HomeMy WebLinkAboutReso. 1986 - 330 - Approving and adopting a risk management policy • • .
RESOLUTION NO. et -i..10
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING AND ADOPTING A RISK MANAGEMENT POLICY.
WHEREAS, the City of Redding has been self-insured for most
accidental loss for more than a year, and it is expected that the
City will continue to be self-insured for the foreseeable future;
and
WHEREAS, it is the intent of the City of Redding to reduce
all risks of accidental loss and manage its potential losses in a
cost-effective fashion;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Redding that the following statement of risk management
policy be adopted:
CITY OF REDDING
RISK MANAGEMENT POLICY
1 . Purpose
The City' s policy with respect to all risks of accidental
loss shall have as its purpose:
a) To protect the City of Redding against the financial
consequences of all accidental losses.
b) To minimize the long-term cost of the City of all
activities related to the control of accidental losses.
2. Loss Prevention
The City' s policy shall be to emphasize the reduction,
modification, or elimination of conditions and practices
• •
which may cause loss . Safety to personnel and the public
shall have the highest priority. Each department head shall
be responsible to see that his operations conform to Federal,
State, County and City safety standards. Property shall be
protected to the extent that the reduction of hazard is
greater than the cost of protection.
3. Risk Manager
It is the City' s intention to hire or appoint a staff person
to the position of Risk Manager, and make substantial
progress toward that goal by July 1 , 1987 . The Risk Manager
shall have authority and responsibility for risk management
functions, loss prevention activities coordination and
oversight of safety activities , and necessary related
activities. The acquisition or appointment of a Risk Manager
shall be carried out under the direction of the City Manager,
with the assistance of the City Attorney' s office. Until the
position of Risk Manager is filled, the City Attorney' s
office, and particularly the Deputy City Attorney, shall be
responsible for risk management functions and oversight of
those activities and responsibilities which shall be assumed
by a Risk Manager.
4. Risk Management Function
The Risk Manager shall have authority and responsibility for:
a) Identification and measurement of all liability losses.
b) Purchase of insurance when necessary or desirable.
c) Assistance to the City Treasurer and Director of Finance
with allocation of insurance premiums, uninsured losses,
and other risk costs of the budgetary units .
d) Adjustment of all property losses and liability claims.
e) Maintenance of an accurate system for recording losses,
claims, insurance premiums, and other risk-related
expenses.
f) Coordination of all the City' s risk-related activities.
5. Risk Retention
With regard to risk of accidental loss, it shall be the
City' s policy to self-assume all losses:
-2-
• •
•
a) Which occur with predictable frequency, or
b) Which will not have a significant impact on the City' s
fiscal position.
As a general guideline, losses which do not exceed $500 , 000
per occurrence will not be insured (or pooled with other
cities) .
Exceptions to this guideline shall be allowed:
a) Whenever insurance is a cost-effective alternative to
self-assumption of losses, and deductibles or non-
insurance do not result in long-term economies.
b) Whenever necessary services can be obtained only by a
purchase of insurance.
c) When the City is obligated by contract or law to
purchase insurance and no other method is available.
d) When a higher level of risk retention proves both
prudent and fiscally sound.
To provide for self-assumed losses , the City shall maintain
no less than $1 , 000 , 000 in reserve in its self-insurance
fund.
6. Purchase of Insurance
a) All insurance by the City of Redding shall be purchased
by the Risk Manager.
b) Insurance (or pooled protection) , with limits equal to
the amount subject to loss, shall be purchased in a
manner consistent with the above guidelines for risk
retention.
c) Insurance (or other forms of risk finance) shall be
purchased from any source determined to be in the
long-term best interests of the City of Redding.
I HEREBY CERTIFY that the foregoing Resolution was introduced
and read at a regular meeting of the City Council of the City of
-3-
. .
% R.` 111 III
w
Redding on the 15th day of December , 1986 , and was duly adopted
at said meeting by the following vote:
AYES : COUNCIL MEMBERS: Carter, Gard, Johannessen, & Fulton
NOES: COUNCIL MEMBERS : None
ABSENT: COUNCIL MEMBERS: Dahl
ABSTAIN: COUNCIL MEMBERS: None
LEE D. FULTON, M.D. , Mayor
City of Redding
ATT�ESST: 6
tr
ETHEL A. NICHOLS, City Clerk
FOR PPR� �
O�VED:
/
RAI$DALL A. HAYS, City Attorney
-4-