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MINUT~S <br />CITY COUNCIL <br />DECEMBER 17, 1997 <br />LMCIT The City Administrator reported that as part of the City's annual <br />INSURANCE insurance renewal, the Council must decide whether or not it wants to <br />RENEWAL waive the City's statutory tort liability limits currently at $300,000 per <br />person and $750,000 per occunence. This option would apply if we <br />purchased covera~e at an amount higher than the Statutory limits. We did <br />receive a quote for $750,000 single limits and the additional cost would be <br />$1,142. <br />Morelan pointed out that this issue was discussed a couple of years ago <br />and recalled that the only advantage seemed to be that waiver of the limits <br />would allow someone with a suit against the City to gain more in <br />dama~es. He also noted we could purchase higher limits and not waive <br />the Statutory limits for applicable cases. The Administrator noted that <br />higher limits would provide greater protection if a Federal Court claim <br />were made against the City and the City lost. The Administrator stated <br />that in the past the City has chosen not purchase excess liability coverage <br />or to waive statutory limits. <br />LaValle pointed out the option wherein the City can purchase Open <br />Meeting Law coverage up to 100%. The additional cost of going from <br />80% coverage to 100% coverage is $38 annually. <br />Morelan felt that the biggest advanta~e in waiving statutory limits is it <br />allows someone to collect more damages against the City if the City has <br />done somethin~ wrong. However, if the Council is trying to do its job <br />correctly, Morelan did not think the waiver was worth the additional <br />$1,100 in insurance premium. <br />The Administrator reported that the Legislature has increased the limits for <br />1998 and future plans are to take them higher. Therefore, the issue is <br />beginning to go away on its own. The Administrator recommended that <br />the City not waive statutory liability limits and not purchase additional <br />coverage over these limits, and further recommended the Open Meetin~ <br />Law Coverage up to 100%. <br />Mr. Morelan introduced the following resolution and moved its adoption: <br />RESOLUTION N0. 97-12-309 - ACCEPTING THE <br />RECOMMENDATION OF THE CITYADMINISTRATOR WITH <br />RECARD TO LMCIT I.IA73ILITY COVERAGE EI ECTING NOT TO <br />WAIVE STATUTORY TORT I.IA7377,ITY LIMITS AND NOT <br />PURCHASE ADDITIONAI. COVERAGE OVER THESE I,IMITS, <br />AND EI,ECTING TO PURC.F.iASE OPEN MEETING 7,AW <br />COVERAGE AT 100% <br />