Agenda - Council - 12/11/2007 - Laserfiche WebLink

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C-19 • LMC-IT WAIVER FORM-CONSIDER NOT WAIVING THE STATUTORY TORT LIMITS By: Heidi A. Nelson, Asst. City Administrator _ -Background: As a part of the annual renewal of our property, casualty, and liability insurance coverage for_the City of Ramsey, the City Council is required to waive or not waive the statutory tort limits for its liability coverage. Attached to this case is the LMC-IT form that is required to be completed and signed after council approval of a resolution indicating whether the City chooses to waive or not waive the statutory tort limits for liability coverage.. If Council were to waive the statutory limits, additional insurance coverage would need to be purchased by the City to cover the increased liability the City is assuming. During the regular Council meeting of November 27~n, Council directed staff to request rates from our agent to increase the tort limit coverage for the City: Staff has contacted Mark Lenz with T.C. Field & Company and requested rates for increased tort liability. An e-mail memo from Mark Lenz is attached which states that rates for increased coverage will not be available in time for the December l lm meeting of the Council. Mr. Lenz recommends that we adopt the resolution to not-waive the statutory tort limits at the December 11 ct, meeting. When rates are available after the renewal process is complete (most likely by January 8`n), the Council could then adopt another resolution waiving the statutory limits and selecting a new tort liability limit for the City. • Staff Recommendation: Staff recommends that Council not waive the statutory tort limits for liability coverage thereby limiting an individual claimant to recover no more than $400,000 on any claim to which the statutory tort limits apply. Under state law, 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 $1,200,000. This resolution would be in effect pending the availability of rates for increased tort liability coverage.- When rates are available for review by the Council, a new resolution could be adopted waiving the statutory limits and selecting anew tort liability limit for the City. Also of note, the MN state legislature has increased the liability limits .for 2008 to $400,000/$1,200,000 and $500,000/$1,500,000 for 2009. The previous limits were $300,000/$1,000,000, Council Action: Adopt Resolution 07-11-_ Not Waiving the Statutory Tort Limits for League of Minnesota Cities Insurance Trust Liability Coverage for the City of Ramsey. Reviewed by: ` City Administrator: • - CC:12/11/2007 -121-