HomeMy WebLinkAbout2015-06-23; City Council; 22012; Renew Excess Workers' Compensation InsuranceCITY OF CARLSBAD - AGENDA BILL 10
AB# 22,012 RENEW EXCESS WORKERS' COMPENSATION DEPT. HEAD
MTG. 6/23/15 INSURANCE CITY ATTY. "A DEPT. ASD-HR CITY MGR.
RECOMMENDED ACTION:
Adopt Resolution No. 2015-163 authorizing the renewal of excess workers' compensation insurance
coverage in accordance with staff's recommendation at an annual premium of $181,774.
ITEM EXPLANATION:
The current excess workers' compensation insurance policy expires on June 30, 2015. 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, approached five carriers, who are the major writers of
Municipal Excess Workers' Compensation coverage in California, and only obtained a quote from one
carrier, Safety National Insurance. Safety National Insurance has been the incumbent carrier since FY
2007-08. Based on our successful history with this carrier and the acceptable quote, staff recommends
renewing its policy with Safety National Casualty Corporation at a premium of $181,774, which results
in continuing the current SIR, and reflects a rate of .2995 per $100 of payroll. This is a decrease of .06%
(from .3001 per $100 of payroll to .2995 per $100 of payroll).
FISCAL IMPACT:
The recommended renewal quotation for one year is $181,774.
2015-16 budget.
Funding for this is included in the FY
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. 2015-163
Attachment A: Excess Workers' Compensation Carrier Comparisons 2015/2016
DEPARTMENT CONTACT: Rebecca Melillo 760-602-2442 rebecca.melillo@carlsbadca.gov
FOR CITY CLERKS USE ONLY.
COUNCIL ACTION: APPROVED CONTINUED TO DATE SPECIFIC •
DENIED • CONTINUED TO DATE UNKNOWN •
CONTINUED • RETURNED TO STAFF •
WITHDRAWN • OTHER-SEE MINUTES •
AMENDED •
EXHIBIT
1 RESOLUTION NO. 2015-163
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
3 CALIFORNIA, AUTHORIZING RENEWAL OF THE CITY'S EXCESS
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WORKERS' COMPENSATION INSURANCE
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
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WHEREAS, upon evaluation of this quotation for excess insurance, the city desires to
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15 1. That the above recitations are true and correct.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
California, as follows:
2. That the renewal of the city's excess workers' compensation insurance with Safety
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National Casualty Corporation, with the premium in the amount of $181,774, is
hereby approved.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting ofthe City Council ofthe City
of Carlsbad on the 23''' day of June, 2015, by the following vote to wit:
AYES:
NOES:
Council Members Hall, Blackburn, Schumacher, Wood and Packard.
None.
ABSENT: None.
MATT HALL, Mayor
ATTEST:
BARBARA ENGLESprj, City Clerk
(SEAL)
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