HomeMy WebLinkAboutResolution 6465 � R
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C ITY OF ORONO
RESOLUT'ION OF THE CITY COUNCIL
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A RESOLUTION MAKING A SELECTION NOT TO WAIVE THE STATUTORY TORT
LIMITS FOR LIABILITY INSURANCE PURPOSES
WHEREAS, pursuant to previous action taken, the League of Minnesota Cities Insurance
Trust has asked the City to make an election with regards to waiving or not waiving its tort liability
established by Minnesota Statutes 466.04 ; and
WHEREAS, the choices available are as follows: to not waive the statutory tort limit, to
waive the limit but to keep insurance coverage at the statutory limit, and to waive the limit and to
add insurance to a new level.
NOW, THEREFORE, BE IT RESOLVED that the Orono City Council does hereby
elect not to waive the statutory tort liability limit established by Minnesota Statutes 466.04.
Adopted by the City Council of the City of Orono, Minnesota, at a regular meeting held
November 24, 2014.
ATTEST:
, .d'�- - �
' e Tiegs, City Cle Lili Tod McMillan, Mayor
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SECTION 1:LIABIL(TY COVERAGE WAIVER FORM
Cities obtaining liability coverage from the League of Minnesota Cities insurance Trust must decide
whether or not to waive the statutory tort fiability limits to the extent of the coverage purchased. The
decision to waive or not to waive the statutory limits has the following effects;
, If the city does not warve the staiutory tort limits, an individual claimant would be able to recover no
more than $500,000. on any claim to which the statutory tort limits apply. The total which all claimants
would be able to recover for a single occurrence to which the statutory tort limits apply would be
limited to$1,500,000. These statutory tort limits would apply regardless of whether or not the city
purchases the optional excess Iiability coverage.
lf the city waives the sfatutory tort limits and does not purchase excess liability coverage, a single
claimant could potentially recover up to 51,500,000. on a single occurrence. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to$1,500,000., regardless of the number of claimants
1f the city waives the statutory torf limits and purchases excess Irability coverage,a singfe cfaimant
could potentially recover an amount up to the limit of the coverage purchased. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to the amount of coverage purchased, regardless of the number of c{aimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
This decision must be made by the city council. Cities purchasing coverage must complete and
�eturn this form to LMCIT before the effective date of the coverage. For further information, contact
LMCIT. You may also wish to discuss these issues with your city attorney.
City of Orono $500,000/
HRA of Orono accepts liability coverage limits of$ $1 , 500, 000 from the League of
Minnesota Cities Insurance Trust(LMCIT).
Check one.
- � The city DOES NO�WAIVE the monetary limits on municipal tort liability established by
Minnesota Statutes 466.04.
� The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04,
to the extent of the limits of the liability coverage obtained from LMCIT.
Date of city council meeting >>�a y I��
Signature �' ' y�"`�"�'"�- Position /-`� —
Retum this completed form to LMCIT, 145 UniversityAve. W., St. Paul, MN. 55103-Z044