HomeMy WebLinkAboutRES 14-034 Extension of Limited Clean Up InsuranceCITY 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.
B. The back-up must not have been caused by catastrophic weather or other events for which
Federal Emergency Management Assistance is available.
C. The back-up must not have been caused by an interruption in electric power to the City of St.
Anthony's sewer system or to any City of St. Anthony's lift station, which continues for more
than 72 hours.
D. The back-up must not have been caused by rainfall or precipitation that would constitute a
100 -year storm as determined by the National Weather Service.
E. Neither the City of St. Anthony nor LMCIT will reimburse any costs which have been or are
eligible to be covered under a property owner's own homeowners' or other property
insurance, or which would be eligible to be reimbursed under a National Flood Insurance
Protection (NFIP) policy, whether or not the property owner actually has NFIP Coverage.
F. The maximum amount that the City of St. Anthony or LMCIT will reimburse is $25,000 per
building, per year. In this regard, a structure or group of structures served by a single
connection to the City of St. Anthony's sewer system is considered a single building.
II. Water Main Breaks. For water main breaks:
A. LMCIT will pay for claims presented by the City of St. Anthony for water main break
damage to property of others which was not caused by the City of St. Anthony's negligence.
B. Neither the City of St. Anthony nor LMCIT will pay for damages or expenses for which the
property owner has been or is eligible to be reimbursed by any homeowners' or other
property insurance.
C. The maximum amount that the City of St. Anthony or LMCIT will reimburse is $25,000 to
any claimant, regardless of the number of occurrences or the number of properties affected.
D. Neither the City of St. Anthony nor LMCIT will pay more than $250,000 for water main
break damages resulting form any single occurrence. All water main break damage which
occurs during any period of 72 consecutive hours is deemed to result from a single
occurrence. If the total water main break damage for all claimants in a single occurrence
exceeds $250,000, the reimbursement to each claimant will be calculated as follows:
1. A preliminary reimbursement figure is established for each claimant, equal to the lesser
of the claimant's actual damages or $25,000
2. The sum of the preliminary reimbursement figures for all claimants will be calculated.
3. Each claimant will be paid a percentage of his or her preliminary reimbursement
figure, equal to the percentage calculated by dividing $250,000 by the sum of all
claimants' preliminary reimbursement figures.
Adopted this 27u day of May, 2014
ATTEST:
Barbara J. Suciu, ity Clerk
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Jerome O. Faust, Mayor
Review for Administration: Od 41Y
Mark Casey, City Manager