12/28/1967 - 00020515� ��� ��
THE MINUTLS OF THE SPECIAL COUNCIL MEETING OF DECEMBER 28, 1967
The Special Council Meeting of December 28, 1967 was caLled to order by
Mayor Kirkham at 7;35 P.M.
ROLL CALL
MEMBERS PRESENT: Kirkham, Liebl, Harris
MEMBERS ABSENT; Samuelson, Sheridan
CONSIDERATION OF INSURANCE COVERAGE:
Mr. Lee DougLas, Insurance Consultant from Bachman-Anderson, Inc., presented
the Council with copies of the informal bids opened that afternoon. He
explained there are three options available to the Crty regarding the Work-
men's Compensation Insurance; The participating dividend plan, a guaranteed
cost (including dividend), or a quote received for a 3 year participating
dividend plan dependent upon three fu11 years of loss determining the
dividend. He said that if he was asked his opinion, he would recommend the
participating p1an, because he felt that over a period of time it would be
to the City's advantage. Following are the results of the Workmen's
Compensation bids:
"PARTICIPATING" bIVIDEND PLAN 35% LEVEL
INSURANCE COMPANY AGENT NET COST MINIMUM
Agricultural Ins. Co. Carr-Preus Company $10,123.00 $ 8,449.00
Argoaaut Insurance Co. Carr-Preus Company 10,551.00 9,735.00
Argonaut Insurance Co. Anderson 10,551.00 9,735.00
Hartford Insurance Co. Anderson 10,614.00 10,388.00
Western Casualty Co. Hadrath Katz 10,614.00 8,845,00
The maximum under any of the above -$11,793.00
GUARANTEED COST (Including Dividend)
INSIIRANCE COMPANY AGENT
Mutual Creamery
BID
Rice Creek $10,852.00
THREE YEAR "PARTICIPATING" DIVIDEND PLAN
INSURANCE PLAN AGENT
Associated Insurance Co. Anderson Agency
BID
$27,560 3 Yr. ($9,190 1 Yr )
Mr. Douglas said that the apparent low biddet is the Agricultural Insurance
Company.
Mr. Douglas reviewed the two bids received on the "Package" insurance bids,
which are as follows:
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SPECIAL COUNCIL MEETING, DECEMBER 28, 1967
"PACKAGE"INSURANCE BIDS:
1. Western Casualty - Hadtrath Katz
Covers: A11 property - buildings
Boilers-air tanks
Business Income - Liquor
Equipment
Auto physical damage
Auto liability
$28,866.00
& contents
Stores
General Liability incY liquor liability
Crime
2. Hartford Company - Anderson Agency •�-� $30,700 00
Coverage same as above
-�* Breakdown - Hartford $21,934 00
Reliance 1,854 00
Aetna 1,882 00
Chicago 5,030,00 (Liquor)
$30,700.00
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Mayor Kirkham asked if these bids were on a one year basis or a three year
basis. Mr pouglas said they were bid on a one year basis, and asked the
representative of the Western Casualty Company if they would write the policy
on a three year basis, and he said they would Councilman Harris said that
if the Council wishes to follow the pattexn they have set, informal quotes
should be allowed on an annual basis
MOTION by Councilman Harris to concux with the recommendation of the
Insurance Consultant and award the "Package° Insurance bid to Western
Casualty Company and that the comprehensive coverage and liquor liability
be written on an annual basis over a three year period, but noting for the
City's records that the City will accept any informal bids on the same
coverage next time at this time. Seconded by Councilman Lieb1. Upon a
voice vote, there being no nays, Mayor Kirkham declared the motion carried.
There was a discussion of the Loss ratio percentage regarding the Workmen's
Compensation Insurance, and Mr. Douglas explained more fu11y the three year
plan which has the disadvantage that if the City had one bad year out of the
three, it could conceivably be that there would be no dividend for the three
year period. Councilman Liebl asked the City Attorney if the Council could
bind the City for three years, The City Attorney said that it was possible
that a future Council could cancel the insurance, but they would take into
consideration, that it would be on a short rate
MOTION by Councilman Harris to concur with the recommendation of the Tnsurance
Consultant and award the Workmen's Compensat�on Insurance to Carr-Preus Company,
agent of the Agricultural Insurance Company for a maximum dollar volume of
$11,793. Seconded by Councilman Lieb1. Upon a voice vote, there being no
nays, Mayor Kirkham declared the motion carried.
Mr Richard Schillinger, representing the Anderson Agency, pointed out that
regardless of the loss ratios that the Hartford Company has �ustained uader
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SPECIAL MEETING, DECEMBER 28, 1967
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their contract wrth the City, and that it has not been a profrt making
thing, they have not cancelled the policy, but continued to carry it, and
he assumed this will be the situation wrth the new carrier. Mr. Schillinger
said that he, for himself and for his agency, would like to thank four people
who have worked with him and the agency directly Mr. Brunsell, the Finance
Director, Mr. McGuire, the Liquor Store Manage�r, Shirley Haapala, Finance
Secretary, and Gwen Samuelson, City Manager's Secretary. He gave them a
vote of thanks and said that they have done an excellent �ob. Mayor Kirkham
said that the Council's thanks went along �aith his. Councilman Liebl said
that Mr. Schillinger has been the representative of the insurance agency
of the City for two years, and he said it had been pointed out to him that
they had not made any profit, and he felt that Mr. Schillinger had been at
a disadvantage in this bidding.
The Council asked Mr. Lee Douglas to review the insurance policies to make
sure they are set up according to the specifications, and Mr. Nage1 said
that if he could get a binder, he could get it to the Finance DLrector the
next day.
RESOLUTION �k208-1967 - A RESOLUTION TRANSFERRING OF CERTAIN FIINDS;
The Finance Director stated that this resolution reflects changes in the budget
allotment. He said that some items totaling $13,765,10 have already been
charged to the 1967 budget which were not originally in the budget, and
there are some items that are to be included in the 1967 budget, if possible,
which were not originally budgeted, He said that the resolution wi11
accomplish changes in the budget to take care of these items and other
various expenses that have been incurred also. Councilman Harris said
that he did not want to see such things as the flagpole and engraved plate
finalized until it is finished satisfactorily The CityEngineer said that
the transfer has been made from the liquor fund to cover this, and the
fiaal payment has not been made
Councilman Harris said he thought the Council should go through the list of
items to be included in the 1967 budget, as they wi11 have to answer for the
items, and the Administration should be given definite directions.
The Council dLSCUSSed the chairs to be purchased for the Council Room, They
looked at two different models and discussed the color.
NIOTION by Councilman Harris to authorize the City Manager to purchase 100
chairs for the Council Chambers at the price of $13.50 each. Seconded by
Councilman Lieb1. Upon a voice vote, there being no nays, Mayor Kirkham
declared the motion carried.
Councilman Harris asked about the 2 microphones listed for the Council
Chambers. The City Manager said that these were for the two side tabLes.
Councilman Harris said he had heard complaints about the speaker system,
and questioned whether another speaker �n the back of the hall should be
included.
There was a discussio❑ about the $450 typewriter listed for the Clerk of
Court The typewriter is to be marked as belonging to the City of Fr�.dley.
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SPECIAL MEETING, DECEMBER 28, 1967
� Councilman Harris said he felt the $100 figure listed for drapes in the
Manager's Office should be increased to ahout $500, and it should be
panelled or whatever was necessary to make it look like a credit to the
City Manager. He said he thought panelling wouLd cost about $300 more
than the drapes and would be money we11 spent. Mayor Izirkham felt the
$300 was a more realistic figure� and the Council decided to amend the
$100 figure by $300 and make the total figure $400.
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The City Manager said that the Cxty has received one quote on the basement
door, and expects to receive two more quotes, and the Fire Department
is still getting quotes on remodeling the offices in the o1d City Ha11
MOTION by Councilman Harsis to adopt Resolution ��208-1967 appxoving
purchases as outlined and amended. Seconded by Councilman Lieb1 Upon
a voice vote, theie being no nays, Mayor Kirkham declared Yhe motion
carried.
P.ESOLUTION ik209-1967 DESIGIVATING AUTHORIZED SIGNATURES FOR THE CITY OF
FRIDLEY BANK DEPOSIT:
The Finance Director explained that this resolution authorizes him and
Mr. Ankrum to sign checks aad drafts with the City bank.
MOTION by Councilman Harris to adopt Resolutian �ik209-1967 Seconded 6y
Councilman Lieb1. Upo❑ a voice vote, there being no nays, Mayor Izirkham
� declared the motion carried.
SEWER CONNECTION CHARGES - FRONTIER CLUB AND HULLABAL00 CLUB:
The City Englneer said that the building the Prontier Club is located in
has three or four businesses in it, and one section is being modeled into
a restaurant. He said that the total building originally had 11 RECS
assigned to it, and with the changes to the building, it would be assigned
16 RECS. The City Engineer said he feels the Frontier Clu6 should be
charged for the 5 additional RECS. He said that this was being brought
before the Council because it Zs a special case, and may set a precedent.
The Citq Attorney said that the policy of the District wi11 be that when
there is a decrease, they wi11 not decrease the RECS, but wi11 decrease
the quarterly usage charge. He said he felt the City �ai11 have to follow
the same policy as the District Does.
MOTION by CounciLman Liebl to concur with the recommendation of the
Administration, and charge the owners of the Frontier Club for the additional
5 REC charges. Seconded by Councilman Harris. Upon a voice vote, there
being no nays, Mayor Kirkham decLared the motion carried
The City Engineer said that the Hullabaloo Club is another question to be
decided. He said that the Shorewood Shopping Center had hooked onto the
District before March, and an assignment had not been figured for this area,
� which has remained uaoccupied prior to the Hullabaloo CLub going into the
shoppLng center. NSSSD has said that the REC assLgament wi11 be 4 RECs, and
the question is whether the Hullabaloo Club should pay the charges, half the
charges, or 1et it go. The Council discussed this and decided to consider
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SPECIAL MEETILVG, DECEMBER 28, 1967
the applicant as havxng paid one REC and charge the Hullabaloo C1ub for
the three additional RECs. The Council agreed that this will follow the
same policy as the Frontier Club.
The City Engineer said that the permit for the Frontier Club has been
issued with the stipulation they wi11 improve their parkLng, and they
are planning to landscape and fix up the appearance,
APPROVING OF ASSIGNNiENT OF JOINT VENTURE INTEREST - SW&SSik83 CONTRACT:
The City Engineer said that this contract had been bid as a �oint venture
and one partner, Don Anderson Excavating has signed over their interest
in the contract to Suburban Sewer & Water, Inc. The City Engineer said
that according to the contract the Council is required to approve this.
He said that he feels this wi11 be a better arrangement as they will be
able to work with one contractor
The City Attorney recommended that they agree to accept the assignment
of the �oint venture interest sub�ect to the remaining member of the
�oint venture agreeing to all terms of the contract as bid, and sub�ect
to his being able to provide an adequate surety bond.
MOTION by Councilman Harris to concur with the recommendation of the
Administration and accept the assignment of the �oint venture interest
to Suburban Sewer & Water Inc., sub�ect to Suburban Sewer &�ater, Inc.
agreeing to all terms of the contract as bid, and sub�ect to the bonding
company furnishing an adequate surety bond to the City. Seconded by
Councilman Liebl. Upon a voice vote, there being no nays, Mayor Kirkham
declared the motion carried.
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LICENSES;
The City Engineer said that the contractor working on the Hullabaloo Clab
had not known that he needed a license, but was now requesting one.
MOTION by Councilman Liebl to approve the following Cantractor's Lxcense;
Douglas Constructioa Company
7508 Thomas Avenue South By: Douglas W. Corn NEW
Richfieid, Minnesota
The motion was seconded by Councilman Harris, Upon a voice vote, there being
no nays, Mayor IZirkham declared the mot�,on carried.
ORDINANGE REGARDING TRAPPING AND SHOOTING GAME:
Councilman Liebl asked about the Ordinance that Mr. Howard Grivna, 261
Rice Creek Terrace, had requested the Council to consider regarding trapping
and shooting game in the City. The City Attorney saxd that he will have a
proposed ordinance ready by the next regular meeting, or by the end of the
month.
AD JOiTRNMENT :
MOTION by Councilman Harris to ad�mrn the meeting. Seconded by Councilman
Liebl. Upon a voice vote, there being no nays, Mayor Kirkham declared the
Special Council Meeting of Dece�aber 28, 1967 ad�ourned at 9:07 P.M.
Respectfully submitted,
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Mary Lu Strom
Secretary to the Council
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�- ,7ack 0. Kirkham
MAYOR
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