1.05.001_Risk Management PolicyROHNERT PARK
MANUAL: Policy and Procedure
SECTION: General Government
SUBJECT: R;Gk Manngpmpnr P�11 yv
Policy #: 1.05.001
Type: City Council
Effective Date: 1979
Former Policy #: 490.01
No.
City Manager's Approval
City Council Approval Resol. 79-52
Prepared By
Distribution
Effective Date 3/26/79
Revision Date
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROYNERT
PARK ADOPTING A RISK MANAGEMENT POLICY
WHEREAS, the City of Rohnert Park has joined other municipal corpora-
tions and formed an insurance pool being administered by a joint powers
entity, to wit, The Redwood Empire Municipal Insurance Fund, and
WHEREAS, it is appropriate for all agencies in the pool to have a
uniform policy of risk management.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Rohnert
Park that the attached risk management policy is adopted as the policy of
the City of Rohnert Park.
BE IT FURTHER RESOLVED that a copy of this resolution be provided to
the Redwood Empire Municipal Insurance Fund and its original member cities.
DULY AND REGULARLY ADOPTED this 26th day of March, 1979.
N0. 490.1 POLICY AND PROCEDURE MANUAL
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 Rohnert Park 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 reduction of hazard is greater than the cost of pro-
tection.
Safety activities shall be under the responsibility of the department
head, but all loss prevention activities, including safety, shall be coor-
dinated 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, in-
surance 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
NO. 490.1 POLICY AND PROCEDURE MANUAL
b) Which will not have a significant impact on the City's fiscal position.
As a general guideline, losses which do not exceed $1,000 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 economics.
5. Purchase of Insurance
a) All insurance by the City of Rohnert Park shall be purchased by the
City Manager with the approval of 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 from any
source determined to be in the long-term best interests of the City
of Rohnert Park.