BY COUNCILOR STOVER:
RESOLVED, that the proper city officials are authorized to pay to Dennis M. Doherty the sum of $10,656.18 in full and final settlement of the claim which arose out of a break in a city watermain occurring on December 21, 2004, near 28 Cato Avenue; payment to be made from the Self Insurance Fund 610, Agency 036, Organization 1652, Object 5841.
STATEMENT OF PURPOSE: On December 21, 2004, a city watermain located on England Street ruptured, causing water to penetrate and damage retaining wall, driveway, garage and basement of house located at 28 Cato Avenue and owned by Dennis M. Doherty.
The city’s liability is based upon the legal principle that it is under a duty to maintain its watermains in a reasonably safe condition. The city of Duluth has investigated this claim and verified the damages and expenses. The civil division of the city attorney’s office analyzed the city’s loss exposure. Settlement negotiations were conducted, and an agreement has been reached in the amount of $10,656.18. The city attorney’s office recommends this settlement.