147.07 DISPOSITION OF FIRE INSURANCE PROCEEDS.

   (a)   The City hereby designates the Fire Chief as the officer authorized to carry out the duties of this section in compliance with Ohio R.C. 3929.86.

   (b)   The Clerk of Council shall file a certified copy of this section with the State Superintendent of Insurance.

   (c)   When a fire loss to a structure located in the City equals or exceeds sixty percent (60%) of the aggregate limits of liability on all fire policies covering the building or structure, the insurance company or companies, in accordance with Ohio R.C. 715.26(F), shall transfer from the insurance proceeds to the City, in the aggregate, one thousand dollars ($1,000) for each twenty thousand dollars ($20,000) and for each fraction of that amount, of a claim, for the purpose of removal or repair of the structure.

   (d)   The insured may, in the alternative, submit a contractor's signed estimate of costs of removing, repairing or securing the building or structure and shall direct the insurance company to transfer from the insurance proceeds to the City the amount specified in the estimate.  If the insured submits such an estimate after the insurance company has already transferred to the Fire Chief an amount equal to one thousand dollars ($1,000) for each twenty thousand dollars ($20,000) loss, the City shall reimburse the insured for any excess paid above the estimate amount submitted.

   (e)   Upon receipt of proceeds by the City, the Finance Director shall place the proceeds in a separate fund to be used solely as security against the total cost of removing, repairing or securing expenses incurred by the City pursuant to Ohio R.C. 715.261.

   (f)   When transferring the funds as required in subsection (c) hereof, an insurance company shall also provide the City with the name and address of the insured.  The City shall then contact the named insured and notify him or her of the following procedure:

      (1)   The funds will be returned to the insured when the repair or removal has been completed and when required proof has been received by the Fire Chief if the City has not incurred any costs.

      (2)   If the City has incurred costs in repair or removal, such costs shall be paid from the funds and any excess shall be returned to the named insured.

      (3)   Nothing in this section shall be construed to limit the ability of the City to recover any deficiency of removal costs under Ohio R.C. 715.261.

      (4)   Ohio R.C. 715.261 provides that the City may collect all costs of removal in any of the following ways:

         A.   The Clerk of the City shall certify total costs of removal and a proper description of the lands to the County Auditor who shall place the costs upon the tax duplicate.  The costs shall be a lien upon such lands from and after the date of entry.

         B.   The City may also commence a civil action to recover the total costs from the owner.

            (Ord. 1997-176.  Passed 10-6-97.)