HomeMy WebLinkAboutResolution - 2014-71 - Establishing LImited Clean Ups and Property Damage Protection for Sewer Back-Ups and Water Main Breaks - 07/14/2014 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2014-71
RESOLUTION ESTABLISHING LIMITED CLEAN UP AND
PROPERTY DAMAGE PROTECTION FOR SEWER BACK-UPS AND
WATER MAIN BREAKS FOR WATER AND SEWER CUSTOMERS
WHEREAS, the Governmental Unit 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 Governmental Unit's sanitary sewer lines may
cause the back-up of sewage into properties that are connected to those Governmental Unit's
sanitary lines; and
WHEREAS, water main breaks and sewer back-ups pose a public health and safety concern; 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 governing body of the Governmental Unit desires to encourage the expeditious
clean-up of properties that have encountered damage from water main breaks and sewer back-
ups; and
WHERAS, the governing body of the Governmental Unit desires to minimize the potential of
expensive lawsuits arising out of water main breaks and sanitary sewer back-up claims; and
WHEREAS, the Governmental Unit is a member of the League of Minnesota Cities Insurance
Trust (LMCIT); and
WHEREAS, LMCIT has offered the Governmental Unit 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 Governmental Unit is at fault.
NOW THEREFORE, BE IT RESOLVED, as follows:
The Governmental Unit, as part of the contract for providing water and sewer services to the
customers of the Governmental Unit, and in consideration of the payment of water and sewer
bills, agrees to 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 Governmental Unit is negligent or otherwise legally liable for damages, subject to
the following conditions:
I. Sanitary Sewer Back-Ups. For Sanitary sewer back-ups:
A. LMCIT will pay for eligible claims presented by the Governmental Unit for sanitary
sewer back-up damage to property of others which was not caused by the Governmental
Unit's negligence, if.
a. The back-up must have resulted from a condition in the Governmental Unit'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
Governmental Unit's sewer system or to any Governmental Unit 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.
B. Neither the Governmental Unit 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.
C. The maximum amount that the Governmental Unit or LMCIT will reimburse is $40,000
per building, per year. In this regard, a structure or group of structures served by a single
connection to the Governmental Unit's sewer system is considered a single building. If a
single structure is served by more than one connection to the Governmental Unit's sewer
system, the portion of the structure served by each respective connection is considered a
separate building.
I1. Water Main Breaks. For water main breaks:
A. LMCIT will pay for claims presented by the Governmental Unit for water main break
damage to property of others which was not caused by the Governmental Unit's
negligence.
B. Neither the Governmental Unit 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 Governmental Unit or LMCIT will reimburse is $40,000
to any claimant, regardless of the number of occurrences or the number of properties
affected.
D. Neither the Governmental Unit 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.
IN WITNESS WHEREOF, the Governmental Unit, by action of its governing body, caused this
Resolution to be approved on July 14, 2014.
Eden Prairie City Council
Governmental Unit
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ATTEST: SEAL
Kalhleen Porta, City Clerk