To: Board of Supervisors
From: Susan Brajkovic, Director of Risk Management
Report Title: Amendment of Public Risk Innovation, Solutions, and Management Joint Powers (“PRISM”) Agreement
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ADOPT resolution to approve and authorize the County’s designated Primary and/or Alternate Public Risk Innovation, Solutions, and Management (PRISM) Board members to execute the proposed amendment to the PRISM Joint Powers Agreement.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND:
Public Risk Innovation, Solutions, and Management (PRISM) is recognized as the largest public entity property and casualty pool in the United States. PRISM was formed by and for the California counties in 1979 by the California State Association of Counties (CSAC). Today, 54 out of the 58 counties in California participate in one or more of the PRISM programs. In 2001, PRISM 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 PRISM programs. In addition, a variety of special districts, school districts, and JPAs also participate in PRISM Programs.
After 25 years of having public entity members participate in PRISM, the members of PRISM have proposed to update the composition of the Board of Directors to recognize the partnership that the counties have with the public entity members. At present, the PRISM Board of Directors is composed of 54 county members (all county members have a voting position on the Board of Directors) and seven public entity voting spots for a total of 61 voting members. There are also three alternates for the public entity votes, but they only stand in place of the seven voting spots and not in addition to. The proposal is to add 10 additional voting public entity board seats so that the total number of public entity voting seats will be 17 (with three additional alternates) instead of seven (with three additional alternates). This results in a total of 71 voting Board of Directors seats. Under this proposal, the counties will have a total of 76% of the total voting Board of Director seats.
In addition, the PRISM members have also proposed to update the composition of the Executive Committee which oversees the day-to-day activities of the organization. Currently, the executive Committee has 11 members, and the proposal is to increase the number to 13 with an additional two alternates. The Executive Committee members are elected by the Board of Directors. The other changes that are proposed are updates to the Agreement that reflect the current operations of the organization and remove the word insurance from the document since the organization is a pool, not insurance.
These proposed changes were discussed with PRISM’s Executive Committee and various Committee Chairs at a strategic planning retreat in November 2022. The discussion largely centered around the idea that public entities have been members of the organization since 2001, have participated in governance of the organization by serving on PRISM Committees, and approximately 50% of the contributions made to PRISM each year are from the public entity members while the other 50% is from counties. It was felt by the group that the organization should reconsider the size and function of the Board of Directors, including what it delegates to others and whether to eliminate the distinction between counties and public entity members in the governance process. The composition of the Executive Committee was also discussed.
The Board of Supervisors originally authorized the Joint Powers Agreement creating the CSAC Excess Insurance Authority, now known as PRISM, on October 5, 1979 (item number unavailable). The Board amended the Agreement on May 12, 1980 (item number unavailable); on March 3, 1987 (1-058); on November 29, 1988 (1-103); on May 4, 1993 (1-53); on November 18, 1996 (item number unavailable); on May 18, 2004 (C.16); and on May 12, 2020 (C.66).
CONSEQUENCE OF NEGATIVE ACTION:
The agreement will be out of date with the current and future practices of the organization.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
RESOLUTION NO.
IN THE MATTER OF AN AMENDMENT TO THE PUBLIC RISK INNOVATION, SOLUTIONS, AND MANAGEMENT JOINT POWERS AUTHORITY AGREEMENT
WHEREAS, Contra Costa County is a voting member of the Public Risk Innovation, Solutions, and Management (“PRISM”) Board of Directors and PRISM has proposed amendments to the Joint Powers Authority Agreement; and
WHEREAS, the proposed changes include an amendment to the number of voting members of the Board of Directors and a change in the number of members serving on the Executive Committee; and
WHEREAS, additional changes to the Agreement have been made to conform to the current business operations and update terminology;
NOW, THEREFORE, BE IT RESOLVED the Board of Supervisors approves the amendments to the PRISM Joint Powers Agreement and authorizes the County’s primary and/or alternate Board Member to execute the amended Joint Powers Agreement.
The foregoing resolution was adopted on motion by Supervisor ______________, and seconded by Supervisor ___________________, at a regular meeting of this Board of Supervisors held on __________________________, by the following vote:
ATTESTED
Monica Nino, County Administrator
Contra Costa County, State of California