[HISTORY: Adopted by the Borough Council of the Borough of Brentwood 3-23-2010 by Ord. No. 1186. Amendments noted where applicable.]
The Borough Manager of the Borough of Brentwood, 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 for fire damage to a structure located within the Borough of Brentwood (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 § 638(b) of the Insurance Company Law, as amended, and unless there is compliance with the provisions of this article.
Where, pursuant to § 638(b)(l)(ii) of the Insurance Company Law, as amended, the Borough Manager is requested to issue a certificate to the insuring agent regarding property that is subject to delinquent taxes, assessments, penalties and/or user charges, the Borough Manger shall issue such certificate along with a bill showing the amount of delinquent taxes, assessments, penalties and/or user charges against the subject property that have not been paid as of the date of the Borough Manager's certificate and also showing, as of the date of the Borough Manager's certificate, the amount of the total costs, if any, certified to the Borough Manager as having been incurred by the Borough for the removal, repair or securing of a damaged building or other structure on the property.
The Borough shall be responsible for certifying to the Borough Manager any such costs incurred by the Borough for removal, repair or securing of a damaged building or other structure on the property.
The insuring agent shall, upon receipt of such certificate and bill, return the bill to the Borough Manager and transfer to the Borough Manager an amount from the insurance proceeds necessary to pay the taxes, assessments, penalties, charges and costs as shown on the bill.
The Borough shall, upon receipt of such amount, apply or credit the amount to payment of the items shown on the bill.
Where, pursuant to § 638(b)(1)(i) of the Insurance Company Law, the Borough Manager or his assignee issues a certificate indicating that there are no delinquent taxes, assessments, penalties or user 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 restructures, the following procedures must be followed:
The insuring agent shall transfer from the insurance proceeds to the Borough Manager an amount in the aggregate of $2,000 for each $15,000 of a fire loss claim and for each fraction thereof; however, if the amount of such claim is $15,000 or less, the amount transferred to the Borough shall be $2,000; or if, at the time of a proof of loss agreed to between the named insured and the insuring agent, the named insured has submitted a contractor's signed estimate of the cost of removing, repairing, or securing the building or other structures, the insuring agent shall transfer to the Borough from the insurance proceeds the amount specified in the estimate.
The transfer of proceeds shall be on pro rata basis by all companies, associations or ex-changes insuring the building or other structure.
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 Borough Manager 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.
Upon receipt of proceeds under this section, the Borough shall do the following:
The Borough Manager 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.
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 Borough Manager 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.
When repairs, removal or securing of the building or other structures have been completed in accordance with all applicable regulations and orders of the Borough and the required proof of such completion received by the Borough Manager, 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.
Any interest earned on proceeds held by the Borough that are not returned to the named insured shall belong to the Borough. Any interest earned on proceeds that are returned to the named insured shall be distributed to the named insured at the time said proceeds are returned.
Nothing in this section shall be construed to limit the ability of the Borough to recover any deficiency. Furthermore, nothing in this section 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 Section 638 of the Insurance Company Law and this chapter and may, by resolution, fix reasonable fees to be charged for municipal activities or services provided pursuant to Section 638 of the Insurance Company Law 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 any of the provisions of this chapter shall be required to pay a fine of not more than $1,000 upon conviction thereof before a District Justice and, upon failure to pay the same, upon conviction, shall be imprisoned for a period of not more than 30 days. Each day's violation shall constitute a separate offense. The imposition of a penalty shall not excuse the violation or permit it to continue.
All ordinances or parts of ordinances conflicting with any of the provisions of this chapter are hereby repealed in so far as they affect this chapter.
The provisions of this chapter shall take effect 30 days from the date of enactment.