RES 14-034 Extension of Limited Clean Up Insurance

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CITY OF ST. ANTHONY VILLAGE STATE OF MINNESOTA RESOLUTION 14-034 A RESOLUTION CONFIRMING THE EXTENSION OF LIMITED CLEAN UP AND PROPERTY DAMAGE PROTECTION FOR SEWER BACK-UPS AND WATER MAIN BREAKS FOR WATER AND SEWER CUSTOMERS WHEREAS, the City of St. Anthony provides water and sanitary sewer services to properties within the City of St. Anthony; and WHEREAS, water main breaks may cause water to enter into property causing damage; and WHEREAS, blockages or other conditions in the City of St. Anthony's sanitary sewer lines may cause the back-up of sewage into properties that are connected to those City of St. Anthony sanitary lines; and WHEREAS, it is often difficult to determine the exact cause and responsibility for water main breaks and sanitary sewer back-ups; and WHEREAS, the City of St. Anthony 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 St. Anthony is a member of the League of Minnesota Cities Insurance Trust (LMCIT); and WHEREAS, in 2011, the LMCIT offered and the City of St. Anthony participated in 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 of St. Anthony is at fault, and WHEREAS, the City of St. Anthony desires to extend the "no fault sewer coverage and water main break coverage for the 2014-2015 insurance period. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of St. Anthony, as part of the contract for providing water and sewer services to the customers of the City of St. Anthony, and in consideration of the payment of water and sewer bills, agrees to reimburse water and sanitary sewer customers for up to $25,000 of clean-up costs and property damages caused by a water main break or sanitary sewer back-up, regardless of whether the City of St. Anthony 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 of St. Anthony's sanitary sewer system or lines and not from a condition in a private line.