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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