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HomeMy WebLinkAboutFeb 12, 1985OFFICIAL PROCEEDINGS CONTINUED COUNCIL MEETING FEBRUARY 12, 1985 The meeting was called to order by Mayor Nawrocki at 8:00 P.M.. The regular council meeting of February llth was continued until this meeting. 1. Roll Call Hovland, Petkoff, Carlson, Peterson, Nawrocki - present Secretary Pro-tem Motion by Petkoff, second by Peterson to appoint William Elrite, Finance Director, as Secretary Pro-tem for this meeting. Roll call: All ayes 2. Purpose To give further consideration of the proposals of insurance coverage for the City of Columbia Heights. The City Manager advised the Council that the Insurance Commission had met and made a recommendation for insurance coverage for the Council's consideration. Members of the Council received copies of the minutes of the Commission's meeting. The Com- mission's recommendation was for the City to retain its present insurance package with Home Insurance and other coverages that are in place with the Miner, McAlpin and Borer Agency. Paul Miner, a representative of the Insurance Commission, advised the Council that the major concern of the Commission in regards to the other proposal received for coverage from Transcontinental Brokers represented by Dale Hadtrath, was that the company being recommended, Great Global, was not rated, small, and new to municipal insurance. Mr. Hadtrath advised the Council that Great Global had requested their rating be deferred for additional information on its financial structure. Previously the com- pany had an A-I rating. He listed some of the municipalities this company covered including the insuring of state vehicles. He offered to furnish a listing of the company's finances. The Finance Director advised the Council that the coverage being offered by the two companies was comparable and gave approximate cost differences for premiums. Further, he stated that past experience with Home Insurance had been basically good and that its Loss Control Department had been particularly helpful. Some members of the Council were concerned by the type of service Home had been giving the City recently in light of the fact that they had misplaced the City's file. The information needed for submission to Home Insurance had been sent to them in October. They misplaced the file and the dramatic increase was not known until January. It was noted that a binder had been issued so the City was never without coverage but there had not been any time to make budgetary adjustments to cover the large increase in premiums. Discussion continued regarding budget adjustments that could be considered to make up the anticipated increases in insurance premiums. There was a lengthy discussion addressing what alternatives the City would have if the company it chose for insurance coverage were to go bankrupt. The State has a fund for this type of situation that will pay up to $300,000 per claim. The City Attorney noted that the Trustee of Bankruptcy makes the decision on who will honor a claim and this procedure could take some time. Types of insurance coverage and premiums being offered by Great Global were defined by Dale Hadtrath. He suggested that the Workmen's Comp insurance be written with the State League of Cities by the Insurance Commission. Paul Miner stated that he could not make a decision on this for the Commission but personally would be against it. The Mayor stated he was under the impression that these decision had to be made at this meeting. Paul Miner advised the Council that the City was covered by binders Continued Council Meeting February 12, 1985 page 2 and that the policies were issued although not received at this time. He noted that if these policies were cancelled out they would be subject to the short term rate premium which could be a considerable amount of money. The Finance Director stated that there had been one claim since the first of the year and that the present carrier had sent an adjuster out. This indicates to him that the coverage is in force. The Mayor observed that the City has a good working relationship with the Insurance Commission and that it had done a good job in serving the best interests of the City. He felt that it was the Home Insurance Company that had handled the situation poorly and since the coverages being offered by the two companies were identical, the one quoting the lowest premiums should be given the approval. Discussion followed regarding Workmen's Comp insurance and how it would be written. Motion by Peterson, second by Petkoff to authorize the City's insurance coverage with Transcontinental Brokers, and that the Workmen's Comp insurance coverage would be ~hrough the Insurance Commission with the State League of Cities Insurance Trust, with the understanding if the Insurance Commission cannot execute this by February 13, 1985 or does not choose one of its members as agent of record, that the Workmen's Comp coverage be written through Transcontinental Brokers. Roll call: All ayes Councilman Peterson requested that a "forecast'~' for funds to be needed for insurance coverage would be forthcoming near budget time for this coming year so this type of problem could be avoided. Additional Items Mayor Nawrocki had questions regarding snow removal from sidewalks on Central Avenue. The City Engineer noted that city. crews had attempted last year to remove snow in the redevelopment area that accumulated near the newly-laid brick sidewalks. The equipment available to the crews ripped up some of the bricks. The Mayor had read an article in the LMC magazine regarding snow removal in the City of Anoka. The City Engineer said he would follow up on this procedure as well as those used by other municipalities. The Mayor inquired if any additional information had been gotten regarding an emplo- yee motivational program from a consultant in Duluth. The City Manager will give him a written report on this matter. Adjournment Motion by Peterson, second by Petkoff to adjourn the conti Roll call: All ayes W'illiam Elrite, Secretary Pro-tem