Hillsborough County Public Schools Human Resources
Action Item

DATE: Tuesday, November 18, 2008
TO: School Board Members
FROM: MaryEllen Elia, Superintendent

SUBJECT / RECOMMENDATIONS

Approve Claim Settlement Between The Beck Group and the School District of Hillsborough County.

EXECUTIVE SUMMARY

Damages by The Beck Group occurred at Eisenhower Middle School, June 23, 2005, when a water pipe broke under the gymnasium floor that caused flooding of the building and destroying the wood floor. During the investigation to determine the cause of the insurance claim, it was discovered by the district's insurance adjustor that the construction documents (see attachment) clearly identify that the water pipe was required to be removed by The Beck Group prior to the construction of the gymnasium in 2004. A joint claim between the district and its property insurance carriers was filed against The Beck Group to recover the monies expended for clean up and repair of the gymnasium. The district incurred the $116,967.77 cost of clean up and replacement of the wood gym floor. Property Insurance Carriers reimbursed the district $16,967.77; the district paid the remaining $100,000 (deductible). Proportionally, the district paid 85 percent of the claim and the insurance companies paid 15 percent of the claim. The Beck Group has agreed to settle this claim for $50,000. The district would receive $31,875 ($42,500 less attorney fees of $10,625), and $5,625 ($7,500 less attorney fees of $1,875) would be paid to the district's insurance carriers.

ANNUAL DISTRICT GOAL(S) AND CRITICAL SUCCESS FACTOR(S)

* Demonstrate best financial practices, * Demonstrate "best practices" in all aspects of safety including students, employees, visitors, facilities, transportation, and health

FINANCIAL IMPACT (Budgeted: Yes)

Approval of this settlement would return $31,875 to the District’s budget (Part I).

EVALUATION

N/A

SUBMITTED BY:

Glen A. Lathers
Manager of Safety and Risk Management
(813) 872-5263
Daniel J. Valdez
Deputy Superintendent
(813) 272-4166
A 3.04
Hillsborough County Public Schools (Florida) * Mtg.#20081118_305 * Section A Item# 3.04