CC RES 01-048 A RESOLUTION AUTHORIZING PAYMENT OF DAMAGES FOR SANITARY SEWER BACKUPS ASSOCIATED WITH THE 29TH AVENUE STREET RECONSTRUCTION PROJECT

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• CITY OF ST. ANTHONY RESOLUTION 01-048 RESOLUTION AUTHORIZING PAYMENT OF DAMAGES FOR SANITARY SEWER BACKUPS ASSOCIATED WITH THE 29TH AVENUE STREET RECONSTRUCTION PROJECT WHEREAS, The City of St. Anthony ("the City") took a public improvement project associated with the reconstruction of 29`h Avenue (WSB Project No. 1065- 26); WHEREAS, On September 2, and July 9, 2000 sanitary sewer backups occurred in conjunction with the construction; WHEREAS, Certain persons living in the vicinity of the project have made claims against the City, which total $32,695.89; WHEREAS, The City has asserted that the contractor for the project, Barbarossa & Sons, • Inc., is obligated to hold harmless and indemnify the City with regard to the said claims; WHEREAS, Barbarossa & Sons, Inc. has denied liability; WHEREAS, St. Paul Companies, the insurance provider for Barbarossa & Sons, Inc., has agreed that it will provide an independent third party claims adjustment for all claims arising out of the sanitary sewer backups and that it will pay 50% of the adjusted claims; and WHEREAS, The City believes that it is in its best interest to settle the claims, to avoid further exposure and amicably resolve them, without the expense of litigation and other forms of dispute resolution. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of St. Anthony, as follows: 1. The City agrees that payments up to 50% of the amount of the claims, as adjusted by the third party claims adjustment by St. Paul Companies, may be paid, and are authorized, in exchange for releases executed by the • claimants (in a form approved by the City's attorney). Under no circumstances shall the City's total payments exceed $16,347.95.