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Resolution 2006-13RESOLUTION 2006 -13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GILROY ADOPTING RISK MANAGEMENT GOALS AND DIRECTING STAFF TO PREPARE A RISK MANAGEMENT PROGRAM WHEREAS, it is the intent of the City of Gilroy to provide a safe environment for its residents, visitors, and employees in which to live and work. WHEREAS, the City of Gilroy is a member of the Association of Bay Area Governments pooled liability assurance network (ABAG Plan), and WHEREAS, ABAG Plan is recommending a risk management program be established in each public agency to establish risk management goals, and policies, and NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Gilroy does hereby adopt the following five risk management goals to preserve its human, physical and financial resources: • To identify, evaluate, eliminate or reduce the risk of loss. • To apply responsive claims and post accident/injury 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, or significantly impact the City's ability to provide one or more essential services. • To avoid or contractually transfer the City's risk of loss to others whenever possible and practical. • To actively monitor and measure the impact of the City's Risk Management programs and keep Council and City Management apprised. NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Gilroy hereby adopt a Risk Management Policy, a copy of which is attached. NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Gilroy hereby endorses the establishment of a risk management program and directs staff to develop such risk management program in concert with the ABAG Plan, and consistent with the above five risk management goals. The risk management program should include policies, procedures and annual objectives to reduce the exposure of the City of Gilroy to risk of loss. RESOLUTION NO. 2006 -13 -1- PASSED AND ADOPTED this 27th day of February, 2006 by the following vote: AYES: COUNCILMEMBERS: ARELLANO, BRACCO, CORREA, GARTMAN, VALIQUETTE, VELASCO, and PINHEIRO NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE APPROVED: lbert Pinheiro, Mayor ATTEST: JC t— Rhonda Pellin, City Clerk RESOLUTION NO. 2006-13 -2- CITY OF GILROY RISK MANAGEMENT POLICY _-Itshallbeth e po icy o t e rty o i rho preserve its um and financial from-the-risk of accidental-loss. Risk Management Goals The major goals of this risk management policy are: • To identify, evaluate, eliminate or reduce the risk of loss. • To apply responsive claims and post accident/injury 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, or significantly impact the City's ability to provide one or more essential services. • To avoid or contractually transfer the City's risk of loss to others whenever possible and practical. • To actively monitor and measure the impact of the City's Risk Management programs and keep Council and City Management apprised. Responsibilities • City Council: The City Council shall support the risk management effort through setting policy in accordance with its Resolution No. 2006 -_ • City Administrator: The City Administrator shall have overall responsibility for the risk management program and for assigning responsibilities to the City staff. He shall be responsible for the City's disaster preparedness program. He shall serve as the City's alternate member on the boards of insurance JPAs to which the City belongs and/or as alternate liaison to the City's insurance brokers, carriers, and claims administrators. • Risk Manager: The Risk Manager shall have responsibility for the day -to -day administration of the City's risk coverage, claims processing, and safety training program (non -sworn personnel). The Risk Manager shall serve as: board member of insurance JPA's to which the City belongs; liaison to the City's insurance brokers, carriers, and claims administrators; and chairperson of the Safety Committee and Accident Review/Risk Management Committee. The Risk Manager shall serve as an advisor to the City Administrator, Department Heads, City staff, and City Council on risk - related matters. • Police Chief: The Police Chief shall have responsibility for the day - today administration of the Police Department's risk management program and safety training program for sworn personnel and non -sworn employees of the police department. The Chief of Police, or designee, shall serve on the Accident Review/Risk Management Committee and will appoint a member of the police department to the Safety Committee. • Fire Chief: The Fire Chief shall have responsibility for the day -to -day administration of the Fire Department's risk management program and safety training program for all employees of e ire ep. a -n The Fire CWief, or designee, shall serve on the Accident Review/Risk Management Committee and will appoint a member of the fire .. _ department to the Safety Committee. • Supervisors, Managers, and Department Heads: All supervisors, managers, and department heads have responsibility for safety and risk management. All supervisors, managers, and department heads will be trained in accident investigation and reporting and will ensure that safety programs are implemented, promoted, and followed by staff under their supervision. Organization of Safety Committee and Accident Review /Risk Management Committee • The Safety Committee is responsible for keeping the City's Illness and Injury Prevention Program (IIPP) up -to -date and for making policy recommendations regarding the safety and health of City employees. The committee members are responsible for the development of safety programs, employee training programs, inspection of work areas, and review of safety suggestions. The Committee's organization and duties are prescribed in the City's IIPP. • The Accident Review/Risk Management Committee is responsible for reviewing employee injury reports and investigations, property damage reports and investigations, and liability claims filed against the City of Gilroy. The committee shall look for the cause of the accident, damage, or claim with the goal of recommending ways to prevent similar accidents, damage, or claims in the future. Where appropriate, the committee shall determine if an employee was at full fault, partial fault, or no fault as it relates to an employee injury or damage to City property. Again, the goal is to make recommendations and provide training and education to prevent similar accidents or damage in the future. With respect to claims from the public, the committee shall look for the cause of the accident and what can be done to prevent future similar claims. • Meetings shall be held at least quarterly, and minutes prepared of the proceedings. Accident Investigation & Claims Processing • Work - related injuries and illnesses shall be investigated as prescribed in the City's IIPP. • Vehicle collisions, citizen injuries, or theft/vandalism shall be investigated by the Police Department with the full cooperation and assistance of other departments, as needed. • Property and equipment damage shall be investigated by the supervisor and manager. • Department heads and supervisors shall review all employee injury reports and property /equipment damage reports affecting their departments and provide timely information to the Risk Manager. • Department staff will provide timely responses to requests for information from the Risk Manager and the City's claims adjustor or legal counsel related to liability claims. • The Risk Manager shall keep the City Manager apprised of all incidents and claims. • The Risk Manager shall be responsible for all paperwork & documentation of claims and OSHA reporting. Hazard Identification Program • Hazards in the workplace are covered by the City's IIPP. 1 employees — - w owor m e e _ are_responsi a or identifying ymg an r __ - hazards to their manager, any department head, the Risk Manager, the City Administrator, or member of the Safety Committee or Risk Management/Accident Review Committee. • The Risk Manager shall work with the appropriate department heads and managers to formally document established and proven safety programs of the City. Insurance Coverage, Litigation, and Settlement Authori ty • General Liability. The City shall maintain a self - insured retention limit, with primary and excess coverage being purchased in appropriate amounts consistent with the City's financial resources. The City shall maintain a reserve account as a restricted fund to cover the self-insured liability. • Property. The City shall maintain insurance sufficient to cover the replacement cost of its real and personal property, with appropriate deductibles. • Employee Crime/Errors and Omissions. The City shall maintain coverage for employee crime /errors and omissions with appropriate deductibles. • Workers' Compensation. The City shall maintain an appropriate insured retention plan for workers' compensation. The City shall maintain a self-insured retention limit, with primary and excess coverage being purchased in appropriate amounts consistent with the City's financial resources. The City shall maintain an appropriate reserve to cover the self - insured liability. • Claims administration. The City shall use outside professional claims management for all of its insurance claims. Contractual Liability • The City Attorney, in consultation with the Risk Manager and the program administrator of the City's liability insurance provider, shall be responsible for determining indemnity requirements for all City public works projects, City contractors, facility users, and providers not described above. The specific department head and manager shall be responsible for ensuring that certificates of insurance and endorsements have been obtained and maintained per the contract or agreement and for forwarding this information to the Risk Manager. The Risk Manager shall maintain files for certificates of insurance and endorsements required from such entities. Risk Management Policy Review The City Administrator shall cause this policy to be reviewed every three years to review the effectiveness of the policy and provide any recommendations for amendment. Jay Baksa, City Administrator Date Effective Date: Review Date: I, RHONDA PELLIN, City Clerk of the City of Gilroy, do hereby certify that the attached Resolution No. 2006 -13 is an original resolution, or true and correct copy of a city resolution, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 27th day of February, 2006, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 7th day of February, 2006. City Clerk of the City of Gilroy (Seal)