01-0819R

RESOLUTION ALLOWING DULUTH STEAM COOPERATIVE TO PARTICIPATE IN THE CITY'S SELF INSURANCE POOL.

BY COUNCILOR ECKENBERG:

        BE IT RESOLVED, that Duluth steam cooperative is allowed to participate in the city's self insurance program under the conditions and to the limits set out in Public Document No. ___ on file with the city clerk, and the proper city officials are authorized to execute and implement Public Document No. ___ and other documents that may become necessary to implement the agreement contained therein, but under no circumstance shall the city's obligation thereunder exceed $7,500,000.



STATEMENT OF PURPOSE:  The city owns the building, contents, and distribution system of Duluth steam cooperative. These facilities have been insured against casualty at the expense of the cooperative. For 2002, the rates have increased over 250 percent. This created a budget problem. The city, as it has done in the past, will agree to accept the risk in its self insurance program until rates come down. The city has done this for Spirit Mountain and the Duluth airport authority in the past. Only property loss is involved, not liability, vehicles, or worker's compensation. The rate paid is 1.2 times the rate paid in 2001.