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<br />. <br /> <br />Y2k Tip from Rockville Q <br /> <br />Remember safety when instal- (~ <br />ling an electricity back-up ., ~ <br />generator systemforyour home. <br />It is important toinstoll a standby/ <br />emergency generator to protect life <br />and equipment. Have a licensed <br />electrician install a transfer switch <br />(or double.throw disconnect) to <br />isolate your new temporary power <br />source from the main power lines <br />feeding into the distribution lines. <br />Back-feed could potentially injure <br />line crew workers or damage the <br />generator. when electrical service <br />is restored. Consult your electrician <br />regarding other safety rules. <br /> <br />Does your city have a Y2k tip to <br />share with other cities so they may <br />. share it with their citizens? Please . <br />. a-mail Erica Norris at enorris@lmnc. <br />org or call (651) 215-4032 or <br />(800) 925-1122. <br /> <br />. <br /> <br /> <br />. <br /> <br />Consider it civic responsi- < <br />bility, an alternative to <br />your regular work-a-day <br />schedule, or just plain <br />fun. Volunteer for the Y2k Public <br />Awareness Booth in the air-condi- <br />tioned Wonders of Technology <br />building at this year's Minnesota <br />State Fair, Aug. 26-Sept. 6. Plan <br />your volunteer shift around some <br />of your favorite fair activities. (For <br />more information about the State <br />Fair, visit: www. mnonline.org/ <br />statefair /index.html.) <br /> <br />Fair shifts will be just four hours <br />long: 9 a.m. to 1 p.m.; 1-5 p.m.; <br />or 5-9 p.m., and will be filled on <br />a first come, first served basis. As a <br />volunteer you will receive admission <br />tickets, a t-shirt, and a Y2k logo <br />button. To volunteer, call1ori Ayon, <br />Minnesota Office of Technology, <br />at (651) 215-3877. The volunteer <br />schedule is available for viewing <br />at: www.ot.state.mn.us/state-fair / <br />schedule.html <br /> <br />lEAGUE OF MINNESOTA CmES <br /> <br />LMCIT' 5 expanded Y2k coverage~ <br /> <br />Pm TRITZ <br /> <br />To help cities prepare for potential <br />Y2k problems, LMCIT developed <br />a program to cover cities' related <br />liability and other risks.Y2k is a <br />unique situation, and LMCIT's <br />approach to cov~ring these risks <br />is different from anything we've <br />done before. As a result, we've got- <br />ten a number of questions about <br />the coverage. We've also heard from <br />some cities that don't think the <br />expanded Y2k coverage is necessary <br />or important. We'll try to respond <br />to some of these questions and <br />comments in. this article. <br />Why. do we. need the expanded'. <br />Y2k coverage? The biggest reason. . <br />is liability. Without the expanded <br />Y2kcoverage, the city has . only <br />very limited coverage for liability . <br />claims relating to Y2k problems: ... <br />· There is a $25,000 annual aggre- <br />gate limit on coverage for Year <br />2000 claims. (See sidebar for a <br />definition of what is a "Year <br />2000 claim.") A .15% city co- <br />pay also applies to these claims. . <br />· The $25,000 annual aggregate <br />limit is an absolute dollar limit <br />for the year, regardless of the .. <br />number of claims or claimants. <br />· The $25,000 annual aggregate <br />limit and 15% co-pay apply to <br />both damages and defense costs <br />for Year 2000 claims. <br />· This $25,000 annual aggregate <br />limit applies to any liability <br />claim that's related to a Year <br />2000 problem. It applies: <br />· Whether the claim is related <br />directly or indirectly to Y2k; <br />· Whether the Y2k problem is <br />in a computer or in some other <br />type of equipment; and / <br />· Whether the Y2k problem is <br />in the city's or in someone else's <br />equipment. . <br />The expanded Y2k coverage <br />increases that annual aggregate limit <br />from $25,000 to $750,000. It also <br /> <br />~. <br /> <br />gives $30,000 of coverage for extra <br />expenses the city might incur if a <br />Y2k problem does affect the city. <br />What's the deadline for apply- <br />ing? .We haven't set a specific dead- <br />line, though obviously the coverage <br />needs to be in place before Dec. 31, <br />1999. Keep in mind LMCIT has <br />more than 800 members. Remem- <br />ber too that many cities' coverages <br />renew on Jan. 1, so October to Jan- <br />uary is our busy time of the year. <br />Reviewing the city's application <br />for the expanded Y2k coverage will <br />take some time. If everybody waits . <br />until the last minute to apply, we . <br />can't guarantee we'll be able to <br />process all the applications in time. <br />We strongly recommend you apply <br />as soon as possible. This will give <br />our underwriters time to review <br />the application, and you'll have time <br />. to respond if the underwriters have <br />questions about some aspect of your <br />city's preparations. <br />What do we do to qualify? The <br />city must meet two basic criteria: <br />· The city must have made a rea- <br />sonable effort to identify and <br />correct potential Y2k problems <br />in the city's equipment, and must <br />have documented that effort; and <br />· The city must have reasonable <br />contingency plans for dealing <br />with any Y2k-related problems.. <br />The League's )(ear 2000 Action <br />Guide outlines suggested procedures <br />cities can use to accomplish these <br />tasks. The "Y2k Preparedness Work- <br />sheets" offer a simpler alternative <br />procedure for smaller cities. <br />Why are you making us go <br />through all this work? Why can't <br />LMCIT cover this risk automatically <br />for all cities? We think every city <br />should have the expanded Y2k <br />coverage, and that's LMCIT's goal. <br />The reason this coverage is optional <br />and subject to underwriting review <br />is to protect member cities. The <br /> <br />Y2K ACTION NEWS <br />