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Home My WebLink About180-13 RESOLUTIONRESOLUTION NO. 180-13 A RESOLUTION PURSUANT TO FAYETTEVILLE CODE OF ORDINANCES SUBSECTION 39.10(C)(4) AUTHORIZING THE MAYOR TO PAY $11,000.00 TO JOHN BESS IN SETTLEMENT OF A DAMAGE CLAIM ARISING AT 830 E. TRUST STREET, AND APPROVING A BUDGET ADJUSTMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas, pursuant to Fayetteville Code of Ordinances subsection 39.10(C)(4), authorizes the Mayor to pay $11,000.00 to John Bess in settlement of a water damage claim arising at 830 E. Trust Street. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution as Exhibit "A". PASSED and APPROVED this 20th day of August, 2013. APPROVED: ATTEST: By: SONDRA E. SMITH, City Clerk/Treasurer �1K �r�• fr ti 1 , � �� `�� ff�'�'�►riIN City of Fayetteville, Arkansas V12.0724 Budget Adjustment Form Budget Year Division: Utilities Director Request Date Adjustment Number 2013 1 Department: Utilities Director 8/1 /2013 BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION A BA is needed to move monies into the Insurance Self -Non Vehicular Damage water distribution account to cover the cost of the water damage claim from John Bess. Lku" 13 Prepared By ' at Reference: )r Date _ `� Type: A !rector baye Cheryl Partain Budget & Research Use Only B C D E 0—k 1--k.. U4-1, _, 0 - 2-2,013 General Ledger Date :or Date } ~J Posted to General Ledger Date ��Checked / Verified ate Account Name InsSelf-NonVehicularDamag InsSelf-NonVehicularDamao 0 Initial Date Initial Date TOTAL BUDGET ADJUSTMENT - - Increase / (Decrease) Account Number _Expense Revenue 5400.4310.5311.04 3 11,000 - 5400.4410.5311.04 3 (11,000) W:\Budget Information and Budget Adjustments\Budget Adjustments\2013\BA - John Bess Water Claim Project.Sub Number 7EXHIBIT a1A 1 of 1 City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 20-Aug-13 City Council Meeting Date Agenda Items Only David Jurgens Water/Sewer Operations Utilities Submitted By Division Department Action Required: $ 11,000 $ 9,500 Self Insurance- Non Vehicle Cost of this request Category / Project Budget Program Category / Project Name 5400-4310-5311.04 $ - Water Mains Maintenance Account Number Funds Used to Date Program / Project Category Name N/A $ 9,500 Water/Sewer Project Number Budgeted Item Remaining Balance Budget Adjustment Attached 0 Ave') , Date �`- 2 -1,3-- Date Finance and Internal Services Director Date Chief -of Staff Date L ayor Date Fund Name Previous Ordinance or Resolution # 5504 Original Contract Date: 6/5/2012 Original Contract Number: Received in City - Clerk's Office E E!{ R Received in Mayors Office a 13 Revised January 15, 2009 ayle S� To.: Fayetteville City Council Thru: Mayor Lioneld Jordan Don Marr, Chief of Staff From: David Jurgens, Utilities Director Fayetteville Water and Sewer Conn Date: July 26, 2013 Subject: Claim Settlement- Mr. John Bess, 830 East Trust Street RECOMMENDATION CITY COUNCIL AGENDA MEMO MEETING DATE OF AUGUST 20, 2013 THE CITY OF FAYETTEVILLE, ARKANSAS City Administration recommends approving a claim settlement for water damage with John Bess, 830 East Trust Street, for $11,000, and approving a budget adjustment. BACKGROUND At approximately 3:00 a.m. on Sunday, October 21, 2012, the City's 8" iron water main on Vinson Avenue ruptured, causing significant volume of water to flow downhill around the residences on Trust Street. Because it occurred in the middle of the night, it took several hours for crews to find the leak and turn off the mains to stop the flow. We were notified about the leak because the Mt. Sequoyah water tank level was dropping faster than normal at that time of day. While we had multiple crews searching, it was three hours after we started searching for the leak that we first received a call from the location that was actually leaking. Ordinance 5504 identifies the water and wastewater claims process. Fully complying with that process, Mr. Bess obtained quotes and submitted his claim to the City. The water flow caused issues with a total of four residences downhill from the leak. All other issues have been resolved by staff. DISCUSSION Mr. Bess' original claim was for $18,506, and this damage was not covered by his insurance. Through work performed by City crews and evaluation of the damage, Mayor Jordan and City staff have worked with Mr. Bess to develop the settlement of $11,000 for full resolution and closure of this claim. Per the attached acceptance document, Mr. Bess agrees to this settlement, provided it is approved by the City Council. BUDGET IMPACT The budget adjustment moves funds into the water mains maintenance self insurance account. This single claim is higher than our normal annual funding provided for these type events. Trust 830 E (Bess) CCMemo Ju113 RESOLUTION NO. A RESOLUTION PURSUANT TO FAYETTEVILLE CODE OF ORDINANCES SUBSECTION 39.10(C)(4) AUTHORIZING THE MAYOR TO PAY $11,000.00 TO JOHN BESS IN SETTLEMENT OF A DAMAGE CLAIM ARISING AT 830 E. TRUST STREET, AND APPROVING A BUDGET ADJUSTMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas, pursuant to Fayetteville Code of Ordinances subsection 39.10(C)(4), authorizes the Mayor to pay $11,000.00 to John Bess in settlement of a water damage claim arising at 830 E. Trust Street. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution as Exhibit "A". PASSED and APPROVED this 20t" day of August, 2013. APPROVED: LIONELD JORDAN, Mayor ATTEST: IC SONDRA E. SMITH, City Clerk/Treasurer 14 lil T� ee— e 1♦ July 26, 2013 John Bess 830 E. Trust Street Fayetteville, Arkansas 72701 RE: Residential Claim, Water Incident Dear Mr. Bess: THE CITY OF FAYETTEVILLE, ARKANSAS UTILITIES DEPARTMENT 113 West Mountain Fayetteville, AR 72701 P (479) 575-8330 F (479) 575-8257 The City of Fayetteville offers to settle your claim for the amount of the adjusted rate of $11,000.00 in accordance with City of Fayetteville Ordinance Number 5504. This offer is contingent upon approval by the Mayor and City Council. In order to take this to the City Council, the attached acceptance of offer needs to be signed and returned to me. This offer is to reimburse you for damage to your dry -stack rock walls that may have been caused by a water leak above your residence on North Vinson Avenue. The leak occurred on an 8" ductile iron water line at approximately 3:00 a.m. 21 October, 2012. The wall is dry stack rocks against an existing natural rock bank. There is no mortar, no drainage behind the wall (water drains between the unmortared rocks), no anchoring, and no visible foundation. This offer is based on an effected area is approximately 44 feet long by 5 feet high on the east wall and 35 feet long by 5 feet high on the west wall, for a total of roughly 395 square feet to be replaced. The City sincerely regrets the incident. To help prevent a possible recurrence of the leak, City staff removed and replaced the damage section of pipe. Sincerely, Pity of Fayetteville PE Director cc: " City Attorney Water/Sewer Operations Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 Trust 830 E (Bess) Jurgens Approv Ltr 25Ju113 THE CITY OF FAYETTEVILLE, ARKANSAS Acceptance of Offer The undersigned does hereby accept the offer of eleven thousand dollars ($11,000.00) in full compromise settlement and satisfaction of, and as sole consideration for, the final release and discharge of all actions, rights, causes of action, claims and demands whatsoever that now exist or may hereafter accrue against the City of Fayetteville, a municipal corporation, and the elected officials and employees thereof, charged or who or which may be charged with responsibility for injuries to the person and property of the undersigned, the treatment thereof, and all consequences flowing therefrom, as a result of the event which occurred on or about the 21 st day of October, 2012, at or near 830 E. Trust Street, Fayetteville, Arkansas, and for which the undersigned claims the above -named parties are legally liable in damages (which legal liability and damages are disputed and denied), and acknowledging that nothing herein shall be construed to alter, limit or otherwise compromise that immunity afforded the City of Fayetteville under the Constitution and Statutes of the State of Arkansas, and; The undersigned agrees, as further consideration and inducement for this compromise settlement, that it shall apply to all known, unknown and unanticipated injuries and damages resulting from said accident, casualty or event, as well as to those now asserted and disclosed. Signed this Al day of 12013. By:'6 '' ':io' Joh ess 83 E. Trust Street F yetteville, AR 72701 Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain - Fayetteville, AR 72701 Trust 830 E (Bess) Jurgens Approv Ltr 25Ju113 %jer Main (Ai vrox) ' er �LeakCH Dallmoed Wall ' .'Section �. I It 1 All Damaged �11 I ?` Section i �• I � s 5 �i I -` - =fix•_ .ti �. - Close-up of Damaged Wall Section Damaged Wall Section the Morning of the Leak Trust 830 E (Bess) CCMemo Ju113 W i Damaged Wall Section the Morning of the Leak J Representative Wall Section with Dry Stacked Rocks and Existing Rock Embankment Trust 830 E (Bess) CCMemo Ju113 CITY OF FAYETTEVILLE CLAIM FORM 3=i.Ri,Si4 INSTRUCTIONS: Complete this form clearly stating the reason for the claim, amount you are clainung, all contact information, and attach appropriate documentation including receipts, estimates, photos, etc. Substantive documentation (written estimates and/or receipts, proof of incident, etc.) MUST be provided to establish all monetary values. Additional sheets may be added. Failure to provide all information and fully substantiate your claim will result in the claim being rejected. Filing a claim does not imply approval; claims will be investigated before a decision is rendered; claims received more than 30 days after the incident will be rejected. Claims containing inaccurate or fraudulent information will be rejected. Please mail to or hand -deliver documents to: City Administration Building, Attention: Mayor's Office 113 W. Mountain, Fayetteville, AR 72701 �,.t. -_„ VED (479-575-8330) Fax-479-575-8257NO � CLAIMANT INFORMATION (please print neatly) ` A'i EIe i vfLLEi I / MAYORS OF F(CF- Full Name: ��55 , o Email Address: Last Name. Fii-;t Na rn middie in 6w Street Address: �ETXu5 T �T City, State & Zip: T-7� �' LLB e AK 7�2 7d l r Daytime Phone Number: r5oC-) — 6 T O7 Alternate Phone Number: INCIDENT INFORMATION Address/Location of Occurrence: S& o 6 . 7XA57 6 ,¢,6uwD Beck KILN! 5 f Date and Time of Occurrence: /-f-/ /o2 3 ItlA Amount Being Nature of Occurrence: Sewer Backup Water Street Related ied: $ Other Do you have insurance which covers your damage in this incident? Deductible Amount The City will not pay a claim in an amount exceeding a Claimant's insurance deductible, if covered. The undersigned hereby files a claim against the City of Fayetteville, Arkansas for the following reason(s): (Attach additional sheets if necessary) -& LitfC—r /fiitJ/7 � �rn �S /z T�tt�7)tiG% uJ#-Zz 5 x�az_zo� Fite,- a,tJ . By signing below, I acknowledge that the above -provided information is true and correct to the best of my knowledge and belief. Shaded cn-&a fir Cili, Received by lteferres rr - Date USC Wll'I! II -7 b :- Date Received Z�° J/ � Date Deoartinr.lit V 1}ciiicd RE: Claim for John Bess 830 E. Trust Street Fayetteville, AR 72701 To Whom It May Concern: Around 3 a.m. on October 21, 2012, there was a city water main break causing an eruption of water flowing from Vinson Street down to the property of 830 E, Trust Street. The water brought mud and sludge with enough force to bring down a portion of dry stacked stone retaining wall and compromise several feet of the wall. The stones fell onto a gas grill up against the wall breaking the cast aluminum lid and side tables. The water traveled across the back yard and up against the back porch with enough force to undermine the foundation of the back porch area causing it to move away from the house. The water traveling across the back yard to the west side also eroded several feet of the yard creating a void along the west side dry stacked retaining wall, also compromising that retaining wall. Pictures of the damage and estimates for restoration are attached. Signed, John 13css A& FARMERS October 23, 2012 John Bess 830 E Trust St Fayetteville, AR 72701 RE: Insured: John Bess Policy Number: 944586625 Dear Mr. Bess: Send all correspondence to: Farmers National Document Center P.O. Box 268994 Oklahoma City, OK 73126-8994 Fax (877) 217-1389 Email: After speaking with Carol at John Ogden's agency about a claim for water damages and earth movement this letter is to advise you of our findings regarding your claim. Unfortunately, ground water from a water main and earth movement are uninsured or excluded from coverage under your policy. For that reason, we are unable to compensate you for any damages or repairs incurred. Please refer to your Protector Plus Homeowners Package Policy, 4th edition, as amended by policy endorsement H4170, 2nd edition, Endorsement Amending Definitions, Section I — Losses Insured and Section I — Losses Not Insured, which states: DEFINITIONS 8. Earth Movement - means movement of earth, including, but not limited to the following: a. earthquake, landslide or mudflow, all whether combined with water or not. b. collapse, settling, cracking, shrinking, bulging, subsidence, erosion, sinking, rising, shifting, expanding, or contracting of earth, all whether combined with water or not. 18. Water - means water (1-120) alone, whether frozen or not or any liquid or sludge which contains water, whether or not combined with other chemicals or impurities. It includes, but is not limited to, snow, sleet, slush, ice, dampness, vapor, condensation, moisture, steam and humidity. 19. Water damage — means loss caused by, resulting from, contributed to or aggravated by any of the following, whether occurring on or away from the residence premises: a. Water from rain or snow, surface water, flood, waves, tidal water, overflow or escape of a body of water, or spray from any of these, whether or not driven by wind; d. water below ground level whether occurring naturally or not, including water which exerts pressure on, or seeps or leaks through a building, sidewalk, driveway, wall, foundation, swimming pool or any portion of the residence premises. SECTION I - LOSSES NOT INSURED Applying to Coverage A and B - Dwelling and Separate Structures and Coverage C — Personal Property We do not insure for loss either consisting of, or caused directly or indirectly by: 1. Earth Movement. Acts or omissions of persons can cause, contribute to or aggravate earth movement. Also, earth movement can occur naturally to cause loss, or combine with acts or omissions of persons to cause loss. Whenever earth movement occurs, the resulting loss is always excluded under this policy, however caused; ... 2. Water damage. Acts or omissions of persons can cause, contribute to or aggravate water damage. Also water damage can occur naturally to cause loss or combine with acts or omissions of persons to cause loss. Whenever water damage occurs, the resulting loss is always excluded under this policy, however caused; ... Rust, mold, fungus, or wet or dry rot are never covered under this policy, however caused, unless the rust, mold, fungus, or wet or dry rot is located upon the portion of the residence premises which must be repaired or replaced because of direct physical damage as the result of a covered loss. Acts or omissions of persons can cause, contribute to or aggravate the losses set forth in items 4-13 below. Also, these losses could occur naturally or combine with acts or omissions of persons. Whenever the losses listed in items 4-13 occur, the resulting loss is always excluded, however caused, unless specifically indicated otherwise. 13. a. wear and tear, marring, deterioration; f. settling, cracking, shrinking, bulging, or expansion of pavements, patios, foundations, walls, floors, roofs or ceilings; The policy provides that after a loss it is your duty to protect the insured property from further damage. You should take all appropriate steps to make repairs and prevent further damage. Please be aware Section I- Conditions of your policy contains the following provision: 12. Suit Against Us. We may not be sued unless there has been full compliance with all the terms and conditions of this policy. Suit on or arising out of this policy must be brought within the time provided by the Statue of Limitation as set forth by Arkansas Law. By the writing of this letter, we do not waive any of our rights or any of the terms, conditions, or provisions of the insurance policy, all of which are expressly retained and reserved. Further, any activity on our part by way of investigation, determination of damage, or emergency advance payments to you, does not constitute a waiver of our rights. We understand you are retaining your rights as well. We are closing your file at this time. If after reviewing this letter and reading the policy language, you believe there is additional information that would apply to your claim, please provide us with those facts for consideration. Sincerely, HelpPoint Claims Services Richard Stanaland Field Claims Representative cc: John Ogden, agent Caldwell Stone, Inc. 12192 Ed Edwards Rd. Fayetteville AR 72701 I NAME/ADDRESS I John Bess 830 E. Trust Fayetteville, AR 72701 Estimate DATE ESTIMATE # 11/16/2012 640 TERMS JOB F— 109/oretainer, progress billing Water Main Break Repairs ITEM .DESCRIPTION QTY COST TOTAL Demolition deconstruct stone 241 75.00 1,800.00 Tractor Servi I Excavate backfill , store on site, replace behind wall. 30 100.00 3,000.00 re -grade yard Labor prepare for reconstructing walls, including drilling and 2-1 45.00 1,080.00 pinning boulders, preparing footing.., ILand dig near utilities as needed Sq. Ft. Stone installation 657 18.00 11,826.00 misc. seed, straw, gravel backfill 1 600.00 600.00 TOTAL $18,306.00 SIGNATURE PROPOSAL J.W. ENTERPRISES, INC. 11296 BLACK OAK ADDITION FAYETTEVILLE, AR 72701 PHONE 479- 582-2251 John Bess 830 trust st Fayetteville Ar. 72702 Re: rock retaining wall damage J.W. Enterprises, Inc. does hereby propose to furnish materials and labor necessary to perform the following Scope of Work: (1) Take down and replace approximately 756 square feet of damaged native stone dry stack retaining walls. (2) Cleanup overburden of soil that has washed into the owners yard, below the farthermost east wall . (3) Remove ample soil behind the damaged areas, and restack the existing stone. (4) The removed stone shall be stacked on pallets and left in the yard until used . (5) Relay removed stone (5) Install drainage gravel behind newly laid stone (6) Regrade the yard to its original state. (7) Seed and straw the disturbed areas with lawn fescue All materials guaranteed to be as specified, and the above work to be performed in accordance with specifications and completed in a timely and Thirty one thousand three hundred twenty nine dollars (31,329.00) Terms: 33% upon contract agreement 33% upon complete ion of the lower- wall balance due upon completion J.W. Enterprises, Inc. will not be responsible for underground structures or utilities. Date J.W. Enterprises, Inc Date Authorized Signature