PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.A
Meeting Date: February 6, 2024
TITLE:
Risk Management Annual Report
RECOMMENDATION:
Receive the 2023 Risk Management Annual Report as information.
BACKGROUND:
The City of Pismo Beach Risk Management Program includes policies, programs, insurance, and risk pool coverage to minimize the City’s risk exposures from employee injury claims, third-party liability claims, or property loss.
The California Joint Powers Insurance Authority (CJPIA) is the City's provider of Risk Management Services. Their services include the coverage for Liability, Workers' Compensation, and Property Insurance claims. In addition, CJPIA works closely with the City's Risk Manager to review and develop the City's Risk Management programs and policies toward the goal of controlling costs and risk exposure to the City. 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.
The City’s Three Major Risk Management Programs
The City’s Risk Management Program focuses on identifying, evaluating, and addressing loss exposures through various mitigation and preventive services. The program’s areas of focus include addressing exposures related to Workers’ Compensation, General Liability, Property, Cyber, and Special Events.
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 includes documented investigations and root cause analysis
Quarterly City Safety Steering Committee Meetings to review injuries and safety training requirements and progress, and site safety inspections. Working with the California JPIA and Athens Administrators for claims administration and case management.
12.A-1Council Agenda 2-6-2024
General Liability Program
This program includes identifying the 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.
Property Program
This program focuses on managing risk associated with city’s real and personal property, including buildings, automobiles, equipment, and related infrastructure in the city’s care.
Cyber Program
This program focuses on managing risk associated with Cyber Crime, Network Security, and Privacy Incidents.
Risk Assessment/LossCAP Program
With the goal of minimizing the City's risk exposure, CJPIA conducts regular Risk Assessments approximately every three years. This program both reviews and makes recommendations for corrections to:
City policies and programs
Contractual language and insurance requirements
Public Facilities including sidewalks, streets, parks, and buildings Training programs and procedures
The City’s assessments also include a regular review of claims by the city’s Risk Manager and City Attorney, in an effort to learn from and identify areas for correction to prevent future exposures.
Reporting and Claims History
The City’s cost of coverage with the California JPIA 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 five-year 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 City's Risk Manager, Safety Steering Committee, and City Attorney, in an effort to learn from and identify areas for correction to prevent future exposure.
Annual Report
The City Council’s continued commitment to Risk Management supports staff efforts to update programs and infrastructure, which will continue to reduce or mitigate the City’s liability in claims and litigation.
12.A-2Council Agenda 2-6-2024
1. Workers’ Compensation: The total number of workers’ compensation claims in the policy year 2022/2023 was 18, with 11 closed and 7 currently open and being managed with the assistance of Athens Administrators. The highest-frequency claim was strains and contusions, with an overall average severity of $26,000. The City’s cost of claims is lower than the pool average.
a. As a continued measure of commitment to public service, the City Council granted the City Manager authority to over hire up to three additional sworn peace officer positions to compensate for the vacancies created by several long-term claims.
The City has been successful in recruiting top talent to aid in police safety services to meet the needs of the community. Human Resources has been working with Athens Administrators to resolve long-term claims efficiently.
2. General Liability Program: The City had 15 total liability claims for the policy year. The claims incurred an average severity of $12,377, including what is reserved but not yet paid. City staff and CJPIA continue to manage and defend the City to limit its exposure.
In law enforcement-related claims, the City’s claims, as measured by cost per $100 in payroll, is consistent with the risk pool. The cost of claims for the Pismo Beach Police Department is 76% lower than the risk pool’s Police Departments overall.
FISCAL IMPACT:
There is no fiscal impact associated with receiving this report.
ATTACHMENTS:
None.
Submitted by:
Bianka Buchanan, Human Resources Officer
City Manager Approval:
12.A-3Council Agenda 2-6-2024