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HomeMy WebLinkAboutSewer Insurance Reimbursement – Sewer Service Line Repair 1231 East Wayne St. - Neovi Karakatsanis and Jonathan Swarts1316 COUNTY -CITY BUILDING 227 W.JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 CITY OF SOUTH BEND JAMES MUELLER, MAYOR BOARD OF PUBLIC WORKS June 9, 2020 Neovi Karakatsanis and Jonathan Swarts 1231 East Wayne St. South Bend, IN 46615 RE: Sewer Insurance Reimbursement Dear Ms. Karakatsanis and Mr. Swarts: PHONE 574/235-9251 FAx 574/ 235-9171 The Board of Public Works, at its meeting held on June 9, 2020, approved the above referenced insurance reimbursement in the amount of $6,875. The Sewer Department will issue your check. You should receive it within the next two (2) weeks. If you have any further questions regarding this matter, please call this office at (574) 235- 9251. Sincerely, s/Linda M. Martin, Clerk Enclosure GARY A. GILOT ELIZABETH A. MARADIK THERESE J. DORAU JORDAN V. GATHERS JOSEPH R. MOLNAR , INTER -OFFICE MEMORANDUM MACS DEPARTMENT OF PUBLIC WORKS DIVISION OF ENGINEERING TO: Board of Public Works FROM: Eric Horvath, Public Works Director SUBJECT: Sewer Reimbursement for 1231 East Wayne St. DATE: June 4, 2020 I am requesting the Board's approval of the sewer insurance reimbursement to the homeowners at 1231 East Wayne St. in the amount of $7,375 less the $500 deductible, for a total reimbursement of $6,875. The homeowners were not aware of their sewer insurance coverage, and neither the three (3) contractors they received quotes from nor the city employees who did the locates informed them of the program at the time. They found out about the program from a neighbor after the fact. During the week of March 11 and March 18, 2019, Neovi Karakatsanis and Jonathan Swarts, 1231 East Wayne Street, had Niezgodski Plumbing at their home to repair a sewer service line. The first phase consisted of the replacement of the existing service line due to the fact that "[t]he area where the main drainage system exits the house is deteriorated and leaks sewage that is currently penetrating the basement foundation and is the cause of sewer gas within the structure". The cost of the outside sewer line replacement was $7,375.00. It took longer than expected to complete the replacement because Niezgodski had substantial difficulty locating the existing piping in their front yard and, consequently, called city officials to the property twice during the week of March 11 to seek their assistance in finding the piping. The second phase of the project consisted of interior work that was necessary to raise the existing drainage system in the basement to a higher level, eliminating all existing piping below the basement floor. This interior work cost an additional $7,079.00. Niezgodski Plumbing was one of three companies from which they sought estimates. Niezgodski was hired to do this work, but Lincoln Plumbing and Bob Frame also agreed that a break in the existing sewer pipe near the foundation of the house was leaking sewage that was penetrating the foundation and causing sewer gas buildup. All three companies reached the same conclusion, and the estimates received from them were very comparable (within a few hundred dollars of each other). The City of South Bend Legal Department has determined that a portion of the charges for the sewer backup repair at 1231 East Wayne Street can and should be covered under the City's Sewer Service Fund Program for the following reasons: INTER -OFFICE MEMORANDUM DEPARTMENT OF PUBLIC WORKS DIVISION OF ENGINEERING 1. The resident is being charged $1.18 per month for the coverage (South Bend Municipal Code, Chapter 17, Article 7, Section 17-56, et seq.). 2. If the City takes what the customer is saying as being true, the customer did not become aware of the existence of the program until informed by their neighbor following completion of the work. 3. Per the Municipal Code, all funds collected under the program are be used solely to address repair/replacement of failing private sewer connections, along with program administrative and inspection cost. 4. The City's website contains very little information about the availability of the fund �.s��„ut1)���"„ndirl g, e�/k�� v�✓I gW :W�� W /a uc„l / u ,,,, ICA-04,53.I�). It is therefore reasonable to believe that the customer did not know about the existence of the program and/or the process to be followed prior to engaging a contractor to perform the work necessary to repair the customer's private sewer failure. 5. The customer happened to engage the services of one of the City's pre -qualified contractors (i.e., Niezgodski Plumbing, Inc.); and it appears that Niezgodski contractor did not inform the customer about the existence of the program. 6. If the City takes what the customer is saying as being true, the customer did not become aware of the existence of the program until informed by their neighbor following completion of the work. After extensive review by City Legal, Niezgodski Plumbing, and Public Works, all are in agreement that this work would have been covered by the Sewer Insurance Reimbursement Program, if the owners had been aware of the program. I am available to answer any questions. Thank you. BOARD OF PUBLIC WORKS Gary A. Gilot, President Elizabeth A. Maradik, Member Joseph R. Molnar, Member Therese J. Doran, Member Jordan V. Gathers, Member ATTEST: �2izz�a GEfartix Linda M. Martin, Clerk