4.6. SR 12-19-2011~~ REQUEST FOR ACTION
River
TO ITEM NUMBER
Ma or and Ci Council 4.6
AGENDA SECTION MEETING DATE PREPARED BY
Consent December 19, 2011 Tim Simon, Finance Director.
ITEM DESCRIPTION REVIEWED B)/
Adopt Resolution Authorizing a Transfer from Government Cal Portner, Ci Administrator
Building Fund to Insurance Reserve Fund fox Landfill Litigation REVIEWED BY
Costs
ACTION REQUESTED
Council is asked to adopt the attached resolution authorizing a transfer in the amount of $329,196.14
from the Government Building Fund to the Insurance Reserve Fund.
BACKGROUND/DISCUSSION
The League of MN Cities represented the City of Elk River in the land use lawsuit filed by Elk River
Landfill. The parties reached a negotiated settlement and there was no claim payment. The city's
responsibility of the litigation costs totals $329,196.14.
The Insurance Reserve Fund is used for insurance deductibles and litigation costs not covered by
insurance. However, there are not enough funds to cover the litigation costs related to the landfill
lawsuit. Keeping sufficient funds available in the Insurance Reserve Fund allows for future deductible
changes and any other insurance related claims. Currently, the city receives a landfill expansion fee in
which 85% of the funds have been allocated to the Government Building Fund. Therefore, $329,196.14
will be transferred out from the Government Building Fund to the Insurance Reserve Fund to pay for the
landfill litigation costs.
FINANCIAL IMPACT
$329,196.14 transfer from the Government Building Fund to the Insurance Reserve Fund
ATTACHMENTS
Resolution Authorizing a Transfer From the Government Building Fund to the Insurance
Reserve Fund
Action Motion by Second by Vote
Follow Up
f~~Ee~Ii ar
N:\Public Bodies\Ciry Council\Council RCA\Agenda Packet\12-19-2011\InsuranceFundtransfer[1].docx
RESOLUTION I I -
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION AUTHORIZING A TRANSFER FROM THE
GOVERNMENT BUILDING FUND TO THE INSURANCE RESERVE FUND
WHEREAS, The City of Elk River has incurred litigation costs and the Insurance Reserve
Fund has insufficient funds to cover these costs, and
WHEREAS, The City Council has reviewed the request and determined it to be a sound
financial practice; and,
WHEREAS, It has been determined that an amount of $329,196.14 will be transferred out
of the Government Building Fund to provide funding for the landfill litigation costs.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk
River makes the following transfer of funds from the Government Building Fund:
Insurance Reserve Fund $329,196.14
Passed and adopted this 19``' day of December 2011.
John J. Dietz, Mayor
ATTEST:
Tina Allard, City Clerk
N:\PubGc Bodies\Ciry Couneil\Council RCA\Agenda Packet\12-19-2011\Resolution%20insurancetransfer[1].docx