ITEM 3.10 Liability Coverage Waivergo
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MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR.
MEETING DATE:
Finance
Finance Director Gary Groen
January 14, 2013
PRESENTER(s):
REVIEWED BY:
ITEM A
Consent Agenda
City Administrator Lori Johnson
3.10 Liability Coverage Waiver
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff recommends approval of the Liability Coverage Waiver Form as completed and attached.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
I
No
No
BACKGROUNDIJUSTIFICATION:
The City first purchased the Excess Liability insurance coverage in 2007 and has purchased the added
coverage each year since. This ratification of the coverage must be approved by the City Council and is
documented by the completion of the attached form. This form is completed annually with the
Insurance renewal documentation.
SUPPORTING DOCUMENTS: X ATTACHED n NONE
• Liability Coverage Waiver Form
MOTION: (Please word motion as you would like it to appear in the minutes.)
Approve the Liability Coverage waiver form as completed.
BUDGET INFORMATION
FUNDING: BUDGETED: X YES
General Fund I NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED o OTHER (List changes)
COMMENTS
SECTION xs LIA131LITY COVERAGE WAIVER FORM
Cities obtaining liability coverage from the League of Minnesota Cities insurance Trust must decide
whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. Tile
decision to waive or not to waive the statutory limits has the following effects:
13 If the city does not waive the statutoty toff 11rr21ts, an individual claimant would be able to recover no
more than $500,000. on any claim to which the statutory tort limits apply. The total which all claimants
would be able 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
purchases the optlonal excess liability coverage.
a If the city wolves the statutoty tori 1&nits and doss not purchase excess lfabiffty coverago, a single
claimant could potentially recover up to $1,600,000, on a single occurrence, The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be Ilmited to $1,500,000., regardless of the number of claimants.
u If 1110 city v/alvos the statutory tort ❑trtr`ts end purchases excess 11601ty coverage, a single claimant
could potentially recover an amount up to the limit of the coverage purchased. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to the arnount 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,
This decision must be made by the city council. Cities purchasing covorage must complete and
return this form to MIT before lira effective date of the coveraga. For further information, contact
LMCIT. You may also wish to discuss these Issues with your city attorney.
r• do accepts liability coverage limits of $ OGS � from the League of
Min esota Cities Ins rance Trust (LMCIT).
Check one.
The city DbES NOT WAIVE the monetary limits on municipal tort liability established by
Minnesota Statutes 466.04.
The city WAIVES the monetary Ilmits on tort liability established by Minnesota Statutes 466,04,
to the extern of the limits of the liability coverage obtained from LMCIT.
Date of city council meeting A iJ. 14. . 2? 1.�3 _
Signature Position
Re turn this completed rortn to IMar,, 1457 Unlverslty Ave, W., St, Paul, MN 55103 2044'