04-0037R

RESOLUTION AUTHORIZING PAYMENT OF $24,762.49 TO STATE FARM INSURANCE, AS SUBROGEE OF RALPH KERSTEN, FOR SETTLEMENT OF SUBROGATION CLAIM ARISING FROM A WATERMAIN BREAK ON JULY 14, 2003.

BY COUNCILOR STOVER:

RESOLVED, that the proper city officials are authorized to pay to State Farm Insurance, as subrogee of Ralph Kersten, the amount of $24,762.49 in full settlement of all claims for building damage to their insured's property at 314 East Sixth Street resulting from a watermain break which occurred on July 14, 2003; payment to be made from the Self Insurance Fund 0610.


STATEMENT OF PURPOSE:  On July 14, 2003, a 12 inch city-owned watermain burst in front of 314 East Sixth Street. Escaping water flooded the lower level of the building. The property owner was reimbursed for the damages to the building by his insurance company, State Farm Insurance, which now seeks recovery from the city. Liability is based upon the city's duty to operate its mains in a way that does not damage adjoining property. Proper notice of claim was given. The loss was investigated and damages and expenses verified. The civil division of the city attorney's office recommends settlement of this claim in the amount of $24,762.49.