Minnehaha County Board of Commissioners Jean Bender, Chairman Dean Karsky, Vice Chairman Jeff Barth, Commissioner Gerald Beninga, Commissioner Cindy Heiberger, Commissioner May 5, 2020 TO: Minnehaha County Commissioners FROM: Carol Muller, Commission Administrative Officer RE: Settlement on Community Corrections Center Fire ACTION REQUESTED: Approve Insurance Proceeds of $951,669.90 for Loss and Business Interruption on the Community Corrections Center Fire and Authorize Recording these Proceeds to the Building Fund On September 16, 2018, the Community Corrections Center (CCC) experienced a fire, resulting in substantial damage to the facility. This memo is a summary of the settlement offer by Traveler’s Insurance for both the building and business income loss. Attached to this document are the cover sheet for the Business Interruption settlement and the Statement of Loss settlement. Todd Flickema and Ryan Gebauer from the Silverstone Group will summarize the settlement at Tuesday’s Commission meeting. The settlement offered is for $951,669.90, with Business Interruption being $140,771.71. Business Interruption includes loss of revenue for bed rentals, rental of beds in other counties for Minnehaha County inmates, and travel to and from these other county jails. The Statement of Loss reflects payment for depreciation of $88,904.35 and the $25,000 deductible. I appreciate the work of the jail staff in documenting the Building Interruption expenses and Mark Kriens from Facilities for numerous meetings with contractors to obtain replacement costs. The Auditor’s Office is requesting authorization to deposit the proceeds to the Building Fund. Please let me know of any questions you may have. Cc: Sheriff Mike Milstead Ryan Gebauer, Silverstone Todd Flickema, Silverstone Bob Litz/Kim Adamson, Auditor’s Office #VALUE! Insured: Policy #: Underwriting Co: Claim #: Eff. Dates: Date of Loss: Loss Location: Minnehaha County HJ630-3F023077 Travelers Property Casualty Company of America FDH2863 1/1/18-1/1/19 9/16/2018 1900 W Russell St, Sioux Falls, SD Completed By: Jeff Heywood Date: 5.1.20 Statement of Loss Coverage: BUILDING Policy Limit: Sub Limits: Coinsurance %: ####### Item: Deprec. Amount RCV Building RCV Incurred Costs Claim Data Coverage Totals $793,820.39 15,677.80 $ 1,400.00 $810,898.19 Deductible $ 25,000.00 $ $ $ 785,898.19 100,000.00 685,898.19 Net Loss and Payable Net Loss and Payable $ $ $ Comments ACV $0.00 - - $793,820.39 $15,677.80 $1,400.00 $ 810,898.19 $ 25,000.00 $ $ $ 785,898.19 100,000.00 685,898.19 Coverage: Contents Policy Limit: Sub Limits: Coinsurance %: Item: RCV $2,403.27 BPP Coverage Totals Gross Loss Net Loss and Payable $ Comments ACV $2,403.27 - $ 2,403.27 $ - $ 2,403.27 $ 2,403.27 $ - $ 2,403.27 $ 2,403.27 $ 2,403.27 Coverage: Business Income & Extra Expense Policy Limit: Sub Limits: Coinsurance %: Item: Income/EE Coverage Totals Deprec. Amount Comments Value $140,771.71 $ 140,771.71 Gross Loss Net Loss and Payable $ 140,771.71 $ 140,771.71 Total Net Loss and Payable $ 829,073.17 $ - $ 829,073.17 Page 1 Business Income & Extra Expense Schedule 1: Summary This template/workbook is the property of Travelers and use by anyone not employed by Travelers is prohibited. Schedules from this template may be shared with insureds/claimants12:00 doing business with Travelers during the-claims process for the purposes of discussion and analysis only. No AM 12:00 AM guarantees accompany these schedules, and their use does not constitute an offer of settlement. Permission to use the template does not include permission to change the basic design, operation or format of it. Insured Name Minnehaha County Insuring Company Policy Number Policy Dates Travelers Property Casualty Company of America HJ630 - 3F023077 01/01/2018 - 01/01/2019 Claim Number FDH2863 Claim Professional Jeffrey Heywood BII Limit Date and Time of Loss Date and Time P.O.R. Ends Time Deductible Calculation Period: Calculation Period No. of Days Calculation Period No. of Work Days Category Bed Rental Income Date: Date: Hours: From: Claimed by Insured (A) $1,000,000.00 9/16/2018 4/30/2019 72.00 9/19/2018 224.00 224.00 Difference Through: 4/30/2019 Adjusted for Deductible Travelers Accounting Schedule $16,307.54 $16,307.54 #2 $11,647.45 ($1,084.28) $10,563.17 #3 $4,691.58 ($421.58) $4,270.00 #4 Extra Expense - Housing $121,665.00 ($12,166.50) $109,498.50 #5 Extra Expense - Medical $2,303.11 ($2,303.11) $0.00 #6 Extra Expense - Misc. $5,999.77 ($5,867.27) $132.50 #7 $146,306.90 ($5,535.20) $140,771.71 Extra Expense - Staffing Extra Expense - Trip Mileage Total (A) Detailed data was provided by no specific claimed amount identified.