HomeMy WebLinkAboutResolutions - No. 86-81RESOLUTION NO. 86-81
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LODI
ADOPTING CITY OF LODI RISK AND INSURANCE
MANAGEMENT PROCEDURES
RESOLVED, that the City Council of the City of Lodi does hereby
adopt City of Lodi Risk and Insurance Management Procedures, a copy of
which is attached hereto marked Exhibit "A", attached hereto and
thereby made a part hereof.
Dated: May 21, 1986
I hereby certify that Resolution No. 86-81 was passed and
adopted by the City Council of the City of Lodi in a Regular
Meeting held May 21, 1986 by the following vote:
Ayes: Council Members - Olson, Pinkerton, Snider, and Reid
(Mayor)
Noes: Council Members - None
Absent: Council Members - Hinckman
ALICE M. REIMCHE
City Clerk
Exhibit "A1e
CITY OF LODI
SUBJECT: RISK & INSURANCE MANAGEMENT PROCEDURES
PROCEDURES
Through the establishment of annual program goals and objectives, the risk
management program activities will obtain the approval of the City Manager and
be implemented.
A. DUTIES OF CITY RISK MANAGEMENT COMMITTEE
The Committee will perform the following duties:
1. Develop and implement loss control programs which serve overall needs and
address specific requirements of individual facilities.
2. Conduct a continuous review of operations affecting insurance and risk
management including:
a. Analysis of exposures to update insured values and nature of risk;
b. Analysis of loss experience, reserves, and rate structure to adjust
cost or to determine need for new or revised forms of coverage; and
C. Analysis of loss experience to identify targets for loss -prevention
efforts designed to reduce the frequency and severity of loss.
3. Determine the type and levels of insurance required and purchase the
necessary insurance at an appropriate cost reflecting:
a. The operating conditions of the facilities and loss -prevention
activities of the city generally;
b. The quality and cost of services, overhead, and ccupensation of the
brokers and insurance companies;
C. The cost effectiveness of insurance vs. self-financing alternatives;
d. Cash flow considerations and accounting practices.
4. Conduct a continuous study of claims trending and activities, litigation,
legislation, insurance contract modification and changes in the insurance
market to accommodate improvements in risk management policies and
programs-
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5. Maintain contact with the insurance industry through brokers, direct
writers, and insurance carriers to obtain current data on market trends or
develognents which might affect the program.
6. Provide a consulting and support capability for management on all issues
relating to risk and insurance management including:
a. Assistance in the develogrent of language for contract and leases
regarding hold harmless, identification, and insurance requirements;
b. Submittal of recommendations to management for reduction or
elimination of exposures, including arranging for insurance company
inspection reports and surveys;
C. Assistance in the develogrent of claims procedures and assistance in
reporting and disposition of all significant losses.
7. Design, implement, and evaluate loss prevention and security measures.
8. Chair the vehicle accident review committee, monitor City safety
committees, and may call special committees.
9. Identify and allocate risk and insurance management costs to the
appropriate budget units.
10. Review claims experience data and project estimated claims costs for
budgeting.
11. Provide designated management personnel with an annual report summarizing
the status of the risk and insurance management program, emphasizing
recent or contemplated changes i.n the program and salient cost:
considerations.
1. Insurance Premiums
a. Insurance premiums for property, general liability, casualty,
fidelity are itemized expenses.
b. The broker of record will advise, if possible, 45 days in advance, an
estimate of the premium costs.
2. Claims Costs
a. Claims administrators will provide 30 days prior to contract renewal.
date any changes in the service fee and assist the City in
forecasting future claims costs, when possible.
b. There will be periodic transfers from the general fund to the public:
liability fund and workers' compensation budget based on claim
settlements and experience.
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C. Damage to City property which is not covered by insurance or falls
within a deductible amount shall be financed through a non-recurring
budget item for repairs and replacement for each department.
d. Recoveries from insurance companies, subrogation activities, SB 90
portion related to workers' compensation, interest fran self-
insurance funds and other related activities will be credited to the
appropriate fund.
e. Obtain claims cost and information from each department by loss.
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Exhibit "A"
CITY OF LODI
SUBJECT: RISK & INSURANCE MANAGE!= PROGRAM
To set forth a risk management program statement establishing centralized,
uniform procedures which maximize loss control services for workers'
compensation, safety and training, general liability, marine, vehicle,
hazardous materials, disaster planning and control, medical malpractice,
employee benefits funding, and other accidental exposures.
POLICY
It is the policy of the City of Lodi to reduce the cost of risk (defined as a
stun of insurance premiums, self-insured losses, loss control costs, and
administrative expenses) to a prudent mininuun through the application of the
risk management process.
The principal objectives regarding all risk of accidental losses are to:
- manage risk
- reduce potential loss
- provide funding in case of loss
- integrate management of risks into the overall City management process
Broadly stated, this program is designed to assure:
1. The protection of the City against the financial consequences of
accidental losses which are catastrophic in nature.
2. The preservation of all City assets and service capabilities from loss,
destruction, or depletion.
3. The reduction of the ultimate costs of claims through the identification,
prevention, control, and financing of all risks of accidental losses and
their consequences.
4. The creation and maintenance of a system of internal procedures providing
a constant re -assessment of exposures to loss, loss -bearing capacity, loss -
prevention programs, and available financing methods, including insurance.
5. The establishment, to the extent possible, of a work and service
environment in which employees, as well as the public, can enjoy safety
and security during the course of their association with the City of Lodi.
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�LMM
The City Manager is responsible for allocating Risk Management costs which
identify payment of property, casualty, fidelity, and any other insurance
premiums, self-insured claims, related equipment purchases, services fees for
claims and safety services, audits, and related expenses.
The successful implementation and maintenance of a risk and insurance
management program, based on the above -stated policy objectives, requires
continuous cooperation and interaction among management personnel.
RESPONSIBILITIES
The City Council, City Manager and administrative staff are ultimately
responsible to the taxpayers for insuring that adequate protection from
accidental loss is provided for all City assets.
The City Manager is responsible for developing and implementing loss control.
programs, periodically reviewing and evaluating the effectiveness of existing
programs and recom ending revisions to meet changing City needs; and for
fostering adherence to all adopted accident and loss control programs.
All managers/supervisors are responsible for advising the City Manager whenever
matters within their scope may expose the City to loss or will affect existing
risk and insurance management policies and procedures.
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