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Lake Elmo Agenda Section: Finance No. 513 <br />City Council <br />December 05, 2006 <br />Agenda Item: Waiver of Monetary Limits on Tort Liability <br />The City of Lake Elmo obtains liability coverage through the League of Minnesota Cities Insurance trust for <br />buildings and vehicles. The coverage also covers tort liability. Because of this coverage, the City must decide <br />whether or not to waive the monetary limits on municipal tort liability as established by Minnesota Statutes <br />§466.04. <br />If the city does not waive the statutory tort limits, an individual claimant would be able to recover no more <br />than $300,000 on any claim to which the statutory tort limits apply. The total which all claimants would be <br />able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,000,000. <br />These statutory tort limits would apply regardless of whether or not the city purchases the optional excess <br />liability coverage. <br />If the city waives the statutory tort limits, and does not purchase excess liability coverage, a single claimant <br />could potentially recover up to $1,000,000 on a single occurrence. The total which all claimants would be able <br />to recover for a single occurrence to which the statutory limits apply would also be limited to $1,000,000, <br />regardless of the number of claimants. <br />If the city waives the statutory tort limits and purchases excess liability coverage, a single claimant could <br />potentially recover an amount up to the limit of the coverage purchased. The total which all claimants would <br />be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the <br />amount of coverage purchased, regardless of the number of claimants. <br />Staff recommends the City to adopt a resolution stating that the City does not waive the monetary limits on <br />municipal tort liability as established under Minnesota Statutes §466.04. <br />Action Items: Person responsible: <br />1. Adopt Resolution # 2006-137 City of Lake Elmo does not Tom Bouthilet <br />waive the monetary limits on municipal tort liability. <br />Attachments: Resolution # 2006-137 Time Allocated: <br />