CC PACKET 06141988 - Laserfiche WebLink

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1 and then would reimburse the County CDBG fund program to assure that • 2 the defendants would not eliminate those funds from their settlement. 3 The interest rate on the CDBG funds would be tied in with the interest 4 received on the General Obligation Revenue Bonds, the Manager added. 5 Council Action 6 Motion by Ranallo, seconded by Enrooth to adopt Resolution 88-019 . 7 RESOLUTION 88-019 8 A RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $875,000 9 GENERAL OBLIGATION REVENUE WATER SYSTEM BONDS, 10 SERIES 1988A 11 Motion carried unanimously. 12 St. Anthony to Start Its Own Self Insurance Program to Cover Losses in 13 Highest Rate Categories 14 Councilmembers had been furnished with copies of the 1988-89 insurance 15 renewal proposals prepared by Mark Flaten of American Risk Services, 16 Inc. The City' s insurance agent drew attention to sharp raises in 17 several areas where he said other medium sized cities like St. 18 Anthony had decided to self-insure against some of their losses. • 19 Mr. Flaten reported that because the Council had made "a wise 20 decision" to go with a retrospective rating system on Workers Compen- 21 sation in 1986 , the City had received a return premium of $45 , 000 for 22 the 1986-87 period and would be expected to receive another $55 , 000 23 for the 87-88 period, which could be used as the first installment in 24 the self insurance fund. Further, because of St. Anthony' s good 25 safety program, the City' s experience modification was being reduced 26 from 1 . 38% to 1 . 21% for 1988-89 . 27 Mr. Flaten had provided quotes for liquor liability insurance from two 28 insurance companies, which he said were very close. He recommended 29 staying with Transcontinental who had a longer experience in Min- 30 nesota. His report drew a comparison between the premiums the City 31 had paid for similar coverage in 1987-88 and could expect to pay if 32 the same coverage- were retained. Mr. Flaten' s suggestions for self 33 insurance in some areas were based on increasing the security for the 34 check cashing operations to decrease crime loss exposure as well as 35 the relationship between the need for umbrella coverage for additional 36 official liability protection and that offered under the Sovereign 37 Immunity. Law. 38 With Workers Compensation rebates and larger deductibles in several 39 categories, it was perceived the City would have close to $130,000.00 40 to start a self insurance program with a capability of covering 41 smaller losses and covering increased deductibles. 5