HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 07/03/1986 ,t
CITY OF KENT
ECONOMIC DEVELOPMENT CORPORATION
July 3, 1986
The regular meeting of the Kent Economic Development Corporation was called to
order at 7:35 a.m. by Chairman of the Board, Tim Leahy.
Present: BOARD MEMBERS: Tim Leahy, Chairman
Councilman Tom Bailey
Councilman Berne Biteman
Councilman Steve Dowell
OFFICERS: Marie Jensen, Secretary of the Board
CITY OFFICIALS: Brent McFall , City Administrator
Mike Webby, Personnel Director
MINUTES
Bailey moved to approve the minutes of the regular meeting of April 3, 1986
and the special meeting of April 21 , 1986. Biteman seconded and the motion
carried.
LIABILITY COVERAGE
Webby noted that when it had been determined that this corporation had to be
insured separately from the City's insurance, a policy was issued in
April 1985 for $1 ,000,000 coverage against errors and omissions. The premium
was $750, and this policy covered the Board members. In March of this year,
Fred S. James, Inc. advised that similar coverage for 1986 could cost as much
as $5,000. He pointed out the original policy was extended for 2 months at a
cost of $620 and the carrier had now advised that they would not extend our
coverage. Recently, we were informed the premium for the same coverage would
be $20,000.
Webby noted the City Attorney had suggested the Board consider not purchasing
this policy and consider some alternatives such as passing the premium on to
the applicant and/or finding a way for the Insurance Authority, in which we
hold a membership, to try to extend coverage to this Board. Webby noted it
might be difficult to extend coverage"to those who were not Councilmembers or
employees of the City. He explained he had been able to have coverage
extended for past action of the corporation for $362 to cover a three-year
• period and he had sent a check for that amount. This would not,
however, cover any future action of the corporation.
Upon Biteman's suggestion, Webby noted he would seek information for the next
meeting as to what other Economic Development Corporations were doing about
insurance. He noted he could not find any record of any suits against any
Economic Development Corporations although there were some problems in
California. He pointed out the Fred James Agency representative had noted
they are having trouble placing this type of insurance for this as well other
cities. Webby noted the insurance is an occurrence policy, which means it
must be in effect at the time of the occurrence. However, claims made,
insurance must be in effect at the time the claim is submitted. Bailey
questioned whether the corporation would be liable until all bonds were
retired, even if the corporation had been dissolved. Webby suggested this
would have to be answered by DiJulio. Bailey questioned whether it would be
proper for the City to assume the insurance if the Corporation ceased to exist
in its present form and was used only for practical development purposes.
Webby suggested this might be proper if the Board consisted entirely of City
Councilmembers, with no outside members.
It was clarified for McFall , that members of existing Boards and Commissions
were now covered by the City's insurance. Bailey noted that this alternative
should be examined. Webby pointed out we are currently covered and we have
time to consider all of the alternatives.
McFall suggested applicants could be required to pay the premiums for
insurance along with the application fee. Webby noted this would require $750
for each issue. Bailey noted the banks could be told that the $750 is part of
the cost of issuing the bonds and the bank could decide how they would handle
it. Biteman suggested Webby check with the State to find out if any Economic
Development Corporations had had any law suits. Webby noted there had been
none to his knowledge. It was determined for Dowell , that the insurance
provided coverage for the corporation .and any of the individuals who might be
named. Webby pointed out the Economic Development Corporation is a separate
corporation and not a municipal corporation.
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COMMUNITY PROFILE FUNDING
No one was in attendance to provide information regarding this subject, but
Bailey noted that funds were requested for reprinting the Community Profile
brochure put out by the Planning Department. Upon his question, the secretary
noted that the corporation had funded $1 ,000 for printing for the 1985 B & I
Show. Bailey moved the Chair be authorized to expend up to $1 ,500 for
reprinting the Community Profile. Biteman seconded and the motion carried.
There was no further business and the meeting adjourned at 8:07 a.m.
(After the meeting, it was determined that the $1 ,000 funded for the 1985 B &
I show was not for the Community Profile brochure, but was for the Development
brochure promulgated by the Building Department. The Planning Department
advised the secretary that the EDC had not funded the printing of the
Community Profile brochures in the past and that they are now asking for such
funding in the amount of $2,500. It was determined that this matter would be
considered at the next meeting of the Board. )
MARIE JENSEN--'
SECRETARY OF THE BOARD
0024C-01C
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