1977-06-29 Special CC Minutes365
SPECIAL MEETING OF THE COUNCIL OF THE CITY OF ALAMEDA
HELD WEDNESDAY - - - - - - - - - - - - JUNE 29, 1977
The meeting convened at 4:30 o'clock p.m. in the Council Chamber of the City Hall with
President Corica presiding.
ROLL CALL:
The roll was called and Councilmen Diament, Sherratt, Tillman and President Corica, (4),
were noted present. Absent: Councilman Beckam, (1).
1. Receipt of the Notice and Agenda of this Special Meeting had been acknowledged by the Council-
men and was on file. The purpose of this session was for discussion of Excess Insurance for the
City-Bureau of Electricity Workers Compensation Self-Insured Program, and Action thereon, if
desired.
REPORTS AND RECOMMENDATIONS:
2. From the Assistant City Manager concerning proposals for Excess Insurance coverage, City of
Alameda/Bureau of Electricity Self-Insured Workers Compensation Program.
President Corica reported receipt of a communication from Alameda Associates, and asked the
Assistant City Manager to briefly review his report.
Mr. Creagh stated that based upon the analysis of the bids submitted, the recommendation in his
report was that the City Council approve the purchase of workers compensation excess insurance
from Employers Reinsuroce Corporation and International Surplus Lines Insurance Company through
the brokerage firm of Insurance Intermediaries Brokers. He said he questioned whether Alameda
Associates would be able to perform in time for the July 1 deadline, and this had been the basis
for his recommendation. He reviewed his reasoning. He noted that Mr. William S. Godfrey,
Senior Vice President of Alameda Associates, had now submitted to the Council in writing an assurance
that Alameda Associates would guarantee to the City that, with a Broker of Record letter to
Employers Reinsurance Corporation, their quote would remain at $31,810, at a rate of .3088,
which would mean that the total premium for the excess insurance over the $250,000 retention,
for a total amount of coverage up to $5,000,000, would be $41,260.
Mr. Creagh stated he had no problem with Alameda Associates' guarantee, however, should they
be unable to perform for some reason, he wasnot sure exactly what would happen. He said it
would be his recommendation that the City proceed to acct the guarantee as proferred by
Alameda Associates and allow them until 11:00 o'clock a.m., June 30, to perform, and if they
could not, that staff be authorized to proceed with Insurance Intermediaries Brokers.
Mr. Godfrey assured the City Council that if given the Broker of Record letter at the
earliest possible time, he would obtain confirmation from the underwriter for Employers
Reinsurance Corporation in time to meet the deadline suggested by Mr. Creagh. He asked what
type of confirmation was desired. Mr. Creagh stated he would accept a verbal confirmation by
telephone from the underwriter that the insurance had been secured and would be written, with
documentation to be forthcoming shortly thereafter.
Following a brief discussion, Councilman Sherratt moved that staff be instructed to prepare the
requested Broker of Record letter to be delivered to Mr. Godfrey no later than 8:00 a.m. on
June 30, 1977; that the Council accept the recommendation of the Assistant City Manager that
Alameda Associates be given until 11:00 a.m. on June 30, 1977, to notify the City that coverage
had been confirmed, and if not, then the Assistant City Manager be instructed to proceed with
Insurance Intermediaries Brokers. The motion was seconded by Councilman Diament and carried on
the following roll call vote. Ayes: Four. Noes: None. Absent: Councilman Beckam, (1).
3. Councilman Sherratt moved the Council retire to executive session for a discussion of
personnel matters. The motion was seconded by Councilman Tillman and carried unanimously on
voice vote.
After a five-minute recess, the Council reconvened. At the conclusion of discussion, it was
determined no action would be taken at this time.
ADJOURNMENT:
4. There being no further business to come before the meeting, the Council adjourned at 5:45
o'clock p.m.
Respectfully submitted,
City Clerk