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I I ,. I I I I I I Ie I I I I I I I f' I ARDEN HILLS CITY COUNCIL - APRIL 8. 1996 3 waive the monetary limits on tort liability established by MN Statutes, as the assumption that any coverage beyond the basic $600,000 was an acceptance of liability beyond the statutory limitation of $600,000, and the maximum the City would be liable for was $600,000. Mr. Lenz explained the Minnesota State Statute liability limit is $600,000, but the City is exposed to some kinds ofliability to which the statutory limits do not apply. He stated by waiving the monetary limit, the City was actually stating the higher coverage limits would be available for all claims, including claims to which the statutory liability limits would have applied. Councilmember Keirn inquired if purchasing excess coverage from the League of Minnesota Cities Insurance Trust and waiving the monetary limits would be sufficient if both the City and EDA were found liable. Mr. Lenz stated the $1,600,000 liability insurance is the limit, and that the EDA is written with the same policy as the City. He stated it would have no change on the . . . waiver versus non-waIver Issue. Council member Malone stated the Council has considered this before, and the understanding then was that the City could not purchase excess insurance for claims not covered if not waived. Mr. Lenz stated excess insurance could be purchased. Councilmember Malone inquired what the amount of excess insurance would be. Mr. Fritsinger stated the amount would be $1,000,000. MOTION: Malone moved and Hicks seconded a motion to adopt the Liability Insurance and Open Meeting Defense Coverage Changes as presented, Purchase Excess Liability in the amount of$I,OOO,OOO, Elect to not Waive the Monetary Limits on Tort Liability, and authorize execution of all necessary documents contained therein. The motion carried (3-1), Keirn voting nay. B. Planning Case #96-02. Stephen Nelson - Front Yard Setback Variance and Utility and Drainage Easement Vacation Kevin Ringwald, Community Development Director, reviewed for the Council that the applicant is requesting approval of a utility easement vacation for sanitary sewer to allow for more buildable area on the subject property. He stated the applicant is requesting the utility easement be vacated and rededicated to allow for greater buildable area in the direction of Lake Johanna's west shore. He stated the Planning Commission recommends the application be approved based on the following conditions: 1. Construction of the new sanitary sewer line and demolition of the existing sanitary sewer line is to be accomplished without the loss of service to any residential property;