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MINUTES OF THE REGULAR ORONO CITY COUNCIL <br />MEETING HELD ON FEBRUARY 12,1996 <br />(#20 - Public Works Vehicle Replacement - Continued) <br />Huit moved, Goetten seconded, to authorize the purchase of a one-ton cab and chassis <br />from Erickson Chevrolet at a cost of $24,324 as per the Hennepin County bid; and to <br />amend the budget by increasing the Park's one-ton truck appropriation by $ 12,000 and <br />reducing the Public Works pick-up truck appropriation by $12,000. Vote; Ayes 4, Nays <br />0. <br />(#21) INSURANCE BID AWARD <br />Moorse reported that the award is for approval of the bulk of insurance premiums for <br />1996 The insurance costs are favorable as they came in under budget and under the <br />1995 figures The amount does include an increase in certain coverages. <br />WTien questioned by Goetten about the lower costs, Moorse said the Workers <br />Compensation legislation has changed, which affected the costs, as well as the good <br />experience rating of the City <br />Barrett inquired if there was joint powers coverage. Moorse said the only joint powers <br />coverage the City has is through Logis, noting that normally the joint powers agency <br />carries the joint powers coverage. Tom Kuchn added that the Lake Minnetonka <br />Conservation District also has a joint powers coverage. <br />Also present at the meeting was Carl Bennetsen of R. L. Youngdahl & Associates. Inc., <br />the City's agent of record Callahan noted that all fees showed a reduction except for that <br />of the agency. Kuehn noted that the City changed agents late in 1995 due to the <br />retirement of the past agent ot record. The past agent received a flat fee plus <br />commissions where Youngdahl & Associates receives a flat tee-for-ser\ice only. <br />Therefore, the current fees are lower than the previous fees. <br />l lurr questioned why there was the need for an agent of record when the insurance was <br />cov ered through the League of Cities. Bennetsen responded that the workers <br />compensation can be conducted directly but the experience and knowledge an agent has <br />can alleviate confusion as well as keep abreast of changes. The agent follows up on <br />claims as well as analyzing the package policies. The agent analyzes the City's exposure, <br />obtains credits, and maintains the proper coverage. Bennetsen said the commercial <br />insurance needs are more complicated than that of an individual. <br />Kuehn added that each City has unique requirements It was noted that a Staff person <br />could act as an agent but would require licensing. The League requires an agent-of- <br />record so the brunt of the needs regarding insurance don't fall on the League itself <br />Moorse said he did not believe it was worth the time and expenses to train an employee <br />plus the time to follow up on any claims.