05-28-2003 Council Agenda - Laserfiche WebLink

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del Of Little Can (kyd COP1P1UNIN PRIDE 1953 - 2003 515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4048 wm' e i. l i t tl e -c a n a d a. w n. u s MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: May 23, 2003 RE: Schmidt Settlement Agreement ALLAI'OR Michael I. Fahey CO[JAtIL Jim LaValle Matt Anderson Rick Montour Bill Blesener ADMINIS IRA"L'O R Joel R. Hanson Attached is the proposed settlement agreement in involving Jack Schmidt's suit against the City. His claim was that a pond was eliminated by the Kerr's (627 Keller Parkway) as part of the construction of their new home. The City issued the filling and grading permit that allowed this to occur. (We also involved the Ramsey /Washington Metro Watershed District in the approval of this permit.) The City also vacated a drainage easement covering this same area. What was unknown to any of us is that Mr. Schmidt had installed a drain tile into this area to give the low area of his lot an outlet (this installation occurred many years previous to the filling activity). His installation was undertaken without any approval or knowledge of the City based on the records we reviewed. We had worked with the involved property owners (Schmidt, Sprosty & Kerr) at the time this issue initially came to our attention. We thought we had an agreement to resolve the matter, but Mr. Schmidt would not release all parties from his claims. The matter then fell apart and Mr. Schmidt initiated a lawsuit against the City, Watershed, and Kerr's. After considerable discussion between the various parties, we have once again returned to the approval of an agreement. The attached document is very similar to that which we approved a couple of years ago. Essentially, we (the City) dig the hole for the swale (pond) and the property owners establish turf and provide on -going maintenance. The City has no further role in the matter. We are also released from claims associated with this issue. There is also an acknowledgement that the adequacy of the swale to eliminate flooding is not being represented by any of parties to this agreement. The League of Minnesota Cities Insurance Trust has been handling the defense of this matter and drafted the attached agreement. The City Attorney has reviewed it. I would recommend approval of same subject to execution by all parties indicated. c: James W. Canaday, LMCIT