HomeMy WebLinkAboutPR 19155: APPROVING A PROPERY DAMAGE SETTLEMENT IN THE AMOUNT OF $74,888.90 FOR DAMAGES TO THE AMOS EVANS GYMNASIUM City of
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Texas
INTEROFFICE MEMORANDUM
Office of Safety & Risk Management
Date: October 6, 2015
To: Brian McDougal, City Manager
From: Lisa Colten, Safety& Risk Management Coordinator
RE: A Resolution Approving a Property Damage Settlement in the Amount of$74,888.90 for
Damages to the Amos Evans Gymnasium (1308B 9th Avenue)
Nature of the request: On or about February 5, 2015, wind caused debris to puncture the
roof of the Amos Evans Gymnasium (1308B 9th Avenue), allowing water to come through,
resulting in extensive damages to the roof and floor.
Staff Analysis, Considerations: The City had Commercial Wind/Hail insurance coverage for
the policy year 5/01/2014 through 5/01/2015 with Axis Surplus Insurance Company (Axis) and
Liberty Surplus Insurance Corporation (Liberty), with a $25,000.00 deductible. Axis and Liberty
have offered the City a settlement of$74,888.90, less the $25,000.00 deductible, less the withheld
recoverable depreciation of$19,955.10, making the final settlement offer $29,933.80 ($14,966.90
each) [Exhibit"A-1" and Exhibit "A-2"]. This amount is sufficient to cover all estimated property
damages for the Amos Evans Gymnasium. If additional damages are discovered, a supplemental
payment may be issued. The withheld recoverable depreciation may be recovered after repairs
have been completed.
Recommendation: I recommend approval of Proposed Resolution No. 19155 authorizing the
property damage settlement against Axis Surplus Insurance Company (Axis) and Liberty Surplus
Insurance Corporation (Liberty) for damage sustained to the Amos Evans Gymnasium (1308B 9th
Avenue). Axis and Liberty have offered to settle the claim for $74,888.90, less the $25,000.00
deductible, less the withheld recoverable depreciation of$19,955.10, making the final settlement
offer$29,933.80 ($14,966.90 each). This is considered a fair and reasonable settlement.
Budget Considerations: The funds received will be deposited in the Recreation Department
Building Maintenance Account#001-1402-551.32-00.
"Remember we are here to serve the Citizens of Port Arthur"
P.R. No. 19155
10/06/15 LJC
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE SETTLEMENT
OF A PROPERTY DAMAGE CLAIM IN THE AMOUNT OF $74,888.90 MADE AGAINST
AXIS SURPLUS INSURANCE COMPANY AND LIBERTY SURPLUS INSURANCE CORPORATION
AS A RESULT OF DAMAGE TO THE AMOS EVANS GYMNASIUM (1308B 9TH AVENUE)
WHEREAS, on or about February 5, 2015, the roof and floor at the Amos Evans Gymnasium (13088
9th Avenue) were damaged when wind caused debris to puncture the roof and allowed water to enter,
resulting in extensive damages; and,
WHEREAS, as a result of the loss, a claim was filed with Axis Surplus Insurance Company (Axis)
and Liberty Surplus Insurance Corporation (Liberty); and,
WHEREAS, Axis and Liberty have offered to settle the claim for $74,888.90, less the deductible
amount of$25,000.00, less the withheld recoverable depreciation of$19,955.10, making the final settlement
$29,933.80 ($14,966.90 each), which is considered 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
$29,933.80 ($14,966.90 each) for the claim against Axis and Liberty in substantially the same form as
delineated in Exhibit"A-1" and Exhibit"A-2".
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, 2015, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor
Councilmembers
NOES:
P.R. #19155
10/06/15
Page 2 of 2
Deloris"Bobbie" Prince, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Va Tizeno, Att ey
APPROVED FOR ADMINISTRATION:
Brian McDougal, City Manager
Exhibit "A-1"
$7,500,000.00 ECF78038614/ATL110681
AMOUNT OF POLICY AT SWORN STATEMENT POLICY/CLAIM NUMBER
TIME OF LOSS IN
PROOF OF LOSS
05/01/14 TO THE Houston,TX
ISSUED AGENCY AT
05/01/15 CRC Insurance Services
EXPIRES AGENT
Axis Surplus Insurance Company
of Chicago,IL
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 Wind loss occurred on the 5th day of February,2015
ORIGIN The cause and origin of the said loss were: wind that caused debris to puncture the roof of the Amos Evans
Gymnasium,1308B 9th Avenue,Port Arthur,TX. Water that entered through the puncture damaged the gym flooi
OCCUPANCY The building described,or containing the property described,was occupied at the time of loss as follows,
and for no other purpose whatever: gymnasium
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: None
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, $7,500,000.00 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 WHOLE LOSS AND DAMAGE was $ 74,888.90
DEDUCTIBLE Less the APPLICABLE DEDUCTIBLE $ (25,000.00)
DEPRECIATION: Less WITHHELD RECOVERABLE DEPRECIATION $ (19,955.10)
AMOUNT THE AMOUNT CLAIMED for this loss $ 29,933.80
CLAIMED
THE AMOUNT CLAIMED with Axis Surplus-Prorated Share-50% $ 14,966.90
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 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 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
Exhibit "A-2"
$7,500,000.00 1000087884-01/ATLPR00000103904
AMOUNT OF POLICY AT SWORN STATEMENT POLICY/CLAIM NUMBER
TIME OF LOSS IN
PROOF OF LOSS
05/01/14 TO THE Houston,TX
ISSUED AGENCY AT
05/01/15 CRC Insurance Services
EXPIRES AGENT
Liberty Surplus Insurance Corporation
of Boston,MA
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 Wind loss occurred on the 5th day of February,2015
ORIGIN The cause and origin of the said loss were: wind that caused debris to puncture the roof of the Amos Evans
Gymnasium,1308B 9th Avenue,Port Arthur,TX. Water that entered through the puncture damaged the gym floor
OCCUPANCY The building described,or containing the property described,was occupied at the time of loss as follows,
and for no other purpose whatever: gymnasium
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: None
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, $7,500,000.00 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 WHOLE LOSS AND DAMAGE was $ 74,888.90
DEDUCTIBLE Less the APPLICABLE DEDUCTIBLE $ (25,000.00)
DEPRECIATION: Less WITHHELD RECOVERABLE DEPRECIATION $ (19,955.10)
AMOUNT THE AMOUNT CLAIMED for this loss $ 29,933.80
CLAIMED
THE AMOUNT CLAIMED with Liberty Surplus-Prorated Share-50% $ 14,966.90
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 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 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