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Mounds View City Council August 26, 2002 <br />Regular Meeting Page 5 <br />Mr. Clysdale recommended staying with the large deductible because of significant savings and <br />said it is a good risk management decision. <br />Mr. Clysdale indicated the savings on workers compensation has been $10,000. <br />Mr. Clysdale indicated the League is very pleased with Mounds View as a client and has insured <br />it for 12 or 13 years and looks forward to the City's continued participation. <br />Council Member Marty noted on the coverage comparison page that the number for 2001 went <br />down. <br />Mr. Clysdale indicated that the expenditures for the year 2000 to 2001 was $7.71 per thousand <br />and for 2001 to 2002 it dropped to $7.41. <br />Mr. Clysdale indicated that in the open market place rates would be entirely different as the <br />League is offering the City great rates. <br />Council Member Marty commented that the July 1, 2001 to 2002 paid expenses were $59,620 <br />and total paid losses were $75,523 and, in comparison with the two or three years previous, that <br />was quite a jump. <br />Mr. Clysdale indicated the City has two active claims that involve wrongful termination actions <br />and involve large legal expenses. <br />Council Member Stigney said he thought one of the benefits of belonging to the League is that <br />payment of those fees is part of the fee that the City pays to them for membership. <br />Mr. Clysdale clarified that the figure is what the League has paid on the City's behalf and said <br />that legal expenses have no limit. <br />Council Member Marty questioned if there was a cap on legal fees. <br />Mr. Clysdale indicated there is no cap on legal fees. <br />Mayor Sonterre thought that the League paid 100% of the first $250,000 and 80% after that. <br />Mr. Clysdale indicated those figures represent the coverage for the open meeting law. <br />Council Member Stigney asked whether the $3,920 for liquor liability insurance would be <br />included as part of the operating costs to the golf course. <br />Finance Director Hansen indicated that amount would be charged to the golf course. <br />• <br />