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REQUEST FOR COUNCIL ACTION <br />Item Description: Resolve Transformer Damage Claims <br />=1L 11 <br />Date: 2/14/11 <br />Item No.: 7. q <br />City Manager Approval& <br />2 This winter has proved to be a challenging one for snow removal. We have received above <br />3 average snowfall with over 70 inches of snow to date and have been actively working in between <br />4, snow events to make room in the boulevard for snow from additional events. Clearing the snow <br />5 off streets to make them safe for passage of cars and emergency vehicles is one of Public Works' <br />6 core functions. <br />"7 On December 17th, a Public Works staff member was clearing snow from around hydrants as <br />8 well as pushing snow back from the curb to make room for the next snow events. He was using <br />9 the bucket of the backhoe to perform this work. During the course of him performing this task, <br />110 snow was inadvertently and unknowingly pushed into a transformer that was located in the <br />11 boulevard behind the curb at the end of the Pascal St. cul-de-sac. This resulted in the damage <br />12 claims presented to the City Council on January 31 't. The Council scheduled this item for <br />13 consideration to resolve the claims for damages. <br />�4, POLICY OBJECTIVE <br />15 It is our policy to provide excellent customer service and cost effective and efficient programs <br />116 and services to the residents of the city. <br />1 ��7 City Code states that private utilities located in right of way are there at the owner's risk. Our <br />11 111",,'11 franchise agreement with Xcel Energy contains similar language. This language also indemnifies <br />119 the city for claims of damage unless it is determined the city was negligent. The city and the <br />20 insurance carrier respond to claims based on existing city code, agreements, statutory immunity, <br />2i and findings of negligence. <br />22 Pursuant to the City franchise agreement with Xcel Energy, the City should not be liable for <br />23 damages due to Xcel's use of City right-of-way, except where the City is negligent. The <br />24, proposed settlement will provide for a resolution of the damage claims, and the City will pursue <br />25 reimbursement from Xcel. <br />26 SUGGESTED COUNCIL ACTION <br />27 Resolve the residents' claims through a Release arrangement with homeowners and authorize <br />28 pursuit by the City of contribution and indemnification claims against Xcel Energy. <br />Page I of 2 <br />