HomeMy WebLinkAboutFeb 19, 1985OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
SPECIAL COUNCIL MEETING
FEBRUARY 19, 1985
The Mayor called the meeting to order at 8:00 P.M..
1. Roll Call
Hovland, Petkoff, Carlson, Peterson, Nawrocki - present
2. Purpose of the Special Meeting
Further consideration of the City's insurance policies and insurance coverage.
The City Manager reviewed what had transpired at the continued council meeting of
February 12th regarding authorization for insurance coverage for the City. He noted
that Transcontinental Brokers, represented by Dale Hadtrath, had been authorized for
all of the insurance except that for Workmen's Comp. Workmen's Comp would be written
by a designated member of the Insurance Commission acting as agent of record with
the State League of Cities Insurance Trust.
Since the last meeting, the City Manager was advised that Transcontinental had writ-
ten the City's coverage with Great Global with the exception of the liquor liability
insurance which was written through Columbia Casualty. Allied Fidelity had been the
recommendation of Dale Hadtrath for liquor liability but ultimately had to insure
with Columbia Casualty. The premium for insurance from Columbia Casualty was $10,000
higher than that quoted at the meeting for Allied Fidelity.
Members of the Council had. expressed concern that at some point in time there may
have been no insurance coverage for the City. The Finance Director advised that this
was never the case nor was there a time when there was any overlapping coverage.
There was discussion by the Council regarding individual member's concern with what
could happen if any of the companies insuring the City would go out of business.
Mayor Nawrocki advised the Council he had met today with an insurance person from
the office of the Commissioner of Commerce. At that meeting he was given facts re-
garding the "guarantee fund'l administered by the State which handles claims in the
event an insurance company goes out of business. This fund only acknowledges claims
from companies that are admitted companies. Great Global is an admitted company. It
was noted that all companies in the insurance business are licensed by the state,
but all licensed companies are not admitted companies. The "guarantee fund" has a
maximum of $300,000 per claim.
A representative of Transcontinental Brokers referred back to the Council's concern
with Great Global not presently being rated. At the company's request, Great Global
deferred its rating until its merger was complete. It was noted that its previous
rating was A-I.
Members of the Council expressed some displeasure with this matter having to be
considered again in light of new information and inquired as to why this infor-
mation had not been available at the last meeting. The Finance Director explained
that he did not receive all of the new information until last on Friday of last
week, the most significant being the increase in the liquor liability premium.
Patrick McAlpin, of Miner, McAlpin and Borer Insurance Agency, stated that to change
companies from Home Insurance would cost the City money rather than save it. He
said the City would have to pay a short rate premium of approximately $21,000. Some
of the Council members reflected on the reasons for getting delayed information from
Home regarding the increase in rates. Councilman Peterson stated that the City
should not pay this money since it was not at fault for the delay. Paul Miner told
the Council that the Insurance Commission had followed up with phone calls to Home
regarding the delay. The representative from Transcontinental Brokers felt this sum
~pecial Council Meeting
February 19, 1985
page 2
would not be collected. McAlpin also suggested that the interests of the City would
be well served with appointing Dale Hadtrath to the Insurance Commission.
The Council and staff reviewed all of the coverages needed by the City. It had been
previously determined that all of the City's insurance should be handled by Dale
Hadtrath's company, Transcontinental Brokers° except for Workmen's Comp, liquor lia-
bility and boiler insurance.
The Finance Director noted that the public officials liability was included in the
package from Transcontinental. The City Manager felt this should not be handled in
the same package.
Motion by Peterson, second by Petkoff to reconsider the Council action in the awarding
of liquor liability insurance and boiler insurance at its meeting of Februray 12, 1985.
Roll call: All ayes
Motion by Peterson, second by Petkoff to place liquor liability insurance with Con-
stitutional State Insurance Company and boiler insurance with the Hartford Steam
Boiler through the Miner, McAlpin and Borer Agency. Roll call: All ayes
Motion by Peterson to request that Dale Hadtrath sit on the Insurance Commission
for the purpose to update its policies and practices. This motion was withdrawn.
Adjournment
Motion by Peterson, second by Carlson to adjourn me~t~ng ~tthe special ' 9:40 P.M..
Roll call: All ayes ~~/~j~
G.~~~/Bru Nawrocki, Mayor
ecretary