1-11-3: ENCUMBRANCES:

Prior to final settlement on any claim covered by section 1-11-2 of this chapter, the insurer or insurers shall contact the county treasurer, Scott County, Kansas, to determine whether any such encumbrances are presently in existence. If the same are found to exist, the insurer or insurers shall execute and transmit in an amount equal to that owing under the encumbrances a draft payable to the county treasurer, Scott County, Kansas. (Ord. 1081, 1-21-2008)

1-11-4: PRO RATA BASIS:

Such transfer of proceeds shall be on a pro rata basis by all insurance companies insuring the building or other structure. (Ord. 1081, 1-21-2008)

1-11-5: PROCEDURE:

   A.   When final settlement on a covered claim has been agreed to or arrived at between the named insured or insureds and the company or companies, and the final settlement exceeds seventy five percent (75%) of the face value of the policy covering any building or other insured structure, and when all amounts due the holder of a first real estate mortgage against the building or other structure, pursuant to the terms of the policy and endorsements thereto, shall have been paid, the insurance company or companies shall execute a draft payable to the city treasurer in an amount equal to the sum of fifteen percent (15%) of the covered claim payment, unless the chief building inspector of the city has issued a certificate to the insurance company or companies that the insured has removed the damaged building or other structure, as well as all associated debris, or repaired, rebuilt, or otherwise made the premises safe and secure.

   B.   Such transfer of funds shall be on a pro rata basis by all companies insuring the building or other structure. Policy proceeds remaining after the transfer to the city shall be disbursed in accordance with the policy terms.

   C.   Upon the transfer of the funds as required by subsection A of this section, the insurance company shall provide the city with the name and address of the named insured or insureds, the total insurance coverage applicable to said building or other structure, and the amount of the final settlement agreed to or arrived at between the insurance company or companies and the insured or insureds, whereupon the chief building inspector shall contact the named insured or insureds by certified mail, return receipt requested, notifying them that said insurance proceeds have been received by the city and apprise them of the procedures to be followed under this chapter. (Ord. 1081, 1-21-2008)

1-11-6: FUND CREATED; DEPOSIT OF MONIES:

The city treasurer is hereby authorized and shall create a fund to be known as the "insurance proceeds fund". All monies received by the city treasurer as provided for by this chapter shall be placed in said fund and deposited in an interest bearing account. (Ord. 1081, 1-21-2008)

1-11-7: BUILDING INSPECTOR; INVESTIGATION, REMOVAL OF STRUCTURE:

   A.   Upon receipt of monies as provided for by this chapter, the city treasurer shall immediately notify the chief building inspector of said receipt, and transmit all documentation received from the insurance company or companies to the chief building inspector.

   B.   Within twenty (20) days of the receipt of said monies, the chief building inspector shall determine, after prior investigation, whether the city shall instigate proceedings under the provisions of Kansas Statutes Annotated 12-1750 et seq., as amended.

   C.   Prior to the expiration of the twenty (20) days established by subsection B of this section, the chief building inspector shall notify the city treasurer whether he or she intends to initiate proceedings under Kansas Statutes Annotated 12-1750 et seq., as amended.

   D.   If the chief building inspector has determined that proceedings under Kansas Statutes Annotated 12-1750 et seq., as amended shall be initiated, he or she will do so immediately but no later than thirty (30) days after receipt of the monies by the city treasurer.

   E.   Upon notification to the city treasurer by the chief building inspector that no proceedings shall be initiated under Kansas Statutes Annotated 12-1750 et seq., as amended, the city treasurer shall return all such monies received, plus accrued interest, to the insured or insureds as identified in the communication from the insurance company or companies. Such return shall be accomplished within thirty (30) days of the receipt of the monies from the insurance company or companies. (Ord. 1081, 1-21-2008)

1-11-8: REMOVAL OF STRUCTURE; EXCESS MONIES:

If the chief building inspector has proceeded under the provisions of Kansas Statutes Annotated 12-1750 et seq., as amended, all monies in excess of that which is ultimately necessary to comply with the provisions for the removal of the building or structure, less salvage value, if any, shall be paid to the insured. (Ord. 1081, 1-21-2008)

1-11-9: DISPOSITION OF FUNDS:

If the chief building inspector, with regard to a building or other structure damaged by fire, explosion, or windstorm, determines that it is necessary to act under Kansas Statutes Annotated 12-1756, any proceeds received by the city treasurer under the authority of subsection 1-11-5A of this chapter relating to that building or other structure shall be used to reimburse the city for any expenses incurred by the city in proceeding under Kansas Statutes Annotated 12-1756. Upon reimbursement from the insurance proceeds, the chief building inspector shall immediately effect the release of the lien resulting therefrom. Should the expenses incurred by the city exceed the insurance proceeds paid over to the city treasurer under subsection 1-11-5A of this chapter, the chief building inspector shall publish a new lien as authorized by Kansas Statutes Annotated 12-1756, in an amount equal to such excess expenses incurred. (Ord. 1081, 1-21-2008)