4.7. SR 06-03-2013 - Laserfiche WebLink

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Elk REQUEST FOR ACTION River TO ITEM NUMBER Mayor and City Council 4.7 AGENDA SECTION MEETING DATE PREPARED BY Consent June 3, 2013 Lori Ziemer,Asst. Finance Director ITEM DESCRIPTION REVIEWED By Resolution Electing to Not Waive the Statutory Tort Limits for Tim Simon, Finance Director Liability Insurance Peter Beck, City Attorney REVIEWED BY Cal Portner, City Administrator ACTION REQUESTED Motion by Council to adopt a resolution electing to not waive the statutory tort limits for liability insurance. BACKGROUND/DISCUSSION The City of Elk River participates in the League of Minnesota Cities Insurance Trust (LMCIT) for the purpose of securing its liability,property, casualty, automobile and workers compensation insurance coverage. 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. 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): • Not to waive the statutory tort limits—staff recommendation • Waive the limits and not purchase excess liability coverage • Waive the limits and purchase excess liability coverage Option 1 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 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. A tort is a civil wrong whereby any injured party may be entitled to compensation. According to LMCIT, 82% of all LMCIT insured cities elect to not waive the statutory limits. P O W E R E D BY NaA f RE]