HomeMy WebLinkAbout4D, Motion to Adopt Resolution 2008-054
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~ILLS
Request for Council Action
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Prepared By: Sue Iverson, Finance Director
Council Meeting Date: December 8, 2008
Adopt Resolution 2008-054, a resolution accepting the liability coverage limits
from the League of Minnesota Cities Insurance Trust (LMCIT) for 2009.
Budgeted Amount:
None
Actual Amount:
None
Funding Source:
None
Supporting Documents:
1. See the attached memo from Sue Iverson dated December 8, 2008
2. Resolution No. 2008-054
3. Liability Coverage Waiver Form
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~HILLS
MEMORANDUM
DATE: December 8, 2008
TO: Honorable Mayor and City Council Members
FROM: Sue Iverson, Finance Director
SUBJECT: Resolution 2008-054: Resolution Accepting the Liability Coverage Limits from
the League of Minnesota Cities Insurance Trust (LMCIT) for 2009
Ba~kflround:
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 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 $2,200,000.)
Recommended Action:
Motion to approve Resolution 2008-054, regarding no-waiver of the statutory liability limits and
accepting the liability coverage limits from the League of Minnesota Cities Insurance Trust
(LMCIT) for 2009.
\\Metro-inet.us\ardenhills\Admin\Office Support Specialist\Support_ 4-Sherri\2008\2009 Insurance Liability Memo,doc
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. ~NfIILLS
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION No. 2008-054
Accepting the Liability Coverage Limits from the
League of Minnesota Cities Insu,rance 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 2009.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS THIS
8th DAY OF DECEMBER, 2008.
Stanley D. Harpstead, Mayor
ATTEST:
Ronald J. Moorse, City Administrator
SECTION I: 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 or not to waive
the statutory limits has the following effects:
o If the city does not waive the statutory tort limits, 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.
o If the city waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could
potentially recover up to $1,200,000. 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 $1,200,000.,
regardless of the number of claimants.
o If the city waives the statutory tort limits 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 H ills accepts liability coverage limits of $ ~ I ~OO I DO D
of Minnesota Cities Insurance Trust (LMCIT).
from the Leag ue
Check one:
~ The city DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes
466.04.
D 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
Position
Return this completed form to LMelT, 145 University Ave. ~/ St Pau~ MN. 55103-2044
61.P a g