1986-12-23 - Laserfiche WebLink

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I I I Council Meeting Minutes December 23, 1986 Council Business, continued Egan introduced our insurance agent, Bruce Medvec of First Insurance Twin Cities, who then reviewed the history of insurance problems and policies, reviewed some of the risks the council took last year to lower the premium, and reviewed his recommend a- for 1987 coverage. Medvec noted for the City to have a reduced premium, the Power- house would no longer be able to have live entertainment or a happy hour. Benke asked, with the other changes we have talked about and with the positive experiences, if workers' compensation increases are a trend; Medvec responded that the credit New Brighton received from the State of Minnesota actually decreased and the rates for workers' compensation have increased through the League of Minne- sota Cities because there is a tripling of insurance for volunteer fire departments and an increase in the category of "municipal employees not otherwise classified," which is a state-wide problem rather than a problem exclusive to in New Brighton. In response to Benke's inquiry, Medvec indicated the limits for the public employee bond cost had been increased from $25,000 to $50,000 within the last several months, mostly in light of the position that bonding companies and cities took with the problem in Winona, Minnesota. Gunderman asked for staff's reaction; Sinda stated New Brighton paid $98,000 for insurance in 1986 and felt it is to the city's advantage to not have country western music at the Powerhouse in order to realize a savings of $60,000 in premiums. In reviewing the cash flow for the liquor operation, Benke noted at the end of November we were breaking even; Egan stated the posture of the current insurance company is that Palmer Drive has to pay the same rate as our on-sale (indirectly passing part of the burden onto Palmer Drive). Sinda also stated the city probably spends about $20,000 per year on entertainment, lowering our total expenses by about $80,000. Benke senses the clientele at the Powerhouse enjoys the live enter- tainment, but we can't justify maintaining the cost. Motion by Gunderman, seconded by Brandt, to RECEIVE THE PROPOSAL PREPARED BY FIRST INSURANCE TWIN CITIES AND DIRECT STAFF TO PREPARE A RESOLUTION FOR RENEWAL OF INSURANCES AT THE FIRST MEETING IN JANUARY, 1987. 4 Ayes - 0 Nayes, Motion Carried Williams complimented Medvec on his report. Page Six 1987 Insurance Policies: Presentation of Policies Report 86-329