HomeMy WebLinkAbout2026-07-21; City Council; 01; Purchase of Excess Workers’ Compensation Insurance for Policy Year 2026-2027CA Review JRT
Meeting Date:
To:
From:
Staff Contact:
kierstyn.yaross@carlsbadca.gov, 760-814-4288
Sarah Reiswig, Risk Manager
sarah.reiswig@carlsbadca.gov, 442-200-4718
Subject:
2026-2027
Districts:
Recommended Action
Adopt a resolution authorizing the purchase of excess workers’ compensation insurance
through Safety National Casualty Corporation for policy year 2026-27 for $356,851.
Executive Summary
Safety National Casualty Corporation has been the city’s excess workers’ compensation
insurance carrier since policy year 2007-08. The city is self-insured for all employees' workers’
compensation claims of up to $1.5 million. This insurance would cover claims that exceed that
amount.
Based on the city’s successful history with Safety National Casualty Corporation and the
acceptable quote, staff recommend renewing its policy with the insurer. The policy period will
run from Aug. 1, 2026, to July 31, 2027, and the annual premium is estimated to be $356,851.
Carlsbad Municipal Code Section 3.28.040(D)(1) requires this renewal to be approved by the
City Council because the cost will exceed $250,000 per agreement year.
Fiscal Analysis
The policy year 2025-26 rate was $0.3414 per every $100 in payroll. The policy year 2026-27
rate will increase to $0.3484 per $100 in payroll. The overall premium for policy year 2026-2027
is estimated to be $356,851, based on current payroll data. The carrier will invoice final costs
after auditing actual payroll expenses at the end of the policy year. Sufficient funds have been
requested in the fiscal year 2026-27 budget for this premium.
Next Steps
With the City Council’s approval, staff will complete all necessary administrative actions to
renew the insurance.
July 21, 2026 Item #1 Page 1 of 4
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Environmental Evaluation
The proposed action is not a “project” as defined by California Environmental Quality Act, or
CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require
environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal
activity and does not involve any commitment to any specific project which may result in a
potentially significant physical impact on the environment. The activity or projects for which
this budget is intended to fund may require preparation of an environmental document in
accordance with CEQA and CEQA Guidelines.
Exhibit
1.City Council resolution
July 21, 2026 Item #1 Page 2 of 4
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Exhibit 1
RESOLUTION NO. 2026-151
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE PURCHASE OF EXCESS WORKERS’
COMPENSATION INSURANCE THROUGH SAFETY NATIONAL CASUALTY
CORPORATION FOR POLICY YEAR 2026-27 FOR $356,851
WHEREAS, the City Council of the City of Carlsbad, California, desires to purchase excess
workers’ compensation insurance through Safety National Casualty Corporation; and
WHEREAS, HUB International has negotiated the purchase of excess workers’ compensation
insurance through Safety National Casualty Corporation for the period beginning on August 1, 2026,
and concluding on July 31, 2027.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1.That the above recitations are true and correct.
2. That this action is not a “project” as defined by California Environmental Quality Act, or
CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require
environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government
fiscal activity and does not involve any commitment to any specific project which may
result in a potentially significant physical impact on the environment.
3.That the purchase of excess workers’ compensation insurance through Safety National
Casualty Corporation, effective August 1, 2026, to July 31, 2027, is approved and the City
Manager or designee is authorized to direct the Deputy City Manager, Administrative
Services, to issue a warrant in an amount estimated to total $356,851 for payment of
the premium to Safety National Casualty Corporation.
4.That the City Manager or a designee is authorized to execute any documents necessary
to implement the purchase.
July 21, 2026 Item #1 Page 3 of 4
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City
of Carlsbad on the 21st day of July, 2026, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
______________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
July 21, 2026 Item #1 Page 4 of 4
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