LOOKING AT CITY INSURANCE COSTS
AND REDUCING EXCESS LIABILITY COVERAGE
Council voted on June 26th to drop its excess liability insurance coverage from $5 million to $3 million.  The move will mean a savings of $3,000 in insur-ance premium. 
Administrator Steve Sarvi reported on June 12th that the city could save $7,000 in premium cost by reducing excess liability to $1 million.
"Every year the city insures, and we try to look at our coverage and be fully covered but cut costs if we can," said Steve.  "The quote for excess liability is going up every year and is very high.  We feel the chances that the city would ever be involved in a $5 million lawsuit is very limited.  We respectfully suggest lowering it to $3 million or $1 million."
He explained that anyone bringing a lawsuit against the city would have to show that the city was involved reckless-ly.  He said that because the City of Vic-toria does not have a municipal liquor operation or its own police department, chances for that amount of damages are very limited.
"Most cities our size without police or a liquor store don't have any excess liability coverage," said Steve.
Under normal insurance policy, the city is covered up to $1 million.  Excess liability of $1 million would raise the total to $2 million, for example.
Councilmember Terry Bishop said "it's a big enough issue" that someone from the Insurance Trust should be invited to come and talk to councilmembers about it.  On June 26th Mark Lenzen, agent for the League of Minnesota Insurance Trust, said he works with 23 cities, and one-fourth of them carry excess liability.
"Cities looking at excess liability are often developing or redeveloping," he said.  "Carrying $5 million isn't very common.  The cost of this has gone up 50% in the last year.  It's a balancing act."
Victoria Building Official Tom Gray asked if people sue the city according to the amount of insurance it carries.  Stated Mr. Lenzen,  "That's folklore.  The city has the ability to levy taxes to pay."
The price for $5 million excess liability insurance is $12,000.  The price for $3 million is $9,000.  The price for $1 million is $5,000.
As subsequently approved, the city's total premium for 2003-2004 with $1,000 deductible and the $3 million excess liability is approximately $78,000.

OTHER NEWS FROM JUNE
CONCESSIONS AT BOTH CITY PARKS
*Concessions at the Victoria Field House became available May 16th.  The following attendants were hired:  Ryan Soule, Kyla Kohagen, Jeffrey Zicarelli, Katie Knutson, Megan Richter, and Jaime Kammen.
*Tammy Abrahamson reported a Beginners' Tennis Clinic on July 28th, a Drop-In Daycare Survey, the Skate Park moving to its permanent location at Diethelm Park, and concessions at Lions Park.
*A portion of 79th Street was vacated in order for the five parcels to be com-bined into one for the Stieger Lake Con-dominiums.
*Council amended city ordinance to allow larger accessory structures than 400 square feet, while stipulating that such a building cannot consume more than 10% of the buildable rear yard space.  Also, the existing driveway at a property must be used to access an accessory building.
*Council approved a variance to the noise ordinance for Floyd's for two sum-mer nights.
*Three more contracts were received for advertising at the ice arena at the Victoria Field House:  Deer Run Golf Club, McDonald's of Waconia, and Chan-hassen American Legion Post #580.
*Council repealed an ordinance that dictated past membership in a Parks and Rec Committee as well as an ordinance about tree boards.
*Council created a new ordinance creating a new Parks & Rec Committee and membership qualifications.
*Council approved the formation of a Gym Committee that will research types of gym activities, equipment, floor types, and make recommendations.  The com-mittee has recommended a wood floor surface in the new gym, 6 mounded adjus-table basketball hoops, pads for behind the hoops, a divider curtain along with volleyball inserts, supports, and standards.
*Council approved the location of a sign to be placed across Victoria Drive, from C.H. Carpenter to Floyd's.  The very visible location will advertise that down-town businesses remain open during con-struction, and that downtown retail and office space will be available through Hartman Communities.
*Council adopted a resolution order-ing an "alternative areawide review of the approximately 1,000 acres" being pre-pared for annexation to the city and identified in the 2003 Victoria Master Plan.  Mark Kaltsas explained that the proposed urbanization of the now rural property will require some type of environmental assessment.  Size of the acreage and intensity of development is dictating the review.  Developers have agreed to pay for work by the Minnesota Environmental Review Board.  Terry Bishop said a transportation plan is also a big issue that could hold things up.
*"Who's responsible for grass cutting on County Road #18?" asked Dave Lind-gren.  "Part of it looks terrible.  That's a pretty well traveled road, and I don't think it should look like that."  It was suggested that "natural grasses" means "weeds."
*Jerry Keehr has agreed to be the city's representative on the Lake Minne-tonka Communication Commission.
*The St. Victoria Church received an amendment to the site plan for the new church that permits the interim use of the former Aretz/Fr. Bob home as a church office building for a period of three years.  At the end of three years the petitioner may request a two-year extension to the interim use.  The interim use is necessary because the church cannot complete all of the interior renovations until additional funding is secured.  The former home will be renovated to include a handicap ramp and handicap bathroom.  There is a time frame on the amendment because the home is in the middle of the proposed new parking lot for the proposed new church.  Meanwhile, another residence on the church property is being renovated for Father Bob White.