The Fullerton City Council is scheduled to consider a resolution on its June 2 consent calendar that would begin the process of withdrawing from the Independent Cities Risk Management Authority (ICRMA), a municipal insurance pool the city has been a member of for more than three decades.

According to a staff report, Fullerton has participated in ICRMA since 1993, obtaining liability coverage and risk management services through the joint powers authority. However, city officials say changing market conditions and a significant decline in the pool’s membership have prompted a reassessment of whether continued participation remains the most cost-effective option.

ICRMA’s membership has fallen from a high of 35 cities to 12. As membership has declined, the remaining agencies have faced higher premiums and increased administrative costs for maintaining the pool. Additional departures are expected in the coming years. The cities of Glendora and El Segundo are scheduled to leave ICRMA effective July 1, 2026. Huntington Park, Lynwood, and San Fernando have also submitted notices of intent to withdraw effective July 1, 2027.

City staff reports that Fullerton is conducting a comprehensive review of its insurance and risk management portfolio to evaluate alternatives, including participation in other public agency risk-sharing pools and commercial insurance options. The questions are: why has the city staff not explored alternatives and their costs before suggesting a withdrawal? Why is there no presentation on alternatives that demonstrate cost-effectiveness?

The resolution before the council would not immediately remove Fullerton from ICRMA. Instead, it would provide the city with the option to withdraw when the current agreement expires on June 30, 2027. Under the ICRMA bylaws, member agencies must submit a formal resolution of intent to withdraw by June 30, 2026, to preserve that option.

If approved, the city would retain the ability to reverse course. Fullerton could rescind its notice of intent by December 1, 2026, if the ongoing study determines that remaining in ICRMA is in the city’s best financial and operational interest.

The item is listed on the June 2 City Council consent calendar, a portion of the agenda typically reserved for routine matters that are approved collectively without discussion. Unless a council member requests that the item be pulled for separate consideration, the resolution could be approved without public discussion during the meeting.
The council meeting is scheduled for Tuesday, June 2, at Fullerton City Hall, 303 West Commonwealth Avenue, Fullerton.