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HomeMy WebLinkAboutOrdinance 22270-06-2016 ORDINANCE NO.22270-06-2016 AN ORDINANCE INCREASING THE ESTIMATED RECEIPTS AND APPROPRIATIONS IN THE RISK FINANCING FUND IN THE AMOUNT OF $13,000,000.00, FROM AVAILABLE FUNDS, FOR THE PURPOSE OF COMMERCIAL INSURANCE RECOVERY PERTAINING TO MULTIPLE CITY PROPERTIES DAMAGED DURING A HAIL STORM ON MARCH 17, 2016; PROVIDING FOR A SEVERABILITY CLAUSE; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL ORDINANCES IN CONFLICT HEREWITH;AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2015-2016 in the Budget of the City Manager,there shall also be increased estimated receipts and appropriations in the Risk Financing Fund in the amount of $13,000,000.00, from available funds, for the purpose of commercial insurance recovery pertaining to multiple City properties being damaged during a hail storm on March 17, 2016. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and effect. SECTION 3. That this ordinance shall be cumulative of Ordinance No. 21873-09-2015 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shall take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: Will Trevino,Assistant City Attorney Mary J. yser, ity k1cretary ADOPTED AND EFFECTIVE:June 14,2016 Ordinance No. 22270-06-2016 Page 1 of 1 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 611412016 - Ordinance No. 22270-06-2016 DATE: Tuesday, June 14, 2016 REFERENCE NO.: G-18757 LOG NAME: 142016HAILSTORM SUBJECT: Authorize Payment for Repairs in the Amount Up to $13,000,000.00 for Hail Damage to Multiple City Properties, Occurring March 17, 2016 and Adopt Appropriation Ordinance for Commercial Insurance Recovery in the Amount of$13,000,000.00 (ALL COUNCIL DISTRICTS) RECOMMENDATION: It is recommended that the City Council: 1. Adopt an appropriation ordinance increasing estimated receipts and appropriations in the Risk Financing Fund in the amount of$13,000,000.00; and 2. Authorize the payment for repairs to multiple City properties in the amount up to $13,000,000.00. DISCUSSION: During a hail storm on March 17, 2016, multiple City properties were damaged. Damages are determined to total in excess of$13,000,000.00. Repair costs are covered by the City's commercial property insurance, subject to a $250,000.00 deductible. Each year, funds are budgeted in the Risk Financing Fund to pay for incurred expenditures that fall within the policy deductible for property damage claims covered by the City's commercial insurance. When a claim exceeds the policy deductible, commercial insurance recoveries are deposited to the Risk Financing Fund for appropriation. A partial claim payment of$2,500,000.00 was received from RSUI Indemnity Company on April 26, 2016. An additional claim payment in the amount of$10,500,000.00 is expected by the City upon completion of damage evaluation and estimates on repair costs. The estimation of repair costs was completed on May 31, 2016. The City will make payment for repairs on multiple City properties upon completion of repairs based on actual cost. This M&C does not request approval of a contract with a business entity. FISCAL INFORMATION /CERTIFICATION: The Director of Finance certifies that upon approval of the attached appropriation ordinance, funds will be available in the current operating budget, subject to receipt, in the Risk Financing Fund. Logname: 142016HAILSTORM Page 1 of 2 FUND IDENTIFIERS (FIDsj: TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year Chartfield 2 301001 0147140 4960111 P00079 2016 $13,000,000.00 1301001 0147140 P00079 2016 $13,000,000.00 FROM Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2 30100 0147140 P00079 2016 $13,000,000.00 CERTIFICATIONS: Submitted for City Manager's Office by_ Susan Alanis (8180) Originating Department Head: Brian Dickerson (7783) Additional Information Contact: Mark Barta (7790) Logname: 142016HAILSTORM Page 2 of 2