HomeMy WebLinkAboutMay 5, 1994OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
SPECIAL COUNCIL MEETING
MAY 5, 1994
The Special Council Meeting was called to order at 6:07 p.m. by Mayor Sturdevant.
1. RQLL CALL
Jolly, Nawrocki, Ruettimaun, Peterson, Sturdevant - present
2. AUTHORIZE INSURANCE COVERAGE
The City's current insurance policy expires on May 9, 1994. The policy is with USF &
G which has insured the City for the past four years.
The Finance Director addressed the ramifications of changing insurance companies. If
there were to be a change of companies one concern would be coverage for a claims
submitted ninety days after the insurance coverage had been changed. Claim would not
be honored by the former insurance company. Coverage of prior acts is available. This
is called a "tail~ in the insurance industry and could cost between $15,000 to $35,000.
The Finance Director reported on his informal survey of other municipalities' coverages.
They all are covered by the League of Minnesota Cities Insurance Trust except the City
of Edina. There are not many firms who offer municipal insurance coverage.
The Finance Director recommended staying with USF&G noting that the City has had
a positive experience with this company in the last four years and the handling of claims
has been very expeditious.
There was a lengthy discussion regarding the benefit of having insurance to cover the
liability of public officials. On an $11,000 policy there is a $10,000 deductible.
The City Manager questioned the value of the policy in view of the deductible. He will
prepare a resolution for the May 23rd Council Meeting to address this matter.
Motion by Peterson, second by Jolly to authorize the Mayor and City Manager to enter
into an agreement with Americn Agency for insurance coverage from May 9, 1994 to
May 9, 1995 as quoted in their proposal with USF&G for property, liability and other
small coverages, with Scottsdale for police professional liability, and St. Paul Companies
for liquor liability at an annaul premium of $157,666. Roll call: All ayes
o
CONTRACT ASSIGNMENT - STONEBROOK CONSTRUCTION FOR LIBRARY
ADA. IMPROVEMENT
SPECIAL COUNCIL MEETING
MAY 5, 1994
PAGE 2
The City Manager advised this matter was included on the agenda for an update and no
Council action is being requested.
Both verbal and written notification has been received that Stonebrook Construction is
defaulting on their contract for the Library improvements. Their bonding company has
stated it will pay for the completion of the project. Staff is not comfortable with this.
The Haymaker finn has offered to take over the project and has assured the project will
be completed. The contract with this company will require lien waivers. May 31 st is the
deadline for using CDBG monies and the City Manager stated these funds will be used.
ADJOURNMENT
Motion by Peterson, second by Nawrocki to adjourn the Special Council Meeting at 7:I5
p.m. Roll call: All ayes
~}~o-An~ gtude~t, Counc~-~'il~Secretary
~l~yor JOSeph ~mrdevant -