BY COUNCILOR STOVER:
RESOLVED, that the proper city officials are authorized to execute a contract, substantially the same as that on file with the city clerk as Public Document No. ___________, between the city and Lexington Insurance company, providing for joint effort and cost sharing in prosecuting claims for indemnity for the loss of Peterson Arena.
STATEMENT OF PURPOSE: Lexington Insurance insured Peterson Arena against fire loss. The arena burned. Lexington paid the city the policy limits. That amount was less than the amount needed to indemnify the city for all of its loss. The city has made a claim against the insurers of the parties that we believe caused the fire. Lexington has done the same thing. Pursuit of these claims could require the hiring of experts and incurring other expenses. This contract provides that the city and Lexington will share expense. It should cut the city’s cost by 50 percent.