TRAVELERS HAIL STORM BUYOUT AGREEMENT.DOC

HAIL STORM BUYOUT SETTLEMENT AGREEMENT
This Settlement Agreement ("Agreement") is entered into this _____ day of
_____________, 2014, between The Travelers Indemnity Company, (“Travelers”) and
Maricopa County by and through the Risk Management Department of Maricopa County,
Arizona ("Risk Management" or "Maricopa County") (collectively the "Parties").
RECITALS
WHEREAS, Maricopa County owns real and personal property (“Property”) in
Maricopa County, Arizona and,
WHEREAS, Maricopa County has insurance coverage for the Property through
Travelers, in a Commercial Property Policy, policy number. KTK-CMB-6562N10-2-12
(the “Policy”) and,
WHEREAS, on October 5, 2010, a major wind storm event including heavy rain,
heavy hail, thunder and lightning occurred in Maricopa County, causing damages to
Property owned by Maricopa County, including buildings, cars, and equipment in
multiple locations and covered by the Policy (the “Event”) and,
WHEREAS, on October 12, 2010, Risk Management of Maricopa County filed a
claim, No. EMM0293 (the “Claim”), for coverage under the Policy for the damaged
Property(ies) and,
WHEREAS, on October 14, 2010, Travelers contacted Risk Management and
began the investigation of the Claim and,
WHEREAS, Arcadis was hired as the Project Manager for the County to work
with Travelers and assist in resolving the Claim and,

WHEREAS, Maricopa County, as part of its Claim, has submitted a request to
Travelers to fully and finally resolve a portion of the Claim as described in paragraph 3
below and in the Hail Storm Buyout Catalog, which is attached hereto as Exhibit 1 (“Hail
Storm Buyout Claim”) and,
WHEREAS, Maricopa County and Travelers have now reached final resolution
and seek to settle the Hail Storm Buyout Claim in its entirety and,
WHEREAS, the Hail Storm Buyout Claim is being used to efficiently resolve the
items in the Hail Storm Buyout Claim, save time and money to both Maricopa County
and Travelers, and
THEREFORE, in consideration of the promises, representations and warranties
made herein and the contributions by the Parties to the overall settlement contained in the
Hail Storm Buyout Claim, Maricopa County and Travelers agree as follows.
AGREEMENT
1. The Recitals set forth above are incorporated herein by reference as true
and accurate as if fully set forth in this Agreement.
2. Hail Storm Buyout Claim, attached as the Hail Storm Buyout Catalog -
Exhibit 1, and incorporated herein, lists the Property damaged during the Event, covered
by the Policy and included in the Hail Storm Buyout Claim.
3. The items contained in the Hail Storm Buyout Claim were inspected by
the Maricopa County Facilities Management Department and acknowledge the remaining
damage is cosmetic; superficial; and inconsequential to the operation or appearance of the
structure or equipment.
2

4. The Parties agreed that a 30% depreciation applied to the Retail Cash
Value (bid cost) would equate to the buyout, Actual Cash Value for applicable items
listed in the Hail Storm Buyout Catalog – Exhibit 1. Therefore, buyout total for all items
in the catalog is $1,877,505.06.
5. Travelers agrees to pay, and Maricopa County agrees to accept
$1,877,505.06 as the actual cash value for all items in the Hail Storm Buyout Claim (Hail
Storm Buyout Catalog – Exhibit 1).
6. Future claims for affected properties in the Hail Storm Buyout Catalog –
Exhibit 1 will be handled as follows: If a future loss occurred to property that is insured
by Travelers at the time & date of the occurrence and which is covered by the policy of
insurance issued by Travelers for the policy term in which the loss occurs then: If the
item is damaged by that event and the extent of damage is such that the item can no
longer perform its intended purpose and its replacement is required – then Travelers
would consider that a new claim item. However, if the damage sustained in the event of
such loss is not sufficient to require its replacement then Travelers could decline pay for
that damage condition.
7. This Agreement is restricted to the items in the Hail Storm Buyout Catalog
and it is not the intent of the Parties to amend, revise, or renegotiate the Policy identified
herein.
8. Each person signing below represents and warrants that he or she has full
authority to sign this document in the capacity indicated and, except as to counsel, to bind
(as indicated) Travelers and Maricopa County to this Agreement and their respective
successors, assigns, officers, directors, officials, agents and employees.
3

9. This Agreement may be signed in parts and is effected upon signature by
both parties.
MARICOPA COUNTY Travelers Indemnity Company.
By: _____________________________
____________________________________
Denney Barney Its ______________________________
Chairman, Board of Supervisors
Date: __________________________ Date: ___________________________
ATTESTED TO:
____________________________________
Fran McCarroll, Clerk of the Board
Date: __________________________
APPROVED AS TO FORM:
: ______________________________
Maricopa County Deputy County Attorney
Date: __________________________
4