HomeMy WebLinkAbout20B - AA TO FACILITATE PAYMENTS FOR REPAIRSREQUEST FOR
COUNCIL ACTION
CITY COUNCIL MEETING DATE:
FEBRUARY 18, 2020
CLERK OF COUNCIL USE ONLY:
TITLE: APPROVED
RECOGNIZE CLAIMS COST ❑ As Recommended
REIMBURSEMENT FUNDS AND APPROVE El Amended
APPROPRIATION ADJUSTMENT TO ❑ Ordinance on Reading
❑ Ordinance on 2ntl Reading
FACILITATE PAYMENTS FOR REPAIRS ❑ Implementing Resolution
AND RENOVATIONS ON VARIOUS ❑ Set Public Hearing For_
DAMAGED CITY PROPERTIES
CONTINUED TO
/s/Kristine
CITY MANAGER
RECOMMENDED ACTION
Approve an appropriation adjustment recognizing Fiscal Year 2019-20 claims cost reimbursement
revenue in the estimated amount of $1,486,520 into general liability revenue account and
appropriate the same amount to the general liability contract services -professional.
DISCUSSION
The City experiences multiple types of property damage throughout a normal year and Risk
Management facilitates cost recovery from applicable insurance entities and/or responsible parties.
Since 2017 the larger losses are referenced in the table below:
City Facility
Date of Loss
Damage Category
Remediation/Repair
Costs
Jerome Recreation Center—
11/01/2017
Water Intrusion
$105,870
Gym Floor
City Hall Basement
10/13/2018
Flood
$259,064
Santa Ana Regional
02/05/2019
Air Quality
$183,434
Transportation Center
SARTC , 2nd floor
Santa Ana Regional
05/10/2019
Air Quality
$53,363
Transportation Center
SARTC , 3rd floor
Southwest Senior Center
10/21/2019
Flood/Faulty
$700,000
"Facility is closed, projected
Equipment
reopening April 2020
Facilities Damage Mitigation
Various
Various
$184,789
Requirements
20B-1
Appropriation Adjustment Fiscal Year 2019-20 Risk Management Projects
February 18, 2020
Page 2
Inspection of the Southwest Senior Center during the initial evaluation of damage identified several
significant hazardous areas which require repair, to accommodate patrons safely and
appropriately. Concerned areas include lifting of tile floor and concrete cracks throughout front and
rear entrance of facility, inadequate fire suppression in the kitchen.
With approval of appropriation, funds will be allocated to address the hazardous area and issues,
meet ADA requirements, and install preventative measures to mitigate damage from flooding in the
future. The renewed Center will better serve the community by presenting a safe facility for the
public and City staff.
The anticipated reimbursement revenue for FY 2019-20 is $1,486,520. Appropriation is requested
from revenue accounting unit Insurance Reimbursements, No. 08009002-57019 into Risk
Management Projects No. 08009053, to complete the required repairs to the water filter system,
renovations, enhanced security, outdoor lighting, and renew the Southwest Senior Center.
Appropriated funds will also be allocated to enhance safety and security of City properties as well
as mitigate future water damage by installing floor water sensors in appropriate City facilities,
updating and adding security cameras in strategic locations, install strategically located outdoor
security lighting and complete repairs and renovations of other City properties.
Current and future insurance reimbursements and settlements from various property damage to
City facilities are deposited into the Risk Management General Liability revenue accounts for use
to cover costs of necessary repairs and deductibles. Current deposits are approximately $684,641
with additional anticipated deposits of $801,879, an estimated total of $1,486,520. Deposits not yet
received or deposited include smaller cost recovery funds and Insurance Reimbursement already
settled in the amount of $561,732 referenced by the attached settlement letters (Exhibit 1). At this
time, staff recommends that the City Council approve an appropriation adjustment to recognize
these funds to pay outstanding invoices for remediation, repairs, and restoration of affected City
facilities.
STRATEGIC PLAN ALLIGNMENT
Approval of this item supports the City's efforts to meet Goal #5 - Community Health, Livability,
Engagement & Sustainability, Strategy 4 (support neighborhood vitality and liability, Strategy 6
(focus projects and programs on improving the health and wellness of all residents).
FISCAL IMPACT
The revenue appropriation should occur in Fiscal Year 2019-20, with the approximate anticipated
revenue including the above listed losses as $1,486,520. The Risk Management Division will
monitor activities to ensure expenditures do not exceed revenue collected.
Fiscal Year 2019-20 General Liability revenue from these losses will be received into the Liability
& Property Insurance Reimbursements account, No. 08009002-57019 and appropriating same to
Risk Management Projects expenditure account No. 08009053 (various).
20B-2
Appropriation Adjustment Fiscal Year 2019-20: Risk Management Projects
February 18, 2020
Page 3
Steven V. Pham
Executive Director
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Kathryn Downs, CPA
Executive Director
Human Resources Agency Finance and Management Services Agency
SVP/dsl
Exhibit: 1. Settlement Letters from McLarens
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180 Montgomery street, Suite 2100
San Francisco, CA 94104-4231 USA
Tel .1415 392 6034 v .mclarens.com
Fax .1415 392 0213
License #2607078
Jim McGovem
Executive General Adjuster
Direct Dial .1415 228 6424
Email: pm.magovern@mclarens.com
January 29, 2020
MEMORANDUM
TO: Samantha M. Lambert, Risk Management Supervisor
SLa m be rt(@sa nta-ana.ore
Human Resources
20 Civic Center Plaza
Santa Ana, CA 92701
FROM: Jim McGovern
Assistant Vice President, Executive General Adjuster
Re: Assured:
Date of Loss:
Location Involved:
McLarens File No.:
Dear Ms. Lambert:
PEPIP/DEC 2/City of Santa Ana
September 7, 2018
Jerome Center
726 S. Center Street
Santa Ana, CA 92704
002.047232.00.J
McLarens
GLOBAL CLAIMS SERVICES
We are writing to advise we have completed our analysis of the above -captioned help based on your
assistance and the documentation as presented.
We find the loss totals to be $105,870.00 less the <$10,000.00> deductible for a net claim of $95,870.00.
Please have the attached Final Proof of Loss executed in the presence of a Notary Public and
electronically returned to our office for additional processing and funding. Thank you for your patience
and your help in settling the claim.
Very truly yours,
Jim McGovern
Assistant Vice President
Executive General Adjuster
JM/ct
Page 2
CITY OF SANTA ANA
January 29, 2020
ENCLOSURES:
CC:
1. Final Statement of Loss
2. Final Proof of Loss
1. Robert Frey, rfrev@alliant.com
McLarens File 002.047232.00.J
'j McLarens
r1-
Assured:
CITY OF SANTA ANA
Coverage:
Recapitulation of Verified Detail
Values at Risk:
LOSS AS DETERMINED:
ATI Demo Gym Floor
McWill Sports Surfaces
FINAL STATEMENT OF VALUE AND LOSS
Date of Loss:
9 7 2018
Loss Location:
JEROME CENTER
726 S. CENTER ST.
SANTA ANA, CA 92704
Manuscript form extending All Risk cover
for Real and Personal property. There is
$10,000 deductible applicable.
Value Loss
$ 17,327.00
$ 88,543.00
Value and Loss: $ 105,870.00
Less: Deductible: $ (10,000.00)
Net Claim: $ 95,870.00
MCLarens File No.: 002.047232.00.1
rI-
Amount of Policy
$ As per form
To
of
Issued Expires
Iv 1. 2017 iuIv 1. 2018
LEXINGTON
SWORN STATEMENT Policy Number 0017471589
In
Agency Name Alliant Insurance Services
FINAL PROOF OF LOSS
COMPANY
By the above indicated policy of insurance your insured PEPIP/DEC 2/City of Santa Ana
against loss by all risk of physical damage upon the property described, according to the terms and conditions of the said
Conditions of the said policy and all forms, endorsements, transfers and assignments attached thereto.
1. Time and Origin: A loss occurred about the hour of o'clock M., on the 7th day of September 20 18
The cause and origin of said loss were: I Damage to Gym Floor
2. Occupancy: The building described, or containing the property described, was occupied at the time of the loss as follows, and for
no other purpose whatever: Jerome Center: 726 S. Center Street, Santa Ana, CA 92704
3. Title and Interest When this policy was acquired and at the time of the loss the interest of your insured in the property described
therein was sole and unconditional ownership, and no other person or persons had any interest therein or incumbrance thereon.
(State exceptions, if any.) NO EXCEPTIONS
4. Changes: Since the said policy was acquired there has been no assignment thereof, or change of ownership, use, occupancy,
Possession, location or exposure of the property described, or of our insured's interest therein. (State exceptions, if any.)
5. Total Insurance: The total
6. The Cash Value of said property
7. The Whole Loss and Damage was
8. The Amount Claimed under the
The said loss did not original
done by or with the privity or consent
are mentioned herein or in annexed
possession of the said insured at the ti
the said company, as to the extent of
furnished and considered as part of th
The furnishing of this blank
any of their rights.
FOR YOUR PROTECTION, CALIF(
Any person who knowingly presen
fines and confinement in state priso
State of
County of
insurance upon the property described by this policy was, at the time of the loss,
time of loss was
Not Determined
$ 103,870.00
e numbered policy ................................................................................... $ 95,870.00
(Amount claimed is net applicable $10,000 deductible)
by any act, design or procurement on the part of your insured, or this affiant; nothing has been
f your insured or this affiant, to violate the conditions of the policy, or render it void; no articles
hedules but such as were in the building damaged or destroyed , and belonging to, and in
Le of said loss; no property saved has in any manner been concealed, and no attempt to deceive
aid loss, has in any manner been made. Any other information that may be required will be
the preparation of proofs by a representative of the above insurance company is not a waiver of
:NIA LAW REQUIRES THE FOLLOWING TO APPEAR ON THIS FORM:
false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to
Subscribed and sworn to (or affirmed) before me on this day of
the person(s) who appear before
Claim No: 2957801035US
(Insured Signature)
Insured
(month), (year) by
proved to me on the basis of satisfactory evidence to be
(signature of Notary)
20B-7
18D Montgomery Street, Suite 2100
San Franoxci. CA 941D4-4231 USA
Tel .14153926034 www.mclarens Cons
Fax .1 415 39Z 0213
License 42607078
jun McGovern
Executna, General Adjuster
Direct Dust -14IS 223 M24
Ernst! am com
January 10, 2020
MEMORANDUM
TO: Samantha M. Lambert, Risk Management Supervisor
SLam bert@santa-ana.ore
Human Resources
20 Civic Center Plaza
Santa Ana, CA 92701
FROM: Jim McGovern
Assistant Vice President, Executive General Adjuster
Re: Assured:
PEPIP/DEC 2/City of Santa Ana
Date of Loss:
October 13, 2018
Location Involved:
20 Civic Center Plaza
Santa Ana, CA 92702
MCLarens File No.:
002.047407.00.1
Dear Ms. Lambert:
McLaYens
Gl (JB<t ; tAYS Sk NJi<E S
We are writing to discuss a recommended settlement for the above -captioned claim. As you may recall
in our earlier discussion, BELFOR responded to the Emergency Services and the follow-on abatement of
asbestos impacted by the water damage and have been paid in full by the City of Santa Ana at
$133,725.97.
As a follow on, BELFOR submitted a rebuild estimate for $129,295.71. However, due to a change in
personnel at the City and difficulties in getting a group consensus as to how best to repair the area,
BELFOR was not hired to do the repair work and the repair work remains incomplete.
At this juncture there are two avenues to complete the settlement of this claim as follows:
1. The claim can be moved forward by securing the services of BELFOR or another contractor to
perform the agreed scope of repairs. Once those repairs are done based on a like kind and
quality repair scope, we would reimburse for that amount of work which currently is projected
at $129,295.71. In addition, we would make an advance payment on the other outstanding cost
to date which includes the Emergency Services and Abatement by BELFOR and some testing by
other various environmental companies.
Page 2
CITY OF SANTA ANA
January 10, 2020
McLarens File 002.047407.00.J
2. An alternative method of settling the claim would be to pay all outstanding bills to date as
previously mentioned above and pay based on the actual cash value (ACV( of the repairs. The
ACV would be the total of the projected repairs less depreciation which is $114,839.85
Attached is a worksheet showing the ACV avenue to settle the claim. Please review this and advise if you
would prefer to settle the claim based on the numbers at hand with the ACV calculation for repairs or
alternatively if you would like to accept the partial payment for the Emergency Services and Abatement
and associated environmental consultants plus the longer -term construction on a like kind and quality
basis.
We are prepared to work with you on either approach and will await your instructions as to how best to
move forward. If you have any questions, please feel free to call.
Very truly yours,
ryhJ I �y1 ..
Jim McGovern
Assistant Vice President
Executive General Adjuster 15010026
JM/ct
ENCLOSURES:
1. Worksheet with ACV Calculation
CC:
1. Robert Frey
joMcLaTms
rl- •
Adjuster Worksheet
Insured: PEPIP/DEC 2/City of Santa Ana
McLarens File: 002.047407.00.1
VENDOR
SERVICES
SUBMITTED
AGREED
COMMENTS
Belfor
Emergency Services
$ 87,142.66
$ 87,142.66
Completed
Belfor
ACM Abatement
$ 46,583.31
$ 46,583.31
Complete and
Passed
A -Tech
Testin Environmental
$ 4,708.00
$ 4,708.00
Agreed
Dr.
Sasson
Testing/Environmental
$ 5,790.00
$ 5,790.00
Agreed
Belfor
Repair Quote
$ 129,295.71
$ 114,839.85
At ACV with
depreciation on
materials only
Gross Loss:
$ 259,063.82
Deductible:
Net Claim:
1 $ 249,063.82 1 ACV Costs to Date
20B-10
180 Montgomery Street, Suite 2100
San Francisco, CA 94104-4231 USA
Tel +14153926034 www.mciarens.com
Fax +1415 392 0213
License#2607078
Jim McGovern
Executive General Adjuster
Direct Dial .1415 228 6424
Email: pm.mcpvern@=1arens.com
January 29, 2020
MEMORANDUM
TO: Samantha M. Lambert, Risk Management Supervisor
SLa m be rt@sa nta-ana.ore
Human Resources
20 Civic Center Plaza
Santa Ana, CA 92701
FROM: Jim McGovern
Assistant Vice President, Executive General Adjuster
Re: Assured:
Date of Loss:
Location Involved:
McLarens File No.:
Dear Ms. Lambert:
tj McLarens
GLOBAL CLAIMS SERVICES
PEPIP/DEC 2/City of Santa Ana
February 5, 2019
Santa Ana Train Station
1000 E. Santa Ana Boulevard
Santa Ana, CA 92701
002.048948.00.J
We are writing to advise we have completed our analysis of the above -captioned claim and have
determined the claim to be valued at $183,434.67 less the <$10,000.00> deductible for a final claim total
of $173,434.67. Please review the attached Statement of Loss and keep a copy for your records.
Please have the attached Final Proof of Loss executed in the presence of a Notary Public and
electronically returned to our office for additional processing and funding. Thank you for your patience
and help in settling this claim and we wish you the best of luck in the new year.
Very truly yours,
Jim McGovern
Assistant Vice President
Executive General Adjuster
JM/ct
20B-11
Page 2
CITY OF SANTA ANA
January 29, 2020
ENCLOSURES:
CC:
1. Final Statement of Loss
2. Final Proof of Loss
1. Robert Frey, rfrev@alliant.com
MCLarens File 002.048948.00.)
tj McLarens
20B-12
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20B.12
Amount of Policy
$ As per form
Issued I Expires
To
of
SWORN STATEMENT Policy Number 0017471589
In
Agency Name Alliant Insurance Services
FINAL PROOF OF LOSS
COMPANY
By the above indicated polity of insurance your insured PEPIP/DEC 2/City of Santa Ana
against loss by all risk of physical damage upon the property described, according to the terms and conditions of the said
Conditions of the said policy and all forms, endorsements, transfers and assignments attached thereto.
1. Time and Origin: A loss occurred ablout the hour of o'clock M., on the 5th day of February 20 19
The cause and origin of said loss were: Discovery of Mold
2. Occupancy: The building described, or containing the property described, was occupied at the time of the loss as follows, and for
no other purpose whatever: 1000 E. Santa Ana Boulevard, Santa Ana, CA 92701
I
3. Title and Interest: When this policy was acquired and at the time of the loss the interest of your insured in the property described
therein was sole and unconditional ownership, and no other person or persons had any interest therein or incumbrance thereon.
(State exceptions, if any.) NO EXCEPTIONS
4. Changes: Since the said policy was acquired there has been no assignment thereof, or change of ownership, use, occupancy,
Possession, location or exposure of the property described, or of our insured's interest therein. (State exceptions, if any.)
NO EXCEPTIONS
5. Total Insurance: The total mount of insurance upon the property described by this policy was, at the time of the loss,
$
6. The Cash Value of said property at the time of loss was...................................................................................... $ Not Determined
7. The Whole Loss and Damage was ... ........................................................................................................................ $ 183,434.67
8. The Amount Claimed under the ab ee numbered policy ................................................................................... $ 173,434.67
1 (Amount claimed is net applicable $10,000 deductible)
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 by or with the privity or consent Hof your insured or this affiant, to violate the conditions of the policy, or render it void; no articles
are mentioned herein or in annexed schedules but such as were in the building damaged or destroyed , and belonging to, and in
possession of the said insured at the me of said loss; no property saved has in any manner been concealed, and no attempt to deceive
the said company, as to the extent oflsaid loss, has in any manner been made. Any other information that may be required will be
furnished and considered as part of this proof.
The furnishing of this blank it the preparation of proofs by a representative of the above insurance company is not a waiver of
any of their rights.
FOR YOUR PROTECTION, CALIFORNIA LAW REQUIRES THE FOLLOWING TO APPEAR ON THIS FORM:
Any person who knowingly presents false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to
fines and confinement in state prison.
State of
(Insured Signature)
County of Insured
I
Subscribed and sworn to (or affirme5i) before me on this day of (month), (year) by
proved to me on the basis of satisfactory evidence to be
the person(s) who appear before me.
(signature of Notary)
McLarens File No.: 002.048948.00.J
Claim No: 6692409811US
20B-14
180 Montgomery Street, Suite 2100
San Franclxo, CA 94104-4231 USA
Tel +14153926034 w .mclarensxom
Fax +1415 392 0213
License #2607078
Inn MCGovem
Executive General Adjuster
Direct Dial tl 415 228 6424
Email: jim.mcgovern@mclarens.com
January 9, 2020
MEMORANDUM
tf McLarens
GLOBAL CLAIMS SERVICES
TO: Samantha M. Lambert, Risk Management Supervisor
SLambert@santa-ana.or
Human Resources
20 Civic Center Plaza
Santa Ana, CA 92701
FROM: Jim McGovern
Assistant Vice President, Executive General Adjuster
Re: Assured:
PEPIP/DEC 2/ City of Santa Ana
Date of Loss:
April 24, 2019
Location Involved:
1000 East Santa Ana Boulevard
Santa Ana, CA 92701
McLarens File No.:
002.049759.00.J
Dear Ms. Lambert:
We are writing to finalize the above -captioned claim. You may recall that we initially opened a claim at
the Santa Ana train station on February 5, 2019 specific to damages on the second floor. After further
review, it was determined necessary to open a second file to cover the third floor. The above -captioned
claim addresses that situation.
After review of the invoices as presented by AT] and EnviroCheck we have determined the loss to be
valued at $53,362.17 less your $10,000.00 deductible for a net final claim of $43,362.17. Attached is a
copy of the Final Statement of Loss and Final Proof of Loss. Please have the Final Proof of Loss executed
in the presence of a Notary Public and electronically returned to our office for additional processing and
funding. We thank you for your patience and realize this has been a complex loss and appreciate your
assistance. If you have any questions, please call us. Otherwise please return the executed document for
funding purposes.
Very truly yours,
20B-15
Page 2
CITY OF SANTA ANA
January 9, 2020
Jim McGovern
Assistant Vice President
Executive General Adjuster
JM/ct
ENCLOSURES:
1. Final Statement of Loss
2. Final Proof of Loss
McLarens File 002.049759.00.J
McLarens
20B-16
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20B.17
Amount of Policy SWORN STATEMENT Policy Number 0017471589
$ As per form In
Agency Name Alliant Insurance Services
FINAL PROOF OF LOSS
Issued Expues
July 1, 2018 July 1,19
TO Lexington I I urance Company
of Boston, Massachusetts
By the above indicated policy of insurance your insured PEPIP/DEC 2/ City of Santa Ana
against loss by all risk of physical damage upon the property described, according to the terms and conditions of the said
Conditions of the said policy and all forins, endorsements, transfers and assignments attached thereto.
1. Time and Origin: A loss occurred about the hour of o dock _ M., on the 24w day of April 20 19
The cause and origin of said loss were: Mold detected
2. Occupancy: The building described, or containing the property described, was occupied at the time of the loss as follows, and for
no other purpose whatever: 1000 East Santa Ana Boulevard, Santa Ana, CA 92701
1
3. Title and Interest: When this poli6 was acquired and at the time of the loss the interest of your insured in the property described
therein was sole and unconditional ownership, and no other person or persons had any interest therein or incumbrance thereon.
(State exceptions, if any.) NO EXCEPTIONS
4. Changes: Since the said policy was acquired there has been no assignment thereof, or change of ownership, use, occupancy,
Possession, location or exposure of the property described, or of our insured's interest therein. (State exceptions, if any.)
1 NO EXCEPTIONS
5. Total Insurance: The total mount of insurance upon the property described by this policy was, at the time of the loss,
6. The Cash Value of said property at the time of loss was...................................................................................... $ Not Determined
7. The Whole Loss and Damage was..I........................................................................................................................ $ 53,362.17
8. The Amount Claimed under the abc ve numbered policy ................................................................................... $ 43,362.17
(Amount claimed is net applicable $10,000.00 deductible)
The said loss did not originati by any act, design or procurement on the part 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 it void; no articles
are mentioned herein or in annexed schedules but such as were in the building damaged or destroyed , and belonging to, and in
possession of the said insured at the 'hare of said loss; no property saved has in any manner been concealed, and no attempt to deceive
the said company, as to the extent oflsaid loss, has in any manner been made. Any other information that may be required will be
furnished and considered as part of this proof.
The furnishing of this blank r the preparation of proofs by a representative of the above insurance company is not a waiver of
any of their rights.
FOR YOUR PROTECTION, CALIFORNIA LAW REQUIRES THE FOLLOWING TO APPEAR ON THIS FORM:
Any person who knowingly presents false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to
fines and confinement in state prison
State of
(Insured Signature)
County of Insured
I
Subscribed and sworn to (or affirmea) before me on this day of (month), (year) by
proved to me on the basis of satisfactory evidence to be
the person(s) who appear before me.
(signature of Notary)
McLarens File No.: 002.049759.00.J
Claim No.: 6692409811US
r1-