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Home My WebLink AboutPR 22554: SETTLEMENT OF WIND DAMAGE CLAIMS Enrrgo City of Cin ort rthu�— Texas INTEROFFICE MEMORANDUM Office of Safety & Risk Management Date: May 11, 2022 To: Ron Burton, City Manager From: Trameka A. Williams, Director of Human Resources RE: A Resolution Approving Settlement of Wind Damage Claims in the Amount of$217,050.21 made Against Certain Underwriters at Lloyd's of London Insurance Company (through Agent USI Southwest Inc., El Paso) due to Hurricane Laura (August 27, 2020) BACKGROUND: On August 27, 2020, Hurricane Laura struck the City of Port Arthur damaging various City properties because of the wind. STAFF ANALYSIS, CONSIDERATIONS: The City has Windstorm coverage insurance through USI Southwest, Inc., El Paso. Lloyd's of London Insurance Company has offered the City a settlement of$217,050.21 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, Lloyd's of London Insurance Company may issue a supplemental payment. RECOMMENDATION: I recommend approval of Proposed Resolution No. 22101 which authorizes settlement of wind claims in the amount of $217,050.21 made against Certain Underwriters of Lloyd's of London Insurance Company (through agent USI Southwest Inc., El Paso) hereinafter referred to as USI, because of wind damages to various City properties as delineated in Exhibit "A" due to Hurricane Laura. The City of Port Arthur anticipates receiving additional funds from insurance proceeds. 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 #156-00- 000-4744-00-00-000. "Remember we are here to serve the Citizens of Port Arthur" P.R. No. 22554 05/11/22 TAVV RESOLUTION NO. A RESOLUTION APPROVING SETTLEMENT OF WIND DAMAGE CLAIMS IN THE AMOUNT OF $217,050.21 MADE AGAINST CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON INSURANCE COMPANY (THROUGH AGENT USI SOUTHWEST INC., EL PASO) DUE TO HURRICANE LAURA (AUGUST 27, 2020) TO VARIOUS CITY PROPERTIES WHEREAS, on August 27, 2020, Hurricane Laura 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 Insurance Company (through agent USI Southwest, Inc., El Paso, hereinafter referred to as USI; and, WHEREAS, USI has offered a payment in the amount of $217,050.21 for wind damages sustained from Hurricane Laura 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 $217,050.21 for the claim against Certain Underwriters at Lloyd's of London Insurance Company (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, 2022, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , Councilmembers NOES: Thurman "Bill" Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: k_e.A4if c) Val Tizeno0City Attorney APPROVED FOR ADMINISTRATION: Ronald Burton, City Manager EXHIBIT "A" Clan r7t C lann No Date ofClaim lb Date City of Port Arthur 1000307510 20200827 .8/27/2020 209474 2I 7.050 London 50"b, Share of ACV payment REMITTANCE STATEMENT - PLEASE DETACH BEFORE DEPOSITING THIS DOCUMENT IS ALTERATION PROTECTED AND REFLECTS FLUORESCENT FIBERS UNDER UV LIGHT Engle Martin & Associates LLC weans fargo 58 EMA General Trust Turn Around Atlanta, GA 5535 Glenridge Connector I Suite 900 64-22 Atlanta, GA 30342 610 (678) 553-4400 Date Check No '022 0000958608 VOID AFTER 90 DAYS Amount $ ***********217.050.2I No hundred seventeen thousand fifty and 21 I1)0 t;.S. Dolly Dual Signature required O or Strut) City of Port Arthur. - \l I'I I(l(IZI;D SIGN.\:! t, Al rHORI7I`::)SIGNA1 oan EMENGLE MARTIN &ASSOCIATES Insured: City of Port Arthur Loss Location: Multiple Locations,TX Date of Loss:August 27,2020 Type of Loss: CAT 2050 Hurricane Laura Our Reference Number: 1000307510 Preliminary Proposed Statement of Loss Value Loss Claim Loss As Determined City of Port Arthur Landfill Physical Damages Repairs Per Y&A Estimates $ 44,055.90 Less:Deductible $ (1,497.75) Totals Net RCV Repairs $ 42,558.15 Less Depreciation NIL Totals-RCV $ 42,558.15 Operations Center Physical Damages Repairs Per V&A Estimates $ 372,521.73 Less:Deductible $ (44,461.61) Totals Net RCV Repairs $ 328,060.12 Less Depreciation $ (74,476.35) Totals-ACV $ 253,583.77 Pump Station(4732 Hwy 73/ Physical Damages Repairs Per Y&A Estimates $ 1,674.91 Less:Deductible $ (1,554.62) Totals Net RCV Repairs $ 120.29 Less Depreciation $ (120.29) Totals-ACV NIL Wastewater Treatment Plant Physical Damages Repairs Per Y&A Estimates $ 68,330.64 Less:Deductible $ (3,075.48) Totals Net RCV Repairs $ 65,255.16 Less Depreciation $ (13,641.08) Totals-ACV $ 51,614.08 Development Services Bld Physical Damages Repairs Per Y&A Estimates $ 17,920.50 Less:Deductible $ (23,159.75) Totals Net RCV Repairs NIL Civic Center Physical Damages Repairs Per Y&A Estimates $ 35,190.81 Less:Deductible $ (164,981.68) Totals Net RCV Repairs NIL Sabine Pass Community Center Physical Damages Repairs Per Y&A Estimates $ 9,159.28 Less:Deductible $ (23,712.01) Totals Net RCV Repairs NIL Rosehill Manor Physical Damages Repairs Per V&A Estimates $ 40,590.67 Less:Deductible $ (30,000.00) Totals Net RCV Repairs $ 10,590.67 Less Depreciation $ (7,455.18) Totals-ACV $ 3,135.49 4/7/2022 DRAFT-For Discussion Purposes Only-Subject to Underwriters Review and Approval 1 of 4 EMENGLE MARTIN &ASSOCIATES Insured: City of Port Arthur Loss Location: Multiple Locations,TX Date of Loss:August 27,2020 Type of Loss: CAT 2050 Hurricane Laura Our Reference Number: 1000307510 Preliminary Proposed Statement of Loss Value Loss Claim Pompeiian Villa Physical Damages Repairs Per Y&A Estimates $ 97,024.53 Less:Deductible $ (14,042.69) Totals Net RCV Repairs $ 82,981.84 Less Depreciation $ (19,387.41) Totals-ACV $ 63,594.43 Police Carport Physical Damages Repairs Per Y&A Estimates $ 18,342.93 Less:Deductible $ (211,140.96) Totals Net RCV Repairs NIL Health Physical Damages Repairs Per Y&A Estimates $ 39,009.88 Less:Deductible $ (153,736.53) Totals Net RCV Repairs NIL Pleasure lsaln Marina Physical Damages Repairs Per V&A Estimates $ 350.00 Less:Deductible $ (4,886.90) Totals Net RCV Repairs NIL Pleasure Island Commission Office Physical Damages Repairs Per V&A Estimates $ 11,266.59 Less:Deductible $ (9,081.94) Totals Net RCV Repairs $ 2,184.65 Less Depreciation $ (2,184.65) Totals-ACV NIL Mosley pool Physical Damages Repairs Per Y&A Estimates $ 12,017.77 Less:Deductible $ (11,888.95) Totals Net RCV Repairs $ 128.82 Less Depreciation $ (128.82) Totals-ACV NIL Lakeview Pool Physical Damages Repairs Per Y&A Estimates $ 5,737.17 Less:Deductible $ (9,000.00) Totals Net RCV Repairs NIL Lakeside Park Physical Damages Repairs Per Y&A Estimates $ 7,250.87 Less:Deductible $ (1,860.65) Totals Net RCV Repairs $ 5,390.22 Less Depreciation $ (1,450.19) Totals-ACV $ 3,940.03 Adams Park Physical Damages Repairs Per Y&A Estimates $ 16,590.93 Less:Deductible $ (1,382.24) Totals Net RCV Repairs $ 15,208.69 Less Depreciation $ (3,167.30) Totals-ACV $ 12,041.39 4/7/2022 DRAFT-For Discussion Purposes Only-Subject to Underwriters Review and Approval 2 of 4 EMENGLE MARTIN &ASSOCIATES Insured: City of Port Arthur Loss Location: Multiple Locations,TX Date of Loss:August 27,2020 Type of Loss: CAT 2050 Hurricane Laura Our Reference Number: 1000307510 Preliminary Proposed Statement of Loss Value Loss Claim PA Downtown Pavillion Physical Damages Repairs Per Y&A Estimates $ 1,899.42 Less:Deductible $ (42,811.22) Totals Net RCV Repairs NIL Sal Grado Park Physical Damages Repairs Per Y&A Estimates $ 19,082.36 Less:Deductible $ (2,234.57) Totals Net RCV Repairs $ 16,847.79 Less Depreciation $ (3,816.45) Totals-ACV $ 13,031.34 El Vista Park Physical Damages Repairs Per Y&A Estimates $ 7,571.26 Less:Deductible $ (4,500.00) Totals Net RCV Repairs $ 3,071.26 Less Depreciation $ (1,514.25) Totals-ACV $ 1,557.01 County Park Physical Damages Repairs Per Y&A Estimates $ 10,116.21 Less:Deductible $ (2,234.57) Totals Net RCV Repairs $ 7,881.64 Less Depreciation $ (2,023.22) Totals-ACV $ 5,858.42 London Bridge Park Physical Damages Repairs Per Y&A Estimates $ 5,415.23 Less:Deductible $ (2,438.44) Totals Net RCV Repairs $ 2,976.79 Less Depreciation $ (1,083.05) Totals-ACV $ 1,893.74 Huahen Park Physical Damages Repairs Per Y&A Estimates $ 978.93 Less:Deductible $ (9.58) Totals Net RCV Repairs $ 969.35 Less Depreciation $ (195.79) Totals-ACV $ 773.56 Roy O'Neal Park Physical Damages Repairs Per Y&A Estimates $ 47,890.00 Less:Deductible $ (1,382.24) Totals Net RCV Repairs $ 46,507.76 Less Depreciation $ (9,578.00) Totals-ACV $ 36,929.76 Senior Filed Physical Damages Repairs Per Y&A Estimates $ 27,679.39 Less:Deductible $ (2,320.76) Totals Net RCV Repairs $ 25,358.63 Less Depreciation $ (5,535.88) Totals-ACV $ 19,822.75 4/7/2022 DRAFT-For Discussion Purposes Only-Subject to Underwriters Review and Approval 3 of 4 EMENGLE MARTIN &ASSOCIATES Insured: City of Port Arthur Loss Location: Multiple Locations,TX Date of Loss:August 27,2020 Type of Loss: CAT 2050 Hurricane Laura Our Reference Number: 1000307510 Preliminary Proposed Statement of Loss Value Loss Claim Lyons Park Physical Damages Repairs Per Y&A Estimates $ 27,181.76 Less:Deductible $ (6,291.11) Totals Net RCV Repairs $ 20,890.65 Less Depreciation $ (5,436.39) Totals-ACV $ 15,454.26 JB Matthews Physical Damages Repairs Per Y&A Estimates $ 9,937.24 Less:Deductible $ (11,147.32) Totals Net RCV Repairs NIL Fire Station#4 Physical Damages Repairs Per Y&A Estimates $ 847.02 Less:Deductible $ (51,075.94) Totals Net RCV Repairs NIL Fire Station#6 Physical Damages Repairs Per V&A Estimates $ 42,689.80 Less:Deductible $ (3,000.00) Totals Net RCV Repairs $ 39,689.80 Less Depreciation NIL Totals-RCV $ 39,689.80 Summary RCV $ 998,323.73 Less Recoverable Depreciation $ 151,194.30 Net ACV Loss $ 565,477.98 Less Payment I $ (434,100.41) $ (434,100.41) Net ACV Claim(Payment Request) $ 131,377.57 $ 131,377.57 Undisputed Net ACV Payment Request $ 131,377.57 Market Allocation Payment 1 Payment 2 Landmark American Insurance(RSUI)50% $ 217,050.21 Onyx Insurance Broker 50%: Tokio Marine/Houston Casualty Company 15% $ 65,115.06 Apollo Underwriting 12.50% $ 54,262.55 AXA/XL 12.50% $ 54,262.55 Hiscox(Lloyds)10% $ 43,410.04 Total-100% $ 434,100.41 4/7/2022 DRAFT-For Discussion Purposes Only-Subject to Underwriters Review and Approval 4 of 4