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AGENDA ITEM <br /> <br />Prepared By: RJO Reviewed By: Approved By <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />1. Purpose. The purpose of this action item is to adopt a resolution making a selection not to waive the <br />statutory tort limits for liability. <br /> <br />2. Background. Minnesota Statutes 466.04 limits a city’s tort liability to a maximum of $500,000 per <br />claimant and $1,500,000 per occurrence. Because cities have the right to waive the liability limit, our <br />insurance carrier, the League of Minnesota Cities Insurance Trust (LMCIT), requires that the City <br />Council adopt a resolution stipulating whether the City will or will not waive the statutory limits under <br />the laws. A waiver of the limits would result in increased liability exposure and an increase in premiums. <br /> <br />3. Cost. Because waiver of the statutory limits increases the amount that the LMCIT could potentially <br />be responsible for, waiver of the limit will increase the city’s general liability insurance premium by <br />approximately 3% ($4,500). The City also carries excess liability coverage in the amount of $3,000,000. <br />A wavier of tort limits would increase this premium by 25% ($10,000). <br /> <br />4. Staff Recommendation. Staff recommends that the adoption of the resolution not to waive tort <br />limits. <br /> <br />COUNCIL ACTION REQUESTED <br /> <br />Motion to adopt a Resolution No. 7294. <br /> <br />Exhibits <br />A. Tort Limit Waiver Form <br />B. Resolution <br /> <br />Item No.: 5 Date: October 10, 2022 <br />Item Description: Non-Waiver of Tort Limits <br />Presenter: Ron Olson <br />Finance Director <br />Agenda <br />Section: <br />Consent Agenda