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MINUTES <br />CITY COUNCIL <br />JANUARY 9, 1991 <br />The City Attorney pointed out the liability examples <br />listed in the League's December 1, 1989 correspondence. <br />The Attorney noted that any suit that would be filed <br />against a City is filed under Section 93 of the U.S. <br />Code which addresses violations of civil rights. Also, <br />the inverse condemnation theory is a growing area of <br />the law and not subject to statutory limits. The City <br />Attorney stated that without his doing an analysis of <br />claims under this coverage, it was his opinion that the <br />cost of Umbrella coverage was money well spent. <br />The City Administrator pointed out that the Umbrella <br />coverage would provide coverage in excess of the City's <br />underlying limits of $600,000. The Administrator <br />reported that about one-third of all cities in the <br />State carry Umbrella coverage while two-thirds do not. <br />The Administrator stated that the City Attorney's <br />points are well taken. Aowever, the City would first <br />have to have a suit filed against it, then a judgment <br />made against the City and that judgment would have to <br />exceed the City's underlying policy limits before the <br />Umbrella coverage would be effective. The <br />Administrator stated that he questioned the need for <br />Umbrella coverage, but could not say for certain that <br />the City would never have a claim against it that could <br />tap the Umbrella coverage. <br />Seppelt pointed out that the quote for Fidelity <br />coverage is $992 for coverage up to $100,000. <br />Council discussed the Fidelity coverage, and it was the <br />consensus of the Council to purchase Fidelity coverage <br />up to $50,000. <br />5eppelt pointed out that in the past the City has <br />carried Boiler and Machinery coverage at a premium of <br />approximately $1,000 per year with a$500 deductible. <br />Seppelt pointed out that under these conditions the <br />City would need a claim exceeding $1,500 in order for <br />the coverage to be feasible, and the City Administrator <br />has questioned the need for this coverage. <br />The City Administrator reported that he has deleted <br />Garage Keepers Liability from the insurance coverages <br />for 1991 as well as made adjustments to property <br />coverage and valuations. These have been reviewed with <br />the Administrative Liaison. <br />Mr. Blesener introduced the following resolution and <br />moved its adoption: <br />RESOLUTION N0. 91-1-20 - APPROVING THE PURCHASE OF <br />Page 11 <br />