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ST9302-CL000830 (2) MEMORANDUM FROM THE DEPARTMENT OF ENGINEERING To: Clay Phillips, Deputy City Manager From: Ken Griffin, P.E., Dir. of Engineering/Public Works Date: January 16, 20010 RE: "Brown Water" Incident August 30, 2000 Attached to this memo is an updated claim list. Twenty-eight claims have been filed against the City for a total dollar amount of $6,003.55. Based on my records, the insurance company has paid five claims for a total of $701.06. The insurance company is now taking the position that they are not responsible for paying the claims. The insurance company that paid the claims was not Ed Bell's insurance company, but the insurance company for their sub-contractor, M-Co. This matter could be litigated with the contractor on the project; however, they have clearly indicated that it is their opinion that this is a City issue because City crews were operating valves at the time of the incident. Our position has always been that a waterline break that happened near the intersection of MacArthur and Sandy Lake prior to this incident more than likely contributed to depositing large amount of silt in the waterline that was under construction by M-Co. Once that waterline was placed in service, the siltation was forced into the City's water system. Our position is that the contractor should have insured that the line was clean. The contractor has taken the position that the North Center Texas Council of Government's specifications state that unless otherwise provided the City is responsible to insure that lines are clean prior to placing them in service. The above is provided to state that if this were litigated it is quite possible that this issue could be litigated for sometime and for only an amount of approximately six to seven thousand dollars. Attorneys' fees and court costs would more than likely cost more than the damages to be paid by these claims. My recommendation would be to process payment to the citizens based on previously filed claims. There are one or two claims of which I would inquire of the citizens for additional information, one is Mr. Armstrong who actually put a range of $400-$600. Once I have reviewed the claims, I would then process the paperwork for payment to the citizens to reimburse them for damages sustained during the "Brown Water" incident. It is possible that once sprinkler systems are operated this spring there could be additional claims, however, I don't anticipate that those would be of a substantial nature. If you should have any additional questions or need additional information please feel free to contact me. "CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"