HomeMy WebLinkAbout(0030) M&C 21-0241City of Fort Worth,
Mayor and
DATE: 04/06/21
Texas
Council Communication
LOG NAME: 14WCIN2021
SUBJECT
M&C FILE NUMBER: M&C 21-0241
(ALL) Authorize Payment of Excess Workers' Compensation Insurance Policy for Calendar Years 2021, and 2022 from Safety National Casualty
Corporation through Roach Howard Smith & Barton, Inc., in the Amount of $1,335,360.00 and Authorize Payment Up to $100,000 for Anticipated
Audits for Policy Years 2020, 2021, and 2022 from Safety National Corporation through Roach Howard Smith & Barton, Inc.
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize payments of the Excess Workers' Compensation Insurance Policy from Safety National Casualty Corporation through Roach Howard
Smith & Barton, Inc., in the amount of $1,335,360.00 for two policy years 2021 and 2022; and
2. Authorize payment of up to $100,000 for anticipated audits for policy years 2020 and 2021 and 2022 for the Excess Workers' Compensation
Insurance Policy from Safety National Casualty Corporation through Roach Howard Smith & Barton, Inc. which will be dependent on future audit
results.
DISCUSSION:
The City's Excess Workers' Compensation Insurance Policy (Policy) expired on January 1, 2020. City Secretary Contract 49885 allows for two (2)
one-year renewals. The current Policy is underwritten by Safety National Casualty Corporation. The Policy provides statutory coverage for
workers' compensation, but with self -insured retention amounts of $1,750,000.00 per occurrence for general employees and $2,500,000.00 for
police officers and fire fighters. The two-year policy premium for this coverage for 2021 and 2022 is approximately the amount of $1,335,360.00
($642,438.00 for calendar year 2021 and $692,922.00 for calendar year 2022).
Roach Howard Smith & Barton, Inc., (RHSB), the City's contract broker of record, (City Secretary Contract No. 49885), for excess workers'
compensation insurance, recommends that the City purchase and bind coverage from Safety National Casualty Corporation (Safety National).
RHSB states that the purchase of this coverage from Safety National is the best and most advantageous coverage for the City. Safety National
holds an AM Best Rating of "A + XIII" (Superior) in the insurance industry. Safety National's policy would provide the following coverage with two
self -insured retention levels for an estimated premium in the amount of $1,335,360.00 for two years coverage. Base premiums for excess
workers' compensation coverage are based on payroll estimates provided by the City with a subsequent audit after the policy year determining the
final premium. The estimated audit premiums is up to $100,000.00.
Coverage �Type
Limits of
Liability
Self -Insured Retention (SIR)
Workers'
Statutory
$1,500,000.00 for General
Compensation
Limits
Employees
]=,2,250,010.00
for Police Officers
and Firefighters
In addition to excess workers' compensation insurance coverage, Safety National offers substantial ancillary services that include access to safety
consultation and compliance information, training and education programs for safety, environmental and employment issues, workers'
compensation analysis tools, online driver simulation and curriculum for law enforcement and firefighters and domestic crisis management
benefits. These services are available to clients of Safety National at no additional cost. While other excess insurers offer similar services, many of
these services are extra costs. RHSB Insurance recommends Safety National's excess insurance coverage and ancillary services as the best
value for the City.
M/WBE Office - A waiver of the goal for MBE/SBE subcontracting requirements was requested by the Human Resources Department and
approved by the M/WBE Office, in accordance with the City's ordinance, because the purchase of goods or services is from sources where
subcontracting or supplier opportunities are negligible.
Note of funding - The Fiscal Year 2021 budget includes money to fund this contract through September 2021. An appropriation for the remainder of
calendar year 2021 will be included in the Fiscal Year 2022 budget.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations funds are available in the current operating budget, as
previously appropriated, and upon adoption of the Fiscal Year 2022 Budget by the City Council, funds will be available in the Fiscal Year 2022
Operating Budget, as appropriated, within the Risk Financing Fund. Prior to an expenditure being incurred, the Human Resources Department
has the responsibility to validate the availability of funds.
Submitted for City Manager's Office b� Jay Chapa 5804
Originating Business Unit Head: Nathan Gregory 7783
Additional Information Contact: Chris Lam 6398
Expedited