4.9. SR 04-21-2014 City of
Elk=' Request for Action
River
To Item Number
Mayor and City Council 4.9
Agenda Section Meeting Date Prepared by
Consent Aril 21, 2014 Lori Ziemer,Asst. Finance Director
Item Description Reviewed by
Electing Not To Waive The Statutory Tort Limits Tim Simon, Finance Director
For Liability Insurance Peter Beck, City Attorney
Reviewed by
Cal Portner, City Administrator
Action Requested
Elect,by motion,to not waive the statutory tort limits for liability insurance.
Background/Discussion
The City of Elk River participates in the League of Minnesota Cities Insurance Trust (LMCIT) for the
purpose of securing its liability,property, casualty, automobile, and workers compensation insurance
coverage. As a condition of insurance policy renewal the city must annually execute an "LMCIT Liability
Coverage Waiver Form" and:
1. Determine whether to waive the statutory liability limits; and
2. Determine whether to acquire excess liability insurance coverage.
As established by Minnesota Statute 466.04, the statutory liability limits for claims that occur after July 1,
2009, are $500,000 per claimant and$1,500,000 per occurrence.
Annually, the Council must review and make an election of one of the following three options (claims to
which the statutory municipal tort limits do not apply are not affected by this decision):
1. Not to waive the statutory tort limits—staff recommendation
■ If the city does not waive the statutory 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.
2. Waive the limits and not purchase excess liability coverage
■ If the city waives the statutory tort limits and does not purchase excess liability
coverage, a single claimant could potentially recover up to $1,500,000 on a single
occurrence.
3. Waive the limits and purchase excess liability coverage
■ 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.
On June 3, 2013, the Council adopted Resolution 13-34 electing not to waive the statutory tort limits for
liability insurance. This resolution allows the statutory tort limits to remain in place until the Council
changes this election. Again, staff recommends approving Option 1 not to waive the statutory limits.
P a w E R E U 6 Y
NaA f RE]
Financial Impact
The City maintains liability insurance coverage through the League of Minnesota Cities Insurance Trust in
the amount required by State Statute.
Attachments
■ Resolution 13-34 Electing Not To Waive The Statutory Tort Limits For Liability Insurance
N:\Public Bodies\Agenda Packets\04-21-2014\Final\x4.9 sr election to not waive tort liability limits.docx
RESOLUTION 13®. 34 ,
RESOLUTION THE CITY OF ELK RIVER
RESOLUTION ELECTING T TO WAIVE THE
STATUTORY T T LIMITS FOR LIABILITY INSURANCE
4
FI E REAS, The City of Elk River participates in the League of Minnesota Cities
Insurance Trust (LMCIT) insurance program; and
I°IE REAS, The LMCIT requires annual approval of the city's intent to waive or not
waive the statutory limits on tort liability as set forth in Minnesota Statutes;
and
WHEREAS, The City Council has evaluated whether to waive the limit of tort liability and
whether to purchase excess liability coverage from the LMCIT.
NOW, THEREFORE, IT RESOLVED that the City Council of the City of Elk
River elects not to waive the statutory tort liability limit established by Minnesota Statute
466.04.
Passed and adopted this V day of June 2013.
l
0",n J.Dietz, May r
ATTEST:
Tina Allard, City Clerk
NAPublic Bodies\Agenda Packets\06-03-2013\Final\Done\x4.7 atl.doc
I