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Human Resources Director Irizarry presented the staff report and described the workers' compensation policy provided by General Reinsurance and the broker, Bori ng-Rei fenrath-Vreeb"'t'g":'J,~,~r., Iri zarry recommended that the Council approve the renewal ,¡of¡~tH'e¡~ð1,:t'.s excess worker's compensation insurance policy with General Reinsurance Corporation and formally clarify the City's broker of record for this policy. Vice Mayor Bury asked if anyone wished to address the Council. Harold Vreeburg, Boring-Reifenrath-Vreeburg, 845 Marshall Street, Redwood City, advised Council his firm did not receive its RFP last year in time to present a proposal for property insurance as the City mailed it to the wrong address, and although his firm had the best proposal the property insurance was given to someone else whose proposal included eight different carriers not all of which were domestic. Mr. Vreeburg reminded the Council that the City had asked him to extend coverage for one month last year and he did so will ingly. Mr. Vreeburg stated that he contacted the City in late April, early May of this year and asked if his firm could bid on the City's property insurance and was advised that the City was not accepting bids this year. Mr. Vreeburg stated that on July 1, 1992 he was contacted by the City and told if he wanted to bid he had to submit it by July 10, 1992 for staff review. Mr. Vreeburg advised that although his staff worked hard on gathering all the information, that was not enough time to put together a proposal, and he therefore had brought the bid to the Council Meeting this evening, that it was a better proposal than Mr. Castle's, and if the City was not prepared to be fair and consider this proposal then it should not have called his firm asking for him to submit it. In response to Council questions, Mr. Vreeburg advised his firm is not a national firm, the three year process for an RFP is appropriate, described the City's many years of history with Boring-Riefenrath-Vreeburg, and his past membership in and the decline of local associations such as Independent Insurance Agencies Association. Mr. Vreeburg discussed the importance of risk transfer, the unique nature of of the insurance product he provided to the City, the fact that no one has ever criticized his insurance programs for the City, the fact that Mr. Castle had become broker of record on his product regarding surety bonds, and requested Council to ask Mr. Castle to extend the policy for 30 days as the City had asked Mr. Vreeburg to do last year, to allow time for Council to consider his proposal. Council Members discussed the appropriateness of considering Mr. Vreeburg's bid and/or opening up the formal bidding process at this late date, or accepting staff's recommendation to request an RFP next year. Councilman Murray advised he would not participate in this matter before the Council as he had recently hired Jack Castle as his property insurance broker. Council Members asked City Attorney Schricker if a conflict of interest existed if any of the members were represented by either of the brokers being discussed tonight, and Mr. Schricker advised that "it is not a legal conflict, it is a matter of appearance," and the decision to abstain is up to the individual Council Member. Regular Meeting Minutes July 20, 1992 MINUTE BOOK No. 51 Page 7 Page No. 147 i ,-"" '1" -.