CCP 02-28-2012 - Laserfiche WebLink

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piNty of EW Report Number 12-046 BRIGHIUN Agenda Section VI-2 the city that works for you Council Meeting Date February 28,2012 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION ESTABLISHING LIMITED CLEAN UP AND PROPERTY DAMAGE PROTECTION FOR SEWER BACK-UPS AND WATER MAIN BREAKS FOR WATER AND SEWER CUSTOMERS DEPARTMENT HEAD'S APPROVAL: CITY MANAGER'S APPROVAL: �r No comments to supplement this report a/ Comments attached Recommendation: To waive the readint a'• adopt the RESOLUTION ESTABLISHING LIMITED CLEAN UP AND PROPERT` DAMAGE PROTECTION FOR SEWER BACK- UPS AND WATER MAIN BREAKS FOR WATER AND SEWER CUSTOMERS Legislative History: The City procures its liability insurance from the League of Minnesota Cities Insurance Trust (LMCIT). The LMCIT requires a resolution to be adopted by the City Council establishing limited clean up and property damage protection for sewer back-ups and water main breaks for water and sewer customers. Financial Impact: The City's insurance package includes the LMCIT's No Fault Sewer Back Up coverage. The financial impact as a result of increasing the limit from $10,000 to $25,000 is approximately$1,000. Explanation: The LMCIT expanded their No Fault Sewer Back Up coverage to include damage from a water main break up to $250,000 per occurrence. The City's current insurance coverage is for$10,000 per building. It is recommended to increase that limit from $10,000 to $25,000 since the additional cost is so minimal. Costs and Funding: The expenditures for insurance premiums are charged in the Risk Management Internal Service Fund. The Risk Management Fund in turn charges the various operations of the City for their appropriate share. The Water and Sewer Funds are charged for this insurance coverage. SMA.;*(-1,te- Dan Maiers Director of Finance