TO: LINDA REICH, CITY MANAGER
FROM: TERRY DOYLE, DIRECTOR OF HUMAN RESOURCES/RISK MANAGEMENT
SUBJECT
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California Intergovernmental Risk Authority (CIRA) Workers’ Compensation and General Liability Program.
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RECOMMENDATION
Discuss and provide direction related to the City of Chino joining CIRA for workers’ compensation and general liability coverage for the 2025-2026 program year.
recommendation
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FISCAL IMPACT
Participation in CIRA would offer the City several potential advantages, including the benefits of group purchasing power, access to specialized risk management resources, and the possibility of more favorable insurance terms. If the City elects to join CIRA for the 2025-2026 program year, the estimated insurance premiums would be $1.85 million for the general liability program and $510,000 for the workers’ compensation program.
Overall, CIRA membership is expected to provide improved cost efficiency compared to the City’s current insurance arrangements, while strengthening its overall risk management capabilities.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Superior Customer Service
• Financial Responsibility
• Responsible Long-Range Planning
• Public Service Excellence through Internal and External Partnerships
BACKGROUND
The California Intergovernmental Risk Authority (CIRA) is a statewide risk-sharing Joint Powers Authority (JPA) providing comprehensive coverage to cities, towns, and non-municipal public agencies throughout California. CIRA provides coverage for over 50 agencies in California, including the neighboring cities of Rancho Cucamonga, Upland, and Sierra Madre. Coverage includes a self-funded general liability program that includes auto, liability and employment practices, and liability coverage, a self-funded workers’ compensation program, as well as a variety of additional insurance coverages including property, special event, and cyber liability. In addition, CIRA offers numerous resources for its members at little to no cost, including safety trainings, a comprehensive risk assessment, and access to safety policies.
ISSUES/ANALYSIS
The City of Chino currently purchases general liability insurance from a commercial insurance carrier with a $5 million deductible and workers’ compensation insurance with a $1 million deductible for public safety employees, which are the lowest deductibles offered. The City has an opportunity to reduce its deductible to $1 million for general liability and $500,000 for workers’ compensation by joining CIRA.
Staff is requesting direction from the City Council related to the City joining CIRA for workers’ compensation and general liability coverage for the 2025-2026 program year. Erike Young, the Deputy General Manager for CIRA, will be presenting an overview of CIRA’s programs and the operations of joint powers insurance authorities.