CC Resolution No. 06-187
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:
Lowenthal, Wang, Kwok, Mahoney, Sandoval
None
None
None
ATTEST:
APPROVED:
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Mayor, City of Cupertino
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.
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.