DISCLAIMER

 

06-0141R


RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH THE SPIRIT MOUNTAIN RECREATION AREA AUTHORITY REGARDING PARTICIPATION BY THE AUTHORITY IN THE CITY’S SELF INSURANCE FUND FOR A FIVE YEAR TERM ENDING DECEMBER 31, 2009.

BY COUNCILOR STAUBER:

     RESOLVED, that the proper city officials are hereby authorized to execute an agreement with the Spirit Mountain recreation area authority which allows the authority to participate in the city’s self insurance fund for a five-year term which shall be deemed to have become effective January 1, 2005, for purposes of liability, workers’ compensation and employee honesty bond coverage, which agreement shall be substantially in the form of Public Document No. __________, on file in the office of the city clerk. Actual claim costs incurred by the city for the authority’s general liability claims and workers’ compensation claims will be reimbursed to the city using a moving three year prorated average of actual claim costs, including its prorated share of the annual costs associated with the workers’ compensation special compensation fund, workers’ compensation reinsurance premium and employee honesty bond premium. In addition, the authority shall pay an annual administrative fee not to exceed $5,000. Payments received will be deposited in Self Insurance Fund 605-036-1658 and 610-036-1658.


STATEMENT OF PURPOSE:  This resolution approves an agreement with Spirit Mountain which sets forth the terms and conditions of its participation in the city’s self insurance fund for workers’ compensation, liability, and honesty bond coverage during a five year term commencing January 1, 2005. With respect to liability coverage (which does not include liquor liability), Spirit Mountain retains the responsibility for the first $50,000 of loss in any occurrence. Under the agreement, the authority will reimburse the city for actual claim costs incurred, including prorated costs relating to reinsurance and assessments. The authority will also reimburse the city for its prorated share of the employee honesty bond premium and an administrative fee not to exceed $5,000. The reimbursement for 2006 is calculated to be $81,958.