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RESOLUTION NO. 78-113
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF UKIAH ADOPTING RISK ~NAGEMENT POLICY
WHEREAS, the City of Ukiah has joined other municipal
corporations and formed an insurance pool and
WHEREAS, it is appropriate to have a uniform policy
of risk management,
NOW, THEREFORE, the City Council of the City of Ukiah
RE SOLVE S:
That the attached risk management policy is adopted
as the policy of the City of Ukiah.
PASSED AND ADOPTED this 21st day of June
1978, by the following roll call vote:
AYES: Councilmembers Hickey, Myers, Simpson, Snyder, Mayor Brannon
NOES: None
ABSENT: None
ATTEST:
City Clerk
CITY OF UKIAH
RISK MANAGEMENT POLICY
1. Purpose
The City's policy with respect to all risks of accidental
loss shall have as its purpose:
a) To protect the City of Ukiah against the financial
consequences of accidental losses which are
catastrophic in nature.
b) To minimize the long term cost of the City of all
activities related to the control of accidental losses.
2. Loss Prevention
The City's policy shall be to emphasize the reduction,
modification, or elimination of conditions and practices
which may cause loss. Safety to personnel and the public
shall have the highest priority. Each department head
shall be responsible to see that his operations conform
to federal, State, County and City safety standards.
Property shall be protected to the extent that the reduc-
tion of hazard is greater t~.an the cost of protection.
Safety activities shall be under the responsibility of
the department head, but all loss prevention activities,
including safety, shall be coordinated with the City Safety
COmmittee,who in turn, shall be responsible to the City
Manager.
3. Risk Management Function
The City Manager shall have authority and responsibility
to see that the following activities are accomplished:
a) Identification and measurement of all risk accidental
loss.
b) Purchase of insurance when necessary or desirable.
c) Allocation of insurance premiums, uninsured losses,
and other risk costs of the budgetary units.
d) Adjustment of all property losses and liability claims.
e) Maintenance of an accurate system for recording
losses, claims, insurance premiums, and other
risk-related expenses.
f) Coordination of all the City's risk-related activities.
4. Risk Retention
With regard to risk of accidental loss, it shall be the
City's policy to self-assume all losses:
a) Which occur with predictable frequency, or
b) Which will not have a significant impact on the City's
fiscal position.
As a general guideline, losses which do not exceed
$25,000* per occurrence will not be insured (or
pooled with other cities).
Exceptions to this guideline shall be allowed:
a) Whenever necessary services can be obtained only by
a purchase of insurance.
b) When the City is obligated by contract or law to
purchase insurance and no other method is available.
c) When a higher level of risk retention proves both
prudent and fiscally sound.
d) When deductibles or non-insurance do not result in
long-term economies.
5. Purchase of Insurance
a) Ail insurance by the City of Ukiah shall be purchased
by the City Council.
b) Insurance (or pooled protection) with limits equal
to the amount subject to loss shall be purchased:
-- When the potential loss exposure exceeds the
retention level previously stated, and
-- When such insurance is available on a fiscally
sound basis.
c) Insurance (or other forms of risk finance) shall be
purchased frcm any source determined to be in the
long-term best interests of the City of Ukiah.
* .01% of current operating budget (rounded to the highest
$5,000 multiple) is suggested.