MEETING DATE:
MAY 26, 2026
SUBJECT:
Title
RESOLUTION NOS. 2026-9599, 2026-9600 & 2026-9601 - AUTHORIZING PARTICIPATION IN THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY EXCESS WORKERS’ COMPENSATION PROGRAM AND RELATED ACTIONS
Body
Recommendation
Recommendation
Adopt the following:
1. Resolution authorizing the City of San Marcos to participate in the California Joint Powers Insurance Authority (JPIA) Excess Workers’ Compensation Protection Program.
2. Resolution authorizing submission of an application to the California Department of Industrial Relations for a Certificate of Consent to Self-Insure.
3. Resolution authorizing inclusion of City volunteers in the workers’ compensation coverage program.
Body
Board or Commission Action
Not applicable
Executive Summary
The City conducted a best value analysis comparing its existing workers’ compensation structure with alternative options, including participation in the CJPIA’s Excess Workers’ Compensation Protection Program.
The analysis determined that joining the CJPIA program offers the best overall value to the City by improving cost stability, reducing exposure to large or catastrophic claims, and providing access to comprehensive claims management and risk control services.
To implement this transition, three related actions are required: (1) authorization to join the JPIA Excess Workers’ Compensation Program, (2) approval to apply for a Certificate of Consent to Self-Insure from the State, and (3) authorization to continue to include volunteers within the City’s workers’ compensation coverage under this new insurance program provider.
In connection with this transition, the City is coordinating with the Public Agency Self Insurance System (PASIS) regarding the City’s withdrawal from the current workers’ compensation program. Related transition and withdrawal matters are currently under development and are expected to be considered by the PASIS Board in mid-June 2026. Staff will return to the City Council with any additional actions or agreements, if necessary.
Discussion
Adoption of the proposed resolutions will allow the City to maintain required workers’ compensation coverage while transitioning to the CJPIA excess coverage program. Bringing both general liability and workers’ compensation claims under the same risk management portfolio increases the city’s ability to more effectively manage claims and access the value-added services from a robust, risk management agency specializing in the needs of the public sector.
Resolution 1 - Participation in CJPIA Program
Authorizes the City to participate in the CJPIA Excess Workers’ Compensation Protection Program effective July 1, 2026, for a minimum three-year commitment. This provides excess insurance coverage above the City’s self-insured retention level and protects against large losses.
Under this program:
• The City will self-insure for workers’ compensation claims up to a defined retention level. After a review of the claim experience, it was determined to continue with the existing self insured retention (SIR) level.
• CJPIA will provide excess insurance coverage above that level, protecting the City from catastrophic losses.
Participation in the program offers several advantages:
• Cost Stability: Pooling risk reduces volatility in annual workers’ compensation costs.
• Financial Protection: Excess coverage limits exposure to large or catastrophic claims.
• Administrative Efficiency: CJPIA provides claims administration, risk management, and regulatory compliance support.
• Member Collaboration: Access to best practices and shared expertise among participating agencies.
Resolution 2 - Certificate of Consent to Self-Insure
Authorizes the City Manager or designee to apply to the California Department of Industrial Relations for a Certificate of Consent to Self-Insure, a required step for implementing a self-insured workers’ compensation program under a new carrier.
Resolution 3 - Inclusion of Volunteers
Authorizes the City to provide workers’ compensation coverage to qualified City volunteers pursuant to California Labor Code Section 3363.5. Under this provision, volunteers performing authorized services for the City may be deemed employees solely for the purpose of workers’ compensation coverage, without receiving any other rights or benefits of employment.
This action aligns with best practices in risk management and ensures that individuals providing volunteer services on behalf of the City are appropriately covered in the event of a work-related injury and limits general liability exposure for incidents that arise out of volunteer duties.
Environmental Review
Not applicable
Fiscal Impact
The initial annual contribution for participation in the Excess Workers’ Compensation Protection Program is $479,100, subject to adjustment based on CJPIA determinations. Additional deposits or adjustments may be required in accordance with the CJPIA Joint Powers Agreement. Funding for this program is included in the proposed Fiscal Year 2026-27 budget within the Human Resources department.
Attachment(s)
Resolution 1
Resolution 2
Resolution 3
Prepared by: Jacob Lizarraga, Senior Management Analyst, HR/Risk
Submitted by: Jacob Lizarraga, Senior Management Analyst, HR/Risk
Reviewed by: Janelle Laughlin, Administrative Services Director
Approved by: Michelle Bender, City Manager