RISK MANAGEMNT TRUST BOARD ORIENTATION PACKET.DOCX

Risk Management Trust Board
2026
Chris Hansen, Risk Manager
Christopher_Hansen@tempe.gov

Open Meeting Law Training Video & Acknowledgment Form 
Welcome to your role as a City of Tempe Board or Commission member. As part of your 
orientation, you are encouraged to review the Open Meeting Law training video prepared by 
the City Attorney’s Office. This video provides valuable guidance on Open Meeting Law 
requirements and best practices that will support you in your service.
You may watch the video on your own or during a scheduled Board or Commission meeting if it 
is included as an agenda item.
Figure 1 Open Meeting Law 
Training video 
Figure 2 Link Embedded
Figure 2 Open Meeting Law 
Confirmation Form 
Figure 3 Link Embedded
After you have reviewed the training video, please complete the attached Open Meeting Law 
Training Video Confirmation Form within fourteen (14) days. The video link and confirmation 
form are also available on the City’s website under the Board and Commission Member 
Resources page.
The confirmation form is a fillable PDF and may be submitted in either of the following ways: 

Electronically signed and emailed to clerk@tempe.gov, or

Printed, signed by hand, and submitted in person or by mail to:
City Clerk’s Office
Tempe City Hall, Second Floor
31 East 5th Street
Tempe, AZ 85281
Although reviewing the video is not a formal requirement, it is strongly recommended to help 
ensure you feel prepared and confident in meeting Open Meeting Law obligations. If you have 
any questions or need assistance, please contact the City Clerk’s Office at 480-350-8947 or 
email kara_dearrastia@tempe.gov. 
Thank you for your commitment to serving the Tempe community.

Risk Management Trust Board
Executive Summary
PURPOSE
The Risk Management Trust Board meets at least once a year and makes recommendations 
thereafter to the City Council, through the City Manager, regarding the investment and 
administration of the Risk Management Trust Fund.
The Trust Fund is to provide for the payment of benefits, losses, and claims as set forth 
in Arizona Revised Statutes § 11-981(A), which include legal defense costs, administrative costs, 
claims adjusting costs, losses (including those related to workers’ compensation, personal injury 
or property damage), reserves for anticipated losses and lawsuits, insurance costs (including 
premiums), external audit, and other expenses related to the operation of the City’s self-
insurance program. 
DESCRIPTION
The Risk Management Trust Board is composed of one member of City Council, the Chief 
Financial Officer or designee, and three joint members.  At the time of initial appointment, the 
City Council designates the length of terms to provide for staggered terms.  The City Council 
and Chief Financial Officer positions on the Board are not subject to term limits. 
Risk Management is responsible for the processing of property/liability claims against the City 
as well as worker's compensation claims. Risk Management is also responsible for employee 
safety and industrial hygiene.

Strategic Priorities 
The Risk Management Trust Boards goals are established through adopted 
performance measures which are aligned with the City's strategic priorities. 
These strategies provide the objectives for achieving the "target" goal for each 
performance measure.
5. Financial Stability and Vitality
Maintaining long-term financial stability and vitality by focusing on 
economic development, business retention and generating employment 
to create a robust and diverse economic base. 
Key Information/Statistics 
PERFORMANCE MEASURES:
5.17 TOTAL COST OF RISK
The City’s Total Cost of Risk (TCOR) is a City-wide measure of the City’s risk 
management performance comprised of the total cost incurred for risk 
management activities including the costs of annual insurance premiums, 
claim losses paid within the City’s self-insured retentions, administrative costs and expenses.

Performance Measure: Achieve a rate that is less than or equal to 1.22% for Total Cost of 
Risk as benchmarked by the Risk Management Society.

Baseline: 1.84%

Target: 1.22% annually, by fiscal year

Status: 1.3%
Current Strategies:
1. Provide professional development and continuing education for City staff regarding 
risk management and loss prevention measures.
2. Disseminate claim reports with departments, enabling them to make well-informed 
decisions regarding program resources and future initiatives aimed at enhancing loss 
prevention efforts.
3. Continue judicious claims management practices while utilizing technology and claims 
software to streamline the claims process, track costs, and identify opportunities for 
cost reduction.
4. Continue to utilize risk financing, risk reduction, risk transfer and risk retention 
strategies to protect against losses that would negatively impact City assets and 
financial standing.
Figure 4 Performance 
Measure 5.17 Total Cost of 
Risk

City Organizational Chart
Risk Management Organizational Chart 
Risk Management
Christopher Hansen,
Risk Mgmt Mgr
Nicole Gonzalez,
Worker 
Compensation Prog 
Spec
Nic Hernandez,
Risk Management 
Spec
David McAllister,
Claims Adjuster
Ray Hagen, 
Safety & Training 
Coord
Manuel Padilla,
Safety & Training 
Coord
Chantz Tieman,
Safety & Training 
Coord

Contracted Agent/Broker - Insurance Policies
Alliant Insurance Services Inc., is a full-service insurance brokerage and risk consulting firm in 
the Phoenix Metropolitan Area located within 10.2 miles of the City of Tempe’s Risk 
Management Offices with the ability, resources, and desire to create a long-term brokerage and 
service relationship with the City of Tempe, AZ. Alliant has grown to become one of the leading 
public entity and municipalities brokers due to a culture emphasizing customer service, 
entrepreneurial spirit, and creativity for this industry.
Alliant’s experience extends to working with a network of over 2,000 cities, several thousand 
special districts, over 100 joint power authorities, over 200 hospitals, several state governments 
and some of the nation’s largest transit agencies and school districts. As one the largest public 
entity insurance brokerage firms in the United States, Alliant understands the unique exposures 
faced by organizations such as yours on a daily basis. We also appreciate there are inherent 
risks associated with being a growing city and the specialization required to develop a Property 
and Casualty program that effectively mitigates these exposures. Because of our extensive 
knowledge and experience with your types of exposures, as well as Alliant’s dedication to 
providing outside-the-box solutions, our team of city risk specialists are uniquely qualified to 
exceed your scope of work. 
Contact Information
Alliant’s local service office 
address 
2415 East Camelback Road, 
Suite 950, Phoenix, AZ 85016
Pamela L. Dominguez
First Vice President
Public Entity
CA License No. 0E36754
T: 925.303.8725
E: pdominguez@alliant.com
Shawn M. Kraatz
Alliant Specialty
License No. 
0C36861/OC54349
T: 949.660.8117
E: shawn.kraatz@alliant.com
25-26 Policy Type
Insurance Carrier
Amount
Property
Travelers Indemnity Company
$
524,650.00
Inland Marine – Dam & Mill Avenue 
Bridges
Chubb
$
165,566.86
Auto Physical Damage
Lexington Insurance Company
$
63,591.84
Commercial General Liability – Primary 
Layer ($2M x SIR's) - General Liability
Safety National Casualty Corp
$
531,151.00
Excess Liability – Layer 2 ($3M x $2M x 
SIR's) - Included
Upland Specialty Insurance Company
$
392,529.46
Excess Liability – Layer 3 ($5M x $10M x 
SIR's)
Vanatage Risk Specialty Insurance 
Company (Aurenity)
$
310,508.16
Excess Liability – Layer 4 ($5M x $15M x 
SIR's)
Obsidian Insurance Company
$
232,200.00

Excess Liability – Layer 5 ($5M x $20M x 
SIR's)
Arch Specialty Insurance Company
$
233,232.00
Excess Liability – Layer 6 ($5M x $25M x 
SIR's)
Great American Assurance Co
$
192,500.00
Workers Compensation
Safety National Casualty Corp
$
617,462.00
Foreign Package
Ace American Insurance Company
$
2,500.00
Pollution Policy
Ironshore Specialty Insurance
$
42,430.18
Cyber
Houston Casualty Company
$
112,402.44
Fiduciary – 1st Layer
Hudson Insurance Company
$
31,472.00
Fiduciary – 2nd Layer
RLI Insurance Company
$
17,100.00
Aviation/Drones
Global Aerospace
$
9,974.00
Crime
National Union Fire Ins. Co.
$
9,999.00
Total Premiums$
3,489,268.94
General Liability - Subtotal$
1,892,120.62
All Other - Subtotal$
1,597,148.32

Tempe City Charter
CHAPTER 2, ARTICLE VII RISK MANAGEMENT, DIVISION 1 - RISK MANAGEMENT TRUST 
BOARD
ARTICLE VII. RISK MANAGEMENT
DIVISION 1. RISK MANAGEMENT TRUST BOARD
Sec. 2-501. Definitions.
For the purposes of this division, the following words and phrases shall have the meanings 
respectively ascribed to them by this section: 
Board means the Risk Management Trust Board. 
Claim means any insured claim or SIR claim. 
Claim cost means any internal or external cost or expense incurred by the City in response to any claim against the City, 
including, but not limited to, claim adjustment costs, contractual services costs, legal defense costs and attorneys' fees awarded 
against the City. 
Insured claim means any claim falling within the coverage provisions of any insurance policy insuring the City. 
Risk management cost means any internal or external cost associated with the purchase and maintenance of any commercial 
property insurance policy, workers' compensation policy or liability insurance policy or bond for, or on behalf of, the City, 
including consulting, brokerage and actuarial fees; and all other internal and external costs, fees and expenses incurred in 
connection with loss prevention and the management of the risk management trust fund. 
Risk management program means the City's system of a combination of insurance and direct payments to pay for benefits, 
losses or claims. 
SIR means self-insured retention. 
SIR claim means any demand for direct payment of costs, including health, accident, life and disability benefits, a legal action 
and counter demand or counterclaim for payment of any property loss sustained or lawful claim of liability or fortuitous loss 
made against the City, covered corporations, covered City entities or covered individuals. The following types of claims are 
specifically excluded from the definition of SIR claim: (i) any claim alleging damages relating to employee benefits or salary; or 
(ii) or any insured claim. 
SIR costs shall mean any claim cost arising from an SIR claim. 
Trust fund means the risk management trust fund established by the City for the purpose of paying benefits, claims, claim costs, 
SIR costs and risk management costs. 
(Ord. No. 2012.47, 10-18-12)
Sec. 2-502. Trust fund—Established.
There is hereby established the risk management trust fund. The City Manager is directed to segregate all funds previously and 
hereinafter budgeted for trust fund purposes as described in this article and to maintain the trust fund separate and apart from 
the City general fund. 
(Ord. No. 2012.47, 10-18-12)
Figure 5 Tempe City Code 
Municode

Sec. 2-503. Trust fund—Purpose.
(a)
The purpose of the trust fund is to provide for the payment of benefits, losses and claims as set forth in A.R.S. § 11-
981(A) which shall include legal defense costs, administrative costs, claims adjusting costs, losses (including those related to 
workers' compensation, personal injury or property damage), reserves for anticipated losses and lawsuits, insurance costs 
(including premiums), external audit and other expenses related to the operation of the City's self-insurance program. Each 
year, the City Council, upon recommendation from the City Manager in consultation with the board, will determine the amount 
deemed appropriate for these purposes. 
(b)
Such trust fund shall be funded as part of the annual budgetary and appropriation process of the City in such amounts 
as to provide sufficient monies to pay all reasonable anticipated claim costs and risk management costs for which the City will 
be responsible in the ensuing fiscal year. 
(Ord. No. 2012.47, 10-18-12)
Sec. 2-504. Designation of risk management consultant.
(a)
Pursuant to A.R.S. § 11-981(B)(1), the City shall designate a risk management consultant ("Risk Manager"). 
(b)
Under A.R.S. § 20-283(B)(7), the Risk Manager is exempt from licensing requirements in Title 20. 
(c)
The authority granted to the City under A.R.S. § 11-981 is not subject to Title 20, except that any health, life, accident 
or disability benefit plan shall conform to the benefits required by Title 20. 
(Ord. No. 2012.47, 10-18-12)
Sec. 2-505. Administration of trust—Creation of Risk Management Trust Board.
(a)
Members. The trust shall be administered by one member of City Council, the chief financial officer or Designee and 
three (3) joint members. The members shall serve in an advisory capacity at the sole pleasure of the City Council. A majority of 
the members shall constitute a quorum for the purpose of conducting business of the board. At the time of initial appointment, 
the City Council shall designate the length of terms to provide for staggered terms. The City Council and Chief Financial Officer 
postions on the board shall not be subject to term limits. The resignation, incompetency, death or termination of any or all of 
the members shall not terminate the trust fund or affect its continuity. During a vacancy, the remaining members may exercise 
the power of the members hereunder. Vacancies among the members shall be filled by appointment by the City Council for the 
remainder of the vacant term. 
(b)
Duties. The board shall meet at least once a year and shall make recommendations thereafter to the City Council, 
through the City Manager, regarding the investment and administration of the trust. The board shall submit an annual report to 
the City Council through the City Manager relating to the status of the trust fund and making other recommendations that the 
board deems necessary and appropriate. The Risk Manager shall coordinate the activities of the board and assist in the 
facilitation and administration of the trust fund in whatever manner is appropriate and necessary. 
(c)
Bonding requirements. The members shall be bonded in the same manner and procedure as for City employees. 
(d)
Stop loss provision. Pursuant to the self-insurance provisions of the City risk management program, only a certain 
portion of risk exposure will be self-imposed. Levels of self-insured retention for each particular type of a risk shall be 
recommended by City staff and established and approved by the City Council. 
(e)
Annual audit. An annual audit shall be performed by an external auditor and a copy of the report shall be kept on file 
in the office of the City Clerk for a period of not less than five (5) years. The Risk Manager shall coordinate this audit. 
(f)
Expenditures from trust fund. There shall be no expenditures from the trust fund for any purpose not specified in 
A.R.S. § 11-981 or this article.

(Ord. No. 2012.47, 10-18-12; Ord. No. O2021.06, § 1, 2-11-21)
Sec. 2-506. Trust fund not subject to budget law.
Expenditures during the fiscal year from the trust fund and money in the trust fund at the close of the fiscal year shall not be 
subject to the provisions of A.R.S. Tit. 42, Ch. 17, Art. 3. 
(Ord. No. 2012.47, 10-18-12)
Sec. 2-507. Lapse of trust fund.
In the event the trust fund is no longer used by the City for the purposes stated in this article and in A.R.S. § 11-981, the fund 
shall revert during that fiscal year to the general fund. 
(Ord. No. 2012.47, 10-18-12)
Sec. 2-508. Insurance.
(a)
The City Manager, or his designee, is authorized to enter into, on behalf of the City, any appropriate insurance and 
surety bonding contracts to provide such risk insurance as he determines to be in the City's best interests. 
(b)
Per A.R.S. § 11-981(F), the City is not authorized to purchase insurance from any insurer not authorized by the 
Director of the Department of Insurance. 
(Ord. No. 2012.47, 10-18-12)
Secs. 2-509—2-524. Reserved.
DIVISION 2. CLAIMS AND DEMANDS AGAINST CITY1
1Charter reference(s)—Claims or demands against City, § 5.03.

Sec. 2-525. Presentation of claims.
All claims against the City shall be presented as required by Arizona law. 
(Ord. No. 2012.47, 10-18-12)
Sec. 2-526. Manner of approval or disapproval of claims.
(a)
All claims other than for damages shall be approved, negotiated or rejected by the City Manager or his designee. 
(b)
All claims for damages shall be approved, negotiated or rejected by the Risk Manager where the amount thereof or 
the negotiated amount of payment does not exceed the sum of twenty-five thousand dollars ($25,000.00). Any claims payment 
for damages twenty-five thousand one dollars ($25,001.00) or greater but less than fifty thousand dollars ($50,000.00) shall be 
approved, negotiated or rejected by the Risk Manager with the approval of the City Attorney's Office. Any claims payment for 
damages fifty thousand dollars ($50,000.00) or greater but less than seventy-five thousand dollars ($75,000.00) shall be 
approved, negotiated or rejected by the Risk Manager upon approval of the Claims Committee which shall consist of the Risk 
Manager, a member of the City Attorney's Office and the Internal Services Director or their designees and the department 
director representing the department to which the claim is being allocated. Any claims payment of seventy-five thousand one 
dollars ($75,001.00) or greater shall require the approval of the City Council. 
(Ord. No. 2012.47, 10-18-12; Ord. No. O2016.22, 4-14-16)
Sec. 2-527. Claims management procedures.
(a)
The Risk Manager shall cause all claims to be processed in a timely manner by initiating the prompt investigation, 
evaluation, settlement or rejection of all claims in accordance with City claims management standards. 
(b)
The Risk Manager shall identify and pursue recoveries for the City from all available sources. If litigation is needed to 
effect recovery, the Risk Manager shall evaluate potential recovery against the legal costs and make the appropriate 
determination as to whether or not to initiate the recovery process. 
(Ord. No. 2012.47, 10-18-12)
Sec. 2-528. Report to City Council.
The City Manager shall advise the City Council of all claims and demands paid, together with the name of the vendors or 
payees, dates paid and amounts. 
(Ord. No. 2012.47, 10-18-12)
Secs. 2-529—2-534. Reserved.

RISK MANAGEMENT TRUST BOARD | 2026
Resolution