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HomeMy WebLinkAbout2-27-2003-8.10 - Resolution - 02/27/2003RESOLUTION NO. 2-27-2003 -8. 10 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS, SUPPORTING HOUSE BILL 211, FILED BY STATE REPRESENTATIVE FRED BROWN, TO PERMIT MUNICIPALITIES WITH A POPULATION OF 25,000 OR MORE TO TAKE ADVANTAGE OF THE COMPETITIVE SEALED PROPOSAL PROCEDURES FOR THE PURCHASE OF INSURANCE. WHEREAS, there are two possible methods for purchasing insurance: (1) competitive sealed proposals and (2) competitive sealed bidding; and WHEREAS, pursuant to TExAS Locat, GovERNNtENT CoDE §252.021(b) &(c), municipalities with a population of 75,000 or more are able to use both methods to purchase insurance, but municipalities with a population less than 75,000 can purchase insurance only through competitive sealed bids; and WHEREAS, unlike commodities, insurance is not uniform. Coverage requirements vary and insurance policies differ from insurer to insurer. In this context, the competitive sealed bidding process may be cumbersome, inflexible and costly; and WHEREAS, for the competitive sealed proposal procedures allow negotiation and flexibility, thus permitting local governments to obtain better pricing for their citizens and to obtain coverage and ancillary services that are custom tailored to their risk management needs; and WHEREAS, nationally, health insurance rates continue at double-digit increases and property casualty insurance rates have soared since September 11 t", Enron and WorldCom; and WHEREAS, House Bill No. 211, filed by State Representative Fred Brown, would allow municipalities with a population of 25,000 or more to reap the benefits of the competitive sealed proposal procedures that are already available to counties, school districts, and municipalities with a population of 75,000 or more for the purchase of insurance; now, therefore1 BE IT RESOLVED by the City Council of the City of College Station, Texas: PART 1: That the City Council hereby strongly supports and urges the Texas Legislature to favorably consider and adopt House Bill No. 211, filed by Texas State Representative Fred Brown, to allow municipalities with a population of 25,000 or more to use competitive sealed proposal procedures to purchase necessary and adequate insurance at prices their taxpayers can afford. PART 2: That the passage of such legislation would allow municipalities to negotiate the terms, conditions, benefits, coverage, limits, deductibles and other ancillary services through the competitive sealed proposal procedures. PART 3: That this resolution shall take effect immediately from and after its passage ADOPTED this 27th day of Februarv, A.D. 2003. APPROVED: BY: ~ RON SIL IA, Mayor ATTEST: CONNIE HOOKS, City Secretary APPROVED: •:~+nm«~~ City Attorney