12-012 - 02-21 - establish limited clean-up and damage protection - water and sewer customers Resolution 12-12 February 21, 2012
Member Freiberg introduced the following resolution and moved its adoption:
RESOLUTION ESTABLISHING LIMITED CLEAN-UP AND PROPERTY DAMAGE
PROTECTION FOR SEWER BACK-UPS AND WATER MAIN BREAKS FOR
WATER AND SEWER CUSTOMERS
WHEREAS, the City provides water and sanitary sewer services to many of the
property owners within the City; and
WHEREAS, water main breaks may cause water to enter into property causing
damage; and
WHEREAS, blockages or other conditions in city sanitary sewer lines may cause the
back-up of sewage into properties that are connected to those city sanitary lines; and
WHEREAS, water main breaks and sewer back-ups pose a public health and safety
concern; and
WHEREAS, it is often difficult to determine the exact cause and responsibility for
water main and sanitary sewer back-ups; and
WHEREAS, the City Council desires to encourage the expeditious clean-up of
properties that have encountered damage from water main breaks and sewer back-ups;
and
WHEREAS, the City Council desires to minimize the potential of expensive lawsuits
arising out of water main breaks and sanitary sewer back-up claims; and
WHEREAS, the City is a member of the League of Minnesota Cities Insurance Trust
(LMCIT); and
WHEREAS, LMCIT has offered the City limited "no fault" sewer coverage and water
main break coverage that will reimburse property users of the water and sewer system for
certain clean-up costs and property damage regardless of whether the City is at fault; and
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Golden
Valley, Minnesota, as follows: the City, as part of the contract for providing water and
sewer services to the customers of the City, and in consideration of the payment of water
and sewer bills, agrees to reimburse water and sanitary sewer customers for up to $10,000
of clean-up costs and property damages caused by a water main break or sanitary sewer
back-up, regardless of whether the City is negligent or otherwise legally liable for damages,
subject to the following conditions:
Resolution 12-12 - Continued February 21, 2012
I. Sanitary Sewer Back-Ups. For Sanitary sewer back-ups:
A. The back-up must have resulted from a condition in the City's sanitary sewer system
or lines, and not from a condition in a private line.
B. The back-up must not have been caused by catastrophic weather or other events
for which Federal Emergency Management Assistance is available.
C. The back-up must not have been caused by an interruption in electric power to the
City's sewer system or to any City lift station, which continues for more than 72
hours.
D. The back-up must not have been caused by rainfall or precipitation that would
constitute a 100-year storm as determined by the National Weather Service.
E. Neither the City nor LMCIT will reimburse any costs which have been or are eligible
to be covered under a property owner's own homeowners' or other property
insurance, or which would be eligible to be reimbursed under a National Flood
Insurance Protection (NFIP) policy, whether or not the property owner actually has
NFIP Coverage.
F. The maximum amount that the City or LMCIT will reimburse is $10,000 per building,
per year. In this regard, a structure or group of structures served by a single
connection to the City's sewer system is considered a single building.
II. Water Main Breaks. For water main breaks:
A. LMCIT will pay for claims presented by the City for water main break damage to
property of others which was not caused by the City's negligence.
B. Neither the City nor LMCIT will pay for damages or expenses for which the property
owner has been or is eligible to be reimbursed by any homeowners' or other
property insurance.
C. The maximum amount that the City or LMCIT will reimburse is $10,000 to any
claimant, regardless of the number of occurrences or the number of properties
affected. :
D. Neither the City nor LMCIT will pay more than $250,000 for water main break
damages resulting from any single occurrence. All water main break damage which
occurs during any period of 72 consecutive hours is deemed to result from a single
occurrence. If the total water main break damage for all claimants in a single
occurrence exceeds $250,000, the reimbursement to each claimant will be
calculated as follows:
1. A preliminary reimbursement figure is established for each claimant, equal to the
lesser of the claimant's actual damages or $10,000.
2. The sum of the preliminary reimbursement figures for all claimants will be
calculated.
3. Each claimant will be paid a percentage of his or her preliminary reimbursement
figure, equal to the percentage calculated by dividing $250,000 by the sum of all
claimants' preliminary reimbursement figures.
Resolution 12-12 - Continued February 21, 2012
�
� Shep rd M. Harris, Mayor
ATTEST:
V
Susan M. Virnig, City Clerk
The motion for the adoption of the foregoing resolution was seconded by Member Scanlon
and upon a vote being taken thereon, the following voted in favor thereof: Clausen,
Freiberg, Harris, Pentel and Scanlon; and the following voted against the same: none,
whereupon said resolution was declared duly passed and adopted, signed by the Mayor
and his signature attested by the City Clerk.