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Finance Officer Lund stated that Staff is currently completing the annual application for general liability and property insurance through the League of Minnesota Cities Insurance Trust (LMCIT). LMCIT requires that City Council officially waive or decline to waive statutory tort liability limits. Effective January 1, 1999, the statutory tort liability limit is $750,000 per occurrence; $300,000 per claimant. Claimants who have actual damages that exceed the per claimant limit of $300,000, will not be compensated for damages beyond the $300,000 limit unless the City Council chose to waive the statutory limits per claimant. With the waiver, actual damages up to the $750,000 per occurrence could be paid. Because the potential amount paid for claims increases if the Council chooses to waive the statutory limits, premiums are somewhat higher if limits are waived. Upon advice of the City Attorney, the Council declined to waive the monetary limits in 1998 and 1999. Councilmember Hendriksen inquired if there was an additional cost for the excess liability. Finance Officer Lund replied yes. Councilmember Anderson questioned if the City Attorney is still in agreement with not waiving the monetary limits. Councilmember Zimmerman replied that the City Attorney has been in favor in the previous years. Councilmember Connolly suggested making the recommendation contingent upon the City Attorney' s approval. Motion by Councilmember Zimmerman, seconded by Councilmember Connolly, to recommend that City Council not waive the monetary limits on municipal tort liability establishment by Minnesota Statues 466.06 contingent upon the City Attorney's approval. Motion carried. Voting Yes: Mayor Gamec Councilmembers Zimmerman, Connolly, Anderson, and Hendriksen. Voting No: None. Case #5: Financing of Elmcrest Park Purchase City Administrator Norman stated that during the City Council meeting of December 8, 1998, the City Council authorized the acquisition of Community Park #5, from Mr. Vernon Halderson et al, in the amount of $205,000. The purchase was structured into two payments, with the first portion paid prior to the end of 1998 in the amount of $120,000. The final payment of $85,000 was authorized by the City Council during the Council meeting of June 22, 1999, by utilizing a loan from the Landfill Trust Fund. The motion to authorize the final payment for the Community Park was made but they also directed Staff to determine the final source of financing the project. When the City decided to purchase the property form the Haldersons for Elmcrest Park, there was an intent to use moneys derived from a future Storm Water Management Utility System Fund which had yet to be established. As Staff has discussed the storm water management utility system throughout the year, it has become apparent that there are significant needs in storm water improvement projects and it would be difficult to divert funding for a partial park payment. Staff Finance Committee/November 23, 1999 Page 4 of 5