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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 I' 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 , . , ,~ To eliminate or reduce the risk of loss; To apply responsive claims management techniques to losses that do occur; and r 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 1 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. f I ~, ! , ; , 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. 2