Memorandum
Date: April 21, 2026
To: The Honorable Lake County Board of Supervisors
From: Lloyd C. Guintivano, County Counsel
Subject: (a) Presentation of Public Risk Innovation, Solutions, and Management (PRISM) on Casualty Market Cost Drivers and Primary Coverage Changes Related to Risk Management; (b) Consideration of Direction to Staff to Provide Notice to PRISM regarding the County of Lake’s Primary Liability Coverage
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.
As a supplement to the information provided by the Office of the County Counsel at the June 24, 2025 budget hearing and the January 27, 2026 governance workshop, Gina Dean (Chief Executive Officer for PRISM) and Scott Schimke (Executive Director of Golden State Risk Management Authority) shall present an overview of the County of Lake’s participation in PRISM, which is a member directed risk sharing pool serving California public agencies, as well as anticipated changes in the County third-party liability coverage under this risk sharing pool.
As part of this presentation, PRISM shall present options for the County to transition out of PRISM’s primary liability coverage in light of the PRISM Board’s determination to eliminate this coverage for the participating counties.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☒ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☐ Well-being of Residents ☒ Public Safety ☒ Disaster Prevention, Preparedness, Recovery
☐ Economic Development ☐ Infrastructure ☐ County Workforce
☐ Community Collaboration ☒ Business Process Efficiency ☐ Clear Lake
Recommended Action:
(a) Presentation, and consider further direction to staff as appropriate.
(b) Direction to provide PRISM notice of the following: (1) the County of Lake’s potential withdrawal from PRISM’s GL1 Program effective July 1, 2026; (2) the County of Lake shall consider joining the Golden State Risk Management Authority as of July 1, 2026 in order to maintain primary liability coverage; and (3) the County of Lake shall inform PRISM of the County of Lake’s final decision prior to June 30, 2026.