12-17-1997 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: December 12, 1997 RE: LMCIT Liability Coverage — Waiver of Statutory Tort Liability Limits MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Pedersen ADMINISTRATOR Joel R. Hanson Attached is a waiver form relative to liability coverage through the League of Minnesota Cities Insurance Trust (LMCIT) program. You will note that the statutory limits of liability have been increased by the legislature for 1998 from $200,000/$600,000 to $300,000 /$750,000. The League will be providing coverage for these increased limits. In the past, we have declined excess liability coverage (umbrella); relying on the statutory limits of liability for our protection. As you will recall, statutory limits will not protect us in Federal Court for items such as civil rights claims. Our agent has recommended we evaluate combined limits of $750,000 per occurrence, thereby increasing the amount one person can recover from the $300,000 to the $750,000 amount. (The occurrence total would remain at $750,000.) As of yet, we do not have the quote from the League as to what this cost would be. It is my recommendation that if the cost is greater than $1,000, we reject that option and not waive the monetary limits of municipal tort liability established by Minnesota Statutes 466.04. If the amount is less than $1,000, I would recommend that we waive the monetary limits on tort liability and purchase the additional coverage from LMCIT. Given the fact that our renewal quotation will not come until later this month, I would request authority to complete the attached form based on this recommendation. You may want the City Attorney's comments on this matter as well. JRH:kpv Enclosure Page 52