CA 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 [email protected], 442-200-4718
Judy von Kalinowski, Human Resources Director
[email protected], 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