SR-02-13-1979-6OSanta Monica, California February 1, 1979
TO: Mayor and City Council
e
FROM: City Staff FES 1 3 1979
SUBJECT: Renewal of Risk Management Contract with Mund, McLaurin
and Company
Introduction
This report transmits a recommendation that the City renew its contract with Mund,
McLaurin and Company for Risk Management services for a twelve -month period
on an hours expended basis with a cost not to exceed $7,000.00.
Background
The City Council approved an agreement with Mund, McLaurin for the 1978 calendar
year. During this period, and pursuant to the contract terms, Mund, McLaurin pro-
vided the following services:
1. Program Decisions - Mund, McLaurin reviewed retention levels and limits
of liability for workers' compensation and general liability coverage.
This analysis resulted in a recommendation for and subsequent implementa-
tion of a higher retention level for general liability and in reduced
limits and increased retention for workers' compensation coverage.
2. Loss Prevention and Safety - Working with City staff, Mund, McLaurin
has prepared a draft plan for reorganization of the Administrative
Safety Committee. With specific functions, responsibilities and
guidelines clearly delineated, this committee will have a greater
impact on loss prevention and control.
3. Insurance Procurement - Mund, McLaurin assisted and advised the staff
in the review of coverages and in marketing the workers' - compensation,
general liability,and Civic Auditorium and Transportation Department
FEB 1 3 1979
T0: Mayor and City Council
- 2 -
February 1, 1979
liability policies. Mund was instrumental in securing a policy for
the Civic Auditorium which substantially increases coverage without
increasing the cost.
4. Funding and Budget Review - During the first quarter of 1978, Mund,
McLaurin assisted in the preparation of premium and reserve estimates
for the self- insurance funds in the FY 1978 -79 budget and in the
five -year financial projection.
Proposed Services for 1979
City staff is quite satisfied with the capability of Mund, McLaurin and of its
representative, Mr. Don Voller, who has advised the City for more than three
years. Mr. Voller is very knowledgeable with regard to municipal risk manage-
ment and currently provides insurance advisory services to nine cities in the
region.
During 1979, Mund, McLaurin will specifically assist the City by:
1. Preparing an analysis of the risk management function and
organization.
2. Assisting in the evaluation of the self- insurance funds to
determine additional funding requirements and in the review of
estimates of paid claims and insurance premium costs.
3. Providing guidance to the City staff and Agents' Association
in marketing the City's policies.
T0: Mayor and City Counc? February 1, 1979
3 -
4. Finalizing the reorganization of the Administrative Safety Committee
to increase the City's impact on loss prevention and cost reduction.
S. Developing a plan for review of the insurance and risk management
program of the Municipal Bus Lines.
Consultant Service Fees
During the past year, Mund, McLaurin has responded to the specific requests and
direction of the staff and has been paid on the basis of an hourly rate of $50.00.
The City has received a total of seventy -four hours of consultant services at a
cost of $3,700. Mund has agreed to continue at the same hourly rate of $50.00
subject to the same maximum fee of $7,000 which was specified in last year's
agreement.
Alternatives
1. Continue to retain the risk management services of Mund, McLaurin and
Company for the calendar year 1979 at the hourly rate of $50.00 subject
to a maximum of $7,000. This will provide both the technical expertise
and knowledge of the insurance industry which is currently unavailable
on the City staff. It will also provide the continuity needed as a
result of staff changes during the past year.
2. Discontinue the City's risk management consultant services.
Recommendation
It is recommended that Council approve the attached contract with Mund, McLaurin
and Company for consulting services during 1979.
Prepared By: JEANNE L. KENNEDY
Administrative Assistant
JLK:dvl
Attachment
TRANSMITTAL INSTRUCTIONS
FOR CITY AGREEMENTS, DEEDS,
RESOLUTIONS, ETC.
DATE
TO
FROM 4
C
SUBJECT:
OFF THE
IR
CiTy 'LE x
Fey 1, PHP a
SANTA 140NICAP CALIF.
EFFECTIVE DATE: Xe
(Date approved,by Council, signed by Manager, calendar date, other)
The attached material is to be distributed as outlined below:
Letter & signed document to:(-
(include address)
to
600 _'l�C)
Carbon copy of letter
and document to:
(include address)
Other instructions: