Agenda

Return

C. 66

To:	Board of Supervisors
From:	Karen Caoile, Director of Risk Management
Date:	May 12, 2020

Contra

Costa

County

Subject:

Amendment of California State Association of Counties Excess Insurance Authority Joint Powers Agreement

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 05/12/2020

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Karen Caoile (925) 335-1400

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: May 12, 2020
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT Resolution No. 2020/133 approving changes to the California State Association of Counties Excess Insurance Authority Joint Powers Agreement, to reflect the JPA's new name (Public Risk Innovation, Solutions, and Management (PRISM)), and the JPA's expanded risk sharing pool offerings, as recommended by the Director of Risk Management.

FISCAL IMPACT:

No fiscal impact.

CONSEQUENCE OF NEGATIVE ACTION:

The agreement will be out of date with the current and future practices of the organization.

BACKGROUND:

California State Association of Counties (CSAC) Excess Insurance Authority (EIA) was formed by and for the California counties in 1979 by CSAC. Today, 55 out of 58 counties in California participate in one or more of the 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 Joint Power Agreements (JPAs) also participate in EIA Programs. The EIA is recognized as the largest public property and casualty pool in the United Sates.

After 40 years of existence the EIA is proposing to change its name to Public Risk, Innovation, Solutions, and Management (otherwise known as PRISM). The consideration of a name change came at the request of CSAC due to the on-going confusion over the fact that CSAC EIA and CSAC are two completely separate entities. There is additional confusion in the CSAC EIA name as it relates to its current identity. The EIA offers multiple primary and excess programs and is no longer singularly focused on "excess" programs. 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 since 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 JPA Amendment is to substitute the new name for the old one 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 very 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 proposed amendments are an amendment to the existing CSAC EIA Joint Powers Agreement. The existing JPA is not being "rescinded or terminated." The parties to the amended agreement are not entering into an agreement to create a new joint powers agency; rather, the parties are simply amending the existing Agreement.

Since the JPA Agreement was being amended to address the name change and removal of the CSAC membership requirement, the EIA has also made some other amendments to the Agreement to "clean up" the document to coincide with current practices and the future vision of the organization.