March 17, 2026
Human Resources
DATE: March 17, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager
Sharrone Taylor, Director of Human Resources
Subject:
Contract Amendment No. 1 with Prime Actuarial
Consulting for Risk Management Actuarial Services and
Consultation
FINANCIAL IMPACT: The proposed contract amendment of $7,600 covers the cost of actuarial reports for fiscal year (FY) 2025-2026 and FY 2026-2027 and is included within the approved
FY 2025-26 Risk Management Insurance Fund budget
(Account String: 50182216-400201).
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The City retains independent third-party administrators (TPAs) to adjust and manage claims for both Liability and Workers’ Compensation programs. An annual actuarial
evaluation is required to determine reserve adequacy,
project future losses, and ensure financial reporting
compliance. City Council’s approval is required to amend the contract.
RECOMMENDED ACTION:
APPROVE the first contract amendment with Prime
Actuarial Consulting for the preparation of actuarial
reports for Fiscal Years 2025–2026 and 2026–2027,
increasing the payment limit by $7,600 for a new total
payment limit of $17,100, and extending the term
expiration through June 30, 2027- Human Resources
Department – (Nickie Mastay/Sharrone Taylor 510-620-
6602).
AGENDA
REPORT
March 17, 2026
DISCUSSION:
The City of Richmond operates a self-insurance program to manage its liability exposures, which include General Liability, Auto Liability, Employment Practices Liability, and Workers’ Compensation. The City secures excess coverage for these programs through the California Joint Powers Risk Management Authority (CJPRMA).
For Workers’ Compensation, the excess coverage is provided by the Public Risk Innovation, Solutions, and Management (PRISM). Independent third-party administrators (TPAs) are engaged to handle and manage claims for both General Liability and Workers’ Compensation programs.
Each year, the City engages actuarial experts to prepare detailed reports for its self- insurance programs: General & Auto Liability, Employment Practices Liability, and Workers’ Compensation. The primary goal of these actuarial services is to determine, with accuracy and objectivity, the loss reserves necessary to cover all outstanding and unpaid liabilities. These figures are critical for the City’s annual financial statements and related disclosures, ensuring compliance with Governmental Accounting Standards Board (GASB) Statement No. 10. The actuarial reports provide estimates of outstanding losses, including allocated loss adjustment expenses (ALAE), and offer analyses of loss trends and development patterns for each coverage line.
The City has partnered with Prime Actuarial for several years and currently maintains an active contract with the agency for actuarial services. The City has been highly satisfied with the quality and reliability of Prime Actuarial’s work. To ensure continued excellence and timely completion of reports for Fiscal Year 2025-26 and Fiscal Year 2026-27, the City seeks to amend the contract by adding funds and extending the term.
DOCUMENTS ATTACHED:
Attachment 1 – Original Contract
Attachment 2 – Amendment to the Contract