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<br />36 <br /> <br />TUESDAY, JULY 22, 1986 <br /> <br />By memorandum report dated July 15, 1986, City Manager Brown informed Council <br /> <br />that the recently-adopted 1986-87 City Budget provides a total of $248,964.00 <br /> <br /> <br />for various categories of insurance premiums (excluding Wor.kers' Compensation <br /> <br />Insurance purchased through the VML "pool") and that the total premium costs <br /> <br />for 1986-87, excluding that for Workers' Compensation and for General <br /> <br />Liability) are $128,656.00, thus leaving available the sum of $120,308.00 which <br /> <br /> <br />could be applied to the 1986-87 premium cost for General Liability insurance, <br /> <br />should it become available to the City at a reasonable cost, or be set aside in <br /> <br />a General Liability Reserve Account to cover approved claims made against the <br /> <br />City, to which Reserve Account (if established) City Manager Brown recommended <br /> <br />be added at least $200,000.00 hereafter per year (in lieu of budgeting for <br /> <br /> <br />premium costs for such coverage each year) until such point as an amount <br /> <br /> <br />determined to be adequate has been set aside or maintained. Upon motion, duly <br /> <br />seconded and unanimously carried, Council authorized the establishing of said <br /> <br /> <br />General Liability (Insurance) Reserve Account and the setting aside for 1986-87 <br /> <br /> <br />of $120,308.00 therefor; however, as suggested by Councilman McClain (who <br /> <br /> <br />described the recommended set-aside alternative as an intelligent approach <br /> <br />under present circumstances), Council agreed to hold in abeyance any decision <br /> <br />regarding the adding to the Reserve Account beyond the amount authorized and/or <br /> <br />in the future, which initial amount, Council was assured, will be invested to <br /> <br />the best advantage for the City. Meanwhile, Mayor Oakes indicated some <br /> <br />concerns regarding general liability coverage (and its estimated cost to the <br /> <br /> <br />City) which might be available through a Virginia Municipal League "pooling" <br /> <br />arrangement, about which Mayor Oakes asked for additional information; and, <br /> <br />Councilman Cole urged Council to give its whole-hearted support to this <br /> <br />self-insurance concept. <br />