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s/i <br /> Elk REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Mayor and City Council 4.9 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> Consent April 21, 2014 Lori Ziemer,Asst. Finance Director <br /> ITEM DESCRIPTION REVIEWED By <br /> Annual approval electing not to waive the statutory tort limits Tim Simon,Finance Director <br /> for liability insurance Peter Beck, City Attorney <br /> REVIEWED BY <br /> ACTION REQUESTED <br /> Approve election not to waive the statutory tort limits for liability insurance. <br /> BACKGROUND/DISCUSSION <br /> The City of Elk River participates in the League of Minnesota Cities Insurance Trust (LMCIT) for the <br /> purpose of securing its liability,property, casualty, automobile and workers compensation insurance <br /> coverage. As a condition of insurance policy renewal the City must annually execute an"LMCIT Liability <br /> Coverage Waiver Form" and: <br /> 1. Determine whether to waive the statutory liability limits; and <br /> 2. Determine whether to acquire excess liability insurance coverage. <br /> As established by Minnesota Statute 466.04, the statutory liability limits for claims that occur after July 1, <br /> 2009 are $500,000 per claimant and $1,500,000 per occurrence. <br /> Annually the City Council must review and make an election of one of the following three options (claims <br /> to which the statutory municipal tort limits do not apply are not affected by this decision): <br /> 1. Not to waive the statutory tort limits—staff recommendation <br /> • If the city does not waive the statutory tort limits, an individual claimant would be <br /> able to recover no more than $500,000 on any claim to which the statutory tort limits <br /> apply. <br /> 2. Waive the limits and not purchase excess liability coverage <br /> • If the city waives the statutory tort limits and does not purchase excess liability <br /> coverage, a single claimant could potentially recover up to $1,500,000 on a single <br /> occurrence. <br /> 3. Waive the limits and purchase excess liability coverage <br /> • If the city waives the statutory tort limits and purchases excess liability coverage, a <br /> single claimant could potentially recover an amount up to the limit of the coverage <br /> purchased. <br /> On June 3, 2013 the City Council approved Resolution 13-34 electing not to waive the statutory tort <br /> limits for liability insurance. This resolution allows the statutory tort limits to remain in place until the <br /> POIEREO 1Y <br /> INATUPE <br /> 81 <br />