01-11-84 Council Minutes - Laserfiche WebLink

Home Browse Search

MINUCES Ci.ty Counci.l Jan. 17.~ 1984 Insurance The City Clerlc reported that the reason for the backup wzs tree roots Claim (ConC.) in the sewer line. Mrs. Nardi.ni. reported thaC the insurance company has pai.d her claims. 'The Clerk reporCed that some people on Pdger.ton ~aere al.so paid. Mr. PorsUerg questioned the type of insurance the City has if it will not honor the claims. Sc~lze commented that there are other irisurance companies around and the Ci.ty is payi.ng a lot oI money in premi.ums. The Ci.ty Attorney stated thst the i.nsurance company i.s obli.p,ated to handle the cl.ai.ms, but they handle thcm as they see Ei.t. `Che Attorney statc~~d that i.t m'ight mean that these two gentl.emen might liave to sue the City~ and the insurance company woul.d then defend the sui.t. Mr. Pahey su~;gested that Che City AtCOrney loolc into iC, and if he feel.s the City is liabie, then the Ci.ty shoul.cl write a lett:er to the insurance company on Che matter. The Attorney fe].t i.t mi.ght~be ouY.side t:he ~arameters of the City's contract with the insurance company to do thi.s. Mr. Pahey felt Chat the City coul.d put some pressure on Che i.nsurance company and di.d not f.eel that citi.zens had to sue in order to collecC damages. Hanson pointed out that the insur.ance company i.s admi.tting some liabi.ltty. The AtCOrney stat:ed that they ar.e admitting they will pay some money in order to get ri.d of a case. The Attorney felt that they have accepted the duty to deEend Che case and right now they are tryin~ to negoti.ate the amounts i.nvolved. Mr. Plastell reported that the adjuster inf:or.med hi.m that by the time he would pay a la~oyers fee to £i.ght the case, the ~2,200 would loolc E;ood. Mr. Chlebeclc stated that he does not thi.nlc that the City can seCtle thi_s claim out of. tits funds. Mr. P'ahey agreect that the City is not assuming l.iability. Ftowever, felt that if the C~ity was liable, iC could put pre>sure on the insurance company. Mr. Flanson aslced what was donc~~ to alleviate the situation. The Cl.erk repli.ed that that area of se~.oer has to be augered more o[ten< The Clerlc f,el.t that the Attorney should i.nvesti.gate the si.tuati.on. Mr.s. Scalze stated that bef.ore the insurance pol.icy is rei.nstated, the City should get a clarification of what i.s covered and how these things will be handled in the fut:ure. Page -7-