05-27-81 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUTES City Council May 27, 1981 is a case in which the statement was paid within 5 days of the penalty tlate. Mr. Holland requested that this penalty charge be considered for refund. Mr. Fahey stated that it was the intent of his motion that only the years 1979 and 1980 be reviewed, and therefore, the November, 1978 statement should not be considered. City Mr. R~ichard McNamara of the McNamara Insurance Agency appeared before Insurance the Council. Mr. McNamara reported that the City obtained the Public Coverage Officials Liability Policy at a cost of $8,279 for a three-year period. & The There is a$1,000 deductibte on a defense and claim basis. The Schrier maximum coverage amount is $1,000,000. Property Mr. McNamara reported that Councilman Fahey asked him to explore the wrongful act provision of the policy. Mr. McNamara stated that the policy covers wrongful acts, but not willful acts. The policy does not cover punitive damages. Mr. McNamara further reported that the policy excludes a11 willful acts and inverse condemnation. Mc~lamara was not sure how the inverse condemnation provision applies, he assumed it may apply to downzoning of property. Mr. McNamara contacted some law firms and could not get an answer to this. The insurance companies he contacted could not provide an answer either. Mr. McNamara felt it was a point of law that would have to be decided on in a court. Mayor Hanson asked if Mr. McNamara contacted the State Insurance Commissioner on this question. McNamara replied that the Insurance Department will not give out an opinion on any insurance contract. The Flttorney stated that in his opinion under inverse condemnation the property owner could attempt to compel the City to condemn his property, and this would be excluded from the insurance policy. Attorney Parks felt that the City is not covered for downzoning damages in this Public Officials Liability Policy, as there would be so many ctaims of these types that insurance companies would not offer this type of coverage. Mr. Fahey stated that it was his fieeling that the C.ity was probably not covered for downzoning, and, therefore, he was not in favor of the policy. However, fahey stated he was unclear because of the inverse condemnation provision. Fahey suggested that the Attorney send a letter to the insurance company outlining the situation the City has and request an opinion on whether the poticy would provide coverage. Mrs. Scalze asked who would determine whether an act was wrongful or wi11fu1. The Flttorney replied that if the Council di~ something that was wrongful knowingly, then it is cons~dered a willful act. However, the Council would not knowingly violate its own ordinances. The downzoning of property is not necessarily wrongful. Page -3-