06-29-1982 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, JUNE 29, 1982
The meeting was called to order by Vice -Mayor Gruenhagen at 7:00 A.M., with the
following present: Alderman Ted Beatty, Alderman Mike Carls, and Alderman John
Mlinar in addition to Vice -Mayor Kenneth Gruenhagen. Absent: Mayor James G.
DeMeyer. Also present: City Administrator Gary D. Plotz, City Accountant Kenneth
B. Merrill, City Engineer Marlow Priebe, and Dennis Potter of Madsen Insurance
Agency.
Kenneth Merrill and Dennis Potter reviewed the historical background of the City's
insurance. Mr. Potter pointed out that there have been several major claims for
the boiler coverage for Hutchinson Utilities, and furthermore, that the various
insurance coverages are tied together as a package proposal to accept or reject.
Mr. Potter recommended the City Council consider the additional coverages for City
umbrella for a $5,000,000.00 limit, and police officers liability coverage for a
$250,000/$500,000 limit. It was the consensus of the Council that the umbrella
coverage was advantageous and the additional premium for the higher coverage was
worthwhile. All City Council members felt that the additional police officers
liability coverage, beyond what is provided with the general liability policy of
the City was advantageous.
The City Council felt that the premium for the umbrella coverage of $5,000,000.00
should be divided as the Utilities Commission would receive some benefit from this
coverage in addition to the separate umbrella coverage that will be proposed to
the Commission by the Madsen Agency. City Accountant Merrill was asked to contact
the Utilities regarding this matter. Likewise, Dennis Potter will discuss the um-
brella coverage with the Utilities.
It was pointed out by Dennis Potter that the pollution control coverage is a re-
sult of some new law changes. This quote is not available at this time; however,
it will be submitted in the future.
A motion was made by Alderman Carls, seconded by Alderman Mlinar, that the City's
insurance coverage be contracted to the Madsen Insurance Agency based on the pro-
posal made, including the $5,000,000.00 umbrella coverage and $250,000/$500,000
police officers liability coverage. Motion unanimously approved.
The City Council also reviewed the status of health insurance coverage which is
due August 1, 1982. Dennis Potter pointed out that last year there was a claims
history of 200% in excess of the premium paid. However, the proposed rate increase
would be 34% for renewal. Mr. Potter pointed out the School District's renewal rate
was a 33% increase with a very good claims history. Therefore, it was his conclu-
sion that it may not be in the best interest of the City to bid this insurance out.
It was noted that last year the City did bid the health insurance and nevertheless
had a substantial rate increase. After much discussion, it was the consensus of the
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COUNCIL MINUTES
JUNE 29, 1982
City Council that they would not be bidding health insurance for 1982-83; however,
the renewal of the various employees insurances would be placed on the City Council
Agenda of July 13, 1982 for consideration.
Vice -Mayor Gruenhagen requested the City Administrator to schedule the annual/semi-
annual meeting with the Utilities Commission/City Council. The City Council mem-
bers will be contacted regarding the date.
Vice -Mayor Gruenhagen and Alderman Carls stated there would be an up -coming meet-
ing on Wednesday, August 25, 1982 for a joint meeting of the Hospital Board, Nursing
Home Board, Senior Advisory Board, HRA Board, and City Council. The City Adminis-
trator Plotz was requested to coordinate the notification of the meeting.
The City Council decided to re -schedule the meeting with the City Engineer to re-
view the 1983 projects inasmuch as there was insufficient time to cover this topic.
City Administrator will contact the City Council regarding the scheduling of a morn-
ing meeting.
The meeting was adjourned at 9:30 A.M.
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