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HomeMy WebLinkAbout2011-06-21; City Council; 20590; RENEWAL EXCESS WORKERS COMPENSATION BENEFITSCITY OF CARLSBAD - AGENDA BILL 8 AB# 20,590 MTG. 06/21/11 DEPT. HR RENEWAL OF EXCESS WORKERS' COMPENSATION BENEFITS DEPT. HEAEF-/ ' Llf CITY ATTY. /y CITY MGR. / fc>--~ RECOMMENDED ACTION: Approval of Resolution No. 2011-136 authorizing the renewal of Excess Workers' Compensation Insurance coverage in accordance with staffs recommendation at a premium of $111,863. ITEM EXPLANATION: The current excess Workers' Compensation Insurance Policy expires on June 30, 2011. 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 $111,863 to $146,529. Based on these quotes, staff recommends renewing its policy with Safety National Casualty Corporation at a premium of $111,863, which is slightly lower than last year's premium of $118,028. 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 $111,863. Sufficient funds have been included in the Fiscal Year 2011-12 budget. ENVIRONMENTAL IMPACT: This amendment is statutorily exempt from CEQA pursuant to Public Resources Code Section 21080(b)(1). EXHIBITS: 1. Resolution No. 2011-136 2. Summary of Excess Workers' Compensation Insurance Quotations DEPARTMENT CONTACT: Debbie Porter 760-602-2441 debbie.porter@carlsbadca.gov FOR CITY CLERKS USE ONLY. COUNCIL ACTION: APPROVED DENIED CONTINUED WITHDRAWN AMENDED Xnx nn n CONTINUED TO DATE SPECIFIC CONTINUED TO DATE UNKNOWN RETURNED TO STAFF OTHER - SEE MINUTES naaa 1 RESOLUTION NO.2Q11-136 2 A RESOLUTION OF THE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 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 7 amount of $111,863, 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 21st day of June 2011, by the following vote to wit: AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard. NOES: None. ABSENT: None. MATT HALL, Mayor ATTEST: (SEAL') INE M. WOOD, City Clerk CITY OF CARLSBAD EXCESS WORKERS' COMPENSATION CARRIER COMPARISONS 2011/2012 ESTIMATED PAYROLL: $60,230,678 INSURANCE CARRIER SAFETY NATIONAL CASUALITY A CORPORATION SAFETY NATIONAL CASUALITYB CORPORATION C ARCH INSURANCE COMPANY MIDWEST EMPLOYERS CASUALTY COMPANY ACE AMERICAN INSURANCE COMPANY NEW YORK MARINE AND E GENERAL INSURANCE COMPANY 6 STAR INSURANCE COMPANY ADMITTED or WORKERS- RATING NON- COMPENSATION ADMITTED LIMIT A: X ADMITTED Statutory A: X ADMITTED Statutory A: XV ADMITTED Statutory A*: XV ADMITTED $25.000.000 A»; XV ADMITTED A: VIII ADMITTED A-: IX ADMITTED SELF- LIABHJTY'LI^T uA^LLmrTiMiT SELF-|NSUREO INSURED DEPOSIT MINIMUM Poll co & Flro $2.000.000 $2.000,000 $750,000 $1.000.000 $117.751 $111.863 RATE PER $100 .1955 Minimum policy premium: S1 50.000 ( $1 .000.000 Self Insured Retention) $2.000.000 $2,000.000 $750.000 S2.000.000 N/A $1.000.000 Minimum Policy Premium: $1,000.000 $124.015 124.015 $1.000.000 $146.529 $146.529 $125.000 0.2059 Indication Declined: Not competitive with incumbent carrier. Declined - Police and Fire Exposure associated with the risk 1) Mo OGA Surcharge will He applied to any of UK above quotas 3) Terrorism Coverage is Included In all of the above quotes LAST YEAR ESTIMATED PAYROLL: $60,372,458 WORKERS' EMPLOYERS EMPLOYERS COMPENSATION LIABILITY LIMIT LIABILITY LIMIT LIMIT (OCCURRENCE) (POLICY) SELF- SELF-INSURED INSURED DEPOSIT MINIMUM RATE PER RETENTION RETENTION PREMIUM PREMIUM $100 Police ft Flra SAFETY NATIONAL CASUALTY CORPORATION Statutory S2.000.000 S2.000.000 S750.000 S1.000.000 $116.028 $118.026 .1955 Please note On following as respects the 2011-12 quotes: 1) Safety National Casualty Company quotes are subject to the same policy form and endorsements as expiring. H Arch Insurance option Is subject to trtt following endorsements: tosses redefined to Include Allocated Loss Adjustment Expense Endt; Terrorism Risk Insurance Program Rsautnorfzatfbn Act endorsement; California Amendatory Endorsements. 4) Hfdwest Employers cannot offer a retention lower then t1.OOO.OOO or Statutory limits ami has given a focused Indication, !°