City makes tough decision on insurance
Staff reporter
Two special Hillsboro City Council meetings in three days to decide on insurance bids resulted in the decision Thursday to continue with EMC Insurance Companies.
The council met March 28 to review a bid that was presented to members at the meeting by Continental Western through agent Tracy Williams of Rodgers and Associates of Hillsboro for Kansas Public Entity PAK. A bid was presented to the council at the March 21 meeting from EMC Insurance Companies by agent John Kullman of IMA of Kansas, Inc.
The City PAK insurance would include city property, general liabilities, and a separate policy for Hillsboro Fire Department. The fire department's policy would have a three-year rate guarantee.
The premium for the city policy was $51,445 and $2,652 for the fire department.
The EMC bid was for $51,629 for nearly $10 million of coverage. The Continental Western bid was $56,466 for $5 million of coverage.
Williams stated at Thursday's meeting that she didn't receive updated bid information until that week and needed more time to get a complete bid from the company.
In the end the council determined that even if it waited until a complete bid was received, the premium would be significantly more than the EMC premium bid.
During the course of Thursday's meeting, Williams accused the council of "misconduct" last year when EMC was contacted and allowed to return and present a second quote after she had presented her quote.
She also accused city administrator Steve Garrett of professional misconduct by not providing all of the information to her and the way she was treated.
Garrett responded that the council knows him and his professional integrity, and the real matter at hand was insurance.
Williams also said that being a local agent, she would be aware of improvements and new developments and purchases, and could make sure the city was adequately insured.
Mayor Delores Dalke said the council was faced with a tough decision. She also pointed out that if the council was considering the cost of the insurance, there was no reason to wait for a complete bid because it would be more than EMC's. The council had to make a decision as soon as possible before the lapse date of April 1.
The council agreed that supporting local businesses was important but they also had a fiscal responsibility with city funds.
Councilman Byron McCarty made a motion to change policies and go with City PAK. The motion died for a lack of a second.
Councilmen Len Coryea said he was concerned with an unknown rate by approving the City PAK premium without a definitive price.
Councilman Shelby Dierks told Williams this was her second time in compiling bid quotes for a municipal policy and she was becoming more familiar with the process.
Dierks then made a motion to continue coverage with EMC Insurance Companies. The motion was seconded and passed 3-1, with McCarty opposed.
Dalke said she wanted it placed in the minutes that the city will contact all local multi-line agents and current agent prior to the first of next year regarding insurance quotes.
She also suggested the city check with other cities like Salina and Manhattan who have hired their own agent to solicit bids from insurance companies. As a result of that practice, cities have saved money on insurance premiums, she said.
