1977-11-29 Special CC Minutes100
SPECIAL MEETING OF THE COUNCIL OF THE CITY OF ALAMEDA
HELD TUESDAY NOVEMBER 29, 1977
Meeting convened at 6:00 p.m. in the Council Chamber of the City Hall with President
Corica presiding.
ROLL CALL: Roll was called and Councilmen Beckam, Diament, Sherratt, Tillman and
President Corica, (5), were noted present. Absent: None.
Receipt of the Notice and Agenda of this Special Meeting had been acknowledged by
the Councilmen and was on file. Purpose of the session was for consideration of
(1) proposals for the Municipal Liability Insurance Program - City of Alameda/
Bureau of Electricity; (2) extension of Lease between City and the Harbor Tug and
Barge Company; (3) award of contract for Clearing, Staking and Grading for the Golf
Course Realignment-City Line Road Project, Phase I, and (4) action on the above
items, if desired.
REPORTS AND RECOMMENDATIONS:
1. Consideration of proposals for Municipal Liability Insurance Program - City of
Alameda/Bureau of Electricity, and action thereon, if desired.
Assistant City Manager Creagh explained the proposals which had been received from
Alameda Associates and Kindler, Laucci. He briefly reviewed the procedure followed
in soliciting proposals, and referred to his written report, which he stated covered
the essentials and the recommendation and provisions. He noted the Public Utilities
Board, at its meeting held November 28, 1977, had considered and adopted the recom-
mendation and provisions, had named Alameda Associates as their carrier of record,
and had authorized payment by the Bureau of their proportionate share of the
initial premium on the joint liability and property damage insurance policies.
Mr. Creagh reported the one year program recommended by staff and the consultant
firm of Mund, McLaurin & Company, represented (1) selection of the $100,000 retention
option; (2) a first year reserve amount of $175,000, with the Bureau to share between
20% and 25%, to be determined when exact criteria was established; (3) approval of
the payments of premiums to the broker for the shares of the City and Bureau; and
(4) the naming of Alameda Associates as broker of record for a one year term from
January 1, 1977.
There followed a discussion of the reserve amount and the adequacy of the S100,000
retention option, with questions being answered by Mr. Creagh and Mr. Don DeVere
of Mund, McLaurin & Company.
Councilman Tillman moved acceptance of the recommendation. He noted the bid of
Alameda Associates in the amount of S203,176 was $81,286 less than that of Kindler,
Laucci in the amount of S284,462; also that Alameda Associates would provide broader
coverage than proposed by the second bidder, who had submitted no quotation on some
of the items. The motion was seconded by Councilman Diament.
At the suggestion of Councilman Beckam, Councilman Tillman moved his motion be
amended by adding approval of the S175,000 first year minimum contribution to the
reserve fund by the City with the Bureau contributing its share based on its percent-
age of premium payments, that Plan III be adopted, and Alameda Associates be named
the City's broker of record for this program. Councilman Diament consented to the
amendment. The motion, as amended, carried unanimously on roll call vote.
Mr. William Godfrey of Alameda Associates asked that the Council appoint an Adminis-
trator for the program, and authorize immediate payment of the premium.
Mr. DeVere reported the Administrator would make the adjustment of claims up to
$100,000; that Admiral Insurance Company, who would carry 60% of the coverage,
demanded one of the following three Administrators: George Hill, R. L. Kautz, or
Brown Brothers. He reported the City had received proposals from R. L. Kautz and
ESIS; that ESIS was not acceptable to Admiral, and he would recommend appointment of
R. L. Kautz as Administrator of the City's Liability program up to $100,000. He
further recommended the payment of the requested premium to Alameda Associates, with
the stipulation that the broker advise the City and Bureau of any restrictive clauses
or endorsements to the excess policy that are not included in the primary insurance
through Admiral.
Councilman Sherratt moved that R. L. Kautz be selected as Administrator of the
program for the fee of S6,900. The motion was seconded by Councilman Beckam and on
roll call carried unanimously.
Councilman Beckam moved the insurance premium be paid, seconded by Councilman Diament,
carried unanimously on roll call vote.
Councilmen Sherratt and Tillman suggested that in future years the matter of the
City's insurance coverage in all areas be brought up for consideration at an earlier
date, rather than at the last minute.
2. Consideration of extension of a Lease between the City and the Harbor Tug and
Barge Company for Tidelands Trust property located near the northerly terminus of
Grand Street, and action thereon, if desired.
The Assistant City Manager reported that certain tidelands were leased to Harbor Tug
and Barge Company under two different leases; that the land separately leased would
be better leased as one unit; that one of the leases expired December 2, 1977, and
the other on April 16, 1978.
Councilman Sherratt moved acceptance of the report and consideration of the resolution.
The motion was seconded by Councilman Beckam and carried unanimously on voice vote.
RESOLUTIONS:
3. The following resolution was introduced by Councilman Beckam, who moved its
adoption:
"Resolution No. 8826
Authorizing Extension of Tidelands Trust Lease, Harbor Tug
and Barge Company, 1.8 Acres on Estuary Near Grand Street
Boat Ramp."
The motion to adopt said resolution was seconded by Councilman Sherratt and carried
on the following roll call vote. Ayes: Five. Noes: None. Absent: None.
The President declared the foregoing Resolution Adopted.
REPORTS AND RECOMMENDATIONS:
4. Consideration of award of contract for Clearing, Staking and Grading for the
Golf Course Realignment-City Line Road Project, Phase I, PW 11-77-12, and action
thereon, if desired.
The City Manager reported the low bid received from Brown & Sons was invalid in that
it did not submit a list of subcontractors as required by the specifications. In
addition, the bid did not meet the ten percent minimum requirement of the Economic
Development Administration for minority business enterprise involvement, and had
only eight p8rCent. He stated the Second low bidder, Francis Construction Company,
was a total minority contractor and would meet the requirement by one hundred percent.
An explanation of the EDA requirements was supplied by Mr. Rob Wonder, Assistant to
the City Manager.
At the conclusion of discussion, Councilman Beckam noted that in accepting the grant
from EDA, the City had said it would require the ten percent minority business
involvement; that the bid documents and pre-bid conference spelled this out definitely
and specifically; and that upon receipt and opening of the bids it was found the low
bidder, Brown & Sons, had not met this ten percent requirement. He moved award of
the contract to Francis Construction Company in the amount of $69,183.67, seconded
by Councilman Sherratt, carried by unanimous voice vote.
ADJOURNMENT:
5. There being no further business to come before the meeting, the Council
adjourned at 7:10 p.m.
Respectfully submitted,