DATE: May 26, 2020
TO: Board of Supervisors
SUBMITTED BY: Paul Nerland, Director of Human Resources
SUBJECT: Amendment of CSAC Excess Insurance Authority Joint Powers Agreement
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute the amended CSAC Excess Insurance Authority, now called the Public Risk Innovation, Solutions and Management (PRISM), Joint Powers Agreement.
REPORT
There is no Net County Cost associated with the recommended action. The amended Joint Powers Agreement (JPA) will amend the existing CSAC Excess Insurance Authority (EIA) JPA, to rename the joint powers agency created by the joint powers agreement from CSAC EIA to the PRISM. Additionally, the amended JPA removes the CSAC membership requirement. This item is countywide.
ALTERNATIVE ACTION(S):
The Board may choose not to approve the JPA Amendment.
FISCAL IMPACT:
There is no Net County Cost associated with this amendment.
DISCUSSION:
CSAC Excess Insurance Authority (EIA) was formed by and for the California counties in 1979 by the California State Association of Counties (CSAC). Today, 55 out of 58 counties in California participate in one or more of the CSAC EIA programs. In 2001, the 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 EIA programs. In addition, a variety of special districts, school districts, and JPAs also participate in EIA programs. The EIA is recognized as the largest public entity property and casualty pool in the United States.
After 40 years of existence, the EIA is proposing to change its name to Public Risk Innovation, Solutions, and Management (PRISM). The consideration of a name change came at the request of CSAC (California State Association of Counties) due to the on-going confusion over CSAC EIA and CSAC being two separate entities. There is additional confusion in the CSAC EIA name as it relates to their current identity. The EIA is not an insurance company and does not provide “insurance” from a technical standpoint.
The subject of a name change was discussed with the 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, and staff and a sub-committee of Executive Committee members were tasked with coming up with a new name. Some points that were at the forefront of the discussions regarding a new name include: (1) removing confusion by eliminating “CSAC,” “Excess,” and “Insurance” from the name; and (2) taking California out of the name as the organization is poised to expand its programs and services to public agencies across the nation. The new name, Public Risk Innovations, Solutions, and Management (PRISM), will support the organization’s current and future identity as one of the largest, most successful member-directed risk sharing pools in the nation.
The main purpose of the proposed amended JPA is to replace the old name of the joint powers agency with the new name throughout the document. One other notable change is that the provision that county members must maintain their membership in CSAC is being removed. This will help the organization create a unique identity apart from CSAC. The removal of this requirement does not affect the governance of the EIA in any way. The EIA’s relationship with CSAC is good and its desire is to continue to foster a very strong and collaborative relationship with CSAC going forward. CSAC is aware of this proposed change and has not expressed any concern over it.
The parties to the JPA intend for this amended JPA to amend the existing CSAC EIA joint powers agreement, to rename the joint powers agency created by the joint powers agreement from CSAC EIA to the PRISM. Additionally, this amended JPA removes the CSAC membership requirement and makes several “clean-up” amendments necessary to be consistent with current practices and the future vision of the joint powers agency.
REFERENCE MATERIAL:
BAI #44, February 28, 2006
BAI #49, September 27, 2005
BAI #28m, February 8, 2000
BAI #30G, November 5, 1996
BAI #37j, January 10, 1989
BAI #25, July 1, 1986
BAI #79-1884, August 14, 1979
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - JPA Amendment 2020
CAO ANALYST:
Yussel Zalapa