(A) Generally. There shall be a "Risk Management Program" ("RMP") with the objective of protecting the city against liability-based financial loss through a process of transferring risks:
(1) To city-managed, city-financed self-insurance programs. These risks are designated as "retained risks";
(2) To third-party, private insurance companies in exchange for payments ("premiums") to the insurance company. These risks are designated as "insured risks"; or
(3) To combinations of self-insured and insured risks, the insured portion of which are designated by various nomenclatures including: "catastrophic" insurance and "stop loss" insurance.
(B) Optimization of financial resources. The city seeks to optimize the application of its financial resources and level the financing fluctuations inherent in risk management through:
(1) Utilizing a financial policy of actuarially-based pre-funding of all self-insured components of the city's risk management program;
(2) Expert analyses of risk retention options;
(3) Risk avoidance through city administrative actions to limit liability exposure; and
(4) The purchase of third-party insurance coverage through a vigorous, competitive acquisition process.
(Ord. passed 4-7-2003)