10-04-1982 CC MIN - Laserfiche WebLink

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City Council Minutes October 4, 1982 Page Two Mayor Hinkle questioned the bonding of the treasurer for the City of Elk River and the coverage provided for the elected officials. Mr. Dan Greene indicated that it is required that the City Treasurer be bonded and that the elected officals are covered under the City's umbrella policy as well as the specific public officals policy. Councilman Toth questioned the coverage provided for the dam. Mr. Dan Greene indi- cated that the Home Insurance Company has provided full coverage and that the League of Municipalities Program excluded dam coverage and that Nordstrom Larpenteur re- quired a $250 deductible. Councilman Schuldt questioned the coverage for the part-time peace officers. Council man Schuldt asked if the rate was based on the full-time officers and part-time of- ficers regarding. insurance coverage. General discussion was carried on regarding the type of coverage and the rate for licensed officers versus non-licensed officers. Mr. Dan Greene indicated that there was no difference in cost for insurance coverage for peace time officers. Mr. Greene further indicated that the rate is based on full-time peace officers and a flat rate for part-time officers. Councilman Engstrom questioned the insurance provided for peace officers in relation to the Axelson dog lawsuit. Mr. Dan Greene explained that there was a debate over the coverage of insurance in that specific situation as it was an intentional act. Mr. Greene further indicated that coverages can be obtained for a specific incident like the Axelson case but that the additional coverage'..is very expensive. Mr. Greene in- dicated that the peace officers are covered under the professional liability. Mr. Greene further indicated that the next step his company will do is to provide an out- line of all coverages and recommendations for deductibles. Mr. Greene indicated that the insurance program as submitted in the memo is the result of the two lowest bids, but that many companies looked at specific areas of the insurance program and in some cases, up to nine different bids were received. Mr. Greene indicated that the bids were analyzed with regard to the City specifications and anything extra was bid as an alternate. Mr. Greene indicated that the Workman's Compensation figures were increased by approximately ten percent as well as building valuations, and that the'~ overall cost for the insurance program is approximately $3,000 less than last year. Mr. Greene indicated that all companies bid a net program and therefore, the dividend programs provided are very important in the consideration of the insurance bids. Mr. Greene indicated that the dividend program is based on volume and loss ratio. Mr. Greene further indicated that the City has been very good and has had a very minimal loss ratio. The City Administrator indicated that in consideration of all bids received and the dividend program it is recommended that the City Council award the 1983 insurance pro- gram to the Home Insurance Company. COUNCILMAN ENGSTROM MOVED TO AWARD THE 1983 INSURANCE PROGRAM FOR THE CITY OF ELK RIVER TO THE HOME INSURANCE COMPANY. COUNCILMAN TOTH SECONDED THE MOTION. THE MOTION, PASSED 3-0.