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Home My WebLink AboutPR 23057: APPROVING SETTLEMENT OF WIND DAMAGE CLAIMS $92,360.23 City of ort rthut Tents INTEROFFICE MEMORANDUM Office of Safety & Risk Management Date: March 14, 2023 To: Ron Burton, City Manager From: Trameka A. Williams, Director of Human Re s RE: A Resolution Approving Settlement of Wind Damage Claims in the Amount of $92,360.23 made Against Certain Underwriters at Landmark American 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. Landmark American Insurance Company has offered the City a settlement of$92,360.23 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, Landmark American Insurance Company may issue a supplemental payment. RECOMMENDATION: I recommend approval of Proposed Resolution No. 23057 which authorizes settlement of wind claims in the amount of $92,360.23 made against Certain Underwriters of Landmark American 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. 23057 03/14/23 TAW RESOLUTION NO. A RESOLUTION APPROVING SETTLEMENT OF WIND DAMAGE CLAIMS IN THE AMOUNT OF $92,360.23 MADE AGAINST CERTAIN UNDERWRITERS AT LANDMARK AMERICAN 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 Landmark American 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$92,360.23 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 $92,360.23 for the claim against Certain Underwriters at Landmark American 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, 2023, 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: U(/:ke, C Val Tizeno, ity Attorney APPROVED FOR ADMINISTRATION: Ronald Burton, City Manager 4 EXHIBIT "A" $2,500,000.00 LHD907961 AMOUNT OF POLICY AT SWORN STATEMENT POLICY NUMBER TIME OF LOSS IN 7030151484 PROOF OF LOSS CLAIM NUMBER 05/01/20 TO THE ISSUED FINAL PAYMENT AGENCY AT 05/01/21 EXPIRES AGENT Landmark American Insurance of Atlanta,Georgia 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 2020 ORIGIN The cause and origin of the said loss were: Hurricane Delta made landfall near Creole,LA 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: 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, $2,500,000.00 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 LOSS AND DAMAGE was RCV $ 758,387.74 DEDUCTIBLE Less Deductible $ (320,054.15) DEPRECIATION Less Recoverable Depreciation $ (43,728.98) LOSS THE NET ACV LOSS was $ 394,604.61 PAYMENT Less PRIOR PAYMENT I $ (209,884.15) AMOUNT CLAIMED THE AMOUNT CLAIMED under the above numbered policy is $ 184,720.46 Landmark Share 50%= $ 92,360.23 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 maybe 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 X County of Insured Subscribed and sworn to before me this day of 20 Notary Public 1000312803 EMA Claim Number j Engle Martin Insured: City of Port Arthur Loss Location: Multiple Locations,TX Date of Loss:October 9,2020 Type of Loss: CAT 2050 Hurricane Delta Our Reference Number: 1000312803 Final Statement of Loss Value Loss Claim Loss As Determined City of Port Arthur Savine Pass Community Center Physical Damages Repairs Per Y&A Estimates $ 7,191.83 Less:Deductible $ (7,191.83) Totals Net RCV Repairs NIL Economic Development Corp Physical Damages Repairs Per Y&A Estimates $ 13,618.35 Less:Deductible $ (13,618.35) Totals Net RCV Repairs NIL West Side Development Center Physical Damages Repairs Per Y&A Estimates $ 8,615.15 Less:Deductible $ (8,615.15) Totals Net RCV Repairs NIL Police Carport Physical Damages Repairs Per Y&A Estimates $ 105,988.49 Less:Deductible $ (105,988.49) Totals Net RCV Repairs NIL Rose Hill Manor Physical Damages Repairs Per Y&A Estimates $ 116,262.72 Less:Deductible $ (30,000.00) Totals Net RCV Repairs $ 86,262.72 Less Depreciation $ (410.19) Totals-ACV $ 85,852.53 Babe Zaharias Goulf Course Physical Damages Repairs Per Y&A Estimates $ 30,780.73 Less:Deductible $ (4,328.69) Totals Net RCV Repairs $ 26,452.04 Less Depreciation $ (6,596.23) Totals-ACV $ 19,855.81 Equipment Services Bid Physical Damages Repairs Per Y&A Estimates $ 57,875.10 Less:Deductible $ (57,849.89) Totals Net RCV Repairs $ 25.21 Less Depreciation $ (25.21) Totals-ACV NIL Bryan Park Physical Damages Repairs Per Y&A Estimates $ 1,273.56 Less:Deductible $ (1,273.56) Totals Net RCV Repairs NIL 3/15/2023 DRAFT-For Discussion Purposes Only-Subject to Underwriters Review and Approval 1 of 4 j Engle Martin Insured: City of Port Arthur Loss Location: Multiple Locations,TX Date of Loss:October 9,2020 Type of Loss: CAT 2050 Hurricane Delta Our Reference Number: 1000312803 Final Statement of Loss Value J Loss Claim Cecil Reynold Park Physical Damages Repairs Per Y&A Estimates $ 85,474.32 Less:Deductible $ (4,805.50) Totals Net RCV Repairs $ 80,668.82 Less Depreciation $ (15,362.14) Totals-ACV $ 65,306.68 Civic Park Physical Damages Repairs Per Y&A Estimates $ 3,405.30 Less:Deductible $ (134.07) Totals Net RCV Repairs $ 3,271.23 Less Depreciation $ (681.05) Totals-ACV $ 2,590.18 Montgomery Park Physical Damages Repairs Per Y&A Estimates $ 1,050.24 Less:Deductible $ (1,050.24) Totals Net RCV Repairs NIL PA Downtown Pavilion Physical Damages Repairs Per Y&A Estimates $ 7,525.04 Less:Deductible $ (7,525.04) Totals Net RCV Repairs NIL Peoples Park Physical Damages Repairs Per Y&A Estimates $ 660.82 Less:Deductible $ (486.00) Totals Net RCV Repairs $ 174.82 Less Depreciation $ (115.60) Totals-ACV $ 59.22 Pioneer Park Physical Damages Repairs Per Y&A Estimates $ 32,329.93 Less:Deductible $ (4,469.15) Totals Net RCV Repairs $ 27,860.78 Less Depreciation $ (4,589.10) Totals-ACV $ 23,271.68 Pleasure Islan Lake Front Park Physical Damages Repairs Per Y&A Estimates $ 2,870.78 Less:Deductible $ (2,870.78) Totals Net RCV Repairs NIL Pleasure Islan Marine Office Physical Damages Repairs Per Y&A Estimates $ 1,143.38 Less:Deductible $ (1,143.38) Totals Net RCV Repairs NIL Roosevelt Park Physical Damages Repairs Per Y&A Estimates $ 22,063.19 Less:Deductible $ (1,800.00) Totals Net RCV Repairs $ 20,263.19 Less Depreciation $ (3,749.75) Totals-ACV $ 16,513.44 3/15/2023 DRAFT-For Discussion Purposes Only-Subject to Underwriters Review and Approval 2 of 4 j Engle Martin .1111 Insured: City of Port Arthur Loss Location: Multiple Locations,TX Date of Loss:October 9,2020 Type of Loss: CAT 2050 Hurricane Delta Our Reference Number: 1000312803 Final Statement of Loss Value Loss Claim Rose Hill Park Physical Damages Repairs Per Y&A Estimates $ 22,406.96 Less:Deductible $ (5,850.00) Totals Net RCV Repairs $ 16,556.96 Washington Park Pavilion Physical Damages Repairs Per Y&A Estimates $ 102,280.68 Less:Deductible $ (9,378.25) Totals Net RCV Repairs $ 92,902.43 Less Depreciation $ (4,880.08) Totals-ACV $ 88,022.35 Mosley Pool Physical Damages Repairs Per Y&A Estimates $ 10,612.89 Less:Deductible $ (10,612.89) Totals Net RCV Repairs NIL Fire Station#1 Physical Damages Repairs Per Y&A Estimates $ 4,729.56 Less:Deductible $ (4,729.56) Totals Net RCV Repairs NIL Fire Station#3 Physical Damages Repairs Per Y&A Estimates $ 1,173.37 Less:Deductible $ (1,173.37) Totals Net RCV Repairs NIL Fire Station#4 Physical Damages Repairs Per Y&A Estimates $ 1,027.39 Less:Deductible $ (1,027.39) Totals Net RCV Repairs NIL Fire Station#5 Physical Damages Repairs Per Y&A Estimates $ 36,598.00 Less:Deductible $ (27,188.36) Totals Net RCV Repairs $ 9,409.64 Less Depreciation $ (7,319.63) Totals-ACV $ 2,090.01 Fire Station#6 Physical Damages Repairs Per Y&A Estimates $ 5,133.10 Less:Deductible $ (5,133.10) Totals Net RCV Repairs NIL 3/15/2023 DRAFT-For Discussion Purposes Only-Subject to Underwriters Review and Approval 3 of 4 j Engle Martin .41 Insured: City of Port Arthur Loss Location: Multiple Locations,TX Date of Loss:October 9,2020 Type of Loss: CAT 2050 Hurricane Delta Our Reference Number: 1000312803 Final Statement of Loss Value Loss Claim Fire Station#8 Physical Damages Repairs Per Y&A Estimates $ 1,811.11 Less:Deductible $ (1,811.11) Totals Net RCV Repairs NIL County Park Physical Damages Repairs Per Y&A Estimates(limit) $ 120,924.85 Less:Deductible $ (2,234.57) Totals Net RCV Repairs $ 118,690.28 Less Depreciation $ (19,738.62) Totals-ACV $ 98,951.66 County Park Policy limit $ 74,485.75 Summary RCV $ 758,387.74 Less:Deductible $ (320,054.15) Net RCV $ 438,333.59 Less:Recoverable Depreciation $ (43,728.98) Net ACV Loss $ 394,604.61 Less Payment I $ (209,884.15) Net ACV Claim(Payment Request) $ 184,720.46 $ 184,720.46 Undisputed Net ACV Payment Request $ 184,720.46 Market Allocation $ 209,884.15 $ 184,720.46 Payment 1 Payment 2 Landmark American Insurance(RSUI)50% $ 104,942.08 S 92,360.23 Onyx Insurance Broker 50%as follows: Tokio Marine/Houston Casualty Company 15% $ 31,482.62 $ 27,708.07 Apollo Underwriting 12.50% $ 26,235.52 $ 23,090.06 AXA/XL 12.50% $ 26,235.52 $ 23,090.06 Hiscox(Lloyds)10% $ 20,988.42 $ 18,472.05 Total-100% $ 209,884.16 $ 184,720.46 3/15/2023 DRAFT-For Discussion Purposes Only-Subject to Underwriters Review and Approval 4 of 4