HomeMy WebLinkAbout2004-06-22; City Council; 17684; Excess Workers' Compensation Benefits Renewaln
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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
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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.
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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
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