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38 • «'hat's the legal basis for this coverage? Wouldn't it.be a gift of public funds to pay damages that the city isn't legally liable for? First, as noted earlier,.one goal is to.help reduce health hazards by encouraging prompt clean-ups. That's clearly a,public purpose and in the public interest. Second, the law and facts surrounding most sewer back-up claims are rarely so clear that the liability issue is entirely black and white.. There's virtually.always a way that a claimant's attorney can make some type of argument for city liability. Having this coverage in place should help eliminate the need to spend public funds on litigation costs in many of these cases. Finally,part of the process for putting the coverage in place is for the city council to pass a formal resolution that makes this no-fault sewer back-up protection part of the agreement between the city and the sewer customer. The idea is.that by paying his sewer bill, the sewer user is purchasing not just sewer service but also the right to be reimbursed for certain specified sewer back-up costs and damages. In other words, the basis for the no-fault payments to the property owner would be the contract between the city and the sewer user. How do we put coverage in place? • Contact your LMCIT underwriter for an application. If the city qualifies for coverage, we'll send the city a formal quote, along with a model resolution. To put coverage in place, the city council must formally pass that resolution, and send a copy to LMCIT. If the city decides to add this coverage, it will also be important to make sure the citizens know about it. LMCIT can also'provide models for a press release, newsletter article, utility bill insert, etc. Who can we contact with questions or comments? Contact your LMCIT underwriter, or Pete Tritz at the League office. We're also interested in hearing cities' reactions to this new coverage option, especially if there are changes you'd like to see. •