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Case # ~ <br />OPEN MEE~I'ING LAW DEFENSE COST REIMBURSEMENT COVERAGE <br /> By: Kay McAloney, Personnel Coordinator <br /> <br />Backgroundi <br /> <br />There was an ~jticle in the January 1994 issue of the Minnesota Cities magazine regarding <br />the open mee ~t!ng law defense cost reimbursement coverage stating that the coverage was <br />available beginning November 15, 1993. The article explains that the coverage will <br />reimburse ci~~ officials for 80% of the legal costs incurred while defending themselves <br />against charge_i of violating the open meeting law. This coverage was made available as a <br />result of seve,f'al councilmembers being forced to defend themselves against an open <br />meeting law violation charge. <br /> <br />The cost of th~ additional coverage is based on 1.5% of the cost of the City's general <br />liability insurance, which is not available yet for 1994. Based on the general liability rate <br />for 1993, the a~tditional coverage would cost approximately $439.50 annually if available <br />for 1993 ($29,~00 for general liability insurance multiplied by 1.5%). <br /> <br />Recommendation: <br /> <br />Based on a di~ussion with Insurance Agent of Record Mike Hadtrath, staff recommends <br />that the City not purchase the open meeting law defense cost reimbursement coverage for <br />City Council ~embers. <br /> <br />Committee Action: <br /> <br />To approve/not approve adding open meeting law defense cost reimbursement coverage for <br />City Council n embers in the City's 1994 General Liability insurance. <br /> <br />Review Checklist: <br /> <br />City Administrator <br />Finance Officer <br />Personnel Cooi-dinator <br /> <br />FC: 1/18/94 <br /> <br />,.5/ <br /> <br /> <br />