ERMUSR Misc 05-10-2007 - Laserfiche WebLink

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~/ Elk River ~--~ Municipal Utilities 13069 Orono Parkway Elk River, MN 55330 May 7, 2007 To: Elk River Municipal Utilities Commission Jerry Takle Jerry Gumphrey Jim Tralle From: Bryan Adams Subject: Miscellaneous Issues phone: 763.441.2020 Fax: 7(3.441.8099 Enclosed is the packed for Thursday, May 10, 2007 commission meeting at 3:30 p.m. Please note the time change. The Lorenz case continues on course. As you may recall, on October 2, 2004 Kristin Lorenz was driving a car on Co. Rd. 33, hit a utility pole and was killed. This utility pole was purchased from Connexus Energy with acquisition area 21. Elk River Municipal Utilities, Connexus Energy and Sherburne County are being sued in this case. As a result of this accident, Connexus Energy is requiring us to indemnity them in future cases of this nature. Below is the language we have agreed to: "Connexus Energy states that to the best of its knowledge that facilities sold to ERMU were designed and constructed in accordance with the National Electrical Safety Code (NESC) that was in effect at the time of construction and ERMU agrees that the facilities are being transferred `as is' and without warranty or representation relating to their condition, design or compliance with the NESC. ERMUshall indemnify and hold Connexus Energy harmless against all claims for loss, injury, or damages of any kind, including reasonable attorney fees that may arise from the condition, maintenance, or operation of the transferred facilities including any abandoned cable. Connexus Energy will make a reasonable effort to identify the location of any abandoned cable. " I have discussed this language with our attorneys. This is more of a business decision than a legal issue. There is a business risk on our part for increased costs in accidents of this nature, but if we desire to continue to purchase territory from Connexus, we have no choice but to include this language.