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HomeMy WebLinkAbout2006-06-20; City Council; 18608; Renewal of Excess Workers' Compensation BenefitsCITY OF CARLSBAD - AGENDA BILL AB# 18,608 MTG. 6/20/06 DEPT. HR RENEWAL OF EXCESS WORKERS' COMPENSATION BENEFITS DEPT. HEAD ^ r*- CITY ATTY. y£^ CITY MGRr^p> RECOMMENDED ACTION: Approval of Resolution No. 2006-161 authorizing the renewal of Excess Workers' Compensation Insurance coverage in accordance with staff's recommendation at a premium of $149,025. ITEM EXPLANATION: The current excess Workers' Compensation Insurance Policy expires on June 30, 2006. 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 five carriers (see Exhibit 2). The renewal quotes for annual premiums ranged from $149,025 to $205,442. Based on these quotes, staff recommends renewing its policy with Continental Insurance Corporation. The renewal premium is $149,025, which is lower than last year's premium of $150,586. 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 $149,025. Sufficient funds have been budgeted in the 2006/07 operating budget ENVIRONMENTAL IMPACT: EXHIBITS: 1.Resolution No. 2006-161 . 2. Summary of Excess Workers' Compensation Insurance Quotations DEPARTMENT CONTACT: Debbie Porter, (760) 602-2441, dport@ci.carlsbad.ca.us FOR CITY CLERKS USE OWL Y. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED aaaa CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF Q OTHER - SEE MINUTES D RESOLUTION NO. 2006-161 1 A RESOLUTION OF THE CITY COUNCIL OF THE 2 CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING RENEWAL OF THE CITY'S EXCESS WORKERS' 3 COMPENSATION INSURANCE. 4 WHEREAS, the City has established a self-insurance program for workers' 5 compensation; and 6 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. 11 NOW, THEREFORE, BE IT RESOLVED by the City Council for the City of 12 Carlsbad, California, as follows: 13 1. That the above recitations are true and correct.14 - f. 2. That the renewal of the City's Excess Workers' Compensation Insurance 16 coverage with Continental Insurance Corporation, with the premium in the amount of 17 $ 149,025, is hereby approved. 18 /// 19 /// 20 21 22 '" 23 24 /// 25 /// 26 ,„ 27 28 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 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 20th day of June 2006, by the following vote: AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: None OJDE A LEWIS, Mayor ATTEST: EXHIBIT 2 in •3 I Q u "• S MINIMUMPREMIUM{•See Note)tsS IP °a.£ z S JJj g t «8 « M [" 3 S jjj 0 e ll 11* C3 UiUJ DCW O z t 2 § u U} V 3 ^fe = 3 < 3 z £ IU To £ -J I 1 D ||| i °RATINGINSURANCE CARRIER1 $149,025in oT K 1 <^ 1 go o" g $ g gO ** goo"g10"u s1 1 1 CONTINENTAL/CNAINSURANCE CORPORATION< S Es" CO 1» i to $1,000,000< z § g *- w gogo S Q | § 1 CONTINENTAL/CNAINSURANCE CORPORATIONCO S %$169,347^ CO 8"5 E CO $750,0000 g- g i ooo_ °- » g §I QLU 1 § ?CONTINENTAL/CNAINSURANCE CORPORATIONU o> 3 $184,898CN I « ECO CO og. <2 og 8"o w go_ I $ o 1§ X MIDWEST EMPLOYERSCASUALITYQ mo> 3 $146,876^ S" S 1 w $1,250,000< 1 o g O ^r-W § go 8 I § X MIDWEST EMPLOYERSCASUALITYu fl Btitive with (g. 1o 1 ^|OO s ACE AMERICAN INS. CO.u. "w"c £ 5 10 g. » 4" iw •o 1Q 5 SAFETY NATIONALCASUALITY CORPORATIONO 1 u o. E O 0z ^ S"" o I «<NATIONAL UNION FIREINSURANCE COMPANY OF P.* go S £ | i S XL SPECIALTY— ^•c <D£ H1 ure associag | UJ £ 1 CO 8 0a i•6 t§ ^PRAETORIAN INSURANCE"» ^ w «8OQ •8 1 la 1•P* U) | 1 2 2BIQ ^5 [^ S <*& UJ 1 ^ ^ </) J -3| 1 Q> f« 1 1 «OW uarantee AtO (e: 4 California Insurance? £a- g Is MINIMUMPREMIUMb £§i&Io£ fl z £ J C E «8 M m ff j! ~ K £ Q iiw t U Kw S T8 la S ^ i 5|U g -1 z. o |zi u $44,408,535M ESTIMATED PAYROLS n $150.589g 85 Q) 1 $1,000,000g °- g s go_ 5 w 1 I" i5 ^NCE COMPAlS CONTINENTAL INSUF