Risk Management Division Municipal Manager Anchorage: Performance. Value. Results.



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Risk Management Division Anchorage: Performance. Value. Results. Purpose Minimize the financial impact and loss of Human resources, from known and unknown events and accidents. Core Services Process auto liability, general liability and workers compensation claims timely and in compliance with prevailing statutes Pursue all recoveries of damage to Municipal property directly, through arbitration, MOA Prosecutor and the District Attorney s office Review all permits, contracts and Request for Proposal (RFP) to ensure contractors have adequate insurance to protect the MOA Market excess auto liability, general liability, workers compensation and property coverage Accomplishment Goals 24 hour claimant contact and zero Workers Compensation late payment penalties Recover $1,000,000 annually in damage to MOA property Assure a 24 hour turn around on all permits, contracts & Request for Proposal (RFP) Hold insurance renewals to expiring premiums or less annually for both the MOA and ASD. Inventory is added as acquired. Performance Measures: Progress in achieving goals will be measured by: Measure #1: All penalties are reported annually to the Division of Insurance; reimbursed by contractor. # of penalties for late payment of benefits 2007 2008 2009 2010 6 2 4 1 Measure #2: Receipts of all recoveries deposited by Risk Management through Cash Management Amount of recoveries deposited 2007 2008 2009 2010 $1,053,596 $1,419,149 $2,068,196 $1,333,245

Measure #3: Incoming and outgoing permits, contracts and Request for Proposal log # of permits and contracts 2007 2008 2009 2010 413 517 541 572 Measure #4: Insurance renewal cost Auto and General Liability Property Excess Insurance Workers Compensation Excess Insurance 2007 2008 2009 2010 $283,778 $282,183 $318,622 $318,997 $923,974 $865,875 $947,710 $880,684 $336,703 $303,647 $308,140 $310,405

Safety Division Anchorage: Performance. Value. Results. Purpose Protect the employees and citizens of the Municipality from unsafe conditions and acts. Core Service Determine frequency and severity as pertains to Root Cause of Accidents Accomplishment Goal Lower the cost of Municipal operations by reducing both the number of accidents and the severity of accidents in workers compensation, auto liability and general liability exposures. Performance Measures Progress in achieving goal shall be measured by: Measure #1: Number and dollar amount of self-insurance claims 2007 # Claims 2007 $ Amount 2008 # Claims 2008 $ Amount 2009 # Claims 2009 $ Amount 2010 # Claims 2010 $ Amount General Liability Auto Liability Workers Compensation 108 $652,800 54 $351,137 44 $354,449 13 $71,827 70 $428,705 40 $244,677 41 $1,872,055 34 $471,729 630 $2,616,46 7 768 $4,746,59 0 547 $3,460,464 510 *$6,139,07 4 * One Fire Department claim and two Police Department claims account for $2,678,610 of the increase over 2009. Also note that the Actuarial Report received and forwarded to OMB and Finance February 1, 2010 reflected this anticipated increase.

Performance Measure Methodology Sheet Risk Management Division Measure #1: All penalties are reported annually to the Division of Insurance/ reimbursed by contractor. Accomplishment Goal Supported: Claim handling as required by the Alaska Fair Claims Settlement Act and Workers Compensation Act Workers Compensation Coordinator reviews reports to State of Alaska Department of Labor and seeks recovery of penalty from contractor. Data Collection Method: Monthly, quarterly and annual reports to all department heads and Municipal Manager Frequency Monthly, quarterly and annually Measured By The Risk Manager and actuarial studies Reporting Risk Management will create monthly, quarterly and annual reports regarding claim handling and penalties Used By All Division Directors, Department Heads, Supervisors and Safety Officers

Performance Measure Methodology Sheet Risk Management Division Measure #2: Receipts of all recoveries deposited by Risk Management through Cash Management Accomplishment Goal Supported Increase in percentage of recovery of damages 3 rd party claims investigated and pursued by Risk Management Data Collection Method File Maker Pro data base and Cash Management Frequency Daily, monthly and annually Measured By The Risk Manager and Cash Management Reporting Monthly reports to Used By Office of Management and Budget and Finance

Performance Measure Methodology Sheet Risk Management Division Measure #3: Incoming and outgoing permits, contracts, and Requests for Proposals Accomplishment Goal Supported: 24 hour turn around on all permits, contracts and Request for Proposal (RFP) All insurance issues contained in permits, contracts and Request for Proposal (RFP) are reviewed by Risk Manager Data Collection Method: A daily log of incoming and outgoing items are recorded Frequency: Daily Measured By: The Risk Manager Reporting: Monthly to Used By: Departments, purchasing and legal for tracking location of item

Measure #4: Insurance renewal cost Performance Measure Methodology Sheet Risk Management Division Accomplishment Goal Supported: Maintain the most comprehensive and competitive coverage s available Risk Management reviews quotes and coverage s twice a year for property, workers compensation, auto liability and general liability coverage s and negotiates renewals Data Collection Method: Insurance Broker and Risk Management Frequency: Bi annually Measured By: Risk Manager and Broker Reporting: Bi-annually to, Finance and Office of Management and Budget Used By: Office of Management and Budget and Finance

Performance Measure Methodology Sheet Safety Division Measure #1: Number and dollar amount of self-insurance claims Accomplishment Goal Supported OSHA Act 1970, Workers Compensation and Loss Runs Incidents and injuries reported to Risk Management regarding MOA employees and citizens Data Collection Method Monthly, quarterly and annually reports from all Municipal departments Frequency Monthly, quarterly and annually Measured By OSHA 300 logs, near miss reports and Third Party Administrator loss runs Reporting Monthly, quarterly and annually and as requested by the and Department Directors Used By All Division Directors, Department Heads, supervisors and safety officers