HomeMy WebLinkAboutPR 15541: MCGRIFF, SEIBELS & WILLIAMS - HURRICANE IKE RELATED WINDSTORM DAMAGESCITY OF PORT ARTHUR
HUMAN RESOURCE DEPARTMENT
MEMORANDUM
T0: Mayor and City Council ~~
FROM: Lisa Cotten, Safety It Risk Management Coordinator
DATE: September 28, 2009
SUBJECT: A Resolution Authorizing Acceptance of an Advance Payment of
$200,000.00 for Hurricane Ike Related Windstorm Damages from the City's
Windstorm Insurance Carrier (McGriff, Seibels & Williams)
COMMENTS
I recommend approval of Proposed Resolution No. 15541 which authorizes the City Manager
to do all things necessary to accept the offer of advance payment in the amount of
$200,000.00 from the City's Windstorm Carrier (McGriff, Seibels Et Williams) for estimated
windstorm damage related to Hurricane tke.
This amount represents an advance payment only for wind related damages. Investigation of
the toss(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 windstorm damage as a result. McGriff, Seibels i3 Williams has offered an
advance payment in the amount of $200,000.00.
Inasmuch as the City to date has spent in excess of $200,000.00 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.
BUDGETARY/FISCAL EFFECT:
The funds received will be deposited in the appropriate account designated by the Director
of Finance.
STAFFING/EMPLOYEE EFFECT:
No effect on staffing levels:
"REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR"
Mayor and City Council
September 28, 2009
Page 2 of 2
SUMMARY:
1 recommend approval of Proposed Resolution No. 15541 which authorizes the City Manager
to do alt things necessary to accept the offer of advance payment in the amount of
$200,000.00 from the City's Windstorm Carrier (McGriff, Seibels li Williams) for estimated
windstorm damage related to Hurricane Ike.
This amount represents an advance payment only for wind 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.
"REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR"
P.R. No.15541
9/28/09 UC
RESOLUTION N0.
A RESOLUTION AUTHORIZING ACCEPTANCE OF AN ADVANCE PAYMENT
OF $200,000.00 FOR HURRICANE IKE RELATED WINDSTORM DAMAGES
FROM THE CITY'S WINDSTORM INSURANCE CARRIER (MCGRIFF, SEIBELS It WILLIAMS)
WHEREAS, the City has $20,000,000.00 in v~indstorm property insurance; and,
WHEREAS, an advance payment of $200,000.00 has been offered by McGriff, Seibets Ft
Williams, the City's windstorm inwrance carrier; and
WHEREAS, the City to date has spent in excess of $200,000.00 of non-budgeted funds on
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,
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 $200,000.00 from the City's Windstorm Insurance Carrier
(McGriff, Seibels 8 Williams).
Section 3. That, a copy of this Resolution be spread upon the minutes of the City
Council.
P.R. No. 15541
9/28/09 UC
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
APPROVED AS TO FORM:
MarkSokolow, Cit A torney (an'Bet1k~ OF)
APPROVED FOR ADMINISTRATION:
Stephen Fitzgibbons, City Manager