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CITY COUNCIL <br />STAFF REPORT <br />AGENDA ITEM 1.E. <br /> <br />STAFF ORIGINATOR: <br /> <br />MEETING DATE June 9, 2025 <br /> <br />AGENDA ITEM: Monetary Limits on Municipal Tort Liability <br /> <br />VOTE REQUIRED: Simple Majority <br /> <br /> <br />INTRODUCTION <br />As a part of the annual insurance renewal process, the City Council is being asked by the <br />League of Minnesota Cities Insurance Trust to update the Liability Coverage Waiver Form. <br /> <br />BACKGROUND <br />The City of Lino Lakes has never waived its monetary limits on tort liability. <br /> <br />The decision to waive or not waive must be made annually by the City Council. The decision <br />has the following effects: <br /> <br />• If the member does not waive the statutory tort limits, an individual claimant could <br />recover no more than $500,000 on any claim to which the statutory tort limits apply. <br />The total all claimants could recover for a single occurrence to which the statutory tort <br />limits apply would be limited to $1,500,000. These statutory tort limits would apply <br />regardless of whether the member purchases the optional LMCIT excess liability <br />coverage. <br /> <br />• If the member waives the statutory tort limits and does not purchase excess liability <br />coverage, a single claimant could recover up to $2,000,000 for a single occurrence <br />(under the waive option, the tort cap liability limits are only waived to the extent of the <br />member’s liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). <br />The total all claimants could recover for a single occurrence to which the statutory tort <br />limits apply would also be limited to$2,000,000, regardless of the number of claimants. <br /> <br />Claims to which the statutory municipal tort limits do not apply are not affected by this <br />Page 28 of 353