Title
Chief Administrative Office, Risk Management Division, recommending the Board authorize the Chair to sign a letter to California State Association of Counties Excess Insurance Authority (EIA) opposing the elimination of the Public Entity Participation Fee of one-half percent as a requirement of membership for members other than counties.
FUNDING: There is no change to Net County cost.
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Fiscal Impact/Change to Net County Cost
With the possible elimination of these fees, El Dorado County would lose approximately $3,600 per year in risk management subsidy funds. There is no change to Net County cost.
Background
El Dorado County has been a member of EIA since 1992. Like many California counties, El Dorado County sought membership in the EIA based on the original intent that it was established to serve the needs of California counties. Today 54 out of the 58 counties participate in one or more of the EIA insurance programs.
In 2001, EIA formed the California Public Entities Insurance Authority (CPEIA), a separate Joint Powers Authority (JPA), to allow public entities access to the EIA’s insurance programs and services. A contractual agreement between the EIA and CPEIA was developed, the purpose of which was to provide for greater flexibility to the counties as well as mutually benefit both the membership of the EIA and CPEIA. The hope was that all members would benefit from the larger volume that would result in lower costs, greater stability and lower administrative fees. By increasing membership, the EIA would be able to retain more risk and transfer less to the commercial insurance market. The CPEIA Board had full authority to act on behalf of the public entity membership, but had no authority in matters relating to the operation and administration of the EIA programs. The EIA retained sole authority with regard to all matters, including underwriting and rating decisions affecting both the counties and public entities.
In 2006, the EIA el...
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