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• FALCON HEIGHTS CITY COUNCIL AGENDA January 7, 2004 -4- Request for action on the option to waive the statutory tort limits under the LMCIT insurance Ulan Administrator Worthington said that the League of Minnesota Cities Insurance Trust (LMCIT) is requesting that cities determine if they wish to waive the statutory tort limits of $1,000,000. Under these limits an individual can settle for no more than $300,000 for a single claim and a single claim for all parties cannot exceed $1,000,000. Under certain circumstances the LMCIT, which represents the city in these claims, may negotiate above the legal liability limit, if necessary, because some claims like employment are exempt from the cap. The general counsel from the LMCIT said that cities make different choices depending upon their circumstances. However, he perceived that maintaining the limit was prudent in many cases. The city has had no claims with settlements for several years. In 2000, 2001, 2002, and 2003 the city council voted not to waive the statutory tort limits. Staff also consulted with city attorney, Roger Knutson, to determine if the situation had changed, and he recommended that the City not waive the statutory tort limit. Lindstrom moved approval of a motion not to waive the City's statutory tort limit of $1,000,000. The motion was unanimously approved. Grant agreement between City and Sherman Associates Administrator Worthington said that in 2002 and 2003, the City received $1,450,000 in grants from the Metropolitan Council for the redevelopment of the SE Corner. These grant monies will be available to Sherman Associates for certain aspects of the redevelopment project. As such, the city has been advised by its legal counsel to enter into a grant agreement with Sherman Associates for the future release and expenditure of those funds. This will mirror the City's agreements with the Metropolitan Council, and hold Sherman Associates responsible for meeting the requirements of the grant agreements, as well as the measurable goals and specific aspects of the redevelopment as laid out in the Redevelopment Agreement and the grant paperwork. Mr. Sherman signed the grant agreement during the closing on the Senior Apartments on December 30, 2003. A brief discussion followed. Lamb moved approval. of the grant agreement with Sherman Associates regarding the future release and expenditure of $1,450,000 in grant monies received from the Metropolitan Council for redevelopment of the SE Corner. The motion was unanimously approved. • 4