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HomeMy WebLinkAboutCOM 0521.024 2002-2004 +3v Lincoln S.T. Ashida Har Kim ~'ti Corporation Counsel ry Mayor Gerald Takase Assistant Corporation b:'d~"' Counsel COUNTY OF HAWAII OFFICE OF THE CORPORATION COUNSEL 101 Aupuni Slreet, Suite 325 • Hilo, Hawaii 96720262 • (808) 961-8251 • Fax (808) 961-8622 March 12, 2004 ~ECEiVI~ TO: HONORABLE AARON S. Y. CHUNG '~"e --.-~-ey_-. AND MEMBERS OF THE COMMITTEE ON FINANCE Dar® ~ t =-t--=--- Counry Council FROM: LINCOLN S. T. ASHIDA\(~ Corporation Counsel ~1~1~ RE: Operating and Capital Budgets and Program Review The purpose of this memorandum is to respond to the questions posed by the Legislative Auditor, relative to the Corporation Counsel's proposed operating budget. 32. Corporation Counsel sits on the County's Collections Task Farce to address delinquent accounts receivables. The Financial Audit Report for FY 2002 recommended that comprehensive policies and procedures'. for collecting County receivables be developed. What is the status of the comprehensive policies and procedures, what is the role of the Corporation Counsel in its development and implementation, and has/will the policies and procedures be publicly noticed? (This question may need to be posed to Department of Finance or Environmental Management). The comprehensive polices and procedures are not yet complete. The Collections Task Force has been tasked with developing a broad general policy for collection of receivables. Priority is given to collections of specific accounts and ways to reduce the occurrence of unpaid receivables. Therefore, as of this date, the comprehensive policy is not yet complete. The committee will also assist in the development of collection procedures for departments, which are more specific to their individual requirements. Presently, the Committee does not intend on publishing the policy or procedures. The committee discussed the requirements to put liens on property for delinquent sewer fees. Since it is clear the Department of Water Supply will not be making owners responsible and liening property, the Committee will explore doing it without their participation. Z~ ~ Comm. No. S Ref. To: Re#. Date The committee discussed and agreed there should be standard language in all County contracts allowing the County to deduct from contract payments whenever the vendor owes money to the County. The introduction of the FRESH system will enable the Committee to cross reference vendors and accounts receivable. The Department of Environmental Management has implemented the recommendation on limiting vendor participation in County contracts when the vendors are in collection status. A solid waste trash hauling contract included in the special provisions section that if the company was not current with their tipping fees, the County would withhold payments, and apply the payments to the outstanding account. The Department is exploring something even broader to involve all county contracts. Credit policies and procedures are being developed. Solid Waste does not currently have the manpower to do credit checks as a regular procedure. They will focus instead on more aggressive collections and consider shortening the time period before balances are considered past due. 33. Have quarterly reports of all settlements been filed with the Council? (Section 2-9, HCC) No. The Corporation Counsel failed to file the quarterly reports. Attached are the claim reports for calendar year 2003. (See Attachment "A") We have since assigned specific personnel to complete this task on a quarterly basis, so this will not happen again. 34. Family Support Division Program Objectives states: Collect a minimum of $400,000 in delinquent child support payments. What is the total amount of delinquent child support payments to be collected? Does this total fluctuate much? Would a percentage of total serve as a better measure, provided the total is known? The total amount of delinquent child support payments to be collected is unknown for the Island of Hawaii. However, for the State of Hawaii, the Child Support Enforcement Agency records reflect a total outstanding child support debt balance of $540,340,51.40. The total fluctuates by a million dollars or more a year, depending on the enforcement effectiveness of the offices statewide and the amount of obligors failing to make the ordered child support payments. 2 A percentage of the total would not serve as a better measure. The Family Support Division has no control of the total outstanding child support debt, as it is a statewide figure. The more realistic amount is one based on the resources of the division and the prior collection success of the office. For fiscal year 2003 to 2004, the Family Support Division set a delinquent child support debt collection goal of $400,000.00. As of March 11, 2004, the total amount of delinquent child support payments collected totaled $191,705.71, leaving a balance of $208,294.29 that the division will strive to collect by June 30, 2004. One of the major obstacles in meeting the collection goal has been the lack of CSEA delinquent case referrals from the CSEA, Hawaii Branch. Commencing June 2001, it was agreed between the CSEA and FSD offices that Bea Ballo of the Family Support Division would refer 30 FIDM cases per month to the CSEA Hawaii Branch staff for review and case preparation. In turn, the Hawaii Branch staff would send a minimum of 20 FIDM cases per month to the FSD office for levy and garnishment. See attached memo. (See Attachment "B") However, for fiscal year 2003 to 2004, the CSEA Hawaii staff has failed to send the minimum 20 collection cases for FIDM enforcement. Although for the period July 1, 2003 through February 29, 2004, a total of 181 cases were sent from the FSD office to the CSEA office for FIDM case preparation, only 17 cases were referred to the FSD office by the CSEA for FIDM collection. The CSEA Administration is aware of this problem and has tried to address it. See attached memo from Julie Duldulao. More recently, the CSEA Hawaii Branch supervisor has agreed to direct his staff resources toward increasing the number of referred cases. Thus, in the first part of March 2004, the Family Support Division received 7 FIDM cases. Another area that the FSD has relied on in meeting its collection goals has been real property liens. The bulk of the monies collected in past due child support have been in this area. In all cases where there is a child support debt, a lien is filed with the Bureau of Conveyances. In fiscal year 2001 to 2002, when the Family Support Division exceeded its collection goal of $400,000.00 and collected $510,202.00, the division had been successful in wllecting $99,000.00 from a real property lien case that our attorneys had prevailed on appeal. Currently, the real property market is booming. The Division is focusing their efforts in increasing collections in this area. As of last week, it was agreed among Keith Yamanaka, the statewide APB Supervisor, George Moore, the CSEA Hawaii Branch supervisor and our Division head that the title companies would be notified whenever a child support lien appears on their title report, the demand statement would be directed to Bea Ballo of the FSD office. 3 Procedures as to the assignment and distribution of these cases are being developed. 35. Counseling and Drafting Division Program Objectives-Development of a Risk Management System (Six-Month Progress Report on Program Objectives for FY 2003-2004) says "Our oflrce manager is also in the process of assembling data for the creation and funding of a permanent risk manger position for the County, together with the necessary support staff." What data is being assembled? What is fhe projected timeframe for completion? When might this be incorporated into the budget? Attached is the data. (See Attachment "C") The County administration has resurrected the risk management committee. A meeting is scheduled for March 22, 2004, at the Corporation Counsel's Office. A timeline for submission of a formal recommendation to the Mayor and Council will be developed at this meeting. It will also be decided at this meeting when the additional proposed positions will be incorporated into the budget. cc: Honorable Harry Kim, Mayor Constance R. Kiriu, Legislative Auditor S: Departments/Corp CounseVLSA Misc. Corresp./Memo to Council re questions re budget 3-11-04/LSAmr 4 ATTACHMENT "A" CLOSED CASES JANUARY -MARCH 2003 CLAIMANT/ DATE OF DESCRIPTION TYPF, DISPOSITION AMOUNT AMOUNT CASE NAME INCIDENT PAID RECD SUN VISION 12/12/00 County employee cutting GL No claim filed -0- -0- CABLE trees caused branch to snap against County cable off claimant's line LUCHETTA, Dean 10/14/02 Waikoloa Rd., truck fell GL No claim filed -0- -0- into trench a ainst Count DONNERT, Manfred 10/22/02 Claimant's new car GL Claim denied -0- -0- sprayed with oil and tar from resurfacin road TANAKA, Yasuoki 6/21/02 Tree fell on power line; GL Claim denied -0- -0- power cable fell on car causin dama a to aint MAKIL, Gabina 12/2/01 Officer Calvin Sasaki GL Claim is in suit -0- -0- struck pedestrian who was fatall wounded EDWARDS, Ed 8/12/02 County police backed up GL Claim against -0- -0- into passing truck, causing HPD insurer, not dama a to assen er door Count DAVIS, Jazed 11/2/00 County driver reversed into VSI Statute of -0- -0- claimant'sparked vehicle limitations ex fired DWYER, Robert & 1998 - Tax assessment on non- GL Claim settled $1,486.65 -0- Diana 2001 existing building for 14 years as a result of Building Dept. issuing a notice of com letion THUNDERFOOT 8/24/01 Bison damaged cattle gate GL Claim denied due -0- -0- OF THE NATNE because it was spooked by to insufficient AMERICA CENTER the Green Harvest evidence helico ter LEE, Barbara 1/16/02 County vehicle struck her VSI Claim denied -0- -0- car's left rear corner at the since damage Kailua Transfer Station as cannot be she attempted to leave the attributed to station negligence of Count em to ee LINDSEY, Monica 2/1/02 County driver, Chris VSI County will not -0- -0- Miyao, reversed and struck pay for legal fees claimant NASCIMENTO, 3/8/00 Suffered injury as she VSI Claim denied -0- -0- Catherine entered van PASAMONTE, Julio 11/28/00 HPD officer misjudged VSI Claim denied -0- -0- road width when executing u-turn and drove vehicle into ditch CLAIMANT/ DATE OF DESCRIPTION TYPE DISPOSITION AMOUNT AMOUNT CASE NAME INCIDENT PAID RECD ATONIO, Fautino 8/7/01 County employee assisting VSI Claim settled $70.00 -0- passenger ofcounty vehicle, could not prevent her from falling outside the vehicle JEYTE, Albert & 5/16/02 Rock damaged windshield VSI Claim settled $520.59 -0- Loma of count vehicle DE MELLO, 5/22/02 Car crossed middle line, hit VSI Claim settled $392.00 -0- Ra and count vehicle DIAS, Stanley 8/10/02 County vehicle driven by VSI Claim settled $2,489.66 -0- volunteer of HFD (James (County Council Millar) lost its brakes and Approval rolled downhill hear 10/23/02) Paauilo Park. Collided into arked ick u truck SHIIGI, Glenn H. 11/2/00- Flood claim; property GL Claim denied -0- -0- 11/3/00 located at 1008 Ulama Place KRAUSS, Peter 1/13/01 Defendant damaged county C Insurance carrier -0- -0- vehicle door when he for police kicked and jammed it subsidized during an arrest vehicle can seek recove SUBICA, Geraldine 12/29/00 Gate at Old Kona Airport BI Statute of -0- -0- fell on her legs Limitations eroid has assed CUMMINGS, 2/4/02 HPD Officer struck GL Subsidized motor -0- -0- Kamekona pedestrian vehicle has insurance policy with Crum & Foster SARAGOSA, Patrick 1/27/03 Saragosa struck by truck in Report found -0- -0- crosswalk Count not liable MAKANUI, Charles 10/7/02 Flood Damage of 11/1/00 County not cause -0- -O- at 560 Ainako Ave of flood KALUA, Roger 7/29/02 HPD Officer drove into PD Subsidized Police -0- -0- chain gate Vehicle, but County did not notice that ribbons removed from chain PAULINO, Christine 10/11/02 Cnty truck carrying back- Denied Claim -0- -0- fill fell onto windshield causin it to crack CATS, Candace Claimant alleges Fraud and Denied Claim -0- -0- Malice b HPD HINK, Mary 9/12/01 Pressure Washer stolen C Recovered for 1,800 from Honokaa Park dama es for loss of pressure washer LOWELL, Talia 1/2/02 Reversed sametime as PD Denied Claim -0- -0- County driver in parking lot at Kona Coast Medical Center NODA, Darryl 1/2/02 (Same as Lowell claim) PD Denied Claim -0- -0- Noda was the County Driver JARDINE, Rodney & 8/30/00 County Employee rear- PD Propery Damage 3,000 -0- Regina and ended a stopped vehicle on Settled Christopher (minor State Highway (Council child A royal ) ESPINA, Demetria 6/9/02 Claimant tripped on BI Paid Claim 3,000 -0- sidewalk on Haili St and (Council cut her right hand on the Approval powerpole while trying to 2/20/03) catch herself HECHT, Chris 6/1/02 Higashihara Park, minor BI Paid Claim 1,874.62 -0- child wandered away from (Council party and broke toe on a Approval 1/8/03) defective playground e ui ment WESSELL, Henry & 2/5/98 Surplus monies from RPT Claim Denied -0- -0- M K. tax sale BACHILLER, 5/2/98 Stepped into hole on BI Filed Civil Suit -0- -0- M ~orie Mililani Street RASMUSSEN, 10/10/98 Hapuna Beach-Accident BI Filed Civil Suit -0- -0- Estate of Cazol AMUNDSON, Steve 1/1/03 Left front end of car struck PD Claim Denied -0-- -D- ole KRAUSS, Peter 1/13/01 County Vehicle door C Statute of -0- -0- damaged when kicked Limitations Ran durin an azrest VIDINHA, Christine 6/14/02 Slip/Fall at 2002 State Close, No -0- -0- Senior Citizens Bowling Liability Tournament Award Ban uet at Nani Mau ISHII, Arnold 11/16/00 Stopped in Traffice rear- PD Civil Suit Filed -0- -0- ended b Count Vehicle RAMII2EZ, JESSE 1 /4/02 Turned into HPM in PD Denied -0- -0- Shipman Industrial Park in Keaau, a spike sticking out of the ground, that use to hold the "Speed Limit Sign" damaged Claimant's care fire Legend For Type Column Total Cases Total Paid TOTAL CASES CLOSED: 40 GL = General Liability 26 $9,367.27 TOTAL AMOUNT PAID: $15,633.52 VSI= Vehicle Self-Insurance 9 3,427.25 TOTAL AMOUNT RECD: $1,800.00 C = Collections 3 1,800.00 NV = Non Vehicular -0- -0- NT = Non Tort 1 -0- L = Litigation 1 1,000.00 S:claims~2003 Reports to Council Litigation• January 2003 to March 2003 Third Quarter-Payments of $1 500 or Less Case Name & Nature Progress County Response Prognosis Civil No. Kakalia v. County of Civil Rights, Federal District Mediation Paid Hawaii; Civil No. 01- Sought Court granted $1,000.00 1-0343 return of motion for monies Summary Judgment, Appeal filed. EXHIBIT "C" CLOSED CASES COUNCIL REPORT INFORMATION 4NI03 TO 6130103 Date of Anaunt Amount GalmanUCase Name Inddent Description Disposition Type Pafd Recovered ARAKI, JAMES 6!3/02 DWS Employee Dennis DWS ISSUED SUB $3,345.77 $0.00 Inouye failed to stop at CHECK for the STOP sign at the payment intersection of Mohouli and Kukuau Intersection ARAKI, JAMES 6/3/02 DWS Employee DUPLICATE Operating Ccunty Vehicle FILE REF 03-14 failed to Stop at STOP sign on Kukuau/Mohouli Street Intersection BOSCH, SCOTT 8/29/02 County employee Bryon $8,187.10-Scott BI $8,187.10 $0.00 Rillon driving a rented Bosch and PD $6,018.48 $0.00 Harper Ford Cargo Van Liberty Mutual rearended Bosch who in $6,018.48- return rear-ended Sheila Harper Rent-A- Buckley Car County Council Approval 4/5/03 BOUDREAUX, 8/22/02 County employee Harold CLAIM PAID 11- RICHARD MICHAEL Aiona reversed into 10-02 AMOUNT Claimant's car at Hale $300.00 Beach State Park in Pohoiki CABRAL, NEIL 12/31/01 Cabral's Vehicle was CLOSED -Per damaged when a branch conversation w/ from a tree fell as he Insurance Co No drove on the Mamalahoa subrogation Hwy potential CASUGA, 12/20/02 County driver PD $0.00 $1,070.78 PEARLINE for approaching intersection KALAI LLANES on Queen K Hwy, was rear-ended by Kalai Llanes DIMOND, GARY L. 1/24/03 Parked at Honokohau claim paid PD $629.60 $0.00 Harbor claims County employee reversed into his truck, damaged bed, upper door and pillar post DISTRICT COURT 2/7/03 $363.00 in cash lost at S. case closed O $363.00 $0.00 OF THE THIRD Kohala Police Station payment made JUDICIAL CIRCUIT (Bail monies posted) Page 1 of 2 Date of Amount Amount ClaimantlCase Name Inddent Description Disposition Type Paid Recovered GREENE, 5/1/02 Payment for Recovery of O $80.00 $0.00 MADELINE K. Fender Guitar KANEMITSU, 9/14/02 Ambulance while Council Approval PD $2,674.66 $0.00 CYRIL & MARGIE reversing into driveway, on 1/23/03 lifted roof-top of garage while on 911 call to Kanemitsu's home MARTIN, WARREN 9/7/02 While travelling on Route $500.00 to O $2,095.48 $0.00 8 TODDY 132 between mile Toddy Martin PD $500.00 $0.00 markers 1 and 2, large $2,095.48 to branch fell and landed on Hartford hood of car Insurance Council Approval 3/19/03 MATTOS, JOHN H. 10/23/02 Claimant's front end of DENIED PD $0.00 $0.00 truck was damaged when fell into hole caused by damaged water meter PACIFIC RENT-ALL 1/21/03 While traveling on claim paid/ PD $4,619.40 $0.00 Railroad Ave, Cnry Council Approval Vehicle's tire came loose 412/03 and damaged Claimant's Honda Accord SANCHEZ, JOHN 12/11/02 Claimant's car damaged PYD $851.87 $0.00 WILLIAM while parked on DWS property by tree that fell on it VERIZON 10/16/02 County employee Odani DENIED (Not PD $0.00 $0.00 struck down Verizon pole County (P5) on Manono Street employee) Total Closed Claims: 15 TYPE TOTALS: Total Cases Total Amt Paid Total Amt Recd Legend Far Type Column 0 BI =Bodily Injury Bodily Injury 1 $8,187.10 50.00 COM =Comprehensive NFB = No-Fault eeneft Other 3 $2,538.48 $0.00 o =other Physical Damage 1 5851.87 50.00 PD = Property Damage Property Damage 8 $14,442.14 $1,070.78 PYD = Physical Damage sue =subrogation Subrogation 1 $3,345.77 $0.00 REPORT TOTALS: 14 $29,365.36 $1,070.78 Page 2 of 2 , ~ CLOSED CASES COUNCIL REPORT INFORMATION 7/1/03 TO 9/30/03 Date of Amount Amount ClaimanUCase Name Incident Description Disposition Type Paid Recovered ALVARO, 4/28/03 Hit fire against curb claim paid PD $326.54 $0.00 KA'OHINANI KWAI (which was overgrown LAN with grass) puncture fire and scratch rim/06-04-03 photo's of damaged rim and lehua St done/claimant & witness interview completed/"need to recontact DPW re: written report if County road and trimming report - g - ARRUDA, 12/10/02 Travelin west on Ainaloa closed: no MITCHELL JAMES Drive, debris on road. further action Claimant lost control of see investigators car and struck the flood comments embankment. CASH FERGUSON, 2/27/03 DRIVING WEST ON claim paid PD $544.32 $0.00 MADELEINE PALANI; STOPPED AT LIGHT BEHIND HFD RESCUE VEHICLE. FIRE EXTINGUISHER FELL OFF OF TRUCK, HIT CLAIMANTS BUMPER CAUSING DAMAGE. RESCUE TRUCK DROVE OFF WEST, UNAWARE OF WHAT OCCURRED. FIGUEIRA, 3/3/03 Officer Letulle ran Stop DENIED PD $0.00 $0.00 SHIRLEY sign at the 4-way Stop at KomohanalKawailani - GALI, 8/13/02 Video Camera being CLAIM PD PD $563.54 $0.00 CHRISTOPHER D. installed at Radio Shop at HPD and the roof of his car was damaged HILL, THOMAS G. 4/7/03 County Dump Truck DENIED pulling County Trailer 2208 threw up rock onto Hill's windshield HULAMA, 2/13103 While pulling out of DENIED PD $0.00 $0.00 STANFORD KAY Aupuni Center parking lot SR. scraped the parking meter pipes Page 1 of 3 Date of Amount Amount ClaimantlCase Name Incident Desaipfion Disposition Type Paid Recovered KAMINSKI, MARK A. 3/5/02 Claimant's vehicle was DENIED O $0.00 $0.00 boken in to while parked at the Hilo Lagoon Centre. Stolen itmes include: Kenwood portable ham radio, Uniden scanner, black Audiovox cellular phone, black rechargeable spotlight, briefcase containing liquor control forms, and a black and silver Minolta micro cassette recorder. KAPCHINSKE, 8/1/01 Cnty vehicle rear-ended PD $729.00 $0.00 MICHAEL A. claimant's car damaged bumper KIM, YOUNG R. 8/20/02 Cnty Employee rear- Council O $372.30 $0.00 ended Lee while in traffic approved on SUB $2,879.96 $0.00 at Puainako/Kilauea 1019/02 Streets LAMB, WILLIAM 414/03 Police attempted to enter DENIED PD $0.00 $0.00 apartment as tenant was using illegal substances. Tenant refused to open door, police officers broked-in. LEE LOY, LESLIE & 11/1/00 Flood damage to home DENIED TARYN and contents. Due to run- off, negligent design, maintenance of and construction of run-off systems, overflowing drainage systems. MARKON, 7/14/03 DWS hired contractors to CLAIM PAID PD $199.80 $0.00 ELIZABETH cut shrubbery & tree's enroaching DWS property tank site. Contractor's had cut outside of fence into Elizabeth Markon's property. (3) Trees were cut: (1) Monkeypod and (2) Diffenbachia. MORLOCK, 6/3/03 While travelling on Keaau- DENIED PATRICIA W. Pahoa Hwy gravel came off of "Island Delivery" truck damaged her windshield Page 2 of 3 Date of Amount Amounl CWimant/Case Name Incident Descriptlon Disposition Type Paid Recovered PIIANAIA, 5/9/03 Car parked at Honolii claim paid PD $944.58 $0.00 GORDON H. Beach Park, Palm Frond fell onto car and dented roof SUYAMA, ESTHER 10/30/02 DPW paving Kapiolani CLAIM PAID O $75.00 $0.00 Street, police officer indicated to Claimant OK to drive out onto Kapiolani St. Claimants car damaged by fresh oil and tar TETER, MASON 4/17/03 Travelling on Railroad DENIED PD $0.00 $0.00 ELLSWORTH Avenue, crossed bridge on Railroad Ave and struck a platform on the road and damaged transmission assembly and oil pan VELASCO, 3/27/03 Employee exiting the CLAIM PAID PD $500.00 $0.00 ADELAIDE County Van (CH-1361) at the County's Motor Pool to fuel CH-1361 when she slipped and fell. Her Jade Bracelet broked in 4 places when she fell. Total Closed Claims: 18 TYPE TOTALS: Total Cases Total Amt Pald Total Aral Reed Legend For Type Column 0 BI =Bodily Injury Other 3 $447.30 $0.00 COM = Comprehensive NFB = No-Fault Benefit Property Damage 11 $3,807.78 $0.00 o =other Subrogation 1 $2,879.96 $0.00 PD = Property Damage PYD =Physical Damage REPORT TOTALS: 15 $7,135.04 $0.00 SUB =Subrogation Page 3 of 3 CLOSED CASES COUNCIL REPORT INFORMATION 10/1/03 TO 12/31/03 Date of Amount Amount Claimanf/Case Name Incident Descdption Disposition Type Paid Recovered ALCAIDE-HALMAS, 8/11/01 Fell into a pothole in DENIED BI $0.00 $0.00 KELLY Kailua View Estates Subdivision on Aloha Kona Drive. Injured left ankle and left knee which resulted in a left knee surgery due to the pothole fall. BLACKWELL, ROY 6/28/02 Claim against County of W. & JILL B. HI is one of "negligence". The planning director approved subdiv.(sub 6390-Revised) w/o approval of chief engineer of the DPW, which is mandatory under Ordinance 93-78. DE LIMA, THOMAS 7/13/01 While being hand-cuffed DENIED BI $0.00 $0.00 TONY by Narcotic Agent claims his right arm and shoulder was injured DEPONTE, 5/14/03 While crossing street in DENIED BI $0.00 $0.00 ELIZABETH B front of Keaau Post Office, tripped and fell DEWEY, ROBERT 9/10/03 Coconut fell from tree Claim Paid PD $50.00 $0.00 E. onto clmt's 92' Buick RoadMaster, damaged center of windshield. 2" in diameter & 2 horizontal cracks in windshield. DIEGO, ROBERT 11/14/02 County Helicopter landed DENIED PD $0.00 $0.00 MENDIOLA in front of his residence, a take-off gusts from the helicopter lifted a tent causing it to damage vehicle Page 1 of 3 Date of Amount Amount Claimant/Case Name Incident Description Disposition Type Paid Recovered FILKINS, RAY A. 7/29/03 Mower (CH 223), was claim paid PD $679.16 $0.00 mowing on side of roadway, rock flew & hit the top of claimants vehicle. Was stopped 200- 300 ft. back of mower, waiting for clear signal from flag person (Hope Kealoha). _ - FLEMING, BEN 12/8100 Order fr. Court to return re-opened 03-10- O $0.00 $0.00 vehicle 1966 silver Nissan 04 p/u truck. Vehicle seized closed - no claim by HPD-deemed for vehicle filed abandoned--unable to w/ county clerks locate claimants truck. office ISHIKAWA, LLOYD 2/24/03 Driving behind of CH CLOSED: PAID PD $260.41 $0.00 T. 1763 (Rubbish Truck) paint splattered onto MV. MALY, IRMALEE 5/29/03 While walking at 5:30 am DENIED BI $0.00 $0.00 ONAONA on Pauinako Street sidewalk, fell and hit face, injured knees and index finger and thumb NAKASHIMA, 8/12/03 Traveling behind CH 2450 PAID PD $299.66 $0.00 KENNETH YUKIO between Kawailani & Kahaopea, object flew from transfer truck onto claimant's front windshield causing a quarter size crack. PHILLIPS, 11/4/02 DWS damaged CLOSED CATHERINE customers residence control box - - RAPOZA, CANDICE 7/17/03 Traveling west along claim paid PD $734.46 $0.00 Waikoloa road, windshield was struck by rock that was ejected from County lawn mower being operated on west bound shoulder by County employee. SAUNDERS, 7/8/03 Claimant ran over a pole DENIED PD $0.00 $0.00 TYRONE AVERY which was sticking out of the ground at Kaumana 7- 11 store. Claimant's fire went flat. Page 2 of 3 Date of Amount Amount Claimanf/Case Name Inddent Description Disposition Type Paid Recovered SERRAO, 9/30/03 Police Radio Shop PAID PD $1,068.51 $0.00 NORBERT A., JR. installing a Video Camera System in Gmts police subsidized vehiGe. On 10- 13-03 noticed that a bolt used to secure the VCR in trunk had been screwed into the fuel tank. STEVENS-RAM, 9/1/03 Branch fell from Carlsmith Claim Paid PD $425.09 $0.00 WENDY K. Beach Park into parking lot of private condo complex. Broke clmt's passenger rear view mirror & denting door. SUNAOKA, 7/7/03 Tree snapped at base, CLAIM PAID PD $1,116.46 $0.00 RODNEY branches fell onto cable & phone wires. Also damage to iron roof and gutter. Total Closed Claims: 17 TYPE TOTALS: Total Cases Total Amt Paid Total Amt Recd Legend For Type Column p BI =Bodily Injury Bodily Injury 4 $0.00 $0.00 COM =Comprehensive NFB = No-Fault Benefit Other 1 $0.00 $0.00 O =Other Property Damage 10 54,633.75 $0.00 PD = Property Damage - PYD =Physical Damage REPORT TOTALS: 15 $4,633.75 $J.00 SUB = Subrogation Page 3 of 3 ATTACHMENT "B" 03/11/2004 16:23 1-008-961-0624 COH CC FSD HILO PAGE 84!06 HAWAII COUNTY FAMILY SUPPORT DMSION FIDM CASE REFERRAL AS OF FEBRUARY 29, 2004 ES 2001 FSD TO CSEA CS TO FSD 2002 FSD TO CSEA TO FSD JUL 34 2 JUl 30 18 AUG 31 3 AUG 32 10 SEP 18 4 SEP 0 2 OCT 33 3 OCT 0 1 NOV 30 6 NOV 0 9 DEC 34 8 DEC 28 2 zooz 2ooa JAN 33 9 JAN 39 7 FEB 21 15 FEB 0 0 MAR 0 6 MAR 31 1 APR 0 1 APR 26 0 MAY 32 7 MAY 30 2 JUN 30 B JUN 31 3 TOTAL 287 88 TOTAL 248 53 ~ OF CA ES 200a FSD O CSEA CSEA TO FSD 2004 FSD TO CSEA A TO FSD JUL 30 0 JUL AUG 0 2 AUG SEP 30 8 SEP OCT 30 2 OCT NOV 30 0 NOV DEC 0 1 DEC 2004 2005 JAN 31 1 JAN FEB 30 3 FEB ' MAR MAR APR APR MAY MAY JUN JUN TOTAL 181 17 TOTAL 0 0 03!11/2004 16:23 1-808-961-0624 COH CC FSD HILO PAGE 05/06 Oaraldlne Hasegawa fHILO FSD) To: Arnold S. Enokl IOAHV CSEA2); Julie Duldulao (OAHU CSEA2) Cc: Georgs A. Moore (HIlO CSFAI' Beatrice Bello (HI~O FSD); Anson K. Lee (NIlO FSD?; Margaret Masunege IKONA FSD) Subjeot: Monthly FIDM goal for Island of Hawaii George and I are in agreement that the Island of Hawail will open end process a minimum of 20 FIDM cases each month, commenoing June 2001. ' Beatrice Ballo of the Family Support Division office will send a minimum of 30 FIDM cases with HAJIS printouts to George Moore's office. George Moore'a staff, in tum, will elean up, certify and send a minimum of 20 FIDM cases to the Family Suppott Division office for levy and garnishment. Thank you fo esW eistance in thic matter. Page 1 03/11/2084 16:23 1-008-961-8624 COH CC FSD HILO PA(~ 05106 Geraldine Hasegawa (RICO FSD) II From: Julie Duldulao (OAHU CSF.,42) Sent: Friday, September 12, 2003 12:41 PM To: MlChael Steele (OAHU AO); Akon IGagawa ((OAHU CSEA); Ann Nakaura (OAHU CSF.A); Geraldine Hasegawa (RICO FSD)); George A Moore (RICO CSEA); Wayne shlmizu (KAUAI FSD); Jett Tokne (KAUAI CSEA); Vjdorta Takayeau (MAUI CSEA); Markna Q.F. Young (MAUI CSF~4) Cc: Amokl S. Fsoki (OAHU CSF~12) 9ub]ect FIDM COLLECTION Importance: High Hi Ali, Our FIDM coliectbn as a whole Is extremely low compared to prevbus years. I have taken two years for comparison purposes. Since 1999, we take pride In meinteining our position to bs the model atabe in oCSE's FIDM program. As You see, the colketion figures have gone done tremendously. I solicit your help and assistance to continue the ef7ectlvaness of the FIDM program. Tha funds are absolutely them for our kids, lot's make k works Thank you. Julie 2003 (Pe~od: January - Augustl CRD S 722,021.93 S 163, 010.00 MAUI 271,658.21 -0- BIOISLAND 135,799.97 65,700.00 KAUAI 69,588.00 41,506.00 f1,199,068.10 S 260,216.00 Pape 1 ATTACHMENT"C' RISK MANAGEMENT What is risk management? Risk management is "using common sense to prevent accidents, injuries, and oversights." It is a discipline for dealing with the possibility that some future event will cause harm. It provides strategies, techniques, and an approach to recognizing and confronting any threat faced by an organization in fulfilling its mission. By identifying risks and implementing an action plan to address them, public entities can protect their financial stability and their ability to provide services. Because risk is inherent in most productive activities, even the most conscientious efforts cannot eliminate all risk, but the impact of risk on their operations can be reduced. Risk management may be as uncomplicated as answering three basic questions: • What can go wrong? • What will we do (both to prevent the harm from occurring and in the aftermath of an "incident")? • If something happens, how will we pay for it? t What is the risk management department responsible for? The department may manage litigation, coordinate safety programs, and undertake the complex analyses required to set monetary reserves for future claims. The functions of continuous risk management would be to: Identify: Search for and locate risks before they become problems. Analyze: Transform risk data into decision-making information. Evaluate impact, probability, and timeframe, classify and prioritize risks. Plan: Translate risk information into decisions and mitigation actions (both present and future), and implement those actions. Track: Monitor risk indicators and mitigation actions. Control: Correct for deviations from the risk mitigation plans. Communicate: Provide information and feedback, internal and external to the project, on the risk activities, current risks, and emerging risks. Developine a Risk ManaECment Proeram The first step in creating a risk management program is to identify and establish the purpose for creating a risk management program. It may include items such as to reduce the cost of insurance and/or financial losses, minimize interruption of vital County services, provide a safe environment for the public and employees and reduce the number and cost of accidents. The next step would be to designate an individual or team responsible for developing and implementing the organization's risk management program. The team would be principally responsible for the risk management plan, while successfully integrating risk management within all levels of the organization. 2 County personnel from management on down to regulaz employees should assist in identifying risks and managers and/or supervisors should develop suitable loss control and intervention strategies. Insurance and Risk Management When losses do occur, organizations must pay for them somehow. Insurance is one of many methods available for financing losses. However, insurance does nothing to prevent a loss from occurring. The least costly accident in terms of time, money, and morale is the one that never happens. Practicing risk management is living with the commitment to prevent harm. Any misstep or event that brings negative attention to the organization can have a lasting impact on an organization's ability to fulfill its mission. The success of most nonprofits depends on the support of the public (volunteers, members) and risk management is an effective way to help maintain the public trust. The Role of the Risk Management Department The risk management department would oversee the execution of a five-step risk management process: 1. Acknowledge and identi risks. The operation of any organization involves some degree of risk or uncertainty of future events. The first step would be to idenfify these risks. These may include a very wide variety of incidents, such as someone slipping on a wet floor, vehicular accidents, injury while playing at a park, accident while performing job related duties, etc. No matter how improbable a risk may seem, if the organization can envision an incident happening, this should be listed during the first stage of developing a risk management program. 2. Evaluate and Drioritize risk. Assessment of the probability of each risk becoming reality and estimating its possible effect and cost to the County would be the next step. Past accidents and near misses should be evaluated. Checking with similaz organizations that have developed a probability and cost estimate should be looked at. Also take into consideration the possible public reaction to an adverse event. Priority azeas of wncem will include those risks that aze most likely to occur and aze very expensive when they do happen. Lower priority risks are those that seldom occur and are not likely to cost as much when they do happen. 3. Decide how to mana~your risks. using risk management strategies. Development of a written plan, which outlines how the organization will manage its major risks, is the next step. The plan should describe the suggested strategy or combination of strategies that the organization will employ. The four basic strategies for controlling risk are: • Avoidance. Do not offer or cease to provide a service or conduct an activity because it is considered too risky. • Modification. Change the activity so that the chance of harm occurring and impact of potential damage aze within acceptable limits. • Retention. Accept all or a portion of the risk, and prepaze for the consequences. • Sharing Risks. Consider sharing the risk with another organization. This may include purchasing insurance or sharing responsibility for a risk with another service provider through a contractual arrangement. • Implement The Plan. Once the appropriate governing body or management personnel has reviewed the plan, the agency should formally adopt and implement it. This would involve 3 distributing and explaining the plan to everyone affected by it. Employees and volunteers may need training to enable them to meet their specific risk management responsibilities. • Review And Revise Plan As Needed. The County must adapt to changes such as funding constraints, new services to address public needs, and the establishment of new laws. The Risk Management Department needs to evaluate its strategies at least once a yeaz and evaluate the risk management plan to ensure its continued relevancy, comprehensiveness and effectiveness. Having a risk management committee that meets periodically can help ensure that the issue of risk management receives ongoing attention. In evaluating the effectiveness of the program, answers to various questions should be reviewed, such as: Have the risk management techniques had the desired impact? Were injuries or accidents reduced? Did the program have a positive effect upon insurance requirements? Are greater or fewer resources available for controlling risks? Are revisions necessary to achieve the desired impact? The basic steps of risk management would be: Identif?cation: Identifying services and assets that could cause a loss to your local government. Evaluation: Placing values on potential losses by determining how frequently a loss is likely to occur and how severe it could be. Treatment: Examining ways to handle risks by securing insurance coverage, preventing accidents, minimizing losses after an accident, and exploring ways to manage uncovered losses financially. Selection and Implementation: Choosing and putting into practice the methods selected to deal with risks. Program Monitoring: Overseeing the results to ensure the program is effective. Benefits of Risk Mana¢ement More effective use of public fimds-instead of paying medical claims, liability suits, and property damage, put dollazs towazd public programs and services. Decreased costs and increased productivity-preventing worksite accidents and injuries reduces medical expenses, as well as costs related to lost work days, replacement workers, etc. Reduced losses from natural disasters, lawsuits, and other unexpected occurrences. Identification of exposures you may prefer to cover through means other than insurance~r avoid completely. Increased potential for economic development and rural revitalization resulting from improved efficiency and effectiveness. 4 Establishing a Written Risk Management Policv Statement A written policy statement is an effective tool for communicating the purpose of the risk management role to others throughout the organization. It also identifies specific actions that employees can take to contribute to and help promote the organization's overall efforts. A risk program is more likely to succeed if it is based on a policy statement endorsed by the governing body or chief executive officer or mayor. A strong policy statement would: (1) define risk as a priority for all employees, (2) empower a risk team to identify risks and develop a plan to address them, and (3) require the participation of all operational departments. Although the policy statement should be distributed throughout the organization, it is particularly important to communicate risk policy to department heads or others who will be asked to contribute resources (primarily manpower or employee time). Advantages of a Written Statement • Establishes the general goals and objectives of the risk management function within the organization • Defines the duties and the authority/responsibility relationships of the risk management department • Coordinates the treatment of loss exposures on a reasonably standardized basis among the various departrnents • Establishes and/or improves existing communication changes and management information systems within the organization • Provides for program continuity and facilitates a smoother transition during changes in administration and/or personnel The policy statement is a continuing guide and would be especially helpful to new employees. Furthermore, for the risk management professionals and staff, a written statement: • Provides the framework for assessing responsibility for controlling and/or financing loss expenses • Emphasizes the importance of the risk management function • States the position of the risk management department within the overall organizational chart t Contents of a Written Statement The risk management policy statement: Begins with a general description of risk management and its importance to the organization Discusses the position of the risk management department within the overall organizational structure Defines reporting relationships Outlines the scope of the authority and responsibility of the risk management professionals in dealing with others within the organization May describe the internal structure of the risk management department Clearly states senior management's objections for making appropriate use of risk control and risk financing techniques Specifies particular decision rules for various risk management techniques, depending on the level of detail the organization typically uses in policy statements regazding other fimctions 2 COUNTY OF' HAWAII DEPARTMENT = FINANCE P RO C E D U R E S MAN U A L- RISK MANAGEMENT SUBJECT: RISK MANAGEMENT PROGRAM I. Risk Management is a planned approach to protecting the County from loss. II. The objectives of the County of Hawaii's risk management orogram are• 1. To protect County assets. 2. To minimize the interruption of vital County services. 3. To provide a safe environment for the public sad employees. 4. To reduce the cost of accidents and other financial losses. III. Risk Management Policv The County of Hawaii shall endeavor to reduce the risks of accidental losses or other financial losses which is the aggregate during any fiscal year would significantly affect personnel, property, the budget, or the ability of the County to continue to fulfill its responsibilities. The County of Hawaii will apply to risks of accidental loss the risk management process, which includes a systematic and continuous identification of loss exposures, the analysis of these ezposures in terms of frequency and severity probabilities, the application of sound risk control procedures, and the financing of risk consistent with financial resources. Za recognition of its financial resources sad the spread of its physical assets, the County will accept retention of uninsured losses of less than approzimately one-tenth of one (O.1S) percent of the annual budget and accept retention of catastrophic loss in excess of approximately ten (lOt) percent of the annual budget; losses between those limits shall be controlled by the purchase of insurance, consistent with availability of coverage and reasonableness of premium cost in relation to perceived risk, probability of loss and generally accepted industry practices. EFFECTIVE DATE: REVISION NO.: PAGE OF SECTION-CODE-APPENDIX 1 8 COUNTY 01= I-IAWAII DEPARTMENT = FINANCE P R O C E D U R ES M A N U A L- RISK MANAGEMENT SUBJECT: RISK MANAGEMENT PROGRAM IV. f}e~^~^r,e ^r Risk Management 1. Identification of exposures - a continuous discovery process to identify County resources and the loss exposures that could affect them materially. 2. Analysis of risk - a continuous process to measure financial impact of loss exposures by analyzing past loss frequency and severity, and by estimating future loss frequency and severity. 3. Control of risk - the planned and coordinated program to eliminate or reduce losses and risks by the methods of avoidance, transfer or retention. 4. Funding of risk - the provision of sufficient funds to pay for losses by the most effective use of County resources, including . the purchase of insurance. 5. Administration of risk management program - the development of personnel and an administrative management program to effectively use County resources. V. Respsnsibilitie~ 1. Aqeacy heads, other officers and supervisors shall be primarily responsible for carrying out the County's risk management program by: a. Identifying and analyzing the probable financial impact of exposures within their areas of responsibility and interest. b. Taking appropriate action to avoid or minimize loss which might result from identified exposures. c. Reporting all loss exposures as well as actual losses, accidents or incidents occurring is their area of responsibility and interest. d. Assisting in carrying out the County's risk management program. EFFECTIYE DATE: REVISION NO.: PAGE OF SECTION-CODE-APPENDIX 2 8 COUNTY 01= HAWAII DEPARTMENT ~ FINANCE PROCEDURES MANUAL - RISK MANAGEMENT SUBJECT: RISK MANAGEMENT PROGRAM 2. A risk management committee for the County of Hawaii is hereby established. a. The committee shall consist of the managing director, the finance director, the corporation counsel, the safety coordinator, sad the risk manager, who shall be designated by the committee and shall be a civil servant to maintain continuity of the program. b. The risk management committee shall establish, coordinate and maintain a county-wide risk management program. it shall formulate a program for the elimination or reduction of loss, including the purchase of insurance. c. The risk management committee shall arrange periodic risk management reviews and audits of claims and other administrative programs. 3. The Director of Finance shall establish, coordinate and maintain a county-wide risk management program and, xith the risk manager and assistance from other officials, shall: a. Analyze the cost of insurance services. b. Monitor cost to determine cash flow advantages. c. Build reserves to support retained risks. d. Obtain loss probability and actuarial studies to determine .funding requirements. e. Develop a risk management budget to be approved by the risk management committee, including accumulation of funds is a trust fund for payment of claims. f. Maintain log of insurance policies, costs, coverage dates, . agents, sad other appropriate data. EFFECTIVE DATE: REVISION NO.: PAGE OF SECTION-CODE-APPENDIX 3 8 COUNTY OF' HAWAII DEPARTMENT = FINANCE P R O C E D U R E S MAN U A L - RISK MANAGEMENT SUBJECT: RISK MANAGEMENT PROGRAM 4. The Corporation Counsel shall: a. Investigate liability claims filed against the County and investigate accidents that might result in a lawsuit or filing of claims. b. Take appropriate action to settle claims within limits authorized by the County Council. c. Recommend settlement of other claims or lawsuits for County Council action. d. Defend County against all suits. e. Reviex contract terms and conditions for adequacy in protecting County against losses. f. Provide legal advice to agencies in avoiding or transferring risk, including equal employment. q. Estimate probable loss payments for establishment of reserves. h. Maintain liability claim files. 5. The Safety Coordinator shall: a. Develop, implement and maintain a county-wide safety program. b. Administer the County workers' compensation program. c. Maintain county-wide workers' compensation claim files. d. Estimate probable workers' compensation payments for establishment of reserves. e. Establish, implement and maintain an employee assistance program to counsel and assist employees as necessary. 6. The Equal Employment Opportunity/Affirmative Action Officer shall: a. Advise departments in employment interview and selection process to avoid equal employment violations. b. Review cases filed for corrective revisions to practices and procedures. EFFECTIVE GATE: REVISION NO.: PAGE OF SECTION-CODE-APPENDIX 4 8 COUNTY OF I-IAWAII DEPARTMENT = FINANCE PROCEDURES MANUAL - RISK MANAGEMENT SUBJECT: RISK MANAGEMENT. PROGRAM 7. The Personnel Director ahalls a. Establish, implement and maintain physical standards for employment. b. Develop policies and procedures in cooperation with the Safety Coordinator and the Equal Employment Opportunity/Affirmative Action Officer to address risks associated with diseases, substance abuse and other health-related issues. 8. County Physicians shall: a. Review workers' compensation claims and advise Safety Coordinator on payment. b. Review physical standards for employment. c. Conduct pre-employment physical examinations and advise appointing authority on risks of hire. VI.. Self-Insurance Fund 1. Ordinance 86-35 (Section 2-156, Hawaii County Code) established a self-insurance fund for the County, funded by an initial appropriation of $500,000. 2. When the fund balance is less than $3,000,000, the self- insurance fund may be used only to pay claims, settlements, and judgments exclusive of workers' compensation claims against the County where the amount of such claim, settlement, or judgment is in excess of 51,000,000. When the fund balance is 53,000,000 or more, the self-insurance fund shall be used to pay all claims, settlements, and judgments against the County, exclusive of workers' compensation claims. EFFECTIVE DATE: REYISION NO. PAGE S OF $ SECTION-CODE-APPENDIX COUNTY Of' HAWAII DEPARTMENT = FINANCE P R O C E D U R ES M A N U A L- RISK MANAGEMENT SUBJECT: RISK MANAGEMENT PROGRAM 3. In accordance with Ordinance 86-35 (Section 2-157, Hawaii County Code), as annual appropriation shall be made to the self-insurance fund is the amount to be determined by the Mayor and the County Council. The Director of Finance may also, with the approval of the Mayor and County Council, transfer prior to year end, all or a portion of the appropriation not needed in the miscellaneous insurance, claims and judgments account to the self insurance fund. 4. The self-insurance fund may only be dissolved or used for purposes other thaw those specified herein unless the dissolution or non-apecified use is approved by the unanimous vote of the County Council. 5. The Director of Finance shall administer the self-insurance fund, which shall include investment of the fund. Investment income of ' the fund shall accrue to the self-insurance fund. VII. Policy and Procedural Guidelines: The Risk Manager, with the guidance and approval of the risk • management committee, shall develop policies and operating procedures for the following: ' 1. Transfer of Risk: a. Wherever possible and financially prudent, risk shall be transferred to insurance companies consistent with the risk management policy. ' b. A consistent policy shall be developed to transfer risk contractually, through the use of hold harmless and indemnity clauses and requirements for contractors to name the County as as additional insured on the contractor's insurance policies and/or obtaining a waiver of subrogation on contractors' workers' compensation insurance policies. EFFECTIYE DATE: REYISION NO.: PAGE OF SECTION-CODE-APPENDIX 6 B COUNTY 01=' HAWAII DEPARTMENT : FINANCE P R O C E D U R E S MAN U A L- RISK MANAGEMENT SUBJECT: RISK MANAGEMENT PROGRAM 2. Avoidance of Risk a. A continuing program of audit and analysis of potential risks shall be developed and operated to monitor all County departments sad agencies. b. Where possible, risk shall be eliminated or minimized. c. Where not practical to eliminate or minimize, risk shall be transferred to other public or private entities whenever possible. d. Efforts of the Safety Coordinator, the Civil Service Director, and other educational and training efforts of the County shall be coordinated by the risk manager to maximize the avoidance of risk. 3. Retention of Risk a. The risk manager shall annually determine the amount of aggregate self-insured retention and deductibles from insurance coverages to be retained as risk sad likely to become an expense. b. The risk manager shall also calculate the acceptable amount of losses from small claims which arise from a reasonably predictable number of small losses. c. The estimated total amount of retained risk shall then be incorporated in the annual budget in the Miscellaneous Insurance, Claims and Judgments account. EFFECTIYE GATE: REVISION NO.: PAGE OF SECTION-CODE-APPENDIX 7 g COUNTY O~ HAWAII DEPARTMENT ~ FINANCE P ROC E D U R ES M A N U A L- RISK MANAGEMENT SUBJECT: RISK MANAGEMENT PROGRAM 4. Purchase of Insurance a. The risk manager shall continually monitor the insurance industry to determine those risks more appropriately transferred to insurance as opposed to those more appropriate for self-insurance, as well as suitable levels of coverage, deductibles and/or self-insured retention in relation to premium costs. b. The risk manager shall formulate procedures for the handling of exceptions to policy regarding purchase of specialized coverages required by contractual relationships, other government agencies, lessors and other parties. 5. Risk Management Information System a. The risk manager shall develop or otherwise acquire an information system to include: (i.) The reporting of losses, claims G incidents (ii.) A database from which loss experience and other statistical data may be effectively utilized. (iii.) Financial information regarding current and future costs of the risk management function. b. The risk manager shall also coordinate record keeping & retention with other departments and agencies as necessary. c. The risk manager shall develop and implement such internal office procedures as necessary to assure an efficient and secure filing system for manual and electronic risk management information. EFFECTIVE GATE: REVISION NO.: PAGE OF SECTION-CODE-APPENDIX 8 8 a ~~IIP'CI E4~Pf7Ci17 ~,!~Q1~L1171E' t r r 1 F ~ f~ Ti.,."mom ~ _ L"" Y e~_- ,ems .+lvxx ¢.=-c,~:s_~-.:~ - '~au~ssema.< .~.x::. c.. ~-c.- cca ..:~,..:~.arsx. ~ad.•m.:~_....-ce.~..vn ry ~ ~,mee. •+..m.... n.~. wc.-+-+ www ~ ~e~o y mvr ~~o O Y~ ems I~wc • Ee • - - , ~ ® was ww~ ® • ~ s . aor . w °~s r wi.wo, ~ ra ~ ~~O ~o ~R P WlYO1 Chapter 2 / EsteMishtng a Risk Management Program 79 The legality and humanitarian conduce objectives might also conflict with the economy objective. Some exrcrnally imposed obligations (such as safety stan- dards dictated by building coda) might be nonnegotiable; others (such u em- ployeebenefits obligations aubjea to collective bargaining agreements) maybe negotiable. Generally, in the short run, legal obligations must lx accepted as unavoidable obligatiotu. Meeting humanitarian concerns might raise costs in the short tun but yield dividends in the long tun. In working with others to resolve those and other conflicts among organizational objectives, a risk man- agement professional must consider two things: (I) the likely effects of alterna- tive risk tnanagementtechniques and (2) the interests end concerns of the various groups affected by an organization's risk management program. Defining Authority/Responsibility and Reporting Relationships of the Risk Management Profiessional Fach organization's risk management profes- How do risk control re- sional tray have a variety of responsibilities to sponslbilitiesdiKerfrom ~ fulfill under various repotting rcladonahips. risk Rnaneing responsi- ~ 'the following pazagraphs deal with only some bilities7 i of the most frequent responsibilities and duties. i ~ What reporting relation- ships best help a risk ~ Likely Responsibilities and manager meet these ! Duties of the Risk ~ rvspons;6;llties7 _ ~ Management Professional t- In this text, the term "risk management profes- sional" refers to any person who holds primacy nspmrsibility Eor an organization's risk management program. In large private organizations, this responsibility may rest with an executive whoa tide includes "risk managemrnt" or "loss control;' or with other executives such as vice presidents, treasurers, controllers, secretar- ies, or other officers. In smaller private organizatiotu, the risk management function may be performed by the chief executive (or a deputy) or by someone outside the organization such as an insurance bmker or agent, or a risk manage- ment consultant. Larger public entities aze likely to have a risk management professional on staff or available as a consultant, much like private organizations have. In smaller public entities, particularly towns and school districts, respon- sibility for risk management is likely to rest with an administrative officer who has many other duties. 80 Essentials of Risk Management Having primary responsibility for risk management gives the risk managanent professional specific duties in each administrative function-planning, organiz- ing, leading, and controlling-for each of the steps in the risk management decision process: identifying and analyzing loss exposura, examining alterna- tive risk managemrnt techniques, selecting the most promising techniques, implementing these chosen techniques, and monitoring their results. (See Exhibit 1.1 for a matrix relating the administrative functions to the decision steps.) Except in quite small organizations, no risk management professional can per- sonally perform all the tasks these responsibilities entail. Some tasks are assigned to employees within the risk raanagemenc depattmrnt; marry aspects of manag- ing loss exposures must be part of the daily work of managers and other employ- es throughout the organization. Long ago, safety specialists recognized that "Safety is everybody's business." The same is true for risk management, which includes, but goes beyond, safety. Therefore, much of a risk management professional's daily efforts must be focused on securing the voluntary woperative efforts of managers and others at every level of an organization. Nonetheless, primary responsibility for risk management remains with the risk management professional. He or she must decide, or work with other senior managers in jointly deciding, how to manage loss exposures. Bearing the weight of those decisions, or guiding other managers in jointly bearing this weight, is the fundamental responsibility of the risk management professional in managing a risk managemrnc program. The specific, nondelegable duties of a risk manage- ment professional, although varying somewhat by organization, are essentially similaz. The generic duties ran be grouped as involving the org:miration's (I) overall risk management program, (2) use of risk wntrol techniques, and (3) use of risk financing techniques. Regarding the Overall Risk Management Program An organization's risk management professional should know more about its risk management program than any other executive, employee, or outside consult- ant to the organization. Therefore, the overall structure of the program and its effectiveness in implementing its objectives rest most directly in this professional's hands. In any organization, therefore, the risk management profes- sional (alone or as the key resource person serving senior management, other department heads, or rank-and-file employees throughout the organization) must do the following: • Guide senior management in setting the organization's risk management policy • Plan, organize, lead, and control the resources of the risk management department Chapter 2 / Establishing a Risk Management Program 8 • Assist senior management in establishing, and then work to implement, areas of responsibility and channels of communication on risk trtanagement matters throughout the organization • Work with other managers to define and motivate the responsibilities and actions of persons throughout the organization in implementing the risk management program Apportion the costs of the risk management program equitably among the organization's departments to reflect differences in loss exposues and ptu- vide incentives for optimum risk management effatts within each depatt- ment Adapt the risk management program ro changing conditions, adjusting the organization's mix of various risk control and risk financing to cope cost-effectively with its changing exposures and the changing costs of ~reri- ous control and financing techniques Regarding Risk Control An organization may use any or all of several risk control techniques, including exposure avaidance, risk prevention, risk reduction, segregation of exposure units, and contractual transfer for risk control. The specific tasks tlx risk man- agement professional (or any member of the risk management department staff) performs differ in their specifics from one risk control technique co atrother. Nonetheless, the objectives of those activities-the risk control results for which the risk management professional and department aze grnerally held accountable-include the following: • Advising senior management on how to emphasize safety as an integral element of the organization's risk management program, to encourage and reward safe employee performance, and to correct any shortcomings in risk control • Coordinating the efforts of everyone employed by, or providing goods nt services to, the organization in recognizing hazards and implementing ap- propriate control measures • Informing line managers about how best to fulfill their fundamental respon- sibilities for preventing accidenu in the olx;ratiorts each manages • Facilicttingreuilutionofxnyconftictshetweenlinemanagerscegardinghow best to implement effective risk control measures, invoking [he organ- ization's risk management policy where appropriate • Exercising whatever direct line authority the risk management professional may have aver risk control, especially during emergencies • Identifying the benefits as well as measuring and controlling the costs of 82 Essentials of Posk Management al[ernative risk control techniques in order to develop the most ct>st-effec- tive risk control program A risk management professional's direct line authority over risk control activi- ties varies among organizations. That authority includes giving directives to personnel outside the risk management deparcment and, if necessary, invoking sanctions against those not complying. In a few organizations, risk control activities aze eencmlized within the risk management department, givLtg the risk management professional direct tine authority to require appropriate risk control measures. In a larger number of organizations, responsibility For risk control is likely to be dispersed among several departments. For example, production and personnel executives are most directly concerned with employee safety, production personnel focus on quality control, and the legal deparcment functions as the organization b primary resource on legal matters. Attention to employee safety and other risk control aspects has predated the ax+rdinated practice of risk management in many organizations. Therefore, a risk management professional is likely u> find that ocher managers alreaJy have significant risk control authority and responsibility, which they might be reluc• [ant to relinquish. Sudt cooperation and coordination are necessary because ocher managers might be particularly skillet in their individual areas of risk con[rol. Also, a risk management program can be effective only if it has the support of management andopcrating petsonnel throughout the organization. A perceptive risk management professional will cocxtinate existing risk control efforts and cooperate with other manager and personnel rather than try to centralize risk control within the risk management department. Regarding Risk Financing In risk financing, as in risk conaol, a risk management professional is responsible for several financing techniyues. Those techniques can be broadly categorized as invoking either risk retention or risk transfer. Risk retendem techniques include current expensing of lasses, using a funded or an unfunded resen•e, borrowing funds to pay losses, and relying on an affiliated ("captive") insurer. Risk transfer cechniques include wntmetual transfer for risk financing and commercial insur- ance, as well ac hedging for many business risks. In dealing with the retention techniyues, a risk management professional typically focuses on the organiza- tion's resources. The risk management professional assures, as far as limited foresight c:+n, that funds will he available from plannexl wurces within the organization when reefed to pay far losses the organization retains. In dealing with risk transfer op[ions, the risk management professional strives for this same assurance, relying on external sources of funds. (In either tau, the same plan- ning, negotiazing, record-keeping, and general administrative skills are re- quired. ) Cii,ip[rv 7 i EstaUhsr:ng a Risk Manegemont Pr<+grnm ti3 For each risk financing alternative, and for all of them as a group, the essential duties of a risk management professional include the following: • Working with financial and other senior executives to determine the extent to which the organization should retain and the extent to which it should transfer the financing of potential losses from specific exposures • Deciding, once the appropriate overall retentionittancfer balance has been established, which retention and which transfer techniques should be used to finance losses from specific expoures • Negotiating with appropriate persons and/or firms either within or outside the organization w implement the chosen retention or transfer techniyues for specific loss expo»ures • Activating the appropriate retention or transfer mechanism when a loss OCCUrF • Identifying the benefits as well as measuring and controlling the cost.. of alternative risk financing techniques in onfer to develop the ma+t cose- effcctivc risk financing program Although those duties art virtually universal for all risk management profession- als, the particular xccivieies needed to fulfill the duties differ by organization, by loss exposure, and by risk managctnenc Cechniyuc. Ir is therefore impossible ro list the specific activities in which etrry risk managem~KU professional shtwld engage. Even a list of typical activities could he misleading, even inappropriate, m patticular circunsstances. Nonetheless, in reviewing his other daily activities. every risk management professional should be able to relate each individual activity to one or more duties regarding the organization's oveml( risk marutge- ment program, its risk control aciiviries, or its risk financing activities. Reporting Relationships A Ichough risk managenunt has general ly been gaining stature in recent years, its sibmificance within any patticular organization varies depending on several fac- curs. T7u level to which the risk management professional reports and the title held depend in large part on senior managemenPs wncem about loss exposures and hou• well the risk management function has been performed in the past. In patt, reporting relationships depend on the organization c basic mission. In a hwpit:+l, the risk tttanagentent professional probably reports to the h<rspiutl's senior administr.+ror; in a city, to the mayor ur city controller, in a bank, to one of the vice presidents. In a medium of large corporation oriented toward ptuduo tiun or marketing, risk management is often considered a risk financing func- tion, and the risk management professional reports to the treasurer, assistant treasurer, controller, or perhaps the vice president in charge of finance. Simi- 84 Essentials of Risk Management laxly, in a public entity like a city or a school disnict, the risk management professional might report w the furance director or perhaps directly to the mayor, city manager, or superintendent. Mother factor inFluencing repotting relationships is the loss exposure(s) con- sidered most important by senior management. For example, if much of a par- ticular organiation's risk management activity revolves around products liability claims, the risk management professional might repott to the wrputate secretary, auistant secretary, or chief legal counsel. If the organization is more wncemed with fire protection engineering, the risk management professional might report to the vice president of engirreeting or the chief engineer. In some organisations, the risk management professional might report to several key line executives concerned with pmduccion, marketing, or financing activities. Organizing a Risk Management Program ' No one way of organizing a risk management How is the structure of a program will accommodate all situations en- risk management depart- countered by every risk management pmfes. ' meet likely to changes as sional. I is or she may step ituo a well-devclopttl the department expands or program tha[ needs little anention. In most contracts? cases, the risk manaagemcnt professional cn- axtntcrs a partly developed proimam that needs !n what ways should a risk further development. He or she should gain a management department thorough understanding of the ot};aniratiwi s cooperate with other operation< and of the current activities and ca- departments? pabilities of nc~ existing risk management staff Whet information Flows to before attempting to assume mom activity or and from a risk add staff; only then can steps be taken to make management department necessary changes. to foster this cooperation? Internal Organization of a Risk Management Department In small organisations, the risk management department typically con,ists of one lx[xm. As organirations grow and have. more I<us exposures, staff needs to be added. The order and tare at which staff is added depends on the n•~ture of the organization's operations and its management's attiuaies toward expanding staff. Some organimtions pride themselves on what they calla "lean headquar- ters'staff serving decentralized branches or departments; others prefer a large s~ Chapter 2 / Establishing a Aisk Management Program 85 staff, untralized ro perform many tasks for each branch or department. Addi- tions to awff should always be justified as in response to a mal need rather than as an attempt to build an ideal organizational structure. The Small Department As an organization grows, additions to staff oken begin with a safety and loss prevention expett and a claims manager, as shown in Exhibit 2.2. Any additions to professional staff should bring new, specialized expertise to the department, not merely just another person performing the same tasks as original personnel. Exhibit 2-2 The Small Department ~ Hisk Management ~ ' - ' Director ~ Safety end Loss Prevention Claims Manager Manager The Medium-Sized Department With further growth or as the value of the risk management process is incmas• ingly accepted, additions « > staff should be considered. Generally, more assis- tance will be required with insurance, with the more complex aspects of safety and loss prevention, and with the increased volume of claims, as shown in Exhibit 2.3. Class Specification, City and -~mty of Honolulu Page 1 of 2 DEPARTMENT OF HUMAN RESOURCES* CITY AND COUNTY OF HONOLULU Class Specification 020439 RISK MANAGER SR 28, BU 13 Dutes_.Summary: Plans, develops and implements a comprehensive risk management program involving evaluating, controlling and minimizing the City~s exposure to, loss of, or damage to physical assets, fidelity losses and losses arising out of liability claims; develops and maintains loss control reporting and monitoring procedures; and performs other related duties as required. Disti~uishing_Characteristics: This class is distinguished by its responsibility for the development and implementation of a city-wide risk management program to reduce risks and losses and thereby achieve savings through reduction in insurance premium costs and property and liability losses. I1lustratye.Examples of Work: Reviews risk exposures faced by the City such as loss by fire, loss from liability claims, property damage, theft, workers' compensation and employee dishonesty; analyzes and defines the extent of exposures; determines effective methods of avoidance, reduction, prevention, assumption, or transfer of risks to provide optimum coverage at minimum cost; prepares bid specifications for insurance coverages; collects and maintains loss information of types of losses and causes thereof; analyzes reports and makes recommendations to eliminate or curtail causes of losses; promotes safe working conditions for employees; develops claims adjustment program and manages claims fund; prepares bid specifications for claims administration and adjustment services; coordinates settlement of claim with Corporation Counsel or the respective insurers; maintains all City insurance records; conducts orientation for department and division heads on risk management program; conducts training sessions for employees on proper reporting of incidcnts and identification of risks; evaluates contracts and leases entered into by the City to determine insurance requirements; evaluates new programs and activities to determine risk exposures; prepares and maintains formal administrative directives on risk management; drafts ordinance amendments and legislative proposals to amend provisions on insurance procurement as required; prepares budget requests for insurance premium costs and self-insurance claim fund. Minimum Qualification Requirements for the Class: http://www4.co.honolulu.hi.us/hrjobclass/SpecFiles/020439.htm 1/13/03 Jan •15 03 10:15a Risk Mgt-Honolulu CB~C 808-$27-6830 p.z ' Under the general direction of the Director of Finance, the incumbent develops the City policies relating to risk management, including risk exposure, loss prevention and loss control. %OF TIME 1. Develops all City-wide risk management policies, procedures, programs and 15% controls. [1] [2] 2. Develops risk financing strategies; obtains actuarial evaluations of City 15% self-insurance programs; develops criteria for loss funding programs. [1] (2] 3. Develops and directs strategies and risk analyses for self-insurance 10% options. [1 ] [2] 4. Develops strategies, and designs Cites commercial insurance programs. Processes, negotiates and oversees administration of the City's 10% insurance contracts.: [1] [2] 5. Directs the evelopnient and administration of City-wide loss prevention 10% programs, policies and procedures; advises departments in developing and implementing intem4l procedures for compliance. [i] [2] 6. Directs claims management administration of City insurance contracts. 10% Reviews specific claims to help resolve liability issues,-based on review of confidential medical and employment records of claimants, procedures; Incident reports arid other confidential and/or proprietary information. . Coordinates legal representation and claims investigating services for self-insured claims in litigation. [1] [2] 7. Reviews purchasing procurement documents for major proposals and other 10% legal documents and contracts to assure that risk management concerns are addressed; assesses proprietary financial information of bidders and vendors to ascertain financial capability to meet risk management concems, (1] [2] 8. Advises elected and'appointed officials and members of City boards and 5% commissions as to potential liabilities arising out of their official capacities. Serves as consultant to other departments and agencies, as the City's expert on , risk mana'g'e ent. [i] [2] 9. Analyzes govemmemtal regulations, laws and rulings concerned with insurance 5% and risk management to determine their impact on the City and its. programs; and Implements appropriate action to stay in compliance. Prepares ordinance amendments, and legislation proposals on matters affecting the City's risk management programs. [t] [2] 10. Develops and administers an annual operating budget including the Risk 5% Management Provisional Account 11. Supervises an Insurance And Claims Assistant [1 ] [2] 3% 12. Performs all other related duties as assigned, 2% _~18/OJ 10:26 FAI 808 270 7878 CO MAUI DEPT OF FINANCE 1®002 R-•~- P~.al~.o,~ ~~o.~.u. G~"~1.i~ t DF-0006 Risk Management Officer Clrief of the County of Maui's loss control and risk management division. Plans, develops and implemems a comprehensive loss control end risk management program iavolvittg the evaluation, control and m;n-*+~+Tng of the County of Maui's cxposule to loss of or damage to assets; fidelity losses; and losses arising out of liability claims and worker's compensation Develops, maintains, and reviews and analyzes loss control reports and monitors procedures.. Oversees the County's workers' compensation and safety programs. Arranges the acquisition of insurance and develops and recommends levels of self ;n~""nrr., 1. Tusk Analysis a) Evaluate risk exposures and methods of min;m;Tino }hat exposure. (a,b,c) b) For existing programs, determine ehariges in risk exposure based on new case law and/or regulatory environment. (abc) c) Prepare operational and risk reports for management analysis. (a,b,c) d) Develop information from the construction of the building, inventory of equipment, number of employees to the financial reports with list of officers and directors. (a,b) e) Develop corrective action if a problem has been discovered. (a,b) f) Answer questions by the underwriter or engineering service. This includes functioning as a technical intermediary. (eb,c) g) Recommend improvements foz reports to company and improvements in conditions oz property as applicable. (e,b,) h) Manage insurance programs, such as fidelity, surety, liability, property, and workers' compensation risks, (a,b,e) i) Select and direct activities of safety, engineering and loss prevention experts. (a,b,c) 30% 2. workers' Compensation a) Oversee the planning and direction of the county's centralized workers' compensation program. (a,b) b) Oversce the follow up or investigation of problem cases, questionable claims, and other complex cases. (ab) c) Reviews recommendatiott for acceptance or denial of liability on questionable cases. (a,b) 15% 3. Insurance Protection s) Identify exposure to loss. (a,b,c) b) Determine which exposures are to be insured and those to be retainod. (a,b,c) c) Determine insurable values of property and proper limits of coveraige for third party loss exposures. Set up s risk management information system (RIMS) to maintain accurate exposure information (payroll, employce data, Property values, vehicle costs, etc.). (a,b,c) Ol,/lb/OJ 10:27 FAI 808 270 7878 CO 1(AUI DEPT OF FINANCE I®OOJ r DF-0006 Risk Management Officer Page 2 d) Contact and coordinate with qualified insurers the placxment of coverages. (ab) e) Negotiate acceptable terms, conditions and pricing of all insurance policies. (a,bc) f) Prepare financing and payment plans es needed. (a,b,c) g) Receive, check, and maintain insurance policies. (ebc) h) Review premium audits. Audit of policy terms and conditions before coverage is bound. Checking of policy delivered to verify that client received what was promised and paid for. (ab,c) i) Recommend monetary amounts annually to be maintained in reserve to covet the county's various self-insured programs. Calcarlate insurance reserves. (ab.c) j) Determine proper allocation of premium charges. (ab,c) k) Monitor timing of and preparation of all applications and renewal forms. (a,b) q Authorize insurance fund payments for self-insured property. (a,b) 20% 4. Claim Management a) Review all major claims. (a,b) b) Coordinate with corporation counsel and/or outside counsel on pertinent claims matters. (a,b) c) Establish how uninsured or unbudgeted losses will affect present and future financial condition of the county. (a,b) d) Monitor reimbursement of claims. (ab) e) Appoint claims, self-insurance administrators and investigators. (a,b) f) Manage and coordinate submission of insurance claims. (a,b) 20% 5. Safety and Loss Control a) Disseminate intelligence and interpretation of possible insurance situations. (a,b,c) b) Recommend to director improvements is control policies to prevent losses and/or reoccrirrence. Evaluate overtime, cosUbenefits of control procedures. (eb) c) Oversee the planning and direction of the County's Safety Program. (ab) 10% 6. Other specified duties a) Prepare the annual budget for the workers' compensation fund, property end liability fund. (a,b) b) Answer questions and provide information to the public; investigate cemplaints and recommend corrective action•as necessary to resolve complaints. (a,b) c) Participate in various committees and professional organizations such as PRIMA (Public Risk Insurance Managers Association). (ab) d) Perform other related duties as assigned. (ab) 5% _ 01/16/03 10127 FAI 808 270 7878 CO I[AUI DEPT OF FINANCH 1®00{ t, 1Z1Sk 1Vlamager Position Description Page 3 Essential tasks are identified as follows: a) The performance of this function is the reason that the job exists. b) The number of other employees available W perfoffi this function is limited. c) This function is highly specialized and employee is hired for special expertise or ability to perform this function O1/lb/OJ 10:27 FAZ 808 270 7878 CO I(AUI DEPT OF FINANCE ® OOS • .205 DEPARTMENT OF PERSONNEL SERVICES COUNTY OF MAUI ~ZI Class Specification for the Clase: teTS:x aratrnta>r*irtrrr OFFICBR pur+PS S+mmarv• Plans, directs and coordinates the County's risk manage t program, including the administration of the workers' compe ation function; provides technical assistance to departments on ri k management matters; and performs other related duties as re fired. niah;nau+shing Characteristics: This class is distinguished by its responsibility to de ign, implement, and manage the County`s risk management program t minimize the County's exposures to property and liability to ses, including those exposures related to the County's workers' compensation program. Exa s o D ~ (The following are examples of duties. e omission of specific duty statements does not preclude manag ment from assigning such duties if such duties are a logical assi ment for the position.) • continually identifies the County's exposures to accide tal, legal and regulatory losses and estimates maximum f6res sable losses, including those associated with the centralized workers' compensation program. • communicates to appointing authorities and managers the identified loss exposures and the potential costs of accidents and preventable losses. • reviews major leases, contracts and corporate agreement for County liabilities and responsibilities that should be avoided or insured, and for unacceptable contingency provisions that should be renegotiated. • maintains a historical record of all accidents and loss s, insured and uninsured, including recoveries from others and reserves held by insurers. _ 0~/16/OJ 10:28 FAS_808 270 7878 CO I[AUI DEPT OF FINANCE ® 006 RISK MANAGEMENT OFE-_--~R Part I, Page 3 # # # # # # # # 1k # This is the first specification approved for the new cl ss, RISK MANAGEMENT OFFICER, effective April 1, 1995. APPROVED: Augus[ S, 1996 erector of Personnel Se ices _ O1/18/OJ 10:28 PAS 808 270 7878 CO I[AUI DEPT OE FINANCE ® 007 . 205 DEPARTMENT OF PERSONNEL SERVICES COUNTY OF MAUI PART II Minimum Qualification Specification for the Class: RTCx M_Ats~GEMBNT Oj+l+, _ TCER [ynimum Ou^1+fi~ation Rerni' m n-s: Tr-~ntng ^nd Exogr~en~: A combination of education and experience substantially equivalent to graduation from an accredited college or university with a bachelor's degree in public or business administration, finance, or a related fiel ; and four years of responsible administrative experience in ri k management or in the management, investigation and adjustment of insurance claims, including but not limited to workers' compensation, general liability, vehicular bodily injury and property damages. Howl gP~,~f: risk management and insurance principles, concepts and techniques; types and purposes of insurance poll ies and coverage; principles and practices of supervision and pr ram administration; familiarity with State and Federal safety law ; public relations; data collection, analysis and evaluation techniques to identify lose exposure. hp ;~;ry~o: administer a county wide risk management pr am; identify and resolve operating problems in risk management; collect, maintain, and analyze information; interpret, evalua e and explain laws, ordinances and regulations; write clear and concise reports for management analyses; prepare administrati e directives; plan, direct and control the work of others; main sin effective working relationships with County officials, insure ce company representatives, and the general public; communicate effectively, both orally and in writing. uPalth and Phveical Condition: Persons seeking appointment to positions in this class m st meet the health and physical condition standards deemed neces ary and proper for performance of the duties. Phvs~ca~ Effort GrouDina: Light O1/15/OJ 10:28 FAI 808 270 7878 CO IfAUI DEPT' OF h'1NANCE ~uu8 • i PART I DEPARTMENT OF PERSONNEL SERVICES 2592 STATE OF HAWAII . . Class Specification ~/-to7~ for the• Class: RISK MANAGEMENT OFFICER Duties Summary: Administers the statewide Aisk Management program; establishes and monitors a claims reporting and martagemenk information systems provides technical advice and assistance to other State departments; and performs other related duties as assigned, Distinguishing Characteristics; This one position class is located in the central State agency responsible for the statewide Risk Management program. The Risk Management program identifies and evaluates the State's exposures to property and liability loss to minimize the total risk management costs determines risks that should be self-insured and those that should be insured by an insurance compaAys develops, implements and maintains effective loss control programs coordinates the programs in other departments through departmental coordinators and develops guidelines„ procedures and criteria for claims management and adjusting services and a claims reporting artd information system. A position in this class administers and manages the statewide Risk Management program by formulating and implementing policies and procedures, managing risk managlement activities and coordinating and evaluating programs in the other State departments. The work involves the development, implementation, interpretation and evaluation of plans, policies and procedures concerning the operation and supervision of the Risk Management program. in addition, this class 'serves as the technical expert in risk management providing consultation services to - other departments. The position supervises the activities of the Risk Management staff. The work is performed under general supervision and within a broad framework of laws, [ales, regulations, administrative policies and overall departm@ntal goals and objectives. Considerable Latitude is allowed ~n the formulation and implementation of plans and detecminatio~h of priorities necessary to carry out the work. Further, ao~ltacts with other governmental and private agencies are extensive and may require effective working relationships in order to avoid adversely affecting the Risk Management program. _ 01!16/OJ 10:29 FAI 808 270 7878 CO IfAUI DEPT OF FINANCE ® 009 PART i Page 2 RISK MANAGEMENT OFFICER Examples of Duties: Oversees and directs identification and evaluation of state property and liability loss exposure activities: develops program procedures and criteria for evaluating the overall risk management operations of State departments and agencies] reviews and evaluates risk treatment, loss prevention and risk cost minimization techniques and determines impact on the Risk Management program; determines risks that should be self-insured and that should be insured by insurance companies; coordinates procurement activities including preparation of bid specification for primary and excess insurance coverages; determines the State self-retention limit; develops and administers a system of allocating self-retention Losses to departments and programs develops operating policies and procedures for the implementation and maintenance of an effective loss control program; establishes liaison with risk management coordinators in each department to carry out activities; provides technical assistance to all departments in evaluating programs and activities to minimize risk exposure; develops, implements and manages loss control reporting systems and procedures to collect, maintain and provide loss control information for analysis and to assist all departments in carrying. out loss control program objectives and activities; reviews and evaluates loss reports, oversees inspections and provides departments with alternatives and recommendations to eliminate or reduce losses; coordinates with other State departments involved in loss prevention and development of safety programs to establish new programs or enhance existing ones; reviews, implements and monitors toss prevention and safety recommendations made by insurance companies; establishes a centralized claims clearinghouse by developing guidelines, procedures and criteria for claims management and adjusting services; develops and administers a claims repotting and information system; coordinates with the Attorney General's OEfice in investigating claims and reported incidents; coordinates with Attorney General's Office and/or insurer claim settlements; establishes and maintains liaison with other State departments, other governmental jurisdictions and others - associated with risk management; coordinates risk management activities involving insurance representatives and other service providers; develops, implements, interprets and evaluates a risk management manual; develops and distributes the annual risk management report; keeps departmental risk management coordinators abreast of program developments and activities; conducts risk management seminars and training sessions; evaluates the performance of the Risk Management program; plans and implements program improvement activities; develops budget; determines organizational and staff ®olo 01/16/03 10:28 FAa 806 270 7878 CO 1fAUI pEPT OF FINANCE PART I Page 3 RISK MANAGEMENT OFFICER requirements; drafts legislation and administrative policy statements and directives to improve and enhance the program; supervises and provides direction and guidance to the risk management staff. Knowledges and Abilities Required: Knowled a of: Risk management and insurance principles, concepts an tec niques; types and purposes of insurance policies and coverage; principles and practices of supervision and program administration; public relations; data collection, analysis and evaluation techniques to identify loss exposure. Abilit to: Administer a statewide Risk Management program; 1 ent fy and resolve operating problems in risk management; interpret, evaluate and explain laws, ordinances and regulations; write clear and concise reports; plan, dicect and control the work of others; maintain effective working relationship with the operating personnel and the general public; communicate effectively, both orally and in writing. This is the first class specification for the new class RISK MANAGEMENT OFFICER. Effective Date: 1-1-86 DATE APPROVED: / ~ JAMS TAKUSBI rector of ersonnel Services _ O1/lb/OJ _10:29 FAb 806 270 78Tg CO IGUI DEPT OF FINANCE ~ 011 •w. a•F PART II Page 2 RI SR MANAGEMENT OFFICER Non-Oualifving Experience: Work experience acquired as an insurance salesman or agent, in loss prevention or safety,.which does not demonstrate a knowledge of risk management principles and applications including risk financing and loss control is not qualifying. Substitutions Allowed: Substitution of Professional Desi nation for S ecialized Exper ence: PosTsession of a Charte[e Property and Cnsualty Underwriter (CPCU) professional designation or an Associate in Risk Management (ARM) oc Associate in Loss Control Management (ACLM) designation obtained through written examination may be substituted for one-half (1/2) year of the required Specialized Experience. Substitution of Master's De ree for S ecialized Ex ~rience: Possession of a master s degree from an accred to co ege or unive[sity in risk management or insurance may be substituted for one (1) year of the required Specialized Experience. quality of Experience: Possession of the required number of years of experience will not in itself be accepted as proof of qualification for a position. The applicant's overall experience must have been of such scope and level of responsibility as to conclusively demonstrate that he/she has the ability to perform the duties of the position foz which he/she is being considezed. License Required: Possession of a valid license to drive in the State of Hawaii is required. Selective Certification: Specialized knowledges, skills and abilities may b.e required to perform the duties of some positions. In such positions, certification may be restricted to eligibles who possess the pertinent experience and/or training required to perform the duties of the position. .Agencies requesting selective certification must show the connection between the kind of training and/or experience on which they wish to base selective certification and the duties of the position to be filled. O1/15/O3 10:30 FAI 808 270 7878 CO MAUI DEFT OF FINANCE ~ 012 PART II Paqe 3 RISK MANAGEMBNT OFFICER Tests• Applicants must qualify on the appropriate examination for the class. For non-competitive actions, the examination may be waived. Physical and Medical Requirements: Applicants must be physically able to perform, efficiently and effectively, the essential duties of the position which typically require the ability to read without strain printed material the size of typewritten characters, glasses permitted, and the ability to hear the conversational voice, with or without a hearing aid, or the ability to compensate satisfactorily. Handicaps in these or other areas will not automatically result in disqualification. Those applicants who demonstrate that they are capable of performing the essential functions of the position will not be disqualified under this section. Any condition which would cause applicants to be a hazard to themselves or others is cause for disqualification. Any disqualification under this section will be made only after a review of all pertinent information including the results of the medical examination, and esquires the approval of the Director. Mental/Emotional Requirements: All applicants must possess emotional and mental stability appropriate to the job duties and responsibilities and working conditions. This is an amendment to the minimum qualification specification Eor the class RISR MANAGEMENT OFFICER approved on November 28, 1986, DATE APPROVED: ~ ~e ALFRED C. LARDIZABA hector of Pezsonnel Services ac.r-it-ao iu~. ~:~e P. 02 Risk Manager Department of Finance Identify and evaluate the pure risks present. Assist in the development and implcmentacion of risk management strategies. Design, purchase, and administer the county insurance program. Work with the management team to limit or contain potential losses by eliminating, redudng, transferring, or controlling hazardous exposures up front. 1. Workers' Compensation soz a) Plan, direct and coordinate the county's centcellzed workers' compensation program. (a,b,c) ti) Starve as the administrator of the C:ounty's workers' wmpensation program, overseeing two technical specialists, handling all workers' compensation and industrial safety/health matters. (a,b,c) c) Partteipate in the development of intermediate and lung range plans, and implements policies, procedures and methods consistent with provisions of workers' compensation and other laws. (a,b,c) d) Monitor, direct and paeficipate in the follow up or investigation of problem cases, questionable claims, and other cases. (a,b,c) e) Determine acceptance or denial Of liability on questionable cases. (a,b,c) f} Study laws, rules and rettulations pertaining to workers' compensation and effects changes to comply with new requirements. (a,b,c) g) Instruct and train employees in all aspects of workers' compensation case management aad serves as'immediate supervisor. (a,b,c) h) Facplain policies, practices, procedures and actions to employees, department officials, physicians, attorneys, union representatives, and other concerned individuals and parties. (a,b,c) A Represent the county in workers' compensation hearings and provides testimony as required. (a,b,e) j) In cor>junction with county attorneys, oversee and direct the development of subrogation and stipulated settlements involving workers' compensation cases. (a,b,c) k) Develop cost information and budget estimates for the workers' compensation program; draft correspondence and prepare periodic and special reports. (a,b,c) 2. Risk AnalY~ 20X a) evaluate risk exposures and methods of minimizing that exposure. (a,b,c) b) For existing programs, determine changes in risk exposure based on new case law and/or regulatory environment. (a,b,c) c) RCview lessees and vendors leaselservice/maintenance contracts and certificates for appropriate coverages and indemnification provisions. Set up and maintain computer monitoring of these certificates by name, expiration date, state, etc. (a,b,c) St:Y-lY-yb IUC I~dZ N. U1 ' Post-It"` brand fax transmittal memo 7671 ~o~v+a~ , F,'O~n ta 0. Risk Mw~ager PnoM Position Description °ev Page 2 ~ r.¦ r d) Prepare opcratlonal and risk reports for management analysis. (a,b,c) e) Develop information from the construction of the building, inventory of equipment, number of employees to the fmancial reports with list of officers and directArs. (a,b,c) f) Develop corrective action if a problem has been discovered. (a,b,c) g) Answer questions by the underwriter or engineering service. This Includes functioning as a technical intermediary. (a,b,e) h_) Recommend improvements for reports to company and improvements in conditions ter prvpe[ty as applicable. (a,b,c) n Manage insurance programs, such as fidelity, surety, liability, property, and workers' compensation risks. (a,b,c) j) Select and direct activities of safety, engineering and loss prevention experts. (a,b,c) 3. Insurance Protection lox a) Identify exposure to loss. (a,b,c) b) Determine which expustuxs are to be insured and those to be retained. (a,b,c) c) Determine insurable values of property and proper limits of coverage for third party loss exposures. Set up a risk management information system (RMIS) to maintain accurate exposure information (payroll, employee data, property values, vehicle costs, etc.): (a,b,c) d) Contact and t:oordinate with qualified insurers the placement of coverages. (a,b,c) e) Negotiate acceptable terms, conditions and pricing of all insurance polides. (a,b,c) , f) Preparrr financing and payment plans as needed. (a,b,c) g) Receive, check, and maintain insurance policies. (a,b,c) h) Aeview premium audits. Audit of policy terms and conditions before covcxagc is bound. Checking of policy delivered to verify that client received what was promised and paid for. (a,b,e) I) Recommend monetary amounts annually to be maintained in reserve to cover the county's various self-insured programs. Calculate insurance reserves. (a,b,c) j) Determine proper allocation of premium charges. (a,b,c) k) Monitor timing of and preparation of all applications and renewal forms. (a,b,c) 1) Authorize insurance fund payments for self-insured property. (a,b,c) 4. Claim Mana)rement rss a) Review all rru~jor claims, investigate major losses, and negotiate settlements. ~cr-ic-yo iuc i •aa Y. U3 Risk Manager Position Description Pace 3 (a,b,c) b) Coordinate with corporation counsel andlar outside counsel on pectin nt claims matters. (a,b,c) c)' Pstablish how uninsured or unbudgeted losses will affect present and uture financial Condition of the county. (a,b,c) d) Monitor reimbursement of claims. (a,b,c) e) Appoint claims, self-insurance administrators and investigators. (a, ,c) f) Manage and courclinate subuussiun of insurance claims. (a,b,c) 5. Safety and Iris Control loz n) Promote awareness of risk management through soveral communicad n vehicles: meetings, practical training, risk management manual, ere. a,b,c) b) Review physical safety and security ofpremises. (a,b,e) c) Disseminate intelligence and interpretation of possible insurance situa ons. (a,b,c) d) Recommend to director improvements in control policies to prevent 1 sses and/or reoccurrence. Evaluate overtime, cosWenefit of control pr ores. (a,b,c) e) Call inspections of shops, buildings, job sites, etc. to discover and co unsafe conditions nr practices to insure Compliance with accepted safe /health policies and regulations and to recommend mechanical or Structural vices t0 improve or correct unsafe conditions. (a,b,c) 6. Other specified duties sz a) Prepare the annual budget for the workers' compensation fund, pro and liability fund. (a,b,c) b) Anawet questions and provide information to the public; investigate c mplnints and recommend corrective action as necessary to resolve complaints. a,b,c) c) Participate in various committees and professional organizations such PRIMA (Public Risk Insurance Managers Association). (a,b,c) d) Perform other related duties as assigned. (a,b,c) Essential tasks are identified as follows: a) The performance of this function is the reason that the job exists. b) The number of other empIOyees availablC to perform this function is ]i red. c) This function is highly specialized and employee is hired for special a 'se or ability to perform this function.