TRANSMITTAL LETTER FOR BOARD MEETING OF DECEMBER 19, 2019
COMMITTEE ON JUDICIARY
Mr. Brian Perkovich, Executive Director
Title
Authority to settle the Property Loss Claim of Becky and Michael Elrad, Claim # AP 1388, in the sum of $619,596.85, arising out of the April 28, 2016 Glencoe Sewer Event, Account 901-30000-667220 (Deferred from the December 5, 2019 Board Meeting)
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Dear Sir:
On April 28, 2016 at approximately 4:00 a.m., the District was notified that a local sewer adjacent to the District manhole that was undergoing emergency repairs was overwhelmed due to an overnight storm. Four homes near the site of this repair work experienced damage from sewer backup. Although no personal injuries were reported for this event, there were some damages to the homes and personal property located inside the homes.
Becky and Michael Elrad, the owners of a single family dwelling at 219 Lincoln Drive, Glencoe, Illinois, sustained damages to their property. The Elrad’s worked with their homeowners insurance company, Bankers Standard Insurance Company, to handle and pay for their claim for damages to their home.
Subsequently, Bankers Standard Insurance Company, through their counsel, presented a subrogation demand with supporting documentation to the District. The demand and documentation were carefully reviewed for appropriateness and accuracy. Negotiations between the parties, including the District’s insurance carrier AIG/Lexington Insurance Company (AIG), resulted in an agreement on the amount required to settle this claim.
The recommended settlement for this claim is in excess of the $1,000,000.00 per occurrence self-insured retention on the District’s insurance policy in effect on the date of loss. The amount of the self-insured retention has been eroded by the payment of the three prior claims and the cost for valuation of the damage for all four claims by McLarens, Inc.
The District is now responsible for payment of $619,596.85, which is the remaining amount of the District’s self-insured retention under its Excess Casualty insurance.
The amount of the settlement in excess of $619,596.85 will be paid by AIG.
The Director of Human Resources believes this settlement is in the best interest of the District and requests that payment in the amount of $619,596.85 to Becky M. Elrad Declaration of Trust and Bankers Standard Insurance Company, through their counsel be approved and that she be authorized to execute such documents as may be necessary to effect the settlement.
Requested, Beverly K. Sanders, Director of Human Resources, BKS:RAJ:RG
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for December 19, 2019