Callan recommended the St. Paul's
Travelers Insurance Company bid. After the city
agreed to accept the bid of $241,163 for the two policies, it was
discovered that they did not meet bid specs. During an adjourned session the following
week, the city reversed acceptance of the St. Paul's bid and voted
to accept a bid from the past provider, Select, for a total annual
premium of $337,553. ["City:
Liability insurance decision overturned --
Risk manager's summary in question"]
City attorney Bill Bates read a
portion of the contract that Callan has with the city. It includes
not having affiliation with the company recommended unless there is
prior consent. The city did get a letter that said the company
Callan was with was acquired by the Horace Group some time ago. But there was no consent
given.
[to top of second column in this article]
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Callan's office is in the Horace Group
building. Bids go to that address. A competitor said they asked the
Horace Group for a copy of the bid they would be making and they
were denied.
In addition it has been said that
the agent for the insurance policies she recommended is her son.
"I think this whole thing smells!"
Bates said.
By all appearances, Callan has been
in violation of the city contract in several ways.
Callan's three-year contract at
$12,300 ($4,300 per year) was renewed on Feb. 5. Bates strongly
advised that the insurance committee meet to discuss the issue and
then terminate her contract.
[Jan
Youngquist]
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