03-30-76SpMtg MARCH 30, 1976
A Special Meeting of the City Council of the City of Delray
Beach, Florida, was held in the Council Chambers at 4:40 P.M.,
Tuesday, March 30, 1976, with Mayqr James H. Scheifley presiding,
and City Manager J. Eldon Mariott, City Attorney Roger Saberson,
and Council members Grace S. Krivos and David E. Randolph present.
Councilman Aaron I. Sanson, IV, was absent.
Councilman Andrew M. Gent passed away on March 29, 1976.
The Lord's Prayer was repeated in unison.
The Pledge of Allegiance to the Flag of the United States of
America was given.
Mayor Scheifley stated that this Special Meeting was called
for the purpose of considering the purchase of City insurance.
Thomas E. Weber, Finance Director for the City of Delray
Beach, explained that the City has had problems finding a carrier
who will write the City's insurance and through the efforts of
Mr. Edward Galloway and Mr. Ted Siver, insurance consultants for
the City, the City has been able to secure three agencies who would
give a proposal on this coverage. The Milton Carpenter Insurance,
Inc., Belle Glade, Florida, gave a proposal on Automobile Liability
and Physical Damage with a minimum premium of $45,146 and maximum
premium of $57,704; however, they would not quote a premium as yet
for Auto Physical Damage. On General Liability they quoted a pre-
mium of $109,974 and Workman's Compensation a premium of $111,970
under a Retrospective Rating Plan~ The Hyden Insurance Agency,
Tarpon Springs, Florida, quoted a premium of $51,268 for Autpmo-
bile Liability and Physical Damage, General Liability premium of
$62,843 and Workman's Compensation premium of $111,970. The Law
Enforcement Liability would be taken out of the General Liability
and written separately by the National Sheriffs Association through
the Appalachian Insurance Company of Providence, with a premium of
$8,766. The Delray Beach Insurance. Agency quoted a premium of
$56,478 for Automobile Liability and Physical Damage with a $7,500
property damage deductable; General Liability premium of $47,163
with the same $7,500 deductable; and Workman's Compensation premium
of $111,723. Mr. Weber recommended that since the coverage cannot
be split all of the coverage be awarded Go the Hyden Agency, this
coverage to become effective at midnight'April 1, 1976. The overall
premium coverage totals $81,000 more than last year. This coverage
has the recon~endation of Mr. Galloway, Mr. Siver and the City Manager.
The City Manager stated that part of the increase would be
absorbed by the current year's budget and the rest in the budget
for 1976-77. Mr. Weber explained that the coverage would be pro-
rated, paying it all now, but half would be charged in the next
year's budget and half in this year's budget.
Mr. Galloway stated that the important part right now is to
place the insurance, after which it is conceivable that the consul-
tants can formulate a new plan whereby the City can become in part
self-insured to a certain point and cut these premiums down.
Mr. Randolph moved that the purchase of insurance as stated
in the memorandum from the Director of Finance dated March 30, 1976,
with coverages as outlined on page two of stated memorandum as pro-
posed by the Hyden Insurance Agency of Tarpon Springs, Flo~da, be
approved by Council with ultimate funding to come from the 1975-76
budget and also the 1976-77 budget, seconded by Mrs. Krivos. Upon
roll call, Council voted as follows: Mrs. Krivos - Yes; Mr. Randolph -
Yes; Mayor Scheifley - Yes. The motion passed with a 3 to 0 vote.
Mr. Randolph moved for adjournment, seconded by Mrs. Krivos,
said motion passing unanimously. The meeting adjourned at 5:05 P.M.
City Clerk
APPROVED:
MAYOR
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3-30-76