00-0283R

RESOLUTION AUTHORIZING PAYMENT OF $14,768.82 IN SETTLEMENT OF ALL CLAIMS OF ST. PAUL COMPANIES ARISING OUT OF A SEWER BACKUP ON JULY 5, 1999.

BY COUNCILOR STOVER:

BE IT RESOLVED, that the proper city officials are authorized to pay $14,768.82 to St. Paul Companies in settlement of all claims arising out of a sewer backup on July 5, 1999, at the premises of its insured, David Ferrin; payment to be made from self insurance fund.



STATEMENT OF PURPOSE: On July 5, 1999, David Ferrin experienced a sewer backup that flooded his house at 665 Ridgewood Road. Upon investigation, we found that the damage was extensive. The backup was caused by a failure of the city sewer main. St. Paul Companies insured the owner. It paid on the claim and received an assignment of the homeowner's claim against the city. Proper notice was given. The city investigated and applied proper depreciation adjustment to each item of hundreds that were identified. Repair to the structure cost $8,860.70, and damage to contents was $5,908.12.