The Borough Manager of the Borough of Dormont or such official's
designee is hereby appointed as the designated officer who is authorized
to carry out all responsibilities and duties stated herein.
No insurance company, association or exchange (hereinafter the
"insuring agent") doing business in the Commonwealth of Pennsylvania
shall pay a claim of a named insured or fire damage to a structure
located within the Borough of Dormont (hereinafter the "Borough")
where the amount recoverable for the fire loss to the structure under
all policies exceeds $7,500, unless the insuring agent is furnished
by the Borough Manager with a municipal certificate pursuant to Section
508(b) of Act 98 of 1992, and unless there is compliance with Section
508(c) and (d) of Act 98 of 1992 and the provisions of this chapter.
Where, pursuant to Section 508(b)(1)(i) of Act 98 of 1992, the Borough Manager issues a certificate indicating that
there are no delinquent taxes, assessments, penalties or use charges
against real property, the insuring agent shall pay the claim of the
named insured; provided, however, that if the loss agreed upon by
the named insured and the insuring agent equals or exceeds 60% of
the aggregate limits of liability on all fire policies covering the
building or structure, the following procedures must be followed:
A. The insuring agent shall transfer from the insurance proceeds to
the designated officer of the Borough in the aggregate of $2,000 for
each $15,000 of a claim and for each fraction of that amount of a
claim, this section to be applied such that if the claim is $15,000
or less, the amount transferred to the Borough shall be $2,000; or
if, at the time of a loss report agreed to between the named insured
and the insuring agent, the named insured has submitted a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structures in an amount less than the amount calculated
under the foregoing transfer formula, the insuring agent shall transfer
to the Borough from the insurance proceeds the amount specified in
the estimate.
B. The transfer of proceeds shall be on pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
C. After the transfer, the named insured may submit a contractor's
signed estimate of the costs of removing, repairing or securing the
building or other structure, and the designated officer shall return
the amount of the funds transferred to the Borough in excess of the
estimate to the named insured if the Borough has not commenced to
remove, repair or secure the building or other structure.
D. Upon receipt of proceeds under this section, the Borough shall do
the following:
(1) The designated officer shall place the proceeds in a separate fund
to be used solely as security against the total costs of removing,
repairing or securing the building or structure which are incurred
by the Borough. Such costs shall include, without limitation, any
engineering, legal or administrative costs incurred by the Borough
in connection with such removal, repair or securing of the building
or any proceedings related thereto.
(2) It is the obligation of the insuring agent when transferring the
proceeds to provide the Borough with the name and address of the named
insured. Upon receipt of the transferred funds and the name and address
of the named insured, the designated officer shall contact the named
insured, certify that the proceeds have been received by the Borough
and notify the named insured that the procedures under this subsection
shall be followed.
(3) When repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable regulations
and orders of the Borough and the required proof of such completion
received by the designated officer, and if the Borough has not incurred
any costs for repairs, removal or securing, the funds shall be returned
to the named insured. If the Borough has incurred costs for repairs,
removal or securing of the building or other structure, the costs
shall be paid from the fund, and if excess funds remain, the Borough
shall transfer the remaining funds to the named insured.
(4) To the extent that interest is earned on proceeds held by the Borough
pursuant to this section and not returned to the named insured, such
interest shall belong to the Borough. To the extent that proceeds
are returned to the named insured, interest earned on such proceeds
shall be distributed to the named insured at the time that the proceeds
are returned.
E. Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency. Furthermore, nothing in this
subsection shall be construed to prohibit the Borough and the named
insured from entering into an agreement that permits the transfer
of funds to the named insured after some other reasonable disposition
of the damaged property has been negotiated.
The Borough Council may by resolution adopt procedures and regulations
to implement Act 98 of 1992 and this chapter and may, by resolution, fix reasonable
fees to be charged for municipal activities or services provided pursuant
to Act 98 of 1992 and this chapter, including but not limited to issuance
of certificates and bills, performance of inspections and opening
separate fund accounts.
Any person who violates or permits a violation of this chapter
shall, upon conviction in a summary proceeding under the Pennsylvania
Rules of Criminal Procedure, be guilty of a summary offense and shall
be punishable by a fine of not more than $1,000, plus court costs
and reasonable attorneys' fees incurred by the Borough in the enforcement
proceedings. Upon judgment against any person by summary conviction,
or by proceedings by summons on default of the payment of the fine
or penalty imposed and the costs, the defendant may be sentenced and
committed to the Borough correctional facility for a period not exceeding
10 days or to the county correctional facility for a period not exceeding
30 days. Each day that such violation exists shall constitute a separate
offense, and each section of this chapter that is violated shall also
constitute a separate offense. In addition to or in lieu of enforcement
under this section, the Borough may enforce this chapter in equity
in the Court of Common Pleas of Allegheny County. The imposition of
a penalty shall not excuse the violation or permit it to continue.