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POLICY REGARDING CITY REIMBURSEMENTS FOR CLEANUP AND/OR RESTORATION EXPENSES RESULTING FROM SEWER BACKUP OR WATER METER FAILURE I. Introduction. Periodically, and in spite of the City's ongoing maintenance and repair activities, an obstruction or other blockage in a City sewer main causes a backup of sewage in the City sewer main into privately owned sewer lines and into citizen residences, or aCity-installed water meter unexpectedly fails. Although the City may have no legal liability for damages in such situations, the cost to the resident of cleanup and restoration can be substantial. In an effort to maintain positive customer relations if a backup or water meter failure occurs, the City may reimburse the property owner for the cleanup and restoration required by a sewage backup which may have been caused by blockage of the sewer main or by a water meter failure. The total cost to the City for the cleanup services and restoration of a property to a condition comparable to what existed before the event may not exceed $7,500 per occurrence. II. Guidelines. The following guidelines shall be used in determining the circumstances under which such reimbursement may be made: 1. Reimbursement under this policy is intended for those situations where the City has no legal liability to pay for the damages caused by a backup in the main sewer line or the failure of aCity-installed water meter. In those cases where the City's claim adjustor finds that the backup or meter failure was caused as, a result of City negligence, the claim will be adjusted appropriately without payment under this policy. 2. Reimbursements for costs of cleanup and/or restoration will be made only to owners of residential property and only in those circumstance:> where a water meter fails unexpectedly or the backup occurs in the main sewer line and not when a meter fails as a result of accident, misuse or neglect by the property owner, or when the backup is caused by an obstruction in the individual property owner's service line. No payments shall be made if the City determines the backup or meter failure was the result of negligence, accident or intentional conduct on the part of any contractor or the owner or resident of the affected property. 3. The Utility Division Field Operations crew responding to the sewer backup or meter failure complaint will, to the extent possible, make the determination of whether water damage occurred as a result of a meter failure or some other cause or whether the backup occurred in the City sewer main or whether the backup occurred as a result of a blockage in the property owner's service line. 4. The amount of reimbursement made to a property owner shall be recommended by the City's insurance claims adjustor subject to approvals of the City's Risk Manager, but shall not exceed $7,500 per occurrence. The property ovmer, homeowner and occupant(s) as appropriate will be required to release the City from any further obligations arising out of the sewer backup prior to receiving these funds. 2