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By: Kay AGENT OF RECORD BIDS McAIoney, Personnel Coordinator Case #1 I~ackground: On December 14, 1991 the current Insurance Service Agreement with Agent of Record Michael Hadtrath and the City of Ramsey will expire. The upcoming term of service would begin December 15, 1991 and continue and remain in effect for a period of three years, unless it is terminated prior to December 14, 1994 by either party giving the other ninety days prior written notice of termination. As Insurance Agent of Record, the City received two proposals. One from Michael Hadtrath of Hadtrath & Associates, our current Agent of Record, at a flat fee of $2,000 per year for the next three years. The other proposal is from Conway Olson of T. C. Fields, the City's former Agent of Record, at a flat fee of $4,061 per year for LMCIT policies plus commission on non-LMCIT for the next three years. Since the October 8th meeting there has been a clarification in the non-LMCIT policies stating that Mr. Olson's flat fee is comparable to the other bid received, as the City would be reimbursed any commission received by Mr. Olson's office for any non-LMCIT policies. Also enclosed in the October 8, 1991 agenda were the proposals received. Due to the nature of professional services, the City's selection for insurance Agent of Record need not be based solely on the Iow bid. As we discussed on October 8th at the Budget Committee meeting, the City has realized significant cost increases for the policy year beginning October 1, 1991. It is imperative that our Agent of Record and Staff work together to minimize risk and reduce overall insurance costs. By definition, risk management is the method for dealing with risks to which an organization is exposed by identifying all exposures and creating programs to handle them. To assist us in this selection process, I have contacted references given by both firms. Hadtrath & Associates represents twelve governmental clients and over 400 other clients. The City of Spring Lake Park was contacted and Mr. Don Busch stated that Mr. Hadtrath serves them well and they are satisfied. Mr. Hadtrath has represented the City of Spring Lake Park for over 10 years. Mr. Busch did point out that many of the risk management functions are performed by State Mutual, an insurance carrier. The City of Ham Lake was contacted and Ms. Doris Nivala stated that they are pleased with the representation they receive from Mr. Hadtrath and that he services them well. Mr. Hadtrath has represented their City for over 5 years. In the area of risk management services Mr. Hadtrath gets their quotes and takes care of any claims. T. C. Fields represents 35 governmental clients and over 36 other clients. The City of Fridley was contacted and Mr. Bill Hunt stated that Mr. Olson is the key to T. C. Fields and as long as he is with T. C. Fields, they will be interested in staying with that firm. Mr. OIson gives honest advice, is very straight forward and has represented their City for over five years. He always provides them with options even though there have been times that his advice is not taken. Mr. Olson is very involved with the Risk Management and sends notices of 'what's on the horizon'. Always proactive rather than reactive. As an example, Mr. Olson provided the City with information on the new AWAIR (A Workplace Accident and injury Reduction) law and helped develop a program for the new law that went into effect on July 1, 1991. Regarding the insurance that is purchased outside the LMCIT, he is always scanning different options and companies. The City of Cottage Grove was contacted and Ms. Caron Stransky stated that Mr. Olson has