HomeMy WebLinkAboutPR 20585: SETTLEMENT OF WIND DAMAGE CLAIMS J
City of is' W.
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Texas
INTEROFFICE MEMORANDUM
Office of Safety & Risk Management
Date: November 26, 2018
To: Harvey Robinson, Interim City Manager
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From: Trameka A. Williams, Asst. Director of Human ResourcC�
RE: A Resolution Approving Settlement of Wind Damage Claims in the Amount of $56,418.06 made Against
Certain Underwriters at Lloyd's of London (through Agent USI Southwest Inc., El Paso) due to Hurricane
Harvey (August 30, 2017)
BACKGROUND: On August 30, 2017, Hurricane Harvey struck the City of Port Arthur damaging various City
properties as a result of the wind.
STAFF ANALYSIS, CONSIDERATIONS: The City has Windstorm coverage insurance through USI Southwest,
Inc., El Paso. USI has offered the City a settlement of $56,418.06 for wind related damages to various buildings as
delineated in Exhibit "A". This is considered a fair and reasonable settlement. If additional damages are discovered,
USI may issue a supplemental payment.
RECOMMENDATION: I recommend approval of Proposed Resolution No. 20585 which authorizes settlement of wind
claims in the amount of $56,418.06 made against Certain Underwriters of Lloyd's of London (through agent USI
Southwest Inc., El Paso) hereinafter referred to as USI, as a result of wind damages to various City properties as
delineated in Exhibit "A" due to Hurricane Harvey. The City has already received $84,859.35 in advance payments
from USI.
RWL Group, the City's Risk Management Consultant, and City Staff have reviewed the settlement offer and
recommend acceptance. This is considered a fair and reasonable settlement.
Budget Considerations: The funds received will be deposited in the Insurance Proceeds Account #147-0000-
369.85-00, Project#082617.
"Remember we are here to serve the Citizens of Port Arthur"
P.R. No. 20585
11/26/18 TAW
RESOLUTION NO.
A RESOLUTION APPROVING SETTLEMENT OF WIND DAMAGE CLAIMS IN THE
AMOUNT OF $56,418.06 MADE AGAINST CERTAIN UNDERWRITERS AT LLOYD'S OF
LONDON (THROUGH AGENT USI SOUTHWEST INC., EL PASO) DUE TO HURRICANE
HARVEY (AUGUST 30, 2017) TO VARIOUS CITY PROPERTIES
WHEREAS, on August 30, 2017, Hurricane Harvey struck the City of Port Arthur, resulting
in wind damages to various City properties; and,
WHEREAS, as a result of the wind damages, a claim was filed with Certain Underwriters
at Lloyd's of London (through agent USI Southwest, Inc., El Paso, hereinafter referred to as USI;
and,
WHEREAS, USI has offered a payment in the amount of S56,418.06 for wind damages
sustained from Hurricane Harvey as delineated in Exhibit "A"; and,
WHEREAS, this has been determined to be a fair and reasonable settlement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR, TEXAS:
Section 1. That, the facts and opinions in the preamble are true and correct.
Section 2. That, the City Manager is hereby authorized to execute settlement in the amount
of $56,418.06 for the claim against Certain Underwriters at Lloyd's of London (through Agent USI
Southwest Inc., El Paso).
Section 3. That, a copy of this Resolution be spread upon the minutes of the City Council.
READ, ADOPTED, AND APPROVED this day of , AD, 2018, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor , Councilmembers
NOES:
Derrick Ford Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
/
i
Val Tizeno, City Attor ey
APPROVED FOR ADMINISTRATION:
Harvey Robinson, Interim City Manager
EXHIBIT "A"
EXHIBIT "A"
EMENGLE MARTIN
&ASSOCIATES
Adjusters&Claims Administrators
Insured: City of Port Arthur
Policy Number: PSB2017221074
Eff.Dates: May 1,2017 to May 1,2018
Date of Loss: August 30,2017-Hurricane Harvey
Engle Martin#: 1000203503
Loss Location: Numerous Locations,Port Arthur,TX
Preliminary Statement of Loss As of 07/05/18
Coverage:
RCV Depr.% ACV
Y&A Building Estimates-Per 10/27/17 Schedule("net of 3%Named Storm Deductible) $ 220,413.15 $ 51,838.45
E.SubLimits of Liability-30.Personal Effects-$500,000($100,000 Per Person)
Personal Effects of Employees 3%Deductible-Verified with Underwriters(3%of$500.000=$15.000) $ 50,392.24 $ 34,942.24
Page 30 Electrical Division-Street Lights/Controls 3%Named Storm Deductible= $ (15,377.34) $ 28,456.00 $ 28,456.00
Flood Zone"A"Review-Differences in DED/DEPR from NFIP Estimates $ 29,327.93 $ 29,327.93
SOV#21 Fire Station No.5-Foster Dr(6099 Lewis Dr-SOV) $ 10,240.59
SOV#31 Municipal Service Station-101 H.O.Milles Blvd. $ 8,657.64
SOV#361 Water Service Warehouse-111 E.Hwy 73(H.O.Mills Blvd.) $ 4,933.96
SOV#15 Golf Course Pump House 1-3500 75th St. $ 766.27
SOV#16 Golf Course Pump House 2-3500 75th St. $ 766.27
SOV#246 Foster Estates Pump Station-6000 Lewis Dr. $ 201.02
SOV#22 Fire Station No.8-7800 9th Ave. $ 3,762.18
Lift Stations-Per Inspections by Envista Forensics&Cost Workbook SOV Limit 3%N.S.Deductible
SOV#302 S 4th St.&Tremont Sabine Pass(TML ID 367) $ 37,320.17 $ 40,000.00 $ (1,200.00) $ 36,120.17 25% $ 27,090.13
SOV#282 Operations Center 4850 Houston Ave (TML ID 36';$ 6,284.72 $ 15,000.00 $ (450.00) TML Primary
SOV#266 El Vista 5448 Terrace Ave(TML ID 38) $ 57,009.54 $100,000.00 S (3.000.00) TML Primary
SOV#270 Montrose 8530 Wilson Ave (TML ID 78) $ 63,817.09 $450,000.00 $ (13,500.00) TML Primary
SOV#278 74th&Royal Meadows 7498 9th Ave.(TML ID 342) $ 75,816.63 $100,000.00 $ (3,000.00) TML Primary
SOV#282 Del Mar 4110 Lakeshore Dr(TML ID 347 $ 32,784.72 $ 50,000.00 $ (1,500.00) TML Primary
$ 275,032.87
Gross Loss $ 364,709.49 $ 171,654.75
<Less Deductible>- 3%Named Stone(Personal Effects/Street Lights) $ (30,377.34)
Net Loss and Payable $ 364,709.49 $ 141,277.41
Payment#1-Ck.#1028004330 $ (84,859.35)
All terms and conditions of the policy remain in effect. Underwriters at Interest reserve all rights and Balance for Consideration $ 56,418.06
defenses which exist now or which may arise in the future.including but not limited to those based
on the terms of the policy,the conduct of the parties.or the passage of time. No waiver any or
estoppel of sort is intended and none should be inferred.
Engle Martin Assoc Page 1 -7/5/2018 Subject to Underwnters Review Approval
ATTACHMENT "A"
$5,000,000.00 PSB2017221074
AMOUNT OF POLICY AT SWORN STATEMENT POLICY NUMBER
TIME OF LOSS IN
2nd PARTIAL PROOF OF LOSS
05/01/17 TO THE Tampa,FL
ISSUED AGENCY AT
05/01/18 CRC/Swett
EXPIRES AGENT
(ertain l nderneriters at Lloyd's
of London
At time of loss, by the above indicated policy of insurance our insured
The City of Port Arthur
against loss by Wind,Hail&Flood Only to the property described under the above policy,according to the terms and
conditions of the said policy and all forms,endorsements,transfers and assignments attached thereto.
TIME AND A Named Storm loss occurred on the 30th day of August,2017.
ORIGIN The cause and origin of the said loss were: High Winds and Heavy Rain associated with Hurricane Harvey
caused damages to numerous buildings/property owned by City of Port Arthur
OCCUPANCY The building described,or containing the property described,was occupied at the time of loss as follows,
and for no other purpose whatever: Municiple Buildings
TITLE AND At the time of the loss the interest of your insured in the property described therein was: OWNER
INTEREST No other person had any interest therein or encumbrance thereon,except: None
CHANGES Since the said policy was issued there has been no assignment thereof,or change of interest,use,occupancy,
possession,location or exposure of the property described,except: None Known
TOTAL THE TOTAL AMOUNT OF INSURANCE upon the property described by this policy was,at the time of
INSURANCE the loss, $5,000,000.00 as more particularly specified in the apportionment attached under
the policy besides which there was no policy or other contract of insurance,written or oral,valid or invalid.
VALUE THE ACTUAL CASH VALUE OF said property at the time of loss was Not Determined
LOSS THE LOSS AND DAMAGE was(per 07/05/18 SOL) $364,709.49
DEDUCTIBLE Less the APPLICABLE DEDUCTIBLE-3%Named Storm-TIV ($198,952.04)
DEPRECIATION: Less WITHHELD RECOVERABLE DEPRECIATIO1"Personal Effects&Sabine Pass L.S. ($24,480.04)
PRIOR ADVANCE: Less Prior#1 Advance Payment(Ck.#1028004330) ($84,859.35)
AMOUNT THE ADVANCE AMOUNT CLAIMED under the above numbered policy is $56,418.06
OF ADVANCE CLAIMED
The said loss did not originate by any act,design or procurement on the part of your insured,or this affiant;nothing has been done or with the
privity or consent of your insured or this affiant,to violate the conditions of the policy,or render it void;no articles are mentioned herein or in
destroyed or damaged at the time of said loss;no property saved has in any manner been concealed,and no attempt to deceive the said company,
as to the extent of said loss,has in any manner been made. Any other information that may be required will be furnished and considered a part of
this proof.
Pursuant to s.817.234,Florida Statutes,"any person who,with the intent to injure,defraud,or deceive any insurer or insured,prepares,presents,
or causes to be presented a proof of loss or estimate of cost or repair of damaged property in support of a claim under an insurance policy knowing
that the proof of loss or estimate of claim or repairs contains any false,incomplete,or misleading information concerning any fact or thing material
to the claim commits a felony of the third degree,punishable as provided in s.775.082,s.775.083,or s.775.084,Florida Statutes."
The furnishing of this blank or the preparation of proofs by a representative of the above insurance company is not a waiver of any of its rights.
State of X
County of Insured
Subscribed and swum to before me this day of 20
Notary Public