Enhancing City Risk Management and Safety Program

1. THE RISK MANAGEMENT PROGRAM UPDATE AND OVERVIEW

2. WHY THIS PRESENTATION NOW? • RISK MANAGEMENT PURPOSE • MANAGING THE CITY’S INSURANCE AND CLAIMS • ASSISTING IN MANAGING THE CITY’S CONTRACTS • SAFETY AND LOSS PREVENTION MEASURES TO REDUCE EXPOSURE TO LOSS

3. RISK MANAGEMENT PURPOSE • PROTECT CITY FROM CATASTROPHIC LOSS • PROTECT EMPLOYEES & CITIZENS FROM INJURY OR LOSS • STEWARDSHIP / FIDUCIARY DUTIES

4. RISK MANAGEMENT PURPOSE CITY HAS SPECIAL EXPOSURES • EMERGENCY VEHICLES • ENGINEERING AND DESIGN RISK • CONDITION OF STREETS, ROADS, SIDEWALKS & STREET LIGHTING • PLANNING & ZONING • LANDFILL & SEWAGE TREATMENT

5. ADDITIONAL EXPOSURES • LICENSING & REGULATORY DUITES • PUBLIC UTILITY - ELECTRIC • DETENTION CENTERS • CIVIL & CONSTITUTIONAL RIGHTS • MEDICAL MALPRACTICE • VOLUNTEERS / PART TIME WORKERS • AMUSEMENT PARKS

6. WHAT IS RISK MANAGEMENT INSURANCE / CONTRACT ADMINISTRATION CLAIMS ADMINISTRATION SAFETYADMINISTRATION

7. CITY’S INSURANCE & CLAIMS • CITY’S INSURANCE PROGRAM • CITY’S EXPOSURE TO POTENTIAL LOSSES • LOSS RUNS & CLAIM PAYMENTS • ACTUARIAL STUDY

8. LIMITS TO LIABILITY • GOVERNMENTAL FUNCTIONS HAVE IMMUNITY • TEXAS TORT CLAIMS ACT LIMITS CITY’S EXPOSURE TO LIABILITY • PROPRIETARY FUNCTIONS DO NOT HAVE IMMUNITY • OFTEN SUITS INVOLVING FEDERAL LAW DO NOT PROVIDE CAPS

9. CITY’S INSURANCE & CLAIMS • CITY’S COVERAGE - INCREASE LIMITS FOR CATASTROPHIC LOSS • CITY’S LOSS HISTORY WAS MOSTLY FAVORABLE • DEDUCTIBLE • NEW THIRD PARTY CLAIMS ADMINISTRATOR • CLAIM FORMS REVISED

10. CITY’S INSURANCE & CLAIMS • CLAIMS REPORTING STREAMLINED • CLAIMS REPORTING ENHANCED • IMPLEMENT QUARTERLY CLAIMS REPORTING TO DEPARTMENTS

11. PROGRAM COSTCOMPARISON

12. CITY’S CONTRACTS INSURANCE REQUIREMENTS ONE SIZE FITS ALL • CONTRACT CHANGE TO CHANGE INSURANCE REQUIREMENTS • REMOVE INSURANCE REQUIREMENTS FROM CONTRACT FORM • MAKE IT AN INSERTION ADDENDUM TO CITY CONTRACT FORM

13. SAFETY & LOSS PREVENTION • BEGAN BASIC SAFETY TRAINING AT NEW EMPLOYEE ORIENTATION • IMPLEMENTED REMEDIAL DRIVER TRAINING PROGRAM • IMPLEMENT CITY WIDE SAFETY PROGRAM IN FY 03

14. RISK MANAGEMENT STRATEGIES IMPROVE COMMUNICATIONS INSURANCE & CLAIMS TRAINING SAFETY PROGRAM IMPLEMENTATION ACCIDENT REVIEW BOARDS RISK MANAGEMENT MANUAL RISK MANAGEMENT PROCESS DEPARTMENTAL SPECIFIC RISKS

15. CONCLUSIONSUMMARY • INCREASE KNOWLEDGE OF RISK MANAGEMENT • INCREASE KNOWLEDGE OF INSURANCE & CLAIMS • INCREASE SAFETY KNOWLEDGE • REDUCE AT RISK BEHAVIOR • REDUCE AT RISK PRACTICES • REDUCE CLAIM FREQUENCY

16. RECOMMENDATIONS • INCREASE THE CITY’S SIR / DEDUCTIBLE TO $250,000.00 • INCREASE THE LIMITS OF COVERAGE $5MIL / $15MIL • APPROVE NEW THIRD PARTY CLAIMS ADMINISTRATOR CONTRACT

17. RECOMMENDATIONS • REMOVE INSURANCE REQUIREMENTS FROM THE STANDARD CITY CONTRACT FORM • REQUIRE ALL INSURANCE INFORMATION AS AN ADDENDUM TO THE CONTRACT FORM