CITY OF GROVER BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 5
Placement: Business
Meeting Date: October 13, 2026
TO: Honorable Mayor and City Council
FROM: Matthew Bronson, City Manager
PREPARED BY: Nick Szamet, Administrative Services Director SUBJECT: 2026 Risk Management Program Report
RECOMMENDATION
Receive an update on the City’s Risk Management Program and the role of the California Joint Powers Insurance Authority.
BACKGROUND
At the July 28, 2026 Council meeting, the Council requested to receive a presentation on the City’s Risk Management Program and the City’s role with the California Joint Powers Insurance Authority (CJPIA). The City’s Risk Management Program includes policies, programs, insurance, and pooled coverages to minimize the City’s risk exposures from a variety of insurance claims including employee injuries, third-party liability claims, or property loss. These Risk Management services are provided by CJPIA, which is a Joint Powers Authority serving more than 125 local agencies and governed by elected officials from member agencies. CJPIA has provided these services for over 45 years and provides pool coverage for Liability, Workers' Compensation, and Property Insurance claims. In addition, CJPIA works closely with the City to review and develop the City's Risk Management Program with the goal of mitigating any risk exposure to the City as well as implementing cost-controls.
On a day-to-day basis, CJPIA acts as the City's agent in claims processing and litigation and provides the City with regulatory safety training to meet Occupational Safety and Health Administration (OSHA) requirements as well as best practice and development training. In addition to this direct support and coordination with the City, CJPIA evaluates trends in claims exposure across the pool and develops programs for its members.
Overview of Risk Management Programs
The City’s Risk Management Program includes identifying, evaluating, and addressing loss exposures through various mitigation and preventive services. The program’s areas focus on addressing exposures related to Workers’ Compensation, General Liability, Property, Cyber, and Special Events which are described further on the following page:
Staff Report: 2026 Risk Management Report Page 2
October 13, 2026
Workers’ Compensation
This program is designed toward ensuring employee safety and reducing employee injury through proactive activities including:
• Safety Policies and Programs,
• Staff training as required by OSHA to improve safe work practices, • Regularly scheduled workplace safety and risk assessments and safety meetings, • Prompt reporting of all workplace injuries that include documented investigations and root cause analysis,
• Working with the CJPIA and Athens Administrators for claims administration and case management
General Liability Program
This program includes identifying areas of risk exposure for the City and developing or maintaining programs that will minimize or mitigate liability exposure. General liability is any claim against the City, including, but not limited to, vehicle accidents, trip-and-falls, sewage backup, and errors and omissions. CJPIA works with Athens Administrators for liability claims administration and case management.
Property Program
This program focuses on managing risks associated with the City’s real property, including buildings, automobiles, equipment, and related infrastructure in the City’s care. CJPIA works with Sedgwick Claims Management Services for property claims administration and case management.
Cyber Program
This program focuses on managing risk associated with Cyber Crime, Network Security, and Privacy Incidents. CJPIA works with the Great American Insurance Company for cybercrime claims administration and case management. In addition, CJPIA contracts with the Trident Group to provide cyber-related risk management resources.
Risk Assessment/LossCAP Program
To minimize the City's risk exposure, CJPIA conducts regular risk assessments of City operations and services approximately every three to five years. This program reviews and makes recommendations for corrections to:
• City policies and programs,
• Contractual language and insurance requirements,
• Public facilities including sidewalks, streets, parks, and buildings, and • Training programs and procedures.
The City’s assessments also include a regular review of claims by the Administrative Services Director, acting as the City’s Risk Manager, along with the City Attorney to learn from and identify areas for correction to prevent future exposures.
Staff Report: 2026 Risk Management Report Page 3
October 13, 2026
Reporting and Claims History
The City’s cost of coverage with the CJPIA is primarily based on the City’s payroll and loss experience. CJPIA provides the City with claims status reports on the City's General Liability and Workers' Compensation claims. The overview reports summarize the claims history over a fiveyear period, the category or cause of the claim, cost centers, and a comparison to other agencies of a comparable size. The five-year claims history is used in calculating the City's premiums.
The City's claims are reviewed by the Risk Manager, City Manager, and City Attorney, to learn from and identify areas for correction to prevent future exposure.
Workers’ Compensation
The City averages 14.5 workers’ compensation claims per year, primarily driven by the Police Department which accounts for 93% of total claims incurred. The leading causes of injuries are sprains/strains and staff works with Athens Administrators to manage open claims and assist employees in returning to work. While the City’s cost of claims is above the pool average, this is primarily driven by the number of law enforcement claims as Police Department employees are nearly half of the City’s workforce. The highest cost years were $694,800 in FY 2021-22 followed by $447,900 in FY 2024-25.
General Liability Program
The City averages approximately 5.5 liability claims annually with six claims in FY 2024-25 and four in FY 2025-26. The Public Works and Police departments account for most third-party claims given the nature of the services and operations of these departments. Over the past seven years, the City’s average claim severity has remained significantly below the pool average except in FY 2024-25, when three claims resulted in total incurred costs of $1,460,634. It is important to note that incurred amounts do not necessarily lead to settlement of the same magnitude, but funds are reserved to encompass the limits of the exposure. However, based on claims history, the City performs better than the pool averages across all major claim-cause categories.
FISCAL IMPACT
There are no funding impacts to this staff report. CJPIA’s total premium amounts to the City are $1,184,454 for FY 2026-27 across general liability, property insurance, and worker’s compensation which are included in the City’s operating budget.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Multi-Year Goals
☐ Public Safety and Community Services ☐ Economic Development and Housing ☐ Community Infrastructure ☒ Financial and Organization Sustainability Council Priorities
☐ Water & Wastewater Infrastructure ☐ Community Engagement ☐ Street Improvements and Maintenance