Minutes - Council - 01/27/2009 - Laserfiche WebLink

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collapse, which could not cover all the losses. He asked what the additional cost would be if the City waived only up to that limit, capping exposure at $400,000 for a negligent act. Mr. Lenz stated he does not have renewal costs yet, but from the standpoint of last year, it would be approximately $14,000-$15,000 additional. Motion by Councilmember Look, seconded by Councilmember Elvig, to adopt Resolution 09- 01-025 Not Waiving the Statutory Tort Limits for League of Minnesota Cities Insurance Trust Liability Coverage for the City of Ramsey. Motion carried. V oting Yes: Mayor Ramsey, Councilmembers Look, Elvig, McGlone, and Wise. Voting No: 'Councilmembers Dehen and Jeffrey. Absent: None. Case #7: Consider Contract for Agent of Record for Property, Casualty, and Workers Compensation Insurance Assistant City Administrator Nelson explained the City has had an agreement with T.C. Field & Company since 1997 for agent of record services for property, casualty, and workers compensation insurance services. She stated T.C. Field has requested contract renewal for the 2009-2010 agreement year and consideration of the fee. She indicated a separate fee is paid to T.C. Field & Company for workers compensation insurance, which is 2% of premiums paid directly from premiums; for 2009, 2% of the premiums equates to approximately $2,224. She stated staff recommends authorizing the contract for agent of record services for 2009-2010 and an increase of $150 to the fee to T.C. Field for 2009 and $155 for 2010, which reflects a 3% increase for each contract year. Mr. Lenz stated most agents are paid on a commission basis and this is materially less than a commission basis. Councilmember Elvig stated he contacted three agents to see if they were interested in bidding on this business and all three respectfully declined, indicating they were familiar with the City's policy and agent and that the City has a good package in place. Councilmember Dehen asked if it is the City's policy to obtain quotes from other companies to make sure the City is receiving competitive rates. Assistant City Administrator Nelson stated staff has not obtained quotes but can send an RFP if the Council wishes. Councilmember Elvig stated he contacted other agents primarily to see if a better opportunity exists to privatize the City's insurance coverage versus through the League of Cities program. He added the League has an excellent reputation and this is a reasonable fee. Motion by Councilmember Elvig, seconded by Mayor Ramsey, to approve Resolution #09-01- 026 Authorizing Contract with T.e. Field & Company for Agent of Record Services for Property, Casualty, and Workers Compensation Insurance. City Council / January 27, 2009 Page 10 of20