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Home My WebLink AboutPR 23982: PARTIAL SETTLEMENT FOR WIND DAMAGE, $82,786.67, HURRICANE DELTA (OCTOBER 9, 2020) En, y City of ort rthu 1r Texas Q INTEROFFICE MEMORANDUM Office of Safety & Risk Management Date: October 20, 2024 To: Ron Burton, City Manager, CPM From: Trameka A. Williams, Director of Human Reso RE: A Resolution Approving A Partial Settlement For Wind Damage in the Amount of $82,786.67 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. The City of Port Arthur has received a total of $209,884.15 to date for wind related damage caused by Hurricane Delta. Underwriters at Lloyd's of London has offered the City a portion of a settlement in the amount of $82,786.67 for wind related damages to various buildings as delineated in Exhibit "A". This is considered a fair and reasonable settlement. Additional funds are anticipated in the amount of $9,573.57 from Lloyd's of London Insurance Company and will be issued as a supplemental payment after processing. RECOMMENDATION: I recommend approval of Proposed Resolution No. 23982 which authorizes settlement of wind claims in the amount of $82,786.67 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." RPF P.R. No. 23982 10/20/24 TAW RESOLUTION NO. A RESOLUTION APPROVING A PARTIAL SETTLEMENT FOR WIND DAMAGE IN THE AMOUNT OF $82,786.67 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 for wind related damage to various buildings; and, WHEREAS, the City of Port Arthur has received a total of $204,884.15 to date for wind related damage caused by Hurricane Delta; and, WHEREAS, underwriters at Lloyd's of London through USI have offered a partial settlement in the amount of $82,786.67 for wind damages sustained from Hurricane Delta with an anticipated additional amount of $9,573.57 being processed 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. I y Section 2. That, the City Manager is hereby authorized to execute settlement in the amount of $82,786.67 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, 2024, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , Councilmembers NOES: I Thurman "Bill" Bartle, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED A • Roxann Pais Cotroneo, City Attorney P OVED F ADMI Sr)Tp%)N: QNne A Ronald Burton, City Manager, CPM • EXHIBIT "A" S2,500,000.00 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 FINAL PAYMENT AGENCY AT 05/01/21 EXPIRES AGENT Underwriters 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 2020 ORIGIN The cause and origin of the said loss were: Hurricane Della 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 w : OWNER INTEREST No other person had any interest therein or encumbrance thereon,except: NO Ilb 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, 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 TILE LOSS AND DAMAGE was RCV S 758,387.74 DEDUCTIBLE Less Deductible S (320,054.15) DEPRECIATION Less Recoverable Depreciation S (43.728.98) LOSS THE NET ACV LOSS was S 394,604.61 PAYMENT Less PRIOR PAYMENT I S (209,884.15) AMOUNT CLAIMED THE AMOUNT CLAIMED under the above numbered policy is S 184,720.46 London Share 50%= S 92,360.23 The said loss did not originate by any act,design or procurement on the part of your insured,or this atiiant;nothing has been done or with the privity or consent of your insured or this atliant.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 corndatto ;a waiver of any of its rights. ‘N't ��"� of X t CStateounty of _'\)Ni:"kr-rc0f) Insured Sub cribed on sworn to b••fqt me this l�� ay of t e 2:13) Kona 3t,tr Notary Public qv( 1000312803 TRAMEKA WILLIAMS ✓✓✓�n� ' EMA Clan Number � � t NOTARY PUBLIC,STATE Of TEXAS ( = �.... •� COM.EXPIRES 01/22/2025 t ''"sr°f.. NOTARY 10.1218224-7