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38. SETTLEMENT AGREEMENT RELATED TO HAIL DAMAGE TO COUNTY FACILITIES Approve the buyout settlement agreement with Travelers Indemnity Company in the amount of $1,877,505.06 for minor storm damaged items due to the hail storm event on October 12, 2010.These items continue to operate and function as required - damage is merely cosmetic. Each of the items in the buyout catalog has been assessed and inspected by Facilities Management personnel. In total, Travelers will pay Maricopa County $1,877,505.06 to comprehensively settle, and close out, all claims for any damage resulting from the hail storm event. The Buyout Agreement resolves, in total, the hail storm damage claim originally filed with Travelers Indemnity Company in October 2010. A complete list of all items damaged by the storm event and included in the settlement is attached. A great deal of repair and replacement work has occurred in the multiple locations, buildings, and properties owned by the County since the storm event. However, in the interest of saving both time and money for both parties, Travelers and the County have agreed to settle the costs of the repairing all remaining items. The parties have created a catalog of all the items that were damaged by the event and included in the settlement. Many of the items in the catalog were repaired and/or replaced, but some were not, as these items continue to operate and function as required - damage to these items is merely cosmetic. Each of the items in the buyout catalog has been assessed and inspected by Facilities Management personnel. A complete list of all items damaged by the storm event and included in the claim, are contained in the Hail Storm Buyout Catalog and attached. The buyout catalog lists the item; the reason for the buyout; the cost; the retail cash value (RCV); the agreed upon 30% depreciation of the RCV; and the resulting actual cash value (ACV) to be paid by Travelers. In total, Travelers will pay Maricopa County $1,877,505.06 to comprehensively settle, and close out, all claims for any damage resulting from the hail storm event. If items in the buyout catalog are damaged in a future event, Travelers will cover the loss if the damage necessitates replacement of the item. However, if the damage does not require replacement, for example is merely cosmetic or the item can be repaired, Travelers will not cover it as a loss under the policy and repairs are the responsibility of the County. The buyout is a cost-effective and efficient method to close out large, multifaceted claims and benefit both the insurance company and the insured. (C-70-14-005-M-00)

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