00-0468R

RESOLUTION AUTHORIZING THE EXPENDITURE OF $15,904.96 AS SETTLEMENT OF ALL CLAIMS ARISING FROM DAMAGE TO AN APARTMENT BUILDING OWNED BY RESIDENTIAL SERVICES OF N.E. MINNESOTA, INC., FROM A WATERMAIN BREAK ON JANUARY 30, 2000.

BY COUNCILOR ECKENBERG:

BE IT RESOLVED, that the proper city officials are authorized to pay to Residential Services of N.E. Minnesota, Inc., the amount of $15,904.96 in full settlement of all claims for damage to its apartment building located at 331 South 16th Avenue East from a watermain break which occurred on January 30, 2000; payment to be made from the self insurance fund.


STATEMENT OF PURPOSE: On January 30, 2000, a city water main near 15th Avenue East and Jefferson Street burst and the escaping water damaged a basement apartment in a building owned by Residential Services of N.E. Minnesota, Inc. City staff determined that the main burst as a result of a stress crack in the main that caused the main to fail. The damage estimates were reviewed and evaluated by the city, and a settlement amount agreed to. Liability is based upon the city's strict liability for escaping water.