YOUNGSTOWN Private sector to insure the city

Changing from government to private insurance avoids future assessments.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city is switching from government insurance to private coverage to eventually save money.
The city's board of control awarded a one-year, $688,116 contract Tuesday to Jackson Dieken and Associates. The contract provides insurance including casualty, property and general liability totaling $10 million.
The city is switching to shift all risk to the private sector, said Finance Director David Bozanich. The move also should save the city money in the future, he said.
The city paid $520,000 for $5 million in coverage this year in the Ohio Municipal League's insurance plan.
That plan, however, has a catch with implications.
Municipal league insurance is made up of municipalities that share risk up to a set amount of money. Cities exceeding the amount must pay more based on a formula.
Those assessments can come years after the actual claim since court action sometimes takes years before a case is settled.
For example, the city also had municipal league insurance from 1994-97. The city is expecting a future assessment of $150,000 because of a claim during that time.
The city wants to avoid facing such assessments, plus get more coverage by leaving the government plan.
The city also will work with the new insurance carrier to analyze risk and lower costs, Bozanich said.
Other action
The control board also approved these items:
UA memorandum of understanding with FaulknerUSA, formerly called the Landmark Organization. The memo outlines topics to be negotiated in detail on the downtown civic center project. The memo identifies topics such as feasibility studies, architectural plans, financing and time lines.
UA contract not to exceed $14,000 with Reali, Giampetro and Scott to prepare the 2002 tax abatement report.
U$14,400 contract paid through the Weed and Seed program with I-Build It Inc. to provide a 60-hour computer-building course to a dozen Hillman Junior High School students.
USeverance of $2,782 for Angeline Leone, a meter reader in the water department, who was fired Nov. 18. Information about why she was fired was not immediately available.
rgsmith@vindy.com