HomeMy WebLinkAbout06/30/1997Council Work Session
June 30, 1997
Page 2
Councilperson Getty stated that if the city chose Arthur Gallagher,
the $58,000 per year savings could be put into the loss fund bank
account.
City Clerk Susan Fangman informed the council that St. Paul is the
city's carrier for the Police Professional and Public Officials
liability insurance policies. City Attorney Jim Walsh stated that
he believes it is a plus to have one insurance carrier for the
different insurance policies the city must carry.
Councilperson Anders questioned if it will cost the city any money
to set aside the funds for the loss fund bank account. City Clerk
Susan Fangman stated that only if the interest earned on that
account were lower than the interest the city is receiving on its
other accounts.
Councilperson Getty stated that the city must make a decision by
July 1, 1997. He questioned if St. Paul, our current carrier,
would extend our coverage if we throw out all the bids and go out
for RFPs. Mayor Rooff stated that St. Paul will bind coverage
until we make a decision.
Councilperson Getty stated that although he likes to award to local
companies when possible, the $58,000 difference in the bids is a
lot of money. He would like to see the city go out for RFPs.
Councilperson Murphy questioned how much extra work is involved
with a third party. Ms. Fangman stated there is more paper work
involved with a third party.
Councilperson Krizek stated that the city would have to put $50,000
in a loss fund bank account and then every month replenish the
account. The money must be set aside for insurance purposes only
and cannot be used in the general fund, and that it is like a
restrictive fund.
Moved by Getty, seconded by Anders that the city requests that St.
Paul bind our coverage until October 1, 1997 using the current
premium rate, and that the we send out RFPs on our General and Auto
liability, Police Professional and Public Officials liability
insurance 60 days prior to October 1, 1997. Ayes: Seven. Motion
carried.
With no further business before the council, it was moved by
Krizek, seconded by Jordan that the meeting be adjourned at 9:30
a.m. Ayes: Seven. Motion carried.
Nancy Eckert
Deputy City Clerk