CC Resolution 10816
RESOLUTION NO. 10816
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL ADOPTING A
RISK MANAGEMENT PROGRAM FRAMEWORK
WHEREAS, the City of Campbell is a member of the Association of Bay Area
Governments Pooled Liability Assurance Network (A BAG PLAN) which provides risk
management administration and services to the City for its property and general liability,
and
WHEREAS, it is the intent of the City of Campbell to provide a safe environment for
its residents, businesses and visitors to enjoy through sound risk management practices,
and
WHEREAS, ABAG PLAN has implemented risk management performance
standards which are intended to benefit all members by ensuring adherence to
recommended best practices that will ultimately result in lower frequency and severity of
losses from claims to individual members, and
WHEREAS, the City of Campbell will benefit from adherence to the new
performance standards that will enhance its ability to minimize risk of loss to the City, and
WHEREAS, the City has an existing Injury and Illness Prevention Program geared
toward occupational safety of its employees and reduction of risk which is coordinated
through a Safety Committee comprised of City management staff, and
WHEREAS, it is the intent of the City that this Safety Committee be designated to
review all general liability accidents, claims and losses of the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Campbell does hereby adopt a risk management program to preserve its physical and
financial resources from the risk of loss. The major goals of this risk management program
are:
· To eliminate or minimize the City's risk of loss in the area of property and general liability
and to minimize the conditions that lead to such losses
· To manage its risk through a combination of funded self-insurance and/or transfer to a
financially sound insurer
· 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. Catastrophic loss is defined as any loss in
excess of $1 ,000,000.
Risk ManaQement Policies
· The risk management organization structure is designed to utilize the knowledge, skills
and experience of City employees to identify, evaluate and coordinate various risk
exposures.
. 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 Risk Manager of any
condition that may expose someone to injury or damage.
. 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 its
claims adjuster, 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 department, and provide timely information to the Risk Manager and ABAG PLAN's
appointed claims adjuster.
. The risk management program seeks to 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 indemnity 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 Risk Manager.
Accident Review Process
An accident review process shall be implemented by the Risk Manager to review all
accidents, incidents and claims to determine their cause and methods to prevent future
occurrences. The review process should be conducted periodically, as needed.
Insurance
The City will establish self-insurance retention limits consistent with its financial resources.
The City will establish reserves on all self-insured losses to recognize the expected future
cost, and appropriate funds to cover all self-insured liabilities.
Insurance for risks and catastrophic loss potential shall be purchased whenever it is
economically feasible, within the judgment of the Risk Manager.
Overall responsibility for the risk management program rests with the City's Finance
Director/Risk Manager. However, day-to-day risk management shall be the responsibility of
each department manager. The Risk Manager shall be the City's liaison with the ABAG
PLAN and its claim administration program.
PASSED AND ADOPTED this 18tldayof Sept. ,2007, by the following roll call vote:
AYES:
NOES:
ABSENT:
COUNCILMEMBERS:
COUNCILMEMBERS:
COUNCILMEMBERS:
Kennedy, Hernandez, Low, Burr, Furtado
None
None
APprov~:~~ ~
aniel E. Furtado, Mayo
~
ATTEST: .., ---
Anne Bybee, City Clerk