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[ITEM_HEADI <br />To <br />City Council <br />Meeting Date <br />April 7, 2025 <br />Item Description <br />Annual Election Not to Waive the Statutory Tort <br />Limits for Liability Insurance <br />Request for Action <br />Item Number <br />4.7 <br />Prepared By <br />Lori Stich, Finance Manager <br />Reviewed by <br />Lori Stich <br />Joe Stremcha <br />Cal Fortner <br />Tina Allard <br />Action Requested <br />Elect, by motion, not to waive the statutory tort limits for liability insurance. <br />Background/Discussion <br />As established by Minnesota Statute 466.04, the statutory liability limits for claims that occur after July I, <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 to <br />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 able to recover <br />no more than $500,000 on any claims and the total for a single occurrence would be limited to <br />$1,500,000 to which the statutory tort limits 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 coverage, a single <br />claimant could potentially recover up to $2,000,000 on a single 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 single claimant <br />could potentially recover an amount up to the limit of the coverage purchased. <br />On June 3, 2013, the Council approved Resolution 13-34, electing not to waive the statutory tort limits for <br />liability insurance. This resolution allows the statutory limits to remain in place until the Council changes this <br />election. <br />Financial Impact <br />N/A <br />Mission/Policy/Goal <br />Appropriately govern in an ever -changing environment. <br />The Elk River Vision <br />A welcoming community, with revolutionary and spirited resourcefidnm, exceptional service, and community P� d W E R E D 0d <br />engagement that encourages and inspires prosperityINPaU 249 <br />