CCAgenda_03Feb12 - Laserfiche WebLink

Home Browse Search

• FALCON HEIGHTS CITY COUNCIL MINUTES _2_ January 22, 2003 POLICY AGENDA: Reconsideration of Waiver on Tort Liability Limits for the LMCIT Council member Lamb said that he had asked that the waiver on tort liability limits for the LMCIT be reviewed again on tonight's agenda, and he gave an oral review of a written statement he had provided for the Council packet. At the January 8 meeting, the Council reviewed a proposal to waive the tort liability limit; the review and action were required in order to comply with LMCIT requirements for insurance purposes. Staff proposed that the Council not waive the limit and this proposal was backed by an opinion from the City Attorney recommending the "no waiver" position. Neither the proposal nor the recommendation contained an in-depth pro-con analysis nor did they include costs of either position. The Council acted on the proposal with the proviso that they would further analyze the issue and its attendant costs by the January 22nd meeting to ensure that the decision to not waive the limit was the right thing to do. Subsequent to the January 8 meeting, the Council received cost data and a very well written, thoughtful analysis issued by the LMCIT. Council member Lamb said that he got spread sheet information about health care costs for the • region. If $1 million was adequate ten years ago, is it still adequate today? Is it adequate given the activities the City engages in? Do we have sufficient protection for our citizens? Adding an additional $1 million coverage would cost $1,198 or about 22 cents/resident. Mayor Gehrz said that she has been doing a lot of thinking about this and looking at materials. She thinks a bigger, broader issue is being raised that will affect not only Falcon Heights but also other communities. The Legislature takes action to provide some protections to cities and city budgets. This is one instance put in place to protect city budgets. In response to a question, Council member Lindstrom and Attorney Knutson said that in 1997, the Legislature, working in conjunction with the League of Cities, passed legislation regarding this matter and, in 2000, put the $1 million cap into effect. Attorney Knutson said he had a conversation with the LMCIT and they indicated that some communities buy the extra insurance, some don't. He asked them if they have paid more than $1 million on claims and they have had none. Also, most of the City's contracts have an indemnity provision. Council member Lindstrom said that he shares the Mayor's concern that this is a broader issue than just Falcon Heights. The City and the State have looked to protect the taxpayers. He is comfortable with the $1 million. He is not sure this is the time to be incurring additional expense. Council member Kuettel said that she shares the same concerns that Council member Lamb has. If a van with four family members in it is in an accident with a City vehicle, $1 million will not take care of their medical expenses. $1 million doesn't seem like a lot any more, • particularly if a family in the City is injured by something the City is found to be liable for.