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HomeMy WebLinkAboutAmending Chapter 16 Rules and Regu;ations of the Board of Public WorksORDINANCE No. 6049 -76 Passed by the Common Council of the City of South Bend, Indiana Presented by me to October 11 19 76 IRENE K. GAMMON of the City of South Bend, October 12 19_Z6 A� Approved and signed by me ��.e.�. / Clerk of Common Cmncd IRENE K. GAMMON rk�I ORDINANCE NO.6049 -76 AN ORDINANCE AMENDING CHAPTER 16, ARTICLE 2, OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA PERTAINING TO THE RULES AND REGULATIONS OF THE BOARD OF PUBLIC WORKS AND THE ADDITION OF AUTHORIZING THE TAKING OF PROPOSALS FOR INSURANCE COVERAGE OF THE CITY. NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF SOUTH BEND, INDIANA AS FOLLOWS: SECTION I. The following section of the Municipal Code of the City of South Bend, Indiana, shall be amended to read as follows: Section 16 -2 -B. Board of Public Works; purchase of all city insurance by competitive proposals. 1. Para. b Effective immediately all contracts for insurance coverage shall be subject to competitive proposals every three years. 2. Para. d Remove the word "sealed" and change one hundred and twenty (120) days to thirty (30) days. 3. Para. f Amend by changing the last word from "bidder" to "bidders ". 4. Amend by changing the words "bid" or "bids" to "Proposal" or "Proposals" wherever they appear in the ordinance. SECTION II. This ordinance shall be in full force and effect from and after its passage by the Common Council of the City of South Bend, its proper execution by the Mayor, and publica- tion according to law. Passed, as amended, October 11, 1976. Peter H. Mullen Director, Administration and Finance ��v�uTIp/ye /yam CITY of SOUTH BEND Z PETER J. NEMETH, Mayor W COUNTY -CITY BUILDING SOUTH BEND, INDIANA 46601 0DIMAN September 3, 1976 Members of the Common Council Council Chambers South Bend, Indiana Dear Council Members: The attached ordinance is for the purpose of amending Ordinance No. 5957 -76 passed earlier this year to ensure that the bidding process was used for insurance coverage. 219/284 -9742 The letter that I am attaching, from Corporate Policyholders Counsel, Inc., an insurance consulting firm from Chicago, indicates that the bidding process we are requesting be done by ordinance will cause a great deal more problems than it will solve. Their letter states that very possibly under the bidding process we could end up with no insurance companies bidding on our business. Their experience through- out the country has indicated that in fact, many cities that have used a similar process of obtaining their insurance have ultimately found that no insurance company will go through the bidding process as they had hoped. We are requesting that the amendment be passed in order to ensure a smooth transition into a better and tighter system of insurance coverage. Sincerely, Peter W. AUG 3 01976 Cpp PORATE Of FICEOF C TY OF7SOUTH BEND INDEPENDENT CONSULTANTS POLICYHOLDERS COUNSEL, INC. 20 N O R T H W A C K E R D R I V E CHICAGO, ILLINOIS 60606 V10 August 27, 1976 Peter H. Mullen, Controller City of South Bend County -City Building South Bend,•Indiana 46601 Dear Mr. Mullen: RE: ORDINANCE #5957 -76 SECTION 16 -2 B ESTABLISHED 1898 . (312) 372 -8225 We have reviewed the above ordinance and offer several sug- gestions for improvement and amendment so that the intent of the ordinance can be more realistically applied to today's insurance climate. We suggest that part (b) be amended to read: "All contracts for insurance coverage shall be periodically subject to com- petitive proposals." By adding the word "periodically" this tends to negate the need for "bidding" the insurance whenever there is a renewal. We suggest that paragraph (d) be omitted entirely. In today's insurance market, we do not believe that you will receive any proposals should you follow the procedure as outlined. Further, it is possible that under such a procedure, the existing insur- ance carrier will refuse to quote and you could very easily end up without any insurance market or coverage at all. This is actually a fact of life in today's casualty insurance market for municipal units and can easily be verified in discussion with any competent member of the insurance community. With the paragraph deleted entirely from the ordinance, it leaves the City with the option of either receiving competi- tive proposals from many sources or limited to several selective sources depending upon current market conditions. risk management Professional Counsel in / insurance employee benefits Peter H. Mullen, - 2 - August 27, 1976 Controller City of South Bend County -City Building South Bend, Indiana 46601 Paragraph (f) should be amended by changing the last word "bidder" to "bidders ". It is possible for part of the insur- ance to be awarded to one bidder while another part of the insurance will be awarded to another bidder. It is not neces- sary that all insurance be placed with the same insurance company. We would also suggest that if possible in any amendments to the ordinance, that any reference to "bids" be changed to "proposals" as this is a more acceptable term in the insur- ance community. I strongly urge that the City Council follow our advice on this matter as it could be extremely embarrassing in January should the City be without any insurance coverage as a result of following the competitive bidding process as outlined in the current ordinance. WL:lf Very truly yours, WILLIAM LEINHEISER Tommittrr Irport cao toe (t(ommon (founrit of t4r (ditg of oout4 send: Your Committee OF THE WHOLE to whom was referred AN ORDINANCE AMENDING CHAPTER 16, ARTICLE 2, OF THE MUNICIPAL CODE OF THE CITY OF SOUTH BEND, INDIANA, PERTAINING TO THE RULES AND REGULATIONS OF THE BOARD OF PUBLIC WORKS AND THE ADDITION OF AUTHORIZING THE TAKING OF PROPOSALS FOR INSURANCE COVERAGE OF THE CITY. Respectfully report that they have examined the matter and that in their opinion THIS ORDINANCE BE RECOMMENDED TO THE COUNCIL FAVORABLY, AS AMENDED. CHANGE PARAGRAPH B TO READ "Effective immediately all contracts for insurance coverage shall be subject to competitive proposals every three years." PARAGRAPH D REMOVE THE WORD "sealed" AND CHANGE one hundred and twenty days (120) to thirty (30) days. Frank Horvath Chairman RR C[ RR E99 � ,V6L19 RING EO.