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-3- <br />Finally, staff would like to point out that we have been advised by <br />a knowledgeable source in the risk management field that it is the <br />standard practice of almost all insurance agents, including Trans- <br />continental Brokers, to object to the hiring of a risk management <br />consultant by one of their clients in the manner done so by <br />Mr. Hadtrath. In fact, this individual was able to tell us nearly <br />word for word what Mr. Iadtrath's objections were without his ever <br />having seen our letter. Attached to this memorandum is a letter staff <br />proposes to have the Mayor send to Mr. Hadtrath at Transcontinental <br />Brokers advising him that it is the City's intent to put the City's <br />insurance coverage out for open bid at the time such coverage comes <br />up for renewal and request their full and complete cooperation with <br />Corporate Risk Management, Inc. in obtaining competitive insurance <br />quotations. We feel that this would insure that the best interests <br />of the City of Mounds View are being served. <br />Staff would wish to emphasize at this time that it is not our desire <br />to get into a name calling contest or anything similar to it with <br />Mr. Hadtrath and that the major reason for our recommendation to the <br />Council for the hiring of a risk management agent was to bring in <br />an unbiased, disinterested third party to review the City's insurance <br />coverages and risk efforts, and assist the City in making whatever <br />modifications would be necessary to modify our coverage in such a <br />manner that it would provide us with all the protection necessary but <br />do so at the lowest possible cost. If through the proposed open <br />bidding process, which will occur in the Spring of 1984, Mr. Hadtrath's <br />firm is able to provide such coverage at the lowest possible cost, his <br />firm would more than likely continue to be the City's insurance agent, <br />however, there are numerous agents in the Metropolitan area providing <br />insurance coverage to municipalities and we should be able to look at <br />all of these agencies to determine whether or not they are capable of <br />providing us with the coverage we desire at the lowest possible cost <br />and with an adequate level of service to our account. <br />DFP/pf <br />Attachment <br />