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~INUTES <br />CITY COUNCIL <br />February 25, 1981 <br />Mr. McNamara stated that this coverage was malpractice insurance for <br />public offic~als. <br />Mr. Mchamara suggested to the Council that they pass a resolution covering <br />Council members for the cost of defense or any liability damages for its <br />appointed or elected officials until such time as insurance coverage Por <br />this type of loss is provided. <br />Councilman Fahey stated that the City is liable for these damages, but <br />only if approved in advance. Fahey stated that the Council should pass <br />such a resolution as suggested by Mr. Mc~lamara so that Councilmembers <br />are free to exercise their judgment without the concern of such damages <br />being randered aga9nst them. <br />Mr. McNamara stated that the insurance policy would cover damages against <br />the City or appointed or elected officials if there was negligence on the <br />part of these persons. Mr. McNamara informed the Council that there is a <br />large increase in these types of claims. The biggest cost of the claims <br />is d~fending against them. <br />Mr. Fahey stated that he would like to see exclusion #11 removed from the <br />policy. Mr. McNamara statecl that there are exclusions that would be pulled <br />out. He wi71 have to contact the insurance company to see what types of <br />coverage they will provide. Mr. Mc~amara will subm9t a proposal to tYie <br />insurance company outlin9ng the coverage the City wants. <br />Mayor Hanson asked how many insurance companies provide this type of <br />coverage. Mr. McNamara rep1ied ~hat not many provided the coverage. <br />Not many c9ties had this coverage, but many are now talking about obtaining <br />it. <br />Mr. McMamara informed the Council that they now have coverage for any <br />bodily injury or property damage caused while on official business caused <br />to another party. The Counci7 also has workers' compensation coverage. <br />Mr. Forsberg introduced the following resolution and moved its acloption: <br />RESOLUTIOPI D10, 81-2-94 - AUTHORIZI~IG MR. RICHFlRD McNFlMFlRA OF <br />TFIF.. McNAMARA IMSUf2FlNCE AGENCY TO GF.T A FIRM QUOTE FlN[1 EXPRESS <br />TERMS OF THF PUBLIC OFFICIALS' LIFlBILITY INSURANCE POLICY <br />SPECIFICFlLLY THE TFRMS REGARDING THE CONDEMNATION ISSUE FlND <br />GIVE THIS INfORMATION TO ThiE CITY FlTTORNEY SO THFlT H[ CAN <br />REPORT BACK TO TFIE COUNCIL AT THE NF.XT COUNCIL ME:ETING <br />The foregoing reso1ution was du1y seconded by Mrs. Nardini. <br />Flyes (5) Forsberg, Nardini, Nanson, Fahey, Scalze. <br />Nayes (0). <br />Resolution dec7ared adopted. <br />This resolution appears in Reso1ution Book No. 7, Page 57. <br />7he City Clerk stated 'that it should go on record that this insurance <br />policy would cover fu11-time employees of the City. <br />Page -7- <br />