4.10. SR 04-20-2015 - Laserfiche WebLink

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�j Elk = - Request for Action River To Item Number Mayor and City Council 4.10 Agenda Section Meeting Date Prepared by Consent Aril 20, 2015 Lori Ziemer,Asst. Finance Director Item Description Reviewed by Annual Election Not to Waive the Statutory Tort Tim Simon, Finance Director Limits for Liability Insurance Peter Beck, City Attorney Reviewed by Cal Portner, City Administrator Action Requested Elect, by motion, not to waive the statutory tort limits for liability insurance. Background/Discussion The city secures its liability, property, casualty, automobile and workers compensation insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT). 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. Annually 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): 1. Not to waive the statutory tort limits —staff recommendation ■ 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 and the total for a single occurrence would be limited to $1,500,000 to which the statutory tort limits apply. 2. Waive the limits and not purchase excess liability coverage ■ If the city waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $2,000,000 on a single occurrence. 3. Waive the limits and purchase excess liability coverage ■ If the city 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. On June 3, 2013, the City Council approved Resolution 13-34 electing not to waive the statutory tort limits for liability insurance. This resolution allows the statutory tort limits to remain in place until the Council changes this election. Again, staff recommends approving Option 1 not to waive the statutory limits. p 0 W I R E a 0 NA UREJ