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HomeMy WebLinkAbout2010-06-08; City Council; 20250; Renewal of Excess Workers Compensation BenefitsCITY OF CARLSBAD - AGENDA BILL AB# MTG. DEPT. 20,250 06/08/10 HR RENEWAL OF EXCESS WORKERS' COMPENSATION BENEFITS DEPT. HEAD ^ CITYATTY. /// CITY MGR. fj ({^^ RECOMMENDED ACTION: Approval of Resolution No. 2010-131 authorizing the renewal of Excess Workers' Compensation Insurance coverage in accordance with staff's recommendation at a premium of $118,028. ITEM EXPLANATION: The current excess Workers' Compensation Insurance Policy expires on June 30, 2010. This policy provides for loss coverage which exceeds the City's self-insured retention level up to $25 million 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 $118,028 to $150,000. Based on these quotes, staff recommends renewing its policy with Safety National Casualty Corporation at a premium of $118,028, which is slightly higher than last year's premium of $114,306. The stabilization in the premium is due to workers' compensation reforms instituted by Senate Bill 899 that were effective in stabilizing past claims difficulties throughout the State of California. The City's Self Insurance Retention (SIR) will remain at $1,000,000 for each claim for safety employees and $750,000 for each claim for non-safety employees. FISCAL IMPACT: The recommended renewal quotation for one year is $118,028. Sufficient funds have been included in the Fiscal Year 2010-11 budget. ENVIRONMENTAL IMPACT: This amendment is statutorily exempt from CEQA pursuant to Public Resources Code Section 21080(b)(1). EXHIBITS: 2010-1311. Resolution No. 2. Summary of Excess Workers' Compensation Insurance Quotations DEPARTMENT CONTACT: Debbie Porter 760-602-2441 debbie.porter@carlsbadca.gov FOR CITY CLERKS COUNCIL ACTION: USE ONLY. APPROVED DENIED CONTINUED WITHDRAWN AMENDED nn nn CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER -SEE MINUTES Dn nn 1 RESOLUTION NO. 2010-131 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING 3 RENEWAL OF THE CITY'S EXCESS WORKERS' 4 COMPENSATION INSURANCE. 5 WHEREAS, the City has established a self-insurance program for workers' 6 compensation; and 7 WHEREAS, the City's Insurance Broker has received a renewal quotation for 8 Excess Workers' Compensation Insurance coverage; and 9 WHEREAS, upon evaluation of this quotation for excess insurance, the City 10 desires to renew its insurance. 11 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 12 Carlsbad, California, as follows: 13 14 1. That the above recitations are true and correct. 15 2. That the renewal of the City's Excess Workers' Compensation Insurance 16 coverage with Safety National Casualty Corporation, with the premium in the 17 amount of $118,028, 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 8th day of June, 2010, by the following vote to wit: AYES: Council Members Lewis, Kulchin, Hall, Packard, Blackburn NOES: None ABSENT: None A—-* &si j ij^~ t>, City ClenT 0 CITY OF CARLSBAD EXCESS WORKERS' COMPENSATION CARRIER COMPARISONS 2010/2011 ESTIMATED PAYROLL: $60,372,458 INSURANCE CARRIER A B C 0 E F G SAFETY NATIONAL CASUALITY CORPORATION NEW YORK MARINE AND GENERAL INSURANCE COMPANY MIDWEST EMPLOYERS CASUALTY COMPANY CHARTIS INSURANCE COMPANY ARCH INSURANCE COMPANY ACE AMERICAN INSURANCE COMPANY REPUBLIC INDEMNITY COMPANY OF AMERICA ADMITTED or WORKERS1 RATING NON- COMPENSATION ADMITTED LIMIT A: X ADMITTED Statutory A: VIII ADMITTED Statutory A+: XV ADMITTED S25.000.000 A: XV ADMITTED A: XV ADMITTED A+: XIV ADMITTED A: IX ADMITTED EMPLOYERS LIABILITY LIMIT (OCCURRENCE) $2,000,000 $2,000,000 $2,000,000 EMPLOYERS UABILLITY LIMIT (POLICY) $2,000,000 NfA N/A SELF-INSURED RETENTION $750,000 5750,000 $1.000,000 SELF- INSURED DEPOSIT RETENTION PREMIUM Police & Fire $1.000,000 $118.028 $1.000,000 $150,000 $1,000.000 $125,000 MINIMUM RATE PER PREMIUM $100 $118,028 .1955 $150,000 Indication $125.000 Indication Minimum policy premium: $150,000 ($1 ,000.000 Self-Insured Retention) Declined - Cannote compete wtth current pricing Declined - Cannote compete with current pricing Declined - Police and Fire Exposure associated with the risk 1) No CIGA Surcharge vat! be applied to any of the above quotes 2) Terrorism Coverage is Included In all of the above quotes LAST YEAR ESTIMATED PAYROLL: $58,468,702 WORKERS- COMPENSATION LIMIT EMPLOYERS EMPLOYERS LIABILITY LIMIT LIABILITY LIMIT (OCCURRENCE) (POLICY) SELF- SELF-INSURED INSURED DEPOSIT RETENTION RETENTION PREMIUM Police & Fire MINIMUM RATE PER PREMIUM $100 SAFETY NATIONAL CASUALTY CORPORATION Statutory $2,000,000 $2,000.000 $750,000 $1,000,000 $114,306 $114,306 .1955 Please note the following as respects the 2010-11 quotes: 1) Safety National Casualty Corporation quotes are subject to: CA Mandatory Endorsements; XWC0288040908 - Employer Liability Per Occurrence & Aggregate Maximum Limits of Liability - CA; XWCO4S7021106 • Employers'Liability Maximum Limit i. Aggregate Maximum Limit of Indemnity; XWC1061101207 - Policyhoiaers Disclosure Notice of Terrorism Insurance Coverage. 2) New York Marine and General quote Is an Indication, Minimum premium Is $160,000. 3) Midwest Employers quote Is an Indication. They cannot provide a retention below 31,000,000 or Statutory Limits.m<2"- cr