07/14/1997 Council Minutes - Laserfiche WebLink

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COUNCIL MINUTES JULY 14, 1997 CONSIDERATION OF WAIVING OR NOT WAIVING MONETARY LIMITS ON TORT LIABILITY PURSUANT TO MINNESOTA STATUTE 466.04 - RANDY SCHUMACHER Mr. Schumacher informed the Council that although it has never done so, each year the City has the option of waiving 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. In other words, State law protects the City up to $600,000, which is the current limit of liability per occurrence or incident. Mr. Schumacher stated that the City presently carries an additional $1,000,000 in excess liability coverage ($1,000,000 per occurrence and annual limit) in the event the limits are ever declared unconstitutional. Mr. Schumacher expressed the Staff's recommendation that the City of Lino Lakes not waive its monetary limits on tort liability as established by Minnesota Statute 466.04. Council Member Bergeson inquired as to coverage in the recent St. Paul gas explosion. Mr. Hawkins responded that the total of $600,000 upheld by the courts. He added that this issue is challenged each year, due to incidents of catestrophic nature, but has withstood many challenges. Additional coverage is available at substantial additional cost. Council Member Kuether moved that the City of Lino Lakes not waive its monetary limits on tort liability as established by Minnesota Statute 466.04. Council Member Lyden seconded the motion. Motion carried unanimously. OLD BUSINESS Consideration Of Lease Agreement, Centennial School District Early Childhood Center, Randy Schumacher - Mr. Schumacher explained that the present Early Childhood Education Center is located in Circle Pines. It is located in an older facility. Centennial School District and the City of Lino Lakes have been negotiating a ten-year building lease proposal, as follows: 1. The building would be built and owned by the City in the Town Center. 2. Centennial School District would lease the building (approximately 11,000 square feet) for a minimum of ten years. 3. Plans for the building would be approved by both parties prior to construction. 4. Annual rent would pay for all debt on the construction financing. 5. All utilities will be paid for by the school district. 6. Premises shall be used only for public school purposes. 7. School must carry appropriate levels of insurance to cover the City as additional insured. Mr. Schumacher expressed the Staff's recommendation that the Council authorize the City Administrator and Mayor to enter into a lease with Centennial School District according to the terms outlined above. 14