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Peter H. Mullen <br />Director, Administration and <br />Finance <br />CITY of SOUTH 13END <br />PETER J. NEMETH, Mayor <br />COUNTY-CITY BUILDING SOUTH BEND, INDIANA 46601 <br />September 19, 1979 <br />Members of the Council <br />South Bend Common Council <br />4th Floor County-City Bldg. <br />Dear Council Members: <br />0�11W/O <br />L <br />LU <br />�74_ <br />//VDIMAN <br />219/284-9742 <br />There will be presented at first reading of the September 24, 1979 <br />Council meeting an ordinance which will enable the City to <br />make major changes in administering it's property and liability <br />insurance program, <br />During the last 10 years, we have seen the cost of the City's <br />insurance package increase from about $86,000.00 to $868,000.00 <br />in 1979. In lieu of this financially escalating situation, we <br />feel it is time to evaluate our position and look at alternative <br />methods of financing the potential risks created through the <br />day to day operation of the City. It is felt that the best wey <br />for the City to handle this situation is using combined programs <br />of self insurance and outside coverage depending on the specific <br />risk. <br />During the 1979 legislative session of the Indiana General <br />Assembly a law was inacted which now allows cities to set up a <br />cumulative fund to be used for the purpose of defraying those <br />expenses normally associated with providing insurance coverage <br />or retaining risk, The ordinance accompanying this letter <br />would authorize said fund, but more imp-ortantly, would support <br />in full the city's action in becoming self reliant in the area <br />of insurance. <br />It is felt that the city is in a position both financially and <br />professionally to evaluate it's operations and decide which <br />should be insured through outside sources and which should fall <br />into the category of retained risks. <br />