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REGULAR MEETING
<br />DECEMBER 3, 1985
<br />after December 31st, this package will have to be written on a
<br />claims made basis for general liability and police indemnity.
<br />Additionally, the sample policy is written on an occurrence
<br />basis. Mr. Vance additionally advised that the Gallagher
<br />proposal indicates a service fee to provide claims management,
<br />loss prevention and information services.
<br />Mr. Vance advised that the two (2) proposals submitted today will
<br />be evaluated by his office and Corporate Policyholders Counsel,
<br />Inc., the City's consultant on this matter.
<br />Mr. Jerry Miller, Bridge, Holland and Miller Insurance Agency,
<br />advised that the proposal submitted by his company does not
<br />contain coverage for real and personal property, business
<br />interruption, catastrophe (umbrella) excess liability, crime and
<br />public officials errors and omissions but the company will be in
<br />a position, after January 4, 1986, to submit quotes for that
<br />coverage.
<br />Upon a motion made by Mr. Leszczynski, seconded by Ms. Barnard
<br />and carried, the proposals as submitted were referred to the City
<br />Controller's office for review and recommendation.
<br />In response to questions by the news media, Mr. Vance advised
<br />that in 1984 the cost of property insurance was approximately
<br />$38,000.00 with that cost increasing to $98,000.00 in 1985.
<br />Further, at the present time, the City can expect to pay
<br />approximately $200,000.00 for the first $1,000,000.00 of coverage
<br />for the umbrella coverage. Mr. Vance stated that insurance costs
<br />have risen substantially and he did expect the figures received
<br />today to be higher than in the past.
<br />In further response to inquiries by the news media, Mr. Vance
<br />stated that the City is required, by the Municipal Code, to seek
<br />proposals for insurance coverage every three (3) years. However,
<br />the insurance policies are written on an annual basis and
<br />proposals can be requested more often than three (3) years if
<br />desired.
<br />Mr. Vance stated that currently the City is under a
<br />self-insurance retention program retaining the first $100,000.00
<br />of general liability with insurance retained for claims over that
<br />figure. He stated that the City's $1,000,000.00 coverage with a
<br />$5,000,000.00 umbrella coverage expires in January. He further
<br />stated that the proposal submitted by Bridge, Holland and Miller
<br />addresses the $1,000,000.00 needed coverage but does not address
<br />the $5,000,000.00 umbrella coverage. Mr. Vance stated that both
<br />proposals submitted are incomplete in the coverage required by
<br />the City. Further, even though the premium prices appear to be
<br />much higher than last year, they are affordable. However, he
<br />stated that he plans to review the proposals with Corporate
<br />Policyholders and will try to take any options the City can
<br />utilize to reduce the cost.
<br />Mr. Dick Maginot of WSBT-TV stated that there has been some
<br />movements taken in the State legislature to correct the problems
<br />which municipalities are experiencing in having to pay high
<br />premiums for insurance coverage. Mr. Vance responded that he was
<br />aware of that attempt but at the time he reviewed the matter he
<br />was not sure the City would benefit from the insurance pool that
<br />was proposed. However, at this time, because of the high
<br />premiums submitted for insurance coverage, perhaps the City would
<br />be in a position to benefit from the plan.
<br />APPROVE PROPOSAL OF MC GLADREY HENDRICKSON & P
<br />CITY-WIDE COST ALLOCATION PLAN AND INDIRECT COS
<br />FOR 1985
<br />Mr. Michael L. Vance, Director, Administration
<br />submitted to the Board a proposal from McGladry
<br />Pullen, Certified Public Accountants, 340 South
<br />ERFORM
<br />RATE
<br />& Finance,
<br />Hendrickson and
<br />Columbia,
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