CC Resolution No. 7475
RESOWI'ION NO. 7475
A RESOWI'ION OF 'IHE CITY CXXJNCIL OF 'IHE CITY OF aJPERI'INO
APPROVING RISK MANAGEMENI' roLICY
WHEREAS, in 1986 CUpertino an:i twenty-four other cities formed the
AMG Plan; an:i
WHEREAS, part of the participation in the AMG Plan required the
adoption of a Risk Management Policy an:i implementation; an:i
WHEREAS, said policy has been a~ by the city Manager;
NCM, 'IHEREFORE, BE IT RESOLVED, that the Risk Management Policy,
attached hereto as Exhibit "A", is hereby approved.
PASSED AND AOOPl'ED at a regular meet:irq of the city Council of the
city of CUpertino this 2nd day of May, 1988 by the followirq vote:
Vote Members of the City Council
AYES: Johnson, Koppel, P1ungy, Rogers, Gatto
NOES: None
ABSENT: None
AærAIN: None
APPROVED:
/s/ John M. Gatto
Mayor, city of CUpertino
ATI'EST:
/s/ Dorothy Cornelius
City Clerk
RISK MANAGEMENT POLICY
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It shall be the policy of the (MEMBER TOWN OR CITY NAME)
preserve its human, physical and financial resources from
risk of accidental loss. The maj or goals of this
management policy are:
to
the
risk
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To eliminate or reduce the risk of loss;
To apply responsive claims management techniques to losses
that do occur; and
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To protect the city budget from catastrophic losses, or an
annual accumulation of 10ssee;, that would cause financial
hardship. Catastrophic loss is defined as any loss in
excess of $1 million.
Overall responsibility for the risk management program shall lie
with the city manager. The risk management program shall be
directed by the city risk manger. Risk management shall be the
responsibility of each department manager.
The first aspect of the risk management program is a systematic
process to identify, measure and control loss exposures. A
citywide hazard identification system will be implemented by the
risk manager to quickly identify hazardous conditions and effect
repairs. All employees shall be encouraged to notify their
supervisor, department head or the city risk manager of any
condition that may expose someone to injury or damage.
The second aspect of the risk management program is a responsive
claims administration system. The risk manager will review all
incident reports and claims and will notify ABAG PLAN and their
adjustment firm in a timely manner of all serious accidents or
claims. Department heads and supervisors will review all
accident reports, incident reports and claims affecting their
organizations and provided timely information to the risk manager
and ABAG PLAN's appointed adjustment firm.
The third aspect of the risk management program is the transfer
of the city's risk of loss to others whenever possible and
practical. The risk manager will develop a risk transfer
process that assures the use of hold harmless and indemni ty
clauses in all city agreements, contracts, leases , permits,
purchase orders and rental agreements, and the use of insurance
clauses that provide adequate protection to the city, within the
judgment of the city manager.
An accident review process shall be implemented by the risk
manager to review all accidents, incidents and claims to
determine their cause, preventability, method to prevents future
occurrences, and claims and litigation defense strategy. The
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review process should be conducted periodically, as needed, but
no less that quarterly.
A safety review process shall be implemented by the risk manager
to discuss safety issues and get feedback from city employees on
how to make city operations more safe. The safety review process
shall take into account standard industrial safety practices and
safety orders issued by state agencies. The review process
should be conducted periodically, but not less than quarterly.
The city will establish deductible and self-insurance retention
limits consistent with its financial resources. The city will
set reserves on all self-insured losses to recognize the expected
future cost, and appropriate funds to cover all self-insured
liabilities.
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Insurance for risks with catastrophic loss potential shall be
purchased whenever it is economically feasible, within the
judgment of the city manager.
The risk manager shall be the city's liaison with ABAG PLAN,
insurance brokers and insurance underwriters, and shall negotiate
and purchase all of the city's insurance coverage subject to City
Manager's approval.
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