Tremonton insurance bid brings controversy

TREMONTON -- The process for choosing insurance coverage for the city has one community insurance broker asking for changes.

Independent Insurance Broker Gary Huber asked the city council in the fall of 2009 to request bids from multiple insurance companies rather than simply continue with the same insurance company year after year.

To accommodate that request, the city asked insurance brokers for bids on health insurance as well as general liability, workers compensation, auto and related insurance services.

City Manager Shawn Warnke received bids from several brokers, after which the council approved going with General Benefit Services through the Leavitt Group.

The city received only two bids for the general liability, workers compensation and auto and related insurance services.

Warnke said the bid from the Leavitt Group, submitted by Huber, was the low bid on two line items but the bid was incomplete. Warnke suggested the city council approve the bid from Trust Insurance, an insurance group the city has worked with in the past.

"Trust will give a discount to the city if the city insures all three line items with them," Warnke said.

Huber told the city council he felt the process was flawed.

"The time frame for submitting the bid was insufficient. Last year, your incumbent agent said it would take at least 30 to 60 days to submit a bid. You only allowed three weeks. You did see a $33,000 savings over last year because you sent it out to bid," Huber said.

Councilman Byron Wood said it would be nice to keep the insurance with a local agent. The council is expected to make its decision on Tuesday at the budget meeting.