10232002913
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
THE CITY COUNCIL OF THE CITY OF DUNN HELD A SPECIAL CALL MEETING ON
WEDNESDAY, OCTOBER 23, 2002, AT 7:00 P.M. IN THE DUNN MUNICIPAL BUILDING.
PRESENT WAS MAYOR ABRAHAM OUDEH, MAYOR PRO -TEM MICHAEL WOMBLE,
COUNCILMEMEERS GEORGE ROBINSON, JOEY TART, DONNIE OLDS AND PAUL BASS.
ALSO PRESENT WAS CITY MANAGER MICHAEL USKIEWICZ, TAX COLLECTOR
PAMELA HODGES, HUMAN RESOURCES /SAFETY OFFICER MOSES GALLION, CITY
ATTORNEY P. TILGHMAN POPE, AND CITY CLERK DEBRA WEST.
COUNCILMEMBER TOBY SUM NER WAS ABSENT (WORK CONFLICT).
INVOCATION
MAYOR OUDEH OPENED THE MEETING AT 7:05 P.M. AND ASKED GEORGE ROBINSON TO
GIVE THE INVOCATION. AFTERWARDS, THE PLEDGE OF ALLEGIANCE WAS REPEATED.
ITEMS FOR DECISION
CONSIDERATION OF OWNER'S PERMIT
APPLICATION FOR D'CARLO TAXICAB
MANAGER USKIEWICZ STATED THAT BEFORE THE COUNCIL IS THE APPLICATION FOR
THE OWNER'S PERMIT FOR D'CARLO TAXICAB.
HE ADDED THAT THE OWNERS OF THE TAXICAB COMPANY ARE PRESENT TONIGHT. HE
FURTHER STATED THAT ALL NECESSARY INFORMATION WAS ENCLOSED AND HAS BEEN
REVIEWED BY POLICE CHIEF BENWARE AND TAX COLLECTOR PAM HODGES.
MAYOR PRO -TEM WOMBLE STATED THAT HIS BIGGEST CONCERN WAS THE QUESTION
RAISED AT THE LAST MEETING CONCERNING THE INSURANCE RATES. HE ADDED THAT
HE UNDERSTANDS THAT THE INSURANCE COMPANY IS NOT GOING TO WRITE ANYTHING
LESS THAN THE MINIMUM REQUIREMENTS BY THE STATE OF NORTH CAROLINA. HE
FURTHER STATED THE ISSUE WITH REGARD TO THE INSURANCE LIMITS RELATES TO THE
QUESTION OF ADEQUACY AND HE DOESN'T THINK ANYONE HERE WOULD TELL THEM
THAT A BODILY INJURY AMOUNT OF $60,000.00 IS AN ADEQUATE AMOUNT FOR A
BUSINESS THAT OPERATES A VEHICLE ON OUR STREETS AND HIGHWAYS.
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MR. WOMBLE STATED THAT A TYPICAL BUSINESS MINIMUMS WOULD BE IN THE ONE -
HALF MILLION DOLLAR RANGE FOR AUTO AND ALSO WITH A GENERAL LIABILITY
POLICY OF ONE MILLION DOLLARS. HE ADDED THAT HE WOULD APPROVE THE PERMIT
ALONG WITH THE CONDITION THAT THEY PROVIDE A CERTIFICATE OF INSURANCE WITH
ONE -HALF MILLION DOLLAR AUTOMOBILE MINIMUM LIABILITY AND A MILLION DOLLAR
GENERAL LIABILITY POLICY.
COUNCILMEMBER OLDS ASKED IF ANYONE KNEW THE INSURANCE COVERAGE ON THE
PRESENT CAB COMPANY OPERATING IN THE CITY.
MANAGER USKIEWICZ RESPONDED THAT PARTICULAR PERMIT WAS ISSUED IN 1994 AND
TAX COLLECTOR PAM HODGES HAS IT WITH HER TONIGHT. HE ADDED THAT THE
COUNCIL SHOULD NOTE THAT IT IS NOT AS DETAILED AS WHAT IS PROVIDED TO
COUNCIL TONIGHT AND BASED ON THE INSURANCE CERTIFICATE THAT IS PROVIDED, IT
DOES NOT STATE NUMBERS AND WE CAN ONLY ASSUME THAT IT IS AT THE GENERAL
STATUTE LIMIT.
MANAGER USKIEWICZ STATED THAT BEFORE THE COUNCIL TONIGHT IS A SURVEY
CONDUCTED WITH OTHER COMMUNITIES AND THEY WILL SEE THAT THE CITY OF
FAYETTEVILLE REQUIRES $100,000 - $3000,000 - $500,000 AND FUQUAY VARINA REQUIRES
$300,000. HE ADDED THAT ONE MILLION WOULD FAR EXCEED ANY STANDARD WITHIN
THE STATE OF NORTH CAROLINA. HE FURTHER STATED THAT ONE MILLION IS THE
AMOUNT MANDATED BY THE STATE FOR LIMOUSINES AND BUSES, BUT DID NOT KNOW
WHY THE STATE DOES NOT REGULATE TAXICAB INSURANCE.
COUNCILMEMBER BASS STATED HE AGREED WITH MR. WOMBLE THAT THE INSURANCE
COVERAGE PROPOSED IS TOO LOW.
MAYOR PRO -TEM WOMBLE STATED THAT IF THE ISSUE IS COST, THEN HE WOULD BE
WILLING TO CONSIDER A TAXICAB RATE NECESSARY TO PROVIDE ADEQUATE
INSURANCE.
MOTION BY MAYOR PRO -TEM WOMBLE, SECONDED BY COUNCILMEMBER BASS TO ISSUE
THE TAXICAB PERMIT BEFORE COUNCIL TONIGHT WITH THE CONDITIONS THAT D'CARLO
TAXICAB SUBMIT A CERTIFICATE OF INSURANCE INDICATING AUTOMOBILE INSURANCE
WITH ONE -HALF MILLION DOLLAR AUTOMOBILE MINIMUM COVERAGE AND A GENERAL
LIABILITY POLICY INDICATING ONE MILLION IN COVERAGE.
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MAYOR OUDEH ASKED IF ANYMORE DISCUSSION.
COUNCILMEMBER OLDS STATED THAT HE AGREED WITH MR. WOMBLE THAT THE
AMOUNT INDICATED IS FAR TOO SMALL TO PROVIDE ADEQUATE CARE FOR RIDERS
WITHIN THE TAXICAB. HE ADDED THAT THE SCHOOL SYSTEM IS ALSO REQUIRED TO
HAVE ADEQUATE INSURANCE IN TRANSPORTING STUDENTS DURING ACTIVITIES AND
THAT AMOUNT IS $300,000.00. HE FURTHER STATED HE DOES NOT KNOW HOW
FINANCIALLY STABLE THE COMPANY IS AND WITH TRYING TO START UP A BUSINESS, HE
IS MORE INCLINED TO THE TERMS OF $300,000.00 IN INSURANCE COVERAGE.
MOTION BY COUNCILMEMBER OLDS, SECONDED BY COUNCILMEMBER TART TO AMEND
PRIOR MOTION BY MAYOR PRO -TEM WOMBLE TO STATE INSURANCE COVERAGE MUST
BE IN THE AMOUNT OF $300,000 TO ISSUE THE OWNER'S PERMIT WITH THE
UNDERSTANDING THAT WITHIN SIX MONTHS IF THE OWNER OF THE CAB COMPANY
u ✓ I BECOMES FINANCIALLY ABLE, TO INCREASE THE AMOUNT MENTIONED BY MAYOR PRO -
TEM WOMBLE.
MAYOR OUDEH ASKED IF ANYMORE DISCUSSION
COUNCILMEMBER TART STATED THAT HE WOULD LIKE TO ASK THE TAXICAB OWNERS
ABOUT THEIR INSURANCE COVERAGE.
MR. AND MRS. SERRANO, OWNERS OF THE TAXICAB, STEPPED FORWARD. MRS. SERRANO
STATED THAT THE INSURANCE AGENT IN GARNER TOLD THEM THIS IS THE COVERAGE
THEY NEED.
COUNCILMEMBER TART STATED THEY NEED A LITTLE HIGHER POLICY COVERAGE TO
PROTECT NOT ONLY THE CITIZENS BUT THEMSELVES.
MRS. SERRANO STATED THEY CAN TALK WITH THEIR INSURANCE AGENT AGAIN ABOUT
THIS.
MANAGER USKIEWICZ STATED THAT HE TALKED WITH THE SERRANO'S INSURANCE
COMPANY AND THEY WERE GIVEN THE MINIMUM REQUIRED POLICY UNDER G.S. 20 -280.
COUNCILMEMBER BASS STATED THAT THE INSURANCE COMPANY WILL QUOTE THE
MINIMUM REQUIREMENT AND HE DOESN'T THINK THIS COVERAGE IS ENOUGH TO COVER
OUR CITIZENS.
COUNCILMEMBER TART STATED THAT THE ONE -HALF MILLION DOLLAR RANGE IS WHAT
✓ THE CAB COMPANY NEEDS AND THE MILLION DOLLAR GENERAL LIABILITY IS LIKE AN
UMBRELLA AND IS NOT SUPPOSE TO RUN THE COST UP VERY MUCH. HE ADDED THEY
WOULD NEED THIS TYPE OF COVERAGE IF THEY HAD MORE THAN ONE ACCIDENT PER
YEAR.
MRS. SERRANO STATED THAT THE INSURANCE AGENCY TOLD THEM THEY DON'T HAVE
ANY OTHER POLICY FOR THIS KIND OF BUSINESS BECAUSE THIS IS A SMALL BUSINESS
FOR DUNN. SHE ADDED THE INSURANCE COMPANY TOLD THEM WHAT THEY NEEDED.
MAYOR PRO -TEM WOMBLE STATED HE UNDERSTOOD THAT AND THE INSURANCE
COMPANY HAS CERTAIN MINIMUM LIMITS BUT THESE MINIMUMS ARE NOT ADEQUATE
TO PAY WHAT COULD OCCUR IF THERE WAS A SERIOUS ACCIDENT.
COUNCILMEMBER OLDS STATED THAT HIS CONCERN WAS THAT THEY NOT SET THE
RATES AND STANDARDS SO HIGH THAT THIS BUSINESS COULD NOT START UP. HE
ADDED THAT HE HAS NO IDEA WHAT A ONE -HALF MILLION DOLLAR POLICY WOULD
COST.
COUNCILMEMBER BASS ESTIMATED THAT IT WOULD COST APPROXIMATELY ONE -THIRD
MORE.
MAYOR PRO -TEM WOMBLE STATED THAT HE WOULD BE ACCOMMODATIVE TO
APPROVING A RATE FOR THEM TO CHARGE THEIR CUSTOMERS THAT WOULD BE
SUFFICIENT TO PAY THEIR INSURANCE. HE ADDED THE ISSUE SHOULD NOT BE THE COST
OF THE POLICY BECAUSE THEY NEED TO PROVIDE THE PROTECTION TO THE PEOPLE.
COUNCILMEMBER OLDS ASKED THE SERRANOS IF THEY ARE AT LIBERTY TO QUOTE THE
PREMIUMS FOR THE INSURANCE THEY HAVE. MRS. SERRANO RESPONDED THEY PAID
$400.00 DOWN WITH $200.00 PER MONTH PAYMENTS.
COUNCILMEMBER ROBINSON STATED IT IS NOT THE COUNCILS PROBLEM TO DETERMINE
IF SOMEONE CAN AFFORD TO GO INTO BUSINESS. COUNCILMEMBER BASS AGREED.
MAYOR PRO -TEM WOMBLE CALLED FOR THE QUESTION.
ATTORNEY POPE STATED THAT THE MOTION ON THE TABLE BY COUNCILMEMBER OLDS
WAS A MOTION TO AMEND THE ORIGINAL MOTION TO REQUIRE $300,000.00 RATHER THAN
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$500,000.00 LIABILITY INSURANCE ON THE VEHICLE. HE ADDED THIS IS THE FIRST
MATTER FOR THE VOTE. MOTION DEFEATED 1 -4.
AYES NOES
OLDS TART
WOMBLE
ROBINSON
BASS
THE SECOND MATTER FOR THE VOTE WAS THE ORIGINAL MOTION MADE BY MAYOR PRO -
TEM WOMBLE, SECONDED BY COUNCILMEMEER BASS TO ISSUE THE TAXICAB PERMIT
WITH THE CONDITION THAT D'CARLO TAXICAB SUBMIT A CERTIFICATE OF INSURANCE
INDICATING AUTOMOBILE INSURANCE WITH ONE -HALF MILLION DOLLAR AUTOMOBILE
MINIMUM COVERAGE AND A GENERAL LIABILITY POLICY INDICATING ONE MILLION IN
COVERAGE. MOTION CARRIED 4 -1.
AYES NOES
WOMBLE OLDS
BASS
TART
ROBINSON
SET TAXICAB RATES
MANAGER USKIEWICZ STATED THAT D'CARLO TAXICAB IS ASKING FOR A RATE OF $1.95
PER MILE. HE ADDED THAT THE TOWN OF SMITHFIELD RATE IS $2.00 PER MILE.
MOTION BY COUNCILMEMBER BASS, SECONDED BY COUNCILMEMBER ROBINSON TO
ACCEPT $1.95 PER MILE TAXICAB RATE. (CAB RATES ARE ON FILE IN THE FINANCE
OFFICE) MOTION UNANIMOUSLY APPROVED.
MAYOR PRO -TEM WOMBLE STATED TO MR. USKIEWICZ THAT IF MR. SERRANO INDICATES
ANY ISSUES WITH THE PREMIUMS ON THE POLICY, ENCOURAGE HIM TO COME BACK
BEFORE THE COUNCIL WITH A NEW RATE IF THAT IS WHAT IT TAKES.
COUNCILMEMBER BASS STATED THAT IN TALKING WITH OTHER TAXICAB COMPANIES,
THESE RATES ARE IN LINE EXCEPT THE INSURANCE COVERAGE IS TOO LOW.
AUTHORIZATION TO CITY MANAGER -
SIGNATURE OF DRIVER'S PERMIT FOR
D'CARLO TAXICAB
MANAGER USKIEWICZ STATED THAT THE CITY MANAGER WILL NEED AUTHORIZATION
FROM COUNCIL TO SIGN THE DRIVER'S PERMIT FOR D'CARLO TAXICAB.
MOTION BY COUNCILMEMBER BASS, SECONDED BY COUNCILMEMBER OLDS TO
AUTHORIZE THE CITY MANAGER TO SIGN THE DRIVER'S PERMIT FOR D'CARLO TAXICAB
TO OPERATE IN THE CITY OF DUNN. MOTION UNANIMOUSLY APPROVED.
WITH NO FURTHER BUSINESS TO DISCUSS, THE MEETING WAS ADJOURNED AT 7:30 P.M
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