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.-. APACHE JUNCTION CITY COUNCIL WORK SESSION
City Council Chambers
City Hall Complex
1001 N. Idaho Road, Apache Junction, Arizona
Monday, October 6, 1986, 7:00 p.m.
Tuesday, October 7, 1986, 6.00 p.m. (if necessary)
AGENDA
1 . Call to Order
2. Roll Call
3. Discussion of agenda items for regular meeting of October 7, 1986
4. Discussion on upgrade for city computer system (Finance)
5. Discussion on sales tax collection program and delinquent tax
accounts (Councilman Eidson)
6. Discussion on election education program for students (Community Services)
7. Discussion on placement of numbers on buildings (Councilwoman Gardner)
...
8. Calendar reports
9. Requests for future agenda items
10. Reminder of scheduled Executive Session
11 . Adjournment
Copies of this agenda and information on any of the items listed above may
be obtained from the City Clerk's office, 1001 N. Idaho Road, Apache
Junction, AZ, Monday through Friday, 8:00 a.m. to 5:00 p.m. , excluding
holidays.
Dated this 2nd day of October, 1986.
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Kathleen Connelly, City Clerl
1001 NORTH IDAHO • APACHE JUNCTION ARIZONA 85220-0190 • TELEPHONE(602)982-8002
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October 2, 1986
MEMORANDUM TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ACTING CITY MANAGER .t'/
SUBJECT: LIABILITY INSURANCE
In response to the City Council 's request for additional information on
liability insurance requirements, the Apache Junction School District
as well as several other cities within the state were contacted regarding
their policies. Their responses are as follows:
APACHE JUNCTION SCHOOL DISTRICT: The school district itself is not self-
insured. Their own insurance coverage is provided by a private carrier.
In order to use school facilities, groups or individuals must provide a
$1 million proof of insurance naming the district as an additional insured.
CASA GRANDE: Their own insurance is provided by a private carrier, but
they are thinking of becoming self-insured at some time in the future.
We were not able to obtain any information on their requirements for use
of city facilities.
KINGMAN: They are self-insured up to the amount of $35,000. Any loss
greater than $35,000 is covered by a private carrier. Non-profit groups
do not need to provide liability coverage for use of city facilities.
Profit groups are required to carry insurance with a combined liability
of $300,000. The operator of their ballfield concession must provide
combined liability of $300,000.
FLAGSTAFF: Is partially self-insured up to $25,000 for each claim. A
private carrier is responsible for losses over the $25,000. They have
established a trust fund in order to finance the self-insurance. They
require $1 million proof of insurance for use of city recreational facil-
ities with the city named as an additional insured. They do not require
proof of insurance for the use of meeting rooms. The operator of their
concession leases must provide $1 million proof of insurance with the
city named as an additional insured.
COOLIDGE: Insurance is provided by a private carrier. Their ball fields
are not used for any function other than a city-sponsored event. Their
"adult center" is rented by the city to other senior groups, but no insur-
1001 NORTH IDAHO • APACHE JUNCTION,ARIZONA 85220-0190 • TELEPHONE(602)982-8002
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Liability Insurance Coverage Page 2
ance coverage is required. They do not operate any concession stands. Any
booths or stands operated during "Coolidge Days" must sign a form stating
that they have insurance, but no specific dollar amount is named.
.�. ELOY: Insurance is provided by a private carrier with a $1 million dollar
coverage. Their blanket policy covers the use of all city facilities.
They have policy riders for special events such as the July 4th Celebration
of $1 million additional , Eloy Grand Prix an additional $10 million, and
the Eloy airport an additional $3 million. They used to carry $10 million
in coverage, but have dropped to the $1 million with the above listed
riders for special events. All of these events, however, involve the city.
PEORIA: Self-insured up to $25,000 per event with a private carrier pro-
viding coverage over that amount. They only have one public facility
(community center) which is rented to outside groups such as the Lions
Club, Kiwanis, etc. , all of whom carry their own insurance. Any events
at which beer and wine is available must first obtain a special use permit
and security coverage by the city police. They occasionally rent the
facility for weddings for which they have no insurance requirement. Their
city clerk will be asking the council to add liability insurance require-
ments for use of city facilities in order to lower the risk and potential
loss for the city. Their only concession is operated by the Lions Club
who provides their own insurance. They have invited Apache Junction to
participate in the Risk Management Group recently formed by some of the
valley cities.
MESA: Self-insured up to $100,000 each loss, coverage provided by a private
carrier over that amount. The amount of liability is left up to the dis-
cretion of each department head, either $1 million, $500,000 or none.
This amount is to be based upon the dollar amount of any contractural
agreement. Their risk manager recommends that we do nothing less than
require an actual contractural agreement, require proof of insurance, and
a "hold harmless" clause for the city. For concession leases they require
all of the items listed above plus a products liability policy and a
liquor liability policy if applicable.
TEMPE: Self-insured up to $400,000, then a private carrier from $400,001
to $5 million. After the $5 million, they again become self-insured.
Any organization using their facilities must provide proof of coverage of
$1 million naming the city as additional insured. Some of these items
are negotiable and in some cases are decided on the circumstances. They
was no concrete information on their concession requirements.
FLORENCE: Self-insured for losses up to $5,000, then a private carrier
provides coverage up to $1 million. Anyone using city facilities must
provide $500,000 liability coverage naming the city as an additional
insured. Use of city ballfields must also sign a hold harmless agree-
ment. Their concession is leased to the Little League and their is no
insurance requirement.
Liability Insurance Coverage Page 3
SUPERIOR: All insurance coverage is provided by a private carrier. They
only use school district facilities for recreation purposes and they each
have a $1 million policy naming the other as additional insured.
As you can see, the requirements from other cities vary, usually depending
on their size and their ability to cover losses up to a greater dollar
amount. I would suggest that the council consider reducing the dollar
amounts for meeting rooms, rather than to eliminate the requirement
entirely. I do not recommend any reduction for use of the recreational
facilities, especially the swimming pool .
kmc
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