AGENDA REPORT
REQUEST FOR CITY COUNCIL ACTION
DATE: 10/17/2018
TO: Honorable Mayor and City Council Members
FROM: Legal and Risk Management
SUBJECT:
Title
City Council consideration of General Fund revenue increase for insurance proceeds in the amount of $63,630.26 from the City's property insurance carrier, Lexington Insurance Company, for reimbursement of water damages caused to the Police Department Report Writing Room on December 28, 2017.
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RECOMMENDED ACTION:
Recommended action
That the City Council:
1. Consider, accept and approve General Fund revenue increase for insurance proceeds in the amount of $63,630.26 from Lexington Insurance Company for damages caused to 730 Public Safety Way, Corona, CA on December 28, 2017; and
2. Authorize City Attorney/Legal & Risk Management Director to execute any documents necessary to effectuate the claim resolution with Lexington Insurance Company.
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ANALYSIS:
Due to water seepage from under the flooring in the Police Department's report writing room located at 730 Public Safety Way, the flooring was damaged and mold developed. Accordingly, the flooring and concrete subsurface had to be replaced and repaired, mold was remediated and required painting was performed.
The City's property insurance policy covers replacement cost of the damaged and destroyed property at covered locations.
The City filed a claim for reimbursement as follows:
$36,730.00 to Moore Flooring for replacement of the concrete subsurface & flooring.
$31,030.26 to Belfor for mold remediation and wall painting
$870.00 to EnviroCheck for obtaining mold samples and preparing a report.
Thus, the total cost was $68,630.26.
After deducting the City's Property deductible of $5,000, $63,630.26 is the recommended amount to settle the claim.
COMMITTEE ACTION:
Not applicable.
STRATEGIC PLAN:
Not applicable.
FISCAL IMPACT:
The insurance proceeds of $63,630.26 will increase General Fund revenues and help to offset t...
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