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<br />rCI ---'\) <br />( )j <br />!Ell< <br /> <br /> <br />Item #7.2. <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Mayor & City Council <br /> <br />FROM: <br /> <br />Lori Johnson, Finance Director <br /> <br />DATE: <br /> <br />October 11, 1999 <br /> <br />SUBJECT: Consideration of Expanded <br />Y2K Insurance from LMCIT <br /> <br />. <br /> <br />In response to concerns regarding Y2k liability claims and related issues, the <br />League of Minnesota Cities Insurance Trust (LMCIT) is offering expanded Y2k <br />coverage. Very few insurance carriers are offering expanded Y2k coverage, but the <br />LMCIT has been very proactive on this issue to help protect the cities it represents. <br />The city has taken many steps to address all known Y2k issues and no major <br />problems are anticipated. However, in the event that something would happen, the <br />current insurance policy would offer only limited coverage. The application <br />deadline is October 31, 1999. <br /> <br />Attached is an article from the League's Y2k Action News Newsletter that provides <br />a very good description of the League's expanded coverage. The expanded coverage <br />increases the city's annual aggregate limit from $25,000 to $750,000 in addition to <br />providing $30,000 for extra expenses resulting from an Y2k problem. The estimated <br />premium is between $6,500 and $7,200, including $2,600 for Elk River Municipal <br />Utilities. The Utilities Commission discussed this at a Commission meeting and <br />indicated that the Utilities would pay its share of the premium if the City Council <br />wants the expanded coverage. <br /> <br />Action Requested <br /> <br />The City Council is asked to consider whether the city should purchase expanded <br />Y2k insurance coverage from LMCIT. <br /> <br />. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330. TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br />