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RESOLUTION NO. R-1314-115: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, AND THE NORMAN UTILITIES AUTHORITY APPROPRIATING $20,000 FROM THE RISK MANAGEMENT REIMBURSEMENT REVENUE ACCOUNT TO REIMBURSE COSTS PAID TO REPLACE WELL HOUSE NO. 20 WHICH WAS DAMAGED IN AN ACCIDENT.
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BACKGROUND: On January 3, 2013, the City of Norman suffered property damage to Well House #20 as a result of a motor vehicle accident that occurred on I-35 near Indian Hills Road. On January 4th the well house was demolished and removed for safety.
On September 10, 2013 the Norman Utilities Authority approved Contract K-1314-7 with Associated Industries, Inc., to reconstruct the well house, in the amount of $92,000. The project began on September 19, 2013 and was scheduled for completion by January 29, 2014. The Norman Utilities Authority accepted the project as final on March 11, 2014.
DISCUSSION: The liable driver in this accident did not have valid insurance or assets from which to satisfy a judgment against him. The City Attorney's Office was able to negotiate with the driver's family and secure a $20,000 payment to partially settle the claim.
At the March 11, 2014 City Council meeting, Council accepted a settlement payment and $20,000 was deposited into the Risk Management Reimbursement Account.
RECOMMENDATION: Staff recommends that $20,000 be appropriated from the Risk Management Reimbursement Revenue Account (043-0000-367.12.64) to the Water Well Construction (account 031-9345-462.61-01; project WA0197) to partially offset the cost of replacement of the well house.