1977 10 12CITY OF MOSES LAKE
MOSES LAKE,WASHINGTON
CITY COUNCIL MEETING -SPECIAL SESSION
CITY HALL -COUNCIL ROOM
October 12,1977
8 p.m.
Members present:Don Swanson,Kent Jones,Bill Moe,Norm Johnson,Jim Barney,
Bob Hill,and Eric Skaug
The meeting was called to order at 8 p.m. by Mayor Don Swanson.
This meeting is for the purpose of discussing municipal insurance.
Mr.Swanson introduced Dr.Wickman from the University of Washington.
Dr.Wickman stated that he would try to serve the needs of the City of Moses Lake
in regards to risk management.He stated that there are three things important in
setting up a risk management program:
1.Reduce the number and seriousness of losses
2. Make sure the city can get hold of the money after a loss and be able to continue
the high level of city functioning
3.Make a long term commitment
He stated that the brokers should be creative in setting up a program of risk
management and that a full set of information is available.The deadline date
for proposals is December 1, 1977 and coverage will start on January 1,1978.
Dr.Wickman stated that he had informed the Council that insurance underwriters
are not enthusiastic about seeking out municipal business and the market is very
tough.He recommended that the insurance underwriters be contacted by only one
broker.
Bob Coyle,Security Associates, stated that in drafting this proposal you have
precluded any agent or broker other than the existing broker from submitting a
proposal by your wording on page 2 "However, the city will not disclose details
regarding the status,premiums,or terms of any insurance coverages that may be
presently in force or which may have been in force in the past."He stated that
two of his companies require three years experience of premiums and losses on all
lines of insurance before they will even consider the risk.
Dr.Wickman stated that it was not the intent of the proposal to preclude anyone.
He stated that the main intent was to have the brokers come up with an insurance
package which they feel will best meet the city's needs.
Mr.Coyle stated that no insurance package could be set up without the information
on premiums,losses,etc.
The question of the price of the insurance package was brought up and Dr.Wickman
stated that the price is not the key consideration in what he will recommend to the
Council.
Bill Korach of Ephrata stated that he would like to know if the Council will be
qualifying brokers or proposals and he felt that more than one broker going to the
market place would not clutter it up. Dr.Wickman stated that the Council has not
decided at this time to accept any particular proposers as the city's insurance
shop. He stated that he would recommend to the Council that proposers present a
total package which will include some coverage that will have to be sold in the
market place.
Bob Trask pointed out that there are brokers in Moses Lake that have contacts with
the company that underwrites the present insurance for Moses Lake and he felt that
the money spent on insurance should be kept in Moses Lake.
Mr.Skaug stated that Dr.Wickman was hired after it had been decided to call for
proposals from those people submitting pre-proposal questionnaires.He was hired
to recommend the best way to proceed on this.
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CITY COUNCIL MINUTES:2 October 12, 1977
Dr.Wickman stated that he would recommend that the Council limit the number going
into the market place.
Dr.Wickman stated that he would recommend that the Council put greater emphasis
on selecting a broker.This would tend to minimize some of the market hassle.
Mr. Jones wanted to know if a meaningful proposal could be developed without
addressing the premium question.Dr.Wickman stated that in his work with school
boards the emphasis has been on broker selection.He stated that the brokers
would present the kinds of services they had available and what they felt would
be useful.
Mr.Skaug stated that perhaps it would better to go with a broker procedure instead
of the current process.
Mr.Barney stated that he felt the broker for the city should be local.
Mr.Oman wnated to know what would be looked for if the Council shopped for a broker.
Dr.Wickman stated that they would look at length of time, length of experience and
what the experience has been, how much of it is comparable in size and complexity,
what kind of success has the broker had with other similar kinds of accounts,and
how long the company stays with the broker,as stability within the account is
important.
Tom Harmon of Fred S.James stated that he felt it would be better for the city
to choose a broker and let him contact the market rather than having all the brokers
contact the market.
It was the consensus of the brokers present that no proposal could be drawn up
without more information,and that it would be almost impossible to separate the
proposal and the cost.
The following brokers were present and introduced themselves:Gene Fields,
Phil Hanks,Bill Korach,Robert Trask, Dorse Oman, Bob Coyle, Bud Morgan, Tom
Harmon,Don Blessing,and John Rogers.
Mr.Swanson stated that it is necessary to control the number of agents going
to a market.
Mr.Swanson moved that the agents be limited to one market,seconded by Mr. Jones.
Mr.Jones wanted to know if it would be possible for the brokers to give a proposal
without having the existing coverage.
Mr.Johnson wanted to know how many people would be willing to go along with
this with the change on premiums and losses.
It was pointed out that John Rogers would have Safeco.
The question was called for.
The motion passed with Mr.Johnson opposed.
There was some discussion and it was pointed out that it would be difficult to
prepare a good insurance package if the brokers were restricted to one under
writer.Mr.Waggener stated that this would only be for the primary insurance
coverage and not for things such as errors and omissions,false arrest,etc.
Dr.Wickman suggested that emphasis be placed on broker selection instead of bid
quotes.
Mr. Swanson stated that he thought the agents were going to present a proposal
and a broker would then be selected on the proposal presented.He suggested
that the information requested by the brokers be released.
It was pointed out that if each broker was limited to one market the Council
would be receiving only 7 proposals and the brokers did not think this was
enough.They wanted to know how they were to know who got what market.
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CITY COUNCIL MINUTES:October 12,1977
Mr.Waggener suggested that the brokers call his office with their requests
for a market and he would keep track of who was contacting each market.
It was pointed out that several of the brokers have already contacted more
than one market. It was pointed out that it would be extremely difficult for
the brokers to mutually agree on which market they would contact.
Mr.Rogers of Rogers and Norman suggested that the Council determine the names
of three or four firms and allocate the companies by mutual agreement. He felt
a broker should be selected to represent the city and he felt there was sufficient
information already given to the brokers.
Mr. Swanson stated that he would like to see a proposal on what the brokers plan
to offer the city and perhaps get some new ideas.
The meeting was adjourned at 10 p.m.
Donald E.Swason,Mayor
ATTEST:
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R. C.Bierma,City Clerk