|
designed for Minnesota cities and the City of Mounds View had participated in it for quite some
<br />time.
<br />Mr. Clysdale stated that they had reviewed the comprehensive program with Finance Director
<br />Kessel during the previous week. He stated that the overall total cost for the insurance plan was
<br />about the same as that of the previous year, in spite of several changes as far as the increase in
<br />property values, and nominal adjustments for the inflation of other buildings and personal
<br />property throughout the City. He stated that the general liability rates had decreased, in spite of
<br />an increase of expenditures projected for the upcoming year. He added that the premiums for
<br />general liability had decreased, even though the method of charging was at a higher premium
<br />base. He stated that this was also the case for the Workers Compensation rates, noting that each
<br />rate had been reduced, and that overall, the programs remained the same. He stated that the
<br />League of Minnesota Cities program was specifically designed for Minnesota cities, and that
<br />each year they broaden the coverage. He stated that this year, coverage had been increased on
<br />the golf course to $100,000, as opposed to the $60,000 coverage of the previous year. He stated
<br />that loss of revenue coverage was increased from one million dollars to five million dollars, and
<br />that the computer coverage was one million dollars. He stated that, during the previous year, the
<br />City had received a dividend on the liability and property package of $28,000, and a dividend on
<br />the Workers Compensation portion of over $11,000. He stated that the deductible on the policy
<br />was $10,000 per loss, with a $50,000 per year maximum, and that this had saved the City
<br />$38,000 this year. He stated that, in general, the City had an excellent year in regard to losses,
<br />noting only one severe loss at the golf course, and a few minor, routine losses. He stated that it
<br />• was from this standpoint that the rates had decreased, adding that the League of Minnesota Cities
<br />recognize the City of Mounds View to be an excellent risk in the areas of safety and loss. He
<br />stated that every year, the City's rates have been reduced as a result of their good operation.
<br />Council Member Marty asked if the clause regarding business income related to the golf course.
<br />Mr. Clysdale stated that this clause applied to all of the revenue producing activities of the City
<br />and in this area, the City had more coverage than they could ever conceivably require. Marty
<br />asked if they were to have damage to the golf course or a problem at the Community Center,
<br />would this coverage make up for the loss of revenue. Mr. Clysdale stated that if a loss were to
<br />occur in the height of the golfing season, the City would have coverage for the loss itself, as well
<br />as reimbursement of the lost revenue. Marty asked if this included "Acts of God." Mr. Clysdale
<br />stated that this was an all-risk policy in very broad terms. He stated that the policy does not list
<br />all the perils, but removes the exclusions. He added that all expected losses would be covered.
<br />Mr. Clysdale stated that every year the City is given a quote for an increase in liability coverage,
<br />noting that, in the past, they have opted to insure themselves under the provisions of
<br />Governmental Immunity. He stated that the current policy provided for $300,000 coverage per
<br />injury, per individual, with a $700,000 annual maximum for all losses of that nature. He stated
<br />that this provided immunity for losses in excess of that. He stated that every year, the City is
<br />given the option of increasing the coverage by one million above that, noting that the current
<br />premium is $17,000, and stated that in the past, the City of Mounds View, as most cities, has
<br />relied upon their government immunity.
<br />• i the ast.
<br />Council Member Stigney stated that he would exclude the excess habihty, as n p
<br />24N:\DATA\USERS\JOANB\SHAREIMINUTES\CC\ 1999\06-28-99.CC
<br />
|