HomeMy WebLinkAboutRes2003-055
I
I
I
Sponsored by: Erchinger
CITY OF SEWARD, ALASKA
RESOLUTION 2003- 55
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROPRIATING $10,000 FROM THE GENERAL FUND
FUND BALANCE DESIGNATED FOR INSURANCE RESERVES TO THE
STREET DEPARTMENT TO FUND THE INSURANCE DEDUCTIBLE
ON A CLAIM
WHEREAS, a claim was filed with the City of Seward on June 14,2002 concerning an
incident where a visitor to Seward on July 4, 2000 suffered a serious orthopedic injury
(compound fracture right ankle) when the visitor stepped into a hole in a culvert at the side of the
roadway near the comer of Madison Street and Ballaine Boulevard; and
WHEREAS, the claim was tendered to the Alaska Municipal League Joint Insurance
Association (AML/JIA) Claims Department; and
WHEREAS, the AML/JIA has investigated the incident and has settled the claim with
the claimant under the City's liability coverage in the amount of $17,000; and
WHEREAS, the City of Seward's liability coverage has a $10,000 deductible; and
WHEREAS, the City established an insurance reserve as part of the General Fund fund
balance to be used to pay large insurance deductibles such as this claim; and
WHEREAS, Council approval is required to appropriate the funds from the insurance
reserve for this expenditure.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. Funds in the amount of$IO,OOO.OO be appropriated from the General Fund
fund balance designated for insurance reserves, account no. 101-0000-3040 to the Street
Department General Operations, Miscellaneous Expense, account no.101-131 0-5790 to fund the
insurance deductible on a claim.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council ofthe City of Seward, Alaska, this 2ih
day of May, 2003.
THE CITY OF SEWARD, ALASKA
CITY OF SEWARD, ALASKA
RESOLUTION NO. 2003- 55
~~~
StuClark,~ayor
AYES:
NOES:
ABSENT:
ABSTAIN:
Branson, Orr, Valdatta, Dunham, Shafer, Amberg, Clark
None
None
None
ATTEST:
",U"II'",
~...." Of SE~"'"
~ t\--l ........ ~"
~ c}~......~ORA.~.... ~ ~
... ~..-=-
~ : ....... '" ~ ..
= i AL ~ :
.. .: BE : · :
= ~ : .
'* \ --- i ~
~ ~....~..._ . ~..\'It:~. I
:.::~ 1 '\"..- ~
'\<ISt..-. ,~......l..:' b.: ~#
""~ (:- OF p..v ~..oJ>'"
"lIn.,,"'"
(City Seal)
COUNCIL AGENDA STATEMENT
Meeting Date: May 27, 2003
Through: Kristin Erchinger, Acting City Manager
From: Rick Gifford, Director of Administrative
Services
Agenda Item: Insurance Deductible on Claim
BACKGROUND & JUSTIFICATION:
A claim was filed with the City of Seward on June 14, 2002 concerning an incident where a visitor to
Seward on July 4, 2000 suffered a serious orthopaedic injury (compound fracture right ankle) when
the visitor stepped into a hole in a culvert at the side of the roadway near the corner of Madison
Street and Ballaine Boulevard. The claim was tendered to the Alaska Municipal League Joint
Insurance Association (AML/JIA) Claims Department. The AML/JIA has investigated the incident
and has settled the claim with the claimant under the City’s liability coverage in the amount of
$17,000.
The City has a $10,000 deductible on it’s liability coverage with the AML/JIA. The City established
an insurance reserve as part of the General Fund fund balance to be used to pay large insurance
deductibles such as this claim. Council approval is required to appropriate the funds from the
insurance reserve for this expenditure.
CONSISTENCY CHECKLIST: Yes No
1. Comprehensive Plan
2. Strategic Plan
3. Other
4. Not applicable X
FISCAL NOTE:
As of December 31, 2002 the General Fund fund balance designated for insurance reserves has a
balance of $529,418, sufficient to pay AML/JIA the deductible for the above claim.
Approved by Finance Department:
COUNCIL AGENDA STATEMENT
Meeting Date: May 27, 2003
Insurance Deductible
Page 2
RECOMMENDATION:
Council approve Resolution 2003- appropriating $10,000 from the General Fund fund
balance designated for insurance reserves to the Street Department General Operations to fund the
insurance deductible on a claim.