02-25-2015 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: Slat. @ 65,\.50, su0d. 6. I nm. Slat. $ 65A50, suhct. 6. Mimi Stat. $ o5.\.3U..ub(I. 0 hl inn. Stitt, 0, :111)(I b. Releasing funds to the insured There are two situations described in statute where the Muds in the account must be immediately forwarded to the insured. The first situation is where the chief fire official or other authorized city representative receives or is shown reasonable proof that the damaged or destroyed portions of the insured structure have been repaired or replaced. However, if not all repairs or replacement have been made, the city may withhold the amount that is needed to complete repair or replacement. The second situation is when the chief fire official or other authorized city representative receives or is shown reasonable proof that the damaged or destroyed structure and any and all remnants of the structure have been removed from the land where the structure was located. This may be done by the owner or any other person. The work must have been done in compliance with local code requirements. There is also a third situation when funds must be immediately released, but in this situation, the funds are forwarded to a third -party contractor and not the insured. in this situation, the funds deposited into the escrow or trust account must be immediately forwarded to the contractor when the chief fire official or other authorized city representative receives or is shown reasonable proof that the insured has entered into a contract to perform repair, replacement, or removal services on the property. It must also be shown that the insured consents to payment of the funds directly to the contractor performing the services. These funds may be forwarded only to a contractor performing services on the insured property. As mentioned in the three situations above, the insured must show reasonable proof in order to have the funds released or forwarded. The law provides three situations that will be considered reasonable proof: a Originals or copies of pertinent contracts, invoices, receipts, and other similar papers showing both the work performed or to be performed and the materials used or to be used by all contractors performing repair, replacement, or removal services with respect to the insured real property. An affidavit executed by the contractor who has performed the greatest amount of repair or replacement work on the structure, or who has done most of the clearing and removal work if structure repair or replacement is not to be performed. The contractor shall attach to the affidavit all pertinent contracts, invoices, and receipts and shall swear that these attached papers correctly indicate the nature and extent of the work performed to date by the contractor and the materials used. e An inspection of the insured real property to verify that repair, replacement, or clearing has been completed. League of Minnesota Cities Information Memo: Dangerous Properties 8 624/2013 Page 9