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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. r 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. 914 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 915 $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 F t d %6 MA �- 4 ° v ATTEST: a ^ nn SEA\ DEBRA G. WEST 3! CITY CLERK `�s ✓ssaaaaai�tiaaaa