CA Review JRT
Meeting Date: July 29, 2025
To: Mayor and City Council
From: Geoff Patnoe, City Manager
Staff Contact: Kierstyn Yaross, Senior Human Resources Officer [email protected], 760-814-4288
Darrin Schwabe, Human Resources Director
[email protected], 760-271-5548
Subject: Purchase of Excess Workers’ Compensation Coverage through Safety National Casualty Corporation for Policy Year 2025-2026 Districts: All
Recommended Action
Adopt a resolution authorizing the purchase of excess workers’ compensation coverage through Safety National Casualty Corporation for policy year 2025-2026.
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 workers’ compensation claims, up to a maximum of $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, 2025, to July 31, 2026, and the annual premium is estimated to be $341,729.
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 rate for policy year 2024-25 was $0.3414 per $100 in payroll. The policy year 2025-26 rate will remain the same, at $0.3414 per $100 in payroll. The overall premium for policy year 2025- 2026 is estimated to be $341,729, 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 2025-26 budget to pay this premium.
Next Steps
With the City Council’s approval, staff will complete all necessary administrative actions necessary to renew the insurance.
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Environmental Evaluation
The proposed action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
Exhibits
1. City Council resolution
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Exhibit 1
RESOLUTION NO. 2025-184
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 2025-2026
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 from August 1, 2025, to July 31, 2026.
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 City Council has determined the proposed action is not a “project” as defined by CEQA Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment.
3.That the purchase of excess workers’ compensation coverage through Safety National Casualty Corporation, effective August 1, 2025, to July 31, 2026, is approved and the City Manager or designee is authorized to direct the Deputy City Manager, Administrative Services to issue a warrant in an amount estimated to total $341,729 for payment of the premium to Safety National Casualty Corporation.
4.That the City Manager or a designee is authorized to execute any documents necessary to implement the purchase.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 29th day of July, 2025, by the following vote, to wit:
AYES:Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN:None.
ABSENT:None.
______________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
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