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264 <br />COUNCIL MEETING JULY 26, 1993 <br />Council Member Kuether moved to award the sign quote to Juleen <br />Designs, Inc. for $2,265.00. Council Member Neal seconded the <br />motion. Motion carried unanimously. <br />CONSIDERATION OF LEAGUE OF MINNESOTA CITIES INSURANCE TRUST <br />EXCESS LIABILITY COVERAGE <br />Mr. Schumacher explained that each year the City has the option <br />of waving its monetary limits on tort liability to the extent of <br />the limits of the excess liability coverage obtained from the <br />League of Minnesota Cities Insurance Trust•. This means the City <br />has coverage by State Statute up to $600,000.00. If someone sues <br />the City the limit of coverage is $200,000.00 per person or <br />$600,000.00 per accident. The City also has a $1,000,000.00 <br />umbrella policy for total liability coverage of $1,600,000.00. <br />The League of Minnesota Cities allows municipalities to waive <br />tort liability limits and expose the City to higher limits of <br />awards. The City has never done this in the past. The League of <br />Minnesota Cities requires the City to take official action on the <br />matter. Mr. Schumacher recommended that the City not waive its <br />monetary limits on tort liability established by Minnesota <br />Statutes 466.01. <br />Mr. Hawkins told of a recent accident in the City of St. Paul and <br />noted that the City of St. Paul is self-insured up to the <br />$600,000.00 limit. He also explained that the Supreme Court has <br />upheld the $600,000.00 limits. Mr. Hawkins also noted that some <br />municipalities have determined that if someone is hurt because of <br />the negligence of a public employee, they should be able to <br />collect more than allowed by the State Statutes. Lino Lakes does <br />carry an additional $1,000,000.00 liability policy in the event <br />that the limits were ever declared to be unconstitutional. <br />Council Member Kuether said it seemed unfair that municipalities <br />can set limits of liability and ordinary people cannot have such <br />protection. She said that $1,600,000.00 did not appear to be <br />much protection for the City. <br />Mayor Reinert said he felt that since the City Council represents <br />the taxpayers, the City Council should act in their best interest <br />and not waive the monetary limits. <br />Council Member Bergeson asked if this applied to personal injury <br />only. Mr. Hawkins said yes, the City has other coverage for such <br />matters as breach of contract. <br />Council Member Neal moved to not waive its monetary limits on <br />tort liability established by Minnesota Statutes 466.01. Council <br />Member Elliott seconded the motion. Motion carried unanimously. <br />PAGE 10 <br />1 <br />1 <br />1 <br />