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HomeMy WebLinkAboutResolution No. 2015-061 Establishing Limited Property Damage Protection For Sewer Back-ups & Water Main Breaks NA,�r w � 0 Resolution#2015-61 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 of Edina 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 of Edina's sanitary sewer lines may cause the back-up of sewage into properties that are connected to those City of Edina'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 of Edina 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 of Edina desires to minimize the potential of expensive lawsuits arising out of water main breaks and sanitary sewer back-up claims; and WHEREAS, the City of Edina is a member of the League of Minnesota Cities Insurance Trust (LMCIT); and WHEREAS, LMCIT has offered the City of Edina limited "no fault" sewer coverage and water main break coverage (No-Fault Coverage) that will reimburse users of the water and sewer system for certain clean-up costs and property damage regardless of whether the City of Edina is at fault. NOW THEREFORE, BE IT RESOLVED, as follows: The City of Edina, will reimburse water and sanitary sewer customers for up to $40,000 of clean-up costs and property damages caused by a water main break or sanitary sewer back-up, regardless of whether the City of Edina is negligent or otherwise legally liable for damages, subject to the following conditions: 1. Sanitary Sewer Back-Ups. For Sanitary sewer back-ups: A. The back-up must have resulted from a condition in the City of Edina's sanitary sewer • system or lines, and not from a condition in a private line. CITY OF EDINA 4801 West 50th Street•Edina,Minnesota 55424 www.EdinaMN.gov•952-927-8861 • Fax 952-826-0390 • 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. C. The back-up must not have been caused by an interruption in electric power to the City of Edina's sewer system or to any City of Edina 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 of Edina 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 Edina or LMCIT will reimburse is $40,000 per building, per year. A structure or group of structures served by a single connection to the City of Edina's sewer system is considered a single building. • II. Water Main Breaks. For water main breaks: A. Neither the City of Edina 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 of Edina or LMCIT will reimburse is $40,000 to any claimant, regardless of the number of occurrences or the number of properties affected. C. Neither the City of Edina 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 $40,000. 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. III. The City of Edina'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 of Edina • for the costs set forth herein. IV. The City of Edina retains the right, in its sole discretion, to revoke, rescind, or modify this resolution at any time. V. The City of Edina hereby rescinds any prior resolution providing no-fault sewer backup coverage and water main break coverage. IN WITNESS WHEREOF,the City of Edina, by action of its governing body, caused this Resolution to be approved on June 17, 2015. City of Edina By: Its-111A C - ,, And: Its