HomeMy WebLinkAbout4B, Accepting the Liability Coverae Limits from the League of M�-
EN HILLS
Request for Council Acti�on
Prepared By: Sue Iverson, Council Meeting Date: December b, 20I0
Director of Finance and Admin Sery
Accepting the Liability Coverage Li�nits from the League of Minnesota Cities �nsurance
Trnst (LMCIT} for 2011
Budgeted Amount: Actual Amount: �unding Source:
N/A N/A NIA
Recornrr�endation:
1. A motion to approve Resolution 2010-071, regarding no-waiver of the statutory
liability limits and accepting t�e liability co�erage limits from the League of
Minnesota Ci#ies Insurance Trust {LMCIT) for 2011.
5up�ortin� Documents:
1. See the attached memo from Sue Iverson dated December �, 201 Q
2. Resolution 2010-071
3. Liability co�erage Wai�er Foz�a
�
EN HYLLS
MEMOR�NDUM
DATE: December 6, 2010
TO: Honorable Mayor and Ci�r Cauncii Members
Patrick Klaers, City Ad�inistratox
FROM: Sue Iverson, Director of Finance and Administrative Services
SUBJECT: Resoluiion 2010-071: Resolutian Accepting the Liability Caverage Limits
frozn fihe League of Minnesota Cities Insurance Trust (LMCIT) for 2011
Background
Each year the City Council is required to decide whether or not to waive the statutory tort
liability limits to the extent of the coverage purchased. In past histor�, the Ciiy has not
waived the monetary limits on municipal tort liabiliry established by Minnesota Statutes
46b.04. (This would zx�ean that the City accepts liability cavearage lirnits of $2,500,000.)
Cou.ncil Action
A motion to approve Resolution 2010-071, r�garding no-wai��r of the statutory liability
limits and accepting the liability coverage �imits frorn the League of Minr�esota cities
Insurance Trust {LMCIT) for 2011.
city councfl Meeting
11Metrainet.uslardenhi11s1AdminlCouncillAgendas & Packet Information12010112-6-10 TNT & Closed
Mtg14B 2010 Liability_Coverage_Limits-Memo.doc
Page 1 of 1
EN HILLS
CITY OF ARDEN HILLS
COUNTY �F RAMSEY
STATE OF M�NNESOTA
RESOLUTION No. 2010-071
Accepting the Liability Coverage Limits from the
League of Minnesota Cifies Insurance Trust (LMCIT}
WHEREAS, the City of Arden Hills DQES NOT WAIVE the monetary limits on
municipal tort liability established by Minnesata Statutes 466.04,
THEREFORE, BE IT RESOLVED: The Ci€y of Arden Hiils accepts lfability coverage
limits of two million, five hundred ihousand dollars and zero cents {$2,500,400.00) from the
League of Minnesota Cities Tnsurance Trust (LMCIT) for calendar year 20� 1.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS
6th DAY OF DECEMBER, 2010.
Stanley D. Harpstead, Mayor
ATTEST:
Patrick Klaers, City Admi�istxator
SECTEON 1: LfABILI�'Y COV�RAGE WAIVER �ORM
Cities obtaini�g lisbility coverage from the �eague of Minnesota Cities �nsurance Trust must decide whe#her or not to
waive the staf�tory fa�t liabifity lit-ni#s to the extent of the coverage purchased. The decision to waive or not io wai�e
th� statuiory li�'nits E�as the follawir�g effects:
o!f the city does not warve fhe siafufory tar# limits, an �ndivid�al claimant would be a�le fo recover no rnore than
$�00,0(}a. on any claim to whici� #he statu#ory #ort iimits app{y. The totaf which aI{ clairnants waulcE be able to
recover for a�ingfe accurrenee to whicE� the staiuiory tort limits appty woufd be limited to $�,50Q,000. Thes�:
sta#u#ary tort limits would apply regardless of whether or not the city purc�ases the o�tional excess liability
co�erage.
a!f the city waives the sfafutory torf limits and does not purchase excess liabiliiy coverage, a singie clairnanf coulcE
potentiafly recoWer up io $'� ,5QD,�00. oR a single occurrence. The tataf which al1 claimants woulrf be able to
r�cover fot a singie occurrer�ce to which �he statutory tort limifs apply would also be lirnited to $1,500,000_,
regarclEess o# the number af claiman#s.
a� If fhe city waives fhe stafutory iort limiis and purchases excess liabiliiy coverage, a singfe claiman# could
poientialiy recover an amounf up to the limit af the coverage p�rchased. The totaf wl�ict� all claimants woulci be
able io reco�er for a single occurrence to whFcfi� the statutory tort limits appiy wouid also be limited to the amount
of covera�e purchasecf, regardless a� the number of claimants.
Claims to which tF�e st,�tu#nry m�nicipal tor� limits do not apP1y are not af�ectec! by this decision.
This tiecision must 6e made by the city co�ncil. Cities purchasing coverage must complete and return khis form
to �MCIT before the effective date o€ ihe co�erage. For f�rther information, contact �MCIT. You may also wish
to discuss #hese issues witf� yo�r c�#y attorney. .
C� �� accepts [iability ca�erage iimits of $� i 5� � D� from th� Leaglie af Minnesoia
Citie lnsurance �rust {LMCIT).
Che�k one_ -
F� The city DOES NOT WAIV� the monetary limits or� municipai to[t liabili#y estabGshed by Minnesota Statutes
466.04_
❑ The city WAl4`�S the monetary lirnits on torE �iabili#y estabiished by Minr�esota Statutes 468.04, to the
extent of the limits of the fiabil�ty coverage obtained from LMCIT.
Date of city council meeting
Sigr�ature ' Pnsiiian '
Reiurn this completed form Co LMCIT, 145 UniversityAve. W., St. Paul, MN. 55iO3 2044
Pa�e. �6