BY COUNCILOR STOVER:
RESOLVED, that the proper city officials are authorized to pay to Robert and Florence McGreevy the sum of $15,368.44 in full and final settlement of the claim which arose out of a break in a city watermain occurring on December 25, 2005; payment to be made from the Self Insurance Fund 610-036-1652-5841.
STATEMENT OF PURPOSE: On December 25, 2005, a city watermain ruptured, causing damage to a private sewer line servicing the residence located at 529 Valley Drive and owned by Robert and Florence McGreevy. The damage to the private sewer line caused sewage to back up into the basement of the residence.
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 $15,368.44. The city attorney’s office recommends this settlement.