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Claim by Brian and Tracy GallagherTHE CITY OF DUB E MEMORANDUM Masterpiece on the Mississippi TRACEY STECKLEIN PARALEGAL To: Mayor Roy D. Buol and Members of the City Council DATE: May 17, 2012 RE: Claim Against the City of Dubuque by Brian and Tracy Gallagher, filed by Attorney Benjamin Roth Claimant Date of Claim Date of Loss Nature of Claim Brian and Tracy 05/16/12 02/16/12 Property Damage Gallagher This is a claim in which claimants request due to the Water Distribution Division's failure to follow up on its March 22, 2005 notice to former property owners of 2108 Jackson Street for a water service line to be repaired within 14 days of the notice, that the City reimburse claimants for the cost of claimants' repair to the water service line. This claim has been referred to Public Entity Risk Services of Iowa, the agent for the Iowa Communities Assurance Pool. cc: Michael C. Van Milligen, City Manager Mike Brekke, Water Distribution Supervisor Les Reddick, Esq. Benjamin Roth, Esq. OFFICE OF THE CITY ATTORNEY DUBUQUE, IOWA SUITE 330, HARBOR VIEW PLACE, 300 MAIN STREET DUBUQUE, IA 52001 -6944 TELEPHONE (563) 583 -4113 / FAx (563) 583 -1040 / EMAIL tsteckle @cityofdubuque.org 1400 UNrvEltsrry AVENUE, SUrrE D DUBUQUE, IA .52001 James J. Roth* Benjamin J. Roth Emilie J. Roth Richardson** All Attorneys Licensed in !owe * Also Licensed in Wisconsin ** Also Licensed in Mots May 9, 2012 City of Dubuque Water Distribution Division Municipal Services Center 925 Kerper Court Dubuque, IA 52001 RE: 2108 Jackson Street /Gallagher Dear Water Distribution Division: Telephone: 563- 5574611 Facsimile: .563-557-9775 E-mail: BRoth @RothLawDbq.com Please be advised that our office represents Brian Gallagher and Tracy Gallagher regarding property they owned at 2108 Jackson Street, Dubuque, IA 52001. Mr. & Mrs. Gallagher obtained title to the property on May 10, 2006. Mr. & Mrs. Gallagher recently sold the property on a real estate contract on March 1, 2012. Prior to the sale, Mr. & Mrs. Gallagher repaired a leak in the water service line to the property. The City of Dubuque Water Distribution Division had prior involvement with the property before Brian Gallagher and Tracy Gallagher owned it. On March 22, 2005, Ken Massey, Water Distribution Foreman for the City on Dubuque Water Distribution Division, sent a letter to Joseph T. Ede and Dawn R. Ede, who were the property owners at the time, providing notification that a water leak had been found in the water service line at 2108 Jackson Street. A copy of the letter is attached for your reference. The letter required a licensed plumber to repair the water service line within 14 days of March 22, 2005. The repair to the water service line at 2108 Jackson Street was not made by Mr. & Mrs. Ede. No follow up by the Water Distribution Division was made to ensure the water service line leak was repaired as required per its letter and as per City Code. The property was subsequently foreclosed on by Wells Fargo Bank N.A. who acquired the property in the foreclosure action with Mr. & Mrs. Ede and held the property for approximately eleven months then transferred the property to DLJ Mortgage Capital, Inc. on February 22, 2006. DLJ Mortgage Capital, Inc. transferred the property to Bellstar Property Investments, LLC on February 23, 2006. Bellstar Property Investments, LLC transferred the property to Brian Gallagher and Tracy Gallagher on May 10, 2006. 0 —11 Following purchase of the property, Brian Gallagher and Tracy Gallagher learned of the water service line leak. Brian Gallagher and Tracy Gallagher hired McDermott Excavating and Jaeger Plumbing to repair the water service line leak on February 15, 2012. The amount Brian Gallagher and Tracy Gallagher paid to repair the water service line leak was $3,451.00. A copy of the invoice and Mechanic's Lien Waivers are attached for your reference. Due to the Water Distribution Division's failure to follow up on its notice for the water service line to be repaired within 14 days of March 22, 2005, failure to enforce repair of the leak, and failure to require any of the subsequent property owners to make the repair, the water service line leak eventually became Brian Gallagher and Tracy Gallagher's problem to resolve. Brian Gallagher and Tracy Gallagher respectfully request that the City of Dubuque compensate them for their damages in the amount of $3,451.00. Please contact me if you have any questions or concerns. I look forward to working towards a resolution. Thank you for your attention to this matter. BJR/jmb Enclosures Copy to: Brian Gallagher and Tracy Gallagher Sincerely, Benjamin J. Roth Page 2 of 2 Water Distribution Division 505 Adams Street Dubuque, Iowa 52001 (563) 589 -4305 office (563) 589 -4204 fax 3122/2005 Joeseph T. & Dawn R. Ede 2108 Jackson St. Dubuque, IA 52001 RE: Water service line leak at 2108 Jackson St. Dear Customer: THE CITY OP DUB E ECDPV The Water Distribution Division of the City of Dubuque has found the water service line leaking at the above address. This leak is between the water main in street and water meter in building. All water service laterals are privately owned and maintained by the property owner as per the City of Dubuque Ordinance, Section 44 -168 A & B, Please complete the Water Service Line Leak Form attached and mail or fax (563) 589 -4204 this form to Water Distribution office. A licensed plumber must perform this repair within 14 days of this letter, Thank you for your prompt consideration in this matter. If you have any questions or comments please contact us at (563) 589 -4303. Sincerely, Ken Massey Water Distribution Foreman Attachments City Of Dubuque Ordinance, Article Three Water 44 -168 A & B Copy of Water Service Line Leak Form cc: Kris Neyen, Housing & Comm. Development Rich Russell, Building Services Servlce People Integrity Responsibility Innovation Teamwork TOTAL f . n2 10P 17 WAIVER OF MECHANIC'S LIEN The undersigned, having furnished material or labor for, or performed labor upon, a building or land for improvement, alteration or repair thereof, situated on or being real estate described as: Lot 49 in L.H. Langworthy's Addition in the City of Dubuque, according to the recorded plat thereof (2108 Jackson Street, Dubuque, Iowa) For and in consideration of the sum of Three Thousand Four Hundred Fifty -One and 0 /100 Dollars ($3,451.00) and other valuable consideration, the receipt of which is hereby acknowledged, does hereby waive and release any and all Liens, and rights or claim of rights to file and establish a mechanic's lien against the above described premises, for material furnished or labor performed through the 16th day of February, 2012. Words and phrases herein shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender, according to the context. Dated at Dubuque, Iowa, this r�41- wi , 2012. McDermott Excavating By: Name & Title MCDERMOTT EXCAVATING 14407 HWY 20 WEST DUBUQUE, IOWA 52003 -9709 General Excavating Residential • Commercial • Industrial • mucking • Demolition 563 -583 -4633 Fax: 563 -583 -5858 BILLTO: Brian Gallagher 28735 Crabtree Road Cuba City, WI 53807 INVOICE PROJECT 2108 Jackson Street, Dubuque, Iowa DATE: 2 -16 -2012 INVOICE # 12047 P.O. # DATE HOURS DESCRIPTION RATE AMOUNT 02 -15 -12 Completed as Agreed: Furnish machine, trucks, labor and material as needed to replace water service line per.McDermott Proposal dated 01 -01 -12 LS $3,101.00 Temporary patch city alley with permanent patching done in the Spring of 2012 Add 350.00 0( i 4 , Ti @ LL)) I7 SERVICE CHARGE of 1% per month 30 days after billing date. TOTAL $3,451.00 WAIVER OF MECHANIC'S LIEN The undersigned, having furnished material or labor for, or performed labor upon, a building or land for improvement, alteration or repair thereof, situated on or being real estate described as: Lot 49 in L.H. Langworthy's Addition in the City of Dubuque, according to the recorded plat thereof (2108 Jackson Street, Dubuque, Iowa) For and in consideration of the sum of $7O2, 09 and other valuable consideration, the receipt of which is hereby acknowledged, does hereby waive and release any and all liens, and rights or claim of rights to file and establish a mechanic's lien against the above described premises, for material furnished or labor performed through the 16th day of February, 2012. Words and phrases herein shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender, according to the context. Dated at Dubuque, Iowa, this d2 r -:1_1 012. aeger Plumbin Name & Title FAX COVER SHEET City of Dubuque Water Distribution Division 925 Kerper Court Dubuque, Iowa 52001 Phone: 563 - 589 -4305 Fax: 563- 589 -4204 THE CITY OF DUB E To: � ,��/IJ�� S� From: 0-f-f T/ 'm A /1 ZeA �i� FAX #: Subject: 2 Date: Pages: Page(s), including this cover sheet COMMENTS: TI-IE CRY OF DUB E Water Distribution Division 925 Kerper Court Dubuque, Iowa 52001 -2405 (563) 5894303 office (563) 589 -4204 fax (563) 690 -6678 TDD www.cityofdubuque.org May 16, 2006 Brian Gallagher 2108 Jackson St. Dubuque, IA 52001 RE: Water service line leak at 2108 Jackson St. Dear Customer: The Water Distribution Division of the City of Dubuque has found the water service line leaking at the above address. This leak is between the water main in street and water meter in building. All water service laterals are privately owned and maintained by the property owner as per the City of Dubuque Ordinance, Section 44 -168 A & B. Please complete the Water Service Line Leak Form attached and mail or fax (563) 589 -4204 this form to Water Distribution office. A licensed plumber must perform this repair within 14 days of this letter. Thank you for your prompt consideration in this matter. If you have any questions or comments please contact us at (563) 589 -4303. Sincerely, ./Ze Ken Massey Water Distribution Foreman Attachments City Of Dubuque Ordinance, Article Three Water 44 -168 A & B Copy of Water Service Line Leak Form cc: Kris Neyen, Housing & Comm. Development Rich Russell, Building Services Service People Integrity Responsibility Innovation Teamwork