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CASE #: '~ AUTHORIZE STAFF TO ENTER INTO AGREEMENT WITH INSURANCE AGENT OF RECORD FOR YEAR BEGINNING DECEMBER 15, 1997 By: Linda Waite Smith, Acting City Administrator Background: Risk management is one of a number of responsibilities of the Administrative Services Manager. Because insurance is a large, complex part of risk management, the City annually contracts with an insurance agent to provide insurance and risk management advice and assistance. We depend on the agent to be up-to-date on the latest developments in the field and in legislation and to be pro-active in notifying us about changes and areas of potential risk. Our agreement with the insurance agent of record is renewable on December 15. It specifies services the agent is to provide. The cost of the agent's services was $2,200 during the past year. Since assuming responsibility for risk management, I have been concerned that some services provided for in the agreement have not been delivered. I checked with two people who handled this responsibility before I assumed it. According to them, this agent has not provided these services in the past either. I initiated a meeting with the agent after the July storm damaged City property. I was not satisfied with the length of time it took him to respond to' my request for a meeting or with his responses during our meeting. Given my concerns, I asked him to submit a quote for services for the coming year. I also asked for a quote from another agent. The quote received from the current agent is for $2,000. The alternative quote is for $3,000. Staff Recommendation: Based on past experience, I recommend, and the Finance Officer concurs, that it is in the City's best interest to enter into a one-year agreement with T.C. Field & Company for the amount of $3,000, effective December 15, 1997. The lower cost agreement continues a business relationship that provides the City with what we consider to be inadequate service. Based on checks with references, we believe the finn giving the higher priced quote will deliver on the services delineated in the agreement, which are the same as the current agreement. Committee Action: Recommend that City Council authorize staff to enter into an agreement with T.C. Field & Company to serve as the City's insurance agent of record for one year, beginning December 15, 1997, for a fee of $3,000. Reviewed By: Acting City Administrator Finanace Officer CC 10/28/97 Copies also distributed to: lindas\insuragt.97