1993 02 22 CSCE
T4'lvl4 4a a"
78-105 CALLE ESTADO — LA QUINTA, CALIFORNIA 92253 - (6191 564-224E
FAX (619) 564-561 i
COMMUNITY S E RV I C E S COMM = S S= C)M
LA QUINTA COUNCIL CHAMBERS
78-105 CALLE ESTADO
LA QUINTA, CA 92253
MONDAY
FEBRUARY 22, 1993
7:00 P.M.
I. CALL TO ORDER
A. Pledge of Allegiance
B. Roll Call
II. APPROVAL OF MINUTES - FEBRUARY 8, 1993
III. PUBLIC COMMENT -- The Community Services Commission reserves
the right to limit discussion on any topic to five minutes
or less.
IV. CORRESPONDENCE AND WRITTEN MATERIALS
1. Attendance Roster
V. STAFF REPORTS
1. Review of Final Parks and Recreation Master Plan
(Bohlen)
VI. COMMISSION BUSINESS
A. General
1. Presentation by Trice Heally, PTA Earthquake
Committee
2. Discussion of Community Services Grant Process for
1993-94 (Kennedy)
B. Culture and Fine Arts
1. Art in Public Places Committee Report (Nard)
MAILING ADDRESS P.O. BOX 1504 - LA OUINTA, CALIFORNIA 92253
Community Services Commission
Meeting - February 22, 1993
Agenda continued
C. Parks and Recreation
1. Report on Content of National Recreation and Park
Association Risk Management School (Dickens/Bohlen)
2. Discussion of Public Forum Location and Dates for
Palm Royale Park Design (Bohlen)
D. Human Services
1. Report on Coachella Valley Child Care Council
meeting 2/16/93 (Bernard)
2. Landscape for Spring Splendor
VII. NEXT MEETING DATE, TIME AND TOPICS
Monday, March 8, 1993
VIII. ADJOURNMENT
C OMMUN S T Y S E RV S C E S C OMM S S S= ON
AT T E NDANC E RO S T E R
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0
City of La Quinta
Memorandum
To: Community Services Commission
From: Clint Bohlen, Parks and Recreation Manager
Date: February 22, 1993
Subj: Review of Final Parks and Recreation Master Plan
BACKGROUND
Attached you will find the final Parks and Recreation Master Plan. The additions and changes will
be reviewed with the Commission during the February 22 meeting. An Acknowledgement page,
Plant Pallette section, and other textual changes have been added or occurred as a result of
extensive review by over 30 agencies, including all of the parks and recreation agencies of the
Coachella Valley.
RECOMMENDATION
Staff recommends that the Commission review the additions and changes to the Parks and
Recreation Master Plan, and recommend to the City Council that the Master Plan be adopted by
Resolution.
Item V.I.
City of La Quinta
Memorandum
To: Community Services Commission
From: Clint Bohlen, Parks and Recreation Manager
Date: February 22, 1993
Subj: Discussion of the Community Services Grant Process for 1993-94
BACKGROUND
As the Commission will recall, ad hoc committees were created and met at the last Commission
meeting at consider two issues: the Travel Policy of the City of La Quinta, and the Community
Services Grant Application for the fiscal year 93-94. The Grant committee reviewed last year's
Application packet, and has recommended several changes to the previous year's packet.
The attached packet is the product of the committee's work. Changes were primarly
organizational in nature, as contrasted with last year's packet. Some textual changes were made
as well, and all changes will be reviewed and discussed at the February 16 meeting of the
Commission.
The Chairperson has suggested that Commission members bring a sample of last year's Grant
Application for contrasting the old and new format.
RECOMMENDATION
Staff recommends that the Commission review the additions and changes to the Community
Services Grant Packet for 1993-94, and finalize a format at tonight's meeting.
Item VI.A.0
City of La Quinta
Application for
Community Services Grant
Name of Organization:
Amount Requested:
Contact Person:
Address:
City:
Fiscal Year 1993-94
State Zip
Phone: Date Submitted:
501(c)3 Taxpayer I.D. Number
u
. General Information
. Please read the entire packet before filling in information. If you have any questions re-
arding the application, call the Community Services Commission staff at 564-2246.
. Only limited funds are available for these grants. The maximum grant for 1992-93 was
,5000. The minimum grant was $1500. The total available for fiscal year 93-94 is $25,000.
Applications will be screened and reviewed by the Community Services Commission, who will
nake recommendations for funding to the City Council. The Council's decisions will be final.
Successful applicants will be notified by July 1, 1993, and those awarded funds are to request
i writing disbursement of grant funds following the receipt of their award letter.
In order to ensure that proposed projects are evaluated in a consistent manner, applicants
nust submit proposals using the enclosed Application form. Substitute forms (computer gener-
ted) are not accepted.
I. Guidelines and Criteria
-he Funding Criteria for this fiscal year is as follows:
i. At the time of submitting the application, the organization must have applied and been ap-
iroved for 501(c)3 status.
). The Applicant is to be located in or serving La Quinta. All City funds must be utilized for
ervices to people living in La Quinta. Non -La Quints based organizations must provide docu-
nentation of said services.
:. Funding will be based on program development and enrichment opposed to operational
:osts.
L If you receive a grant, a final report on how you used the grant money will be due on April 1,
1994 (see enclosed form) to: "Attn: Community Services Grants, City of La Quinta, P.O. Box
1504, La Quinta, 92253". Failure to comply will result in no further consideration for City grants.
Jigibility for funding will be based on compliance with reporting requirements for past Commu-
iity Services grants received (see attachment "Reconciliation Form").
Budget information requested is for fiscal year 92-93. If your organization operates on a
:alender year, please report information for 1992.
11. Instructions
1. All applications for funding must be typed, and applications must be received on or before
vtonday, April 19, 1993 at 5:00 pm at City Hall, 78-105 Calle Estado, La Quinta.
?. Complete each item. If not applicable, type in "N.A." Use additional sheets if the space
)rovided is not adequate. However, additional sheets must be clearly marked and referred to
Nithin the text of the respective item.
1
•
Application
1. What is the overall purpose or goal of your organization?
2. How long has your organization been in existence? _years _months
3. Describe in general the activities or services of your organization:
4. How many people does your organization currently serve?
# of youth_ # of adults # of seniors_
How many people do you intend to serve in fiscal year 92-93?
# of youth_ # of adults_ # of seniors_
5. How many paid employees/volunteers does your organization employ:
# of full time employees
# of part time employees
# of volunteers
6. Describe how your organization is managed and governed.
7. Please provide information on your Executive Boardmembers or governing body:
Name Title Home Address Phone
2
•
What is your annual schedule of events, and during what months does your organization
perate?
Do you charge admission, membership fee, dues, etc?
yes, please describe below:
0. What are your sources of revenue for this funding year?
ource
Yes No
Amount Percent
Total Received $
Revenue Spent $
Balance $
0. What do you plan to accomplish during the fiscal year 1992-93?
3
r]
11. Describe in detail your organization's accounting practices:
12. Has your organization been funded by the City of La Quinta previously?
Yes No_
13. Need for Grant Statement. Clearly and plainly state the reason or need for the grant funds.
14. Grant Use Goal Statement. Indicate who will benefit the use of these Grant funds, and
how they will benefit.
15. Method Statement. Explain how you will meet the indicated Need and Goal.
4
Your organizations Budget for the Previous Fiscal Year:
(Please summarize by categories)
ITEM TOTAL
Personnel: $
Full-time
Part time
Temporary
Benefits
Total Personnel Costs:
Operational Costs:
Rent/Lease $.
Utilities
Insurance
Office Supplies
Capital Item
Vehicle
Miscellaneous
Total Operational Costs:
Other
Budget
Items: $
Total
Other
Items: $
TOTAL ORGANIZATION BUDGET:
5
Your proposed Grant Budget for Funds Requested:
ITEM
Personnel:
Full-time
Part time
Temporary
Benefits
Total Personnel Costs:
Operational Costs:
Rent/Lease
Utilities
Insurance
Office Supplies
Capital Item
Vehicle
Miscellaneous
Total Operational Costs:
Other Budget Items:
Total Other Items:
TOTAL ORGANIZATION BUDGET:
U
TOTAL
6
City of La Quinta
Community Services Grant
Grant Reconciliation Report
Organization Name:
Name of Person Completing Report:
Address:
Period of Report (mo/yr to mo/yr):
Date Your Organization Received Funds:
Describe Your Expenditure of Grant Funds:
Reconciliation
Grant Amount $
Funds Expended $
Phone
to
Balance $ (return unspent funds to "City of La Quinta"
by check with this form)
Attach supporting documentation (receipts for purchases, cancelled checks, payroll records,
copies of billing statements) that is in accord with the original grant request.
Any questions regarding this form or the grant process should be directed to the Community
Services Commission staff at 564-2246. Mailing Address: City of La Quinta, P.O. Box 1504, La
Quinta, CA 92253.
7
Community Services
Community Services Grant
Name of Scorer:
Name of Appli
Amount Requested :_-__________
Commission
1992-1993 Scoring Sheet
Date____________
Criteria/Scoring for evaluating this current year's applicants is as follows
1. Is Application legible and clearly written? (5 points possible)
Comment:
2. Is Application complete, relative to requested information? (15 points possible)
Comments:
3. Is it apparent that the Applicant has the ability
to manage and deliver the proposed services? (5 points possible)
Comments:
4. Is the need clearly identified? (5 points possible)
Comment:
5. Are the goals expressed measurable and specific? (10 points possible)
Comment:
6. Is the program unique and innovative, rather than standard and a duplication? (5 points)
7. Evaluate the agency budget, especially the need for the funding. Lookatthe
personnel costs vs. volunteerism in the agency; the historical ability of the organization
to locate and acquire funding from other sources; and the apparent accounting practices
and ability of the agency. (10 points possible)
Comment:
S. Is the Applicant a 501(c)3, registered California nonprofit? (5 points)
Is the organization La Quinta based? (5 points)
Is the grant request for program development and enrichment? (5 points)
If the organization applied for funding in FY91-92, is a Reconciliation Form
enclosed as requested? (Yes/No)
v
Total Points (70 available)
8
City of La Quinta
Memorandum
To: Community Services Commission
From: Clint Bohlen, Parks and Recreation Manager
Date: February 22, 1993
Subj: Report on Content of National Recreation and Parks Association
Risk Management School
BACKGROUND
Staff and Commissioner Dickens attended the NRPA Risk Management School in Oakland, CA
from January 27 - 30, 1993. The school covered the following topics and concepts:
• What is Risk Management
• Basic Elements of Risk Management
• Effective Communication through Signs
• User Safety and Risk Management
• Contracting for Services
• Employee Safety
• Managing Risk the Disney Way
• Playground Safety
• Current and Anticipated Liability Law
• Participation in Field Study (Open Space and Trails)
The school was 28 hours in duration, and the most important points that staff learned were:
identify exposures in all City park and recreation facilitiies and procedures; evaluate the loss
potential of the exposure; select the best methods of controlling the loss potential; implement the
chosen techniques; monitor the results of the steps taken to mitigate the loss exposure; and
modify the steps taken as perceived over time.
Attached are notes from the two most basic sessions attended. Staff can answer any questions the
Commissioners may have.
RECOMMENDATION
FYI.
Item VI. C.1.
jeiirey W. Pe regrew, Western Temporary Services' Director of Risk
T
Mtanegemem and Insurance, speaks from his more than 17 years in the
field of r:sk management. His expertise in both the public and pnvore
—�.
sectors inc-,,,es me erecs c' workers" compensation, liability and
1
emp:oyee benefits.
Named Risk Manager of the Year in 1989 by Business insurance
_.
-agazine, Jeff is c nationeify-recognized authority in the risK management
arena. As on innovator in the field, he was instrumental in developing some
Jeff Petteerew is
of the notion's first self -insured public agency risk management pools;
recognized as a
his articles on risk management have run in numerous professional journals.
'can -do risk manager
self has been recognized for pioneering risk management education and
who thrives on
sharing his knowledge of the field with others. His grasp on risk manage -
solving problems."
ment and workers' compensation issues has resulted in his being requested
as c lea urea saeeker ct workshcos and seminars nationwide. ;e f has been
cesignoted -Is on exoer, witness in risk mcncgeMent cases and he has
==eared cn CBS's '60 Minutes' cnd on CNN.
As Director of Risk Management for Western Temporary Services,
a 44-year-6d :emporcry service industry leader, Jet' steers
'Western's cc" orc:e insurance oroarcm worldwide
and 6i,ccs its css con:roi cnd risk management
cctiviiles.
Jeff obtained his B.A. in Communications from
Denison Universiy in Granville, Chia, and his
M.P.A. rom Cojifornio Srg:e University at Hayward.
-e is c bcorg member of rre Golden Gote Cnco-W
f the RisK & nsurc,.ce !�,c. ag=-ent Society, ,._.
R,MSi; previous p: s;da..� the Pubis_ -Dry
Rsk Mcng ='s Assag, .,cn .? ?S1Aj; ,.I ounder
=a x^st cresicent of the Cciifo,n:a;oint
Dower Associc5cn
�� C�°., t MAUAEhMENt
II s
L
1
AREFULt' ALL YOU CAN TELL ME 7S 'BE CAREFULT
HERMAN
LES pETEAS of West Branch, Mich., is
ered upside clown oy two fellow pavinc
ny employees to inspect a manhole.
t
E
7
Let's get out of here.
F
COST OF RISK
Workers Compensation
Claims
iecurity/Thett/
Vandalism
4Z
Vehicle & Property
Damage
Employee Bonds
is
Insurance
Is
Hazard
Corrections
a
Llabatty Claims
as
Claims Adjusting
a
Employee Benefits
a
Utigatlon
Lost Time & -%%.
Retraining Contractual
0 Indemnity
Satety'rraining
& Equipment
go
0
r 1;:
WI A
6 STEPS IN
RISK MANAGEMENT � �v J �� �
2
1. IDENTIFY EXPOSURES
�J
2. EVALUATE LOSS POTENTIAL
3. SELECT METHOD OF RISK CONTROL
4. IMPLEMEMENT CHOSEN TECHNIQUES
S. MONITOR RESULTS
6. MODIFY TECHNIQUES TO REFLECT EXPERIENCE
E
6 STEPS IN RISK MANAGEMENT
GUIDELINES
1. IDENTIFICATION TOOLS
• Claims Loss Runs (Liability and Workers Comp)
• Program Brochures
• Annual Reports and Budgets
• Council/Board/Commission Agendas
• Purchasing Agreements
• Inspections and Maintenance Records
• Contracts and Leases
• Complaints and Service Requests
• Property and Equipment Records
6 STEPS LN RISK MANAGEMENT
GUIDELINES
2. EVALUATTON TECHNIQUES
• Frequency/Severity of Claims (Liability and Workers Comp)
• Professional Publications, Periodicals, and Other Public
Agencies
• Usage Trends by Your Participants
• Political and Litigation Climate
• Anticipate - Go With Your Intuition!
E
6 STEPS IN RISK MANAGEMENT
GUIDELINES
• AVOID or ELIMINATE the Risk
• TRANSFER the Risk (Insurance or Contractually)
• RETAIN All or Pan of the Risk
• Reduce Risk by Loss Reduction Techniques
• Finance Retained Risk
• • Direct Method (i.e.User Fees/ Cost Basis)
• • Allocation Method
(i.e. Budget Spread/Accrual Method)
• • Pooling Alternatives
• • Capital Markets Approach
(i.e. Bonds or Line of Credit)
6 STEPS IN RISK MANAGEMENT
GUIDELINES
4. TNIPI.FNIFNTATTON CONSIDERATIONS
• Management Support and Understanding
• Documentation and Notification
• Board Review and Approval of Major Actions
• Follow Manufacturer's or Consultant's Guidelines
• Develop In -House Procedures
6 STEPS P_V RISK MANAGEMENT
GUIDELINES
5, MONITORING ASPECTS
• Define Acceptable Standards and Expectations
• Compare Actual Results to Anticipated Results
• Consider "Environmental" Changes
• Keep Records and Document
6 STEPS IN RISK MANAGEMENT
GUIDELINES
6. MODTFICATION GUTT)ELTNES
• Document Decision Making Process
• Maintain a Safety/Loss Control Program
• Implement Suggestion Program
• Continue Monitoring Results
MODEL LOSS CONTROL POLICY STATEMENT
One of the first steps any municipality should take in instituting a loss control
program is to draft a lass control policy statement. A model policy statement
follows:
WHEREAS the cityltown of realizes that it has the
responsibility to provide a safe work environment for its employees and that
each employee must pursue the highest standards in his or her assigned
activities, ail municipal employees must recognize that the well-being of
persons involved and the protection of our physical resources are as important
as the activity and work being performed.
NOW, THEREFORE, BE IT RESOLVED BY THE (CITY COUNCIV
BOARD OF SELECTMEN) OF THE CITYITOWN OF
AS FOLLOWS:
The cuynown is establishing a Loss Control Management Program to be
implemented in stages over the next year. The cityltown also expects its
employees to respond to all planned safety efforts and to perform their
assigned jobs in the safest manner possible.
As the first portion of the city/town program, the Municipal Loss Control
Manager tMLCM) will be assigned the responsibility of organizing the overall
Loss Control Management Program. (The MLCM may be either the city/town
Deputy Mayor or Assistant to the City Manager.)
In addition, a Loss Control Policy Committee is to be created to establish loss
control policy, investigate major losses and loss trends and assign task farce
committees. This committee will be chaired by the MLCM and its members
can include the Chief of Police, the Fire Chief and the cityltown Public Works
Director.
Each municipal department director will be responsible for the safety and
well-being of the workers in his or her department as well as the repair and
maintenance of facilities and equipment in his or her area of responsibility.
Each municipal employee will be responsible for his own personal safety and
for the safe completion of assigned tasks.
The cityltown of is committed to doing all in its
power to make its Loss Control Management Program a success and expects
all municipal employees to assist in this effort by contributing expertise and
by following all established rules and procedures.
Signed this _ day of at (city/town)
of (state)
By mayor/city manager
INFORMED CONSENT AGREEMENT
Check List
E' Type of Event or Event Name
E' Acknowledgement of Specific Risks Associated
with the Activity
Assumption of all Risk Statement (Binding Heirs)
E' Accident Waiver & Release of lability
Re: Event Sponsors, Participants, Coaches,
Public Agency, etc_
E' Medical Treatment Consent
E' Parent/Guardian Consent (Under 18)
E' Physician Name & Telephone
I� Participant's Medical Coverage or Plan
E' Name. Signature, Date
ORGANIZED RECREATION
ACTIVITES and SPORTS
What are your legal duties to avoid liability?
1. Duty to warn all recreational participants regarding the
specific types of injuries that inherent with the activity.
2. Duty to enforce safety rules and procedures associated
with the activity - at all times.
3. Duty to instruct participants regarding sequential tasks
in the activity.
4. Duty to group participants by age, skill level, weight, etc.
5. Duty to properly supervise activity.
6. Duty to inspect facilities and grounds for potential hazards.
7. Duty to use and maintain equipment as it was designed
and intended.
S. Duty to follow a medical response plan.
• Land Failure of Unimproved Public
Property Which Causes Offsite Injury
• Repairs on Unaccepted Roadways
•-Unpaved Access Roads and Trails
• Paved Paths on Easements
• "Injuries from Hazardous Recreational
Activities"
• Condition of Reservoir
• Injuries from Gradual Earth Movement
or its Abatement
• Earthquake Warnings
0 •
PUBLIC ENTITY IMMUNITIES
FOR A DANGEROUS CONDITION
• Design Immunity (Approved Plan)
• Traffic Sign, Signal Immunity
("Failure to Provide")
• "Reasonable Act or Omission"
• Weather Conditions
• Natural Conditions of Unimproved
Property (Beaches, Lakes, Streams)
• Traffic Signals Under Control of
Emergency Vehicles
WHAT IS A
DANGEROUS CONDITION?
"that which creates a substantial risk
of injury when such property... is used
with due care in a manner in which it
is reasonably foreseeable that it
will be used.
ACCIDENT INVESTIGATION
PROCESS
Property Damage Vehicie, Damage
Investigation
Unsafe Pracflce? I I Unsafe ConciUcn?
Probable Causes
Recommenced F — I Do1 cument
Corrective Action
Safety Committee
NEGLIGENCE
4PART
1. A duty or obligation recognizedby the law, requiring
the person [entity] to conform to a certain standard of conduct
for the protection of others against unreasonable risks.
2. A failure to conform to the standard - Breach of Duty.
3. A causal connection between the conduct and the injury -
Breach of Duty was the proximate cause of the injury.
4. Actual loss or damage from injury.
DEFENSES
1. Comparative Negligence
2. Assumption of Risk
3. Governmental Immunity
4. Informed Consent Agreements
5. Act of God
TANDARD OF CARE
INVITEES - Public invited to use public property for public purpose,
according to posted rules & restrictions
LICENSEES - Public who enter public property with permission only
TRESPASSERS - Public who enters orremains upon public property
without the permission or privilege to do so.
OCIDENT INVESTIGATION REP*
Reccrt of Injury Is to Ce surmateC wimin 24 hours following the Cate of injury If the emp;cyee IS una Coto ccmo:ate
;unt ct the acc:Cent.:ne supervlscr ;s to prov(ce the information, in accmon to the anaiys+s Of the acc:Cent.
175 NAME
CEPARTMENT
THE
T ODAY'S GATE
ACp:OGNT I DAY OF REEK I -ME CP ACCDE.hT I PLACE OF ACCCCNT
♦WINA
;MN WCPOS EAPLA.N IN CETML ..At YOU MERE GOING .MM(OIATELT PRIOR TO THE ACC:OENT ANG THEN NCR IOU BELEVC THE ACCCEhT HAPPENED
EMPLOYEE S SIGNATURE
SUPERVISOR'S ANALYSIS OF ACCIOENT
.c EMPLOYEE I WAS EMPLOYEE SEEN BY A OOCTOIV IP YES. NAME 00 OOCTOR HGSPITI
co INJURY
AM/PM ( I YES ( 1 MCI 1 I UNKNOWN 1 ) TEB
.OYES LOSE TIME FROM WORK (OTHER THAN FOR MEDICAL TRCATMSNTG
I I NO IF YEi OATS LAST WORKED OATS EXPECTED TO ACTURN OATS RCTURNEO
DF INJURY ANO PART Of BOGY INVOLVED 1E1 CUT LEFT HANG STRAINED BACK BRUISED LEFT LEG ETC.)
F WITNESSES TO ACCDENT
;ONCUR WITH THE EMPLOTtES ACCOUNT OF TNS ACC:OCN"
I I h0 I I UNSURE IF h0 OR UNSURE. PLEASE EXPLAIN,
TORS 00 YOU SELEVC R"It IMSTRUMENYAL IN CAUSING THE ACCDENTT PLEASt UPLAIN YOUR RATIONALE
MECIAL ACTION WILL SE TAKEN TO PREVCNT THIS TYPE Of ACCOENT FROM GCCURING:N THE FUTURE'
OU Be ABLE TO USE THIS EMPLOYEE ON A MOGIFICO OUTV ASSIGNMENT'
I I YES I
)NO
IF YES R."
SUPERVISORS SIGNATURE
0EPARTMwT OIRECTOR REVIEW
1 I ihvcsncATI0N SUPFICIEhT
1 I SUGGESTEO AOOITIONAL ACTIONS ON REVERSE
I I AERORT TO BE SUBMITTEO TO SAPRY COMMITTEE
DATE CEPARTMENT CIRECtOR CAn
DEFT DIRECTOR C.1
HAZARD IDENTIFICATION SIGNS
Signs Used to warn
Part A State the Specific Danger
(Use International Symbols if Available)
Part B State Precautionary Measures Require
r
WARNING NO SWIMMING . WARNING
EYE DANGER NO DIVING SLIPPERY WHEN WET
otective Eyeglasses Deep Water Keep Fioor Dry
Must Be Worn Hazards Use Towel
HAZARD IDENTIFICATION
PROGRAM
mi Eoyer
Puna Agency tlr
RISK )`tanager
Resoons=* Department
hwers Sitel
Evauates Cam mint
Fodow-tJo Wont
MEMMOMMEd
Risk Mamgerr ILDoatment
CSt=n Notified
Safety Ccnmtttes
RECU��: 5CR SLYvaC^T- CR AiR
Tc: 'tee Risk Maaageament Oft -ice Date:
nit:ed By.
( j Genera, 3,y�yi�c
[ Cit-r Ccunc__: Cc �:issicn men tier
C==1 - _ lcyee
Sam for Request:
( ) =-,T 311 i =t4 4 -14
[ j CitT Equipment or Vehicle
( ] Streer, Sidewalk, Theraughfare
( 1 Para, 3'-ayg=ouad, Cpea Space
[ ] TraY-*ic Sig=, Signal ar Marking
C l Ct=er
3z'=ca:
Name / T_tle
Address / Depa_-went
Telepncne Number
Natare at Request:
asmitted Sy:
c=plcyee Depar-=ent Telepnone
eellcw Up Act -Ca To This Request was Directed To:
Employee Depar enm Date
eal_ew Uc Attica Taken:
Was The Person who Made :': a Request Contacted: Yes Date _/_/_
,7as T�4 s Ccatact: 3y: (_) Visit (_) ?hone (_) Letter
;o Simi la Sit:aticns/Ccnditicns Exist: (_) Yes (_) No
=xnlaia:
W«itmessed. Hy- --1 /_
Employee: Depa=eat Data
9 this request fcraarded to the ==r Saferr Ccmmit_ee: ( l Yes ( 1
'ITY OF
, .OLTH ASSOCIATION
'lease hely us maintain safe Dlaving fields. Your ideas and ovinions are valuab'e to us
'lease revort anv areas of concern immediately.
ATE OF
IELD
IME OF USE: TO
UNSATISFACTORY/ (FOR CITY USE ONLY]
.REAS 'NEEDS REPAIR CORRECTED
otholes/Cracks ❑ ❑
prinkler Heads ❑ ❑
;oals / Anchors ❑ ❑
)bstacies on Field ❑ ❑
)ther areas (describe)
IANAGER'S NAME: HOME PHONE:
(Please Print)
IANAGER'S SIGNATURE: DATE:
LEASE LEAVE THE SOCCER NETS ATTACHED TO THE GOALS AND LEAVE THE GOALS FIXED
?I PLACE
his form is intended to assist the City/OYA in adequately maintaining usable and safe play facilities. The
'ity/OYA will attempt to respond within a reasonable time frame to any items marked as Unsatufactorv/
leeds Repair. Your cooperation in assisting the City/OYA in the completion of this process is greatly
ppreciated.
LEASE MAIL OR DROP OFF THIS COMPLETED FORM TO YOUR DIVISION HEAD OR O.Y.A. OFFICE,
5 ORINDA WAY, ATTN: JERRY JOHNSTON.
CITY OF
YOUTH ASSOCIATION
q: • 91 IMI 01a alb r . I
Please help us maintain safe vlaving fields. Your ideas and opinions are valuable to us.
Please report anv areas of concern immediately.
DATE OF USE:
FIELD
TIME OF USE: TO
ARFASPNSPECTED
Potholes/Cracks
Sprinkler Heads
Backstops
Pitching Rubber
Home Plate
Bases
Obstacles on Field
Safety Fences
Other Areas (describe)
UNSATISFACTORY/
;NEEDS REPAIR
TEAM:
(FOR CITY USE ONLY)
CORRECTED
MANAGER'S NAME: HOME PHONE:
(Please Print)
MANAGER'S SIGNATURE: DATE:
This form is intended to assist the City/OYA in adequately maintaining usable and safe
play facilities. The City/OYA will attempt to respond within a reasonable time frame to
any items marked as Unsatisfactory/Needs Repair. Your cooperation in assisting the City/
OYA in the completion of this process is greatly appreciated.
PLEASE MAIL OR DROP OFF THIS COMPLETED FORM TO YOUR DIVISION HEAD
OR O.Y.A. OFFICE, 26 ORINDA WAY, ATTN: JERRY JOHNSTON.
• •
DAVID J. CLOVIS
RISK/LABOR RELATIONS MANAGER
EAST BAY REGIONAL PARK DISTRICT
David Clovis has been the Risk/Labcr Relations Manager for the East Bay Regional Park
District since 1989. His Department is responsible for the Risk Management Program for
the agency and is responsible for negotiating the two major Bargaining Unit contracts as
well as the day to day labor functions.
From 1985 - 1989, David was employed by the San Francisco French Bread Company.
As Manager of Human Resources. S.F.F.B. is a food manufacturer of quality french
bread products with operations in California and Illinois. Prior to being with S.F.F.B.,
David worked as a Police Officer with the City of Fremont.
David is a member of P.A.R.MA., a Board of Regent on the Pacific Risk Management
School and has obtained his Associate in Risk Management Decree. He has an A.A.
Degree in Administration of Justice and Business. David has completed the American
Manacement Association's Essentials of Management course and possesses a
Intermediate P.O.S.T.
BASIC ELEMENTS OF RISK MANAGEMENT
I. RISK: THE CONCEPT
A. WHAT IS RISK
1. Management Process
B. RISK MANAGEMENT OBJECTIVES
1. Minimize Total Cost of Risk
2. Funding Losses
i
C. RISK MANAGEMENT PROCESS
1. Identify, and Analyze Exposure to Loss
Nay/ i �� f• w . ./ .;t,
2. Evaluate Alternative Techniques
3. Select the Best Techniques
4. Implement the Techniques
5. Monitor the Results
D. RISK MANAGEMENT TECHNIQUES
1. Risk Control
a. Elimination/Avoidance
b. Reduction (Loss Control)
PAGE1
C. Separation
d. Duplication
2. Risk Financing
a. Retention
b. Transfer
• ca.at�P K . ••
I1. RISK: A PROGRAM
A. ORGANIZATIONAL PHILOSOPHY
B. POLICIES & PROCEDURES
1. Policy Statement
a. Risk Management PIt t!\
b. Safety
5J
2. Procedural Guidelines �' �� .' Q�t•
a. Risk Financing
b. Loss Prevention
1. �\` Property Inspections
s� ._r•� 1
2. Fire Protections t ,
3. Hazard Identifications
4. Employee Exposures
5. Emergency Preparedness
PAGE2
3. Wrif Program
a. Basic Elements.
b. Statutory Requirements
4. Claims Management
a. Report Creation
b. Record Keeping
C. Communication
d. Claim Adjusting
C. RESOURCES
1. Risk Management Associations
2. Periodicals/Publications
3. Resource Manuals
4. NRPA
5. Other Agencies `
AM
III. QUESTIONS b
.BASICS.QR)
PAGO
STEPS AhTHE RISK MANAGEMENT SOCESS
1. IDENTIFY AND ANALYZE EXPOSURES TO LOSS
Idenuucauon r-
i vees or Fr•osures I �Ies.^.od of Identtfving
I i
L.n
Stanaaraizea Surveyst I
Quesconnau-s
Other Records
Personal Inspections
ExvemConsuitants
F-- ; .4n ssat�v ir--I
Organ Zonal Obiecuves I Sigrtincance
i
Conuauous Ooezauon Loss rreaueac
Humamranan Conr_ras i Loss Seventy
Legal Requirements
EXAMINE FEASIBILITY OF ALTERNATIVE TE
Loss Control io Stop Losses I
Loss Prevention
Loss Reduction
Transfer
Exnosure .avoidance
I Loss Financing to Pay for Losses)
Retention I
Full Retention
Deductible
3. SELECT APPARENT BEST TECII 1IQUE(S)
Choosing Selection Criteria
t
Financial Criteria
Criteria Related to
Other Objectives
Transfer
Commercial Insurance
Contracmal Transfer
for Loss Financing
Decision Rules Applying Criteria
Loss Control
Loss Financing
4. IMPLEMENT THE CHOSEN TECHNIQUES
Technical Decisions
I Managerial Decisions I
5. MONITOR AND IMPROVE THE RISK MANAGEMENT PROGRAM
Pumoses
ro Assure Prooer Imoiementauon
ro Detect and Adaocto Changes
Control Program
Results Standards
Activities Standards
r 1 -
10"r � •.a` , ANNUAL COST OF RISK
TOTAL FY I TOTAL Ff
t9 t9 �
• PROPERTY COSTS j
Claims Administrator
Consultants
I I
Total
• RISK MANAGEMENT ADMINISTRATION
Annual Budget
Total Cost of Risk
—Percentage of Budget
Self -Insured
Losses
Insurance Premiums
Total
• LIABILITY COSTS
Self -Insured Losses
Insurance Premiums
Total
� • WORKERS COMPENSATION
Self -Insured Losses
Insurance Premiums
Total
• ADMINISTRATIVE SERVICES
Broker
L1-128C.12
•
The Professional's Handbook
'radical .
lisle
A nagemen#
Written oy:
David Warren. CPCU
Ros 'dclntosh. CPCU
with continuing counsel from a panel of advisors
(see names inside title page)
Topic A 9
MANAGEMENT
ask managers are managers. They may be
aanagers of a small department, but even a one-
er=-on depart=ent must plan ahead, delegate du-
fes, motivate others, budget time, make decisions,
nd evaluate results. Here are some practical
deas and some managerial concepts for the risk
manager.
L 1LiLNAGr G PEOPLE
Motivating
One of the most important management functions
is to motivate men and women — not just to comply,
but to work wiiling'iy and gladly. Risk managers
may not have a large staff, but they depend on
many people in the organization for cooperation
and prompt information.
How are people motivated? There are three ap-
proaches; McGregor s Theories Y and Y, and The-
ory Z. Theory Y is the traditional, aut:.oritarian
approach, which assumes that people are lazy by
nature, dislike work, and must be controlled,
threatened or coerced into doing &,air jobs.
Theory Y Waintains the opposite; namely that peo-
ple enjoy productive and meaningful work if
given a c Nance to par=cmate in decision -making.
There are probably people in both categories; but
Theory Y seems more generally accepted.
University of California Professor William Ouchi
publicized Theory Z.. Based on the Japanese style of
management, Theory Z expounds the importance
of teamwork, long-range planning, consensus de-
cision making, and strong employee/employer
trust and loyalty. To some extent, the concept has
also been tried in the US: IBM, Intel, Hewlett-
Packard, and Procter & Gamble have achieved
marked success with it. In 1973, when the Buick
plant in Flint, Michigan, encouncered serious
worker problems, Theory Z concepts were applied
within two years the plant became the most eff!
Bent in the General Motors family.
Specific application of Theory Z includes dividin
employees into project teams to foster a collectiv
work ethic; using semi -autonomous work group
so that workers can govern their own jobs; in time
of economic slumps reducing everyone's workin
hours rather than laying off people. Promotior
come more slowly, but also more surely. Stabilit
and loyalty prevail, rather than fast -track at
vancement and its companion, insecurity.
Most risk management departments are too sma
to use a team approach. However, team effort in tl
form of committees outside the department — to r
solve problems of safety for example — can be us
ful. -
Here are some guidelines that work with peop
anywhere:
• Treat employees as persons, not numbers.
• Trust your people — show them that you are cc
fident that they can do the job.
• Provide them with opportunity for success — a
acknowledge it when they achieve it
• Give them a chance to develop their potent
and to advance.
• Come out from behind your desk when int
viewing, reviewing, or disciplining.
• Let them know they are important to the firm.
• Fill them in on corporate policy and comp¢
objectives.
Practical Rlsk Management, Inc. 1989
n"c::cai ziskc ,Ianaceme lt. 0 C. Box :CC93. Oakland. California Q-610
[ANAGEIIEsu - •
. Topic A 9
Make it easy for them to get their job done the
way you like it.
Give them credit for their work.
Give clear instructions and be sure they under-
stand them.
Listen attentively to their suggestions or com-
plaints.
isk managers have to deal with many people.
hey have plants to inspect, contracts to review,
ijured employees' families to console. Tact,
enuine concern and sincerity are valuable at-
nbutes.
. risk manager must deal with women. Women
o weil in this field; and the risk manager or as-
istant is frequently a woman. In some places
ome resistence to equal treatment still persits.
'hese firms usually lose their capable women.
,We or female, a risk manager's prime concern
s cooperation and good use of everyone's skills.
.etting everyone do the work they are capable of
end bringing her coffee once in a while may be a
;ood step in that direction.
k risk manager must also deal with top manage-
nent. Without their full support the depart -enc
night just be managing insurance rather than the
whole gamut of risks. Reports and memos must be
:lear and concise, but also convincing of the ne-
:essity and the contribution of risk management.
When dealing with branches abroad, use simple,
seventh grade English. Avoid jargon and long
words that can be misinterpreted. On the other
hand, politeness is much appreciated. European
executives are more formal than their American
counterparts. Last names are used, not first — even
for secretaries or file clerks. Authority and
paternalism prevail. Concern for thrift and
avoidance of waste are a way of life. Information
is tenaciously withheld; secrecy and surprise are
the rule. Quality rather than quantity is stressed.
And Europeans believe in thinking before trying —
by the individual, not the committee.
Delegating
The better the manager, the more responsibility he
Page 2
will delegate. It may seem paradoxical, but it usu-
ally is easier to do the work oneseif. It takes skill
to train others. It also takes confidence and trust to
let go of one's work. And last but not least, it take
tact and persistence to follow up on the completion
of each assignment.
If you delegate responsibility, you must delegate
authority also. Human resources are often under
used, and unused human potential is the number
one source of employee dissatisfaction and frus
tration. To improve office morale, entrust people
with responsibility, make it their project, and give
them credit.
Give them plenty of space. Sit down with them oc
casiorally to hear about their progress. Tell then
what needs to be done only if necessary. Let then
tell you their approach first.
Train a successor for yourself, someone you ca
rely on, who knows your job well. This is the bes
way to show management you could be used in
higher position.
Line and Staff
Understand the organizational structure of you
company; it differs from company to compan;
Know how decisions are made and by whon
Know the channel of ccmmand, and the extent
authority — explicit or implicit — that goes with yot
position.
In =ost organizations the risk manager is a sta
position, except for purchasing insurance. Sts
people are primarily advisors, lacking t!
authority of command that goes with a line po-
tion. Tact and the skill of persuasion are needed
On the other hand, staff people are outside the org
nizational structure and are to some degree freer
move about They may have advisory, function:
or representative authority; functional authority
shut down a machine, for example, until safe
rules are complied with, or representative authc
ity to gather information or to see that records a
maintained.
Malang Changes
An effective manager makes changes, but
Practical Risk Management
LNAGE MNT
• Topic A 9
Page 3
tter how advantageous, people inevitably resist
urge. Therefore, the wise manager sells his
iple on the idea first, tells them how it will work,
.v it will affect them, and what they will gain
in it. Only then will he make the change.
Hiring and Firing
a all have preferences as to the person we can
sz work with. For the risk manager, who may
ve only one or two associates, their choice is im-
rtant. A talk with Personnel, to ensure that you
.ve the final word when hiring, may be worth-
lile.
yours is a union shop and job openings are
sted, be sure to spell out job requirements clearly
id completely, otherwise you may be saddled with
e wrong person or a union grievance if you turn
at person down.
appose you have an employee, a nice person with
i ailing mother and little sister to support, but to-
dly unsuited for the job — doing more harm than
)od. What are you going to do? Are you going to be
Ir. or Ms. 'Nice and keep the person on, or are you
ping to be Mr. or Ms. Dynamo and boot the person
it?
'our first stay should be to talk to that person. In
our meeting be explicit as to what the job requires
ad where he or she falls short. Discuss what can
e done about it, how much time you'll allow for
ieeting this goal.
f it is a hopeless case, find out what his or her
trengths are, what they'd really like to do. You
an do people a great favor by helping them find
that they really should be doing. So- often, people
se stuck in jobs that simply do not suit them; they
Lever do well, but they are kept on, and it becomes a
way of life. The best thing that can happen to them
ften is to be thrown out of their rut — and the sooner
he better — with a chance to find the work that suits
hem and they can learn to do well. There is a
)lace for everyone.
)ne executive has used the following approach. He
iad an employee that was not working out, so he
:ailed an employment agency and gave them de-
railed data on that person's capabilities, character
ind salary. :Tot much time passed when the em-
ployee came to him and asked to resign to accent a
better job.
II. lNLANAGING TLME
Managing time calls for planning. How does the
risk manager plan? It depends on objectives. A
production or marketing manager's goals are
clearly defined — to produce or sell a thousand
widgets, for example. You as risk manager must
define your objectives, both for long and short term
planning. Management authors call it manage-
ment by objectives or MBO.
Consider three types of objectives:
1. General guidelines, such as
Protect corporation from catastrophic losses.
Streamline and simplify operations.
Use resources, particularly computer cane"
bility, to best advantage.
2. Specific objectives or projects, such as
• Formulate and have management endorse s
risk management policy.
• Compile a risk management manual fo,
people in the field, or update the existing one
• Conduct a feasibility study to self-insur
workers compensation.
• Develop a corporate disaster plan.
3. Continuous objectives or tasks, such as
• Weigh benefits of safety and loss preventim
alternatives.
• Reevaluate loss and claims handling.
• Compare various finance and cash fio,
premium payment plans.
• Periodically check the proper application <
loss and claim coding.
• Visit new locations and evaluate risks.
• Review contracts, leases, product labels.
• Keep in close touch with the products di
velopment people to ensure adequate recor
keeping regarding safety testing, and tt
promotional people to ensure proper labelir
in regard to instructions and warnings
• Review company activities in light of c
an
Practical Risk Management
NAGEIiEN7
. Topic A 9
Page 4
verage
• Let it be known to everyone — frequently —
that you are the first to be contacted in case of
disaster.
cific projects are handled best by breaking them
rri into manageable parts and.then scheduling
m. A risk management manual, for example,
be done one chapter at a time -each procedural
t to be used in the field when completed.
itinuous tasks are also best scheduled, other-
;e they are easily put off. To avoid cluttering
it daily calender with projects three, six, and
.e months into the future, a monthly prodder can
used instead, with projects assigned to specific
nths. As the risk manager needs to plan at least
to three years ahead, such a monthly calender
sn essential tool.
a small department, a three-ring binder serves
a purpose well. Use a new page for each month as
a need arises. Suppose, for example, a policy ex-
-es in April 1987. Note the information on a
eet, date it 2r87 (two months early to allow time
negotiating new coverage) and file it in your
ider. Do the same`or renewals, for OSHA
iedules, and the myriad other risk management
sks. As each month arrives, you can schedule
ur projects for a specific day.
Weekly Scheduling
anagers are constantly sidetracked by
aergencies, deadlines, paperwork, and people's
•oblems. It is easy to lose track of time. A good
Se, therefore, is to set aside a regular hour early
. the week to determine priorities and plan the
eek accordingly.
x 5" cards are handy for this purpose. ,Sark
)wn each project on a card. Keep notes and tele-
none numbers on it too. Miscellaneous, small
uks can be combined on one card and then
.-ossed off as they are completed. Every morning
rok through your cards and determine your daily
rhedule. With all tasks to be done at your finger -
Vs, you can concentrate on one project at a time
rithout the stress and strain of keeping it all in
our mind. It gives you a good feeling of being
rell-organized and on top of it.
,,Maximizing Time
If days were free of interruptions, managers could
,get their work done in half the time. How can one
maximize time? Here are some techniques execu-
tives use:
• Do important things first.
• Use the early morning before the phone rings for
complex problems, for thinking and planning,
for reviewing policies, studying loss runs, and
comparing finance plans.
Set a regular time aside for getting things done.
Choose a time that you are at your best. Let your
secretary know that during that hour or two you
can be interrupted only for emergencies. Nuke
it a regular, daily habit, so people will get used to
not intern pting you then.
• Have meetings over coffee, standing up rather
than in comfortable chairs. People will come to
the point more quickly.
• lfeet at the other person's office. It is often
easier to get up and leave than to get someone
else to leave.
• Schedule meetings in close succession, with
enough time to cover the subject, but not enough
to stretch it unnecessarily. Remember Parkin•
sons Law: Work expands to fill the time avail-
able.
• Keep a file for regular meetings you must at
tend. Put in it all pertinent data as you receive
it. When it is time for the meeting, you are pre
pared.
• Avoid writing formal letters if you can phone
wire, or send a handwritten memo. For speed
ier replies ask the recipient to respond right o:
your memo and return it
Simplifying Operations
Whenever errors, oversights, or problems occu
see whether the operation should be changed I
avoid a recurrence of the same problem. Strive fz
simplicity. It is a law of nature that everything b
comes more complex in time. Yet the more cor
4A
Practical Risk Management
LNAGM�,'^TT 0
• Topic A=9
Page 5
x your operations, the wider the margin for er.
Weed out unnecessary paperwork, unessen-
.1 reports, no longer needed functions, anti-
ated forms. Streamline your operations.
III. DECISION _NLA_ELXG
:esion making is the life blood of an organiza-
in. It is the daily bread of the executive. If you
ead making decisions, particularly when you do
it have all the facts, management is not for you.
ink of decision making in terms of:
C-ood judgment applied in the best interest of the
company;
Hard work to dig out all the facts you can in the
time available;
Acceptance of the fact that you will never have
ail the data you would like, that even while you
are deciding, circumstances are than; ng.
And acceptance of the fact that `here is rarely
one best decision, but that many decisions will
eventually get you there; and
:. Courage to modify a decision if a better course
is indicated.
successful executives will admit that many of their
recisions are based on gut feeling rather than ex-
mustive computer runs and quantitative analy-
ses. Their reason is that such studies lean too
.eavuy on figures and ignore intangible factors.
Figures, as every one knows, can be slanted to
prove whatever you want to prove.
Suppose you want to show that claims declined.
You can come to almost any result you desire
through a variety of statistical manipulations by
using diuerent base years, setting aside unusual
losses, comparing selected recent years' losses to a
loss projection of a selected number of earlier
Years, or correlating losses to sales, payroll, gross
income.
Reliance on judgment, therefore, is often prefer-
able. and figures should be looked at with a skepti-
cal and analytical mind. Figures do have their
place, though. They are invaluable, for example,
in deciding on cash flow plans, retro premium al -
ternatives, self-insurance, captives, and retention
levels.
Finding The Answer
Frequently a risk manager is confronted with a
problem he doesn't know anything about. Many
tasks are one-time, rarely recurring ones, such as
writing a corporate disaster plan, composing a
procedural manual, handling a major hurricane
loss, dealing with kidnappers, and analyzing po-
tential new product claims.
Pitfalls of inexperience with these tasks can be
avoided by getting advice. You may want to call or
take a risk manager who has handled similar
problems to lunch; most people are flattered and
glad to give advice. Books are written on most
subjects. Sampies of bid specifications or disasret
plans are helpful to get you started on your own
copy. Brokers and their associates have certair
expertise. The Risk and Insurance Managers' So
ciety (RIFTS) has a "hot-line" for problems. Ant
for important problems, you may want a profes
sional consultant.
IV. MANAGEDvMNT TECFLNIQUES
Legal & Tax Ramifications
A risk manager must understand the legal and to
ramifications of risk and insurance — at least t
the extent to know when to seek tax counsel. At
subsidiaries wholly -owned or separate entities
Do they file joint or individual tax returns? Ho
about the foreign branches? what must be done 1
preserve the Bermuda captive's insurance con
pany status?
Arms -Length Dealings
An important risk management consideratic
when using a captive or insuring affiliate core
rate entities is the consequence that premium a]
loss allocations will have on the corporate tax p:
ture. To illustrate: Company A controls Camper
B, though stock ownership is less than 5090 and t
returns are filed separately.
Company
losand insuz
Company B. Company has a
A pays for it. In addition, Company A provid
extra funds and services "see of charge (earnin
of Company A have been good) and expenses the
Practical Risk Management
ANAGElYIE1VT
• Topic A 9
;ts on its tax return.
t permissible, says the Internal Revenue Ser-
e. If two corporations under common control
al at less "ban arm s length, the IRS reserves the
lit to reallocate income and expenses between
am — usually to the detriment of the tax -paying
rent corporation.
e IRS will not be deterred by the argument that
nership is separate (usually 50°70 or more is con-
.ered controlling ownership for most tax pur-
ses). Therefore, if you are insuring other corpo-
z entities that file their own tax return, you want
treat them as if they were outsiders; charge them
premiums, services, loans, etc. — no financial
rors. In other words, treat them at arm's length,
d consult corporate tax counsel.
Forecasdag-Methods
recasting is vital to the risk manager in plan-
ig reserves, establishing retention levels, de-
Ung loss prevention alternatives, and the like.
sious methods are available.
near Projection. For adequate planning, losses
tst be projected. Linear projections or regres-
in analyses are useful tools for these purposes.
)wever, beware of linear thinking. Business
d human affairs do not lend themselves to clear-
t, straight-line projections. -Many unforeseen
ents are likely to intervene and aiter the linear
ogression of the trend. It is important to focus
tention on all possible factors — economic, social,
Eentific — and take them into account to foresee
rning points. Adjust projections as changes oc-
.r.
,ojections can be adjusted through more complex
ending procedures which recognize the effects of
rious factors, and which allow for the trend line
be curved rather than straight. Any competent
atistician can help you with multiple curvilinear
ending or regression analysis.
ausal Modes, using regression analysis, meth-
s of least squares, coefficient of determination
Be topic A-35) are useful tools for the risk man-
;er. The forecast variable is arrived at by using
causal variable. For example, in order to project
Mid
workers compensation (W/C) losses, the risk
manager makes use of the variable that deter-
mines WIC losses — usually payroll. Payroll pro-
jections then become the causal mode to project
WIC losses. The same principle can be applied to
project transit lasses using total shipments made
as causal mode, or auto claims based on total miles
driven, and so on.
The Delphi -Method is primarily used in economet-
ric forecasts, and has little application for the risk
manager. It makes use of questionnaires sent to
individual experts who respond in writing. Re-
sults are tallied and returned to the experts for re-
view and rethinking of their previous views.
Subjective Assessments using experts are valuable
when new technology is expected to affect the time
period under consideration, if past patterns are
changing, new influences are surfacing, or data
are unavailable, insufficient, or too unreliable for
quantitative analysis. Estimates are based en-
tirely on expert judgment. It used to be referred to
as judging by the seat of one's pants.
PERT or the Prog-am Evaluation Review Tech-
nique can be a handy tool for the risk manager be-
cause it provides an approximate measure of future
circumstances, and is easily used. Instead of spe-
cfiic percentages or figures, events are measured
as being optimistic, pessimistic or most likely to
occur. 0 equals optimistic, P pessimistic, and -ML
most likely. 0 and P are given a weight of 1, -IL a
weight of 4. They are then averaged in a formula
to arrive at an expected value, thus:
Expected Value = O P AML
6
Decision Trees are useful for dealing with situa-
tions that require a sequence of decisions based on
chance events that cannot be controlled, such as
determining cost and value of different safety
measures. Each decision results in a probable
answer which is given a value representing the
likelihood of occurrence. The decision then is
given a dollar figure representing the utility of
arriving at this point
-1IS, as it is usually called, denotes a system a.
4/es
Practical Risk Management
• Topic A 9
to processing equipment, software, and people
io turn data into information. It is replacing the
m EDP (electronic data processing). EDP was
adequate name up to the sixties, when the com-
er was used simply as a fast calculator for rou-
se, large-scale operations. But when it became
parent that the computer, by providing better in-
rmation, could be used for planning, control of
erations, and decision -making, the new concept
MIS developed.
ie concept of MIS is based on the distinction be-
reen data and information. Data are merely
ndom facts and figures (claims data, historical
ies, records). By retrieving, processing, and
aluating data, they can be turned into meaning-
1 information. Information is data organized so
Lat it can be comprehended or evaluated.
uormation systems are composed of various sub -
"stems, such as payroll, purchasing, sales. Each
lb -system has specific decision -making objec-
ves, such as determining the most economic or.
er quantity for purchasing; planning cost, mate -
.al and timing for project control; planning loss
nerves and prevention measures for risk man-
gement.
I
e goal of"MIS is to integrate the various sub-sys-
ems through organization of the data bank. The
ata bank (also called central data base) stores
nd retrieves data used by the various sub-sys-
ems. Proper coding and timely updating is of
.eat importance, as is manager involvement to
xplore practical decision making applications.
,or example, a computer loss run, like the major-
ty of computer applications, is essentially of a
ie-4ca1 nature — it is data, not information. To
spgrade the system for decision -making, the com-
iuter can be programmed to (1) make simple decf-
ions for the risk manager and (2) supply sec-
ndary information reports to assist further deci-
,ion-making.
'o illustrate, instead of simply listing all claims,
he computer will extract all claims the risk man-
sger has a specific interest in, such as more than x-
:umber of claims of a certain type or in a certain
ovation, claims of a certain magnitude, claims
hat should have been closed or had recent action,
ind so on. In other words, the computer decides
Page 7
where action or attention is needed.
Experts agree that computers are still greatly un-
der-utilized.
Optimization is a frequently used term in busi-
ness. It implies chosing the best alternative and
trading off among conflicting or constraining ob-
jectives. Maximizing, on the other hand, means
getting the best results without being limited by any
constraints. One might optimize a risk manage.
merit program subject to a budget, attitude of man-
agement, capability of personnel.
Subootimization looks separately at the various
goals of isolated functions performed within the
system. An example of suboptimization in the rids
management department might be optimut:
safety. Optimization, on the other hand, woukf
look at safety in the context of the whole organiza
tion, available resources, alternative use of funds
etc., and trade off between these conflicting objec
tives.
Simulation Models
One simulation model, the Monte Carlo technique
has been found useful in evaluating safety device
when multiple performance criteria and dynami
change over time are involved. using repeater
computer runs, it shows results of a large numbe
of various relative figures. By simulating model
with varying characteristics, the outcome c
different combinations of factors and events can b
estimated.
Zero -base budgeting has become an increasing]
popular approach to overhead budgeting, and ris
managers may well find themselves confronte
with the task justifying their programs. The pu
pose of ZBB is to allocate resources to programs the
show the greatest cost -benefit. ZBB helps cost ce:
ter managers to analyze their operations bette,
and general managers to allocate funds better.
The process involves four steps:
• Identification of specific decision units, i.e. co,
4A
Practical Risk Management
ANAGF_N± TT •
. Topic A 9
centers or activities
Critical analysis of usefulness of each function
and operation, comparison with alternative
ways of operation, and cost analysis of operation
to be performed. Specific performance mea-
sures are used, such as workload (number of
tasks to be performed, divisions served), per-
formance (unit cost, effectiveness) and other
pertinent data
Allocation of critical resources based on cost -
benefit evaluation of each decision unit
Detailed budget preparation once allocations
have been determined.
ote: With most risk managers, application of
mulation models, PERT, and decision trees in
,e risk management department is the exception
ether than the rule. Lack of enough solid data
ay not warrant their practical application.
mong the exceptions who are using these tech-
iques are some aerospace firms and those in-
)lved with government work. Application is also
Lade in product design safety considerations.
he major trend in risk management lies in better
iformation systems combined with professional
idgment.
RECOINZ ENDED REFFRFNCES
Encyclopedia of Professional Management, by
Bittel and Ramsey, published by McGraw-Hill
in 1985. A complete and informative refer-
ence.
. Management: Tasks, Responsibilities, Prac-
tices, by Peter F. Drucker. Published in 1974 by
Harper & Row, New York. 839 pages. A com-
pilation of the thinking of the country's lead-
jag management consultant. Highly read-
able. Oriented more toward philosophy than
detail.
3. Managing Toward Accountability for Per-
formance, by Robert Albanese. Published in
1978 by Richard D. Irwin, Inc., Homewood, IL
60430. A thorough, readable cataloguing of the
various schools of management thought. 636
Pa.
4. A Manager's Guide to Change, by Elmer H.
Burack & Florence Torda, published in 1979 by
the Life Time Learning Publications Division
of Wadsworth, Inc., Belmont, California A
practical how-to guide discussing the in-
evitability of change and ways of initiating
management changes rather than reacting to
it. 235 pages.
A Guide to Data Processing, by C. Orville El-
liott. Published in 1981 by the Learning Sys.
tems Company, Division of Richard D. Irwin
Inc., Homewood, IL 60430. A paperback de•
scribing the kinds and capabilities of Man.
agement Information Systems, ranging frog
the simple to the complex.
The Managerial Decision -Making Process, b3
E. Frink Harrison. Published in 1975 b7
Houghton -Mifflin Company. 345 pages.
basic description of the quantitative and hu
man behavior approach to making better busi
ness decisions.
Business Statistics - A First Course, by John E
Freund & Benjamin NL Pearl. Published ij
1974 by McGraw-Hill. 359 pages. A concise
basic description of quantitative technique
ranging from elementary data gathering t
regression analysis. It's the book to read
other statistical books appear too complicated.
uA
Practical Rlsk Management
a
The Professional's Handbook
3ractica!
lisk
Management
Written bv:
David Warren. CPCU
Ros McIntosh. CPCU
with continuing counsel from a panel of advisors
(see names inside title page)
Topic A 2
RISK IDENTIFICATION
DWORTANCE
lentification of risk is the first step in the risk
,anagement process. If a risk isn't recognized, it
:n't be treated. There is, of course, the old school
I
hought that believed in buying broad properly
or: liability insurance policies with high limits,
--sdng that they cover eve ryt This thinking
o longer holds water, if indeed it ing. ever did. First,
todern business is fax too complex to insure all
:eks. Second, even if everything could be covered,
.le cost would be pro'ribidve. usually, retention is
oe more economical approach.
)n the other hand, too many risks of crippling loss
otential go unprotected because they have not been
ecognized.
oday, the risk manager identities risks, not only
or insurance but, to a greater extent, for loss pre-
,ention. The knowledge, for example, that bac"
njuries comprise 607o of compensation losses will
!etermine the appropriateness of loss prevention
xpenditures. Knowledge of how many fires have
;een caused by c• t::g and weldi-g operations and
:ow many dollars were lost as a result, tells the
xtant of risk. Such knowledge will determine loss
ontroi measures and expenditures.
n an organization large enough to have a full-
ime risk manager, risk identification and mea-
surement are primary functions. But what about
,he smaller company with no professional staff l
:n any organization, someone has, or should have,
he responsibility for risk and insurance. It is this
:erson, wnether it be the president, industrial rela-
tions manager, personnel manager, operations
nanager, treasurer, chief financial officer, sec-
-etary or controller, who should marshal all the
resources available to see that the job is done.
The key to successful risk identification is an
imaginative and exploring mind and the ability tc
communicate well with others. Some of the tasks of
getting information can be delegated or requester
from others, such as cash exposures and securities
at risk from the financial officers. However, ever
though the function may be delegated, responsibil
ity can not. Therefore, it is important to have sys
tematic methods for insuring that all phases o.
risk identification are adequately completed.
Some organizations rely on periodic audits frog
risk management consultants to see that the job is
being performed properly; some use the consultan
on a continuing retainer basis. However, the gen
eral practice is that most firms without in-house
staff rely upon the agent or broker.
Insurance agents and brokers therefore should al
be thoroughly conversant with the techniques o
risk identification and measurement. Evel
dough their compensation is generally from th
sale of insurance, they will often be called upon t
act as risk manager. The producer who can per
form continuing risk analyses for his client ani
provide periodic detailed information will mak
himself indispensable to his client.
TECMNIQL7ES
Risks can lurk in obscure places; therefore, n
single technique is adequate. The risk manage
must employ many techniques, not only initials}
but on a continuing basis to keep abreast of a
changes and developments that may create ne,
exposures.
L orientation
The first step is to gain as thorough a knowledge a
D Practical Risk Management, Inc. 1989
Practical Risk Management. P.O.?ox 10093. Oakland. California?4610
SKMEN] - CATION •
• Topic A 2
Page 2
sible of the organization and its operations. To
the details into the broad picture, it is necessary
lave a general knowledge of the goals and func-
is of the organization. If the risk manager is
sident of the company, he will need no further
cctrination. If, on the other hand, the individ-
is a new producer or consultant encountering
organization for the first time, there are doce-
nts that can be reviewed to get a general
:rview.
,he organization is a public corporation, the best
.ce to start is with the latest annual report and fi-
acial statement. These will provide general
ormation. A great deal more depth can be ob-
ned from the SEC Form 10-K, which all U.S.
blic corporations use. This document provides
tailed summaries of the various activities. It
sy list all major locations.
the organization is a private corporation, part-
rship or sole proprietorship, it is a little more
:iicult to get anything definitive in writing.
;re, the financial statement is a good place to
irt, but operations themselves will probably have
be described by an individual in the company.
the organization is a public body, it would usu-
ly have an annual budget which is somewhat
mparabie to an annual report, but considerably
ore detailed in outlining the various depart-
ents and the extent of their operations.
2 Interviews
L an initial risk analysis, interviews should be
old with every person who can contribute impor-
nt information. This will generally start with
Le president or general manager for an overview
operations and goals. It may also include inter-
ews with:
perations managers in various departments to
etermine what is being done.
he chief financial officer to determine the finan-
al condition of the company, what money and se-
irity exposures exist, and what loss of certain fa-
lities would mean from a financial standpoint.
,egal counsel, to determine what major contracts
exist, what hold harmless agreements may be used
and what liability exposures he is aware of.
The plant engineer to determine critical machin-
ery, extent of maintenance program and more
technical details of operations. The chief engineer
to answer questions regarding research, develop-
ment and quality control.
The purchasing agent to determine what purchase
order terms are used, and the degree to which the
company is protected by manufacturers of pur-
chased goods.
The industrial relations manager to determine the
status of union contracts regarding safety and
workers compensation.
The plant nurse to gain insight into the type of in-
juries occurring, use of loss prevention techniques
such as pre -employment physicals and audio -
grams, and the extent of possible outside personal
malpractice insurance.
Safety manager, not only for safety procedures, but
to gain a better knowledge of operations in gen-
eral. The safety manager is usually well ac-
quainted with the plant processes.
Employees and foremen, to get a feel for what is
actually going on. Casual conversations with em.
ployees and foremen might show if there is say
strain between employees and foremen or man.
agement — a sign of poor morale. Plant morale is
an important factor in employee accidents and
employee dishonesty.
Remember that in all interviews the goal is to de•
terr.-ine what is important to the organization.
Physical inspection of property is the best way ti
learn about operations. However, it should alway
be preceded by an orientation as described above
Many things can be missed if the risk manage
does not have some idea of what he is looking fax
On the other hand, he should always be alert to dis
cover activities that may not be apparent.
To make a plant inspection, it is desirable first t
4/8
Practical Risk Management
IDF� I =CATION
Topic A 2
Page 3
a a plan of the premises, preferably a fire map
scale of 1" = 50% or for a large plant, 1" = 100'.
.ost all large organizations insured by HPR
:fly protected risk) underwriters have such
is available. For other buildings, architectural
wings or local layouts of some kind will be
=1. These plans and drawings, however, may
always be up to date.
,e building is used for manufacturing or an as-
:bly process, it is often desirable to start with the
,k flow; that is, where the raw materials enter
building. This can then be traced through the
ious processes so the inspector can see what
t c•ular process might represent a bottleneck or
ical hazard. Such a flow chart is invaluable
en calculating business interruption loss po-
em. However, don't let the work -flow approach
tract youfrom seeing every spot of the entire
.rat.
vat's r: to w.sualze what is or could be happen -
If finished goods are being produced, ask if
:y are stored at any location. Sometimes there
1 be little warehouses where overflow production
stored. Without asking, you might never know
existence of such places. During a physical in-
action, the risk manager has to keep his mind
en for all sorts of questions. Are aisles and exits
arly marked? Is housekeeping the way it should
? What are construction materials? How fast
11 they burs? Are fire extinguishers the proper
pe and properly located? Do people know how to
erate them? How good is quality control? Are
ilers or pressure vessels present? what rash or
open: is vulnerable to then and what protection
arforded7 Is that boat sitting over there on the
rner ever used to take guests out on business?
)uld those gases or overflows create environ-
ental liabilities?
4. Flow Chaffs
flow chart is useful in a multi -plant organiza-
on where goods flow from one location to another,
it may also be used to advantage with a singie
.ant A simple flow chart will show goods that
ime into the building, the source, mode of trans-
)rtation, where title passes, what is done to the
Sods inside the building and how they are shipped
IL A simple char might look like this:
h
a�
Supplier 7A
Plant ya
utnwneaa S.""
.Me Oae go-,
External Flow
Painting
Contractor
s Sflat00
Own Plant
(See Internal
Flow Chart) T,
Supplier 8 ti.+''
Plant
i�
Figures show maximum value at risk.
internal Flow
PamontXatiruttaemaYr-1
Fs-lbm=
Oven
1 usemar
stem Ram
External Flow
For a simple process, charts are not needed, but a
flow chart works well for more complex processes.
Points to note are:
1. The arrowhead shows the place where title
passes. Supplier A ships FOB factory, so you
have the transit risk. Supplier B ships by air
but is responsible for loss en route.
2. 1laximum shipment values can indicate
whether the loss potential is low enough to as-
sume without insurance.
3. The internal flow chart shows that everything
is going through one heat treat furnace. Spe-
cial contingency plans for furnace downtime
are indicated.
4. The painting contractor poses a significant
loss potential both for contingent business in-
terruption and loss of goods. Is he contractu•
ally obligated to replace goods destroyed by any
cause? Is he adequately insured? Who has the
transit risk?
4l85
Practical Risk Management
LSB MENfiIM.ATION •
• Topic A 2
Page 4
5. Loss Reports
large organization should have regular reports
all public liability and workers compensation
sses and potential claims, regardless of size.
requent small losses show a higher probability of
severe loss. A very large organization will also
eve regular property losses. Examination of
iesa forms will indicate the kinds of losses which
re occurring and is useful in assessing the degree
P risk of certain activities or operations. (Loss
;ports are discussed in Topic D-8.)
C:af — pe.►n r..*3az�
'he risk manager cannot rely on other people to
ell him what is happening. He must keep a wet
.nger to the wind at all times. A good way to do
;us is to review certain documents on a regular
asis; preferably, have these documents forwarded
o him as a standard practice. Some of these docu-
nents are:
Minutes of Board of Directors Meetings. Minutes
vill outline plans which may call for risk plan-
eing in advance.
1equest for Funds. Before new buildings or ma-
limery are acquired, the project must be proposed
snd approved by various departments. The
`Request for Funds' form can easily be routed to
he risk manager who will then have a good source
3f information on what changes are planned and
what new risk exposures may develop.
Contracts and Leases. It is often impractical (but
always desirable) for the risk manager to review
contracts before they are signed. However, there
usually are persons responsible for these contracts.
For those persons the risk manager should estab-
lish standards and acceptable terms and condi-
tions for each type of document. He should develop
an understanding of what issues are important
from a risk management viewpoint and which
non-standard documents should be reviewed by the
risk manager. He certainly should see the docu-
ments after they are signed if he is unable to see
them before. Contracts contain requirements to
carry insurance, to name additional insureds, to
notify in case of cancellation, to assume liability.
Therefore, a method of routing all contracts to the
risk manager is essential.
Union Agreements. Safety and workers compen•
sation provisions are or -ten contained in unior
contracts and should therefore be reviewed by the
risk manager to ensure compliance.
Company Manuals. Administrative manuals
controller manuals and others often have provi
sions relating to risk, insurance, claims, safety
fire protection standards, and other documents.
Miscellaneous. Depending on the company, chec]
such things as by-laws (for officer indemnifica
tion clauses), purchase orders, standard construc
tion contracts, descriptive literature, catalogs, ad
verdsing, rental agreements, and so forth.
7. Cheokiists
One of the most common aids to risk analysis is
checklist. There is almost an infinite numbs
available ranging from very short to extreme]
detailed (see Recommended References at the en
of this topic). They are useful to jog the memos
before and after inspections, but usually should ni
be used during an inspection. Following
"laundry list" narrows the inspector's vision an
can result in overlooking non-standard cond
tions. Insurance company prepared checklis
typically list only those exposures included as L
sured perils on standard insurance policies.
representative checklist is included at the end
this topic.
& Financial Statements
Financial statements consist of a balance she
and operating (profit and loss) statement.
The balance sheet is simple in concept. It consie
of assets on one side of the ledger and liabilities
the other. The listing of assets can indicate to t
risk manager what kinds of properties are press
though the figures are indicators only — not fi:
values for insurance purposes.
A balance sheet may show negotiable securiti
which might be impossible to detect during an
spection. It can also indicate how much cash
working capital is available — a measure of 1
assumption capability. On the liability side of
ledger, policyholder's surplus and reserves
other good indicators of the company's capability
Practicai Rlsk Management
5S IDENNTMCATION •
• Topic A 2
Page 5
¢me loss. (For methods to determine risk re -
con see Tonic B-1). Footnotes to the financial
cement wilt show possible or pending liability
is or claims.
: profit and loss statement will show the sources
ands, and how they were spent.
th these documents are excellent sources of gen-
t information about a company.
fildings and Contents. One of the principal
als of risk identification is to measure the
acurt of loss which can occur. All real and per
-
nal property should be considered together to as -
main the largest potential loss from various per-
. One way to do this is through a diagram of a
ilding where values can be marked on the plan.
it the peril of fire, fire divisions can be noted and
I values within that fire division can be added. It
important to include not only the building value,
ct the value of all personal property which could be
valved. This would include equipment, fur-
shings, machinery, stock and supplies, exposed
ihicles, and property of others for which you are
able, etc. It is important to include also time
ement losses such as business interruption and
ctra expense so that the maximum loss potential
r each large loss can be assessed in total.
ther perils may cause greater or smaller loss
fan fire. Ear-houake, for example. can damage
nderground and non-combustible structures
%rich fire would not harm. Flood, on the other
and, might have a relatively low loss potential
ompared to fire. The loss potential for each im-
ortant peril should be analyzed. (For methods to
alcalate loss potential see Topic D-2, page 2.)
toilers and Machinery. Boilers are considered
eparately because the steam explosion risk is
:sually excluded from most property policies.
iowever, other explosions — including those of
iressure vessels, but excluding explosion of steam
Boilers, steam pipes, steam turbines and steam en-
pnes — are covered in the extended coverage en-
iorsement. The scope of a boiler explosion can be
high (though not usually as high as for fire). Loss
potential for each unit should be determined. (See
Topic F-5 for details.)
Machinery can hold significant loss potentials.
For example, a large processing machine may be
susceptible to cracking of a large iron or steel cast-
ing. Though this may be a rare occurrence, it can
happen and create large losses (especially from
down -time and if the machine is of foreign manu-
facture or old).
A list of vehicles should be examined to determine
values. If garaged at the same location, determine
the maximum possible loss subject to a single loss
from fire, explosion, windstorm, etc.
Aircraft. many unique situations apply to aircraft
because of their high loss potential. Items which
affect risk are qualification of pilots, use of the
craft, FAA certification status, type and number of
passengers carried, how it is maintained, where it
is hangared or tied down, and the anculty of ob-
taining spare parts (see Topic G-9, Aircraft).
Watercraft. Because maritime law applies to wa-
tercraft, special care is needed to identify its use,
number of crew, cargo, passengers or guests, where
it is berthed and repaired, condition of fire protec-
tion facilities, compliance with Coast Guard regu-
lariorrs, and the like.
1Sost general liability policies exclude liability for
watercraft over a certain length (usually 26 ft.)
and above a certain horsepower.
Ocean Cargo. The first thing to check about ocean
shipments is the way in which cargo is packaged.
Is the job done professionally? It is usually neces.
sari to obtain a list of all shipments made over the
past year or more. The list should show the value of
each shipment, which is an indication of the max
imum loss potential. It should also be determiner
whether more than one shipment will be trans
ported by the same strip. In assessing risks, it i;
important to remember that ocean voyages presen
unique hazards from perils of the sea as well &
things such as temperature changes with possibIi
rusting or spoilage of materials. Sometimes it i
necessary to find out whether adequate surveyor
are immediately available at the port of destine
don so that claims may be quickly resolved
418
Practical Risk Management
R IDEN flE XAMON •
Topic A 2
Page 6
ehouses and other locations where goods may
oncentrated should also be determined.
ids in Transit. Goods in transit by truck, rail
dr present similar risks. Records should be
wined to determine whether or not the ship.
Is are of sufficient value to require insurance.
luently, many small shipments may be self-
Lred if the values are within the tolerable loss
1. It is important also to check where title
>es and to examine the bills of lading or other
)ping documents to determine conditions of
)meat. Recall that while truckers and other
non carriers are responsible for the goods in
r possession, they are not responsible for "acts
Eod,' `acts of the public enemy,' exercise of pub -
authority, fault or neglect on the part of the
)per, and inherent vice or nature of the property.
y are also limited in their liability by tariffs or
sibly a "released" bill of lading.
most significant crime loss potential is that of
;loyee dishonesty. The lass potential is higher
n most realize but hard to assess. A useful for -
la has been prepared by the Surety Association
a guide to necessary limits (see Topic F-11, last
e). The hazard is affected by the general cal-
r of management and the degree of control
rcised. Inventory controls and their enforce -
at are a good gauge as to the loss potential from
ployee theft and inventory shrinkage. It is of -
helpful to talk to an internal auditor about coa-
ls present or lacking.
positor s forgery risks exist where blank com-
ay checks may be misappropriated and forged.
e extent to which blank checks are protected is
important aspect of risk. Checks that require
able signatures pose less risk, as does the sepa-
aon of check writing and check balancing.
ncentrations of money and frequency with
Lich it is deposited should be determined. Build -
of cash over weekends or holidays may increase
e hazard.
Liability
ability risks vary widely from one operation to
Lother.
General Liability. Common exposures are in-
juries such as slips and falls due to poorly main-
tained premises. Normal safety practices should
be of prime concern. Other exposures arise from
company -sponsored sporting events and recre-
ational facilities, leased premises, and almost all
types of operations.
Determine whether officers or employees use their
own or charter boats or airplanes, especially where
they involve customers.
Products. Manufacturers, distributors, eating es-
tablishments and anyone producing or handling
products has an exposure to loss determined by the
degree of hazard posed by the product. Particular
hazards arise from such things as drugs, ladders,
contractors' powder -actuated tools, sort drink bot-
tles, rotary lawn mowers, and many others.
Quality control during the manufacturing process
is essential. Records should be maintained show-
ing the procedures taken, with details on who,
when, etc. All advertising and written material
describing the product should be screened for in-
criminating statements or overblown claims. If
your company is a distributor, check for repackag-
ing or other alterations which may create liability
or void protection by the manufacturer. Records
pertaining to product pre -introduction testing are
particularly vital as many major product liability
cases have shown. The risk manager should de-
termine whether adequate testing is done, but more
important — and more within his capability — that
records of all testing are carefully maintained.
The same holds true of product quality control.
Automobile Liability. Automobile liability claims
can be incurred contractually, by employees driv-
ing company -awned cars or their own, through use
of rental cars, under financial responsibility or
no-fault laws, or a myriad of other situations. See
Topics G-8 and G-8a for more detail.
Professional Liability. Doctors, attorneys, ac-
countants, architects, engineers, etc., have obvious
exposures. Many other individuals and firms
have exposures to a lesser extent because anyone
who holds himself out to be an expert in any field
may be held responsible for mishaps following
faulty advice. Incidental exposures exist, as for
contractors who may occasionally give engineer-
ing advice. Companies may also have vicarious
4/89
Practical Risk Management
K IDMVTMCATION •
• Topic A 2
Page 7
isures from company doctors on contract.
ttracts. Much liability is assumed or avoided
:ontract. This is a special field in itself- See
is A- 7 .
cialty Fields. .Many special forms of liability
it be assessed, such as for directors and oiZ-
y errors or omissions, SEC liability (errors in
spectus), fiduciary, and ship charters.
Meas luring Liability ExPosurw
tluating the maximum loss potential from lia-
ty is difficult because it represents the largest
gment which could be rendered against the
1pany. This varies somewhat with the size of
organization — the larger the organization, the
star its liability exposure. It also varies on a
zonal basis. Judgments have tended to be
ger on the East and West coasts than in other
,,s of the coon,=y. Exposures are best determined
an experienced person evaluating the legal eli-
te of the location involved, the type of exposure
i the type and size of tine organization. A very
igh guideline is:
Company
Minimum
Revenues
Limits
ss than $5 mil.
$ 5 million
25 - 100 mil.
10 million
! 00 - 250 mil.
15 million
250- 500 mil.
25 million
500 -1,000 mil.
50 million
> -1,000 mil.
100 million
any event, no commercial organization should
nsider liability limits less than $5 million un-
ss particularly severe market limitations make
e cost temporarily excessive.
Workers Compensation
orkers compensation exposures are quite differ -
it from public liability because claim amounts
,e limited to a stated schedule. The risk is deter-
ined largely by statutory benefit levels (which
try by jurisdiction), job site working conditions
id safety measures.
his is one area where, if you are insured, broadest
possible coverage is desirable. The Other States
endorsement, Longshoremen's and Harbor
Workers' coverage, voluntary Compensation,
should usually be part of the policy. Monopolistic
state fimd states do not generally provide such cov-
erage, and particular care in handling such expo-
sure is needed. Check to see if the company has
individuals in states where it may appear that no
employee relationship exists.
It is most important to pick up any maritime or de-
fense base exposures, so check for persons who may
be working on or near navigable waters or on de-
fense bases. There should also be concern about
volunteer workers who may or may not be con-
strued to be employees. Hospitals, schools and
company credit unions are a great source of vol-
unteer workers which may fall into special cate-
gories.
I. s s u ate of
1. Fact -Finding Techniques in Risk Analysis,
by Bernard J. Daenzer. Available from RIMS,
205 East 42nd St., New York, New York 10017.
RLMS members $13.00; non-members $15.00.
2. Risk Management Manual, Sections 1 and 2
(see topic A-13, n15 for address).
RI.,zK IDKN=ICATION CHECKLIST
I - REAL PROPERTY
a L:st all locations (owned, leased or let to others), of -
Ices, manufacturing, warehouses, garages, hangar,
docks, dwellings, farms, cops, tanks, tower, piers
sad wharves, pipelines, wires, fences, paving, under-
ground propery, mines, and land —improved or
unimproved.
b. Determine insurable interest at each locadon from:
Direct ownership.
Occupied property where owner or lessor passes re-
sooasibUity by contract -
Tenant's improvements.
Leasehold interest.
Optioninterem
c. Compute repiacement value or ACV (Actual Cash
Value) at each location.
d Research laws for demoiition and replacement of
damaged property. At what percentage of damage
41M
Practical Risk Management
fSS MENTMCATION
• Topic A 2
Page S
must the whole building be demolished? What are
costs of demolition, cost of new construction of un-
damaged portion, and extra construction costa due to
code requirements?
PERSONAL PROPERTY (Owned or Leased)
Machinery and equipment:
Machines, engines, turbines, tools, meters, gauges,
mechanical or electrical equipment, motors, trans-
formers, pumps.
Boilers and pressure vessels.
Lifts, conveyors or elevators not an integral part of a
budding.
Dies, castings, patterns, molds (often high, hard -to -de-
termine values).
Stock:
Raw material
Goods in process
Finished goods (profit)
Subuiies
Pre'paidexpense items.
Electronic data processing equipment — hardware and
software, climate control and security system.
Safety equipment (alarms, apparel, installations).
Furniture and fixnaes.
Office equipment, switchboards.
Property of others (if your policy covers, check coin-
surance requirements).
Property in custody of others (especially dies, pat-
terns, etc.).
Fine arts (paintings, libraries, antiques)
Valuable papers:
Accounts receivable
Cdent lists
Patents, copyrights, blueprints, formulas
Deeds and titles
Securities.
Cash — cash overnight.
Exhibits and promotional displays.
a. Explosives, nuclear or radioactive or other hazardous
materials.
f. Research projects (value of test samples, models, etc.)
o. Vehicles (show year built and market value or cost):
Private passenger vehicles
Commercial vehicles (including contents)
Mobile equipment
Contractor's equipment
Farm equipment
Aircraft
Watercraft
p. Property in transit (incoming — outgoing, show maz•
imum value per shipment):
By truck (own, contract carrier or common carrier)
Bail
Air
Parcel post — registered mail
Ocean cargo.
III • SPECIAL PERILS
a Natural:
Earthquake (any lease requirements?)
Flood (any premises subject to federal flood pro
gram?)
Windstorm (how much in one wind area?)
b. Financial:
Confiscation
Product guarantee
Financial guarantees
Penalty clause
Adverse publicity
Foreign exchange loss
Tea" cancellation
Loss of trade secrets.
c. Economic:
Inventory shrinkage
Obsolescence
Loss or resource availability
St ill .
d. Mechanical:
Failure of temperature control
Breakdown of machinery
Collapse
Contamination
Freezing.
IV _ INDIRECT RISKS
a. Lass of earnings due to business interruption:
Payroll of key personnel
Other continuing expenses, utilities, rent, proper
taxes.
b. Extra expense to continue operations after loss:
Extra rent, equipment lease, subcontracting, overtim
4/
Practical Risk Management
• Topic t- 2
SS IDF� iTIFIC?,TION •
9=
Low of rent.
Boiler and machi--ery outage.
Power or utility outage.
Spoilage from lack of temperLrse cantroi.
Loss due to destrliction of records or accounts reesiv-
able.
Data processing outage:
Loss of interest because of delayed biding, loss of
`ents, extra can to use
other equi?ment, ew-
Produe: recoil.
Com agent losses:
Loss of ?rr_c?ai supplier or customer
Loss of key Cns==er Craw, as a major occu?ant of
large shopping center.
Leasehold interest Goss of building with favorabie
:ease ter. s under can-ceilabie lease).
Key officers or employees.
r • PERSON,NEL
L. Workers compensation:
Out -of -sate enimayees
Out-of-coun.:f employees
Employees falling =der federal acs
(Jones Act, Death on Figh Seas, Defense Base, &
Longshoremen's and Harbor Wor ters' Act)
Voluntary compensation.
b. Pension and benefit plans required to be insured.
a P ducary exposure —,cement plans.
d. Key persons whose loss would jeopardize prods.
e. Empioyee dishonesty.
£ Bonding requirements.
g. Forgery, incoming and outgoing inscru'nents.
h Discmination in employment-
i Employees driving company car, own or rented car
on busims.
j Campany-sponsored activities — sports, picics-
k Directors and officers liability exposure.
VI • LL433n TY
a. P: emises and operations:
Owned or leased property
As owner of property under construction.
b. Negligence:
Of empioyees, agents, contractors, representatives.
t Contractual:
Insurance reouirements in leases and other contracts
Indemnity (hold harmless) provisions of leases ant
other contracts
Purchase orders.
d Personal injury, libel, slander, false arrest, discrimins
ton.
e. Advertising.
Automobile liability (owned, non -owned and on
pioyee autos).
g. Watercraft, owned and non -owned.
h Aircrazi, owned and non -owned.
i Products (implied and express warranties for ea(
product).
y P.ofessionalliabiiity.
4
Practical Risk Management
The ProtessioMPs Handbook
Practical Written by:
David Warren. CPCU
Ri�+� Ras McIntosh. CPCU
�7 with continuing counsel from a panel of advisors
Management (see names inside title page)
Topic A-5
POLICY STATEMENTS AND
RISK MANAGEMENT MANUALS
L policy statement expresses goals, directions, at- WHAT DOES A
itudes and structure. It is not procedure. Proce- STATEMEINT OF POLICY CONTAIN?
lure specifies how policy is to be carried out.
Policy statements should delineate:
Chis distinction is important because risk man-
gers sometimes oppose a written statement of pol-
cy, thinking it will restrict their actions. The
Ipposite is true. A well planned policy statement
ie.ineates the risk manager's field of operations
necessarily broad) and gives the authority
seeded. It should improve cooperation from other
corporate executives.
WHY A WRI=N POLICY?
4Iost large organizations agree that a written pol-
cy is desirable for these reasons:
L. Committing goals and directions to writing
tends to clarity them in everyone's mind.
2. It focuses on fundamentals and brings out
ideas that might not otherwise be expressed.
It forces company executives to think about the
subject, which not only develops ideas but in-
creases their appreciation of risk manage-
ment. It will, for example, cause discussions
between risk manager, tax manager, finan-
cial manager, controiler, and possibly outside
auditors to establish risk retention levels and
reserves.
4. A written policy specifies clearly where re-
sponsibility and authority lie, thus opening up
lines of communication and forestalling
duplicate efforts.
2 Practical Risk Management, Inc. 1989
1. What risk management encompasses (it
surance, loss prevention, claims manag
ment, risk identification, etc.) and its impo
tance to the company.
2. Where risk management fits in the corpora
structure.
3. The scope of authority and responsibility n
only for the risk manager but for all who
work encompasses some risk manageme:
activity. It clarifies such functions as:
Insuro.nce purchasing
Broker selection
Safety responsibility
Fire protection design
Claims tuiraimstraCon
Lines of commun cation
4. The extent to which the organization is wills
to accept risk without insurance. Tb
"tolerable loss limit' is valuable in two wal
First, it indicates how large deductibles may
and what properties or risks may be deiibt
ately uninsured. Second, it indicates the poi
where management believes financial dis
cations would result, indicating the need I
insurance or other risk transfer mechanism
cover individual risks in excess of tl
amount.
On the other hand, management may want
look at risk retention on an annual age ego
basis, allowing for different retention leve
higher for low frequency risks such as earl
Practical Risk Management. P.O. Box 1o093. Oakland. California 94610
LILY STATFIM. iTS & RISK=4iANAGEII ENT 1IM AN& S Topic A 5
Page 2
quake, and lower for high frequency risks
such as public liability.
addition, the poiicv statement may discuss:
The corporate actitude toward loss assumption
by divisions. Though accounting techniques
need not be detailed, the company's position
should be made clear on the degree to which in-
dividual divisions or cost centers should be re-
sponsible for their own losses.
The use of reserves for assumed losses at the
corporate level may need to be stated.
The company's attitude toward in-house versus
contracted services.
The company's position on activities involv-
ing risk (such as how many executives may fly
on one plane).
Insurance bidding or marketing procedures.
For example, some limitation on bidding fre-
quency (such as every six years) may be
appropriate.
any policy statements are little more than
rases such as:
'Our Policy is to keep costs to a minimum.'
'All operations shall be conducted with
naximum safety.'
'Effective communications are encouraged.'
'losses will be assumed to a prudent level.'
;cause they make no statements which can be
anslated into action, they are simply corporate
ui. To be effective, a statement must commit
anagement to a definite course of action and say
iw it is to be done.
ze risk manager normally prepares the first
•azi of policy, after consultation with all parties
valved, because he is the one most intimately ac-
minted with the details. He then submits it to the
impany president and other officers who may
iggest changes or additions. When all persons
incerned (sometimes including the board of di-
:ctors) have given their full consideration and
approval, it is then promulgated under the presi-
dent's signature.
SAMPLE POLICY STATE,YIE?PT
The = Co. Policy on
Risks of Accidental Loss
General
This policy applies to all pure risks (risks which
can cause losses and whose undertaking involves
no possible profit) such as fire, liability suits, theft,
workers compensation, product recall, and other
risks of property and liability losses, both direct
and indirect. It does not apply to deliberately as-
sumed costs of employee benefits.
The Risk Management Department has responsi-
bility for directing and coordinating all risk
functions. It shall be directly responsible for -
Risk Analysis
Purchase of insurance
Claims adjusting
Selection of insurance agents or brokers
Development of risk charges to operating enti-
ties.
It will coordinate information and act in an advi-
sory capacity with regard to fire protection, safety,
security, and risk aspects of contracts or other le-
gal documents.
The Risk Management Department will be di-
rected by the Corporate Risk Manager, reporting to
the Vice President of Finance.
Each division manager shall be responsible for
conducting operations in accord with company
standards and statutory requirements. He will
determine the degree of protection incorporated in
new projects but only after thorough review of the
plans by the Risk Management Department. He
shall report all losses or claims, regardless of size,
to the Risk Management Department or designated
claims agency.
The Corporate Safety Director shall be responsible
for keeping abreast of company activities and fox
advising proper safeguards to protect employees
and the public. He shall report to the Director of
418i
Practical Risk Management
JLICY STATE240qTS AW RISK MANAGEMENT MANTVL S Topic A 5
Page
bar Relations.
,e Legal Department shall be responsible for all
atract wording. However, contracts which in-
lve insurance, indemnity, or other risk provi-
tns shall be cleared with the Corporate Risk
anager prior to execution, unless exigencies of
e situation make this impossible.
isk Retention. Losses which individually do not
Geed $250,000 will normally be expensed without
surance. On the other hand, those risks with a
itential greater than $250,000 shall normally be
sured. Where, in the judgment of the Corporate
isk Manager, exceptions to this rule are made,
Ley shall be documented in his regular reports to
anagement.
perating entities will expense losses to a level
:ceptable to the division manager but no less than
1,000 per loss. Insurance charges to divisions
ill be determined by the Corporate Risk Man-
;er. They will include a proportional share of
frporate insurance and administration costs plus
loading to cover losses between the division and
)rporate loss retention.
ommunications. It is important that both the Car -
orate Risk Manager and Corporate Safety Direc-
tr be continually conversant with all company
peracfons. They or their representatives shall
take regular visits (not less than annually) to
tajor operating units (those whose values subject
3 loss exceeds $5 million).
;ach plant controller shall be responsible for re-
orting new property values, disposal of assets, and
ignificant changes in operations to the Corporate
Usk Manager.
Authorizations for Funds" shall be routed to the
:orporate Risk Manager prior to final approval.
RISE MANAGE_YMNT MANUALS
DEFL`=ON
Ve have found no general consensus on the defi-
tition or use of risk management manuals.
iowever, they are widely used - more so than
vritten policy statements — but some companies
till do not have one. Reasons very. They say it is
too restrictive or not restrictive enough, too timi
consuming to write, too subject to change, and n,
one will actually read it.
Properly done, a manual can be one of the mos
use.0 tools for the risk manager. And people wii
read it, if you make it clear and simple, index i
well, and answer frequently occurring question
such as how auto insurance applies to employee. -
how to handle losses, and how risk managemen
charges are made.
By its nature, insurance encompasses event
which are out of the ordinary and which involv
people who are not normally concerned with it
surance. They therefore need a guide which is 0
authoritative and (2) immediately available. Suc
a guide, if well prepared, can do wonders to ease tb
risk manager's work load and to simplify coil
municatio ns.
A risk management manual can be:
1. A guide to field personnel on how to hand:
claims, report values, keep records, and so on
2. A reference for corporate policy on such day-t
day questions as use of personal cars on con
pany business, airport vending machine if
surance, and tie-in of workers compensatic
with other benefits.
3. A communications aid in setting up and clat
Eying lines of communication between hon
office, field locations, and outside parties sue
as claims adjusters and inspectors.
4. A promotional piece for the risk manageme,
department. By pointing up the scope and cox
plexity of risk -related problems, all person
develop a greater understanding and appree
ation for risk management.
Now a word for what the manual is not It is not
compendium of insurance policies or coverag
extent in a broad sense. You may or may not feel
desirable for field personnel to know major covf
age conditions. There are differences of opini
on this point, but there is no question that details
coverage and exclusions are best left unsaid.
details are given, field personnel are tempted
interpret coverage. This could lead to unrepart
4,
Practical Risk Management
ICY STATE.�TS AS RISK MAOZAGEY E^1` r MANA S Topic A 5
Page 4
s, unreported changes in operations, and
iterpretations, since only the policy itself can
outline all terms and conditions. Also, poli-
and coverages could change faster than you
to revise the manual. We therefore recom-
i that the manual contain no reference to cov-
except as it relates to deductibles, cost ac-
ting, and pertinent aspects of reporting.
inual can be used to:
)inseminate corporate policy.
)erne responsibility and authority for carrying out
:oiicy.
kdvise what risks are in the province of the risk
management department (for exampie, machinery
)reakdown and motor bout are types of losses
which operators may not recognize as insurable).
[astrsct employees as to their responsibilities and
rights.
Provide a convenient reference to field personnel on
questions of insurance, loss prevention, claims, and
risks.
WHO GETS TT?
tribution will depend on the organizational
;cture, but essentially it should be available to:
tilanagers(division,plant or other) who may want the
information for planning or answering insarancs and
nslt-related Questions.
Those whose work touches on risk. This nearly
always means the local controller, but could also
include the labor relations manager, engineer, safety
manager, or similar positions.
account for all copies, each should be numbered
i issued to a position (not an individual) so cor-
tions can be properly communicated.
CONTENTS
e format should be loose-leaf, to accommodate
inges. It is helpful to print the words "Risk
magement" or "Insurance" on the spine for easy
.ntification.
Also, and this is critical for its efficient use, index
it well. Use divider tabs for major topics and give
the title of all subjects and exhibits, with page
numbers, at the front of the book.
Contents will vary considerably from company to
company depending on the type and scope of opera-
tion. Manufacturing operations may have
considerable detail on loss prevention and treat-
ment of inspectors. Widely dispersed retail oper-
ations may have more emphasis on accounting
procedures. Each manual must be individually
tailored to the situation with consideration given to
the following
1. Corporate policy. It is usually desirable to be-
gin the manual with the statement of corporate
policy as promulgated by the president or board
of directors.
2. 11rief description of risk treatment program. If
risk is being retained, employees should know
it This may include a summary, but not de-
tails, of insurance in force.
3. What to do in case of loss. Clear, step-by-step
instructions should be provided. Samples of
loss report forms should be included. It should
clearly state who is to fill out the report, how
many copies, who gets each copy, the time limit
within which the form must be completed, and
general instructions. Loss reporting should be
treated separately from insurance and should
not be related to coverage in effect
4. Value reporting. Plant controllers or appro-
priate field personnel should be designated to
inform the risk manager of significant addi-
tions to, or deletions of, values.
5. Risk reporting. Individuals should be desig-
nated whose responsibility it is to report
significant changes in risk, such as leasing
an outside warehouse, chartering aircraft or
boats, starting a bowling team, etc. At the same
time, the risk manager must never rely com-
pletely on this technique. There is no substitute
for periodic plant visits.
6. Accounting procedures. Plant and corporate
controllers should be instructed how to allocate
costs for insurance premiums, uninsured
4/99
Practical Risk Management
MICY STATE1MiTS A RISK MANAGMMNT MANIO . S Topic A-5
losses, risk management services, loss pre-
vention costs, and other risk -related charges.
Automobile insurance. Detailed instructions
should be given regarding insurance for
employees driving a company car on business
or for personal use. Also, those employees who
receive a mileage allowance for use of
personal cars on company business should be
given clear instructions as to what insurance
applies after an accident. Generally, the
mileage allowance should cover payment for
insurance, so the employee's own insurance is
usually primary. If this is not clearly stated
and understood, employee dissatisfaction will
result following an accident.
Corporate rules on risk. host companies have
rules such as:
• When flying on business, airport vending machine
polices cannot be charged to the company.
• The number of executives who fly in one plane is
limited to
• Aircmit or boats shall not be chartered without the
approval of the risk management department.
• Since fidelity bonds exclude coverage for emp-
loyees known to have committed dishonest acts, all
instances of a dishonest act must be reported.
Loss prevention inspectors. Insurance in-
spectors, fire protection, safety, and boiler — as
well as rating bureaus, OSHA or other gov-
ernment agencies — may legitimately visit
plants. The manual should tell:
Who is authorized.
How inspectors are to be treated.
What to do with their recommendations.
Government inspectors often have legal au-
thority to order changes. Insurance inspectors
do not — except that boiler (but not fire) inspec-
tors may suspend coverage if a condition is
unusually hazardous. Recommendations of
fire inspectors which involve spending money
should usually be submitted in writing and
channeled through the risk manager. All
these points should be made clear.
lo. Loss prevention data. Some companies like to
communicate general rules on safety, secur.
ity, or fire protection, but it is better not to tr)
for much detail along these lines. If detail i;
needed, a separate manual issued by the cor•
porate specialist in that field is called for.
One bit of information that should always be
included is the need for fire protection ap
proval on each new project which either (1) in
volves any fire loss potential or (2) is for firi
protection equipment. Some companies tel
field personnel to obtain approval of thi
insurance carrier without further qualifim
tion. We believe this is contrary to sounc
management in that it delegates a sigaifican
degree of decision -making authority to some
one not responsible to management. Fish
personnel should be instructed to obtain an
proval through the Risk Management De
partment, which can then see that qualifier
specialists representing both the company an,
insurer are consulted.
11. Who to call for answers. Last, but not least
there will be questions no manual can an
swer; so names, addresses, and telephon
numbers (business and home) of key ris:
management department personnel should b
listed. Field personnel should be encouraged
even urged - to call at any time. Developin
this habit can lead to discovery of new risk
and reporting of losses which might otherwis
be overlooked.
r- e � n � e ae • o. o.• «�
1. Risk Management Manual Guide, Risk an
Insurance Management Society, 205 E. 42V
St., New York, `lY 10017. $9.95. A guide 1
developing an internal manual. Format is the
of a sample manual with explanatory notes.
2. Risk Management Manual (See Topic 1-1-2 f
details). Volume II contains a sample poli,
for a public agency plus discussion on n:
management policy statements.
41
Practical Risk t.lanagement
E
0
City of La Quinta
Memorandum
To: Community Services Commission
From: Clint Bohlen, Parks and Recreation Manager
Date: February 22, 1993
Subj: Discussion of Public Forum Location and Dates for Palm Royale Park Design
BACKGROUND
As the Commission may be aware, the City Council approved staff to proceed with negotiations
with T.I. Maloney, Inc. for the design of Palm Royale Park. Staff will be developing a contract
document on which to base an agreement with T.I. Maloney for their services.
Staff would like the Commission to discuss how they would like to conduct public hearings on the
park site. Specifically, when, where and how the Commission would like to proceed with the
hearings.
RECOMMENDATION
Staff requests that the Commission discuss this item at tonight's meeting, and provide staff with
direction.
Item VI.C.2.
IL MEETING DATE: February 16, 1993
TITLE: Authorization to negotiate
rent with T.I. Maloney, Inc. for design
ester Plan Services for Palm Royale Park
AGENDA CATEGORY:
PUBLIC HEARING:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
tOUND: The Draft Parks and Recreation Master Plan and the General Plan
.fy a park site on the southwest corner of La Palma Drive and Adams
As the Council will recall, the Community Services Commission came
Council on November 2 and received permission to proceed with design
park as a priority park site. This five acre parcel was identified as
)rity one design and development project in the City-wide Master Plan.
and Commissioners interviewed several firms for providing design
:es for this site, and T.I. Maloney, Inc. of Riverside prevailed.
IMPLICATIONS: The cost for design of this park is to be negotiated by
with T.I. Maloney, Inc. The results of those negotiations will be
it to the Council in March for Council approval and for funding from the
Fund.
APPROVED BY:
IENDATION: Staff requests that the Council direct the Acting City
r or his designee to proceed with negotiating with T.I. Maloney, Inc.
sign and master plan services for the neighborhood park located at La
Drive and Adams Street with the negotiated amount not to exceed
0.00.
ted by:
/kZ
Approved for submission to
city
Conc.1
THOMAS P. GENOVESE, ACTING CITY MANAGER
NS. BERNARD M&MO
44-550 -550 M MARGUERITE
LA QUINTA. CA 92253
TELEPHONE (619) 3WIS41
Community Services Commission
Board Members
DATE: February 22, 1993
SUBJECT: Agenda item:
VI,i D, 1, (page 2)
Human Services / Business
st Tuesday (February 16, 1993) I attended the regular monthly meet-
s of the Coachella Valley Child Care Council, in Palm Desert.
airperson, Jean Benson called the meeting to order at 4:00 p.m. and
was asked to take a seat with the otherboprd members and guests. As
happened I sat between two La Quinta residents, namely Gerald Hunt
i Marry Loe. Reports were given by the Secretary, Treasurer, and the
:)rdinator, Doris Mechanick. I received several hand-outs at this
?ting and they were delivered to Clint Bohlen's office the next day.
. Robin Scherr gave an informative report on her work for 'L.A.'s
3t' where she works with the L.A. Board of Education, developers, and
9ustry to set-up and provide staffing for child care centers in the
cater Los Angeles area. During a question and answer period that
.lowed, the local council decided to take a fresh look at an item
Lt was reported in the Community Services Council minutes of Jan-
7y 25, 1993 ( item # 10, page 6 ), whereby the C.V.C.C. council will
.d-off their plans to take action on the California Redevelopment
-aside law until they have had time to gather additional informat-
1. Guest, Robin Scherr was interested in the local 'Parent to Parent'
igram,
were shown a new flyer which includes a sign-up form within on a
ECOME A SENIOR CHILD CARE PROVIDER ' program sponsored by the
my of Riverside, the Riverside County Office of Education, and the
chella Valley Child Care Council/Consortium. If anyone is interested,
y can call 342-3503 for more information.
of report.....
Commission - Bernard
X5
3NEv
L,A Q U1NT&
ESTORICAL SOCIETY
BOX 1283 • IA AUINTA, CA
92257
: �c
ov' RALS-WgQumu5Crq&mk1LkTS,
L SD �"T Me jo�ua w
aR D 6A��
7
City of La Quinta
,<.Cl U111tC1 Community Services Grant
Grant Reconciliation Report
Organization Name: LA QUINTA HISTORICAL SOCIETY
Name of Person Completing Report: Fred Rice
Address: 48-780 Eisenhower Dr., La Quinta, CA Phone (619) 564-4823
Period of Report (mo/yr to mo/yr): 02/92 to 01 /93
Dale Your Organization Received Funds: August 18, 1992
Describe Your Expenditure of Grant Funds: The Society published "Desert of the Palms"
a 60 page booklet describing the Coachella Valley and the desert over a half cen
ago, also a La Quinta Historical Map indicating kev historical landmark,_aad a
bronze plaque honoring the La Quinta Hotel for its contribution to La Quinta
and our citizPnc
Reconciliation
Grant Amount $ 3,500.00
Funds Expended $3,149.00
Balance $ 49.00) (return unspent funds to "City of La Quinta"
by check with this form)
Attach supporting documentation (receipts for purchases, cancelled checks, payroll
records, copies of billing statements) that is In accord with the original grant request.
Any questions regarding this form or the grant process should be directed to the Parks and
Recreation Manager, Clint Bohlen, 564-2246, Ext. 204. Mailing Address: Parks and Rec-
reation, City of Le Quinta, P.O. Box 1504, La Quinta, CA 92263.
L4=�
.�.:
Q&au
`M OF
MEMORANDUM
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: COMMUNITY SERVICES COMMISSION
DATE: FEBRUARY 10, 1993
SUBJECT: TRAVEL POLICY
The Community Services Commission reviewed the City's Travel
Policy for educational purposes at its February 8, 1993 regular
meeting. The Commission's recommendations to the City Council,
requested by Councilmember Sniff for Council consideration, are
underlined in each section as follows:
Section 7. Meals Meals, 3 to $40 per diem, per day, except for
those included in the cost of the registration, are allowable at
actual costs including reasonable tips and room service charges.
Expense claims for meals including people other than the claimant
shall include the following information:
1. Date expense incurred
2. Parties participating
3. Purpose of the meeting
Section 8. other Allowable Expenses Item D. amended to read:
"Fees and tips paid to waiters, porters, baggage handlers,
bellhops, hotel maids, and other services (e.g. necessary dry
cleaning)."
Item E. delete
Item F. amend to read: "Business related entertainment
(including those where alcohol is served)functions
that are attended to promote City related business
objectives are allowable, as long as detail is
provided stating who attended and what subjects
were discussed.
Item G. delete
ADAMS/TR UMAN PTA
February 19,1993
City of L.a Quinta Community Services Commission
Mr. Clint Bohlen
P.O. Box 1504
I -a Quints, CA 92253
Dear Clint and Community Services Commissioners:
This letter is in response to your letter of February 12, 1993, regarding the CSC
Grant reconciliation report from Adams/Truman Elementary School Earthquake
Committee.
Attached please find the grant reconciliation report and other documentation
supporting the expenditures made on earthquake preparedness since our grant
was funded in August of 1992.
I have included an inventory of our supplies, and our 1992/93 budget. There are
receipts for the tools purchased, and backpacks purchased as well. We have
ordered 4 1Ox10 pop-up shade covers, to protect the children from over exposure
to the sun in case of a long outdoor wait to be picked up by parents. These will
be delivered to us on March 13, 1993. At that time we will have invoices for
these items as the orders were placed by phone.
Expenditures made for earthquake preparedness since the time of funding are as
follows:
1. 20 Backpacks (used to hold earthquake supplies $ 161.63
in each classroom)
2. Hardware and tools 496.89
3. Pop-up Shade Covers 4@$350 plus tax 1508.50
$2167.02
Still needed are:
23 backpacks @$7 ea
6 5 gallon collapsible water jugs @$VA9 ea
6 Swiss Army knives @$6.95 ea
ADAMSITRUMAN ELEMENTARY SCHOOL
78-880 Avenue 50 • La Quinta, CA 92253
36 Space blankets @$3 ea
12 Light sticks @$1.25 ea
12 Boxes of camping matches
2 Rigid stretchers
2 Dollies
2500 Paper cups
1500 30 gallon garbage bags
Water purifier tablets (enough for 600 gallons)
150 Compression bandages
160 Bandaids ( steri-strips and large butterfly)
We were fortunate to get donations from our parents for much of the food and
drink kept on hand. It is however not possible to keep these supplies from year
to year due to the fact that our storage is limited to non-airconditioned
containers. Food kept in these containers over the hot summer months will spoil.
All of these supplies at the end of our school year will be donated to local food
banks. This does mean however that these supplies will have to be replenished
each year either by donations or funds from our earthquake budget.
We would like to invite the Community Services Committee and the City
Council to our school for an actual earthquake drill planned for March 16,1993.
It would be beneficial for The Community Services Commission to see the
Adams/Truman Earthquake Disaster Plan 1st hand.
We are very proud of the fact that we have a community that has helped make it
possible for Adams/Truman School to be by far the most prepared school site in
the District to deal with an emergency earthquake situation, which is far to real a
possibility.
Respectfully Submitted,
�riG urray%y�E�
a Murray, P_re/s�� ent
Adams/Truman PTA
attachments
■i*♦:■
AL
81 - 14,Q
a91 Ten Carat Decade
Organization
City of La Quinta
Community Services Grant
Grant Reconciliation Report
Adams/Truman PTA Earthquake Preparedness Committee
Name of Person Completing Report: Lynda Murray
Address: 78-880 Avenue 50, La Quinta, CA 92253 Phone 619/777-4240
°eriod of Report (mo/yr to mo/yr): 8/92 to 2/93
Date Your Organization Received Funds: August 21,1993
Describe Your Expenditure of Grant Funds: see attached
Reconciliation
irant Amount $ 2,000.00
7unds Expended $ 2,000-00
lalance $ (return unspent funds to "City of La Quinta°
by check with this form)
ttach supporting documentation (receipts for purchases, cancelled checks, payroll
words, copies of billing statements) that is in accord with the original grant request.
ny questions regarding this form or the grant process should be directed to the Parks and
ecreation Manager, Clint Bohlen, 564-2246, Ext. 204, Mailing Address: Parks and Rec-
ration, City of La Quinta, P.O. Box 1504, La Quinta, CA 92253.
DESERT SANDS UNIFIED SCHOOL DISTRICT
ADAMS/TRUMAN SCHOOL.
112L'3' IM998ME HOMMVIEW
------------------------------------
ITEM QUANTITY
CONDITION
--
LOCATION
1_ Trauma kit
3
new
Primary nurses office
Intermed. nurses office
Room 714
2. 55 gallon
6
like new
Primary EQ•storage (2)
water containers
Intermed. EQ storage (2)
Room 714, 814
3. Light sticks
6 per kit
new
in trauma kits (18)
4. Shock blankets
5 per kit
new
In tramua kits (15)
5. Utility tool box
1
like new
Kiln room (lunch area)
6. Two-way radio
5 watt hand held
1
new
Principal's office
Asst. principal's office
25 watt plug-in 1
(to car cigarette lighter)
7.Disester storage 2
container
Items the school has (over)
SITE-Adams/Truman
good Principal's office
durable NE corner primary play-
ground
South of Portable *25
CONTACT —Kay Wolff
DATE .— October 13, 1992 —.
Adams/Truman Earthquake Inventory, page 2
Other items the school has located in Intermediate EQ storage container:
pick wire
shovels (2) axe
hose (3 x 50 feet) hard hats (5)
work gloves (16) large flashlights (4)
batteries for flashlights duct tape
water bottles (3) water tablets
blankets (3) buckets (8+5)
steel wire (200 feet) hammers (2)
pliers (2 pair) wire cutters (3 pair)
crescent wrenches (2) flatheat screwdrivers (3)
Phillips screwdrivers (3)
Assorted supplies: paper towels, toilet paper, canned food, boxed
drink, blankets, etc.
c?cle.m s /T.-&—, 17 1'7W . (l'i�clU d�Y6> 0 C /
777- yaW y46
531��b
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BANKTHE 1 (619)564-1657
DESERT 51-290 Avenida Bermudas
La Oulnta, California 92253 Zia
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Ph._619- f
78-880 reeae SO
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THE �19) 564.1867
SSS1-2WAven a B . .
DESERT Iye Ouinta, Califom
1: 1 2 2 24 14461:010611100 iits10034 25un .1'00000 16 163,1'
68896b
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a BANK OF THE
DESERT. N.A.
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MO. CA WWI
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F1UT, CA
10 19 2 1
C" SEPOSIT ONLY
PALM SPRIP;gS
BRA:ciA29P:u$ BAVK
(519) 325-2021
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QUIN1
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NAROWdtE
SEP.16'92
5X
Itemized list of supplies purchased on September 16,1992
a 5.19
145 DEPT 25.95
La Quinta Ace Hardware
8X
a 3.83
165 DEPT 30.64
3X
Duct tape 3@ 60 yds ea
Collapsible water jugs 3@ 5 gallons ea
165 DEFT 71.88
Flashlights 4 heavy-duty 3-D cell
a 1.75
Batteries 12 Duracell D cells
165 DEPT 5.25
Leather work gloves 16 pair / 10 pr Ig - 6 pr sm
4X
Buckets 8 5 gallon white leaktites
ga -
8 3.75
165 DEFT 15.00
Bucket lids 3
200 DEPT 29.99
Space blankets 3@ 84"x54"
a
2.99
Hard hats 5 yellow
165 DEPT 14.95
Wire 200' 16 gage galvanized
145 DEPT 3.99
Screwdrivers 3 flat & 3 philips
3X
8 6.29
Crescent wrench 2 1@12" 1@10"
145 DEPT 18.87
Plies; 1- 8" slip joint and 1- 6" slipjoint
3x
Wire cutters 3 7" jaw
165 DEPT 7.65
Bolt cutters 1
5X
Crow Bar 1
a 5.85
Shovels 2
145 DEPT 29.25
11X
Pick 1
8 4.39
Axe 1
165 DEPT 48.29
Hoses 3@50 foot x 518
165 DEPT 2.99'
145 DEFT 7.91
Hammers 2@16oz
145 DEPT 9.44
3X
a 2.55
165 DEPT 7.65
3X
a 9.71
165 DEPT 29.13
165 DEPT 2.87
2X
a 2.20
165 DEPT 4.40
165 DEPT 9.00
145 DEPT 8.99
165 DEPT 4.23
165 DEPT 4.95
165 DEFT 17.19 1
145 DEFT 19.59
3X
a 4.49
145 DEPT 13.47
165 DEPT 4.39
145 DEFT 16.01
165 DEPT 11.83 1
145 DEPT 18.89
SBTL 494.64
TX1 2.25
TOIL 496.89
CHCK 496.89
CHNO .00
MISTI
MM48 10.28 009
�5 et involved in La Quinta schools' efforts to
ktequately supplied in the event of a m ' quake. Please se
any of the following items to school y Oct. 8, 1992.
1
FOOD
*Canned:
The Iarger #10 size cans are best, they can be found at Pa
Price Club or Smart & Final.
These include:
Applesauce, Peaches, Pears, Pineapple, Fruit and Vegetable
Large cans of Tuna, Spam, Meat, Soups, Milk, Juices, Bro
Peanut Butter, and large containers of Instant Oatmeal, Cre-C
of Wheat, Instant Potatoes, Bouillon Cubes (sealed), Cracke
Powdered Milk, Powdered Drink Mix (Gatorade 64oz., Tan;
EQUIPMENT
Unopened: Aluminum foil, Masking Tape, Liquid Soap (refil
Large Cooking Spoons, Can Openers, Paper Plates, Paper Cul
Paper Towels, Toilet Tissue, Premoistened Towelettes (Ba
Wipes), Ivory Bar Soap, Large Plastic Garbage Bal
Emergency Blankets, Ziplock Bags - 1/2 gallon & gallon sh
Buckets, Flashlights, Batteries, Backpacks, Old Clean Blanke
& Hard Hats.
If you would like to be an active member of the Earthqua)
Preparedness Committee please contact Lynda Murray, P7
president, or Kay Wolff Assistant Principal Adams-Truma
at #777-4240.
* Schools will donate food to local food banks at the end of ea(
school year
CITY OF LA QUINTA
Sprinig Spleridor
RE S I DENC E
1.
51-985
Avenida Madero
2.
53-375
Avenida Carranza
3.
53-200
Avenida Carranza
4.
79-805
Westward Drive
5.
51-905
Avenida Vallejo
6.
79-880
Horseshoe
7.
79-915
Fiesta Drive
8.
78-630
Bradford
1 2
1 2
1 2
1 2
1 2
1 2
1 2
1 2
3
3
3
3
3
3
3
4
4
4
4
4
4
4
4
5
5
5
5
5
5
5
5
CITY OF IA QUINTA
Spr.irag Splendor
RE S = ]am NCE
1.
51-985
Avenida Madero
1
2
3
4 5
2.
53-375
Avenida Carranza
1
2
3
4 5
3.
53-200
Avenida Carranza
1
2
3
4 5
4.
79-805
Westward Drive
1
2
3
4 5
5.
51-905
Avenida Vallejo
1
2
3
4 5
6.
79-880
Horseshoe
1
2
3
4 5
7.
79-915
Fiesta Drive
1
2
3
4 5
8.
78-630
Bradford
1
2
3
4 5
11
•
1.
2.
3.
4.
5.
6.
7.
8.
CITY OF IA QUINTA
Spring Spleradc�r
RE S I DEr4f=E
51-985
Avenida Madero
1
2
3
4
5
53-375
Avenida Carranza
1
2
3
4
5
53-200
Avenida Carranza
( 1
2
3
4
5
79-805
Westward Drive
1
12
3
4
5
51-905
Avenida Vallejo
1
2
;3
4
5
79-880
Horseshoe
1
2
3
(4
� 5
79-915
Fiesta Drive
1
2
3
4
'\5
78-630
Bradford
1
2
3
4
5
CITY OF LA QUINTA
Spr9Lrtg Spleracior
RESIDENCE
1.
51-985
Avenida Madero
1 2
2.
53-375
Avenida Carranza
1 2
3.
53-200
Avenida Carranza
1 2
4.
79-805
Westward Drive
1 2
5.
51-905
Avenida Vallejo
1 2
6.
79-880
Horseshoe
1 2
7.
79-915
Fiesta Drive
1 2
8.
78-630
Bradford
1 2
3
3
3
3
3
3
3
3
4
4
4
4
4
4
4
4
5
5
5
5
5
5
5
5
11
CITY OF IA QUTATA
Spring SplOM-3MCio3C
RESIDENCE
1.
51-985
Avenida Madero
1
l2
3
4
5
2.
53-375
Avenida Carranza
`1
2
3
4
5
3.
53-200
Avenida Carranza
1
2
3
4
5
4.
79-805
Westward Drive
1
2
3
4
5
5.
51-905
Avenida Vallejo
1
2
/3
4
5
6.
79-880
Horseshoe
1
2
3
4
5
7.
79-915
Fiesta Drive
1
2
3
4
5
8.
78-630
Bradford
1
2
3
;4
5
CITY OF LA QUINTA
Sp3r3Lx,xg Splerzdor
RESIDENCE
1.
51-985
Avenida Madero
1
2
3
4 5
2.
53-375
Avenida Carranza
1
2
3
4 5
3.
53-200
Avenida Carranza
1
2
3
4 5
4.
79-805
Westward Drive
1
2
3
4 5
5.
51-905
Avenida Vallejo
1
2
3
4 5
6.
79-880
Horseshoe
1
2
3
4 5
7.
79-915
Fiesta Drive
1
2
3
4 5
8.
78-630
Bradford
1
2
3
4 5
CITY OF LA QUINTA
Spring Sp1e=ldor
RE S I DENCE
1.
51-985
Avenida Madero
1
2
3
4 5
2.
53-375
Avenida Carranza
1
2
3
4 5
3.
53-200
Avenida Carranza
1
2
3
4 5
4.
79-805
Westward Drive
1
2
3
4 5
5.
51-905
Avenida Vallejo
1
2
3
4 5
6.
79-880
Horseshoe
1
2
3
4 5
7.
79-915
Fiesta Drive
1
2
3
4 5
8.
78-630
Bradford
1
2
3
4 5