11-24-86 Council as WholeCommittee of the Whole Council November 24, 1986
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Mayor Kennedy called the meeting to order at 4:05 pm and stated the purpose
of the meeting was to discuss general liability insurance for the city.
Representatives of the Flathead Association of Independent Agents attending
were John Riley, Joyce Hoffman, Gwen Bigger, Doris Runyan, and Greg
Ellingson.
Councilmembers Saverud, Schindler, Hafferman, Nystul and Manning attended.
Also attending were Roger Hopkins, Clerk Halver, and later, City Attorney
Neier.
Mayor Kennedy reviewed some of the history of our attempts to get general
liability insurance. He said this meeting was called because we have to act
on the offer of $300,000 coverage by tomorrow. The annual premium would be
$70,168.00 with the premium until July 1, 1986 being $49,118.00.
Councilman Nystul and Doris Runyan reviewed the status of other insurance in
force. Basically we have everything we need except general liability.
John Riley pointed out many of our policies are contingent on our having a
eeneral liabilitv nolicv. - --
Mayor Kennedy asked if we were self insured and had the ability to sell bonds
to provide a reserve, would this meet the requirements.
They replied we would have to have sold 'the bonds and have the reserve on
hand to have it considered.
Councilman Schindler asked why the premium on the $300,000 was not
proportionately less than the premium quoted on the $1,000,000 policy.
John Riley said most of the premium is rated for the first $50,000 of
coverage because most of the losses are small.
Riley also said that now that we have a quote, we no longer have the option
of going through the State Marketing Assistance Program.
The rate we have quoted to us would be the same from any company willing to
give us a quote because they all use the ISO rating formulas.
Doris Runyan felt the quote we have now is probably as short a term as we can
get.
Councilman Saverud asked if the individual employees of the city are at risk
if the city has no general liability coverage. They said yes, they would at
least be liable to having to defend themselves as being named in the suit
even if the city agreed to assume the liability. With a general liability
policy the insurance company would provide the defense costs.
Next year if we go with St. Paul for all coverage we can probably get a
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` Committee of the Whole Council November 24, 1936
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Councilman Schindler did not feel confortable with only $300,000 coverage.
Councilman Nystul didn't feel we had much choice and recommended we purchase
the $300,000 for the premium of $49,118.00.
Councilman Saverud felt we had to have coverage to protect the city employees
from exposure. He was still not confortable with the League plan and he
agreed with Councilman Nystul that $300,000 is better than nothing.
Councilman Schindler preferred self-insurance.
Councilman Manning was in favor of the $300,000.
Councilman Nystul asked City Attorney Neier if the mayor has the authority to
purchase the insurance. He responded it was a budgeted item and could be an
administrative decision.
Mayor Kennedy stated he would purchase the $300,000 coverage based upon the
response of the councilmembers present. Coverage will be bound ap of
November 25, 1986.
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