Agenda Packets - 1983/11/14 - Laserfiche WebLink

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-2- 3. Mr. Hadtrath indicates that the City's coverage is wr ;ten , very competitively, providing extremely broad comprehensive coverages. Staff will acknowledge that the City's insurance premiums have, over the past several years, reduced signifi- cantly but• would attribute this more to the insurance market and the fact that nearly all insurance companies have been able to reduce their premiums as a result of the improved interest• rates in the money market rather than any efforts on the part of staff or Transcontinental Brokers to modify our coverage, in fact, any changes made to the City's coverage have been in the manner of additions rather than subtractions. Also, although having extremely broad comprehensive coverage insures the City that we are very well protected, staff questions whether such broad and comprehensive coverage is necessary while maintaining a high level of risk protection. 4. Staff felt it was necessary to recommend to the City Council that a risk management firm be hired not only to review our current coverages and advise us whether or not they are necessary, but also to provide us with various risk management assistance and assist in the preparation of bid specifications and evaluation of insurance bids. Mr. Hadtrath asserts that as the City's insurance agent it is his job to explain coverages to us which is correct, however, Mr. Hadtrath does have a direct conflict of interest when we are requesting such an explanation in order to provide the best coverage possible at the least possible cost Mr. Hadtrath further states in his letter that he finds it hard to believe for the City to expend $3,200.00 for this service when we are having volunteers assist in our winter skating program and raise funds for neighborhood parks. Mr. Hadtrath specifically refers to the Groveland Park Association which provides rink maintenance and warming house supervision at the Groveland Park skating rinks, using local residents, with the City dedicating the monies the City would have expended for such efforts to the improvement of Groveland Park. Although the efforts of the Groveland Park Association and residents of the area are extremely admirable, we wish to emphasize to the Council that Mr. Hadtrath's efforts in this area are being done as part of a voluntary group and the City at no time has said that we would discontinue the operation of the war, ing house or skating rinks due to lack of municipal funds. Also, it sl.^uld be pointed out that many of the groups that we contacted througho,t the state regarding their success with risk management programs ad.-ised us that they were able to reduce their insurance premium costs equal to or greater than the amount of monies they were expending for such risk management services.