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HomeMy Public PortalAbout8/26/1998 specialCity of Greencastle ® City Hall Four East Walnut Street Greencastle, Indiana 46135 Pamela S. Jones Clerk- Treasurer GREENCASTLE COMMON COUNCIL SPECIAL SESSION WEDNESDAY, AUGUST 26, 1998 5:00 P.M. PUTNAM COUNTY LIBRARY The Greencastle Common Council met in Special Session Wednesday, August 26, 1998, 5:00 p.m. at the Putnam County Library. Mayor Michael called the meeting to order. On the Roll Call, the following were found to be present: Councilor Roach, Councilor Hammer, Councilor Green, Councilor Bavnard and Councilor Masten. Also present was: City Attorney Trudy Selvia, Mark Forsythe, Insurance Audit and Inspection Company, Rick Bittles, HBG Insurance and Bonds, Kevin Padgett, Sycamore Agency, Carol Staab, Municipal Alliance Insurance Company, Joe Seav, Municipal Program Insurance Company and Brady Clemens, Wasau Insurance Company. Mark Forsvthe gave a brief overview of the Property and Casualty Insurance specifications and what his company was looking for. Mr. Forsythe explained the City has been on claims made coverage. Under this type of coverage, it doesn't matter when an accident happens as long as the policy is in force and a claim is made, it is covered. Most coverage, Mr. Forsythe explained, is going to occurrence based coverage. This coverage will cover liability if the accident happened during the coverage no matter when the claim is made. To change from claims made coverage to occurrence based coverage you do need priors act coverage, Mr. Forsythe explained. Mr. Forsythe stated the Municipal Alliance and Municipal Insurance Program both cover prior acts to $500,000.00 per occurrence. Penco Alternative Option II has a higher excess that covers up to $2 million and St. Paul has a "nose to tail" coverage for a one time payment of $13,280.00 which never expires. Company representatives gave brief presentations. Councilor Roach asked Mr. Bittles who our current carrier is. Mr. Bittles replied Bliss- McKnight and Bituminious are current carries. Councilor Roach asked why there is no bid from them. Mr. Bittles stated they are no longer competitive. Insurance representatives left the meeting for the Council to discuss numbers. Mr. Forsythe told the Council no matter who they went with the coverage is better with better limits and all special events are covered. After much discussion between members of Council, Councilor Masten made the motion to accept HBG, Penco Alternative Option II, with negotiation on the 5% deductible on the earthquake insurance and negotiate a longer tail coverage than 4 years with the price remaining at $124,553.00, with a $250.00/$500.00 deductible, seconded by Councilor Hammer. Councilor Roach stated he likes the Alliance Option II for $110,000.00. Even if we have to spend an additional $4,000.00 in additional flood insurance we will still save an additional $10,000.00. Councilor Baynard stated he feels like Councilor Roach, if we hadn't had this discussion would we still be paying the same with a company that is no longer competitive? Councilor Masten amended his motion as follows: if unable to negotiate the HBG policy, willing to accept Municipal Alliance Insurance through Sycamore Agency at the higher deductible in the amount of $102,114.00 with an additional rider for a total of $10 million in flood and earthquake coverage. After some discussion, Councilor Masten withdrew his motion. Councilor Roach made the motion to accept the Sycamore Option II with Indiana Municipal Alliance with the higher deductible in the amount of $110,114, with an additional rider for flood and earthquake insurance as need with a premium not to exceed 55,000.00. Motion seconded by Councilor Baynard. Vote as follows: Councilor Roach, yes; Councilor Baynard, yes; Councilor Hammer, no; Councilor Green, no; and Councilor Masten, no. Councilor Roach made the motion to accept the Sycamore Municipal Alliance Insurance Option #2 in the amount of $102,114, with the following conditions: adequate flood and earthquake insurance can be obtained for less than $5,000.00 and reference checks be made and those reference checks are satisfactory to the Mayor and Council President, seconded by Councilor Baynard. Vote as follows: Councilor Roach, yes, Councilor Baynard, yes; Councilor Hammer, no; Councilor Green, no; and Councilor Masten, no. Councilor Green made the motion to accept HBG Penco Alternative II. Motion died for lack of ® second. Councilor Hammer made the motion to accept HBG Penco Alternative II with negotiations on the 5% deductible for the earthquake insurance and extending the four year tail and not spend more than $125,000.00, with a 3 year rate guarantee. Council President Masten, CT Jones and Mayor Michael to negotiate these items, seconded by Councilor Masten. Councilor Roach stated he understands arguments to keep local and with HBG, but it bothers him and feels it is unfair to the other companies that bid their best offers to give an advantage to HBG and negotiate with the local agent and not give the others a chance to negotiate is completely unfair. If that is the way you want it, and negotiations are unfruitful, take it as it is and we'll check reference and change next year. Councilor Masten stated there is no denying it, it's not the best way to go and adds an amendment to the motion as follows: if unable to successfully negotiate with HBG, go with the Municipal Alliance Insurance Option II in the amount of $102,114.00 with additional flood and earthquake insurance not to exceed $5,000.00 in additional premium. Councilor Hammer accepts the amendment to the motion. Councilor Masten withdraws his second. Mayor Michael called Mr. Bittles to negotiate terms. Mr. Bittles stated the 5% probably isn't negotiable and neither is extending the four year tail. Councilor Green made the motion to accept Municipal Alliance Insurance Option 11 with additional flood and earthquake insurance with a premium not to exceed $5,000.00, higher deductibles with a premium amount of $102,114.00. CT Jones is to check references. Motion seconded by Councilor Roach. Vote as follows: Councilor Roach, yes; Councilor Green, yes; Councilor Baynard, yes; Councilor Hammer, no; and Councilor Masten, no. Motion passes. Mayor Michael asked the Council if it is possible to meet at 530 p.m., September 1, prior to the budget workshops to discuss the Wastewater Treatment Plant Study. Motion to adjourn made by Councilor Hammer, seconded by Councilor Roach. Vote was unanimous. ' r 07 Nancy A. Iichael, Mayor a Pamela S. Jones, E E•