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<br />TUESDAY, DECEMBER 8, 1987 <br /> <br />.,c- <br /> <br />City Manager Brown reported that, through the efforts of Mr. Dick Fisher, of <br /> <br />Industrial Insurance Management Corp., (the City's insurance consultants) and of <br /> <br />the Manry-Rawls Corporation of Colonial Heights, Virginia (represented by Mr. <br /> <br />Frank Beale at this meeting). the City is offered a proposal by the New <br /> <br />Hampshire Insurance Company to provide the City with property-motor vehicle- <br /> <br />comprehensive general liability insurance coverage (including the City's <br /> <br />electric utility and prison farm operations and exposures) for an annualized <br /> <br />premium of $237,720.00, including an umbrella option coverage of $2,000,000.00. <br /> <br />effective January 1, 1988. for a period of 18 months. or to June 30. 1989. <br /> <br />Mr. Brown noted that sufficient funds are included in the current budget to <br /> <br />cover premium costs through June 30. 1988, and recommended that the City accept <br /> <br />this proposal and, also, cancel current property and motor vehicle insurance <br /> <br />coverage as of January 1, 1988 (on which the City should receive 50% of the <br /> <br />premiums paid, less a 10% cancellation penalty). By memorandum dated December <br /> <br />4. 1987, Councilman McClain indicated that he has no problem with accepting the <br /> <br />proposal for the last six months of the City's current year but has concerns <br /> <br />with accepting it for fiscal 1988-89 inasmuch as such acceptance will commit the <br /> <br />City to a $117,720.00 increase in appropriations for 1988-89 insurance premiums <br /> <br />(over 1987-88). Councilman McClain also pointed out that non-acceptance for <br /> <br />1988-89 at this time would allow Council to consider the advantages and/or <br /> <br />disadvantages of reverting to self-insurance for comprehensive general liability <br /> <br />coverage and continuing set-aside reserves. as the City has done since June 30. <br /> <br />1986, or seek new bids for 1988-89 which might turn out to be favorable. In <br /> <br />response to queries from members of Council, Mr. Fisher recommended that the <br /> <br />City accept the proposal as offered (being for the period January 1, 1988 <br /> <br />through June 30, 1989) inasmuch as he now anticipates no <br /> <br />~~ <br /> <br />.- <br />