CA Review JRT
Meeting Date: July 23, 2024
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Sarah Reiswig, Risk Manager
[email protected], 442-200-4718
Judy von Kalinowski, Human Resources Director
[email protected], 760-473-4670
Subject: Purchase of Excess Workers’ Compensation Coverage for Policy Year 2024-2025
Districts: All
Recommended Action
Adopt a resolution authorizing the purchase of excess workers’ compensation coverage through Safety National Casualty Corporation for policy year 2024-25.
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 up to $1.5 million, and 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, 2024, to July 31, 2025, and the annual premium is estimated to be $333,742.
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 2023-24 rate was $0.3414 per every $100 in payroll. The policy year 2024-25 rate will remain unchanged. Based on current payroll data, the overall premium for policy year 2024-2025 is estimated to be $333,742.
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 2024-25 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 23, 2024 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 23, 2024 Item #3 Page 2 of 3
RESOLUTION NO. 2024-179
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE PURCHASE OF EXCESS WORKERS'
COMPENSATION COVERAGE THROUGH SAFETY NATIONAL CASUALTY
CORPORATION FOR POLICY YEAR 2024-2025
WHEREAS, the City Co.uncil 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, 2024, and concluding on July 31, 2025.
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, 2024, to July 31, 2025, is approved and the Deputy City Manager, Administrative Services is authorized to issue a warrant in an amount estimated to total $333,742 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 23rd day of JQ!y, 2024, by the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, LUNA.
NONE.
NONE.
NONE.
KEITH BLACKBURN, Mayor
(1
SHERRY FREISINGER, City Clerk
(SEAL)
Exhibit 1
July 23, 2024 Item #3 Page 3 of 3