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Bay Cities JPA tells Piedmont council pooled coverage helps stabilize rates, offers risk‑control services
Summary
Bay Cities Joint Powers Insurance Authority executive director described the JPA’s structure, pooled coverage layers for liability and workers’ compensation, and the authority’s risk‑control services including tree management, sidewalk programs and cyber audits.
Jasa Cusimano, executive director of the Bay Cities Joint Powers Insurance Authority (Bay Cities), gave an informational presentation to the Piedmont City Council describing how the risk pool operates, the lines of coverage it offers and the risk‑control resources available to member agencies.
Cusimano said Bay Cities formed in the 1980s when commercial insurance markets hardened; the JPA pools risk for 21 members including 14 cities and several public safety authorities. "By participating in a JPA, you're removing the pro‑profit incentive from rates," Cusimano said, adding that Bay Cities has expanded pooled coverage over time and now covers liability, workers’ compensation, property and auto physical damage, while purchasing other lines like cyber through partners.
Cusimano walked through program structure: Piedmont’s liability self‑insured retention (SIR) is $25,000 and the pool layer covers up to $1 million before the pool participates in a larger excess pool called Karma with broader members and limits to $10 million and above. For workers’ compensation, Piedmont’s SIR is $150,000; Bay Cities participates in higher excess arrangements for larger losses.
Cusimano highlighted risk control services Bay Cities provides: annual risk‑management assessments (an audit the board requires for members), template policies, trainings, tree‑management toolkits, sidewalk liability resources and mandatory cyber security audits conducted by a contracted cyber manager. She said the pool funds conservatively and has not issued assessments on the work comp or liability programs in three decades.
Councilmembers asked about incentives for maintenance (potholes, trees, sidewalks), city programs that address those risks and whether common reserve policy would cover catastrophic, multi‑agency events such as earthquakes. Cusimano said Bay Cities funds the pooled property program at an 80% confidence level and maintains large reserves; catastrophic earthquake strategies are a subject of upcoming strategic planning.
Why it matters: Piedmont is a Bay Cities founding member and relies on the JPA for most liability, property and workers’ compensation coverage; the presentation detailed how pooled risk and centralized resources can lower operating costs, provide training and reduce claims exposure.
Next steps: No action was required; council thanked Bay Cities staff and noted staff serving on the board.
