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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. _ 2 _ y 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 - 3 -