2002-09-24
ACF,NDA
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C ~~~~
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
SEPTEMBER 24, 2002
6:30 P.M.
1. OPEN MEETING
2. ACTION APPROVING AGENDA, WITH ANY AMENDMENTS
3. ACTION APPROVING MINUTES: SEPT 9, 2002 REGULAR MTG
4. VIP REPORT ON INDIAN KNOLL, WITH ANY NECESSARY ACTION
5. CARL BENNETSEN PRESENTING THE COVERAGE PROPOSAL FOR
INSURANCE FOR THE HRA THROUGH THE LEAGUE OF MINNESOTA
. CITIES .
A. ACTION APPROVING THE COVERAGE AND PREMIUM
B. ACTION APPROVING A RESOLUTION RELATING TO
PARTICIPATION IN THE LEAGUE OF INSURANCE TRUST
AND WAIVING STATUTORY TORT LIABILIBY LIMITS
6. ADJOURN
2
3-5
6-14
IS
•
CITY OF MOUND
• HOUSING AND REDEVELOPMENT AUTHORITY
SEPTEMBER 9, 2002
The Housing and Redevelopment Authority of and for the City of Mound, Minnesota,
met in the regular session on Tuesday, September 9, 2002, at 7:25 p.m. in the council
chambers. of City Hall.
Members Present: Chairperson Pat Meisel, Commisisoners Bob Brown, Mark Hanus,
Dave Osmek and Peter Meyer.
Others Present: Acting City Attorney Paula Callies, Community Development Director
Sarah Smith, Finance Director Gino Businaro and Executive Director Kandis Hanson.
1. OPEN MEETING
Chairperson Meisel called the meeting to order at 7:25 pm
2. APPROVE AGENDA
MOTION by Brown, seconded Hanus to approve the agenda as presented. All voted in
favor. Motion carried.
3. APPROVE MINUTES
• MOTION by Hanus, seconded by Brown, to approve the minutes of the August 27, 2002
regular meeting. All voted in favor. Motion carried.
4. ACTION ON RESOLUTION ESTABLISHING THE TAX LEVY FOR THE MOUND
HOUSING AND REDEVELOPMENT AUTHORITY FOR THE YEAR 2003
MOTION by Hanus, seconded by Brown, to adopt the following resolution as presented,
All voted in favor. Motion carried.
RESOLUTION NO. 02-10H: RESOLUTION ESTABLISHING THE TAX LEVY
FOR THE MOUND HOUSING AND REDEVELOPMMENT AUTHORITY FOR
THE YEAR 2003.
5. ADJOURN
MOTION by Hanus, seconded by Brown to adjourn at 7:27 p.m. All voted in favor.
Motion carried.
Chairperson Pat Meisel
. Attest: Executive Director, Kandis Hanson
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. . ........__
SEP.19.2002 10~46AM VIP PROPERTIES N0.909 P.3/4
VIP Properties Report •
Tuesday, September 24, 2002
• September paid bills
• General update of operations
•
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VIP PROPERTIES
N0.909 P.2i4
• MOUND 1•iOUSI~IG AND REDEVELOPMENT AUTHORITY
INDIAN KNOLL MANOR
S®ptemberrtl2
# CHBCK N4 NBNDpIZML=RCHANT AMOUNT DB.SCRIPTION
1 4927 AT & T WIRELESS $ 44,70 SEP SERVICE
2 4928 ADAMS PEST $ 56,31 SERVICE CALL
3 4929 AD.'S MASTER PLUMBING $ 175,12 SERVICE CALL
4 493b ALL, INC $ 1,203.22 2 FRIDGE/1 RANGE
5 4931 B SYLVESTER $ 57.60 SEP CERTS
6 4932 BAREFOOT TURF $ 766.80 J~IUAUG LAWN CARE
7 4933 BFI $ 331.02 SEP SERVIGE
8 4934 C NABER $ 95.00 AUG SERVICE
9 4935 CIT(13USINESS $ 30.68 FINAL PAY/CLOSED
10 4936 CITY OF MOUND $ 903.57 7-8 TO 8-6
11 4937 CLOVER MAINTENANCE $ 1,287.x5 TURN 2 UNITS/COMM fZM
12 4938 CSI ROOFING $ 19,160.00 REROOF SEC 1 & 2
13 4939 CUMMINS NPOWER, LLC $ 213.50 GENERATOR CONTRACT
14 4940 i=LERTRO WATCHMAN $ 150.00 SEMI ANNUAL- AI.AFtM
15 4941 FRONTIER COMMUNICATIONS $ 166A6 MEUPINKY FINAL BILL
16 4942 HOU5ING AUTHORITY INS $ 1,339.00 LIABILITY INSURANCE
17 4943 IKON $ 131.34 CQPIER REPAIR
18 4944 105 $ 89,37 SEP LEASE
• 19
20 4945
4946 MOUND TRUE VALU1=
PODS $
$ 99,59
239,51 MISC SUPPLIES
ON SITE STORAGE
21 4947 REI-IANT ENERGY $ 1,357.96 AUGBUDGE'T CATCHUP
22 4948 STA SAFE $ 72.50 LOCK OPEN/REPAIR
23 4949 SICKI-BS, GARY $ 40.00 DRAINAGE MAINTENANCE
24 4950 VIP PROPERTIES $ 1,650,00 AUG MGMT FEE
25 4951 VIP PROPERTIES $ 3,053.05 PAYROLL/MAINT REIMB
26 4952 XCEL ENERGY 5 1,561.84 726 TO 8-26
34.284.19
•
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PROPERTIES
General Update of Operations
The contracted roof work performed by CSC Roofing on the sections
that needed to be replaced has been completed.
The residents with automobiles are being assigned parking spaces in
the parking lot and will be given parking sticl~ers.
r..rnit #I02, a 1 bedroom, which has been used for storage for over a
year has been cleaned .out and will be ready for occupancy by October
1 S.
Unit x#211, an effiiciency, anal unit #200, a 1 bedroom, will be
available for October 1 and both have rental applications pending
approval.
U
Effective in October, the on~-site m,a.intenance man vyill be occupying
the past managers 2 bedroom unit that was set aside for on~site
personnel
•
The front flouter and shrub beds on Commerce Street have been
dressed up with new mulch .for curb appeal.
pour residents from each floor will be forming comrnittees at the
building for starting a newsletter and an event calendar this fall.
N0.909 P.4i4
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•
COVERAGE PROPOSAL
FOR
MOUND HOUSING & REDEVELOPMENT AUTHORITY
Prepared by:
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
145 University Ave. West
St. Paul, MN 55103
(651) 281-1200
C7
This proposal is based on
information given to us by:
Carl Bennetsen
A. J. Gallagher of MN, Inc.
Designated Agent of Record
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COVERAGES AVAILABLE FROM: •
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
Property
Additional Covered Loss or Damages
Water and Supplemental Flood Coverage
Crime
Bond
Equipment Breakdown
Municipal Liability
Medical Payments
Auto Liability
Automobile Physical Damage
Open Meeting Law Defense Cost Reimbursement
Excess Liability
Liquor Liability •
Petrofund Reimbursement
Transmission & Distribution line Coverage
CLAIMS SERVICES: League of Minnesota Cities Insurance Trust
This is a proposal only, it is not intended to bind, alter, nor fully describe the formal contract.
It is important to note also that we are not necessarily providing all the coverages requested or our
proposal may not comply with your specifications.
Page 2 of 6
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PROPERTY
•
Property Blanket Limit of Coverage Per Occurrence $ 2,665,000.
This blanket limit is subject to the sublimits as described
in the Covenant.
Additional Covered Loss or Damages
1. Asbestos Clean up, Abatement and Removal $ 250,000 Per Location
2. Loss of Revenue, Extra Expense and Expediting Expense $ 5,000,000 Per Occurrence
3. Debris Removal $ 1,000,000 Per Occurrence
4. Leasehold Interest $ 500,000 Per Location
5. Pollutant Cleanup and Removal $ 10,000 Per Location
6. Errors $ 500,000 Per Occurrence
7. Rental Reimbursement $ 25,000 Annual Aggregate
8. Arson Reward $ 5,000 Per Fire Loss
9. Accounts Receivable $ 500,000 Per Location
10. Valuable Papers and Records $ 500,000 Per Location
11. Year 2000 Extra Expense $ 5,000 Annual Aggregate
12. Extraordinary Expense $ 100,000 Per Location
Water and Supplemental Flood Coverage $ 500,000 Per Occurrence/
500,000 Annual Aggregate
CRIME
Theft, disappearance, and destruction-inside and outside $ 100,000 Per Occurrence
the premises and forgery or alteration.
BOND
No bond coverage contemplated in this quote.
EQUIPMENT BREAKDOWN COVERAGE
See separate proposal form for coverages and limits of coverage.
ALL THE ABOVE QUOTED COVERAGES ARE SUBJECT TO A $500. DEDUCTIBLE PER OCCURRENCE.
I • Page 3 of 6
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COMPREHENSIVE MUNICIPAL LIABILITY COVERAGES -CLAIMS
MADE BASIS •
$1,000,000 Single Limit
Deductible: $500.
Retro Date: 10/01/02 for BI, PD, & PI
02/01/83 for other than BI, PD, & PI
Premises -Operations.
Independent Contractors.
Products-Completed Operations.
Fire Legal Liability - $50,000 limit per occurrence.
Premises Medical Payments - $1,000 per person/$10,000 aggregate occurrence.
Watercraft -Less than 26 feet in length.
Malpractice Coverage for City Employees-excluding Architects, Doctors of
Medicine, Dentists, Nurses and Pharmacists.
Personal Injury Liability-false arrest, advertising, wrongful entry and assault or battery.
Law Enforcement.
Employees, Officials and Volunteers are covered.
Fellow Employee Coverage.
Extended Reporting Period Guaranteed as to availability and cost.
No aggregate limit except for Products -Completed Operations, Medical Payments, Limited
Pollution Liability, Lead or Asbestos Claim Limit, Land Use or Development Litigation.
Coverage for negligent acts, errors, omissions and civil rights violations.
Broadened definitions of damages.
PARTIAL LIST OF EXCLUSIONS
Airport and Aircraft Liability
Hospital and Nursing Home Liability
Liquor Legal Liability
Absolute Pollution
Fireworks
Bursting or Failure of Dams or Dikes
Carnivals
Rodeos
Racing
Unless Named: Joint Powers, Housing Authorities and Gas or Electric Utilities
Page 4 of 6
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AUTOMOBILE
•
Deductible: $500.
Liability for Hired and Non-owned Automobiles: $1,000,000.
•
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Page 5 of 6
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PREMIUM SUMMARY
PROPERTY Premium
Property $ 3,111.
Additional Covered Loss or Damages $ included
Water and Supplemental Flood $ included
Crime $ included
Bond $ Not covered
Equipment Breakdown $ 594.
Municipal Liability $ 3,808.
Medical Payments $ included
Automobile Liability $ 93.
Automobile Physical Damage $ Not covered
Open Meeting Law $ Not covered
Liquor Liability $ Not covered
Excess Liability $ Not covered
Petrofund Reimbursement $ Not covered
TOTAL $ 7,606.
This quote is valid only if you are a member in good standing with the League of Minnesota Cities.
QUOTATION VALID FOR 30 DAYS
PRESENTED BY THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST:
Authorized Representative
f~f~---~ ~-.
Date
e
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Page 6 of 6 • I
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LEAGUE OF MINNESOTA CITIES
Equipment Breakdown Coverage Proposal for:
MOUND HOUSING & REDEVELOPMENT AUTHORITY
This is a proposal only. Coverage is not bound until you receive a confirmation in writing
from LMCIT. Coverages) quoted are:
I. Comprehensive (Including Production Machines)
Limits: $ 2,665,000. PerAccident-Property Damage
$ 5,000,000 Per Accident-Loss of Revenue and Extra Expense
Sublimits: $ 100,000 Service Lnterruption
$ 100,000 Perishable Goods
$ 100,000 Data Restoration
$ 100,000 Demolition and ICC
$ 100, 000 Expediting Expenses
$ 100, 000 Pollutants
$ 100,000 CFC Refrigerants
$ 50,000 Ice Rink Buried Piping
Deductible $ 500. Any one Accident
II. Limitation of Coverage for Specified Locations or Objects
• Location Occupancy
III. Excluded Equipment
Excluded Equipment Location Occupancy
Annual Premium: $594.
Date: ~%/ C>'~ Underwriter: > .-a-~..-~~~-~--r'J
•
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Arthur ). Gallagher & Co. of Minnesota, Inc. -- --- •
September 16, 2002
Gino Businaro
Housing and Redevelopment Authority of Mound
5341 Maywood Road
Mound, MN 55364
RE: HRA/ Indian Knoll Manor Insurance Renewal -Period 10-1-OZ to 10-1-03
Dear Gino:
The League of Minnesota Cities Insurance Trust (LMCIT) is offering a very attractive
property & casualty coverage proposal. There are several differences in coverage
between this LMICT program and your current Housing Association Insurance Group
coverage, including:
Property Coverage -Building, Contents, Loss of Rents/Egtra Expense:
• Deductibles -The HAIG/Travelers coverage has a $2,500 deductible, plus a
Windstorm and Hail deductible of 5% of insured values ($2,366,000 X 5% _
$118,300). The LMCIT program has a $500 deductible. •
• Terrorism -The HAIG coverage has an exclusion for any Acts of Terrorism,
which exceeds $25,000,000, subject to ISO Form II, 09 40 O1 02. LMCIT will
not pay more than $25,000,000 for losses, etc. per policy terms.
• Loss of Rents/Extra Expense -The HAIG policy has no Loss of Rents
coverage, and only $10,000 Extra Expense. The LMCIT has $5,000,000 per
occurrence Loss of Revenue, Extra Expense and Expediting Expense.
• Ordinance or Law -The HAIG program has a separate $250,000 limit. The
LMCIT coverage includes this coverage in the property limit.
• Loss Key Consequential Loss -The HAIG coverage is $5,000 per occurrence
and $15,000 in total for all occurrences in any one policy year. The LMCIT
does not offer this coverage.
• Perils Not Covered -The HAIG/Traveler policy for 10/1/99-00 excludes Flood
and Earthquake, with no Boiler and Machinery coverage. The LMCIT
coverage does not exclude Earthquake, and provides $500,000 Supplemental
Flood and Water Damage coverage for properties outside of a FEMA Flood
Zone. The LMCIT is offering Equipment Breakdown (boiler & machinery)
for $594 annual premium.
• Limit of Coverage -The LMCIT limit is $2,665,000 ($80 per sq. ft.) for
"blanket" building and personal property (HRA contents). HAIG no longer
provides "blanket" coverage, and appears to be proposing expiring limits of
$2,366,000 (building $2,322,000 and contents $44,000).
•
7825 Washington Avenue South #300
Minneapolis, MN 55439-2433
952.944.8885
Fax 952.944.9795
Toll Free 800.373.2457
vvww.ajg.com -13 -.
Municipal/ General Liability Coverage:
• • Deductible -The HAIG Liability coverage does not appear to have a
deductible. There is a $500 per occurrence deductible on the LMCIT
coverage.
• Public Official's Errors & Omissions -The HRA Board is currently an
"additional covered party" on the City's LMCIT coverage. The LMCIT has
included this coverage in the HRA proposal for $350 premium. Separate E&O
coverage would be advisable since the City and the HRA are separate public
entities.
• Occurrence versus Claims Made -The HAIG General Liability is an
"occurrence" form, which responds to any claims that occur during the
coverage period, regardless of when the claim is reported. The LMCIT
coverage is "claims made", with the coverage applying to any claim
reported during the current coverage term, as long as the "occurrence"
did not take place prior to the first effective date of the "claims made"
coverage. Changing back from "claims made" Ito "occurrence" form of
coverage requires the purchase of "tail" or "~~ acts" coverage at an
additional premium.
This analysis is based on HAIG coverage information supplied by the City/HRA of
Mound. Please let me know. if you have any questions.
Sincerely,
•
Carl A. Bennetsen
•
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. ., .
CITY OF MOUND •
HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION N0.02-
RESOLUTION RELATING TO PARTICIPATION IN THE LEAGUE OF MINNESOTA
CITIES INSURANCE TRUST AND WAIVING STATUTORY TORT LIABILITY LIMITS
~~r.~~~
WHEREAS, the Cify- #e# annd is a Minnesota political subdivision desiring to self-
insure its property and liability risks through participation in a joint powers arrangement
known as the League of Minnesota Cities Insurance Trust (LMCTT); and
WHEREAS, Minnesota Statute Section 471.981 permits a city to extend the coverage of
its self insurance to afford protection in excess of any limitations on liability established
by law; and
WHEREAS, Minnesota Statute Section 471.981 provides that unless expressly
provided in the ordinance or resolution extending the coverage, the statutory limitations
on liability shall not be deemed to have been waived.
NOW, THEREFORE BE IT RESOLVED by the Housing and Redevelopment Authority
of and for the City of Mound, that the Cft°y`t~ereby accepts liability coverage lim ~ of
$1,000,000, from the League of Minnesota Cities Insurance Trust and the ~i~q`~AIVES
the monetary limits of tort liability established by Minnesota Statutes Section 466.04, to
the extent of the Imits of the liability coverage obtained from LMCTT. •
Adopted this 24~' day of September, 2002.
Chair Pat Meisel
Attest: Executive Director Kandis Hanson
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