17 ABAG Risk Mgmt
City Hall
10300 Torre Avenue
Cupertino, CA 95014-3255
Telephone: (408) 777-3213
FAX: (408) 777-3109
CITY OF
CUPEIUINO
Human Resources
SUMMARY
Agenda Item No. J 1
Meeting Date: November 6, 2006
SUBJECT AND ISSUE
Consider adopting recommendations from ABAG PLAN to enhance the City's Risk
Management Program:
A. Adopt Resolution No.0lI~/8! A Resolution of the City Council of the City of
Cupertino Adopting a Risk Management Policy.
B. Conduct the first reading of Ordinance No~-(qB~ An Ordinance of the City
Council of the City of Cupertino Adding Chapter 1.18 to the Municipal Code
Regarding the Administration of Claims.
BACKGROUND
The City of Cupertino purchases general liability, errors & omissions and property
insurance coverage from the Association of Bay Area Governments Pooled Liability
Assurance Network (ABAG PLAN). For fiscal year 2006/07, ABAG is offering risk
management grants to member agencies that implement best practice recommendations.
Cupertino is eligible for a grant of$9,600.
To enhance the City's risk management program and meet ABAG grant requirements,
the attached risk management policy (Exhibit A) was developed. The proposed policy
establishes goals for reducing the risk of accidental loss and for applying responsive
claims management practices. In addition, the policy defines management and employee
responsibilities and establishes a systematic review of all significant accidents, incidents
and claims.
ABAG is also recommending the attached ordinance regarding the administration of
claims. The ordinance establishes a claims filing procedure and a one-year statute of
limitations for damage claims against the City that are currently exempted by
Government Code Section 905. This procedural requirement provides the City with an
opportunity to investigate claims in a timely manner and provides an additional defense
against certain claims submitted beyond the statute of limitations.
RECOMMENDATION
Staff recommends that the City Council adopt Resolution No.O(P~/81 and conduct the first
reading of Ordinance No.O(rl<1eeas described herein.
Printed on Recycled Paper
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Submitted by:
dlk
Sandy Abe
Human Resources Director
Approved by:
(~
David W. Knapp
City Manager
2
17,.2.
DRAFT
RESOLUTION NO. 06-187
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ADOPTING A RISK MANAGEMENT POLICY
WHEREAS, the City of Cupertino is a member of the Association of Bay Area
Governments Pooled Liability Assurance Network (ABAG PLAN); and
WHEREAS, the ABAG PLAN Board of Directors encourages each member agency to
adopt a Risk Management Policy outlining goals to achieve the preservation of the City's human,
physical and financial resources from the risk of accidental loss;
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cupertino
hereby adopts a Risk Management Policy, a copy of which is attached as Exhibit A.
PASSED AND ADOPTED at a regular City Council meeting of the City of Cupertino this
6th day of November 2006 by the following vote:
VOTE:
MEMBERS OF THE CITY COUNCIL
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
APPROVED:
City Clerk
Mayor, City of Cupertino
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Resolution No. 06-187
Exhibit A
RISK MANAGEMENT POLICY
It shall be the policy of the City of Cupertino to preserve its human, physical and financial
resources from the consequences of accidental loss, natural or man-made disaster.
Risk Management Goals
The major goals of this risk management policy are:
. To reduce or eliminate the risk of loss.
. To apply responsive claims management techniques to losses that do occur.
. To protect the City budget from catastrophic losses, or an annual
accumulation of losses, that would cause financial hardship.
Responsibilities
. The City Manager is responsible for the overall risk management program.
. The Human Resources Director is responsible for day-to-day administration of the City's
insurance coverage, claims processing, and risk control programs.
. All employees are responsible for notifying their supervisor, department head, safety
committee member or human resources if they discover a condition that exposes
employees, members of the public or their property to injury or damage.
. Each department head is responsible for ensuring compliance to the risk management policy
requirements stated herein.
Insurance Coverage
. Insurance for risks with catastrophic loss potential shall be purchased whenever it is
economically feasible and prudent, within the judgment of the City Manager.
. Deductibles and self-insurance retention limits shall be established at amounts
consistent with the City's financial resources.
. Reserve accounts shall be maintained as restricted funds to cover costs associated with
self-insured liability.
. All employees who use their personal vehicles to conduct City business must provide
proof of insurance to Human Resources every six months, prior to the expiration date
of their coverage. The amount of coverage must meet or exceed California DMV
requirements.
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Resolution No. 06-187
Accident Investigation & Claims Administration
. The City Manager and department heads will review all major accidents, incidents and
claims. The review process shall be conducted periodically as needed but not less than
quarterly.
. Human Resources will review all incident reports and claims and will notify the
appropriate claim administrator in a timely manner.
. Managers and supervisors will review all accident reports, incident reports and claims
within their area of responsibility to identify and implement appropriate methods for
preventing future occurrences. Each manager and supervisor will ensure that requested
information is provided to Human Resources and/or appropriate adjustment firms in a
timely manner.
Contractual Liability
. Liability will be transferred to others whenever appropriate, possible and practical. This
includes the use of hold harmless and indemnity clauses in all City agreements,
contracts, leases and rental agreements, and the use of insurance clauses that provide
adequate protection to the City.
. The City Attorney, in consultation with the Human Resources Director and the program
administrator of the City's liability insurance provider, shall review indemnity
requirements for all City public works projects, contractors, facility users and other
parties with whom the City contracts.
. The specific department head and/or project manager shall be responsible for ensuring
that certificates of insurance and endorsements have been obtained and maintained per
the contract or agreement. -
Safety Committee
. The Safety Committee will meet quarterly to discuss safety issues and get feedback from
employees on how to improve safety in City operations.
. The safety committee shall take into account standard industrial safety practices and safety
orders issued by State agencies..
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DRAFT
ORDINANCE NO. 06-1988
AN ORDINANCE OF THE CUPERTINO CITY COUNCIL
ADDING CHAPTER 1.18 TO THE MUNICIPAL CODE
REGARDING THE ADMINISTRATION OF CLAIMS
Chapter 1.18
CLAIMS AGAINST THE CITY
1.18.010 Authority.
This article is enacted pursuant to Section 935 of the California Government Code.
1.18. 015 Claims required.
All claims against the City for money or damages not otherwise governed by the Tort
Claims Act, California Government Code Sections 900 et seq., or otherwise State law
(hereinafter in this division, "claims") shall be presented within the time, and in the manner,
prescribed by Part 3 of Division 3.6 of Title 1 of the California Government Code (commencing
with Section 900 thereof) for the claims to be which that part applies by its own terms, as those
provisions now exist or shall hereinafter be amended, and as further provided by this article.
1.18.020 Form of claim.
All claims shall be made in writing and verified by the claimant or by his or her guardian,
conservator, executor or administrator. No claim may be filed on behalf of a class of persons
unless verified by every member of that class as required by this section. In addition, all claims
shall contain the information required by California Government Code Section 910.
1.18.025 Claim prerequisite to suit.
In accordance with California Government Code Section 935(b) and 945.6, all claims
shall be presented as provided in this chapter and acted upon by the City Manager prior to. the
filing of any action on such claims, and no such action may be maintained by a person who has
not complied with the requirements of this chapter.
1.18.030 Suit.
Any action brought against the City of Cupertino upon any claim or demand shall
conform to the requirements of Section 940-949 of the California Government Code. Any action
brought against any employee of the City of Cupertino shall conform with the requirements of
Section 950-951 of the California Government Code.
1'1,~
Ordinance No. 06-1988
INTRODUCED at a meeting of the City Council of the City of Cupertino the 6th day of
November, 2006 and ENACTED at a regular meeting of the City Council of the City of
Cupertino the of 2006, by the following vote:
Vote:
Ayes:
Noes:
Absent:
Abstain:
Members of the City Council
ATTEST:
APPROVED:
City Clerk
Mayor
2
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