HomeMy WebLinkAboutPR 15145: SABINE PASS FIRE STATION #4 - FLOOD DAMAGE CLAIMCITY OF PORT ARTHUR
SAFETY & RISK MANAGEMENT
MEMORANDUM
TO: Stephen B. Fitzgibbons, City Manager
FROM: Lisa Cotten, Safety 8 Risk Management Coordinator
DATE: March 11, 2009
SUBJECT: A Resolution Approving Settlement of a Flood Damage Claim in the Amount of $338,335.95
(Sabine Pass Fire Station #d)
COMMENTS
RECOMMENDATION:
I recommend approval of Proposed Resolution No. 15145 which authorizes settlement of the flood damage claim
in the amount of $338,335.95 made against Fidelity National Insurance Company (Fidelity) for damage to the
Sabine Pass Fire Station #4. Fidelity has offered a settlement in the amount of $338,335.95 (Attachment "A").
This amount represents the estimated cost for flood-related repairs; however, the City has a deductible of
$100,000.00 (includes building deductible of $50,000.00 and contents deductible of $50,000.00), making the final
settlement $238,335.95. If additional costs are incurred, the City has up to one year from the date of the
hurricane to request supplemental payment. Therefore, this is considered a fair and reasonable settlement.
RWL Group, the City's Risk Management Consultant, has reviewed the settlement offer and recommends
acceptance.
This settlement is for the Fidelity flood claim only. The supplemental flood claim through Texas Municipal League
(TML) and the windstorm claim through McGriff, Seibels & Williams of Texas are pending.
BACKGROUND:
On September 13, 2008, Hurricane Ike struck the City of Port Arthur. The Sabine Pass Fire Station #4 suffered
flood damage as a result. Fidelity has offered a settlement of Actual Cash Value (ACV) in the amount of
$338,335.95.
BUDGETARYlFISCAL EFFECT:
The funds received will be deposited in the appropriate account designated by the Finance Director.
STAFFINGlEMPLOYEE EFFECT:
No effect on staffing levels:
SUMMARY:
I recommend approval of Proposed Resolution No. 15145 which authorizes settlement of the flood damage claim
in the amount of $338,335.95 made against Fidelity National Insurance Company (Fidelity) for damage to the
Sabine Pass Fire Station #4. Fidelity has offered a settlement in the amount of $338,335.95 (Attachment "A").
This amount represents the estimated cost for flood-related repairs; however, the City has a deductible of
$100,000.00 (includes building deductible of $50,000.00 and contents deductible of $50,000.00), making the final
settlement $238,335.95. If additional costs are incurred, the City has up to one year from the date of the
hurricane to request supplemental payment. Therefore, this is considered a fair and reasonable settlement.
RWL Group, the City's Risk Management Consultant, has reviewed the settlement offer and recommends
acceptance.
This settlement is for the Fidelity flood claim only. The supplemental flood claim through Texas Municipal League
(TML) and the windstorm claim through McGriff, Seibels 8 Williams of Texas are pending.
Attachment "A" -Estimate Recap
"REMEMBER, WE ARE HERE TO SERVE THE CRIZENS OF PORT ARTHUR"
P. R. No.15145
3/11/09 LJC
RESOLUTION N0.
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO DO ALL THINGS NECESSARY TO EXECUTE THE SETTLEMENT OF A CLAIM
IN THE AMOUNT OF $338,335.95 MADE AGAINST FIDELITY NATIONAL INSURANCE COMPANY
AS A RESULT OF THE FLOOD DAMAGE TO THE SABINE PASS FIRE STATION #4
WHEREAS, on September 13, 2008, Hurricane Ike struck the City of Port Arthur, resulting in flood
damage to the Sabine Pass Fire Station #4; and,
WHEREAS, as a result of the damage, a claim was filed with Fidelity National Insurance Company;
and,
WHEREAS, Fidelity National Insurance Company has offered to settle the claim for $338,335.95;
however, the City has a building deductible of $50,000.00 and a contents deductible of $50,000.00, making
the final settlement $238,335.95, which 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 do all things necessary to execute
settlement in the amount of $338,335.95 for the claim against Fidelity National Insurance Company. This
amount is based on an estimated cost for flood-related repairs; therefore, if additional flood-related costs
are incurred, Fidelity National Insurance Company may issue a supplemental payment.
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, 2009, at a Meeting of
the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor ,
Councilmembers
NOES:
Debris "Bobbie" Prince, Mayor
ATTEST:
Terri Hanks, City Secretary
APPROV TO F0
Mark Sokolow, City Attorney
APPROVED FOR ADMINISTRATION:
Stephen B. Fitzgibbons, City Manager
,a
FIDELITY
NATIONAL PROPIXtt & CANFLLtt INSUflANCF CQNPgNY
February 27, 2009
CITY OF PORT ARTHUR
PO BOX 1089
PORT ARTHUR TX 77641-1089
ATTACHMENT "A"
RE: Insured: CITY OF PORT ARTHUR
Claim #: 08-0012190
Date/Loss: 09/13/2008
Policy #: 42 2510112351 04
Dear CITY OF PORT ARTHUR
CFL 99.UUL 11V~
0815645
2/27/09
2000 00000 FLD RGLR
42 2510112351 04
It has been a pleasure to assist you with your recent flood loss. For
your convenience, we are providing the payment breakdown:
BUILDING CONTENTS
Gross Loss (RCV) 266547.01 118594.38
Less Depreciation 32577.14 14228.30
covered Damge (ACV) 233969.87 104366.08
Less Deductible 50000 50000
CLAIM PAYABLE (ACV) 183969.87 54366.08
TOTAL SETTLEMENT: 183969.87 54366.08
The check(s) will be mailed separately from our office within the
next few working days.
If I can be of further assistance, please contact me at the toll-free
number listed below, ext. 6045.
Very truly yours,
Catastrophe Claims Office
cc: (713)759-2010
VICTOR 0 SCHINNERER & CO INC
500 DALLAS ST STE 2830
HOUSTON TX 77002
POLICY INFORMATIONS P.O.BOX 33003/ST. PETERSBURG, FL 33733-8003 1-800-820-3242
CLAIMS: P.0.80X 33064/ST. PETERSBURG, FL 33733-8064 1-800.725-9472
CLAIMS FAX: 7-877-2704329
060558442251011235109058 OOOOD
Insured