HomeMy WebLinkAbout19-069 No Fault Sewer Backup
4646 Dakota Street SE
Prior Lake, MN 55372
RESOLUTION 19-069
Motion By: Burkart Second By: Erickson
WHEREAS, The City of Prior Lake participates in the League of Minnesota Cities Insurance
Trust (LMCIT) for securing insurance coverage.
WHEREAS, Effective May 20, the City Council approved the addition of no-fault sewer backup
and watermain break coverage as defined in Resolution 19-xxx. In summary, the
City will 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 is negligent or otherwise legally liable for
damages, subject to the conditions defined in Resolution 19-xxx.
WHEREAS, The City Council directed staff to handle the four Green Heights Trail sewer
backup/water main break claims in a manner that would be consistent with the no-
fault sewer backup and watermain break coverage had it been in place on the date
of the claim occurrence of February 3, 2019.
WHEREAS, The City is utilizing a League of Minnesota Insurance Trust claims adjuster to
calculate the claim cost for the four Green Heights Trail affected properties (3770
GreenHeights Trl/PID 250940010, 3780 Green Heights Trl/PID 250940020, 3800
Green Heightsw Trl/PID 250940030 and 16500 Inguadona Beach Circle/PID
250950150).
WHEREAS, The City Council approves payment of the claim cost as determined by the LMCIT
claims adjuster in an amount not to exceed $25,000 per claim for the four Green
Heights Trail affected properties. The final claim payments will be brought back to
the City Council as part of the Claims Listing agenda report.
WHEREAS, The funding source for the payments is the Sewer Fund balance. The
expenditures will be coded to 604-49450.00-53610.00
NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA as follows:
1. The recitals set forth above are incorporated herein.
2. The City Council approves payment of the claim cost as determined by the LMCIT
claims adjuster in an amount not to exceed $25,000 per claim for the four Green Heights
Trail affected properties. The final claim payments will be brought back to the City
Council as part of the Claims Listing agenda report.
3.
Passed and adopted by the Prior Lake City Council this 20th day of May2019.
VOTE Briggs Thompson Burkart Braid Erickson
Aye ☒ ☒ ☒ ☒ ☒
Nay ☐ ☐ ☐ ☐ ☐
Abstain ☐ ☐ ☐ ☐ ☐
M:\City Clerk\CITY COUNCIL\Resolutions\2019\19-069 No Fault Sewer Backup Resolution 2.docx
2
Absent ☐ ☐ ☐ ☐ ☐
______________________________
Michael Plante, City Manager