BY COUNCILOR STOVER:
RESOLVED, that the proper city officials are authorized to pay to Liberty Mutual Insurance Group, as subrogee of David Klass, the amount of $11,604.36 in full settlement of all claims for damage to their insured’s property at 31 England Avenue resulting from a watermain break which occurred on December 21, 2004; 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 broke near 31 England Avenue. Escaping water damaged the yard and flooded the basement of the residence owned by David Klass. The property owners were reimbursed for their damages by their insurance company, Liberty Mutual 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. A settlement agreement was reached in the amount of $11,604.36. The city attorney’s office recommends this settlement.