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AGENDA ITEM <br />Date: October 13, 2025 <br />Title: Non -Waiver of Tort Limits - Resolution 7625 <br />Presenter: Maggie Jin, Finance Director <br />Section: Consent Agenda <br />Purpose: <br />The purpose of this action item is to adopt a resolution making a selection not to waive the <br />statutory tort limits for liability coverage. <br />Item: 4 <br />2. Background: <br />Minnesota Statutes 466.04 limits a city's tort liability to a maximum of $500,000 per claimant and <br />$1,500,000 per occurrence. Because cities have the right to waive the liability limit, our insurance <br />carrier, the League of Minnesota Cities Insurance Trust (LMCIT), requires that the City Council <br />adopt a resolution stipulating whether the City will or will not waive the statutory limits under the <br />laws. A waiver of the limits would result in increased liability exposure and an increase in <br />premiums. <br />3. Cost: <br />Because waiver of the statutory limits increases the amount that the LMCIT could potentially be <br />responsible for, waiver of the limit will increase the city's general liability insurance premium by <br />approximately 3% ($6,300). The City also carries excess liability coverage in the amount of <br />$3,000,000. A wavier of tort limits would increase this premium by 25% ($16,500). <br />4. Staff Recommendation: <br />Staff recommends that the adoption of the Resolution 7625, making a selection not to waive the <br />statutory tort limits for liability coverage. <br />COUNCIL ACTION REQUESTED <br />Motion to adopt Resolution 7625, making a selection not to waive the statutory tort limits for liability <br />coverage. <br />Exhibits <br />A. Tort Limit Waiver Form <br />B. Resolution 7625 Select Not to Waive Statutory Tort Limit <br />33 <br />