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POLICY I3 <br />• 1/07/04 <br />ITEM: Request for action on the option to waive the statutory tort limits <br />under the LMCIT insurance plan <br />SUBMITTED BY: Heather Worthington, City Administrator <br />REVIEWED BY: Roland Olson, Finance Director <br />EXPLANATION: <br />Summary: The League of Minnesota Cities Insurance Trust (LMCIT) is requesting that cities <br />determine if they wish to waive the statutory tort limits of $1,000,000. Under these limits an <br />individual can settle for no more than $300,000 for a single claim and a single claim for all <br />parties cannot exceed $1,000,000. Under certain circumstances the LMCIT, which represents <br />the city in these claims, may negotiate above the legal liability limit if necessary because some <br />claims like employment are exempt from the cap. The general counsel from the LMCIT said <br />that cities made different choices depending upon their circumstances. However, he perceived <br />that maintaining the limit was prudent in many cases. The city has had no claims with <br />settlements for several years. <br />• In 2000, 2001, 2002, and 2003 the city council voted not to waive the statutory tort limits. Staff <br />also consulted with city attorney, Roger Knutson, to determine if the situation had changed, and <br />he recommended that the city not waive the statutory tort limit again this year. <br />• Goa14: To provide a responsive and effective city government. <br />• Strategy 6: To effectively manage the city's financial resources. <br />ATTACHMENTS: <br />^ Waiver form <br />ACTION REQUESTED: <br />^ Discussion <br />^ Motion not to waive the city's statutory tort limit of $1,000,000 <br />• <br />G4 <br />