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145 University Avenue West, St. Pain, MN 55103-2044 Phone: (651) 281-1200 - (800) 925-1122 L TDD (651) 281-1290 League of Minaasot O ks LMC Fax: (651) 281-1299 - LMCIT Fax: (651)281-1298 � C:ties P.aE:Qy Weh Site: http://www.lmnc.org August 23,2001 RE f° Joseph Lynch F v a 2 7 2001 City Administrator City Hall Ci !-/ 4364 West Round Lake Road Arden Hills,MN 55112-3923 RE: LMCIT FILE NO.: 11035831 TRUST MEMBER: City of Arden Hills CLAIM: Water Loss D/OCCURRENC: 4/21/01 Dear Mr. Lynch: Please find attached a League of Minnesota Cities Insurance Trust Check in the amount of $25,798.07. This amount is after the city's$5,000 per occurrence deductible. This amount covers the Rochon Corporation's general conditions of$7,500; the ABM cleaning of$2,500; the replacement of drywall at a cost of$19,107; a 101/6 corporation fee of$291.07; and$1,400 for the cost of renting fans and a dumpster. The costs above total $30,798.07. Applying the city's $5,000 deductible leaves a net loss of $25,798.07. I am sure you have in your file, the May 10, 2001 letter from Rochon corporation that went to the attention of Dave Scherbel;Building Inspector. This gave a listing of charges which totaled $37,395.50. From that list, I deducted a $450 charge that Rochon Corporation put down for cleaning. I did not see why we would pay ABM for cleaning and also Rochon Corporation. They put down a$145 charge for a sump pump purchased by Rochon Corporation. I told therm that the city would pay for this direct and that we would leave the pump in the sump well in the event of future water problems. I hope you are agreeable with that. Rochon also included a cost of$1,000 to remove some green glue which they dumped on the side of the building by accident. That was not a part of the water loss, so I deducted that amount. It does not appear that the city should pay this amount either since the glue was on the building due to the negligence of Rochon. AN EQUAL OPPORTUNITY/AFFFRMAT(VE AC-nON EMPLOYER