HomeMy WebLinkAbout1976-0713 ADJOURNEDMINUTES OF ADJOURNED COUNCIL MEETING July 13, 1976 ROLL CALL The city council met in an adjourned meeting at 4:00 p.m. on the above date in council chambers. Mayor Prickett and Council mem- bers HoffaEth, Ragland and McDowell were present. Allen arrived at 4:10 p.m. Councilmen McCannon and Laws were absent. LIABILITY INSURANCE Finance Director Nelson said bids on city liability insurance were invited on May 12th and bids opened July 13th, but that Singmaster Insurance Agency submiuted the only bid (see Attach- ment "A"). Nelson said the automobile insurance premium could be as high as $16,000, thus taking the total liability insurance premium for the year up to $76,548. He noted that in addition, the hospital and airport carry their own insurance policies. Nelson said the City faces the following alternatives: 1. The Singmaster proposal could be accepted as presented. The proposal could be accepted, subject to a cancellation clause, and the Director of Finance could attempt to secure additional proposals, possibly with a large self-insurance clause. The proposal could be accepted, subject to the cancellation clause, and Singmaster Insurance would be designated as the City's liability insurance agent of record for the next three years, with the understanding that they will attempt to secure less costly coverage. Same as (3), except that the Cit3 of a professional risk management this effort. should engage the services con-sultant to assist in Nelson Recommended alternatives (3) and (4) as being the best with (4)preferable and further recommended that City negotiate with Singmaster on new rate structure if City absorbs the first $1,000 of property damage claims. In answer to a question from Ragland, Nelson said the League of Oregon Cities is studying several possible solutions, but have not yet formalized a plan. In answer to Hoffarth, Tom Kennedy of Singmaster Insurance said a California insurance company offers a plan that would probably require a $30,000 premium and a $25,000, deductible per claim with a cumulative deductible of $75,000, so maximum cost to City would not exceed $105,000 but he did not know if the company could be licensed in Oregon. In answer to question from the mayor regarding deductible insurance, Kennedy said he strongly recommends that the City obtain a deductible policy so that the City would settle its small claims on property damage without their appearing on the insurance record. He-pointed out that the number of claims filed will be reflected in bids in future years. ORDINANCE- BELLVIEW IMPROVEMENTS RESOLUTION- SALARIES CETA CONTROL Nelson spoke of our safety program and hopes our loss record will show a reduction. Kennedy said our inability to obtain bids is not only a result of our claim record, but also that of all the cities in the state. In answer to Mayor Prickett, he said he thought the cancellation fee would be ten percent of the returned premium. Kennedy said the insurance companies doing the bidding do not have the best rating, but they are the only on~s bidding for municipal coverage. He asked that Singmaster Insurance be named the agent of record for three years, and could see no reason for a cancella- tion, because if a competitor offered a lower bid, he could ob- tain City coverage from the same company at the same price. He said he had Spent considerable time seeking the best coverage and will continue to do so, and said he could also call for bids from companies so that the bid requirement of the City Charter would be met. In answer to a question from McDowell, Kenned~ said he would seek the best vehicle coverage available, and may find it desirable to put emergency vehicles under one policy and other vehicles under another. HOffarth felt by having an agent of record, that agent will spend more time in trying to find the protection the City needs. Salter said that if the agent obtains sealed bids, the Charter requirements are met. After some discussion of possible legislative changes affecting insurance, the mayor pointed out that we must have coverage cq July 15, 1976. Hoffarth moved that the Singmaster Insurance Agency proposal be accepted as presented and Singmaster Insurancd Agency be named agent of record, and that the agent pursue all avenues available to City for lesser cost to the City. McDowell seconded. Ken- nedy urged the Council to let a consultant give them a proposal for his services. Motion passed on roll call with Allen, Hof- farth, Ragland and McDowell in favor. Mayor Prickett asked for investigation of coverage with $1,000, $2,000 or $3,000 deductible. Almquist read an ordinance by title only authorizing and ordering improvement of Bellview Avenue from Siskiyou Boulevard southerly. McDowell moved to adopt the ordinance; Allen seconded, and motion passed unanimously on roll call vote. Almquist read a resolution setting forth salaries for miscellan- eous employees for fiscal year 1976-77. McDowell moved to adopt the resolution; Ragland seconded, and motion passed on unanimous roll call vote. Almquist said the two Comprehensive Employment and Training Act programs under which the City has been operating have been RESIGNATION- HOFFARTH POLICY STATEMENT: UTILITIES MASS TRANS- PORTATION extended to December 31, 1976, and recommended that the mayor and recorder be authorized to sign a contract to that effect with the Jackson~Josephine Job Council. Hoffarth so moved; McDowell seconded, and motion passed on unanimous roll call vote. Mayor Prickett announced that, regretfully, he had a letter to read. He then read a letter of resignation from Councilman Hoffarth (see attachment "B") necessitated by Hoffarth's forth- coming move outside the City. The mayor said this now opens the door to the filing of nominating petitions for Council Position No. 2, and that the Charter requires the Council to elect a new member within 60 days. He commended Mr. Hoffarth for his service to the City for almost two years. Almquist announced that on July 15th there will be a meeting of the Urban Source Advisory Committee to 208 Water Quality Task Force and that they will consider adoption of the Stevens, Thompson & Runyon report on areawide utilities (on which report Public Works Director Alsing had made some corrections), and will also discuss preliminary plans on Ashland's responsibility to supply sewers outside the City, or to determine if that is Bear Creek Valley Sanitary Authority's responsibility. Almquist said a previous council had decided not to participate in BCVSA, and accepted the moral obligation of supplying sewer facilities on the South side of the City. .As a result, BCVSA designed their system with interceptors too small to service the area outside of Ashland, Almquist displayed a map of proposed urban growth bound- aries, and read "Proposed Policy Statements" (attachment "C"). He said the map and proposed policy statements had been discussed in a committee meeting with Councilmen Ragland, Laws, Public Works Director Alsing and self. Ragland added that the Committee had discussed Charter restric- tions On utilities. Almquist said no council action is required at this point because policies will not be adopted at the meet- i~g of July 15th, but asked council members to be giving thought to establishing policies. It was general consensus that the map and proposed policy statements be presented to meeting of advisory committee for preliminary study. Mayor Prickett reported letter from Oregon Mass Transit Division regarding possible grant for bus service for communities under 50,000 population. It was consensus of Council that services should be provided through Rogue Valley Transportation District, but that the mayor will appoint someone to represent the City at the Transit Division meeting Meeting adjourned at 5:00 p.m. Mayor 343 EAST MAfN ~ ASHLAND, OREGON 97520 ~ PH. 482-1311 3uly 13. 1976 INSURANCE PROPOSAL FOR CITY OF ASHLAND FROM SINGMASTER INSURANCE AGENCY Gentlemen: Our office worked with a General Agent in Portland, Oregon, to obtain the quote we are providing. The General Agent's name is Vern Gilbert Company. Vern Gilbert Company represents the Jefferson Insurance Company of New York m~d the Bellefonte Insurance Company. We do not know the current Best's guide rating for those two companies. The Oregon Insurance Commissioners office would probably be the best source for that information. The Jefferson Insurance Company will insure the City of Ash!aad's Cenara! Liability and the Tort Errors and Omission Liability for an annual premium of $36,656.00. The JeffersonInsurance Company will not insure the automobile liability or the utility departments liability. The Bellefonte Insnrance Company will provide the Water and Electric Department liability insarance for an annual premium of $23,892.00. The!,only known automobile liability insurance market available for the -City of Ashalnd at this time is through the Oregon Automobile Insurance Plan, more commonly. known as the assigned risk plan. We cannot obtain a quote from the Oregon Automobile insurance Plan. Their requirements are that an application be sent to them with a $50 deposit per vehicle and they will notify us of the actual premium amount within two or three weeks. The coverage can be bound before the City's current insurance expires. The non-owned automobile liability insurance is not, included in this proposal. If the City decides to apply for insurance to to Oxegon Automobile Insurance Plan for the automobile liability insurance, they would be the firm to ask for the non-owned automobile liability insurance. Thomas ~. ~ennedy CITY OF ASHLAND GARY L. PRICKETT /v~yof GERALD R. ALLEN ~, ~:lman CRAIG E. HOFFARTH Jimart DONALD LAWS ,/man ROLAND MCCANNON . oilman MARGARET E. MCDOWELL Councilwomen JAMES M. RAGLAND Councilman BRIAN L. ALMQUIST City Adrninlslretor CITY HALL ASHLAND. OREGON 97.~20 teEeRhone (Code 503) 482-3211 July 13, 1976 HONORABLE MAYOR AND FELLOW COUNCIL MEMBERS AS you are aware, my family and I will be moving outside the City limits on October 1, 1976, which will necessitate my resignation from the Council. I have grappled with the thought of remaining on the Council until such time as we actually move. However, with an election in November it seems only right that the people of Ashland be given the opportunity to choose my successor. Therefore, it is with regret that I submit my resignation to be effective immediately. I have thoroughly enjoyed working with you people and the dedicated City employees; and while we have had our dif- ferences I have nothing but respect for the job you do. Res~ectfully ,,,~' Councilman Attachment "B"