HomeMy WebLinkAbout4F, Accepting Liability Coverage Limits from LMCIT for 2010EN HI
LLS
Re u e f r n i '
q
st o Cou c 1 Act�on :
Prepared By: Sue Iverson,
Finance Director/Treasurer : Council Meeting Date: November 9, 2009
Accepting the Liability Coverage Limits from the League of Minnesota Cities Insurance
Trust (LMCIT) for 2010
Budgeted Amount: Actual Amount: Funding Source:
N/A N/A N/A
Recommendation:
1. A motion to approve Resolution 2009-032, regarding no-waiver of the statutory
liability limits and accepting the liability coverage limits from the League of
Minnesota Cities Insurance Trust (LMCIT) for 2010.
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Supportin� Documents:
1. See the attached memo from Sue Iverson dated November 9, 2009
2. Resolution 2009-032
3. Liability coverage Waiver Form
�;.� EN HILLS
MEMORANDUM
DATE: November 9, 2009
TO: Honorable Mayor and City Council Members
Ron Moorse, City Administrator
FROM: Sue Iverson, Finance Director/Treasurer
SUBJECT: Resolution 2009-032: Resolution Accepting the Liability Coverage Limits
from the League of Minnesota Cities Insurance Trust (LMCIT) for 2010
Back�round
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 $2,500,000.)
Council Action
A motion to approve Resolution 2009-032, regarding no-waiver of the statutory liability
limits and accepting the liability coverage limits from the League of Minnesota cities
Insurance Trust (LMCIT) for 2010.
City Council Meeting
\�1Vletro-inet\ardenhills�Admin\Council�Agendas & Packet Information\2009\11-09-09 Regular�.Packet
Information\2010_Liability_Coverage_Limits. doc
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CITY OF ARDE�T HILLS
COU�TTY OF RAMSEY
STA�'E O� 1VIINNESOTA
RES4LUTION No. 20fl9-032
Accepting the Liability Coverage Limits from the
League of Minnesota Cities Insurance Trust (LIVICIT)
WHEREAS, the City of Arden Hills DOES NOT WAIVE the �nonetar� �imits on
municipal to�t liability establ�shed by Minnesota Statutes 46b.�4,
THEREFORE, BE IT RES4LVED: The City of Arden Hilis accep�s �iabiliiy coverage
limits of two million, f ve �undred thousand dollars and z�ro cents ($2,SOO,O�O.00j from ihe
�eague o f Minnesota Cities Insurance Trust (LIVICIT) for ca�endar year 2010.
ADOPTED BY THE CITY CUI�NCIL OF THE CITY OF ARDEN HILLS THIS
9th DA'Y OF NO�E�VIBER, 2009.
Stanley D. �Iarpstead, Mayor
ATTEST:
Ronald J.1Vloorse, City Administrator
SECT[ON (: ttA81L1TY COVERAGE 1NA�VER F4RM
C��ies obtaining liability cover�ge from fhe �eag�e o� Nlinn�sota Ci#�es �ns�ranc� �rust must decide whether �r not t�
waive the sta#�tory tor� liabi�i�y �i�nits to the extent of the coverage purchased. The decision to waive o� �a� �o waive
�he sta�utory 1im�ts �as �he fo�lo�v�ng e�#ects:
D lf the city does not walve �he statutory tort limits, an individual claiman# would be able to recover r�fl r-no�e ��a�
$50�,04�. on any claim to w�ic#� #he s�atutory �ort �imits apply. The to#a1 whi�h aii cfaimants wou�d be ab�e t�
r£'�QL�P.�' �Qi" 3 cin�1�: 0��� �r!"��1C�' �� !",!�';l�'�' ��"'e ���u}i�t^ry tQt`� �'�1��5 ���� y�l'J��,� u� ��,';;3��u �v^ y�� ,�vv,��iv. i i ic.�,�c
• ..... . . .,... v , . c t t
statu#ory #ort limits would app�y regardless of w�eth�r or �ot ��e �ity purchases the optiflnal excess liability
c�verag�.
n If the city v�aiv�s the stat�tor� tort Iimits and does not purchase excess �iability coverage, a sir�g�e claiman� co�Id
potentia�ly re�over up #o $� ,500,0�0. on a s�ngle occurrence. The �otal w�ich ai� claiman�s would be able to
recover for a single �ccurrenc� �o �v�ic� tt�e sta#u#�ry tort lim�ts apply vvould a�so be �irnited to $�,5Q0,0�0.,
regar�less of tne number of �1ai�nants.
D 1f tfie city waives the statutory tort Iir�its ar�d p�rc�rases excess liabi/ity cove�age, a single clai�nant could
�o#en�ially fiecaver ar� amount up �o t�e Iimit of the coverage purchased. The tota� w�ich all cfaimants would be
ab�e to recove� for a single occur�ence to v�rhic� �he s#atuto�y �ar# limits apply wauld �isa be �irrai��d to the �moa�nt
af coverage pc�rchased�, �-egard�ess o� t�e number of ciaimants.
C1a�ms to vvh�ch �he s#��tu#ory r�unicipa� tort lirnits do r�ot apply are not �ffec#e� �y tnis decision.
T#�is dec�sion m�st be made by the c�ty council. Cities purchasing coverage r�ust compt�te and return #his forrYa
to LMC�T before the effective date of �he coverage. For �urther i►�forrnation, con�act LMC�T. You may also w�sh
to discuss #hese �ssues v�rith your ci#y at#orney.
�
� � " c�� � acce ts � iabil it � ���� - �
p y coverage i�m�ts of $ � ���� from the League of Nl�nnesota
Citie lnsu�ance Trust. �LNlClT).
Cf�e k one; ,
T�e city D4ES �14�" il1lA�V� the �nonetary �imixs on rr�unicfpa� t�or� liability establ�s�e� by IUli�neso#a S�at�#es
456.04.
�=
The cii}r WA11►"ES the mone�ary 1i�i#s on #ort �iabil�ty es#abiished by 1Vlinr�eso�a Statutes 4��.04, to �he
exten# of the limi#s of #h� �iability coverage ob�ained from �.MC�T.
Date of city cour�cii �eeting
Si na�ure -- .
9 Position
Retr�rn this corr�pleted form to LN�CIT, 14� University A ve, �/, S�`. Paul, NIlii. .5�103 2044
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