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City Council Meeting Minutes May 25, 1999 Page 6 1 Ranallo noted the first paragraph of the report notes the financial condition of the City remains 2 strong. Mr. Bonniwell confirmed the City's finances are in good shape and have not eroded. 3 4 Motion by Marks, second by Faust to accept the 1998 City of St. Anthony Financial Report as 5 prepared by Stuart J. Bonniwell, Certified Public Accountant. 6 7 Motion carried unanimously. 8 9 C. Mark Flaten will be present to discuss renewal of the City's insurance. 10 Ranallo welcomed Mark Flaten, Berkley Risk Services, and invited him to address the Council. 11 Mr. Flaten reviewed the City's insurance renewal and premiums, noting those items which had 12 increased dramatically, such as automobile premiums due to the addition of 2 cars. 13 14 Mr. Flaten noted the general increase is mainly due to Worker's Compensation,related to an 15 increase in the City's payroll. 16 17 Mr. Flaten noted the Y2K coverage, which is optional, is dependent upon coverage for the City 18 from the League of Minnesota Cities, a decision on which is forthcoming and should be made 19 within 30 days. 20 21 Ranallo asked whether the City,would receive a dividend back this,year, and whether that was 22 reflected in these numbers. Mr. Flaten stated the dividend should have already been received by 23 the City and was not reflected in the renewal notice. Finance Director Roger Larson confirmed 24 the dividend had been received. 25 26 Marks asked, with regard to Y2K premiums, whether the City should expect to have it in place 27 and make the decision at a later date. Mr. Flaten stated the decision to take additional Y2K 28 coverage could be deferred. 29 30 Cavanaugh requested clear delineation of what is covered under the Y2K premium, and an 31 appreciation for issues which that policy will handle. Mr. Flaten stated the City should 32 determine whether major vendors and service,providers are Y2K compliant. Ranallo stated they 33 indicate they are compliant but the City is unsure. 34 35 Faust asked whether the City will indeed be insured by the League of Minnesota Cities for Y2K 36 issues if they find the City in compliance. Mr. Flaten stated the League will make an offer of 37 coverage if they find the City to be a good risk. 38 39 Cavanaugh asked for clarification with regard to the lack of competition among insurance 40 companies for the League. Mr. Flaten stated the League comprises an insurance pool which is 41 owned by its member cities, and its entities belong to this pool which produces good returns. I