To: County of Sonoma Board of Supervisors
Department or Agency Name(s): Human Resources
Staff Name and Phone Number: Janell Crane - 707-565-2885
Vote Requirement: Majority
Supervisorial District(s): All
Title:
Title
Amendment of CSAC Excess Insurance Authority Joint Powers Agreement
End
Recommended Action:
Recommended action
County of Sonoma Board of Supervisors adopt a resolution approving amendments to the CSAC Excess Insurance Authority Joint Powers Agreement, and authorizing the County’s Risk Manager to execute the amended Joint Powers Agreement.
end
Executive Summary:
The CSAC Excess Insurance Authority (EIA) was formed by and for the California counties in 1979 by the California State Association of Counties (CSAC) and the County of Sonoma joined this JPA (Joint Powers Authority) in September 1979 to procure insurance, casualty coverage, risk pooling, and risk management services.
From time to time the governing document of the JPA has been amended. This new amendment changes the name of the JPA from CSAC-Excess Insurance Authority to Public Risk Innovation, Solutions, and Management (PRISM) in order to avoid confusion with CSAC (a completely separate organization) more accurately reflect the services provided by the current entity, and facilitate expansion outside of California. The amendment also removes the requirement that County members of the JPA also be members of CSAC, and makes other edits that aligns the document with current practices.
Discussion:
The CSAC Excess Insurance Authority (EIA) was formed by and for the California counties in 1979 by the California State Association of Counties (CSAC) under section 6500 et. Seq of the California Government Code. The County of Sonoma formally became a member in September 1979 by Resolution 64492 in order to procure insurance, casualty coverage, risk pooling, and other risk management services. The Joint Powers Agreement requires Counties to appoint a representative to the CSAC-EIA Board of Directors, and amendments to the JPA agreement require approval by two-thirds of member County Boards of Supervisors. Janell Crane - the County of Sonoma’s Risk Manager, is the County’s current director to the CSAC-EIA Board of Directors.
Today, 55 out of the 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 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 (otherwise known as 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 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 our 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 JPA’s 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 into the future. CSAC is aware of this proposed change and has not expressed any concern over it.
The proposed amendments are 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. Each member of the existing JPA has been asked to approve the amendment.
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.
Prior Board Actions:
Various Board actions between 1979 and 2011 authorizing joining the CSAC-EIA, JPA agreement amendments, and appointing County staff to the CSAC-EIA Board of Directors.
Fiscal Summary
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Narrative Explanation of Fiscal Impacts:
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Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
Resolution
Related Items “On File” with the Clerk of the Board:
Summary of Proposed Changes to the Joint Powers Agreement
Redline Version of the Proposed Amended Joint Powers Agreement
Clean Version of the Amended Joint Powers Agreement