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LIABILITY INSURANCE Mr. Jack Smith of Tausch Insurance Brokers, <br />SPECIFICATIONS Z700 N. Main Street, stated that he had <br /> recently received a set of specifications for <br />the City's liability insurance coverage; that members of his firm had reviewed the <br />specs; that the loser in the bidding is going to be the City; that his firm now writes <br />part of the County of Orange and three other major cities in Orange County; that they <br />are concerned that the specs contain some things that are not attainable) that bidders <br />were given only ten days to prepare a $100,000 to $150,000 bid; that a three-year bid <br />was requested, yet the premiums by the various companies cannot be guaranteed for <br />three years because of the automobile liability portion of the policy; that the City is <br />asking for a bid bond; that the specs state there will be a 60-day cancellation clause in <br />the contract; that the specs are not well drawn; that there is no payroll information <br />and the loss experience is not complete; that there is no emphasis on safety engineering; <br />that the present policy has a premium of approximately $150,000 with loss experience <br />of $40,000; and that the policy could be written with a minimum premium on a <br />retention basis, plus claims and administrative costs. He further stated that the <br />specs carry a non-discrimination clause similar to those on maintenance contracts; <br />that the program should emphasize safety, loss control, and should be put on a cost-plus <br />basis. He stated that his company plans to bid, but that it is not possible to get the <br />best bid with inaccurate and incorrect information; and that the City Council should be <br />aware of these matters and direct the administration to correct them~ <br /> <br />The City Manager stated that they have invited participation by the insurance groups <br />in the area to assist in the development of any changes in procedure and specification; <br />that the specs have been used for the past 15 years, with changes made from time to <br />time as some improvement or extension of coverage has been indicated; that costs <br />are comparable to other cities in California; that staff has used a tested procedure <br />which has worked well in the past~ <br /> <br />Mr. Wackerbarth of Harrison, Zeppegno & Bristol, the present insurance carriers, <br />stated that they believe the specs are extremely liberal and they will submit two or <br />three bids based on the latitude of the specs. <br /> <br />Councilman Patterson stated that some good points were raised and he hadn't heard <br />any good answers; that the specs should give adequate information; that he wants the <br />best insurance coverage possible for the least cost. <br /> <br />The City Manager state~i that lfe would be willing to provide addenda to the B'id Specs <br />to anyb'ody who indicates any interest in additional available statistical information. <br /> <br />CITY MANAGER A memorandum dated May 15, 1972, from <br />TERMINATION OF EMPLOYMENT City Manager Carl 3. Thornton to the <br /> City Council, officially notifying the Council <br />of his decision to terminate his employment with the City effective the close of business <br />June 15, 1972, and to take his retirement, was read alnudby the Clerk of the Council° <br /> <br />The memorandum was received and filed on the unanimously carried motion of <br />Councilman Herrin, seconded by Councilman Evans. <br /> <br />CITY COUNCIL MINUTES -206- May 15, 1972 <br /> <br /> <br />