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113 <br /> April 21,1976 <br /> The Regular Meeting of the Everett City call <br /> to <br /> order a :30 .M April21,1976,inthe Conference Doom <br /> Everett Hall w CouncilP President Gipsonueiding and <br /> all Councilmen in attendance ceptCouncilmen ncker and <br /> Ebert who w excused. <br /> CDumACx DAM INSURANCE <br /> Bruexplained that he and Gordon Hey and Mary Naeglund <br /> April 20,1976 with Kermit!tiller of the P.U.D. ie- <br /> pocon A problem of increased premiums on liability insurance ance <br /> licies ss the or the Culmback Uam.± Th.0 and t e <br /> policies <br /> i f property and liability lhe insuranceunder <br /> W.contract¢ hb a the Cityback Dam. a e U. orntgeades increased aeelop- <br /> pent telyfthe£rom aptotal of$14,000 ina1975cfor a$2,000,000 of cover- <br /> t$92,060 for$1.500,000. Theproblemappears to.be that .ISI <br /> the prior <br /> carrier has canceled oodath hat tessentially seekingnew <br /> carriers. The P.U.D. is a rally <br /> surance seller's market this time period. Ittappears nthat <br /> there are three alternatives: <br /> Alternative p1: Self-insure the first$500,000 of in- <br /> surance saving apremiumo $52.325. <br /> The P.U.D.uran and the City would <br /> sharec222equally in the sks of selh- <br /> insurance up to$250,000 a piece. The <br /> ±TheP.U.D. <br /> would purchase ex coverage unt <br /> of 01,000,000 if e ss coverage in that <br /> re found toe be available.enthe2P P.U.D.has an offer of$1,000,000 <br /> pres- <br /> entexcess coverage t$40,000. alterna- <br /> tive istheo uggeeted andTapproved by <br /> the P..D.ifnthe City will agree. <br /> Alternative 02: ut he first$500,000 of liability <br /> insurance for$52,325. t least the pus- <br /> chase of this amount of coverage would in- <br /> tion itfne claim of <br /> a defense and <br /> elf-insure <br /> for any amount over e$500,000.$ <br /> Alternative 43: Total self-insurance,based an the City's <br /> existing self-insurance fund of$390,000 <br /> which could be comm:'ted t claim <br /> whithe out ofthe City'ser share of the pre- <br /> moon iii x the P <br /> mivma could b paid into the eefundntoxance. <br /> iq to possible <br /> the self-insurance fund to seat <br /> 3 passible futurclaims. <br /> in pointed out <br /> that the sfirthalternative e three eis the one suggested s it should eby the P.U.D. <br /> and i basedontheir insurance consultant's recommendation. <br /> 80 aatioon. <br /> (The.P insurance consultantis1 ntaine of A. <br /> Dur e.)D <br /> The advantage of the second alternative is and that a :wind for <br /> be <br /> oon the paying theey wohigh uld gum et thetthe advantage o e incur company's <br /> payment ofthe cost of defense and investigation in addition <br /> $500,000 coverage. If any insurance is a purchased, <br /> there would s be epic utility in this approach since there <br /> is usually no cost of defense <br /> a t <br /> associated with excess liability <br /> e <br /> coverage. Further,since main exposure and the reason <br />