02-12-1996 Council Minutes - Laserfiche WebLink

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•, MINUTES OF THE REGULAR ORONO CITY COUNCIL MEETING HELD ON FEBRUARY 12, 1996 ( 920 - Public Works Vehicle Replacement - Continued) Hurr moved, Goetten seconded, to authorize the purchase of a one -ton cab and chassis from Erickson Chevrolet at a cost of $24,324 as per the Hennepin County bid; and to amend the budget by increasing the Park's one -ton truck appropriation by $12,000 and reducing the Public Works pick -up truck appropriation by $12,000. Vote: Ayes 4, Nays 0. ( #21) INSURANCE BID AWARD Moorse reported that the award is for approval of the bulk of insurance premiums for 1996. The insurance costs are favorable as they came in under budget and under the 1995 figures. The amount does include an increase in certain coverages. When questioned by Goetten about the lower costs, Moorse said the Workers Compensation legislation has changed, which affected the costs, as well as the good experience rating of the City. Barrett inquired if there was joint powers coverage. Moorse said the only joint powers coverage the City has is through Logis, noting that normally the joint powers agency carries the joint powers coverage. Tom Kuehn added that the Lake Minnetonka Conservation District also has a joint powers coverage. Also present at the meeting was Carl Bennetsen of R. L. Youngdahl & Associates, Inc., is the City's agent of record. Callahan noted that all fees showed a reduction except for that of the agency. Kuehn noted that the City changed agents late in 1995 due to the retirement of the past agent of record. The past agent received a flat fee plus commissions where Youngdahl & Associates receives a flat fee - for - service only. Therefore, the current fees are lower than the previous fees. Hurr questioned why there was the need for an agent of record when the insurance was covered through the League of Cities. Bennetsen responded that the workers compensation can be conducted directly but the experience and knowledge an agent has can alleviate confusion as well as keep abreast of changes. The agent follows up on claims as well as analyzing the package policies. The agent analyzes the City's exposure, obtains credits, and maintains the proper coverage. Bennetsen said the commercial insurance needs are more complicated than that of an individual. Kuehn added that each City has unique requirements. It was noted that a Staff person could act as an agent but would require licensing. The League requires an agent -of- record so the brunt of the needs regarding insurance don't fall on the League itself. Moorse said he did not believe it was worth the time and expenses to train an employee plus the time to follow up on any claims. • 14