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Consent-General Government # 10.
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| Board of Supervisors |
County Administrator |
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| Subject |
| Adopt resolution authorizing participation in the Employment Risk Management Authority (ERMA). (No general fund impact) (Cook) |
| Recommended Action |
| Adopt resolution authorizing participation in the Employment Risk Management Authority (ERMA). |
| Strategic Plan Goal(s) |
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In Support of All Goals (Internal Departments Only) |
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County Mandated Service |
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| Reason for Recommended Action/Background |
The County participates in the Yolo County Public Agency Risk Management Authority (YCPARMIA) along with numerous other public agencies in Yolo County for purposes of providing oversight, administration, and pooling for various insurance programs. As a best management practice, the coverage through YCPARMIA funds claims up to a self-insured retention amount. For claims over that amount, YCPARMIA member agencies belong to an Excess Liability Joint Powers Authority. To ensure the best value and coverage for members, YCPARMIA recently changed providers for this excess liability coverage. The new provider does not cover claims arising out of employment related liabilities such as employee harassment or discrimination.
Possible costs of investigation and litigation (exposure) for employment law matters can be prohibitive to an employer and is best addressed through a pooling of resources and coordinated effort towards ensuring best management practices are followed to avoid claims.
The Board of YCPARMIA has approved an intention to join the Employment Risk Management Authority (ERMA) JPA for coverage related to employment law matters. Completing this enrollment requires each member agency to adopt a resolution.
ERMA has been providing employment law risk management coverage for over twenty years and is currently comprised of 11 JPA’s members and 2 individual members. Assets as of 3/3/20 were $30,458,550 with expected liabilities of $18,809,475. YCPARMIA’s self-insured retention level is set to $500,000, with ERMA providing excess coverage up to $2.5million. Funding is maintained at the 80% confidence level.
Participation in ERMA includes access to employment law trainings (67 trainings conducted in California for FY20/21), Employee Protection Line as an option for reporting wrongdoing (confidential reporting tool), access to training courses in compliance with AB1825, AB1234, and SB1343 (harassment and discrimination training), access to one hour per month legal consultation from either Liebert Cassidy Whitmore or Jackson Lewis public sector employment law firms, an objective and qualified investigation panel, and an approved and experienced defense panel to handle claims.
ERMA Loss Preventions services are designed to minimize the EPL exposures of members. These services include: Live and online training with focus on employment-related topics and sexual harassment prevention and response which meet California State mandated training requirements.
Obligations of Membership in ERMA:
- The YCPARMIA Executive director will become a Member of the ERMA Board of Directors
- There is a 3-year Membership commitment to ERMA. However, if a Member of YCPARMIA were to terminate membership in YCPARMIA, then they would no longer be qualified as a member of ERMA and would be terminated. The member would then have an opportunity to join ERMA on an individual basis, if desired. As with YCPARMIA a member of ERMA would have continuing financial obligations for the years in which they participated until those years are closed. [Note that language in the attached resolution clearly states Yolo County is not accepting the three-year membership commitment, thus preserving its ability to individually withdraw.]
- To cooperate in management of claims with YCPARMIA and ERMA
- ERMA like CJPRMA and CARMA has the right to settle any claim in excess of the YCPARMIA retained limit up to the ERMA Limit of Liability
- To comply with ERMA training requirements
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| Collaborations (including Board advisory groups and external partner agencies) |
| YCPARMIA, County Counsel |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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