PUBLIC WORKS AND UTILITIES COMMITTEE


08-0486R


RESOLUTION APPROVING SETTLEMENT OF CLAIM OF CLAYTON AND CINDY KERR IN THE AMOUNT OF $11,280.45.

CITY PROPOSAL:

     RESOLVED, that the proper city officials are authorized to pay to Clayton and Cindy Kerr the sum of $11,280.45 in full and final settlement of the claim which arose out of a break in a city watermain occurring near 723 Old Howard Mill Road on February 26, 2008; payment to be made from the Self Insurance Fund 610-036-1652-5841.


STATEMENT OF PURPOSE:  On February 26, 2008, a city watermain ruptured causing water to penetrate and damage the basement of property located at 723 Old Howard Mill Road and owned by Clayton and Cindy Kerr.  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 $11,280.45. The city attorney’s office recommends this settlement.