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HomeMy WebLinkAboutCC Minutes 1986-01-03SRCC MINUTES (Special) 1/3/86 Page 1 In Conference 201 of the City of San Rafael, Friday, January 3, 1986 at 8:30 AM. Special Meeting: Present: Lawrence E. Mulryan, Mayor Dorothy L. Breiner, Councilmember Gary R. Frugoli, Councilmember Richard Nave, Councilmember Absent: Jerry Russom, Councilmember Also Present: Pamela J. Nicolai, City Manager; Jeanne M. Leoncini, City Clerk RE: LIABILITY INSURANCE - File 9-6-1 x 9-6-13 Mayor Mulryan called the Special Meeting to order and asked Finance Director Coleman to give a report on the status of the liability insurance problem. Mr. Coleman informed Council that he had just received two letters from Marsh & McClennan, stating that their company could not get any general liability insurance for the City, but that there was a proposal for an Errors and Omissions Liability Coverage which Mr. Coleman suggested Council consider taking at the highest level of coverage totalling $1,000,000. Mr. David Roebuck, Vice President with Marsh & McClennan, stated that the only market he was aware of in renewing municipalities, (Cities and Counties) would be the Planet Insurance Company, but that they do not do business with Marsh & McClennan. Mr. Roebuck stated that he understood that the Planet Insurance Company was approached on behalf of the City of San Rafael and was turned down because they are only writing renewals for selected policies. He continued to state that nobody else is writing renewals at the present time. Mr. Roebuck indicated that the other large carrier in the State, Trans- continental Insurance Company, has made the decision that they also will not renew any insurance with municipalities in the State of California. He indicated that Tort reform must happen in the State of California for insurance companies to be willing to write renewals for municipalities. Mr. Roebuck noted that they were exploring the possibility of getting a fronting company to put together some insurance on a selective basis for those cities that could meet the criteria, and that San Rafael has an excellent opportunity to obtain coverage when it becomes available. Mr. Coleman gave an overview of options that are possible but not at the present time, stating that several Joint Powers Agreements (JPAs) are looking into forming a super pool, and that if the Marin JPA does join the super pool, then the City of San Rafael would have that option of becoming a member, but that this would not be operational until February 1, 1986. Another option is possibly forming a JPA with several other cities that are not currently in a JPA (Cupertino, Fairfield, Santa Cruz, Sausalito and Vacaville). The lead is Marsh & McLennan, and the City of San Rafael is to decide if they want to pursue this option. Also, Mr. Coleman asked the Council for the authority to spend up to $3,000 for the work that will involve putting together a JPA with other cities that would take about four to six months to be operational. Mr. Wendell Wong, Vice President with Marsh & McLennan, stated that the alternatives were few and far between, and gave background as to the collapsing of insurance renewals for the commercial marketplace, and that Marsh & McLennan will continue to explore alternatives. Mayor Mulryan inquired as to the number of cities that were without insurance before January 1, 1986, and was told that the cities they knew about in the Bay Area, were Berkeley, Oakland, Sausalito and San Jose, and now San Rafael. SRCC MINUTES (Special) 1/3/86 Page 1 SRCC MINUTES (Special) 1/3/86 Page 2 Mr. Bill Benson of Insurance Consulting Associates, Inc. (ICA) gave a statistical report on the amounts paid out by the City on liability insurance and lawsuits from 1980 to 1985. Mr. Benson indicated that other than 1982/83, the amounts paid out had not changed drastically and also had not exceeded $500,000. Mr. Michael Patterson, Senior Vice President of ICA, referred to a report he submitted indicating the causes of liability claims filed against the City since the City became self-insured in 1978. Mr. Patterson stated that the areas he is concerned with are the "slip and fall" situation and motor vehicle operation. Mayor Mulryan stated that the report was excellent and suggested that a stepped up relationship between the City's staff and Insurance Consultants Associates, Inc. be made on the risk management issue. Also, that the possibility of forming a JPA with 6 or 7 cities be explored. Councilmember Nave moved and Councilmember Breiner seconded, to authorize the amount of $3,000 be used for the possibility of forming a Joint Powers Agreement for liability insurance for the City of San Rafael. AYES: COUNCILMEMBERS: Breiner, Frugoli, Nave & Mayor Mulryan NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Russom Councilmember Breiner moved and Councilmember Nave seconded, to authorize the $1,000,000 coverage on Errors and Ommissions submitted by Marsh & McLennan. AYES: COUNCILMEMBERS: Breiner, Frugoli, Nave and Mayor Mulryan NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Russom Councilmember Breiner was concerned about the Parks and Recreation Department having taken on a childcare program not within the City's jurisdication, and asked if it would be advisable to require that people sign a waiver form releasing the City of any liability. It was recommended that this item be brought to the attention of the City Attorney's Office for their input. City Manager Nicolai stated that she would be meeting with Michael Patterson and Bill Benson of Insurance Consultants Associates before the Council meeting of January 20, 1986, to discuss specifics about the loss control program that the City might be able to implement with them, and will come back to Council with an updated status report. JE NSM. LEONCI, City Clerk APPROVED ON DAY OF MAYOR OF THE CITY OF SAN RAFAEL SRCC MINUTES (Special) 1/3/86 Page 2