Oakes moved and Dinnel seconded that the following resolution be adopted:

RESOLUTION 02-035

RESOLUTION ESTABLISHING AN ESCROW/TRUST FUND FOR CERTAIN PERCENTAGE OF INSURANCE PROCEEDS FOR FIRE DAMAGED PROPERTY – MN SS 65 A

WHEREAS, during the 1995 legislative session Chapter 65A was passed which authorizes municipalities to elect a procedure to ensure that owners of insured real property which has been damaged or destroyed by fire or explosion fulfill their responsibility to securing repairing, replacing, or removing the damaged or destroyed properties, and

WHEREAS, the municipalities choosing to participate in this program would need to pass a resolution establishing a trust/escrow account for a portion of the insurance settlement (the lesser of 25% of the actual cash value of the property at the time of loss of 25% of the settlement), and give notice to the Department of Commerce by March 30, 2001, and

WHEREAS, the City of Ortonville (City) intends to uniformly apply Chapter 65A with respect to all property located within City this law will become effective upon passage hereof.

NOW THEREFORE BE IT RESOLVED the Council of the City of Ortonville, Minnesota authorizes the Finance Department to establish a trust or Agency Fund to escrow that portion of the insurance settlement to be used for the securing, repairing, replacing, or removing damaged or destroyed properties according to Chapter 65A.

Upon roll call vote the following voted aye: Dinnel, Sellin, Arndt, Oakes, Berkner, Reinke, and the following voted nay: none.

Resolution 02-035 passed this 15^th day of April 2002.

                                                                        APPROVED:

            _____________________

                                                                        David Dinnel

                                                                        Mayor

ATTEST:

_____________________

Roman C. Taffe

City Clerk-Administrator