11-010CITY OF SHOREWOOD
RESOLUTION NO. 11 -010
A RESOLUTION ESTABLISHING LIMITED CLEAN UP AND
PROPERTY DAMAGE PROTECTION FOR SEWER BACK -UPS AND
WATER MAIN BREAKS FOR WATER AND SEWER CUSTOMERS
WHEREAS, the City of Shorewood provides water and sanitary sewer services to property
within itsjurisdiction; and
WHEREAS, water main breaks may cause water to enter into property causing damage; and
WHEREAS, blockages or other conditions in the City of Shorewood's sanitary sewer lines may
cause the back -up of sewage into properties that are connected to those City of Shorewood's sanitary
lines; and
WHEREAS, water main breaks and sewer back -ups pose a public health and safety concern; and
WHEREAS, it is often difficult to determine the exact cause and responsibility for water main
breaks and sanitary sewer back -ups, and
WHEREAS, the City Council of the City of Shorewood desires to encourage the expeditious
clean -up of properties that have encountered damage from water main breaks and sewer backups; and
WHEREAS, the governing body of the City of Shorewood desires to minimize the potential of
expensive lawsuits arising out of water main breaks and sanitary sewer back -up claims; and
WHEREAS, the City of Shorewood is a member of the League of Minnesota Cities Insurance
Trust ( LMCIT); and
WHEREAS, LMCIT has offered the City of Shorewood limited "no fault" sewer coverage and
water main break coverage that will reimburse users of the water and sewer system for certain clean -up
costs and property damage regardless of whether the City of Shorewood is at fault.
NOW THEREFORE, BE IT RESOLVED, as follows:
The City of Shorewood, as part of the contract for providing water and sewer services to the
customers of the City of Shorewood, and in consideration of the payment of water and sewer bills, agrees
to reimburse water and sanitary sewer customers for up to $25,000 of clean -up costs and property
damages caused by a water main break or sanitary sewer back -up, regardless of whether the City of
Shorewood is negligent or otherwise legally liable for damages, subject to the following conditions:
I. Sanitary Sewer Back -Ups. For Sanitary sewer back -ups:
A. The back -up must have resulted from a condition in the City of Shorewood's sanitary
sewer system or lines, and not from a condition in a private line.
B. The back -up must not have been caused by catastrophic weather or other events for
which Federal Emergency Management Assistance is available.
C. The back -up must not have been caused by an interruption in electric power to the City of
Shorewood's sewer system or to any City of Shorewood lift station, which continues for
more than 72 hours.
D. The back -up must not have been caused by rainfall or precipitation that would constitute
a 100 -year storm as determined by the National Weather Service.
E. Neither the City of Shorewood nor LMCIT will reimburse any costs which have been or
are eligible to be covered under a property owner's own homeowners' or other property
insurance, or which would be eligible to be reimbursed under a National Flood Insurance
Protection (NFIP) policy, whether or not the property owner actually has NFIP Coverage.
F. The maximum amount that the City of Shorewood or LMCIT will reimburse is $25,000
per building, per year. In this regard, a structure or group of structures served by a single
connection to the City of Shorewood's sewer system is considered a single building.
II. Water Main Breaks. For water main breaks:
A. LMCIT will pay for claims presented by the City of Shorewood for water main break
damage to property of others which was not caused by the City of Shorewood's
negligence.
B. Neither the City of Shorewood nor LMCFF will pay for damages or expenses for which
the property owner has been or is eligible to be reimbursed by any homeowners' or other
property insurance.
C. The maximum amount that the City of Shorewood or LMCIT will reimburse is $25,000 to
any claimant, regardless of the number of occurrences or the number of properties
affected.
D. Neither the City of Shorewood nor LMCIT will pay more than $250,000 for water main
break damages resulting from any single occurrence. All water main break damage which
occurs during any period of 72 consecutive hours is deemed to result from a single
occurrence. If the total water main break damage for all claimants in a single occurrence
exceeds $250,000, the reimbursement to each claimant will be calculated as follows:
1. A preliminary reimbursement figure is established for each claimant, equal to the
lesser of the claimant's actual damages or $25,000.
2. The sun of the preliminary reimbursement figures for all claimants will be
calculated.
3. Each claimant will be paid a percentage of his or her preliminary reimbursement
figure, equal to the percentage calculated by dividing $250,000 by the sum of all
claimants' preliminary reimbursement figures.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF SHOREWOOD this 28th day of
March, 2011. �� ,
Christine Lizee, Mayor