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HomeMy WebLinkAboutUntitled (2) League of Minnesota Cities Insurance Trust 145 University Avenue West,St. Paul,MN 55103-2044 (651)281-1200 • (800)925-1122 �M""�°°t°C' Fax:(651)281-1298 • TDD:(651)281-1290 Citiw p,mrrot+np es��oncw www.lmnc.org December 11, 2006 DEC 18 200G To: City Officials \ From: LMCIT Board of Trustees -------- Re: 2006 Property/Casualty Dividend We are very pleased to enclose a check for your city's share of the $4 million dividend which the LMCIT property/casualty program is returning to member cities. Also included in this mailing are the following: • A data sheet showing the premium and loss data used to calculate your city's dividend; and • A memo explaining in detail how your city's dividend is calculated. We've also enclosed two other items, which we ask you share with your city council: • A memo to elected officials with some background information on the dividend; and • Graphs showing your city's premium and dividend history. Please feel free to call Ann Gergen, LMCIT Associate Administrator, at 651-281-1291, if you have any questions or need any additional information. AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER LEAGUE OF MINNESOTA CITIES INSURANCE TRUST PROPERTY/CASUALTY 2006 DIVIDEND CALCULATION AT MAY 31, 2006 FOREST LAKE INSURANCE AGENCY DBA LANDMARK INSURANCE SVCS 232 S LAKE ST FOREST LAKE MN 550252 OAK PARK HEIGHTS 14168 OAK PARK BLVD P.O. BOX 2007 STILL WATER MN 55082 GROSS EARNED PREMIUM $ 902,300 ADJUSTED LOSSES $ 167,612 MEMBERS DIVIDEND PERCENTAGE .00146671374 DIVIDEND AMOUNT $ 5,867 . , League of Minnesota Cities Insurance Trust Property/Casualty Program OAK PARK HEIGHTS Premium and Dividend History $60,000 - $50,000 - - - --- - • $40,000 . '..-.::'::, !1, ,,,,;::' $30,000 $20,000 $10,000 $0 '97 '98 99 '00 '01 02 03 04 05 06 0 Premiums $43 126 $43,126 $48,711 $51 199 $49,224 $50,034 ' $56,791 $52,398 $53,282 $56 052 II Dividends $18,969 $15,430 $11,209 $7,858 $12,729 $14,393 $14 331 $14 235 $18,836 $5 867 • OAK PARK HEIGHTS Premiums and Dividends Since 1987 $1,000,000 , $900,000 — $800,000 — $897,125 $700,000 - $600,000 — $500,000 — $400,000 — $300,000 — $200,000 '' t $240,`077 $100,000 — $0 "t` " e , Premiums Dividends 784 . League of Minnesota Cities Insurance Trust LMC 145 University Avenue West,St. Paul,MN 55103-2044 (651)281-1200 • (800)925-1122 ua of Minnesota Cities 11\ Fax. (651)281-1298 • TDD:(651)281-1290 Cities promoting excellence 1 nC.oY www m g December 11, 2006 To: Mayors and council members of LMCIT member cities From: LMCIT Board of Trustees Les Heitke, Mayor, Willmar Sherry Butcher, City Council, Eden Prairie Joel Hanson, City Administrator, Little Canada Jim Miller, Executive Director, LMC Mark Sievert, City Administrator, Fergus Falls Todd Prafke, City Administrator, St. Peter Paul Sparks, Executive Director, Albert Lea Port Authority Re: 2006 Property/Casualty Dividend The LMCIT property/casualty pro ram is returning $4 million this year to member cities as a dividend. This is the twentieth straight year that LMCIT has been able to return a dividend, and it brings the sum of dividends returned to $191 million since 1987. We are very pleased and proud that our community of efforts has resulted in another successful year. LMCIT Dividends $191 Million Since 1987 $25,000,000 — -- $20,000,000 - $15,000,000 $10,000,000 - $5,000,000 Illilli iii11111 I '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 •Property/casualty CI Work Comp The reason LMCIT is able to return a dividend is simple: Member cities have controlled losses, paying off not only in dividends but in lower premiums as well. Liability premium rates are lower than they were ten years ago. Property premium rates are about the same as they were in 1992, and the coverage is now much broader. Our program is a tremendous success story, and as Minnesota city officials you should all be very proud of what you've accomplished by working together through LMCIT. AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER We've enclosed a chart showing your city's share of this year's LMCIT property/casualty dividend, how that compares with your premiums, and what your city's past premiums and dividends have been. Each city's share of the total dividend depends on the city's total premiums and losses for all the years the city has been a member of LMCIT. The longer your city has been a member and the more successful you've been in avoiding losses, the greater your city's dividend. Why doesn't LMCIT just reduce premiums instead of returning dividends? LMCIT embraces a conservative financial approach; the dividends are a by-product of that approach. LMCIT's premium rates are designed with a safety margin, so they'll cover losses and expenses even if the losses turn out to be greater than projected. If losses turn out to be at or below projections, that safety margin isn't needed and can be returned to the members. In addition to the safety margin, LMCIT also operates with a fund balance should losses turn out to be greater than even the margin is designed to fund. Unlike a private insurance company, LMCIT is owned and controlled by its member cities. Because it's a non-profit cooperative organization, if LMCIT has funds that aren't needed for losses, expenses, or reserves,the only place those funds can go is back to the member cities. Why is the 2006 dividend less than in previous years? It can take several years until claims are finally settled and we know for sure what the actual loss costs were for any given underwriting year. For this reason, we have to work with estimates, which are continually revised and updated. The program's results and the amount of dividend we can return in any one year therefore don't just depend on what happened during that year; the year's financial results are also affected by changes in our estimates of what prior year losses will ultimately cost. The main factor behind this year's smaller dividend is that we incurred losses at a higher level than projected,primarily a string of mid-sized to larger fire and storm losses in 2005 and the beginning part of 2006. These higher-than-projected losses reached into the safety margin we established when we set rates for the year. In addition, our review of prior years suggests that some of those losses may also turn out to be higher than we'd previously projected. Using our margin to pay for these losses means there's less available to give back as a dividend. The LMCIT Board also again used a small part of this year's net income to further strengthen the program's fund balance. The Board concluded that this was appropriate in light of the continued growth in the property/casualty program's premium volume and the increased amount of risk LMCIT is now retaining. Ultimately, dividends depend on losses. This year's losses and resulting smaller dividend is perhaps a good reminder that cities should be careful about budgeting for dividends. If you do budget for a dividend return, be sure to have a plan in case dividends turn out to be less than you've budgeted or in case there's no dividend at all. 2 What about 2007? Property/casualty premium rates will LMCIT Property and Liability Premium Rates increase slightly for 2007. Through our $20.00 --.___.__._ _-___-_._..-----_.-_------.--____...____.__ $0.20 a collective efforts we > ' $15.00 - , .r - - •- . ,•,. - - • - $0.15 , have been successful in keeping dollar loss o b $10.00 - . - - +' - $0.10 0 costs relatively stable Q o over the years, $5.00 $0.05 0 although we were hit $0.00 t t I r a i i i $0.00 with several significant '97 '98 '99 '00 '01 02 '03 '04 '05 '06 '07 fire and storm property w Liability - -« -Property losses in 2005 and 2006. • We've also reduced reinsurance costs by increasing the amount of risk LMCIT retains. This should save money in the long run, but it could also result in more variability in LMCIT's loss costs and in dividends in the future. Work comp premium rates will remain flat, overall. Medical costs in workers' compensation continue to increase, although at a slightly less alarming rate than in recent years. We've also seen a positive trend in indemnity benefits, which have been increasing at a rate about equal to wage inflation. After several years of rate LMCIT Work Comp Injuries increases, we're very Average Medical Cost per Claim pleased to be able to hold work comp rates steady for $7,000 2007. $6,000 - $5,000 Once every three years we $4,000 adjust the relative work $3,000 - comp rates for our various $2,000 - job classes. For 2007, this $1,000 - means your city's work $o , , , comp rates may shift '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 slightly due to payroll increases as well as the impact of your particular job class make-up. At the end of the day of course, premium rates and dividends both depend on how many losses we have and how big they are. There is very real value to be found in working earnestly to g Y Y g Y prevent and control losses. Effective loss control requires both the support of the city's elected officials and the conscientious daily efforts of your city staff. The rate and dividend outlook this year attests to the fact that LMCIT member cities have been doing an outstanding job at this! Thank you and congratulations. 3 Questions If you have any questions about your city's share of LMCIT dividends or our premium rates for 2007,please call Ann Gergen, LMCIT Associate Administrator, at 651-281-1291, or any of the members of the LMCIT Board. 4 League of Minnesota Cities L Insurance Trust MC 145 University Avenue West,St. Paul,MN 55103-2044 (651)281-1200 • (800)925-1122 League of Minnesota Mae Fax:(651)281-1298 • TDD:(651)281-1290 Cities promoting axcenence www.lmnc.org December 11, 2006 To: LMCIT cities and agents From: LMCIT Board of Trustees Re: 2006 LMCIT Property/Casualty Dividend Calculation II Members of the LMCIT property/casualty program are sharing this year in a$4 million dividend. This memo will give you information on the dividend, how your city's share is calculated, and what you might expect in terms of future dividends. How does LMC1T determine your city's dividend? The first step is for the LMCIT Board to determine how much surplus funds are available and not needed for losses, expenses, or reserves. This year the Trustees determined $4 million could be returned to our member cities. The next step is to allocate the dividend among LMCIT members. The surplus that LMCIT has p g p at any one time is a cumulative result of all cities' premiums and losses since LMCIT began. Cities that have been members the longest, have contributed the most in premiums, and have had fewer losses have in effect contributed more to creating the surplus. The dividend formula is designed to return a proportionally greater share of the total dividend to those cities. Each city's share is proportionate to the difference between that city's total earned premiums and total incurred losses for all the years the city has participated in LMCIT. The formula also incorporates a"loss limiting factor" to temper the effect of a sing le large g loss on the city's dividend. Without this kind of limitation, a small or mid-sized city Pp that happened to be hit by a single catastrophically large loss might not receive any dividend for many years. The dividend calculation The enclosed sheet shows the premium and loss figures used to calculate your city's dividend. The premium figure is your city's total of all earned premiums through May 31, 2006, for all of the years the city has been an LMCIT member. The adjusted loss figure is your city's losses for all years of participation, minus applicable deductibles, and after capping each individual large loss. For purposes of the dividend formula, each individual loss is capped at the lesser of either the city's earned premium for that year or$100,000. To calculate the dividend, we subtract your city's adjusted losses from your earned premiums. The remainder represents your city's contribution to the surplus. We do that same calculation for AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER all of the member cities, add up all of those remainders, and then calculate your city's remainder as a percentage of that total. Your city receives that percentage of the $4 million total that's available this year. This is the same formula we've used for many years. What's behind this year's dividend? Dividends and premium rates are very closely tied together. Most LMCIT members are very familiar with LMCIT's approach to rate-setting. Briefly, the premium rates incorporate a safety margin. That is, the premiums plus investment income are designed to produce enough revenue to cover losses and expenses even if losses turn out to be greater than projections. If losses turn out to be at the same level we projected, then the margin isn't needed to pay for losses and is available either to be returned to members as a dividend or used to strengthen LMCIT's fund balance. If losses turn out to be lower than projected, those additional savings also become available to be returned to members. One fact of life in any insurance operation is that it can take several years until claims are finally settled and we know for sure what the actual loss costs were. For this reason, we have to work with estimates, which are continually revised and updated. The program's results and the amount of dividend we can return in any one year therefore don't just depend on what happened during that year; the year's financial results are also affected by changes in our estimates of what losses from earlier years will ultimately cost. The main factor behind this year's smaller dividend is that we incurred losses at a higher level than projected, primarily a string of mid-sized to larger fire and storm losses in 2005 and the beginning part of 2006. These higher-than-projected losses reached into the safety margin we established when we set rates for the year. In addition, our review of prior years suggests that some of those losses may also turn out to be higher than we've previously projected. Using our margin to pay for these losses means there's less available to give back as a dividend. The LMCIT Board also again used a small part of this year's net income to further strengthen the program's fund balance. The Board concluded that this was appropriate in light of the continued growth in the property/casualty program's premium volume and the increased amount of risk LMCIT is now retaining. Should we expect similar dividends in the future? Because losses were greater than expected, this year's dividend is significantly less than in recent prior years. This smaller dividend amount is a good reminder for cities to be cautious about building dividend returns into their budgets. If your city budgets for a dividend, make sure you have a plan for what you might do if there is no 2007 dividend or if it's smaller than this year's return. Whether there will be dividends in the future depends on the interplay of premiums and losses. Because we can never know what losses we'll have from tornadoes or fires (or lawsuits or car accidents or sewer backups or whatever), we can never know whether there will be dividends in the future. The most important thing to keep in mind is that there's never a guarantee. p g P g 2 As a very general comment, we would look for future dividend amounts to be more variable from year to year, and for future dividends to be smaller on the average. Here's why: • Increased risk retention. LMCIT now retains $1 million per occurrence on liability claims, as well as an increased risk on property losses. Retaining more risk reduces LMCIT's reinsurance costs and we expect it will produce net savings in the long run, even though we'll now be paying more of the losses directly. The higher retention also means that our net loss costs will probably be more variable from one year to the next, which will likely translate into more variability in dividends as well. To put it another way, with the higher retention we expect on the average to save money for cities,but it means we'll do a little better financially in the good loss years and a little worse financially in the bad years. • Smaller margins. In recent years, we've been building a smaller safety margin into the rates, and instead relying more heavily on the accumulated fund balance for the needed contingency funding. All else being equal, the result would be smaller average dividends. We'll do our best to run the program as economically as we can, and LMCIT will continue to return to members any funds that aren't needed for losses, expenses, or reserves. But we can't guarantee that there will always be a sizable dividend, or any dividend at all. It's important to keep this in mind when you're doing your financial planning. In short, here are the two key points to remember: 1. Don't rely on there being future dividends. 2. At the end of the day, dividends depend on losses. Regardless of what the future may hold, we want to congratulate member cities on another successful year. The record shows that the basic idea of LMCIT—cooperative risk management by cities—really works. The reason it works is because of cities' commitment to cooperation and to controlling losses. It's a record that Minnesota cities should be very proud of. If you have any questions or comments please feel free to contact Ann Gergen, LMCIT Associate Administrator, at 651-281-1291, or call any of the members of the LMCIT Board. 3 League of Minnesota Cities Insurance Trust 145 University Avenue West,St. Paul,MN 55103-2044 (651)281-1200 • (800)925-1122 ioagw<of Minnorota Cities Fax:(651)281-1298 • TDD:(651)281-1290 Cities promoting exca)lon� www.lmnc.org November 29, 2006 To: LMCIT members and agents From: Pete Tritz Re: Rates, dividends, and coverage changes Enclosed are materials explaining the dividend actions and the changes in coverage and premium rates LMCIT members will see for the coming year. As always, feel free to contact LMCIT if you have questions or comments about any of these. A couple of the changes will call for some action or decisions by the city. In particular, we'd suggest that the city pay particular attention to these two: • The statutes require minimum limits of$50,000 for uninsured/underinsured motorist coverage. Many cities have elected to increase that limit to $1 million. The premium charge for that increased limit will increase substantially this year. In light of that increase, cities should review why they carry the increased limit, what value if any that increased limit provides to the city, and whether it continues to make sense for the city to purchase higher UM/UIM coverage limits on city vehicles. • There are some changes and new limitations in how the LMCIT liability coverage will respond to a claim against a city employee which results from the employee's activities as a member or officer in an outside organization. Cities should review what organizations city employees are involved in and whether those organizations have addressed their liability risks, and decide whether participating in the organization will be considered part of the Y employee. employee's duties as a cit to P Y Finally, for several years LMCIT has been working on finding a better solution to covering the risk of flood damage to city buildings. We've developed some ideas for how LMCIT might be able to provide flood coverage, but it would involve some additional cost to member cities. The LMCIT Board is looking for feedback from cities and agents about whether to go ahead with the project. The enclosed memo outlines how a flood coverage program might work, and what the benefits and costs might be. Please review it and let us know what you think. AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER League of Minnesota Cities Insurance Trust 145 University Avenue West,St. Paul,MN 55103-2044 (651)281-1200 • (800)925-1122 LT ta Cth Fax:(651)281-1298 • TDD: (651)281-1290 x�e/lenao www.lmnc.org November 29, 2006 To: LMCIT members and agents From: LMCIT Re: Coverage changes for 2006-2007 Here's a summary of coverage changes cities will see for the coming year. These changes will affect property/casualty coverage written or renewed on or after November 15, 2006. Bond coverage Faithful performance coverage. All bond coverage will now be written as blanket faithful performance coverage. LMCIT will no longer offer the option of fidelity-only coverage, or fidelity coverage with faithful performance coverage on specific positions, which very few cities used. Like fidelity coverage, faithful performance coverage protects the city for losses from employee dishonesty. Unlike fidelity coverage, faithful performance cover e als c vers other types of losses to the city that are caused by an employee's malfeasance, wil ect of duty or bad faith. Audit and accounting costs. The bond coverage will now include coverage for audit and accounting costs the city incurs in connection with a bond loss, up to an amount equal to 25% of the city's actual loss. Property coverage Terrorism losses. LMCIT currently gives the city a maximum of$1 million per year of coverage for property damage caused by terrorism. For the coming year, that limit will increase to $5 million annually. However, the $1 million annual limit will still apply to damages caused by chemical or biological contamination or by cyber-terrorism. (Note that the LMCIT property coverage excludes coverage for any nuclear contamination, regardless of the cause.) Vacant buildings. For several years, LMCIT has limited coverage for damage to any vacant building to an amount equal to the market value of the building. The coverage language is revised to clarify that coverage for costs such as demolition, debris removal, and pollutant cleanup are within, and not in addition to, that limit. Extraordinary expense coverage. LMCIT's unique "extraordinary expense"coverage is designed to assist cities who are hit with a cash flow problem because of necessary but unanticipated expenses the city has incurred in order to protect the public health and safety or to AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER meet the city's legal obligations. For the coming year, the limit on this coverage will increase from $100,000 to $250,000. More information on the extraordinary expense coverage is available on the League website at http://www.lmnc.org/lmcit/memos.cfm. Asbestos and pollutant cleanup. The coverage language is revised to clarify when and how the coverage for asbestos and pollutant cleanup applies. The asbestos and pollutant cleanup coverage applies when a city building has been damaged or contaminated by a release of accidental release, discharge, or dispersal of asbestos or other pollutants which begins and ends within a 72 hour period. However, this doesn't apply if the release was the result of a renovation, remodeling, or demolition project. The limit for pollutant cleanup coverage will increase to $250,000, same as the current asbestos cleanup limit. Property in the open. There are minor changes to slightly broaden the types of property in the open(PIO) which are automatically covered when the city schedules PIO coverage for a specific site. — Auto coverage UMIUIM coverage. The language for the uninsured/underinsured motorist(UM/UIM) coverage is revised to clarify that the intent is to provide the exact type and scope of coverage which state law requires. Work comp Diagnostic testing for meningitis. The LMCIT work comp coverage includes coverage for the cost of diagnostic testing of employees who have been potentially exposed to four specified infectious diseases: hepatitis, HIV/AIDS, tuberculosis, and anthrax. The coverage pays up to $2,500 per exposure incident for the cost of medically appropriate diagnostic testing following an on-the-job exposure incident. For the coming year, meningitis is added to the list of diseases for which diagnostic testing is covered. Liability coverage There will be a new $1 00,000 annual limit on coverage for liability claims against city officers or employees which arise from their activities as officers or members of outside organizations. A separate memo is enclosed which explains this change and the reasons for it, and offers suggestions for how cities should address this risk. • League of Minnesota Cities Insurance Trust 145 University Avenue West,St.Paul,MN 55103-2044 reagua to Gear (651)281.1200 • (800)925-1122 zce�ona Fax:(651)281-1298 • TDD:(651)281-1290 WWW.Imnc.org November 29, 2006 To: LMCIT Members and Agents From: LMCIT Board of Trustees Re: 2006—2007 Property/Casualty Rates and Dividend 2007 Workers' Compensation Rates Property/casualty rates and dividend for 2006 -2007 Rates Here are the premium rate changes LMCIT members will see at their next renewal. The property/casualty rate changes apply to renewals on or after November 15, 2006. • Municipal liability rates will decrease 3%. • Property rates will increase 10%. • Auto liability rates will decrease 3%. • Auto physical damage will decrease 3%. In addition to these changes, there's a significant rate change for increased limits on UM/UIM. The rate for$1 million limits will increase 250%. Rates for the basic $50,000 limit will remain unchanged. As we review our loss experience, it's clear that our rates are insufficient to reflect the risk associated with UM/UIM claims—particularly at the increased limit. The increase reflects the actual risk based on our loss experience. The rate increase will no doubt cause some cities to reevaluate whether the higher limits are really necessary. To help in that evaluation we've redrafted our risk management memo on auto coverage options to include a full discussion of the UM/UIM options. That memo is available on our website or by calling the League offices. There are no changes for excess liability, machinery breakdown, liquor liability, bond rates, or open meeting law defense. Rate changes are primarily driven by loss experience. The rate changes listed do not mean that your city's actual premium will necessarily increase or decrease by these exact amounts. Although rates do indeed influence premiums, your city's actual premium will also be affected by changes in expenditures, property values, payrolls, and other exposure measures, and also by changes in your experience rating. AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER • Dividend Property/casualty program members will share a$4 million dividend this year. This is quite a bit less than the $12 million we returned last year and the $9 million we returned for three years prior. The decrease in dividend is primarily the result of higher-than-usual losses and loss development. As it turns out, there were quite a few mid-sized to large losses in 2005-2006. As in the past, we'll distribute the dividend in mid-December. The dividend formula will be the same as we've used for several years. Under that formula, each city's share is proportionate to the difference between the city's total earned premiums and total incurred losses for all years the city has been a member, with large individual losses capped for purposes of the formula. Work comp rates for 2007 Overall work comp rates will remain steady for 2007, although class rate changes may impact cities differently. Every three years,the LMCIT Board reviews and revises the relative levels of premium rates for the various classes of employees. To the extent possible, we set the rates for each class based on LMCIT's own actual loss experience by class for the preceding five-year period. In implementing adjustments to the class rate schedule for 2007, we've imposed a 20% constraint on the amount of increase by which any individual class rate can change. For a city with a typical mix of payrolls, the class rate changes will offset each other to a large extent. However, a purpose s ecial entity member with most of its payroll in one or two classes p will see a much bigger effect. This is particularly noticeable for 2007 in the volunteer fire class. But it's important to note that the actual increases for a few classes would have been much greater without the 20% cap. Without the cap, volunteer fire rates based on the actual losses would have increased almost 75%. The following table details the 2007 rate changes for the classifications that cover the bulk of city payrolls. There are a number of other classes that are used more sparingly in cities. It's important to note that most job class rates are shown per $100 of payroll. The rates for volunteer fire (7708 and 7718) are shown per 100 of population. LMCIT % LMCIT Code Description 2006 Change 2007 5506 Street 7.04 11 7.80 9402 Sewer, snowplow, etc. 7.04 11 7.80 7380 Ambulance 6.27 -17 5.18 7381 Vol. Ambulance 6.34 20 7.61 7502 Gas Ops 2.42 20 2.89 7520 Waterworks 3.03 20 3.64 7539 Electric or Steam Plant 4.00 -9 3.64 7580 Sewage Plant 4.03 -39 2.48 7610 Cable TV .40 19 .48 2 7706 Fire- Paid 6.13 11 6.79 7716 Fire- Paid (non-smoking) 5.53 11 6.11 7708 Fire-Volunteer 62.99 20 75.59 7718 Fire-Vol (non-smoking) 56.71 20 68.06 7720 Police 4.06 -4 3.90 7721 Police (non-smoking) 3.65 -4 3.51 8017 Liquor-Off Sale 2.13 3 2.19 8227 City Shop 5.26 15 6.05 8810 Clerical .61 19 .72 8829 Nursing Home-Prof 4.89 -10 4.42 _ 8830 Nursing Home-Other 3.63 10 3.99 8833 Hospital-Prof 2.64 -17 2.19 - 9015 Building Maint 4.80 -2 4.72 9033 Housing Authority 3.62 -25 2.71 9040 Hospital-Other 5.44 20 6.52 9060 Golf course 1.72 -7 1.60 9063 Community center 1.56 -15 1.33 9084 Liquor-On Sale 3.53 -9 3.22 9102 Parks 3.21 3 3.31 9182 Ice Arenas 1.87 -33 1.25 9403 Garbage 7.06 1 7.11 9410 Municipal Employees 1.10 -62 .42 9411 Elected Officials .42 -57 .18 In addition to the overall flat rates and indicated class rate changes,the work comp credit for managed care participation will be reduced from 3%to 2%. Ongoing analysis of the managed care work comp program shows inconclusive savings for participation in managed care. While we think a credit still makes sense for managed care, the reduction is indicative of some caution about the ultimate benefit of managed care in workers' compensation. The work comp program will not return a dividend this year. What's behind the rate changes? Property/casualty Overall, the liability loss picture doesn't look much different than it has in the recent past, and we don't see any new trends or alarming patterns. Liability losses make up not quite half of our total loss cost and have been remarkably stable for the past few years. Actual loss costs have been coming in below our projections. Litigation relating to land use regulation and development continues to be a concern. Land use litigation costs average between about$2 and $2.5 million a year-and they can vary a great deal from year to year. Of similar concern are sewer back-up liability costs, which shot up to the $2 million range in 2005 and are expected to be similar for 2006. Police liability claims also look to be high thus far in 2006. Property makes up about a third of our loss cost and property losses tend to be more variable than liability. We did have higher-than-expected property losses this year, which accounts for 3 the rate increase. A string of storm, fire and other losses pushed loss rates up in the '05 underwriting year and the early projection is that '06 will be similar or worse. The other major factor impacting this year's property rates is an increase in LMCIT's reinsurance premiums. Because of the high reinsurance limits we need to purchase in order to cover possible catastrophic losses (e.g. the tornado that moves through several cities), reinsurance costs are a large cost component in our property program, representing about 35%of property premium costs. Our reinsurance costs have gone up this year in part due to our loss history and also as a result of coverage changes we've implemented. Work comp Although we were able to keep overall work comp rates flat for 2007, rising medical costs continue to be a major concern. Medical costs for work comp injuries are projected to continue increasing at a rate of about 9% a year. Medical costs now make up over half of work comp loss costs—about as much as indemnity benefits, Special Compensation Fund assessments, and defense costs combined. Our work comp indemnity costs have been generally stable and less than projections. While this is good and helps offset the increase in medical costs, we also need to keep an eye on injury frequency. Hopefully cities can continue reducing the numbers of employee injuries; that's really the best tool we have to control future premium costs. Investment income remains a very important element in the LMCIT work comp program, though not quite as significant as it was a few years ago. Investment income now produces about a quarter of the program's total revenue; a few years ago, it was over a third. Nevertheless, investment income is still very important. Premiums alone would not quite cover projected losses, let alone administrative and reinsurance costs. How was the dividend amount determined? Most LMCIT members are very familiar with LMCIT's approach to rate-setting. Briefly, the premium rates incorporate a safety margin. Premiums plus investment income are designed to produce enough revenue to cover losses and expenses even if losses turn out to be greater than projections. If losses turn out to be at projections, that margin isn't needed to pay for losses and is available either to be returned to members as a dividend or used to strengthen LMCIT's fund balance. If losses turn out to be lower than projections, that additional savings also becomes available to be returned to members. It can take several years until claims are finally settled and we know for sure what the actual loss costs were for any given underwriting year. For this reason, we have to work with estimates, which are continually revised and updated. The program's results and the amount of dividend we can return in any one year therefore don't just depend on what happened during that year; the year's financial results are also affected by changes in our estimates of what prior year losses will ultimately cost. 4 The main factor behind this year's smaller dividend is that we incurred losses at a higher level than projected, primarily a string of mid-sized to larger fire and storm losses in 2005 and the beginning part of 2006. These higher-than-projected losses reached into the safety margin we established when we set rates for the year. In addition, our review of prior years suggests that some of those losses may also turn out to be higher than we've previously projected. Using our margin to pay for these losses means there's less available to give back as a dividend. The LMCIT Board also again used a small part of this year's net income to further strengthen the program's fund balance. The Board concluded that this was appropriate in light of the continued growth in the property/casualty program's premium volume and the increased amount of risk LMCIT is now retaining. If you have any questions or comments, please feel free to contact Pete Tritz or Ann Gergen at the League office, or any of the members of the LMCIT Board. 5 League of Minnesota Cities LMC Insurance Trust 145 University Avenue West,St. Paul,MN 55103-2044 League of 1Kinnesota Cities (651)281-1200 • (800)925-1122 Fax:(651)281-1298 • TDD:(651)281-1290 Cities promoting exceNenos www.1mnc.org November 29, 2006 To: LMCIT members and agents From: LMCIT Re: Liability coverage—employee activities in outside organizations Beginning in 2006-2007, the LMCIT liability coverage will include new provisions addressing when and how the LMCIT liability coverage will respond to claims against city officers or employees arising from their activities as officers or members of outside organizations. There are two elements to the changes: • The city council will determine whether or not an employee's activities in a particular i /her city duties. The council's organization are considered to be within the scope of h s y g P decision is final for purposes of coverage. • When the city council determines that an employee's activities in a particular organization are within the scope of his/her city duties, coverage for claims arising from that employee's activities in that organization are subject to a$100,000 annual limit per employee. Background City officers and employees often participate in outside organizations that are related in some way to their city duties. Examples include associations of wastewater operators, fire instructors, finance officers, etc. These organizations may engage in a wide variety of types of activities. If the employee's activities in those organizations leads to a liability claim against the individual, the organization may or may not have insurance or assets to defend and indemnify the employee for that liability claim. If the organization is unable or unwilling to defend the individual, s/he will very likely look to the city for protection, and the city will likely look in turn to LMCIT. Why is this potentially a problem? This type of liability claim is problematic for a number of reasons: • The LMCIT liability coverage applies to claims against an individual which arise from activities within the course and scope of the individual's city duties. Determining whether an employee's activities in a particular organization are within his/her city duties is sometimes difficult. There are a wide range of types of organizations, that relate in different ways to city activities. Some organizations clearly have the purpose of benefiting the city; some are focused on broader public benefit, and benefit the city only indirectly if at all; others are AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER individual, rather than the city; and many have all of clearly more focused on benefiting the indi y, y these purposes in varying combinations. The city council might not have a clear idea of what activities the outside organization is engaged in, or even that the employee is involved in such an organization. At the same time though, most cities also won't want to just leave their employee hanging on his/her own if s/he is being sued; and that may lead the city after the fact to take an expansive view of what's part of the employee's duties. • These organizations may be involved in any of a wide range of activities with significant potential for generating liability claims: holding conventions; conducting training; fund- raising activities; promulgating standards; advising, consulting, or making recommendations to members or cities; "certifying" individuals or departments or cities; censuring individuals for code of conduct violations; and so on. From LMCIT's standpoint, the concern is that we have no opportunity to be aware of the activities of these organizations, to evaluate those risks of those activities, or to provide risk management assistance to control and minimize those risks. Essentially, it can put LMCIT in the position of being the "insurer by default"of risks that we don't know about and don't have any opportunity to control. • There's a potential for catastrophically expensive claim costs. Employees from many different cities might be involved in the same organization, and could be sued in a single incident. That in turn could mean that there's a claim under each of five or ten(or twenty or fifty) cities' LMCIT liability coverages. Under the current coverage, LMCIT could be responsible for up to $1 million of damages (or more if the city has excess coverage) for each of the cities. In total,that could add up to an enormous cost. It can be even worse if the claims arise from a dispute among the individuals participating in the organization; LMCIT could literally end up paying for both sides who are suing each other. How is LMCIT addressing this issue? In addressing this issue, the LMCIT Board tried to find a balance between several somewhat conflicting goals: providing the broadest possible coverage to meet cities' risk management and coverage needs; protecting LMCIT members' funds by controlling the risk of very large loss costs that could result from these types of claims; and providing some certainty as to when these types of claims are covered and when they are not. The changes make it entirely the city's call as to whether or not an employee's activities in any outside organization are considered to be within the scope of the employee's city duties. That eliminates any potential factual disputes about whether on not coverage applies. The city can make that determination at any time, either in advance or after a claim has already occurred. The $100,000 limit greatly reduces the potential for catastrophically large loss costs to LMCIT. At the same time, it provides some safety net protection that should be enough to address many of the"surprise" situations that might come up. What kinds of outside organizations does this affect? Here's the definition of the "outside organizations"that are affected: 2 • A formally organized membership organization • A professional organization • Any for-profit or non-profit corporation These new provisions and limits don't affect city relief associations, which are already automatically covered under the city's LMCIT liability coverage. Nor do these changes affect joint powers entities or other governmental entities such as HRAs, utilities commissions, port authorities, etc. (Information on how coverage works for these types of entities is available on the League website. Contact LMCIT with any questions.) Finally, these provisions and limits don't affect any entity that's named as a covered party on the city's coverage. What should the city do to manage these risks? As a first step, it's a good idea to find out what organizations your city employees are involved in as members or officers,that might arguably be considered to be city-related. You'll also want to find out what the purpose of each organization is and what sorts of activities the organization is involved in. In some cases,the city might determine that participation in a particular organization is not part of the city employee's city duties. In such a case, the city should let the employee know that if s/he chooses to participate in the organization, s/he is doing so on his/her own. It is a good practice to provide that information to the employee in writing. In other cases, the city might conclude that an employee should be encouraged or even required to participate in a particular organization. In those cases, the city will want to find out whether the organization has liability coverage to protect its members and officers for claims arising from those activities. If the organization hasn't done anything to cover the liability risks its officers and members face because of the organization's activities, the city has several options: • You might decide that the city is comfortable simply assuming the risk that the damages and defense costs for a liability claim against a city employee arising from his/her activities in the organization will be greater than the $100,000 limit. (In evaluating that risk, note that for unpaid officers or members of a non-profit corporation, M.S. 317A.257 provides some, but by no means complete, protection from liability claims.) • You might decide that participating in the organization will not be considered part of the employee's city duties. In that case, of course, the city should make sure the employee understands that if s/he chooses to participate, s/he is doing so on his/her own. • The city may want to encourage the organization to get liability coverage. (In some cases depending on the organization's purpose and structure, the organization may be eligible to obtain coverage through LMCIT.) Questions? Contact Pete Tritz (651-281-1265; ptritz @lmnc.or2) or Ann Gergen (651-281- 1291; agergenalmnc.org) at the League office. 3 League of Minnesota Cities L MC Insurance Trust 145 University Avenue West,St. Paul,MN 55103-2044 (651)281-1200 • (800)925-1122 'AVM,of MiInasotn Geier Fax: (651)281-1298 • TDD:(651)281-1290 Cities promoting amoalknaa www.lmnc.org November 29, 2006 To: LMCIT members and agents From: LMCIT Re: Flood insurance—request for comments The LMCIT Board of Trustees is considering expanding property coverage to provide automatic flood insurance protection for all city buildings. We believe it's feasible to do so. It would involve increased premium costs for many cities, but that cost should be significantly less than the cost of flood insurance through the National Flood Insurance Program (NFIP). This memo outlines how the proposed flood coverage program would work, and what the costs, risks, and benefits would be. Because this would be a new coverage area with significant cost implications for cities, the LMCIT Board is seeking comments from cities on the concept, and in particular whether or not you would favor implementing a flood insurance program. The Board's final decision will rest in part on the feedback received from members. Background Right now many cities have no coverage for flood damage to many of their buildings. LMCIT provides limited flood coverage, but only for certain city buildings. Not every flood is automatically a "disaster, so in any given situation FEMA or state assistance may or may not be available. LMCIT currently provides limited coverage for flood damage to certain city buildings. If a city documents that a particular building is outside the 500-year flood plain,that building is scheduled as "Code A" on the property schedule. A city's "Code A"buildings are covered for flood damage up to a$500,000 annual aggregate limit. That limit applies to all water and flood damage during the year, regardless of the number of incidents or the number of buildings affected. LMCIT classifies buildings within the 500-year flood zone as "Code C". For Code C buildings the city's only current option for covering flood damage is to purchase flood insurance through the National Flood Insurance Program (NFIP). Only a handful of cities currently purchase flood coverage, and then only on certain selected buildings. The main reason few cities purchase NFIP flood insurance appears to be cost; an NFIP flood insurance policy for a city building may cost three to six times the LMCIT property premiums for that building. AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER Code C buildings—i.e., buildings for which LMCIT provides no flood coverage—make up about 45% of the total value of LMCIT members' buildings. 65% of LMCIT member cities have at least some buildings classified as Code C. Again- it's important to remember not every flood is a"disaster" for which FEMA or state assistance would be available. You cannot assume that if flood damage occurs federal or state disaster assistance will be available. It may or may not be. How would the proposed LMCIT flood coverage program work? The concept the LMCIT Board has been considering would work like this: • All city buildings would automatically be covered for flood damage. The coverage would be at least as broad as what an NFIP flood insurance policy would provide. • The limit on each building would be the lesser of either the actual replacement cost value or $500,000 on the building, plus the lesser of either actual replacement cost or $500,000 on contents. This matches the maximum limit offered by NFIP. • The flood insurance would be paid for through a surcharge on the property premiums for buildings within the 500-year flood hazard area. For buildings outside the 500-year flood zone,premiums wouldn't change(or would change by at most no more than a percent or two). A flood insurance program is probably only workable if the coverage is automatic and mandatory. We don't believe it's feasible to offer flood coverage as an option because of the "adverse selection"problem that would create. How much would it cost? Our best estimate of the amount needed to make the proposed flood insurance program work is in the range of 35% of the total property premiums on properties within the 500 year flood plain. If the cost were spread as a flat premium surcharge against Code C properties we estimate the premium surcharge would be in the range of 30 to 40 percent of the current LMCIT property premiums on those buildings. Please note that no decision has been made on an actual rating system, and there are any number of possibilities for alternative rating structures. E.g., there might be different surcharges for properties inside and outside the 100-year flood zone; or since the maximum limits would be $500,000 building and $500,000 contents, it might be appropriate to use a higher surcharge applied only to the premium for the first $1 million of value on high- valued buildings; and so on. To help put the costs in context, here are a couple cost comparisons for some"typical" city buildings: Dollar Cost of an NFIP Cost of an NFIP LMCIT property amount of a flood insurance flood insurance Building and premium at 35% policy,within policy, outside contents value current average premium the 100-year the 100-year LMCIT rates surcharge flood zone flood zone Bldg: $200,000 Contents: $100,000 $450 $158 $3,325 $1,836 Bldg: $500,000 Contents: $500,000 $1,500 $525 $8,257 $3,879 Is flood really worth worrying about for most buildings? The risk of flood damage is not insignificant, even for buildings considered to be at low or moderate risk for flood. Spring run-off flooding of rivers and streams is the obvious risk that most of us will think of, but it's not the only flood risk. Localized torrential rainfall can also cause flood damage, and that can happen just about anywhere, including in areas considered to be at a low or moderate flood risk. There's a great deal of information on flood risks at FEMA's website at http://www.floodsmart.gov/floodsmart/pages/index.isp Tell us what you think A 35%premium increase on buildings in the 500-year flood plain would be significant, and it's not something the LMCIT Board would do lightly. Before making that decision, the Board wants to hear what you think. • Would you favor going ahead with a flood program, if it meant premium increases as outlined above? Would the benefit be worth the cost? • Should LMCIT continue to leave it to individual cities to decide whether to either buy an NFIP policy or self-insure their flood risk? • Should LMCIT look instead for other options— i.e., one that provides less protection but costs less? As you consider these questions and your reactions, here's a quick recap of the key points to consider: • Many cities currently have no coverage for flood damage to many of their buildings. Federal or state disaster assistance might or might not be available; if not, the city would be on its own for flood damage. • We think it's feasible to provide flood coverage for all city buildings, but it would significantly increase cities' property premium costs for buildings within the 500-year flood zone. Our best estimate is the increase would be in the range of 35% of the premiums on those buildings. • Here are a couple other ways to think of that additional cost: It would be equivalent to about a 15% increase in total property premiums, or about a 5% increase in total property/casualty premiums. • Paying a 35%property premium surcharge to LMCIT would be far cheaper than buying an NFIP flood insurance policy—in the range of 5-15%of what the NFIP premium would be. • Remember—both the flood coverage and the charge would probably have to be mandatory for all LMCIT members in order for this kind of flood insurance program to be feasible. Please give call or e-mail us with your thoughts. We can't stress enough how important member feedback is to the Board's consideration of flood coverage. The LMCIT Board will be coming back to this issue early next year, so we'd like to hear from as many members as possible as soon as possible. Contact any of the following with your comments or questions: Pete Tritz, 651-281-1265,ptritz @lmnc.org Ann Gergen, 651-281-1291, agergen @lmnc.org Mike Wozniak, 651-215-4090, mwozniak @lmnc.org League of Minnesota Cities L MC Insurance Trust 145 University Avenue West,St. Paul, MN 55103-2044 League of Minnesota Cities Fax (651)(281)129812TDD: (651)281-1290 Cities promoting excellence www.lmnc.org Date: 9/26/06 Landmark Insurance Services City Contact: Judy Holtz Agent Contact: Phone: 651-439-4439 Kate Tipping 232 LakeSt. S C C_ _ N Forest Lake, MN 55025 OCT - 2 2006 Re: Oak Park Heights Dear , LMCIT is again providing appraisals as a standard service to LMCIT members. Hirons and Associates, Inc., a professional appraisal firm that LMCIT is using on their behalf, will perform the actual appraisals. Hirons and Associates, Inc. will perform: o On site appraisals on locations with replacement cost values of$500,000 or greater. o Desktop appraisals on locations with replacement cost values less than $500,000. o Desktop appraisals on mobile property with a replacement cost value greater than $25,000. o Reproduction cost appraisals on historical significant buildings, but only if you made a special request to LMCIT. Property in the open, fire hydrants and mobile property with replacement cost values less than $25,000 will not be appraised. This service should eliminate the need for further professional appraisals of the city's buildings, contents and mobile property. However,we recommend that the city review these appraised values at each location to make sure that they appear to be reasonable. Please contact LMCIT if you need assistance. For your convenience: o We have attached a Schedule of Individual Locations, which lists the city's covered property along with their address and occupancy. This schedule will match the Schedule of Covered Property Form PM 100 on the city's current coverage. III AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER o We have a attached a Schedule of Mobile property, which lists the city's covered mobile property with replacement cost values of greater than $25,000. This schedule will match the Schedule of Covered Mobile Property PM 109 that is on the city's current coverage. We realize that the city may have already reviewed these schedules during the renewal process; but please take some time to review for accuracy and let us know immediately if there are any changes. for location. For o V�e have attached questionnaires that need to be completed fo each your convenience we have reviewed our old appraisal files and have partially completed each questionnaire. Since most of the information that LMCIT used to partially complete the questionnaires is at least 5 to 7 years old; it is very important that the city review these questionnaires and change or update the information wherever needed. Hirons and Associates, Inc. will use this updated questionnaire to establish the new replacement cost values. Please send the completed questionnaires to Liam Biever, the appraisal coordinator at LMCIT. Fax 651-215-4162, Mail 145 University Avenue West St. Paul, MN 55103-2044 or Email lbiever@lmnc.org - Locations with replacement cost values of greater than $500,000 will have an on site appraisal per formed by Hirons and Associates, Inc. They will contact the designated person at the city and set up an appointment to appraise these locations. The city should take some time to meet with them and answer any questions they may have on the appraisal process and the questionnaires. 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Cp n( N I c I N m `o a `c o `�) \A o c a a a d x c _I AI a N N ` N `O C go . y a I Q u u .9 4 ', VI v > U) 4$ 1 E �o 14 u CL d Q'� v Q N en ti O a RZ 'L �. c LL o N J N U LL a d U 0 O O N U N N I 1 1 . I p 2 L 3 N U N d C _ 0 N Oy U C O O O O O o U 0 W W 1 N fn y CO y CI) ti C C C C C J J J J J d m CD VI 72 rt) m H C 6 Q Y N O . ci L p N O N - 5I L 9 - d CIS N .17 C 8 0 r m N Y --C Cf O N O M 1 i U v a J Judy Hoist From: Brian Alm [balm @LANDMARKINS.com] Sent: Friday, August 18, 2006 1:23 PM To: pmingee@Imnc.org Cc: Judy Hoist Subject: Property in the Open Attachments: OPH-ValleyViewParkPics.pdf; OPH-AutumnHillsParkPics.pdf; OPH-BrekkeParkPics.pdf; OPH-CoverParkPics.pdf; OPH-PIOSchedule.pdf; OPH-SwagerParkPics.pdf POImiLF OPH-ValleyViewParIOPH-AutumnHillsPaOPH-BrekkeParkPicsOPH-CoverParkPicsOPH-PIOSchedule.pOPH-SwagerParkPic Pics.pdf(7... kPics.pdf(2... .pdf(11 MB)... .pdf(4 MB) df(13 KB) s.pdf(4 MB) Pat, Enclosed is a list of property in the open for the City of Oak Park Heights (the file OPH- PIOSchedule.pdf) as well as pictures of some of the property. I have indicated which items appear to be part of the 'standard' policy definition of Property in the Open and which are not and must be scheduled. Also note that they have another park location (Linear Park) that they were just given - it currently has no property on it. The location is 58th Street, South 150' of outlot E, Oark Park Commons, Oark Park Heights, MN. Please call me if you have any questions or need additional information. Thanks, Brian Alm Landmark Insurance Services balm @landmark-ins.com 651-464-3333 cc: Judy @ City of Oak Park Heights 1 GT1 Hi Mark, Council wanted me to check with you on whether or not you would recommend increasing our insurance Tort limits for excess liability. We currently have 1,000,000 and have received a quote for increasing it to 2,000,000. I guess they want to know what the federal legal limit is and whether or not it would be advantageous for us to increase our limit. What would be the advantage? The cost for an additional $1,000,000 is quoted at$862. Let me know what you think. Thanks, Judy LEAGUE OF MINNESOTA CITIES Equipment Breakdown Coverage Proposal for: City of Oak Park Heights This is a proposal arils. Coverage is not bound until you receive a confirmaticrrt in writing from Lira Coverage/si quoted are. 1. Comprehensive(including Production Machines) Limits: S 6,424,4P. Per;lccident-Property Damage otliA S 5,000,000 Per Accident-Loss of Revenue and Extra Expense 55,000,000 Newly Acquired Locations Limit Srrh(imits: S 100,000 Service Interruption $ 100,000 Perishable Goods $ 100,000 Data Restoration k+� S 100,000 Demolition and WC `r:r 4S S 100,000 Expediting Expenses S 100,000 Pollutants ' S 100,000 CPC Refrigerants S 30,000 Ice Rink Buried Piping V $1,000,000. ito(el . i)a Deductible S 500. Any one Accident Il. Limitation of Coverage for Specified Locations or objects t_ncrrtiun Occupancy 111. Lscluded Equipment L: ciUdcci Egpip lent Location Oc J ncy Annual Premium: S1368. 110 Date: q- 2-2 --Cr (0 Underwriter: • �07) w� ,` -- any y/a �a � �t — P/3 3 36, 2-' , . League of Minnesota Cities Insurance Trust 145 University Avenue West,St Paul,MN 55103-2044 (65112814200 • (800)925-1122 nutocea Fax:(651)2814298 • TDD:(651)281-3.2go LugcliwiairmrptinguiMItning agAm. www.tmoc org August 22,2006 e-. /4-4..x .. 6 cy, LieC 4 --7S ? 4. Landmark insurance Services Re: City of Oak Park Ileights 232 Lake Street South Forest Lake, MN 55025 Effect ive Date: 7107106 i).0.)•e.001: si • ,t. RENEWAL PREMIUM SUMMARY AND BINDER c..456 ... .',. Property $15,488. •. 'Mobile Property . ' 7,285. (-47-1°° Municipal Liability 24,327. 1 •.. Automobile Liability 7.595. 4. UM/UIM 1,000,000- Including unregistered vehicles 130. .7.. Basic Economic Loss Benefits(PIP)- including unregistered vehicles 103. .:.' Automobile Physical Damage 1.800. .90:-1. %-t d; :. Crime Included. Bonds . Not Covered. Equipment Breakdown Not Covered. , Excess Liability Limit: SI,000.000. ' ; i' AUG 25 2006 J: ,.: 7.949. .-14"--ii,T1\• ,„ .. Open Meeting Law 100% :A i... .....—.—,, + ' 413. C46C1, I . . ..,... - TOTAL 555,190. ot.fet-)2„ TORT LIMIT$1,000,000./$1,000,000. 4, Deductible: $500. .:". REMARKS: DO NOT PAY UNTIL YOU RECE1VE INVOICES! Subject to a signed and dated Waiver Election Form-Date signed must reflect the decision of the current city council. Options: Equipment Breakdown--See Attached quotation. Faithful Performance Bond- Limit $100,000.- Premium$637.- Deductible-$500. Excess Liability Limit: $2,000,000. See Attached quotation. Please advise: 1)List of unmarked police cars 2) List of unregistered vehicles Renewal coverage is bound up to 60 days pending issuance of renewal based on LMCIT forms and practices in effect on renewal date. Sincerely, .. ... ,, . .. ......._ Underwriter --- - Si. 1.7sICIT22 Oli05)i I)r, I i Ni.41)2,1 111.1.(.1) AU rriii Ai PIPSOMEITIIIII,VoACCIDAIA7111r AMTIA11 CAAI/I fiVrO League of Minnesota Cities M Insurance Trust 1.45 University Avenue West,St.Paul,MN 55103-2044 (6511281.1200 • (800)925-1122 Ladino*of A1"awwrr+lu Gum Fax:(651)281-1298 • TDD:{651)281-1290 Mat pmuwheg wownoero � www.lmne,org Landmark Ins Re: Municipal Excess Liability Quotation for City of Oak Park Heights Dear Kate, LIMIT OF COVERAGE: $2,000,000 ANNUAL PREMIUM WITH WAIVER OF STATUTORY LIMITS: $11,924 QUOTATION EXPIRES: 60 Days FOLLOW FORM: ' UNDERLYING COVERAGE AS SCHEDULED STANDARD EXCLUSIONS: MEDICAL PAYMENTS AUTOMOBILE NO FAULT UM/UIM, UNLESS ADDED BY ENDORSEMENT UME-4 WORKERS' COMPENSATION, DISABILITY BENEFITS,OR UNEMPLOYMENT COMPENSATION, OR ANY SIMILAR LAW FAILURE TO SUPPLY LEAD OR ASBESTOS MOLD LIMITED POLLUTION LIAB. EXCEPT FOR CLAIMS FOR PESTICIDE/HERBICIDE OPS. OR SEWERNVATER OPS. OTHER ENDORSEMENTS: UME-4, REMARKS:`UNDERLYING COVERAGES MUST BE WRITTEN WITH LMCIT. f'% Underwriter Date AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER LMCIT PREMIUM BREAKDOWN DATE: 08/21/2006 Coverage Period: 07/07/2006 - 07/07/2007 TO: CITY OF: OAK PARK HEIGHTS, CITY OF COVERAGE` AVERAGE RATE AMOUNT OF COVERAGE PREMIUM PROPERTY (Per $100 Coverage)* .24107 $ 6,424,494 $ 15,488 MOBILE PROPERTY(Per $100 Coverage) : SCHED.OVER 25,000 .44003 $ 214,343 $ 943 UNSCHED.25,000 & LESS $ 45,191 $ 1, 342 MUNICIPAL LIABILITY SEE ATTACHED $ 24,327 AUTO LIABILITY & PHYSICAL DAMAGE *SEE ATTACHED $ 4,728 CRIME-INSIDE/OUT/FORGERY $ 100,000 $ *These AVERAGE RATES are to be used TOTAL PREMIUM: $ 46,828 for ESTIMATES of PREMIUM ALLOCATION ONLY 08/20 PREPARED BY: q SCHEDULE of VEHICLES - OAK PARK HEIGHTS, CITY OF COVENANT Number: CMC 27453 COVENANT Period: 07/07/2006 TO 07/07/2007 VEH# YR TRADE NM MODEL ID - LIAB PHYD HNO HIRED NONOWNED 001 1995/ FORD CROWN VICT 1817 $ 310 $ 187 002 1997 .CHEV PICKUP 6571 $ 197 $ 121 003 1996 /CHEV BLAZER 1236 $ 310 $ 187 004 1999 ✓FORD F350 4X4 W/PLOW 3507 $ 208 $ 149 005 1999 �FORD F550 DUMP W/PLO 3333 $ 269 $ 221 006 2000/ FORD EXPEDITION 6653 $ 310 $ 187 007 1998 /CHEV. BLAZER 1104 $ 310 $ 187 008 2003 //FORD EXPEDITION 9596 $ 310 $ 187 009 2003 FORD CROWN VICTORIA 6004 $ 310 $ 187 010 2004 /FORD EXPEDITION 6616 $ 310 $ 187 TOTAL VEHICLES $ 2,928 $ 1,800 TOTAL AUTO PRM $ 4,728 MUNICIPAL LIABILITY - OAK PARK HEIGHTS, CITY OF COVENANT Number: CMC 27453 COVENANT Period: 07/07/2006 TO 07/07/2007 PREMIUM ADVANCED --HAZARD- BASIS PREMIUM OP EXP/TERR 2/POP 2501-10000 $ 2,550,709 $ 15,397 WATERWORKS - PAYROLL $ 157,070 $ 4,872 WATERWORKS - PER 1 MIL GALLONS 224 $ 219 MILES-STREETS-PER MILE - 20 $ 309 INDEPENDENT CONTRACTORS-PER $100 $ 1,954,990 $ 541 E&0 OTHER 5 YEAR PRIOR ACTS 5000M TO 8000M EXP $ 5,059,434 $ 2,989 TOTAL LIABILITY $ 24,327 4' MUNICIPAL PROPERTY OAK PARK HEIGHTS, CITY OF COVENANT Number: CMC 27453 COVENANT Period: 07/07/2006 TO 07/07/2007 LOC BLD COV DESCRIPTION COVERAGE PREMIUM 001 001 BLD 14168 OAK PARK BLVD N 1,884,757 1 545 CITY HALL/GARAGE 001 001 CNT 14168 OAK PARK BLVD N 476,366 519 CITY HALL/GARAGE 002 001 BLD 58TH & NORELL 1,265,987 696 WATER TOWER 003 001 BLD 14168 OAK PARK BLVD N 804,845 443 WATER TOWER 004 001 BLD BREKKE PARK 229,768 2,871 SHELTER 005 001 BLD 13425 60TH STREET 139,302 77 LIFT STATION 006 001 BLD 14168 OAK PARK BLVD N 61,587 42 PUMP HOUSE #1 006 001 CNT 14168 OAK PARK BLVD N 70,662 58 PUMP HOUSE #1 007 001 BLD SWAGER PARK 9,237 164 SHELTER 008 001 BLD COVER PARK 52,044 297 RECREATION BUILDING 009 001 BLD VALLEY VIEW PARK 90,571 1,131 SHELTER 010 001 BLD BEADETTE ON LOOKOUT TRAIL 100,672 55 LIFT STATION 011 001 BLD SUNYSIDE MARINA 100,672 55 LIFT STATION 012 001 BLD 14200 53RD STREET 100,672 55 LIFT STATION 013 001 PIO 14168 OAK PARK BLVD N 3,754 40 CITY HALL 014 001 PIO SWAGER PARK 73,764 791 PARK 015 001 PIO COVER PARK 83,649 897 PARK 016 001 PIO VALLEY VIEW PARK 44,876 481 PARK 017 001 PIO BREKKE PARK 161,493 1,732 PARK 018 001 PIO CITY WIDE 73,195 784 VARIOUS 019 001 BLD 14290 58TH ST N 62,825 43 PUMPHOUSE #2 7 MUNICIPAL PROPERTY - OAK PARK HEIGHTS, CITY OF COVENANT Number: CMC 27453 COVENANT Period: 07/07/2006 TO 07/07/2007 LOC BLD COV DESCRIPTION COVERAGE PREMIUM 019 001 CNT 14290 58TH ST N 62,470 51 PUMPHOUSE #2 020 001 BLD KERN CENTER, 5500 STILLWATER BLVD 238,685 165 LIFT STATION & FORCE MAIN 021 001 PIO 5701 NORWICH PARKWAY 232,641 2,496 AUTUMN HILLS PARK TOTAL PROPERTY 15,488 INVOICE #: 23185 � � LEAGUE OF MN CITIES INSURANCE TRUST PREMIUM NOTICE C/0 BERKLEY RISK SERVICES, LLC Invoice Date: 8/29/06 1 ,�o�Mm...�c�n0. 222 SOUTH NINTH STREET Due Date: 09/27/06 r�.,�� ,. �„� SUITE 1300 J MINNEAPOLIS MN 55402-3332 612-766-3000 FAX: 612-766-3281 Bill To Agent 00874 OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY 14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS P.O. BOX 2007 232 S LAKE ST STILLWATER MN 55082 FOREST LAKE MN 55025-2605 Type of Coverage: MUNICIPALITY Convenant Number MEL 5586 Coverage Period: 7/07/06 To 7/07/07 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 9/27/06 7,949.00 PREMIUM Total: $7,949.00 / `/ / LL---›:C,-..53 .4-/�''Jr/j'�Y Payment/Adjustment Applied: $.00 GO ,n G-err--,- ' y, "76, f iD/. cfoGc/O- Li/f Total : $7,949.00 A/( 07 O a .�'..€,.. , � -�p� ,c0-,-,20o-Y(5 2.0 0 — 2',a z, `/t 7 /`-/ PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 23185 C/O BERKLEY RISK ADMINISTRATORS COMPANY, LLC P.O. BOX 581517 MINNEAPOLIS MN 55458-1517 612-766-3000 FAX: 612-766-3281 Type of Coverage: MUNICIPALITY Covenant Number: MEL 5586 DUE DATE: 09/27/06 Coverage Period: 7/07/06 To 7/07/07 UNPAID BALANCE: 7,949.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 7,949.00 INVOICE #: 23186 LMCLEAGUE OF MN CITIES INSURANCE TRUST PREMIUM NOTICE C/Q BERKLEY RISK SERVICES, LLC Invoice Date: 8/29/06 L�ywao/M;�... at�. 222 SOUTH NINTH STREET Due Date: 09/27/06 cawp..6^9a ce SUITE 1300 J MINNEAPOLIS MN 55402-3332 612-766-3000 FAX: 612-766-3281 Bill To Agent 00874 OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY 14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS P.O. BOX 2007 232 S LAKE ST STILLWATER MN 55082 FOREST LAKE MN 55025-2605 Type of Coverage: MUNICIPALITY Convenant Number OML 4132 Coverage Period: 7/07/06 To 7/07/07 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 9/27/06 413.00 PREMIUM Total : $413.00 Pte Payment/Adjustment " Applied: $.00 a/- y06 ` > - -y/r - 5//3- u-7 Total : $413.00 awl - 2410 90 ,,..)- 4/3Co PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 23186 C/O BERKLEY RISK ADMINISTRATORS COMPANY, LLC P.O. BOX 581517 MINNEAPOLIS MN 55458-1517 612-766-3000 FAX: 612-766-3281 Type of Coverage: MUNICIPALITY Covenant Number: OML 4132 DUE DATE: 09/27/06 Coverage Period: 7/07/06 To 7/07/07 UNPAID BALANCE: 413.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 413.00 1 INVOICE #: 23184 LMCLEAGUE OF MN CITIES INSURANCE TRUST PREMIUM NOTICE C/0 BERKLEY RISK SERVICES, LLC Invoice Date: 8/29/06 co,4ro/M;evorolnctiar 222 SOUTH NINTH STREET Due Date: 09/27/06 SUITE 1300 MINNEAPOLIS MN 55402-3332 612-766-3000 FAX: 612-766-3281 Bill To Agent 00874 OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY 14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS P.O. BOX 2007 232 S LAKE ST STILLWATER MN 55082 FOREST LAKE MN 55025-2605 Type of Coverage: MUNICIPALITY Convenant Number CMC 27453 Coverage Period: 7/07/06 To 7/07/07 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 9/27/06 46,828.00 PREMIUM °2 o cr7 Total: $46,828.00 /bf 0(-60 - Y°Y /Y. �ys.v / , Y�© Payment/Adjustment - 1/DL� - a 3 i<- ." Applied: $.00 -TO& `/o`/ - (51.7 aJ 5s. 3 Total : $46,828.00 a/ ` 126w-<ivs - �,79G erd 3 SS' 7oS `1F�/vv- zva - (52a- SU We. -`Baud -yo - 3"/9,-S-6 3(c,-7 i-to&,9z _Li/F - /35SFf•vL) / ��, /oa i/JG ) -c/ — 6;3�'�/•J j/ 'Ov 704,-4/04°42 'Pe- 5, ? `;/. s) Laa /71(,,, a 8.60 PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 23184 C/0 BERKLEY RISK ADMINISTRATORS COMPANY, LLC P.O. BOX 581517 MINNEAPOLIS MN 55458-1517 612-766-3000 FAX: 612-766-3281 Type of Coverage: MUNICIPALITY Covenant Number: CMC 27453 DUE DATE: 09/27/06 Coverage Period: 7/07/06 To 7/07/07 UNPAID BALANCE: 46,828.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 46,828.00 LMCIT PREMIUM BREAKDOWN DATE: 08/21/2006 Coverage Period: 07/07/2006 - 07/07/2007 TO: CITY OF: OAK PARK HEIGHTS, CITY OF COVERAGE AVERAGE RATE AMOUNT OF COVERAGE PREMIUM �c2 7 - -170"z- ro76 PROPERTY (Per $100 Coverage)* .24107 $ 6 ,424,494 $ 15,488 tiOy MOBILE PROPERTY(Per $100 Coverage) : SCHED.OVER 25,000 ',."'' .44003 $ ,2 0 l ` 214, 343 $ (� 943 v°�f 7� ,-;, -o3 �� �� yL)Y UNSCHED.25,000 & LESS � ' 45, 191 ; $-`0— il , 342 t$ 5'C°..- HS'7 wuf MUNICIPAL LIABILITY ,2,0-? - 7,, v y,, SEE ATTACHED $ 24, 327 //c, AUTO LIABILITY & PHYSICAL DAMAGE 2007 '7,7,77-0 , *SEE ATTACHED $ 4, 728 `16,.5' CRIME-INSIDE/OUT/FORGERY $ 100,000 $ *These AVERAGE RATES are to be used TOTAL PREMIUM: $ 46,828 for ESTIMATES of PREMIUM ALLOCATION ONLY 08/20 PREPARED BY: r SCHEDULE of VEHICLES - OAK PARK HEIGHTS, CITY OF COVENANT Number: CMC 27453 COVENANT Period: 07/07/2006 TO 07/07/2007 VEH# YR TRADE NM MODEL - ID - LIAB PHYD HNO HIRED/NONOWNED $ 84 $ 001 1995 FORD CROWN VICT 1817 $ 310 $ 1876- 002 1997 CHEV PICKUP 6571 $ 197 $ 121 rocA) 003 1996 CHEV BLAZER 1236 $ 310 $ 1876- 004 1999 FORD F350 4X4 W/PLOW 3507 $ 208 $ 149 P� 005 1999 FORD F550 DUMP W/PLO 3333 $ 269 $ 221 Pt-s 006 2000 FORD EXPEDITION 6653 $ 310 $ 1876- 007 1998 CHEV. BLAZER 1104 $ 310 $ 1876-- 008 2003 FORD EXPEDITION 9596 $ 310 $ 187 Cr 009 2003 FORD CROWN VICTORIA 6004 $ 310 $ 187 010 2004 FORD EXPEDITION 6616 $ 310 $ 1876- TOTAL VEHICLES $ 2, 928 $ 1 ,800 TOTAL AUTO PRM $ 4, 728 10( vo yyd � .sl,, p1,0 v e t4,)" 3v9 sa 3 7 -(j ,') .,- t < 4/ 1,y ij &s, do Iu..P It 72k MUNICIPAL LIABILITY - OAK PARK HEIGHTS, CITY OF COVENANT Number: CMC 27453 COVENANT Period: 07/07/2006 TO 07/07/2007 PREMIUM ADVANCED --HAZARD--- BASIS PREMIUM OP EXP/TERR 2/POP 2501-10000 $ 2,550, 709 $ 15 , 397 6-,&()#$ • WATERWORKS - PAYROLL $ 157,070 $ 4,872 V'4 s- WATERWORKS - PER 1 MIL GALLONS 224 $ 219 i MILES-STREETS-PER MILE - 20 $ 309 C INDEPENDENT CONTRACTORS-PER $100 $ 1,954,990 $ E&0 OTHER 5 YEAR PRIOR ACTS 5000M TO 8000M EXP $ 5,059,434 $ 2,989 TOTAL LIABILITY $ 24, 327 G/(g LLD `o 2, 3 L/0 2 S -t 5. S 0 / �o `-3 9 ti,.. --, :.i 5 t t 5 . a t7 9 5X00 1 � — -7 - S, 3 ?"Li. / o — )70 y70 .2ts: 300 MUNICIPAL PROPERTY - OAK PARK HEIGHTS , CITY OF COVENANT Number: CMC 27453 COVENANT Period: 07/07/2006 TO 07/07/2007 LOC BLD COV DESCRIPTION COVERAGE PREMIUM 001 001 BLD 14168 OAK PARK BLVD N 1,884, 757 1 ,545 GS CITY HALL/GARAGE 001 001 CNT 14168 OAK PARK BLVD N 476, 366 519 CITY HALL/GARAGE 002 001 BLD 58TH & NORELL 1 ,265,987 6960 WATER TOWER 003 001 BLD 14168 OAK PARK BLVD N 804,845 4431J WATER TOWER 004 001 BLD BREKKE PARK 229, 768 2 ,871 SHELTER 005 001 BLD 13425 60TH STREET 139, 302 77 5 LIFT STATION 006 001 BLD 14168 OAK PARK BLVD N 61 ,587 42 UJ PUMP HOUSE #1 006 001 CNT 14168 OAK PARK BLVD N 70,662 58 W PUMP HOUSE #1 007 001 BLD SWAGER PARK 9,237 164 SHELTER 008 001 BLD COVER PARK 52,044 297 RECREATION BUILDING 009 001 BLD VALLEY VIEW PARK 90,571 1 , 131 SHELTER 010 001 BLD BEADETTE ON LOOKOUT TRAIL 100,672 55 S LIFT STATION 011 001 BLD SUNYSIDE MARINA 100,672 55 S LIFT STATION 012 001 BLD 14200 53RD STREET 100,672 55 S LIFT STATION 013 001 PIO 14168 OAK PARK BLVD N 3, 754 40 (SLA *S CITY HALL 014 001 PIO SWAGER PARK 73, 764 791 PARK 015 001 PIO COVER PARK 83 ,649 897 PARK 016 001 PIO VALLEY VIEW PARK 44,876 481 PARK 017 001 PIO BREKKE PARK 161 ,493 1 , 732 PARK 018 001 PIO CITY WIDE 73 , 195 784 VARIOUS 019 001 BLD 14290 58TH ST N 62,825 43 0 PUMPHOUSE #2 MUNICIPAL PROPERTY - OAK PARK HEIGHTS, CITY OF COVENANT Number: CMC 27453 COVENANT Period: 07/07/2006 TO 07/07/2007 LOC BLD COV DESCRIPTION COVERAGE PREMIUM 019 001 CNT 14290 58TH ST N 62,470 51 bc) PUMPHOUSE #2 020 001 BLD KERN CENTER, 5500 STILLWATER BLVD 238,685 165 LIFT STATION & FORCE MAIN 021 001 PIO 5701 NORWICH PARKWAY 232,641 2,496 AUTUMN HILLS PARK TOTAL PROPERTY 15,488 '/dy � t I� Ut G 11ft/Y4( Lb)C a'..-- -,c.../" L L,c) / 333 2 L.) Lt C c e . v /3 38�( ie4I-)41 LSD-..tea (A) ,-, -- ;00 ? - 7 c/a I079 — /y y?. ( Jc€ A.-- .2 °tt' INVOICE #: 23184 LEAGUE OF MN CITIES INSURANCE TRUST PREMIUM NOT _ E ri i E I C/0 BERKLEY RISK SERVICES, LLC Invoice Oat �-= 222 SOUTH NINTH STREET Due Date: II : ' SUITE 1300 MINNEAPOLIS MN 55402-3332 SEP — 7 2nnF 612-766-3000 FAX: 612-766-3281 Ir Bill To Agent 00874 OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURAN • 14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS P.O. BOX 2007 232 S LAKE ST STILLWATER MN 55082 FOREST LAKE MN 55025-2605 Type of Coverage: MUNICIPALITY Convenant Number CMC 27453 Coverage Period: 7/07/06 To 7/07/07 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 9/27/06 46,828.00 PREMIUM Total : $46,828.00 Payment/Adjustment Applied: $.00 Total : $46,828.00 PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 23184 C/O BERKLEY RISK ADMINISTRATORS COMPANY, LLC P.O. BOX 581517 MINNEAPOLIS MN 55458-1517 612-766-3000 FAX: 612-766-3281 Type of Coverage: MUNICIPALITY 9 Covenant Number: CMC 27453 DUE DATE: 09/27/06 Coverage Period: 7/07/06 To 7/07/07 UNPAID BALANCE: 46,828.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 46,828.00 INVOICE #: 23185 LEAGUE OF MN CITIES INSURANCE TRUST PREMIUM NOTICE C/O BERKLEY RISK SERVICES, LLC Invoice Date: 8/29/06 222 SOUTH NINTH STREET Due Date: 09/27/06 SUITE 1300 MINNEAPOLIS MN 55402-3332 612-766-3000 FAX: 612-766-3281 Bill To Agent 00874 OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY 14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS P.O. BOX 2007 232 S LAKE ST STILLWATER MN 55082 FOREST LAKE MN 55025-2605 Type of Coverage: MUNICIPALITY Convenant Number MEL 5586 Coverage Period: 7/07/06 To 7/07/07 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 9/27/06 7,949.00 PREMIUM Total : $7,949.00 Payment/Adjustment Applied: $.00 Total : $7,949.00 PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 23185 C/O BERKLEY RISK ADMINISTRATORS COMPANY, LLC P.O. BOX 581517 MINNEAPOLIS MN 55458-1517 612-766-3000 FAX: 612-766-3281 Type of Coverage: MUNICIPALITY Covenant Number: MEL 5586 DUE DATE: 09/27/06 Coverage Period: 7/07/06 To 7/07/07 UNPAID BALANCE: 7,949.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 7,949.00 INVOICE #: 23186 LEAGUE OF MN CITIES INSURANCE TRUST PREMIUM NOTICE C/O BERKLEY RISK SERVICES, LLC Invoice Date: 8/29/06 222 SOUTH NINTH STREET Due Date: 09/27/06 SUITE 1300 MINNEAPOLIS MN 55402-3332 612-766-3000 FAX: 612-766-3281 Bill To Agent 00874 OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY 14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS P.O. BOX 2007 232 S LAKE ST STILLWATER MN 55082 FOREST LAKE MN 55025-2605 Type of Coverage: MUNICIPALITY Convenant Number OML 4132 Coverage Period: 7/07/06 To 7/07/07 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 9/27/06 413.00 PREMIUM Total : $413.00 Payment/Adjustment Applied: $.00 Total : $413.00 II PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 23186 C/O BERKLEY RISK ADMINISTRATORS COMPANY, LLC P.O. BOX 581517 MINNEAPOLIS MN 55458-1517 612-766-3000 FAX: 612-766-3281 Type of Coverage: MUNICIPALITY Covenant Number: OML 4132 DUE DATE: 09/27/06 Coverage Period: 7/07/06 To 7/07/07 UNPAID BALANCE: 413.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 413.00 ' 'OCT-11-2006 09:09 LEAGUE OF MN CITIES 651281.1298 P.01 ENDORSEMENT# I October 05,2006 5P COVERED PARTY COVENANT NUMBER EFFECTIVE DATE LAK PARK HEIGHTS,CITY OF IIIIMEMIM 09-05-06 IT 1S HEREBY UNDERSTOOD AND AGREED THAT COMMON COVERAGE DECLARATIONS FORM DEC-01 I(1 I/86)(Rev.11/05)IS AMENDED TO READ: Item 4. COVERAGE PARTS: EQUIPMENT BREAKDOWN COVERED IT IS FURTHER AGREED THAT MUNICIPAL PROPERTY, CRIME.BOND, PETROFUND and EQUIPMENT BREAKDOWN DECLARATIONS FORM DEC-012(I 1.86)(Rev.11/05)IS AMENDED TO READ: Item 17. EQUIPMENT BREAKDOWN COVERAGE EQUIPMENT BREAKDOWN LIMIT: $ 6,424.494, DEDUCTIBLE: $ 500. ANY ONE ACCIDENT Item 18. COVERAGE PARTS,FORMS,SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. PM-100(11/03) BM-200(11/04 _ 13M 212�l,l/pU TOTAL ENDORSEMENT PREMIUM $ 1,143. ® ADDITIONAL PREMIUM ❑ RETURN PREMIUM (See Below for Billing Info.) (DO NOT PAY) ® PREMIUM ADJUSTMENT TO BE MADE NOW (See Invoice) OR ❑ PREMIUM ADJUSTMENT TO BE MADE AT EXPIRATION All other terms and conditions remain unchanged. •PR.8356 Executive Director, LMCIT Post-it°Fax Note 7671 �� b , ► To xyL.G t'A /1 4f F � /° 1 Phone# Pal! 08( Fa'#S (-.. 4`>'-15 F 4-1-� LMC1T ME044(1-95)(Rev.11-00) OCT-11-2006 09:09 LEAGUE OF MN CITIES 6512811298 P.02 LEAGUE OF MN CITIES INSURANCE TRUST PREMIUM NOTICE C/O BERKLEY RISK SERVICES, LLC Invoice Date: 10/05/06 222 SOUTH NINTH STREET Due Date; 11/03/06 SUITE 1300 MINNEAPOLIS MN 55402-3332 612-766-3000 FAX: 612-766-3281 Bill To Agent 00874 OAK PARK HEIGHTS, CITY OF FOREST LAKE INSURANCE AGENCY 14168 OAK PARK BLVD DBA LANDMARK INSURANCE SVCS OAK PARK HEIGHTS MN 55082 232 S LAKE ST FOREST LAKE MN 55025-2605 " Type of Coverage: MUNICIPALITY Convenant Number CMC 27453 Coverage Period: 7/07/06 To 7/07/07 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 11/03/06 1,143.00 09/05/06 ADD BOILER COVERAGE Total: $1, 143.00 Payment/Adjustment Applied: $.00 Total: ' $1,143.00 PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE, TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 23441 C/O BERKLEY RISK ADMINISTRATORS COMPANY, LLC P.O. BOX 581517 MINNEAPOLIS MN 55458-1517 612-766-3000 FAX: 612-766-3281 Type of Coverage: MUNICIPALITY Covenant Number: CMC 27453 DUE DATE: 11/03/06 Coverage Period: 7/07/06 To 7/07/07 UNPAID BALANCE: 1,143.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 1, 143.00 TOTAL P.02 Judy Hoist From: Kate Tipping [ktipping @LANDMARKINS.com] Sent: Wednesday, October 11, 2006 10:38 AM To: Judy Hoist Subject: Equipmt endmt Attachments: 1148659698e.tif 1148659698e.tif (94 KB) They tell me they mailed this to you last week - thx, Judy! 1 L MC League of Minnesota Cities InsuranceTrust 145 University Avenue West,St Paul,.MN 55103-2044 raPieCtaa. Mei {651)281.12x0 • {800)925-� 79 , Fax:(651)281-1298 •TDD:(651)281-1290 wwwamnc.org TO: LMCIT Member Cities FROM: LMCIT Underwriting RE: Property In The Open Coverage Clarified (Coverage Change effective November 15,2005) The definition of property in the open has been modified to reduce ambiguity. At any location you schedule for PIO,you will have coverage for the following types of PIO: • Benches • Portable Toilets • Fences • Water Fountains • Playground Equipment • Basketball and Tennis Nets and Equipment • Statues • Flagpoles • Scoreboards • Signs that are not part of a building • Light Poles or Outdoor Lighting Systems, • Golf Course Property other than street lights If you don't want to cover all of the types of property listed above,you need to list the kinds you don't want to cover,so we can endorse the coverage accordingly. If you have other types of PIO not listed above that you do want to cover,you need to identify those as well,so that coverage can be added by endorsement. In other words,even if you've scheduled the location for PIO,these kinds of property at that location aren't covered unless the coverage is specifically endorsed to extend coverage. Here are some examples of types of PIO that you would need to list specifically if you wish to cover it: • Bridges • Walkways • Docks and Piers. • Hydrants • Underground Cable or Piping • Irrigation Systems • Tennis or Basketball Surfaces • Paved Surfaces • Street Lights • Traffic Signals and Signs • Street Signs • Fire Hydrants There are certain types of property that by their nature are scattered around the entire city: street lights, street signs,traffic signs and signals, and fire hydrants. For these types of property only, if you wish to cover them you can schedule coverage as"citywide",and don't need to list each specific location individually. If you have any,questions regarding this coverage change,please notify your LMCIT Underwriter. AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER LMCIT Underwriting Satisfaction Survey (Members) As part of our ongoing effort to meet member needs and provide exemplary service,the League of Minnesota Cities Insurance Trust (LMCIT) is conducting this survey. Please take a moment to fill out this survey and return it in the enclosed, postage-paid envelope, addressed to: League of Minnesota Cities, 145 University Avenue West, St. Paul, MN 55103-2044 Your comments will be used to make improvements to LMCIT operations. Name of city: Please comment on your level of satisfaction with: 1. Overall quality of service provided by LMCIT's underwriting staff ❑ Extremely Satisfied ❑ Very Satisfied ❑ Satisfied ❑ Not Very Satisfied ❑ Not At All Satisfied ❑ Not Applicable 2. Responsiveness of the LMCIT underwriter assigned to your city ❑ Extremely Satisfied ❑ Very Satisfied ❑ Satisfied ❑ Not Very Satisfied ❑ Not At All Satisfied ❑ Not Applicable 3. Explanation of LMCIT coverage changes regarding this renewal ❑ Extremely Satisfied ❑ Very Satisfied ❑ Satisfied ❑ Not Very Satisfied ❑ Not At All Satisfied ❑ Not Applicable 4. The LMCIT premium invoices you receive are clear and understandable ❑ Extremely Satisfied ❑ Very Satisfied ❑ Satisfied ❑ Not Very Satisfied ❑ Not At All Satisfied ❑ Not Applicable 5. Assistance you receive from LMCIT in preparing renewal documents ❑ Extremely Satisfied ❑ Very Satisfied ❑ Satisfied ❑ Not Very Satisfied ❑ Not At All Satisfied ❑ Not Applicable 6. Level of assistance you receive from your agent on LMCIT-related matters ❑ Extremely Satisfied ❑ Very Satisfied ❑ Satisfied ❑ Not Very Satisfied ❑ Not At All Satisfied ❑ Not Applicable 7. Over the course of a year, about how many times does your agent visit the city to discuss LMCIT-related matters? (please circle one response): 0 1 2 3 4 or more 8. If your city is currently enrolled in the workers'compensation managed care option, how valuable has the premium discount been in deciding whether to enroll in this option? ❑ Extremely Valuable ❑ Very Valuable ❑ Valuable ❑ Not Very Valuable ❑ Not At All Valuable ❑ Not Applicable Please identify the most important thing LMCIT could do to serve you better: Questions or comments related to this survey can be directed to Laura Honeck at 800 925-1122 or lhoneck@Imnc.org Thank you for your assistance r r . - MC League of Minnesota atlas Insurance Trust 145 University Avenue West,St Paul,MN 55103-2044 LOVOI of�O, , (651)2814200• (800)925-119 C' . ,�, Fax:(651)281-1298 •TOD:(651)281-1290 www.lmnc.org TO: LMCIT Member Cities FROM: LMCIT Underwriting RE: Property In The PAY Open Coverage Clarified (Coverage e g effective November 15,2005) The definition of property in the open has been modified to reduce ambiguity. At any location you y schedule for PIO,you will have coverage for the followin g types of PIO: • Benches • Portable Toilets • Fences Water Fountains • Playground Equipment • Basketball and Tennis Nets and Equipment • Statues • Flagpoles • Scoreboards • Signs that are not part of a building • Light Poles or Outdoor Lighting Systems, • Golf Course Property other than street lights If you don't want to cover all of the types of property Y listed above,y ou need t o list the kinds you don't want to cover,so we can endorse the coverage accordingly. • If you have other types of PIO not listed above that you do want to cover,you need to identify those as well,so that coverage can be added by endorsement. In other words,even if you've scheduled the location for PIO these kinds of property Y at that location aren't covered d unless the coverage is specificall endorsed to extend coverage. Here are some examples of types of PIO that you would need to list specifically if you wish to cover it: • Bridges Walkways • Docks and Piers • Hydrants • Underground Cable or Piping • Irrigation Systems • Tennis or Basketball Surfaces • Paved Surfaces • Street Lights • Traffic Signals and Signs • Street Signs • Fire Hydrants There are certain types of property that by their nature are scattered around the entire city: street lights, street signs, traffic signs and signals,and fire hydrants. For these hese t Y es of property} onl only,you wish to cover them "citywide",you can s chedule coverage as and don't need to list each specific location individually. Y If you have any questions regarding this coverage change,please notify your LMCIT Underwriter. AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER COMPREHENSIVE LMC League of Minnesota Cities MUNICIPAL PROPERTY AND Cities promoting excellence CASUALTY COVERAGE PREPARED ESPECIALLY FOR CITY OF OAK PARK HEIGHTS 14168 OAK PARK BOULEVARD P.O. BOX 2007 STILLWATER, MN 55082 07/23/06 - 07/23/07 Agent: LANDMARK INSURANCE SERVICES 232 SOUTH LAKE STREET FOREST LAKE, MN 55025 League of Minnesota Cities 145 University Avenue West St. Paul, MN 55103-2044 Phone: (651) 281-1200 Fax: (651) 281-1298 Web Site http://www.lmnc.org **IMPORTANT** PLEASE READ YOUR AGREEMENT Covenant Number: COMMON COVERAGE DECLARATIONS CMC 27453 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES Previous Covenant Number: INSURANCE TRUST CMC 26394 (Herein called LMCIT) Item 1. CITY and MAILING ADDRESS: league of innesota e;t;es (_.'iEies yromotdng exoe��enee OAK PARK HEIGHTS, CITY OF J 14168 OAK PARK BLVD P.O. BOX 2007 STILLWATER MN 55082 Item 2. COVERAGE PERIOD: From: 07/07/06 To: 07/07/07 12:01 AM Standard Time at Mailing Address on Common Coverage Declarations Item 3. THE COVERED PARTY IS: CITY Item 4. COVERAGE PARTS: IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS COVENANT, LMCIT AGREES TO PROVIDE THE COVERED PARTY WITH COVERAGES SHOWN BELOW FOR WHICH A PREMIUM CHARGE IS STATED: PROPERTY, CRIME, BOND AND PETROFUND Premium Property $ 17,773 Additional Covered Loss or Damages INCLUDED Water and Supplemental Flood Coverage INCLUDED Crime INCLUDED Bond -Employee Dishonesty NOT COVERED Bond - Faithful Performance NOT COVERED Petrofund INCLUDED EQUIPMENT BREAKDOWN NOT COVERED MUNICIPAL LIABILITY $ 24, 327 Medical and Related Expense INCLUDED AUTOMOBILE LIABILITY $ 2,928 AUTOMOBILE PHYSICAL DAMAGE $ 1,800 TOTAL $ 46,828 Item 5. GENERAL ANNUAL AGGREGATE DEDUCTIBLE: DOES NOT APPLY Item 6. PREMIUM IS DUE AND PAYABLE: ANNUAL - IN ADVANCE Item 7. FORMS APPLICABLE TO ALL COVERAGE PARTS: CCM(11-04) Item 8. DECLARATIONS APPLICABLE: DEC-011(11-05) DEC-012(11-05) DEC-013(11-05) DEC-016(11-03) I t� 1 F `,: k; Executive Director,LMCIT LMCIT DEC-011(11186)(Rev.11/05) COMMON CONDITIONS ALL COVERAGE PARTS INCLUDED IN THIS COVENANT ARE SUBJECT TO THE FOLLOWING CONDITIONS: 1. CANCELLATION AND NON-RENEWAL made a part of this covenant or by acknowledgment by LMCIT that an endorsement will be issued at a later date. a. The city shown in the Declarations may cancel this covenant by mailing or delivering to LMCIT 3. RATING AUTHORITY AND advance written notice of cancellation. EXAMINATION OF THE CITY'S BOOKS AND RECORDS b. LMCIT may cancel this covenant by mailing or delivering to the city shown in the Declarations LMCIT shall have full discretionary authority to written notice of cancellation at least: promulgate rates and establish the premium to be charged for the coverage period under this covenant. (1) 10 days before the effective date of the cancellation if LMCIT cancels for nonpayment of LMCIT may, at its discretion or at the city's request, premium; or examine and audit the city's books as they relate to this covenant during the coverage period and up to one year (2) 30 days before the effective date of the thereafter and, accordingly, make any necessary cancellation if LMCIT cancels for any other reason. adjustments in premium. No premium adjustments will be made after one year following the expiration of the c. LMCIT will mail or deliver its notice to the city coverage period. shown in the Declarations last mailing address known to LMCIT. 4. INSPECTIONS AND SURVEYS d. Notice of cancellation will state the effective date of LMCIT has the right,but it is not obligated to: cancellation. The coverage period will end on that date. a. Make inspections and surveys at any time. e. If this covenant is canceled, LMCIT will send the b. Give the city reports on the conditions it finds; and city shown in the Declarations any premium refund due. If LMCIT cancels, the refund will be pro-rata. c. Recommend changes. If the city cancels, the refund may be less than the pro-rata. The cancellation will be effective even if Neither LMCIT's right to make inspections nor its LMCIT has not made or offered a refund. making any report thereon shall constitute any undertaking on behalf of or for the benefit of the city or f. If LMCIT decides not to renew this covenant, others to determine or warrant that such property or LMCIT will mail or deliver to the city shown in the operations are safe or healthful or free from hazard or Declaration written notice of the non-renewal not are in compliance with any law,rule or regulation. less than 30 days before the expiration date. These conditions apply not only to LMCIT, but also to g. If notice is mailed, proof of mailing will be any rating advisory, rate service, or similar organization sufficient proof of notice. which makes inspections, surveys, reports, or recommendations. 2. CHANGES 5. PREMIUMS This covenant contains all the agreements between LMCIT and the city concerning the coverage afforded. The city shown in the Declarations: The city shown in the Declarations is authorized to make a. Is responsible for the payment of all premiums; and changes in the terms of this coverage agreement with the consent of LMCIT. The coverage terms can be amended b. Will be the payee for any return premiums. or waived only by endorsement issued by LMCIT and LMCIT CCM(11-89)(Rev.11-04) Page 1 of 3 6. TRANSFER OF THE CITY'S RIGHTS AND coverage is primary, excess, contingent, or any other DUTIES UNDER THIS COVENANT basis, unless that policy or coverage is specifically written to be excess over this covenant. The city's rights and duties under this covenant may not be transferred without the written consent of LMCIT. b. This coverage is primary for any of the following losses: 7. OVERLAP OF COVERAGE (1) A covered loss of business personal effects,with In the event of a dispute between LMCIT and one or respect to any coverage provided under the more insurers as to which policy or coverage agreement employee's homeowners' insurance or similar applies to a covered loss,LMCIT shall indemnify the city coverage. for any legal or other expenses which are necessarily incurred by the city in determining whether LMCIT or (2) A covered loss of contents or mobile property in the insurer(s) shall bear the loss. Such indemnification the city's care, custody and control that is used to shall be made only if it is determined that payment of the maintain the operations of the city, with respect to loss shall be made under this covenant. If the loss is coverage provided under an insurance policy of the shared by LMCIT and one or more insurers, owner covering that property. indemnification shall be made in the same proportion as the loss payment. The city and LMCIT shall cooperate (3) A covered loss resulting from the city's in the development and execution of reasonable maintenance or use, including loading or unloading, procedures to resolve the dispute. of any owned automobile that is not a trailer. 8. ASSESSIBILITY (4) A covered loss resulting from the city's maintenance or use, including loading or unloading, All cities in the joint coverage pool are jointly and of any trailer the city does not own but which is severally liable for all claims and expenses of the pool. connected to an owned automobile. The amount of any liabilities in excess of assets may be assessed to the members of the pool when a deficiency is (5) Any covered liability claim against a party who identified. has been added by endorsement as an additional covered party under this covenant, unless that 9. NUCLEAR HAZARD endorsement specifically provides that this covenant is excess. LMCIT, under this covenant, does not cover any loss or claim for damage that is caused in part or in total by (6) A covered loss to a covered automobile as nuclear reaction or radiation, or radioactive provided by the Municipal Automobile Physical contamination,however caused. Damage Coverage. 10. CONCEALMENT OR FRAUD (7) A covered loss to a builders risk property as provided by Buildings in the Course of This covenant is void if the city has intentionally Construction,Alteration or Repair Coverage. concealed or misrepresented any material fact or 12. RECOVERIES circumstance relating to this covenant. 11. OTHER COVERAGE Except as otherwise required by statute, any "net recovery" from a third party on a covered loss will be a. Except as provided in paragraph b., this coverage is allocated between the city and LMCIT in proportion to excess over the following: their respective shares of the total covered loss. ."Net recovery"means the total amount recovered from a third (1) Any liability insurance policy of another party party; minus the cost of obtaining that recovery;but"net on which the covered party is an additional insured recovery" does not include amounts LMCIT recovers or additional named insured. from a reinsurer, The city's share of the covered loss includes any applicable deductible; any amounts for (2) Any other valid and collectible insurance policy which the city is responsible under any co-pay or other coverage, whether such other policy or provisions; and any amounts which exceed the applicable coverage limit. LMCIT CCM(11-89)(Rev.11-04) Page 2 of 3 13. TRANSFER OF RIGHTS OF RECOVERY AGAINST OTHERS TO LMCIT Except as provided below, if any person or organization to or for whom LMCIT makes payment under this covenant has rights to recover damages from another, those rights are transferred to LMCIT to the extent of LMCIT's payment. That person or organization must do everything necessary to secure our rights and must do nothing before or after a loss to impair them. a. The City may waive the City's rights against another party in writing prior to a covered loss or damage but this does not apply to a covered loss or damage as provided by the Municipal Bond Coverage or Municipal Crime Coverage. The City does not need • to notify LMCIT in writing. b. The City may waive the City's rights against another party in writing after a covered loss or damage as provided by the Municipal Property Coverage, only if at the time of loss that party is one of the following: (1) Another covered party covered by this covenant (2) Another entity (a) Owned or controlled by the City; or (b) That owns or controls the City. LMCIT CCM(11-89)(Rev.1 1-04) Page 3 of 3 Covenant Number: MUNICIPAL PROPERTY,CRIME,BOND,PETROFUND, CMC 27453 and EQUIPMENT BREAKDOWN DECLARATIONS Coverage is provided by: � THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST (Herein called LMCIT) League of Minnesota Cities Cities promoting excellence Item 1. CITY: OAK PARK HEIGHTS, CITY OF Item 2. COVERAGE PERIOD: From: 07/07/06 To: 07/07/07 12:01 AM Standard Time at Mailing Address on Common Coverage Declarations Item 3. THE COVERED PARTY IS: CITY Item 4. COVERAGE: IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS COVENANT, LMCIT AGREES TO PROVIDE THE COVERED PARTY WITH COVERAGES SHOWN BELOW FOR WHICH A LIMIT IS STATED: Item 5. COVERAGE PART ONE - PROPERTY Section I - Property General Limit of Coverage Per Occurrence $ 6,684,028 This general limit is subject to the sublimits as described in Section VI, Limits of Coverage and Valuation, and the specific property limit. Terrorism Activity Annual Aggregate Limit $ 1,000,000 Section II- Additional Covered Loss or Damage 1 . Asbestos Clean up, Abatement and Removal $ 250,000 Per Location 2. Loss of Revenue, Extra Expense and Expediting Expense $5,000,000 Per Occurrence 3. Demolition and Debris Removal (Direct Physical Damage to Covered Property) 25% of the Estimated Replacement Cost of the Covered Property (No Direct Physical Damage to Covered Property) $ 50,000 Per Occurrence 4. Leasehold Interest $ 500,000 Per Location 5. Pollutant Cleanup and Removal $ 100,000 Per Location 6 . Errors $ 500,000 Per Occurrence 7. Rental Reimbursement $ 25,000 Annual Aggregate 8. Arson Reward $ 5,000 Per Fire Loss 9. Accounts Receivable $ 500,000 Per Location 10 . Valuable Papers & Records $ 500,000 Per Location 11 . Extraordinary Expense $ 100,000 Annual Aggregate 12. Utility Services $ 100,000 Per Occurrence Section IV - Water and Supplemental Flood Coverage $ 500,000 Per Occurrence/ 500,000 Annual Aggregate LMCIT DEC-012(I1-86)(Rev.11/05) Page 1 of 3 LMC League of Minnesota Cities Cities promoting excell nce J Item 6. REFER TO SCHEDULE OF COVERED PROPERTY FOR THOSE LOCATIONS INCLUDED IN THE SECTION I COVERAGE; THE SCHEDULE OF COVERED MOBILE PROPERTY FOR THE MOBILE PROPERTY INCLUDED IN THE SECTION I COVERAGE AND THE SCHEDULE OF OF COVERED PROPERTY FOR THOSE LOCATIONS INCLUDED IN SECTION IV COVERAGE. Item 7. DEDUCTIBLE(Deductible applies per occurrence subject to General Annual Aggregate Deductible, if any, shown on Common Coverage Declarations): COVERAGE PART ONE - PROPERTY $ 500 Per Occurrence Item 8. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. ME063(11-01) ME079(11-03) MPCBP(11-05) MPCBP-209(11-05) PM-100(11-03) PM-109(11-02) Item 9. MORTGAGE HOLDER (if applicable) Item 10. COVERAGE PART TWO - CRIME LIMIT OF COVERAGE PER OCCURRENCE $ 100,000 Item 11. DEDUCTIBLE(Deductible applies per occurrence subject to General Annual Aggregate Deductible, if any, shown on Common Coverage Declarations): COVERAGE PART TWO - CRIME $ 500 Per Occurrence Item 12. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APLICABLE TO THIS COVERAGE. ME063(11-01) MPCBP(11-05) LMCIT DEC-012(11-86)(Rev.11/05) Page 2 of 3 Item 13. COVERAGE PART THREE BOND LMC League of Minnesota Cities Item 13A. BOND - EMPLOYEE DISHONESTY COVERAGE Cities}romo g excel%nce LIMIT OF COVERAGE PER OCCURRENCE $ DEDUCTIBLE(Deductible applies per occurrence subject to General Annual Aggregate Deductible, if any, shown on Common Coverage Declarations): DEDUCTIBLE- EMPLOYEE DISHONESTY COVERAGE $ Per Occurrence Item 13B. BOND - FAITHFUL PERFORMANCE COVERAGE LIMIT OF COVERAGE PER OCCURRENCE $ DEDUCTIBLE(Deductible applies per occurrence subject to General Annual Aggregate Deductible, if any, shown on Common Coverage Declarations): DEDUCTIBLE- FAITHFUL PERFORMANCE COVERAGE $ Per Occurrence Item 14. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. Item 15. COVERAGE PART FOUR - PETROFUND (Claims made) LIMITS OF REIMBURSEMENT BENEFIT MAXIMUM REIMBURSABLE COSTS AND DEFENSE COSTS EACH TANK RELEASE $ 250,000 REIMBURSABLE COSTS AND DEFENSE COSTS AGREEMENT TERM AGGREGATE $ 250,000 DEDUCTIBLE: COVERAGE PART FOUR-PETROFUND NOT APPLICABLE Item 16. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. ME063(11-01) MPCBP(11-05) Item 17. EQUIPMENT BREAKDOWN COVERAGE EQUIPMENT BREAKDOWN LIMIT: $ DEDUCTIBLE: $ ANY ONE ACCIDENT Item 18. COVERAGE PARTS, FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. LMCIT DEC-012(11-86)(Rev.11/05) Page 3 of 3 LEAGUE OF MINNESOTA CITIES INSURANCE TRUST SCHEDULE OF COVERED PROPERTY Covenant Number: � CMC 27453 CITY OAK PARK HEIGHTS, CITY OF League f Minnesota Cities COVERAGE AT EACH OF THE LOCATIONS BELOW APPLIES ONLY FOR BUILDING/C ' ' 1e • Ling excellence PROPERTY IN THE OPEN OR BUILDERS RISK PROPERTY DESCRIBED AND FOR THE *SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGES INDICATED. THE ESTIMATED REPLACEMENT COST STATED BELOW IS SUBJECT TO THE SPECIFIC PROPERTY LIMIT. **Type of ***Section IV Watei Estimated Covered and Supplemental Replacement Loci/ Location Occupancy Property Flood Coverage Cost 1 14168 OAK PARK BLVD N CITY HALL/GARAGE B CODE C $2,361,123 2 58TH&NORELL WATER TOWER B CODE C $1,265,987 3 14168 OAK PARK BLVD N WATER TOWER B CODE C $804,845 4 BREKKE PARK SHELTER B CODE C $229,768 5 13425 60TH STREET LIFT STATION B CODE C $139,302 6 14168 OAK PARK BLVD N PUMP HOUSE#1 B CODE C $132,249 7 SWAGER PARK SHELTER B CODE C $9,237 8 COVER PARK RECREATION BUILDING B CODE C $52,044 9 VALLEY VIEW PARK SHELTER B CODE C $90,571 10 BEADETTE ON LOOKOUT TRAIL LIFT STATION B CODE C $100,672 11 SUNYSIDE MARINA LIFT STATION B CODE C $100,672 12 14200 53RD STREET LIFT STATION B CODE C $100,672 13 14168 OAK PARK BLVD N CITY HALL PIO CODE C $3,754 14 SWAGER PARK PARK PIO CODE C $73,764 *The limit of coverage for Section IV-Water and Supplemental Coverage is$500,000 per occurrence /500,000 Annual Aggregate **Type of Covered Property B = Building/Contents PIO = Property in the Open BR = Builders Risk Property ***Section IV-Water and Supplemental Flood Coverage CODE A: LMCIT Water and Supplemental Flood Coverage applies with no additional exclusions. CODE B: LMCIT Water and Supplemental Flood Coverage applies in addition to and in excess of the applicable National Flood Insurance Program Coverage. CODE C: LMCIT Water and Supplemental Flood Coverage excludes damages from any occurrence for which any loss or any damage would be payable under a National Flood Insurance Program Coverage. PM-100(1 1/95)(Rev.11/03) LEAGUE OF MINNESOTA CITIES INSURANCE TRUST SCHEDULE OF COVERED PROPERTY Covenant Number: L MC CMC 27453 CITY OAK PARK HEIGHTS, CITY OF League of Minnesota cities Cities promoting excellence COVERAGE AT EACH OF THE LOCATIONS BELOW APPLIES ONLY FOR BUILDING/C NTENT3/' PROPERTY IN THE OPEN OR BUILDERS RISK PROPERTY DESCRIBED AND FOR THE *SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGES INDICATED. THE ESTIMATED REPLACEMENT COST STATED BELOW IS SUBJECT TO THE SPECIFIC PROPERTY LIMIT. **Type of ***Section IV Watei Estimated Covered and Supplemental Replacement Loch Location Occupancy Property Flood Coverage Cost 15 COVER PARK PARK PIO CODE C $83,649 16 VALLEY VIEW PARK PARK PIO CODE C $44,876 17 BREKKE PARK PARK PIO CODE C $161,493 18 CITY WIDE VARIOUS PIO CODE C $73,195 19 14290 58TH ST N PUMPHOUSE #2 B CODE C $125,295 20 KERN CENTER,5500 STILLWATER BLVD LIFT STATION&FORCE MAIN B CODE C $238,685 21 5701 NORWICH PARKWAY AUTUMN HILLS PARK PIO CODE C $232,641 *The limit of coverage for Section IV-Water and Supplemental Coverage is$500,000 per occurrence /500,000 Annual Aggregate **Type of Covered Property B = Building/Contents PIO = Property in the Open BR = Builders Risk Property ***Section IV-Water and Supplemental Flood Coverage CODE A: LMCIT Water and Supplemental Flood Coverage applies with no additional exclusions, CODE B: LMCIT Water and Supplemental Flood Coverage applies in addition to and in excess of the applicable National Flood Insurance Program Coverage. CODE C: LMCIT Water and Supplemental Flood Coverage excludes damages from any occurrence for which any loss or any damage would be payable under a National Flood Insurance Program Coverage. PM-100(11/95)(Rev.11/03) DEFINITION OF CITY ENDORSEMENT It is understood and agreed that city is amended to include: ECONOMIC DEVELOPMENT AUTHORITY All other terms and conditions remain unchanged. LMCIT ME063(11/95)(Rev. 11/01) Page 1 of 1 Terrorism Losses Annual Aggregate Limit Endorsement This Endorsement modifies coverage provided under the Municipal Property Coverage and the Municipal Automobile Physical Damage Coverage. LMCIT will not pay more than $1,000,000 for losses, costs or expenses arising out of or related to, either directly or indirectly, any terrorist activity during the annual coverage period,regardless of the number of occurrences. This limit is part of and not in addition to the general limit per occurrence. Terrorist activity means any of the following, regardless of any other cause or event that in any way contributes concurrently or in any sequence to the loss, cost or expense: 1. Any deliberate, unlawful act that: a. Is declared by any authorized governmental official to be or to involve terrorism,terrorist activity or acts of terrorism; or b. Includes, involves, or is associated with the use or threatened use of force,violence or harm against any person,tangible or intangible property, the environment, or any natural resources, where the act or threatened act is intended, in whole or in part,to: (1) Promote or further any political, ideological, philosophical, racial, ethnic, social or religious cause or objective of the perpetrator or any organization, association or group affiliated with the perpetrator; or (2) Influence, disrupt or interfere with any government related operations, activities or policies; or (3) Intimidate,coerce or frighten the general public or any segment of the general public; or (4) Disrupt or interfere with a national economy or any segment of a national economy;or c. Includes, involves, or is associated with, in whole or in part, any of the following activities, or the threat thereof: (1) Hijacking or sabotage of any form of transportation or conveyance, including but not limited to spacecraft, satellite, aircraft, train, vessel, or motor vehicle; or (2) Hostage taking or kidnapping; or (3) The use of any biological, chemical, radioactive, or nuclear agent, material, device or weapon; or (4) The use of any bomb, incendiary device:explosive or firearm; or (5) The interference with or disruption of basic public or commercial services and systems, including but not limited to the following services or systems: electricity, natural gas, power, postal, communications,telecommunications, information, public transportation,water, fuel, sewer or waste disposal; or LMCIT ME079(11/01)(Rev.11/03) Page 1 of 2 (6) The injuring or assassination of any elected or appointed government official or any government employee; or (7) The seizure, blockage, interference with, disruption of,or damage to any government buildings, institutions, functions,events,tangible or intangible property or other assets; or (8) The seizure, blockage, interference with, disruption of, or damage to tunnels, roads, streets, highways, or other places of public transportation or conveyance. 2. Any of the activities listed in section 1, c. above shall be considered terrorist activity except where you can conclusively demonstrate to us that the foregoing activities or threats thereof were motivated solely by personal objectives of the perpetrator that are unrelated, in whole or in part,to any intention to: a. Promote or further any political, ideological,philosophical, racial, ethnic, social or religious cause or objective of the perpetrator or any organization, association or group affiliated with the perpetrator; or b. Influence, disrupt or interfere with any government related operations, activities or policies; or c. Intimidate,coerce or frighten the general public or any segment of the general public; or d. Disrupt or interfere with a national economy or any segment of a national economy. LMCIT ME079(11/01)(Rev.11/03) Page 2 of 2 LMC League of Minnesota Cities Cities promoting excellence J MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE LMCIT MPCBP(11-05) MC League of Minnesota Cities Cities promoting excellence MUNICIPAL PROPERTY COVERAGE PART ONE LMCIT MPCBP(11-05) MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE WHAT IT IS AND WHERE YOU CAN FIND IT INDEX \ ic League of Minnesota Cities Cities promoting excellence PROPERTY COVERAGE - PART ONE PAGE SECTION I -PROPERTY COVERAGE 1-2 1. COVERAGE AGREEMENT 1 a. COVERED PROPERTY 1 b. PROPERTY NOT COVERED 1-2 SECTION II -ADDITIONAL COVERED LOSS OR DAMAGE 2-4 1. COVERAGE AGREEMENT 2 a. LOSS OF REVENUE,EXTRA EXPENSE AND EXPEDITING EXPENSE 2 b. DEMOLITION AND DEBRIS REMOVAL 2 c. LEASEHOLD INTEREST 2 d. ACCOUNTS RECEIVABLE 3 e. VALUABLE PAPERS AND RECORDS 3 f. UTILITY SERVICES 3 2. COVERAGE AGREEMENT 3 a. ASBESTOS CLEANUP,ABATEMENT AND REMOVAL 3 b. POLLUTANT CLEANUP AND REMOVAL 3 c. ERRORS 3 d. RENTAL REIMBURSEMENT 3 e. ARSON REWARD 3 f. EXTRAORDINARY EXPENSE 4 SECTION III- CAUSES OF LOSS AND DAMAGES NOT COVERED 4-6 SECTION IV-WATER AND SUPPLEMENTAL FLOOD COVERAGE 6-7 SECTION V - BUILDINGS IN THE COURSE OF CONSTRUCTION, ALTERATION OR REPAIR COVERAGE 7 SECTION VI - LIMITS OF COVERAGE AND VALUATION 7-12 SECTION VII -DEFINITIONS 12-17 SECTION VIII CONDITIONS 17-19 LMCIT MPCBP(11-05) Page i MUNICIPAL PROPERTY COVERAGE PART ONE Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special Read the entire covenant carefully to determine rights, meaning, as given in SECTION VII-DEFINITIONS. duties and what is or is not covered. SECTION I - PROPERTY COVERAGE 1. COVERAGE AGREEMENT (5) We will pay for loss to covered property that is temporarily at an unscheduled location that you do We will pay for direct physical loss of or damage to not own, lease or operate, as described in your covered property unless the cause of loss or SECTION VI - LIMITS OF COVERAGE AND damage is not covered, as described under SECTION VALUATION. III - CAUSES OF LOSS AND DAMAGES NOT COVERED. The amount we will pay for loss or b. PROPERTY NOT COVERED damage is limited as described in SECTION VI - LIMITS OF COVERAGE AND VALUATION. We will not cover the following types of property: a. COVERED PROPERTY (1) Aircraft; (1) We will cover the following types of property: (2) Animals(except for police dogs); (a) Building/contents described in the Schedule of (3) Automobiles, vehicles, or self-propelled machines Covered Property. that are licensed for use on public roads; (b) Property in the open described in the Schedule (4) Bills, currency, deeds, evidences of debt, money, of Covered Property. notes or securities; (c) Mobile property valued at $25,000 (5) Builders risk property; replacement cost or less if identified as covered on the Schedule of Covered Mobile Property; and (6) Bridges, roadways, walks, patios or other paved mobile property valued at greater than $25,000 surfaces,except golf course property; replacement cost and is listed on the Schedule of Covered Mobile Property. (7) Contraband or property in the course of illegal transportation or trade; (2) We will pay for loss to newly acquired or constructed building/contents or property in the (8) Cost of excavations, grading,backfilling or filling; open at any one location as described in SECTION VI - LIMITS OF COVERAGE AND (9) Land, subsoil, crops or lawns, except golf course VALUATION. property; (3) We will pay for loss to newly acquired or (10) Pilings,piers,wharves or docks; constructed mobile property as described in SECTION VI - LIMITS OF COVERAGE AND (11) Underground and buried pipes,flues or drains; VALUATION. (12) Foundations of buildings, structures,machinery or (4) We will pay for loss to covered property in transit boilers if their foundations are below: as described in SECTION VI - LIMITS OF COVERAGE AND VALUATION. (a) The lowest basement floor;or LMCIT MPCBP(11-05) Page 1 of 19 (b) The surface of the ground, if there is no equipment that are usual to the transmission of basement; electricity. This does not include substations and transformers. (13) Retaining walls that are not part of the covered property; (15) Trees and shrubs that are not within 100 feet of a building. (14) Transmission and distribution lines and poles and SECTION II - ADDITIONAL COVERED LOSS OR DAMAGE 1. COVERAGE AGREEMENT lessee (including any maintenance or operating charges paid by the lessee) during the unexpired We will provide coverage for the following loss or term of the lease;and damage unless the cause of loss or damage is not covered, as described under SECTION III - CAUSES (b) The rental income that would have been OF LOSS AND DAMAGES NOT COVERED. The earned by you from sublease agreements, over and amount we will pay for loss or damage is limited as above the rental expense specified in the lease described in SECTION VI-LIMITS OF COVERAGE between you and the lessor. AND VALUATION. (3) When covered property is rendered wholly or a. LOSS OF REVENUE, EXTRA EXPENSE AND partially untenantable by a direct physical loss or EXPEDITING EXPENSE damage and the lease is canceled by the lessor in accordance with the conditions of the lease or by We will pay for the actual loss of revenue, extra statutory requirements of the state in which the expense or expediting expense sustained by you due to damaged or destroyed covered property is located, the necessary suspension of your operations during the we will cover the pro rata proportion from the date period of recovery caused by direct physical loss or of loss to expiration date of the lease (to be paid damage to any covered property. without discount)on your interest in: b. DEMOLITION AND DEBRIS REMOVAL (a) Improvements and betterments to covered property during the unexpired term of the lease We will cover the following expenses: that is not covered under any other section of Part One of the covenant; or (1) The cost of necessary demolition and removal of debris of covered property and non-covered (b) The amount of advance rental paid by you and property from a covered location resulting from not recoverable under the terms of the lease for the direct physical loss or damage to covered unexpired term of the lease. property;or (4) We will cover your leasehold interest when your (2) The cost of removal of debris of non-covered covered property is rendered wholly or partially property from your covered location which results untenantable and the lease is canceled by the lease from a specified cause of loss. or by statutory requirements of the state in which the damaged or destroyed covered property is c. LEASEHOLD INTEREST located. (1) We will provide coverage for leasehold interest (5) We will cover your leasehold interest for the first resulting from direct physical loss or damage to three months succeeding the date of the loss and covered property. the net lease interest for the remaining months of the unexpired lease. We will not be liable for any (2) Leasehold interest means: increase of loss that may be occasioned by the suspension, lapse, or cancellation of any license, (a) The excess of the fair rental value of similar or by the exercising of any option to cancel the premises over the actual rent payable by you as lease. LMCIT MPCBP(11-05) Page 2 of 19 d. ACCOUNTS RECEIVABLE in the course of extracting pollutants from land or water and any expense incurred to test for, We will pay for loss or damage to your accounts monitor, or assess the existence, concentration, or receivable caused by direct physical loss or damage to effects of pollutants. your accounts receivable. c. ERRORS e. VALUABLE PAPERS AND RECORDS We will pay for loss to any covered property if the loss We will pay for loss or damage to valuable papers and is not covered solely because of: records caused by direct physical loss or damage to your valuable papers and records. (1) Any inadvertent error in the description or location of the building/contents, property in the f. UTILITY SERVICES open, mobile property, or builders risk property covered by the covenant, which inadvertent error (1) We will pay for pollutant cleanup and removal existed at the inception date of the covenant; or from covered property. (2) Any inadvertent error in the description or (2) We will pay for the actual loss of revenue, extra location of the building/contents, property in the expense or expediting expense sustained by you open, mobile property, or builders risk property in due to the necessary suspension of your operations endorsements to the covenant; or during the period of recovery caused by an interruption of a utility service to your covered (3) Failing through an inadvertent error to schedule property. (a) any building/contents, property in the open, mobile property, or builders risk property owned This interruption must be caused by direct physical by the city at the inception of the covenant, or (b) loss or damage to utility service property. any newly acquired or constructed building/ contents, property in the open, mobile property or 2. COVERAGE AGREEMENT builders risk property during the term of the coverage document. We will provide coverage for the following loss or damage. The amount we will pay for loss or damage (4) It is a condition of this coverage that such is limited as described in SECTION VI - LIMITS OF inadvertent error shall be reported and corrected COVERAGE AND VALUATION. when discovered. a. ASBESTOS CLEANUP, ABATEMENT AND d. RENTAL REIMBURSEMENT REMOVAL We will pay for rental reimbursement expenses (1) We will pay for your expense to clean up, abate or incurred by you for the rental of mobile property that remove from covered property asbestos particles was a result of a covered loss to your mobile property. that are discharged, dispersed,or released. (1) No deductibles apply to this coverage. (2) The expenses to clean up, abate or remove asbestos particles will be paid only if such (2) This coverage does not apply while there is spare expenses are incurred within 90 days of the date of or reserve equipment available to you for your direct physical loss or damage. operations. b. POLLUTANT CLEANUP AND REMOVAL e. ARSON REWARD (1) We will provide coverage for pollutant cleanup In the event that a covered fire loss was the result of an and removal resulting from direct physical loss or act of arson, we will reimburse you for rewards you damage to covered property. pay for information leading to convictions for that act of arson. (2) We will cover the costs of testing that are incurred LMCIT MPCBP(11-05) Page 3 of 19 f. EXTRAORDINARY EXPENSE LMCIT as provided in this paragraph. The amount to be paid to LMCIT will equal the amount needed (1) Extraordinary expense payment: to reimburse LMCIT for the full amount of any claims that LMCIT pays under this section. The As a benefit associated with being a member of city may, at its discretion, reimburse LMCIT LMCIT's property/casualty program, upon through payment of equal annual installments over submission of a claim LMCIT will pay for any a period of up to five years from the date the claim extraordinary and unanticipated cost or expense is paid. Each installment will be billed and the city incurs which: payable at the same time as the city's annual renewal premium for LMCIT property/casualty (a) Is necessary for the purpose of protecting the coverage. If the city ceases to be a member of the public health and safety, protecting city property, LMCIT property/casualty program, the full or meeting the city's legal obligations; and amount, together with any accrued interest, will be immediately due and payable on the date that the (b) Is not covered by any other provision of this city ceases to be a member. covenant, any other LMCIT coverage covenant, or any insurance policy. No interest will apply if reimbursement is made within one year of the date the cost or expense was The city must provide to LMCIT any information incurred. If the city elects to pay the or documentation needed or requested in order to reimbursement in more than one annual determine if these conditions are met. The installment, interest at the rate of 3% annually determination of whether these conditions are met shall be included in the amount owed beginning will be at LMCIT's sole discretion. one year from the date the cost or expense was incurred. (2) Limit: (4) Termination of benefits: LMCIT will not pay more than $100,000 for claims under this section during the coverage year, The LMCIT Board of Trustees may terminate the regardless of the number of claims, occurrences or benefit provided under this section at any time incidents. upon 10 days written notice to the city, if the Board determines that it is necessary to protect the (3) Reimbursement of extraordinary expense interests of LMCIT or its member cities. payment: Termination of this coverage shall not affect any For any claims for extraordinary expense which claims that the city has submitted to LMCIT before are paid under this section,the city must reimburse the effective date of termination of coverage. SECTION III - CAUSES OF LOSS AND DAMAGES NOT COVERED 1. CAUSES OF LOSS NOT COVERED (2) Mudslide or mudflow; We will not pay for loss or damage caused directly or (3) Water that backs up or overflows from a sewer, indirectly by any of the following. Such loss or drain or sump; or damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence (4) Water under the ground surface pressing on, or to the loss. flowing or seeping through: a. WATER (a) Foundations,walls,floors or paved surfaces; (1) Flood, surface water, waves, tides, tidal waves, (b) Basements, whether paved or not; or overflow of any body of water, or their spray, all whether driven by wind or not; (c) Door,windows or other openings; LMCIT MPCBP(11-05) Page 4 of 19 except for coverage that is provided by water and and removal as provided in SECTION II,2.b. supplemental flood coverage as described in SECTION IV -WATER AND SUPPLEMENTAL c. Damages caused by dishonest or criminal acts by FLOOD COVERAGE. you, or your employees: But if loss or damage by fire, explosion or (1) Acting alone or in collusion with others; or sprinkler leakage results, we will pay for that resulting loss or damage. (2) Whether or not occurring during the hours of employment. This exclusion does not apply to mobile property. This exclusion does not apply to acts of b. NUCLEAR HAZARD destruction by your employees; but theft by employees is not covered. Nuclear reaction or radiation, or radioactive contamination,however caused. d. Damages caused by explosion of steam boilers, steam pipes, steam engines or steam turbines But if loss or damage by fire results, we will pay for owned or leased by you, or operated under your that resulting loss or damage. control. c. WAR But if loss or damage by fire or combustion explosion results, we will pay for that resulting (1) War,including undeclared or civil war; loss or damage. (2) Warlike action by a military force, including We will also pay for loss or damage caused by or ( ) Y rY � g p Y g Y action in hindering or defending against an actual resulting from the explosion of gases or fuel or expected attack, by any government, sovereign within the flues or passages through which the or other authority using military personnel or other gases of combustion pass. agents; or e. The cost to repair or replace faulty workmanship, (3) Insurrection, rebellion, revolution, usurped power, materials, construction or design. or action taken by governmental authority in hindering or defending against any of these. This exclusion does not apply to computer equipment data and media. 2. DAMAGES NOT COVERED f. The cost to repair or replace mechanical We will not pay for the following damages: breakdown, including rupture or bursting caused by centrifugal force. a. Damage to your electrical devices, appliances or wires caused by artificially generated electric This exclusion does not apply to computer current including electric arcing. equipment data and media. This exclusion does not apply to computer g. Damages caused by: equipment data and media. (1) Rust, corrosion, decay, deterioration, disease, b. Damage from the discharge, dispersal, seepage, hidden or latent defect, or any quality in property migration,release or escape of pollutants. that causes it to damage or destroy itself; This exclusion does not apply if the discharge, (2) Mold or other fungus or fungi, fungal spores, dispersal, seepage, migration, release or escape of or fungal fragments or metabolites, such as pollutants is itself caused by a specified cause of mycotoxins or volatile organic components; loss. (3) Settling, shrinking or expanding; or This exclusion does not apply to pollutant cleanup LMCIT MPCBP(11-05) Page 5 of 19 (4) Wear and tear. i. Seizure or destruction of property by order of governmental authority. This exclusion does not apply if the above damage results from a specified cause of loss. But we also will pay for acts of destruction ordered by governmental authority and taken at The exclusion for damages caused by disease does the time of a fire to prevent its spread, if the fire not apply to police dogs. would be covered under this coverage part. h. Unexplained loss, mysterious disappearance, or j. The cost of fire department service charges that shortage disclosed upon taking inventory. the city is legally obligated to pay. SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGE 1. COVERAGE AGREEMENT sprinkler leakage results, we will not pay for that resulting loss or damage under this SECTION IV. a. For your building/contents, property in the open, or builders risk property subject to the exclusions b. (1) For any building/contents, property in the and limitations in paragraph b. below, we will pay open, or builders risk property for which Code A for: is shown on the Schedule of Covered Property,no additional exclusions apply to the coverage (1) Direct physical loss of or damage to your provided under this section. building/contents,property in the open, or builders risk property described in the Schedule of Covered (2) For any building/contents, property in the Property; and open, or builders risk property for which Code B is shown on the Schedule of Covered Property, the (2) Any additional covered losses or damages as coverage provided by this section is specifically in described in SECTION II - ADDITIONAL addition to and in excess of the applicable COVERED LOSS OR DAMAGE as a result of National Flood Insurance Program coverage. direct physical loss of or damage to your building/ contents, property in the open, or builders risk (3) For any building/contents, property in the property which are caused by: open, or builders risk property for which Code C is shown on the Schedule of Covered Property, we (a) Flood, surface water, waves, tides, tidal will not pay for any loss or damage resulting from waves, overflow of any body of water, or their any occurrence which would be considered a spray,all weather driven by wind or not; flood for the purpose of the National Flood Insurance Program. (b) Mudslide or mudflow; (4) For any newly acquired or constructed (c) Water that backs up or overflows from a covered property, covered property in transit, or sewer,drain or sump; or covered property that is temporarily at an unscheduled location, as provided by SECTION I, (d) Water under the ground surface pressing l.a., COVERED PROPERTY; or builders risk on,or flowing or seeping through: property as provided by SECTION V, 1., BUILDINGS IN THE COURSE OF i) Foundations, walls, floors or paved CONSTRUCTION, ALTERATION, OR REPAIR surfaces; COVERAGE, that are not shown on the Schedule of Covered Property, we will pay any loss or any ii) Basements, whether paved or not; or damage as if the water and supplemental flood coverage was shown as Code C on the Schedule of iii) Doors,windows or other openings. Covered Property. But if loss or damage by fire, explosion or LMCIT MPCBP(11-05) Page 6 of 19 2. LIMITS OF COVERAGE damages covered under this SECTION IV is limited as described in SECTION VI-LIMITS OF COVERAGE The maximum amount we will pay for all losses or AND VALUATION. SECTION V - BUILDINGS IN THE COURSE OF CONSTRUCTION, ALTERATION, OR REPAIR COVERAGE 1. COVERAGE AGREEMENT 2. PROPERTY NOT COVERED a. We will pay for direct physical loss of or damage We will not cover the following types of property: to your builders risk property unless the cause of loss or damage is not covered, as described under a. Any builders risk property if the approved SECTION III - CAUSES OF LOSS AND estimated total project cost exceeds $2,000,000 as DAMAGES NOT COVERED. The amount we of the date construction commenced. will pay for loss or damage is limited as described in SECTION VI -LIMITS OF COVERAGE AND b. Land, subsoil, crops or lawns. VALUATION. 3. ADDITIONAL COVERED LOSS OR b. We will pay for loss to builders risk property in DAMAGE transit as described in SECTION VI - LIMITS OF COVERAGE AND VALUATION. We will pay for covered losses and damages as described in SECTION II - ADDITIONAL c. We will pay for loss to builders risk property that COVERED LOSS OR DAMAGE as a result of direct is at a temporary location other than the physical damage to your builders risk property. construction location as described in SECTION VI -LIMITS OF COVERAGE AND VALUATION. 4. WATER AND SUPPLEMENTAL FLOOD COVERAGE d. We will also cover the interest of contractors and subcontractors in builders risk property during We will pay for loss or damage to your builders risk construction to the extent of the city's obligation property as described in SECTION IV - WATER for a covered physical loss or damage to such AND SUPPLEMENTAL FLOOD COVERAGE. covered property as specified in the applicable contract. Such interest of contractors and 5. ADDITIONAL DEFINITIONS subcontractors is limited to the property for which they have been hired to perform such work and Project cost means the cost of construction, materials, such interest will not extend to any loss of and architectural, legal, financial and other revenue, extra expense, or expediting expense professional services relating to the construction, sustained by the contractor and subcontractors as alteration or repair project. provided by this covenant. SECTION VI - LIMITS OF COVERAGE AND VALUATION 1. LIMITS OF COVERAGE c. We will not pay for loss or damage in any one occurrence until the amount of loss or damage a. We will not pay for more than the general limit per exceeds the Deductible in Item 7 of the occurrence specified in Item 5 of the Declarations. Declarations. We will then pay the amount of loss or damage in excess of the Deductible, up to the b. We will not pay for more than the specific applicable limits of coverage: property limit for loss or damage to any buildings/contents, property in the open or (1) The Deductible applies against the total loss builders risk property in any one occurrence. incurred by you from any one occurrence, LMCIT MPCBP(11-05) Page 7 of 19 regardless of the number of locations involved. $250,000 per location (2) If two or more deductibles in Item of the (2) Loss revenue, extra expense nd expediting ( ) 7 ( ) of e t and Declarations for property coverage apply to one expense: $5,000,000 per occurrence occurrence for you, the total to be deducted will not exceed the largest deductible applicable. (3) Demolition and debris removal: For each occurrence, an amount equal to 25% of the d. The sublimits stated below are per occurrence and estimated replacement cost of the covered property are part of and not in addition to the specific as stated in the Schedule of Covered Property. property limit: However, if there is no direct physical loss or damage to covered property, the most we will pay (1) Computer equipment data and media: is $50,000 per occurrence. $1,000,000 These limits do not apply to golf course property. (2) Fine arts: $500,000 (4) Extraordinary expense: $100,000 per annual (3) Personal effects: $25,000 per occurrence,but aggregate not to exceed$2,500 per employee (5) Leasehold interest: $500,000 per location (4) Business personal effects: $25,000 per occurrence,but not to exceed$5,000 per employee (6) Pollutant cleanup and removal: $100,000 per location e. The sublimits stated below are per occurrence and are part of and not in addition to the general limit (7) Errors: 90% of the loss, subject to $500,000 per occurrence: per occurrence (1) Covered property in transit: $250,000 (8) Rental reimbursement: $25,000 per annual aggregate (2) Unscheduled location: $500,000 (9) Arson reward: $5,000 per fire loss (3) Golf course property: $100,000 per occurrence for direct damage to golf course (10) Accounts receivable: $500,000 per location property and debris removal of covered property and non-covered property. (11) Valuable papers and records: $500,000 per location f. The sublimits stated below are in addition to the general limit per occurrence: (12) Utility Services: $100,000 per occurrence (1) Newly acquired or constructed building/ h. The limit for damage caused by criminal acts other contents or property in the open at any one than vandalism is $1,000,000. This limit applies location: $5,000,000 to any direct physical loss or damages as provided in Section I and to any additional covered loss or (2) Newly acquired or constructed mobile damages as provided in Section II. This limit is property: $250,000 per unit part of and not in addition to the general limit per occurrence and the specific property limit. g. Except as provided in paragraph h. the limits for the additional covered loss or damage are i. The limits for water and supplemental flood specified in Item 5 of the Declarations and are coverage are specified in Item 5 of the listed below. The limits are in addition to the Declarations and are stated below: general limit per occurrence and the specific property limit: (1) $500,000 per occurrence. (1) Asbestos clean-up, abatement and removal: (2) The water and supplemental flood coverage LMCIT MPCBP(11-05) Page 8 of 19 annual aggregate is the most we will pay for water i) If the covered property is replaced or and supplemental flood coverage loss during the rebuilt at the same location, the replacement annual coverage period. cost of the covered property with similar size and construction; (3) The sublimity stated below are per occurrence and are part of and not in addition to the per ii) If the covered property is replaced or occurrence limit: rebuilt at a different location, the replacement cost cannot be greater than if you would have (a) Golf course property: $100,000 rebuilt at the same location with similar size and construction; or (b) Property in transit: $250,000 iii) If the covered property is replaced or j. The limits for Buildings in the Course of rebuilt at the same location with different size Construction,Alteration, or Repair Coverage are: or construction, the replacement cost cannot be greater than if you would have rebuilt at the (1) Any one location: $2,000,000 same location with similar size and construction. (2) The limits stated below are part of and not in addition to the any one location limit: (b) If the covered property is destroyed and is not replaced or rebuilt,LMCIT will pay the fair market (a) Property in transit: $250,000 value of the property at the time of the loss. (b) Temporary location: $500,000 (c) If the covered property is damaged but not destroyed and is repaired, LMCIT will pay the 2. LOSS VALUATION actual replacement cost to repair the property plus a. GENERAL PROVISIONS the amount of the reduction, if any, in the fair market value of the repaired property. (1) Definitions: (d) If the covered property is damaged but not destroyed and remains in service without being (a) Covered property is deemed to be destroyed if repaired, LMCIT will pay the amount of the the replacement cost to rebuild or replace the reduction, if any, in the fair market value of the property is less than the sum of the replacement damaged property. cost to repair the property plus the reduction, if any, in the fair market value of the repaired (e) If the covered property is damaged but not property. destroyed and the city elects not to repair it but to raze or otherwise dispose of the property, LMCIT (b) Replacement cost means the cost to repair or will pay to the city the estimated replacement cost replace covered property that is damaged or to repair the property. destroyed, using new materials of equivalent size, kind and quality. Replacement cost includes any LMCIT will not pay you more than your financial additional costs necessary to comply with building interest in the covered property. codes. (3) Limitations: (2) Adjustment: In any event, LMCIT will not pay you more than Except as provided in b. below, in the event of the following: direct physical loss of or damage to your covered property, the basis of adjustment will be as (a) Your financial interest in the covered property; follows: or (a) If the covered property is destroyed and is (b) The fair market value of the covered property, replaced or rebuilt,LMCIT will pay the following: if the covered property is vacant property. LMC1T MPCBP(11-05) Page 9 of 19 b. SPECIAL PROVISIONS (5) Mobile property: (1) Valuable papers and records: For mobile property that is damaged or destroyed, LMCIT will not pay for more than the amount you For valuable papers and records,LMCIT will pay actually spent to repair or replace the damaged the cost of blank materials for reproducing the mobile property; or 200%of the fair market value records, plus the cost of labor to transcribe or copy of the damaged property,whichever is less. the records when there is a duplicate, or to reproduce the data of records. (6) Police dogs: (2) Computer equipment, data and media: A police dog is considered to be destroyed if because of injury or disease the dog is not able to For computer equipment, data, or media, LMCIT perform the dog's normal functions and there is no will pay the cost to replace destroyed equipment reasonable prospect that the dog will be able to do with equipment of greater processing ability; the so. cost to reproduce or restore the data; and the cost to repair or replace media with the same kind and (a) For police dogs that are destroyed, LMCIT quality of material. Any replacement equipment will pay for the cost to replace the dog and the cost must be able to perform the same function as the of any necessary training. destroyed equipment. (b) If a police dog is injured as a result of an Unauthorized intrusive codes or programming, accident or an intentional act,LMCIT will pay the commonly known as a computer virus or hacking cost of necessary treatment and care to enable the intrusion, that are entered into your computer dog to resume performing the dog's normal equipment, data and media, are considered direct functions. But LMCIT will not pay the cost of physical loss of or damage to your covered treatment and care to treat or prevent disease. property. For any single occurrence, LMCIT will not pay (3) Accounts receivable: more than the amount you actually spend to replace the police dog or for care and treatment of For accounts receivable, LMCIT will pay for all the police dog, or 200% of the fair market value of amounts due from your customers that you are the police dog,whichever is less. unable to collect; interest charges on any loan required to offset amounts you are unable to (7) Trees and shrubs: collect pending our payment of these amounts; collection expenses in excess of your normal (a) For a tree or shrub which is destroyed,LMCIT collection expenses that are made necessary by the will pay the actual cost to replace it with a tree or loss; and other reasonable expenses you incur to shrub of similar type and of a size that is normally re-establish your accounts receivable. If you are considered to be reasonable and practical to unable to establish the amount of accounts transplant, regardless of whether the tree or shrub receivable outstanding at the time of the loss, we is replaced or not. will use the average monthly amounts of accounts receivable for the 12 months immediately (b) For a tree or shrub that is damaged but not preceding the month in which the loss occurs, destroyed, LMCIT will pay the actual cost of any adjusting to reflect the normal business during the service, treatment, or repair that is actually loss month. performed. (4) Fine arts: But, we will not pay more than the actual cost to replace it with a tree or shrub of similar type and For fine arts which are destroyed,LMCIT will pay of a size that is normally considered to be the fair market value, regardless of whether the reasonable and practical to transplant. covered property is replaced or not. LMCIT MPCBP(11-05) Page 10 of 19 (8) Business personal effects: (b) All necessary expenses that reduce the business income loss that otherwise would have Notwithstanding the provisions of paragraph 11. been incurred. of the Common Conditions, LMCIT coverage for business personal effects is primary with respect to (3) We will reduce the amount of your: any coverage provided under the employee's homeowner's insurance or similar coverage. (a) Loss of revenue loss, other than extra expense or expediting expense to the extent you can resume c. LOSS OF REVENUE, EXTRA EXPENSE AND your operations, in whole or in part, by using EXPEDITING EXPENSE PROVISIONS damaged or undamaged property (including merchandise or stock) at the described location or (1) The amount of loss of revenue loss LMCIT will elsewhere. pay,will be determined based on: (b) Extra expense or expediting expense loss to (a) The gross revenue of the city before the direct the extent you can return your operations to physical loss or damage occurred; normal and discontinue such extra expense or expediting expense. (b) The likely gross revenue of the city if no physical loss or damage had occurred; However, if you do not resume operations, or do not resume operations as quickly as possible, we (c) The operating expenses, including payroll will pay based on the length of time it would have expenses, necessary to resume operations with the taken to resume operations as quickly as possible. same quality of service that existed just before the direct physical loss or damage; and d. APPRAISAL AND ARBITRATION (d) Other relevant sources of information, Either party may make a written demand for including: arbitration if the city and LMCIT disagree on any of the following: i) Your financial records and accounting procedures; (1) The fair market value of covered property prior to the loss or damage; ii) Bills, invoices and other vouchers; and (2) The fair market value of covered property after the iii) Deeds, liens or contracts. loss or damage; (2) The amount of extra expense loss LMCIT will pay (3) The fair market value of covered property after will be determined based on: repair; or (a) All expenses that exceed the normal operating (4) The estimated cost to repair the covered property. expenses that would have been incurred by In this event, each party will select a competent operations during the period of recovery if no and impartial person. Each appointee shall be a direct physical loss or damage had occurred. We professional appraiser or other person with will deduct from the total of such expenses: appropriate professional expertise. The two appointees will select an umpire. If they cannot i) The salvage value that remains of any agree, either may request that selection be made property bought for temporary use during the by a judge of a court having jurisdiction. The two period of recovery once operations are appointees will each separately state their resumed; respective estimates of the value or cost which is in question. If they fail to agree, they will submit ii) Any extra expense that is paid for by other their differences to the umpire. A decision agreed insurance, except for insurance that is written to by any two will be binding. subject to the same plan, terms and conditions and provisions as this insurance; and LMCIT MPCBP(11-05) Page 1 I of 19 Each party will: (b) Share equally the expense of the umpire and any other expenses related to the arbitration (a) Pay the cost of its own appointee; and process. SECTION VII - DEFINITIONS 1. Accounts receivable means: (2) Materials, equipment, and supplies used for construction, alteration or repair, provided a. All amounts due from your customers that you such property is intended to be permanently in are unable to collect and there is a loss; or on the builders risk property; and b. Interest charges on any loan required to offset (3) Temporary structures built or assembled amounts you are unable to collect pending our on location, including cribbing, scaffolding payment of these accounts; and construction forms used in the course of construction or alterations or repair of the c. Collection expenses in excess of your normal builders risk property. collection expenses that are made necessary by the loss; and 4. Building means the building or structure including: d. Other reasonable expenses that you incur to re- a. Completed additions; establish your records of accounts receivable. b. Permanently installed fixtures, machinery and e. Accounts receivable does not include: equipment; (1) The amount of the accounts that you are c. Outdoor fixtures; able to re-establish or collect; d. Contents owned by you that are used to (2) An amount to allow for probable bad maintain or service the building or structure or its debts that you are normally unable to collect; premises, including: and (1) Fire extinguishing equipment; (3) All unearned interest and service charges. (2) Outdoor furniture; 2. Automobile means a land motor vehicle, trailer or semi-trailer designed for travel on public roads. (3) Floor coverings; and 3. Builders risk property means: (4) Appliances used for refrigerating, ventilating, cooking, dishwashing or a. Building or structure in the course of laundering; or construction; 5. Building/contents, as described in the Schedule of b. Alterations or repair of the city's existing Covered Property,means the following: building; or a. Building; or c. Addition to the city's existing building. b. Contents. d. Builders risk property also includes: 6. Business personal effects means personal property (1) Foundation of the building or structure in of your employees that is used to maintain the the course of construction or an addition to the operations of the city. city's existing building; 7. City means governmental body or entity first LMCIT MPCBP(11-05) Page 12 of 19 • named in the Declarations. For purposes of this b. Machinery and equipment; coverage,city includes relief associations. c. Stock; Unless specifically named in the Declarations, city shall not include: d. All other contents owned by you and used in your municipal operations; a. Gas, electrical, or steam utilities commission; e. Labor, materials or services furnished or b. Port authority, housing and redevelopment arranged by you on contents of others; authority, economic development authority, area or municipal redevelopment authority, or similar f. Your use interest as tenant in improvements agency; and betterments. Improvements and betterments are fixtures,alterations, installations or additions: c. Municipal power agency; (1) Made a part of the building or structure d. Municipal gas agency; you occupy but do not own; and e. Hospital or nursing home board or (2) You acquired or made at your expense but commission; cannot legally remove. f. Airport commission; g. Contents of others that are in your care, custody and control. g. Welfare or public relief agency; However, our payment for loss or damage to h. School board; or contents will be for the account of the owner of the property. i. Joint powers entity. h. Trees and shrubs; 8. Computer equipment, data and media means a network of machine components capable of i. Accounts receivable; accepting information, processing it according to plan and producing the desired results. It includes: j. Computer equipment data or media; a. Air conditioning, fire protection equipment k. Valuable papers and records; and electrical equipment used exclusively in your computer operations; I. Personal effects; or b. Facts, concepts or instructions in a form m. Fine arts. usable for communications; But, contents does not mean mobile property. c. Interpretation or processing by automatic means; or 10. Employee means: d. Computer programs and materials on which a. A person whom you compensate directly by the data is recorded. salary, wages or commissions, and who you have the right to direct or control while performing 9. Contents means property located in or on the duties for you; building described in the Declarations or in the open (or in a vehicle) within 100 feet of the b. Member of the city council; described building,consisting of the following: c. Member of a city board, commission, or a. Furniture and fixtures; committee which is not excluded by the definition of city; LMCIT MPCBP(11-05) Page 13 of 19 d. Elected or appointed official of the city; business if you cannot continue operations. e. Volunteer person or organization while acting c. Extra expense to: on behalf of the city and subject to the city's direction and control; (1) Repair or replace any covered property; or f. Other authorized person or agent of the city (2) Research, replace or restore the lost while acting on behalf of the city, but excludes information on damaged valuable papers and independent contractors; records; g. City relief association members, officers, and to the extent it reduces the amount of loss that employees; or otherwise would have been payable under this covenant. h. Any natural person employed by an employment contractor while that person is 13. Fine arts means property or articles of artistic or subject to your direction and control and historical value including paintings, etchings, performing services for you excluding, however, pictures, tapestries, statuary, marbles, bronzes, any such person while having care and custody of porcelain, rare glass, antique silver, china, books property outside the premises. and manuscripts,rugs and similar articles. But employee does not mean any agent, broker, 14. Golf course property means bridges, paved factor, commission merchant, consignee, roadways, paved cart paths and other paved independent contractor or representative of the surfaces,shelters,restrooms,ball washers, screens, same general character. flags,markers, signs, tees, fairways and greens. 11. Expediting expense means the reasonable extra 15. Joint powers entity means an operating entity cost of temporary repair and expediting the repair created by two or more governmental units of damaged covered property, overtime and entering into an agreement as provided by statute express freight or other rapid means of for the joint exercise of governmental powers. An transportation. intergovernmental agreement will be deemed to create a joint powers entity if the agreement 12. Extra expense means the excess total cost establishes a board with the effective power to do necessarily incurred to continue your operations as any of the following, regardless of whether the reasonably as practicable during the period of specific consent of the constituent governmental recovery that is over and above the cost that would units may also be required: normally have been incurred to conduct the operations during the same period had no loss or a. To receive and expend funds; damage occurred. It includes: b. To enter into contracts; a. Extra expense to avoid or minimize the suspension of business and to continue operations: c. To hire employees; (1) At the described location; or d. To purchase or otherwise acquire or hold real or personal property; or (2) At a replacement location or at temporary locations, including: e. To sue or be sued. (a) Relocation expenses; and 16. LMCIT means the League of Minnesota Cities Insurance Trust. (b) Costs to equip and operate the replacement or temporary locations. 17. Location means: b. Extra expense to minimize the suspension of a. The site of any covered building/contents, LMCIT MPCBP(11-05) Page 14 of 19 property in the open, or builders risk property; or Insurance Trust. b. The site of any covered newly acquired or 24. Period of recovery means the period of time that: constructed building/contents or property in the open; a. Begins immediately after the time of direct physical loss or damage to covered property. 18. Loss of revenue means gross revenue, including rental value, less charges and expenses that do not b. Ends on the earlier of: necessarily continue. (1) The date covered property is actually 19. Mobile property means: repaired,rebuilt or replaced and operations are resumed; and your operations would generate a. Machinery or equipment designed for use the loss of revenue amount that would have principally off public roads; existed if no direct physical or damage had occurred; or b. Police dogs; (2) 60 consecutive days after the date when c. Vehicles maintained for use solely on or next the covered property is actually repaired, to locations owned or rented by you and not rebuilt or replaced and operations are licensed for highway use; resumed. d. Vehicles and its equipment whether self- However, the expiration date of the covenant will propelled or not, maintained primarily to provide not cut short the period of recovery. mobility to permanently mounted equipment; 25. Personal effects means personal property of your e. Tools, including protective clothing and gear, employees, other than business personal effects. and other similar property; 26. Pollutants means any solid, liquid, gaseous or f. Business personal effects; or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and g. Mobile property in your care, custody and waste. Waste includes materials to be recycled, control. reconditioned or reclaimed. 20. Newly acquired or constructed means that the city h 27. Property in the open means: has acquired or taken possession of the property during the current covenant period. a. Benches, fences, light poles or outdoor lighting systems, playground equipment, statues, 21. Occurrence means an accident or event that causes scoreboards, portable toilets, water fountains, a direct physical loss or damage to covered basketball and tennis nets and equipment, property. Any continuous accident or event that flagpoles, and signs that are not a part of the causes more than one direct physical loss or building; or damage to covered property during a 72 hour period constitutes an accident or event as a single b. Golf course property. occurrence. But property in the open does not mean basketball 22. Operations means: and tennis court surfaces, fire hydrants, street signs, street lights or traffic signs and signals, or a. Your city activities occurring at the described any property described in SECTION 1, 1.b location; or PROPERTY NOT COVERED. b. The tenantability of the described location. 28. Rental value means the sum of: 23. Our means the League of Minnesota Cities a. The total anticipated gross rental income from LMC1T MPCBP(11-05) Page 15 of 19 tenant occupancy of the covered property as 33. Utility service property means any of the furnished and equipped by you;and following types of property supplying water, communication service or power to covered b. The amount of all continuing charges that are property: the legal obligation of the tenant and that would otherwise be your obligation; and a. Pumping stations or water mains supplying water; c. The fair rental value of any portion of the covered property that you occupy. b. Equipment supplying communication services; or 29. Specific property limit means 150% of the estimated replacement cost of the covered property c. Utility generation plants, switching plants, as stated in the Schedule of Covered Property. substations, transformers, and transmission lines supplying electricity, steam or gas. 30. Specified causes of loss means fire; lightning; explosion; windstorm or hail; smoke; aircraft or 34. Vacant property means: vehicles; riot or civil commotion; vandalism; criminal acts other than vandalism; leakage or a. Property owned by the city is deemed to be discharge from fire extinguishing equipment; vacant property if for a period of 60 consecutive sinkhole collapse; volcanic action; falling objects; days less than 31% of the building's total square weight of snow, ice or sleet; or water damage: footage is either used by the city for customary operations or is leased out. a. Sinkhole collapse means the sudden sinking or collapse of land into underground empty spaces b. Property rented or leased to the city is deemed created by the action of water on limestone or to be vacant property if for a period of 60 dolomite.This cause of loss does not include: consecutive days the property does not contain enough contents to conduct customary operations. (1) The cost of filling sinkholes; or However, the following are not considered vacant (2) Sinking or collapse of land into man-made property: underground cavities. (1) Builders risk property; or b. Falling object does not include loss or damage to: (2) A building or structure which is used and occupied, and which is designed to be used (1) Property in the open; or and occupied, on an occasional, intermittent, or seasonal basis. (2) The interior of a building or structure, or property inside a building or structure, unless 35. Valuable papers and records means inscribed, the roof or an outside wall of the building or printed or written documents, manuscripts or structure is first damaged by a falling object. records, including abstracts, books, deeds, drawings, films,maps and mortgages. c. Water damage means accidental discharge or leakage of water or steam from any part of a But valuable papers and records does not mean system or appliance containing water or steam. money or securities, converted data, programs or instructions used in your data processing 31. Stock means merchandise held in storage or for operations, including the materials on which the sale, raw materials and in process or finished data is recorded. goods, including supplies used in their packing or shipping. 36. We means the League of Minnesota Cities Insurance Trust. 32. Us means the League of Minnesota Cities Insurance Trust. LMCIT MPCBP(11-05) Page 16 of 19 37. You means the city shown in the Declarations. 38. Your means the city shown in the Declarations. SECTION VIII - CONDITIONS 1. CONTROL OF PROPERTY b. The coverage territory is: Any act or neglect of any person other than you The United States of America (including its beyond your direction or control will not affect this territories and possessions); coverage. (1) Puerto Rico; and The breach of any condition of this coverage part at any one or more locations will not affect coverage at (2) Canada. any location where, at the time of loss or damage, the breach of condition does not exist. 6. LOSS CONDITIONS 2. COVERAGE UNDER TWO OR MORE a. Abandonment: COVERAGES You cannot abandon your property to us. If two or more of this covenant's coverages apply to the same loss or damage, we will not pay more than b. Duties in the event of loss or damage: the actual amount of the loss or damage. You must see that the following are done in the 3. LEGAL ACTION AGAINST US event of loss or damage to covered property: No one may bring legal action against us under this (1) Notify the police if a law may have been coverage part unless: broken. a. There has been full compliance with all of the (2) Give us prompt notice of the loss or damage. terms of the coverage part; and Include a description of the property involved. b. The action is brought within 2 years after the date (3) As soon as possible, give us a description of on which the direct physical loss or damage occurred. how, when and where the loss or damage occurred. 4. NO BENEFIT TO BAILEE (4) Take all reasonable steps to protect the covered property from further damage. If feasible, No person or organization, other than you, having custody of covered property will benefit from this set the damaged property aside and in the best coverage, possible order for examination. Also keep record of your expenses, for consideration in the 5. COVERAGE PERIOD, COVERAGE settlement of the claim. TERRITORY (5) At our request, give us complete inventories Under this coverage part: of the damaged and undamaged property. Include quantities, costs, values, and amount claim of loss demand. a. We cover loss or damage commencing: (1) During the coverage period shown in the (6) Permit us to inspect the property and records proving the loss or damage. Declarations; and (2) Within the coverage territory. (7) If requested, permit us to question you under oath at such times as may be reasonably required LMCIT MPCBP(11-05) Page 17 of 19 about any matter relating to this covenant or your c. The initial annual premiums will be based upon claim, including your books and records. In such these schedules and the appropriate replacement event,your answers must be signed. cost values. (8) Send us a signed, sworn statement of loss d. You will pay us additional premium if the containing the information we request to settle the following property is added during the covenant claim. You must do this within 60 days after our period: request. We will supply you with the necessary forms. (1) Building/contents or property in the open with a replacement cost value of greater than (9) Cooperate with us in the investigation or $5,000,000; settlement of the claim. (2) Mobile property with a replacement cost value c. Loss Payment: of greater than$250,000; (1) We will give notice of our intentions within 30 (3) Builders risk property with a project cost of days after we receive the sworn statement of loss. greater than$2,000,000; or (2) We may adjust losses with the owners of lost (4) Additional covered loss or damage limits, or or damaged property if other than you. If we pay property sublimits. the owners, such payments will satisfy your claims against us for the owners' property. We will not e. We will return premium to you if the following pay the owners more than their financial interest in property is deleted during the covenant period: the covered property. (1) Building/contents or property in the open with d. Recovered Property: a replacement cost value of greater than $5,000,000; If either you or we recover any property after loss settlement, that party must give the other prompt (2) Mobile property with a replacement cost value notice. At your option, the property will be of greater than$250,000; returned to you. You must then return to us the amount we paid to you for the property. We will (3) Builders risk property with a project cost of pay recovery expenses and the expenses to repair greater than$2,000,000; or the recovered property, subject to the amount applying under this covenant. (4) Additional covered loss or damage limits, or property sublimits. 7. PREMIUMS AND PREMIUM ADJUSTMENTS 8. CANCELLATION a. You agree to furnish us with a schedule of a. You may cancel Part One of this covenant. You buildings/contents, property in the open and must mail or deliver not fewer than 30 days mobile property valued at greater than $25,000, advance written notice to us stating when the and builders risk P roperty prior to the beginning of cancellation is to take effect. each covenant period. b. We may cancel Part One of this covenant. We must b. These schedules must include all buildings/ mail or deliver to you not fewer than 30 days contents,property in the open and mobile property advance written notice stating when the valued at greater than $25,000, and builders risk cancellation is to take effect. Mailing that notice property that was covered by your prior covenant to you at your mailing address shown in the but was not described in the p rior covenant's Declarations will be sufficient to prove notice. Schedule of Covered Property or Schedule of However, we may cancel with 10 days written Covered Mobile Property. notice for nonpayment of premium. LMCIT MPCBP(11-05) Page 18 of I9 c. The covenant period will end on the day and hour (2) The mortgage holder's right to recover the full stated in the cancellation notice. amount of the mortgage holder's claim will not be impaired. At our option, we may pay to the d. If Part One of this covenant is canceled, we will mortgage holder the whole principal on the send you any premium refund due. If we cancel, mortgage plus any accrued interest. In this event, the refund will be pro rata. If you cancel, the your mortgage and note will be transferred to us refund may be less than pro rata, computed in and you will pay your remaining mortgage debt to accordance with our current cancellation rules. us. The cancellation will be effective even if we have not made or offered a refund. f. If we cancel this covenant, we will give written notice to the mortgage holder at least: 9. MORTGAGE HOLDERS (1) 10 days before the effective date of a. The term mortgage holder includes trustee. cancellation if we cancel for your nonpayment of premium; or b. We will pay for covered loss of or damage to buildings or structures to each mortgage holder (2) 30 days before the effective date of shown in the Declarations in their order of cancellation if we cancel for any other reason. precedence,as interests may appear. g. If we do not renew this covenant, we will give c. The mortgage holder has the right to receive loss written notice to the mortgage holder at least 10 payment even if the mortgage holder has started days before the expiration date of this covenant. foreclosure or similar action on the building or structure. 10. DEDUCTIBLES d. If we deny your claim because of your acts or a. The Limits of Coverage shown in the Declarations because you have failed to comply with the terms apply to the amount of loss or damages in excess of this coverage part,the mortgage holder will still of the Municipal Property Deductible shown in the have the right to receive loss payment if the Municipal Property, Crime, Bond and Equipment mortgage holder: Breakdown Declarations or the General Annual Aggregate Deductible, if any, shown in the (1) Pays any premium due under this coverage Common Coverage Declarations, and the Limits part at our request if you have failed to do so; of Coverage will not be reduced by the Deductible amount. (2) Submits a signed, sworn proof of loss within 60 days after receiving notice from us of your b. LMCIT shall be liable to the city or to others on failure to do so; and behalf of the city only to the amount of loss or damages in excess of any deductible amounts. (3) Has notified us of any change in ownership, occupancy or substantial change in risk known to We will then pay the amount of loss up to the the mortgage holder. applicable limit of coverage. All of the terms of this coverage part will then apply to the mortgage holder. e. If we pay the mortgage holder for any loss or damage and deny payment to you because of your acts or because you have failed to comply with the terms of this coverage part: (1) The mortgage holder's rights under the mortgage will be transferred to us to the extent of the amount we pay; and LMCIT MPCBP(11-05) Page 19 of 19 Ll4C League of Minnesota Cities Cities promoting excellence J MUNICIPAL CRIME COVERAGE PART TWO LMCIT MPCBP(11-05) MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE WHAT IT IS AND WHERE YOU CAN FIND IT INDEX \ ic ,League of Minnesota Cities Cities p mnoling excellence CRIME COVERAGE - PART TWO PAGE SECTION I - COVERAGE AGREEMENT 1 SECTION II- CAUSES OF LOSS AND DAMAGES NOT COVERED 1-2 SECTION C N III- LIMITS OF COVERAGE 2 SECTION IV-DEFINITIONS 2-4 SECTION V- CONDITIONS 4-6 LMCIT MPCBP(11-05) 1 • MUNICIPAL CRIME COVERAGE PART TWO Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special Read the entire covenant carefully to determine rights, meaning, as given in SECTION IV-DEFINITIONS. duties and what is or is not covered. SECTION I - COVERAGE AGREEMENT 1. THEFT, DISAPPEARANCE, AND We will pay for loss of money and securities resulting DESTRUCTION -INSIDE THE PREMISES directly from the theft, disappearance, or destruction outside the premises in the care,custody and control of We will pay for loss of money and securities resulting a messenger or an armored motor vehicle. directly from theft, disappearance, or destruction inside the premises or banking premises. 3. FORGERY OR ALTERATION We will pay the loss of, and loss from damage to, the We will pay for loss involving instruments of payment property that contains the money and securities; and resulting directly from the forgery or alteration of, on loss from damage to the premises resulting directly or in any instruments of payment. from the theft or attempted theft. If you are sued for refusing to pay any instrument of 2. THEFT, DISAPPEARANCE, AND payment, we will pay any reasonable legal expenses DESTRUCTION - OUTSIDE THE that you incur and pay in that defense. The amount we PREMISES pay will be in addition to the applicable limit of coverage. SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED We will not pay for loss or damages as specified 4. GOVERNMENTAL ACTION below: Loss resulting from seizure or destruction of property 1. ACCOUNTING OR ARITHMETICAL by order of governmental authority. ERRORS OR OMISSIONS 5. INDIRECT LOSS Loss resulting from accounting or arithmetical errors and omissions. Loss that is an indirect result of any act or occurrence covered by this covenant including, but not limited to, 2. ACTS OF EMPLOYEES loss resulting from: Loss resulting from any dishonest or criminal act a. Your inability to realize income that you would committed by any of your employees: have realized had there been no loss of, or loss from damage to, money and securities; or a. Acting alone or in collusion with other persons; or instruments of payment. b. While performing services for you or otherwise. b. Payment of damages of any type for which you are legally liable. 3. FIRE But, we will pay compensatory damages arising Loss or damage to the premises resulting from fire, directly from a loss covered under this covenant. however caused. LMCIT MPCBP(11-05) Page 1 of 6 c. Payment of costs,fees,or other expenses you incur malicious mischief. in establishing either the existence or the amount of loss under this covenant. 9. WAR 6. LEGAL EXPENSES Loss resulting from: Expenses related to any legal action. a. War,including undeclared or civil war; 7. NUCLEAR HAZARD b. Warlike action by a military force, including action in hindering or defending against an actual Loss resulting from nuclear reaction or radiation, or or expected attack, by any government, sovereign radioactive contamination,however caused. or other authority using military personnel or other agents; or 8. VANDALISM c. Insurrection, rebellion, revolution, usurped power, Loss from damage to the premises or its exterior or to or action taken by governmental authority in containers of money and securities by vandalism or hindering or defending against any of these. SECTION III - LIMITS OF COVERAGE 1. The most we will pay in any one occurrence is the unless the amount of loss exceeds the Deductible applicable limit of coverage shown in the amount shown in the Declarations. We will then Declarations. pay the amount of loss in excess of the Deductible amount,up to the limit of coverage. 2. We will not pay for loss in any one occurrence SECTION IV - DEFINITIONS 1. Banking premises means the interior of that g. School board; portion of any building occupied by a banking institution or similar safe depository. h. Airport commission; or 2. City means the governmental body or entity first i. Joint powers entity. named in the Declarations. For purposes of this coverage, city includes relief associations. Unless 3. Employee means: specifically named in the Declarations, city shall not include: a. A person whom you compensate directly by salary, wages or commissions and who you have a. Gas,electrical, or steam utilities commission; the right to direct or control while performing duties for you; b. Port authority, housing and redevelopment authority, economic development authority, area b. Member of the city council; or municipal redevelopment authority, or similar agency; c. Member of a city board, commission, or committee which is not excluded by the definition c. Municipal power agency; of city; d. Municipal gas agency; d. Elected or appointed official of the city; e. Hospital or nursing home board or commission; e. Volunteer person or organization while acting on behalf of the city and subject to the city's f. Welfare or public relief agency; direction and control; LMCIT MPCBP(11-05) Page 2 of 6 f. Other authorized person or agent of the city 7. Messenger means you, or any of your employees, while acting on behalf of the city, but excludes while having care and custody of the money and independent contractors; securities outside the premises. g. City relief association members, officers, and 8. Money means: employees; or a. Currency, coins, and bank notes in current use h. Any natural person employed by an and having a face value; and employment contractor while that person is subject to your direction and control and performing b. Travelers checks, register checks and money services for you, excluding, however, any such orders held for sale to the public. person while having care and custody of property outside the premises. 9. Occurrence means: But employee does not mean any agent, broker, a. With respect to SECTION I - COVERAGE factor, commission merchant, consignee, AGREEMENT, 1.and 2.: independent contractor or representative of the same general character. (1) Act or series of related acts involving one or more persons; or 4. Instruments of payment means checks, drafts, promissory notes or similar written promises, (2) Act or event, or series of related acts or orders or directions to pay a sum certain in money, events not involving any person. that are: b. With respect to SECTION I - COVERAGE a. Made or drawn by or drawn upon you; or AGREEMENT, 3., all loss caused by any person or in which that person is involved, whether the b. Made or drawn by one acting as your agent; or loss involves one or more instruments of payment. that are purported to have been so made or drawn. The date of the occurrence is the date on which 5. Joint powers entity means an operating entity the act, event or loss is alleged to have taken place. created by two or more governmental units If the loss or damages are alleged to have arisen entering into an agreement as provided by statute from a series of acts or events, the date of for the joint exercise of governmental powers. An occurrence is deemed to be the date when the first intergovernmental agreement will be deemed to such wrongful act or event took place or is alleged create a joint powers entity if the agreement to have taken place. establishes a board with the effective power to do any of the following, regardless of whether the 10. Our means the League of Minnesota Cities specific consent of the constituent governmental Insurance Trust. units may also be required: 11. Premises means the interior of that portion of any a. To receive and expend funds; building you occupy in conducting your business. b. To enter into contracts; 12. Securities means negotiable and nonnegotiable instruments or contracts representing either money c. To hire employees; or other property and includes: d. To purchase or otherwise acquire and hold real a. Tokens, tickets, revenue and other stamps or personal property; or (whether represented by actual stamps or unused value in a meter)in current use; and e. To sue or be sued. b. Evidences of debt issued in connection with 6. LMCIT means the League of Minnesota Cities credit or charge cards, which cards are not issued Insurance Trust. by you; LMCIT MPCBP(1 1-05) Page 3 of 6 but does not include money. 15. We means the League of Minnesota Cities Insurance Trust. 13. Theft means any act of stealing. 16. You means the city shown in the Declarations. 14. Us means the League of Minnesota Cities Insurance Trust. 17. Your means the city shown in the Declarations. SECTION V - CONDITIONS 1. COVENANT PERIOD damages to property or premises, as described under SECTION I-COVERAGE AGREEMENT, 1.,that: a. The covenant period is shown in the Declarations. a. You own or hold; or b. Subject to the loss sustained during prior insurance condition, we will pay only for loss that you b. For which you are legally liable. sustain through acts committed or events occurring during the covenant period. However, this covenant is for your benefit only. It provides no rights or benefits to any other person or 2. DISCOVERY PERIOD FOR LOSS organization. We will pay only for covered loss discovered no later 5. LEGAL ACTION AGAINST US than one year from the end of the covenant period. You may not bring any legal action against us 3. DUTIES IN THE EVENT OF LOSS involving loss: After you discover a loss or a situation that may result a. Unless you have complied with all the terms of in Ioss of, or loss from damage to, money and this covenant; and securities; or instruments of payment,you must: b. Until 90 days after you have filed proof of loss a. Notify us as soon as possible. with us; and b. Submit to examination under oath at our request c. Unless brought within 2 years from the date you and give us a signed statement of your answers. discover the loss. c. Give us a detailed, sworn proof of loss within 120 6. LOSS COVERED UNDER MORE THAN days. If the loss was due to forgery or alteration, ONE COVERAGE OF THIS COVENANT you must include with your proof of loss any instrument involved in that loss; or if that is not If two or more coverages of this covenant apply to the possible, you must give us an affidavit setting same loss,we will pay the lesser of: forth the amount and cause of loss. a. The actual amount of loss;or d. Cooperate with us in the investigation and settlement of any claim. b. The sum of the limits of coverage applicable to that loss. e. If you have reason to believe that any loss of, or loss from damage to, money or securities involves 7. LOSS COVERED UNDER THIS a violation of law,you must notify the police. COVENANT AND PRIOR COVENANT ISSUED BY US 4. INTERESTS COVERED If any loss is covered: Coverage provided by this covenant is limited to money and securities; and instruments of payment; and a. Partly by this covenant; and LMC1T MPCBP(11-05) Page 4 of 6 b. Partly by the prior canceled or terminated insurance or indemnity. However, this covenant will covenant that we had issued to you or any not apply to the amount of loss that is more than the predecessor in interest, the most we will pay is the applicable limit of coverage shown in the larger of the amount recoverable under this Declarations. covenant or the prior covenant. 11. RECORDS 8. LOSS SUSTAINED DURING PRIOR INSURANCE You must keep records of all money and securities; and instruments of payment, so we can verify the amount a. If you or any predecessor in interest sustained loss of any loss. during the period of any prior insurance that you or the predecessor in interest could have recovered 12. TERRITORY under that insurance, except that the time within disappearance, which to discover loss had expired,we will pay for a. This covenant covers theft, or it under this covenant provided: destruction of money or securities only from acts committed or events occurring within the United (1) This covenant became effective at the time of States of America, U.S. Virgin Islands, Puerto cancellation or termination of the prior insurance; Rico, Canal Zone, or Canada, and while and temporarily outside this territory for a period of not more than 90 days. (2) The loss would have been covered by this covenant had it been in effect when the acts or b. This covenant covers loss you sustain from forgery events causing the loss were committed or or alteration anywhere in the world. occurred. 13. VALUATION- SETTLEMENT b. The coverage under this condition is part of,not in addition to, the limits of coverage applying to this a. Subject to the applicable limit of coverage covenant and is limited to the lesser of the amount provision,we will pay for: recoverable under: (1) Loss of money, but only up to and including (1) This covenant as of its effective date; or its face value. We may, at our option, pay for loss of money issued by any country other than the (2) The prior insurance had it remained in effect. United States of America: 9. NON-CUMULATION OF LIMIT OF (a) At face value in the money issued by that COVERAGE country; or Regardless of the number of years this covenant (b) In the United States of America dollar remains in force or the number of premiums paid, no equivalent determined by the rate of exchange limit of coverage cumulates from year to year or on the day the loss was discovered. period to period. (2) Loss of securities, but only up to and 10. OTHER INSURANCE including their value at the close of business on the day the loss was discovered, we may, at our This covenant does not apply to loss recoverable or option: recovered under other insurance or indemnity. (a) Pay the value of such securities or replace However, if the limit of the other insurance or them in kind, in which event you must assign indemnity is insufficient to cover the entire amount of to us all your rights, title and interest in and to the loss, this covenant will apply to that part of the those securities; loss, other than that falling within any Deductible amount, not recoverable or recovered under the other (b) Pay the cost of any Lost Securities Bond required in connection with issuing duplicates LMCIT MPCBP(11-05) Page 5 of 6 of the securities. However, we will be liable only for the payment of so much of the cost of the bond as would be charged for a bond having a penalty not exceeding the lesser of the: i) Value of the securities at the close of business on the day the loss was discovered; or ii) Limit of coverage. (3) Loss from damages to property or premises, as described under SECTION I - COVERAGE AGREEMENT, 1.,for not more than the: (a) Actual cash value of the property on the day the loss was discovered; (b) Cost of repairing the property or premises; or (c) Cost of replacing the property with property of like kind and quality. We may, at our option, pay the actual cash value of the property or repair or replace it. If we cannot agree with you upon the actual cash value or the cost of repair or replacement, the value or cost will be determined by arbitration. b. We may, at our option, pay for loss of, or loss from damage to,property other than money: (1) In the money of the country in which the loss occurred; or (2) In the United States of America dollar equivalent of the money of the country in which the loss occurred determined by the rate of exchange on the day the loss was discovered. c. Any property that we pay for or replace becomes our property. 14. FACSIMILE SIGNATURES: We will treat mechanically reproduced facsimile signatures the same as handwritten signatures. LMCIT MPCBP(11-05) Page 6 of 6 League of Minnesota Cities Cities promoting excellence MUNICIPAL BOND COVERAGE PART THREE LMCIT MPCBP(11-05) MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE WHAT IT IS AND WHERE YOU CAN FIND IT INDEX LMC League of Mimasofa Ci"fies Cities. rontothig atreiknice.; BOND COVERAGE - PART THREE PAGE SECTION I- COVERAGE AGREEMENT 1 SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED 1 SECTION III-LIMITS OF COVERAGE 2 SECTION IV-DEFINITIONS 2-3 SECTION V- CONDITIONS 3-5 LMCIT MPCBP(11-05) 1 MUNICIPAL BOND COVERAGE PART THREE Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special Read the entire covenant carefully to determine rights, meaning,as given in SECTION IV-DEFINITIONS. duties and what is or is not covered. SECTION I - COVERAGE AGREEMENT We will pay for loss as provided by each coverage Declarations or endorsement, the following causes of form that is designated in the Declarations. loss and damages not covered, limits of coverage, definitions, and conditions, apply to all bond coverage Unless stated otherwise in any bond coverage form, forms forming part of this covenant. SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED We will not pay for loss damages as specified below: b. A profit and loss computation. 1. GOVERNMENTAL ACTION However, where you establish wholly apart from such computations that you have sustained a loss, then you Loss resulting from seizure or destruction of property may offer your inventory records and actual physical by order of governmental authority. count of inventory in support of the amount of loss claimed. 2. INDIRECT LOSS 4. LEGAL EXPENSES Loss that is an indirect result of any act or occurrence covered by this covenant including, but not limited to, Expenses related to any legal action. loss resulting from: 5. NUCLEAR a. Your inability to realize income that you would have realized had there been no loss as provided Loss resulting from nuclear reaction or radiation, or by each bond coverage form that is designated in radioactive contamination,however caused. the Declarations. 6. WAR b. Payment of damages of any type for which you are legally liable. But, we will pay compensatory Loss resulting from: damages arising directly from a loss covered under this covenant. a. War, including undeclared or civil war; c. Payment of costs, fees or other expenses you incur b. Warlike action by a military force, including in establishing either the existence or the amount action in hindering or defending against an actual of loss under this covenant. or expected attack, by any government, sovereign or other authority using military personnel or other 3. INVENTORY SHORTAGES. agents; or Loss, or that part of any loss, the proof of which as to c. Insurrection, rebellion, revolution, usurped power, its existence or amount is dependent upon: or action taken by governmental authority in hindering or defending against any of these. a. An inventory computation; or LMCITMPCBP(11-05) Page 1 of5 I � SECTION III - LIMITS OF COVERAGE The most we will pay for loss is described in SECTION II, LIMITS OF COVERAGE, of the bond coverage form. SECTION IV - DEFINITIONS 1. Bond coverage form means the following bond c. Member of a city board, commission, or forms: committee which is not excluded by the definition of city; a. Bond - Employee Dishonesty Coverage Form MPCB 203; and d. Elected or appointed official of the city; b. Bond - Employee Faithful Performance e. Volunteer person or organization while acting Coverage Form MPCB 204. on behalf of the city and subject to the city's direction and control; 2. City means the governmental body or entity first named in the Declarations. For purposes of this f. Other authorized person or agent of the city coverage, city includes relief associations. Unless while acting on behalf of the city, but excludes specifically named in the Declarations, city shall independent contractors; not include: g. City relief association members, officers, and a. Gas,electrical,or steam utilities commission; employees; or b. Port authority, housing and redevelopment h. Any natural person employed by an authority, economic development authority, area employment contractor while that person is subject or municipal redevelopment authority, or similar to your direction and control and performing agency; services for you, excluding, however, any such person while having care and custody of property c. Municipal power agency; outside the premises. d. Municipal gas agency; But employee does not mean any agent, broker, factor, commission merchant, consignee, e. Hospital or nursing home board or independent contractor or representative of the commission; same general character. f. Welfare or public relief agency; 4. Joint powers entity means an operating entity created by two or more governmental units g. School board; entering into an agreement as provided by statute for the joint exercise of governmental powers. An h. Airport commission; or intergovernmental agreement will be deemed to create a joint powers entity if the agreement i. Joint powers entity. establishes a board with the effective power to do any of the following, regardless of whether the 3. Employee means: specific consent of the constituent governmental units may also be required: a. A person whom you compensate directly by salary, wages or commissions and who you have a. To receive and expend funds; the right to direct or control while performing duties for you; b. To enter into contracts; b. Member of the city council; c. To hire employees; LMCIT MPCBP(I 1-05) Page 2 of 5 d. To purchase or otherwise acquire and hold real 9. Property other than money and securities means or personal property; or any tangible property that has intrinsic value. e. To sue or be sued. 10. Securities means negotiable and nonnegotiable instruments or contracts representing either money 5. LMCIT means the League of Minnesota Cities or other property and includes: Insurance Trust. a. Tokens, tickets, revenue and other stamps 6. Money means: (whether represented by actual stamps or unused value in a meter)in current use; and a. Currency, coins, and bank notes in current use and having a face value; and b. Evidences of debt issued in connection with credit or charge cards, which cards are not issued b. Travelers checks, register checks and money by you; orders held for sale to the public. but does not include money. 7. Occurrence means all loss caused by an employee, whether the result of a single act or series of acts. 11. Us means the League of Minnesota Cities Insurance Trust. The date of the occurrence is the date on which the single act is alleged to have taken place. If the 12. We means the League of Minnesota Cities loss or damages are alleged to have arisen from a Insurance Trust. series of acts, the date of occurrence is deemed to be the date when the first such wrongful act took 13. You means the city shown in the Declarations. place or is alleged to have taken place. 14. Your means the city shown in the Declarations. 8. Our means the League of Minnesota Cities Insurance Trust. SECTION V - CONDITIONS 1. CANCELLATION AS TO ANY 2. COVENANT PERIOD EMPLOYEE a. The covenant period is shown in the Declarations. We reserve the right to cancel the covenant as to any employee: b. Subject to the loss sustained during prior insurance condition, we will pay only for loss that you a. Immediately upon discovery by you or any official sustain through acts committed or events occurring or employee authorized to manage, govern or during the covenant period. control your employee, of any act on the part of an employee whether before or after becoming 3. DISCOVERY PERIOD FOR LOSS employed by you which would constitute a loss covered under the terms of this covenant. We will pay only for covered loss discovered no later than one year from the end of the covenant period. b. On the date specified in a notice mailed to you. That date will be at least 30 days after the date 4. DUTIES IN THE EVENT OF LOSS of mailing. After you discover a loss or a situation that may result The mailing of notice to you at the last mailing in loss as provided by each bond coverage form that is address known to us will be sufficient proof of designated in the Declarations,you must: notice. Delivery of notice is the same as mailing. a. Notify us as soon as possible. LMCIT MPCBP(11-05) Page 3 of 5 b. Submit to examination under oath at our request covenant or the prior covenant. and give us a signed statement of your answers. 9. LOSS SUSTAINED DURING PRIOR c. Give us a detailed, sworn proof of loss within 120 INSURANCE days. a. If you or any predecessor in interest sustained loss d. Cooperate with us in the investigation and during the period of any prior insurance that you settlement of any claim. or the predecessor in interest could have recovered under that insurance, except that the time within 5. INDEPENDENT RIGHT OF RECOVERY which to discover loss had expired,we will pay for it under this covenant provided: We have an independent right of recovery against any employee for any loss due to the employee's (1) This covenant became effective at the time of malfeasance,willful neglect of duty or bad faith. cancellation or termination of the prior insurance, and; 6. LEGAL ACTION AGAINST US (2) The loss would have been covered by this You may not bring any legal action against us covenant had it been in effect when the acts or involving loss: events causing the loss were committed or occurred. a. Unless you have complied with all the terms of this covenant; and b. The coverage under this condition is part of,not in addition to, the limits of coverage applying to this b. Until 90 days after you have filed proof of loss covenant and is limited to the lesser of the amount with us; and recoverable under: c. Unless brought within 2 years from the date you (1) This covenant as of its effective date; or discover the loss. (2) The prior insurance had it remained in effect. 7. LOSS COVERED UNDER MORE THAN ONE COVERAGE OF THIS COVENANT 10. NON-CUMULATION OF LIMIT OF COVERAGE If two or more coverages of this covenant apply to the same loss,we will pay the lesser of: Regardless of the number of years this covenant remains in force or the number of premiums paid, no a. The actual amount of loss; or limit of coverage cumulates from year to year or period to period. b. The sum of the limits of coverage applicable to that loss. 11. OTHER INSURANCE 8. LOSS COVERED UNDER THIS This covenant does not apply to Ioss recoverable or COVENANT AND PRIOR COVENANT recovered under other insurance or indemnity. ISSUED BY US However, if the limit of the other insurance or indemnity is insufficient to cover the entire amount of If any loss is covered: the loss, this covenant will apply to that part of the loss, other than that falling within any Deductible a. Partly by this covenant, and amount, not recoverable or recovered under the other insurance or indemnity. However, this covenant will b. Partly by the prior canceled or terminated not apply to the amount of loss that is more than the covenant that we had issued to you or any applicable limit of coverage shown in the predecessor in interest, the most we will pay is the Declarations. larger of the amount recoverable under this LMCIT MPCBP(11-05) Page 4 of 5 12. RECORDS discovered; or You must keep records of all money, securities, and ii) Limit of coverage. property other than money and securities; and provide any other reasonably obtainable information so we can (c) Loss of, or loss from damage to,property verify the amount of any loss. other than money and securities, or loss from damage to the premises for not more than the: 13. TERRITORY i) Actual cash value of the property on This covenant covers only acts committed or events the day the loss was discovered; occurring within the United States of America, U.S. Virgin Islands, Puerto Rico, Canal Zone, or Canada ii) Cost of repairing the property or and while temporarily outside this territory for a premises; or period not more than 90 days. iii) Cost of replacing the property with 14.VALUATION - SETTLEMENT property of like kind and quality. a. Subject to the applicable limit of coverage We may, at our option, pay the actual cash value provision,we will pay for: of the property or repair or replace it. (1) Loss of money, but only up to and including If we cannot agree with you upon the actual cash its face value. We may, at our option, pay for loss value or the cost of repair or replacement, the of money issued by any country other than the value or cost will be determined by arbitration. United States of America: b. We may, at our option, pay for loss of, or loss (a) At face value in the money issued by that from damage to,property other than money: country; or (1) In the money of the country in which the loss (b) In the United States of America dollar occurred; or equivalent determined by the rate of exchange on the day the loss was discovered. (2) In the United States of America dollar equivalent of the money of the country in which (2) Loss of securities, but only up to and the loss occurred determined by the rate of including their value at the close of business on exchange on the day the loss was discovered. the day the loss was discovered, we may, at our option: c. Any property that we pay for or replace becomes our property. (a) Pay the value of such securities or replace them in kind, in which event you must assign to us all your rights,title and interest in and to those securities; (b) Pay the cost of any Lost Securities Bond required in connection with issuing duplicates of the securities. However, we will be liable only for the payment of so much of the cost of the bond as would be charged for a bond having a penalty not exceeding the lesser of the: i) Value of the securities at the close of business on the day the loss was LMCIT MPCBP(11-05) Page 5 of 5 • LMC League of Minnesota Cities Cities promoting excellence MUNICIPAL PETROFUND COVERAGE PART FOUR LMCIT MPCBP(11-05) MUNICIPAL PROPERTY, CRIME, BOND, AND PETROFUND COVERAGE WHAT IT IS AND WHERE YOU CAN FIND IT INDEX M C League o,f Minnesota Ciiies l.Cties pn mo excei64`. PETROFUND COVERAGE - PART FOUR PAGE SECTION I-REIMBURSEMENT BENEFITS 1 SECTION II-LIMITS OF REIMBURSEMENT BENEFITS 1 SECTION III-DEFINITIONS 1-2 SECTION IV-CONDITIONS AND EXCLUSIONS 3 LMCIT MPCBP(11-05) i MUNICIPAL PETROFUND COVERAGE PART FOUR Various provisions in this covenant restrict coverage. Words and phrases that appear in italics have special Read the entire covenant carefully to determine rights, meaning,as given in SECTION IV-DEFINITIONS. duties and what is or is not covered. SECTION I - REIMBURSEMENT BENEFITS Subject to the terms, conditions, definitions, and This Agreement is supplementary to the exclusions which appear hereafter: Minnesota Petrofund, and applies only to damages and corrective action costs for which you have 1. LMCIT agrees to reimburse you for damage you received partial reimbursement from the have been required to pay for taking corrective Minnesota Petrofund pursuant to the provisions action and for compensating third parties for and monetary limitations of the Petroleum Tank bodily injury and property damage caused by an Release Cleanup Act. accidental tank release. 2. LMCIT agrees to reimburse you for defense costs This Agreement applies to claims made against which you reasonably and necessarily incur in the you only if such claims are made during the term investigation and defense of any claim made of this Agreement. against you by a third party during the term of this Agreement resulting from a tank release covered by Paragraph 1 above. SECTION II - LIMITS OF REIMBURSEMENT BENEFITS 1. With respect to a single tank release, LMCIT's 2. LMCIT's liability to reimburse you for liability shall not exceed 10% of the total reimbursable costs and defense costs shall be reimbursable costs you have been required to pay limited to $250,000 for claims made against you for taking corrective action and for compensating during the term of this Agreement with respect to third parties for bodily injury and property a single tank release, and $250,000 in the damage. aggregate for all claims made against you during the term of this Agreement regardless of the number of tank releases. SECTION III - DEFINITIONS 1. City means the governmental body or entity first c. Municipal power agency; named in the Declarations. For purposes of this coverage, city includes relief associations. Unless d. Municipal gas agency; specifically named in the Declarations, city shall not include: e. Hospital or nursing home board or commission; a. Gas, electrical,or steam utilities commission; f. Welfare or public relief agency; b. Port authority, housing and redevelopment authority, economic development authority, area g. School board; or municipal redevelopment authority, or similar agency; h. Airport commission; or LMCIT MPCBP(11-05) Page 1 of 3 i. Joint powers entity. 5. Joint powers entity means an operating entity created by two or more governmental units 2. Corrective action means an action taken to entering into an agreement as provided by statute minimize, eliminate, or clean up a release to for the joint exercise of governmental powers. An protect the public health and welfare of the intergovernmental agreement will be deemed to environment. create a joint powers entity if the agreement establishes a board with the effective power to do 3. Defense costs means reasonable and necessary any of the following, regardless of whether the claim adjuster fees, attorney fees incurred by or on specific consent of the constituent governmental behalf of you, court costs, court reporter and units may also be required: transcript fees, general witness and expert witness fees and expenses, and similar defense related a. To receive and expend funds; costs. b. To enter into contracts; 4. Employee means: c. To hire employees; a. A person whom you compensate directly by salary, wages or commissions and who you have d. To purchase or otherwise acquire and hold real the right to direct or control while performing or personal property; or duties for you; e. To sue or be sued. b. Member of the city council; 6. Minnesota Petrofund means the petroleum tank c. Member of a city board, commission, or release cleanup fund as defined in Minn. Stat. committee which is not excluded by the definition Chapter 115C, and administered by the Petroleum of city; Tank Release Compensation Board. d. Elected or appointed official of the city; 7. LMICT means the League of Minnesota Cities Insurance Trust. e. Volunteer person or organization while acting on behalf of the city and subject to the city's 8. Reimbursable costs means costs which are eligible direction and control; costs and which are reimbursable under the provisions of the Petroleum Tank Release Cleanup f. Other authorized person or agent of the city Act, and excludes all ineligible costs as defined by while acting on behalf of the city, but excludes that Act. independent contractors; 9. Responsible person means a person who is g. City relief association members, officers, and responsible for a tank release under the Petroleum employees; or Tank Release Cleanup Act. h. Any natural person employed by an 10. Tank release, tank releases means an accidental employment contractor while that person is subject spilling, leaking, emitting, discharging, escaping, to your direction and control and performing leeching, or disposing of petroleum from a tank services for you, excluding, however, any such into the environment. person while having care and custody of property outside the premises. 11. You and your means the city shown in the Declarations. But employee does not mean any agent, broker, factor, commission merchant, consignee, 12. Petroleum Tank Release Cleanup Act means independent contractor or representative of the Minn. Stat. Chapter 115C, and the rules and same general character. regulations duly adopted thereunder. LMCIT MPCBP(11-05) Page 2 of 3 SECTION IV - CONDITIONS AND EXCLUSIONS 1. The reimbursement benefits provided by this Declarations. Subsequent renewals of this Agreement is supplementary only and shall not Agreement shall be treated as separate terms. replace or reduce the reimbursement for damages and corrective action costs provided to you by the 8. In the event of a tank release covered by this Minnesota Petrofund and applies only to damages Agreement,you shall promptly give written notice and corrective action costs which would be to LMCIT with full particulars of any tank release reimbursable costs to you from the Minnesota incident or any claim or suit brought against you Petrofund but for the monetary limitations under with respect to such tank release. the provisions of the Petroleum Tank Release Cleanup Act. 9. You shall at all times cooperate with and promptly respond to LMCIT's requests for information, 2. The reimbursement benefits provided by this investigative data, records, or any other Agreement are strictly limited to the corrective documentation material to the determination of action, stated damages and defense costs set forth your and LMCIT's liability under this Agreement. in Section 1. REIMBURSEMENT BENEFITS, resulting from an accidental tank release. No 10. It is the express intent of the parties to this other liability, hazard, risk, remedy, or damage is Agreement that by your participation as a covered. beneficiary to this Agreement you do not waive immunities, defenses, or limitations on your 3. This Agreement does not apply to tank releases, liability available to you under statute or common bodily injury, or property damage expected or law. intended from the standpoint of the covered party. 11. A claim shall be deemed to be made when you 4. As a condition precedent to your receiving receive notice of a tank release. reimbursement under this Agreement,you must be a responsible person who has taken corrective action and incurred reimbursable costs and complied with all requirements of the Petroleum Tank Release Cleanup Act, and you must have received reimbursement from the Minnesota Petrofund of reimbursable costs without offset or reduction by reason of your participation in this Agreement. 5. LMCIT will not reimburse you for any amounts which you have not been reimbursed by the Minnesota Petrofund by reason of your failure to comply with the requirements stated in Minn. Stat. Chapter 115C.09, subd. 3, (i)and(j). 6. LMCIT shall have no duty to provide a defense to you with respect to any suit or claim made against you arising out of a tank release covered by this Agreement, however, LMCIT shall have the right to intervene at its expense in the investigation or defense of any claim or suit against you which may be covered by this Agreement. 7. The term of this Agreement shall be one year beginning with the effective date stated in the LMCIT MPCBP(11-05) Page 3 of 3 ADDITIONAL COVERAGE/PROPERTY IN THE OPEN This endorsement modifies coverage provided under the Municipal Property Coverage by extending coverage on property in the open to the property described at the locations listed below. Loc. # Location Occupancy Additional Property To Be Covered 18 CITYWIDE VARIOUS SIRENS ONLY.NO OTHER PROPERTY IN THE OPEN IS COVERED. All other terms and conditions remain unchanged. LMCIT MPCBP-209(11/05) LEAGUE OF MINNESOTA CITIES INSURANCE TRUST SCHEDULE OF COVERED MOBILE PROPERTY Covenant#: CMC 27453 LMC League of Minnesota Cities CITY: OAK PARK HEIGHTS Cities promoting excellence COVERAGE APPLIES TO MOBILE PROPERTY VALUED AT REPLACEMENT COST VALUES OF $25,000 OR LESS PER ITEM IF IDENTIFIED AS COVERED AND TO MOBILE PROPERTY THAT HAVE REPLACEMENT COST VALUES GREATER THAN$25,000 PER ITEM THAT ARE LISTED. COVERED/NOT COVERED A. MOBILE PROPERTY VALUED AT$25,000 OR LESS COVERED B. MOBILE PROPERTY VALUED AT GREATER THAN$25,000 Description of Mobile Property Serial No. (Make,Model and Year) 1 1995 CATERPILLAR XQ225 PORTABLE GENERATOR SET 8JJ00226 2 2000 CASE 621 WHEEL LOADER 112822 JEE0123895 3 2003 KUBOTA TRACTOR WITH PLOW 20224—TRACTOR 2029087-HITCH 4 5 6 7 8 9 10 11 12 13 14 15 LMCIT PM-109(11/97)(Rev.11/02) Covenant Number: MUNICIPAL LIABILITY DECLARATIONS CMC 27453 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST IEl's'I (Herein called LMCIT) Item 1. CITY: OAK PARK HEIGHTS, CITY OF League of Minnesota Cities Cifies promoting excel%nce Item 2. COVERAGE PERIOD: From: 07/07/06 To: 07/07/07 12:01 A.M. Standard Time at Mailing Address on Common Coverage Declarations Item 3. THE COVERED PARTY IS: CITY Claims Made Item 4. COVERAGE PARTS: IN RETURN FOR THE PAYMENT OF THE PREMIUM, AND SUBJECT TO ALL THE TERMS OF THIS COVENANT, LMCIT AGREES WITH THE COVERED PARTY TO PROVIDE THE COVERAGE AS STATED IN THIS COVENANT, SUBJECT TO THE FOLLOWING LIMITS: EACH OCCURRENCE LIMIT $ 1,000,000 PRODUCTS & COMPLETED OPERATIONS LIMIT $ 1,000,000 Annual Aggregate FAILURE TO SUPPLY CLAIM LIMIT $ 1,000,000 Annual Aggregate EMF CLAIM LIMIT $ 1,500,000 Annual Aggregate MOLD CLAIM LIMIT $ 1,500,000 Annual Aggregate FIRE DAMAGE LIMIT $ 50,000 Any One Fire MEDICAL AND RELATED EXPENSE LIMIT $ 1,000/$10,000 Any One Person/Occurrence LIMITED POLLUTION LIABILITY CLAIM *$ 1,000,000 Per Sudden Occurrence/ LIMIT $1,000,000 Annual Aggregate LEAD OR ASBESTOS CLAIM LIMIT *$ 200,000 Per Claim/$200,000 Annual Aggregate LAND USE, DEVELOPMENT, FRANCHISE OR ENTERPRISE OPERATIONS LITIGATION LIMIT **$ 1,000,000 Annual Aggregate *LIMIT includes damages, loss adjustment expense, defense costs and supplementary payments. **LIMIT includes litigation costs. Item 5. MUNICIPAL LIABILITY DEDUCTIBLE: (Subject to General Annual Aggregate Deductible, if any, shown on Common Coverage Declarations) $ 500 Per Occurrence Item 6. RETROACTIVE DATES: MUNICIPAL LIABILITY RETROACTIVE DATE: 07/07/87 LIMITED POLLUTION LIABILITY CLAIM RETROACTIVE DATE: 05/24/88 LEAD OR ASBESTOS CLAIM RETROACTIVE DATE: 07/07/93 Item 7. ENDORSEMENTS ATTACHED TO THIS COVERAGE PART: C M C(11-05) M E066(11-05) M E073(11-01) M G L-1(01-95) LMCIT DEC-013(1 1/86)(Rev.11/05) COMPREHENSIVE MUNICIPAL COVERAGE Various provisions in this covenant restrict coverage. SECTION II- WHO IS COVERED. Read the entire coverage agreement carefully to determine rights, duties and what is and is not covered. Other words and phrases that appear in italics have special meaning, as given in SECTION IV - The words city and covered party are defined under DEFINITIONS. SECTION I - COVERAGES COVERAGE A. MUNICIPAL LIABILITY is alleged to have taken place. COVERAGE (CLAIMS MADE BASIS) (2) For any other claim for damages, the date of the 1. COVERAGE AGREEMENT occurrence is the date on which the wrongful act giving rise to the claim for damages took place or is a. Except as otherwise provided in this agreement, alleged to have taken place. If the damages are LMCIT will pay on behalf of the covered party all alleged to have arisen from a series of wrongful acts, sums which the covered party shall become legally the date of the occurrence is deemed to be the date obligated to pay as damages as a result of an when the first such wrongful act took place or is occurrence, if the following conditions are met: alleged to have taken place. (1) The claim for such damages must be first made If both (1) and (2) apply to claims for damages against the covered party during the coverage arising from a single occurrence, the date of the period; and occurrence is the earlier of the dates defined by (1) and (2), respectively. (2) The date of the occurrence giving rise to the claim for damages must be on or after the retroactive b. For any claim for damages, the date the claim is date, if any, shown in the Declarations; and made is deemed to be as follows: (3) The occurrence must have taken place in the (1) For any employment liability claim, the claim is coverage territory. deemed to have been made on the earliest of: b. LMCIT will have the right and duty to defend any (a) The date the claimant files a charge with the such claim or suit seeking damages. LMCIT may, at Federal Equal Employment Opportunity its discretion, investigate any actual or potential Commission, the Commissioner of the claim; and unless the city has given notice as Minnesota Department of Human Rights, or a provided in SECTION VI - CONDITIONS, 7., local Human Rights Commission as defined in LMCIT may settle any claim or suit. Minnesota Statute §363.01, subd. 23, whichever comes first; or c. The amount LMCIT will pay for damages is limited as described in SECTION III - LIMITS OF (b) The date when notice of claim for damages COVERAGE. is received by any covered party or by LMCIT, whichever comes first. 2. CLAIM AND OCCURRENCE DATES (2) For any Health Insurance Portability and a. For any claim for damages, the date of the Accountability Act of 1996 claim (HIPAA), the occurrence shall be deemed to be as follows: claim is deemed to have been made on the earliest of: (1) For claims for bodily injury or property damage, the date of the occurrence is the date on which the (a) The date the claimant files a complaint with bodily injury or property damage first took place or the Federal Health and Human Services Office LMCIT CMC(11-86)(Rev.11-05) Page 1 of 20 r f for Civil Rights; or of the injury. (b) The date when notice of claim for damages This exclusion does not apply to liability assumed is received by any covered party or by LMCIT, by the covered party under a covered contract. whichever comes first. d. Any loss, cost, or expense arising out of any (3) For any other claim for damages, the claim is direction demand, or request by the government or deemed to have been made when notice of such any other entity that the city or any other entity test claim is received and recorded by any covered party for, monitor, clean up, remove, contain, treat, or by LMCIT, whichever comes first. detoxify or neutralize pollutants; or (4) All claims for damages arising from a single Damages arising out of the actual, alleged or occurrence will be deemed to have been made at the threatened discharge, dispersal, seepage, migration, time the first of those claims is made against any release or escape of pollutants: covered party. (1) At or from premises the city owns, rents, leases, 3. EXCLUSIONS uses, or occupies, and premises the city no longer owns, rents, leases, uses, or occupies; This coverage does not apply to: (2) At or from any landfill, dump, or other site or a. Damages for which the covered party is liable by location presently or formerly used by or for the city reason of the assumption of liability in a contract or or others for the handling, storage, disposal, agreement. This exclusion does not apply to liability processing or treatment of pollutants; for damages: (3) Which are or were at any time transported, (1) Assumed in a contract or agreement that is a handled, stored, treated, disposed of, or processed as covered contract; or waste by or for the city or any person or organization for whom the city may be legally responsible; or (2) The covered party would have in the absence of the contract or agreement. (4) At or from any site or location on which the city or any contractors or subcontractors working directly b. Damages for which the covered party may be liable or indirectly on the city's behalf are or have been by reason of the Minnesota Civil Damages Act performing operations: (M.S. §340A.801-340A.802), or any other law governing liability for illegal sales of alcoholic (a) If the pollutants are brought on or to the site beverages. or location in connection with such operations; or c. Bodily injury to: (b) If the operations are to test for, monitor, (l) An employee of the city arising out of and in the clean up, remove, contain, treat, detoxify or course of employment by the city; or neutralize the pollutants. (2) Damages to the spouse, child, parent,brother or This exclusion does not apply to any of the sister of that employee as a consequence of (1) following: above. (1) Any limited pollution liability claim. This exclusion applies: (2) Any claim arising out of the discharge or (1) Whether the city may be liable as an employer or dispersal of mace, tear gas or similar agent, if such in any other capacity; and discharge was for the purpose of protecting persons or property or incident to an arrest. (2) To any obligation to share damages with or repay someone else who must pay damages because (3) Any lead claim or asbestos claim, unless the LMCIT CMC(11-86)(Rev. 11-05) Page 2 of 20 i T actual, alleged, or threatened discharge, dispersal, performing operations, if the property damage arises release, escape, use, distribution, or handling of lead out of those operations; or or asbestos took place at or from any landfill, dump, or other site or location presently or formerly used (4) Work performed by or on behalf of the city by or for the city or others for the handling, storage, arising out of your work or any portion thereof, or disposal, processing or treatment of pollutants. out of materials, parts or equipment furnished in connection therewith. (4) Any damages arising out of heat, smoke, or fumes from a hostile fire. A hostile fire is a fire (5) Your product arising out of it or any part of it. which becomes uncontrollable or breaks out from where it was intended to be. Paragraphs (3) and (4) of this exclusion do not apply to liability assumed under a sidetrack agreement. (5)Any damages included in the products-completed operations hazard. This exclusion does not apply to property damage by fire to premises rented to the city. A separate e. Damages arising out of the ownership, maintenance, limit of coverage applies to this coverage as use or entrustment to others of any aircraft, auto or described in SECTION III - LIMITS OF watercraft owned or operated by or rented or loaned COVERAGE. to any covered party. Use includes operation and loading or unloading. h. Damages claimed for any loss, cost or expense incurred by the city or others for the loss of use, This exclusion does not apply to: withdrawal, recall, inspection, repair, replacement, adjustment, removal or disposal of: (1) A watercraft while ashore on premises the city owns or rents; (1) Your product; (2) A watercraft that is: (2) Your work; or (a) Less than 26 feet long; and (3) Impaired property; (b) Not being used to carry persons or property if such product, work, or property is withdrawn or for a charge; recalled from the market or from use by any person or organization because of a known or suspected (3) Parking an auto on, or on the ways next to, defect, deficiency, inadequacy or dangerous premises the city owns or rents, provided the auto is condition in it. not owned by or rented or loaned to the covered party. i. Bodily injury to any volunteer while acting on behalf of the city if the volunteer is an employee within the f. Damages due to war,whether or not declared, or any meaning of a workers' compensation law or similar act or condition incident to war. War includes civil law, or is covered under a voluntary endorsement to war, insurrection, rebellion or revolution. a workers'compensation insurance policy. g. Property damage to: j. Damages for bodily injury, property damage or personal injury arising out of the city's ownership, (1) Property the city owns, rents, or occupies; operation or maintenance of any airport. (2) Premises the city sells, gives away or abandons, k. Damages for bodily injury, property damage, or if the property damage arises out of any part of those personal injury arising out of the city's ownership, premises; operation or maintenance of any: (3) That particular part of real property on which the (1) Medical clinic; city or any contractors or subcontractors working directly or indirectly on the city's behalf are (2) Licensed hospital, boarding care home, LMCIT CMC(11-86)(Rev. 11-05) Page 3 of 20 outpatient surgical center, or supervised living (2) Any dike, levee or similar structure. facility; n. Damages arising out of the city's ownership, (3) Licensed psychiatric hospital; sponsorship or operation of: (4) Mental health clinic; (1) Motorized amusement devices, if the power supply motor is rated at greater than 5 horsepower; (5) Licensed nursing home or home care providers; or (2) Any mobile equipment, automobile, snowmobile or motorcycle in any racing, pulling, pushing, speed, (6) Registered housing with services establishments. or demolition contest or in any stunting activity; I. Damages arising out of the rendering of or failure to (3) Rodeos; or render professional services by any professional listed below: (4) Fireworks displays or exhibitions. (1) Attorney, unless the attorney is an employee of o. Damages arising from or relating to the detention or the city and not an independent contractor, and the confinement of any person(s)in any jail,holding cell professional services are within the scope of the or similar detention facility, which the city owns, attorney's duties as a city employee, including operates or maintains, if the date of the occurrence professional services performed for any of the city's causing such damages takes place after a continuous boards, commissions, authorities or agencies, or detention or confinement period of 30 days, or in joint powers entities in which the city participates. any detention facility which is intended and regularly used for confinement of persons for (2) Architect. periods in excess of 30 days. (3) Doctor of medicine. p. Damages arising out of the activities of any of the following city boards, commissions, or agencies: (4) Dentist. (1) Gas, electrical or steam utilities commission; (5) Nurse, except that this exclusion shall not apply to: (2) Port authority, housing and redevelopment authority, economic development authority, area or (a) Claims arising from the nurse's activities in municipal redevelopment authority, or similar the capacity of an emergency medical agency; technician, paramedic or first responder; or (3) Municipal power agency;or (b) Claims arising from the nurse's activities in administering vaccinations or immunizations to (4) Municipal gas agency, city employees or volunteers. unless such board, commission, authority, or agency (6) Pharmacist. is named in the Declarations, in which case the city will also be covered to the extent of coverage (7) Psychologist. provided under this covenant to the named board, commission, authority hor agency for dama g es m. Damages arising out of the failure or bursting of arising out of the activities of the respective named any: board,commission,authority or agency. (1) Class I or Class II dam as classified by the q. Damages arising out of the activities of a joint Commissioner of the Department of Natural powers entity in which the city is a member unless Resources pursuant to Minnesota Rules §6115.0340; the joint powers entity is named in the Declarations. or r. Damages arising out of condemnation, inverse LMCIT CMC(11-86)(Rev. 11-05) Page 4 of 20 condemnation, adverse possession, or dedication by the covered premises; adverse use. This exclusion does not apply to any claim for taking of property wherein the taking of e. To any other tenant if the bodily injury occurs on property is incident to an arrest or for the purpose of that part of the covered premises rented from the protecting persons or property in an emergency. city; s. Any criminal proceedings or proceedings under the f. To any person while engaged in maintenance and open meeting law against any covered party. repair of the covered premises or alteration, demolition or new construction at such premises; t. Damages with respect to any claim(s) made by LMCIT or the city against any other covered party. g. To any person practicing, instructing or participating in any physical training, sport, athletic activity or u. Any claim for damages asserted in any land use, contest whether on a formal or informal basis; development, franchise or enterprise operations litigation. h. To a member or guest of any club, tourist court or trailer park operated or owned by the city; or COVERAGE B.MEDICAL AND RELATED EXPENSE i. For any injury for which the injured party has received or is entitled to receive workers' 1. COVERAGE AGREEMENT compensation benefits. a. LMCIT will pay to or for each person who sustains The exclusions of the MUNICIPAL LIABILITY bodily injury caused by accident all reasonable COVERAGE PART (COVERAGE A) also apply to this medical and related expense incurred within one Coverage Part as respects bodily injury. year from the date of the accident as a result of such bodily injury, provided such bodily injury arises out 3. ADDITIONAL DEFINITIONS of a condition in the covered premises. When used herein: b. The amount LMCIT will pay for medical and related expense is limited as described in SECTION III - Covered premises means all premises owned or rented to LIMITS OF COVERAGE. the city with respect to which the city is afforded coverage for bodily injury liability under this covenant, 2. EXCLUSIONS and includes the ways immediately adjoining on land; however, covered premises does not include streets, LMCIT will not pay expenses for bodily injury: sidewalks, or boulevards that do not abut a city owned building or city owned parking lot. a. Arising out of the operation or use of any snowmobile or trailer designed for use therewith; Medical and related expense means expenses for necessary medical, surgical, x-ray and dental services, b. Included within the products-completed operations including prosthetic devices, necessary ambulance, hazard; hospital, professional nursing and funeral services, and replacement or repair of damaged eye glasses or c. Arising out of operations performed for the city by clothing. an independent contractor other than: 4. ADDITIONAL CONDITION MEDICAL (1) Maintenance and repair of the covered premises; REPORTS; PROOF AND PAYMENT OF or CLAIM (2) Structural alterations at such premises which do As soon as practicable,the injured person or someone on not involve changing the size of or moving buildings his behalf shall give to LMCIT written proof of claim, or other structures; under oath if required, and shall, after each request from LMCIT, execute authorization to enable LMCIT to obtain d. To any tenant or other person regularly residing on LMCIT CMC(11-86)(Rev. 11-05) Page 5 of 20 medical reports and copies of records. The injured sister of that employee as a consequence of (1) person shall submit to physical examination by above. physicians selected by LMCIT when and as often as LMCIT may reasonably require. LMCIT may pay the This exclusion applies: injured person or any person or organization rendering the services, and the payment shall reduce the amount (1) Whether the city may be liable as an employer or payable hereunder for such injury. Payment hereunder in any other capacity; and shall not constitute an admission of liability of any covered party or of LMCIT. (2) To any obligation to share damages with or repay someone else who must pay damages because COVERAGE C. AUTOMOBILE LIABILITY - of the injury. BODILY INJURY AND PROPERTY DAMAGE This exclusion does not apply to liability assumed 1. COVERAGE AGREEMENT by the covered party under a covered contract. LMCIT will pay on behalf of the covered party all sums c. Property damage to properly owned by the covered which the covered party shall become legally obligated party. to pay as damages because of bodily injury or property damage to which this coverage applies, caused by an d. Bodily injury due to war, whether or not declared, occurrence and arising out of the ownership, civil war, insurrection, rebellion or revolution or to maintenance or use, including loading or unloading, of any act or condition incident to any of the foregoing; any automobile. This coverage applies only to bodily e. Any loss, cost, or expense arising out of any injury or property damage which occurs during the direction, demand, or request by the government or coverage period and within the covered territory. any other entity that the city or any other entity test LMCIT will have the right and duty to defend any suit for, monitor, clean up, remove, contain, treat, seeking those damages. However: detoxify or neutralize pollutants; or a. The amount LMCIT will pay for damages is limited Damages arising out of the actual, alleged or as described in SECTION III - LIMITS OF threatened discharge, dispersal, seepage, migration, COVERAGE. release or escape of pollutants: b. LMCIT may, at its discretion, investigate any (1) At or from premises the city owns, rents, leases, occurrence and settle any claim or suit that may uses, or occupies, and premises the city no longer result. owns, rents, leases, uses, or occupies; 2. EXCLUSIONS (2) At or from any landfill, dump, or other site or location presently or formerly used by or for the city This coverage does not apply to: or others for the handling, storage, disposal, processing or treatment of pollutants; a. Any obligation for which the covered party or any carrier as his insurer may be held liable under any (3) Which are or were at any time transported, compensation, unemployment handled, stored, treated, disposed of, or processed as workers' compensation or disability benefits law, or under any waste by or for the city or any person or organization similar law. for whom the city may be legally responsible; or b. Any liability the city may have for bodily injury to: (4) At or from any site or location on which the city or any contractors or subcontractors working directly (1) An employee of the city arising out of and in the or indirectly on the city's behalf are or have been course of employment by the city; or performing operations; (2) Damages to the spouse, child, parent, brother or (a) If the pollutants are brought on or to the site or location in connection with such operations; LMCIT CMC(11-86)(Rev. 11-05) Page 6 of 20 or COVERAGE D.LAND USE,DEVELOPMENT, FRANCHISE OR ENTERPRISE OPERATIONS (b) If the operations are to test for, monitor, LITIGATION clean up, remove, contain, treat, detoxify or neutralize the pollutants. 1. COVERAGE AGREEMENT This exclusion does not apply to any of the Except as provided below, for any land use, following: development, franchise or enterprise operations (1) Any limited pollution liability claim. litigation which is first filed or served by or against the city or a city officer or employee during the annual (2) Any claim arising out of the discharge or coverage period of this agreement, LMCIT will pay the dispersal of mace, tear gas or similar agent, if such following on the city s behalf: discharge was for the purpose of protecting persons a. 100% of the first $25,000 of litigation costs which or property or incident to an arrest. are incurred after the litigation has been reported to (3) Any. lead or asbestos claim unless the actual, LMCIT; 85% of the next $225,000 of litigation costs alleged, or threatened discharge, dispersal, release, incurred after the litigation has been reported to escape, use, distribution, or handling of lead or LMCIT; and 60% of any litigation costs in excess of asbestos took place at or from any landfill, dump, or $250,000 which are incurred after the litigation has other site or location presently or formerly used by been reported to LMCIT; and or for the city or others for the handling, storage, b. 50% of any necessary legal fees for counsel to disposal, processing or treatment of pollutants. represent the city which the city incurs prior to (4) Any damages arising out of heat, smoke, or reporting the litigation to LMCIT. fumes from a hostile fire. A hostile fire is a fire This coverage shall not apply to any land use, which becomes uncontrollable or breaks out from development, franchise or enterprise operations where it was intended to be. litigation which is first reported to LMCIT more than f. Liability assumed under any contract or agreement, one year after the date on which the litigation was first but this exclusion does not apply to liability assumed filed or served by or against the city or a city officer or under a covered contract. employee. 3. ADDITIONAL DEFINITIONS The amount LMCIT will pay for litigation costs for land use, development, franchise or enterprise operations These additional definitions apply for purposes of litigation covered under this section is limited as COVERAGE C: described in SECTION III- LIMITS OF COVERAGE. The amount LMCIT pays for litigation costs for land Automobile business means the business or occupation use, development, franchise or enterprise operations of selling, repairing, servicing, storing or parking litigation is subject to the Municipal Liability Deductible automobiles. shown in the Municipal Liability Declarations or the Hired automobile means an automobile not owned by General Annual Aggregate Deductible, if any, shown in the city which is used under contract on behalf of, or the Common Coverage Declarations. loaned to, the city. 2. LITIGATION MANAGEMENT Owned automobile means an automobile owned by the city. For any land use, development, franchise or enterprise operations litigation, legal counsel will be selected by Trailer includes semi-trailer but does not include mobile mutual agreement of the city and LMCIT. equipment. If LMCIT and the city are not able to agree on selection of counsel, LMCIT will provide a list of five attorneys LMCIT CMC(11-86)(Rev. 11-05) Page 7 of 20 experienced in land use, development, franchise or 4. SPECIAL PROVISIONS - INTER-CITY enterprise operations litigation matters; and the city will LITIGATION select legal counsel from that list. The following special provisions shall apply only to A land use, development, franchise or enterprise coverage for any land use, development, franchise or operations litigation suit may not be settled without the enterprise operations litigation in which: 1) An approval of both LMCIT and the city. opposing litigant is also a member of the LMCIT property/casualty program; and 2)The litigation is also a 3. ADDITIONAL DEFINITIONS covered claim for the opposing litigant under COVERAGE D of the opposing litigant's LMCIT This additional definition applies for the purpose of municipal liability coverage: COVERAGE D. a. Legal counsel will be selected as provided above, Litigation costs means: but LMCIT will not otherwise participate in the management of the litigation. a. Legal fees for counsel appointed pursuant to 2. LITIGATION MANAGEMENT, above; b. Any settlement of the litigation involving a payment of damages must be approved by LMCIT. b. Necessary legal fees for counsel to represent the city which the city incurs prior to reporting the litigation c. The percentage LMCIT will pay of any litigation to LMCIT; costs will be one-half of the percentages specified in COVERAGE D. 1. COVERAGE AGREEMENT. c. Necessary litigation expenses other than legal fees; d. LMCITs total liability to the city for litigation costs d. Damages which the city is required to pay; and for the litigation shall not exceed $500,000. This does not increase the annual aggregate limit as e. Supplementary payments made or incurred as described in SECTION III - LIMITS OF defined in SECTION V - SUPPLEMENTARY COVERAGE, 11. PAYMENTS. SECTION II - WHO IS COVERED 1. City means the city or other governmental body or g. Joint powers entity. entity first named in the Declarations. Unless specifically named in the Declarations, city shall not 2. For purposes of COVERAGE A and COVERAGE include any of the following: D, covered party means: a. Gas, electrical or steam utilities commission; a. The city, and any other entity named in the Declarations; b. Port authority, housing and redevelopment authority, economic development authority, area or b. For actions within his duties as such, any present municipal redevelopment authority or similar or former: agency; (1) Member of the city council; c. Municipal power agency; (2) Member of a city board, commission, or d. Municipal gas agency; committee which is not excluded by the definition of city; e. Welfare or public relief agency; (3) Elected or appointed official of the city; f. School board; or (4) Employee of the city; LMCIT CMC(11-86)(Rev. 11-05) Page 8 of20 (5) Volunteer person or organization while a. The city, and any other entity named in the acting on behalf of the city and subject to the Declarations with respect to any automobile; city's direction and control; b. Any present or former elected or appointed (6) Other authorized person or agent of the city official, employee or volunteer of the city with while acting on behalf of the city, but excluding respect to any automobile while such automobile is independent contractors; or was being used in the business of the city; (7) City relief association and its members, c. Any person or organization from whom a officers, and employees;or covered party hires or borrows a trailer which is connected to an owned automobile; (8) Person while acting in the administrative capacity of medical director or medical advisor d. Any person while using an owned automobile or to the city ambulance service. hired automobile only while such automobile is or was used with the city's permission. c. With respect to a joint powers entity named in the Declarations: e. Any other person or organization but only with respect to his or its liability because of acts or (I) The joint powers entity; omissions of a covered party under a., b., c. or d. above. (2) While acting on behalf of the joint powers entity, or with respect to liability arising out of For purposes of COVERAGE C, none of the the activities of the joint powers entity, any following is a covered party: present or former: a. Any person or organization from whom a (a) Governmental member of the joint covered party hires or borrows an automobile that is powers entity; not a trailer. (b) Elected or appointed official of the b. Any person while employed in or otherwise governmental member; engaged in duties in connection with an automobile business, other than an automobile business operated (c) Employee of the governmental member; by the city. or c. Any person while loading or unloading an (d) Other authorized person or agent of the automobile, other than: governmental member, but excluding independent contractors. (1) A city officer,employee, or volunteer; or 3. For purposes of COVERAGE C, covered party (2) A lessee or borrower of an owned means: automobile or their employees. SECTION III - LIMITS OF COVERAGE 1. The Limits of Coverage shown in the Declarations c. Persons or organizations making claims or and the rules below fix the most LMCIT will pay as bringing suits. damages under each coverage part regardless of the number of: 2. LMCITs maximum limit of liability for COVERAGES A and C combined shall be the per a. Covered parties; occurrence or sudden occurrence limit shown in the Declarations whether the claim or claims fall under b. Claims made or suits brought; or COVERAGE A, COVERAGE C, or both. LMCIT CMC(11-86)(Rev. 11-05) Page 9 of 20 3. The Limits of Coverage shown in the Declarations, supplementary payments as defined in SECTION V except as otherwise described, apply only to the -SUPPLEMENTARY PAYMENTS. damages under each Coverage Part in excess of the Municipal Liability Deductible shown in the 9. The Failure to Supply Claim Annual Aggregate Municipal Liability Declarations or the General Limit is the most LMCIT will pay for damages for Annual Aggregate Deductible, if any, shown in the failure to supply claims during the annual coverage Common Coverage Declarations, and the Limits of period. Coverage will be reduced by the Deductible amount. 10. The EMF Claim Annual Aggregate Limit is the most 4. The Products-Completed Operations Annual LMCIT will pay for damages for EMF claims during Aggregate Limit is the most LMCIT will pay under the annual coverage period. COVERAGE A for damages included in the products-completed operations hazard. 11. LMCIT's total liability for litigation costs, as defined in SECTION I - COVERAGE D, LAND USE, 5. The Fire Damage Limit is the most LMCIT will pay DEVELOPMENT, FRANCHISE OR ENTERPRISE under COVERAGE A for damages because of OPERATIONS LITIGATION, for all land use, property damage to premises rented to the city development, franchise or enterprise operations arising out of any one fire. litigation which is first filed or served against the city during the annual coverage period of this 6. The Medical and Related Expense Limit is the most agreement shall not exceed$1,000,000, regardless of LMCIT will pay under COVERAGE B for all the number of suits, defendants, or claimants. medical expenses because of bodily injury sustained by any one person, and the occurrence limit is the 12. The Mold Claim Annual Aggregate Limit is the most LMCIT will pay under COVERAGE B for all most LMCIT will pay for damages for mold claims medical expenses because of bodily injury to two or during the annual coverage period. more persons resulting from one occurrence. 13. LMCIT shall not be obligated under this covenant to 7. The Limited Pollution Liability Claim Annual pay any claim or judgment or to defend any suit after Aggregate Limit is the most LMCIT will pay for the applicable limit of LMCITs coverage has been limited pollution liability claims during the annual exhausted or by tender to any excess carrier or coverage period. The Limited Pollution Liability excess coverage including excess coverage provided Claim Annual Aggregate Limit applies to the sum of by LMCIT. damages and loss adjustment expense, including defense costs and supplementary payments as 14. For any Annual Aggregate Limit shown in the defined in SECTION V - SUPPLEMENTARY Declarations, the limit shall apply separately to each PAYMENTS. consecutive annual period and to any remaining period of less than 12 months, starting with the 8. The Lead or Asbestos Claim Annual Aggregate beginning of the coverage period shown in the Limit is the most LMCIT will pay for all lead claims Declarations, unless the coverage period is extended or asbestos claims during the annual coverage after issuance for an additional period of less than 12 period. The Lead or Asbestos Claim Annual months. In that case, the additional period will be Aggregate Limit applies to the sum of damages, loss deemed part of the last preceding period for adjustment expense, defense costs, and purposes of determining the limits of coverage. SECTION IV - DEFINITIONS I. Advertisement means a notice that is broadcast or propellers, operating and navigating instruments and published to the general public or specific market radio equipment attached to or usually attached to or segments about the city's goods, products or services carried on the aircraft, including component parts for the purpose of attracting customers or supporters. detached and not replaced by other similar parts and tools therein which are standard for the make and 2. Aircraft means any aircraft, including engines, type of aircraft. LMCIT CMC(I1-86)(Rev. 11-05) Page 10 of20 3. Asbestos claim means damages arising directly or away for a short time on the city's business; indirectly out of, resulting from, caused by or and contributed to by: (2) The covered party's responsibility to pay a. The use of, sale of, installation of, removal of, damages is determined in a suit on the merits, in abatement of, distribution of, containment of, or the territory described in a. above or in a exposure to asbestos, asbestos products, asbestos- settlement LMCIT agrees to. containing material, asbestos fibers, or asbestos dust; 7. Covered contract means an indemnification of a b. The actual or threatened abatement, mitigation, municipality as required by ordinance, or that part of removal or disposal of asbestos, asbestos products, any contract or agreement pertaining to the city's asbestos-containing material, asbestos fibers, or business under which the city assumes the tort asbestos dust; liability of another to pay damages to a third person or organization, if the contract or agreement is made c. Any supervision, instructions, recommendations, prior to the date of the occurrence giving rise to the warnings or advice given or which should have been damages. Tort liability means a liability that would given in connection with subparagraphs a. and b. be imposed by Iaw in the absence of any contract or above; or agreement. d. Any obligation of the covered party to Covered contract does not include that part of any indemnify any party in connection with contract or agreement: subparagraphs a. b. or c. above. a. That indemnifies an architect, engineer or 4. Automobile (auto) means a land motor vehicle, surveyor for injury or damages arising out of: trailer or semi-trailer designed for travel on public roads, including any attached machinery or (1) Preparing, approving or failing to prepare or equipment. But automobile does not include mobile approve maps, drawings, opinions, reports, equipment. surveys, change orders, designs or specifications; or 5. Bodily injury means bodily injury, sickness or disease sustained by a person, including death (2) Giving directions or instructions,or failing resulting from any of these at any time. to give the same, if that is the primary cause of the injury or damages; 6. Coverage territory means: b. Under which the city's architect, engineer or a. The United States of America (including its surveyor assumes liability for injury or damages territories and possessions), Puerto Rico and arising out of the city's rendering or failing to render Canada; professional services, including those listed in a. above, and supervisory, inspection or engineering b. International waters or airspace, provided the services; or injury or damages do not occur in the course of travel or transportation to or from any place not c. That indemnifies any person or organization for included in a. above; or damages by fire to premises rented or loaned to the city. c. All parts of the world if: 8. Damages means money damages, and includes (1) The injury or damage arises out of: awards for attorneys' fees with respect to suits alleging violations under federal civil rights laws, (a) Goods or products made or sold by the state human rights laws or the federal or state city in the territory described in a. above; or constitution. (b) The activities of a person whose home is With respect to any land use, development, in the territory described in a. above, but is franchise or enterprise operations litigation, LMCIT CMC(11-86)(Rev. 11-05) Page 11 of20 • damages also includes amounts the city is obligated 9. EMF claim means any claim for damages arising out to pay for loss of use of property during the time of the actual or alleged exposure to electromagnetic prior to a final determination by the court that fields, electromagnetic radiation or stray voltage. enforcement of a land use, zoning, subdivision, or similar ordinance or regulation constitutes a taking 10. Failure to supply claim means any claim for of private property. damages arising out of the complete or partial failure to supply water, electricity, gas or steam. Damages does not include any of the following: 11. Fungus(es) includes, but is not limited to, any form a. Any obligation of a covered party under a or type of mold, mushroom or mildew. workers' compensation, disability benefits, or unemployment compensation law or any similar law. 12. Impaired property means tangible property, other than your product or your work, that cannot be used b. Exemplary damages or punitive damages except or is less useful because: punitive damages claimed or levied against an officer, employee or volunteer of the city, provided a. It incorporates your product or your work that is that the officer, employee or volunteer: known or thought to be defective, deficient, inadequate or dangerous; or (1) Was acting in the performance of the duties of the position; and b. The city has failed to fulfill the terms of a • contract or agreement; (2) Was not guilty of malfeasance in office, willful neglect of duty, or bad faith. if such property can be restored to use by: c. Fines or penalties imposed by law. (1) The repair, replacement, adjustment or removal of your product or your work; or d. Injunctive or equitable relief, or quasi- judicial or administrative orders. (2) The city's fulfilling the terms of the contract or agreement. e. Repayment of any tax, assessment, fee, or other charge that was wrongfully obtained, or any interest 13. Joint powers entity means an operating entity on, or any other amount claimed for loss of use of, created by two or more governmental units entering such tax, assessment,fee, or other charge. into an agreement as provided by statute for the joint exercise of governmental powers. An f. Amounts paid or payable for the purchase or intergovernmental agreement will be deemed to permanent acquisition of property or property rights, create a joint powers entity if the agreement or for the right to permanently enforce an ordinance, establishes a board with the effective power to do regulation, or restriction on the use of property. any of the following, regardless of whether the specific consent of the constituent governmental g. Amounts due under the terms of any contractual units may also be required: obligation, except for liability: a. To receive and expend funds; (1) Assumed in a covered contract; or b. To enter contracts; (2) Assumed in an employment contract between the city and its employees. c. To hire employees; h. Any wages and employment benefits for work d. To purchase or otherwise acquire and hold real that has been performed by the employee making the or personal property; or claim, or any claimed increases in such wages and employment benefits for work that is hereafter e. To sue or be sued. performed by the employee making the claim. 14. Land use, development, franchise or enterprise LMCIT CMC(11-86)(Rev. 11-05) Page 12 of20 • operations litigation means: constitutionality of the ordinance or regulation or to the legal authority of the city to enact it. a. Any litigation relating to the application or interpretation of a city's land use, zoning, 15. Lead claim means damages arising directly or subdivision, or similar ordinance or regulation; or indirectly out of, resulting from, caused by or contributed to by: b. Any litigation relating to the city's involvement in the financing or approval of any development or a. The toxic or pathological properties of lead, lead redevelopment project. compounds or lead contained in any materials; c. Any litigation relating to the granting, refusal, b. The actual or threatened abatement, mitigation, interpretation, or enforcement of any franchise, removal or disposal of lead, lead compounds or ordinance, permit, license, or other mechanism materials containing lead; through which the city authorizes or regulates parties other than the city, the provision of c. Any supervision, instructions, recommendations, telecommunications, electricity, gas, heat, sewage warnings or advice given or which should have been treatment or refuse collection within the city. given in connection with subparagraphs a. or b. above; or d. Any litigation relating to the city's authority to engage in enterprise operations. "Enterprise d. Any obligation of the covered party to operations" means any arrangement under which the indemnify any party in connection with city offers goods or services for a fee, including but subparagraphs a.,b.or c. above. not limited to sales of utilities, telecommunications services, refuse collection, and liquor. 16. Limited pollution liability claim means any claim for damages: Any litigation meeting the criteria listed above will be considered to be land use, development,franchise a. Arising out of pesticide or herbicide application or enterprise operations litigation in its entirety, operations; or regardless of whether the litigation may assert other claims as well. b. Which resulted from a sudden occurrence which took place on or after the retroactive date shown in But land use, development, franchise or enterprise the Declarations and prior to the expiration date of operations litigation does not include litigation: this covenant, and which: a. That seeks only compensation or other relief for (1) Was caused by an actual, alleged, or an actual or alleged physical occupation, invasion, or threatened discharge, dispersal, release, or use of property by the city; escape of pollutants; or b. That seeks only a reduction or invalidation of a (2) Arises from the accidental rupture, backup, special assessment; or overflow of the city's sanitary sewer , storm sewer, or water supply systems. c. That seeks only compensation for damages based on the city's actual or alleged negligent 17. LMCIT means the League of Minnesota Cities inspection or enforcement of the state building, Insurance Trust. plumbing, electrical, fire, or similar codes; 18. Loading or unloading means the handling of d. That seeks only amounts due under contract, property: including any city bonds or other obligation; or a. After it is moved from the place where it is e. That was initiated by the city to enforce a accepted for movement into or onto an aircraft, building, zoning, subdivision, or similar ordinance watercraft or auto; or regulation related to the use of property, unless that litigation also involves a challenge to the b. While it is in or on an aircraft, watercraft or LMCIT CMC(11-86)(Rev. I1-05) Page 13 of20 • auto; or arising out of any fungus(es)or spore(s); c. While it is being moved from an aircraft, c. Any material, product, building component, or watercraft or auto to the place where it is finally building structure that contains, harbors, nurtures or delivered; but loading or unloading does not include acts as a medium for anyfungus(es) or spore(s); the movement of property by means of a mechanical device, other than a hand truck, that is not attached d. Any intrusion, leakage, or accumulation of water to the aircraft, watercraft or auto. or any other liquid that contains, harbors,nurtures or acts as a medium for fungus(es) or spore(s); 19. Mobile equipment means any of the following types of land vehicles, including any attached machinery e. The actual or threatened abatement, mitigation, or equipment: removal or disposal of fungus(es) or spore(s) or any material, product, building component, or building a. Bulldozers, farm machinery, forklifts and other structure that contains, harbors, nurtures or acts as a vehicles designed for use principally off public medium for any fungus(es) or spore(s); roads; f. Any supervision, instructions, recommendations, b. Vehicles that travel on crawler treads; warnings or advice given or which should have been given in connection with subparagraphs a., b., c., d., c. Vehicles, whether self-propelled or not, or e. above; or maintained primarily to provide mobility to permanently mounted: g. Any obligation of the covered party to indemnify any party in connection with (1) Power cranes, shovels, loaders, diggers or subparagraphs a., b., c., d.,e., or f. above. drills; or 21. Occurrence means: (2) Road construction or resurfacing equipment such as graders, scrapers or rollers; a. With respect to COVERAGE A, a wrongful act or a series of related wrongful acts. d. Vehicles not described in a., b., or c. above that are not self-propelled and are maintained primarily b. With respect to COVERAGE C, an accident, to provide mobility to permanently attached including continuous or repeated exposure to equipment of the following types: substantially the same general harmful condition. (1) Air compressors, pumps and generators, Provided that for purposes of SECTION III - including spraying, welding, building cleaning, LIMITS OF COVERAGE, occurrence shall be geophysical exploration, lighting and given the same meaning as given in the applicable well-servicing equipment; or statute establishing monetary limits on the city's tort liability. (2) Cherry pickers and similar devices used to raise or lower workers; 22. Personal injury means injury other than bodily injury, arising out of one or more of the following e. Vehicles not described in a., b., or c. above offenses: maintained primarily for purposes other than the transportation of persons or cargo. a. False arrest, detention, or imprisonment, or malicious prosecution. 20. Mold claim means any claim for damages arising directly or indirectly out of, resulting from, caused b. The publication or utterance of a libel or slander by, or contributed to by: or other defamatory or disparaging material, or a publication or utterance in violation of an a. Any fungus(es)or spore(s); individual's right of privacy. b. Any solid, liquid, vapor, or gas produced by or c. Wrongful entry or eviction, or other invasion of LMCIT CMC(I l-86)(Rev. 11-05) Page 14 of 20 the right of private occupancy. c. Damages which arise out of the actual, alleged, or threatened discharge, dispersal, seepage, d. Assault or battery committed for the purpose of migration, release or escape of pollutants at or from protecting persons or property or incident to an any landfill, dump, or other site or location presently arrest. or formerly used by or for the city or others for the handling, storage, disposal, processing, or treatment e. The use of another's advertising idea in your of pollutants; advertisement. d. Damages which arise out of the actual, alleged, f. Infringing upon another's copyright, trade dress or threatened discharge, dispersal, seepage, or slogan in your advertisement. migration, release or escape of pollutants which are or were at any time transported, handled, stored, 23. Pollutants means any solid, liquid, gaseous or treated, disposed of, or processed as waste by or for thermal irritant or contaminant, including smoke, the city or any person or organization for whom the vapor, soot, fumes, acids, alkalis, chemicals and city may be legally responsible; waste. Waste includes materials to be recycled, reconditioned or reclaimed. e. Damages which arise out of the actual, alleged, or threatened discharge, dispersal, seepage, 24. Products-completed operations hazard includes all migration, release or escape of pollutants at or from damages: any site or location on which the city or any contractor or subcontractors working directly or a. Which arise out of your product; or indirectly on the city's behalf are or have been performing operations if the operations are to test b. Which arise out of your work and occur away for, monitor, clean up, remove, treat, detoxify or from the premises the city owns or rents. neutralize the pollutants; or Your work will be deemed completed at the earliest f. Which arise out of pesticide or herbicide of the following times: application operations. a. When all of the work called for in the city's 25. Property damage means: contract has been completed. a. Physical injury to tangible property, including b. When all of the work to be done at the site has all resulting loss of use of that property; or been completed if the city's contract calls for work at more than one site. b. Loss of use of tangible property that is not physically injured. c. When that part of the work done at a job site had been put to its intended use by any person or 26. Spore(s) include any reproductive body produced by organization other than another contractor or or arising out of any fungus(es). subcontractor working on the same project. 27. Sudden occurrence means an accident or a related Work that may need service, maintenance, series of accidents and the release of pollutants correction, repair or replacement, but which is resulting therefrom, all of which begin and end otherwise complete,will be treated as completed. within 72 hours; except that each incident in which the city's sanitary sewer backs up into a building is Except that the products-completed operations deemed to be a separate sudden occurrence. In the hazard does not include any of the following: case of a related series of accidents, the sudden occurrence will be deemed to have taken place when a. Damages which arise from products that are still the first accident in the related series of such in the city's physical possession; accidents took place. b. Damages which arise from work that has not 28. Suit means a civil proceeding in which damages to been completed or abandoned; which this coverage applies are alleged. Suit LMC1T CMC(11-86)(Rev. 11-05) Page 15 of20 includes an arbitration proceeding alleging such of by: damages to which the city must submit or submit with LMCIT's consent. Suit does not mean any (1) The city; criminal proceeding against any covered party or any open meeting law proceeding, unless damages (2) Others trading under the city's name; or are also claimed in that proceeding. (3) A person or organization whose business or The following are also deemed a suit for damages: assets the city has acquired; and a. A charge of employment discrimination filed b. Containers (other than vehicles), materials, parts with the Federal Equal Employment Opportunity or equipment furnished in connection with such Commission, the Commissioner of the Minnesota goods or products. Department of Human Rights, or a local human rights commission as defined in Minnesota Statute Your product includes warranties or representations §363.01, subd 23; or made at any time with respect to the fitness, quality, durability or performance of any of the items b. A complaint filed with the Federal Health and included in a. and b. above. Human Services Office for Civil Rights alleging any breach of the responsibilities, obligations or duties Your product does not include vending machines or imposed by the Health Insurance Portability and other property rented to or located for the use of Accountability Act of 1996 (HIPPA) and any rules others but not sold. or regulations promulgated thereunder. 31. Your work means: 29. Wrongful act means any actual or alleged error, statement, act, omission, offense, neglect, accident, a. Work or operations performed by the city or on or violation. Violation includes violation of any the city's behalf; and rights, immunities, or privileges secured by the Constitution and Laws of the United States of b. Materials, parts or equipment furnished in America. connection with such work or operations. 30. Your product means: Your work includes warranties or representations made at any time with respect to the fitness, quality, a. Any goods or products, other than real property, durability, or performance of any of the items manufactured, sold, handled, distributed or disposed included in a. or b. above. SECTION V - SUPPLEMENTARY PAYMENTS With respect to any claim or suit LMCIT defends under coverage. LMCIT does not have to furnish these COVERAGES A, C, AND D, LMCIT will pay bonds. supplementary payments. 4. All reasonable expenses incurred by the covered Supplementary payments means: party at LMCITs request,to assist it in the: 1. All expenses LMCIT incurs. a. Investigation or defense of the claim or suit, or 2. Up to $250 for cost of bail bonds required because b. Litigation of any land use, development,. of accidents or traffic law violations arising out of franchise or enterprise operations litigation which is the use of any vehicle to which the coverage applies. filed or served. LMCIT does not have to furnish these bonds. Reasonable expenses include the actual loss of 3. The cost of bonds to release attachments, but only earnings up to $100 a day because of time off from for bond amount within the applicable limit of work. LMCIT CMC(11-86)(Rev.11-05) Page 16 of20 5. All costs taxed against the covered party in the suit. 8. Up to $200,000 for all awards for attorneys' fees pursuant to a statute, but this supplementary 6. Prejudgment interest awarded against the covered payment does not include: party on that part of the judgment LMCIT pays. If LMCIT makes an offer to pay the applicable limit of a. Awards for attorney fees with respect to suits coverage, LMCIT will not pay any prejudgment alleging violations under federal civil rights laws, interest based on that period of time after the offer. state human rights laws or the federal or state constitution; or 7. All interest on the full amount of any judgment that accrues after entry of the judgment and before b. Attorneys' fees awarded for an act, error, LMCIT has paid, offered to pay, or deposited in omission or violation which LMCIT does not have a court the part of the judgment that is within the duty to indemnify pursuant to SECTION VI - applicable limits of coverage. CONDITIONS, 1. SECTION VI - CONDITIONS I. LIMITATIONS ON LMCIT S DUTY TO limits of liability required by such law. INDEMNIFY 3. COVERED PARTY'S DUTIES IN THE LMCITs duty to pay on behalf of or to indemnify a EVENT OF OCCURRENCE,CLAIM OR SUIT covered party other than the city shall not apply to any act, error, omission, or violation: a. In the event of a claim or suit, notice containing particulars sufficient to identify the covered party a. Which constitutes malfeasance in office; or and also reasonably obtainable information with respect to the time, place and circumstances thereof, b. Which constitutes willful neglect of duty; or and the names and addresses of the injured and of available witnesses, shall be given by or for the c. Which constitutes bad faith; or covered party to LMCIT or any of its authorized agents as soon as practicable. d. For which the city is not authorized to indemnify any person by statute; or The city shall promptly take, at its own expense, all reasonable steps to prevent damages from arising e. Which constitutes dishonesty on the part of a out of the same or similar conditions;provided that: covered party; or (1) A failure to take such preventative measures f. Which constitutes the willful violation of a statute or shall not constitute a breach of this condition unless ordinance by any official, employee, or agent of the LMCIT has requested the city in writing to undertake city. such preventative measures; and The terms "malfeasance", "willful neglect of duty", and (2) Such expense shall not be recoverable under this "bad faith" shall be given the same meaning in this covenant. covenant as given in the applicable statute with respect to the city's duty to defend or indemnify its officers, Notice of damages or injury is not notice of a claim. employees or agents. b. If claim is made or suit is brought against the 2. FINANCIAL RESPONSIBILITY LAW covered party, the covered party shall immediately forward to LMCIT every demand, notice, summons When this covenant is certified as proof of financial or other process received by him or his responsibility for the future under the provisions of any representative. motor vehicle financial responsibility law, such coverage as is afforded by this covenant shall comply with the c. The covered party shall cooperate with LMCIT and, provisions of such law to the extent of the coverage and upon LMCITs request, assist in making settlements, LMCIT CMC(11-86)(Rev.11-05) Page 17 of 20 assist in the conduct of suits and assist in enforcing The additional premium for the supplemental any right of contribution or indemnity against any extended reporting period will be a percentage of the person or organization who may be liable to the annual expiring premium for COVERAGE PART A. covered party because of damages for which coverage is afforded under this covenant; and the Number of Years Since covered party shall attend hearings and trials and Retroactive Date Shown assist in securing and getting evidence and obtaining on Declarations Page Additional Cost the attendance of witnesses. The covered party shall not, except at his own cost, voluntarily make any 1 55.0% payment, assume any obligation or incur any 2 57.0% expense other than for first aid to others at the time 3 60.3% of accident. 4 65.9% 5 70.8% d. With respect to any incident or occurrence for which 5+ 70.8% no claim for damages has been made but that might result in a covered claim for damages under this d. An extended reporting period does not extend the covenant, LMCIT shall have the right, at its coverage period or change the scope of coverage discretion and at its expense, to associate with the provided. It applies only if the date of the covered party in the investigation, handling and occurrence giving rise to the claim for damages is defense of such matter, in which event LMCIT and after the retroactive date and before the end of the the covered party shall mutually cooperate. coverage period. 4. EXTENDED REPORTING PERIOD Claims for damages which are first received and recorded during the basic extended reporting period a. LMCIT will provide one or more extended reporting (or during the supplemental extended reporting periods, as described below, if: period, if it is in effect) will be deemed to have been made on the last day of the coverage period. (I) COVERAGE A is canceled or not renewed; or Once in effect, extended reporting periods may not (2) LMCIT renews or replaces COVERAGE A with be canceled. coverage that: e. Extended reporting periods do not reinstate or (a) Has a retroactive date later than the date increase the limits of coverage applicable to any shown on the Declarations page; or claim to which this coverage part applies. (b) Does not apply on a claims made basis. f. Neither the basic extended reporting period nor the supplemental extended reporting period is applicable b. A basic extended reporting period of 60 days from to, and no extended reporting period is provided for, the end of the coverage period is automatically the following: provided without additional charge. (1) Any limited pollution liability claim; c. A supplemental extended reporting period of unlimited duration is available, but only by an (2) Any land use, development, franchise or endorsement and for an extra charge. The enterprise operations litigation; or supplemental extended reporting period starts 60 days after the end of the coverage period. (3) Any lead claim or asbestos claim. The city must give LMCIT a written request for the 5. ACTION AGAINST LMCIT endorsement within 60 days after the end of the coverage period. The supplemental extended No action shall lie against LMCIT unless, as a condition reporting period will not go into effect unless the precedent thereto, there shall have been full compliance city pays the additional premium promptly when with all of the terms of this covenant, nor until the due. amount of the covered party's obligation to pay shall LMCIT CMC 0 1-86)(Rev. 11-05) Page 18 of 20 have been fully determined either by judgment against not be settled without the city's consent, the city the covered party after actual trial or by written must designate an individual authorized to give or agreement of the covered party, the claimant and refuse consent on the city's behalf. The city's notice LMCIT. must include the name, address, and telephone number of the individual authorized to give or refuse Any person or organization or the legal representative consent on the city's behalf. thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under c. If the city has notified LMCIT that the claim or suit this covenant to the extent of the coverage afforded by may not be settled without the city's consent,LMCIT this covenant. No person or organization shall have any will notify the city of the terms and conditions of right under this covenant to join LMCIT as a party to any any proposed settlement. If the city does not consent action against the covered party to determine the to the proposed settlement, the city must notify covered party's liability, nor shall LMCIT be impleaded LMCIT within 14 days of the date the city receives by the covered party or his legal representative. notice of the proposed settlement, unless the city and LMCIT have mutually agreed to a longer or shorter Bankruptcy or insolvency of the covered party or of the period. If within that time the city does not notify covered party's estate shall not relieve LMCIT of any of LMCIT that the city does not consent to the its obligations hereunder. settlement, the city will be deemed to have consented to the settlement. 6. WAIVER OF STATUTORY LIABILITY LIMITATIONS d. If the city refuses to consent to a settlement recommended by LMCIT, LMCIT will not be liable a. It is the express intent of the city and of LMCIT that for any excess amount. Excess amount means the the procurement of this covenant shall not waive any sum of all damages and legal defense costs for the monetary limits of liability provided by Minnesota claim or suit minus the sum of: Statute §466.04 by any comparable or successor statute, or by common law, which may be applicable (1) The amount of the settlement proposed by to any covered party; and that any previous waiver LMCIT; and of liability limits is revoked to the extent that it may apply to claims covered under this covenant. (2) Any costs of defense incurred before the date of the city's refusal. Any excess amount shall not be b. It is the express intent of the city and of LMCIT that included in the calculation of damages for purposes the procurement of this covenant shall not waive any of any applicable Municipal Liability Deductible or other immunities, limitations, or defenses imposed General Annual Aggregate Deductible. by or available under any statute or common law which is applicable to any covered party. e. If the city refuses to consent to a settlement recommended by LMCIT, LMCIT may, at its sole 7. CONSENT TO SETTLE discretion,exercise either of the following options: The city may prohibit LMCIT from settling any claim or (1) LMCIT may pay to the city an amount equal to suit against a covered party without the city's consent, as the amount of the recommended settlement,minus provided below: any applicable deductible. If LMCIT makes such a. At any time before LMCIT has offered or made a payment,LMCIT has no further duty to defend or to settlement of a claim or suit, the city may notify indemnify the city or any other covered party for this LMCIT that LMCIT may not settle the claim or suit claim or suit, and the city assumes any duty which without the city's consent. The city must give a LMCIT would otherwise have had to defend and to separate notice for each claim or suit which the city indemnify any other covered party. intends to prohibit LMCIT from settling without the city's consent. (2) LMCIT may continue to defend the claim or suit. If LMCIT elects to continue to defend the claim or b. If the city notifies LMCIT that the claim or suit may suit, the city must reimburse LMCIT for any excess amount. LMCIT CMC(11-86)(Rev. 11-05) Page 19 of 20 o f. If the city refuses to consent to a settlement party's rights to recover those costs from that insurer. recommended by LMCIT, the city must defend and The covered party shall cooperate with and assist indemnify LMCIT for any claim or suit arising out of LMCIT as requested in enforcing any rights against that the failure to settle the original claim or suit. insurer. 8. RETROACTIVE JOINT POWERS 11. SEPARATION OF COVERED PARTIES COVERAGE As respects the particulars and statements contained in LMCIT will, upon the city's request, issue retroactive the application for this coverage and the exclusion set comprehensive municipal coverage to any joint powers forth herein, this coverage shall be construed as a entity in which the city is a member and which is not separate agreement with each covered party. Nothing in named as a covered party under any other LMCIT this paragraph shall be construed to increase LMCITs coverage. maximum liability set forth in the Declarations and as described in SECTION III - LIMITS OF COVERAGE. Pursuant to this section, LMCIT will issue its standard Comprehensive Municipal Coverage document to the 12. DEDUCTIBLES joint powers entity, but coverage shall be subject to an annual aggregate limit of $200,000. This limit shall a. For purposes of deductibles under this coverage, the apply to the sum of damages and loss adjustment deductible applies to the sum of the damages, loss expenses, including defense costs, for all claims to adjustment expense, defense costs and which the coverage applies. supplementary payments as defined in SECTION V -SUPPLEMENTARY PAYMENTS. Coverage issued pursuant to this section will be issued with the same inception date and the same retroactive b. The terms of the covenant, including those with date as this covenant. respect to: The premium must be paid to LMCIT before the (1)The LMCITs rights and duties with respect to the coverage goes into effect. The premium for coverage defense of suits; and issued pursuant to this section shall be equal to the greater of$5,000 or the premium the joint powers entity (2) The covered party's duties, in the event of an would otherwise pay for coverage at LMCITs current occurrence, apply irrespective of the application of rates. the deductible amount. 9. NO DUPLICATION OF COVERAGE c. LMCIT may pay any part or all of the deductible amount to effect settlement of any claim or suit, and This covenant shall not apply to any claim or claims upon notification of the action taken, the city shall arising out of an occurrence, if any claim or claims promptly reimburse LMCIT for such part of the arising out of that occurrence were covered under any deductible amount as has been paid by LMCIT. prior covenant issued by LMCIT to the city. 10. OTHER COVERAGE If, pursuant to the COMMON CONDITIONS, 11.a., a covered party has primary liability coverage as an additional insured or additional named insured on another party's coverage, and that insurer fails to defend or indemnify the covered party, LMCIT will do so under this covenant. In any case in which LMCIT incurs costs for a claim which is also covered under any other liability coverage or insurance, LMCIT shall be entitled to the covered LMCIT CMC(1 1-86)(Rev. 11-05) Page 20 of 20 MUNICIPAL LIABILITY LMC League of Minnesota Cities Cities promoting excellence CITY OAK PARK HEIGHTS, CITY OF COVENANT NUMBER CMC 27453 J HAZARD PREMIUM BASIS ADVANCED PREMIUM Premises Operations Code Basis OPERATING EXPENDITURES A 2,550, 709 PREMIUM INCLUDED FOR ALL HAZARDS WATERWORKS D 157,070 WHERE A PREMIUM BASIS IS SHOWN STREETS B 20 Independent Contractors G 1 ,954,990 Products/Completed Operations WATERWORKS H 224,000,000 LMCIT MGL-1 (01-95) Page 1 of 2 MUNICIPAL LIABILITY, (Cont'd.) Municipal Liability Hazard Codes When used as a premium basis: Code (A) "Operating expenditures"means all expenditures used to operate the city, excluding capital purchases, where the individual project or item exceeds five percent(5%)of the total operating expenditures of the city; expenditures for the independent contractors that provide the city with certificates of insurance indicating adequate limits;welfare benefits and expenditures for those exposures which we are separately rating, per$1,000. (B) "Per mile" means the total number of miles of streets,paved or unpaved, owned by the city,within the city limits, not including toll roads or bridges,per mile. (C) "Receipts"means the gross amount of money charged by the city, including taxes, for operations rated on a receipts' basis(this does not include taxes which are collected separately and remitted directly to this or any other governmental entity), per$100 of receipts. (D) "Payroll" means the entire payroll(remuneration)earned during the coverage period, including overtime, employees of the city working in the department (classification)shown,per$100 payroll. (E) "Each" means per unit. (F) "Square footage"means per square foot. (G) "Cost" means the total cost for operations performed for the city by an independent contractor during the coverage period, including the cost of labor, materials and equipment furnished, and all fees or commission made,whether paid or due. (H) "Per gallon" means annual usage of water,per 1,000,000 gallons. LMCIT MGL-1 (01-95) Page 2 of 2 COMPREHENSIVE MUNICIPAL LIABILITY COVERAGE ® Coverage A Municipal Liability ❑ Coverage A Municipal Liability, but only for Bodily Injury, Property Damage or Personal Injury ❑ Coverage A Municipal Liability, except for Bodily Injury,Property Damage or Personal Injury ® Coverage B Medical and Related Expense ® Coverage C Automobile Liability—Bodily Injury and Property Damage ® Coverage D Land Use, Development, Franchise or Enterprise Operations Litigation In consideration of the premium charged, it is understood and agreed that the Declarations and Section II- Who Is Covered are amended to include: ECONOMIC DEVELOPMENT AUTHORITY SUBJECT TO A RETROACTIVE DATE OF JULY 7, 1998 for all coverage where ❑ is X'd above. All other terms and conditions remain unchanged. LMCIT ME066(11/96)(Rev. 11/05) Page 1 of 1 COMPREHENSIVE MUNICIPAL COVERAGE WAIVER OF STATUTORY LIABILITY LIMITATIONS ENDORSEMENT In consideration of the additional premium paid by the city, Section VI- Conditions, paragraph 6, is deleted and is replaced by the following: 6. STATUTORY LIABILITY LIMITATIONS AND IMMUNITIES a. It is the express intent of the city and of LMCIT that for any claim to which this covenant applies, the monetary limits of liability provided by Minnesota Statute 466.04 are waived to the extent of the limits of coverage shown in the declarations and further described in Section III - Limits of Coverage. This waiver shall not apply to any claim not covered under this covenant, and shall not affect any limitations which may apply by virtue of any other statute or common law. b. It is the express intent of the city and of LMCIT that the procurement of this covenant shall not waive any other immunities, limitations, or defenses imposed by or available under any statute or common law which is applicable to any covered party. All other terms and conditions remain unchanged. LMCIT ME073 (11/97)(Rev. 11/01) Covenant Number: MUNICIPAL AUTOMOBILE DECLARATIONS CMC 27453 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES LMC INSURANCE TRUST (Herein called LMCIT) League of Minnesota Cities Cities promoting excellence Item 1. CITY: OAK PARK HEIGHTS, CITY OF Item 2. COVERAGE PERIOD: From: 07/07/06 To: 07/07/07 12:01 AM Standard Time at Mailing Address Indicated on Common Coverage Declarations Item 3. THE COVERED PARTY IS: CITY Item 4. COVERAGE: IN RETURN FOR THE PAYMENT OF PREMIUM AND SUBJECT TO ALL OF THE TERMS OF THIS COVENANT, LMCIT AGREES WITH THE COVERED PARTY TO PROVIDE THE COVERAGE AS STATED IN THIS COVENANT, SUBJECT TO THE FOLLOWING LIMITS: COVERAGE: LIMIT: AUTOMOBILE LIABILITY $1,000,000 Per Occurrence BASIC ECONOMIC LOSS BENEFITS Basic Minnesota Statutory Coverage UNINSURED&UNDERINSURED MOTORISTS Basic Minnesota Statutory Coverage AUTOMOBILE PHYSICAL DAMAGE Actual Cash Value,Unless Endorsed Item 5. DEDUCTIBLE (SUBJECT TO GENERAL ANNUAL AGGREGATE DEDUCTIBLE, IF ANY, SHOWN ON COMMON COVERAGE DECLARATIONS). $ 500 per occurrence Item 6. FORMS AND ENDORSEMENTS ATTACHED TO THIS COVERAGE PART: A0010(11-03) C M C(11-05) M A082(11-03) M A083(11-03) MA084(11-03) MA085(11-03) ME063(11-01) ME066(11-05) ME073(11-01) ME079(11-03) LMCIT DEC-016(l 1/86)(Rev.l 1/03) MUNICIPAL AUTOMOBILE PHYSICAL DAMAGE COVERAGE Various provisions in this covenant restrict coverage.Read The word you and your refer to the city shown in the the entire covenant carefully to determine rights,duties and Declarations. The words we, us and our refer to LMCIT what is or is not covered. Throughout this covenant, the providing this covenant. word city refers to the first city shown in the Declarations. The word LMCIT refers to the League of Minnesota Cities Other words and phrases that appear in italics have special Insurance Trust. meaning, as given in SECTION IV—DEFINITIONS. SECTION I - COVERAGE AGREEMENT We will pay for direct and accidental damage or loss to a not covered as described under SECTION II— CAUSES covered automobile unless the cause of loss or damage is OF LOSS AND DAMAGES NOT COVERED. SECTION II - CAUSES OF LOSS AND DAMAGES NOT COVERED 1. CAUSES OF LOSS NOT COVERED 2. DAMAGES NOT COVERED We will not pay for loss or damage caused directly or We will not pay for the following damages: indirectly by any of the following.Such loss or damage is excluded regardless of any other cause or event that a. Damages caused by; contributes concurrently or in any sequence to the loss. (1) Wear and tear; a. War. (2) Freezing;except freezing of the pumping apparatus of a (1) War, including undeclared or civil war; fire truck or similar emergency or other utility truck; or (2) Warlike action by a military force, including (3) Mechanical or electrical breakdowns. action in hindering or defending against an actual or expected attack by any government,sovereign This exclusion does not apply if the above damage results or other authority using military personnel or other from other loss or damage covered by this Coverage Part. agents; or b. Blowouts, punctures, or other road damage to tires. (3) Insurrection, rebellion, revolution, usurped power or action taken by governmental authority in This exclusion does not apply if the above damage results hindering or defending against any of these. from other loss or damage covered by this Coverage Part. SECTION III - LIMITS OF COVERAGE AND VALUATION 1. LIMITS OF COVERAGE b. We will not pay for loss or damage in any one occurrence until the amount of loss or damage exceeds a. The most we will pay for loss or damage is the smaller the Deductible in Item 5 of the Declarations,and the of the following amounts: amount of loss will be reduced by the deductible amount. (1) The actual cash value of the damaged or stolen property at the time of the loss or damage; or The deductible applies against the total loss incurred by you from any one occurrence,regardless of the number (2) The cost of repairing or replacing the damaged or of covered automobiles involved. stolen property with other like kind and quality. LMCITA0010(11/89)(Rev. 11-03) Page 1 of3 f 2. LOSS VALUATION competent and disinterested umpire. If they cannot agree,either may request that selection be made by a a. At our option we may: judge of court having jurisdiction. The appraisers will state separatelythe actual cash value and the amount of (1) Pay for, repair, or replace damaged or stolen the loss or damage.If the appraisers fail to agree,they property; will submit their differencesto the umpire. An award agreed to by any two will be binding. (2) Return the stolen property at our expense. We will pay for any damage that results, to the covered Each party will: automobile from the theft;or (1) Pay its chosen appraiser and; (3) Take all or any part of the damaged or stolen property at an agreed or appraised value. (2) Bear the other expenses of the appraisal and umpire equally. b. If you and we fail to agree as to the amount of loss or damage,either may demand an appraisal of the loss or We shall not be held to have waived any of our rights damage. In such event,you and we shall each select a by any act relating to appraisal. competent appraiser. The two appraisers will select a SECTION IV - DEFINITIONS 1. Automobile means a land motor vehicle,trailer or semi- 3. City means governmental body or entity first named in trailer designed for travd on public roads. the Declarations. For purposes of this coverage, city includes relief associations.Unless specificallynamed 2. Covered automobile means: in the Declarations,city shall not include: a. Any automobile that you own; a. Gas, electrical or steam utilities commission; b. Any automobile that you rent or lease for a period of b. Port authority,housing and redevelopment authority, more than 30 days; economic development authority, area or municipal redevelopment authority or similar agency; c. Any automobile that you borrow; c. Municipal power agency; d. Any automobile that you rent or lease from a person or organization that is not in the business of renting or d. Municipal gas agency; leasing automobiles; or e. Hospital or nursing home board or commission; e. Any automobile that you or a city official,employee,or volunteer rents for city business for less than 30 days f. Airport commission; from a person or organization in the business of renting automobiles if the rental agreementrequiresyou or the g. Welfare or public relief agency; individual renting the automobile to pay for loss or damage to the automobile. h. School board; However,the following automobiles are not a covered i. Joint powers entity. automobile while used in the business of thecity: 4. Joint powers entity means an operating entity created a. Any automobile which is owned or leased by a city by two or more governmental units entering into an official,employee or volunteer; or agreement as provided by statute for the joint exercise of governmental powers. An intergovernmental b. Any automobile which is owned or leased by a agreement will be deemed to create a joint powers member of the city official's,employee's or volunteer's entity if the agreement establishes a board with the household. effective power to do any of the following,regardless LMCIT A0010(11/89)(Rev. 11-03) Page 2 of 3 of whether the specific consent of the constituent c. To hire employees; governmental units may be required: d. To purchase or otherwise acquire or hold real or a. To receive and expend funds; personal property; or b. To enter into contacts; e. To sue or be sued. SECTION V - CONDITIONS 1. COVERAGE UNDER TWO OR MORE 3. LOSS CONDITIONS COVERAGES Duties in the event of loss: If two or more of this covenant's coverage's apply to the same loss or damage,we will not pay more than the actual a. You must promptly notifyus of any loss. amount of the loss or damage. b. You must tell us how, when, and where the loss 2. COVERAGE PERIOD, COVERAGE happened. You must assist in obtaining the names and TERRITORY addresses of any witnesses. Under this Coverage Part: c. You must do what is reasonably necessary after the loss at our expense to protect the covered automobile from a. We cover loss or damage commencing: further loss. You must submit a proof of loss when required by us. (1) During the coverage period shown in the Declarations; and d. You must promptly notify the police if the covered automobile or any of its equipment is stolen. (2) Within the coverage territory. b. The coverage territory is: (1) The United States of America (including its territories and possessions); (2) Puerto Rico; and (3) Canada LMCIT A0010(11/89)(Rev. 11-03) Page 3 of 3 BASIC ECONOMIC LOSS BENEFITS AND UNINSURED AND UNDERINSURED MOTORISTS COVERAGE LMCIT agrees to provide Basic Economic Loss Benefits and Uninsured and Underinsured Motorists Coverage in such minimum amounts, and for such motor vehicles, as are required by the Minnesota No- Fault Automobile Insurance Act,Minnesota Statutes Section 65B.41 to 65B.71. The Comprehensive Municipal Coverage Common Conditions also apply unless they are in conflict with the Minnesota No-Fault Automobile Insurance Act. In that event,the Minnesota No-Fault Automobile Insurance Act shall govern. LMCIT MA082(11/03) Page I of 1 SCHEDULED BASIC ECONOMIC LOSS BENEFITS FOR UNREGISTERED MOTOR VEHICLE ENDORSEMENT It is agreed that with respect to coverage afforded for Basic Economic Loss Benefits, coverage is amended to add coverage for motor vehicles that are not required to be registered pursuant to Minnesota Statute Chapter 168. LMCIT MA083(11/03) Page 1 of 1 UNINSURED AND UNDERINSURED MOTORISTS COVERAGE INCREASED LIMITS OF COVERAGE It is agreed that with respect to coverage afforded for Uninsured and Underinsured Motorists Coverage, the limit of coverage as stated on DEC-016 is amended to read$1,000,000. LMCIT MA084(11/03) Page 1 of 1 SCHEDULED UNINSURED AND UNDERINSURED MOTORISTS COVERAGE FOR UNREGISTERED MOTOR VEHICLE ENDORSEMENT It is agreed that with respect to coverage afforded for Uninsured and Underinsured Motorists Coverage, coverage is amended to add coverage for motor vehicles that are not required to be registered pursuant to Minnesota Statute Chapter 168. LMCIT MA085(11/03) Page 1 of 1 DEFINITION OF CITY ENDORSEMENT It is understood and agreed that city is amended to include: ECONOMIC DEVELOPMENT AUTHORITY All other terms and conditions remain unchanged. LMCIT ME063(11/95)(Rev. 11/01) Page 1 of 1 COMPREHENSIVE MUNICIPAL LIABILITY COVERAGE ® Coverage A Municipal Liability n Coverage A Municipal Liability, but only for Bodily Injury,Property Damage or Personal Injury ❑ Coverage A Municipal Liability, except for Bodily Injury, Property Damage or Personal Injury Fl Coverage B Medical and Related Expense ® Coverage C Automobile Liability—Bodily Injury and Property Damage Fi Coverage D Land Use, Development, Franchise or Enterprise Operations Litigation In consideration of the premium charged, it is understood and agreed that the Declarations and Section II- Who Is Covered are amended to include: ECONOMIC DEVELOPMENT AUTHORITY SUBJECT TO A RETROACTIVE DATE OF JULY 7, 1998 for all coverage where ❑ is X'd above. All other terms and conditions remain unchanged. LMCIT ME066(11/96)(Rev. 11/05) Page 1 of 1 P (-1----v.7 MUNICIPAL EXCESS LIMC League of Minnesota Cities LIABILITY COVERAGE Cities promoting excellence PREPARED ESPECIALLY FOR: CITY OF OAK PARK HEIGHTS 14168 OAK PARK BOULEVARD P.O. BOX 2007 STILLWATER, MN 55082 07/23/06 - 07/23/07 Agent: LANDMARK INSURANCE SERVICES 232 SOUTH LAKE STREET FOREST LAKE, MN 55025 League of Minnesota Cities 145 University Avenue West St. Paul, MN 55103-2044 � Phone: (651) 281-1200 Fax: (651) 281-1298 Web Site http://www.lmnc.org A **IMPORTANT** PLEASE READ YOUR AGREEMENT Covenant Number: MUNICIPAL EXCESS LIABILITY DECLARATIONS MEL 5586 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES LMC Previous Covenant Number: INSURANCE TRUST League of Minnesota Cities MEL 5291 (Herein called LMCIT) Cities promoting excellence Item 1. CITY and MAILING ADDRESS: OAK PARK HEIGHT, CITY OF 14168 OAK PARK BLVD P.O. BOX 2007 STILLWATER,MN 55082 Item 2. COVERAGE PERIOD: 12:01 AM Standard Time at Mailing Address Indicated on Item 1. From: 07/07/06 To: 07/07/07 Item 3. RETROACTIVE DATE: July 07, 1987 Claims Made Item 4. THE COVERED PARTY IS:CITY Item 5. LIMITS OF COVERAGE: Aggregate Limit $1,0 0 0,0 0 0 Item 6. PREMIUM: $ 4, 949 Item 7. FORM NUMBERS AND/OR ENDORSEMENTS FORMING A PART OF THE AGREEMENT AT ISSUE: MELC(11-04) UME-4 (11-03) Executive Director,LMCIT LMCIT DEC-017(11/96)(Rev. 11/02) MUNICIPAL EXCESS LIABILITY COVERAGE Various provisions in this covenant restrict coverage. covered. Words and phrases that appear in italics have Read the entire coverage agreement carefully to special meaning, as given in given in SECTION III - determine rights, duties, and what is covered and not DEFINITIONS,or in the underlying coverage. SECTION I - LIABILITY COVERAGE 1. COVERAGE AGREEMENT compensation or any similar law. a. Subject to the terms, conditions, limitations, c. Any lead or asbestos claim. and exclusions contained herein,LMCIT will pay amounts in excess of what LMCIT is d. Any failure to supply claim. obligated to pay under the terms of the underlying coverage. e. Any mold claim. b. The amount that LMCIT will pay is limited as f. Awards for attorney's fees pursuant to statute, described in SECTION II - LIMITS OF except for attorney's fees with respect to COVERAGE. federal civil rights suits or state human rights suits. c. LMCIT will only pay if the date of the claim is on or after the retroactive date, if any, shown g. Any limited pollution liability claim except for in the Declarations. damages: d. Except as otherwise provided herein, this (a) Arising out of pesticide or herbicide coverage is subject to the same terms, application operations; definitions, conditions and exclusions of the underlying coverage. (b) Arising from the accidental rupture, backup, or overflow of the city's sanitary 2. EXCLUSIONS sewer, storm sewer, or water supply systems; or In addition to the exclusions contained in the underlying coverage, the following exclusions (c) Caused by an actual,alleged,or threatened apply to this coverage: discharge, dispersal, release or escape of pollutants which took place entirely above a. Any obligation to pay expenses under any ground and not within or on the surface of medical payments coverage. any lake, stream, surface water, or other body of water,and in which any resulting b. Any obligation imposed by law under any damages occurred entirely above ground automobile no-fault, uninsured motorist, and not within or on the surface of any underinsured motorist,workers'compensation, lake, stream, surface water, or other body disability benefits, or unemployment of water. SECTION II - LIMITS OF COVERAGE 1. The Limits of Coverage shown in Item 5. of the b. Claims made or suits brought; Declarations and the rules below fix the most LMCIT will pay under the terms of this covenant c. Persons or organizations making claims or regardless of the number of: suits. a. Covered parties; LMCIT MELC(11/86)(Rev. 11104) Page 1 of 2 2. The Aggregate Limit is the most LMCIT will pay 3. Each payment, including defense expenses and under this covenant.The Aggregate Limit includes supplementary payments,LMCIT makes under this defense expenses and supplementary payments. covenant reduces, by the amount of the payment, the Aggregate Limit. SECTION III - DEFINITIONS Underlying coverage means the Comprehensive Liability Coverage of the Workers Compensation and Municipal Coverage and Part Two - Employers Employers Liability Coverage as provided by LMCIT. SECTION IV - EXTENDED REPORTING PERIOD The additional premium for the supplemental extended reporting period will be a percentage the annual expiring premium for SECTION I - LIABILITY COVERAGE. Number of Years Since Retroactive Date Shown on Declarations Page Additional Cost 1 50% 2 70% 3 80% 4 90% 5+ 100% LMCIT MELC(11/86)(Rev. 11/04) Page 2 of 2 UNINSURED/UNDERINSURED MOTORISTS - FOLLOW FORM It is understood and agreed that in so far as coverage is provided in the underlying coverage, uninsured and underinsured motorists coverage is on a follow form basis. All other terms and conditions remain unchanged. LMCIT UME-4 (01-95) (Rev. 11-03) Page 1 of 1 t LMC OPEN MEETING LAW League of Minnesota Cities DEFENSE COST Cities promoting excellence REIMBURSEMENT AGREEMENT PREPARED ESPECIALLY FOR: CITY OF OAK PARK HEIGHTS 14168 OAK PARK BOULEVARD P.O. BOX 2007 STILLWATER, MN 55082 07/07/06 - 07/07/07 Agent: LANDMARK INSURANCE SERVICES 232 SOUTH LAKE STREET FOREST LAKE, MN 55025 League of Minnesota Cities 145 University Avenue West St. Paul, MN 55103-2044 Phone: (651) 281-1200 Fax: (651) 281-1298 Web Site http://www.lmnc.orc **IMPORTANT** PLEASE READ YOUR AGREEMENT Covenant Number: AGREEMENT DECLARATIONS OML 4132 OPEN MEETING LAW DEFENSE COST REIMBURSEMENT AGREEMENT LMC Previous Covenant Number: Coverage Is Provided By: League of Minnesota Cities OML 3726 THE LEAGUE OF MINNESOTA CITIES Cities promoting excellence INSURANCE TRUST (Herein called LMCIT) Item 1. COVERED PARTY and MAILING ADDRESS: OAK PARK HEIGHT,CITY OF 14168 OAK PARK BLVD P.O.BOX 2007 STILLWA'1'ER,MN 55082 Item 2. COVERAGE PERIOD: 12:01 AM Standard Time at Mailing Address Indicated Above From: 07/07/06 To: 07/07/07 Item 3. RETROACTIVE DATE: 11/09/94 �" ' 1 I Item 4. THE COVERED PARTY IS: ®City ❑ Joint Powers Entity ❑Others(Describe) Item 5. REIMBURSEMENT LIMITS: A. "Reimbursable Costs:" MAXIMUM 1. Defense Costs Per Lawsuit Per Official: $50,000. 2. Agreement Term Aggregate Per Official: $50,000. Item 6. PREMIUM: $413 Item 7. FORMS AND ENDORSEMENTS APPLICABLE TO AGREEMENT: OMLRA-1(11-04) OML-001(1 1-97) ME063(11-01) I Executive Director,LMCIT LMCIT DEGO19(11-93)(Rev. 11/99) Administered by:Berkley Risk Administrators Company,LLC OPEN MEETING LAW DEFENSE COST REIMBURSEMENT AGREEMENT I. OPEN MEETING LAW DEFENSE COST 4. The city and the city official shall at all times COVERAGE cooperate with and promptly respond to LMCIT's requests for information, investigative data, records, LMCIT will reimburse a city official for 80 percent of the or any other material documentation. defense costs incurred by the city official in defending an Open Meeting Law lawsuit, if the following conditions 5. The city official will be reimbursed only for defense are met: costs incurred with respect to legal services actually rendered and expenses actually incurred. 1. The date on which the Open Meeting Law lawsuit is commenced must be within the term 6. The city official shall have complete freedom to of this agreement; and; choose an attorney licensed in the State of Minnesota to provide the city official with legal 2. The date on which the violation took place or is services with respect to which defense costs are alleged to have taken place must be on or after reimbursable under this Agreement. the retroactive date, if any, shown in the Declarations. 7. It is the express intent of the parties to this Agreement that, neither the city nor the city official, An Open Meeting Law lawsuit is deemed to be waive any immunities, defenses, or limitations on commenced on the date the city official is served notice liability available under Minnesota statutes or of the lawsuit. common law. II. LIMITS 8. In the event that a city official makes a recovery of defense costs from any third party, LMCIT shall be The Open Meeting Law Defense Cost Reimbursement reimbursed for any payment it has made under this Agreement Limit is $50,000. This is the most LMCIT Agreement after the city official has been fully will reimburse any one city official for defense costs for reimbursed for his/her 20% share of the defense Open Meeting Law lawsuits commenced during the term costs. of this agreement, regardless of the number of lawsuits, the number of actual or alleged violations, or the date the 9. LMCIT may cancel this Agreement by mailing or defense costs are actually incurred. delivering written notice to the city at least: III.CONDITIONS AND EXCLUSIONS a. Ten (10) days before the effective date of cancellation for nonpayment of the charge for this 1. The term of this Agreement shall be one year Agreement; or beginning with the effective date stated in the Declarations. Subsequent renewals of this b. Thirty (30) days before the effective date of Agreement shall be treated as separate terms. cancellation for any other reason. 2. LMCIT shall have no duty to provide a defense to a If LMCIT decides not to renew this Agreement, city official with respect to a legal action against that LMCIT will mail or deliver to the city written city official seeking penalties based upon an alleged notice of non-renewal not less than thirty 30 violation of the Minnesota Open Meeting Law; days before the expiration date. however, LMCIT shall have the right to intervene at its expense in the investigation or defense of such 10. It is mutually understood and agreed that the city and legal action. all other LMCIT pool participants are jointly and severally liable for all claims and expenses of the 3. The city or the city official shall give prompt notice pool. The amount of any liabilities in excess of to LMCIT of any actual or threatened legal action assets may be assessed to LMCIT pool participants against the city official seeking penalties against the when a deficiency is identified. city official for an alleged violation of the Minnesota Open Meeting Law. LMCIT OMLRA-1(11/93)(Rev.I 1/04) Page 1 of 2 • IV.DEFINITIONS 6. "Open Meeting Law lawsuit" means a lawsuit seeking penalties against a city official based on an 1. "City" means the city or other governmental body or allegation that the city official has violated entity first named in the Declarations. Unless M.S.13D.01- 13D.07, commonly known as the specifically named in the Declarations, city shall not Minnesota Open Meeting Law. include a gas, electrical, or steam utilities commission; port authority, housing and redevelopment authority, economic development authority, area or municipal redevelopment authority, or similar agency; municipal power agency; municipal gas agency; hospital or nursing home board or commission; airport commission; welfare or public relief agency; school board; or joint powers entity. 2. "City official" means any former or present elected or appointed official of the city or any present or former employee of the city. 3. "Defense costs" means reasonable and necessary attorney fees, court costs, court reporter and transcript fees, general witness and expert witness fees and expense, and similar defense related costs. Defense costs does not include any fines or penalties, or any attorney's fees awarded to a plaintiff in a suit charging a violation of the Open Meeting Law. 4. "Joint powers entity" means an operating entity created by two or more governmental units entering into an agreement as provided by statute for the joint exercise of governmental powers. An intergovernmental agreement will be deemed to create a joint powers entity if the agreement establishes a board with the effective power to do any of the following, regardless of whether the specific consent of the constituent governmental units may also be required: a. To receive and expend funds; b. To enter into contracts; c. To hire employees; d. To purchase or otherwise acquire and hold real or personal property; or e. To sue or be sued. 5. "LMCIT' means the League of Minnesota Cities Insurance Trust. LMCIT OMLRA-1(11/93)(Rev.11/04) Page 2 of 2 OPEN MEETING LAW DEFENSE COST REIMBURSEMENT AGREEMENT REIMBURSEMENT PARTICIPATION ENDORSEMENT It is understood and agreed that Section I.Open Meeting Law Defense Cost Coverage is amended to modify the percentage of reimbursement of a"defense costs"fan 80%to 100%. This modification does not change the maximum amount of reimbursement as specified in Section II. Limits and as shown in the Agreement Declarations. All other terms and conditions remain unchanged. OML-001(1 1/97) DEFINITION OF CITY ENDORSEMENT It is understood and agreed that city is amended to include: ECONOMIC DEVELOPMENT AUTHORITY All other terms and conditions remain unchanged. LMCIT ME063(11/95)(Rev. 11/01) Page 1 of 1