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• Policy 2 <br />1/8/03 <br />ITEM: Request for action on the option to waive the statutory tort limits under the <br />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 <br />cities determine if they wish to waive the statutory tort limits of $1,000,000. Under these <br />limits an individual can settle for no more than $300,000 for a single claim and a single <br />claim for all parties cannot exceed $1,000,000. In 1998, our attorney, Joel Jamnik of <br />Campbell Knutson, reviewed this proposal and recommended not waiving the statutory <br />limits. Under certain circumstances the LMCIT, which represents the city in these <br />claims, may negotiate above the legal liability limit if necessary because some claims like <br />employment are exempt from the cap. The general counsel from the LMCIT said that <br />• cities made different choices depending upon their circumstances. However, he <br />perceived that maintaining the limit was prudent in many cases. The city has had no <br />claims with settlements for several years. <br />In 1998, 1999 and 2000, 2001, and 2002 the city council voted not to waive the statutory <br />tort limits. Staff also consulted with city attorney, Roger Knutson, to determine if the <br />situation had changed, and he recommended that the city not waive the statutory tort limit <br />again this year. <br />• Goal 4: To provide a responsive and effective city government. <br />• Strategy 6: To effectively manage the city's financial resources. <br />ATTACHMENTS: <br />Letter from Joel Jamnik dated January 23, 1998 <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 />