[HISTORY: Adopted by the City Council of the City of Warren 10-11-1993 by Ord. No.
1570 (Ch. 1, Part 9, of the 1997 Code of Ordinances).
Amendments noted where applicable.]
The Mayor, or such official's designee, is hereby appointed
as the designated officer who is authorized to carry out all responsibilities
and duties stated herein.
[Amended 1-9-1995 by Ord. No. 1585]
A.
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 City of Warren (hereinafter "municipality") where the amount
recoverable for the fire loss to the structure under all policies
exceeds $7,500, unless the named insured or insuring agent is furnished
by the City Treasurer with a City certificate pursuant to § 508(B)
of Act 93 of 1994[1] and unless there is compliance with § 508(C)
and (D) of Act 93 of 1994 and the provisions of this chapter.
[1]
Editor's Note: See 40 P.S. § 638.
B.
Where, pursuant to § 508(B) (1) (I) of Act 93 of 1994,
the City Treasurer issues a certificate indicating that there are
no delinquent taxes, assessments, penalties or user charges against
the real property, the insuring agent shall pay the claim of the named
insured; provided, however, that if the loss as 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
restructure, the following procedures must be followed:
(1)
The insuring agent shall transfer from the insurance proceeds to
the designated officer of the City in the aggregate $2,000 for each
$15,000 of 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 City shall be $2,000.
(2)
If at the time of a loss report the named insured has submitted a
contractor's signed estimate of the costs of removing, repairing
or securing the building or other structure in an amount less than
the amount calculated under the foregoing transfer formula, the insuring
agent shall transfer to the City from the insurance proceeds the amount
specified in the estimate.
(3)
The transfer of proceeds shall be on pro rata basis by all companies,
associations or exchanges insuring the building or other structure.
(4)
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 City in excess of the estimate
to the named insured, if the City has not commenced to remove, repair
or secure the building or other structure.
(5)
Upon receipt of proceeds under this section, the City shall do the
following:
(a)
The designated officer shall place the proceeds in the 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 City. Such costs shall include, without limitation, any engineering,
legal or administrative costs incurred by the City in connection with
such removal, repair or securing of the building or any proceedings
related thereto.
(b)
It is the obligation of the insuring agent when transferring
the proceeds to provide the City 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 City, and notify the named insured that the procedures under this
subsection shall be followed.
(c)
When repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable regulations
and orders of the City and the required proof of such completion received
by the designated officer, and if the City has not incurred any costs
for repairs, removal or securing, the fund shall be returned to the
named insured. If the City 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 City shall transfer
the remaining funds to the named insured.
(d)
To the extent that interest is earned on proceeds held by the
City pursuant to this section and not returned to the named insured,
such interest shall belong to the City. 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.
(6)
Nothing in this section shall be construed to limit the ability of
the City to recover any deficiency. Furthermore, nothing in this subsection
shall be construed to prohibit the City and the named insured from
entering into an agreement that permits the transfer of funds to the
named insured if some other reasonable disposition of the damaged
property has been negotiated.
[Amended 1-9-1995 by Ord. No. 1585]
The Council may, by resolution, adopt procedures and regulations
to implement Act 93 of 1994[1] and this chapter and may, by resolution, fix reasonable
fees to be charged for City activities or services provided pursuant
to Act 93 of 1994 and this chapter, including, but not limited to,
issuance of certificates and bills, performance of inspections and
opening separate fund accounts.
[1]
Editor's Note: See 40 P.S. § 638.
[Amended 12-8-1997 by Ord. No. 1622]
Any person, firm or corporation who shall violate any provision
of this chapter shall, upon conviction thereof, be sentenced to pay
a fine not to exceed $1,000 plus costs and, in default of payment
of said fine and costs, to a term of imprisonment not to exceed 30
days. Each day on which a violation shall continue shall be deemed
a separate offense.
