Tolland agrees to settlement with insurer over crumbling concrete

Journal Inquirer (Manchester, CT)

Apr. 16—TOLLAND — The Town Council on Tuesday unanimously approved a settlement offer with Connecticut Interlocal Risk Management Agency, CIRMA, the town's insurer to resolve pending claims of crumbling foundations.

Under the settlement, CIRMA pays the town $600,000 in exchange for release from all present and future damage claims to the town buildings, and that all parties bear all of their own costs and expenses relating to the claims resolved by the agreement.

CONCRETE SETTLEMENT

WHAT: Claims of crumbling foundations in three town buildings

OFFER: The insurer will pay the town $600,000

"This is a matter that's been negotiated for two years — literally," Town Attorney Richard Conti said Tuesday. "It has been a difficult negotiation."

In the spring of 2019, the town filed claims with CIRMA for damage to three properties — Birch Grove Primary School, a fire station and the senior center — over the presence of pyrrhotite in the concrete foundation that caused deterioration and damage. The claims were all denied, according to meeting documents.

Conti then began negotiations with CIRMA in an attempt to settle the claims short of litigation. With a possible expiration of the applicable statute of limitations, the town and CIRMA have been operating under a "tolling agreement" that has been extended several times, the documents states.

During Tuesday's meeting, Councilman Lou Luba asked Conti if he believed the settlement is the best alternative for the town, as opposed to going to going to court, which could cost substantial fees with no guarantee of any reward.

Conti responded in the affirmative.

"After a thorough review of the insurance policies in issue and the state of the law, including but not limited to recent appellate law in the state of Connecticut, it was determined that the current offer is in the best interest of the town," Conti wrote in a letter to Town Manager Michael Rosen.

The resolution approved by the council authorizes Rosen to complete the negotiations and sign the settlement agreement. Funds will be deposited into the capital non-recurring expenditure fund, according to town documents.

In other business Tuesday, the council also unanimously approved appropriating $146,695 to the recreation center and storage capital improvement project. Funding for the project will also come from a Small Town Economic Assistance Program, or STEAP, grant of $128,200; $10,000 of recreation program funds; and transferring $8,490 from the town's capital improvement program testing account.

The proposal will be sent to a virtual public hearing on April 27 at 7 p.m.

The council also unanimously approved transferring $212,630 from the Board of Education's audited unexpended balance as of June 30, 2020, which would be placed in the town's Education Reserve Fund account.

For updates on the towns of Coventry and Tolland, follow Michelle France on Twitter: @MFranceReport, Facebook: Michelle France, and Instagram: @MFranceReport.

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