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Home My WebLink AboutUntitled ]L aun (dlhnnlanrk l[Inl sTunra]n c e Sery ti c e 232 South Lake Street•Forest Lake,MN 55025 • Phone: (651)464-3333 •FAX: (651)464-7596 Since 1903 October 8,2004 City of Oak Park Heights Eric Johnson, City Admin. 14168 Oak Park Blvd PO Bx 2007 Oak Park Heights,MN 55082-6476 RE: CMC25101; MEL4932; & OML3375 Dear Eric and Judy, LMCIT has completed the renewal of your Commercial Package, Excess Liability and Open Meeting Law Liability policies. This renewal extends coverage from 07/01/04 to 07/01/05. I would ask you to place this renewal with your other insurance documents. C Please take a moment to review your policy. Should you lop) have any questions or changes in coverage(s) please contact me at 464-3333, and I would be happy to review ■ the information with you My extension is shown below. J All claim information should be reported to Landmark Insurance Services. Your premium will be billed as follows: Direct billed by Company, invoices enclosed. I would like to take this time to say thank you for continuing your business insurance with our agency. Landmark Insurance Services handles a full line of Property, Casualty, Life and Health Insurance for both individuals and businesses. Our agency would be happy to provide a no obligation quotation should you have any additional insurance needs. Sincerely, 1-4M2---- ----___ Kate Tipping Landmark Insurance Services Enclosure: 6 iO 71 6 7/ 7/0,"' 07 INVOICE #: 17364 lit_1 2 J LEAGUE OF MN CITIES INSURANCE TRUS PREMIUM NOTICE , C/O BERKLEY RISK SERVICES, LLC Invoice Date: 9/21/04 222 SOUTH NINTH STREET Due Date: 10/20/04 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 25101 Coverage Period: 7/07/04 To 7/07/05 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 10/20/04 45,802.00 PREMIUM Total : $45,802.00 Payment/Adjustment Applied: $.00 Total : $45,802.00 PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 17364 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 25101 DUE DATE: 10/20/04 Coverage Period: 7/07/04 To 7/07/05 UNPAID BALANCE: 45,802.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 45,802.00 INVOICE #: 17338 LEAGUE OF MN CITIES INSURANCE TRUS PREMIUM NOTICE C/O BERKLEY RISK SERVICES, LLC Invoice Date: 9/16/04 222 SOUTH NINTH STREET Due Date: 10/15/04 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 4932 Coverage Period: 7/07/04 To 7/07/05 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 10/15/04 7,021.00 PREMIUM Total : $7,021.00 Payment/Adjustment Applied: $.00 Total : $7,021.00 PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 17338 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 4932 DUE DATE: 10/15/04 Coverage Period: 7/07/04 To 7/07/05 UNPAID BALANCE: 7,021.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 7,021.00 INVOICE #: 17339 LEAGUE OF MN CITIES INSURANCE TRUS PREMIUM NOTICE C/O BERKLEY RISK SERVICES, LLC Invoice Date: 9/16/04 222 SOUTH NINTH STREET Due Date: 10/15/04 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 3375 Coverage Period: 7/07/04 To 7/07/05 Covered Party: OAK PARK HEIGHTS, CITY OF Payment Plan Selected: ANNUAL PAY PLAN DUE DATE AMOUNT DUE END.DATE DESCRIPTION 10/15/04 459.00 PREMIUM Total : $459.00 Payment/Adjustment Applied: $.00 Total : $459.00 PLEASE RETURN THIS PORTION WITH YOUR CHECK MADE PAYABLE TO: LEAGUE OF MN CITIES INSURANCE TRUST INVOICE #: 17339 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 3375 DUE DATE: 10/15/04 Coverage Period: 7/07/04 To 7/07/05 UNPAID BALANCE: 459.00 Covered Party: OAK PARK HEIGHTS, CITY OF AMOUNT DUE: 459.00 LEAGUE OF MINNESOTA CITIES INSURANCE TRUST PROPERTY/CASUALTY 2004 DIVIDEND CALCULATION AT MAY 31, 2004 DEC I 2004 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 WA TER MN 55082 GROSS EARNED PREMIUM $ 792,901 ADJUSTED LOSSES $ 108,668 MEMBERS DIVIDEND PERCENTAGE .00158171677 DIVIDEND AMOUNT $ 14,235 League of Minnesota Cities Insurance Trust Property/Casualty Program OAK PARK HEIGHTS Premium and Dividend History $60,000 $50,000 $40,000 •$30,000 € $10,000 a g '95 '96 '97 '98 '99 I '00 '01 1 '02 '03 '04 ▪premium $45,352 $45,311 $43,126 $43,126 $48,711 $51,199 $49,224 $50,034 $56,791 $52,398 ■Dividends $15,150 $20,700 $18,969 $15,430 $11,209 $7,858 $12,729 $14,393 $14,331 $14,235 OAK PARK HEIGHTS Premiums and Dividends since 1987 $900,000 $800,000 - $700,000 - • $600,000 $500,000 - $400,000 $300,000 $200,000 $100,000 - z3 $0 P,v Premiums 4 Dividends League of Minnesota Cities Insurance Trust 145 University Avenue West,St Paul,MN 55103-2044 rogue ta Cures (651)281-1200 • (800)925-1122 excellence Fax:(651)281-1298 • TDD:(651)281-1290 www.lmnc.org December 15, 2004 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 Brenda Johnson, City Council, Chatfield Todd Prafke, City Administrator, St. Peter Jim Miller, Executive Director, LMC Paul Sparks, Executive Director, Albert Lea Port Authority The LMCIT property/casualty program is again this year returning $9 million to member cities as a dividend. This is the eighteenth straight year that LMCIT has been able to return a dividend to member cities, and it brings the total to $175 million since 1987. LMCIT Dividends $175 Million Since 1987 $25,000,000 $20,000,000 1 $15,000,000 $10,000,000 111 11 $5,000,000 $0 —1 ,- '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 IN Property/casualty M Work Comp The reason LMCIT is able to return a dividend is simple: Member cities have kept losses below the level that the premiums were designed to fund. That's paid off not only in dividends but in lower premiums as well. Liability premium rates are now a third 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. It's 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 does LMCIT keep returning dividends? Why not just reduce the premiums further? The dividends are a by-product of LMCIT's conservative financial approach. LMCIT's premium rates are designed with a safety margin, so they'd 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. 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. What about 2005? LMCIT property and liability premium rates Property/casualty premium rates will 2 $20.00 —._..._......._____.._....___..____________.._�_�.____._.__..._.__.._.....__ $0.20 be lower for 2005. Losses have j $15.00 generally been stable, but we've x t- -■--+�,. . •-*. •' `_• $0.15 reduced reinsurance costs by $10.00 -.- . ""`—`�*--;_, $0.10 e increasing the amount of risk LMCIT + a 8 retains. That should save money in $5.00 $0.05 the long run, but it could mean more $o.00 ! moo variability in LMCIT's loss costs and '92'93'94'95'96'97'98'99'00'01 02 '03'04'05 in dividends in the future. - -- Liability - -•- -Property Work comp premium rates will increase 7%. The driving factor is medical costs. They've been rising sharply for several years, and there's little reason to expect that trend to change soon. One positive sign is that the numbers of employee injuries have been down in the past couple years. If that continues, it will help hold future premiums down. At the end of the day of course, both premium rates and dividends both depend on one basic factor: what the losses are. LMCIT's member cities have been doing an outstanding job of controlling and avoiding losses. That takes both the support of the city's elected officials and the efforts of your city staff. Your commitment to controlling losses pays off for all of us— thank you and congratulations. Questions If you have any questions about your city's share of LMCIT dividends or our premium rates for 2005, please call Pete Tritz at 651-281-1265, or any of the members of the LMCIT Board. 2 League of Minnesota Cities Insurance Trust L 1IC 145 University Avenue West,St.Paul,MN 55103-2044 (651)2811200 • (800)925-1122 League of Minnesota Cities Fax (651)281-1298 • TDD:(651)281-1290 Cities promoting=salience www.lmnc.org December 13, 2004 To: LMCIT cities and agents From: LMCIT Board of Trustees Re: 2004 LMCIT property/casualty dividend—calculations and outlook Members of the LMCIT property/casualty program are sharing again this year in a$9 million dividend. This memo will give you some information on the dividend, how your city's share is calculated, and what you might expect as far as future dividends. How does LMCIT 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 that $9 million could be returned to our member cities. The next step is to allocate that total among the members. The surplus that LMCIT has at any one time is the cumulative result of all of the cities' premiums and losses since LMCIT began. Cities that have been members the longest, that have contributed the most in premiums, and that 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 single large "shock" loss on the city's dividend. Without this kind of limitation, a small or mid-sized city 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 that were used to calculate your city's dividend. The premium figure is your city's total of all earned premiums through May 31, 2004, 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 I z , -aalu1Jtn2 t Janau s‘a.tatil imp si puttu ur daax &u q lurpoduri Isom aqj .Jalma armnj aq� ut spuapinip aq ii!An aiogi zatuagM Nowt Janau tiro aM `JOANUTiM io sdnxarq laMas io sivapioor .reo.10 s0J1.ro sltnsmui JO saoputum UJOJJ 0Agti 11,3M SOSSOJ 1.134M Moux.tanau ugo aM asnroag -sassoi pur sutnaurard Jo Auidraiui uo spuadap aminJ alp ut spuapinip aq ppM a.rag q oggM •.raiiuurs Aiitiauulsgns sjT 3T JO puapintp coot ou sT oiogi ji op p,noif mink.roJ urid u anttp noc a.rns a}irut `Os saop ,ino Jnoic.ji -sia2pnq JTati, mu! 51unouzn asoti}pimq O1 unOaq anrq saw autos `MO.r t ur streak /Curtu ioj spuapinip aigrzrs urniar of aigr uaaq sari J IJW'I asnuoag 4arnini alp ur s ua A .ILL urS padxa ant wogs .Jra1C wed an suoiloofo.rd arm.ratpq 1rtJMautos uaaq aArti 0111001rr IJuauz3sanur pug surniuraJd patuua tpnog • -dn pal} aroJaxagi a.rg sassoi asogi JOJ apisr has Xisnotna.rd spun] oqj •suoiloafoad 1011120 .mo trap.ssai sr Isoa 1Cialt?tuIItn HIM s-rraii.rorrd!nag sassoi Tu4M Jo aluiu[isa Iuanno ata • -sassoi zoj papaau aq L,uoM sm.! ut maim! /flags Trtim a)iti s)iooi 11 `sproM Ja410 ui 105 3.10M salt.! a41 ua4M paioafoid p‘aM 1g4M gpliM aura uT Si maif lsrd aul Ruunp pa/moil!sassoi Jo lsoa palrumsa all `latod sup 1Y • :aigissod puaplATp s,ataic 5141 swim!1tgM Jo A.ruzuzns t mraid -isoo Xialrurign ipiM sassoi seat(aorrd lu4M Jo salrums°_um uT saOurgo Xq palaaJJ1 osit art slinsar i1Taurug s,JtaJf atil `.ar31c 1u11.'2u9np pauaddrq 1ut4M uo puadap lsnf Luop a.zojaragl maif auo Aur ur alma.!Imo aM puaprnrp jo iunoun am put slinsaa s‘uzu.ao.rd 0IJZ •pairpdn pug pasina.r 1(iirnurluoo 0117 golt4M `saiututlsa ti1TM 3110M 01 anu4 am `uosuar snit.rod •0.r0M 51500 SSOJ [tnlou aql 1tt4M a.rns Joj mom'am put paiUas iciirurd 0112 Surtrio 'gun swat( irranas a)1r1 uuo li lttpl st uo4urado aouurnsui /cut Jr! an Jo loci auo •s1aqumatu of patunlar aq 01 aiquitunu satuooaq osit s&utnus iuuo11Tppr 11741 `suorlaafo.zd until aaMOi aq of lno uml sassoi Ji •aaugigq punj sai)W"i uatpi5uaxls 01 pasn JO puapintp u sr sxaquratu of paurnla.r aq of.1atllta aig1JTUnr Si puu sassoi.roJ /cud o}papaau busT u1astut lath `suoiloafo.rd lu aq 01 Trio u-ml sassoi Ji -suotlaafoid imp Jaluaa aq of p.m turn sassoi 3t uana sasuadxa puu sassoi zanoo 01 anuanaJ g0noua aanpozd of pau2tsap a.iu 0a10011r luatalsanur snid sumturaid aql `si 11241 •up.zrtu /Claprs u alu.zodzoour salts tunHtua.rd 041`AUal.rg -2urllas-alai of 4auozddr SAi)TAi'i 4JTM JtrirurrJ /WA are sraquraur J JJJAf Isom' •J0410001 pail 1f[asoio 1izan a.I1 Salu.z tunnuard par spuap!AIQ auaprn!P s‘anak srrij purrlaq S‘3ngM szua f ifurtu Joj pasn an,aM rintuxoJ autos all sT suit., •zgaX STgl aigtiitnt s jail iulol uoIijIuz 6$ aq1 JO 3aulua0J0d Tutu San1000J./ilta J1OA -pulol lumm JO 021?11130J0d u sr rapurrurar s,ilia.moJ(altinoito uagl put `sJapuIrtuaz as041 Jo pit dn ppu `sa11To iaquzaut amp HE 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. The LMCIT Board has decided to increase the amount of risk we retain on liability claims, from $500,000 to $1,000,000 per occurrence. We're also increasing LMCIT's retention on property losses, but by a smaller proportion. Retaining more risk reduces LMCIT's reinsurance costs and we expect it will produce a significant 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 could translate into more variability in future 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 the 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 that in mind when you're doing your financial planning. The LMCIT work comp program's recent history is a good illustration. Work comp members received dividends each year from 1997 through 2000. But in 2001,we began to see loss costs rising sharply, mostly because of increasing medical costs. With the very tight budget situation cities have been dealing with for the past few years, the LMCIT Board felt it was important keep the year-to-year premium increases as low as possible. To do so, we squeezed the safety margin in the work comp rates down to nearly zero. As a result, the work comp program has essentially been breaking even for the past few years—which means that no excess funds have been available to be returned as a dividend to work comp members. 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, it all depends on what the losses are. But regardless of what the future may hold, we want to congratulate member cities on another o erative risk management successful year. The record shows that the basic idea of LMCIT cop g 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 Pete Tritz at the League office, or any of the members of the LMCIT Board. 3 League of Minnesota Cities LMC Insurance Trust 145 University Avenue West,St. Paul, MN 55103-2044 (651)281.1200 • (800)925-1122 League of Minnesota Cities Fax:(651)281-1298 • TDD: (651)281-1290 Cities promoting excellence www.lmnc.org December 15, 2004 To: City Officials From: LMCIT Board of Trustees Re: 2004 Property/Casualty Dividend We are very pleased to enclose a check for your city's share of the $9 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'd ask you to share with the 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 Pete Tritz at 651-281-1265, if you have any questions or need any additional information. AN EQUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER 0 Comprehensive LMC League of Minnesota Cities Cities promoting excellence Municipal J Property and Casualty Coverage PREPARED ESPECIALLY FOR CITY OF OAK PARK HEIGHTS 14168 OAK PARK BOULEVARD P.O. BOX 2007 STILLWATER, MN 55082 07/07/04 - 07/07/05 Agent: LANDMARK INSURANCE SERVICES 232 SOUTH LAKE STREET FOREST LAKE, MN 55025-2605 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 1 is **IMPORTANT** PLEASE READ YOUR AGREEMENT Covenant Number: COMMON COVERAGE DECLARATIONS CMC 25101 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES Previous Covenant Number: INSURANCE TRUST CMC 24118 (Herein called LMCIT) IL ] '1 C Item 1. CITY and MAILING ADDRESS: League of Minnesota Cities Cities promoting excel%nce OAK PARK HEIGHTS, CITY OF 14168 OAK PARK BLVD P.O. BOX 2007 STILLWATER MN 55082 Item 2. COVERAGE PERIOD: ONE YEAR From: 07/07/04 To: 07/07/05 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 AND BOND Premium Property $ 17,161 Additional Covered Loss or Damages INCLUDED Water and Supplemental Flood Coverage INCLUDED Crime INCLUDED Bond-Employee Dishonesty NOT COVERED Bond - Faithful Performance NOT COVERED EQUIPMENT BREAKDOWN NOT COVERED MUNICIPAL LIABILITY $ 23,059 Medical and Related Expense INCLUDED AUTOMOBILE LIABILITY $ 3,557 AUTOMOBILE PHYSICAL DAMAGE $ 2,025 TOTAL $ 45,802 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(11-01) Item 8. DECLARATIONS APPLICABLE: DEC-011(11-03) DEC-012(11-03) DEC-013(11-03) DEC-016(11-03) Executive Director,LMCIT LMCIT DEC-011(11/86)(Rev.1 I/03) COMMMON CONDITIONS ALL COVERAGE PARTS INCLUDED IN THIS COVENANT ARE SUBJECT TO THE FOLLOWING CONDITIONS: 1. CANCELLATION AND NON-RENEWAL 3. RATING AUTHORITY AND EXAMINATION OF THE CITY'S BOOKS AND RECORDS a. The city shown in the Declarations may cancel this covenant by mailing or delivering to LMCIT LMCIT shall have full discretionary authority to advance written notice of cancellation. promulgate rates and establish the premium to be charged for the coverage period under this covenant. b. LMCIT may cancel this covenant by mailing or LMCIT may, at its discretion or at the city's request, delivering to the city shown in the Declarations examine and audit the city's books as they relate to written notice of cancellation at least: this covenant during the coverage period and up to one year thereafter and, accordingly, make any (1) 10 days before the effective date of the necessary adjustments in premium. No premium cancellation if LMCIT cancels for nonpayment of adjustments will be made after one year following the premium; or expiration of the coverage period. (2) 30 days before the effective date of the 4. INSPECTIONS AND SURVEYS cancellation if LMCIT cancels for any other reason. LMCIT has the right, but it is not obligated to: c. LMCIT will mail or deliver its notice to the city a. Make inspections and surveys at any time. shown in the Declarations last mailing address known to LMCIT. b. Give the city reports on the conditions it finds; and d. Notice of cancellation will state the effective date c. Recommend changes. of cancellation. The coverage period will end on that date. Neither LMCIT's right to make inspections nor its making any report thereon shall constitute any e. If this covenant is canceled, LMCIT will send the undertaking on behalf of or for the benefit of the city or city shown in the Declarations any premium others to determine or warrant that such property or refund due. If LMCIT cancels, the refund will be operations are safe or healthful or free from hazard or pro-rata. If the city cancels, the refund may be are in compliance with any law, rule or regulation. less than the pro-rata. The cancellation will be effective even if LMCIT has not made or offered These conditions apply not only to LMCIT, but also to a refund. any rating advisory, rate service, or similar organization which makes inspections, surveys, f. If LMCIT decides not to renew this covenant, reports, or recommendations. LMCIT will mail or deliver to the city shown in the Declaration written notice of the non-renewal 5. PREMIUMS not less than 30 days before the expiration date. The city shown in the Declarations: g. If notice is mailed, proof of mailing will be sufficient proof of notice. a. Is responsible for the payment of all premiums; and 2. CHANGES b. Will be the payee for any return premiums. This covenant contains all the agreements between LMCIT and the city concerning the coverage 6. TRANSFER OF THE CITY'S RIGHTS AND afforded. DUTIES UNDER THIS COVENANT The city shown in the Declarations is authorized to make changes in the terms of this coverage The city's rights and duties under this covenant may agreement with the consent of LMCIT. The not be transferred without the written consent of coverage terms can be amended or waived only by LMCIT. endorsement issued by LMCIT and made a part of this covenant or by acknowledgment by LMCIT that an endorsement will be issued at a later date. LMCIT CCM (11-89)(Rev.11-01) Page 1 of 2 7. OVERLAP OF COVERAGE b. This coverage is primary for any of the following losses: In the event of a dispute between LMCIT and one or more insurers as to which policy or coverage (1) A covered loss of business personal effects, agreement applies to a covered loss, LMCIT shall with respect to any coverage provided under the indemnify the city for any legal or other expenses employee's homeowners' insurance or similar which are necessarily incurred by the city in coverage. determining whether LMCIT or the insurer(s)shall bear the loss. Such indemnification shall be made (2) A covered loss of contents or mobile property only if it is determined that payment of the loss shall in the city's care, custody and control that is used be made under this covenant. If the loss is shared to maintain the operations of the city, with respect by LMCIT and one or more insurers, indemnification to coverage provided under an insurance policy of shall be made in the same proportion as the loss the owner covering that property. payment. The city and LMCIT shall cooperate in the development and execution of reasonable (3) A covered loss resulting from the city's procedures to resolve the dispute. maintenance or use, including loading or unloading, of any owned automobile that is not a 8. ASSESSIBILITY trailer. All cities in the joint coverage pool are jointly and (4) A covered loss resulting from the city's severally liable for all claims and expenses of the maintenance or use, including loading or pool. The amount of any liabilities in excess of unloading, of any trailer the city does not own but assets may be assessed to the members of the pool which is connected to an owned automobile. when a deficiency is identified. (5) Any covered liability claim against a party who 9. NUCLEAR HAZARD has been added by endorsement as an additional covered party under this covenant, unless that LMCIT, under this covenant, does not cover any loss endorsement specifically provides that this or claim for damage that is caused in part or in total covenant is excess. by nuclear reaction or radiation, or radioactive contamination, however caused. (6) A covered loss to a covered automobile as provided by the Municipal Automobile Physical 10. CONCEALMENT OR FRAUD Damage Coverage. This covenant is void if the city has intentionally (7) A covered loss to a builders risk property as provided by Buildings in the or misrepresented any material fact or p Y gs he Course of circumstance relating to this covenant. Construction, Alteration or Repair Coverage. 11. OTHER COVERAGE a. Except as provided in paragraph b., this coverage is excess over the following: (1) Any liability insurance policy of another party on which the covered party is an additional insured or additional named insured. (2) Any other valid and collectible insurance policy or other coverage,whether such other policy or coverage is primary, excess, contingent, or any other basis, unless that policy or coverage is specifically written to be excess over this covenant. LMCIT CCM (11-89)(Rev.11-01) Page 2 of 2 Covenant Number: MUNICIPAL PROPERTY,CRIME,BOND and CMC 25101 EQUIPMENT BREAKDOWN DECLARATIONS Coverage is provided C LMC 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: ONE YEAR From: 07/07/04 To: 07/07/05 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 $ 7,328,130 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 $ 10,000 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(11-86)(Rev.11/03) Page 1 of 3 f MC League o{Minnesota Cities Cities promoting excellence 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) MPCB(11-03) MPCB-110(11-02) 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) MPCB(11-03) LMCIT DEC-012(11-86)(Rev,11l03) Page 2 of 3 LMC League of Minnesota Cities Cities promoting excellence J Item 13. COVERAGE PART THREE - BOND Item 13A. BOND - EMPLOYEE DISHONESTY 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- 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. EQUIPMENT BREAKDOWN COVERAGE EQUIPMENT BREAKDOWN LIMIT: $ DEDUCTIBLE: $ ANY ONE ACCIDENT Item 16. COVERAGE PARTS,FORMS, SCHEDULES AND ENDORSEMENTS APPLICABLE TO THIS COVERAGE. LMCIT DEC-012(11-86)(Rev.11/03) Page 3 of 3 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 Page 1 of 1 ME063(11/95)(Rev. 11/01) 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. tncludes, 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 LMCIT ME079(11/01)(Rev.11/03) Page 1 of 2 (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 (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 • MUNICIPAL PROPERTY, CRIME AND BOND COVERAGE • LMCIT MPCB(11-99)(Rev. 11-03) LmC League of Minnesota Cities Cities promoting excellence J MUNICIPAL PROPERTY COVERAGE PART ONE • LMCIT MPCB(11-99)(Rev.11-03) MUNICIPAL PROPERTY, CRIME AND BOND COVERAGE H>HAT IT IS AND WHERE YOU CAN FIND IT INDEX • PROPERTY COVERAGE - PART ONE Laagna of Minnesota Cthar Cities promoting ex anx J PAGE SECTION I- PROPERTY COVERAGE 1-2 1. COVERAGE AGREEMENT 1 a. COVERED PROPERTY 1 b. PROPERTY NOT COVERED 1-2 SECTION II-ADDITIONAL 2-4 NAL COVERED LOSS OR DAMAGE 1. COVERAGE AGREEMENT 2 a. LOSS OF REVENUE,EXTRA EXPENSE AND EXPEDITING EXPENSE 2 b. DEMOLITION AND DEBRIS REMOVAL 2 c. LEASEHOLD INTEREST 2-3 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 3-4 e. ARSON REWARD 4 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 8-12 SECTION VII-DEFINITIONS 12-17 SECTION VIII- CONDITIONS 17-20 • LMCIT MFCB(11-99)(Rev.11-03) 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 We will pay for direct physical loss of or damage to do 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. IlI - 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 (3) Automobiles, vehicles, or self-propelled of Covered Property. machines that are licensed for use on public roads; (b) Property in the open described in the Schedule of Covered Property. (4) Bills,currency,deeds,evidences of debt,money, notes or securities; (c) Mobile property valued at $25,000 replacement cost or less if identified as covered (5) Builders risk property; on the Schedule of Covered Mobile Property;and mobile property valued at greater than $25,000 (6) Bridges,roadways, walks,patios or other paved replacement cost and is listed on the Schedule of surfaces, except golf course property; Covered Mobile Property. (7) Contraband or property in the course of illegal (2). We will pay for loss to newly acquired or transportation or trade; constructed building/contents or property in the open at any one location as described in (8) Cost of excavations, grading, backfilling or SECTION VI- LIMITS OF COVERAGE AND filling; VALUATION. (9) Land,subsoil,crops or lawns,except golf course (3) We will pay for loss to newly acquired or property; constructed mobile property as described in SECTION VI- LIMITS OF COVERAGE AND (10) Pilings,piers, wharves or docks; VALUATION. (11) Underground and buried pipes,flues or drains; (4) We will pay for loss to covered property in transit as described in SECTION VI - LIMITS OF (12) Foundations of buildings, structures, machinery COVERAGE AND VALUATION. or boilers if their foundations are below: LMCIT MPCB(11-99)(Rev. 11-03) Page 1 of 20 (a) The lowest basement floor; or (14) Transmission and distribution lines and poles and equipment that are usual to the transmission of (b) The surface of the ground, if there is no electricity. This does not include substations and basement; transformers. ' (13) Retaining walls that are not part of the covered (15) Trees and shrubs that are not within 100 feet of property; a building. SECTION II - ADDITIONAL COVERED LOSS OR DAMAGE 1. COVERAGE AGREEMENT (a) The excess of the fair rental value of similar premises over the actual rent payable by you as We will provide coverage for the following loss or. lessee (including any maintenance or operating damage unless the cause of loss or damage is not charges paid by the lessee)during the unexpired covered,as described under SECTION III-CAUSES term of the lease; and OF LOSS AND DAMAGES NOT COVERED. The amount we will pay for loss or damage is limited as (b) The rental income that would have been described in SECTION VI-LIMITS OF COVERAGE earned by you from sublease agreements,over and AND VALUATION. above the rental expense specified in the lease between you and the lessor. a. LOSS OF REVENUE, EXTRA EXPENSE AND EXPEDITING EXPENSE (3) When covered property is rendered wholly or partially untenantable by a direct physical loss or We will pay for the actual loss of revenue, extra damage and the lease is canceled by the lessor in expense or expediting expense sustained by you due to accordance with the conditions of the lease or by the necessary suspension of your operations during statutory requirements of the state in which the the period of recovery caused by direct physical loss damaged or destroyed covered property is located, or damage to any covered property. we will cover the pro rata proportion from the date of loss to expiration date of the lease (to be paid b. DEMOLITION AND DEBRIS REMOVAL without discount)on your interest in: We will cover the following expenses: (a) Improvements and betterments to covered property during the unexpired term of the lease that is not covered under any other section of Part (1) The cost of necessary demolition and removal of One of the covenant; or debris of covered property and non-covered . property from a covered location resulting from (b) The amount of advance rental paid byyou and direct physical loss or damage to covered not recoverable under the terms of the lease for property; or the unexpired term of the lease. (2) The cost of removal of debris of non-covered (4)' We will cover your leasehold interest when your property from your covered location which results covered property is rendered wholly or partially from a specified cause of loss. untenantable and the lease is canceled by the lease LEASEHOLD INTEREST or by statutory requirements of the state in which the damaged or destroyed covered property is :1) We will provide coverage for leasehold interest located; resulting from direct physical loss or damage to (5) We will cover your leasehold interest for the first covered property, three months succeeding the date of the loss and :2) Leasehold interest means: the net lease interest for the remaining months of the unexpired lease. We will not be liable,for any . -MCIT MPCB(11-99)(Rev. 11-03) Page 2 of 20 increase of loss that may be occasioned by the of direct physical loss or damage. suspension, lapse,or cancellation of any license, or by the exercising of any option to cancel the b. POLLUTANT CLEANUP AND lease. REMOVAL d. ACCOUNTS RECEIVABLE (1) We will provide coverage for pollutant cleanup and removal resulting from direct physical loss or We will pay for loss or damage to your accounts damage to covered property, receivable caused by direct physical loss or damage to your accounts receivable. (2) We will cover the costs of testing that are incurred in the course of extracting pollutants from land or e. VALUABLE PAPERS AND RECORDS water and any expense incurred to test for, monitor,or assess the existence,concentration,or We will pay for loss or damage to valuable papers and effects of pollutants. records caused by direct physical loss or damage to your valuable papers and records. c. ERRORS f. UTILITY SERVICES We will pay for loss to any covered property if the loss is not covered solely because of: (1) We will pay for loss or damage to covered property caused by an interruption of a utility (1) Any inadvertent error in the description or service to your covered property. location of the building/contents,property in the open, mobile property, or builders risk property (2) We will pay for the actual loss of revenue, extra covered by the covenant,which inadvertent error expense or expediting expense sustained by you existed at the inception date of the covenant; or due to the necessary suspension of your operations during the period of recovery caused (2) Any inadvertent error in the description or by an interruption of a utility service to your location of the building/contents,property in the covered property. open, mobile property, or builders risk property in endorsements to the covenant; or This interruption must be caused by direct physical loss or damage to utility service property. (3) Failing through an inadvertent error to schedule (a) any building/contents,property in the open, 2. COVERAGE AGREEMENT mobile property, or builders risk property owned by the city at the inception of the covenant,or(b) We will provide coverage for the following loss or any newly acquired or constructed building/ damage. The amount we will pay for loss or damage contents,property in the open,mobile property or is limited as described in SECTION VI- LIMITS OF builders risk property during the term of the COVERAGE AND VALUATION. coverage document. a. ASBESTOS CLEANUP, ABATEMENT (4) It is a condition of this coverage that such AND REMOVAL inadvertent error shall be reported and corrected when discovered. (1) We will pay for your expense to clean up,abate or remove from covered property asbestos particles d. RENTAL REIMBURSEMENT that are discharged, dispersed, or released. We will pay for rental reimbursement expenses (2) The expenses to clean up, abate or remove incurred by you for the rental of mobile property that asbestos particles will be paid only if such was a result of a covered loss to your mobile property. expenses are incurred within 90 days of the date -cl) No deductibles apply to this coverage. • LMCIT MPCB(11-99)(Rev.11-03) Page 3 of 20 (2) This coverage does not apply while there is spare (3) Reimbursement of extraordinary expense or reserve equipment available to you for your payment: operations. For any claims for extraordinary expense which e. ARSON REWARD are paid under this section, the city must reimburse LMCIT as provided in this paragraph. In the event that a covered fire loss was the result of The amount to be paid to LMCIT will equal the an act of arson,we will reimburse you for rewards you amount needed to reimburse LMCIT for the full pay for information leading to convictions for that act amount of any claims that LMCIT pays under this of arson. section. The city may,at its discretion, reimburse LMCIT through payment of equal annual f. EXTRAORDINARY EXPENSE installments over a period of up to five years from the date the claim is paid. Each installment will (1) Extraordinary expense payment: be billed and payable at the same time as the city's annual renewal premium for LMCIT property/ As a benefit associated with being a member of casualty coverage. If the city ceases to be a LMCIT's property/casualty program, upon member of the LMClTproperty/casualty pro gram, submission of a claim LMCIT will pay for any the full amount, together with any accrued extraordinary and unanticipated cost or expense interest,will be immediately due and payable on the city incurs which: the date that the city ceases to be a member. (a) Is necessary for the purpose of protecting the No interest will apply if reimbursement is made public health and safety,protecting city property, within one year of the date the cost or expense or meeting the city's legal obligations; and was incurred. If the city elects to pay the reimbursement in more than one annual (b) Is not covered by any other provision of this installment, interest at the rate of 3% annually covenant,any other LMCIT coverage covenant,or shall be included in the amount owed beginning any insurance policy, one year from the date the cost or expense was incurred. The city mast provide to LMCIT any information or documentation needed or requested in order to (4) Termination of benefits: determine if these conditions are met. The determination of whether these conditions are met The LMCIT Board of Trustees may terminate the will be at LMCIT's sole discretion. benefit provided under this section at any time upon 10 days written notice to the city, if the (2) Limit: Board-determines that it is necessary to protect the interests of LMCIT or its member cities. LMCIT will not pay more than $100,000 for claims under this section during the coverage Termination of this coverage shall not affect any year, regardless of the number of claims, claims that the city has submitted to LMCIT occurrences or incidents. before the effective date of termination of coverage. SECTION III - CAUSES OF LOSS AND DAMAGES NOT COVERED 1. CAUSES OF LOSS NOT COVERED damage is excluded regardless of any other cause or event that contributes concurrently or in any sequence We will not pay for loss or damage caused directly or to the loss. .ndirectly by any of the following. Such loss or -MOT MPCB(1/-99)(Rev. 11-03) Page 4 of 20 • a. WATER 2. DAMAGES NOT COVERED (1) Flood, surface water, waves, tides, tidal waves, We will not pay for the following damages: overflow of any body of water,or their spray, all whether driven by wind or not; a. Damage to your electrical devices, appliances or wires caused by artificially generated electric (2) Mudslide or mudflow; current including electric arcing. (3) Water that backs up or overflows from a sewer, This exclusion does not apply to computer • drain or sump; or equipment data and media. (4) Water under the ground surface pressing on, or b. Damage from the discharge, dispersal, seepage, flowing or seeping through: migration,release or escape of pollutants. (a) Foundations,walls, floors or paved surfaces; This exclusion does not apply if the discharge, dispersal, seepage,migration,release or escape of (b) Basements, whether paved or not; or pollutants is itself caused by a specked cause of loss. (c) Door, windows or other openings; This exclusion does not apply to pollutant cleanup 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 destruction b. NUCLEAR HAZARD 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 loss (1) War, including undeclared or civil war; or damage. (2) Warlike action by a military force, including We will also pay for loss or damage caused by or action in hindering or defending against an actual resulting from the explosion of gases or fuel within or expected attack,by any government, sovereign the flues or passages through which the gases of or other authority using military personnel or other combustion pass. agents; or e. The cost to repair or replace faulty workmanship, (3) Insurrection, rebellion, revolution, usurped materials, construction or design. power,or action taken by governmental authority in hindering or defending against any of these, LMCIT MPCB(11-99)(Rev.11-03) Page 5 of 20 This exclusion does not apply to computer (4) Wear and tear. equipment data and media. This exclusion does not apply if the above damage f. The cost to repair or replace. mechanical results from a specified cause of loss. breakdown,including rupture or bursting caused by centrifugal force. The exclusion for damages caused by disease does not apply to police dogs. This exclusion does not apply to computer equipment data and media. h. Unexplained loss, mysterious disappearance, or shortage disclosed upon taking inventory. g. Damages caused by: i. Seizure or destruction of property by order of (1) Rust, corrosion, decay, deterioration, disease, governmental authority. hidden or latent defect, or any quality in property that causes it to damage or destroy itself; But we also will pay for acts of destruction ordered by governmental authority and taken at the time of (2) Mold or other fungus or fungi,fungal spores,or a fire to prevent its spread, if the fire would be fungal fragments or metabolites, such as covered under this coverage part. rnycotoxins or volatile organic components; j. The cost of fire department service charges that the (3) Settling, shrinking or expanding; or city is legally obligated to pay. SECTION IV - WATER AND SUPPLEMENTAL FLOOD COVERAGE 1. COVERAGE AGREEMENT (d) Water under the ground surface pressing on,or flowing or seeping through: a. For your building/contents,property in the open,or builders riskproperty subject to the exclusions and i) Foundations, walls, floors or paved limitations in paragraph b. below, we will pay for: surfaces; (1) Direct physical loss of or damage to your ii) Basements, whether paved or not; or building/contents,property in the open,or builders riskproperty described in the Schedule of Covered iii) Doors,windows or other openings. Property; and But if loss or damage by fire, explosion or (2) Any additional covered losses or damages as sprinkler leakage results, we will not pay for that described in SECTION II - ADDITIONAL resulting loss or damage under this SECTION IV. COVERED LOSS OR DAMAGE as a result of direct physical loss of or damage to your building/ b. (1) For any building/contents, property in the contents, property in the open, or builders risk open, or builders risk property for which Code A property which are caused by: is shown on the Schedule of Covered Property,no additional exclusions apply to the coverage (a) Flood, surface water, waves, tides, tidal provided under this section. waves, overflow of any body of water,or their spray,all weather driven by wind or not; (2) For any building/contents, property in the open, or builders riskproperty for which Code B is (b) Mudslide or mudflow; shown on the Schedule of Covered Property, the coverage provided by this section is specifically in (c) Water that backs up or overflows from a addition to and in excess of the applicable National sewer, drain or sump; or Flood Insurance Program coverage. • .MCIT MPCB(11-99)(Rev.11-03) Page 6 of 20 (3) For any building/contents, property in the ALTERATION, OR REPAIR COVERAGE, that open,or builders riskproperty for which Code C is are not shown on the Schedule of Covered shown on the Schedule of Covered Property, we Property, we will pay any loss or any damage as if will not pay for any loss or damage resulting from the water and supplemental flood coverage was any occurrence which would be considered a flood shown as Code C on the Schedule of Covered for the purpose of the National Flood Insurance Property. Program. (4) For any newly acquired or constructed covered Z. LIMITS OF COVERAGE property, covered property in transit, or covered The maximum amount we will pay for all losses or property that is temporarily at an unscheduled damages covered under this SECTION IV is limited as location, as provided by SECTION I, 1.a., described in SECTION VI-LIMITS OF COVERAGE COVERED PROPERTY;or builders riskproperty AND VALUATION. as provided by SECTION V, 1.,BUILDINGS IN THE COURSE OF CONSTRUCTION, 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 to We will not cover the following types of property: 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 d. We will also cover the interest of contractors and FLOOD COVERAGE subcontractors in builders risk property during construction to the extent of the city's obligation We will pay for loss or damage to your builders risk for a covered physical loss or damage to such property as described in SECTION IV - WATER covered property as specified in the applicable AND SUPPLEMENTAL FLOOD COVERAGE. contract. Such interest of contractors and subcontractors is limited to the property for which 5. ADDITIONAL DEFINITIONS they have been hired to perform such work and such interest will not extend to any loss of revenue, Project cost means the cost of construction,materials, extra expense, or expediting expense sustained by and architectural, legal, financial and other the contractor and subcontractors as provided by professional services relating to the construction, this covenant. alteration of repair project. LMC1T MPCB(11-99)(Rev. 11-03) Page 7 of 20 SECTION VI - LIMITS OF COVERAGE AND VALUATION 1. LIMITS OF COVERAGE (3) Golf course property: $100,000 per occurrence for direct damage to golf course a. We will not pay for more than the general limit per property and debris removal of covered property occurrence specified in Item 5 of the Declarations. and non-covered property. b. We will not pay for more than the specific property f. The sublimits stated below are in addition to the limit for loss or damage to any buildings/contents, general limit per occurrence: property in the open or builders risk property in any one occurrence. (1) Newly acquired or constructed building/ contents or property in the open at any one c. We will not pay for loss or damage in any one location: $5,000,000 occurrence until the amount of loss or damage exceeds the Deductible in Item 7 of the (2) Newly acquired or constructed mobile Declarations. We will then pay the amount of loss property: $250,000 per unit or damage in excess of the Deductible, up to the applicable limits of coverage: g. The limits for the additional covered loss or damage are specified in Item 5 of the Declarations (1) The Deductible applies against the total loss and are listed below. The limits are in addition to - incurred by you from any one occurrence, the general limit per occurrence and the specific regardless of the number of locations involved. property limit: (2) If two or more deductibles in Item 7 of the (1) Asbestos clean-up, abatement and removal: Declarations for property coverage apply to one $250,000 per location occurrence for you, the total to be deducted will not exceed the largest deductible applicable. (2) Loss of revenue, extra expense and expediting expense: $5,000,000 per occurrence d. The sublimits stated below are per occurrence and are part of and not in addition to the specific (3) Demolition and debris removal: For each property limit: occurrence,. an amount equal to 25% of the estimated replacement cost of the covered property (1) Computer equipment data and media: as stated in the Schedule of Covered Property. $1,000,000 However, if there is no direct physical loss or damage to covered property, the most we will pay (2) Fine arts: $500,000 is $50,000 per occurrence. (3) Personal effects: $25,000 per occurrence,but These limits do not apply to golf course property. not to exceed$2,500 per employee (4) Extraordinary expense: $100,000 per annual (4) Business personal effects: $25,000 per aggregate occurrence,but not to exceed$5,000 per employee (5) Leasehold interest: $500,000 per location The sublimits stated below are per occurrence and are part of and not in addition to the general limit (6) Pollutant cleanup and removal: $10,000 per per occurrence: location (1) Covered property in transit: $250,000 (7) Errors: 90%of the loss,subject to $500,000 per occurrence (2) Unscheduled location: $500,000 (8) Rental reimbursement: $25,000 per annual aggregate ..MOOT MPCB(11-99)(Rev. 11-03) Page 8 of 20 (9) Arson reward: $5,000 per fire loss (b) Replacement cost means the cost to repair or replace covered property that is damaged or (10)Accounts receivable: $500,000 per location destroyed,using new materials of equivalent size, kind and quality. Replacement cost includes any (11) Valuable papers and records: $500,000 per additional costs necessary to comply with location building codes. (12) Utility Services: $100,000 per occurrence (2) Adjustment: h. The limits for water and supplemental flood Except as provided in b. below, in the event of coverage are specified in Item 5 of the Declarations direct physical loss of or damage to your covered g P PY g Y and are stated below: property, the basis of adjustment will be as follows: (1) $500,000 per occurrence. (a) If the covered property is destroyed and is (2) The water and supplemental flood coverage replaced or rebuilt,LMCIT will pay the following: annual aggregate is the most we will pay for water and supplemental flood coverage loss during the (i) If,the covered property is replaced or annual coverage period, rebuilt at the same location, the replacement cost of the covered property with similar size (3) The sublimits stated below are per occurrence and construction; and are part of and-not in addition to the per occurrence limit: -- - (ii) If the covered property is replaced or rebuilt at a different location,the replacement (a) Golf course property: $100,000 cost cannot be greater than if you would have rebuilt at the same location with similar size (b) Property in transit: $250,000 and construction; or is The limits for Buildings in the Course of (iii) If the covered property is replaced or Construction,Alteration,or Repair Coverage are: rebuilt at the same location with different size or construction, the replacement cost cannot (1) Any one location: $2,000,000 be greater than if you would have rebuilt at the same location with similar size and (2) The limits stated below are part of and not in construction. addition to the any one location limit: (b) If the covered property is destroyed and is not (a) Property in transit: $250,000 replaced or rebuilt, LMCIT will pay the fair market value of the property at the time of the (b) Temporary location: $500,000 loss. 2. LOSS VALUATION (c) If the covered property is damaged but not destroyed and is repaired, LMCIT will pay the a. GENERAL PROVISIONS actual replacement cost to repair the property plus the amount of the reduction, if any, in the fair (1) Definitions: market value of the repaired property. (a) Covered property is deemed to be destroyed (d) If the covered property is damaged but not if the replacement cost to rebuild or replace the destroyed and remains in service without being property is less than the sum of the replacement repaired, LMCIT will pay the amount of the cost to repair the property plus the reduction, if reduction, if any, in the fair market value of the any, in the fair market value of the repaired damaged property. property. • LMCIT MPCB(11-99)(Rev.11-03) Page 9 of 20 (e) If the covered property is damaged but not required to offset amounts you are unable to destroyed and the city elects not to repair it but to collect pending our payment of these amounts; raze or otherwise dispose of the property,LMCIT collection expenses in excess of your normal will pay to the city the estimated replacement cost collection expenses that are made necessary by to repair the property. the loss; and other reasonable expenses you incur to re-establish your accounts receivable. If you LMCIT will not pay you more than your financial • are unable to establish the amount of accounts interest in the covered property. receivable outstanding at the time of the loss, we will use the average monthly amounts of accounts (3) Limitations: receivable for the 12 months immediately preceding the month in which the loss occurs, In any event,LMCIT will not pay you more than adjusting to reflect the normal business during the the following: loss month. (a) Your financial interest in the covered (4) Fine arts: property; or For fine arts which are destroyed,LMCIT will pay (b) The fair market value of the covered property, the fair market value, regardless of whether the if the covered property is vacant property, covered property is replaced or not. 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 of the damaged property,whichever is less. copy 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 must be able to perform the same function as the cost 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 amounts due from your customers that you are of the police dog,whichever is less. unable to collect; interest charges on any loan .MCIT MPCB(11-99)(Rev.11-03) Page 1 0 of 20 (7) Trees and shrubs: iii) Deeds, liens or contracts. (a) For a tree or shrub which is destroyed,LMCIT (2) The amount of extra expense loss LMCIT will pay will pay the actual cost to replace it with a tree or will be determined based on: shrub of similar type and of a size that is normally considered to be reasonable and practical to (a) All expenses that exceed the normal operating transplant,regardless of whether the tree or shrub expenses that would have been incurred by is replaced or not. operations during the period of recovery if no direct physical loss or damage had occurred. We (b) For a tree or shrub that is damaged but not will deduct from the total of such expenses: destroyed,LMCIT will pay the actual cost of any service, treatment, or repair that is actually i) The salvage value that remains of any performed. property bought for temporary use during the period of recovery once operations are But, we will not pay more than the actual cost to resumed; replace it with a tree or shrub of similar type and of a size that is normally considered to be ii) Any extra expense that is paid for by other reasonable and practical to transplant. insurance,except for insurance that is written subject to the same plan,terms and conditions (8) Business personal effects: and provisions as this insurance; and Notwithstanding the provisions of paragraph 11. (b) All necessary expenses that reduce the of the Coiruuon Conditions,LMCIT coverage for business income loss that otherwise would have business personal effects is primary with respect been incurred. to any coverage provided under the employee's homeowner's insurance or similar coverage. (3) We will reduce the amount of your: c. LOSS OF REVENUE, EXTRA EXPENSE (a) Loss of revenue loss,other than extra expense AND EXPEDIT1NGEXPENSE PROVISIONS or expediting expense to the extent you can resume your operations, in whole or in part, by (1) The amount of loss of revenue loss LMCIT will using damaged or undamaged property(including pay, will be determined based on: merchandise or stock)at the described location or elsewhere. (a) The gross revenue of the city before the direct physical loss or damage occurred; (b) Extra expense or expediting expense loss to the extent you can return your operations to (b) The likely gross revenue of the city if no normal and discontinue such extra expense or physical loss or damage had occurred; expediting expense. (c) The operating expenses, including payroll However, if you do not resume operations, or do expenses,necessary to resume operations with the not resume operations as quickly as possible,we same quality of service that existed just before the will pay based on the length of time it would have direct physical loss or damage; and taken to resume operations as quickly as possible. (d) Other relevant sources of information, d. APPRAISAL AND ARBITRATION including: Either party may make a written demand for i) Your financial records and accounting arbitration if the city and LMCIT disagree on any of procedures; the following: ii) Bills, invoices and other vouchers; and (1) The fair market value of covered property prior to the loss or damage; LMCIT MPCB(11-99)(Rev.11-03) Page 11 of 20 (2) The fair market value of covered property after appointees will each separately state their the loss or damage; respective estimates of the value or cost which is in question. If they fail to agree,they will submit (3) The fair market value of covered property after their differences to the umpire. A decision agreed repair; or to by any two will be binding. (4) The estimated cost to repair the covered property. Each party will: In this event, each party will select a competent and impartial person. Each appointee shall be a (a) Pay the cost of its own appointee; and professional appraiser or `other person with appropriate professional expertise. The two (b) Share equally the expense of the umpire and appointees will select an umpire. If they cannot any other expenses related to the arbitration agree, either may request that selection be made process. by a judge of a court having jurisdiction. The two SECTION VII - DEFINITIONS 1. Accounts receivable means: (2) Alterations or repair of the city's existing building, or a. All amounts due from your customers that you are unable to collect and there is a loss; (3) Addition to the city's existing building. b. Interest charges on any loan required to offset (4) Builders risk property also includes: amounts you are unable to collect pending our payment of these accounts; (a) Foundation of the building or structure in the course of construction or an addition to the c. Collection expenses in excess of your normal city s existing building; collection expenses that are made necessary by the loss; and (b) Materials, equipment, and supplies used for construction,alteration or repair,provided d. Other reasonable expenses thatyou incur to re- such property is intended to be permanently in establish your records of accounts receivable. or on the builders risk property; and e. Accounts receivable does not include: (c) Temporary structures built or assembled on location, including cribbing, scaffolding (1) The amount of the accounts that you are and construction forms used in the course of able to re-establish or collect; construction or alterations or repair of the builders risk property. (2) An amount to allow for probable bad debts that you are normally unable to collect; and 4. Building means the building or structure including: (3) All unearned interest and service charges. a. Completed additions; 2. Automobile means a land motor vehicle, trailer or b. Permanently installed fixtures, machinery and semi-trailer designed for travel on public roads. equipment; 3. Builders risk property means: c. Outdoor fixtures; (1) Building or structure in the course of d. Contents owned by you that are used to construction; maintain or service the building or structure or its premises, including: • LMCIT MPCB(11-99)(Rev.11-03) Page 12 of 20 (1) Fire extinguishing equipment; accepting information, processing it according to plan and producing the desired results. It includes: (2) Outdoor furniture; a. Air conditioning,fire protection equipment and (3) Floor coverings; and electrical equipment used exclusively in your computer operations; (4) Appliances used for refrigerating, ventilating,cooking,dishwashing or laundering; b. Facts,concepts or instructions in a form usable or for communications; 5. Building/contents, as described in the Schedule of c. Interpretation or processing by automatic Covered Property,means the following: means; or a. Building; or d. Computer programs and materials on which the data is recorded. b. Contents. 9. Contents means property located in or on the 6. Business personal effects means personal property building described in the Declarations or in the of your employees that is used to maintain the open (or in a vehicle) within 140 feet of the operations of the city. described building, consisting of the following: 7. City means governmental body or entity first a. Furniture and fixtures; named in the Declarations. For purposes of this - - coverage,city includes relief associations. b. Machinery and equipment; Unless specifically named in the Declarations,city c. Stock; shall not include: d. All other contents owned by you and used in a. Gas, electrical, or steam utilities commission; your municipal operations; b. Port authority, housing and redevelopment e. Labor, materials or services furnished or authority,economic development authority,area or arranged by you on contents of others; municipal redevelopment authority, or similar agency; f. Your use interest as tenant in improvements and betterments. Improvements and betterments c. Municipal power agency; are fixtures,alterations,installations or additions: d. Municipal gas agency; _ (1) Made a part of the building or structure you occupy but do not own; and e. Hospital or nursing home board or commission; (2) You acquired or made at your expense but f. Airport commission; cannot legally remove. g. Welfare or public relief agency; g. Contents of others that are in your care, custody and control. h. School board; or However, our payment for loss or damage to i. Joint powers entity. contents will be for the account of the owner of the property. 8. Computer equipment, data and media means a network of machine components capable of h. Trees and shrubs; • LMCIT MPCB(11-99)(Rev.11-03) Page 13 of 20 i. Accounts receivable; cost of temporary repair and expediting the repair of damaged covered property, overtime and j. Computer equipment data or media; express freight or other rapid means of transportation. k. Valuable papers and records; 12. Extra expense means the excess total cost 1. Personal effects; or necessarily incurred to continue your operations as reasonably as practicable during the period of m.Fine arts. recovery that is over and above the cost that would normally have been incurred to conduct the But,contents does not mean mobile property. operations during the same period had no loss or damage occurred. It includes: 10. Employee means: a. Extra expense to avoid or minimize the a. A person whom you compensate directly by suspension of business and to continue salary, wages or commissions, and who you have operations: the right to direct or control while performing duties for you; (1) At the described location; or b. Member of the city council; (2) At a replacement location or at temporary locations, including: c. Member of a city board,-commission, or committee which is not excluded by the definition (a) .Relocation expenses; and of city; (b) Costs to equip and operate the d. Elected or appointed official of the city; replacement or temporary locations. e. Volunteer person or organization while acting b. Extra expense to minimize the suspension of on behalf of the city and subject to the city's business if you cannot continue operations. direction and control; c. Extra expense to: f. Other authorized person or agent of the city while acting on behalf of the city, but excludes (1) Repair or replace any covered property;or independent contractors; (2) Research, replace or restore the lost g. City relief association members, officers, and information on damaged valuable papers and employees; or records; h. Any natural person employed by an to the extent it reduces the amount of loss that employment contractor while that person is otherwise would have been payable under this subject to your direction and control and covenant. performing services for you excluding, however, any such person while having care and custody of 13. Fine arts means property or articles of artistic or property outside the premises. historical value including paintings, etchings, pictures, tapestries, statuary, marbles, bronzes, But employee does not mean any agent, broker, porcelain,rare glass, antique silver,china,books factor, commission merchant, consignee, and manuscripts,rugs and similar articles. independent contractor or representative of the same general character. 14. Golf course property means bridges, paved roadways, paved cart paths and other paved 11. Expediting expense means the reasonable extra surfaces, shelters, restrooms, ball washers, • I LMCIT MPCB(11-99)(Rev.11-03) Page 14 of 20 screens, flags,markers, signs, tees, fairways and d. Vehicles and its equipment whether self- greens. propelled or not,maintained primarily to provide mobility to permanently mounted equipment; 15. Joint powers entity means an operating entity • created by two or more governmental units e. Tools,including protective clothing and gear, entering into an agreement as provided by statute and other similar property; for the joint exercise of governmental powers.An intergovernmental agreement will be deemed to f. Business personal effects; or create a joint powers entity if the agreement establishes a board with the effective power to do g. Mobile property in your care, custody and any of the following, regardless of whether the control. specific consent of the constituent governmental units may also be required: 20. Newly acquired or constructed means that the city has acquired or taken possession of the property a. To receive and expend funds; during the current covenant period. b. To enter into contracts; 21. Occurrence means an accident or event that causes a direct physical loss or damage to covered c. To hire employees; property. Any continuous accident or event that causes more than one direct physical loss or d. To purchase or otherwise acquire or hold real damage to covered property during a 72 hour or personal property; or period constitutes an accident or event as a single occurrence. e. To sue or be sued. 22. Operations means: 16. LMCIT means the League of Minnesota Cities Insurance Trust. a. Your city activities occurring at the described location;or 17. Location means: b. The tenantability of the described location. a. The site of any covered building/contents, property in the open,or builders risk property;or 23. Our means the League of Minnesota Cities Insurance Trust. b. The site of any covered newly acquired or constructed building/contents or property in the 24. Period of recovery means the period of time that: open; a. Begins immediately after the time Of direct 18. Loss of revenue means gross revenue, including physical loss or damage to covered property. rental value,less charges and expenses that do not necessarily continue. b. Ends on the earlier of: 19. Mobile property means: (1) The date covered property is actually repaired,rebuilt or replaced and operations are a. Machinery or equipment designed for use resumed; and your operations would generate principally off public roads; the loss of revenue amount that would have existed if no direct physical or damage had b. Police dogs; occurred; or c. Vehicles maintained for use solely on or next (2) 60 consecutive days after the date when to locations owned or rented by you and not the covered property is actually repaired, licensed for highway use; rebuilt or replaced and operations are resumed. LMCIT MPCB(11-99)(Rev.11-03) Page 15 of 20 However the expiration date of the covenant rrant will (1) The cost of filling sinkholes; or not cut short the .f recovery. o P ry. (2) Sinking or collapse of land into man-made 25. Personal effects means personal property ofyour underground cavities. employees, other than business personal effects. b. Falling object does not include loss or damage 26. Pollutants means any solid, liquid, gaseous or to: thermal irritant or contaminant,including smoke, vapor, soot, fumes, acids, alkalis, chemicals and (1) Property in the open; or waste. Waste includes materials to be recycled, reconditioned or reclaimed. (2) The interior of a building or structure, or property inside a building or structure, unless 27. Property in the open means: the roof or an outside wall of the building or structure is first damaged by a falling object. a. Equipment such as,but not limited to,benches, fences,light poles,playground equipment,statues, c. Water damage means accidental discharge or scoreboards,traffic signals or signs that are in the leakage of water or steam from any part of a open and are not part of a building, or system or appliance containing water or steam. b. Golf course property. 31. Stock means merchandise held in storage or for sale, raw materials and in process or finished 28. Rental value means the sum of: goods,including supplies used in their packing or shipping. a. The total anticipated gross rental income from tenant occupancy of the covered property as 32. Us means the League of Minnesota Cities furnished and equipped by you; and Insurance Trust. b. The amount of all continuing charges that are 33. Utility service property means any of the the legal obligation of the tenant and that would following types of property supplying water, otherwise be your obligation; and communication service or power to covered property: c. The fair rental value of any portion of the covered property that you occupy. a. Pumping stations or water mains supplying water; 29. Specific property limit means 150% of the estimated replacement cost of the covered b. Equipment supplying communication services; property as stated in the Schedule of Covered or Property. c. Utility generation plants, switching plants, 30. Specified causes of loss means fire; lightning; substations,transformers, and transmission lines explosion; windstorm or hail; smoke; aircraft or supplying electricity, steam or gas. vehicles; riot or civil commotion; vandalism; leakage discharge from fire extinguishing 34. Vacant property means: equipment; sinkhole collapse; volcanic action; falling objects; weight of snow,ice or sleet; or a. Property owned by the city is deemed to be water damage: vacant property if for a period of 60 consecutive days less than 31% of the building's total square a. Sinkhole collapse means the sudden sinking or footage is either used by the city for customary collapse of land into underground empty spaces operations or is leased out. created by the action of water on limestone or dolomite.This cause of loss does not include: • .MCIT MPCB(11-99)(Rev. 11-03) Page 16 of 20 b. Property rented or leased to the city is deemed printed or written documents, manuscripts or to be vacant property if for a period of 60 records, including abstracts, books, deeds, consecutive days the property does not contain drawings, films,maps and mortgages. enough contents to conduct customary operations. But valuable papers and records does not mean However,the following are not considered vacant money or securities, converted data,programs or property: instructions used in your data processing operations, including the materials on which the (1) Builders risk property; or data is recorded. (2) A building or structure which is used and 36. We means the League of Minnesota Cities occupied,and which is designed to be used and Insurance Trust. occupied, on an occasional, intermittent, or seasonal basis. 37. You means the city shown in the Declarations. 35. Valuable papers and records means inscribed, 38. Your means the city shown in the Declarations. SECTION VIII - CONDITIONS 1. CONTROL OF PROPERTY 4. NO BENEFIT TO BAILEE - Any act or neglect of any person other than you - No person or organization, other than you, having beyond your direction or control will not affect this custody of covered property will benefit from this coverage. coverage. The breach of any condition of this coverage part at 5. COVERAGE PERIOD, COVERAGE any one or more locations will not affect coverage at TERRITORY any location where,at the time of loss or damage,the • ,breach of condition does not exist. Under this coverage part: 2. COVERAGE UNDER TWO OR MORE a. We cover loss or damage commencing: COVERAGES (1) During the coverage period shown in the If two or more of this covenant's coverages apply to Declarations; and the same loss or damage, we will not pay more than the actual amount of the loss or damage. (2) Within the coverage territory. 3. LEGAL ACTION AGAINST US b. The coverage territory is: No one may bring legal action against us under this (1) The United States of America (including its coverage part unless: territories and possessions); a. There has been full compliance with all of the (2) Puerto Rico; and terms of the coverage part;and (3) Canada. b. The action is brought within 2 years after the date on which the direct physical loss or damage 6. LOSS CONDITIONS occurred. a. Abandonment: You cannot abandon your property to us. • LMCIT MPCB(11-99)(Rev.11-03) Page 17 of 20 • b. Duties in the event of loss or damage: or damaged property if other than you. If we pay the owners, such payments will satisfy your You must see that the following are done in the claims against us for the owners' property. We event of loss or damage to covered property: will not pay the owners more than their financial interest in the covered property. (1) Notify the police if a law May have been broken. d. Recovered Property: (2) Give us prompt notice of the loss or damage. If either you or we recover any property after loss Include a description of the property involved. settlement, that party must give the other prompt notice. At your option, the property will be (3) As soon as possible, give us a description of returned to you. You must then return to us the how, when and where the loss or damage amount we paid to you for the property. We will occurred. pay recovery expenses and the expenses to repair the recovered property, subject to the amount (4) Take all reasonable steps to protect the applying under this covenant. covered property from further damage. If feasible, set the damaged property aside and in the best 7. PREMIUMS AND PREMIUM possible order for examination. Also keep record ADJUSTMENTS of your expenses, for consideration in the settlement of the claim. a. You agree to furnish us with a schedule of (5) At our request, give us complete inventories - buildings/contents, property in the open and of the damaged and undamaged property. Include mobile property valued at greater than $25,000, quantities, costs,values,and amount claim of loss and builders risk property prior to the beginning demand. of each covenant period. b. These schedules must include all buildings/ (6) Permit us to inspect the property and records contents, property in the open and mobile proving the loss or damage. property valued at greater than $25,000, and (7) If requested, permit us to question you under builders risk property that was covered by your oath at such times as may be reasonably required prior covenant but was not described in the prior about any matter relating to this covenant or your covenant's Schedule of Covered Property or claim, Schedule of Covered Mobile Property. m, including your books and records. In such event,your answers must be signed. c. The initial annual premiums will be based upon these schedules and the appropriate replacement (8) Send us'a signed, sworn statement of loss cost values. containing the information we request to settle the - claim. You must do this within 60 days after our d. You will pay us additional premium if the request. We will supply you with the necessary following property is added during the covenant forms. period: (9) Cooperate with us in the investigation or (1) Building/contents or property in the open settlement of the claim. with a replacement cost value of greater than Loss Payment: $5,000,000; (2) Mobile property with a replacement cost (1) We will give notice of our intentions within 30 value of greater than $250,000; days after we receive the sworn statement of loss. (2) We may adjust losses with the owners of lost (3) Builders risk property with a project cost of greater than$2,000,000;or MCIT MPCB(11-99)(Rev.11-03) Page 18 of 20 (4) Additional covered loss or damage limits, or buildings or structures to each mortgage holder property sublimits. shown in the Declarations in their order of precedence,as interests may appear. e. We will return premium to you if the following property is deleted during the covenant period: c. The mortgage holder has the right to receive loss payment even if the mortgage holder has started (2) Building/contents or property in the open with foreclosure or similar action on the building or a replacement cost value of greater than structure. $5,000,000; d. If we deny your claim because of your acts or (2) Mobile property with a replacement cost value because you have failed to comply with the terms of greater than$250,000; of this coverage part, the mortgage holder will still have the right to receive loss payment if the (3) Builders risk property with a project cost of mortgage holder: greater than$2,000,000; or (1) Pays any premium due under this coverage (4) Additional covered loss or damage limits, or part at our request if you have failed to do so; property sublimits. (2) Submits a signed, sworn proof of loss within 8. CANCELLATION 60 days after receiving notice from us of your failure to do so; and a. You-may cancel Part One of this covenant. You must mail or deliver not fewer than 30 days •(3) Has notified us of any change in ownership, advance written notice to us stating when the occupancy or substantial change in risk known to cancellation is to take effect. the mortgage holder. b. We may cancel Part One of this covenant. We must All of the terms of this coverage part will then mail or deliver to you not fewer than 30 days apply to the mortgage holder. advance written notice stating when the cancellation is to take effect. Mailing that notice e. If we pay the mortgage holder for any loss or to you at your mailing address shown in the damage and deny payment to you because of your Declarations will be sufficient to prove notice. acts or because you have failed to comply with However, we may cancel with 10 days written the terms of this coverage part: notice for nonpayment of premium. (1) The mortgage holder's rights under the c. The covenant period will end on the day and hour mortgage will be transferred to us to the extent of stated in the cancellation notice. - the amount we pay; and d. If Part One of this covenant is canceled, we will (2) The mortgage holder's right to recover the send you any premium refund due. If we cancel, full amount of the mortgage holder's claim will the refund will be pro rata. If you cancel, the not be impaired. At our option, we may pay to refund may be less than pro rata, computed in the mortgage holder the whole principal on the accordance with our current cancellation rules. mortgage plus any accrued interest. In this event, The cancellation will be effective even if we have your mortgage and note will be transferred to us not made or offered a refund. and you will pay your remaining mortgage debt to us. 9. MORTGAGE HOLDERS f. If we cancel this covenant, we will give written a. The term mortgage holder includes trustee. notice to the mortgage holder at least: b. We will pay for covered loss of or damage to (1) 10 days before the effective date of • LMCIT MPCB(11-99)(Rev.11-03) Page 19 of 20 cancellation if we cancel for your nonpayment of (2) A business firm: premium; or (a) Owned or controlled by you; or (2) 30 days before the effective date of cancellation if we cancel for any other reason. (b) That owns or controls you; or g. If we do not renew this covenant, we will give (c) Your tenant. written notice to the mortgage holder at least 10 days before the expiration date of this covenant. This will not restrict your covenant. 10. TRANSFER OF RIGHTS OF 11. DEDUCTIBLES RECOVERY AGAINST OTHERS TO US a. The Limits of Coverage shown in the If any person or organization to or for whom we make Declarations apply to the amount of loss or payment under this coverage part has rights to damages in excess of the Municipal Property recover damages from another, those rights are Deductible shown in the Municipal Property, transferred to us to the extent of our payment. That Crime, Bond and Equipment , Breakdown person or organization must do everything necessary Declarations or the General Annual Aggregate to secure our rights and must do nothing after loss to Deductible, if any, shown in the Common impair them. But you may waive your rights against Coverage Declarations, and the Limits of another party in writing: Coverage will not be reduced by the Deductible amount. a. Prior to a loss to your covered property or loss of revenue. b. LMCIT shall be liable to the city or to others on behalf of the city only to the amount of loss or b. After a loss to your covered property or loss of damages in excess of any deductible amounts. revenue,only if at time of loss that party is one of the following: We will then pay the amount of loss up to the applicable limit of coverage. (1) Someone insured by this covenant; LMCIT MPCB(11-99)(Rev. 11-03) Page 20 of 20 League of Minnesota Cities Cities 'promoting excellence MUNICIPAL, CRIME COVERAGE PART TWO LMCIT MPCB(11-99)(Rev.11-03) MUNICIPAL PROPERTY, CRIME AND BOND COVERAGE • WHAT IT IS AND WHERE YOU CAN FIND IT INDEX CRIME COVERAGE - PART TWO LMC League of Minnamota Cifiar Cities promoting exaaIanao PAGE SECTION I-COVERAGE AGREEMENT 1 SECTION II- CAUSES OF LOSS AND DAMAGES NOT COVERED 1-2 SECTION III- LINIITS OF COVERAGE 2 SECTION IV-DEFINITIONS 2-4 SECTION V- CONDITIONS 4-6 LMCIT MPCB(11-99)(Rev. 11-03) 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 We will pay for loss of money and securities resulting of 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 Ioss from damage to, the We will pay for loss involving instruments ofpayment 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 ofpayment. 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 thatyou 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. L MCIT MPCB(11-99)(Rev.11-03) 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 or Loss resulting from nuclear reaction or radiation, or expected attack,by any government, sovereign or radioactive contamination,however caused. 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. Bankingpremises means the interior of that portion f. Welfare or public relief agency; of any building occupied by a banking institution or similar safe depository. g. School board; 2. City means the governmental body or entity first h. Airport commission; or named in the Declarations. For purposes of this coverage,city includes relief associations. Unless i. Joint powers entity. specifically named in the Declarations, city shall not include: 3. Employee means: a. Gas, electrical, or steam utilities commission; a. A person whom you compensate directly by salary, wages or commissions and who you have b. Port authority, housing and redevelopment the right to direct or control while performing authority,economic development authority,area or duties for you; municipal redevelopment authority, or similar agency, b. Member of the city council; c. Municipal power agency; c. Member of a city board, commission, or committee which is not excluded by the definition d. Municipal gas agency; of city; e. Hospital or nursing home board or commission; d. Elected or appointed official of the city; .MCIT MPCB(11-99)(Rev. 11-03) Page 2 of 6 7. LOSS COVERED UNDER THIS 10. OTTNFRINSURANCE COVENANT AND PRIOR COVENANT ISSUED BY US This covenant does not apply to loss recoverable or recovered under other insurance or indemnity. If any loss is covered: However, if the limit of the other insurance or a. Partly by this covenant; and indemnity is insufficient to cover the entire amount of the loss, this covenant will apply to that part of the b. Partly by the prior canceled or terminated covenant loss, other than that falling within any Deductible that we had issued to you or any predecessor in amount,not recoverable or recovered under the other interest, the most we will pay is the larger of the insurance or indemnity. However, this covenant will amount recoverable under this covenant or the not apply to the amount of loss that is more than the prior covenant. applicable limit of coverage shown in the Declarations. 8. LOSS SUSTAINED DURING PRIOR INSURANCE 11. RECORDS a. If you or any predecessor in interest sustained loss You must keep records of all money and securities; during the period of any prior insurance thatyou or and instruments of payment, so we can verify the the predecessor in interest could have recovered amount of any loss. under that insurance, except that the time within which to discover loss had expired,we will pay for 12. RECOVERIES it under this covenant provided: a. Any recoveries, less the cost of obtaining them, (1) This covenant became effective at the time of made after settlement of loss covered by this cancellation or termination of the prior insurance; covenant,will be distributed as follows: and (1) To you, until you are reimbursed for any loss (2) The loss would have been covered by this that you sustain that exceeds the limit of coverage covenant had it been in effect when the acts or and the Deductible amount,if any; events causing the loss were committed or occurred. (2) Then to us until we are reimbursed for the settlement made; b. The coverage under this condition is part of,not in (3) Then to you until you are reimbursed for that addition to,the limits of coverage applying to this part of the loss equal to the Deductible amount, if covenant and is limited to the lesser of the amount any recoverable under: - b. Recoveries do not include any recovery: (1) This covenant as of its effective date; or (1) From insurance, suretyship, reinsurance, (2) The prior insurance had it remained in effect. security or indemnity taken for our benefit; or 9. NON-CUMULATION OF LIMIT OF (2) Of original securities after duplicates of them COVERAGE have been issued. Regardless of the number of years this covenant 13. TERRITORY remains in force or the number of premiums paid,no limit of coverage cumulates from year to year or a. This covenant covers theft, disappearance, or period to period. destruction of money or securities only from acts committed or events occurring within the United LMCIT MPCB(11-99)(Rev.11-03) Page 5 of 6 States of America, U.S. Virgin Islands, Puerto having a penalty not exceeding the lesser of Rico, Canal Zone, or Canada, and while the: temporarily outside this territory for a period of not more than 90 days. i) Value of the securities at the close of business on the day the loss was b. This covenant covers loss you sustain from forgery discovered; or or alteration anywhere in the world. ii)Limit of coverage. 14. TRANSFER OF YOUR RIGHTS OF RECOVERY AGAINST OTHERS TO US (3) Loss from damages to property or premises, as described under SECTION I - COVERAGE You must transfer to us all your rights of recovery AGREEMENT, 1.,for not more than the: against any person or organization for any loss you sustained and for which we have paid or settled. You (a) Actual cash value of the property on the must also do everything necessary to secure those day the loss was discovered; rights and do nothing after loss to impair them. (b) Cost of repairing the property or premises; 15. VALUATION- SETTLEMENT or a. Subject to the applicable limit of coverage (c) Cost of replacing the property with provision, we wiI1.pay for: property of like kind and quality. (1) Loss of money,but only up to and including its We may,at our option,pay the actual cash value of face value. We may,at our option, pay for loss of the property or repair or replace it. money issued by any country other than the United States of America: If we cannot agree with you upon the actual cash value or the cost of repair or replacement,the value (a) At face value in the money issued by that or cost will be determined by arbitration. country; or b. We may,at our option,pay for loss of,or loss from (b) In the United States of America dollar damage to,property other than money: equivalent determined by the rate of exchange on the day the loss was discovered. (1) In the money of the country in which the loss occurred; or (2) Loss of securities,but only up to and including their value at the close of business on the day the (2) In the United States of America dollar loss was discovered,we may, at our option: equivalent of the money of the country in which the loss occurred determined by the rate of exchange (a) Pay the value of such securities or replace on the day the loss was discovered. - them in kind, in which event you must assign to us all your rights,title and interest in and to c. Any property that we pay for or replace becomes those securities; our property. (b) Pay the cost of any Lost Securities Bond 16. FACSIMILE SIGNATURES: required in connection with issuing duplicates of the securities. However, we will be liable We will treat mechanically reproduced facsimile only for the payment of so much of the cost of signatures the same as handwritten signatures. the bond as would be charged for a bond ..MCIT MPCB(11-99)(Rev. 11-03) Page 6 of 6 e. Volunteer person or organization while acting e. To sue or be sued. on behalf of the city and subject to the city's direction and control; 6. LMCIT means the League of Minnesota Cities Insurance Trust. f. Other authorized person or agent of the city while acting on behalf of the city, but excludes 7. Messenger means you, or any of your employees, independent contractors; while having care and custody of the money and securities outside the premises. g. City relief association members, officers, and employees; or 8. Money means: h. Any natural person employed by an employment a. Currency, coins, and bank notes in current use contractor while that person is subject to your and having a face value; and direction and control and performing services for you, excluding, however, any such person while b. Travelers checks, register checks and money having care and custody of property outside the orders held for sale to the public. premises. 9. Occurrence means: But employee does not mean any agent, broker; factor, commission merchant, consignee, a. With respect to SECTION I - COVERAGE independent contractor or representative of the AGREEMENT, 1. and 2.: same general character. _ — - (1) Act or series ofrelated acts involving one or 4. Instruments of payment means checks, drafts, more persons; or promissory notes or similar written promises, orders or directions to pay a sum certain in money, (2) Act or event, or series of related acts or that are: events not involving any person. a. Made or drawn by or drawn upon you; or b. With respect to SECTION I - COVERAGE AGREEMENT,3.,all loss caused by any person or b. Made or drawn by one acting as your agent; or in which that person is involved, whether the loss that are purported to have been so made or drawn. involves one or more instruments of payment. 5. Joint powers entity means an operating entity The date of the occurrence is the date on which the created by two or more governmental units entering act,event or loss is alleged to have taken place. If into an agreement as provided by statute for the the loss or damages are alleged to have arisen from joint exercise of governmental powers. An a series of acts or events,the date of occurrence is intergovernmental agreement will be deemed to deemed to be the date when the first such wrongful create a joint powers entity if the agreement act or event took place or is alleged to have taken establishes a board with the effective power to do place. any of the following, regardless of whether the specific consent of the constituent governmental 10. Our means the League of Minnesota Cities units may also be required: Insurance Trust. a. To receive and expend funds; 11. Premises means the interior of that portion of any building you occupy in conducting your business. b. To enter into contracts; 12. Securities means negotiable and nonnegotiable c. To hire employees; instruments or contracts representing either money or other property and includes: d. To purchase or otherwise acquire and hold real or personal property; or a. Tokens, tickets, revenue and other stamps LMCIT MPCB(11-99)(Rev. 11-03) Page 3 of 6 (whether represented by actual stamps or unused 14. Us means the League of Minnesota Cities value in a meter) in current use;and Insurance Trust. b. Evidences of debt issued in connection with 15. We means the League of Minnesota Cities credit or charge cards,which cards are not issued Insurance Trust. by you; 16. You means the city shown in the Declarations. but does not include money. 17. Your means the city shown in the Declarations. 13. Theft means any act of stealing. SECTION V - CONDITIONS 1. COVENANT PERIOD 4. INTERESTS COVERED a. The covenant period is shown in the Declarations. Coverage provided by this covenant is limited to money andsecurities;and instruments ofpayment;and b. Subject to the loss sustained during prior insurance damages to property or premises, as described under condition,we will pay only for loss that you sustain SECTION I-COVERAGE AGREEMENT, 1., that: through acts committed or events occurring during the covenant period. a. You own or hold; or 2. DISCOVERY PERIOD FOR LOSS b. For which you are legally liable. We will pay only for covered loss discovered no later However, this covenant is for your benefit only. It than one year from the end of the covenant period. provides no rights or benefits to any other person or organization. 3. DUTIES IN THE EVENT OF LOSS 5. LEGAL ACTION AGAINST US After you discover a loss or a situation that may result in loss of, or loss from damage to, money and You may not bring any legal action against us securities; or instruments of payment,you must: involving loss: a. Notify us as soon as possible. a. Unless you have complied with all the terms of this covenant; and b. Submit to examination under oath at our request and give us a signed statement of your answers. b. Until 90 days after you have filed proof of Ioss with us; and - c. Give us a detailed, sworn proof of loss within 120 days. If the loss was due to forgery or alteration, c. Unless brought within 2 years from the date you you must include with your proof of loss any discover the loss. instrument involved in that loss; or if that is not possible,you must give us an affidavit setting forth,.Y � g h 6. LOSS COVERED UNDER.MORE THAN the amount and cause of loss. ONE COVERAGE OF THIS COVENANT d. Cooperate with us in the investigation and If two or more coverages of this covenant apply to the settlement of any claim. same loss,we will pay the lesser of: e. If you have reason to believe that any loss of, or Y � a. The actual amount of loss; or loss from damage to,money or securities involves a violation of law,you must notify the police. b. The sum of the limits of coverage applicable to that loss. .MCIT MPCB(11-99)(Rev.11-03) Page 4 of 6 • MUNICIPAL PROPERTY, CRIME AND BOND COVERAGE WHAT IT IS AND WHERE YOU CAN FIND IT INDEX BOND COVERAGE - PART THREE M League of Minnesota Cities Can promoting axoo/lance PAGE SECTION I- COVERAGE AGREEMENT 1 SECTION II- CAUSES OF LOSS AND DAMAGES NOT COVERED 1 SECTION III-LIMITS OF COVERAGE 2 SECTION IV- DEFINrTIONS 2-3 SECTION V- CONDITIONS 3-6 • LMCfT MPCB(11-99)(Rev. 11-03) 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 rismages 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,whereyou 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: S. NUCLEAR a. Your inability to realize income that you would have realized had there been no loss as provided by Loss resulting from nuclear reaction or radiation, or each bond coverage form that is designated in the radioactive contamination,however caused. 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 action in establishing either the existence or the amount of in hindering or defending against an actual or loss under this covenant. 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 LMCIT MPCB(11-99)(Rev.11-03) Page 1 of 6 • 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 b. Member of the city council; forms: c. Member of a city board, commission, or a. Bond -Employee Dishonesty Coverage Form committee which is not excluded by the definition MPCB 203; and of city; b. Bond - Employee Faithful Performance d. Elected or appointed official of the city; Coverage Form MPCB 204. e. Volunteer person or organization while acting 2. City means the governmental body or entity first on behalf of the city and subject to the city's. named in the Declarations. For purposes of this direction and control; coverage,city includes relief associations. Unless specifically named in the Declarations, city shall f. Other authorized person or agent of the city not include: while acting on behalf of the city, but excludes - - independent contractors; a. Gas, electrical,or steam utilities commission; g. City relief association members, officers, and b. Port authority, housing and redevelopment employees; or authority,economic development authority,area or municipal redevelopment authority, or similar h. Any natural person employed by an employment agency; contractor while that person is subject to your direction and control and performing services for c. Municipal power agency; you, excluding, however, any such person while having care and custody of property outside the d. Municipal gas agency; premises. e. Hospital or nursing home board or commission; But employee does not mean any agent, broker, factor, commission merchant, consignee, f. Welfare or public relief agency; independent contractor or representative of the same general character. g. School board; 4. Joint powers entity means an operating entity h. Airport commission; or created by two or more governmental units entering into an agreement as provided by statute for the i. Joint powers entity. joint exercise of governmental powers. An intergovernmental agreement will be deemed to 3. Employee means: create a joint powers entity if the agreement establishes a board with the effective power to do a. A person whom you compensate directly by any of the following, regardless of whether the salary, wages or commissions and who you have specific consent of the constituent governmental the right to direct or control while performing units may also be required: duties for you; a. To receive and expend funds; -MCIT MPCB(11-99)(Rev.11-03) Page 2 of 6 b. To enter into contracts; 8. Our means the League of Minnesota Cities • Insurance Trust. c. To hire employees; 9. Property other than money and securities means d. To purchase or otherwise acquire and hold real any tangible property that has intrinsic value. or personal property; or 10. Securities means negotiable and nonnegotiable e. To sue or be sued. instruments or contracts representing either money or other property and includes: S. LMCIT means the League of Minnesota Cities Insurance Trust. a. Tokens, tickets, revenue and other stamps (whether represented by actual stamps or unused 6. Money means: value in a meter)in current use; and • a. Currency, coins, and bank notes in current use b. Evidences of debt issued in connection with and having a face value; and credit or charge cards,which cards are not issued by you; b. Travelers checks, register checks and money orders held for sale to the public. but does not include money. 7. Occurrence means all loss caused by an employee, 11. Us means the League of Minnesota Cities whether the result of a single act or series of acts. •Insurance Trust. The date of the occurrence is the date on which the 12. We means the League of Minnesota Cities single act is alleged to have taken place. If the loss Insurance Trust. or damages are alleged to have arisen from a series of acts, the date of occurrence is deemed to be the 13. You means the city shown in the Declarations. date when the first such wrongful act took place or is alleged to have taken place. 14. Your means.the city shown in the Declarations. SECTION V - CONDITIONS 1. CANCELLATION AS TO ANY The mailing of notice to you at the Iast mailing EMPLOYEE address known to us will be sufficient proof of notice. Delivery of notice is the same as mailing. We reserve the right to cancel the covenant as to any employee: 2. COVENANT PERIOD a. Immediately upon discovery by you or any official a. The covenant period is shown in the Declarations. or employee authorized to manage, govern or control your employee,of any act on the part of an b. Subject to the loss sustained during prior insurance employee whether before or after becoming condition,we will pay only for loss that you sustain employed by you which would constitute a loss through acts committed or events occurring during covered under the terms of this covenant. the covenant period. b. On the date specified in a notice mailed to you. 3. DISCOVERY PERIOD FOR LOSS That date will be at least 30 days after the date of We will pay only for covered loss discovered no later mailing. than one year from the end of the covenant period. LivICrr MPCB(11-99)(Rev.11-03) Page 3 of 6 4. DUTIES IN THE EVENT OF LOSS 8. LOSS COVERED UNDER THIS COVENANT AND PRIOR COVENANT After you discover a loss or a situation that may result ISSUED BY US in loss as provided by each bond coverage form that is designated in the Declarations,you must: If any loss is covered: a. Notify us as soon as possible. a. Partly by this covenant, and b. Submit to examination under oath at our request b. Partly by the prior canceled or terminated covenant and give us a signed statement of your answers. that we had issued to you or any predecessor in interest, the most we will pay is the larger of the c. Give us a detailed, sworn proof of loss within 120 amount recoverable under this covenant or the days. prior covenant. d. Cooperate with us in .the investigation and 9. LOSS SUSTAINED DURING PRIOR settlement of any claim. INSURANCE 5. INDEPENDENT RIGHT OF RECOVERY a. If you or any predecessor in interest sustained loss during the period of any prior insurance that you or We have an independent right of recovery against any the predecessor in interest could have recovered employee for any loss due to the employee's under that insurance, except that the time within malfeasance, willful neglect of duty or bad faith.- which to discover loss had expired,we will pay for it under this covenant provided: 6. LEGAL ACTION AGAINST US (1) This covenant became effective at the time of You may not bring any legal action against us cancellation or termination of the prior insurance, involving loss: and; a. Unless you have complied with all the terms of this (2) The loss would have been covered by this covenant;and covenant had it been in effect when the acts or events causing the loss were committed or b. Until 90 days after you have filed proof of loss occurred. with us; and b. The coverage under this condition is part of,not in c. Unless brought within 2 years from the date you addition to,the limits of coverage applying to this discover the loss. covenant and is limited to the lesser of the amount recoverable under: 7. LOSS COVERED UNDER MORE THAN ONE COVERAGE OF THIS COVENANT (1) This covenant as of its effective date; or If two or more coverages of this covenant apply to the (2) The prior insurance had it remained in effect. >ame loss, we will pay the lesser of: 10. NON-CUMULATION OF LIMIT OF i. The actual amount of loss; or COVERAGE ). The sum of the limits of coverage applicable to that Regardless of the number of years this covenant loss. remains in force or the number of premiums paid,no limit of coverage cumulates from year to year or period to period. • MCIT MPCB(11-99)(Rev. 11-03) Page 4 of 6 11. OTHER INSURANCE occurring within the United States of America, U.S. Virgin Islands, Puerto Rico, Canal Zone, or Canada This covenant does not apply to loss recoverable or and while temporarily outside this territory for a recovered under other insurance or indemnity, period not more than 90 days. However, if the limit of the other insurance or indemnity is insufficient to cover the entire amount of 15. TRANSFER OF YOUR RIGHTS OF the loss, this covenant will apply to that part of the RECOVERY AGAINST OTHERS TO US loss, other than that falling within any Deductible amount,not recoverable or recovered under the other You must transfer to us all your rights of recovery insurance or indemnity. However,this covenant will against any person or organization for any loss you not apply to the amount of loss that is more than the sustained and for which we have paid or settled. You applicable limit of coverage shown in the must also do everything necessary to secure those Declarations. rights and do nothing after loss to impair them. 12. RECORDS 16. VALUATION- SETTLEMENT You must keep records of all money, securities, and a. Subject to the applicable limit of coverage property other than money and securities;and provide provision,we will pay for: any otherreasonably obtainable information so we can verify the amount of any loss. (1) Loss of money,but only up to and including its face value. We may, at our option,pay for loss of 13. RECOVERIES money issued.by any country other than the United States of America: a. Any recoveries, less the cost of obtaining them, made after settlement of loss covered by this (a) At face value in the money issued by that covenant,will be distributed as follows: country; or (1) To you, until you are reimbursed for any loss (b) In the United States of America dollar that you sustain that exceeds the limit of coverage equivalent determined by the rate of exchange and the Deductible amount, if any; on the day the loss was discovered. (2) Then to us until we are reimbursed for the (2) Loss of securities,but only up to and including settlement made; their value at the close of business on the day the loss was discovered, we may, at our option: (3) Then to you until you are reimbursed for that part of the loss equal to the Deductible amount, if (a) Pay the value of such securities or replace any. them in kind, in which event you must assign to us all your-rights,title and interest in and to b. Recoveries do not include any recovery: those securities; (1) From insurance, suretyship, reinsurance, (b) Pay the cost of any Lost Securities Bond security or indemnity taken for our benefit; or required in connection with issuing duplicates of the securities. (2) Of original securities after duplicates of them have been issued. However, we will be liable. only for the payment of so much of the cost of the bond as 14. TERRITORY would be charged for a bond having a penalty not exceeding the lesser of the: This covenant covers only acts committed or events • LMCIT MPCB(11-99)(Rev.11-03) Page 5 of 6 i) Value of the securities at the close of We may,at our option,pay the actual cash value of business on the day the loss was the property or repair or replace it. discovered; or If we cannot agree with you upon the actual cash ii) Limit of coverage. value or the cost of repair orre replacement,the value eP P � or cost will be determined by arbitration. (c) Loss of, or loss from damage to,property other than money and securities, or loss from b. We may,at our option,pay for loss of,or loss from damage to the premises for not more than the: damage to,property other than money: • i) Actual cash value of the property on (1) In the money of the country in which the loss the day the Ioss was discovered; occurred; or ii) Cost of repairing the property or (2) In the United States of America dollar premises; or equivalent of the money of the country in which the loss occurred determined by the rate of exchange iii) Cost of replacing the property with on the day the loss was discovered. property of like kind and quality. c. Any property that we pay for or replace becomes our property. • • • MCIT MPCB(11-99)(Rev. 11-03) Page 6 of 6 PROPERTY IN THE OPEN ENDORSEMENT This Endorsement modifies coverage provided under the Municipal Property Coverage. Loc. # Location Occupancy Property in the Open 18 CITY WIDE VARIOUS OUTDOOR SIRENS 1 I!I A. Section VII —DEFINITIONS property in the open is amended to read as described above for each location. All other terms and conditions remain unchanged. LMCIT MPCB-110(11-01)(Rev.1 1-02) LEAGUE OF MINNESOTA CITIES INSURANCE TRUST SCHEDULE OF COVERED PROPERTY Covenant Number: CMC 25101 LMC CITY OAK PARK HEIGHTS, CITY OF League Minnesota l �Cilne COVERAGE AT EACH OF THE LOCATIONS BELOW APPLIES ONLY FOR BUILDING/ = ./ 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 Wate! Estimated Covered and Supplemental Replacement Loc# Location Occupancy Property _Flood Coverage Cost 1 14168 OAK PARK BLVD N CITY HALL/GARAGE B CODE C $2,140,859 2 58TH&NORELL WATER TOWER B CODE C $1,706,976 3 14168 OAK PARK BLVD N WATER TOWER B CODE C $1,422,480 4 BREKKE PARK SHELTER B CODE C $208,095 5 13425 60TH STREET LIFT STATION B CODE C $126,162 • 6 14168 OAK PARK BLVD N PUMP HOUSE#1 B CODE C $120,138 7 SWAGER PARK SHELTER B CODE C $8,366 8 COVER PARK RECREATION BUILDING B CODE C $47,135 9 VALLEY VIEW PARK SHELTER B CODE C $82,028 10 BEADETTE ON LOOKOUT TRAIL LIFT STATION B CODE C $91,176 11 SUNYSIDE MARINA LIFT STATION B CODE C $91,176 12 14200 53RD STREET LIFT STATION B CODE C $91,176 • 13 14168 OAK PARK BLVD N CITY HALL PIO CODE C $3,400 14 SWAGER PARK PARK PIO CODE C $66,806 *The limit of coverage for Section IV-Water and Supplemental Coverage is$500,000 per occurrence 1 500,000 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) LEAGUE OF MINNESOTA CITIES INSURANCE TRUST SCHEDULE OF COVERED PROPERTY Covenant Number: Jjj CMC 25101 C CITY OAK PARK HEIGHTS, CITY OF League of Minnesota Cities Cities promoting excellence COVERAGE AT EACH OF THE LOCATIONS BELOW APPLIES ONLY FOR BUILDING/ = • :1 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 Loc# Location Occupancy Property Flood Coverage Cost 15 COVER PARK PARK PIO CODE C $75,758 16 VALLEY VIEW PARK PARK PIO CODE C $40,643 17 BREKKE PARK PARK PIO CODE C $146,260 18 CITY WIDE VARIOUS NO CODE C $66,290 19 14290 58TH ST N PUMPHOUSE #2 B CODE C $113,798 20 KERN CENTER,5500 STILLWATER BLVD LIFT STATION&FORCE MAIN B CODE C $222,469 21 5701 NORWICH PARKWAY AUTUMN HILLS PARK PIO CODE C $210,697 *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) LEAGUE OF MINNESOTA CITIES INSURANCE TRUST SCHEDULE OF COVERED MOBILE PROPERTY Covenant#: CMC 25101 L MC League of Minnesota Cities CITY: OAK PARK HEIGHTS Cities promoting excenence 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 (Make, Model and Year) Serial No 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 25101 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST ] vf� (Herein called LMCIT) Item 1. CITY: OAK PARK HEIGHTS, CITY OF League of Minnesota Cities Cities promoting excellence Item 2. COVERAGE PERIOD: One Year From: 07/07/04 To: 07/07/05 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/$200,000 Annual Aggregate LAND USE, DEVELOPMENT OR FRANCHISE LITIGATION LIMIT **$ 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: CM C(11-03) M E066(11-02) M E073(11-01) M G L-1(01-95) LMCIT DEC-013(11/86)(Rev.11/03) 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 Other words and phrases that appear in italics have covered. special meaning, as given in SECTION N - DEFINITIONS. The words city and covered party are defined under SECTION I - COVERAGES COVERAGE A. MUNICIPAL LIABILITY (1) For claims for bodily injury or property COVERAGE (CLAIMS MADE BASIS) damage,the date of the occurrence is the date on which the bodily injury or property damage first 1. COVERAGE AGREEMENT took place or is alleged to have taken place. a. Except as otherwise provided in this agreement, (2) For any other claim for damages,the date of LMCIT will pay on behalf of the covered party the occurrence is the date on which the wrongful all sums which the covered party shall become act giving rise to the claim for damages took legally obligated to pay as damages as a result of place or is alleged to have taken place. If the an occurrence, if the following conditions are damages are alleged to have arisen from a series met: of wrongful acts, the date of the occurrence is deemed to be the date when the first such (1) The claim for such damages must be first wrongful act took place or is alleged to have made against the covered party during the. taken place. coverage period; and - If both(1) and (2) apply to claims for damages (2) The date of the occurrence giving rise to the arising from a single occurrence, the date of the claim for damages must be on or after the occurrence is the earlier of the dates defined by retroactive date, if any, shown in the (1) and (2),respectively. Declarations; and b. For any claim for damages,the date the claim is (3) The occurrence must have taken place in the made is deemed to be as follows: coverage territory. (1) For any employment liability claim, the b. LMCIT will have the right and duty to defend claim is deemed to have been made on the - any such claim or suit seeking damages.LMCIT earliest of: may, at its discretion, investigate any actual or potential claim; and unless the city has given (a) The date the claimant files a charge with notice as provided in SECTION VI - the Federal Equal Employment Opportunity CONDITIONS, 7.,LMCIT may settle any claim Commission, the Commissioner of the or suit. Minnesota Department of Human Rights, or a local Human Rights Commission as c. The amount LMCIT will pay for damages is defined in Minnesota Statute §363.01, subd. un limited as described in SECTION III - LIMITS 23, whichever comes first; or OF COVERAGE. (b) The date when notice of claim for 2. CLAIM AND OCCURRENCE DATES damages is received by any covered party or by LMCIT, whichever comes first. a. For any claim for damages, the date of the occurrence shall be aeemed to be as follows: (2)-1For any other claim for damages, the claim LMCIT CMC(11-86)(Rev. 11-03) Page 1 of 21 is deemed to have been made when notice of such d. Any loss, cost, or expense arising out of any claim is received and recorded by any covered direction demand, or request by the government party or by LMCIT, whichever comes first. or any other entity that the city or any other entity test for,monitor,clean up,remove, contain,treat, (3) All claims for damages arising from a single detoxify or neutralize pollutants; or occurrence will be deemed to have been made at the time the first of those claims is made against Damages arising out of the actual, alleged or any covered party. threatened discharge, dispersal, seepage, migration,release or escape of pollutants: 3. EXCLUSIONS (1) At or from premises the city owns, rents, This coverage does not apply to: leases,uses, or occupies,and premises the city no longer owns, rents, leases, uses, or occupies; a. Damages for which the covered party is liable by reason of the assumption of liability in a contract (2) At or from any landfill,dump,or other site or or agreement. This exclusion does not apply to location presently or formerly used by or for the liability for damages: city or others for the handling, storage, disposal, processing or treatment of pollutants; (1) Assumed in a contract or agreement that is a covered contract; or (3) Which are or were at any time transported, handled,stored,treated,disposed of,or processed (2) The covered party would have in the absence as waste by or for the city or any person or of the contract or agreement. organization for whom the city may be legally responsible; or b. Damages for which the covered party may be liable by reason of the Minnesota Civil Damages (4) At or from any site or location on which the Act(M.S.340A.801-340A.802),or any other law city or any contractors or subcontractors working governing liability for illegal sales of alcoholic directly or indirectly on the city's behalf are or beverages. have been performing operations: c. Bodily injury to: (a) If the pollutants are brought on or to the site or location in connection with such (1) An employee of the city arising out of and in operations; or the course of employment by the city; or (b) If the operations are to test for, monitor, (2) Damages to the spouse,child,parent,brother clean up, remove, contain, treat, detoxify or or sister of that employee as a consequence of(l) neutralize the pollutants. above. - This exclusion does not apply to any of the This exclusion applies: following: (1) Whether the city may be liable as an employer (1) Any limited pollution liability claim. or in any other capacity; and (2) Any claim arising out of the discharge or (2) To any obligation to share damages with or dispersal of mace, tear gas or similar agent, if repay someone else who must pay damages such discharge was for the purpose of protecting because of the injury. - persons or property or incident to an arrest. This exclusion does not apply to liability assumed (3) Any lead claim or asbestos claim, unless the by the covered party under a covered contract. actual,alleged,or threatened discharge,dispersal, release, escape, use, distribution, or handling of LMCIT CMC(11-86)(Rev. 11-03) Page 2 of 21 lead or asbestos took place at or from any landfill, (4) Work performed by or on behalf of the city dump, or other site or location presently or arising out of your work or any portion thereof,or formerly used by or for the city or others for the out of materials,parts or equipment furnished in handling, storage, disposal, processing or connection therewith. treatment of pollutants. (5) Your product arising out of it or any part of it. (4) Any damages arising out of heat, smoke, or fumes from a hostile fire. A hostile fire is a fire Paragraphs (3) and (4) of this exclusion do not which becomes uncontrollable or breaks out from apply to liability assumed under a sidetrack where it was intended to be. agreement. e. Damages arising out of the ownership, This exclusion does not apply to property damage maintenance, use or entrustment to others of any by fire to premises rented to the city. A separate aircraft,auto or watercraft owned or operated by limit of coverage applies to this coverage as or rented or loaned to any covered party. Use described in SECTION III - LIMITS OF includes operation and loading or unloading. COVERAGE. This exclusion does not apply to: h. Damages claimed for any loss, cost or expense incurred by the city or others for the loss of use, (1) A watercraft while ashore on premises the withdrawal, recall, inspection, repair, city owns or rents; replacement, adjustment,removal or disposal of: (2) A watercraft that is: (1) Your product; (a) Less than 26 feet long; and (2) Your work; or (b) Not being used to carry persons or (3) Impaired property; property for a charge; if such product,work,or property is withdrawn or (3) Parking an auto on, or on the ways next to, recalled from the market or from use by any premises the city owns or rents,provided the auto person or organization because of a known or is not owned by or rented or loaned to the covered suspected defect, deficiency, inadequacy or party. dangerous condition in it. f. Damages due to war,whether or not declared, or i. Bodily injury to any volunteer while acting on any act or condition incident to war.War includes behalf of the city if the volunteer is an employee civil war, insurrection, rebellion or revolution. within the meaning of a workers' compensation law or similar law, or is covered under a g. Property damage to: voluntary endorsement to a workers' compensation insurance policy. (1) Property the city owns,rents, or occupies; j. Damages for bodily injury,property damage or (2) Premises the city sells, gives away or personal injury arising out of the city's abandons, if the property damage arises out of ownership, operation or maintenance of any any part of those premises; airport. (3) That particular part of real property on which k. Damages for bodily injury,property damage, or the city or any contractors or subcontractors personal injury arising out of the city's working directly or indirectly on the city's behalf ownership, operation or maintenance of any: are performing operations,if the property damage arises out of those operations; or (1) Medical clinic; LMCIT CMC(11-86)(Rev. 11-03) Page 3 of21 a (2) Licensed hospital, boarding care home, (1) Class I or Class II dam as classified by the outpatient surgical center, or supervised living Commissioner of the Department of Natural facility; Resources pursuant to Minnesota Rules §6115.0340; or (3) Licensed psychiatric hospital; (2) Any dike, levee or similar structure. (4) Mental health clinic; n. Damages arising out of the city's ownership, (5) Licensed nursing home or home care sponsorship or operation of: providers; or (1) Motorized amusement devices, if the power (6) Registered housing with services supply motor is rated at greater than 5 establishments. horsepower; 1. Damages arising out of the rendering of or failure (2) Any mobile equipment, automobile, to render professional services. by any snowmobile or motorcycle in any racing,pulling, professional listed below: pushing, speed, or demolition contest or in any stunting activity; (1) Attorney, unless the attorney is an employee of the city and not an independent contractor,and (3) Rodeos; or the professional services are within the scope of the attorney's duties as a city employee,including (4) Fireworks displays or exhibitions. professional services performed for any of the city's boards, commissions, authorities or o. Damages arising from or relating to the detention agencies,orjoint powers entities in which the city or confinement of any person(s) in any jail, participates. holding cell or similar detention facility, which the city owns,operates or maintains,if the date of (2) Architect. the occurrence causing such damages takes place after a continuous detention or confinement (3) Doctor of medicine. period of 30 days, or in any detention facility which is intended and regularly used for (4) Dentist. confinement of persons for periods in excess of 30 days. (5) Nurse, except that this exclusion shall not apply to: p. Damages arising out of the activities of any of the following city boards, commissions, or agencies: (a) Claims arising from the nurse's activities in the capacity of an emergency medical (1) Gas,electrical or steam utilities commission; technician,paramedic or first responder; or (2) Port authority, housing and redevelopment (b) Claims arising from the nurse's activities authority, economic development authority, area in administering vaccinations or or municipal redevelopment authority, or similar immunizations to city employees or agency; volunteers. (3) Municipal power agency; or (6) Pharmacist. (4) Municipal gas agency, (7) Psychologist. unless such board, commission, authority, or rn. Damages arising out of the failure or bursting of agency is named in the Declarations, in which any: case the city will also be covered to the extent of LMCIT CMC(11-86)(Rev. 11-03) Page 4 of 21 coverage provided under this covenant to the b. Included within the products-completed named board,commission,authority or agency for operations hazard; damages arising out of the activities of the respective named board,commission,authority or c. Arising out of operations performed for the city agency. by an independent contractor other than: q. Damages arising out of the activities of a joint (1) Maintenance and repair of the covered powers entity in which the city is a member unless premises; or the joint powers entity is named in the Declarations. (2) Structural alterations at such premises which do not involve changing the size of or moving r. Damages arising out of condemnation, inverse buildings or other structures; condemnation,adverse possession, or dedication by adverse use. This exclusion does not apply to d. To any tenant or other person regularly residing any claim for taking of property wherein the on the covered premises; taking of property is incident to an arrest or for the purpose of protecting persons or property in e. To any other tenant if the bodily injury occurs on an emergency. that part of the covered premises rented from the city; s. Any criminal proceedings or proceedings under the open meeting law against any covered party. f. To any person while engaged in maintenance and repair of the covered premises or alteration, t. Damages with respect to any claim(s) made by demolition or new construction at such premises; LMCIT or the city against any other covered party. g. To any person practicing, instructing or participating in any physical training, sport, u. Any claim for damages asserted in any land use, athletic activity or contest whether on a formal or development or franchise litigation. informal basis; COVERAGE B. MEDICAL AND h. To a member or guest of any club,tourist court or RELATED EXPENSE trailer park operated or owned by the city; or 1. COVERAGE AGREEMENT i. For any injury for which the injured party has received or is entitled to receive workers' a. LMCIT will pay to or for each person who compensation benefits. sustains bodily injury caused by accident all reasonable medical and related expense incurred The exclusions of the MUNICIPAL LIABILITY within one year from the date of the accident as a COVERAGE PART (COVERAGE A) also apply to result of such bodily injury,provided such bodily this Coverage Part as respects bodily injury. injury arises out of a condition in the covered premises. 3. ADDITIONAL DEFINITIONS b. The amount LMCIT will pay for medical and When used herein: related expense is limited as described in SECTION III-LIMITS OF COVERAGE. Covered premises means all premises owned or rented to the city with respect to which the city is 2. EXCLUSIONS afforded coverage for bodily injury liability under this covenant, and includes the ways immediately LMCIT will not pay expenses for bodily injury: adjoining on land; however, covered premises does not include streets, sidewalks, or boulevards that do a. Arising out of the operation or use of-any not abut a city owned building or city owned parking snowmobile or trailer designed for use therewith; lot. LMCIT CMC(11-86)(Rev.11-03) Page 5 of21 • Medical and related expense means expenses for occurrence and settle any claim or suit that may necessary medical, surgical, x-ray and dental result. services, including prosthetic devices, necessary ambulance, hospital, professional nursing and 2. EXCLUSIONS funeral services, and replacement or repair of damaged eye glasses or clothing. This coverage does not apply to: 4. ADDITIONAL CONDITION MEDICAL a. Any obligation for which the covered party or any REPORTS; PROOF AND PAYMENT OF carrier as his insurer maybe held liable under any CLAIM workers' compensation, unemployment compensation or disability benefits law, or under As soon as practicable, the injured person or any similar law. someone on his behalf shall give to LMCIT written proof of claim,under oath if required,and shall,after b. Any liability the city may have for bodily injury each request from LMCIT, execute authorization to to: enable LMCIT to obtain medical reports and copies of records. The injured person shall submit to (1) An employee of the city arising out of and in physical examination by physicians selected by the course of employment by the city; or LMCIT when and as often as LMCIT may reasonably require. LMCIT may pay the injured person or any (2) Damages to the spouse,child,parent,brother person or organization rendering the services, and or sister of that employee as a consequence of(1) the payment shall reduce the amount payable above. hereunder for such injury. Payment hereunder shall not constitute an admission of liability of any This exclusion applies: covered party or of LMCIT. (1) Whether the city may be liable as an employer COVERAGE C. AUTOMOBILE or in any other capacity; and LIABILITY - BODILY INJURY AND (2) To any obligation to share damages with or PROPERTY DAMAGE repay someone else who must pay damages 1. COVERAGE AGREEMENT because of the injury. This exclusion does not apply to liability assumed LMCIT will pay on behalf of the covered party all by the covered party under a covered contract. sums which the covered party shall become legally obligated to pay as damages because of bodily injury c. Property damage to property owned by the or property damage to which this coverage applies, covered party. caused by an occurrence and arising out of the ownership,maintenance or use,including loading or d. Bodily injury due to war,whether or not declared, unloading,of any automobile.This coverage applies civil war, insurrection,rebellion or revolution or only to bodily injury or property damage which to any act or condition incident to any of the occurs during the coverage period and within the foregoing; covered territory. e. Any loss, cost, or expense arising out of any LMCIT will have the right and duty to defend any direction, demand, or request by the government suit seeking those damages. However: or any other entity that the city or any other entity test for,monitor, clean up,remove,contain, treat, a. The amount LMCIT will pay for damages is detoxify or neutralize P ollutants; or limited as described in SECTION III - LIMITS OF COVERAGE. Damages arising out of the actual, alleged or may, at its discretiqn, threatened discharge, dispersal, seepage, b. LMCIT ma y qn, investigate any migration, release or escape of pollutants: LMCIT CMC(11-86)(Rev. 11-03) Page 6 of 21 (1) At or from premises the city owns, rents, f. Liability assumed under any contract or leases,uses,or occupies,and premises the city no agreement, but this exclusion does not apply to longer owns,rents, leases, uses, or occupies; liability assumed under a covered contract. (2) At or from any landfill,dump, or other site or 3. ADDITIONAL DEFINITIONS location presently or formerly used by or for the city or others for the handling, storage, disposal, These additional definitions apply for purposes of processing or treatment of pollutants; COVERAGE C: (3) Which are or were at any time transported, Automobile business means the business or handled,stored,treated,disposed of,or processed occupation of selling,repairing,servicing,storing or as waste by or for the city or any person or parking automobiles. organization for whom the city may be legally responsible; or Hired automobile means an automobile not owned by the city which is used under contract on behalf (4) At or from any site or location on which the of, or Ioaned to, the city. city or any contractors or subcontractors working directly or indirectly on the city's behalf are or Owned automobile means an automobile owned by have been performing operations; the city. (a) If the pollutants are brought on or to the Trailer includes semi-trailer but does not include site or location in connection with such mobile equipment. operations; or COVERAGE D . LAND USE, (b) If the operations are to test for, monitor, DEVELOPMENT OR FRANCHISE clean up, remove, contain, treat, detoxify or LITIGATION neutralize the pollutants. This exclusion does not apply to any of the 1. COVERAGE AGREEMENT following: Except as provided below, for any land use, (1) Any limited pollution liability claim. development or franchise litigation which is first filed or served by or against the city or a city officer (2) Any claim arising out of the discharge or or employee during the annual coverage period of this agreement,LMCIT will pay the following on the dispersal of mace, tear gas or similar agent, if city's behalf: such discharge was for the purpose of protecting persons or property or incident to an arrest. a. 100% of the first $25,000 of litigation costs which are incurred after the litigation has been (3) Any lead or asbestos claim unless the actual, reported to LMCIT; 85% of the next$225,000 of alleged, or threatened discharge, dispersal, litigation costs incurred after the litigation has release, escape, use, distribution, or handling of been reported to LMCIT; and 60% of any lead or asbestos took place at or from any landfill, litigation costs in excess of$250,000 which are dump, or other site or location presently or formerly used by or for the city or others for the incurred after the litigation has been reported to handling, storage, disposal, processing or LMCIT; and treatment of pollutants. b. 50% of any necessary legal fees for counsel to 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 which becomes uncontrollable or breaks out from This coverage shall not apply to any land use, where it was intended to be. development or franchise litigation which is first LMCIT CMC(11-86)(Rev.11-03) Page 7 of 21 reported to LMCIT more than one year after the date b. Necessary legal fees for counsel to represent the on which the litigation was first filed or served by or city which the city incurs prior to reporting the against the city or a city officer or employee. litigation to LMCIT; The amount LMCIT will pay for litigation costs for c. Necessary litigation expenses other than legal land use,development or franchise litigation covered fees; under this section is limited as described in SECTION III-LIMITS OF COVERAGE. d. Damages which the city is required to pay; and The amountLMClTpays for litigation costs for land e. Supplementary payments made or incurred as use, development or franchise litigation is subject to defined in SECTION V - SUPPLEMENTARY the Municipal Liability Deductible shown in the PAYMENTS. Municipal Liability Declarations or the General Annual Aggregate Deductible, if any, shown in the 4. SPECIAL PROVISIONS - INTER-CITY Common Coverage Declarations. LITIGATION 2. LITIGATION MANAGEMENT The following special provisions shall apply only to • coverage for any land use, development or franchise For any land use, development or franchise litigation in which: 1)An opposing litigant is also a litigation, legal counsel will be selected by mutual member of the LMCIT property/casualty program; agreement of the city and LMCIT. and 2) The litigation is also a covered claim for the opposing litigant under COVERAGE D of the If LMCIT and the city are not able to agree on opposing litigant's LMCIT municipal liability selection of counsel, LMCIT will provide a list of coverage: five attorneys experienced in land use, development or franchise litigation matters; and the city will a. Legal counsel will be selected as provided above, select legal counsel from that list. but LMCIT will not otherwise participate in the management of the litigation. A land use, development or franchise litigation suit may not be settled without the approval of both b. Any settlement of the litigation involving a LMCIT and the city. payment of damages must be approved by LMCIT. 3. ADDITIONAL DEFINITIONS c. The percentage LMCIT will pay of any litigation This additional definition applies for the purpose of costs will be one-half of the percentages specified COVERAGE D. in COVERAGE D. 1. COVERAGE AGREEMENT. Litigation costs means: d. LMCITs total liability to the city for litigation a. Legal fees for counsel appointed pursuant to 2. costs for the litigation shall not exceed$500,000. LITIGATION MANAGEMENT, above; This does not increase the annual aggregate limit as described in SECTION III - LIMITS OF COVERAGE, 11. SECTION II - WHO IS COVERED 1. City means the city or other governmental body or a. Gas, electrical or steam utilities commission; entity first named in the Declarations. Unless specifically named in the Declarations, city shall b. Port authority, housing and redevelopment not include any of the following: authority, economic development authority, area or municipal redevelopment authority or similar agency; LMCIT CMC(11-86)(Rev.11-03) Page 8 of 21 c. Municipal power agency; the activities of the joint powers entity, any present or former: d. Municipal gas agency; (a) Governmental member of the joint e. Welfare or public relief agency; powers entity; f. School board; or (b) Elected or appointed official of the governmental member; g. Joint powers entity. (c) Employee of the governmental 2. For purposes of COVERAGE A and COVERAGE member; or D, covered party means: (d) Other authorized person or agent of a. The city, and any other entity named in the the governmental member, but excluding Declarations; independent contractors. b. For actions within his duties as such, any 3. For purposes of COVERAGE C, covered party present or former: means: (1) Member of the city council; a. The city, and any other entity named in the Declarations with respect to any automobile; (2) Member of a city board, commission, or committee which is not excluded by the b. Any present or former elected or appointed definition of city; official, employee or volunteer of the city with respect to any automobile while such automobile (3) Elected or appointed official of the city; is or was being used in the business of the city; (4) Employee of the city; c. Any person or organization from whom a covered party hires or borrows a trailer which is (5) Volunteer person or organization while connected to an owned automobile; acting on behalf of the city and subject to the city's direction and control; d. Any person while using an owned automobile or hired automobile only while such automobile (6) Other authorized person or agent of the is or was used with the city's permission. city while acting on behalf of the city, but excluding independent contractors; e. Any other person or organization but only with respect to his or its liability because of acts or (7) City relief association and its members, omissions of a covered party under a.,b., c. or d. officers, and employees; or above. (8) Person while acting in the administrative For purposes of COVERAGE C, none of the capacity of medical director or medical advisor following is a covered party: to the city ambulance service. a. Any person or organization from whom a c. With respect to a joint powers entity named in covered party hires or borrows an automobile that the Declarations: is not a trailer. (1) The joint powers entity; b. Any person while employed in or otherwise engaged in duties in connection with an (2) While acting on behalf of the joint powers automobile business, other than an automobile entity,or with respect to liability arising out of business operated by the city. LMCIT CMC(11-86)(Rev.11-03) Page 9 of 21 c. Any person while loading or unloading an (2) A lessee or borrower of an owned automobile,other than: automobile or their employees. (1) A city officer, employee, or volunteer; or SECTION III - LIMITS OF COVERAGE 1. The Limits of Coverage shown in the of bodily injury to two or more persons resulting Declarations and the rules below fix the most from one occurrence. LMCIT will pay as damages under each coverage part regardless of the number of: 7. The Limited Pollution Liability Claim Annual Aggregate Limit is the most LMCIT will pay for a. Covered parties; limited pollution liability claims during the annual coverage period. The Limited Pollution b. Claims made or suits brought; or Liability Claim Annual Aggregate Limit applies to the sum of damages and loss adjustment c. Persons or organizations making claims or expense, including defense costs and bringing suits. supplementary payments as defined in SECTION V - SUPPLEMENTARY PAYMENTS. 2. LMCITs maximum limit of liability for COVERAGES A and C combined shall be the per 8. The Lead or Asbestos Claim Annual Aggregate occurrence or sudden occurrence limit shown in Limit is the most LMCIT will pay for all lead . the Declarations whether the claim or claims fall claims or asbestos claims during the annual under COVERAGE A, COVERAGE C, or both. coverage period. The Lead or Asbestos Claim Annual Aggregate Limit applies to the sum of 3. The Limits of Coverage shown in the damages, loss adjustment expense, defense Declarations, except as otherwise described, costs,and supplementary payments as defined in apply only to the damages under each Coverage SECTION V -SUPPLEMENTARY PAYMENTS. Part in excess of the Municipal Liability Deductible shown in the Municipal Liability 9. The Failure to Supply Claim Annual Aggregate Declarations or the General Annual Aggregate Limit is the most LMCIT will pay for damages Deductible, if any, shown in the Common for failure to supply claims during the annual Coverage Declarations, and the Limits of coverage period. Coverage will be reduced by the Deductible amount. 10. The EMF Claim Annual Aggregate Limit is the most LMCIT will pay for damages for EMF 4. The Products-Completed Operations Annual claims during the annual coverage period. Aggregate Limit is the most LMCIT will pay under COVERAGE A for damages included in 11. LMCIT's total liability for litigation costs, as the products-completed operations hazard. defined in SECTION I-COVERAGE D,LAND USE, DEVELOPMENT OR FRANCHISE 5. The Fire Damage Limit is the most LMCIT will LITIGATION, for all land use, development or pay under COVERAGE A for damages because franchise litigation which is first filed or served of property damage to premises rented to the city against the city during the annual coverage arising out of any one fire. period of this agreement shall not exceed $1,000,000, regardless of the number of suits, 6. The Medical and Related Expense Limit is the defendants, or claimants. most LMCIT will pay under COVERAGE B for all medical expenses because of bodily injury 12. The Mold Claim Annual Aggregate Limit is the sustained by any one person, and the occurrence most LMCIT will pay for damages for mold limit is the most LMCIT will pay under claims during the annual coverage period. COVERAGE B for all medical expenses because LMCIT CMC(11-86)(Rev.11-03) Page 10 of 21 • 13. LMCIT shall not be obligated under this remaining period of less than 12 months,starting covenant to pay any claim or judgment or to with the beginning of the coverage period shown defend any suit after the applicable limit of in the Declarations,unless the coverage period is LMCITs coverage has been exhausted or by extended after issuance for an additional period tender to any excess carrier or excess coverage of less than 12 months. In that case, the including excess coverage provided by LMCIT. additional period will be deemed part of the last preceding period for purposes of determining the 14. For any Annual Aggregate Limit shown in the limits of coverage. Declarations, the limit shall apply separately to each consecutive annual period and to any SECTION IV - DEFINITIONS 1. Advertisement means a notice that is broadcast or 4. Automobile (auto) means a land motor vehicle, published to the general public or specific market trailer or semi-trailer designed for travel on segments about the city's goods, products or public roads,including any attached machinery or services for the purpose of attracting customers or equipment. But automobile does not include supporters. mobile equipment. 2. Aircraft means any aircraft, including engines, 5. Bodily injury means bodily injury, sickness or propellers, operating and navigating instruments disease sustained by a person, including death and radio equipment attached to or usually resulting from any of these at any time. attached to or carried on the aircraft, including component parts detached and not replaced by 6. Coverage territory means: other similar parts and tools therein which are standard for the make and type of aircraft. a. The United States of America (including its territories and possessions), Puerto Rico and 3. Asbestos claim means damages arising directly or Canada; indirectly out of, resulting from, caused by or contributed to by: b. International waters or airspace,provided the injury or damages do not occur in the course of a. The use of,sale of,installation of,removal of, travel or transportation to or from any place not abatement of, distribution of, containment of, or included in a. above; or exposure to asbestos,asbestos products,asbestos- containing material, asbestos fibers, or asbestos c. All parts of the world if: dust; (1) The injury or damage arises out of: b. The actual or threatened abatement,mitigation, removal or disposal of asbestos, asbestos (a) Goods or products made or sold by the products, asbestos-containing material, asbestos city in the territory described in a. above; fibers, or asbestos dust; or c. Any supervision, instructions, (b) The activities of a person whose home recommendations, warnings or advice given or is in the territory described in a.above,but which should have been given in connection with is away for a short time on the city's subparagraphs a. and b. above; or business; and d. Any obligation of the covered party to (2) The covered party's responsibility to pay indemnify any party in connection with damages is determined in a suit on the merits, subparagraphs a., b. or c. above. in the territory described in a. above or in a settlement LMCIT agrees to. LMCITCMC(11-86)(Rev. 11-03) Page 11 of21 7. Covered contract means an indemnification of a a. Any obligation of a covered party under a municipality as required by ordinance,or that part workers' compensation, disability benefits, or o f any contract or agreement pertaining to the unemployment compensation law or an y similar city's business under which the city assumes the law. tort liability of another to pay damages to a third person or organization, if the contract or b. Exemplary damages or punitive damages agreement is made prior to the date of the except punitive damages claimed or levied occurrence giving rise to the damages. Tort against an officer, employee or volunteer of the liability means a liability that would be imposed city, provided that the officer, employee or by law in the absence of any contract or volunteer: agreement. (1) Was acting in the performance of the Covered contract does not include that part of any duties of the position; and contract or agreement: (2) Was not guilty of malfeasance in office, a. That indemnifies an architect, engineer or willful neglect of duty, or bad faith. surveyor for injury or damages arising out of: c. Fines or penalties imposed by law. (1) Preparing, approving or failing to prepare or approve maps, drawings, opinions,reports, d. Injunctive or equitable relief,or quasi-judicial surveys, change orders, designs or or administrative orders. specifications; or e. Repayment of any tax, assessment, fee, or (2) Giving directions or instructions,or failing other charge that was wrongfully obtained,or any to give the same,if that is the primary cause of interest on, or any other amount claimed for loss the injury or damages; of use of, such tax, assessment, fee, or other charge. b. Under which the city's architect, engineer or surveyor assumes liability for injury or damages f. Amounts paid or payable for the purchase or arising out of the city's rendering or failing to permanent acquisition of property or property render professional services, including those rights, or for the right to permanently enforce an listed in a. above, and supervisory, ins ection or ordinance,regulation,ulation or restriction on the use of inspection engineering services; or property. c. That indemnifies any person or organization g. Amounts due under the terms of any for damages by fire to premises rented or loaned contractual obligation, except for liability: to the city. (1) Assumed in a covered contract; or 8. Damages means money damages, and includes awards for attorneys' fees with respect to federal (2) Assumed in an employment contract civil rights suits and state human rights suits. between the city and its employees. With respect to any land use, development or h. Any wages and employment benefits for work franchise litigation, damages also includes that has been performed by the employee making amounts the city is obligated to pay for loss of use the claim, or any claimed increases in such of property during the time prior to a final wages and employment benefits for work that is determination by the court that enforcement of a hereafter performed by the employee making the land use, zoning, subdivision, or similar claim. ordinance or regulation constitutes a taking of private property. 9. EMF claim means any claim for damages arising out of the actual or alleged exposure to Damages does not include any of the following: electromagnetic fields,electromagnetic radiation or stray voltage. LMCIT CMC(11-86)(Rev. 11-03) Page 12 of 21 10. Failure to supply claim means any claim for subdivision, or similar ordinance or regulation; - damages arising out of the complete or partial or failure to supply water, electricity,gas or steam. b. Any litigation relating to the city's 11. Fungus(es) includes, but is not limited to, any involvement in the financing or approval of any form or type of mold, mushroom or mildew. development or redevelopment project. 12. Impaired property means tangible property, c. Any litigation relating to the granting,refusal, other than your product or your work, that interpretation, or enforcement of any franchise, cannot be used or is less useful because: ordinance, permit, license, or other mechanism through which the city authorizes or regulates a. It incorporates your product or your work that the provision of cable communications, is known or thought to be defective, deficient, electricity, gas, heat, telephone, or other public inadequate or dangerous; or utilities within the city. b. The city has failed to fulfill the terms of a Any litigation meeting the criteria listed above contract or agreement; will be considered to be land use, development or franchise litigation in its entirety, regardless if such property can be restored to use by: of whether the litigation may assert other claims as well. (1) The repair, replacement, adjustment or removal of your product or your work, or But land use,development or franchise litigation does not include litigation: (2) The city's fulfilling the terms of the contract or agreement. a. That seeks only compensation or other relief for an actual or alleged physical occupation, 13. Joint powers entity means an operating entity invasion, or use of property by the city; created by two or more governmental units entering into an agreement as provided by statute b. That seeks only a reduction or invalidation of for the joint exercise of governmental powers. a special assessment; An intergovernmental agreement will be deemed to create a joint powers entity if the agreement c. That seeks only compensation for damages establishes a board with the effective power to based on the city's actual or alleged negligent do any of the following, regardless of whether inspection or enforcement of the state building, the specific consent of the constituent plumbing, electrical, fire, or similar codes; governmental units may also be required: d. That seeks only amounts due under contract, a. To receive and expend funds; including any city bonds or other obligation; or b. To enter contracts; e. That was initiated by the city to enforce a building, zoning, subdivision, or similar c. To hire employees; ordinance or regulation related to the use of property, unless that litigation also involves a d. To purchase or otherwise acquire and hold challenge to the constitutionality of the real or personal property; or ordinance or regulation or to the legal authority of the city to enact it. e. To sue or be sued. 15. Lead claim means damages arising directly or 14. Land use, development or franchise litigation indirectly out of, resulting from, caused by or means: contributed to by: a. Any litigation relating to the application or a. The toxic-9r pathological properties of lead, interpretation of a city's land use, zoning, lead compounds or lead contained in any LMC1T CMC(11-86)(Rev.11-03) Page 13 of 21 materials; mechanical device, other than a hand truck, that is not attached to the aircraft,watercraft or auto. b. The actual or threatened abatement, mitigation, removal or disposal of lead, lead 19. Mobile equipment means any of the following compounds or materials containing lead; types of land vehicles, including any attached machinery or equipment: c. Any supervision, instructions, recommendations, warnings or advice given or a. Bulldozers, farm machinery, forklifts and which should have been given in connection with other vehicles designed for use principally off subparagraphs a. or b. above; or public roads; d. Any obligation of the covered party to b. Vehicles that travel on crawler treads; indemnify any party in connection with subparagraphs a., b. or c. above. c. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to 16. Limited pollution liability claim means any claim permanently mounted: for damages which resulted from a sudden occurrence which took place on or after the (1) Power cranes,shovels,loaders,diggers or retroactive date shown in the Declarations and drills; or prior to the expiration date of this covenant, and which: (2) Road construction or resurfacing equipment such as graders, scrapers or a. Was caused by an actual, alleged, or rollers; threatened discharge, dispersal, release, or escape of pollutants which took place entirely d. Vehicles not described in a., b., or c. above above ground and not within or on the surface of that are not self-propelled and are maintained any lake, stream,surface water,or other body of primarily to provide mobility to permanently water, and in which any resulting damages attached equipment of the following types: occurred entirely above ground and not within or on the surface of any lake,stream,surface water, (1) Air compressors, pumps and generators, or other body of water; or including spraying, welding, building cleaning, geophysical exploration, lighting b. Arises from the accidental rupture,backup or and well-servicing equipment; or overflow of the city's sanitary sewer, storm sewer, or water supply systems. (2) Cherry pickers and similar devices used to raise or lower workers; 17. LMCIT means the League of Minnesota Cities Insurance Trust. e. Vehicles not described in a., b., or c. above maintained primarily for purposes other than the 18. Loading or unloading means the handling of transportation of persons or cargo. property: 20. Mold claim means any claim for damages arising a. After it is moved from the place where it is directly or indirectly out of, resulting from, accepted for movement into or onto an aircraft, caused by, or contributed to by: watercraft or auto; a. Any fungus(es) or spore(s); b. While it is in or on an aircraft, watercraft or auto; or b. Any solid, liquid, vapor, or gas produced by or arising out of any funguses) or spore(s); c. While it is being moved from an aircraft, watercraft or auto to the place where it is finally c. Any material, product, building component, delivered; but loading or unloading does not or building structure that contains, harbors, include the movement of property by means of a nurtures or acts as a medium for any fungus(es) LMCIT CMC(11-86)(Rev. 11-03) Page 14 of 21 or spore(s); d. Assault or battery committed for the purpose of protecting persons or property or incident to d. Any intrusion, leakage, or accumulation of an arrest. water or any other liquid that contains, harbors, nurtures or acts as a medium for fungus(es) or e. The use of another's advertising idea in your spore(s); advertisement. e. The actual or threatened abatement, f. Infringing upon another's copyright, trade mitigation,removal or disposal of fungus(es) or dress or slogan in your advertisement. spore(s) or any material, product, building component, or building structure that contains, 23. Pollutants means any solid, liquid, gaseous or harbors, nurtures or acts as a medium for any thermal irritant or contaminant,including smoke, fungus(es) or spore(s); vapor, soot,fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, f. Any supervision, instructions, reconditioned or reclaimed. recommendations, warnings or advice given or which should have been given in connection with 24. Products-completed operations hazard includes subparagraphs a.,b., c., d., or e. above; or all bodily injury and property damage occurring away from premises the city owns or rents and g. Any obligation of the covered party to arising out of your product or your work except: indemnify any party in connection with subparagraphs a.,b., c., d., e., or f. above. a. Products that are still in the city's physical possession; or 21. Occurrence means: b. Work that has not yet been completed or a. With respect to COVERAGE A, a wrongful abandoned. act or a series of related wrongful acts. Your work will be deemed completed at the b. With respect to COVERAGE C, an accident, earliest of the following times: including continuous or repeated exposure to substantially the same general harmful condition. a. When all of the work called for in the city's contract has been completed; Provided that for purposes of SECTION III - LIMITS OF COVERAGE, occurrence shall be b. When all of the work to be done at the site given the same meaning as given in the has been completed if the city's contract calls for applicable statute establishing monetary limits work at more than one site; on the city's tort liability. c. When that part of the work done at a job site 22. Personal injury means injury other than bodily had been put to its intended use by any person or injury, arising out of one or more of the organization other than another contractor or following offenses: subcontractor working on the same project. a. False arrest, detention, or imprisonment, or Work that may need service, maintenance, malicious prosecution. correction, repair or replacement, but which is otherwise complete, will be treated as b. The publication or utterance of a libel or completed. slander or other defamatory or disparaging material, or a publication or utterance in 25. Property damage means: violation of an individual's right of privacy. a. Physical injury to tangible property,including c. Wrongful entry or eviction, or other invasion all resulting loss of use of that property; or of the right of private occupancy. b. Loss of use of tangible property that is not LMCIT CMC(11-86)(Rev. 11-03) Page 15 of21 physically injured. 30. Your product means: 26. Spore(s)include any reproductive body produced a. Any goods or products, other than real by or arising out of any fungus(es). property, manufactured, sold, handled, distributed or disposed of by: 27. Sudden occurrence means an accident or a related series of accidents and the release of (1) The city; pollutants resulting therefrom,all of which begin and end within 72 hours; except that each (2) Others trading under the city's name; or incident in which the city's sanitary sewer backs up into a building is deemed to be a separate (3) A person or organization whose business sudden occurrence. In the case of a related or assets the city has acquired; and series of accidents, the sudden occurrence will be deemed to have taken place when the first b. Containers (other than vehicles), materials, accident in the related series of such accidents parts or equipment furnished in connection with took place. such goods or products. 28. Suit means a civil proceeding in which damages. Your product includes warranties or to which this coverage applies are alleged. Suit representations made at any time with respect to includes an arbitration proceeding alleging such the fitness,quality, durability or performance of damages to which the city must submit or submit any of the items included in a. and b. above. with LMCITs consent. Suit does not mean any criminal proceeding against any covered party or Your product does not include vending machines any open meeting law proceeding, unless or other property rented to or located for the use damages are also alleged in that proceeding. A of others but not sold. charge of employment discrimination filed with the Federal Equal Employment Opportunity 31. Your work means: Commission, the Commissioner of the Minnesota Department of Human Rights, or a a. Work or operations performed by the city or local human rights commission as defined in on the city's behalf; and Minnesota Statute §363.01, subd. 23, shall be deemed to be a suit alleging damages. b. Materials, parts or equipment furnished'in connection with such work or operations. 29. Wrongful act means any actual or alleged error, statement, act, omission, offense, neglect, Your work includes warranties or representations accident, or violation. Violation includes made at any time with respect to the fitness, violation of any rights,immunities,or privileges quality, durability, or performance of any of the secured by the Constitution and Laws of the items included in a. or b. above. United States of America. SECTION V - SUPPLEMENTARY PAYMENTS With respect to any claim or suit LMCIT defends coverage applies.LMCIT does not have to furnish under COVERAGES A, C,AND D,LMCIT will pay these bonds. supplementary payments. 3. The cost of bonds to release attachments,but only Supplementary payments means: for bond amount within the applicable limit of coverage. LMCIT does not have to furnish these 1. All expenses LMCIT incurs. bonds. 2. Up to $250 for cost of bail bonds required 4. All reasonable expenses incurred by the covered because of accidents or traffic law violations party at LMCITs request,to assist it in the: arising out of the use of any vehicle to which the LMCIT CMC(11-86)(Rev. 11-03) Page 16 of 21 a. Investigation or defense of the claim or suit,or 7. All interest on the full amount of any judgment that accrues after entry of the judgment and b. Litigation of any land use, development or before LMCIT has paid, offered to pay, or franchise litigation which is filed or served. deposited in court the part of the judgment that is within the applicable limits of coverage. Reasonable expenses include the actual loss of earnings up to $100 a day because of time off 8. Up to$200,000 for all awards for attorneys' fees from work. pursuant to a statute, but this supplementary payment does not include: 5. All costs taxed against the covered party in the suit. a. Awards for attorneys' fees with respect to federal civil rights suits and state human rights 6. Prejudgment interest awarded against the covered suits; or party on that part of the judgment LMCIT pays. If LMCIT makes an offer to pay the applicable b. Attorneys' fees awarded for an act, error, limit of coverage, LMCIT will not pay any omission or violation which LMCIT does not prejudgment interest based on that period of time have a duty to indemnify pursuant to after the offer. SECTION VI- CONDITIONS, 1. SECTION VI - CONDITIONS 1. LIMITATIONS ON LMCIT'S DUTY TO 2. FINANCIAL RESPONSIBILITY LAW INDEMNIFY When this covenant is certified as proof of financial LMCITs duty to pay on behalf of or to indemnify a responsibility for the future under the provisions of covered party other than the city shall not apply to any motor vehicle financial responsibility law, such any act, error, omission, or violation: coverage as is afforded by this covenant shall comply with the provisions of such law to the extent of the a. Which constitutes malfeasance in office; or coverage and limits of liability required by such law. b. Which constitutes willful neglect of duty; or 3. COVERED PARTY'S DUTIES IN THE EVENT OF OCCURRENCE, CLAIM OR c. Which constitutes bad faith; or SUIT d. For which the city is not authorized to indemnify a. In the event of a claim or suit, notice containing any person by statute; or particulars sufficient to identify the covered party and also reasonably obtainable information with e. Which constitutes dishonesty on the part of a respect to the time, place and circumstances covered party; or thereof, and the names and addresses of the injured and of available witnesses, shall be given f. Which constitutes the willful violation of a statute by or for the covered party to LMCIT or any of its or ordinance by any official, employee, or agent authorized agents as soon as practicable. of the city. The city shall promptly take, at its own expense, The terms "malfeasance", "willful neglect of duty", all reasonable steps to prevent damages from and "bad faith" shall be given the same meaning in arising out of the same or similar conditions; this covenant as given in the applicable statute with provided that: respect to the city's duty to defend or indemnify its officers, employees or agents. (1) A failure to take such preventative measures shall not constitute a breach of this condition LMCIT CMC(11-86)(Rev.11-03) Page 17 of21 unless LMCIT has requested the city in writing to (b) Does not apply on a claims made basis. undertake such preventative measures; and b. A basic extended reporting period of 60 days (2) Such expense shall not be recoverable under from the end of the coverage period is this covenant. automatically provided without additional charge. Notice of damages or injury is not notice of a c. A supplemental extended reporting period of claim. unlimited duration is available, but only by an endorsement and for an extra charge. The b. If claim is made or suit is brought against the supplemental extended reporting period starts 60 covered party, the covered party shall days after the end of the coverage period. immediately forward to LMCIT every demand, notice,summons or other process received by him The city must give LMCIT a written request for or his representative. the endorsement within 60 days after the end of the coverage period. The supplemental extended c. The covered party shall cooperate with LMCIT reporting period will not go into effect unless the and, upon LMCITs request, assist in making city pays the additional premium promptly when settlements, assist in the conduct of suits and due. assist in enforcing any right of contribution or indemnity against any person or organization who The additional premium for the supplemental may be liable to the covered party because of extended reporting period will be a percentage of damages for which coverage is afforded under the annual expiring premium for COVERAGE this covenant; and the covered party shall attend PART A. hearings and trials and assist in securing and getting evidence and obtaining the attendance of Number of Years Since witnesses. The covered party shall not, except at Retroactive Date Shown his own cost, voluntarily make any payment, on Declarations Page Additional Cost assume any obligation or incur any expense other than for first aid to others at the time of accident. 1 55.0% 2 57.0% d. With respect to any incident or occurrence for 3 60.3% which no claim for damages has been made but 4 65.9% that might result in a covered claim for damages 5 70.8% under this covenant,LMCIT shall have the right, 5+ 70.8% at its discretion and at its expense, to associate with the covered party in the investigation, d. An extended reporting period does not extend the handling and defense of such matter, in which coverage period or change the scope of coverage event LMCIT and the covered party shall provided. It applies only if the date of the mutually cooperate. occurrence giving rise to the claim for damages is after the retroactive date and before the end of 4. EXTENDED REPORTING PERIOD the coverage period. a. LMCIT will provide one or more extended Claims for damages which are first received and reporting periods, as described below, if: recorded during the basic extended reporting period (or during the supplemental extended (1) COVERAGE A is canceled or not renewed; reporting period, if it is in effect) will be deemed or to have been made on the last day of the coverage period. (2) LMCIT renews or replaces COVERAGE A with coverage that: Once in effect, extended reporting periods may not be canceled. (a) Has a retroactive date later than the date shown on the Declarations page; or LMCIT CMC(11-86)(Rev. 11-03) Page 18 of 21 e. Extended reporting periods do not reinstate or the extent that it may apply to claims covered increase the limits of coverage applicable to any under this covenant. claim to which this coverage part applies. b. It is the express intent of the city and of LMCIT f. Neither the basic extended reporting period nor that the procurement of this covenant shall not the supplemental extended reporting period is waive any other immunities, limitations, or applicable to,and no extended reporting period is defenses imposed by or available under any provided for, the following: statute or common law which is applicable to any covered party. (1) Any limited pollution liability claim; 7. CONSENT TO SETTLE (2) Any land use, development or franchise litigation; or The city may prohibit LMCIT from settling any claim or suit against a covered party without the city's (3) Any lead claim or asbestos claim. consent, as provided below: 5. ACTION AGAINST LMCIT a. At any time before LMCIT has offered or made a settlement of a claim or suit, the city may notify No action shall lie against LMCIT unless, as a LMCIT that LMCIT may not settle the claim or condition precedent thereto, there shall have been suit without the city's consent.The city must give full compliance with all of the terms of this a separate notice for each claim or suit which the covenant,nor until the amount of the covered party's city intends to prohibit LMCIT from settling obligation to pay shall have been fully determined without the city's consent. either by judgment against the covered party after actual trial or by written agreement of the covered b. If the city notifies LMCIT that the claim or suit party, the claimant and LMCIT. may not be settled without the city's consent, the city must designate an individual authorized to Any person or organization or the legal give or refuse consent on the city's behalf. The representative thereof who has secured such city's notice must include the name, address, and judgment or written agreement shall thereafter be telephone number of the individual authorized to entitled to recover under this covenant to the extent give or refuse consent on the city's behalf of the coverage afforded by this covenant.No person or organization shall have any right under this c. If the city has notified LMCIT that the claim or covenant to join LMCIT as a party to any action suit may not be settled without the city's consent, against the covered party to determine the covered LMCIT will notify the city of the terms and party's Iiability, nor shall LMCIT be impleaded by conditions of any proposed settlement. If the city the covered party or his legal representative. does not consent to the proposed settlement, the city must notify LMCIT within 14 days of the date Bankruptcy or insolvency of the covered party or of the city receives notice of the proposed the covered party's estate shall not relieve LMCIT of settlement, unless the city and LMCIT have any of its obligations hereunder. mutually agreed to a longer or shorter period. If within that time the city does not notify LMCIT 6. WAIVER OF STATUTORY LIABILITY that the city does not consent to the settlement, LIMITATIONS the city will be deemed to have consented to the settlement. a. It is the express intent of the city and of LMCIT that the procurement of this covenant shall not d. If the city refuses to consent to a settlement waive any monetary limits of liability provided by recommended by LMCIT, LMCIT will not be Minnesota Statute §466.04 by any comparable or liable for any excess amount. Excess amount successor statute, or by common law, which may means the sum of all damages and legal defense be applicable to any covered party; and that any costs for the claim or suit minus the sum of: previous waiver of liability limits is revoked to LMCIT CMC(11-86)(Rev. 11-03) Page 19 of 21 (1) The amount of the settlement proposed by damages and loss adjustment expenses, including LMCIT; and defense costs, for all claims to which the coverage applies. (2) Any costs of defense incurred before the date of the city's refusal.Any excess amount shall not Coverage issued pursuant to this section will be be included in the calculation of damages for issued with the same inception date and the same purposes of any applicable Municipal Liability retroactive date as this covenant. Deductible or General Annual Aggregate Deductible. The premium must be paid to LMCIT before the coverage goes into effect. The premium for coverage e. If the city refuses to consent to a settlement issued pursuant to this section shall be equal to the recommended by LMCIT,LMCIT may, at its sole greater of$5,000 or the premium the joint powers discretion, exercise either of the following entity would otherwise pay for coverage at LMCITs options: current rates. (1) LMCIT may pay to the city an amount equal 9. NO DUPLICATION OF COVERAGE to the amount of the recommended settlement, minus any applicable deductible. If LMCIT This covenant shall not apply to any claim or claims makes such payment,LMCIT has no further duty arising out of an occurrence, if any claim or claims to defend or to indemnify the city or any other arising out of that occurrence were covered under covered party for this claim or suit, and the city any prior covenant issued by LMCIT to the city. --assumes any duty which LMCIT would otherwise have had to defend and to indemnify any other 10. OTHER COVERAGE covered party. If,pursuant to the COMMON CONDITIONS, 11.a., (2) LMCIT may continue to defend the claim or a covered party has primary liability coverage as an suit. If LMCIT elects to continue to defend the additional insured or additional named insured on claim or suit, the city must reimburse LMCIT for another party's coverage, and that insurer fails to any excess amount. defend or indemnify the covered party,LMCIT will do so under this covenant. f. If the city refuses to consent to a settlement recommended by LMCIT, the city must defend In any case in which LMCIT incurs costs for a claim and indemnify LMCIT for any claim or suit which is also covered under any other liability arising out of the failure to settle the original coverage or insurance,LMCIT shall be entitled to the claim or suit. covered party's rights to recover those costs from that insurer. The covered party shall cooperate with 8. RETROACTIVE JOINT POWERS and assist LMCIT as requested in enforcing any COVERAGE rights against that insurer. LMCIT will,upon the city's request,issue retroactive 11. SEPARATION OF COVERED PARTIES comprehensive municipal coverage to any joint powers entity in which the city is a member and As respects the particulars and statements contained which is not named as a covered party under any in the application for this coverage and the exclusion other LMCIT coverage. set forth herein, this coverage shall be construed as a separate agreement with each covered party. Pursuant to this section, LMCIT will issue its Nothing in this paragraph shall be construed to standard Comprehensive Municipal Coverage increase LMCITs maximum liability set forth in the document to the joint powers entity, but coverage Declarations and as described in SECTION III - shall be subject to an annual aggregate limit of LIMITS OF COVERAGE. $200,000. This limit shall apply to the sum of LMCIT CMC(11-86)(Rev. 11-03) Page 20 of21 12. DEDUCTIBLES (2)The covered party's duties, in the event of an occurrence, apply irrespective of the application a. For purposes of deductibles under this coverage, of the deductible amount. the deductible applies to the sum of the damages, loss adjustment expense, defense costs and c. LMCIT may pay any part or all of the deductible supplementary payments as defined in SECTION amount to effect settlement of any claim or suit, V-SUPPLEMENTARY PAYMENTS. and upon notification of the action taken,the city shall promptly reimburse LMCIT for such part of b. The terms of the covenant, including those with the deductible amount as has been paid by respect to: LMCIT. (1)The LMCITs rights and duties with respect to the defense of suits; and LMCIT CMC(11-86)(Rev.11-03) Page 21 of21 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 ►1 Coverage D Land Use, Development or Franchise 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 Page 1 of 1 ME066(11/96) (Rev. 11/02) 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) MUNICIPAL LIABILITY LMC League of Minnesota Cities Cities promoting excellence CITY OAK PARK HEIGHTS, CITY OF COVENANT NUMBER CMC 25101 1 HAZARD PREMIUM BASIS ADVANCED PREMIUM Premises Operations Code Basis OPERATING EXPENDITURES A 2,099,475 PREMIUM INCLUDED FOR ALL HAZARDS WATERWORKS D 120,540 WHERE A PREMIUM BASIS IS SHOWN STREETS B 20 Independent Contractors G 1,496,153 Products/Completed Operations WATERWORKS H 235,000,000 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 Covenant Number: MUNICIPAL AUTOMOBILE DECLARATIONS CMC 25101 Coverage is Provided by: THE LEAGUE OF MINNESOTA CITIES INSURANCE TRUST (Herein called LMCIT) League of Minnesota Cities Cities promoting excellence J Item 1. CITY: OAK PARK HEIGHTS, CITY OF Item 2. COVERAGE PERIOD: From: 07/07/04 To: 07/07/05 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) CM C(11-03) MA082(11-03) MA083(11-03) MA084(11-03) MA085(11-03) ME063(11-01) ME066(11-02) M E073(11-01) M E079(11-03) LMCIT DEC-016(1186)(Rev.11/03) MUNICIPAL AUTOMOBILE PHYSICAL DAMAGE COVERAGE Various provisions in this covenant restrict coverage. The word you and your refer to the city shown in the Read the entire covenant carefully to determine rights, Declarations. The words we, us and our refer to duties,and what is or is not covered. Throughout this LMCIT providing this covenant. covenant,the word city refers to the first city shown in the Declarations. The word LMCIT refers to the Other words and phrases that appear in italics have League of Minnesota Cities Insurance Trust. special meaning, as given in SECTION IV - DEFINITIONS. SECTION I - COVERAGE AGREEMENT We will pay for direct and accidental damage or loss II - CAUSES OF LOSS AND DAMAGES NOT to a covered automobile unless the cause of loss or COVERED. damage is not covered as described under SECTION 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 a. Damages caused by: event that 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 fire truck or similar emergency or (1) War, including undeclared or civil war; 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 or This exclusion does not apply if the above damage other authority using military personnel or other results from other loss or damage covered by this agents; or Coverage Part. (3) Insurrection, rebellion, revolution, usurped b. Blowouts,punctures,or other road damage to tires. power or action taken by governmental authority in hindering or defending against any of these. This exclusion does not apply if the above damage results from other loss or damage covered by this Coverage Part. SECTION III - LIMITS OF COVERAGE AND VALUATION 1. LIMITS OF COVERAGE (1) The actual cash value of the damaged or stolen property at the time of the loss or damage; or a. The most we will pay for loss or damage is the smaller of the following amounts: (2) The cost of repairing or replacing the damaged or stolen property with other like kind and quality. LMCITA0010(11-89)(Rev.11-03) Page 1 of3 b. We will not pay for loss or damage in any one b. If you and we fail to agree as to the amount of loss occurrence until the amount of loss or damage or damage, either may demand an appraisal of the exceeds the Deductible in Item 5 of the loss or damage. In such event,you and we shall Declarations, and the amount of loss will be each select a competent appraiser. The two reduced by the Deductible amount. appraisers will select a competent and disinterested umpire. If they cannot agree, either may request The Deductible applies against the total loss that selection be made by a judge of court having incurred by you from any one occurrence, jurisdiction. The appraisers will state separately regardless of the number of covered automobiles the actual cash value and the amount of the loss or involved. damage. If the appraisers fail to agree, they will submit their differences to the umpire. An award 2. LOSS VALUATION agreed to by any two will be binding. a. At our option,we may: Each party will: (1) Pay for, repair, or replace damaged or stolen (1) Pay its chosen appraiser; and property; (2) Bear the other expenses of the appraisal and (2) Return the stolen property at our expense. We umpire equally. will pay for any damage that results to the covered automobile from the theft; or We shall not be held to have waived any of our rights by any act relating to appraisal. (3) Take all or any part of the damaged or stolen property at an agreed or appraised value. SECTION IV - DEFINITIONS 1. Automobile means a land motor vehicle, trailer or However, the following automobiles are not a semi-trailer designed for travel on public roads. covered automobile while used in the business of the city: 2. Covered automobile means: a. Any automobile which is owned or leased by a a. Any automobile that you own; city official, employee or volunteer; or b. Any automobile that you rent or lease for a b. Any automobile which is owned or leased by a period of more than 30 days; member of the city official's, employee's or volunteer's household. c. Any automobile that you borrow; 3. City means governmental body or entity first d. Any automobile that you rent or lease from a named in the Declarations. For purposes of this person or organization that is not in the business of coverage,city includes relief associations. Unless renting or leasing automobiles; or specifically named in the Declarations, city shall not include: e. Any automobile that you or a city official, employee, or volunteer rents for city business for a. Gas, electrical or steam utilities commission; less than 30 days from a person or organization in the business of renting automobiles if the rental b. Port authority, housing and redevelopment agreement requires you or the individual renting authority,economic development authority,area or the automobile to pay for loss or damage to the municipal redevelopment authority or similar automobile. agency; LMCIT A0010(11-89)(Rev.11-03) Page 2 of 3 c. Municipal power agency; intergovernmental agreement will be deemed to create a joint powers entity if the agreement d. Municipal gas agency; establishes a board with the effective power to do any of the following, regardless of whether the e. Hospital or nursing home board or commission; specific consent of the constituent governmental units may be required: f. Airport commission; a. To receive and expend funds; g. Welfare or public relief agency; b. To enter into contracts; h. School board; c. To hire employees; i. Joint powers entity. d. To purchase or otherwise acquire or hold real or 4. Joint powers entity means an operating entity personal property; or created by two or more governmental units entering into an agreement as provided by statute for the e. To sue or be sued. joint exercise of governmental powers. An SECTION V - CONDITIONS (2) Puerto Rico; and 1. COVERAGE UNDER TWO OR'MORE ( ) P erto , COVERAGES (3) Canada. If two or more of this covenant's coverages apply to the same loss or damage, we will not pay more than 3. LOSS CONDITIONS the actual amount of the loss or damage. Duties in the event of loss: 2. COVERAGE PERIOD, COVERAGE TERRITORY a. You must promptly notify us of any loss. Under this Coverage Part: b. You must tell us how, when, and where the loss happened. You must assist in obtaining the names a. We cover loss or damage commencing: and addresses of any witnesses. (1) During the coverage period shown in the c. You must do what is reasonably necessary after the Declarations; and loss at our expense to protect the covered automobile from further loss. You must submit a (2) Within the coverage territory, proof of loss when required by us. b. The coverage territory is: d. You must promptly notify the police if the covered automobile or any of its equipment is stolen. (1) The United States of America (including its territories and possessions); LMCIT A0010(11-89)(Rev.11-03) Page 3 of 3 BASIC ECONOMIC LOSS BENEFITS AND UNINSURED AND UNDERINSURED MOTORISTS COVERAGE LMC1T 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 1 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 Page 1 of 1 ME063(11/95)(Rev. 11/01) 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 ►1 Coverage D Land Use, Development or Franchise 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 Page 1 of 1 M E066(11/96) (Rev. 11/02) r: 4 t. A f LMC 1 1 League of Minnesota Cities Municipal Excess cihe9promoting escenenae Liability Coverage i PREPARED ESPECIALLY FOR V CITY OF OAK PARK HEIGHTS t 14168 OAK PARK HEIGHTS BLVD P.O. BOX 2007 STILLWATER, MN 55082 07/07/04 - 07/07/05 z i Agent: _, LANDMARK INSURANCE if 232 SOUTH LAKE STREET FOREST LAKE, MN 55025 League of Minnesota Cities Es 1 145 University Avenue West St. Paul, MN 55103-2044 Phone: (651) 281-1200 a Fax: (651) 281-1298 Web Site http://www.lmnc.org 1 f **IMPORTANT** PLEASE READ YOUR AGREEMENT 4 { MUNICIPAL EXCESS LIABILITY DECLARATIONS Covenant Number: Coverage is Provided by: MEL 4932 THE LEAGUE OF MINNESOTA CITIES LMC INSURANCE TRUST Previous Covenant Number: (Herein called LMCIT) Chen of otinesotaGlee ( � Cities promoting excellence MEL 4660 —' Item 1, CITY and MAILING ADDRESS: CITY OF OAK PARK HEIGHTS 14168 OAK PARK HEIGHTS BLVD. P.O. BOX 2007 STILLWATER, MN 55082 • Item 2. COVERAGE PERIOD: ONE YEAR From: 07/07/04 To: 07/07/05 12:01 AM Standard Time at Mailing Address Indicated on Item 1. Claims Made Item 3. RETROACTIVE DATE:July 07, 1987 Item4. THE COVERED PARTY IS:CITY Item 5. LIMITS OF COVERAGE: Aggregate Limit $ 1,000,000. Item 6. PREMIUM: $7,021. Item 7. FORM NUMBERS AND/OR ENDORSEMENTS FORMING A PART OF THE AGREEMENT AT ISSUE: MELC(11/02) 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 that appear in italics have special meaning, as coverage. Read the entire coverage agreement given in given in SECTION III -DEFINITIONS,or carefully to determine rights, duties, and what is in the underlying coverage. covered and not covered. Words and phrases SECTION I - LIABILITY COVERAGE 1. COVERAGE AGREEMENT 2. EXCLUSIONS a. Subject to the terms, conditions, limitations, In addition to the exclusions contained in the and exclusions contained herein, LMCIT will underlying coverage, the following exclusions pay amounts in excess of what LMCIT is apply to this coverage: obligated to pay under the terms of the underlying coverage. a. Any obligation to pay expenses under any medical payments coverage. b. The amount that LMCIT will pay is limited as described in SECTION II - LIMITS OF b. Any obligation imposed by law under any COVERAGE. automobile no-fault, uninsured motorist, underinsured motorist, workers' c. LMCIT will only pay if the date of the claim is compensation, disability benefits, or on or after the retroactive date, if any, unemployment compensation or any similar shown in the Declarations. law. d. Except as otherwise provided herein, this c. Any lead or asbestos claim. coverage is subject to the same terms, definitions, conditions and exclusions of the d. Any failure to supply claim. underlying coverage. e. Any mold claim. f. Awards for attorney's fees pursuant to statute, except for attorney's fees with respect to federal civil rights suits or state human rights suits. SECTION II - LIMITS OF COVERAGE 1. The Limits of Coverage shown in Item 5. of b. Claims made or suits brought; the Declarations and the rules below fix the most LMCIT will pay under the terms of this c. Persons or organizations making claims covenant regardless of the number of: or suits. a. Covered parties; LMCIT MELC(11/86)(Rev. 11/02) Page 1 of 2 2. The Aggregate Limit is the most LMCIT will 3. Each payment, including defense expenses pay under this covenant. The Aggregate and supplementary payments, LMCIT Limit includes defense expenses and makes under this covenant reduces, by the supplementary payments. amount of the payment, the Aggregate Limit. SECTION III - DEFINITIONS Underlying coverage means the the Workers Compensation and Employers Comprehensive Municipal Coverage and Liability Coverage as provided by LMCIT. Part Two- Employers Liability Coverage of 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% 5+ 100% LMCIT MELC (11/86)(Rev. 11/02) 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 rt„.7 Open Meeting Law LMC League of Minnesota Cities Cities promoting excellence Defense Cost Reimbursement Agreement PREPARED ESPECIALLY FOR CITY OF OAK PARK HEIGHTS 14168 OAK PARK BOULEVARD P.O. BOX 2007 STILLWATER, MN 55082 07/07/04 - 07/07/05 Agent: LANDMARK INSURANCE SERVICES 232 SOUTH LAKE STREET FOREST LAKE, MN 55025-2605 League of Minnesota Cities 145 University Avenue West St. Paul, MN 55103-2044 Phone: (651) 281-1200 Fax: (651) 281-1298 Web Site http:llwww.lmnc.org 4 **IMPORTANT** PLEASE READ YOUR AGREEMENT AGREEMENT DECLARATIONS Covenant Number: OPEN MEETING LAW DEFENSE COST OML 3375 REIMBURSEMENT AGREEMENT Coverage Is Provided By: LMC Previous Covenant Number: THE LEAGUE OF MINNESOTA CITIES OML 2855 INSURANCE TRUST League of Minnesota Cities (Herein called LMCIT) Cities promoting excellence Item 1. COVERED PARTY and MAILING ADDRESS: CITY OF OAK PARK HEIGHTS 14168 OAK PARK HEIGHTS BLVD. P.O. BOX 2007 STILLWATER, MN 55082 Item2. COVERAGE PERIOD: ONE YEAR 12:01 AM Standard Time at Mailing Address Indicated Above. From: 07/07/04 To: 07/07/05 Claims Made Rem 3. RETROACTIVE DATE: November 09, 1994 Item4. THE COVERED PARTY IS: X City Joint Powers Entity Other(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. Items. PREMIUM: $ 459. Item 7. FORMS AND ENDORSEMENTS APPLICABLE TO AGREEMENT: OMLRA-1(11/99) OML-001(11/97) ME063(11/01) iarP)) Executive Director,LMCIT LMCIT DEC-019(11-93)(Rev.11/99) Administered by:Berkley Risk Administrators Company,LLC OPEN MEETING LAW DEFENSE COST REIMBURSEMENT AGREEMENT I. OPEN MEETING LAW DEFENSE 2. LMCIT shall have no duty to provide COST COVERAGE a defense to a city official with respect to a legal action against that LMCIT will reimburse a city official for 80 city official seeking penalties based percent of the defense costs incurred by upon an alleged violation of the the city official in defending an Open Minnesota Open Meeting Law; Meeting Law lawsuit, if the following however, LMCIT shall have the right conditions are met: to intervene at its expense in the investigation or defense of such 1. The date on which the Open legal action. Meeting Law lawsuit is commenced must be within the 3. The city or the city official shall give term of this agreement; and; prompt notice to LMCIT of any actual or threatened legal action 2. The date on which the violation against the city official seeking took place or is alleged to have penalties against the city official for taken place must be on or after an alleged violation of the Minnesota the retroactive date, if any, Open Meeting Law. - - shown in the Declarations. 4. The city and the city official shall at An Open Meeting Law lawsuit is all times cooperate with and deemed to be commenced on the date promptly respond to LMCIT's the city official is served notice of the requests for information, lawsuit. investigative data, records, or any other material documentation. H. LIMITS 5. The city official will be reimbursed The Open Meeting Law Defense Cost only for defense costs incurred with Reimbursement Agreement Limit is respect to legal services actually $50,000. This is the most LMCIT will rendered and expenses actually reimburse any one city official for incurred. defense costs for Open Meeting Law lawsuits commenced during the term of 6. The city official shall have complete this agreement, regardless of the freedom to choose an attorney - number of lawsuits, the number of licensed in the State of Minnesota to actual or alleged violations, or the date provide the city official with legal the defense costs are actually incurred. services with respect to which defense costs are reimbursable III. CONDITIONS AND EXCLUSIONS under this Agreement. 1. The term of this Agreement shall 7. It is the express intent of the parties be one year beginning with the to this Agreement that, neither the effective date stated in the city nor the city official, waive any Declarations. Subsequent immunities, defenses, or limitations renewals of this Agreement shall on liability available under Minnesota be treated as separate terms. statutes or common law. LMCIT OMLRA-1(11/93)(Rev.11/99) Page 1 of 2 8. In the event that a city official makes a recovery of defense costs from any third 2. "City official' means any former or party, LMCIT shall be reimbursed for present elected or appointed official of any payment it has made under this the city or any present or former Agreement after the city official has employee of the city. been fully reimbursed for his/her 20% share of the defense costs. 3. "Defense costs" means reasonable and necessary attorney fees, court costs, 9. LMCIT may cancel this Agreement by court reporter and transcript fees, mailing or delivering written notice to the general witness and expert witness fees city at least: and expense, and similar defense related costs. Defense costs does not a. Ten (10) days before the effective include any fines or penalties, or any date of cancellation for nonpayment attorney's fees awarded to a plaintiff in a of the charge for this Agreement; or suit charging a violation of the Open Meeting Law. b. Thirty (30)days before the effective date of cancellation for any other 4. "Joint powers entity' means an reason. operating entity created by two or more governmental units entering into an If LMCIT decides not to renew this agreement as provided by statute for the Agreement, LMCIT will mail or joint exercise of governmental powers. deliver to the city written notice of An intergovernmental agreement will be non-renewal not less than thirty 30 deemed to create a joint powers entity if days before the expiration date. the agreement establishes a board with the effective power to do any of the 10. It is mutually understood and agreed following, regardless of whether the that the city and all other LMCIT pool specific consent of the constituent participants are jointly and severally governmental units may also be liable for all claims and expenses of the required: pool. The amount of any liabilities in excess of assets may be assessed to a. To receive and expend funds; LMCIT pool participants when a deficiency is identified. b. To enter into contracts; IV. DEFINITIONS c. To hire employees; 1. "City means the city or other d. To purchase or otherwise acquire governmental body or entity first named and hold real or personal property; or in the Declarations. Unless specifically named in the Declarations, city shall not e. To sue or be sued. include a gas, electrical, or steam utilities commission; port authority, 5. "LMCIT' means the League of housing and redevelopment authority, Minnesota Cities Insurance Trust. economic development authority, area or municipal redevelopment authority, or 6. "Open Meeting Law lawsuit" means a similar agency; municipal power agency; lawsuit seeking penalties against a city municipal gas agency; hospital or official based on an allegation that the nursing home board or commission; city official has violated M.S. '471.705, airport commission; welfare or public commonly known as the Minnesota relief agency; school board; or joint Open Meeting Law. powers entity. LMCIT OMLRA-1(11/93)(Rev.11/99) 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" from 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(11/97) 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 Page 1 of 1 M E063(11/95)(Rev. 11/01)