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Risk Management recommending the Board accept a claim settlement for approximately $567,031 under the County’s property liability insurance program with the California State Association of Counties Excess Insurance Authority for reimbursement of costs associated with the County’s emergency generator replacement project and authorize the Assistant Chief Administrative Officer to sign a Final Proof of Loss for the County’s claim for insurance benefits with Lexington policy No. EIAPPR 09-12.
FUNDING: Insurance proceeds and Accumulative Capital Outlay Funds.
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BUDGET SUMMARY:
Total Estimated Cost…………… $798,628
Insurance Proceeds…….......…. $567,031
County Share of Cost..……… $231,597
Fiscal Impact/Change to Net County Cost
Total project costs of $798,628 were incurred in prior fiscal years. Insurance proceeds will be distributed to the Accumulative Capital Outlay Fund to reimburse the County for costs incurred.
Background
On December 9, 2009 a snow storm disrupted power to Building B. The emergency generator was subsequently engaged and remained in use for a number of days to ensure a stable power supply to the building until regular power service was restored and stabilized. On December 16, 2009 the generator engine catastrophically failed and suffered irreparable damage.
The County has subsequently replaced the emergency generator for Building B and upgraded the generator system for the Government Center to provide new sources of backup power for Building A, Central Dispatch and the Data Room. The generator project is now complete at a total cost of $798,628.
This type of event is insurable and a claim was submitted under the County’s property insurance program through the California State Association of Counties Excess Insurance Authority (CSAC-EIA). The coverage provided is subject to a $1,000 boiler and machinery deductible.
Risk Management initially submitted a settlement demand to the insurance carrier for all charges associa...
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