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HARTINGTON — The Hartington City Council Monday agreed to change insurance carriers in an effort to save money and improve their coverage.
The city has worked with EMC Insurance through local agent Anderson and Anderson Insurance for nearly five decades.
That relationship will end Nov. 10 when a new policy with League Association of Risk Management, LARM, takes effect.
'I look to do business locally if we can do that, but there is a sizeable amount of difference between EMC and LARM,' Hartington Mayor Mark Becker said before the Council voted 4-0 to accept the LARM offer.
Councilman Colin Kathol agreed. 'I really do want to leave the business in town, but man this is quite a difference,' he said.
The city agreed to sign a one-year contract with LARM at an annual cost savings of $35,000. The policy also includes a $2,500 deductible per occurrence regardless of how many city-owned properties are affected. The current policy calls for a $10,000 deductible per property.
LARM representative Clint Simmons said his policy also provides for replacement value compensation, and not actual cash value compensation, which is what most other companies provide.
That means if a city building is destroyed, LARM would pay to have that structure completely rebuilt. A cash value policy only pays for the current depreciated value of a building.
Also Monday, the Council decided to vacate an alley between Franklin Street and Main Street in the new Nordby Addition.
Council members said the owners of the Nordby Addition say they will not lay claim to the land and are willing to give the vacated alley to the land owners on the west side of the alley.
Hartington City Council members also found out Monday that several new policies they approved earlier this month are not popular with many local residents.
Rich Pedersen addressed the Council at the close of Monday’s meeting to express his concerns with the three new policies, which limit who and when the public can speak at a Council meeting and mandate what items can be added to the Council agenda.
Pedersen said he felt these policies are aking to censorship and shut local citizens out.
Becker said the policies are necessary to keep the meetings orderly.
'At one meeting, we basically got accused of everything and were getting yelled at. I don't see that as being beneficial,' said Becker.
