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Home My WebLink About4F Request for Council Action Prepared By: Dept.: Council Mtg. Date: Final Action Needed By: Sue Iverson i=ii1iirlce Agenda 4.F. J.a..n..~~ry.1~L2008n January 14, 2008 Budgeted Amount Actual Amount Funding Source:___ _______________ rG_91:j_h~Jrt~-~ng:al;,E{~:g-y_~~lmETG-_\.:H.r,.:;;r-zn_nnzE:1:iii.,__.,..,."""'''....'.'.'.nnn__nn_nnn__nn_n_nnn_nnn_nn_n_m.._._._..,._.._.,.'''......''''_''_'...'_n__m_nnn_nnnnn_nnnnn_________________.__________.."._.''''.''.'''''''_''. iMotion to approve Resolution 2008-002, accepting liability coverage limits from the League of Minnesota Cities Insurance Trust. ;:Sfc)'ffn~eQQHfrf{gfi'8~'ij-Q-h;C(W'T;:Tm:t-;nT;:~F'~i7Ci !S'taff',:eco'mmendsihiit"i"he'courl"cTf'a,iproveReSOll.ltion -2008~002.-acceptingHabnjty-c:overage-nmIis--fromThe Lea-g-ue-of-Minne-s6t~i-Ciiies- i Insurance Trust. x X Memorandum from Sue Iverson No.: No.: Recommendation: 2008.002 Recommendation: League of Minnesota Cities Insurance Trust Liability Coverage Waiver Form ~ ~HILLS MEMORANDUM DATE: January 14, 2008 TO: Honorable Mayor and City Council Members FROM: Sue Iverson, Finance Director SUBJECT: Resolution 2008,002: Resolution Accepting the Liability Coverage Limits from the League of Minnesota Cities Insurance Trust (LMCIT) 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 history, the City does not waive the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. Staff Recommendation Staff recommends a motion to approve Resolution 2008-002, accepting the liability coverage limits from the League of Minnesota Cities Insurance Trust (LMCIT). New statutory limits are effective on January I, 2008; these are included in the resolution and the insurance documentation. \\Metro~inet\ardenhills\Admjn\Assjstant City Administrator\NoahVan 14 Council\2008 Insurance Liability Memo.doc ~ ~HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION No. 2008-002 Accepting the Liability Coverage Limits from the Leagne of Minnesota Cities Insnrance Trust (LMCIT) WHEREAS, the City of 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, two hundred thousand dollars and zero cents ($2,200,000.00) from the League of Minnesota Cities Insurance Trust (LMCIT) for calendar year 2008. ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS 14th DAY OF JANUARY, 2008. Stanley D. Harpstead, Mayor ATTEST: Noah A. Simon, Deputy Clerk LEAGUE OF MINNESOTA CITIES INSURANCE TRUST LIABILITY COVERAGE - WAIVER FORM Cities obtaining liability 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 Dr not to waive the statutory tort limits has the following effects: . If the city does not waive the statutory torllimits, an individual claimant would be able to recover no more than $400,000 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 $1,200,000. These statutory tort limits would apply regardless of whether or not the city purchases the optional excess liability coverage. · If the city waives the statutory torllimits and does not purchase excess liability coverage, a single claimant could potentially recover up to $1,000,000 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 $1,000,000, regardless of the number of claimants. . If the city waives the statutory torllimits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. 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 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 city council. Cities purchasing coverage must complete and return this form to LMCIT before the effective date of the coverage. For further information, contact LMCIT. You may also wish to discuss these issues with your city attorney. City of Arden Hills accepts liability coverage limits of $2,200,000 from the League of Minnesota Cities Insurance Trust (LMCIT). Check one: [2;;l The city DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04 o The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of city council meeting Signature/Date Position Return this completed form to LMCIT, 145 University Ave. W., SI. Paul, MN 55103,2044 LMCIT (11/00)(Rev. 12107) LEAGUE OF MINNESOTA CITIES INSURANCE TRUST LIABILITY COVERAGE - WAIVER FORM Cities obtaining liability 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~ive or not to waive the statutory limits has the following effects: <i{)() t 60-1) /lfeoJ ~'6 5mfuf.vry /iyYJ;t-- " If the cit oes nof waive the sfatutory tort limits, an individual claimant would be able to recover no more th $""1),999.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 li~ $4.60u,uuu. These statutory tort limits would apply regardless of whether or not the city 'fl~ 000 ......-purcha$es the optional excess liability coverage. ~.~~ S/zJ.tJ>tY" If the city waives the statutory tort limits and does not purchase excess liability coverage, a single l!ivD . claimant could potentially recover up to $1,000.000. on a single occurrence. The total which all llVV',t. claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to $1,000,000., regardless of the number of claimants. If the city waives the statutory tort limits and purchases excess liabilify coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. 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 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 city council. Cities purchasing coverage must complete and return this form to LMCIT before the effective date of the coverage. For further information, contact LMCIT. You may also wish to discuss these issues with your city attorney. Citv of Arden Hills accepts liability coverage limits of $ cJ I ;).{X), COO from the League of Minnesota Cities Insurance Trust (LMCIT). ' Check one: ~ The city DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. o The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of city council meeting SignaturelDate Position Return this completed form to LMCIT; 145 University Ave. w., St. Paul, MN. 55103.2044 LMCIT (11100)(Rev. 11103) Page lofl