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REQUEST FOR COUNCIL ACTION <br />DATE: October 26, 2015 <br />ITEM NO: 8 <br />Department Approval: Administrator Reviewed: Agenda Section: <br />Name Ron Olson NYV Y"_4 City Administrator's Report <br />Title Finance Director <br />Item Description: Non -Waiver of Tort Limits <br />Attachments: <br />1. Non -Waiver Form <br />2. Resolution <br />3. LMCIT Memo <br />Minnesota Statutes 466.04 limits a city's tort liability to a maximum of $500,000 per claimant <br />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 <br />City Council adopt a resolution stipulating whether the City will or will not waive the statutory <br />limits under the laws. Because waiver of the statutory limits increases the amount that the <br />LMCIT could potentially be responsible for, waiver of the limit will increase the city's general <br />liability insurance premium by approximately 3% ($1,500). The City also carries excess liability <br />coverage in the amount of $2,000,000. A wavier of tort limits would increase this premium by <br />25% ($5,200). <br />Staff's recommendation is to not waive the statutory limits set by state statute. Additional <br />information on liability coverage and limits can be found in attached memo (attachment 3) from <br />the LMCIT. <br />COUNCIL ACTION REQUESTED: <br />Consider a motion to adopt a resolution making a selection not to waive the statutory tort limits <br />for liability purposes. <br />