2016.03.22 WS Minutes - Laserfiche WebLink

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Of IWNEW PREUTFON the city that works for you Council Worksession March 22, 2016 5:00 pm Present: Mayor Valerie Johnson Councilmember Gina Bauman Councilmember Paul Jacobsen Councilmember Mary Burg Absent: Councilmember Brian Strub Staff in Attendance: Dean Lotter, Brenda Davitt, Craig Schlichting, Joe Hatch Guests in Attendance: Sewer Backup Policy and Insurance Update Davitt provided the Council with a presentation on the City's sewer backup plan and current no-fault insurance policy. She explained how sewer backups can occur, noting disposable wipes were a growing concern. She discussed what the City was responsible for when sewer backups occur. Schlichting commented on how the City worked to maintain its sewer lines keeping them free and clear through jetting and relining of the pipes. Davitt reported the City was in the process of jetting lines this spring. Even though the City worked diligently to maintain its lines, backups can still occur. For this reason, the City purchased no-fault sewer backup insurance from the League of Minnesota Cities. The cost for this coverage was $4,500 for up to $25,000 per occurrence per home per year. She stated all claims fell under the City's deductible limits. She explained the plan covered the cleanup and replacement of all damaged property. Councilmember Burg questioned if the City covered the cost of an entirely finished basement. Davitt reported the City only covered up to $25,000 in damages per occurrence. Davitt explained how the League was changing its sewer backup policy noting weather related emergencies or 100 year rain events would no longer be covered. She discussed an alternative for the Council to consider noting she created this policy at her previous City. She indicated the new policy would cover cleanup only of property and would allow for the City's policy to be primary and homeowners insurance to be secondary. She commented the policy would cover $300 to install a backflow preventer. Her policy would pay up to $5,000 per occurrence for homes to be sanitized and cleaned. She reported the City would be responsible for finding a trustworthy vendor to complete the cleanup work. It was noted residents would still be able to file a claim against the City if they felt the City was negligent. Davitt indicated the City has had 16 sewer backup claims since 2009. She reviewed the previous costs and deductibles paid by the City and noted the City would greatly reduce its costs by switching to the new policy. She commented that the new proposal would cover 100 year and large rain events, while the League's policy would not.