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Home My WebLink About107-20 RESOLUTIONr 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 107-20 File Number: 2020-0272 MATTHEW CHEADLE DAMAGE CLAIM: A RESOLUTION PURSUANT TO §39.10(C)(4) OF THE FAYETTEVILLE CITY CODE TO AUTHORIZE THE MAYOR TO PAY THE AMOUNT OF $33,825.00 TO MATTHEW AND FRANKIE CHEADLE FOR A WATER DAMAGE CLAIM ARISING AT 329 EAST SYCAMORE STREET WHEREAS, pursuant to the §39.10(C)(4) of the City Code, the City Council must approve the payment of sewer damage claims exceeding $8,000.00. NOW, THEREFORE, 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 § 39.10(C)(4) of the Fayetteville City Code, authorizes the Mayor to pay $33,825.00 to Matthew and Frankie Cheadle for a water damage claim arising at 329 East Sycamore Street. PASSED and APPROVED on 4/7/2020 Attest: G = : FAYETTEVILLE : Kara Paxton, City Clerk Treasurer,, y PS Page 1 Printed on 418120 City of Fayetteville, Arkansas 113 West Mountain Street C 1 Fayetteville, AR 72701 e. (479) 575-8323 i; °? Text File File Number: 2020-0272 Agenda Date: 4/7/2020 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 4 MATTHEW CHEADLE DAMAGE CLAIM: A RESOLUTION PURSUANT TO §39.10(C)(4) OF THE FAYETTEVILLE CITY CODE TO AUTHORIZE THE MAYOR TO PAY THE AMOUNT OF $33,825.00 TO MATTHEW AND FRANKIE CHEADLE FOR A WATER DAMAGE CLAIM ARISING AT 329 EAST SYCAMORE STREET WHEREAS, pursuant to the §39.10(C)(4) of the City Code, the City Council must approve the payment of sewer damage claims exceeding $8,000.00. NOW, THEREFORE, 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 § 39.10(C)(4) of the Fayetteville City Code, authorizes the Mayor to pay $33,825.00 to Matthew and Frankie Cheadle for a water damage claim arising at 329 East Sycamore Street. City of Fayetteville, Arkansas Page 1 Printed on 41812020 City of Fayetteville Staff Review Form 2020-0272 Legistar File ID 4/7/2020 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Tim Nyander 3/20/2020 WATER SEWER (720) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends a damage claim payment to Matthew and Frankie Cheadle in the amount of $33,825.00 for water damage that occurred to their residence located at 329 E. Sycamore St. 5400.720.4310-5311.04 Account Number N/A Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? No Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: Water and Sewer Fund N/A Project Title Current Budget $ 70,000.00 Funds Obligated $ 200.00 Current Balance 69,800.00 Item Cost $ 33,825.00 Budget Adjustment $ - Remaining Budget Previous Ordinance or Resolution # Approval Date: V20180321 CITY OF FAYETTEVILLE ARKANSAS MEETING OF APRIL 7, 2020 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff FROM: Tim Nyander, Utilities Director DATE: March 20, 2020 SUBJECT: Water Damage Claim at 329 E. Sycamore St. CITY COUNCIL MEMO RECOMMENDATION: Staff recommends a damage claim payment to Matthew Cheadle in the amount of $33,825.00 for water damage that occurred to his residence located at 329 E. Sycamore St. BACKGROUND: On February 13, 2020, the City experienced a water main break in the area of Mr. Cheadle's residence. This water main break caused extensive water damage to his pool, retaining wall, landscape, and under his home. DISCUSSION: The reimbursement detail is on the attached sheet. The reimbursement includes repairs to the pool, water to refill it, and the retaining wall including surrounding landscaping. Burton Pools was selected as the sole source pool vendor to maintain the existing warranty. It also includes repairs to the crawlspace area of the home. Staff recommends reimbursing Matthew Cheadle in the amount of $33,825.00 to cover the damage costs that resulted from the City water main break. BUDGET/STAFF IMPACT: Funds are available from the Non -Vehicular Damages account within the Water & Sewer Fund. Attachments: Reimbursement Detail Insurance Document Photos of Damage Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 CITY OF win FAYETTEVILLE ARKANSAS 329 E. Sycamore (Cheadle) LOSS: VENDORS: BID: Explanitation: Pool and surrounding landscape Burton Pools $27,500 This bid includes warranty. Phillips Masonry, Inc. $26,000 Brock Boyd NO BID Crawlspace restoration John Frye $6,225 Clean Tech NWA 6,372 Cale Nicholson $6,450 Water to refill pool City of Fayetteville $100 Based on previous usage. Total= $33,825 W0% CITY OF FAYETTEVILLE ARKANSAS March 13, 2020 Matthew Cheadle 329 E. Sycamore St. Fayetteville, AR 72703 Subject: Water Claim (329 E. Sycamore Street, Fayetteville) Dear Mr. Cheadle, The City of Fayetteville is in receipt of your claim form concerning a water main break at 329 E. Sycamore Street in Fayetteville on February 13, 2020, which resulted in damage to your pool, retaining wall, landscape, and under your home. The City of Fayetteville offers to settle your claim for the amount of $33,825.00 by reimbursing you directly. In accordance with the City of Fayetteville Ordinance No. 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. The reimbursement detail is on the attached sheet. The reimbursement includes repairs to your pool, water to refill it, and the retaining wall including surrounding landscaping. Burton Pools was selected as the sole source pool vendor to maintain your existing warranty. It also includes repairs to the crawispace area of your home. In order to settle this claim, a release form prepared by the City Attorney's Office must be signed and notarized. The City Attorney's Office will be contacting you to resolve this matter. The City sincerely regrets this incident and the inconvenience it has caused. If you experience no water, an issue inside the meter box, a sewer blockage, or something similar in the future, please contact the City of Fayetteville Water & Sewer Department at 479-575-8386 as your first course of action in identifying and solving the problem. Sincerely, City of Fayetteville _ Tim Nvander Utilities Director Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 10M CITY OF FAYETTEVILLE ARKANSAS ACCEPTANCE OF OFFER The undersigned does hereby accept the offer, contingent upon final approval by the Fayetteville City Council, of $33.825 in full 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 following therefrom, as a result of the event which occurred on or about the 13t' day of February, 2020 at or near 329 E. Sycamore, 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 the immunity afforded the City of Fayetteville and the Constitution and Statutes of the State of Arkansas, and; The undersigned agrees as further consideration and inducement for this settlement, that is shall apply to all known, unknown and unanticipated injuries and damages resulting from said accident, casualty or event, as well as those now asserted and disclosed. Signed this _� day of C , 2020 By: atthew �or Frankie Cheadle 329 E. Sycamore St. Fayetteville, AR 72703 ailing Address: www.f3y i W. Mountain Street yetteville, AR 72701 ()- Nationwide' MATTHEW CHEADLE 329 E SYCAMORE ST FAYETTEVILLE, AR 72703-2629 MATTHEW CHEADLE Page 1 of 2 Date prepared February 28, 2020 Notice of loss date February 13, 2020 Claim number 217612-GK Policy number 6303HOO15289 Questions? Contact Claims Associate Jarrod Nelson NELSJ13la nationwide.com PO BOX 182068, columbus, OH 43218-2068 Phone 501-428-4718 Fax 368-434-3211 Your Dear MATTHEW CHEADLE, Homeowners(HO-03-B) claim has been denied We've reviewed the available information for this Homeowners(HO-03-B) claim and have determined there's no coverage for this loss under your homeowners(HO-03-B) policy. As a result, we respectfully deny this claim. Claim details Insurer: Nationwide Mutual Fire Insurance Company Policyholder: MATTHEW CHEADLE Claimant: MATTHEW CHEADLE Claim number: 217612-GK Loss date: February 12, 2020 Policy details The Homeowners(HO-03-13) policy states the following: Property Exclusions (Section 1) 1. We do not cover loss to any property resulting directly or indirectly from any of the following. Such a loss is excluded even if another peril or event contributed concurrently or in any sequence to cause the loss. b) Water or damage caused by water -borne material. Loss resulting from water or water -borne material damage described below is not covered even if other perils contributed, directly or indirectly to cause the loss. Water and water -borne material damage means: (1) flood, surface water, waves, tidal waves, overflow of a body of water, spray from these, whether or not driven by wind. (2) water or water -borne material which: (a) backs up through sewers or drains from outside the dwelling's plumbing system; or (b) overflows a sump pump, sump pump well or other system designed to remove subsurface water or water -borne material from the foundation area. (3) water or water -borne material below the surface of the ground, including water or water -borne material which exerts pressure on, seeps or MATTHEW CHEADLE Claim # 217612-GK Page 2 of 2 leaks through a building, sidewalk, driveway, foundation, swimming pool, or other structure. Resulting direct loss by fire, explosion, or theft is covered. 2. We do not cover loss to any property resulting directly or indirectly from the following if another excluded peril contributes to the loss: a) A fault, weakness, defect or inadequacy in the: (2) design, workmanship, construction, materials; 3. We do not cover loss to property described in Coverages A and B resulting directly from any of the following: f) (1) wear and tear, marring, deterioration; (2) inherent vice, latent defect, mechanical breakdown; About our decision Our review showed that your property suffered damages from the city's water main rupture located on the property. The damages discovered to your property was the result of earth movement and ground surface water from outside of the dwelling. However the resulting damages discovered to your property are specifically excluded under the policy with earth movement and ground surface water being the policy exclusions. Therefore a payment would not be issued under the policy for the damages discovered to you policy during my recent inspection . We expressly reserve all other rights, defenses, or contentions, which are available to us under the policy of insurance, by law or otherwise, and do not waive any such rights or defenses which we now have or which may become known to us in the future. If you have information about this claim that may affect our current decision, please forward it to us as soon as possible. Additional information If you have any questions or concerns about this claim, please contact me at 501-428-4718 or NELSJI3@nationwide.com. Sincerely, Jarrod Nelson Nationwide Mutual Fire Insurance Company PO BOX 182068, columbus, OH 43218-2068 Arkansas law requires the following notice: Any person who knowingly presents a false or fraudulent claim for payment of a loss or benefit or knowingly presents false information in an application for insurance is guilty of a crime and may be subject to fines and confinement in prison.