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Approve an amendment to the Public Risk Innovation, Solutions, and Management (“PRISM”) Joint Powers Agreement to revise governance structure and expand public entity representation; and Delegate authority to the County Administrator to execute the amendment and any subsequent amendments, with County Counsel concurrence, up to an aggregate of $74,999 per fiscal year
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Published Notice Required? Yes ____ No _X _
Public Hearing Required? Yes ____ No _X _
DEPARTMENTAL RECOMMENDATION:
The Office of County Counsel recommends the Board of Supervisors:
1. Approve an amendment to the Public Risk Innovation, Solutions, and Management (“PRISM”) Joint Powers agreement to revise governance structure and expand public entity representation; and
2. Delegate authority to the County Administrator to execute the amendment and any subsequent amendments, with County Counsel concurrence, up to an aggregate of $74,999 per fiscal year
SUMMARY:
PRISM, established in 1979 by the California State Association of Counties (CSAC), was originally formed to serve California counties. Today, 54 of the 58 counties participate in one or more PRISM programs. Since expanding eligibility in 2001, PRISM has also grown to include a broad range of public agency members, including over 70% of California cities, as well as special districts, school districts, and joint powers authorities. PRISM is now the largest public entity property and casualty risk pool in the United States.
In recognition of this growth and the significant role public entity members play in the organization, PRISM is proposing updates to its governance structure and Joint Powers Authority (JPA) Agreement. Public entity members have participated in PRISM for over 20 years, contribute approximately half of the organization’s annual funding, and actively serve on committees; however, their representation in governance has not kept pace. The proposed amendment updates the composition of the Board of Directors and Executive Committee, and revises additional language to reflect current practices.
FINANCIAL IMPACT:
There is no cost associated with the amendment.
DISCUSSION:
Board of Directors Composition
Currently, the PRISM Board of Directors consists of 61 voting members: 54 county representatives and 7 public entity representatives (with three alternates for the public entity seats). The proposal would increase public entity representation by adding 10 additional voting seats, bringing the total to 17 public entity members (plus three alternates) and 71 total voting members. Under this structure, counties would retain approximately 76% of the voting authority.
Executive Committee Composition
The Executive Committee, which oversees the day-to-day operations of PRISM, currently consists of 11 members. The proposal would expand the committee to 13 members and add two alternates. Members of the Executive Committee continue to be elected by the Board of Directors.
JPA Agreement Updates
Additional amendments to the JPA Agreement are proposed to:
1. Reflect current organizational practices and operations.
2. Support expanded governance participation by public entity members.
3. Remove references to “insurance” to accurately reflect PRISM’s status as a risk-sharing pool rather than an insurance provider.
These proposed changes were initially discussed during a strategic planning retreat in November 2022 with the Executive Committee and committee leadership. Following that discussion, the Executive Committee directed the Governance Subcommittee to develop recommended amendments. The proposed changes were subsequently reviewed by both the Executive Committee and the Board of Directors.
ALTERNATIVES:
The Board could choose not to sign the amendment and the County would need to find alternatives for coverages outside the JPA.
OTHER AGENCY INVOLVEMENT:
None
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION