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Item No. 6G Type of Business: CA WK: Work Session; PH: Public Hearing; CA: Consent Agenda; CB: Council Business City of Mounds View Staff Report To: Honorable Mayor and City Council From: Charles Hansen, Finance Director Item Title/Subject: Resolution 5781 Selecting Coverage for the 2002/2003 Insurance Policies Date of Report: June 3, 2002 Minnesota Statutes 466.04 provides a limit on municipal tort liability claims of $300,000 per person and $1,000,000 per incident. Cities have the option of waving this limit if they purchase insurance policies with larger maximum coverage. I see no reason why the City of Mounds View should waive the statutory limit on tort liability. Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort limit. The decision must be made by the City Council before the effective date of the coverage. The attached resolution declares that the City of Mounds View does not waive the statutory limit on tort liability. Elected city officials are not automatically covered by the worker’s compensation law. Cities wishing to cover elected officials need to pass a resolution to make the elected officials “employees” for purposes of the worker’s compensation law. If the city doesn’t pass a resolution, a city official that is injured while on city business wouldn’t receive any worker’s compensation benefits. Indemnity benefits would be based upon the sum of the elected officials earnings from their regular employment plus their salary from the City. Additional premiums for including elected officials in the City of Mounds View’s worker’s compensation insurance policy will run about $100.00 per year. The attached resolution declares the City of Mounds View’s intention to cover elected officials in the worker’s compensation insurance policy. Respectfully Submitted, Charles Hansen