15246 1 RESOLUTION NO. 15,246
2
3 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER
4 INTO A CONTRACT WITH SAFETY NATIONAL CASUALTY
5 CORPORATION, FOR EXCESS WORKERS' COMPENSATION
6 COVERAGE FOR ONE (1)-YEAR EFFECTIVE JULY 1, 2020; AND FOR
7 OTHER PURPOSES.
8
9 WHEREAS, the City of Little Rock, Arkansas, has operated a self-funded Workers' Compensation
10 program since 1985 and relies upon Stop-Loss Coverage to cap the cost of individual claims; and.
11 WHEREAS, the Arkansas Workers' Compensation Commission requires that self-insured programs
12 purchase this Stop-Loss Coverage; and,
13 WHEREAS, the City's Insurance Broker solicited quotes for the Excess Workers' Compensation
14 Insurance and received a renewal quote to bind coverage from Safety National Casualty Corporation
15 ("Safety National")for the term of July 1 2020,to June 30,2021; and,
16 WHEREAS,the City entered into a Workers' Compensation Stop-Loss Contract with Safety National
17 with an effective date of July 1, 2013, as approved by Little Rock, Ark., Resolution No. 13,728 (July 9,
18 2013)providing coverage in one(1)-year terms with a maximum of seven (7)renewal periods ending June
19 30,2020; and,
20 WHEREAS, it is the Broker's recommendation to bind the City's Excess Workers' Compensation
21 Insurance Coverage with Safety National for a one(1)-year term from July 1 2020,to June 30,2021;and,
22 WHEREAS, the City's 2020-2021 estimated payroll is One Hundred Million, Seven Hundred Thirty
23 Thousand, Seven Hundred Twenty Dollars ($100,730,720.00) with a premium rate of $0.1753 for a
24 minimum premium of One Hundred Ninety-Four Thousand, One Hundred Eleven Dollars ($194,111.00);
25 and,
26 WHEREAS, the City's 2019-2020 Payroll was reported at One Hundred Seventeen Million, One
27 Hundred Fifty-Five Thousand, Thirteen Dollars ($117,155,013.00), the Excess Worker's Compensation
28 Rate was $0.1717 for a premium of Two Hundred One Thousand, One Hundred Fifty-Five Dollars
29 ($201,155.00).
30 NOW, THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
31 OF LITTLE ROCK,ARKANSAS:
32 Section 1. The Board of Directors hereby authorizes the City Manager to enter into a contract with
33 Safety National Casualty Corporation to provide Excess Workers' Compensation Insurance to the City for
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1 one (1)-year, effective July 1, 2020, through June 30, 2021, for a premium of One Hundred Ninety-Four
2 Thousand,One Hundred Eleven Dollars($194,111.00).
3 Section 2. Funding for the renewal is allocated annually in the City's General Fund Budget line items
4 for Workers'Compensation, Account No. 100000-14010.
5 Section 3. Severability. In the event any title, section. paragraph, item, sentence, clause, phrase, or
6 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
7 adjudication shall not affect the remaining portions of the resolution, which shall remain in full force and
8 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
9 resolution.
10 Section 4. Repealer. All ordinances, resolutions, bylaws, and other matters inconsistent with this
11 resolution are hereby repealed to the extent of such inconsistency.
12 ADOPTED: June 23,2020
13 ATT APPROVED:
14 4114V
15
16 -"....7-11 City Clerk Frank Scott,Jr., Maporr
17 APPOV : - TO LEGAL FORM:
18
19
20 Alexander J.Be on,Chief Deputy City Attorney
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