HomeMy WebLinkAbout15721 1 RESOLUTION NO. 15,721
2
3 A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER
4 INTO A CONTRACT WITH SAFETY NATIONAL CASULATY
5 CORPORATION, FOR EXCESS WORKERS' COMPENSATION FOR
6 ONE(1)-YEAR EFFECTIVE JULY 1,2022;AND FOR OTHER PURPOSES.
7
8 WHEREAS, the City of Little Rock, Arkansas, has operated a self-funded Workers' Compensation
9 Program 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 Insurance Broker solicited quotes for the Excess Workers' Compensation
13 Insurance and received a renewal quote to bind coverage from Safety National Casualty Corporation
14 ("Safety National")for the term of July 1 2022,to June 30,2023; and,
15 WHEREAS,the City entered into a Workers' Compensation Stop-Loss Contract with Safety National
16 with an effective date of July 1, 2013, as approved by Little Rock, Ark., Resolution No. 13,728 (July 9,
17 2013)providing coverage in one(1)-year terms with a maximum of seven(7)renewal periods ending June
18 30,2020; and,
19 WHEREAS, the Broker's recommendation to bind the City's Excess Workers' Compensation
20 Insurance Coverage with Safety National for a one (1)-year term from July 1 2020, to June 30, 2021,was
21 approved by Little Rock,Ark.,Resolution No. 15,246(June 23,2020); and,
22 WHEREAS, the Broker's recommendation to bind the City's Excess Workers' Compensation
23 Insurance Coverage with Safety National for a one (1)-year term from July 1 2021,to June 30, 2022,was
24 approved by Little Rock,Ark., Resolution No. 15,468(June 15, 2021); and,
25 WHEREAS, the City's 2021-2022 estimated payroll is One Hundred Twenty-Seven Million, Six
26 Hundred Seventy-Four Thousand, Nine Hundred Thirty-Six Dollars, ($127,674,936.00) with a premium
27 rate of$0.1894 per One Hundred Dollars ($100.00) of payroll with a deposit and minimum premium of
28 Two Hundred Forty-One Thousand, Eight Hundred Sixteen Dollars($241,816.00);and,
29 WHEREAS, the City's 2022-2023 payroll was reported at One Hundred Thirty-One Million, Four
30 Hundred Twenty-Three Thousand, Three Hundred Ninety-Eight Dollars ($131,423,398.00), the excess
31 Worker's Compensation Rate was $0.1894 for a premium of Two Hundred Sixty-One Thousand, Four
32 Hundred One Dollars($261,401.00).
33 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
34 OF LITTLE ROCK,ARKANSAS:
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1 Section 1. The Board of Directors hereby authorizes the City Manager to enter into a contract with
2 Safety National Casualty Corporation to provide Excess Workers' Compensation Insurance to the City for
3 one (1)-year, effective July 1, 2022, through June 30, 2023, for a premium of Two Hundred Sixty-One
4 Thousand, Four Hundred One Dollars($261,401.00).
5 Section 2. Funding for the renewal is allocated annually in the City's General Fund Budget line items
6 for Workers' Compensation, Account No. 100000-14010.
7 Section 3. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
8 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
9 adjudication shall not affect the remaining portions of the resolution, which shall remain in full force and
10 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
11 resolution.
12 Section 4. Repealer. All ordinances, resolutions, bylaws, and other matters inconsistent with this
13 resolution are hereby repealed to the extent of such inconsistency.
14 ADOPTED: June 21,2022
15 APPROVED:
16 �'dr.
17 .or.111111miraw.L qv-1N
18 Susa,41116 City Clerk Frank Scott,Jr.,Mayo
19 APPR / i S TO LEGAL FORM:
20
21 ,
22 Thomas M. Carpenter,ttly Attorne
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