SORRENTO — The Town Council agreed to ask its attorney to look into three rejected insurance claims the town filed on behalf of private homes damaged during a recent municipal sewage backup.
Mayor Wilson Longanecker Jr. read one of the insurance company’s claim rejection letters saying the company had no “actual or constructive notice of any defective or hazardous conditions involving the sewage backup.”
Longanecker told the council during its meeting Tuesday he was irritated with the insurance company’s response because he had called the company once while standing inside a flooded home.
The council approved Councilman Randy Anny’s resolution asking Town Attorney Karl L. Scott to send the companies any other necessary documentation about the flooding incidents so the matter could be resolved.
“At the end of the day, we’re responsible,” Anny said.
Other business taken up by the council included:
ORANGE GROVE: Scott said he is still researching legal problems the town is having with Renaissance Orange Grove LLC, the developers that built Orange Grove subdivision in Sorrento.
The project was proposed in 2006 as a 349-home, 134-acre subdivision off La. 22. The developers were to have paid the town $100,000 on June 2, part of a $150,000 annexation agreement between the developer and town, officials said. The town is still owed $100,000, however.
Calling the issues surrounding the subdivision a “tangled web,” Scott told the council he had learned that Orange Grove was not filing for bankruptcy or financial protection, but does have creditors lining up.
Sorrento town government would come before any creditor seeking payment, Scott said.
Longanecker asked Scott if the town could charge interest on the late payment and Scott said that depended on agreements between the town and Orange Grove. Longanecker suggested Scott work with the Ascension Parish School Board because the board is also owed money by Orange Grove for installing water lines at the town’s new elementary school.
Orange Grove was supposed to have installed the water lines, officials said. Homes are being built on a 35-lot portion of the project by an unrelated builder who bought land from the developer. Another section of the project was sold for taxes earlier this year.