4.7 SR 05-15-2023 - Laserfiche WebLink

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Request for Action To Item Number Mayor and City Council 4.7 Agenda Section Meeting Date Prepared by Consent May 15, 2023 Lori Stich, Finance Manager Item Description Reviewed by Annual Approval Electing Not to Waive the Cal Portner, City Administrator Statutory Tort Limits for Liability Insurance Reviewed by Action Requested Elect, by motion, not to waive the statutory tort limits for liability insurance. Background/Discussion The City of Elk River secures its liability, property, casualty, automobile, and workers compensation insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT). As a condition of renewal, the city must annually execute a "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 the $500,000 on any claims 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. 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 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. Financial Impact N/A The Elk River Vision A welcoming community with revolutionary and spirited resourcefulness, exceptional,` 01 e service, and community engagement that encourages and inspires pi ospei ly INAMIRE1