2.6. ERMUSR 05-20-2014 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Theresa Slominski, Finance and Office Manager
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
May 20, 2014 2.6
SUBJECT:
Resolution Electing Not to Waive Statutory Tort Limits for Liability Insurance
BACKGROUND: The League of Minnesota Cities Insurance Trust(LMCIT) requires annual
approval of the Utilities' intent to waive or not waive the statutory limits on tort liability as set
forth in Minnesota Statutes.
DISCUSSION: Attached is the memo and supporting documentation that went to the City
Council 4/21/2014 to elect not to waive the statutory limits. I have no reason to recommend that
the Utility not follow the same direction. Last year we followed the same process and did not
waive the limits.
ACTION REQUESTED:
Staff recommends that the Elk River Municipal Utilities Commission elect to not waive the
statutory tort limits for liability insurance,per the attached resolution and LMCIT form.
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RF P O W E R E D Page 1 of 1 NATURE
Reliable Public
Power Provider P O W E R E D To S E R V E
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SECTION I:LIABILITY COVERAGE WAIVER FORM
Cities obtain', liability coverage from the League of Minnesota Cities Insurance Trust must decide
whether or n• to waive the statutory tort liability limits to the extent of the coverage purchased. The
decision to , e or not to waive the statutory limits has the following effects:
• If the city••- not waive the statutory tort limits,an individual claimant would be able to recover no
more thanE 500,000.on any claim to which the statutory tort limits apply. The total which all claimants
would be ble to recover for a single occurrence to which the statutory tort limits apply would be
limited to ,1,500,000. These statutory tort limits would apply regardless of whether or not the city
purch-- the optional excess liability coverage.
• If the city =Ives the statutory tort limits and does not purchase excess liability coverage,a single
claimant •r∎uld potentially recover up to$1,500,000.on a single occurrence. The total which all
claimants C Id be able to recover for a single occurrence to which the statutory tort limits apply would
also be Ii ited to$1,500,000.,regardless of the number of claimants.
G If the city! ,Ives the statutory tort limits and purchases excess liability coverage,a single claimant
could po 1 dally recover an amount up to the limit of the coverage purchased. The total which all
claimants 1 ould be able to recover for a single occurrence to which the statutory tort limits apply would
also be li ited to the amount of coverage purchased,regardless of the number of claimants.
Claims to wh the statutory municipal tort limits do not apply are not affected by this decision.
This decisio must be made by the city council. Cities purchasing coverage must complete and
return this f.rm to LMCIT before the effective date of the coverage. For further information,contact
LMCIT. You I ay also wish to discuss these issues with your city attorney.
ELK RIVER �,i i CIPAL ;Spp,l]Od League 1 accepts liability coverage limits of$ from the Lea ue of
Minnesota C es Insurance Trust(LMCIT).
Check one:
❑ The .:ty DOES NOT WAIVE the monetary limits on municipal tort liability established by
Mi -sota Statutes 466.04.
VC❑ The .' WANES the monetary limits on tort liability established by Minnesota Statutes 466.04,
to th I i extent of the limits of the liability coverage obtained from LMCIT. .
Date of city • ncil meeting
Signature I Position
eted form to LMCIT;145 Univers�IyAve. W,St Paul,MN.55103-2044
Return this pl ,
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COVENANT NUMBER:CMC 34480
COMPREHENSIVE MUNICIPAL COVERAGE
WAIVER OF STATUTORY LIABILITY
LIMITATIONS ENDORSEMENT
In consideration of the additional premium paid by the city,Section VI-Conditions,paragraph 6,is deleted and
is replaced by the following:
6. STATUTORY LIABILITY LIMITATIONS AND IMMUNITIES
a. It is the express intent of the city and of LMCIT that for any claim to which this covenant applies,the
monetary limits of liability provided by Minnesota Statute 466.04 are waived to the extent of the limits
of coverage shown in the declarations and further described in Section III-Limits of Coverage. This
waiver shall not apply to any claim not covered under this covenant, and shall not affect any
limitations which may apply by virtue of any other statute or common law.
b. It is the express intent of the city and of LMCIT that the procurement of this covenant shalt not waive
any other immunities,limitations,or defenses imposed by or available under any statute or common
law which is applicable to any covered party.
All other terms and conditions remain unchanged.
LMCrT ME073(11/97)(Rev.11/01)
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