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Home My WebLink AboutPR 15888: IKE WINDSTORM DAMAGES PAYMENTCITY OF PORT ARTHUR HUMAN RESOURCE DEPARTMENT MEMORANDUM TU: Mayor and City Council FROM: Lisa C:olten, Safety £t Risk Management Coordinator DATE: May 14, 2010 SUBJECT: A Resolution Authorizing Acceptance of an Advance Payment of $583;,906.49 for Hurricane Ike Related Windstorm Damages from the City's Windstorm Insurance Carrier (McGriff, Seibels £t Williams) COMMENTS RECOMMENDATION: I recommend approval of Proposed Resolution No. 15888 which authorizes the City Manager to do all things necessary to accept the offer of advance payment in the amount of $583,906.49 from i:he City's Windstorm Carrier (McGriff, Seibels R 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. 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 ~t Williams has offered this advance payment in the amount of $583,906.49. Inasmuch as the City to date has spent in excess of $583,906.49 of non-budgeted funds on related hurricane damages, the timely receipt of this 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 May 14, 2010 Page 2 of 2: SUMMARY: I recommend approval of Proposed Resolution No. 15888 which authorizes the City Manager to do alt things necessary to accept the offer of advance payment in the amount of $583,906.49 from t:he City's Windstorm Carrier (McGriff, Seibels Ft 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, ~f it is later determined that related damages exceed the advance payment amount, then the t;ity 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.15888 5/14/10 LJC RESOLUTION N0. A RES01_UTION AUTHORIZING ACCEPTANCE OF AN ADVANCE PAYMENT OF $583,906.49 FOR HURRICANE IKE RELATED WINDSTORM DAMAGES FROM THE CIT`E'S WINDSTORM INSURANCE CARRIER (MCGRIFF, SEIBELS 8 WILLiAMS) WHEREAS, the City has $20,000,000.00 in windstorm property insurance; and, WHEREAS, an advance payment of $583,906.49 has been offered by McGriff, Seibels Ft Williams, the City's windstorm insurance carrier; and WHEREAS, they City to date has spent in excess of $583,906.49 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, 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 $583,906.49 from the City's Windstorm Insurance Carrier (McGriff, Seibels £t Williams). Section 3. That, a copy of this Resolution be spread upon the minutes of the City Council. P. R. No. 15888 5/14/10 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 , Cauncilmembers NOES Debris "Bobbie" Prince, Mayor ATTEST: City Secretary APPROVED AS TO FORM: .~' - City Attorney 4; APPROVED FOR ADMINISTRATION: City Manager ATTACHMENT "A" ~ 20,000,000.00 OCTOBER 1, 2007 _ oATarssueo OCTOBER 1, 2008 wT& ocrrnas _ 2nd PARTIAL D36069235 001 CRC Aor3rr HOUSTON, TX AGENCY AT Toths _~ ~ WES•TCHESTER SURPLUS LINES INSURANCE COMPANY ~ _ ROSWELL, GA at tim. a ass, by the above indicatrd pda<y of ktauranca you ktwred TH E CCTY OE PORT ARTHUR a4~ loss by NAMED PERIL , to ~ DroA~Y drasaibed under SdteduN 'A.' according to the trurrts and oonditior-s of the said poky end sU forms. endorsements. transfers and aasignmsnts attached thereto. HURRICANE CKE 1. Time and Origin: A _ loss occurred about the hour at o'dodc .M., on the _t3, day of SEPTEMBER 2008 The cause and origin of the said kua wme: HURRICANE [KE MADE LAND NEAR GALVESTON, TX. THE STORM MOVED NORTH THROUGH HOUSTON CAUSING MORE DAMAGE. 2. Occupancy: The building described, or containing the propaAy described, waa oxupied at the time of the loss as folbws, and for na other p~pp~ ~t~m.. COMMERCIAL---MU LTCPLE LOCATIONS---PORT ARTHUR, TX 3. Tk1e and Interest:: At the time of the lose the Interest of your leisured in the property desaibsd therein was OW N E R No other person or persons had any interest therein or incumbrence thereon, except: ~JO EXCEPTION 4. Chattpes: Since the said polky war isatx~d there has been no assignmectt thereof, or change of k~tereat, use, occupancy, possession, location or exposure of the property deacribed except: tV0 EXCEPTION _ S. Tots) Insurance: The total amount of insurance upon the property descxibed by this policy was, at the time of the loea, S 20,000,000.00 as more prrticularly specftiad Vt ttte apportionment attached under Schedule 'C,' besides which there was no policy or other contract of Msurance, written or oral, valid a invalid. B. Full Replacement Cost of said property at ttte time o/ the bss was ............................. ~ UNDETERMINED 7. The Futl Cost of Rapatr or Replacement is .TO DATE PENUINC 5UPPLEMENTAC . S 2,076,168.27 0. Applicable Deproelstbn or Betten»ent is ...ACE maintains 50% of coverage. , 9. Actual Cash Value Loss is (Lima 7 minus Una 8) ........................................ S t < 1,038,084.14 > 1,038,084.14 10. Lass [kductibies and/or participation by ttre insured ,less deductible 254,177.64 & advance 200,000 ~ < 454,177.65 y 11. Actual Cash Vslua CINm is (Line S minus Line tt)) ..................................... . f2. Supplemental Claim, to ba lied 1n accordance with the terms and catditions of the Replaoament Cost Coverage wMhln ` _ days from the data of kiss as shown above. wdl not exceed ........................ . (This ig~+ wit be that portbn of the amounts shown on lines 8 and 10 which is recoverable.) 583,906.49 0.00 The said toes did not orlgtnate by any act,, design or procurement on the pad of your insured, or thts rffiartt; nothing has been done by or with iha prtvMy or consent of your insured ~x this afflattt, to violate the condttlonr of the policy, or render N veld; no srtlcles sro mentioned herein or M annexed schedule but such as ware destroyed or damaged at the time of acid loss; no properly saved has in any manner bean conceded, and no attempt to deceive the saW company as to life extent of rant loss, and in any manner been made. Any other Intornnation that may tae required wNl ba furnished and consWered a pad of tltb proof. 'The furnishing of thb blank or the preparation of proofs by a ropresentative of the above insurance company b not a waiver of any of its rights. Stw of Count' of Subscribed and sworn to bslore ma this SVIIURN STATEMENT IN PROF OF LnSS (F'or Use Witfi Replacement Cost Coverages) X x day of i$ _ The Insured Notary Public ATTACH~TENT "B" STATEMENT OF LOSS INSURED: CITY OF PORT ARTHUK LOCATION: Mt1_LTIPLE LOSS LOCAT10N5 PORT ARTHUR, TX CLAIM NUMBER: JY"08J0303831 PCS FILE NUMBER: 08-000384 FINAL ^ ~ VALUE LOSS CLAIM 1'I'EM I. H'ROPERTY IDAVIAGE CITY OF PORT ART1lUR Loss to buildings exceeding their deductibles $ 2,076,1.68.27 $ 2,076,168.27 Less the percentage deductible $ (508,355.30) Net BuilcNing Loss $ 1,567,812.97 llivided by 2 for 50"/o coverage x .5 ACE maintains 50% of the coverage $ 783,906.49 Less the Advance $ (200,000.00) Net Undisputed Amount for Buildings $ 583,906.49 $ 583,906.49 4 ALt1E, LOSS 1_ND C'LAIYI 0.00 $ 2,076,168.27 $ 583,906.49 Property Catastrophe Specialist, Lnc Phillip E. NlcNcel General Adjuster Page 1