On September 14, 2023, Travelers Insurance notified the city that as of January 1, 2024, they would no longer be insuring Saratoga Springs.
Readers of this blog may have observed its increasingly shrill tone. I have been writing repeatedly that the indifference to law and reality by the Saratoga Springs City Council would eventually bring the proverbial chickens home.
That day has come, although Mayor Kim and Accounts Commissioner Dillon Moran and Finance Commissioner Minita Sanghvi have apparently tried to suppress the news until after the upcoming election.
The reason for the city losing its insurance coverage?
The City of Saratoga Springs’ approach to risk and safety management creates an unacceptable increase in the hazards contemplated for the City. Therefore, we are nonrenewing your policy effective 1/1/2024.
Sincerely,
Brady Giroux
Account Executive
Letter of September 14, 2023 from Travelers
I knew there would be some sort of letter coming from Travelers, but I had expected it would be to notify the city of an increase in premiums. I FOILED the city for such a letter. That FOIL would have eventually produced nothing, as is now evident, because rather than raise rates, Travelers has simply decided to end the city’s insurance all together.
The letter, received by the city a month ago, was released today by Commissioner of Public Safety James Montagnno, who somehow learned about the document and requested and received a copy on October 12, 2023.
The Financial Cost Of This Debacle Will Be Huge
In a prepared statement to the media, Public Safety Commissioner James Montagnino observed:
The result of Mayor Kim’s decision to leave the City without a Director of Risk and Safety for the first time in decades will be that the City will need to obtain its insurance through the municipal equivalent of an assigned risk pool. This will cost the City close to a million dollars in additional premiums each year.
Commissioner Montagnino, October 13, 2023
Mayor Kim Is Never Responsible
In today’s online Daily Gazette story Kim, in typical fashion, tries to place the blame for any lack of transparency in sharing the letter with his fellow Council members on his Deputy Angela Rella:
Kim said he was informed by the insurance broker the city uses “a week or two ago, or so” [JK: try a month ago] and wasn’t sure if his Deputy Mayor Angela Rella shared it with the commissioners [JK: she didn’t share it with Montagnino].
“We are already anticipating a 78% [increase],” Kim said. “The exact number I can’t recall, but I think it was 78%.”
Daily Gazette
In the article, Montagnino states that the city had a civil service list with qualified candidates to fill the critical Risk and Safety position, but Kim allowed the position to go unfilled for months following the departure of long time and well respected Risk and Safety Management Director Marilyn Rivers. (Rivers is currently suing the city over the toxic employment environment she was forced to endure). This blogger has written extensively about both the disastrous handling by Kim of Risk and Safety and his vindictive abuse of Ms. Rivers.
Instead of filling the position, Kim finally added the responsibilities of a Risk and Safety Manager to the duties of newly appointed City Attorney Michael Phillips. Not surprisingly Travelers did not consider this approach to managing the city’s risk and safety adequate.
Kim: It’s Everybody Else’s Fault
In spite of the Travelers’ letter clearly stating why they are dropping city coverage, Kim, without any evidence, gave the press a different reason:
Kim, in turn, blames the prior administration’s actions for lawsuits the city is facing as well as the Attorney General’s investigation into whether the city violated the Civil Rights of Black Lives Matter protestors during prior summer protests.
Daily Gazette October 13, 2023
I will not subject the readers of this blog to Kim’s usual rehashing that the city’s problems are all rooted in the actions of the previous administration. In the article, he goes on about all the money the city is having to pay for attorneys to represent past elected officials in the New York State Attorney General’s investigation and in the cost of defending the city in the lawsuit brought by Black Lives Matter leader Lexis Figuereo.
But the letter from Travelers Insurance could not be clearer as to why Travelers is declining to insure the city. It says nothing about lawsuits or investigations. Risk and Safety are critical to minimizing the city’s liability, and Kim simply cannot or will not admit this basic truth.
Why Would Any Insurance Company Want To Take On The Liability Of Insuring the City under the Current Council?
Consider the following episodes and ask yourself, if you were the executive of an insurance company, would you do business with a city that had the current elected officials in charge.
- Early in his term as Mayor, Kim wrote an intemperate letter to the city’s insurance broker over Travelers’ decision to settle a lawsuit brought by a former employee against the city. If that were not enough, he refused to authorize payment for the insurance deductible for months. I can imagine executives at Travelers asking, “What is going on with Saratoga Springs?”
- Kim released to the news media text messages from officials in the previous administration meant to support the complaints by Black Lives Matter following BLM leader Lexis Figuereo’s filing of a lawsuit against the city for their alleged damages to him. Again, executives at Travelers would be asking, “Why, when we are being sued, is this guy sending stuff he thinks is damaging to the area media?”
- The Council, led by Mayor Kim, passed a resolution condemning, in the broadest terms, the city for being racist, again when the city is both under investigation and being sued. This country has a long and horrific history of racism and Saratoga like most cities can point to such incidents as well as times when women, immigrants, and others have been the targets of discrimination. But Kim’s vague, intemperate, and sloppily worded resolution, while being useless as a thoughtful history lesson, is ripe to be be exploited by Figuereo’s lawyer in their lawsuit. Again, I can imagine in the board rooms of Travelers Insurance, they would be asking, “What is going on in Saratoga Springs?”
Minita Sanghvi’s Idea Of Transparency
It is worth noting that missing in Finance Commissioner Sanghvi’s presentation of the proposed 2024 budget last week, during which she also sounded the theme of blaming the previous administration, this time for the city’s budget woes, was the fact that the city would need to find a million dollars due to our loss of an insurance carrier. Missing also was who was responsible for this disaster.
We Will Pay Dearly
I have taken to calling the current Council “the Wrecking Crew.” This latest debacle will probably cost our city $1,000,000.00 in premiums and increased deductibles. Readers should understand that this is just the most recent public revelation of the impact of the incompetence and vindictiveness in City Hall. There will be more.
Saratoga Springs Politics 
Ominous ending, yet I fear prophetic.
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In August of 2022, John Kaufmann’s blog contained the following commentary from John:
‘JEOPARDIZING THE CITY’S INSURANCE
During the Council meeting, Mayor Kim not only repeatedly complained about paying the deductible (suit filed by a former employee) owed to the insurance company, he also attacked the settlement reached in the case. He claimed that the city should not have to pay anything. In a piece of demagoguery, Kim indignantly appealed to the public, telling them the settlement was costing”you” $25,000.
Aside from being baseless, this was a gratuitous and reckless public attack on the city’s insurer. It is reasonable to assume that Travelers will be most unhappy that the city is unwilling to abide by their contract and pay them. It is reasonable to assume that they will not be happy being accused in the Capital District media of failing to protect the city.
This is a total mess and totally unnecessary. It remains to be seen how Travelers will react to the Mayor’s accusations. Several attorneys who practice law involving insurance companies told me that they believe this could lead to Travelers dropping the city’s coverage in the future.’
John’s comments in August of last year were prophetic. Thanks John! I too had been questioning how Travelers would react to this terrible episode of broken down local government as well as to the manner in which the City (especially Mr. Kim) had been treating the well respected Risk and Safety Manager Marilyn Rivers. Marilyn had a great rapport with Travelers which, in turn, greatly benefitted the City in numerous ways. Now, we no longer have Marilyn and we soon will not have Travelers. For those keeping score, that’s 0 wins and 2 losses.
Chris Mathiesen
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When you elect clowns…you get a circus. Kim, Moran and Sanghvi are a threat to the city and should be voted out of office. One can understand an honest mistake now and then but their arrogance, incompetence, rude behavior and poor judgement are so apparent that it makes one wonder why anyone would cas a vote for them.
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By releasing these city texts and creating an unnecessary resolution that supports those who have brought the lawsuit against the city, would Mayor Kim become a key witness for the prosecution?
His actions continue jeopardize the financial state of the city. He is not acting in the best interest of the city. Could his actions be considered quasi-treason against the city? Look up the definition of treason. “Adheres to their enemies giving them aid.” Here the enemy could be the ones suing the city. He has, in writing and law, given them aid in their lawsuit. He also continues to adhere to their demands
Or
Is he setting up his largest bankruptcy case ever? Is he planning to act as city attorney in the bankruptcy case? Enough is enough.
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Bad Leaders Are Expensive
I hope that all voters in Saratoga Springs elect to not vote for Ron Kim in the upcoming election. Please vote for one of the other candidates.
Like the former school gynecologist at USC who recently died, accused of assaulting 700 college women and inducing a $1.1B class-action settlement, Ron Kim is leaving the city and taxpayers with significant legal liabilities and an insurance problem. A $700,000 premium increase and several lawsuits. Kim is the most expensive mayor the city has ever had. Opening a no-barrier homeless shelter under city contract and covered by city insurance is also a negligent decision. What insurance company is going to insure that after what happened in Vermont with the ax-killing a few months ago?
Anyone who was at the one of the city council meetings the past several months can file a criminal complaint under Section 195 of New York State Code – Public Misconduct. This statute can hold elected officials criminally liable for not performing their duties. In Kim’s case, he failed to keep order at the meetings, endangering everyone in attendance. The insurance letter and Jim Montagnino can corroborate. I was certainly a witness to several instances.
Kim is so threatened by my public participation as a citizen, that he publicly slandered me and made false criminal accusations with the intent to defame and discredit, hiding under the cloak and cover of the party apparatus that is corrupt in our city and has been hijacked by a couple of dubious carpetbaggers from Philadelphia.
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Sam is correct.
Being dropped by Travelers Insurance is the final nail in Saratoga’s coffin.
Time to move, unfortunately.
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BobW – Don’t move yet. Use your right to vote in November to usher in new leadership. And while you’re at it…..make sure you research who supports getting rid of our commission form of government. Can you imagine not having the right to vote people out?
The decision for Travelers to drop the city’s coverage is not the nail in Saratoga’s coffin, but it should be the nail in certain people’s ability to be elected.
Please get the vote out! People need to vote!
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Connie, I love Saratoga and raised our family here.
Unfortunately, as they say “a glass of water with “d” next to it will always get elected in some areas”.
If Kim is reelected, we are leaving. (too many idiots or uniformed people are the only way he wins).
Just look at his endorsements, insane that he has this amount of support.
Very sad that he and the council are well on their way to ruining this great town.
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I believe it would be prudent for the City Council to retain a private investigative or consulting company to conduct an independent review of the Travelers insurance matter. There are many organizations that conduct this type of work in the Capital Region. The objective would be to find out why the city lost its insurance carrier as well as seek recommendations on how the city can develop better policies and procedures in order to retain new insurance at the lowest possible cost to taxpayers.
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Excellent idea Tim.
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On 5/11/2023 I wrote the following to the council:
“RE: RFP Homeless Shelter Operations
Council,
I found this guide to RFPs on the New York State Government Website.
I hope the council provides appropriate time to the organizations who may wish to respond to any contracting opportunity so that a proper estimate can be rendered according to whatever document the city issues to request proposals.
In addition, if you could email me a copy of the solicitation when it is released publicly, I would be appreciative.
Also, I recommend the council contact the city’s insurance companies to determine what the actual risk cost of running one of these facilities is. Given the recent ax murder in Vermont, I suspect this is a high liability for the city.
Thus far, the mayor has attempted to fire Tony Izzo, Marilyn Rivers, and recently made a false police report regarding a threat to the police. I would not be surprised if the NYS Bar association starts looking into who is paying the Mayor through his legal practice.
I saw that Ms. Rivers recently filed a lawsuit.
Again, I am repeating my call for Ron Kim to resign.
Sam Brewer
”
Tim, good thought on an investigation, however, I am not sure Travelers will provide any additional information as there is no business upside to providing any more fidelity. The city should have drafted a memo to Travelers that looks something like this:
“Dear Travelers Insurance,
Please provide additional information to us regarding the risks you find to be uninsurable. Please provide to us a curing plan and period so that we can retain our policy with you at rates comparable to the past few years.”
The electorate needs to wake up here and start to ask really difficult questions. Some of these people that are elected with professional practices are getting either paid off through those entities or are able to sell them after they leave office for favors bestowed during their time in office. The pay is a lot higher than $15,000 a year for these people – which is a reason to raise the actual salary and make the commissioners full time. Is Ron Kim creating legal hazard to create demand for legal services? Who is going to buy his practice when he leaves office? Has his client mix changed and his revenue gone up since becoming mayor?
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It should be easy for voters to decide to vote Ron Kim out of office. The only remaining questions about him are: Is Kim the worst lawyer ever, the worst mayor ever, or both?
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“That day has come, although Mayor Kim and Accounts Commissioner Dillon Moran and Finance Commissioner Minita Sanghvi have apparently tried to suppress the news until after the upcoming election.”
And there you have it. The Mayor was notified on Sept. 14, and the news was suppressed. Dishonesty, deception and more. By all three of our elected officials. What a disappointment. Corruption in government is not acceptable.
Yes, voters should vote Ron Kim out of office. Unfortunately, the other two will remain for another agonizing two years. Neither deserve our votes. Leave their spaces blank on your ballots.
I worry that the Trump effect will prevail in the upcoming election. 91 indictments have not swayed his loyal followers. New Ron Kim lawn signs pop up every day. And Ron Kim’s printed election flyers are filled with inaccuracies and semi-truths, which may lead the voters who don’t pay real attention to local politics to cast their votes in his favor. It is indeed a serious worry.
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Henry37, I agree completely.
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2 Days before my husband, Anthony Skip Scirocco passed he said that he felt very sorry for the City of Saratoga Springs because the leaders, or Commissioners in City Hall did not know the Charter that rules
City Hall.
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How interesting that as all this is unfolding Public Safety Candidate Kristen Dart embraces the endorsements coming to her from this dysfunctional group. Kim and his cronies on the Council have made it clear that they are eagerly anticipating making her the new member of the Wrecking Crew.
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