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TO: Mayor & Council <br />FROM: Finance Diroc tor-Trea.tire r <br />ATE: March 15, 1984 <br />RE: INSURANCE SPECIFICATIONS <br />Mr. Brian Colway of Corporate Risk Managers, Inc., our insurance <br />consultant, will be present Monday evening to review the insurance <br />specifications which were released to interested parties at noon <br />today. A copy of those specifications is attached for your review <br />and consideration. <br />Prior to the release of those specifications staff became aware <br />that an agent had drawn up specifications on behalf of the City and <br />submitted those specifications to an insurance company and requested <br />quotations for insurance coverages. Staff became concerned that this <br />action could have an adverse effect on the bidding process. In most <br />instances an insurance company will only honor the first request re- <br />ceived for an insurance quotation on a particular individual or <br />business. Since the market for insurance for cities is limited to <br />a handful of insurance companies it is possible that a single agent <br />could tie up all markets. Such an action could preclude fair and <br />competitive bidding. It is possible an agent who picked up specifi- <br />cations today at noon and went directly to an insurance company for <br />a quotation could be refused a quotation by that company on the basis <br />ti. that the company had already provided a quotation to another agent. <br />After consulting with the City Attorney, the Clerk -Administrator and <br />I issued a notice stating that the specifications released today are <br />the sole and exclusive specifications for the City. This will, we <br />believe, help to ensure fair and competitive bidding for our insurance <br />contracts. <br />DB/ds <br />Attachment <br />