HomeMy WebLinkAboutResolution No. 2009-042 Providing for Reimbursement for Damages to Residences as a Result of Backup of Sanitary Sewer System By a Surcharge From Water Main Break w91NA, RESOLUTION NO. 2009-42
oe PROVIDING FOR REIMBURSEMENT FOR DAMAGES
m TO RESIDENCES AS A RESULT OF BACKUP
OF SANITARY SEWER SYSTEM BY A
SURCHARGE FROM WATER MAIN BREAK
City of Edina
BE IT RESOLVED by the City Council of the City of Edina, as follows:
Section 1. Recitals. The City owns and operates a water utility and a sanitary sewer utility. On February 19,
2009, a break in a water main located in Wooddale Avenue in the vicinity of Wooddale and West 60th Street resulted in a
backup in the sanitary sewer system in homes in the vicinity due to "surcharging" caused by the water main break (the
"Event"). Owners of homes damaged by the Event have submitted claims to the City seeking reimbursement from the
City for their damages. The City's liability insurance carrier has reviewed the Event and denied the claims because of an
absence of showing of negligence on the part of the City. On April 7, 2009 the City Council took testimony concerning
the Event and the damages to homes caused by the Event. Many of the homeowners damaged by the Event do not
have insurance coverage for sewer backups or, if they have insurance coverage, have incurred damages in excess of
coverage limits.
Section 2. Findings. The City Council believes that the Event is a unique event that has resulted in a hardship
to the owners and residents of homes in which the sanitary sewer backup occurred, and that there is a potential public
health and safety hazard to the City if the damaged homes are not properly cleaned, sanitized and repaired. Because of
either a lack of insurance coverage or being underinsured, certain homeowners do not have the financial means to
properly clean, sanitize and repair the damage. The City Council believes that because of the uniqueness of the Event
and the potential health and safety hazard, some form of City assistance to the owners of the residences damaged by
the Event is appropriate.
• Section 3. Costs Eligible for Reimbursement. The City Council hereby approves reimbursement to
homeowners for damages caused by the Event not covered by the homeowner's property insurance in the amount of up
to $15,000 per home. Such reimbursement shall cover costs of clean up and sanitation of the home, costs of the
disposal of damaged items, losses from damage to carpets, heating and air conditioning equipment, plumbing and
sanitary sewer systems, hot water heaters and water softeners, and losses from damage to sheet rock, wall board and
paneling. Costs of replacement or sanitizing of rugs and furniture and of other contents damaged by the Event shall not
be reimbursed. Homeowners whose property insurance provided coverage for damages from the Event shall be eligible
for reimbursement for any deductible amount paid by the homeowner subject to the conditions established herein.
Section 4. Adiustment and Payment of Claims. The City Manager is authorized to retain an independent
adjuster to evaluate claims to determine losses to be reimbursed by the City within the conditions set forth in Section 3
hereof using the same standards that would be used by an insurance company in adjusting claims for property damage.
The costs of any reimbursement and of the independent adjuster shall be paid from City utility reserves.
Section 5. Reimbursement Provided on No Fault Basis; No Admission of Liability. The reimbursement for
damages caused by the Event authorized to be paid is being provided on a "no fault" basis by the City and it shall be a
condition of such reimbursement that homeowners receiving reimbursement provide a release of liability to the City. Any
reimbursement for damages caused by the Event paid by the City shall not in any manner constitute an admission of
liability for such damages on behalf of the City and such reimbursement shall only app to this Event and not to any
other damage caused by other sanitary sewer backups in the City.
Dated: April 7, 2009
0Attest: —
Debra A. Mangen, ity C James Hovland, Mayor
City Hall 952-927-8861
4801 WEST 50TH STREET FAX 952-826-0390
EDINA,MINNESOTA, 55424-1394 www.cityofedina.com TTY 952-826-0379
RESOLUTION NO. 2009-42
Page Two
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )SS
CITY OF EDINA )
CERTIFICATE OF CITY CLERK
I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and
foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of April 7, 2009 and as recorded
in the Minutes of said Regular Meeting.
WITNESS my hand and seal of said City this day of 20_.
City Clerk
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