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15-12 - 02-03 - Establishing Limited for Sewer Customer Resolution 15-12 February 3, 2015 Member Clausen 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 property within its jurisdiction; and WHEREAS, water main breaks may cause water to enter into property causing damage; and WHEREAS, blockages or other conditions in the city sanitary sewer lines may cause the back-up of sewage into properties that are connected to those City's sanitary lines; and WHEREAS, water main breaks and sewer back-ups pose a public health and safety concern; and WHEREAS, it may be difficult to determine the exact cause and responsibility for a water main break or 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 WHERAS, 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 users of the water and sewer system for certain clean-up costs and property damage regardless of whether the City is at fault. NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Golden Valley, Minnesota, as follows: the City will 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: 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 any catastrophic weather or other event which has been declared by the President of the United States to be a major disaster pursuant to 42 U.S.C. §§ 5121-5206, commonly known as the Stafford Act. Resolution 15-12 - Continued February 3, 2015 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 an amount of precipitation equivalent to rainfall amounts which exceed: • 2.0 inches in a 1-hour period; or • 2.5 inches in a 3-hour period; or • 3.0 inches in a 6-hour period; or • 3.5 inches in a 12-hour period; or • 4.0 inches in a 24-hour period; or • 4.5 inches in a 72-hour period; or • 5.5 inches in a 168-hour period. 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 of Golden Valley or LMCIT will reimburse is $10,000 per building, per year. 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. 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 B. 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. C. 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. lll. The City of Golden Valley's determination to make these payments is contingent on and expressly limited to the extent that No-Fault Coverage is in force and available to reimburse the City for the costs set forth herein. IV. The City of Golden Valley retains the right, in its sole discretion, to revoke, rescind, or modify this resolution at any time. Resolution 15-12 - Continued February 3, 2015 V. The City of Golden Valley hereby rescinds any prior resolution providing no-fault sewer backup coverage and water main break coverage. IN WITNESS WHEREOF, the City of Golden Valley, by action of its City Council, caused this Resolution to be approved on the 3rd day of February, 2015. She and M. Harris, Mayor ATTEST: Kristine A. Luedke, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member Fonnest and upon a vote being taken thereon, the following voted in favor thereof: Harris, Snope, Schmidgall, Clausen and Fonnest 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.