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"