[HISTORY: Adopted by the Borough Council of the Borough of
Kenhorst as indicated in article histories. Amendments noted where
applicable.]
GENERAL REFERENCES
Emergency services — See Ch. 214.
[Adopted 12-5-2013 by Ord. No. 559]
The Borough seeks to continue with the implementation of its
blight reduction program to include an ordinance for the payment of
insurance proceeds to the Borough for loss control and other purposes
as set forth in this article.
The Borough Manager or such other duly authorized representatives
of the Borough as the Borough Council may designate 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 Kenhorst 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 Treasurer with a municipal
certificate pursuant to Section 508(b) of Act 98 [40 P.S. § 638(b)]
and unless there is compliance with the procedures set forth in Section
508(c) and (d) of Act 98 [40 P.S. § 638(c) and (d)] and
the provisions of this article. Any request to the Borough Treasurer
for a municipal certificate shall be in writing.
A.
Upon the written request of the named insured specifying the tax
description of the property, the name and address of the insuring
agent and the date of receipt by the insuring agent of a loss report
of the claim, the Borough Manager or other duly authorized representative
of the Borough shall furnish, in writing, within 14 business days
after the request of the named insured, either:
B.
For the purpose of this article, a tax, assessment, penalty or other
user charge becomes delinquent at the time and on the date the lien
could otherwise have been filed against the property by the Borough
under applicable law.
C.
If the Borough issues a certificate in accordance with § 272-4A(2) of this chapter, then the insuring agent shall transfer to the Borough Treasurer an amount from the insurance proceeds sufficient to pay all delinquent taxes, assessments, penalties and user charges against the property and all expenses the Borough has incurred for costs of removal, repair or securing of a building or other structure on the property prior to making payment to the named insured, subject to the provisions of § 272-6 hereof.
D.
If the Borough issues a certificate indicating that there are no
delinquent taxes, assessments, penalties or user charges against the
property, then, upon receipt of the Municipal Certificate, 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 other structure, compliance
with the following procedures shall be required:
(1)
The insuring agent shall transfer to the Borough Manager from the
insurance proceeds in the aggregate $2,000 for each $15,000 of a claim,
and for each fraction of that amount of the 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
(2)
If at the time of the loss report of the claim, as 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 structure, the insuring agent shall
transfer to the Borough from the insurance proceeds the amount specified
in the estimate.
(3)
Within 60 days of the transfer of the proceeds to the Borough, the
named insured may submit to the Borough a contractor's signed
estimate of the costs of removing, repairing or securing the building
or other structure and, provided the Borough has not commenced to
remove, repair or secure the building or other structure, the Borough
Manager shall return to the named insured the amount of the funds
transferred to the Borough in excess of the estimate.
E.
The transfer of proceeds shall be on a pro rata basis by all companies,
associations or exchanges insuring the building or other structures.
Policy proceeds remaining after the transfer to the Borough shall
be disbursed in accordance with the policy terms.
A.
Upon the receipt of fire loss proceeds under § 272-4D and E above, the Borough shall acknowledge in writing that the following procedure shall be followed and proceed by:
(1)
The Borough Manager shall place the proceeds in a separate fund to
be used solely as security against the total costs incurred by the
Borough for removing, repairing, or securing the building or structure.
Such costs include, without limitation, any engineering, legal, professional
fees 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 to the Borough 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 set forth in this
section shall be followed;
(3)
When the repairs, removal or securing of the building or other structure
have been completed in accordance with all applicable ordinances,
codes, regulations and legal requirements of the Borough and the required
proof of such completion in form and substance satisfactory to the
Borough has been received by the Borough Manager, and if the Borough
has not incurred any costs for repairs, removal or securing, the fund
shall be returned to the named insured. If the Borough has incurred
costs for repairs, removal or securing of the building or other structure,
such costs shall be paid from the fund and, if excess funds remain,
the Borough shall transfer the remaining funds to the named insured;
and
(4)
To the extent that interest is earned on the proceeds held by the
Borough pursuant to this article, 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 the proceeds
are returned.
B.
Nothing in this section shall be construed to limit the ability of
the Borough to recover any deficiency in the amount of municipal claims
or municipal expenses recovered pursuant to this article, or to insurance
proceeds, by an action at law or in equity to enforce the Borough's
ordinances. Furthermore, nothing in this article 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
if some other reasonable disposition if the damaged property, as determined
by the parties, has been negotiated.
An insurance company, association or exchange making payments
of policy proceeds under this article for delinquent taxes or structural
removal of liens or removal expenses insured by the Borough of Kenhorst
shall have full benefit of such payment, including all rights of subrogation
and of assignment.
The Borough Council may, by resolution adopt procedures and
regulations to implement Act 98,[1] as amended, and this article and may by resolution fix
reasonable fees to be charged for activities or services provided
by the Borough pursuant to Act 98 and this article, 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.
Nothing in this article shall be construed to make an insurance
company, association or exchange liable for any amount in excess of
proceeds payable under its insurance policy or for any other act performed
pursuant to this article or to make the Borough or any public official
of the Borough an insured under a policy of insurance or to create
an obligation to pay delinquent property taxes or unpaid removal of
liens or expenses other than provided by this article.
The provisions of this article shall be liberally construed
to accomplish its purpose to deter the commission of arson and related
crimes, to discourage the abandonment of property and to prevent urban
blight and deterioration and to assure the payment of municipal expenses.
The Borough Manager of Kenhorst Borough shall transmit a certified
copy of this article and the information required by 40 P.S. § 638(i)
promptly to the Pennsylvania Department of Community and Economic
Development.
The failure of the Borough to enforce any provision of this
article shall not constitute a waiver by the Borough of its rights
of future enforcement hereunder.
