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the tine. There were two levels of grates for further protection. On the day of the <br />blockage the grates were not on the structure when we looked at it after clearing the <br />blockage. On -Site maintains that they removed the grates only after discovering the <br />blockage to see if their service was backing up. The problem with the structure is the <br />debris collects on the grates and slows the dumping process down. If the grates are not <br />kept clean a very bad smell is emitted that causes neighboring businesses to complain. It <br />would seem to be a lot easier to dump if the grates were not in place. <br />Kath had the damage repaired by a contractor for $89,300. The League of Minnesota <br />Cities Insurance Trust paid Kath $89,300 to settle the claim against the City and then <br />sued On -Site Sanitation to recover the money paid to Kath. Both sides deposed parties <br />from the opposing sides and the matter went to mediation in April 2007. The case was <br />settled with On -Site Sanitation paying $52,000 or approximately 58% of the actual <br />damages paid. <br />Mr. John Hennen was the attorney representing the League of Minnesota Cities Insurance <br />Trust. Mr. Hennen has 22 years of service as an attorney for LMCIT and has been <br />involved in numerous sewer backup cases. It was his opinion that had the case gone to <br />trial, the LMCIT would have won 60% to 80% of the time but even with a victory, there <br />was no guarantee that they would have recovered all damages paid. He felt that recovery <br />of a significant percentage of claimed damages was appropriate. <br />Going forward it is imperative that the City make a decision on what to do with the On- <br />Site Sanitation dump site. To my knowledge, On -Site is the only business of its type that <br />has its own dedicated dump site into a city sewer main. The other sanitation businesses <br />are required to dump at a Metropolitan Council Environmental Services dump site which <br />are at large interceptors that can better handle the type of waste that is dumped. On -Site <br />Sanitation has expressed interest in working with us to come up with a better site so that <br />they can continue to dump at their shop. They have a permit from the City and Met <br />Council to dump at the site until March 2008. After that we no longer have to allow them <br />to dump at the site if we deem it too risky. Any input from the Council on this matter <br />would be appreciated. <br />2 <br />