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Show prcTpji Cities Are Seeking Alternatives in Buying Insurance 2VVV 1 he Salt Luke Tribune, Wednesday, January 13, 1986 t'untinued From Page 1 n II a suit does arise, money is taken Irom the group fund to meet the cost ofjettlement, '"The biggest advantage is risk management. The pool not only pays claims and colleen premiums like insurance compels It Identifies w here their to liability and Mptsaa corrects the Pete Andersen, progta eaCMtor for Utah Local Imrsnce Trust, one of two FK3 CraUCf in the state. bt pniS3,ttid OeCSat Axftnr Draper City ton-war- d Rat- - Ynl knruca agrMK si makes the city dtp say. 'Hey, we're going to km 10 lisp tod take care of ourselves. . .Itkskitbeen heneficial, its ac!gttitr. ii While BOt M Option to be entertolMd by most dtlM, OB oSoctfcre since 1977 it has self-iRHra- km for Salt Lake City. Jaot hfickson(c), risk manager for tbedty said that has saved residents around $2 million since cost-sav- 1977. fold rale increase. City Attorney Clint Balmforth said it's working well and they'll most likely continue it, at least "until commercial insurance get their acts m gear. Unlike most, there are a lew cities who anticipated the premium hike, but have not had to pay. Sunset paid approximately $32,000 of insurance premiums last year. "This year we budgeted for $46,000, but we will only have to pay $22,000, explained city treasurer Elden Jackman. The following is a survey of the insurance status of cities in Salt Lake County conducted by The Tribune: Alta: Despite a 450 percent increase in premium, Alta City stayed with commercial insurance. Kate Black, town clerk, said that the increase "wiped-ou- t $15,000 of the administration fund and the possibility Of hiring new employees. "We stayed with the private carrier although the increase was tremendous, she said. "We didnt want to under any circumstance go without the budget. insurance, so we d She said that time didn't permit thorough research of alternatives, but that the issue would be discussed further in future Town Council meetings. Bluffdale: On Dec. 20, Bluffdale City received notice that its insurance would not be renewed when it expired in April of 1986. The letter stated: "Given the chaotic state of the re-di- "In 1976 the city made a decision that it would be more economical than paying private insurance, she said. "From 1976 through 85, $2.9 billion in lawsuits were filed against city, and wc out paid $27,799 . , . that's a pretty good record." South Salt Lake also made the shift in August 1985 folto lowing what would have been a four reinsurance industry we are doubtful that Colonial Penn will be able to renew its reinsurance trrities. "Even if Colonial 1 eon is able to ofter renewal coverage, you may anticipate higher pricing and reduced or restricted coverage, Connie Itice, Bluffdale City Administrator, said that the issue would be discussed at future meetings and the possibility of pool insurance would be considered Draper: Last year, Draper City paid a premium of $16,000 for $1 million coverage. After joining the Utah Municipal Kisk Management System, one of two state pools, the city's premium was $19,000. "The smaller cities didnt get stuck as bad as the big cities who had a 300 to 400 percent increase, but it was still more lhan we had planned for, said City Manager Andrew Hatton-Warwho noted that in the last four or five years the city has only paid about $500 in claims. You need to have it, but you sure hate paying it when you don't use it," he said. Midvale: Due to the recent vacancy in the city administrator position in Midvale, a knowledgeable official on the citys liability insurance was unavailable. However, Dan Thomas, fleet manager for Midvale, was able to shed light on the increase in automotive liability. Last year, Midvale paid a Salt Lake City: The capital city ha been since 1977. The decision was bused on a good "loss experience." "In 1976, the city made the decision that it would be more economical than paying private insurance." said Jane Erickson, of Salt Lake City's risk management office, adding that an "excellent attorney stafl has premium of $9,000. It increased to $29,000 this year. "We covered it by not hiring an additional fleet mechanic," he said. "We're going to do everything creative we can as soon as we get a city administrator to guide us an increase like this certainly gets your attention." d ... Murray: One of the few cities relatively unaffected by insurance industry problems, Murray is paying the same premium this year as last. Financial director Don Whetzel explains: "We talked to the people at the pool and they said, Okay, for the same premium well give you this package. " Last year, $79,862 gave Murray City $1 million in coverage. This year the same premium gives a coverage helped. - Since Sandy: A member of the Utah nicipal Risk Management System, Sandy paid a premium of $84,000 last year. With pool insurance, the premium jumped to $265,000. "Were really biting the bullet and trying to squeeze every dollar," said Mark Patterson, director of administrative services. "We've gone into the reserve account in the general fund and had to pull additional money out of the water fund and fleet fund " losses low South Jordan: Also a member of the UMRMS, South Jordan had a premium of $19,157.95 with commercial insurance last year. They now pay a Riverton: "We saw a ton of insaid City Administrator crease, Mike Siler. Riverton opted to stay with a private company, despite the hefty rise in premium. Mr. Siler said they decided against the pool option because it didnt provide a significant amount of liability or "have any insurance over and above the money committed. The commercial rate for Riverton is $32,000 this year, compared with a premium of $15,000 last year $31,544.19 West alley City: City Manager John Newman said West Valley is "paying about the same, it's a matter uf whether you can get insurance at South Salt Lake: One of two cities, South Salt Lake has had a relatively low claim expen- - "We can get commercial insurance at an unreasonable rate if we have a lot of inclusions," he said, adding that the city decided it was better to or join a pool. Now a member of the UMRMS, he said the city pays cv ci thing under the $10,000 deductible, so in essence we did both. premium. The rise in rates was anticipated, according to Richard W'arne, city administrator, who Is confident that "in the long term it will result in substantial savings to taxpayers. all" self-msu- Utahns Serve Around the Nation BOUNTIFULS PROJECTED POWER NEEDS 1963, when West Jordan: When West Jordans pnvate carrier announced it would not renew the city's policy, the city was forced to look elsewhere. Other insurance companies were offering similar policies for roughly triple the $37,771 West Jordan paid last year. Instead, the city joined UMRMS. And while West Jordan's current contribution to the association is $150,000 for $1 million coverage, city officials take some comfort in the prospect of lower rates if the member cities keep Mu- of $500,000. Bountiful Plans to Build 3 Power Plants BOUNTIFUL . ' Needed to Meet Growth By Rodd G. Wagner Tribune Staff Writer em e and finds this option to be a solid one for the present. e priced Some insurance, and could have obtained commercial for would have $1 15.UUU m $150,000. Pools it $04,000 to join," said Clint been a Balmforth. city attorney. "We took the premium we would have taken to it in a claims acjoin a "pool and put count (Measured by thousands of Bountiful began receiving inexpensive federal power from the Colorado River Storage Project, electricity irom the Flaming Gorge and Glen Canyon dams has supplied the bulk of the city's needs. But with a current population ot roughly 35,000, Bountiful has outgrown its allocation of CRSP power, lorcing the purchase of electricity from other sources and requiring the city to begin work on new long-tersources. Construction on the first of three large hydroelectric generating plants is scheduled to begin this spring, the turbines and generator already being built. The city is counting on two of the generators being ready for the summer of 1987 to take part of the load now being assumed by power and a backup generator brought in last megawaff-hour- anticipated s for the next five years) Pvt. Michael R. Vance, son of Su- syn L. and Deen Keel, West Valley, has completed basic training at Fort lr. Dix. NJ During his training, Vance received instruction in drill and ceremonies, weapons, map ready ing. tactics, military courtesy,-militarjustice, first aid and Army history and traditions. Pvt. Craig W. Christensen, sqp of Caima R. Franipton. Sandy- - and Glenn Christensen, Las .Vegas.lWfev has graduated as a reconnaissance scout at the U.S. Army Armor School, Fort Knox, Ky. A scout's job is to make a complete evaluation of a tactical situation and report what he has observed or learned to his command Pvt. Bryant K. Olsen, son of Beth and Bryant Olsen, Salt Lake City, has completed basic training at Fort Dix, N J. During his training, Mr. Olsen instruction in drill and ceremonies, weapons, map reading, tac- tics, military courtesy, military justice, first aid and Army history and traditions. ; Pvt. Edwin R. Jimenez, son ol Roblest Salt Lake City, has completed basic training at Fort Dix, N J During his training, Mr. Jimenez received instruction in drill and ceremonies, weapons, map reading, tac- ' Au-re- a tics, military courtesy, military justice, first aid and and traditions. l CUP rmy history & er H7 SAVE i.ikr Sribnnr Shill (USPS uj Salt ;t;r Sribtnu Telephone NumberI week. During .Our loHdis1 growing and we' need to meet it,"Smd City Manager Tom puwer use, the city used less than it Hardy. "Wc have enough to meet our could have purchased from the federcurrent needs, but we don't have al government. But in recent years Bountiful's electric appetite has gone enough to meet our future needs. ' The new beyond its share. We are now using will also power supplies not only our full allocation but more raise the rates for Bountiful customIrom other sources, said Mr. Harers, but with the cost of municipal "We can't get any more CRSP. power roughly half that of power dy. Unlike most other resources, elecfrom Utah Power and Light Co., city officials maintain their electricity tricity, in the amounts necessary to will still be a bargain over the state's run a city, cannot be stored. "You either use it or lose it, said Mr. Hardy. largest supplier. And the amount a city needs varies 'The three hydroelectric projects with weather, hours of daylight and IVJUl cost an estimated $17.5 million, ney the city raised through .the .other variables. Many times generatof bonds.-Threpayment of the ing facilities will be' able to produce Bfibds will increase rates 10 percent more power than their customers or owners demand. tttts year, 13 percent in 1987, 9 percent m 1988 and 4 percent in 1989, accord- Thus, when Bountiful has needed tog to the bond prospectus. extra power, it has usually been able ' Bountiful has operated its own to purchase it from other cities iiwer department since 1935, when through the Utah Associated Municien-- , g (Spsel- - and pal Power System, or from the Northwere to west United States through the Bonused generators ghies turning neville Power Association. hep the lights glowing. Decades later, the city contracted These sources, while slightly more with the CRSP, which still supplies 95 expensive than CRSP power (about 2 allow a depercent of the citys power, and does cents per kilowatt-hourflat relatively little expense; about 1 lay in the inevitable purchase of more dependable sources, until the cent per kilowatt hour. natural-gas-burnin- ), excess demand is high enough to tify new facilities. Bountiful is now at that point. Its three hydroelectric plants are expected to add over 40,000 megawatt-hour- s to the system, an amount projected to take the city into the next decade. Generators are now on order for the plants. Each generator has a custom size; you dont go to a factory and buy one off the line, said Mr. Hardy. The first plant will be installed m Echo Dam, on the Weber River in Summit County, and about 25 miles east of the city. With the generator on order, city officials are aiming to begin its installation in the spring. The plant is scheduled to begin supplying power in October. The second plant is planned for East Canyon Dam, in Morgan County, some 15 miles east of the city. The least powerful of the three projects, it is expected to join the system in June 1987. Cits otticials are planning on those two plants to keep Me ciiy 's ; ir cond- itioner running through that For All Your 175 W. 4160 South In Cai iage Squcu e Phone sum- - I I bsMbhslied April 15, 187!, pub iished daily and Sunday and twice on Wednesday by the Kearns iibune Corporation, 143 South Mam Salt Lake City. Utah 84110 - Du you netNi information, want sports scores, have a news story or feature you want to talk about Is your paper missing? Do you want to discuss a classified or display advertisement Second nass postage paid at Salt Lake City Utah POSTfNAAS TfcR send addren chanatiJo The Salt Lake Tribune, tT3cwh Mam Salt Lake City, Utah 84111 l All unsolicited articles, manu scripts, letters and pictures sent to The Sait Lake Trbune are sent at the owrs risk and Kearns Tribune Corporation assumes no responsibility tor their custody or return HERES WHERE TO CALL i now-defun- Weekdays before 10 a.m., Sunday before Carrier & Home Delivery Information, I Monday-Friday- p.ni.i 8 a.m. to 5 p.m.t , New subscriptions, restarts, cancellations and office Mail subscription billing information Art Dept. 2.17 Information News Dept Sports Dept, lifestyle 1988. 2012 Mac. A. S 98 per week Cour.iy) Newsrack or Vendor Daily S35oercoev Sunday SlOOpertopv (k ties may 3 outside If iSjiK.jke Mtrpo ifan afeU- t Mall By Daily and 8undav (Utah, Idaho Nevada and Wyoming) $8 50 mu Daily Only .Utah, Idaho, Nevada i 65 75 mo arid Wyorn ng Sunrja Oniy (Jtan, Idaho, w Nevada aor ommg) 56 25 mo Sunday Orly ( 4 66 25 mu other Static l Wedncsr i. Only (S L ' 6l3 00vr County Daily and Sunday (Alt 616 50 mo Otiwr States 2)7-201- PulilLilier I Editor fr 217-21)- I Depending on hydroelectric power for a large part of Bountiful's supply has both its advantages and problems. How much power the city gets will depend on the amount of snow and its summer runoff pattern. "Drought years can affect you adversely," said the city manager. But the water-drive- n power also is greatest at the hottest time of year, coinciding with the the highest demand. Also, once the bonds are repaid, only maintenance fees will reduce the amount of revenue from power sales the city can return to its budget. SPORT'S SCORES C Salt ounty F or scores after p m. Elsewhere in Utah (Dial Toll Free' ADVERTISING Adv. Dispatch Gen. Lhspl.iv TS HOME SERGER I DEPARTMENTS, Classified Ad Retail Ads AH mad subscriptions payable m advance OUITLARY MHIC Es Ceekdavs before 5 p.m Weekd.ivs .liter 5 p m. Sunda s after noon Saturday after Tull F 217 2911 217 29911 217 - 2990 8 a m ree m I tail 2.17 I 2kio 80tM9,2 - Hlkil . I I I j f he Tribune is a member o th Associated Press The Associated Press is entitled exclusively tothe us of reproduction of all local n ws printed m this newspaper as well is all A P news dispatches Member Audit Bureau of Circu itiuns ALL AMERICA IS TALKING ABOUT, IS HERE NOW! i W 964-077- VALENTINES 99c Take Special Oitleis foi Weddings & Dances Thread And Instant Combo One. yyc3B(s KING ?ri SUPERLOCK Exclusive Design A features Built-in-Lig- Recessed Safety Cutting Knives Uses Regular Sewing Machine Needles THE WEIGHT-GUAR- Rolled-Hem-Narro- w D Hem Foot Plate or blind hem foot included & DENTAL APPLIANCE Constantly Mucks tempting loods Slows down o ilmq slops bmaes Can only be re, noved by the dentist Shores lip set ontrol and willpower Allows you In speak 'reely Can NOT be seen by others This is NOT mouth wiring If you have to Ihs or more to lose and have can give trouble slaying with weight loss prog .mis the Weight-Guar, f AST yet they wll not be seen by you the help you need to lose ulheis Gateway Weight loss Center lie- .1 uinplete program FREE reward SERGER LESSONS 3DiscountCash purchased on With The Purchase Of Any Of Our Superlocks Jan. 161718fh It)-- ( CALL mi So 263-007- "no t 9 Suite ;oo RATES Carrier Deliver Daily $?1oerCOPr & 56 per copy Sunday with daily 8 98 per copy Sunday Only Sunday by Carrier, and Wednesday by Vail (S L. .rtv Ironiotion Editorial Pace 217 2070 SUBSCRIPTION iMMD i Parties See PARTY PARTS PLUS! jus- mer, the season when power demand is at its peak: This coming summer, the city will rely partially on its new gas engine, purchased from the Washington Public Power System. The third and most powerful project will be built on Moon Lake, 90 miles southeast of Bountiful, on the Lake Fork River of Duchesne County. This last project is expected to add to the system, 17,411 megawatt-hour- s but will not be completed before June 483-600- South Mum VALLKY.FAIR MALL WMtVcill796l IS 1 I |
