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funds which LMCIT uses to pay claims are really the joint <br />property of all of LMCIT's member cities. The purpose of the <br />coverage document is to spell out which claims will be paid with <br />those funds. LMCIT therefor has a duty to all of its member <br />cities to pay out those funds only in accordance with the <br />coverage document, and to make sure that the coverage document <br />is being properly interpreted. To pay a claim which we believe <br />is excluded by the language of the coverage document would <br />amount to using the member cities' funds to make a gift. <br />This is not the first time LMCIT has found itself in the <br />position of having to disclaim coverage for a member city's <br />claim. The claims arising out of the alleged air quality <br />problems in the City of Coon Rapids' ice arena several years <br />ago, which fell under the coverage's "pollution" exclusion; and <br />the recent claims against the member cities of the Minnesota <br />Police Recruitment System, which fell under the "joint powers" <br />exclusion, are two other examples. In both of those instances, <br />the LMCIT Board reviewed the issues and developed ways to <br />cover similar situations in the future - just as LMCIT has done <br />by developing the optional open meeting law defense coverage <br />that is now available. <br />In short, we believe that in fairness to the member cities, <br />LMCIT must continue to make coverage decisions based on what the <br />coverage document actually says and what it actually covers - <br />not on what we may later decide it should have said or should <br />have covered. This appeal is simply one more step in the <br />process that assures that the coverage document is being <br />interpreted and applied correctly. <br />The members of the LMCIT Board are very interested in hearing <br />your views on this or any other issue involving LMCIT. Please <br />feel free to contact any of the Trustees, or Pete Tritz or Tom <br />Grundhoefer at the League office, with any comments, questions, <br />or suggestions you may have. <br />�cerely e , <br />Stene <br />or, Lindstrom <br />Chairman, LMCIT Board of Trustees <br />Page 107 <br />