07-0565R


RESOLUTION APPROVING SETTLEMENT OF CLAIM OF STATE FARM INSURANCE, AS SUBROGEE OF CHAD HEWITT, IN THE AMOUNT OF $10,453.92.

BY COUNCILOR JOHNSON:

     RESOLVED, that the proper city officials are authorized to pay to State Farm Insurance, as subrogee of Chad Hewitt, the amount of $10,453.92 in full and final settlement of all claims for damage to their insured’s property at 2621 West Skyline Parkway resulting from a sewer backup, which occurred on April 19, 2005; payment to be made from the Self Insurance Fund 610-036-1653-5841.


STATEMENT OF PURPOSE:  On April 19, 2005, a blockage caused by tree roots occurred in the municipal sanitary sewer. As a result of that blockage, sewage flowed into the basement of the house located at 2621 West Skyline Parkway. The property owner was reimbursed for his damages by his insurance company, State Farm Insurance, which now seeks recovery from the city.


The city’s liability is based upon the duties and obligations to maintain the public sewers and keep them free of debris.


Proper notice of claim was given. 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. The city attorney’s office recommends settlement of this claim in the amount of $10,453.92.