BY COUNCILOR JOHNSON:
RESOLVED, that the proper city officials are authorized to pay to Chris and Kim Burke the sum of $14,991.75 in full and final settlement of the claim which arose out of a break in a city watermain occurring on December 15, 2006; payment to be made from the Self Insurance Fund 610-036-1652-5841.
STATEMENT OF PURPOSE: On December 15, 2006, a city watermain ruptured causing water to penetrate and damage the basement of a house located at 5320 Ivanhoe Street and owned by Chris and Kim Burke.
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 $14,991.75. The city attorney’s office recommends this settlement.