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• • CONSTENT AGENDA ITEM IU STAFF ORIGINATOR: Al Rolek, Director of Finance DATE: June 28, 2010 TOPIC: Consideration of not waiving monetary limits on tort liability per MN Statute 466.04 VOTE REQUIRED: 3/5 BACKGROUND Each year, the City has the option of waving its monetary limits on tort liability to the extent of the coverage purchased. The decision to waive or not to waive the statutory limits has the following effects: If the city does not waive the statutory tort limits, an individual claimant would be able to recover no more than $500,000 on any claim to which the statutory tort limits apply. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether or not the city purchases the optional excess liability coverage If the city does waive the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $1,500,000 on a single occurrence. The total which all claimants would be able to recover for a single occurrence to which the statutory limits apply would also be limited to $1,500,000, regardless of the number of claimants. If the city does waive the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. The city carries $1,000,000 in excess liability coverage ($1,000,000 per occurrence and annual limit). The City of Lino Lakes has never waived its' monetary limits on tort liability. OPTIONS 1. The City of Lino Lakes does not choose to waive its' monetary limits on tort liability established by Minnesota Statutes 466.04. 2. The City of Lino Lakes chooses to waive its' monetary limits on tort liability to the extent of the limits of the excess liability coverage obtained from the League of Minnesota Cities Insurance Trust. RECOMMENDATION Recommend option 1.