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Committee authorizes mayor to endorse insurance check for CHIP rehab property after fire; staff say repairs completed
Summary
The finance committee authorized the mayor to endorse an insurance check made out to both a homeowner and the city for a 2018 CHIP property that suffered a fire; staff said repairs were complete and the insurer consents to proceeds going to the contractor.
The Medina City Council Finance Committee authorized the mayor to endorse an insurance check issued jointly to a homeowner and the city for a 2018 CHIP rehabilitation project after a fire at the property, and staff said the repairs had been completed.
Barbara (staff member) explained the city holds a lien on the property because it was a CHIP rehab project. State Farm issued a check payable to both the homeowner and the city. Staff requested authority for the mayor to endorse the check so the homeowner could pay the contractor; Barbara said she spoke with the State Farm insurance representative, who was comfortable with the arrangement.
Committee members asked how the city would ensure the insurance proceeds would be used to pay the contractor rather than diverted. Barbara said the insurer expressed comfort with the disbursement; another committee member asked whether the house was inhabitable, and staff replied they believed the repairs had already been completed and the insurance was “catching up.”
Committee President (name not specified) called the motion; the committee voted to approve the mayor’s endorsement. The committee did not adopt additional controls at the meeting to guarantee contractor payment beyond the insurer’s assurances.
