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<br /> <br />City of Ell< River <br />REQUEST FOR COUNCIL ACTION <br />Agenda Section Meeting Date <br />Consent Ma 15, 2006 <br />Item Description <br />Authorize Payment to League of MN Cities Insurance Trust for <br />Deductible and Coinsurance <br /> <br />Item Number <br />3.1f* <br /> <br />Prepared by <br />Lori ohnson, Ci Administrator <br />Reviewed by <br /> <br />Introduction <br />The League of MN Cities Insurance Trust (LMCIT) successfully defended the city in a lawsuit <br />against the city by the Builders Association of Twin Cities, et al. The coverage included a $2,500 <br />deductible and 15 percent co-pay on litigation costs over $25,000. <br /> <br />Discussion <br />The LMCIT has submitted an invoice to the city in the amount of $20,661.12, of which $2,500 is <br />the city's deductible and $18,161.12 is the 15 percent co-pay on litigation costs exceeding $25,000. <br />The total litigation cost incurred is $146,074.18. <br /> <br />Financial Impact <br /> <br />Payment of $20,661.12 from the insurance reserve fund, which currently has a cash balance of <br />$620,845. <br /> <br />Attachments <br /> <br />Action Requested <br />Authorize payment of $20,661.12 to LMCIT. <br /> <br />Council Action <br /> <br />Motion by _ <br /> <br />Second by _ <br /> <br />Vote <br /> <br />Follow Up <br /> <br />S:\Council\Lori\2006\lmncit BA Lawsuit Payment. doc <br />