HomeMy WebLinkAbout04.b. Receive Fiscal Year (FY) 2023-24 Risk Management Annual ReportPage 1 of 42
Item 4.b.
F.1_448�411C_S 0
October 29, 2024
TO: FINANCE COMMITTEE
FROM: SHARI DEUTSCH, RISK MANAGEMENT ADMINISTRATOR
REVIEWED BY: PHILIPLEIBER, DEPUTYGM -ADMINISTRATION
ROGER S. BAILEY, GENERAL MANAGER
SUBJECT: RECEIVE FISCAL YEAR (FY) 2023-24 RISK MANAGEMENT ANNUAL
REPORT
Attached is the Risk Management Division's Annual Report for Fiscal Year (FY) 2023-24.
Strategic Plan Tie -In
GOAL ONE: Customer and Community
Strategy 1 - Deliver high -quality customer service
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 3 - Maintain financial stability and sustainability
GOAL FIVE: Safety and Security
Strategy 2 - Protect personnel and assets from threats and emergencies
ATTACHMENTS:
1. Risk Management Annual Report, FY 2023-24
2. Presentation
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 157 of 211
Page 2 of 42
Attachment 1
F,F
cC
J ��
Risk Management Division
Annual Report
Fiscal Year 2023m24
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 158 of 211
Page 3 of 42
INTRODUCTION
We are pleased to present the Risk Management Division's Annual Report for Fiscal
Year (FY) 2023-24. Risk Management's role is to protect Central San from unexpected
loss or damage, and to minimize the impact of adverse events that occur. This requires
Risk Management staff to be proactive and to maintain a constant state of readiness.
The following report details some of the ways we've met that challenge.
Risk Management also plays a role in helping Central San meet its strategic goals.
Each section of this report references the FY 2022-24 Strategic Plan goals that it
supports.
In addition to the items discussed in this report, Risk Management does several things
to protect Central San that aren't as apparent. Examples of these services include pre -
bid risk assessments of capital projects, insurance and indemnity reviews for both
capital and operational contracts, coordination with excess insurers for both
underwriting and claims management, evaluation of insurance and other risk financing
measures to manage the risks of new programs and providing litigation support to
District Counsel as needed.
Our ability to manage risk at Central San has, and will always, depend on our ongoing
partnership with management and staff. These partnerships help us to identify new and
emerging risks, to improve how Central San accepts and transfers risk, and to control
and reduce risks to our employees and our operations.
Thank you all for your continued support and commitment to these efforts.
Shari Deutsch
Risk Management Administrator
Laci Kolc
Risk Management Specialist
Risk Management Division Annual Report FY 2023-24
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 159 of 211
Page 4 of 42
Table of Contents
ExecutiveSummary------------------------------------------------------------------------------------------------------------ 3
Insurance and Risk Financing--------------------------------------------------------------------------------------------5
Workers' Compensation Claims--------------------------------------------------------------------------------------- 7
LiabilityClaims---------------------------------------------------------------------------------------------------------------------16
Other Risks and Exposures-------------------------------------------------------------------------------------------- 22
Enterprise Risk Management----------------------------------------------------------------------------------------- 25
Security-------------------------------------------------------------------------------------------------------------------------------- 26
EmergencyManagement--------------------------------------------------------------------------------------------------27
Total Cost of Risk 31
StrategicPlan Metrics--------------------------------------------------------------------------------------------------------33
A Look Ahead 34
Risk Management Division Annual Report FY 2023-24 2
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Executive Summary
Workers' Compensation: In Fiscal Year (FY) 2023-24, Central San incurred seven
medical -only claims, and two indemnity claims. Other significant results include the
following:
Central San's Experience Modifier (ExMod) was further reduced from a
respectable 0.82 last year to an impressive 0.76 this year. ExMod reductions
occur when open claims either resolve favorably or are too old to be used in the
pool's ExMod calculation. After a few years of poor loss development, FY 2023-
24 is the second year since our ExMod remained below our target goal of 1.00 or
lower.
Overflow Claims: Central San has seen an overall reduction in overflow claims from a
high of 27 in FY 2001-02, to generally less than ten claims per year since FY 2010-11.
In FY 2023-24, there were four overflow claims, two fewer than in the preceding year.
Most of these were small matters which were closed at little cost and with minimal
property damage. However, one overflow resulted in a significant loss for a local
business. As a result, the FY 2023-24 average cost per overflow claim exceeds our
benchmark of $20,000.
Overflow Claims
I
FY 2022-23
Number
7
5
9
6 4
Total Cost
$180,302
$40,631
$127,334
$56,056 $177,215
Average Cost / Claim
$25,757
$8,126
$14,148
$9,343 $44,304
Other Liability Claims: Claims in this category decreased in both frequency and
severity, lowering the average cost per claim from $44,048 in FY 2022-23, to $2,413 in
FY 2023-24. Other aspects of these claims will be discussed in more detail later in this
report.
Property Losses: Central San had one Property loss and two Auto Physical Damage
losses during FY 2023-24.
The following table summarizes claims costs for FY 2023-24 as compared to the
preceding year.
Risk Management Division Annual Report FY 2023-24
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Liability — Auto
$3,378
$36,084
Liability — Overflows
$56,056
$177,215
Liability — Plumbing
Liability — Other
Property
$561
$249
$2,413
$132,143
$6,907
$28,916
Auto Physical Damage
$2,266 $5,866.71
Enterprise Risk Management (ERM): ERM is a systematic and organization -wide
process to identify, evaluate, mitigate, and monitor strategic risks. The ERM team aims
to meet twice per year to review, update, and prioritize items on Central San's strategic
risk register, and then identifies potential mitigations to reduce or control those risks.
Results of these team meetings are presented to the Board of Directors (Board) shortly
thereafter.
Security: Staff continued to work toward the implementation of the Security Master Plan
and, with the assistance of security consultants, made additional improvements to
security systems, procedures, and practices.
Emergency Management: Staff conducted one activation exercise of Central San's
Emergency Operations Center (EOC). Staff continued to monitor and update Central
San's claims for reimbursement of eligible COVID-19 expenses under the Federal
Emergency Management Agency (FEMA) Public Assistance program and submitted
two more projects for damages arising from Orinda landslide in January 2023.
Total Cost of Risk: The Total Cost of Risk (TCOR) is a risk management industry
benchmark that allows an organization to evaluate the cost of its risk management
program over time. TCOR includes the cost of Central San's Employee Health and
Safety (EHS) program, as well as Risk Management program administration, claims,
and insurance premiums. This total is reduced by any revenue accrued or funds
recovered by the Self -Insurance Fund.
The TCOR for FY 2023-24 was $4,109,512, an increase of $277,981 (7.3%) from the
previous year. This increase was the result of higher payroll and insurance premiums.
However, the overall TCOR trend remains generally flat, as shown on page 32.
Risk Management Division Annual Report FY 2023-24
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Insurance and Risk Financing
Liability Insurance Coverage
Central San purchases insurance for Workers' Compensation, Employers' Liability,
Excess General Liability, Pollution Legal Liability, Employment Practices Liability, and
Fiduciary Liability.
Workers' Compensation: Central San participates in the California Sanitation Risk
Management Authority (CSRMA) Workers' Compensation insurance pool, a joint
powers authority comprised of over 50 sanitary districts within California. Risk
Management staff serves as Central San's representative on the Authority's Board of
Directors.
As a result of greater stability in the excess insurance markets and closing of a few
large but open claims, Central San's Workers' Compensation premium decreased by
4% in FY 2023-24 from the previous year. Pooled and Excess Insurance Premium Cost
— $679,408
Excess General Liability: This policy covers claims costs exceeding Central San's
$500,000 retention up to $15 million. Coverage includes defense and indemnification for
inverse condemnation. Insurance Premium Cost - $702,031.
Pollution Legal Liability: This policy covers claims and losses arising from the collection
and disposal of household hazardous waste. It applies only to the Household
Hazardous Waste Collection Facility and non -owned disposal sites. It does not cover
claims alleging pollution conditions arising from the operation or maintenance of the
collections system. Insurance Premium Cost - $82,286.
Employment Practices Liability: This is a gap policy that reduces the self -insured
retention for employment -related claims from $500,000 to $35,000 per occurrence. The
policy is limited to $500,000 in coverage as the Excess General Liability policy will
respond to claims that exceed this amount. Insurance Premium Cost - $21,341.
Fiduciary Liability: This policy protects Central San from claims filed by participants in
District -maintained retirement and other post -employment benefit funds. Insurance
Premium Cost - $5,544.
Risk Management Division Annual Report FY 2023-24
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Property Insurance Coverage
Central San purchases property insurance and crime insurance.
Property Insurance: Central San is self -insured for damage to its property and facilities
up to $250,000 per occurrence. Insurance coverage for losses above this retention is
purchased through the Alliant Property Insurance Program (APIP), a group purchasing
program administered by Alliant Insurance Services.
The APIP policy includes Boiler and Machinery coverage and limited Cyber Liability
coverage. This program also includes Identity Theft coverage for all Central San
employees. Insurance Premium Cost - $580,436.
Crime Insurance: This policy covers losses caused by employee theft, forgery or
alteration, funds transfer fraud and certain types of computer fraud. It does not cover
cyber-attacks or loss of data. Insurance Premium Cost - $2,272.
All Central San insurance policies renew annually on July 1.
Self -Insurance Fund (SIF)
Central San has at least partially self -insured most of its liability and some of its property
risks since July 1, 1986, when the Board approved the establishment of the SIF.
In 1994, the Government Accounting Standards Board issued Statement No. 10
(GASB-10) which established requirements on how public agencies must fund their self -
insured risks. To comply with GASB-10, Central San segregated reserves for certain
types of liability risks into a sub -fund that must be actuarially reviewed at least every two
years. The next actuarial study will use loss data through June 30, 2024.
In 2014, the Board established a reserve policy to maintain reserves for losses covered
by excess liability insurance of at least three times the amount of Central San's self -
insured retention. With the current retention of $500,000, this reserve is $1.5 million.
Retained losses and claims expenses are paid from this fund during the year. The fund
is replenished each fiscal year after the Board adopts the SIF budget.
The Board also wanted to reserve funds for catastrophic losses or emergency response
costs and sought to simplify reserving for all risks that do not require GASB-10
compliance by consolidating other liability claim reserves and property loss reserves
into a single fund. To meet these goals, the balance of the SIF has been consolidated
into a single sub -fund with a minimum $7.5 million reserve.
Other claims and program expenses are paid from this fund during the year. The fund is
replenished each fiscal year after the Board adopts the SIF budget.
Risk Management Division Annual Report FY 2023-24 6
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Workers' Compensation Claims
Claim Types
Workers' Compensation claims are classified as either Medical Only (MO) or Indemnity
(IND) claims.
MO claims are those where employees only need medical treatment to cure or relieve
their injuries. Injured employees do not lose any time from work and fully recover.
IND claims are those where injured employees receive ongoing medical treatment and
• are taken off work by their treating physician,
• are given permanent physical restrictions and/or,
• suffer some permanent disability or physical limitation because of their injury.
Summary of Recent Claims
The following table shows the distribution of Workers' Compensation claims for
FY 2023-24, and the two prior years. The Claim Count column indicates the number of
claims occurring during the year. The Claim Costs column shows the total cost of those
claims to date.
Claim
Count
Claim
Costs
Claim
Count
Claim
Costs
Claim
Count
Claim
Costs
Medical Only
6
$10,134
7
$5,091
7
$10,638
Indemnity
7
$56,779
4
$7,788
2
$43,072
Total
13
$66,913
11
$12,878
9
$53,710
Risk Management Division Annual Report FY 2023-24
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The following tables detail these totals by functional group.
Claims Frequency (number of claims filed per FY)
MO
IND
MO
IND
M07
IND
i
ADM
-
-
-
-
-
-
CSO
5
3
1
2
4
1
ENG
-
-
1
-
-
-
POD
1
4
5
2
3
1
Total
6
7
7
4
7
2ML
Claims Severity (incurred costs for all claims per FY)
MO IND
MO IND
MO
IND
ADM
-
-
-
-
-
-
CSO
$9,627
$24,241
$629
$1132
$6,836
$2,427
ENG
-
-
301
-
-
-
POD
$507
$32,538
$4,161
$6,456
$3,802
$40,645
Total
$10,134
$56,779
$5,091
$7,788
$10,638
$43,072
Trends and Analysis
Central San has very few Workers' Compensation claims in any single year making it
difficult to identify loss trends with a small data set. As a result, the following analysis
incorporates Workers' Compensation claims data from the last five years.
Medical Only (MO) Claims: The chart below shows the total number and cost of MO
claims by functional group for the last five years. The following table shows the average
cost per MO claim for each group during that same period.
Risk Management Division Annual Report FY 2023-24
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Workers' Comp:
Medical Only Claims - Last 5 Years
$25,000 ig
$20,000
$15,000
$10,000
$5,000
ADM CSO ENG POD
ENG includes HHWCF and Environmental Compliance
. ADM
CSO
ENG
POD
. ', -
$1,522
$301
$1,303
16
14
12
10
8
6
4
2
0
The Collection System Operations group (CSO) had the highest number of MO claims
(15) during the five-year period. However, the average cost per MO claim does not vary
significantly among the groups since medical appointment costs for treatment remain
constant.
Indemnity (IND) Claims: The following chart shows the total number and cost of IND
claims by functional group for the last five years. The costs include medical expenses
and other payments made by the program (i. e. temporary disability payments to
employees while off work). The following table shows the average cost per IND claim for
each group during that same period.
Risk Management Division Annual Report FY 2023-24
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$500,000 —
$450,000 —
$400,000 —
$350,000 —
$300,000 —
$250,000
$200,000
$150,000
$100, 000
$50,000
Workers' Comp:
Indemnity Claims - Last 5 Years
ADM CSO ENG POD
.
ADM
CSO
ENG POD
I
-
$4,117
-
$34,095
Claim
14
12
10
When all IND claims over the last five years are consolidated, the average cost per
claim remains just over $23,600. In contrast, the consolidated average cost of a MO
claim over the last five years is only $1,300.
Cost Drivers
IND claims are more expensive as they usually arise from more severe injuries and
often include time away from work. Whenever someone is off work with an injury,
Central San incurs additional `soft' costs that cannot be captured by claims data. These
include lost productivity, overtime for staff needed to fill in while an injured employee is
off work, paid release time to attend medical appointments, and supplemental benefit
costs including salary continuation provided to augment temporary disability payments.
Expert opinions vary on the scope of these soft costs, but estimates range from three to
five times the claims cost. Considering that IND claim costs for the last five years are
nearly $500,000, this equates to $1.5 million to $2.5 million in soft costs incurred by
Central San.
The following chart illustrates the disparity in cost between MO claims (blue columns)
and IND claims (red columns) across functional groups for the last five years.
Risk Management Division Annual Report FY 2023-24
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Total Incurred Cost
Last 5 Years - Medical Only vs. Indemnity
$450,000
$400,000
$350,000 $443,229
$300,000
$250,000
$200,000
$150,000
$100,000 4IIIIIIIIIIlllp $28,8220
$50,0 00 $22,82� _
ADM 41llIIIIIllII0 $19,539
CSO _
ENG
POD
Since the high cost of IND claims is the primary cost driver in Workers' Compensation,
Environmental Health and Safety (EHS) staff work with employees, supervisors, and
managers to identify the root causes of injuries to reduce the frequency and severity of
future incidents. These loss control activities are addressed more fully in the EHS
Division's Annual Report provided after the end of each calendar year.
Behind the Dollars
These charts show all Workers' Compensation claims by type of injury, cause of injury,
and which body parts were injured over the last five years.
Risk Management Division Annual Report FY 2023-24
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51 Claims by Cause of Injury - Last 5 Years
Transportation/MVA
Causes followed by (OE) indicate
Pushing/Pulling (OE)
those generally occurring from
Continuous Trauma `
overexertion.
Animal/Insect (Person)
These account for 28% of [non -
Other
COVID] claims over the last 5
years.
Strike/Impact (Contact)
Hot Obj/Substance (exposure)
Infectious Agent
COVID-19
Contact w/Obj/Eq
Slip/Trip/Fall/Jump
Lifting/Reaching (OE)
0 2 4 6 8 10 12
51 Claims by Type of Injury - Last 5 Years
Infection
■
Puncture
■
Other
■
Hearing Loss or Impairment
Bite/Sting
Irritation/Burn
COVID-19
Cut/Bruise
Strain/Sprain
25 of the 46 non-COVID
Workers Comp claims
occurring in the last 5
years (54%) were strains
and sprains.
25
0 5 10 15 20 25 30
Risk Management Division Annual Report FY 2023-24 12
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51 Claims by Injured Body Part - Last 5 Years
Toe(s)
Foot
Elbow(s)
Buttocks
Back (All Other)
Ankle(s)
Head/Face
Hand(s)
Eye(s)
Ear(s)
Wrist(s)
Lower Leg
Arm/Shoulder
Multiple
Knee(s)
Respiratory System COVID-19
Finger(s)
Back - Lower
0 1 2 3 4 5 6 7 8 9
• Over the last 5 years our employees most frequently injure their fingers and
lower backs.
• Of the 51 Workers' Compensation claims occurring over that period, 6 were
finger injuries and 8 were lower back injuries.
• However, that similarity ends with the treatment and recovery of these injuries, as
shown below.
Body Part
% of Injuries
% of Injury Cost
Finger
13%
<1 %
Lower Back
17%
23%
Risk Management Division Annual Report FY 2023-24
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Lost Time and Return to Work
Risk Management established Central San's Return -to -Work Program in 2007 to
facilitate employees' recovery from work -related injuries and to reduce the number and
cost of IND claims. The program incorporates use of the interactive process which is
required by the Fair Employment and Housing Act (FEHA) and the Americans with
Disabilities Act Amendments Act (ADAAA).
When injured employees are allowed to return to work but cannot perform their full job
duties, EHS staff work to identify Temporary Modified Duty (TMD) assignments within
the organization. When a TMD assignment is not available within an injured employee's
work group, staff asks other groups if they have small projects or other short-term tasks
that the recovering employee can perform within their physical restrictions.
In many cases, Central San's ability to provide TMD assignments will prevent an injured
employee from losing time from work. This single change of circumstance may stop a
MO claim from becoming a more expensive IND claim. As a result, our Return -to -Work
Program is an essential element in both employees' recovery and cost control.
It is not easy to compare Return -to -Work Program metrics from year to year as each
potential TMD assignment depends on the nature of each injured employee's regular
duties and Central San's ability to offer TMD assignments within their physical
restrictions. It is also important to note that restrictions provided to employees by the
treating physicians are so strict that we cannot find any TMD assignments.
Nevertheless, we strive to provide TMD to 100% of eligible employees.
Improving Outcomes
Central San continued to offer tools and services proven to improve outcomes for
injured employees.
New TPA: Athens Administrators started on July 1, 2023, and staff have found them
extremely knowledgeable, responsive and the feedback from employees is that they are
helpful and efficient.
On -Call Nurse: Central San implemented a Nurse First Call Program which allows a
nurse to evaluate non -emergency injuries over the phone before medical treatment can
be provided. Employees now get direction from a medical professional regarding their
immediate and ongoing treatment needs. This service also routes detailed injury
information to the clinic to inform subsequent treatment.
Medical Provider Network (MPN): Central San joined CSRMA's MPN to provide injured
employees access to many medical specialists. After seeing a doctor at a designated
occupational injury clinic, an injured employee may follow up with a doctor in the
network rather than wait for an approved referral to a specialist. Medical treatment is
Risk Management Division Annual Report FY 2023-24 14
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subject to review as required by law, but injured employees may receive follow-up care
faster within the MPN.
Experience Modification Factor (ExMod)
One of several factors used to calculate Central San's annual Workers' Compensation
premium is the ExMod. CSRMA calculates each pool member's ExMod by comparing
its loss data from the preceding three years to the entire pool's combined loss data for
that same period. Members' ExMods are then adjusted to align a portion of the
members' premium with their relative loss experience.
Because the pool calculates a member's ExMod using a rolling three-year period of loss
data, no member is penalized for poor performance (higher than average claims
frequency or severity) in a single year indefinitely.
Workers' Comp ExMod - Last 10 Years
1.40
1.19
1.20 1.06 1.1�
1.00
0.80 1 0.74 0.82 0.76
0.61
0.64 0.67 0.7
0.60
0.40
0.20
0.00
20 ��,15 20 ��,16 20 �6,1� 2�ti� ,1$ 20 �$,19 20 �9,2� Z� Lp-2ti 2o2ti,22 2022,23 2023 2�
This is evident in the chart above. Claims occurring in FY 2018-19 and FY 2019-20 had
developed more significantly than anticipated, resulting in larger than expected case
reserves. Some of these cases resolved favorably while others occurred far enough in
the past that those claims were not used to calculate Central San's ExMod for
FY 2023-24. This results in an ExMod of 0.76, which meets our performance standard
of below 1.00.
It is important to note that while Central San's ExMod has stabilized, it is only one of
three factors used to determine our Workers' Compensation premium. Rising excess
premium costs and increasing payroll have offset some of the savings derived from the
lower ExMod this fiscal year.
Risk Management Division Annual Report FY 2023-24 15
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Liability Claims
Claims Philosophy
Central San's focus on customer service informs its claims management process.
Claimants are contacted immediately, their claims are investigated thoroughly, and
when damages are found to be Central San's responsibility, claims are settled promptly
and fairly. This approach has resulted in generally satisfied claimants and in reduced
costs.
Liability Claim Types
We categorize self -insured liability claims into four types: Auto Liability, Plumbing
Reimbursements, Sanitary Sewer Overflows, and Other Liability claims. These claims
are all paid from the Self Insurance Fund and would be covered by Central San's
excess liability insurance if the losses exceeded its self -insured retention.
Claim costs include emergency response expenses, settlements, legal expenses, and
reserves for open claims. It does not include staff time to adjust and settle claims.
Auto Liability Claims
Auto Liability claims are those filed by third parties for damages they believe Central
San personnel caused while operating its vehicles. This includes claims for injuries to
persons or damage to others' property.
These claims do not include costs to repair or replace damaged Central San vehicles
from such events. Repairs to these vehicles are paid from a different sub -fund and
discussed under the Auto Physical Damage section of this report.
The chart below shows the total number and cost of Auto Liability claims for the last five
years. There were three Auto Liability claims in FY 2023-24.
Risk Management Division Annual Report FY 2023-24 16
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Auto Liability Claims
$35,000 3
$30,000
$25,000 $28,708
2
$20,000
$15,000
$10,000 1
$5,000
$- — — 0
2019-20 2020-21 2021-22 2022-23 2023-24
Total Cost Number
Plumbing Reimbursement Claims
Plumbing reimbursements are small claims usually made by homeowners after they
have called a plumber for service, only to learn that the problem was in Central San's
main sewer line. CSO field staff respond to these situations and often provide the
homeowner with a claim form while they are on site. This facilitates a simple
reimbursement process where Risk Management receives the claim, confirms the call -
out and the findings, then processes reasonable reimbursements.
Plumbing reimbursements do not include reimbursement requests arising out of an
overflow or any event where sewage escaped from the collection system. These
circumstances involve additional expenses and are often included as part of a larger
claim. Claims arising from these situations are considered overflow claims, which are
discussed in the following section.
The chart below shows the total number and cost of plumbing reimbursement claims for
the last five years.
Risk Management Division Annual Report FY 2023-24 17
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Plumbing Reimbursements
$1,800
$1, 600
$1,400
$1, 200
$1,000
$800
2
$600
$400 1
$200
$ ■ ■ 0
2019-20 2020-21 2021-22 2022-23 2023-2
Total Cost Number
Sanitary Sewer Overflow (SSO) Claims
SSO claims are those filed by customers whose property has been damaged by a
sewer overflow. CSO staff respond to the overflow and contact Risk Management when
they determine that an overflow has resulted from a problem in the main sewer line.
This allows Risk Management staff to:
• respond immediately to begin coordination of emergency clean up and
remediation as needed,
• provide for affected customers' immediate needs,
• work with the customers to define damages,
• help customers prepare their claims, and
• settle the claims in a timely and reasonable manner.
This process has evolved into a partnership between CSO and Risk Management staff
that benefits both Central San and our customers.
The following chart shows the total number and cost of SSO claims for the last five
years, followed by a table showing the average cost per SSO claim for each year.
Risk Management Division Annual Report FY 2023-24
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SSO Claims
$200,000 $180,302 10
$180,000 $177,215
9
$160,000 8
$140,000 $127,334 7
$120,000 6
$100,000 5
$80,000 4
$60,000 $56,056
$40,631 3
$40,000 2
$20,000 , 1
$- 0
2019-20 2020-21 2021-22 2022-23 2023-24
Total Cost Number
Year FY 2019-20
FY 2020-21
FY 2021-22
FY 2022-23
FY 2023-24
Avg $ per $25, 757
Claim W_
$8,126
$14,148
$11,191
$44, 304
Staff benchmarks SSO claims costs against the average cost per SSO claim incurred
by CSRMA's Primary Insurance Pool. Although Central San does not participate in this
pool, its loss data presents a relevant benchmark for comparison.
As of the last available data, CSRMA's average cost per overflow claim is about
$20,000. Unfortunately, a mid -sized overflow caused a significant loss to a local
business, resulting an unusually high -dollar claim. Notwithstanding this single event,
Central San usually outperforms this benchmark which is shown as the blue line in the
chart below.
Average Cost of SSO Claim by FY
$50,000
$45,000 $44,304
$40,000
$35,000
$30,000
$25,000 $25,757
$20,000 S14,148
$15,000
$10,000
$5,000 $8,126 $9,343
$0
2019/20 2020/21 2021/22 2022/23 2023/24
Risk Management Division Annual Report FY 2023-24
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Thanks to the partnership with CSO and the ongoing support of management and the
Board, it is common for staff to resolve SSO claims at a lower cost than that of Central
San's peers. Larger overflow claims do occur, although infrequently, but any overflow
claim can develop into a significant loss, even when addressed in a timely, thoughtful,
and professional manner.
Other Liability Claims
This category includes claims that don't readily fit in the preceding categories.
Examples include damage to customers' property caused by sewer cleaning activities,
damages alleged to arise from field work, damage to other utilities' infrastructure from
maintenance or construction activities and other claims where the affected party
believes Central San caused their loss. As of FY 2021-22, we assign this category to
claims alleging SSOs were caused by problems in the main sewer line but we were
unable to substantiate in the claim investigation.
There is little similarity among the claims in this group but they include litigated or
complex claims that take longer to settle and may incur reserves and legal expenses.
All such claims are investigated and, if found to be Central San's responsibility, promptly
settled for reasonable amounts. Claims found not to be Central San's responsibility are
either denied or tendered to the at -fault party.
Because these claims defy any ready classification, claims within this group fluctuate it
frequency and severity over time. A claim filed today might settle for $500, while one
filed tomorrow could exceed the self -insured retention. Furthermore, since some
claims do not settle within the year in which they occur, reserves are adjusted to reflect
current assumptions.
The chart below shows the total number and cost of these Other Liability claims for the
last five years.
Other Liability Claims
$700,000
7
$615,898
$600,000
PP__
6
$500,000
5
$400,000
4
$300,000
3
$200,000
$143,734 $132,143
2
$100,000
$46 2gg
1
_
II
$2,413
2019-20 2020-21 2021-22 2022-23
2023-24
Total Cost Number
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Liability Claims Overall
The following chart combines the four liability claim types and compares costs by fiscal
year and type of claim over the last five years.
2023-24
Cost of Liability Claims by Type
■ sso
■PL
2022-23 ■ OL
2021-22 ■ AL
2020-21 FEE
2019-20
$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000
From this perspective, plumbing reimbursements and auto liability claims comprise a
very small portion of Central San's liability claim costs. SSO claims have a more
noticeable impact but have not changed significantly in either frequency or total cost in
the last few years. As indicated earlier, other liability claims, shown above as `OL',
fluctuate more widely in both frequency and severity from year to year.
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Other Risks and Exposures
Property Losses
Central San is self -insured for damage to its property and facilities up to $250,000 per
occurrence. Insurance coverage for losses costing more than $250,000 per occurrence
is purchased through the Alliant Property Insurance Program (APIP), a group
purchasing program administered by Alliant Insurance Services.
The APIP policy includes Boiler and Machinery and limited Cyber Liability coverage.
There was one property loss in FY 2023-24; a boiler leak that affected several parts of
the HOB. Clean up costs totaled $28,917 and repairs were made by contractors.
Self -Insured Property Losses
$70,000
$60,000 $63,664
$50,000
2
$40,000
$
$30,000 28,917
$20,000 1
$10,000 —
$- • 0
2019-20 2020-21 2021-22 2022-23 2023-24
Total Cost Number
Earthquake and Flood Risks
The APIP policy does not include coverage for damages arising out of flood or
earthquake. Risk Management staff periodically evaluate the cost of insuring these risks
through the commercial insurance market. This evaluation considers recent hazard
modeling results and Central San's implementation of mitigation projects that reduce the
potential impact of earthquake and flood damage against available insurance coverage
and pricing.
In March and June 2017, staff presented the Administration Committee with an analysis
of earthquake insurance pricing, and the results of FEMA's 2017 update to HAZUS, its
Risk Management Division Annual Report FY 2023-24 22
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Page 25 of 42
hazard model using multiple earthquake and flood scenarios. After some discussion, the
Committee decided against purchasing flood or earthquake insurance at that time.
Staff will continue to monitor hazard models and the insurance market and report back
to the Committee when more favorable options emerge.
As a result, Central San is essentially self -insured for flood and earthquake damage.
Any losses arising from these hazards would be paid from the catastrophic loss fund
described in more detail on page 6. Central San has not suffered any flood or
earthquake losses to date.
Auto Physical Damage
Central San is entirely self -insured for Auto Physical Damage. Damage to other parties'
vehicles is insured by the Excess Liability policy, but the cost to repair or replace
Central San vehicles is not. If a Central San vehicle is damaged by a third party, the SIF
pays for repairs and Risk Management staff pursues cost recovery from the at -fault
party. When damage is caused by Central San staff, the SIF pays repair costs more
than $1,000. All vehicle repairs are coordinated through Central San's Vehicle Shop.
The following chart shows the number and cost of Auto Physical Damage losses for the
last five years.
Retained Auto Physical Damage Losses
$12,000
$10,000
4
$8,000
$5,867 3
$6,000
2
$4,000
$2,000 1
2019-20 2020-21 2021-22 2022-23 2023-24
ME= Total Cost Number
Two vehicles were damaged during FY 2023-24. However, staff successfully recovered
the cost of one incident from an at fault party, reducing the net loss to $5,687.
Household Hazardous Waste Claims
Central San purchases a separate Pollution Legal Liability insurance policy to cover
losses arising out of the collection and disposal of household hazardous waste. No
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claims have been filed since the Household Hazardous Waste Collection Facility
opened in 1997.
Pollution Risks
Central San has chosen to self -insure pollution -related risks other than those arising
from providing the Household Hazardous Waste Facility. Coverage for such pollution
losses is either not available or extremely expensive. As with flood and earthquake
damage, liabilities or claims costs arising from an alleged pollution condition would be
paid from the SIF's Catastrophic Loss Fund. No pollution claims have been filed since
the fund was created.
Risk Management Division Annual Report FY 2023-24
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Page 27 of 42
Enterprise Risk Management
Enterprise Risk Management (ERM) is a process used to identify, assess, and address
strategic risks that may affect an organization's ability to meet its goals and objectives.
Utilities and very large public agencies began implementing ERM over twenty years
ago.
Since then, smaller public entities have gradually implemented some form of ERM with
enough success that ERM has become a best practice in public sector risk
management.
ERM requires that agencies continuously identify their strategic risks, rank and prioritize
those risks for oversight, mitigation or elimination, and periodically report progress to
key stakeholders.
Central San's ERM team includes the Executive Team, Human Resources and
Organizational Development Manager, Risk Management Administrator, and Internal
Auditor. This group usually meets twice per year to review risk rankings, to review
mitigations and risk reduction priorities, and to identify any new strategic risks or
opportunities that may affect Central San's ability to meet its objectives.
Fiscal Year 2023-24
The ERM team was unable to meet in both Fall 2023 and Spring 2024 as staff
redirected its focus on developments in a major lawsuit. The ERM team is scheduled to
meet in October 2024 and staff will bring the results of that assessment to the Board
shortly thereafter.
Risk Management Division Annual Report FY 2023-24 25
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Page 28 of 42
Security
Risk Management is responsible for the physical security of Central San's facilities.
Day-to-day security operations includes oversight of, and coordination with, the security
guards, issuance of badges and keys to staff and the maintenance and support of the
electronic security systems including security cameras, card readers, panic buttons,
burglar alarms and related software.
Risk Management staff partners with other work groups to accomplish a variety of tasks
and projects to secure Central San property and protect its employees and the public
from security breaches.
Staff works closely with the Information Technology Division to modify and update
electronic access control systems. IT has also developed an education and training
program to increase employee awareness and reporting of actual or potential cyber
security threats.
In addition to these ongoing projects and practices staff also accomplished the
following:
• Staff acquired and issued new high security badges to all employees and
authorized vendors and contractors
• All new badges included updated photos of the recipients.
• Staff worked with Capital Projects staff to integrate and update security features
in multiple capital projects designs.
• Staff updated to the newest software versions of the security software in use and
worked with IT to improve the storage capacity for security servers.
Risk Management staff is also working on longer term projects including updates to
information security protocols, electronic security systems, and facility hardening
measures to protect employees and further restrict access to Central San facilities from
unauthorized parties.
Risk Management Division Annual Report FY 2023-24 26
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Page 29 of 42
Emergency Management
Central San's Emergency Management Program is comprised of four elements that
work together to ensure a prompt and effective emergency response to disasters, to
make sure such response is properly documented for potential cost recovery, and to
make permanent repairs to damaged infrastructure as soon as practicable.
Emergency Management Program Elements
1) Plan Development and Maintenance
Risk Management is responsible for developing, maintaining, and continuously updating
the Emergency Operations Plan and the Continuity of Operations Plan. Planning and
Development has assumed responsibility for updating the Local Hazard Mitigation Plan
and Environmental Health and Safety (EHS) retains responsibility for maintaining, and
continuously updating the Emergency Action Plan.
Emergency Operations Plan: The California Emergency Services Act requires all public
entities to prepare and maintain an Emergency Operations Plan (EOP) that complies
with the Standardized Emergency Management System (SEMS). Risk Management
staff produced, and the Board adopted a major EOP update in 2010 to reflect changes
in the emergency staffing structure and to comply with the federal National Incident
Management System (NIMS).
Since then, Risk Management staff reviews the EOP at least annually and posts needed
updates to the intranet. Hard copies of the EOP are kept in the primary and backup
Emergency Operations Centers (EOCs). Additional hard copies of the plan are stored in
emergency supplies caches.
Continuity of Operations Plan: The Continuity of Operations Plan (COOP) was
activated when the COVID-19 pandemic reached Contra Costa County. During
February and March 2020 staff updated and then modified the Pandemic Response
segment of the plan to keep up with the changing information and direction received
from County and State public health professionals. Since then, staff have made minor
adjustments to the plan as COVID rules changed the way we work, and technology
expanded the universe of alternative workspaces.
This Pandemic Response segment of the COOP should not be confused with the
pandemic Exposure Prevention Plan, which was prepared by, and is expertly
maintained by, our EHS staff. This critical document governs current workplace
operations under pandemic conditions. The Exposure Prevention Plan has been
Risk Management Division Annual Report FY 2023-24
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Page 30 of 42
incorporated into the Pandemic Response section of the COOP as a deliverable within
the overall response protocol.
A major update to the COOP is scheduled for Fall of 2024. Staff has hired a consultant
to update the plan which will incorporate current best practices and ensure we comply
with applicable changes in federal and state requirements.
Local Hazard Mitigation Plan: Before a local government may apply for Building
Resilient Infrastructure and Communities (BRIC) or hazard mitigation grants, it must
prepare and maintain a FEMA-approved Local Hazard Mitigation Plan. FEMA approval
expires in five years. Thereafter, a local government must follow FEMA's detailed
procedures to update the plan and submit it for FEMA's review, comment, and hopeful
approval to maintain compliance with this grant requirement.
The FEMA-mandated update procedures are quite burdensome for small agencies but
can be easily scaled to include multiple participants. To take advantage of this situation
Contra Costa County sponsors a multi -jurisdictional plan update project for interested
local governments within its boundaries.
Central San has participated in these combined plan update projects since 2011.
Central San's Planning and Development Division has assumed responsibility for this
plan and will present the next update for Board review and adoption.
Emergency Action Plan: The Emergency Action Plan (EAP) is required by the
California Division of Occupational Safety and Health (CaIOSHA) and details the
specific responsibilities and procedures to follow if Central San staff need to evacuate or
shelter in place. Since the EAP is part of the Safety Directive catalog, responsibility for
EAP maintenance, testing and exercises resides with the EHS staff.
2) Training and Exercises
To maintain compliance with SEMS, Central San must conduct at least one EOC
Activation exercise annually. Staff conducted one exercise in FY 2023-2024 at the
primary EOC location.
Primary and Backup EOC: The Multi -Purpose Room is Central San's primary EOC.
The Crew Room at the CSO facility in Walnut Creek serves as Central San's backup
EOC. Both locations are designed as `warm' sites, meaning that all needed supplies
and equipment are stored on site, but must be set up before the EOC becomes
operational.
These facilities must be continuously stocked with supplies and equipment to enable
immediate set up and operation of the EOC. Risk Management staff conduct inventory
audits of each location to ensure that items are available on site, secured as needed
and maintained in an operable condition, including replacement of any expired or non-
functional items. During these audits, staff also test the analog phones, satellite
television service and the satellite internet service to ensure continued operability.
Risk Management Division Annual Report FY 2023-24 28
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Page 31 of 42
Communications: Contra Costa and Alameda Counties are partners in the East Bay
Regional Communications System Authority (EBRCSA), a Joint Powers Authority that
developed and maintains an interoperable radio communications infrastructure using
the P25 standard. Central San joined this group in FY 2014-15 and purchased its first
batch of radios in FY 2016-17. The Radio Unit of the County's Department of
Information Technology has programmed all the radios.
Risk Management has also worked with the IT and EHS Groups to convert Central
San's mass notification system from Everbridge to Informacast. The systems are quite
similar, but Informacast is better able to integrate with other information technology
already in use at Central San.
As with Everbridge, Informacast allows authorized users to send messages to all
employees or selected groups through multiple communications mediums. The system
is currently configured to contact personnel via desk phone, email, cell phone and then
by text message, using the next device in the hierarchy until each person responds. If
someone does not respond through an entire cycle, the system will wait five minutes
then restart contact attempts until the person responds or the authorized user cancels
the notification.
Central San also maintains handheld amateur (HAM) radios at both the Walnut Creek
and Martinez campus and has three licensed HAM radio operators on staff.
4) Coordination with Other Agencies
As a single -service agency, Central San must coordinate its emergency response with
first responders from other local governments within its service area. All local
governments in the County report incidents, damage, and resource requests to the
Operational Area EOC. The Operational Area EOC is housed at the Contra Costa
County Sheriff's Office of Emergency Services (OES) at 1850 Muir Rd. in Martinez.
Risk Management staff continues to serve on the Operational Area Council, a group of
emergency managers from within the County who meet quarterly to share information
and best practices, coordinate multi -agency drills and training opportunities, and
facilitate coordinated area emergency planning. The Council is sponsored by the Contra
Costa County Sheriff's OES.
As the Operational Area point of contact, County OES also works with state and federal
agencies to collaborate on projects of regional or national concern. Operational Area
Council members are encouraged to participate in these larger group meetings.
Central San is also a member of the California Water and Wastewater Agency
Response Network (CaIWARN), which coordinates the distribution of members'
specialized equipment and trained personnel to other member agencies to help with
disaster and emergency response.
Risk Management Division Annual Report FY 2023-24
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FEMA Reimbursement — Public Assistance Grants
Public Assistance (PA) is FEMA's largest grant program providing funds to assist local
governments responding to and recovering from major disasters or emergencies
declared by the President. The program provides funding for emergency assistance to
save lives and protect property and assists with funding for permanently restoring
community infrastructure affected by a federally declared incident.
Because the COVID-19 pandemic was considered a major disaster, local governments
were able to request reimbursement for otherwise non -recoverable emergency
protective measures Central San took to protect lives and secure its physical
operations.
As of fiscal year end, Central San has 4 COVID-19 projects under review with FEMA.
Upon final review, and unless FEMA disallows some portion of our costs, Central San
should recover costs as shown below:
Project # Requested Recovery Expected Amount
00%
685751 $302,012 100% $302,012
730085 $87,655 90% $78,890
751044 $38,843 100% $38,843
TOTAL $806,948
This recovery will be in addition to other forms of recovery as Federal law prohibits
recovery under the PA program for costs recovered under other programs or grants.
Staff have also submitted two projects for emergency protective measures and
permanent repairs for collection system damages arising from the Winter 2023 landslide
in Orinda. Updates on these FEMA PA projects will follow as they develop.
Risk Management Division Annual Report FY 2023-24
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Page 33 of 42
Total Cost of Risk
The Total Cost Of Risk (TCOR) is a risk management industry metric that allows an
organization to evaluate the cost of its Risk Management program over time.
TCOR is the sum of five categories of expenses: personnel, insurance premiums,
claims costs, and Risk Management and EHS Program expenses. This total is reduced
by any revenue accrued or recovered by the Self -Insurance Fund.
The following chart illustrates these costs by category for the last ten years.
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
TCOR Categories by Fiscal Year
ti�
ti°
do titi
titi ,y3 ti�
�ti� hti° °tip
■ Personnel ■ Insurance
■ Claims
■ RM Program
EHS Program
Note 1: Chart does not include lost productivity or other soft costs arising from claims.
FY 2023-24 TCOR is $4,109,512, an increase of $277,981 (7.3%) from the preceding
year. This is mostly the result of increased insurance premiums.
The totals for most categories are fixed at the end of each fiscal year. However, prior
year claims costs may include reserves for open claims occurring in specific fiscal
years. This may result in fluctuation of claims costs over time as losses develop or
claims resolve favorably.
Risk Management Division Annual Report FY 2023-24
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Page 34 of 42
Overall, Central San's TCOR remains stable. The following chart shows Central San's
total TCOR with a trend line for the last 10 years.
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
TCOR Totals and Trend
° ,yo titi titi ti� ti�
ti°�� ti°�h ti°moo oti� °tip °�°yo °��
ti ti ti ti ti ti ti
Prior year data on both charts have been adjusted by CPI to facilitate trend analysis.
Risk Management Division Annual Report FY 2023-24
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Page 35 of 42
Strategic Plan Metrics
Central San's Strategic Plan includes seven goals with associated strategies, initiatives,
and metrics to track performance toward achieving these goals. Risk Management is
responsible for metrics under three of the goals. The tables below summarize Risk
Management's FY 2023-24 performance for the metrics associated with these goals.
GOAL 1 : CUSTOMER AND COMMUNITY SERVICE
STRATEGY. SUPPORT MEMBER ORGANIZATIONS AND SISTER AGENCIES.
Metric s Measure Year •
Continue participation in Provide Mutual Aid where possible 2 requests
CaIWARN
GOAL 4: GOVERNANCE AND FISCAL RESPONSIBILITY
STRATEGY: EVALUATE AND APPLY RISK MANAGEMENT PRACTICES.
Manage the Cost of Overflow
Claims
GOAL 5: SAFETY AND SECURITY
Average cost per claim $44,304
< $25,000
STRATEGY: PROTECT PERSONNEL AND ASSETS FROM THREATS AND EMERGENCIES
Control Workers'
Compensation Coverage
Costs
Maintain and report on
Enterprise Risk Management
proaram
Ensure the currency of
Emergency Plans
Evaluate and implement
security improvements to
meet new or evolving
threats
Maintain Experience Modifier of 1.00
or lower
Coordinate ERM Team, monitor risk
scores over time, present results to
Board twice per vear
Updated Emergency Operations
Plan
O
0
.76 O
Updated Board O
in Winter 2024
Ongoing O
Implement the Security Master Plan Ongoing O
Risk Management Division Annual Report FY 2023-24
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Page 36 of 42
A Look Ahead
As staff presents this report, the first quarter of FY 2024-25 is complete. Staff has
included this new section to provide updates on the items discussed in this report since
FY 2023-24 ended. Many of these items will be included in the FY 2024-25 Annual
Report,
Staff is finalizing an update to insurance requirements for UPCCAA and Capital
Projects as they expose Central San to the highest risk from non-compliance. To
date, the updated requirements for UPCCAA and Capital Projects are in their
final review and should be implemented by December 2024.
Capital Projects and Risk Management continue working with security
consultants to update and revise Central San's vulnerability assessment, to
identify and recommended high impact projects and to consolidate physical
security guidelines to ensure consistency in capital improvements to District
facilities. An updated version of the Security Master Plan will be presented to the
Executive Team in November 2024.
• The Workers' Compensation ExMod dropped from 0.76 in FY 2023-24 to 0.67 in
FY 2024-25.
Staff were asked to serve on the 2024 PRIMA Institute Planning Committee. The
Institute is sponsored by the Public Risk Managers Association (PRIMA) and is
considered the premier educational opportunity for public agency risk
management in the United States.
Risk Management Division Annual Report FY 2023-24
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Page 37 of 42
Attachment 2
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Page 38 of 42
Workers' Compensation: Claims and Costs
5 Yr. Avg Cost - Med Only. $1,376 5 Yr. Avg Cost - Indemnity. $23,602
Last Year's 5Yr. Avg = $1,219 Last Year's 5Yr. Avg = $19,639
Workers' Comp:
Indemnity Claims - Last 5 Years
ss 'Wo
$uO,rco
$a Uxo
$350,000
$3a0,MO
szsB,00a
$zaB,00a
ssso,DDa
$1aB,00a
$50,000
s-
ADM
ENG includes HHWCF and Enllro n[al Compliance
3
Workers' Comp:
Claims, Costs, Causes
Medical Only vs. Indemnity Claims Cause of Injuries
4
4
Total Incurred Cost
Last 5 Years - Medical Only vs. Indemnity
$500,000
$400,000
$443,229
$300,000
$200,000
$100,000 i $28,820
$- $22,823
ADM + $19,53�
CSO
ENG
POD
CSD ENG
51 Claims by Type of Injury - Last 5 Years
ir�ertion ■
25 of the 46 non-COVID
Puncture ■
Workers Comp claims
Omer ■
occurring in the last 5
Hearing Lass or Impairment M
years (54%) were strains
Bite/sting
and sprains.
Urrtalion/Burn
COVID-19
Cut/Bruise
25
Strain/Sprain
0 5
10 15 20 25 30
Z� ( ) CENTRALSAN
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 194 of 211
Page 39 of 42
Liability Claims and SSOs
Cost of Liability Claims by Type
2023-24 ■SSD
■ PL
2022-23 � ■OL
■A
mu-zz
2W2 21 X
zmszo _
$- $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000
5
G
Average Cost of SSO Claim by FY
55n,000
$45,000 - 544;304
$40,000
131,000
$30,000
525,000
$20,ppp $E4,19fi
$15,000
510,000
$5,000 `S&.124_ 59,343
Sa
'0120 202n121 MW22 2n2212s 2m3124
Enterprise Risk Management (ERM
Ewnomic Uncertainty/ Recession 7 B 2 a 25 1
Global Pandemic 6 10 3 5 24 2
Internal Controls Failure 4 3 2 7 16 3
Top Ten Strategic Risks - Summer 2023
as
30
20
10
0
tn"
I
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 195 of 211
Page 40 of 42
Emergency Management:
Public Assistance (PA) Grants in Progress
z FEMA
ProjectRequested
$387,203
Recovery548915
100%
$387,203
685751
$302,012
100°%
$302,012
730085
$87,655
906/0
$78.890
751044
$38,843
100%
$38,843
TOTAL
$806,948
7
Emergency Management:
EOC Activation Exercise 12/6/23
I
, VL - 'rii
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 196 of 211
Page 41 of 42
Total Cost of Risk: The Metric
Elements of Total Cost of Risk (TCoR)
Insurance premiums
The -antl most easily Vacketl component of Total Cos[of Risk is insurance premiums.This Inclutlesthe
amount, firm sp,,d, on insurance coverage and brokers' commissions.
Retained losses
The next element is retained losses. The retained loss value is the amount of money [trot a fine spends
out of pocket" for lasses intoned. These are costs that are below a company's deductible. An example is a
small mishap such as tlrycleaning a client's suit tlue to spillage from art employee.
Costs to protect employees/customers from injury
Thenext applicable costs may not be as easy to frbck but are still important components captured in the
TCOR calculaton. These are [he oos[s needed to protect your employees ar customers from injuries.
Examples are safety eq,ipmenL mats, warning signs, training, etc These costs should be tracked m pad of
the TCoR for your business irdernally.
Costs to engage firms for help with risk & insurance issues
The— component is money spent with professional firms to help you handle insurance or other risk
a acie[etl issues. These would include costs far an attorney to resp—d to a complaint or to review a
contract's ind—nification ag,,,m,nL These are also part of the TC,R calculation antl are considered
9 external risk control costs.
I
TCOR Categories: The Last 10 Years
TCOR Categories by Fiscal Year
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
.10 .10
■ Personnel ■ Insurance ■ Claims ■ RM Program a EH$ Program
10
10
TCOR for FY 2023-24 was
$4,109, 512.
Increased 7.3% over prior
year.
• Increase was mostly
attributable to higher
insurance premiums
(payroll).
All categories have been
adjusted for inflation.
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 197 of 211
Page 42 of 42
TCOR Trending: The Last 10 Years
TCORTotals and Trend
$6,000.000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000.000
:- - -
ll fl
'YEA\ ti�\�•b ti��` ^\� �\� ti�\Q~O ti�ryO~\ ~Ory titi ~Oryry� ti�~�~p
12
Totals have
been adjusted
for inflation.
TCOR does not
include
productivity
loss or other
soft costs
arising from
employee
injuries.
Trend remains
flat / stable.
October 29, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 198 of 211