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Home My WebLink AboutPR 22509: SETTLEMENT OF A WIND DAMAGE CLAIM, LLOYD'S OF LONDON INSURANCE COMPANY, HURRICANE DELTA OCTOOBER 9, 2020 Energy ,_ ,,,,of cu. „_.„.... im .., o rt rth ur�-'� Texas INTEROFFICE MEMORANDUM Office of Safety & Risk Management Date: May 11, 2022 To: Ron Burton, City Manager From: Trameka A. Williams, Director of Human Resou s RE: A Resolution Approving Settlement of Wind Damage Claims in the Amount of$104,942.08 made Against Certain Underwriters at Lloyd's of London Insurance Company (through Agent USI Southwest Inc., El Paso) due to Hurricane Delta (October 9, 2020) BACKGROUND: On October 9, 2020, Hurricane Delta 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$104,942.08 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. 22509 which authorizes settlement of wind claims in the amount of $104,942.08 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 Delta. 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 #157-00- 000-4744-00-00-000. "Remember we are here to serve the Citizens of Port Arthur" P.R. No. 22509 08/24/22 TAW RESOLUTION NO. A RESOLUTION APPROVING SETTLEMENT OF WIND DAMAGE CLAIMS IN THE AMOUNT OF $104,942.08 MADE AGAINST CERTAIN UNDERWRITERS AT LLOYD'S OF LONDON INSURANCE COMPANY (THROUGH AGENT USI SOUTHWEST INC., EL PASO) DUE TO HURRICANE DELTA (OCTOBER 9, 2020) TO VARIOUS CITY PROPERTIES WHEREAS, on October 9, 2020, Hurricane Delta 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 $104,942.08 for wind damages sustained from Hurricane Delta 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 $104,942.08 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: Val Tize o, City Attorney APPROVED FOR ADMINISTRATION: Ronald Burton, City Manager EXHIBIT "A" S2,5INI,IIIIIL011 EAF643739-19 AMOUNT OF POLICY AT SWORN STATEMENT POLICY NUMBER TIME OF LOSS IN B 1806 20P2089AB PROOF OF LOSS CLAIM NUMBER 05/01/20 TO THE ISSUED (PARTIAL) AGENCY AT 05/01/21 AGENT E?iPIRES Underw ritcr.at Lloyds London of London At time of loss. by the above indicated policy of insurance our insured City of Port Arthur against loss by All Risk 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 Hurricane loss occurred on the 9th day of October 21)2(1 ORIGIN The cause and origin of the said loss were. Hurricane Delta made landfall near Creole,IA OCCUPANCY The building described,or containing the property described.was occupied at the time of loss as follows. and for no other purpose whatever. Various 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 {U�It IVIVI 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 Nonc K noe n TOTAL THE TOTAL AMOUNT OF INSURANCE upon the property described by this policy was,at the time of INSURANCE the loss. S2 500,000.00 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 WHOLE LOSS AND DAMAGE was S 614,234.84 DEDUCTIBLE Less the APPLICABLE DEDUCTIBLE 3% Storm S (281,522.86) DEPRECIATION: Less WITHHELD RECOVERABLE DEPRECIATION S (122,827.83) AMOUNT THE AMOUNT CLAIMED under the above numbered policy is S 209,884.15 CLAIMED London Share 50% S 104,942.08 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 Fraud Warning.It is a crime to provide false or misleading information to an insurer for the purpose of defrauding the insurer or any other person. Penalties include imprisonment and/or fines.In addition.an insurer may deny insurance benefits if false information materially related to a claim was provided by the applicant." 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 N County of Id r Insured Sub: shed and swum to before me this 1 day of �lW v 20/1 ulur.. Notary Public 4111 TRAMEKA WILLIAMS H01ARY PUBLIC,STATE OF I£x4S ,',�i'••....��c COM.EXPIRES O1/22/2025 '.f or ` NOTARY ID 01218224 1000312803 "� EMA Claus Number