By Dave Fidlin
Correspondent
On the heels of recent claims related to a sewer backup incident, Whitewater officials are enacting a policy that could help property owners recoup some of their costs associated with such damage in the future.
The Common Council on April 7 adopted a so-called no-fault sanitary sewer backup damage reimbursement policy. As the document’s name suggests, it could be activated in instances when the city is not liable for a deficiency within the municipal sewer system.
“The purpose of the policy is to provide a method for assisting homeowners with the financial burden of a sewer backup, which resulted from a condition in the city’s sanitary sewer system or lines, even when the city is not legally liable for the resulting damage,” Assistant City Manager Chris McDonell wrote in a memo.
At its core, the policy would provide a reimbursement of up to $7,500 for residents who sustained property damage from an unexpected sewage backup. Residents will still be responsible for recouping costs beyond that capped amount.
The policy also defines when a reimbursement could be rendered. It applies only to city infrastructure — not private laterals or related equipment that link to the main sewer line.
Early this year, the city received two separate claims, each stemming from a sewer backup incident in the 300 block of South Summit Street. Property owner Lorenda Cedars filed one claim, while her tenants — Anna Bianco and Victor Lefaive — filed a separate claim for damages.
While many of the council members were sympathetic to the loss in property, they ultimately heeded the advice of their insurance company and denied both claims.
Tim Reel, wastewater director, early this year said he was unaware of any issues within the sewer line leading to the Summit Street property. As is the case throughout the community, Reel said infrastructure within that area is routinely inspected.
Language within the city’s insurance policy states it is only liable for damages if staffers are aware of a problem, and it has not yet been corrected.
To explore options beyond the insurance policy provisions, the council convened an ad-hoc group, the No-Fault Sanitary Sewer Insurance Committee, which met twice before presenting the council with a recommendation.
“To fund the program in 2016, money would be set aside from the Wastewater Utility Connection Fund, which has a balance of $306,000,” McDonell said of the committee’s recommendation. “In 2017, a new $30,000 line item would be created in the wastewater utility operating budget.”
The goal, over time, is for the fund to be self-sustaining.
“At the beginning of each new budget cycle, if reimbursements were paid out, this line item would be replenished to $30,000,” McDonell said. “The total amount of cash in the line item would never exceed $30,000.”
The council waived a second reading of the proposed policy during last week’s review, meaning the document has now taken effect.
