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Home My WebLink AboutPR 20102: RWL GROUP FOR CONSULTING SERVICES REGARDING PEOPERTY INSURANCE CLAIMS DERRICK FREEMAN,MAYOR HARVEY ROBINSON CAL J.JONES,MAYOR PRO TEM INTERIM CITY MANAGER COUNCIL MEMBERS: City of : SHERRI BELLARD,TMRC RAYMOND SCOTT,JR j ) CITY SECRETARY THOMAS KINLAW,III del HAROLD DOUCET,SR. VALECIA TIZENO WILLIE`BAE"LEWIS JR. ort r t h a r CITY ATTORNEY OSMAN SWATI CHARLOTTE MOSES Texas KAPRINA RICHARDSON FRANK Date: February 5, 2018 To: Harvey Robinson, Interim City Manager From: Rebecca Underhill, Assistant to the City Manager RE: Proposed Resolution No. 20102 Nature of Request: The City is insured through flood,property and windstorm policies. Staff is currently evaluating 116 City owned properties and more than 250 pieces of equipment and vehicles that were damaged due to Hurricane Harvey. The total insurance claims will be several million dollars. The City has contracted with RWL Group for risk management services since 1983. The firm is very familiar with the city's assets and coverages and worked with the City to evaluate claims and negotiate settlements following Hurricanes Rita and Ike. The claims filing and adjusting processes are underway and the City is working to reach insurance settlements and have repairs completed as quickly as possible. The City Manager approved proceeding with the contract on January 31. As the City has a preexisting contract with RWL for other work including the preparation and evaluation of the windstorm policy renewal RFP, the City Attorney advised that City Council ratify this contract for additional services that would bring the entire spend with RWL over$25,000. Staff Analysis/Considerations: None. Recommendation: I recommend City Council approve Proposed Resolution 20102 for insurance consulting relating to Hurricane Harvey property claims at a not to exceed amount of$20,200. Budget Considerations: Funds are available in account#147-2300-901.54-00,project#082617. P. R. No. 20102 2/5/18 RU Page 1 of 2 RESOLUTION NO. A RESOLUTION REQUESTING CITY COUNCIL RATIFY A CONTRACT WITH RWL GROUP FOR CONSULTING SERVICES REGARDING PROPERTY INSURANCE CLAIMS ARISING OUT OF HURRICANE HARVEY, AT A NOT TO EXCEED AMOUNT OF $20,200. FUNDS ARE AVAILABLE IN ACCOUNT NO. 147-2300-901.54-00 WHEREAS, Hurricane Harvey caused catastrophic flooding in the City damaging City owned property at over 116 locations and over 250 pieces of equipment and vehicles; and, WHEREAS, flood, property and windstorm insurance claims could exceed several million dollars; and, WHEREAS, RWL Group has supported City staff in the area of property insurance since the mid 1980's and is familiar with City coverages and assets; and, WHEREAS, RWL Group also supported City insurance recovery efforts in the aftermath of Hurricanes Rita and Ike; and, WHEREAS, it is in the best interest of the City to continue to utilize the professional services of RWL to assist staff in the evaluation of all property claims related to "Harvey"; and, WHEREAS, the Interim City Manager, has approved proceeding with the professional services contract with RWL Group to immediately assist with recovery efforts. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, in order to protect the health and safety of our citizens, the City Council hereby ratifies the contract with RWL Group for insurance consulting in the amount not to exceed $20,200, attached hereto as Exhibit A; and, THAT, a copy of the caption of this resolution be spread upon the minutes of the City Council. P. R. No. 20102 2/5/18 Page 2 of 2 READ, ADOPTED AND APPROVED THIS day of , 2018 at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , Councilmembers: NOES: . Derrick Freeman Mayor ATTEST: APPROVED AS TO FORM: VS ----a Sherri Bellard Valecia Tiz o City Secretary City Attorney APPROVED FOR ADMINISTRATION: APPROVED AS TO AVAILABILITY OFF NDS: Q Ai,I-- P(....-----, Harvey Robinson Andrew Vasquez Interim City Manager Director of Finance Monique Leflore Director of Human Resources EXHIBIT "A" (Contract with RWL Group) R Independent Risk Management and Insurance Consultants 300 N.Coit Road,Suite 810,Richardson,Texas 75080-5456 Phone:972-907-9095 Fax:972-907-9198 E-mail: rwlgroupa»rwlgroup.com Internet:www.rwlgroup.com January 25, 2018 Ms. Rebecca Underhill Assistant to the City Manager City of Port Arthur P. 0. Box 1089 Port Arthur, Texas 77641 Re: Proposal for Hurricane Harvey Claim Dear Rebecca: This will serve as the proposal for additional fees, including travel expenses,for our services in connection with the City's claims arising out of Hurricane Harvey. Please note these services are outside the scope of our current contract. We will provide professional services on a time ($210 an hour) and expense basis at an estimated cost of $20,200. These fees include three (3) meetings at the City with the Administrative Staff, and/or your agents and the adjusters for the insurers. The first meeting will include both Bob Lazarus and me; however, the City will only be charged for the time of one of us, plus expenses for both of us. Following are the purposes of the three visits: 1) First meet with the City's Administrative Staff and claims management team to get a firm status of all claims and damages so we can assess what losses are recoverable and what needs to be done to prove the loss. 2) A second visit involving the insurance adjusters, Administrative Staff, and RWL Group to review all claims and coverage implications. 3) A final meeting with the adjusters to negotiate settlement of the various claims and address any potential disputes dealing with amount of loss or insurance coverage. With reference to the foregoing, RWL Group will be mindful of expediting submission of partial proofs of loss and negotiations in order to obtain as much advance funding as can be realized for amounts that are not disputed. Obviously, it is very important to be sensitive to cash flow issues, and we will emphasize the necessity of obtaining advancements from the insurers as soon as we are involved with assisting the City. All of the proposed services will include RWL Group's involvement taking the lead in assisting with the preparation, presentation, and negotiation of your claim(s) to finality. Effectively, RWL Group will act exclusively as the advocate for the City. January 25, 2018 Ms. Rebecca Underhill Assistant to the City Manager Page 2 The estimated cost is the maximum amount for this project except: (1) we are asked to extend the visit days in excess of three; (2) RWL Group is asked to participate in any formal administrative or legal resolution proceedings; or (3) our time and expense exceeds the estimated cost by more than 10%. In the event our time and expenses are less than the estimated cost, the City will be charged only for the time and expense incurred. Invoices will be sent at the end of each month for fees and expenses accrued during that month and are payable within thirty(30)days after receipt. We are certainly looking forward to working with the Administrative Staff in facilitating a settlement that is consistent with what the City is entitled to in accordance with the terms and provisions of your policies. Please sign and date in the designated space below and return a copy of this proposal to our office. Thank you. Very truly yours, Carolyn A. Miller, CPCU Senior Consultant (Signature) (Date)