Chapter 2.20
RISK MANAGEMENT

Sections:

2.20.010    Risk management division established – Administrator.

2.20.020    Objectives.

2.20.030    Risk management – Authority and duties.

2.20.040    Risk retention.

2.20.050    Safety program – Effect on other municipal departments.

2.20.060    Self-insurance program.

2.20.070    Long-term award account.

2.20.080    Adjustment and payment of settlements or losses.

2.20.090    Municipal officer and employee bond.

2.20.100    School district included.

2.20.110    Establishment of risk management committee.

2.20.010 Risk management division established – Administrator.

There is in the department of human resources the division of risk management. The division of risk management shall be administered by the risk manager. (Ord. 2002-10 § 2, 2002; Ord. 86-017 § 4, 1986; Ord. 78-32 § 2, 1978. 2004 Code § 2.05.010.)

2.20.020 Objectives.

The borough’s policy with respect to the management of all risk of accidental loss shall have as its objectives:

A. The protection of the borough against the financial consequences of accidental loss which are catastrophic in nature;

B. The preservation of borough assets and public service capabilities from loss, destruction or depletion;

C. The minimization of the long-term cost to the borough of all activities related to identification, prevention and control of accidental losses and their consequences;

D. The creation of a system of internal procedures providing a constant reassessment of fluctuating exposure to loss, loss-bearing capacity and available financial resources, including insurance;

E. The establishment, to the extent possible, of an exposure-free work and service environment in which borough personnel, as well as members of the public, can enjoy safety and security in the course of their daily pursuits. (Ord. 78-32 § 2, 1978. 2004 Code § 2.05.020.)

2.20.030 Risk management – Authority and duties.

A. The risk management committee shall have authority, responsibility and duties for:

1. Identification and measurement of all risk of accidental loss;

2. Selection of the appropriate risk management techniques for resolving exposures to loss, including:

a. Risk assumption,

b. Risk reduction,

c. Risk retention,

d. Risk transfer,

e. Other systems, as appropriate, including the purchase of insurance.

B. The risk manager shall have the authority, responsibility and duties for:

1. Day to day management of all risk management programs;

2. Developing and maintaining an information system, in coordination with existing systems, for timely and accurate recording of losses, claims, insurance premiums and other risk-related costs and information;

3. Allocation of insurance premiums, uninsured losses and other risk costs to budgetary units;

4. The development and administration of a safety program for the entire borough to reduce accidental losses, to include collaboration with school district personnel for its safety program.

C. Initial reporting of school district losses or claims shall be provided to the risk management division and copied to the school district designee, if applicable, so that the school district is informed of possible losses or claims.

1. Risk management will keep the school district designee apprised of investigation status and seek input when necessary.

2. All school district employees and officials will cooperate with investigations, to include providing adequate information to the risk management division, and ensure appropriate documentation of actions taken. Information requests will be responded to as soon as practicable.

D. The risk management division shall be the central repository for all risk related files and records.

1. The school district designee will have the ability to inspect records as business requirements necessitate (either electronically or in hard copy) and as confidentiality requirements allow.

2. Inspection of hard copy records shall occur in the risk management division.

3. Records will be retained and archived by risk management.

4. If any copies of records are maintained at the school district, protocols will be put into place to ensure confidentiality, and the school district will conform to the borough’s records destruction timetables and schedules, including any legal hold directives.

5. School district personnel who have access to risk management claims information are required to sign and abide by a confidentiality agreement.

6. Redacted information will be shared with appropriate school district human resources staff for processing of return to work, FMLA, ADAAA and other required programs. (Ord. 2017-15 § 2, 2017; Ord. 78-32 § 2, 1978. 2004 Code § 2.05.030.)

2.20.040 Risk retention.

A. With regard to risk of accidental loss, it shall be the borough’s policy to self-insure all losses:

1. Which occur with predictable frequency; and

2. Which will not have a significant adverse impact on the borough’s financial position.

B. As a general guideline, the borough will self-insure progressively upward when the risk manager determines it to be prudent and fiscally sound. The risk manager shall notify the assembly of increases in self-insurance within 30 days. The borough will not self-insure when:

1. Certain necessary services can be obtained only by the purchase of insurance;

2. The borough is obligated by law or contract to purchase insurance. (Ord. 2012-38 § 2, 2012; amended during 1993 republication; Ord. 78-32 § 2, 1978. 2004 Code § 2.05.040.)

2.20.050 Safety program – Effect on other municipal departments.

It is the duty of the risk manager to develop and administer a safety program. All borough departments are responsible for implementation and enforcement of the program. (Ord. 78-32 § 2, 1978. 2004 Code § 2.05.060.)

2.20.060 Self-insurance program.

The risk manager shall establish a self-insurance program, in accordance with FNSBC 2.20.040. The self-insurance program shall include employee benefit programs and items referenced in collective bargaining agreements, i.e., health plan administration, wellness programs, flexible spending accounts, utilization review, case management, disease management, independent medical evaluations, health plan audits, health clinic programs, employee assistance programs, deferred compensation programs, life insurance, preferred provider organizations, prescription drugs and any other benefit negotiated or required by statute or law. (Ord. 2012-08 § 3, 2012; Ord. 78-32 § 2, 1978. 2004 Code § 2.05.070.)

2.20.070 Long-term award account.

The chief financial officer may establish an account for the payment of long-term awards. The chief financial officer may delegate the management of the account to a financial institution authorized to act as a trustee. (Ord. 2012-38 § 4, 2012; Ord. 78-32 § 2, 1978. 2004 Code § 2.05.100.)

2.20.080 Adjustment and payment of settlements or losses.

A. The risk manager has the authority to adjust and pay all self-insured and uninsured losses to the extent that funds have been appropriated for those purposes. The authority to adjust includes payment of costs of investigation, litigation, mediation and arbitration.

B. The risk manager has the authority to approve settlements up to $25,000, and may delegate this authority by contract to an adjustment firm.

C. The risk management committee shall provide review and advice prior to approval of settlements in excess of $25,000. Final settlement authority requires the concurrence of the risk manager and the mayor.

D. If no funds specifically appropriated for that purpose are available, funds for payments of settlements and adjustments of losses up to $250,000 are hereby appropriated and/or reappropriated from the appropriate department(s)’s available funds, fund balance of the appropriate fund, or net assets of the appropriate fund, as determined by the mayor or the mayor’s designee following certification by the chief financial officer that the funding source is available and sufficient to pay the costs. When this occurs, the chief financial officer shall notify the assembly within 30 days.

E. This section does not apply to the self-insured employee benefit programs. (Ord. 2017-15 § 3, 2017; Ord. 2012-38 § 5, 2012; Ord. 78-32 § 2, 1978. 2004 Code § 2.05.120.)

2.20.090 Municipal officer and employee bond.

A. The risk manager shall be responsible for maintaining a blanket faithful performance bond on all borough employees. Such bond shall be in an amount not less than $1,000,000 for the benefit of the borough.

B. The persons appointed to the positions listed below shall procure and maintain, for the benefit of the borough, a public official bond, in an amount not less than $1,000,000. The premium for this bond shall be paid by the municipality, except if for any reason the borough mayor is not bondable, this obligation shall be self-insured, with written notice to the assembly:

1. Borough mayor;

2. Chief financial officer.

C. Any contractor authorized by resolution to draw against borough bank accounts shall procure and maintain in force a fidelity bond which includes coverage for compensated and noncompensated officers in an amount to be determined by the risk manager. (Ord. 2015-71 § 2, 2015; Ord. 2002-10 § 3, 2002; Ord. 98-025 § 3, 1998; Ord. 86-017 § 5, 1986; Ord. 78-32 § 2, 1978. 2004 Code § 2.05.190.)

2.20.100 School district included.

Within this chapter, unless the context or other provisions of law indicate the contrary, the words “borough” and “employee” include the Fairbanks North Star Borough school district and its employees. (Ord. 78-32 § 2, 1978. 2004 Code § 2.05.200.)

2.20.110 Establishment of risk management committee.

A. There is hereby established a risk management committee consisting of the risk manager, Fairbanks North Star Borough chief financial officer, and, on school district matters, the Fairbanks North Star Borough school district designee. The members of the risk management committee may each designate a person to act in the event of the committee member’s absence. The borough attorney is legal counsel to the committee.

B. The risk manager will schedule regular committee meetings to discuss and obtain input and recommendations on claims and to ensure the school district is involved in and aware of incidents and injuries. Review of insurance levels, coverages and renewals shall occur annually in order to provide direction on any changes thereto. (Ord. 2017-15 § 4, 2017.)