HomeMy WebLinkAbout2005-06-28; City Council; 18182; Renewal of Excess Workers' Comp Benefitsz 0 F 0 a
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UTG. 6/28/05
DEPT. HR
TITLE:
RENEWAL OF EXCESS WORKERS’
COMPENSATION BENEFITS
RECOMMENDED ACTION:
Approval of Resolution No. 2005-207 authorizing the renewal of Excess
Workers’ Compensation Insurance coverage in accordance with staff’s recommendation
at a premium of $150,586.
ITEM EXPLANATION:
The current excess Workers’ Compensation Insurance Policy expires on June 30,2005.
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 three carriers
(see Exhibit 2). The renewal quotes for annual premiums ranged from $150,586 to
$290,890. Based on these quotes, staff recommends renewing its policy with Continental
Insurance Corporation. The renewal premium is $150,586, which is lower than last
year’s premium of $159,300. The City’s Self Insurance Retention (SIR) will remain at
$1,000,000 for each claim.
The decrease in the premium is due to recent workers’ compensation reforms instituted
by Senate Bill 899 that were effective in stabilizing past claims difficulties throughout the
State of California.
FISCAL IMPACT:
The recommended renewal quotation for one year is $150,586. Sufficient funds have
been budgeted in the 2005/06 operating budget adopted June 21,2005.
EXHIBITS:
1. Resolution No. 2005-207 .
2. Summary of Excess Workers’ Compensation Insurance Quotations
DEPARTMENT CONTACT: Debbie Porter, (760) 602-2441, dport@ci.carlsbad.ca.us
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RESOLUTION NO. 2005-207
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING
RENEWAL OF THE CITY’S EXCESS WORKERS’
COMPENSATION INSURANCE.
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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 Corporation, with the premium in the amount of
$150,586, is hereby approved.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Carlsbad
City Council held on the 28th day of JUNE , 2005; by the following
vote, to wit:
AYES: I Council Members Lewis, Hall, Kulchin, Packard, Sigafoose
NOES: NONE
ABSENT: NONE
ATTEST:
LORRAINE M. WO&, City Clerk’
(SEAL)
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EXHIBIT 2