Agenda Packets - 1985/12/16 - Laserfiche WebLink

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r_ December 11, 1985 Page 3 directors and school business officials, that the market for governmental insurance in MinnesotA is shrinking very quickly. inuring the past three months our present insurance carrier, Home Insurance Company, has been refusing to renew any insurance coverages for many of their governmental c)ients. This fact combined with the withdrawal of many other insurance companies from the governmental insurance market may leave the City with two insurance rombanuos from which to obtain coverage: The League of Minnesuta Cities Insurance Trust (LMCIT) and perhaps Insurance Company of North America (INA). At this time INA is a big question mark. I believe that it is important now, more than ever before to retain the services of an insuran-e conultant give❑ the present market conditions and the past experience that the City has had with it's insurance renewals. The money budgeted for the renewal of the insurance consultant's contract is contained within the City's 1985 Budget. The budgeted amount was $4,500. The proposed renewal contract of $3,800 is $700 under budget. The contract proposed by Corporate Risk Managers stated "this contact is based on an estimated eight days at the rate of ' $475 per day. Any days over the estimated eight days will be additional at the daily rate of 5475." I have contacted Corporate Risk Managers and suggested a modification to the contract. This modification would state that prior to performing any work which would exceed the estimated eight days Corporate Risk Manaqers would obtain authorization from the City prior to performing any further work. Such a request and the subsequent approval would be in writing. RECOMMENDATION: Renew the insurance ano risk management consultant services contract with Corporate Fisk Managers, Inc. for the period 11/1/85 - 86 in the amount of S3,E00 with the contract modifications presented above. DB/ds