Council refers 103 Chestnut Street repair claim to city insurance for investigation

Hickman — The council voted to refer a property-repair claim for 103 Chestnut Street to the city’s insurance carrier for investigation after staff said the sewer backup occurred on June 9, 2025 while a contractor was performing sewer repairs.

Kelly explained the sequence: the contractor was cutting roots and performing routine sewer maintenance when a backup occurred at the commercial property; the property owner filed a tort claim and staff have collected photos and restoration documentation. “So basically with our tort claim process, so it comes to you as a request for reimbursement to that property owner for the damages that incurred,” Kelly said, adding the city’s recommended first step is to send the claim to the League Association of Risk Management for investigation.

Council members asked whether the contractor carried insurance and whether the business could resume use of the building; Kelly said the insurer will contact staff and the contractor and determine liability and that the restored property was usable after additional repairs.

Mr. Borcart moved and Mr. Wagner seconded a motion to refer the claim to the city’s insurance company. Michelle called the roll; the motion passed with affirmative votes recorded for the members present.

Staff emphasized that referral initiates the insurer’s formal investigation to determine responsibility among the involved insurers (city, contractor and possibly the property owner’s insurer) and that final payment or settlement decisions will follow the insurer’s findings.