4.3 SR 04-05-2021Request for Action
To
Item Number
Mayor and City Council
4.3
Agenda Section
Meeting Date
Prepared by
Consent
April 5, 2021
Lori Ziemer, Finance Director
Item Description
Reviewed by
Electing Not to Waive the Statutory Tort Limits for
Reviewed by
Liability Insurance
Action Requested
Elect, by motion, not to waive the statutory tort limits for liability insurance.
Background/Discussion
The City of Elk River secures its liability, property, casualty, automobile, and workers compensation insurance
coverage through the League of Minnesota Cities Insurance Trust (LMCIT). As a condition of renewal, the city
must annually execute a "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, and individual claimant would be able to
recover no more the $500,000 on any claims 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 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.
Financial Impact
N/A
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional,` 01 e
service, and community engagement that encourages and inspires pi ospei ly INAMIRE1
Mission/Policy/Goal
To appropriately govern in an ever -changing environment.
Attachments
■ Resolution 13-34 Election Not To Waive The Statutory Tort Limits For Liability Insurance
N:APublic Bodies\Agenda Packets\ 04-0 5-202 1 \Final\ x4.3 sr Elect Not to Waive Staurtoic Tort Lnnns.docx
WFIEES, The City of Elk River participates in the League of Minnesota Cities
Insurance Trust (LMCIT) insurance program; and
161E 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 RESOLVEDthat 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