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CONSENT G3 <br />12/14/05 <br />• ITEM: Statutory tort limits <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 determine <br />if they wish to waive the statutory tort limits of $1,000,000. Under these limits an individual can settle <br />for no more than $300,000 for a single claim and a single claim for all parties cannot exceed $1,000,000. <br />Under certain circumstances the LMCIT, which represents the city in these claims, may negotiate above <br />the legal liability limit if necessary because some claims like employment are exempt from the cap. The <br />general counsel from the LMCIT said that cities made different choices depending upon their <br />circumstances. However, he perceived that maintaining the limit was prudent in many cases. The city <br />has had no claims with settlements for several years. <br />Since 2000, the city council voted not to waive the statutory tort limits. Staff also consulted with city <br />attorney, Roger Knutson, to determine if the situation had changed, and he recommended that the city not <br />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 />Motion not to waive the city's statutory tort limit of $1,000,000. <br />• <br />10 <br />~CHG02:40069922.v1 ~9/28/OS 11:33 AM <br />