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<br />tive officer for
<br />Montgomery
<br />County, Md.
<br />Romer began
<br />his public serv- -
<br />ice career 32 years ago and has served
<br />as city manager for Rockville, Md.;
<br />Davenport, Iowa; Sidney, Ohio; and
<br />Brighton, Mich.
<br />"Traditionally, there was always a
<br />dividing line between policy and
<br />administration; the elected officials
<br />did all the policy work, and the
<br />appointed administrator did all the
<br />administration, and you'd better not
<br />cross that line," Romer says. "That's
<br />changed. I find myself being expected
<br />to make policy recommendations in
<br />addition to handling the administra-
<br />tive requirements."
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<br />"I think many managers were
<br />involved in policy (in the past), but,
<br />in the last 20 years, it's become fully
<br />legitimate," says Norman King, execu-
<br />tive director for the San Bernardino
<br />(Calif.) Associated Governments and
<br />former city manager for the California
<br />cities of Claremont, Palm Springs and
<br />Moreno Valley. "Council members
<br />likely come from different back-
<br />grounds - business or homemaking
<br />or whatever - and the manager has
<br />the ability to layout different options
<br />and articulate, the pros and cons of
<br />various positions. Obviously, that will
<br />involve making a recommendation."
<br />In addition to becoming recognized
<br />partners in policy-making, managers
<br />are working to engage citizen involve-
<br />ment in planning and problem-
<br />
<br />CITY/Cm NT'r MAN.\G'\IENT
<br />
<br />solving. "The manager's role has
<br />evolved into [one of] consensus build-
<br />ing," King says. "He spends a lot of
<br />time dealing with council members,
<br />commissioners, businessmen, commu-
<br />nity associations and neighborhood
<br />associations. It is much more of an
<br />external role than used to be the
<br />
<br />"
<br />case.
<br />That certainly is true in Fairfax
<br />County, Va., where County Executive
<br />Robert O'Neill recently spent a day
<br />meeting with various community
<br />groups. At one gathering, he met with
<br />neighborhood residents to discuss a
<br />revitalization plan; at another, he met
<br />with a group of not-far-profit entities
<br />and county agencies to discuss a set of
<br />progralns focusing on health care for
<br />children from low~income families;
<br />
<br />GoverI11Tlents<..gain.by ..retairting......risk\manage:rs
<br />
<br />T.oday, every doUaLa public entity pays for insurance
<br />buys far more coverage than it did just a few years
<br />ago. In such an environment, some county and city man~
<br />agersmay question the nee:J mretain a risk manager on
<br />staff. After all, they reason, a risk manager's key responsi-
<br />bility is to review bids and buy insurance, which is not a
<br />difficult task whenpricesare low.
<br />In fact, risk managers. bear responSibilities beyond bid
<br />review and selection. Recognizing that insurnnce premi-
<br />ums represent onlya portion of a public entity's cost of
<br />risk, many local governments. are. emphasizing claims
<br />management and loss prevention.. Risk managers are ele-
<br />mental to the success of those.' efforts because, managed
<br />effectively, risk management programs can save more
<br />money than they cost.
<br />For most communities, those savings can be quite sub-
<br />stantial. For example:
<br />· In Anaheim, Calif., Risk Manager Thomas Vance
<br />created and implemented al.s~point, citywide "safety
<br />action plan" that reduced the city's disabling injury rate
<br />by 76 percent and cut temporary disability pay costs by
<br />61 percent over a 13-year period;
<br />· In Orem, Urah, Risk Manager Sue Stewart institut-
<br />ed loss control and risk management programs that
<br />resulted in a nearly 50 percent reduction in workers'
<br />compensation costs over a six-year period; and
<br />· In St. Paul, Minn., Risk and Employee Benefits
<br />Manager Ron Guilfoile negotiated contribution caps on
<br />
<br />28
<br />
<br />October 1998
<br />
<br />retiree benefits, retlucing the' city's unfunded liabilitieS'
<br />by 65 percent.
<br />Aldloughriskmanagement often. isassoeiatedwith
<br />medical.risks,Iocalgovemments face a growingmJmber
<br />of potentially costly risks outside the health arena. Fa;
<br />example, there are risks related to government deregula-
<br />tion and devolution,. environmental. regulations, pension
<br />plans andthehurgeoning field of employmentpr.1ctices
<br />claims litigation.
<br />As the field .. of public. risk has .evolved,<so..hav~the
<br />re>>1Jorusibilities of the risk manager. Todays risk manager.
<br />not only has to assess the types of riskand theirP<'tential
<br />effect on local entities, but he . also must have a sophisti-
<br />cated knowledge of risk financing. He must understand
<br />portfolio management, loss portfolio transfer and finite
<br />risk insurance, and he must combine the coverage and
<br />funding alternatives.to best conserve the public entity's
<br />limited revenues.
<br />Local governments seeking to curtail or eliminate risk
<br />managers because of a soft insurance market are over-
<br />looking the benefits of aggressively pursuing risk man-
<br />agement programs. A risk manager offers the expertise
<br />and leadership to take full advantage of loss prevention
<br />methods, claims management and financing vehicles. *
<br />
<br />This article was written b-y Steve Haynes, a director af
<br />pub-lic risk management for Coregis Insurance, ChicagO'. He
<br />alsO' is a former risk manager for Lewisville , Texas.
<br />
<br />AMERICAN CITY & COUNTY
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