HomeMy WebLinkAboutBill No. 42-16 Participate in Indiana's Available Insurance Proceeds Program1300 COUNTY -CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDLANA 466o1 -1830
August 16, 2016
PHONE 574123 5-9486
FAX 574/235-7703
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
DEPARTMENT OF CODE ENFORCEMENT
RANDY WILKERSON
DIRECTOR
Tim Scott, Council President
Common Council of the City of South Bend
227 West Jefferson Blvd. • Suite 400 S
South Bend, Indiana 46601
Re: Ordinance Authorizing Participation in Indiana Department of Insurance Available Insurance
Proceeds Program
Dear Council President Scott:
The Department of Code Enforcement respectfully requests that the Council enact this ordinance to
authorize and direct the City of South Bend's written request to participate in the Indiana
Department of Insurance ( "IDOI ") Available Insurance Proceeds Set Aside Program, and to direct
payment of the associated registration fee. The initial $100.00 registration fee would be paid from
the Unsafe Building Fund. I will be available as the presenter on behalf of the Department.
This is a State of Indiana program that requires for property damaged by fire or explosion that a
percentage of the insurance proceeds be side aside and held in escrow until the repairs are made or
the property has been demolished. Should the city have to take action, this law provides some
protection to the city from property owners who might choose to take insurance proceeds and fail
to repair or clean up their damaged property.
On behalf of the Department of Code Enforcement, it is my belief that this ordinance is in the best
interest of the citizens of the City of South Bend.
Respectfully,
Randy Wilkerson
Director of Code Enforcement
Filed in Clerk's Office
P UG , 1 6 2016
KAREEMAH FOWLER
CITY CLERK, SOUTH SEND, IN
Es e3lo
ORDINANCE NO.
AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA AUTHORIZING AND DIRECTING SUBMISSION OF A WRITTEN
REQUEST TO PARTICIPATE IN THE INDIANA DEPARTMENT OF INSURANCE'S
AVAILABLE INSURANCE PROCEEDS SET ASIDE PROGRAM
STATEMENT OF PURPOSE AND INTENT
The State of Indiana, through the Indiana Department of Insurance ( "IDOI "), administers
the "available insurance proceeds set aside" program. For municipalities that specifically elect to
be governed by the applicable law, this program provides them with notice and certain protections
in the event that insurance proceeds are available due to damage caused by fire or explosion to a
building in their community.
At the time of the final settlement of an eligible claim, participating cities are given notice
of the settlement and an opportunity to respond to the insurance carrier. In qualifying instances,
the participating city can require a statutorily set percentage or amount of the insurance proceeds
to be paid to the city, to be held in escrow, and potentially used for demolition, remediation, or
other unsafe building expenses following any necessary legal action. The law is designed to
provide some protection to cities from property owners who might choose to take insurance
proceeds and fail to repair or clean up their damaged property. The potential benefits from this
program far outweigh the modest $100.00 registration fee to participate in the program. As a result,
the City of South Bend has determined that it would be advantageous to opt into the available
insurance proceeds set aside program.
The purpose and intent of this ordinance is to confirm South Bend's election to be governed
by Indiana Code § 27 -2 -15 et seq., and further to authorize and direct South Bend's participation
in IDOI's available insurance proceeds set aside program, and to direct payment of the associated
registration fee.
NOW, THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND, INDIANA as follows:
Section I. Pursuant to Indiana Code § 27- 2- 15- 4.4(a)(1), the City of South Bend, Indiana
elects to be governed by Indiana Code 27 -2 -15 et seq., otherwise known as the Indiana Department
of Insurance's "Available Insurance Proceeds Set Aside" program.
Section II. Pursuant to Indiana Code § 27- 2- 15- 4.4(a)(2), the City of South Bend
designates its Director of the Department of Code Enforcement as the specific individual who will
act on behalf of the enforcement authority with respect to Indiana Department of Insurance
Proceeds Set Aside Program. The contact information for the Director of the Department of Code
Enforcement is:
Director, Department of Code Enforcement
City of South Bend
227 West Jefferson Boulevard, Suite 1300S
South Bend, IN 46601
(574) 235 -9486
Section III. The Director of the Department of Code Enforcement is hereby authorized
and directed to:
a. Complete the City of South Bend's online enrollment for the Indiana
Department of Insurance's Available Insurance Proceeds Set -Aside
Program;
b. Submit to the Indiana Department of Insurance a copy of this ordinance
with the above mentioned enrollment„
C. Submit to the Indiana Department of Insurance a one -time fee of $100.00
as required by Indiana Code § 27- 2- 15- 4.4(d) with the above enrollment;
and
d. Notify both the Common Council and the Mayor's Office of any future
amendments to Indiana Code 27 -2 -15 et seq.
Section IV. Pursuant to Indiana Code § 27- 2- 15- 4.4(c)(1), in order to cease being
governed by the Indiana Department of Insurance Proceeds Set -Aside Program and to be removed
from the list, the City of South Bend shall repeal this ordinance and shall do all other things now
required by Indiana Code 27- 2- 15- 4.4(c) and as amended.
Section V. This ordinance shall be in full force and effect upon adoption by the Council
and approval by the Mayor.
Member, South Bend Common Council
Attest:
City Clerk
Presented by me to the Mayor of the City of South Bend, Indiana on the day
of , 2 , at o'clock . m.
City Clerk
Approved and signed by me on the day of , 2 , at o'clock
m.
1 * READING
PUBLIC HEARING
3 rd READING
NOT APPROVED
REFERRED
PASSED
Filed in Clerk's Office
AUG 1 �5 2016
KAREEMAH FOWLER
CITY CLERK, SOUTH BEND, IN