HomeMy WebLinkAboutM-86-0573:1
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CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
TO: Cesar Odio, City Manager
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FROM` Elena Rodriguez.Admtrator
3 Pension Department
DATE. July 1, 1986
FILE:
SUBJECT: PLACEMENT ON CITY CCMMISSION
AGENDA OF REOUEST TO HAVE THE
CITY PROVIDE INSURANCE COVERAGE
AND DEDUCTIBLE
REFERENCES:
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ENCLOSURES:
Section 40-245, titled Bonding, Fudiciary Insurance, of the City of Miami code,
requires the boards purchase fiduciary and fidelity insurance coverage. As
you know, this coverage is extremely difficult to obtain, with only a handful
of companies willing to accept applications. After months of trying, the City
of Miami General Employees' and Sanitation Employees' Retirement Trust Board
was successful in obtaining a bid from Aetna Life and Casualty Co. for $5
million coverage of fiduciary insurance with a deductible of $100,000 at a
cost of $116,025. Yesterday, at a special meeting, they moved to accept the
offered coverage and to continue to pursue additional fiduciary insurance
coverage and fidelity bonding.
R Since it is practically impossible to obtain fiduciary insurance, and it was not
-; known how many months it would take before securing a bid, nor the cost of this
bid, no request was made for an appropriation in the 1985-86 budget. Now that
Aetna has extended their bid, time is of the essence to enter into a contract.
We respectfully request that you place a request ^n the City Commission agenda
for an appropriation increase against code 440102-660 in the amount of 06,025
to cover the cost of the insurance offered. Anot'ier request will be made if the
additional insurance coverage is received.
Also on the commission agenda, we would like a request that the City indemnify
the board members for the amount of the deductible, $100,000. Chairperson
L. Rose Gordon, has been requested by the board to appear at the commission meeting
of July 10, 1986, and present the board's pleading to the Commission.
o Please let me know if any additional information is needed. As always, your
assistance will be highly appreciated. Should you have any questions, I can be
reached at 6371.
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