Agenda Packets - 1983/11/14 - Laserfiche WebLink

Home Browse Search

MEMO TO: Mayor and City Council / FROM: Clerk -Administrator DATE: November 17, 1983 SUBJECT: NOVEMBER 11, 1983 LETTER FROM MICHAEL L. HADTRATH On November 15, 1983 Councilmember Blanchard approached Finance Director Brager and myself regarding the referenced letter from Mr. Michael L. Hadtrath addressed to Mayor McCarty, dated November 11, 1963, making various assertions and accusations regarding the City's hiring of Corporate Risk Management to assist the City in evaluating our current insurance coverage and determining if such coverage is appropriate or changes can be made to improve coverage, as well as reviewing the City's operations to determine if various risk management efforts can be undertaken to reduce our insurance ratings. Mr. Brager and I feel that although Mr. Hadtrath has not addressed a copy of this letter to either of us, he has made assertions and accusations which we feel obligated to respond to in order that you might fully understand staff rationale for recommending the hiring of Corporate Risk Management or any risk management agency. We would like to respond to Mr. Hadtrath's statements made in his November 11, 1983 letter as follows: Mr. Hadtrath states that Transcontinental Brokers, Inc., of which he is a Vice President, offers risk management services at no cost. At no time in the three plus years the City has had Mr. Hadtrath as an insurance agent has an indication or offer of such services been provided. Also, since Transcon- tinental Brokers is the City's insurance agent, earning their income by means of a percentage of our insurance premiums, there would be a conflict of interest in their providing risk management services intended to reduce the City's insurance coverage and premiums. Mr. Hadtrath states that our current insurance company, Home Insurance, provides safety and engineering specialists, as well as building appraisals at no charge. As was stated under Item No. 1, at no time has the City of Mounds View been made aware of or offered these services except in the area of building appraisals. Also, it has been my past experience that building appraisals have been limited to an evaluation of the value of the structure and does not include an appraisal of the building's equipment or contents. Also, these appraisals are not provided in writing which would make it extremely difficult to use this information in a court of law should there ever be a dispute between the City and the insurance company mgarding the value of a structure after a loss.