TO: Board of Supervisors
FROM: Ryan J. Alsop, Chief Executive Officer
REPORT BY: Becky Craig, Assistant Chief Executive Officer
SUBJECT: PRISM JPA and MOUs
RECOMMENDATION
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Adopt a Resolution approving a Joint Powers Agreement with Public Risk Innovation, Solutions and Management (PRISM) to revise the governing structure, and authorize and approve three Memorandums of Understanding to provide for supplemental risk pool services. (No Fiscal Impact)
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BACKGROUND
Napa County was a founding member of California State Association of Counties - Excess Insurance Agency (“CSAC EIA”) in 1980 and has been a voting member of the governing board and various committees for forty-six years. CSAC EIA rebranded to PRISM in 2020 to reflect the organization’s broader membership and services. In addition to 54 of 58 counties participating as members, hundreds of California cities, school districts and special districts pool their liability exposure and leverage greater buying power.
The Joint Powers Agreement revision in 2020 expanded the Board of Directors to allow non-county representation, giving 7 seats on the Board. New amendments to the JPA are proposed to, among other changes, increase the representation of non-county public entities on the Board of Directors. All 54 county members will retain seats, but the public entity seats will increase from 7 to 17, plus three alternates.
The Board’s primary functions are to elect Executive Committee members and approve the annual budget. The Executive Committee reviews and approves memorandums of coverage, retention and reinsurance policies, and premium allocations for the Excess Workers Compensation and General Liability programs. This proposed revision also expands the Executive Committee from 11 members to 13 plus two alternates and opens eligibility to all board members regardless of entity type. The current Board and Executive committee members, comprised of a super majority of county representatives, support the proposed revisions to the JPA to provide equity and to broaden the pool of committee candidates. Staff recommend approval of the proposed JPA.
In addition to the JPA, staff recommends approval of three program memoranda. Napa County has participated in three supplemental coverage programs by annual contract - Cyber, Master Crime, and Pollution. These programs have historically been considered “minor programs” under the JPA, but will be recategorized as simply “programs,” without distinction from the larger coverage programs like Workers Compensation and General Liability. To reflect this, the PRISM Board approved the proposed MOUs for programs, rather than relying on annual contracts. Staff recommend approval of the three MOUs to continue benefiting from PRISMs buying power.
Requested Action: Adopt a Resolution approving the Joint Powers Agreement and authorize and approve three Memoranda of Understanding with Public Risk Innovation, Solutions and Management (PRISM) for risk pool services.
FISCAL IMPACT
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Is there a Fiscal Impact? |
No |
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Discretionary Justification: |
The County continues to receive PRISM pool services. |
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Consequences if not approved: |
The County will either reduce coverage or mitigate excess liability exposure through the open market or another JPA. |
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Additional Information |
2025-2030 Strategic Initiative: Practice transparent, efficient, and data-driven financial management that models public trust and accountability. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.