Agenda - Council - 01/27/2009 - Laserfiche WebLink

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LEAGUE OF MINNESOTA CITIES- INSURANCE TRUST (LMC -IT) WAIVER FORM - CONSIDER WAIVING/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 pass a resolution waiving or not waiving 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. In recent years, Council has considered waiving the statutory tort limits and purchasing additional insurance coverage. Staff obtained rates for the increased coverage for 2008, the Council case that detailed those rates and increased coverage is attached for Council reference. Council approved not- waiving the statutory tort limits for 2008. If Council were to decide to waive the statutory tort limits and purchase additional tort liability coverage, staff would request rates for the increased coverage for 2009 and bring them back for Council consideration at a future regular meeting of Council. Attached to this case, is a League of MN Cities memo re: Liability Coverage Limits. Mark Lenz, the city's insurance agent of record, will be present for the meeting to discuss the options for waiving and not- waiving the statutory tort limits Staff Recommendation: Staff recommends that Council consider waiving /not waiving the statutory tort limits for liability coverage. Of note, the MN state legislature has increased the liability limits for 2009 through June 30, 2009 to $400,000/$1,200,000 and $500,000 /$1,500,000 beginning Julyl, 2009. The limits prior to 2007 were $300,000/$1,000,000. Council Action: Adopt Resolution 09 -01 - Waiving/Not Waiving the Statutory Tort Limits for League of Minnesota Cities Insurance Trust Liability Coverage for the City of Ramsey. CC: 01/13/2009 Reviewed by: City Administrator: Attachments: Resolution LMC -IT Waiver Form 2008 Council Case re Additional Liability Rates League of MN Cities Memo re Liability Coverage Limits —165—