2.3 ERMUSR 04-12-2022RESOLUTION NO. 22-6
BOARD OF COMMISSIONERS
ELK RIVER MUNICIPAL UTILITIES
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF ELK RIVER MUNICIPAL UTILITIES
ELECTING NOT TO WAIVE THE STATUTORY TORT LIMITS FOR LIABILITY INSURANCE
WHEREAS, Elk River Municipal Utilities (Utilities) participate in the League of Minnesota Cities
Insurance Trust (LMCIT) insurance program; and
WHEREAS, The 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;
WHEREAS, The Utility has evaluated whether to waive the limit of tort liability, andwhether to
purchase excess liability coverage from the LMCIT.
NOW, THEREFORE, BE IT RESOLVED that the Elk River Municipal Utilities of the City of Elk River
elects to notwaive the statutory tort liability limit established by Minnesota Statute
466.04.
th
day of April 2022.
This Resolution Passed and Adopted this 12
John Dietz, Chair
Theresa Slominski, General Manager
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LIABILITY COVERAGE – WAIVER FORM
Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust
(LMCIT) must complete and return this form to LMCIT before the member’s effective date of
coverage. Return completed form to your underwriter or email to pstech@lmc.org.
The decision to waive or not waive the statutory tort limits must be made annually by the
member’s governing body, in consultation with its attorney if necessary.
Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort
liability limits to the extent of the coverage purchased. The decision has the following effects:
If the member does not waive the statutory tort limits, an individual claimant could recover no more
than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could
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 the member purchases the optional
LMCIT excess liability coverage.
If the member waives the statutory tort limits and does not purchase excess liability coverage, a single
claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap
liability limits are only waived to the extent of the member’s liability coverage limits, and the LMCIT
per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to
which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of
claimants.
If the member 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. The total all claimants
could recover for a single occurrence to which the statutory tort limits apply would also be limited to
the amount of coverage purchased, regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
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LMCIT Member Name:
__________________________________________________________________________
Check one:
o The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn.
5
Stat. § 466.04.
o The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. §
466.04, to the extent of the limits of the liability coverage obtained from LMCIT.
Date of member’s governing body meeting: _____________________________________________
Signature: Position: ________________________________
2
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UTILITIES COMMISSION MEETING
TO: FROM:
ERMU Commission Tony Mauren – Executive Administrative Manager
MEETING DATE: AGENDA ITEM NUMBER:
April 12, 2022 2.4
SUBJECT:
ERMU’s Tom Bovitz Memorial Scholarship Award Winner
ACTION REQUESTED:
None
BACKGROUND:
On January 8, 2013, the Utilities Commission approved ERMU’s participationin the Minnesota
Municipal Utilities Association (MMUA) Tom Bovitz Memorial Scholarship. This award program
is offered by MMUA to promote public power and increase goodwill within public power
communities. High school seniors that are a customer or have a legal guardian that is a
customer of ERMU are eligible to apply. At that time, the ERMU Utilities Commission also
approved annuallyawarding a local winner a $500 scholarship.
DISCUSSION:
Staff advertised and promoted the scholarship through local high schools, social media, and
ERMU’s website. The attached, winning essay is a great example of the goal of the scholarship,
providing an opportunity to educate our customers and community about the advantages of
public power.
This essay will now be forwarded on to MMUA judges for a chance to win an additional $500,
$1000, $1500, or $2000 through their scholarship program.
Following MMUA’s scholarship award, the local winner will be invited to the May 10
Commission meeting to be formally recognized as the winner of ERMU’s 2022 Scholarship.
FINANCIAL IMPACT:
$500 budgeted item.
ATTACHMENTS:
Essay - Tom Bovitz Memorial Scholarship - Schmertman
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