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HomeMy WebLinkAbout2022-07-26; City Council; ; Purchase of Excess Workers’ Compensation Coverage through Safety National Casualty Corporation for Policy Year 2022-2023 for $271,000CA Review CKM Meeting Date: July 26, 2022 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Sarah Reiswig, Management Analyst sarah.reiswig@carlsbadca.gov, 442-200-4718 Judy von Kalinowski, Human Resources Director judy.vonkalinowski@carlsbadca.gov, 760-473-4670 Subject: Purchase of Excess Workers’ Compensation Coverage through Safety National Casualty Corporation for Policy Year 2022-2023 for $271,000 District: All Recommended Action Adopt a resolution authorizing the purchase of excess workers’ compensation coverage through Safety National Casualty Corporation for policy year 2022-23 for $271,000. Executive Summary / Discussion Safety National Casualty Corp. has been the city’s insurance carrier since policy year 2007-08. The city is self-insured for all employee claims of up to $1.5 million. This insurance would cover claims that exceed that amount. Based on the city’s successful history with Safety National Casualty this carrier and the acceptable quote, staff recommend renewing its policy with the insurer. The policy period will run from Aug. 1, 2022, to July 31, 2023, and the annual premium is estimated to be $271,000. Carlsbad Municipal Code Section 3.28.040(D)(1) requires this renewal to be approved by the City Council because the cost will exceed $100,000 per agreement year. Fiscal Analysis The policy year 2021-22 rate was $0.3161 per every $100 in payroll. The policy year 2022-23 rate is $0.3347 per $100 in payroll. The overall premium for policy year 2022-2023 is estimated to be $271,000, based on current payroll data. The carrier will invoice final costs after auditing actual payroll expenses at the end of the policy year. Sufficient funds have been requested in the fiscal year 2022-23 budget for this premium. Next Steps With the City Council’s approval, staff will complete all necessary administrative actions necessary to renew the insurance. July 26, 2022 Item #3 Page 1 of 3 Environmental Evaluation 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 a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, so it does not require environmental review. Public Notification Public notice of this item was posted in keeping with the Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. City Council resolution July 26, 2022 Item #3 Page 2 of 3 RESOLUTION NO. 2022-190 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 2022-2023 IN AN AMOUNT OF $271,000 WHEREAS, the City Council of the City of Carlsbad, California, desires 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, 2022 and concluding on July 31, 2023. 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, 2022 to July 31, 2023, is approved and the Deputy City Manager, Administrative Services is authorized to issue a warrant in an amount estimated to total $271,000 for payment of the premium to Safety National Casualty Corporation. 3.That the City Manager or a designee is authorized to execute any documents necessary to implement the purchase. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 26th day of :l..!!!Y, 2022, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Acosta, Norby. None. None. f FAVIOLA MEDINA, City Clerk Services Manager (SEAL) Exhibit 1 July 26, 2022 Item #3 Page 3 of 3 MATT HA1(t..tl/../Lt ' yor ------ ~