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<br /> r . <br /> ~ CITY OF ARDEN HILLS <br /> MEMORANDUM <br /> DATE: April 4, 1996 <br /> I TO: Mayor and City Council <br /> I FROM: Brian Fritsinger, City Administrator @ <br /> SUBJECT: Municipal Insuranee Coverages <br /> I Baekground <br /> I At the March 18, 1996, Council Worksession, the City Council reviewed the current insurance <br /> coverages carried by the City. Mr. Mark Lenz, T.C. Field & Company, was in attendance and <br /> identified several areas of coverage tor City consideration. <br /> I At the request of the City Council, I have investigated two areas of coverage for consideration at <br /> this meeting; Open Meeting Defense and the Waiver of Monetary Limits Related to Excess <br /> I Liability Coverage, <br /> Open Meeting Law Defense <br /> .. The City Council last considered this coverage in February, 1994. At that time, the <br /> recommendation from Staff was not to proceed with this coverage as it was erroneously assumed <br /> that general liability insurance would cover this issue. <br /> I The existing general liability insurance does not cover this issue, The Open Meeting Law <br /> I coverage would reimburse the defendent for defense costs for Open Meeting Law lawsuits up to <br /> $20,000. The annual premium for Open Meeting Law coverage, through LMCIT, is $536. <br /> I Exeess Liability Coverage <br /> The City last considered this coverage in January, 1994. The City has historically carried Excess <br /> Liability Coverage in the amount of $1 ,600,000. This includes the statutory limit of $600,000 <br /> I plus an additional $1,000,000. In 1994 the Council elected to waive the monetary limits on tort <br /> liability established by MN Statutes. The rationale behind the Council's decision was any <br /> coverage beyond the basic $600,000 was an acceptance of liability beyond the statutory <br /> I limitation of $600,000. The assumption was the maximum the City would be liable for was <br /> $600,000. <br /> I The attached documentation supports the comments of Mr. Lenz that the liability limit under MN <br /> Statutes is $600,000. However, the City is exposed to some kinds ofliability to which the <br /> statutory limits either do not or may not apply. One example is Federal civil rights claims or <br /> I claims made under Federal jurisdiction. By waiving the monetary limit the City actually was <br /> stating the higher coverage limits would be available for all claims, including claims to which the <br /> it statutory liability limits would have applied. <br /> I <br />