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Council authorizes switch to PRISM risk pool after negotiating reduced exit fees to ICMA
Summary
Following a yearlong review, council authorized the city to withdraw from ICMA-run coverage and join PRISM effective July 1; staff said PRISM offers broader property and crime coverage and estimated a PRISM premium near $2.83 million (subject to underwriting) while negotiated ICMA exit fees total about $118,617 paid over three years.
The City Council approved membership and related agreements to join PRISM, a public-agency risk pool, after staff presented a comparative analysis of insurance coverage and projected premium changes.
Deputy City Manager Marie Ritchie said PRISM would substantially increase property coverage (PRISM'quoted $1.3 billion versus the city's prior $250 million property limit) and raise employer'liability and crime limits; PRISM quotes an estimated $2.83 million premium for the combined program, subject to final underwriting. Staff also said the city negotiated exit fees to ICMA authorities down to about $118,617 payable over three years rather than the earlier estimate of $350,000.
Ritchie said the city had previously increased its self-insured retention (deductible) from $250,000 to $2 million, which lowered this year's premium exposure and freed funds for capital maintenance. Councilmembers said the change offered broader protection and administrative resources through a larger member base; the council approved PRISM membership and delegated authority to the city manager to execute the joint powers agreement and memoranda of understanding for the liability and excess workers'compensation programs, effective July 1.
Questions about final underwriting remain; staff said they would return any final policy documents after completing PRISM's underwriting process.
