HomeMy WebLinkAbout5B, Resolution 2012-003 - Accepting the Liability Coverage Limits from the LMCIT for 2012�
�SR�EN�HILLS
Request for Council Action
Prepared By: Sue Iverson, Council Meeting Date: January 9, 2012
Director of Finance and Administrative Services
Accepting the Liability Coverage Limits from the League of Minnesota Cities Insurance
Trust (LMCIT) for 2012
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Recommendation:
1. A motion to approve Resolution 2012-003, regarding no-waiver of the statutory
liability limits and accepting the liability coverage limits from the League of
Minnesota Cities Insurance Trast (LMCIT) for 2012.
Supportin� Documents:
1. See the attached memo from Sue Iverson dated January 9, 2012.
2. Resolution 2012-003.
3. Liability Coverage Waiver Form.
�
EN HILLS
MEMORANDUM
DATE: January 9, 2012
TO: Honorable Mayor and City Council Members
Patrick Klaers, City Administrator
FROM: Sue Iverson, Director of Finance and Administrative Services
SUBJECT: Resolution 2012-003: Resolution Accepting the Liability Coverage Limits
from the League of Minnesota Cities Insurance Trust (LMCIT) for 2012
Back�round
�ach 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 history, the City has not
waived the monetary limits on municipal tort liability established by Minnesota Statutes
466.04. (This would mean that the City accepts liability coverage limits of $2,500,000.)
Council Action
A motion to approve Resolution 2012-003, regarding no-waiver of the statutory liability
limits and accepting the liability coverage limits from the League of Minnesota Cities
Insurance Trust (LMCIT) for 2012.
City Council Meeting
P:�Admin\Council�Agendas & Packet Information�2012\01-09-12 Reg Mtg�Packet
Information�2,012 Liability_Coverage_Limits.doc
Page 1 of 1
�. EN HILLS
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION No. 2012-003
Accepting the Liability Coverage Limits from the
League of Minnesota Cities Insurance Trust (LMCIT)
WHEREAS, the City af Arden Hills DOES NOT WAIVE the monetary limits on
municipal tort liability established by Minnesota Statutes 466.04,
THEREFORE, BE IT RESOLVED: The City of Arden Hills accepts liability coverage
limits of two million, five hundred thousand dollars and zero cents ($2,500,000.00) from the
League of Minnesota Cities Insurance Trust (LMCIT) for calendar year 2012.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS
9th DAY OF JANUARY, 20ll.
David Grant, Mayor
ATTEST:
Patrick Klaers, City Administrator
SECTION I: LIABiLITY COVERAGE WAIVER FORM
Cities obtaining liabili#y coverage from the League of Minnesota Cities Insurance Trust must decide
whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. The
decision to waive or not to waive #he statutory limits has the following effects:
�, If the city does not waive the statutary tort limits, an individual claimant would be able to recover no
more than $500,000. on any claim to which the statutory tort limits apply. The total which all claimants
would be able to recover for a single occurrence to which the statutory tort limits apply would be
limited to $1,500,000. These s#atutory tort limits wauld apply regardless of whether or not the city
purch�ses the optional excess liability coverage.
_ If the city waives the statutory tort limits and does not purchase excess liabilify coverage, a single
claimant could potentially recover up to $1,500,000. on a single occurrence. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to $1,500,000., regardless of the number of claimants.
�!f the city waives ths statutory tort limits and purchases excess liability coverage, a single claimant
could poten#ially recover an amount up to the limit of the coverage purchased. The total which all
claimants would be able to recover for a singls occurrence to which the statutory tort limits apply would
also be limited to the amount of coverage purchased, regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
This decision must be made by the Gity council. Cities purchasing caverage must complete and
return this farm to LMCIT before the �ffective date of the covsrage. For further information, contact
LMGIT. You may also wish to discuss these issues with your city attorney.
�� ��1 �'1 � �.5 accepts liability coverage limits of $ a�S6D� (�GYi from the League of
Minnesota Cities Insurance Trust (LMCIT).
Check one:
�The city DOES NOT WAN� the monetary limits on municipal tort liability established by
Minnesota Statutes 466.04.
� The city WAIVES the monetary limits on tort liability established by Minnesota Statu#es 466.04,
to the extent of the limits of the liability coverage obtained from LMCIT,
Date of city council meeting
Signature
Position
Return this completed form to LMCIT, 14S UniversityAve. W., St Paul, MN. SS103-2044