HomeMy WebLinkAbout194-16 RESOLUTIONpk F4rt ��fi
a i
�f
�R r
�yn'R,r:S k4
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 194-16
File Number: 2016-0478
LEXINGTON INSURANCE COMPANY:
A RESOLUTION TO AUTHORIZE ACCEPTANCE OF INSURANCE PROCEEDS IN THE AMOUNT
OF $457,925.07 FROM LEXINGTON INSURANCE COMPANY FOR NECESSARY REPAIR WORK
ON BUILDINGS LOCATED AT THE FAYETTEVILLE EXECUTIVE AIRPORT AS A RESULT OF
HAIL DAMAGE, AND TO APPROVE A BUDGET ADJUSTMENT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the
acceptance of insurance proceeds in the amount of $457,925.07 from Lexington Insurance Company for
necessary repair work on buildings located at the Fayetteville Executive Airport as a result of hail damage.
Section 2: That the City Council of the City of Fayetteville, Arkansas
adjustment, a copy of which is attached to this Resolution.
PASSED and APPROVED on 11/1/2016
Attest:
hereby approve 11' jpudget
ter•`; % C-1 Y (a,'�`%''.
F YE Evil
Sondra E. Smith, City Clerk Treasurer
Page 1 Printed on 11/2/16
City of Fayetteville, Arkansas 113 West Mountain Street
f Fayetteville, AR 72701
~X (479) 575-8323
�rt
:z
Text File
File Number: 2016-0478
Agenda Date: 11/1/2016 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 4
LEXINGTON INSURANCE COMPANY:
A RESOLUTION TO AUTHORIZE ACCEPTANCE OF INSURANCE PROCEEDS IN THE
AMOUNT OF $457,925.07 FROM LEXINGTON INSURANCE COMPANY FOR NECESSARY
REPAIR WORK ON BUILDINGS LOCATED AT THE FAYETTEVILLE EXECUTIVE AIRPORT
AS A RESULT OF HAIL DAMAGE, AND TO APPROVE A BUDGET ADJUSTMENT
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the acceptance
of insurance proceeds in the amount of $457,925.07 from Lexington Insurance Company for necessary
repair work on buildings located at the Fayetteville Executive Airport as a result of hail damage.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget
adjustment, a copy of which is attached to this Resolution.
City of Fayetteville, Arkansas Page 1 Printed on 111212016
Andrea Rennie
Submitted By
City of Fayetteville Staff Review Form
2016-0478
Legistar File ID
11/1/2016
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
10/14/2016 Purchasing /
Finance & Internal Services Department
Submitted Date Division / Department
Action Recommendation:
Staff recommends the City accept insurance funds from Lexington Insurance Company in the amount of
$457,925.07 for related hail damages occurring on five buildings located at the Fayetteville Executive Airport and
approve a budget adjustment.
Original Contract Number: Approval Date:
Comments:
Budget Impact:
5550.760.3960-5400.00
Airport
Account Number
Fund
13025.1602
Airport Roof Replacements
Project Number
Project Title
Budgeted Item? No
Current Budget
$
164,727.00
Funds Obligated
$
14,500.00
Current Balance
$
Does item have a cost? No
Item Cost
—�
y150,227,€30
Budget Adjustment Attached? Yes
Budget Adjustment
$
457,627.00
Remaining Budget
6.,, ._. ..�
V20140710
Previous Ordinance or Resolution #
Original Contract Number: Approval Date:
Comments:
CITY OF
Fay%r
t—leY CITY COUNCIL AGENDA MEMO
AANSAS
MEETING OF NOVEMBER 01, 2016
TO: Mayor Lioneld Jordan and Fayetteville City Council
THRU: Paul A. Becker, Chief Financial Officer
FROM: Andrea Rennie, Purchasing Manager
DATE: Friday, October 14, 2016
SUBJECT: Approval of accepting insurance funds for roof related damages
RECOMMENDATION:
Staff recommends the City accept insurance funds from Lexington Insurance Company in the
amount of $457,925.07 for related hail damages occurring on five buildings located at the
Fayetteville Executive Airport and approve a budget adjustment.
BACKGROUND:
The Fayetteville Executive Airport experienced hail damage on May 09, 2015. After extensive
teamwork by City staff, research efforts from Garver Engineers, and great efforts from the City's
insurance broker, HUB International, Lexington Insurance Company has acknowledged the City
experienced a loss in the amount of $482,927.07_
Lexington Insurance Company will be compensating the City for the following:
RCV Building loss (5 locations):
$457,925.07
Compensation for Professional Fees:
+$ 25,000.00
Less Wind/Hail Deductible:
- $ 25,000.00
Total Funds to be Received
=$457,925.07
DISCUSSION:
In 2015, Lexington Insurance Company stated damages were under the deductible amount of
$25,000. After consulting with Garver Engineers, the City and HUB International went back to
Lexington to dispute the amount of damages. After months of diligent efforts, Lexington agreed
the City experienced hail damage to the following five buildings located at the Fayetteville
Executive Airport: Terminal Building, FBO Hangar, FAA Building, Old Terminal Building, and the
Air Museum.
The City intends to retain Garver Engineers, as the City's selected engineer for the Airport to
develop a bid package identifying the scope of work for the repairs. After the bid package is
complete, Purchasing will bid out the repair work associated with the damages from the hail storm.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701