Public Entity Risk Management Authority

The primary focus of this meeting was the feasibility and recommendation for establishing a captive insurance company, domiciled in Utah, intended to fund the liability and workers' compensation program retentions. Key discussion points included the estimated start-up costs of approximately $61,000 and first-year operating costs of $150,000 to $180,000, contingent on whether one or both programs were included. The committee received direction regarding captive development and was presented with Option 1 (Liability only) and Option 2 (Liability and Workers' Compensation) funding requirements. Other agenda items included a recap of strategic planning which involved revising the Mission and Vision statements, an update on captive formation feasibility confirming it is viable, an update on the Liability Program and market conditions, the approval of adding several attorneys to the Liability Defense Panel, a decision to commence the City of Victorville's Member Retained Limit increase on July 1, 2026, adoption of revisions to the Cost Allocation Methodology Policy, updates on property appraisals, and a review of the Workers' Compensation claims audit results. The committee also reviewed the successful sale of PERMA property located at 36-951 Cook Street, Palm Desert, which closed in December 2025.

The agenda for the meeting included calls to order, establishment of quorum, approval of the agenda, and time set aside for public and member comments. The consent calendar covered the approval of the December 4, 2025 Minutes, investment reports, quarterly trust reports, financial statements, treasurer's report, member perception survey results, cost allocation policy revisions update, sale of PERMA property, 2025 Annual Report, and property appraisal update. Key action/discussion items focused on the PERMA Year in Review, PRISM Services, Strategic Planning Recap, approval for the creation of a captive insurance company, Liability Program and Market Update, and 2026-27 Budget Guidance. The Board meeting minutes from December 4, 2025, detailed several actions including the election of Executive Committee members, appointment of Treasurer and Auditor, review of the state of the insurance market, acceptance of audited financial reports, review of investment portfolio performance, review of Target Equity Ratio results, and approval of funding and confidence levels for the 2026-27 Actuarial Funding Studies for the Liability and Workers' Compensation Programs. Further actions included setting funding rates and adding a $25,000 member retained limit (MRL) for the Property Program, and setting funding rates and adding a $25,000 MRL for the Auto Physical Damage Program. The Board also approved the addition of a $325,000 MRL in the workers' compensation program and specific MRL increases in the liability and workers' compensation programs based on member utilization studies. Direction was given to staff regarding the analysis of Employment Practices Liability (EPL) coverage options and next steps concerning the ERMA agreement. The Executive Committee's decision to credit members for excess liability insurance premiums was ratified. Updates were provided regarding the 'Protecting Public Funds' project, the in-house transition of liability claim handling and the implementation of the Origami system, and ongoing partnership work addressing dangerous conditions and law enforcement exposures. Finally, the 2025 Risk Management Award recipients were announced.

The Executive Committee meeting agenda covered several key items. Discussions and actions included the establishment of a quorum, approval of the agenda, and public comments. Under the consent calendar, approval was sought for the minutes of December 4, 2025, and action was directed regarding the Liability Program's Extreme Weather Event (12/23/2025 -- 1/13/2026). Major action/discussion items involved the annual election of the President and Vice President, strategic planning coordination, consideration of the City of Victorville's request to delay its Liability Member Retained Limit increase, review of the PERMA Year in Review, approval for additions to the Liability Defense Panel, adopting revisions to the Cost Allocation Methodology Policy, liability program coverage updates, adoption of property value trend factors, review of Workers' Compensation Litigation Procedures, filing results of the Excess Workers' Compensation Claims Audit, and filing the sale of PERMA property. The committee also held a closed session to discuss legal claims and anticipated litigation.

The Public Entity Risk Management Authority (PERMA) is a member-directed organization dedicated to providing financially secure, stable, and cost-effective coverage programs and risk management services for its members. Its vision is to protect members from risk by elevating awareness, empowering informed decisions, and ensuring financial security. The Authority operates based on core values that include fostering authentic partnerships, leveraging shared experience, driving innovation through resourcefulness, upholding integrity with mindfulness, and demonstrating resilience and adaptability in a changing environment.

The meeting included discussions and actions on several key items. The Alliant broker fees were reviewed, and a two-year contract extension was approved with flat fees for 2026-27 and 2027-28 placements. A member retention study was conducted to analyze member retained limits for Liability and Workers' Compensation Programs, with potential increases identified for certain members. The Liability Program Settlement Authority Levels Policy was reviewed and approved. The committee also discussed first-party claim handling services and approved the concept of performing these in-house. Risk Management Award winners for 2025 were selected. Additionally, the Executive Committee entered a closed session to discuss real property negotiations.