AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 3/20/2019
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
SUBJECT:
Title
City Council consideration of a Property Damage Release for settlement of damages to the City fiber network on North Main Street - Kinsale Insurance Company.
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RECOMMENDED ACTION:
Recommended action
That the City Council:
1. Approve and authorize the City Manager to execute a Property Damage Release for the settlement of damages to the City's fiber network on North Main Street (Kinsale Insurance Company).
2. Consider, accept and approve General Fund and Gas Tax revenue increases for insurance proceeds in the amount of $3,165.48 and $69,505.00 respectively, from Kinsale Insurance Company for reimbursement of damages caused to the City's fiber network on North Main Street.
3. Authorize an appropriation of $69,505.00 for reimbursement to the Capital Improvement Project titled "Striping Rehabilitation" within the Gas Tax Fund (Fund 222).
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ANALYSIS:
On December 1, 2017, a contractor working on the commercial redevelopment project at 705 North Main Street struck a City fiber conduit and severed multiple fiber optic cables used to connect traffic facilities throughout the City. Kinsale Insurance Company, who is representing the contractor, agreed to cover the damages but declined to hire a contractor to do the work, thereby electing to have the City hire and supervise its own contractor. The work has since been completed to City standards and specifications, and the total cost, which includes the contractor's costs, as well as City labor costs in overseeing the repairs, is $72,670.48. Kinsale Insurance Company has agreed to pay this amount and provided the City with the attached Property Damage Release to complete the settlement.
Per City Municipal Code (CMC) section 2.04.060 (W), the City Manager is authorized to enter into an agreement for the receipt of money by the City in an amoun...
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