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HomeMy WebLinkAbout2004-06-22; City Council; 17684; Excess Workers' Compensation Benefits Renewaln a a a a w 6 Z 0 F 0 U =! 0 z 3 0 0 \B # 17,684 HTG. 6/22/04 EPTF CITY OF CARLSBAD - AGENDA BILL. f@J TITLE: RENEWAL OF EXCESS WORKERS’ COMPENSATION BENEFITS DEPT. HD. CITY ATTY CITY MGR. % 3ECOMMENDED ACTION: Approval of Resolution No. 2004-212 authorizing the renewal of Excess Workers’ Compensation Insurance coverage in accordance with staff’s recommendation at a premium of $159,300. ITEM EXPLANATION: The current excess Workers’ Compensation Insurance Policy expires on June 30,2004. Coverage will be continued pending Council action on the current proposal. This policy provides for loss coverage which exceeds the City’s self-insured retention level up to $25,000,000 per occurrence. Cal-Surance, the City’s insurance broker, obtained renewal quotes from two carriers (see Exhibit 2). The renewal quotes for annual premiums ranged from $159,300 to $198,053. Based on these quotes, staff recommends renewing its policy with Continental Insurance Company. The renewal premium is $159,300, which is higher than last year’s premium of $122,250. The City’s Self Insurance Retention (SIR) will remain at $1,000,000 for each claim. The increase to the premium is due to: 1) nation-wide losses experienced by workers’ compensation insurance providers, 2) an increased concern by insurance providers regarding large costs due to a higher concentration of employees in one worksite and 3) mandatory increases to the Workers’ Compensation benefits. FISCAL IMPACT: The recommended renewal quotation for one year is $159,300. This premium may be subject to an additional surcharge of $2,950 by the California Insurance Guaranty Association. Sufficient funds have been budgeted in the 2004/05 operating budget adopted June 22,2004. EXHIBITS: 1. Resolution No. 2o04-212 . 2. Summary of Excess Workers’ Compensation Insurance Quotations 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 2004-212 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING RENEWAL OF THE CITY’S EXCESS WORKERS’ COMPENSATION INSURANCE. WHEREAS, the City has established a self-insurance program for workers’ compensation; and WHEREAS, the City’s Insurance Broker has received a renewal quotation for Excess Workers’ Compensation Insurance coverage; and WHEREAS, upon evaluation of this quotation for excess insurance, the City desires to renew its insurance. NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. Ill Ill Ill Ill Ill Ill Ill Ill Ill Ill 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2. That the renewal of the City’s Excess Workers’ Compensation Insurance coverage with Continental Insurance Company, with the premium in the amount of $159,300, is hereby approved. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad City Council held on the 22nd day of June , 2004; by the following vote, to wit: AYES: Council Members Lewis, Finnila, Kulchin, NOES: None ABSENT: None ATTEST: E M. WOOD, City Clerk (SEAL) Resolution No. 2004-212 page 2 3 4