One of the Arnold mayoral candidates would not have liability coverage from the city’s insurance provider if she were elected and took actions outside the scope of her office that would come under fire.
Doris Borgelt, who served as an Arnold City councilwoman from 2011-2013, would not be covered by the Missouri Intergovernmental Risk Management Association for actions outside of the bounds of the city’s mayor, according to an email from City Administrator Bryan Richison.
In June 2013, MIRMA informed Arnold that Borgelt and former Councilman Ken Moss would be excluded from the city’s liability coverage. That exclusion is still in effect and says it is “related to or arising out of the actions or alleged actions of the individuals identified by name in the MIRMA office, who have or currently are serving as City of Arnold councilpersons; provided however that this exclusion shall not apply to actions or alleged actions that are ratified by a vote of the City Council.”
“This comes up every time Doris runs for office, so I have spoken with the MIRMA executive director (Matthew Brodersen) about this in the past,” Richison said. “His explanation to me was that Doris and Ken would only be covered if they were acting within the bounds of the authority of their elected office.”
Richison also said Borgelt and Moss are the only people identified by name in the MIRMA office.
Borgelt, who is running against incumbent Ron Counts, Ward 2 Councilman Bill Moritz, Brett Keller and Tyler Buechle in the April 8 election, said her exclusion from the city’s liability coverage is a nonissue.
“Please note, neither Ken’s nor my name is listed on the document,” she said. “They are contained in a ‘secret’ file at their (MIRMA’s) office. So, if it’s not actually in the policy, how would that be enforceable? I’ve often been told if something on a contract is not in writing, it is not enforceable. That would seem to be the case here.”
Borgelt was no longer a council member when MIRMA informed the city about its decision to exclude her and Moss from its coverage. At the time, Brodersen told the council it was the first time in MIRMA’s 32-year history that it singled out a city council member and decided to deny liability coverage for that person.
He said the board that governs MIRMA, a self-insurance pool for cities, decided to exclude Moss and Borgelt because of “the alarming number of complaints, lawsuits and threats of lawsuits” the city had received involving them.
“It should not be in effect,” Borgelt said of her exclusion. “The language of it is as long as anything is ratified by a vote of the council, it is still covered. What is the difference?”
Richison said if Borgelt were elected to the council, the issue would not be that complicated.
“The council only has authority when they are voting at a properly noticed meeting,” he said. “So, if Doris or Ken were on the council and were sued for a vote they cast as a council member, they and the city would be covered.”
However, Richison said the issue is more complicated if Borgelt is elected mayor.
“The mayor has the power to act individually and the authority of the office is broader and less well defined,” he said. “If Doris was elected mayor, we would need to have a conversation with MIRMA about the limits of its coverage.”
Richison said an example of an action that MIRMA would not cover is the time the city was sued by Anthony Burgio Jr., who owned the former We Buy Gold store in Arnold.
In the suit, Burgio claimed that between May 15, 2012, and April 2, 2013, Borgelt “engaged on behalf of herself and in concert with the city of Arnold in a deliberate campaign to harass (him) and his business in deprivation of his civil rights.”
Burgio filed his lawsuit against the city on July 1, 2013, and Arnold Police raided the business on July 12, 2013. Following that bust, three people were charged with either stealing or receiving stolen goods.
Burgio’s lawsuit was dismissed without prejudice, which meant it could have been refiled, in 2014. It was not refiled.
“In that case, she allegedly was acting on her own outside of a properly noticed meeting,” Richison said.
Borgelt denies that she harassed Burgio.
“The gold buyer was visited one time by me,” Borgelt said. “I did not see an occupancy permit. I made the appropriate people aware.
“He was operating unlawfully according to our ordinances. I did not harass him or his business.”
Richison said if Borgelt were elected mayor and MIRMA would not provide liability coverage for her, the impact could range from nothing big to something enormous.
“If Doris and Ken were elected and did not do anything that MIRMA considered outside of the authority of their elected office, then there would be no impact,” he said. “If they did do something that MIRMA would not cover, then the city would be fully liable for any damages or judgement with no insurance coverage.”
Borgelt said if MIRMA would not provide liability coverage for her, she would have to cover costs involved in a lawsuit.
“I am perfectly capable of getting insurance on my own,” she said.
Borgelt accused Moritz of bringing up the liability coverage issue to help him in the mayoral race.
“He has already put flyers out about it,” she said. “I believe it is something he is going to try to pull out to give him what he thinks is an advantage.”
Mortiz said he has not put out flyers but did check with MIRMA about Borgelt’s exclusion from Arnold’s policy and received an email from the insurance company verifying the exclusion.
“This is because Doris was having some antics with an Arnold business owner, and the guy complained about it,” he said. “MIRMA looked into it and took this action. The only thing I did was confirm it took place.
“This thing Doris is saying that I am flying this around as a campaign issue or putting out flyers is just completely false. It is not true.”