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Home My WebLink AboutPR 15422: TML ADVANCE PAYMENT (FLOOD RELATED DAMAGES)CITY OF PORT ARTHUR HUMAN RESOURCE DEPARTMENT MEMORANDUM TO: Stephen B. Fitzibbons, City Manager FROM: Lisa Colten, Safety 8~ Risk Management Coordinator DATE: August 3, 2009 SUBJECT: A Resolution Authorizing Acceptance of an Advance Payment of $150,000 from Texas Municipal League Intergovemmental Risk Pool (TML), the City's Property/Flood Insurance Carrier COMMENTS RECOMMENDATION: I recommend approval of Proposed Resolution No. 15422 which authorizes the City Manager to do ail things necessary to accept the offer of an advance payment in the amount of $150,000 from Texas Municipal League Intergovemmental Risk Pool (TML), the City's property/flood insurance carrier for estimated flood- related damage related to Hurricane Ike (Attachments "A" and "B"). This amount represents an advance payment only for flood-related damages. Investigation of the loss(es) continues and is not complete. if it is determined after the investigation is complete there was an overpayment, the City must reimburse the overpaid amount. However, if it is later determined that related damages exceed the advance payment amount, then the City will expect to receive additional payment for the difference. RWL Group, the City's Risk Management Consultant, has reviewed the advance payment offer and recommends acceptance. BACKGROUND: On September 13, 2008, Hurricane Ike struck the City of Port Arthur. City buildings and contents suffered flood damage as a result. Texas Municipal League Intergovernmental Risk Pool (TML), the City's property/flood insurance carrier, has offered an advance payment in the amount of $150,000. Inasmuch as the City to date has spent in excess of $150,000 of non-budgeted funds on related hurricane damages, the timely receipt of the advance payment is important to the City's continued efficient and effective operation. BUDGETARYlFISCAL EFFECT: The funds received will tie deposited in the appropriate account designated by the Finance Director. STAFFINGlEMPLOYEE EFFECT: No effect on staffing levels: SUMMARY: t recommend approval of Proposed Resolution No. 15422 which authorizes the City Manager to do all things necessary to accept the offer of an advance payment in the amount of $150,000 from Texas Municipal League Intergovemmental Risk Pool (TML), the City's propertyfflood insurance carrier for estimated flood- related damage related to Hurricane Ike (Attachments "A" and "B"). This amount represents an advance payment only for flood-related damages. Investigation of the loss(es) continues and is not complete. If it is determined after the investigation is complete there was an overpayment, the City must reimburse the overpaid amount. However, if it is later determined that related damages exceed the advance payment amount, then the City will expel to receive additional payment for the difference. RWL Group, the City's Risk Management Consultant, has reviewed the advance payment offer and recommends acceptance. "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OP PORT ARTHUR" P. R. No.15422 8/03/09 LJC RESOLUTION N0. A RESOLUTION AUTHORIZING ACCEPTANCE OF AN ADVANCE PAYMENT OF $150,000 FROM TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML) THE CITY'S PROPERTY/FLOOD INSURANCE CARRIER WHEREAS, on September 13, 2008, Hurricane Ike struck the City of Port Arthur, resulting in flood damages to various City properties; and, WHEREAS, as a result of flood damages, a claim was filed with Texas Municipal League Intergovemmental Risk Pool (TML), the City's property/flood insurance carrier; and, WHEREAS, the City has aggregate policy limits of $1,500,000 for flood coverage in Flood Zone "A" and $10,000,000 for flood coverage in all other Flood Zones; and, WHEREAS, an advance payment of $150,000 has been offered by TML, as denoted in Attachment "A"; and, WHEREAS, the City to date has spent in excess of $150,000 of non-budgeted funds on flood- related Hurricane Ike damages; and, WHEREAS, this advance payment is important to the City's continued efficient and effective operation. 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 herein authorized to do all things necessary to accept an advance payment of $150,000 from Texas Municipal League Intergovernmental Risk Poot (TML) as denoted in Attachment "B". Section 3. That, a copy of this Resolution be spread upon the minutes of the City Council. P. R. No.15422 8/03/09 LJC Page 2 of 2 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 APPROVE, D AS TO S~R/~: Mark Sokolow, City Attorney --~ APPROVED FOR ADMINISTRATION: Stephen Fitzgibbons, City Manager U09-OS-04 10:40 TML IRP 15124912356 » - ,~~ - Ur[H rH)c7~rth~lEt~t~1t. x~5n P:'x~i. August 4, 2009 ATTACHMENT "A" VILy U~ Part 'r,1117U( ,tittn: Rebecca Untlerrull. f-1l13nCC Director aqa ari, St ro:; Arthu:, TX %; G40-C4g5 r'iP: fh+tL•lRP Clairn k: 080015U?D3101-02 Daie of Loss 9/13lD8 Damages from Hurricane Ike Gear Pas l!rnjarhlii 409 983 8282 P 2/2 Please frnd enclosed [wo checks fpr this claurl the check far $150,000.OU is a« advance payment towards the Baal and Persanal Property damages and the check far $128,749.99 is far the Mohile Equipment damaged ai the landfill. We are currently s#ar~ding by for ycu ail to provide us with the repair invoices for the various !ocahcns roi eligible for coverage through NF!I' and other iten}~ insured through the Risk. f=ool so that we may reimburse the City far those costs f ..=_rr also er~ciosing two Proofs nt ! oss that I will need for you to sign, notarize, and return to me in exchange for our payments. Fi«alh~. 1 veilt need for yet! to send the title tc ,ae fUr the '199G GUrman Ovaier pun}p, MGbile Equipment scheduled It=m nu«iL.er'15~ as the Risk Pool has deer~led #his to be a total loss. Please note the remaining oie~~r-s of Mvbife Equipment are Doing to 4e left+mith you all to dispose of as you see 6t. Vlfhise IFr_P,;; ~:=1i+r_ the Units are Totaled and we ane paying the nct::ai Cash Value of the amts, tr+e ACV cf ?ha i:oits did not .exceed the scheduled value. Hs such, the City is entitled to recover any salvage value far those remaining. s=ac your Conv~nienCe. I am encoring a fist of the mobile equipment damaged. ~hOl: id ypu hdi+C of.'y' :itir'.StIGn S, please fP.dl free CC COnfaCl trE eft ektE nSlGn 412. Jlnr~ral V, fIJ~~' ~_ L~ •l% Lisa Kutch Senior Claims Specialist Texas Munici(,al League -- iRP L.Kltr ~.IYix !s n4urirc;FE.:.. L~.[t,ls L;1~,_;C~\~E1uJh9 E`?lTi1l. fZLI?; i'C~_~r !Y^i RatlicrF;(3Lr~r~e,I=ir•:fFlcx,r • .Auslin;Texas7F754 (~I"Ll?9?-23(Y;i • (~D0;531-G65~ 7ccasiln;+~~ .__,__ i..U.ruOX.i4?I ~; •.~, C1Slir,, TEtia:: %L7 [=1-S?'~ .. SWORN STATEMENT IN PROOF OF LOSS $ 10,0oo,ooa.oo AMOUNT OF COVERAGE AT TIME OF LOSS ~ss~ CONTRACT NUMBER ATTACHMENT' "B" 08001 COVERAGE EFFECTIVE DATE 10-01-08 COVERAGE EXPIRATION DATE To the Texas Municipal League Intergovernmental Risk Pool of Austin, Texas. TML CLAIM NUMBER At time of loss, the TML-IRP provided self-insurance coverage through the Interlocal Agreement to: Citv of Part Arthur against loss by hurricane to the property described according to the terms and conditions of said contract and all forms, endorsements, transfers and assignments attached thereto. I. Time and Origin: A hurricane loss occurred about the hour of o'clock m. on [he 13th day of September ?008 .The cause and origin of the said loss were: Hurricane Ike NOTE: This is an advance payment 2. Occupancy. The bwldmg descnbed, or contaimng the property descnbed, was occupied at the time of the loss as follows, and for no other purpose whatever: N/.4 3. Title and Interest: At the time of the loss, the interest of your member in the property described therein was N/A vo other person or persons had any interest therein or encumbrance [hereon, except N?A 4. Changes: Since the said contract was issued, there has been no assignment thereof, or change of interest, use, occupancy, possession, location or exposure of the property described, except: N/A 5. Total Insurance: The total amount of coverage upon the property described by this contract was, at the time of the foss $ 10,000,000.00 as mare particularly specified in the apportionment attached, besides which there was no policy or other contract of insurance, written or oral, valid or invalid. 6. The Actual Cash Value of said property at the time of the loss was $TBD 7. The Whole Loss and Damage was $TBD 8. Less Amount of Deductible $ 0 9. The Amount Claimed under the above numbered con«act is . $ 150,000.00 The said loss did not originate by any act, design or procurement on the part of your member, or this affiant; nothing has been done by or with the privity or consent of your member or this affiant, to violate the conditions of the contract, or render it void; no articles are mentioned herein or in annexed schedule but such as were 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 TML-IRP, as to [he 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. The furnishing of this blank or the preparation of proofs by a representative of the above self-insurance fund is not a waiver of any of its rights. State of County of Authorized Representative of Subscribed and sworn to before me this day of , ~0 \b[ary Public