HomeMy WebLinkAbout2023-07-11; City Council; ; Purchase of Excess Workers’ Compensation Coverage through Safety National Casualty Corporation for Policy Year 2023-2024CA Review _JT_
Meeting Date: July 11, 2023
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Sarah Reiswig, Senior Human Resources Officer
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 2023-2024
District: All
Recommended Action
Adopt a resolution authorizing purchase of excess workers’ compensation coverage through
Safety National Casualty Corporation for policy year 2023-2024.
Executive Summary/Discussion
Safety National Casualty Corporation 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 Corporation and the
acceptable quote, staff recommend renewing its policy with the insurer. The policy period will
run from Aug. 1, 2023, to July 31, 2024, and the annual premium is estimated to be $305,610.
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 2022-23 rate was $0.3347 per every $100 in payroll. The policy year 2023-24
rate is $0.3414 per $100 in payroll, which is a 2% increase per $100 in payroll. The overall
premium for policy year 2023-2024 is estimated to be $305,610, 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 2023-24 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 11, 2023 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.
Exhibits
1. City Council resolution
July 11, 2023 Item #3 Page 2 of 3
RESOLUTION NO. 2023-187
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING PURCHASE OF EXCESS WORKERS'
COMPENSATION COVERAGE THROUGH SAFETY NATIONAL CASUALTY
CORPORATION FOR POLICY YEAR 2023-2024
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, 2023 and
concluding on July 31, 2024.
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, 2023, to July 31, 2024, is approved and the
Deputy City Manager, Administrative Services is authorized to issue a warrant in an
amount estimated total of $305,610 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 11th day of :!.!!!Y, 2023, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder, Luna.
None.
None.
None.
�
KEITH BLACKBURN, Mayor
SHERRY FREISINGER, City Clerk
(SEAL)
Exhibit 1
July 11, 2023 Item #3 Page 3 of 3