City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00390 3/25/2025 Discussion Item 19.
Fiscal Year 2023/24 Risk Management Annual Report
File ID: 2025-00390
Location: Citywide
Recommendation: Receive and file.
Contact: Patrick Flaherty, Risk Manager, (916) 808-8587; Renita Nelson, Administrative Analyst, (916) 808-3543; Department of Human Resources
Presenter: Patrick Flaherty, Risk Manager, (916) 808-8587, Department of Human Resources; Kevin Bibler, Senior Vice President, Alliant Specialty; Rick Brush, Chief Member Services Officer, PRISM Attachments:
1-Description/Analysis
2-FY2024 Risk Management Annual Report
Description/Analysis
Issue Detail: The Risk Management Division of the Human Resources Department is responsible for administering the City’s Risk Management program. The Fiscal Year (FY) 2023/24 Risk Management Annual Report is designed to provide the City Council and City Management with an overview of risk management programs for the fiscal year.
The intent of this report is to provide City leadership and managers with exposure and loss information so effective loss prevention activities can be implemented to eliminate or reduce these losses in the future. The report contains summaries of workers’ compensation, general liability, and automobile liability losses by fiscal year. Environmental Health and Safety activities and types of insurance purchased, including insurance limits and premiums, are also included. Significant risk management related activities are also summarized.
Policy Considerations: Annual reporting of the City’s Risk Management activities provides the City Council with performance data to evaluate the effectiveness of the City’s investment in risk management activities.
Economic Impacts: None.
File ID: 2025-00390 3/25/2025 Discussion Item 19.
Environmental Considerations: Under the California Environmental Quality Act (CEQA) guidelines, continuing administrative activities do not constitute a project and are therefore exempt from review.
Sustainability: None.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Department of Human Resources, Risk Management Division is responsible for administering and reporting risk management related activity. Provision of this information is important in planning necessary mitigation programs to reduce risk and associated costs in the future.
Financial Considerations: Property insurance costs increased dramatically due to catastrophic weather-related events nationwide and fire and windstorm events in California. The City has experienced two fire claims, and three windstorm claims in recent years contributing to a premium increase of over $2.3 million from FY2022/23 to FY2023/24. The City’s excess liability insurance policies have also been increasing due to increases in both the frequency and severity of high-dollar liability claims in California public entities. During the last four years there has been a dramatic increase in the median value of claims in the risk pool the City participates in. There have also been numerous recent public entity claim outcomes exceeding $30 million. This has resulted in excess liability premiums increases of over $1 million in each of the last five years. The City has also recently experienced several large liability settlements. These increased costs have resulted in the City having to dramatically increase the amount set aside each year in the Risk Fund to pay claims.
The City has a self-insured retention of $2 million for workers’ compensation claims and $2 million for liability claims (with an additional $2 million loss corridor). This results in a few large claims having a significant effect on the Risk Fund. As the cost for claims and insurance increases, the annual contributions to the Risk Fund from the General and Other funds are also increasing. Budgeted contributions to the Risk Fund for the current fiscal year are below. The Golf Fund is included in the General Fund. The contributions below include the total operating costs of the Risk Management Division, including liability and workers’ compensation claims, insurance, payment to vendors for contracted services, personnel expenses and other operational support.
Auto
General Fund 8,911,882
Other Funds 2,973,118
Total $11,885,000
General Liability
File ID: 2025-00390 3/25/2025 Discussion Item 19.
General Fund 33,437,321
Other Funds 6,982,679
Total $40,420,000
Workers’ Compensation
General Fund 15,489,094
Other Funds 2,673,906
Total $18,163,000
Total Contributions
General Fund 57,838,297
Other Funds 12,629,703
Total $70,468,000
Local Business Enterprise (LBE): Not applicable.
Page i
DIVISION OF RISK MANAGEMENT
FISCAL YEAR ENDING JUNE 30, 2024
2024
ANNUAL REPORT
Page ii
TABLE OF CONTENTS
Executive Summary ................................................................................................................ 1 Risk Management Mission Statement ................................................................................... 2 Risk Management Vision Statement ...................................................................................... 3 Risk Management Division ..................................................................................................... 3 Risk Management Organizational Chart ................................................................................ 3 Risk Management Budget ...................................................................................................... 4 Insurance Premiums .............................................................................................................. 4 Liability .............................................................................................................................. 4 Workers’ Compensation ................................................................................................... 5 Property............................................................................................................................. 5 Other Insurance ................................................................................................................ 6 Actuarial Report ..................................................................................................................... 8 Fiscal Year 2024 Results ......................................................................................................... 9 Workers’ Compensation ................................................................................................... 9 Liability .............................................................................................................................. 15 Environmental Health and Safety (EH&S) ........................................................................ 23 Subrogation ....................................................................................................................... 31 Fiscal Year 2025 Action Plan .................................................................................................. 31
Risk Management Annual Report FY2024
EXECUTIVE SUMMARY
The Risk Management Division of the Human Resources Department is pleased to present this Risk Management Annual Report for Fiscal Year 2024.
This report provides the City Council and management with an overview of Risk Management programs. This report is designed to provide City leadership and managers with information regarding departmental exposure s and loss es with the intent of implementing effective loss prevention activities to eliminat e or reduc e future losses . The report contains summaries of workers’ compensation, general liability, and automobile liability losses by fiscal year, as well as insurance and excess insurance limits and premiums. Environmental Health and Safety programs are also summarized including training, consultation, and environmental compliance activities.
Significant Risk Management-related accomplishments are also summarized.
The Risk Management Internal Service Fund provides risk financing, risk transfer, environmental health and safety (EH&S) services, and administrative support services for workers’ compensation, general liability, and auto mobile liability programs. The fund charges all fund participants for program costs based on actuarial estimates of the amounts needed to pay the ultimate cost of claims and operational costs for the Risk Management Division. The FY2024 budget is $ 60,339,000, an increase of 10 percent from the prior year’s budget of $ 54,702,000.
Total insurance premium costs increased 23 percent or $3,267,992 in FY2024, from $14,206,110 in FY2023 to $17,474,102 in FY2024. The primary increase in insurance premiums was the result of property insurance premiums increasing 62 percent, or $2,329,705, from $3,773,692 in FY2023 to $6,103,397 in FY2024. Property insurance rates are increasing dramatically due to industry - wide property losses as the number of catastrophic weather-related events continues to increase in the U.S., creating the hardest property insurance market in a generation. Catastrophic claims from hurricanes, winter storms , and wildfires throughout the United States are adversely affecting insurance capacity and premiums. Excess liability insurance premiums increased 13 percent, or $ 1,126,097, from $ 8,715,521 in FY2023 to $ 9,841,618 in FY2024. The increase is driven by a deteriorating liability insurance market for public entities resulting from a dramatic increase in both the frequency and severity of high -dollar liability claims in recent years .
Additionally, adverse loss development in the City’s claims contributed to the increase in excess liability premiums. Dangerous conditions of public property, police liability , and sexual molestation claims remain a concern with liability underwriters nationwide. Excess workers’ compensation insurance premiums unexpectedly de creased 17 percent, or $ 245,334, from $1,434,130 in FY2023 to $1,188,796 in FY2024. The premium de crease is primarily driven by a program restructuring by our excess workers’ compensation carrier.
Workers’ compensation claims decreased from 550 to 512 in FY2024. Strains continue to be the most common type of injury leading to workers' compensation claims. To address this, the City continues to offer a range of training programs aimed at reducing these injuries, including Stretch and Flex programs, ergonomic practices, safe lifting techniques, body mechanics education, and proper posture recommendations. The firm that provides actuarial services for the City's Risk Management Division supplied Workers’ Compensation benchmarking data, with claims capped Risk Management Annual Report FY2024
at $100,000 to prevent a few large claims from distorting the results. In comparison of nine similar-sized California cities, the City is performing better than most of the other cities in the benchmark group with the frequency rate 18% lower than the average and the severity rate, or cost of claims, 13 % lower than the average. The City’s lower injury and severity rates are indicative of effective workplace safety programs and efficient claims management.
The number of general liability claims has been stable in recent years but spiked significantly in FY2023 due to an influx of claims related to the January wind and rain event s. The number of claims dropped in FY2024 to an estimated lowest level in recent years. The estimated ultimate cost of general liability claims varies dramatically by year as one or two large claims can have a significant effect on the results . Dangerous conditions of public property and police liability claims continue to be the most common type of costly claims . Risk Management and the City’s third-party claims administrator, Sedgwick , continue to communicate with City departments to proactively manage open and potential claims to help minimize these costs.
The number of automobile liability claims has been slowly increasing over the last four years with a spike in FY2019 and a decrease in claims in FY2020. The City is expanding training programs and raising awareness of the cost of vehicle accidents to counteract this long -term trend. City personnel, including police and fire, complete most of their driver training requirements at the Emergency Vehicle Operation Center at Mather Airport. Additionally, driver training is provided through online modules and the Smith System defensive driver training program for non -safety personnel. Automobile liability costs have been increasing in recent years due to a few large accidents. Costs are projected to decrease in FY2024.
General and auto liability benchmarking information, with claims capped at $100,000 to avoid a few claims skewing the results, was provided by the firm that provides actuarial services for the City’s Risk Management Division. In comparison of nine similar-sized California cities, the City of Sacramento’s frequency rate was 16% below average. The cost per claim, or severity rate, was 38% below the average.
The City’s EH&S activities are focused on preventing accidents before they occur and concentrate on the following areas: training, vehicle safety, consultation, environmental compliance, support services, employee recognition, and special projects.
RISK MANAGEMENT MISSION STATEMENT
Risk Management staff protect City employees and assets by providing exceptional customer service through effective EH&S efforts , claims administration, and risk financing. Our commitment enhances safety and livability for the citizens and employees of the City of Sacramento.
Risk Management Annual Report FY2024
RISK MANAGEMENT VISION STATEMENT
The Risk Management Division will be integrated into the City’s business practices and considered a valued and respected partner.
RISK MANAGEMENT DIVISION
The Risk Management Division consists of three operational units: EH&S , Workers’ Compensation, and Risk Administration . The units are detailed in the organization al chart below. Responsibility for the Risk Management Internal Service Fund (Risk Fund), which provides risk financing and support services related to the workers’ compensation and general and automobile liability programs, is an important function of the Risk Management Division. All City Departments are Risk Fund participants and are charged program costs based on actuarial estimates of the amounts required to pay the ultimate cost of workers’ compensation and liability claims that occur in that fiscal year as well as the operational costs of the Risk Management Division.
Figure 1: Risk Management Organizational Chart
Risk Management Annual Report FY2024
RISK MANAGEMENT BUDGET
The Risk Management budget increased by $5,637,000 or ten percent, from $ 54,702,000 in FY2023 to $60,339,000 in FY2024. This is a 10% increase from last year. The primary reason for the increase is rising liability and property insurance costs.
INSURANCE PREMIUMS
The City of Sacramento has an agreement with Alliant Insurance Services (Alliant) to provide insurance brokerage services such as marketing , soliciting quotations, and placing insurance policies. Total insurance premium costs increased 23% in FY2024, from $14,206,110 in FY2023 to $17,474,102 in FY2024. The increase in premiums was driven largely by increases in excess liability and property premiums, which are discussed in detail below.
Claim settlement amounts within retention levels are paid by the Risk Fund. Settlement amounts for covered losses more than retention levels are paid by the excess insurer(s) up to the coverage limits.
LIABILITY
The City of Sacramento purchases excess liability insurance to protect the City from catastrophic incidents. Excess liability insurance includes coverage for the following risks: general, automobile, employment practices, and errors and omissions. All coverage is on an occurrence basis. Excess liability limits were increased from $35,000,000 in FY2022 to $40,000,000 in FY2023 to keep up with rising liability settlements . The City’s self-insured retention remains at $2,000,000 with an additional $2,000,000 corridor retention aggregate. The $2,000,000 corridor retention aggregate is in excess of the $2,000,000 self-insured retention.
Risk Management Annual Report FY2024
Excess liability insurance premiums increased 13 percent, or $ 1,126,097, from $ 8,715,521 in FY2023 to $9,841,618 in FY2024. The increase is driven by a deteriorating liability insurance market for public entities due to dramatic increases in both the frequency and severity of high- dollar liability claims. During the last three years there has been a significant increase in the median value of claims in the risk pool the City participates in. The annual growth rate for claim costs in the last decade has been 11%. There have also been numerous recent public entity claim outcomes that have exceeded 30 million dollars. Additionally, there are now fewer reinsurers willing to write public entity business, reducing the available capacity in the insurance market.
Dangerous conditions of public property, police liability, and sexual molestation claims remain a concern with liability underwriters nationwide. The City has also experienced adverse loss development in our general liability claims and recently settled several large claims which included payouts by the excess lia bility carriers. The City continues to obtain excess liability insurance for a reasonable premium through Public Risk Innovation, Solutions, and Management (PRISM), formally known as the California State Association of Counties Excess Insurance Authority (CSAC EIA) . The PRISM program is one of the largest pools in the nation, providing services to 95 percent of the counties and 70 percent of the cities in California, with revenues of $1.9B. PRISM members take advantage of their large size to obtain high-quality insurance products at a reasonable cost. Municipalities throughout California and the nation experienced large increases in excess liability premiums in FY2024.
WORKERS’ COMPENSATION
The City purchases excess workers’ compensation insurance to protect against catastrophic injury to City employees and accidents involving multiple employees. Excess workers’ compensation limits remained at statutory coverage for FY2024 with a self-insured retention of $2,000,000. Statutory coverage provides payment of claims up to the amount required by law, without limits.
Excess workers’ compensation insurance premiums unexpectedly de creased 17 percent, or $245,334, from $ 1,434,130 in FY2023 to $1,188,796 in FY2024. The premium decrease is primarily driven by a program restructuring by our excess workers’ compensation carrier. Excess workers’ compensation insurance is purchased through PRISM, which uses pool purchasing power to achieve broad coverage for reasonable rates. The program has a $ 5,000,000 pooled limit and statutory reinsurance coverage for each accident.
PROPERTY
Property insurance is purchased to protect City buildings and assets from damage or loss caused by covered perils such as fire, theft, wind, and flood. Cyber liability and pollution coverage are included in our property insurance program. Property insurance is currently purchased through the Alliant Property Insurance Program ( APIP). APIP was formed in 1993 to meet the property insurance needs faced by public entities and is currently one of the largest property insurance placements in the world with over 10,000 covered entities in 45 states . APIP is a joint purchase program, and there is no risk of assessments. Because of APIP’s large size, members receive low Risk Management Annual Report FY2024
premiums with the best possible coverage terms. The total insurable property values for the City for FY2024 are $2,746,199,637, higher than the FY2023 value of $2,530,776,562. Property insurance premiums increased 62 percent, or $ 2,329,705, from $ 3,773,692 in FY2023 to $6,103,397 in FY2024. The property policy deductible is $100,000 with coverage limits of $1,000,000,000. Coverage limits are shared with other APIP members in different geographical areas to reduce the risk of one large property loss affecting a high percentage of members.
Earthquake insurance is not purchased due to the high cost and limited coverage. Property rates are increasing at an alarming rate due to industry-wide property losses as the number of catastrophic weather-related events continues to increase in the U.S ., creating the hardest property insurance market in a generation. Hurricanes and winter storms throughout the United States and wildfires are adversely affecting insurance capacity and premiums. U ncertainty over wildfire and windstorm claims in California continues to be of concern to underwriters.
Additionally, three windstorm claims and two costly fire claims were recently reported to our property insurer . These claims , along with an increase in the City’s property values have contributed to the large increase in property insurance costs.
OTHER INSURANCE
The City purchased the following additional insurance in FY2024:
• Fine arts insurance with limits of $175,000,000 – an increase of $25,000,000 from the prior year due to advantageous pricing. Coverage is provided for art throughout the City, including the Crocker Art Museum, Sacramento History Museum, Golden One Center, and The Center for Sacramento History.
• Aircraft insurance with limits of $2 5,000,000 and a irport liability insurance with limits of $5,000,000 . Coverage is provided for the C ity’s small plane and three helicopters.
• Crime insurance with limits of $1 5,000,000. Coverage is provided for employees and third-party theft, forgery, and other crime-related losses. • Pollution legal liability insurance with limits of $10,000,000 and underground storage tank liability insurance with limits of $1,000,000. • Special events insurance for City Council events and small events at community centers with limits of $1,000,000.
Risk Management Annual Report FY2024
Table 1 , Schedule of Insurance summarizes coverage, self -insured retentions, limits, premiums, and insurance carriers for three years and provides a total cost of insurance by year at the bottom of the table.
Table 1
Fiscal Year Self Insured Retention P olicy Limits Premium Carrier FY24 2,000,000* 40,000,000 9,841,618 PRISM
FY23 2,000,000* 35,000,000 8,715,521 PRISM
FY22 2,000,000* 35,000,000 7,567,613 PRISM
Total 26,124,752
FY24 2,000,000 Statutory 1,188,796 PRISM
FY23 2,000,000 Statutory 1,434,130 PRISM
FY22 2,000,000 Statutory 1,194,515 PRISM
Total 3,817,441
FY24 100,000 1,000,000,000 6,103,397 APIP
FY23 100,000 1,000,000,000 3,773,692 APIP
FY22 100,000 1,000,000,000 2,814,214 APIP
Total 12,691,303
FY24 1,000 175,000,000 116,078 Ironshore Indemnity
FY23 1,000 150,000,000 96,806 Ironshore Indemnity
FY22 1,000 150,000,000 86,456 Ironshore Indemnity
Total 299,340
FY24 Vari es 25,000,000 52,735 Star Indemnity
FY23 Vari es 25,000,000 52,735 Star Indemnity
FY22 Vari es 25,000,000 60,939 Star Indemnity
Total 166,409
FY24 171,478
FY23 133,226
FY22 123,066
Total 427,770
FY24 17,474,102
FY23 14,206,110
FY22 11,846,803
Total 43,527,015
*Additional corridor retention of $2,000,000 for all years Aircraft
Other Insurance
Total Insurance
includes pollution, crime, special events, airport, and UST
SCHEDULE OF INSURANCE
Excess Liability
Workers' Compensation
Property
Fine Arts
Risk Management Annual Report FY2024
Figure 2 shows the cost breakdown by the various types of insurance purchased in FY2024 with a total cost of $17,474,102.
Figure 2
ACTUARIAL REPORT
An actuarial report is prepared each fiscal year for the City of Sacramento’s self-insured workers’ compensation and general and automobile liability pro grams by a professional actuarial firm experienced in self-insured public entity program analysis. The actuarial report provides two key pieces of information: the amount to budget for claim costs and expenses that will occur in the coming fiscal year, and the program’s liability for outstanding claims. Outstanding claims represent the ultimate value of losses less any amounts already paid. The City utilizes an 80 percent confidence level (an estimate for which there is an 80 percent chance that the budgeted amount will be sufficient to pay loss costs). The actuarial results for the last two years are provided in Table 2. The budgeted amount for workers’ compensation claims in creased by $987,000 in FY2024 and the amount budgeted for general and automobile liability claims increased by $2,431,000, resulting in a net increase of $3,418,000. The estimated outstanding liability for all claims increased 6% or $7,319,000 in FY2024 to $136,035,000. The increases in the workers’ compensation and liability claims budget line s and outstanding liability resulted from greater development in claim reserves, increasing the estimated ultimate value of these claims.
Excess Liability
$9,841,618
56%Workers'
Compensation
$1,188,796
7%
Property
$6,103,397
35%
Fine Arts
$116,078
0.8%
Aircraft
$52,735
0.6%
Other Insurance
$171,478
0.6%
FY24 Insurance Premiums ($17,474,102)
Risk Management Annual Report FY2024
Table 2
FISCAL YEAR 2024 RESULTS
WORKERS’ COMPENSATION
The City of Sacramento has been self -insured for workers' compensation claims for City employees and volunteers injured on the job since 1981. The City also self -administers its workers' compensation claims, which ensures a superior level of service, as opposed to outsourcing to an external contractor. This process facilitates streamlined communication among different departments, fostering an interactive process that expedites the return of injured employees to work promptly and minimizes the overall cost of claims.
Accomplishments
• In FY 2024, the Workers Compensation Unit managed 1,224 reports including Exposures, First Aids, Incidents, Future Medical Care, Indemnity and Medical Only claims, of which 512 were active claims requiring benefits. The 512 new claims denote an approximate 7% decrease from the previous fiscal year. • Each year, the Workers Compensation Unit aims to meet a productivity level of a 100% ratio of open to closed claims. In FY2024, the Unit achieved a closing ratio of 109%.
COMPARISON AT 80% CONFIDENCE LEVEL OF OUTSTANDING LOSSES As of June 30, 2023 As of June 30, 2024
Difference
Between FY
2023-24
WORKERS’ COMPENSATION
Estimated Liability
for Outstanding
Claims $53,782,000
Estimated Liability
for Outstanding
Claims $58,517,000 $4,735,000
Estimated Ultimate
Cost of Claims $12,243,000
Estimated
Ultimate Cost of
Claims $13,230,000 $987,000
GENERAL AND AUTO LIABILITY
Estimated Liability
for Outstanding
Claims $74,934,000
Estimated Liability
for Outstanding
Claims $77,518,000 $2,584,000
Estimated Ultimate
Cost of Claims $19,382,000
Estimated
Ultimate Cost of
Claims $21,813,000 $2,431,000
TOTALS
Total Estimated
Liability for
Outstanding Claims
$128,716,000
Total Estimated
Liability for
Outstanding
Claims $136,035,000 $7,319,000
Total Estimated
Ultimate Cost of
Claims
$31,625,000
Total Estimated
Ultimate Cost of
Claims
$35,043,000
$3,418,000
Risk Management Annual Report FY2024
• Settling workers' compensation claims continued to be a primary focus for the Workers’ Compensation Unit. Resolving claims led to several benefits for both the City and employees, depending on the specific circumstances. The finalized workers' compensation claims provided both parties with a s ense of closure, provided financial certainty, established control over medical treatment, reduced lengthy and costly litigation, and ensured compliance with applicable laws. In FY 2024, there was an 11% increase in the total number of settled claims, resulting in a total of 157 claims resolved by way of Stipulation or Compromise and Release.
• T he Workers Compensation Unit works diligently to recover funds through subrogation by identifying third parties responsible for causing workers' compensation injuries. In FY2024, the City successfully recovered $61,365.
• The City employs a range of strategies for implementing cost- containment measures aimed at managing the expenses associated with Workers' Compensation medical treatment. These include Medical Bill Review, a Pharmacy Benefit Management Program (PBM), Utilization Review, and Nurse Case Management.
o The customized medical bill review program, equipped with cutting -edge software and a comprehensive methodology, achieved a notable 68% savings in FY2024. The total net savings amounted to $10,684,658.36.
o The Pharmacy Benefit Management Program (PBM) effectively managed drug formularies and optimized pharmacy costs. This program oversaw drug types and prescription frequency, ensuring appropriateness for industrial injuries.
California's workers' compensation drug formulary further aids in cost control, notifying doctors of prescription patterns that indicate excessive use or duplicative therapies. Doctors are notified when prescribing patterns meet criteria that indicate excessive use of prescription drugs and/or duplicative therapies.
o The City continued to utilize a rigorous review and standardization process for managing medical treatment known as Utilization Review. Utilization Review was used as a pivotal tool to evaluate the suitability and medical necessity of services, procedures, and facilities based on evidence -based criteria and guidelines, aligning with the California Medical Treatment Utilization Schedule (MTUS). For FY2024, the utilization review process generated net savings of $705,001. This included the evaluation of appr oximately 1,600 medication requests for medical treatments or prescriptions, ensuring that the treatments were both timely and appropriate.
o The case management program continued to deploy Nurse Case Managers on catastrophic, complex medical cases. This program created seamless efficient communication for the provider, the injured employee, and the claims adjuster.
This added service provided triage immediately after an injury, expedited Risk Management Annual Report FY2024
medical treatment and durable medical equipment, as well as managed medical costs.
• In FY2024, the Workers' Compensation Unit participated in the Annual Risk Assessment meetings with each department to review workers' compensation claim data and offered analysis to support safety and injury prevention initiatives.
• The Workers’ Compensation Unit staff regularly collaborated with departments to fulfill and manage the return -to-work initiatives for injured employees. These programs ensured a smooth transition for employees back into the workforce. For those with permanent residuals, the Workers Compensation Unit facilitated the Interactive Process with Leave Administration, the Department, and the injured employee.
Workers’ Compensation Results
The following data is derived from the most recent actuarial report which was completed in September 2024. This information is based on data valued as of June 30, 2024.
The data in Figure 3 shows the total estimated cost of workers’ compensation claims , not including injury on duty time, for the past ten years.
Figure 3
$5,774,000
$7,399,000 $7,949,000
$6,592,000
$12,721,000
$7,519,000
$11,858,000 $12,099,000
$12,190,000
$11,110,000
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Ultimate Cost
Fiscal Year
Workers' Compensation Total Ultimate Cost
Risk Management Annual Report FY2024
The loss rate per $100 of payroll (losses/(payroll/$100)) for the last ten years is illustrated in Figure 4. The data in Figure 4 limits claim values to $100,000 per occurrence to provide more stable trending information and avoid skewing of the data due to a large loss. The loss rate decreased in FY2024.
Figure 4
Figure 5 shows the estimated ultimate number of workers’ compensation claims for the last ten years. The number of claims decreased in FY2024 and spiked in FY2022 due to COVID.
Figure 5
1.35 1.53
1.63 1.02
1.65 1.18
1.28 1.48
1.21 1.13
0.00 0.20
0.40 0.60
0.80 1.00
1.20 1.40
1.60 1.80
2.00 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Loss Rate
Fiscal Year
Loss Rate per $100 of Payroll
505
560 574
514
530
517
537
747
550
512
500
525
550
575
600
625
650
675
700
725
750
775
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Number of Claims
Fiscal Year
Ultimate Workers' Compensation Claims
Risk Management Annual Report FY2024
The number of claims reported per $1 million of payroll (# of claims/(payroll/$1,000,000)) for the last ten years is illustrated in Figure 6. The graphical spike increase in FY2022 was driven by a surge in COVID-19 related claims.
Figure 6
The causes of loss for workers’ compensation claims are depicted in Figure 7. Strain injuries continue to be the most common type of injury. EH&S staff has implemented the Savvy F.I.T. 4 Work program to provide training specific to job functions designed to reduce these types of injuries.
Figure 7
1.61 1.70 1.70
1.39 1.46
1.34 1.31
1.74 1.17
1.08 0.00
0.20 0.40
0.60 0.80
1.00 1.20
1.40 1.60
1.80 2.00
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Claims/Payroll (millions)
Fiscal Year
Number of Claims Reported
per $1 Million of Payroll
Assault
3%
Burn/Scald
1%
Caught In/Between
1% Cut/Puncture/Scrape
7%
Exposure
1%
Fall/Slip/Trip
8%
Misc
16%
Motor Vehicle
4%
Pandemic
8%
Strain By
45%
Strike Against
2%
Struck By
4%
Causes of Loss FY15 - FY24
Risk Management Annual Report FY2024
Injury on duty (IOD) hours are illustrated in Figure 8. IOD hours are work hours recorded for injured employees who are unable to work because of an industrial injury.
Figure 8
Figure 9 shows the percentage of workers’ compensation claims filed in the last ten years broken down by Police, Fire, and all other City Departments.
Figure 9
53,238
73,916
67,532
60,361
72,623
68,471
93,580
109,653
102,551
87,185
0 20,000
40,000
60,000
80,000
100,000
120,000
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Injury on Duty Hours
Fiscal Year
Injury on Duty Hours
Police
30%
Fire
35%
All Other Depts
35%
Percentage of Workers' Compensation Claims
by Department
FY15 - FY24
Risk Management Annual Report FY2024
Figure 10 shows the percentage of costs paid for workers’ compensation claims in the last ten years broken down by Police, Fire, and all other City Departments. Fire and Police departments account for 65% of workers' compensation claims due to the high-risk nature of their work, which includes physical dangers and mental stress. Firefighters are exposed to dangers such as toxic smoke and intense heat, while police officers encounter violent confrontations and traumatic events. In California, these First Responders are covered by Labor Code Section 3212, which creates presumptions of industrial injury for conditions such as cancer, heart disease, and PTSD, entitling them to receive certain Workers ' Compensation benefits. These presumptions significantly increase the number of approved claims and the associated costs. In contrast, other city departments, with lower risk profiles, account for just 35% of the total claim costs.
Figure 10
Benchmarking
Workers’ compensation b enchmarking informatio n was provided by the firm that provides actuarial services for the City’ s Risk Management Division. Claims are capped at $100,000 to avoid a few large losses skewing results. In comparison to nine similar-sized California cities the City of Sacramento’s frequency rate was 18% below the average. The average cost per claim, or severity rate, for workers’ compensation claims was 13% below the average. These percentages indicate that the City experiences fewer workers’ compensation claims on average and incurs lower costs for those claims that do occur.
LIABILITY
The City of Sacramento utilizes Sedgwick , a third-party claims administrator, to handle liability claims filed against the City. Litigation is handled primarily in-house by the Sacramento City Attorney’s Office, which in FY2024 resolved 129 cases while receiving 155 new cases. Claims are broken down into two categories: automobile and general liability.
Police
$26,350,095
33%
Fire
$31,749,117
39%
All Other Depts
$22,206,411
28%
Percentage of Workers' Compensation
Claim Costs by Department
FY15 - FY24
Risk Management Annual Report FY2024
Accomplishments
• Sedgwick, the City’s third-party liability claims administrator, opened 592 claims and closed 589 claims.
• Sedgwick represented the City of Sacramento at Small Claims Court seven times with only one adverse verdict.
• Sedgwick scored 99% on the bi -annual audit from our excess liability insurance provider with no audit recommendations.
• Monthly meetings were conducted with the City Attorney’s Office, Risk Management, and Sedgwick to review existing and potential litigation. • Meetings between Department staff and Risk Management were conducted to review open and potential liability claims.
• Risk Management, the City Attorney’s Office , and Sedgwick partnered to streamline the claims process by improving claim reporting and file document transfers.
General Liability Results
The following data is presented from the most recent actuarial report which was completed in September 2024. This information is based on data valued as of June 30, 2024.
The ultimate cost of general liability claims for the last ten years is estimated in Figure 1 1.
General liability claims include all claims except automobile accidents, which are summarized later in this report. General liability claims costs vary dramatically from year to year as one or two large claims can skew the results.
Figure 11
$3,507,000
$3,245,000
$8,471,000
$9,432,000
$5,789,000
$14,406,000
$10,627,000
$7,229,000
$9,082,000
$11,172,000
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Cost of Claims
Fiscal Year
Ultimate Cost ($82,960,000)
of General Liability Claims
Risk Management Annual Report FY2024
The general liability loss rate (ultimate losses/(composite exposure which consists of population, budget, payroll, police payroll, and FTEs/$100)) is depicted in Figure 1 2. Losses are capped at $100,000 to avoid the skewing of results from a few large claims. The general liability loss rate decreased slightly in FY2024.
Figure 12
Figure 13 shows the number of liability claims reported for the last ten years. The number of claims reported has been stable over the last 10 years but spiked in FY2023 due to the large rain and windstorm events which resulted in many storm-related claims being reported.
Figure 13
0.41 0.30
0.57 0.52 0.59
0.56 0.53
0.43 0.56
0.55 0.00
0.10 0.20
0.30 0.40
0.50 0.60
0.70 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Loss Rate
Fiscal Year
General Liability Loss Rate
408
435 440 407 444 404 406 399
540
387
0 100
200
300
400
500
600
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Number of Claims
Fiscal Year
Number of General Liability Claims
Risk Management Annual Report FY2024
The claims frequency (# of claims/composite exposure which consists of population, budget, payroll, police payroll, and FTEs/$1,000,000) rate is illustrated in Figure 14. The rate has been decreasing in recent years but spiked in FY2023 due to storm-related claims mentioned in the previous graph.
Figure 14
Figure 15 shows the percentage of general liability claims filed against the City during the last five years, broken down by Police, Fire, and all other City Departments.
Figure 15
0.97 1.00 1.04
0.91 1.00
0.89 0.84 0.81
1.06 0.75
0.00 0.20
0.40 0.60
0.80 1.00
1.20 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Claims per Composite Exposure
Fiscal Year
General Liability Claims Frequency
Police
20%
Fire
2%
All Other Depts
78%
Percentage of General Liability
Claims by Department
FY20 - FY24
Risk Management Annual Report FY2024
Figure 16 shows the percentage of costs paid by the City for general liability claims in the last five years, broken down by Police, Fire, and all other City Departments.
Figure 16
Automobile Liability Results
The ultimate cost of auto mobile liability claims for the last ten years is estimated in Figure 17.
Costs have been slowly increasing over the last seven years with a projected drop in costs in FY2024. The City is expanding training programs, providing detailed loss information to City Departments, and raising awareness of the cost of vehicle accidents to counteract this long-term trend.
Police
44%
Fire
14%
All Other Depts
42%
Percentage of General Liability
Claim Costs by Department
FY20 - FY24
Risk Management Annual Report FY2024
Figure 17
The loss rate (ultimate limited losses (composite exposure consisting of the number of police vehicles, which have a higher loss rate, and the number of other vehicles/$100)) is depicted in Figure 18. Claims are capped at $100,000 to avoid the skewing of losses from a few large claims.
The rate has trended higher over the previous nine years with a projected drop in FY2024.
Figure 18
$522,000 $710,000 $1,090,000
$1,098,000
$5,174,000
$1,866,000
$3,731,000
$4,866,000
$6,063,000
$3,267,000
$-
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Cost of Claims
Fiscal Year
Total Cost ($28,387,000)
of Auto Liability Claims
210
240
312
445
571
426
497
564 570
485
0 100
200
300
400
500
600
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Loss Rate
Fiscal Year
Auto Liability Loss Rate
Risk Management Annual Report FY2024
Figure 19 shows the number of auto liability claims filed against the City during the last ten years.
The number of claims has been steady in recent years but showed a significant increase in FY2019 and a decrease in FY2020. The number of claims has increased slightly in the last four years.
Figure 19
The claims frequency rate (# of claims/(composite exposure consisting of the number of police vehicles, which have a higher loss rate, and the number of other vehicles/1,000,000) is illustrated in Figure 20. The claims frequency rate has been steady for the last three years.
Figure 20
122 118 117 126
145
106
131
137 138 140
0 20
40 60
80 100
120
140
160
180
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Number of Claims
Fiscal Year
Number of Auto Liability Claims (1280)
0.048 0.046 0.046 0.048
0.055
0.041
0.057 0.057 0.058 0.058
0.000
0.010
0.020
0.030
0.040
0.050
0.060
0.070
0.080
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24
Claims Frequency
Fiscal Year
Auto Liability Claims Frequency
Risk Management Annual Report FY2024
Figure 21 shows the percentage of auto liability claims filed against the C ity during the last five years, broken down by Police, Fire, and all other City Departments.
Figure 21
Figure 22 shows the percentage of costs by the City for auto liability claims in the last five years, broken down by Police, Fire, and all other City Departments.
Figure 22
Police
34%
Fire
11%
All Other Depts
55%
Percentage of Auto Liability
Claims by Department
FY20 - FY24
Police
41%
Fire
6%
All Other Depts
53%
Percentage of Auto Liability
Claim Costs by Department
FY20 - FY24
Risk Management Annual Report FY2024
Benchmarking
General and auto liability b enchmarking information was provided by the firm that provides actuarial services for the City’ s Risk Management Division. Claims are capped at $100,000 to avoid a few large losses skewing results. In comparison to nine similar-sized cities the City of Sacramento’s frequency rate was 16% lower than the average. The average cost per claim, or severity rate, was 38% below the average. The City’s commitment to quickly handle and address liability issues along with the success of the City Attorney’s Office in defending the City in litigation has helped drive these positive results. Additional cost savings are achieved by handling most of the City’s litigation in-house.
ENVIRONMENTAL HEALTH AND SAFETY (EH&S)
The primary goals for EH&S are to reduce the number and severity of injuries and illnesses to assure employee safety and minimize claim costs. Each City department has assigned Environmental Health and Safety Specialist s to consult with on workplace health , safety, and environmental issues and to assist with monitoring regulatory compliance . FY2024 EH&S activities included the following:
Risk Management Annual Report FY2024
Training
Effective training programs are an important component in reducing losses. EH&S staff conducted the following training courses in FY2024:
• Certified 426 City employees in CPR/First Aid.
• Certified 93 employees as forklift operators.
• Certified 25 employees on aerial devices.
• Coordinated 24-hour Hazmat Tech and 8-hour refresher classes for Department of Utilities employees.
• Coordinated with Safety Center to design and implement Hazmat FRO training for 104 field employees within the Department of Utilities.
• Provided large quantity generator hazardous waste management training to 65 PW employees.
• Utilized the City’s learning management solution (Acumen) to coordinate numerous online Cal/OSHA-required safety training courses and safety refresher courses for all City departments.
• Coordinated classes with Savvy Health Solutions, a physical fitness consultant, to prevent strains and sprains for employees citywide.
• Conducted over 200 monthly safety training courses for City Departments. • Sponsored and coordinated in -person workplace violence prevention /confrontation management training for employees in numerous departments. • Coordinated with RAM Security in providing Confrontation Management training to 499 employees.
• Supported Smith System Defensive Driving program by recertifying trainers who continue to deliver focused driver safety training.
• Trained 194 employees with the Smith System Defensive Driving program. • Coordinated third-party specialty safety trainings for traffic control flaggers , urban forestry services, confined spaces, fall protection, and physical fitness/calisthenics. • Delivered training to Recycling and Solid Waste (RSW) supervisors on drafting proper investigation reports.
• Coordinated training for four RSW employees in the OSHA General Industry 30-hour course.
• Supported EH&S specialists in career development and safety education by encouraging attendance at safety-specific professional development opportunities and support in attaining safety-specific certifications/accreditations.
Risk Management Annual Report FY2024
Vehicle Safety
City employees drove approximately 15.97 million miles in FY2024. EH&S staff tracks City vehicle collision statistics and provides administrative support for departmental collision review committees and the Vehicle Review Committee, which is comprised of representatives from all large City Departments. The City’s commitment to high-quality driver training and accountability due to the creation of the Vehicle Review Committee continues to help contain the costs of collisions.
EH&S staff shares and presents policy briefings to the Vehicle Review Committee three times per year. The presentation s focus on employee accountability for chargeable collisions and evaluating accident types to identify potential contributing factors and prevention strategies.
The Citywide Driver Training Plan, approved by the Vehicle Review Committee, continues to be a strong driver for training to reduce accidents. The plan identifies driver categories for both sworn and non-sworn city personnel. Training requirements are outlined by each category to ensure appropriate levels of driver training are assigned to minimize the risk associated with vehicle operations. The plan includes information on training modules in the learning management system and the option to utilize effective alternative driver training solutions, such as the behind the wheel Smith System training. A training matrix was developed to supplement the plan that specifically identifies which category each job classification falls into. Audits completed on training completion records by Risk Ma nagement ensure compliance with the Driver Training Plan.
EH&S staff continue to perform ongoing audits of driver proficiency verification records and timekeeping reports for all applicable commercial drivers. Close coordination with personnel from affected departments ensures all records are complete and current.
EH&S staff provide support for business operations and program cost recovery at the Sacramento Regional Driver Training Facility (SRDTF). Classes include initial , refresher, and remedial driver training for City employees, law enforcement academy recruits, external agency employees, and members of the public. Driver training is required for compliance with California Police Officers Standards for Training (POST) and is critical to the safety of emergency operations for the Police and Fire Departments as well as daily operations by commercial and frequent non -commercial drivers citywide.
In FY2024, SRDTF personnel provided driver training for: 370 City police officers ; 396 City firefighters; 339 non-sworn City employees ; 278 students from external agencies ; and 556 law enforcement academy candidates . The SRDTF program is highly regarded by City employees , external agency participants, and staff at the California Commission on Police Officer Training.
Risk Management Annual Report FY2024
Consultation
Collaboration with City departments is essential to maintain ing a safe and healthy work environment. Consulting activities included:
• Delivering 67 ergonomic evaluations.
• Coordinating 1,072 hearing tests.
• Conducting 890 respirator fit tests for employees in compliance with Cal /OSHA requirements.
• Assisting with the development of the energy control program for the Convention Center Complex.
• Conducting personal protective equipment assessments citywide to ensure employees are protected from hazards.
• Conducting 163 facility inspections.
• Issuing seasonal newsletters that share information on health and safety topics that are current and relevant to employees.
• Providing staff for departmental labor/management safety committees. • Responding to inquiries from Cal/OSHA.
• Coordinating and participating in the City’s Threat Assessment Team for workplace violence.
• Providing support to the citywide Learning Management System Acumen team. • Providing AEDs to numerous City departments as part of risk initiative funding. • Supporting emergency preparedness for emergency operations center staff. • Reviewing and updating the Illness and Injury Prevention Program (IIPP) to align with all Cal/OSHA regulations.
• Ensuring compliance with the Federal Motor Carrier Safety Administration (FMCSA) requirements regarding the Clearinghouse that applies to all commercial drivers. • Performing annual harness and lanyard inspections for 212 harnesses and lanyards. • Leading efforts in working with various City groups in coordinating monthly Motor Vehicle Committee meetings.
• Providing internship opportunities to Sacramento State University students aspiring to be EH&S professionals.
• Providing support for Police and Fire Department wellness, mental health, and cancer programs and Peer Support Unit.
• Performing hearing surveys to validate results of Hearing Conservation Program audit, and to identify employees who need to be included in the program and others who can be removed.
• Identifying a method to provide EH&S Specialists with timely injury information to better support departments and assist in the development of effective response measures.
• Collaborating with Facilities and Fleet shops in evaluating and designing new fall protection systems for numerous locations.
Risk Management Annual Report FY2024
• Collaborating with DOU in updating asbestos training for employees working with underground water lines.
• Providing financial support to the Fire Department to purchase a bariatrics gurney as part of a patient lift system designed to prevent lifting injuries. • Providing financial support to the Police Department to purchase replacement air operations helmets.
• Providing financial support for the Department of Public Works to purchase a storage unit for tools and equipment with a vent and adequate space to reduce the risk of injury. Additionally supporting the purchase of fall protection equipment, a fire safety cabinet for flammable liquids, and electrical safety arc flash protection helmets. • Providing financial support to the Youth, Parks, and Community Enrichment (YPCE) department on a project to identify and highlight trip hazards throughout parks. • Establishing a comprehensive training matrix that identifies specific training required for all classifications.
• Refining hiring practices with drug testing methods compliant with AB2188 and SB700.
• Negotiating rates with the Employee Assistance Program (EAP) provider to continue providing mental health, counseling, and support services to employees. • Coordinating medical exams for seasonal employee mass hire events to efficiently screen and clear candidates for hire.
• Updating Workplace Violence Policy to comply with requirements for employers to have a Workplace Violence Prevention Program.
• Updating Emergency Action Plans for various City sites and buildings. • Establishing a standardized new employee onboarding program to ensure employees have received regulatory training upon hire.
• Identifying a solution for digital incident reporting, Safety Data Sheet management, and inspections. Additionally, coordinating with the vendor to prepare and build the platform.
• Providing financial support to Fire to help Behavioral Health Unit personnel attend the Public Safety Peer Support Association Conference and purchase shirt s to easily identify their staff in traumatic incidents/emergencies. • Assisting the Convention & Cultural Services Department to establish regularly scheduled safety committee meetings.
COVID-19 Consultation and Support
The EH&S team has continued collaborating with City Departments to ensure employee health and protection from COVID-19, these included:
• Coordinating citywide efforts to provide training to all employees on the COVID -19 Prevention Program through virtual and in-person methods. • Updating the COVID-19 Prevention Program to reflect changes to the Cal/OSHA and CDPH requirements.
Risk Management Annual Report FY2024
• Conducting COVID-19 facility assessments to identify opportunities that promote employee health, such as improved air filtration and ventilation that effectively remove viral particulates.
• Regularly coordinating with the consultant who performed 376 case investigations to address inquiries and ensure case management is consistent with current requirements.
• Providing general consultation for employees on questions regarding current requirements and possible close contacts.
Environmental
Environmental regulatory compliance activities included:
• Overseeing contractors who manage hazardous and bio -hazardous waste clean -up and disposal.
• Participating in hazardous materials response operations for incidents occurring in the public right of way and minimizing the cost to the City by utilizing the Department of Toxic Substances Control’s (DTSC) abandoned waste program. • Coordinating proper disposal of 66,519 pounds of abandoned hazardous waste collected throughout the City or from emergency response incidents. • Conducting hazardous waste generator and spill response training for applicable personnel.
• Coordinating pick-up and disposal of e-waste and hazardous materials waste. • Maintaining asbestos and lead sampling records citywide. • Updating hazardous materials business plans for all applicable City facilities in the California Environmental Reporting System (CERS).
• Participating in Sacramento County Environmental Management Department inspections at City facilities.
• Reviewing and updating Spill Prevention, Control, and Countermeasure (SPCC) plans for facilities with large containers storing oil products. • Conducting indoor air quality investigations at facilities with specific concerns. • Maintaining consolidation points for sharps waste collected from throughout the city. • Managing a tire recycling program that complies with CalRecycle requirements for collection, storage, and documentation.
• Calculating annual hazardous waste generator fee s for the disposal of hazardous waste and issuing payment in a timely manner.
• Providing support to departments to comply with treated wood waste requirements. • Maintaining Hazardous Waste Transporter Registration with the DTSC for emergency response incident operations and small load operations. • Completing and submitt ing annual EP A ID verification to validate all 64 EPA ID numbers.
• Inventorying and coordinating proper disposal of pharmaceutical/photography waste from the Center of Sacramento History that accumulated over time from artifacts.
Risk Management Annual Report FY2024
• Implementing an aerosol canister puncture program for the Department of Utilities, in accordance with regulatory requirements, to properly dispose of spent canisters in a cost-effective and efficient manner.
• Completing regulatory Environmental Protection Agency (EPA) Biennial Reports for large quantity generators, including water treatment plants. • Updating hazardous waste storage facility at the 24th Street Corporation Yard to safely handle, separate, and accumulate hazardous waste between collections.
Support Services
Pre-employment and preventative medical programs , contractual risk transfer, and insurance and liability claim oversight are also administered by the EH&S and risk administration staff.
Activities included:
• Monitoring 1,078 pre-employment, non -industrial return -to-work, and specialty physical exams in accordance with City policy.
• Monitoring validity of 1,100 commercial/non-commercial driver’s licenses. • Coordinating 276 random drug tests and 146 random alcohol tests for commercial drivers.
• Coordinating 83 drug and alcohol tests for pre -employment, return to duty, last chance agreements, and reasonable suspicion.
• Coordinating annual flu vaccines and tuberculosis testing for public safety emergency responders.
• Monitoring compliance with City contract insurance requirements for 1,438 active contractors and vendors.
• Providing support to City Departments on proper insurance requirements for City contracts.
• Providing departmental training sessions on insurance requirements for contracts. • Providing support for the special events insurance program for City and non -City sponsored events.
• Completing insurance renewal applications and monitoring City insurance policies. • Overseeing the liability claims program.
• Participation in the PRISM Claims Committee which meets monthly to approve large workers’ compensation and liability claims settlements for PRISM members. • Participation in the PRISM GL2 Committee which meets periodically to review funding, coverage, claims, program services, and new member applications.
Safety Specialist Work-Load Distribution
In FY2024, EH&S began working on the implementation of a new online injury investigation program. Although not rolled out until the beginning of FY2025 , the inclusion of the new online reporting and data tracking program (Origami) will vastly improve our EH&S efforts in providing a timely response to injuries and incidents. The Origami reporting system also provides us with an in-depth analysis of injury and incident trends in the departments we Risk Management Annual Report FY2024
serve. Safety Specialists began tracking their injury and incident investigation duties in FY2024. With the inclusion of the injury and incident investigation category in the chart below, we have omitted the previous work -load distribution category of COVID -19. Safety Specialist workloads have drastically reduced to nearly 0% in the COVID-19 category due to the inclusion of our outside COVID-19 tracking and tracing vendor PubSEG. This has allowed our EH&S department to focus more of our efforts o n many of the other aspects of our role in promoting a safe and healthy workplace for all the City’s employees.
Special Projects
Risk Management staff meets with leadership teams from the operating departments annually to identify priority initiatives. Many of these risk initiatives ar e accomplished through the collaborative efforts of EH&S and departmental staff. Citywide risk initiatives include d safety training gap analysis and regulatory compliance for occupational safety in all departments.
EH&S completed 54 initiatives in FY2024, compared to 57 in FY2023, in the following areas:
Training 24
Policy or Procedure Development 8
Equipment or Process Improvement 12
Occupational Health 6
Risk Analysis and Program Support 4
Training
30%
Consultation
27.5%
Environmental
15%
Injury and Incident
Investigations
27.5%
Safety Specialist Time Logged FY24
Risk Management Annual Report FY2024
SUBROGATION AND RESTITUTION
Subrogation is the recovery of funds spent to repair or replace City assets damaged by negligent third parties and Restitution orders are initiated by the County for situations where City property was damaged in the commission of a crime . Examples are automobile collisions where third parties cause damage to City vehicles, traffic signals, or street signs. Recovery amounts vary by year based on the amount of City property that was damaged by responsible parties. In March of 2022 , subrogation efforts were transitioned from the Revenue Division to a third -party administrator, George Hills. Since making this transition we have seen a n increase in the rate of recovery. Support is provided by Risk Management and City Departments that provide damage cost documentation, repairs costs, accident reports, and police reports . In FY2024 subrogation recoveries totaled $618,079. Money recovered from third parties for City vehicle and property damage is deposited directly into the appropriate fund per City policy.
FISCAL YEAR 2025 ACTION PLAN
• Continue working on safety training verification and deliver training targeted to fill gaps.
• Implement a Workplace Violence Prevention program to comply with the requirements of Labor Code 6401.9.
• Work with City team to implement a Citywide property management program to improve property asset management and valuation for insurance purposes. • Launch the digital incident reporting solution (Origami Risk) and combine Safety Data Sheet (SDS) management, and inspections within the same platform. • Issue a Request for Proposal for ergonomic equipment vendors and waste tire recycling contractors.
• Provide first aid and CPR training to groups requiring such certifications. • Continue the Alvarez Associates Confrontation Management training to help mitigate potential violent situations.
• Continue the Savvy Health Solutions training program for the prevention of strains and sprains injuries.
• Evaluate the hazardous materials management program to identify potential efficiencies.
Risk Management Annual Report FY2024
• Establish a process to access digital hazardous waste manifests for all sites through the EPA electronic system.
• Continue to meet with and alert departments of claim activity to address liability issues.
• Continue updating Emergency Action Plans (EAP) citywide, provide necessary training, and coordinate evacuation drills.
• Continue to expand worksite evaluations to identify and control hazards. • Support Fire and Police in their wellness , fitness, and peer support programs and expand peer support to include other departments.
• Contribute funding to safety recognition programs to promote safe work practices. • Assist in the purchase of additional AEDs to make lifesaving equipment more accessible.
• Standardize the inspection process for all AEDs to ensure the monthly inspections are completed using the digital inspection tool.
• Complete Risk Management Initiatives developed at annual risk management meetings with departments.
• Continue implementation of the citywide Driver Training Plan and explore opportunities to designate additional internal Smith System trainers to make additional training available.
• Update the primary hazardous waste accumulation facilit y at the North Area Corporation Yard with proper storage equipment.
• Develop and implement an Indoor Heat Illness prevention program to comply with Cal/OSHA.
• Complete facility upgrades at SRDTF by replacing the outdated modular building used by training instructors and staff.
• Update COVID-19 Prevention Program to reflect changes to Cal/OSHA COVID-19 standards and California Department of Public Health (CDPH) guidance. • Support the Department of Pub lic Works transition to a digital solution for DOT- mandated Hours of Service timekeeping for commercial drivers. • Identify and assign Reasonable Suspicion Training for Drugs and Alcohol to all employees who have direct reports.
• Provide financial support to specific multi-level facilities to purchase an evacuation chair for the safe emergency exit of individuals who cannot travel downstairs. • Provide financial support to the Police Department to purchase restraint equipment that will reduce the likelihood of injuries to staff and individuals when apprehending suspects and noise suppression devices for precision rifles to prevent hearing loss.
• Provide financial support to the Fire Department to purchase patient lifting devices to assist employees in getting a better grip on patients for safer movements. • Complete an assessment of all facilities throughout the City to identify and prioritize rooftops requiring fall protection systems and provide funding assistance to install a system for the Sutters Landing building.
Risk Management Annual Report FY2024
• Perform noise exposure surveys with various departments for specific positions to evaluate whether the employees are required to be in the Hearing Conservation Program.
• Conduct an assessment of water storage vaults at aquatic facilities to identify appropriate training and equipment required for confined space entry for cleaning and maintenance operations.
• Support the Department of Utilities in their development of a Standard Operation Procedure (SOP) for asbestos pipe removal and associated training for staff. • Assist the Animal Care facility with injury prevention efforts for needlestick injuries at vaccination clinics, methods for loading/unloading raw materials from delivery trucks, and bump hazards from lighting in the Medical Building. • Continue implementation of workers’ compensation claims adjuster software upgrade.
• Achieve a 100% or greater closing ratio for workers’ compensation claims. • Begin updating workers’ compensation policies and procedures.
In closing, the Risk Management Division would like to thank City departments for their continued support in risk management activities to protect the citizens and employees of the City of Sacramento.