HomeMy WebLinkAboutResolution - 2015-52 - Establishing Limited Clean Up and Property Damage Protection from Sewer Backups - 05/19/2015 CITY OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2015-52
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 Eden Prairie 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 may be difficult to determine the exact cause and responsibility for a water main
break or sanitary sewer back-ups; and
WHEREAS, 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 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 (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 Governmental
Unit is at fault.
NOW THEREFORE, BE IT RESOLVED, as follows:
The Governmental Unit, 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 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. 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 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
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 an amount of precipitation equivalent to rainfall
amounts which exceed:
• 2.0 inches in a 1-hour period; or
• 2.5 inches in a 3-hour period; or
• 3.0 inches in a 6-hour period; or
• 3.5 inches in a 12-hour period; or
• 4.0 inches in a 24-hour period; or
• 4.5 inches in a 72-hour period; or
• 5.5 inches in a 168-hour period.
E. 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.
F. The maximum amount that the Governmental Unit or LMCIT will reimburse is $40,000
per building, per year. A structure or group of structures served by a single connection to
the Governmental Unit's sewer system is considered a single building.
I1. Water Main Breaks. For water main breaks:
A. 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
B. 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.
C. 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.
III. The Governmental Unit'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
Governmental Unit for the costs set forth herein.
IV. The Governmental Unit retains the right, in its sole discretion, to revoke, rescind, or modify
this resolution at any time.
V. The Governmental Unit hereby rescinds any prior resolution providing no-fault sewer backup
coverage and water main break coverage.
ADOPTED by the Eden Prairie City Council on May 19, 2015.
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Kat een Porta, City Clerk