13728 1 RESOLUTION NO. 13,728
2
3 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER
4 INTO A CONTRACT FOR WORKERS' COMPENSATION STOP-LOSS
5 COVERAGE WITH SAFETY NATIONAL FOR ONE (1) YEAR
6 EFFECTIVE JULY 1, 2013; AND FOR OTHER PURPOSES.
7
8 WHEREAS, the City of Little Rock has operated a self-funded Workers' Compensation program
9 since 1985 and relies upon Stop-Loss coverage to cap the cost of individual claims; and,
10 WHEREAS, the Arkansas Workers' Compensation Commission requires that self-insured programs
11 purchase this Stop-Loss coverage; and,
12 WHEREAS, the City's agent for Property Casualty has surveyed the market for this coverage and
13 has determined that at present there are only two major insurers available to provide this coverage,
14 Midwest Employer's Casualty(the incumbent provider)and Safety National; and,
15 WHEREAS,the incumbent proposed a total premium of$224,974 (including terrorism coverage) for
16 the policy year effective July 1, 2013, and the policy limits the Aircraft Coverage to $5,000,000; and
17 WHEREAS, Safety National has offered a proposal for the coverage which includes both the
18 terrorism coverage and statutory coverage for all claims, including aircraft, for a total premium of
19 $189,767,which represents savings in excess of$35,000 over the incumbent's quote;
20 WHEREAS, NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
21 OF THE CITY OF LITTLE ROCK,ARKANSAS:
22 Section 1. The Board of Directors hereby authorizes the City Manager to enter into a contract with
23 Safety National to provide Workers' Compensation Stop-Loss coverage to the City for one (1) year,
24 effective July 1, 2013, for a total premium of$189,767.
25 Section 2. Funding for the renewal is provided in the budget line items for Workers' Compensation.
26 Section 3. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
27 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
28 adjudication shall not affect the remaining portions of the resolution, which shall remain in full force and
29 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
30 resolution.
31 Section 4. Repealer. All ordinances, resolutions, bylaws, and other matters inconsistent with this
32 resolution are hereby repealed to the extent of such inconsistency.
33 ADOPTED: July 9,2013
[Page 1 of 21
1 ATTES • APPROVED:
2 A / /
3 • / / ,
4 Sous, g - City Clerk Mark Stodola,Mayor
5
6 APP' 0 D AS TO LEGAL FORM:
8 1 /I b4tvi4--
9 Thomas M. Carpenter,Ci Attorney
10 /I
11 //
12 //
13 //
14 //
15 //
16 //
17 //
18 //
19 //
20 //
21 //
22 //
23 //
24 //
25 //
26 //
27 //
28 //
29 //
30 //
31 //
32 //
33 //
34 //
'Page 2 of 21