REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
May 19, 2020
FROM
LEANNA WILLIAMS, Director, Department of Risk Management
SUBJECT
Title
Amendment to the California State Association of Counties Excess Insurance Authority Joint Powers Authority Agreement
End
RECOMMENDATION(S)
Recommendation
1. Approve amendment to the California State Association of Counties-Excess Insurance Authority Joint Powers Authority Agreement to change its name to Public Risk Innovation, Solutions, and Management, remove a provision that requires county members to maintain a membership in the California State Association of Counties, and additional changes to conform to current business operations.
2. Authorize the Director of the Department of Risk Management as the principal representative and/or Deputy Director as the alternate representative to the California State Association of Counties-Excess Insurance Authority to execute the proposed amendment for the County.
(Presenter: LeAnna Williams, Director, 386-8621)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Pursue County Goals and Objectives by Working with Other Agencies.
FINANCIAL IMPACT
Approval of this item will not result in the use of additional Discretionary General Funding (Net County Cost), as this amendment is non-financial in nature.
BACKGROUND INFORMATION
The recommended amendment to the California State Association of Counties Excess Insurance Authority (CSAC-EIA) Joint Powers Authority (JPA) Agreement will allow the substitution of the new name Public Risk Innovation, Solutions, and Management (PRISM) for the existing name CSAC-EIA, and remove the provision requiring county members to maintain a membership in California State Association of Counties (CSAC). The name change will create a unique identity apart from CSAC and the removal of the membership requirement will not affect the governance of the newly renamed entity. CSAC-EIA also made additional changes to update the Agreement to coincide with current practices and the future vision of the organization. These changes will have no effect on current County operations but may affect future operations as the County may participate in additional insurance programs.
Authorization of the Director of the Department of Risk Management (DRM) and/or Deputy Director to execute the proposed amendment, will allow the appointed representative to cast a vote on behalf of the County, and amend the JPA Agreement in accordance with Article 27, which requires two-thirds vote of the total voting membership.
On March 25, 2014 (Item No. 49), the Board of Supervisors approved a JPA Agreement between the County and CSAC-EIA, allowing the County to join CSAC-EIA as a public entity member, granting eligibility for the County to purchase insurance through its shared limits programs, and appointed the Director of DRM as the County’s principal representative and the Deputy Director as the alternate representative to CSAC-EIA.
CSAC-EIA was formed by CSAC for California counties in 1979. Today, 55 out of 58 counties in California participate in one or more of the CSAC-EIA programs. In 2001, the CSAC-EIA expanded its offerings to other California public agencies. At this point, over 70% of the cities in California participate in one or more of the CSAC-EIA programs, as well as a variety of special districts, school districts, and JPAs. The CSAC-EIA is recognized as the largest public entity property and casualty pool in the United States.
After 40 years of existence, the CSAC-EIA is proposing to change its name to PRISM. The consideration of a name change came at the request of CSAC due to the ongoing confusion over the fact that CSAC-EIA and CSAC are two completely separate entities. In addition, CSAC-EIA offers multiple primary and excess insurance programs and is no longer singularly focused on “excess” programs. The CSAC-EIA is not an insurance company and does not provide “insurance” from a technical standpoint. The County currently participates in the Property, Excess General Liability I, Excess General Liability II, and Excess Workers’ Compensation Programs through CSAC-EIA.
The subject of a name change was discussed with CSAC-EIA’s Executive Committee and various Committee Chairs at a strategic planning retreat in November 2019. Thereafter, the Executive Committee approved moving forward with a name change in consideration of: (1) eliminating confusion by removing “CSAC,” “Excess,” and “Insurance”; and (2) removing “California” as the organization is poised to expand its programs and services to public agencies across the nation. The new name, PRISM, supports the organization’s current and future identity as one of the largest, most successful member-directed risk sharing pools in the nation.
PROCUREMENT
Not Applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Teresa McGowan, Principal Assistant County Counsel, 387-5283) on March 23, 2020; Purchasing Department (Bruce Cole, Supervising Buyer, 387-2148) on March 27, 2020; Finance (Joon Cho, Administrative Analyst, 387-5402) on April 2, 2020; and County Finance and Administration (Kelly Welty, Deputy Executive Officer, 387-4376) on April 2, 2020.