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AGENDA ITEM <br />Date: March 10, 2025 <br />Title: Carman Bay LID Insurance Agreement Termination <br />Presenter: Maggie Jin, Finance Director <br />Section: Consent Agenda <br />Item: 11 <br />Purpose: <br />The purpose of this action is to gain approval to terminate the Carman Bay Lake Improvement <br />District Agreement for insurance coverage. <br />2. Background: <br />Carman Bay Lake Improvement District (CBLID) was established on July 24, 2017. At the <br />December 11, 2017, Council meeting, a cooperative agreement between the City and CBLID was <br />approved for consideration of insurance, costs, and liability responsibilities between the City and <br />CBLID. Upon discussion with the City's insurance agent and the League of Minnesota Cities' <br />counsel, staff is recommending termination of the insurance agreement and request that CBLID <br />obtain its own coverage for liability and bond coverage. <br />The benefit of the district obtaining its own insurance coverage outweighs being covered by the <br />City. Each party will not affect the others' liability limits. Additionally, per state statute, bond <br />coverage is required of lake improvement districts, which the City does not provide as the board <br />members are not City employees and background checks are not performed on non -City <br />employees. CBLID have agreed to move forward with this process to obtain their own insurance <br />coverage. <br />3. Staff Recommendation: <br />Staff recommends approval to terminate the insurance agreement between the City and the Carman <br />Bay Lake Improvement District. <br />COUNCIL ACTION REQUESTED <br />Motion to approve terminating the insurance agreement between the City and the Carman Bay Lake <br />Improvement District. <br />Exhibits <br />A. Original Carman Bay Lake Improvement District Agreement 2017 <br />B. Termination of Insurance Agreement between CBLID and City 2025 <br />52 <br />