Memorandum
Date: June 9, 2026
To: The Honorable Lake County Board of Supervisors
From: Lloyd C. Guintivano, County Counsel
Subject: Consideration of Agreement for Admission of New Member to the Golden State Risk Management Authority, the Joint Exercise of Powers Agreement for Providing Liability Workers’ Compensation, Property and Other Coverages, and the Golden State Risk Management Authority Bylaws
Executive Summary:
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. PRISM is recognized as the largest public entity property and casualty pool in the United States.
On April 21, 2026, staff, in coordination with PRISM provided a presentation on Casualty Market Cost Drivers and primary general liability coverage changes effective July 1, 2026 for the County. Pursuant to prior Board direction, staff provided notice to PRISM of the following: (1) the County’s potential withdrawal from PRISM’s GL1 Program effective July 1, 2026; (2) the County’s consideration to obtain membership to the Golden State Risk Management Authority (GSRMA) as of July 1, 2026 in order to maintain primary liability coverage; and (3) the County taking action regarding this proposed membership prior to June 30, 2026.
In reviewing the proposed membership into GSRMA, staff considered alternatives, including entering into a separate contract with the County’s current Third Party Administrator (Carl Warren) with the County assuming a self-insured retention of $100,000 or more. GSRMA provided the latest estimated contribution comparison between GSRMA and PRISM:
With the anticipated additional administrative fee/s charged by Carl Warren under a separate contract, staff estimates that the total costs for a self-insured retention would be higher than GSRMA’s proposal, which have built-in third party administrator costs as part of the contribution amount.
Staff has also reviewed Agreement for Admission of New Member to the Golden State Risk Management Authority document, which, upon execution, would have the County approve the Joint Exercise of Powers Agreement for Providing Liability Workers’ Compensation, Property and Other Coverages, and the Golden State Risk Management Authority Bylaws. Presently, the Bylaws designates two (2) members from the boards of supervisors of County Member Agencies as part of the 7-member governing board. In anticipation of having three counties (Glenn, Siskiyou, and Lake) being members, GSRMA expects to bring changes to the Bylaws (especially related to board representation by county members), the election timeline, and any other policy changes related to having more than one county in the GSRMA risk pool, to the GSRMA Board at their September 2026 meeting. Except as otherwise permitted by the GSRMA Board, any member may withdraw at the end of a fiscal year upon a twelve-month written notice of intent to withdraw to GSRMA. Also, the GSRMA has the right to cancel any member agency’s participation upon a two-thirds vote of the Board.
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Recommended Action:
Approve the Agreement for Admission of New Member to the Golden State Risk Management Authority, the Joint Exercise of Powers Agreement for Providing Liability Workers’ Compensation, Property and Other Coverages, and the Golden State Risk Management Authority Bylaws. Presentation, and authorize the Chair to sign the Agreement for Admission of New Member to the Golden State Risk Management Authority.