PISMO BEACH CITY COUNCIL STAF REPOR
Agenda Item #12.A
Meetin Date: Februar 17, 2026
TITLE:
2025 Risk Management Annual Report
RECOMMENDATION:
No action recommended; for information only.
DISCUSSION:
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. Services provided 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 with the goal of mitigating any risk exposure to the City and implementing cost controlling techniques.
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 focus on 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 include documented investigations and root cause analysis
Quarterly City Risk Management Committee Meetings to review injuries and safety training requirements and progress, and site safety inspections, and Council Agenda 2-17-2026 12.A-1
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 encompasses any claim against the City including but not limited to vehicle accidents; slip, trip, and falls; sewage backup; and errors and omissions.
Historically the City has worked with Carl Warren & Company for general liability claims administration and case management. Effective January 1, 2026, JPIA transitioned liability claim administration to Athens Administrators. To assist with continuity of services and minimize disruption, JPIA also was able to secure the transition of Carl Warren personnel to Athens Administrators.
The City already works with Athens Administrators for Workers’ Compensation claim administration, and this existing relationship is expected to support a seamless transition and continued consistency in claims handling and risk management services.
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 directly with the Great American Insurance Company for Cyber Crime claims administration and case management. In addition, CPIA contracts with the Triden Group to provide cyber-related risk management resources.
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 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 City’s Risk Manager and City Attorney, to learn from and identify areas for correction to prevent future exposure.
Council Agenda 2-17-2026 12.A-2
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 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, Risk Management Committee, and City Attorney, 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.
1. Workers’ Compensation: The total number of Workers’ Compensation claims in the policy year 2024/2025 was 17, with 8 being record only (non-medical), 5 medical, and 4 currently open and being managed with the assistance of Athens Administrators. The City saw a 90% reduction on Workers’ Compensation Claims costs from 2024 to 2025.
2. General Liability Program: The City had 15 total liability claims for the program year 2024/2025, of which ten (10) closed immediately with zero dollars paid, and five (5) were managed collaboratively. 70% of the claims received are related to streets, roads, and related public infrastructure. City staff and CJPIA continue to manage and defend the City to limit its exposure.
The City’s average claim severity is better than pool averages for most causation categories.
50% of all liability claims costs are due to one claim, currently holding a large reserve.
The City continues to leverage California JPIA services to support organizational risk management and compliance, including training, ergonomics, public safety mental health resources, sidewalk deviation management, and policy development. The ADA Assistance Program continues to make measurable progress. Accessibility evaluations for facilities, parks, and trails are approximately 60 percent complete, while sidewalk assessments are 95 percent complete. Policy and procedure reviews remain ongoing, and public input is currently being incorporated, with the public comment window scheduled to close in late February.
FISCAL IMPACT:
There is no fiscal impact associated with receiving this report.
Council Agenda 2-17-2026 12.A-3
ATTACHMENTS:
None.
Prepared by:
Bianka Buchanan, Human Resources Officer
City Manager Approval:
Council Agenda 2-17-2026 12.A-4