Resident Daniel L. Steele addressed the commission saying his truck’s front end and wheel were damaged when the road gave way on Nov. 15 at 17th Street near Laurel. Steele said he had to pay for alignment, two new front tires and other repairs and that he submitted an insurance claim that FMIT denied.

City staff and legal counsel summarized follow-up: staff said public works knew of sewer/lining work in the area and had placed traffic cones; the city confirmed a sewer lining project was underway and that crews had placed cones near the work. The city manager said Steele’s claim was submitted twice and denied by FMIT for lack of causation; the city’s legal counsel confirmed FMIT’s denial was based on a determination that the city was not liable for the claimed damage.

Options presented: The city attorney explained Steele could (1) file suit against the city to pursue damages, or (2) the commission could direct staff to negotiate a settlement payment and have the claimant execute a release protecting the city from precedent. Commissioners discussed whether the city owed payment given that the roadway is city infrastructure and that crews were actively repairing the sewer main. Some commissioners expressed confusion about how FMIT denied liability despite the city’s knowledge of a pipe problem and the presence of cones and temporary repairs.

Commission direction: The commission did not direct immediate payout. Instead commissioners asked the city attorney and city manager to continue efforts to meet with the claimant, seek a nonprecedent release if any settlement is negotiated, and report back. Several commissioners said they did not want the commission to become the appeals venue for every denied claim and suggested staff and legal counsel continue to pursue administrative remedies before any payment decision by the commission.

Why it matters: The incident highlights how ongoing infrastructure repairs and open claims interact with the city’s liability insurer and the commission’s role when insurance denies a claim. Staff said the road section was subsequently repaired and that public works will improve signing practices by using more definitive signage instead of cones where a hazard is present.