Pages

Saturday, March 12, 2011

Word of the Day: Indemnification

An indemnity is a sum paid by A to B by way of compensation for a particular loss suffered by B. The indemnitor (A) may or may not be responsible for the loss suffered by the indemnitee (B). Forms of indemnity include cash payments, repairs, replacement, and reinstatement.


Sometimes, when sales or contracts are signed, attorneys get very nervous about not getting rid of indemnity.  Example: Toyota sells you a car, and the gas pedal sticks, and you crash and get injured, Toyota is going to have to compensate you. They owe you an indemnity.Toyota was not indemnified.

Lets say that everyone knows about the gas pedal problem, but parties are eager to buy and sell; even with some risk.  So a year later, Toyota sells you another car. but, in order to buy the car, you create a waiver form that eveyone signs---stating that you know about the gas pedal issue and if it sticks,and you are injured, that Toyota will NOT have to compensate you. Toyota is now INDEMNIFIED, or protected from responsibility.

What does this have to do with Dam Removal?

I just completed an interview with one of the companies who proposed buying the dam last year. They seemed concerned and are not very excited about the money-making potential. The city actually sought out and located potential buyers; and invited them to propose and bid. The dam site has not been actively sought out by potential buyers thus far.

This particular firm has a big issue with INDEMNITY and city dams....and have had to walk away from deals that were perfect from a business standpoint. Buyer and seller were happy. But the attorneys were NOT, and could not accept the validity and soundness of the (former) dam owner trying to escape INDEMNITY. They were afraid they would never be properly INDEMNIFIED.

In a recent interview, this same buyer took this aspect of the deal and felt complelled to take a closer look. Why? Since the Pucker street dam has had structural damage done do it. Its old, its broken, its out of operation.  There is a dam inspection report in 2009 that outlines these in detail.

Their conclusion is that even if a buyer of the dam has its attorneys and insurance company create and present numerous WAIVERS of INDEMNIFICATION to the City as part of the deal...they have been sternly warned that:

Even if the dam is sold outright to some other firm willing to risk it; even if the old dam is gutted, removed, replaced----and  there is some kind of failure, breach, damage, or injury. 

If anything happens to that dam the insurance companies/courts/attorneys of the plaintiff will most likely blow right through all those previously signed waivers, the city will never be fully INDEMNIFIED and will most likely will be held financially responsible for any future incident. 
(as demonstrated by other dam claims cases in the last 10 years)

FACT:

DID YOU KNOW; that the primary reason for restoring the 'run of the river' and drawing the dam down in 1999 was not for environmental reasons; but mainly due to a safety concern and reducing the risk of dam collapse?

There are large cracks and open seams running down the center of the main concrete structure near the top. By lowering the water level, the risk of collapse is mitigated.


Conclusion:

Given the trend with dam sales that make it difficult to escape INDEMNITY when an intact, functioning, on-line, structurally sound dam is considered for sale; ---What do you suppose the odds of INDEMNIFICATION will be for the city of Niles with a dam that has a dam with documented damage, structural degradation, a breach, and cracks in its structure?   

Do you think that Falling Waters, LLC, despite the very best intentions of business and insurance will be able to assure, waive liability, and protect a city from INDEMNITY?

.

.








 .



.

Thursday, March 10, 2011

Article: 2/28 Meeting with City Council

This article covers the topics about what was said.

The paper implies that the buyer would be able to supply 650 homes with power.

Please note: this was given only as an example. If the dam is sold, the buyer will NOT be entering into any deals to supply power or sell power to Niles. So this was just a feature of what might happen if a new dam is built by the buyer at the buyers new site.

Secondly, the $7.9 million dollars to re-work this dam is not an investment by some heavy hitting optimistic financiers. This money would come in the form of grants that need to be approved. The grant applicant has a sketchy past and a present business that has no clients, references, or money.


2/28 Meeting: Niles Daily Star Link

.

.

Wednesday, March 2, 2011

TAKE ACTION Here: Call & E-Mail the Council That Votes on This Matter

Make no mistake...In a democracy, your opinion counts!  We encourage you to consider your thoughts on dam removal.

Recall:

  • City-Hired consultants have recommended NOT producing power with the Pucker Street Dam.
  • The risk of flooding will reduce greatly for home-owners, and eliminate the city's liability for the site.
  • If large, wealthy power companies have passed on buying this site, small, unregistered start-ups approaching the city should be reason for extra due-diligence
  • Funds are available for cities that agree to dam removal; as demonstrated  in Berrien County and other popular Michigan tourism destinations.
  • The Michigan DNR & Environment have recommended dam removal numerous time as a way to improve the overall quality and stability of the river system.
  • Sediment deposition is significantly greater on the Dowagiac, but a 24-hr. per day method is available to reduce it and the toxins--naturally and permanently. For free.
When sending correspondence, include your name, address, and phone number; so that your response may be put into record. You could also consider copying all addresses into a single email to get everyone at once.



A Group List of all available city council e-mails to "Copy and Paste" for your e-mail:

"terry eull" <teull@nilesmi.org>; "wskalla" <wskalla@sbcglobal.net>; "bettyjarndt" <bettyjarndt@comcast.net>; "bcwilliams" <bcwilliams@qtm.net>;"dvanden " <dvanden@qtm.net>;

Directions: 
You can "copy and paste"  the above list by:
Highlighting it, 
Right-Clicking whats highlighted and choosing "Copy".
Then, go to your "To" section of email, left-click the cursor in the field, then right-click and choose "Paste"


Individual E-Mails and Phone Numbers:
   
Send an E-Mail   to City Administrator  Terry Eull
He can  reached at  269-683-4700  (then, press 5-2-1 for his asst. Diane)


Send an E-Mail to City Council Member Bruce Williams. He can be reached at 269-683-3941.

Send an E-Mail  to City Council Member Betty Arndt.  She can be reached at 269-684-3630.


Send an E-mail  to City Council Member William ("Tim") Skalla. He can be reached at  269-362-3142.

Send an E-Mail  to City Council Member Dan VandenHeede. He can be reached at 269-684-4642


Also:   Click HERE to Write the Dam Owners using their Website !







Thanks!
 

Tuesday, March 1, 2011

*Breaking News*: Dam Collapse & Failure on the Chagrin River

During our meeting with Niles asserting that the dam should finally be removed, a supporter received a TXT in the council chambers about an unfolding catastrophe with another dam.

....Our thoughts and prayers go to the citizens, businesses, and residents along its banks.

Click HERE to read and see Dam Collapse & Failure on the Chagrin River 







.