request a funds transfer. The communication asks that funds be transferred immediately to a specific account to address an urgent need. But the initial communication was a bogus request, so when the funds are transferred, they land in the criminal’s account. 

While there are variations on the theme, the scams all involve moving money from one account to another in what appear to be legitimate situations. Some scenarios include an element of urgency, such as an account being overdue or an urgent communication from a “municipal official”. Many of them also request a change in bank account information.  

With financial fraud claims becoming more frequent, it is critical that PACIF members establish policies on how to handle these requests when they are received. Below is a list of some basic measures your organization can take to avoid falling victim to this type of fraud. 

  • Verify. When receiving any request to revise bank account information, always verify with the actual requesting party that the request is valid and the account information is accurate. Do this with a separately known means of communication, such as a  known phone number and contact. Never rely on email addresses or phone numbers that are provided within the change request or the accompanying email. 
  • For payroll deposit changes, consider using an app that includes multifactor authentication, or require changes to be requested in person.  
  • Carefully scrutinize requests for changes to bank information, as these should always be viewed with a high level of suspicion. If received by email, hover over the email address to see whether a different email address appears. Never click on links within these emails as they may contain malware or viruses. Even when you are expecting the email, be suspicious and use good phishing prevention tactics such as hovering over links and email addresses to make sure that the email is legitimate. If there is any doubt about the validity of the request, verify. 
  • Suspect any urgent request for a transfer of money. Artificial intelligence is now being used to emulate a person’s voice – so even phone voice message requests must be handled with the same level of scrutiny as email inquiries. Always verify any funds transfer request directly with the person that is allegedly requesting it, using a known phone number. 

These days, being suspicious and on high alert when engaging in any financial transaction makes a lot sense. Implementing some basic financial controls and work practices can go a long way in preventing your municipality from falling victim to funds transfer fraud and having to place a claim to try to recover the lost funds. If we all work together to minimize these claims, PACIF members can help keep their crime coverage rates low and ensure that precious municipal funds go where they’re supposed to go. For more information, reach out to your loss control consultant or contact us at losscontrol@vlct.org. For financial control information, visit www.vlct.org/finance.  

When Will New MUTCD Standards Apply in Vermont?

Member for

2 years 5 months
Submitted by bwaninger@vlct.org on
Cover of MUTCD 11th Edition

The federal government released a new edition of the Manual on Uniform Traffic Control Devices for Streets and Highway (the MUTCD) in December 2023. The 11th Edition revises how speed limits are set, recommends a “safe systems” approach, and doubles its focus on bicycle and pedestrian infrastructure. See our article about the updates. The revisions will become effective on January 18, 2024. States are required to adopt the MUTCD within two years of its effective date or have a state MUTCD/supplement that substantially conforms with the national manual.

If your municipality has a project that is funded with federal or state transportation funds, MUTCD compliance must follow the Vermont MUTCD transition plan described below. Additionally, because all traffic control devices in Vermont must comply with the MUTCD, VTrans recommends that municipalities consider a similar timeline for locally funded projects.

Adoption of the MUTCD 11th Edition
  • Through this year's Transportation Bill (pages 63 and 64), the Vermont General Assembly (legislature) updated language in Vermont State Statute regarding adoption of the MUTCD. These revisions clarify that Vermont is adopting the 11th Edition of the manual according to the compliance date established by Federal Rule, which is January 18, 2026.
  • VTrans is revising standard drawings, specifications, and engineering Instructions to conform to the new MUTCD. This effort will be complete by July 1, 2025.
  • Existing signs, signals, and pavement markings may remain in place for their useful service life except for those devices noted in Table 1B-1, which must be brought into compliance by the date noted.

 

Compliance Dates for State and Federally Funded Transportation Projects in Vermont

Municipal projects funded with state or federal transportation funds, i.e., bridges, roads, trails, paths and sidewalks, stormwater, etc., must comply as follows:

  • Projects advertised prior to October 1, 2025, with substantial completion prior to January 18, 2026: These projects may conform to either the 2009 MUTCD or the 11th edition. Projects designed to conform to the 11th Edition would need to provide detail in project plans and special provisions until such time as standard drawings and standard specifications have been updated.
  • Projects advertised prior to October 1, 2025, with substantial completion on or after January 18, 2026:  These projects may conform to either the 2009 MUTCD or the 11th Edition. When practical, project specific plans and special provisions will conform to the 11th Edition prior to advertisement. For multi-year projects already under contract, and those that cannot feasibly be revised prior to advertisement, the design engineer may review and identify changes needed to conform to the 11th Edition which may be discussed with the Engineer for potential change order and implementation as deemed appropriate.
  • Projects advertised on or after October 1, 2025: These projects shall be designed in conformance with the 11th Edition. These projects will incorporate updated standard drawings and standard specifications prior to advertisement which will be available by July 1, 2025.
When the MUTCD is Incorporated by Reference

The MUTCD often is incorporated into contracts by reference. Per Section 101.04 of the 2024 Standard Specifications for Construction, when the MUTCD is incorporated by reference and the material covered is not covered by the Standard Specifications or Special Provisions, the reference shall be to the latest revision in effect on the date of advertisement, unless otherwise specified. For example, the MUTCD is often incorporated by reference as it relates to contractor-developed traffic control plans. When that is the case, contractor-developed traffic control plans shall conform to the 11th Edition, unless otherwise specified in the contract.

State Highway Access and Work Permits (1111 Permits)

Work performed within rights-of-way owned by VTrans, including installation and maintenance of utility facilities and construction and maintenance of commercial accesses to property adjacent to the rights-of-way, must have a State Highway Access and Work Permit, commonly known as an 1111 Permit. These projects also must conform to the MUTCD.

  • Must conform to the MUTCD in effect at the time of construction.
    • Until January 18, 2026, may conform to 2009 MUTCD or the 11th Edition.
    • After January 18, 2026, must conform with 11th Edition.
  • Permitted work may remain in place for its useful service life but must be replaced with a compliant device.

A redline markup showing all changes from the 2009 MUTCD is available at https://www.regulations.gov/document/FHWA-2020-0001-17273.

The Standard Highway Signs Manual that corresponds to the 11th Edition is being released in phases as updates occur. For updates go to mutcd.fhwa.dot.gov/kno-shs_2024-release-status/index.htm.

Violence Prevention: In-Person Symposium and Trainings

Member for

2 years 5 months
Submitted by iminot@vlct.org on
audience cheering at a school game

The Vermont Violence Prevention Project is providing two in-person educational opportunities free of charge. After speaking with Training Coordinator Kevin Hytten, VLCT's Law Enforcement Consultant, Trevor Whipple, believes these opportunities would be a great asset to Vermont municipal officials. Trevor often receives inquiries in search of training that would help municipal officials learn how to safeguard their offices, employees, and municipalities from threats. The two programs explained here offer exactly that.

Healthy Campuses & Workplaces Symposium

The goal of this symposium is to develop a comprehensive approach to violence prevention in Vermont by leveraging the collective knowledge, expertise, and resources of the state's academic community, local organizations, and state agencies. The Healthy Campuses & Workplaces Symposium is designed to promote communication and networking among participants and encourage the exchange of best practices.

Date: Monday, September 16, 2024
Time: 8 AM to 5 PM. Check-in starts at 7:15 AM.
Location: University of Vermont Grand Maple Ballroom, on the 4th Floor of the Davis Center, Burlington
Cost: Free, but registration is required, Register by Friday, September 6, 2024.
Food: Lunch will be provided. Light refreshments will be available during breaks in the morning and afternoon. Food allergy information and dietary needs can be requested during the registration process.
Parking: Free of charge. Detailed information and permit requests can be made during the registration process.

Threat Assessment Team Training Initiative 

The Threat Assessment and Management Team Training initiative aims to enhance the effectiveness of threat assessment and management practices in Vermont's higher educational institutions, residential campuses, and medium-to-large employers, which encompass hospitals, healthcare facilities, and state agencies. The initiative runs for all of 2024 and 2025, and all trainings are full-day (with lunch and refreshments) and free of charge. Both the Basic and Advanced trainings are offered on multiple dates to improve existing Threat Assessment Teams, foster the establishment of new teams, and provide access to nationally recognized presenters and best practices. This approach encourages Vermont organizations to leverage all these opportunities to equip themselves with the skills and knowledge they need to identify and manage potential threats, ultimately enhancing community safety and security.

Two different training levels are offered: Basic Community Threat Assessment Training and Advanced Community Threat Assessment Training. You only need to attend a Basic or Advanced session once, and the Basic training is a prerequisite for the Advanced training, so please plan accordingly. Three Basic training sessions remain – the next is on October 14, 2024 – and four Advanced sessions remain, although the one on September 17 can only be used by people who took the Basic training in March, April, or August of 2024. Attending as soon as possible will allow and encourage more teams to form and improve. 

All session dates and times are listed at the Threat Assessment Team Training link.

Workplace Matters Webinars to Enhance Staff Leadership

Member for

2 years 5 months
Submitted by iminot@vlct.org on
Workplace Matters: a Series for People Leaders

VLCT PACIF announces a new webinar series – devoted to supporting leaders of people in the municipal workplace! Every two months, Julie McKenzie, PACIF’s labor and employment attorney, and expert special guests will present and host a lunchtime discussion on ways to foster a productive and engaged workforce. This series will focus on providing actionable insights and practical tools. Attendees are welcome to bring questions as well as their work challenges and successes. 

All local government managers and supervisors of people are invited to join any or all of the meetings in this series. There is no cost for attendees from PACIF member municipalities. 

The dates and topics of the first two meetings in the series are September 12 Performance Management and November 14 Employee Engagement. You will find these and future topics as they are announced in VLCT's online Events & Trainings Calendar. These meetings will not be recorded.

Q: What Is PACIF’s HR Consultation Program and How Can It Help You?

July 11, 2024

A: PACIF’s Human Resources Consultation Program provides valuable partnership and guidance to members in managing the workplace. The program includes: 

  • Advising on day-to-day HR questions 
  • Support in problem-solving big and small workplace challenges 
  • Providing referrals to experienced counsel, government agencies, and other resources 
  • Training managers, supervisors, and governing bodies on HR principles and best practices 
  • Identifying areas of operational risk from an HR perspective and recommending mitigation strategies 

Common inquiry topics include: wage and hour, overtime, the Family Medical Leave Act (FMLA), Vermont’s Parental Leave Act (PLA), the Americans with Disabilities Act (ADA), hiring and job descriptions, people leader skill development, performance management, discipline, internal employee communications, employee engagement, labor and employee relations, employment benefits, employing minors, managing internal complaints, harassment, discrimination, and retaliation.  

Julie McKenzie, Assistant General Counsel for PACIF Labor and Employment, and Jill Muhr, Senior Human Resources Consultant, have deep understanding of the unique aspects of municipal workplaces and the laws, regulations, and best practices that are specific to public sector employment. They spend a lot of time thinking about the workplace, and they look forward to working with PACIF members!  

You can always review the program's offerings at our Human Resources Consultation webpage. Please send your HR questions to info@vlct.org. 

Remember Trenching and Excavation Safety!

June 13, 2024

Whether for replacing aging culverts or repairing or installing a water or sewer line, most workers in municipal road/highway/public works departments need to dig holes or trenches or perform some type of excavations. Once an area has been excavated, one or more employees often need to enter the hole to perform whatever work is required. While an employee’s focus is generally on the task at hand, the sides of an unsecured excavated area can be unstable and collapse unexpectedly, potentially resulting in entrapment, injury, or even suffocation. These hazards – and the OSHA regulations for preventing them – make it necessary for employers to provide appropriate safety equipment and training to all affected employees and for all employees working in or near an excavation worksite to closely adhere to established safety practices.  

Trenching and excavation operations create serious hazards that every employer should take seriously.

In addition to the moral and ethical reasons for adhering to excavation safety rules, municipalities need to know that VOSHA inspectors can stop and examine any suspicious looking excavation that they happen to pass. Thus, any employer that does excavation work can be subject to a VOSHA inspection and potential fines at a moment’s notice. VOSHA fines for unsafe excavations can run into the tens of thousands of dollars, creating a financial incentive that supplements the moral and ethical responsibility for each employer to provide a workplace that’s free from recognized safety and health hazards. 

Completing excavation work safely requires a number of skills, specialized equipment, and an understanding of what the regulations require. This article highlights some of the key requirements and also includes some PACIF guidance, based on our experience.  

We have listed some major requirements and best practices below to inform and/or remind our readers, in hopes that everyone will leverage this knowledge into safe excavation operations. For complete details on applicable regulatory requirements, refer to OSHA standards 1926.651 and 1926.652, which VOSHA has adopted verbatim. 

Trenching and excavation best practices and requirements include but are not limited to: 

  • Excavations must be overseen by a competent person. A competent person is one who has the knowledge and skills to evaluate and identify safety hazards and ensure the safe operation of the excavation process. That person must also have the authority to cease operations if uncontrolled hazards of any type are identified. 
  • Excavations that are four feet (4') or more in depth at any point must have means of egress that are within 25 feet (25') of employees. Ladders, stairs, or ramps may be used. Make sure ladders are rated for the weight of the employees using them.  
  • If the excavation has exposure to vehicular traffic, employees must wear appropriate Class II retroreflective garments and be protected by a properly designed and operated workzone, including traffic control if needed. Traffic and related vibrations also increase the risk for excavation collapse, which should be considered as part of evaluating excavation safety. 
  • Employees must be protected from excavated or other material (e.g., a spoils pile) and equipment that could pose a hazard by falling or rolling into the excavation. The best practice is to keep material at least two feet (2') away from the edge of the excavation. Heavy equipment, road traffic, etc. should be kept further away from the excavation to prevent accidental collapse. 
  • Unless the competent person is skilled in soil classification, all soil types should be considered as soil type C for the purpose of complying with excavation standards. Soil type C is the least stable soil type and therefore it requires the largest exposed opening when shielding or shoring systems are not used. It should be noted that soil that has been previously excavated is automatically classed as soil type C, as is any soil with evidence of water seepage or standing water. 
  • Any excavation that is five feet (5') deep or more at any point within the excavated area must be sloped and benched according to the soil type, or it must be properly shielded or shored. When using shielding systems, additional considerations include:  

- The system must be used in accordance with its engineered design. 

- It is permitted to excavate material as much as two feet (2') below the depth of the support system if the system is designed to resist the forces calculated for the full depth of the trench. The top of the trench box should be 18 inches (18") above grade. 

- Employees should not be in an excavation when shields or boxes are being installed, moved, or removed. When using gas-powered equipment or products that contain chemicals within the excavation, consider the potential for hazardous atmospheres to develop.  

- If shoring or shielding is not used, it is best to assume that soil type “C” exists and apply a slope or bench of 34 degrees (34°) or a run/rise ratio of 1.5:1. This will require significant enlargement of the excavation, e.g., a 34-foot (34') opening for a trench that is ten feet (10') deep and four feet (4') wide. 

- The open ends of trench boxes are often inappropriately left unprotected, thus subjecting employees who are in the excavation to soil collapse. Bulkheads should be used in these areas as needed to protect against this hazard. 

  • Trenching and excavation operations create serious hazards that every employer should take seriously. Employees should never enter an excavation that is unstable or deeper than five feet (5’) without adequately opening up the excavation or using appropriate shielding or shoring. Doing otherwise exposes employees to serious hazards and exposes the employer to serious fines.  

We encourage all VLCT members to get educated on how to perform excavations safely and exert safety discipline while performing these tasks. Our loss control staff is ready and willing to assist PACIF members with their education efforts and can meet with individual municipalities to answer questions about excavation practices. Additionally, Vermont Local Roads occasionally offers workshops on this topic. If you have questions, please reach out to your loss control consultant directly or contact us at losscontrol@vlct.org 

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