Sandpoint reviewing pending claims

SANDPOINT — The city would pay more than $1 million if claims filed against it in the past two years were approved, according to a recently updated claims report.

Claims against the city range from $449 for a fence allegedly damaged when a city worker installed a water meter at a resident’s home, to a $525,000 claim of a civil rights violation against Sandpoint PD in September 2008.

Both claims were submitted to Idaho Counties Risk Management Program, the city’s insurance underwriter, and both are pending.

Like a dozen other claims filed against the city that have not been answered, the claims are being investigated, negotiated, or in the process of eliciting a response.

Recent claims awaiting a response from ICRMP, include four claims filed by downtown businesses in April asking for damages resulting from city sewage overflowing from floor grates into their storage or retail space.

Last March, when the city’s sewage system that runs under downtown streets backed up, raw sewage covered the floors of several businesses along First Avenue and Cedar Street.

Zero Point, a downtown gift shop, was among businesses that lost inventory after several inches of sewage climbed the walls damaging goods in its storage room, owners said.

A half block away at Zany Zebra, the basement also took on a malodorous air, and workers sloshed around the basement in an effort to lift shelving and stored items off the funk-covered floor.

Both businesses filed claims with the city to recoup damages.

Zany Zebra filed a $2,150 claim, and Zero Point filed a claim for $60,000 that included refurbishing part of the store that was infiltrated by six inches of sewer during the March event, owners said.

Eagle Point Properties filed a $4,038 claim and around the corner on Cedar Ave., Rebecca Edwards, owner of Cabin Fever, Ltd. closed the store’s basement to customers after its 1,500 square feet of retail space was flooded with gunk.

“Everything on the floor was trashed,” Edwards said.

That includes the wooden floor she put in, the tile counter on top of the floor, which would have to be removed to replace the floor, as well as retail goods, shelving and the stairs she tore down to keep people out.

She filed a claim, April 1, for $75,000.

After almost four months, she is in negotiations with the city’s insurance adjuster.

Business owners said the city initially took responsibility for the sewage backup that happened in late March, then asked each impacted business to file a claim.

Edwards said she is glad that the city conceded, but reaching an agreement has not been easy.

Despite what seems like a lot money in claims filed against the city of Sandpoint, city attorney Scot Campbell said Sandpoint’s premium has not changed since contracting with the insurance provider several years ago. The latest contract expires Oct. 1.

“The city has a very good claims record,” Campbell said.

That has resulted in low premiums compared to similar entities among the 745 members of ICRMP, which also insures cities and districts.

And it does not shy away from paying up, Campbell said.

The insurer, he said, “Has a pretty decent history of paying claims that are legitimate claims.”

Of 40 claims filed against the city since May 2008, the city has paid close to $7,000 on 11 claims — mixed results for business owners such as Edwards, whose alleged financial losses far exceed that amount.

“Everyone says the basement was their favorite part of the store,” she said.

Getting it shored up again is not something she looks forward to.

“It’s pretty depressing,” she said. “I don’t want to do it again.”

That is why she is determined to be repaid for the flood damage, and is keeping her fingers crossed and her heels dug in.

“It’s a stand off,” she said.