HomeMy WebLinkAbout03.h. Deny claim from Nat'l Subrogation Service for Fireman's FundCentral Contra Costa Sanitary District 3.h.
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: May 5, 2011
Subject: DENY CLAIM FROM NATIONAL SUBROGATION SERVICE FOR
FIREMAN'S FUND
Submitted By
Shari Deutsch, Safety & Risk
Management Administrator
Initiating Dept. /Div.:
Administration, Safety & Risk
Management
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
Deutsch sgraves
K. Alm
S M. Kelly,
General Manager
ISSUE: The District has received a claim for damages on behalf of Fireman's Fund for
costs to respond to a sewage overflow at 119 El Centro in Diablo.
RECOMMENDATION: Deny the claim.
FINANCIAL IMPACTS: Denying the claim has no fiscal impact.
ALTERNATIVES /CONSIDERATIONS: The alternative is to accept the claim and pay
National Subrogation Service $12,632.31.
BACKGROUND: On April 11, 2011 the District received a claim from National
Subrogation Services on behalf of Fireman's Fund Insurance Company seeking
recovery of $12,632.31 paid for damages from a February 20, 2011 sewer overflow at
119 El Centro in Diablo. The homeowner contacted Fireman's Fund instead of the
District and Fireman's Fund responded to the claim. Through its subrogation service
agent, the insurer seeks recovery of its costs. Since District contractors were working in
this area at the time of the overflow, Fireman's Fund assumes the overflow was caused
by the construction work.
Staff investigated this incident and discovered that the overflow was caused by a break
in the lateral under the house. Staff learned that a District contractor potholed the
lateral at this house by hand digging four days before the lateral broke. However, the
potholing occurred over 12 feet away from the house, nowhere near where the lateral
failure occurred. Staff does not believe that this activity could have lead to the lateral
failure under the house.
The Budget & Finance Committee reviewed this matter at the May 2, 2011 meeting.
RECOMMENDED BOARD ACTION: Deny the claim.