3.4. SR 05-15-2006
City of Ell< River
REQUEST FOR COUNCIL ACTION
Agenda Section Meeting Date
Consent Ma 15, 2006
Item Description
Authorize Payment to League of MN Cities Insurance Trust for
Deductible and Coinsurance
Item Number
3.1f*
Prepared by
Lori ohnson, Ci Administrator
Reviewed by
Introduction
The League of MN Cities Insurance Trust (LMCIT) successfully defended the city in a lawsuit
against the city by the Builders Association of Twin Cities, et al. The coverage included a $2,500
deductible and 15 percent co-pay on litigation costs over $25,000.
Discussion
The LMCIT has submitted an invoice to the city in the amount of $20,661.12, of which $2,500 is
the city's deductible and $18,161.12 is the 15 percent co-pay on litigation costs exceeding $25,000.
The total litigation cost incurred is $146,074.18.
Financial Impact
Payment of $20,661.12 from the insurance reserve fund, which currently has a cash balance of
$620,845.
Attachments
Action Requested
Authorize payment of $20,661.12 to LMCIT.
Council Action
Motion by _
Second by _
Vote
Follow Up
S:\Council\Lori\2006\lmncit BA Lawsuit Payment. doc