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Committee presses city to improve risk-management reporting, consider insurance review
Summary
A Civil Grand Jury report criticized weak accountability in the city—s risk-management and self-insurance approach; city officials agreed in principle and outlined phased steps including loss-run reporting, a staff needs assessment and a consultant review if funds are identified.
The committee heard a Civil Grand Jury report asserting the city's risk-management system lacks adequate accountability for claims and general-fund costs, and that outside pressures common in the private sector (insurers, outside counsel) are absent in the city's self-insurance model.
Patricia Knight, foreperson of the grand jury, said the jury's core concern is "the lack of accountability for the use of general funds for the errors and accidents of the city," and recommended evaluating self-insurance versus commercial insurance, strengthening the office of risk management, and ensuring departments are held accountable for risks they incur.
Linda Young, associate city administrator responding for the Mayor, said the city generally agrees and will pursue several steps: work with the City Attorney's Office to produce loss-run reports, complete a staff-and-needs assessment within 3 to 6 months, and consider hiring a consultant to review the self-insurance program when funds are identified. The risk manager confirmed legacy systems limit current loss-run reporting but committed to work with the City Attorney to improve data output.
The Board asked the Controller's Office whether claims paid by department can be reported during budget deliberations; Controller staff said claims are recorded in a separate chart sub-object and can be reported at budget time. The committee edited its resolution to respond to required recommendations and will forward the amended resolution to the full Board.
