HomeMy WebLinkAbout2014-06-24; City Council; 21649; Renew Excess Workers' Compensation InsuranceCITY OF CARLSBAD - AGENDA BILL
AB# 21.649 RENEW EXCESS WORKERS' COMPENSATION
INSURANCE
DEPT. HEAD (04^
MTG. 6/24/14
RENEW EXCESS WORKERS' COMPENSATION
INSURANCE CITY ATTY. ^^^^
DEPT. ASD-HR
RENEW EXCESS WORKERS' COMPENSATION
INSURANCE
CITY MGR. k!0
RECOMMENDED ACTION;
Adopt Resolution No. 2014-149 authorizing the renewal of excess workers' compensation insurance
coverage in accordance with staffs recommendation at an annual premium of $149,292.
ITEM EXPLANATION;
The current excess workers' compensation insurance policy expires on June 30, 2014. This policy
provides for loss coverage which exceeds the city's self-insured retention level. The city's Self Insurance
Retention (SIR) will remain at $1,000,000 per claim for safety employees and $750,000 per claim for
non-safety employees.
Brown & Brown, Inc., the city's insurance broker, obtained renewal quotes from three carriers (see
Attachment A). The renewal quotes for annual premiums ranged from $142,178 to $302,167. Based on
these quotes, staff recommends renewing its policy with Safety National Casualty Corporation at a
premium of $149,292 which results in continuing the current SIR. The five percent increase in the
insurance rate (from $0.2858 per $100 of payroll to $0.3001 per $100 of payroll) is due to an increase,
in the last year, in losses experienced by workers' compensation carriers in the state of California.
FISCAL IMPACT;
The recommended renewal quotation for one year is $149,292. Funding for this is included in the FY
2014-15 budget.
ENVIRONMENTAL IMPACT;
Pursuant to Public Resources Code section 21065, this action does not constitute a "project" within the
meaning of CEQA in that it has no potential to cause either a direct physical change in the environment,
or a reasonable foreseeable indirect physical change in the environment; and therefore, does not
require environmental review.
EXHIBITS;
1. Resolution No. 2014-149
Attachment A: Excess Workers' Compensation Carrier Comparisons FY 2014-15
DEPARTMENT CONTACT: Rebecca Melillo 760-602-2442 rebecca.melillotScarlsbadca.gov
FOR CITY CLERKS USE ONLY. K COUNCIL ACTION: APPROVED K CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURN ED TO STAFF •
WITHDRAWN • OTHER - SEE MINUTES •
AMENDED •
EXHIBIT 1
1 RESOLUTION NO. 2014-149
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING RENEWAL OF THE CITY'S EXCESS
WORKERS' COMPENSATION INSURANCE
18
19
20
21
24
25
26
27
28
WHEREAS, the city has established a self-insurance program for workers' compensation;
and
workers' compensation insurance coverage; and
WHEREAS, upon evaluation of this quotation for excess insurance, the city desires to
^ WHEREAS, the city's insurance broker has received a renewal quotation for excess
8
9
10
11 renew its insurance.
12
13
14
15 1. That the above recitations are true and correct.
16 2. That the renewal of the city's excess workers' compensation insurance with Safety
National Casualty Corporation, with the premium in the amount of $149,292, is
hereby approved
NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe City of Carlsbad,
California, as follows:
//
//
22 //
23 //
//
//
//
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 ofthe City Council ofthe City
of Carlsbad on the 24th day of June 2014, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Packard, Wood, Schumacher, Blackburn.
None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
^^^ARBARA ENGLESON, Cui^ Clerk
ATTACHMENT A
Q
6¥!
Z o LU CM
i o o cc
UJ K
o <
UJ ^
g
E E
1 E
s 0.
si
z £ . a o iz
IU 3 m «
CO 2 P .a
- ft! o
^ UI
li. I-
IU
o t •
» s ^ oc 1 ^ UJ -J g
o! d = s m u Sag
. o
Q UJ
hi z t
§ <
a z F
Q: <
3 (fl Z
<
<
o
_J <
H
z *t u- £ < o Ul O
< fc
< o
m
S
UJ
S tn
Q <
3 U)
z z < o
It >
LU z
5 <
< Q.
O O
< O
> ?
31
18
O
o lu z
Ui lu O (D O
<
lU >-
I-
(0
<
o «
<o o
II
e s
a U
S I
0- g
UJ "
ill-
UJ 3 • «
#*\ /ft o Z lu
01 0.
Q
UJ 7
Ul ct:
Si UJ _j
m <
o
V} ^ 7% DC 1 ^ UI -I g
t J 3 SOU
. o
K UJ •
o Q.
u
§ >-< a. •
UI
I-< E F to
ti
V)
£