HomeMy WebLinkAbout2020-07-14; City Council; ; Purchase of Excess Workers’ Compensation Coverage through Safety National Casualty Corporation for Fiscal Year 2020-2021 in the Amount of $226,170CA Review CKM
Meeting Date: July 14, 2020
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Donna Hernandez, Human Resources Manager
Donna.hernandez@carlsbadca.gov, 760-602-7533
Subject: Purchase of Excess Workers’ Compensation Coverage through Safety
National Casualty Corporation for Fiscal Year 2020-2021 in the Amount of
$226,170
Recommended Action
Adopt a resolution authorizing the purchase of excess workers’ compensation coverage through
Safety National Casualty Corporation for fiscal year 2020-21 in the amount of $226,170.
Executive Summary
The city is renewing annual excess workers’ compensation insurance through Safety National
Casualty Corporation for fiscal year 2020-21 in the amount of $226,170. This renewal must be
approved by the City Council because the cost exceeds $100,000 per agreement year. (See
Carlsbad Municipal Code Section 3.28.040 (D)(1).)
Discussion
Safety National Casualty Corporation has been the incumbent insurance carrier since fiscal year
2007-08. The self-insured retention level is $1.25 million for all safety and non-safety
employees per claim.
Based on our successful history with this carrier and the acceptable quote, staff recommends
renewing its policy. The policy period will run from August 1, 2020, to July 31, 2021, and the
annual premium will not exceed $226,170.
Fiscal Analysis
The fy 2019-20 rate was $0.292 per $100 payroll. The fy 2020-21 rate is $0.302 per $100
payroll. The overall rate increase is 3.4 percent. Current workers’ compensation market overall
rate increases are between 3 percent and 5 percent for policies renewing on or after July 1,
2020. Sufficient funds have been requested in the fiscal year 2020-21 budget to cover this
premium.
July 14, 2020 Item #4 Page 1 of 3
Next Steps
With the City Council’s approval, staff will complete all necessary administrative actions
necessary to renew the insurance.
Environmental Evaluation (CEQA)
This action does not constitute a “project” within the meaning of the California Environmental
Quality Act under California Public Resources Code Section 21065 in that it has no potential to
cause either direct physical change to the environment, or a reasonably foreseeable indirect
change in the environment, and does not require environmental review.
Public Notification and Outreach
Public notice of this item was posted in accordance with the Ralph M. Brown Act and it was
available for public viewing and review at least 72 hours prior to scheduled meeting date.
Exhibits
1. Resolution
July 14, 2020 Item #4 Page 2 of 3
EXHIBIT 1
RESOLUTION NO. 2020-135
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, APPROVING THE PURCHASE OF EXCESS WORKERS'
COMPENSATION COVERAGE THROUGH SAFETY NATIONAL CASUALTY
CORPORATION FOR FISCAL YEAR 2020-2021 IN AN AMOUNT NOT TO
EXCEED $226,170.
WHEREAS, the City Council of the City of Carlsbad, California has determined that it has a desire
to purchase excess workers' compensation coverage through Safety National Casualty Corporation;
and
WHEREAS, HUB International has negotiated the purchase of excess workers' compensation
coverage through Safety National Casualty Corporation for the period beginning on August 1, 2020 and
concluding on July 31, 2021.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the purchase of excess workers' compensation coverage through Safety National
Casualty Corporation effective August 1, 2020 to July 31, 2021, is approved and the
Deputy City Manager, Administrative Services is authorized to issue a warrant in an
amount not to exceed $226,170 for payment of the premium to Safety National Casualty
Corporation.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 14th day of July 2020, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
(SEAL)
July 14, 2020 Item #4 Page 3 of 3