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Contractor and insurer at odds over 2024 storm repairs; city authorizes appraisal option
Summary
Contractors BHS and ACR reported unresolved differences with the city’s insurer over repair costs for April 2024 storm damage; the commission authorized the mayor to sign paperwork to invoke the policy appraisal process to resolve disputed estimates.
City contractors and the municipal insurer remained at odds over repair estimates for structures damaged in the April 2024 storms, and the commission authorized steps to resolve the impasse through the policy appraisal process.
At multiple meetings contractors BHS and ACR updated the commission on storm-damage work and outstanding cost disputes with the city's insurer (Travelers). Contractors advised the commission to invoke the insurance policy's appraiser mechanism — under which each party hires an appraiser and, if needed, an umpire is appointed — to reach a quicker resolution. BHS agreed to pay 50% of the city's cost to hire an appraiser. "BHS agreed to work with Cordell to review the uses of the buildings listed in Phase 2 of the storm damage repairs," the minutes record, and the commission gave consensus for Mayor Childs to sign necessary paperwork to start the appraisal process.
Commissioners directed the city attorney to review draft notices to the insurer and to proceed with the appraisal process if recommended. No additional city appropriation was approved at the time; commissioners asked staff to return with estimates of potential city exposure and timelines once the appraisal is underway.
