HomeMy WebLinkAboutReso 95-243 - Amending Risk Mgmt Policy No. 203 . .. . •
RESOLUTION NO. 95-�.3
�� A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING AMENDING RISK MANAGEMENT POLICY NO. 203.
WHEREAS, on December 15, 1986, by Resolution 86-330, the City Council of the City of
Redding adopted Risk Management Policy No. 203; and
WHEREAS, the City Council wishes to update the policy to reflect more fully the current
responsibilities and practices of the Risk Management Office and to revise claims settlement authority;
and
WHEREAS, a copy of the proposed amendment is attached hereto and made a part hereof;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council that the City's
Policy 203 entitled Risk Management is amended as set forth in Council Policy 203 attached hereto.
I HEREBY CERTIFI' that the foregoing Resolution was introduced, read, and adopted at a
regular meeting of the City Council on the 7th day of November, 1995, by the following vote:
AYES: COUNCIL MEMBERS: P. Anderson, R. Anderson, McGeorge, Murray and Kehoe
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
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DAVID . HOE, Ma or
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ATTEST: FORM APPROVED: �i
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CONNIE STROHMA , Ci y Clerk W. LEONARD WIN ATE, City Attorney 'v�
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CI TY OF F�EDDING, CALIFORN/A
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
��i.sk Manag�ment l�olicy 86--330 203 12/15/86 1
BA�KGRnLTND
�ity Council established its Risk Management Policy on December
15, 1986. It describes the authority and responsibility of the
R.isk Manager and provides guidelines in accardance with which its
loss prevention, insurance and self-insurane.e programs shota.ld. be
administer.ed. It sets as its goal. the reduction of al1 risks of
accidental loss and the management af losses in a cost effective
manner.
It is the intentian of Council to ugdate tha�t policy to reflect.
more fully the current respans.ibilities and praetices of the Risk
Management Office and to revise claim settlement authori.ty.
PURPOSE
The City' s Risk Management Policy shall have as its purpase:
1 . To protect the City against the financial consequences.
of all accidental losses.
2 . To minimize the long-term costs of all activiti.es
related to the control of accidental losses..
These goals sha11 be attained by means such a� loss prevention,
loss financing, claims administration, insurance administration,
and risk transfer. The Risk Manager shall be primar_i1y responsi-
ble f or the implementation. of this paliGy.
POLICY
Loss Prevention
The City, in all of its activities, shall emphasize the reduc-
tion, modification or eli.mination of conditian:s and. prac.tic�s.
which may cause lass. Safety to persannel and the public. shall..
have the highest priority. Each department director shall.
therefore make safety issues an integral part af his/her manage-
ment responsibilities and ensure compliance wi�.h Federal, State,
County, and City safety standar.ds. The Risk Manager shall assist
them in that effort and work with the Personnel Office to provide
safety training pragrams for. employee:s and c.itizens.
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CI TY OF f�EDDINC, CAL/FORN/A
Council Policy
SUBJECT Resolution Policy Effective
Number Number Date Page
Risk Management Policy 86-330 203 12/15/86 2
Loss Financing
The City �elf-insures i.ts warkers' compensation and liability
claims proyrams, and must therefore pay all losses up to the
respective self-insurance retentions. It is the policy af the
City to pre-fund the outstanding liabilities af those programs in
order to reduce the risk to its current operating budget: and
assets, and. ensure with greater probability that it will. have
sufficient funds available in the event af a catastrophic. loss
or an une�ecte� increase in the fregu.ency or severi.ty of claims
or litigatian. To that end, the City shall strive to fund eaeh
program in such a manner so as to maintain a minimum 70% confi-
dence level, based on periodic actuaria�. reviews.
Claims Administration.
The Risk Manager shall coordinate all activities of the City' s.
self-insured workers' compensatian and general liability claims.
programs in close coaperati.an. and. consultation.. with. the Personnel.
Office and the City Attorney' s Office. Chief among those
activities is the prompt and effecti�e assistance to those
employees legitimately injured on the job. The Risk Manager shall
work directly with City degartments and the cl.aims administra.tors:.
to minimize the costs of those claims by:
1 . Informing department directors as to their clairns:
experience so that efforts can be implemented� to
prevent future losses.
2. Working with departmen� directors to set goals for the
control and reduction of the frequency and. severity af
claims and all costs as:socia�.ed with them.
3 . Assisting departments in providing general claims.
information to their employees so that they are aware
of the costs associated with their actions..
4 . Keeping abreast of each and every claim, working
together with the Human Resources Manager and City
Attorney to vigarously fight cases af abuse and. fraud.
5. Assisting departments in establishing light duty
programs so that injurecY emplayees can return to work
as soon as practicable.
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�OUnCI� �O�IC�/
SUBJECT Resolution Policy Effective
Number Number Date Page
Risk Management Policy 86-330 203 12/15/�36 3
6 . W�rking with the Human Resources Manager to abtain. a
seeand medical opinion, as appropriate, in those
work�rs' compensatian claims where abuse is sus�ected..
City staff shall ha�e the authority to settle liability claims,
as follows:
Risk Manager Up to $ 5,000
City Attorney Up to $10 ,0a0
City Attorney and
�ity Manager Up to $25,000
Cit�r Council Over $25,000
City staff shall have the authority to settle workers` compensa-
tiori claims based on their total estimat�d cost to the City, as
follows:
Risk Manager Claims with total costs.
less than $35,000
Administrative Service:s
Direetor, with the agreement
of_ the City Attorney and
Human Resour.ces Manager Claims with total costs
over $35, 000
Cit�r staff sha11 have the authority ta settle prapert� claims af
the City against its property insurance carrier , as fol.lows:
Risk Manager, with the
agre�m�nt of the City
Attorney and the Director
t�f th� department involved All Losses in Any Amount
Any claim, the resolution of which may have the effect of
creating or changing a risk managemen.t or other operating policlr
c�r philasophy of the City, sha11 be referred to the Cit�r Council.
Insuranee Adrninistration
With r.egard to the risk of accidental. loss, it shall be the
City' s poZicy to self-insure all losses which occur with predict-
able frequency or which will not have a significan�: imgact on the
City' s financial position. Insurance will be purchased, hawever,
when: �
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C/TY OF f�EDDIN , CALIFORnIIA
Council Policy
SUB.IECT Resolution Policy Effective
Number Number Date Page
Risk Management Policy 86-33Q 203 12/15/86 4
1 . It is a cost-effective alte�rnative to self-insurance.
and deductibl�s or self-insurance does not resul.t in
long term eeanamies.
2. Wheneve.r necessary services can be obtained only by the
purchase of insuranc:e.
3 . WhPn the City is abligated by contract or law to
purchase ins�urance and no other method is available..
Insurance (or other forms of risk finan.ce) sha11 be purchas:ed
frnm any source determined to be in the long-term best interests
of the City.
Risk Transfer
Because they are in the best position- to control. losses., the City
shall attempt to transfer the risks of accidental losses. to those
parties performing services far the City or leasing or using its
facilities.. The transfer of risk. shall occur by means. of
insuranee requirements and hold harmless and indemnificati.on
clauses in contracts, purchase_ orders, and lease or rental
agreements. The transfer of risk shall be based on genexally
accepted risk management practice for public agencies and sound.
1.�gal advice.
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