DISCLAIMER

07-0542R


RESOLUTION APPROVING SETTLEMENT OF CLAIM OF KATHRYN J. MAKOUTZ IN THE AMOUNT OF $19,192.06.

BY COUNCILOR JOHNSON:

     RESOLVED, that the proper city officials are authorized to pay to Kathryn J. Makoutz the sum of $19,192.06 in full and final settlement of the claim which arose out of a break in a city watermain occurring near 229 North 54th Avenue East on March 11, 2007; payment to be made from the Self Insurance Fund 610-036-1652-5841.


STATEMENT OF PURPOSE:  On March 11, 2007, a city watermain ruptured causing water to penetrate and damage the foundation wall and basement of property located at 229 North 54th Avenue East and owned by Kathryn J. Makoutz.


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 $19,192.06. The city attorney’s office recommends this settlement.