Title
Human Resources Department, Risk Management Division, recommending the Board approve payment of the County’s share of PRISM’s liability assessment premium for the 2022-23 program year in the amount of $12,672.
FUNDING: Risk Fund.
Body
DISCUSSION / BACKGROUND
The County is a participating member in PRISM, the JPA (Joint Powers Authority) consisting of public agency members that purchase insurance as a group to pool risk and reduce costs. PRISM provides the County’s General Liability (GL2) coverage. As part of the JPA Agreement, members are responsible for the Program and PRISM funding, which includes the annual premium and potential assessments when large claims exceed the limits of the insurance coverage.
For PRISM’s 2022-23 program year, the GL2 coverage structure included a layer of coverage that would pay up to $10 million after the first $15 million in claims, subject to a $40 million aggregate carrier limit. This means the insurer would not pay more than $40 million for all claims in that part of the coverage during that year.
Several large claims from that year have continued to develop. As of the end of August 2026, the total amount of those claims within the layer exceeded the $40 million aggregate limit by $1.9 million. Amounts above that limit are not recoverable from the carriers providing coverage for the layer. The assessment provides the additional funding needed to address this shortfall.
Because the insurance company will not cover losses above the $40 million limit, PRISM must collect the extra $1.9 million from the agencies that participated in the program that year. Each member pays a share based on how much they originally contributed to the program premiums during the 2022-23 program year. The County of El Dorado’s share of that assessment is $12,672.
ALTERNATIVES
If the Board elects not to authorize payment, finance charges will be incurred at 3.95%.
PRIOR BOARD ACTION
05/19/2026 Legistar file 26-0746 - Approval of PRISM JPA Agreement
07/21/2026 Legistar file 26-1142 - Approval of PRISM Premiums
OTHER DEPARTMENT / AGENCY INVOLVEMENT
N/A
CAO RECOMMENDATION
Approve as recommended.
FINANCIAL IMPACT
There is no impact to the General Fund for this item. The liability assessment premium payment of $12,672 is funded through the Risk Fund.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Joseph Carruesco, Director of Human Resources