Loading...
10-18-1983 - Special , ~ ~ u CITY COUNCIL OF EDGEWATER SPECIAL MEETING OCTOBER 18,1983 MINUTES Mayor David Ledbetter called the Special Meeting to order at 10:00 A.M. in the Community Center. He stated the purpose of the meeting was to open, review, and take possible action on the insurance proposals. ROLL CALL Mayor David Ledbetter Councilman Melbourne Wargo Councilwoman Gigi Bennington Councilman Neil Asting Present Arrived Later Present Present Councilman Jack Spencer City Attorney Jose' Alvarez City Clerk Connie Kinsey Police Chief Earl Baugh Pres~nt Present Present Present Councilman Spencer asked for a review as to how the specifications were developed. City Attorney Alvarez said that due to a communication problem they were informed that the motion and request of City Council on September 7 to extend the coverage for an additional ninety days was only partly accomplished. He said they found there were two areas of insurance which had not been extended, police liability and the public officials. He said he met with the City Clerk and they decided to get some coverage so they contacted all the potential carriers and agents in the area who had in the past expressed an interest in the insurance package and also those who had offered proposals to other municipalites in the area. He noted that they developed the specifications and submitted the notice to the newspaper, and in the interim they met with the present carrier and he found a way to cover them from October 1st until October 20th. City Clerk Kinsey opened the bids. City Attorney Alvarez noted that due to the sensitivity and sudden urgency, this could be classified as an emergency purchase without even having to solicit proposals. Councilman Spencer suggested that Police Chief Baugh be excused at this time and Council members agreed. Chief Baugh left the meeting at 10:17 A.M. Ms. Carol Jarman of Caton Insurance spoke to-Council regarding that company's proposal which totalled $30,259.00. Ms. Jarman stated that the civil rights was not included but it could be obtained and would take 45 to 60 days. She suggested an update on the total value of the buildings and said their proposal was figured with a $100. deductible. She explained that different deductibles were available, up to $5,OOO.,which could lower the premiums. Councilman Wargo arrived at the meeting at 10:27 A.M. Councilman Spencer stated that the $300,000. limit seemed too low and City Attorney Alvarez stated that was what we had previously and when the carrier was selected, then we could negotiate. Ms. Jarman suggested the umbrella policy. City Attorney Alvarez said the umbrella would cover the City from above the primary amount to at least $1,000,000. Ms. Jarman read the automobile limits. Councilman Spencer asked if this~sa specific number of vehicles and Ms. Jarman said there were 40 listed. Councilman Asting asked how the premium was adjusted if they change the vehicle list and Ms. Jarman said it's on each vehicle and based according to the use of the vehicle. Councilman Spencer asked if just the City Clerk and Deputy City Clerk were bonded and City Clerk Kinsey said this was listed because they were the cash handling positions. Ms. Jarman said the floater policy covered miscellaneous and some of the items could be deleted. that were for the smaller items and equipment as this had the $100. deductible. City Attorney Alvarez asked about the aggregate total and Ms. Jarman said the maximum would be $300,000. and the aggregate is the annual total. o o Ms. Jarman reviewed the process of reporting claims and the investigations and City Attorney Alvarez asked the approximate time for this. Ms. Jarman said it goes to Chicago and it normally takes two weeks or fifteen days. City Attorney Alvarez asked how it's handled when a lawsuit requires an answer within twenty days and Ms. Jarman said it's assigned to an attorney who will get the answer within the twenty days or he'll get an extension of time if the answer isn't ready. Ms. Jarman said the American States is located in Orlando and they can pay claims up to $1,500. for small losses and glass. Councilman Asting asked about the rating of the companies which was listed as IIAII plus, etc. Ms. Jarman said thatls basically determined on how customers complaints are handled and the financial strength with the number 15 being the highest rating. Mr. Jarman reviewed the no fault law and how worker's compensation would enter into it. Councilwoman Bennington asked how PIP enters into it and Ms. Jarman said that if the employee is authorized to take a vehicle home and stops at a store or something, then the worker's compensation would not cover it. Councilwoman Bennington asked about the volunteer group that has a van and uses it for personal errands while on volunteer duty. Ms. Jarman said they'd have to look into whether the worker's compensation would cover it. There was a discussion about the instances when the van was used for personal errands and about the City's liability in this matter. Ms. Jarman noted that the only change on the public officials' liability was the deductible from $5,000. to $1,000. and from $1,000. for each official to $250. City Attorney Alvarez asked about the statement on their correspondence regarding their full reservation of rights and Ms. Jarman said that means they didn't have a chance to investigate the claim yet and it's a standard form letter. Ms. Jarman noted that the accidental death on policemen is for the actual number of police- men with the new requirement of $50,000.for some instances included. She said the cover- age for firemen is based on the pieces of equipment. City Clerk Kinsey noted the medical indemnity of $50.00 a week for up to one year could be changed. Ms. Jarman said they could only provide up to $150.00 a week and if they were employed elsewhere the worker's compensation could pay. City Clerk Kinsey asked if worker's compensations covers volun- teer firemen and auxiliary police also and Ms. Jarman said it would. Councilman Wargo stated held like to see the benefit raised to $150.00 a week if it isn't too high priced. Mr. Gary Schad of Town & Country Insurance Agency, Inc. had a proposed cost of $33,506.00 for the package. He said civil rights is on professional liability and Police officers. He suggested they consider a Difference in Conditions policy which would cover sinkholes, earthquakes and floods, and said it would be an additional premium. He recommended updating the property and contents and suggested an increased deductible. Councilman Wargo asked if the property value would be depreciated if they don't cover the 90% of the property value and Mr. Schad said it could be. He spoke on co-insurance. City Clerk Kinsey noted that she'd asked the Building Official to do a square footage. Mr. Schad said they have blanket coverage up to $2,000,000. for buildings and contents and they don't have to list each item. He said if a volunteer has a child in a City car her PIP policy should cover that and that "municipalities are not required to have PIP. City Attorney Alvarez noted that Council's concern is the City's exposure when an employee or volunteer has a civilian in the car or truck and there's an accident. City Attorney Alvarez asked how soon coverage could be effective and Ms. Jarman and Mr. Schad both replied it could be immediately. City Attorney Alvarez asked about claims handling and Mr. Schad said depending on the carrier, it would take one week to two weeks but for property damage and bodily injury it might take longer. He said the main office is in Orlando and they have their own in-house adjusters, and they use local attorneys within a 50-mile radius when there are lawsuits involved. City Attorney Alvarez asked what input the City has as to what claims are to be paid and which are not to keep the premiums down and Mr. Schad said they have a lot of input and suggested setting up a quarterly report on losses and claims. Councilman Spencer asked if there was a cost involved if a loss survey is done for the City and Mr. Schad said this could be done with no additional cost in the premium. City Attorney Alavarez asked if some of the recommendations would result in a premium reduction and Mr. Schad said yes. Councilman Asting moved to recess at 12:02PM for lunch and re-convene at 1 :OOPM. Meeting was recessed. -2- Special Council Meeting Minutes October 18, 1983 o o Meeting returned to order at 1 :05 PM. The proposal from Jennings Insurance Agency was reviewed. Their proposal was for a partial package and was for the two policies they presently carry. Mayor Ledbetter suggested they keep to one insurance company if possible rather than split it up. City Clerk Kinsey said that was an area of confusion now as to who to call for an incident. Tumblin Insurance was the next proposal reviewed. Councilwoman Bennington noted that she didn1t see a premium for public officials. liability. Councilman Spencer asked if civil rights ~as included. Councilman Asting noted that loss control states they are authorized to issue a draft up to $5,000. to expedite claims. City Attorney Alvarez said that would be helpful to settle these things early enough before they get out of control. Councilman Wargo said co-insurance usually states that you have to insure for at least 80% of replacement value but they use the term sound value and if the loss is payable they depreciate the loss according to the replacement value. Councilman Spencer asked about the statement that said they waited two days for the forms and City Attorney Alvarez said they met the past Thursday with the City Clerk and Council- woman Bennington and the agents received the specifications in their hands about 1:00 that day. Councilman Spencer said they probably didn't get the quote back on the public officials. liability. City Clerk Kinsey noted that it's the same situation with the Building Official and will take at least 10 days. Councilman Spencer suggested they call Tumblin's office to get the information needed. There was a five-minute recess at 1:21PM for City Clerk Kinsey to return to City hall to call Tumblin's office. Meeting returned to order at 1 :30PM. City Clerk Kinsey said the premium on the public officialsl liability was $1,641. which makes a total of $29,234. for the package. She said she was advised that civil rights is within the scope of a wrongful act and would be covered the same as the discrimination section in the back, but it wouldn't be for an intentional act, just a wrongful act. Mayor Ledbetter stated that discrimination is a long way from civil rights. City Attorney Alvarez explained Civil Rights, U.S. Code 42. Councilman Spencer noted that page 5 had a positive statement regarding an Attorney in Daytona Beach Hhere loss control and claims settlement is involved. City Attorney Alvarez noted that Town & Country had stated if the claim is big enough they could bring in an attorney familiar with a case of that scope but for the average case it1s best to have someone local. City Attorney Alvarez stated the courts keep opening the doors to liti- gation against the municipalities and now anti-trust is involved. Brown & Brown, Inc. was the next proposal reviewed and their cost was $38,998.00 for the package submitted. City Clerk Kinsey asked if the general liability extension and endorsement was another term for an umbrella policy and City Attorney Alvarez said that was when there was blanket coverage for specifics. Mayor Ledbetter pointed out they had excluded loss due to discrimination, and Councilman Spencer noted that it was not all- inclusive and did not have civil rights. Risk Management Services was then reviewed and their proposal was for $44,129.00. City Attorney Alvarez noted that they just handle claims for insurance companies and Florida League of Cities went with this program as the lowest bidder. He also noted that they have optional quotes included. Councilman Spencer said they have the first umbrella quote received that day~ Councilman Wargo asked about the figure of 15 for full time police officers under the accidental death and dismemberment and City Clerk Kinsey said that's the ones with arrest powers. City Attorney Alvarez noted that's not the police liability, that's what the state requires. Councilman Wargo~ asked if the State only requires this for those ~/ith arrest powers and City Clerk Kinsey said yes, and she noted that they recommend the $200.00 a week for 52 weeks also. Councilwoman Bennington noted the annual premium does not include the optional items. Councilman Spencer said it doesn1t appear to cover the police and professional and firefighters and the $200. for 52 weeks is not included. Councilwoman Bennington noted that comprehensive liability covers a lot compared to the others quotes. -3- Special Council Meeting Minutes October 18, 1983 . o (J Mayor Ledbetter noted that the umbrella liability is included and Councilman Spencer stated that even with that included it's still the top dollar figure. Councilman Spencer said his concern is civil rights and he wants them explicitly covered and he said he felt they needed input regarding claims and settlements to know what is going on. He said from the litigation standpoint, it would be helpful to have local attorneys to talk to them on the telephone. Councilman Asting said that in considering all, he believed the Town & Country Agency submitted the best even thought it wasn't the lowest. Councilwoman Bennington agreed with him. City Attorney Alvarez said if they authorize the City Attorney and City Clerk to negotiate an agreement, they will come back to Council with it. Councilman Spencer said he felt the most attractive was Town & Country also and he moved that the Council authorize the City Clerk and City Attorney to negotiate a contract with Town & Country. Councilwoman Bennington seconded the motion. Councilwoman Bennington asked that the property and contents be covered thoroughly. City Attorney Alvarez asked if they had a second selection. Councilman Wargo said he thought Tumblin was good. Councilman Asting said their statement on wrongful or intentional acts concerned him, and he thought Caton would be second best but they didn't provide civil rights that they're looking for. Councilwoman Bennington said they hadn't given them the public officials' liability. Councilman Spencer said in favor of Tumblin was the local $5,000. draft authority and the local attorney in Daytona Beach were good features and they were the lowest bidder, but he was disappointed that they didn't have an agent at the meeting to answer questions. He said he would consider them a second choice if negotiations couldn't be finalized with Town & Country. Councilman Asting said they would need to clarify the property value and the civil rights. Councilman Spencer withdrew his motion and Councilwoman Bennington withdrew her second to the motion. Councilman Spencer moved to negotiate with Town & Country as Council IS first choice, and if those negotiations are not satisfactory, to negotiate with Tumblin as a second choice. Councilwoman Bennington seconded the motion. Motion CARRIED 5-0. City Attorney Alvarez said they need a time frame since Thursday is the deadline. Councilman Spencer said that during negotiations he wanted them to quote on an umbrella, and noted that Mr. Schad suggested coordinating it with the fiscal year. Councilman Asting suggested it be a three-year policy, renewable yearly. Council members agreed that it would be renewable on October 1,1984. Councilman Spencer thanked the City Attorney, City Clerk, and Councilwoman Bennington for the time and effort put forth in this project. City Attorney Alvarez said they'd come back with a resolution at the regular meeting. Councilman Asting moved to adjourn. Councilman Spencer seconded the motion. Meeting was adjourned at 2:23 PM. Minutes submitted by: Lura Sue Koser . ATTEST: ~ . -- 4 ~///~_/ CITY CL~RK -.~ - ~- ) Approved thi s 7Z.F-day of Y7,r--y c:DkJ I:~M' ~ MAYOR .. 1983. ~7 /.i 'cy ~-1 / ~ v -4- Special Council Meeting Minutes October 18, 1983