4.10. SR 04-20-2015 �j
Elk = - Request for Action
River
To Item Number
Mayor and City Council 4.10
Agenda Section Meeting Date Prepared by
Consent Aril 20, 2015 Lori Ziemer,Asst. Finance Director
Item Description Reviewed by
Annual Election Not to Waive the Statutory Tort Tim Simon, Finance Director
Limits for Liability Insurance Peter Beck, City Attorney
Reviewed by
Cal Portner, City Administrator
Action Requested
Elect, by motion, not to waive the statutory tort limits for liability insurance.
Background/Discussion
The city secures its liability, property, casualty, automobile and workers compensation insurance coverage
through the League of Minnesota Cities Insurance Trust (LMCIT). 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 City 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 and the total for a single
occurrence would be limited to $1,500,000 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 $2,000,000 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 City Council approved 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 0 W I R E a 0
NA UREJ
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:APublic Bodies\Agenda Packets\0420-2015\Final\x4.10 sr Liab Ins Waiver Election.docx
4 , ,_
WFIEES, 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.
ATTEST:
Tina Allard, City Clerk
01 n J. Dietz, May r
NAPublic Bodies \Agenda Packets \06 -03 -2013 \Final \Done \x4.7 atl.doc