BY COUNCILOR JOHNSON:
RESOLVED, that the proper city officials are authorized to pay to John and Peggy Cloutier the sum of $10,401.52 in full and final settlement of the claim which arose out of a break in a city watermain occurring near 224 South 90th Avenue West on January 19, 2007; payment to be made from the Self Insurance Fund 610-036-1652-5841.
STATEMENT OF PURPOSE: On January 19, 2007, a city watermain ruptured causing water to penetrate and damage the basement, yard and driveway of property located at 224 South 90th Avenue West and owned by John and Peggy Cloutier.
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 $10,401.52. The city attorney’s office recommends this settlement.