4.6. SR 12-19-2011 - Laserfiche WebLink

Home Browse Search

~~ REQUEST FOR ACTION River TO ITEM NUMBER Ma or and Ci Council 4.6 AGENDA SECTION MEETING DATE PREPARED BY Consent December 19, 2011 Tim Simon, Finance Director. ITEM DESCRIPTION REVIEWED B)/ Adopt Resolution Authorizing a Transfer from Government Cal Portner, Ci Administrator Building Fund to Insurance Reserve Fund fox Landfill Litigation REVIEWED BY Costs ACTION REQUESTED Council is asked to adopt the attached resolution authorizing a transfer in the amount of $329,196.14 from the Government Building Fund to the Insurance Reserve Fund. BACKGROUND/DISCUSSION The League of MN Cities represented the City of Elk River in the land use lawsuit filed by Elk River Landfill. The parties reached a negotiated settlement and there was no claim payment. The city's responsibility of the litigation costs totals $329,196.14. The Insurance Reserve Fund is used for insurance deductibles and litigation costs not covered by insurance. However, there are not enough funds to cover the litigation costs related to the landfill lawsuit. Keeping sufficient funds available in the Insurance Reserve Fund allows for future deductible changes and any other insurance related claims. Currently, the city receives a landfill expansion fee in which 85% of the funds have been allocated to the Government Building Fund. Therefore, $329,196.14 will be transferred out from the Government Building Fund to the Insurance Reserve Fund to pay for the landfill litigation costs. FINANCIAL IMPACT $329,196.14 transfer from the Government Building Fund to the Insurance Reserve Fund ATTACHMENTS Resolution Authorizing a Transfer From the Government Building Fund to the Insurance Reserve Fund Action Motion by Second by Vote Follow Up f~~Ee~Ii ar N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\12-19-2011\InsuranceFundtransfer[1].docx