HomeMy WebLinkAbout15-111 - ADMIN Resolution - City Council - 2015/08/17RESOLUTION NO. 15-111
RESOLUTION ESTABLISHING 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 Louis Park provides water and sanitary sewer services to
property within its jurisdiction, 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 Louis Park's sanitary sewer
lines may cause the back-up of sewage into properties that are connected to those City of St.
Louis Park's sanitary lines; and
WHEREAS, water main breaks and sewer back-ups pose a public health and safety
concern; and
WHEREAS, it may be difficult to determine the exact cause and responsibility for a
water main break or sanitary sewer back-ups and
WHEREAS, the City of St. Louis Park desires to encourage the expeditious clean-up of
properties that have encountered damage from water main breaks and sewer back-ups, and
WHEREAS, the City of St. Louis Park 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. Louis Park is a member of the League of Minnesota Cities
Insurance Trust (LMCIT), and
WHEREAS, LMCIT has offered the City of St. Louis Park limited "no fault" sewer
coverage and water main break coverage (No -Fault 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. Louis Park is at fault.
NOW THEREFORE, BE IT RESOLVED, as follows:
The City of St Louis Park, will reimburse water and sanitary sewer customers for up to $40,000
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. Louis Park 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. Louis Park'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 any catastrophic weather or other event which
has been declared by the President of the United States to be a major disaster pursuant to
42 U S C §§ 5121-5206, commonly known as the Stafford Act
C. The back-up must not have been caused by an interruption in electric power to the City of
St. Louis Park's sewer system or to any City of St. Louis Park lift station, which
continues for more than 72 hours
Resolution No. 15-111 -2-
D. The back-up must not have been caused by an amount of precipitation equivalent to
rainfall amounts which exceed.
o 2.0 inches in a 1 -hour period; or
o 2.5 inches in a 3 -hour period; or
o 3.0 inches in a 6 -hour period; or
o 3.5 inches in a 12 -hour period; or
o 4.0 inches in a 24-hour period; or
o 4.5 inches in a 72 -hour period, or
o 5.5 inches in a 168 -hour period.
E. Neither the City of St Louis Park 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. Louis Park or LMCIT will reimburse is
$40,000 per building, per year. A structure or group of structures served by a single
connection to the City of St. Louis Park's sewer system is considered a single building.
II Water Main Breaks. For water main breaks:
A Neither the City of St Louis Park 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
B The maximum amount that the City of St. Louis Park or LMCIT will reimburse is
$40,000 to any claimant, regardless of the number of occurrences or the number of
properties affected.
C Neither the City of St. Louis Park nor LMCIT will pay more than $250,000 for water
main break damages resulting from 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 $40,000.
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.
III The City of St. Louis Park's determination to make these payments is contingent on and
expressly limited to the extent that No -Fault Coverage is in force and available to reimburse the
City of St Louis Park for the costs set forth herein
IV. The City of St. Louis Park retains the right, in its sole discretion, to revoke, rescind, or
modify this resolution at any time.
V The City of St. Louis Park hereby rescinds any prior resolution providing no-fault sewer
backup coverage and water main break coverage.
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Resolution No. 15-111 - -
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IN TNESS WHEREOF, the City of St. Louis Park, by action of its governing body,
caused this
Reviewed fo
stration:
City Manag
Attest:
Adopt- • by - City Council August 17, 2015
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Mayo