01-08-07 Full Agenda Packet - Laserfiche WebLink

Home Browse Search

. .~ /],\~}-IILLS l\'IEMORANDUM DATE: January 3, 2007 Agenda Helll 3.S. TO: Honorable Mayor and City Council Members Michelle Wolfe, City Administrator FROM: Schawn Johnson, Assistant City Administrntor SUBJECT: Resolution No. 07-18: Accepting the Liability Coverage I.imits from the League of Minnesota Cities Insurance Trust (LMCIT) Back2;round: Minnesota Cities that obtain liability coverage through the League of !vlinnesota Citics must decide annually whether or not to waive the City's property insurance statutory tort liability limits. Based upon the recommendation of the City's insurance vendor (T.e. Fields and . Company), City staff is recommending that the City docs not waivc the statutory tort limits. By not waiving thc statutory tort limits, an individual claimant to the City would be able to recovcr no morc than $300,000 on any claim which the statutory t0l1 limits apply. The total which all claimants would bc able to receivc for a single occurrence would bc $1,000,000. If the City Council would dccide to waive the statutory tort limits on the City's liability coverage, a single claimant could potentially recover up to $1,000,000 for a single occurrence involving thc City. The total which all claimants would be ablc to receive for a single OCCUlTencc would remain at $1 ,OOO,()()O. In past years, the City Council has agrced to waive the statutory tort limits on the City's liability insurance in ordcr to minimize the City's financial risk in case of property damage that is deemed to he caused by the City of Ardcn Hills. City Staff Recommendation- City Council Approval of Resolution No. 07-18: Accepting the Liability Coverage Limits (I'om the Leaguc of Minnesota Cities Insurance Trust (LMCIT) .