HomeMy WebLinkAboutPR 15738: ACCEPT ADVANCE PAYMENT FOR HURRICANE IKE WINDSTORM DAMAGESCITY OF PORT ARTHUR
HUMAN RESOURCE DEPARTMENT
MEMORANDUM
T0: Mayor and City Council
FROM: Lisa Colten, Safety @ Risk Management Coordinator
DATE: February 10, 2010
SUBJECT: A Resolution Authorizing Acceptance of an Advance Payment of $59,750.89
for Hurricane Ike Related Windstorm Damages from the City's Windstorm.
Insurance Carrier (McGriff, Seibels @ Williams)
COMMENTS
RECOMMENDATION:
I recommend approval of Proposed Resolution No. 15738 which authorizes the City Manager
to do all things necessary to accept the offer of advance payment in the amount of
$59,750.89 from the City's Windstorm Carrier (McGriff, Seibels 8 Williams) for estimated
windstorm damage related to Hurricane Ike. (Exhibit "A").
This amount represents an advance payment only for wind related damages. An initial
advance payment of $200,000.00 from McGriff, Seibels ft Williams was received October 6,
2009 (Resolution No. 09-450). Investigation of the loss 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, the City wilt 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 Ft Williams has offered an
advance. payment in the amount of $59,750.89.
Inasmuch as the City to date has spent in excess of $59,750.89 of norr-budgeted funds on
related hurricane damages, the timely receipt of the advance payment is important to the
City's continued efficient and effective operation.
"REMEMBER, WE ARE'HERE TO SERVE THE CITIZENS OF PORT ARTHUR"
Mayor and City Council
February 10, 2010
Page: 2 of 2
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:
SUMMARY:
I recommend approval of Proposed Resolution No. 15738 which authorizes the City Manager
to do all. things necessary to accept the offer of advance payment in the amount of
$59,750.89- from the City's Windstorm Carrier (McGriff, Seibels £t Williams) for estimated
windstorm damage related.to Hurricane Ike (Exhibit "A").
This amount represents an advance payment only for wind related damages.. An initial
advance payment of $200,000.00 from McGriff, Seibels £r Williams was received October b,
2009 (Resolution No. 09-450). Investigation of the loss 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, the City wilt 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.15738
2/10/10 LJC
RESOLUTION N0.
A RESOLUTION AUTHORIZING ACCEPTANCE OF AN ADVANCE PAYMENT
OF $59,750.89 FOR HURRICANE IKE RELATED WINDSTORM DAMAGES
FROM THE CITY'S WINDSTORM INSURANCE CARRIER (MCGRIFF, SEIBELS ft WILLIAMS)
WHEREAS, the City has $20,OOO,OOO.OOin windstorm property insurance; and,
WHEREAS, an advance payment of $59,750.89 has been offered by McGriff, Seibets it
Williams, the City's windstorm insurance carrier; and,
WHEREAS, the City to date has spent in excess of $59,750.89 of non-budgeted funds on
related Hurricane Ike related windstorm 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 $59,750.89 from the City's Windstorm Insurance Carrier
(McGriff; Seibels tt Williams) in substantially the same form as delineated in Exhibit "A".
Section 3. That, a copy of this Resolution be spread upon the minutes of the City
Council.
P.R. No. 15738
2/10/10 LJC
Page 2 of 2
READ, ADOPTED, AND APPROVED this day of , AD, 2010, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES:
Mayor , Councilmembers
NOES:
Detoris "Bobbie" Prince, Mayor
ATTEST:
City Secretary
AP)PR~OVED AS TO FORM:
v ~
City Attorney ~/~+i
APPROVED FOR ADMINISTRATION:
City Manager
EXH I B I'I° "Ps°°
Exhibit "A"
SWORN STATEMENT IN PROOF OF LOSS
ADVANCE
$ 10.000.000.00
AMOUNr'OF PoLICY AT TIME GF W55
October 1.2007
DATE ISSUED
October 1.2008
GATE EMPIRES
92AMR100219'
POLICY NUMDER
McGriff Seibels & Williams
AGExr
Houston. Texas
AGENCY AT
To the National Fire and Marine Insurance Com anv
of
At time of loss, the above indicated policy of insurance you insured The Ciri of Port Arthur
Against loss by Hurricane to the property described under Schedule "A," according to the terms and conditions of the said policy and
all fomLS, endorsements, transfers and assignments thereto.
1. Time and Origin: A Hurricane loss occurred about the hour of o'dock_M., on the _
t3`" day of September 2008_ The cause and origin ofthe said loss were: Hurricane Ike (Cat 60) damaeed
2. Occupancy: The building described, or containing [he property described, was occupied at the time of the loss as follows, and for no other
purpose whatever: Various
3. Title and interest: At the time of the lossthe interest of your insured in the property described therein was Owner /Municipality
No other person or persons had any interest therein orincumbrance thereon, except:
4. 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:
5. Total Insurance: The total amount of insurance upon the property described by [his policy was, at the time of the loss, $ 10,000,000.00_.
as more particulazly specified in the apportionment attached under Schedule "C," besides which there was no policy or other contract of
insurance, written or oral, valid or invalid.
6. The Total Replacement Cost of said property at the time of the Toss was ...... .......................................... $ Undetermined
7. Actual Cash Value of said property at the time of the loss was ............................................................... $ Undetermined
8. The Whole Loss and Damage was ..................................................................................................$ Undetermined
9. The Amount Claimed under the above numbered policy is......... Advance Payment .........:.........................$ 59 750.89
The said loss did not originate by any acl, design or procurement on the pad of your insured, or this affiant: nothing has been
done by or with the privity or consent of your insured or this affiant, to violate the conditions of the policy, or render iYvoid; no
artiGes are mentioned herein or in annexed schedules 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 company, as to the eMent of said loss,
has in any manner been made. Any other information that may be required will be furnished and considered part of this proof.
The furnishing of this blank or the preparation of proofs by a representative of the above insurance tympany is not a waiver of
any of its rights.
State of
The City of Port Arthur
County of
Subscribed and sworn before me this day of
Title:
Notary Public