01-13-20 STMA Arena Board AgendaSTMA ARENA BOARD AGENDA
MONDAY, JANUARY 13, 2020
ALBERTVILLE CITY HALL
6:00 PM
CALL TO ORDER – ROLL CALL
ADOPT AGENDA
APPROVAL OF THE MINUTES OF DECEMBER 9, 2019 (pgs. 1-3)
FINANCE REPORTS
Approve the December list of claims as presented in the amount of $57,563.10 and
December report (pgs. 4-9)
ARENA MANAGER
Monthly report (pg. 10)
OLD BUSINESS
NEW BUSINESS
Tort Liability Coverage Waiver (pgs-13)
YOUTH HOCKEY ASSOCIATION
ADJOURN
P:\\Arena\\2020 STMA Ice Arena\\2020 Arena Agenda\\2020-01-13\\01132020 STMA Agenda.doc
ST. MICHAEL-ALBERTVILLE ICE ARENA BOARD MINUTES
December 9, 2019
6:00 p.m.
Present: Chairman Kevin Kaseland members, John Vetsch, LarrySorensen, Keith Wettschreck, Kari
Dwinnell and Tim Lewis. Member Aaron Cockingwas absent. Also present:City Administrator
Adam Nafstad, City Finance Director Tina Lannes, STMA Arena Manager Grant Fitch, and STMA
School District Superintendent Dr. Ann-Marie Foucault. The meeting was called to order at 6:02 p.m.
by Chairman Kasel.
Set Agenda
MembersSorensen/Lewis moved to set the agenda as presented. All voted aye.
Member Vetsch arrived 6:04 p.m.
Approval of Minutes
MembersSorensen/Wettschreck moved to approve the minutes of the November 12, 2019Board
Meeting as presented.All voted aye.
Finance Reports
Lannes presented the financials and noted that staff added the projected budget to date based on
accrual, but it doesn’t match the actual column due to the City runs on a cash basis. Nafstad
mentioned that the change in the managers update will include the budget projection for ice sold.
Member Lewis mentioned that what he was looking for was not the projected revenues, but the
projected volume of ice sold broken down by various users by month projected for the entire year
verses what was purchased by each user. Nafstad asked if the managers report reflecting the hours
sold for the month and projected for that month if that is what they were looking for. Member Lewis
wants actual and projected forecast for the remainder of the year. There was additional discussion on
what the board would like to see for forecasting and how hours sold are projected. Chairman Kasel
volunteered to work on an ice rental hours forecast/actual worksheet with staff to try and create a
report that will assist the board with ice usage.
Members Vetsch/Wettschreck moved to approve the November list of claims totaling $25,079.28 and
the November Financial Report as presented. All voted aye.
Arena Manager’s Report
Fitch reported that total hours was 427 hours with two sheets running. Fitch mentioned the blanket
maintenance agreement with SCR for 2020. The agreement covers the HVAC and dehumidification of
the old rink and the quarterly maintenance on the new refrigeration system for both sheets in the
amount of $11,412 annually. There was discussion on how the blanket agreements work and how long
the STMA Arena has been using the service in past years.
Members Sorensen/Lewis moved to approve SCR Refrigeration Blanket Maintenance Program in the
amount of $11,412.00. All voted aye.
Fitch stated that Dan from Midwest Hockey Program liked the proposed discounts for summer ice after
200 hours of ice purchased since they at having six tournaments the spring/summer.
STMA Arena Board Mtg 01/13/20 Page 1
STMA December 9, 2019 Minutes
Page 2
Fitch informed the board that the ice will be removed on the Gold Rink March9, 2020 and back in by
April 3, 2020. In addition, SCR is going to take care of the Blue Rink and are they are planning on
reimbursing the STMA Arena for the Gold Rink.
STMA Arena CIP – Old Rink
Nafstad introduced the draft CIP requested by the board and went through the line items that are
considered most necessary to sell ice and maintain the facility. Nafstad explained the estimated
replacement cost with the 3% inflation factorand the projected year of replacment. Nafstad also went
through the funding plan which assumes an annual contribution total of $45,000. There was discussion
on the presented CIP plan and funding. Chair Kasel asked that the hot water heater for the ice be
added to the CIP.
Finance Director Lannes excused herself from the meeting at 6:40 p.m.
The board and staff also discussed the current Zamboni and future Zamboni purchases, timing and
options. Nafstad pointed out that on the Financial statements noting the cash balance goal is to be at
35% of the next year’s budget as recommended by the auditor and the Office of the State Auditor.
Chairman Kasel pointed out that until the cash balance is at that number there is no additional money
being set aside for capital purchases.
LiveBarn
Nafstad presented the proposed LiveBarn video contract for the Arena and reviewed the concerns from
the City Attorney and staff. This contract gives LiveBarn exclusive video rights for broadcasting if the
news or the school were to do any recording or broadcasting would put the Arena in default of the
agreement even if we were to cancel the agreement the broadcasting rights continue for the full 6-year
term of the agreement. In addition, required noticing rights, advertising, social media posts and
website posts. Also, if there is a dispute we would have to be governed by New York Law and venue
in New York. There was discussion about the language in the agreement and options.
Board direction to staff was to not enter the agreement unless specific changes in the agreement are
made regardingvideo rights, broadcasting rights and length of term.
2020 Budget
nd
Nafstad presented the 2draft of the 2020 preliminary budget with the only changes being summer
rate discounts after 200 hours the rate reduces by $15 and after 400 hours the rate reduces another $15.
In addition, Nafstad summarized the revenues and expense estimates for the proposed budget.
Chairman Kasel asked what would be in the increased revenue would be if we increased the prime rate
by $5.00. The increased revenues for a year would be about $11,000.
Member Sorensen asked why concession expenses at a higher than the income. Fitch informed the
board that for 2019 there was a large increase in concession expenses due to stocking the new stand
and adding new products. In addition, the concession stand has increased sales. Nafstad, mentioned
that we had numbers from last year’s expenses based on historical numbers for the proposed expense
and will exceed the 2019 budget and the concession stand is open more often. Member Lewis
mentioned that looking at the concession expenses verses revenue is about 40% and the proposed
budget is in line with that at 44%.
Member Lewis asked if we could work in the rate increases to the CIP, suggesting 3-4 years out, to see
when we achieve the 35% threshold. The board discussed a possible rate increase for the prime rate.
STMA Arena Board Mtg 01/13/20 Page 2
STMA December 9, 2019 Minutes
Page 3
Members Sorensen/_____________ moved to approve 2020 Budget with an additional increase of
$5.00 on prime rate effective September 1, 2020 to $220.00 per hour. All voted aye.
Adjourn
Members_____________ /______________ moved to adjourn at approximately 7:30 p.m. All voted
aye.
Attest:
_________________________________
Tina L. Lannes, City Finance Director
STMA Arena Board Mtg 01/13/20 Page 3
STMA Ice Arena Budget to Actual December2019 (Cash Basis)
2019 Actual 2019 YTD
December YTD % of
2019 Budget2019 Actual12/31/19Budget
Income
80.01%
Ice Rental$600,346.76 $22,207.29 $480,339.14
139.49%
Concessions$55,000.00 $12,723.75 $76,719.45
Room Rental$0.00 $0.00 $100.00
70.78%
Other Revenues (Advertising/LMC/Ins Claims) $20,000.00 $346.00 $14,155.45
76.17%
Vending$2,000.00 $471.50 $1,523.30
182.48%
Open Skate/Hockey, etc. $7,000.00 $590.00 $12,773.80
0.00%
Interest$1,600.00 $0.00 $0.00
Misc. Revenue $400.00 $76.00 $440.00
Total Income 85.39%
$686,346.76 $36,414.54 $586,051.14
Expenses
95.72%
Salaries, Wages, Taxes & Benefits $309,784.00 $29,516.57 $296,514.16
117.05%
Supplies (Office, Misc.) $1,500.00 $0.00 $1,755.74
190.20%
Supplies (Concession)$17,600.00 $11,274.66 $33,475.70
100.56%
Fuel, Misc.$1,200.00 $157.98 $1,206.76
117.83%
Professional Services $24,000.00 $1,439.10 $28,279.45
155.78%
Sales Tax$4,508.00 $1,290.08 $7,022.55
114.97%
Telephone $1,700.00 $167.61 $1,954.52
74.08%
Electric $155,000.00 $8,861.09 $114,817.63
58.30%
Gas $60,000.00 $4,274.28 $34,979.70
49.86%
Water $30,000.00 $142.55 $14,958.05
104.23%
Refuse$2,500.00 $852.81 $2,605.67
110.49%
Insurance $20,000.00 $6,910.00 $22,097.00
11.00%
Education and Training$1,500.00 $0.00 $165.00
100.00%
Administration$13,019.76 $1,084.98 $13,019.76
97.06%
Misc.$3,035.00 $450.00 $2,945.86
114.62%
Repair Maintenance – Machinery $11,000.00 $10,485.85 $12,608.61
83.60%
Repair Maintenance – Building$30,000.00 $6,241.47 $25,080.57
Total Operating Expenses $686,346.76 $83,149.03 $613,486.73 89.38%
Net Income/Loss $0.00 ($46,734.49)($27,435.59)
** Notes**
Not the final for 2019 there are still outstanding expenses and revenues to be collected
STMA Arena Board Mtg 01/13/20 Page 4
STMA ICE ARENA CASH BALANCES AND RECEIVABLES
December 31, 2019
Cash Balance Operations
Cash Balance Operations 1/1/19 $ 80,695
Account Payable 2018 $ (15,601)
Add Revenues (collected in 2019) $ 586,051
Less Expenses $(613,487)
Est. Cash Balance Operations 12/31/19 $ 37,659
Accounts Receivable (invoiced)
Operations December 31, 2019 - $151,040.42
Cash Balance Dedicated Capital Improvement Fund
Arena Owner Dedicated Cap. Imp. Fund
Beginning Balance 1/1/19$156,581
Furniture ($10,798)
Sale of Sink$150
Zamboni ($139,676)
Donations (via City of Albertville Water Bill)$112
Invoiced St. Michael $15,000$15,000
Invoiced ISD 885 $15,000$15,000
Invoiced City of Albertville $15,000 $15,000
Balance 12/31/19$51,369
STMA Arena Board Mtg 01/13/20 Page 5
STMA Ice Arena Vendor Check Detail Register
December 2019
Check AmtInvoiceComment
Paid Chk# 007925E12/2/2019 AMERIPRIDE SERVICES, INC.
E 810-00000-405 Repair/Maint - Buildings$23.022201264819Arena mops,mats
Paid Chk# 007929E12/2/2019 CTM SERVICES, INC
E 810-00000-404 Repair/Maint - Machinery/Equip$682.154433Arena Service & Repair 2002 Olympia Ice Resurfacer
Paid Chk# 007932E12/2/2019 WATSON COMPANY
E 810-00000-252 Food/Concessions For Resale$903.45104343Arena Concessions
E 810-00000-252 Food/Concessions For Resale($19.70)104402Arena Concessions
E 810-00000-252 Food/Concessions For Resale$2,278.50104518Arena Concessions
Paid Chk# 007961E12/20/2019 BCBS OF MINNESOTA
E 810-00000-130 Employer Paid Ins (GENERAL)$776.0019120236596Emp Health Ins
E 810-00000-130 Employer Paid Ins (GENERAL)$3,430.0019120236596Emp Health Ins
Paid Chk# 007983E12/11/2019 COMDATA ARENA
E 810-00000-252 Food/Concessions For Resale$71.24Arena Concessions
Paid Chk# 007984E12/16/2019 AMERIPRIDE SERVICES, INC.
E 810-00000-405 Repair/Maint - Buildings$31.792201270070Arena mops,mats
Paid Chk# 007986E12/16/2019 DAN DEHMER LANDSCAPING INC
E 810-00000-300 Professional Srvs (GENERAL)$800.008688Arena November plowing per contract
Paid Chk# 007992E12/16/2019 FERRELLGAS
E 810-00000-212 Motor Fuels$128.491108719800Propane
E 810-00000-212 Motor Fuels$29.491108830139Propane
Paid Chk# 008004E12/16/2019 WATSON COMPANY
E 810-00000-252 Food/Concessions For Resale$557.31103294.Arena Concessions
E 810-00000-252 Food/Concessions For Resale($33.44)104656Arena Concessions Return
E 810-00000-252 Food/Concessions For Resale$764.99104727Arena Concessions
E 810-00000-252 Food/Concessions For Resale$1,009.63104905Arena Concessions
Paid Chk# 008006E12/16/2019 WRIGHT HENNEPIN COOP ELECTRIC
E 810-00000-381 Electric Utilities$10.74Arena Elevator Monitoring 12/31/19
Paid Chk# 008007E12/16/2019 ZEE MEDICAL SERVICE
E 810-00000-405 Repair/Maint - Buildings$19.5554102821Arena first aid kit replenshiments
Paid Chk# 008015E12/19/2019 MN DEPT OF REVENUE (TAX)
E 810-00000-315 Sales Tax$1,290.08NOVEMBER Arena Sales Tax
Paid Chk# 008021E12/19/2019 WATSON COMPANY
E 810-00000-252 Food/Concessions For Resale$921.81105138Arena Concessions
Paid Chk# 008035E12/30/2019 AMERIPRIDE SERVICES, INC.
E 810-00000-405 Repair/Maint - Buildings$31.792201275898Arena mops, mats
Paid Chk# 008052E12/5/2019 SIGNAPAY
E 810-00000-300 Professional Srvs (GENERAL)$188.20Arena cc fees
STMA Arena Board Mtg 01/13/20 Page 6
STMA Ice Arena Vendor Check Detail Register
December 2019
Check AmtInvoiceComment
Paid Chk# 039562 12/2/2019 A-TOOL SHED RENTAL & SALES
E 810-00000-416 Machinery Rentals$467.0842954Arena 3226 Sissor Lift
Paid Chk# 039569 12/2/2019 GREAT LAKES COCA-COLA DISTRIB
E 810-00000-254 Soft Drinks/Mix For Resale$2,502.243597207461Arena Concessions
Paid Chk# 039575 12/2/2019 METLIFE-GROUP BENEFITS
E 810-00000-130 Employer Paid Ins (GENERAL)$463.00Emp Life, Dental, Stdis,Vision
Paid Chk# 039576 12/2/2019 MN DEPT OF HEALTH
E 810-00000-433 Dues andSubscriptions$450.00Arena 2020 License Renewal FLB-13128-14607
Paid Chk# 039577 12/2/2019 MR CUTTING EDGE
E 810-00000-404 Repair/Maint - Machinery/Equip$110.001657Arena Ice Scraper Blades 84"
Paid Chk# 039581 12/2/2019 STEP SAVER INC
E 810-00000-405 Repair/Maint - Buildings$58.20132818Arena Bulk Salt #2
Paid Chk# 039587 12/3/2019 MN DEPT OF LABOR & INDUSTRY
E 810-00000-405 Repair/Maint - Buildings$100.00ALR0102194IArena ELV1048728 Elevator Annual Operation
Paid Chk# 039588 12/3/2019 RANDYS ENVIRONMENTAL SERVICES
E 810-00000-384 Refuse/Garbage Disposal$657.73DECEMBER Arena Trash Removal
E 810-00000-384 Refuse/Garbage Disposal$195.08NOVEMBER Arena Trash Removal
Paid Chk# 039589 12/3/2019 SCR, INC - ST. CLOUD
E 810-00000-405 Repair/Maint - Buildings$4,183.46W48520Radiant Heat-strong gas smell,unit heater in old equip
room-loud noise
Paid Chk# 039591 12/16/2019 ACE OF ALBERTVILLE - ARENA
E 810-00000-405 Repair/Maint - Buildings$9.96K10666/1Keykrafter brass key
E 810-00000-405 Repair/Maint - Buildings$10.98K10865/1faucent locknut, lever flush chrome
E 810-00000-405 Repair/Maint - Buildings$17.99K10880/1battery AA 16wide
E 810-00000-405 Repair/Maint - Buildings$11.98K10889/1lever flush sure fit wht
E 810-00000-405 Repair/Maint - Buildings($0.99)K10891/1lever flush sure fit wht credit,tank lever euro chrome
E 810-00000-405 Repair/Maint - Buildings$17.97K10911/1trans fluid dex qt
E 810-00000-405 Repair/Maint - Buildings$0.90K10961/1fasteners
E 810-00000-405 Repair/Maint - Buildings$6.99K10968/1coupl brs3
E 810-00000-405 Repair/Maint - Buildings$19.46K11005cleaner form 409,murphy oil soap,vinegar,fasteners
E 810-00000-405 Repair/Maint - Buildings($0.90)K111015/1fasteners credit return
Paid Chk# 039593 12/16/2019 AMERICAN SUPPLY GROUP INC.
E 810-00000-405 Repair/Maint - Buildings$164.925639GSanitare used 889 vacuum
Paid Chk# 039595 12/16/2019 BANYON DATA SYSTEMS
E 810-00000-300 Professional Srvs (GENERAL)$251.43159598Fixed Assets Support & POS Support
Paid Chk# 039597 12/16/2019 CENTERPOINT ENERGY
E 810-00000-383 Gas Utilities$4,274.285898 Lachman Avenue NE 5390131-0
Paid Chk# 039599 12/16/2019 CHARTER COMM-ARENA
E 810-00000-321 Telephone$51.6501315381201Arena Cable 8352305160131538
STMA Arena Board Mtg 01/13/20 Page 7
STMA Ice Arena Vendor Check Detail Register
December 2019
Check AmtInvoiceComment
Paid Chk# 039603 12/16/2019 CULLIGAN
E 810-00000-405 Repair/Maint - Buildings$21.00101X3321320DI Carbon Standby Rental Service 12/1/19-12/31/19
Paid Chk# 039609 12/16/2019 GREAT LAKES COCA-COLA DISTRIB
E 810-00000-254 Soft Drinks/Mix For Resale$272.403597207533Arena Concessions
Paid Chk# 039611 12/16/2019 HILLYARD
E 810-00000-404 Repair/Maint - Machinery/Equip$731.38603671040coreless tissue,urinal screen,roll towel,foam soap
E 810-00000-404 Repair/Maint - Machinery/Equip$899.36603680069wisconsin tee,arsenal
E 810-00000-404 Repair/Maint - Machinery/Equip($182.68)800451510disp hand sani tf purell return
Paid Chk# 039612 12/16/2019 HOWIES HOCKEY
E 810-00000-300 Professional Srvs (GENERAL)$213.20INV009062cloth tape,shin pad tape
Paid Chk# 039615 12/16/2019 LEAGUE OF MN CITIES INS TRUST
E 810-00000-150 Workers Comp (GENERAL)$6,910.0040001973 Insurance Premium STMA Youth Hockey
Joint Powers
Paid Chk# 039647 12/19/2019 CANTEEN REFRESHMENT SERVICES
E 810-00000-252 Food/Concessions For Resale$343.8414178000007caribou blend,caribou hot cup,caribou lids
E 810-00000-252 Food/Concessions For Resale$1,246.15MSP5311caribou blend,decaf,eng toffee capp,french vanilla
capp,white choc capp,cocoa,north sleeves,hot cups
Paid Chk# 039652 12/19/2019 LVC COMPANIES, INC.
E 810-00000-405 Repair/Maint - Buildings$380.0025152Arena Annual monitoring charge of fire system for
12/1/19-11/30/20
Paid Chk# 039653 12/19/2019 MR CUTTING EDGE
E 810-00000-404 Repair/Maint - Machinery/Equip$110.001763ice scraper blade 84"
Paid Chk# 039657 12/19/2019 PIRTEK PLYMOUTH
E 810-00000-404 Repair/Maint - Machinery/Equip$336.95PL-Arena hyd hose 390 bar
Paid Chk# 039658 12/19/2019 PREMIUM WATERS INC
E 810-00000-405 Repair/Maint - Buildings$182.40802827-11-19Arena water delivery
Paid Chk# 039659 12/19/2019 SCR, INC - ST. CLOUD
E 810-00000-405 Repair/Maint - Buildings$951.00C004330Monthly Blanket Billing
Paid Chk# 039664 12/26/2019 CHARTER COMM-ARENA
E 810-00000-321 Telephone$115.9601317021210Arena Voice 8352305160131702
Paid Chk# 039668 12/26/2019 METLIFE-GROUP BENEFITS
E 810-00000-130 Employer Paid Ins (GENERAL)$475.44Emp Life, Dental, Stdis, Vision
Paid Chk# 039681 12/31/2019 HILLYARD
E 810-00000-404 Repair/Maint - Machinery/Equip$7,156.61603695124Scrub WB disc trident,battery,dosing
Paid Chk# 039683 12/31/2019 MR CUTTING EDGE
E 810-00000-404 Repair/Maint - Machinery/Equip$175.001809Ice scraper blade 84"
Total MR CUTTING EDGE$175.00
STMA Arena Board Mtg 01/13/20 Page 8
STMA Ice Arena Vendor Check Detail Register
December 2019
Check AmtInvoiceComment
Paid Chk# 039689 12/31/2019 WATSON COMPANY
E 810-00000-252 Food/Concessions For Resale($92.34)105193Arena Concessions Refund
E 810-00000-252 Food/Concessions For Resale$548.58105513Arena Concessions
810 STMA ARENA $57,563.10
STMA Arena Board Mtg 01/13/20 Page 9
MANAGER’ GENERAL UPDATE
th
Date:January 13,2020
To:STMA Arena Board
From: Grant Fitch, STMA Arena Manager
AMRH–D
RENA ONTHLY ENTAL OURSECEMBER
UserHour Sold
STMAYHA 239 hours
ERYHA(Elk River) 64 hours
RYHA (Rogers) 14 hours
Adult Hockey 8 hours
High School Boys/Girls 72 hours
Public Skating/OH 22 hours
Private rentals 9 hours
________________________________________________________________________
Total Hours Sold 428 (2 sheets)
Monthly Budget Projection 400 (2 sheets)
Operations:
11-15-19: Troubleshot desiccant unit (Gold Rink) not heating, found stage 1 and 3 were tripped on height
limits, reset and checked operation, stage 3 would not stay on, shut off and cleaned flame sensor. Unit
now reaching set point
12-03-19: Install safety chain around CO2 tanks in new compressor room to meet OSHA safety
requirements.
12-16-19 after hours oil separator high level alarm, warm glycol and no pump flow alarm, superheat too
low alarm. All refrigeration service repairs for the new (Blue Rink and Gold Rink) are under warranty
until 10/1/20.
12-20-19 Reznor heater in Old compressor room repaired. Cost covered under the maintenance
agreement.
Construction:
11-27-19 SCR Finished disconnecting ductwork in the old mechanical room. Insulated caps to seal up
openings, scheduled to be installed next week.
st
Maintenance Agreement: SCR blanket started December 1 2019 and runs through December 2020
Spring & Summer Ice removal and install:
thrd
Gold Rink Ice out March 9and back in by April 3 2020
stst
Blue Rink Ice out (tentative schedule) June 1and back in by July 1 2020? Waiting for final details from
Breitbach Construction and the School.
st
The Knight Hawk event: Youth Hockey fundraiser is scheduled for Saturday March 216 to 12am
STMA Arena Board Mtg 01/13/20 Page 10
Tort Liability Insurance Renewal
Date:December 16, 2019
To: STMA Arena Board
From: Tina Lannes, Finance Director
Attached is the waiver form for review. The board can take action on one of the options listed
below.
1.Motion to waive the monetary limits on tort liability to the extent of the limits of the
liability coverage obtained from LMCIT.
2.Motion to NOT waive the monetary limits on tort liability
The STMA Arena Board has in past years waived our monetary limits on tort liability and
purchased additional coverage up to the $2,000,000 per occurrence and in aggregate. The
League of Minnesota Cities Insurance Trust (LMCIT) requires and the SECTION I: LIABILITY
COVERAGE WAIVER FORM states that members obtaining liability coverage from the
League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory
tort limits to the extent of the coverage purchased. This decision must be made by the governing
board. Entities purchasing coverage must complete and return this form to LMCIT before the
effective date of the coverage.
Upon submission of this "signed and dated" Waiver Form, the LMCIT will issue an Extension of
Coverage Binder effective with a 03/10/20 effective date.
It usually takes more than thirty (30) days for the LMCIT to process a renewal application. The
Extension of Coverage Binder assures the coverage beyond the 03/10/20 renewal date.
STMA Arena Board’s Insurance Agent continues to recommend waiving the monetary limits on
tort liability for the Arena.
STMA Arena Board Mtg 01/13/20 Page 11
LIABILITY COVERAGE – WAIVER FORM
Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust
(LMCIT) must complete and return this form to LMCIT before the member’s effective date of
coverage. Return completed form to your underwriter or email to pstech@lmc.org.
The decision to waive or not waive the statutory tort limits must be made annually by the
member’s governing body, in consultation with its attorney if necessary.
Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort
liability limits to the extent of the coverage purchased. The decision has the following effects:
If the member does not waive the statutory tort limits, an individual claimant could recover no more
than $500,000 on any claim to which the statutory tort limits apply. The total all claimants could
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 the member purchases the optional
LMCIT excess liability coverage.
If the member waives the statutory tort limits and does not purchase excess liability coverage, a single
claimant could recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap
liability limits are only waived to the extent of the member’s liability coverage limits, and the LMCIT
per occurrence limit is $2,000,000). The total all claimants could recover for a single occurrence to
which the statutory tort limits apply would also be limited to $2,000,000, regardless of the number of
claimants.
If the member waives the statutory tort limits and purchases excess liability coverage, a single claimant
could potentially recover an amount up to the limit of the coverage purchased. The total all claimants
could 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 claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
STMA Arena Board Mtg 01/13/20 Page 12
LMCIT Member Name:
__________________________________________________________________________
Check one:
The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn.
o
Stat. § 466.04.
The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. §
o
466.04, to the extent of the limits of the liability coverage obtained from LMCIT.
Date of member’s governing body meeting: _____________________________________________
Signature: Position: ________________________________
2
STMA Arena Board Mtg 01/13/20 Page 13