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Mounds View City Council June 26, 2000 <br />Regular Meeting Page 8 <br /> <br /> <br />Council Member Marty asked how long the City should keep that coverage. Mr. Clysdale <br />recommended two to three years, noting it is a policy specifically written for municipalities by <br />the League and he is relying on them as to how long it will be necessary since it is an unknown <br />factor. Mr. Clysdale commented on a Y2K claim he is currently working on for one of his clients <br />and his belief that it will be years before it is known how that will develop. He explained that <br />claim is dealing with the huge amount of money spent to deal with Y2K issues and it is being <br />litigated nationally. He noted there is no guarantee that claim will be paid but if paid by the <br />litigation of large firms, it will open the issue for municipalities and private corporations to bring <br />claims. Thus, it is an evolving process. <br /> <br />Mayor Coughlin stated a few of his friends are in large corporations and it is true there is some <br />exposure not only due to computer errors but also to other preparations. He explained that there <br />may be areas of concerns that are not yet known related to Y2K. <br /> <br />Mr. Clysdale stated his firm will continue to analyze and review this issue. <br /> <br />City Attorney Long noted the municipality liability information and listing of three joint powers <br />agreements. He stated the City has a contract with the YMCA to do work at the Community <br />Center and asked if that relationship needs to be listed separately as the others are listed. <br /> <br />Mr. Clysdale stated the YMCA contract does not need to be listed since it is not a joint powers <br />agreement and an entirely different type of business contract. He stated the joint powers <br />agreements are renewed each year and these three are the only ones the insurance company <br />considers to be joint powers agreements so they are specifically covered. <br /> <br />City Attorney Long noted the deductible is indicated to be $10,000 and asked if there is a $5,000 <br />deductible for some claims and a $10,000 deductible for other types of claims. <br /> <br />Mr. Clysdale corrected that the City’s deductible is $10,000. He stated he misspoke earlier and <br />stated it is $10,000 per loss and a $50,000 annual aggregate is the most the City can pay. <br /> <br />Council Member Marty asked if $50,000 is the most the City can pay or the most the insurance <br />company can pay. Mr. Clysdale stated that $50,000 is the most the City can pay for all <br />deductibles in one year. <br /> <br />Council Member Marty asked what the difference in premium would be between a $5,000 <br />deductible and a $10,000 deductible. Mr. Clysdale stated he did not obtain a quote on that but <br />could do so. He stated there are various options available and he can obtain an alternate <br />consideration and provide that information to staff. <br /> <br />Mayor Coughlin stated that was looked at previously and it was found that the cost would be <br />significantly higher. Since the City has had a very good track record, it has saved the City a <br />significant amount of money over time. <br />