04-0819R


RESOLUTION AUTHORIZING PAYMENT OF $97,028.20 TO CIS INSURANCE GROUP, AS SUBROGEE OF AMERICAN INDIAN COMMUNITY HOUSING ORGANIZATION, FOR SETTLEMENT OF ALL SUBROGATION CLAIMS ARISING FROM A WATERMAIN BREAK ON FEBRUARY 5, 2004.

BY COUNCILOR STOVER:

     RESOLVED, that the proper city officials are authorized to pay to CIS Insurance Group, as subrogee of American Indian Community Housing Organization, the amount of $97,028.20 in full settlement of all claims for damage to their insured’s property at 419 and 421 North First Avenue West resulting from a watermain break which occurred on February 5, 2004; payment to be made from the Self Insurance Fund 0610.


STATEMENT OF PURPOSE:  On February 5, 2004, a six inch city-owned watermain burst on Fifth Street near First Avenue West. Escaping water flooded the basements of the properties located at 419 and 421 North First Avenue West. The property owners were reimbursed for their damages by their insurance company, CIS Insurance Group, 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 $97,028.20.