Denouement, for now (updated)

[update at end]

Elizabeth Mohr writes in the 4/9/08 Pioneer Press: Maplewood's infighting raises insurance costs: City's insurer, citing lawsuit expenses, boosts its rates and delivers a warning

Fed up with the squabbling and rising cost to insure Maplewood, the League of Minnesota Cities gave the St. Paul suburb a stern and expensive reprimand Tuesday.

The league, which insures all but six Minnesota cities, had been considering dumping Maplewood's policies. On Tuesday, the league's board of directors agreed to offer a renewal to the city, but with stiff premium and deductible increases.

"The board's concern is the contentious and divisive situation out there," Pete Tritz, director of the League Insurance Trust, said, noting that the atmosphere at City Hall contributed to a spike in lawsuits.
...
League attorneys are upset the council has disregarded their warnings on such things as talking to the media about lawsuits and the people involved when told not to, said VeNita Schnebele, a Gallagher representative.
...

Maplewood Mayor Diana Longrie took issue with the idea the city's insurer was threatening to revoke coverage or penalize the city based on what it considered "uncooperative" behavior.

"A council member ... expressed their opinion of somebody. Is that OK? I don't know. Is that protected by the First Amendment? I don't know," Longrie said. "But they're saying, 'We won't insure you if you speak your mind.' What speech is allowed? I don't know."
...

The city's coverage is scheduled to expire June 30. Adjusted premiums under the new contract will be "123 percent* of what the average city would be paying" and Maplewood's deductible will increase from $50,000 per claim to $200,000, Tritz said.

...

The state auditor's office responded to calls for an in-depth look into the city's books by meeting with Ahl and Finance Director Bob Mittet last week.

State Auditor Rebecca Otto said Tuesday the state will "be monitoring their current situation," but won't perform an audit.

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[update 4/9 8:00AM]

* The 123% of average is actually about a 38% increase, since Maplewood's previous good loss control record had resulted in below average premiums (Thanks to an alert reader).