ORDINANCE NO. 9255

AN ORDINANCE OF THE CITY OF LAWRENCE, KANSAS, AMENDING CHAPTER 8, ARTICLE 3, SECTIONS 8-301,  8-304, 8-305, 8-306 AND 8-309 OF THE CODE OF THE CITY OF LAWRENCE, KANSAS, 2015 EDITION, AND AMENDMENTS THERETO, PERTAINING TO THE INSURANCE PROCEEDS FUND AND REPEALING EXISTING SECTIONS 8-301, 8-304,   8-305, 8-306 AND 8-309.

BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:

SECTION 1. Chapter 8, Article 3, Section 8-301 of the Code of the City of Lawrence, Kansas, 2015 Edition, and amendments thereto, is hereby amended to read as follows:

8-301               SCOPE AND APPLICATION. 

The City is hereby authorized to utilize the procedures established by K.S.A.    40-3901 et seq., whereby no insurance company shall pay a claim of a named insured for loss or damage to any building or other structure located within the City, arising out of any fire, explosion, or windstorm where the amount recoverable for the loss or damage to the building or other structure under all policies is in excess of seventy-five percent (75%) of the face value of the policy covering such building or other insured structure, unless there is compliance with the procedures set out in this article.

SECTION 2. Chapter 8, Article 3, Section 8-304 of the Code of the City of Lawrence, Kansas, 2015 Edition, and amendments thereto, is hereby amended to read as follows:

8-304               CODES ENFORCEMENT MANAGER; INVESTIGATION, REMOVAL OF STRUCTURE.

                       (A)       Upon receipt of moneys as provided for by this Article, the City Treasurer shall immediately notify the Codes Enforcement Manager of said receipt, and transmit all documentation received from the insurance company or companies to the Codes Enforcement Manager.

                       (B)       Within twenty (20) days of the receipt of said moneys, the Codes Enforcement Manager shall determine, after prior investigation, whether the City shall instigate proceedings under the provisions of K.S.A.         12-1750 et seq., as amended.

                       (C)       Prior to the expiration of the twenty (20) days established by Subsection (B) of this Section, the Codes Enforcement Manager shall notify the City Treasurer whether he or she intends to initiate proceedings under K.S.A. 12-1750 et seq., as amended.

                       (D)       If the Codes Enforcement Manager has determined that proceedings under K.S.A. 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 moneys by the City Treasurer.

                      (E)        Upon notification to the City Treasurer by the Codes Enforcement Manager that no proceedings shall be initiated under K.S.A. 12-1750 et seq., as amended, the City Treasurer shall return all such moneys received, plus accrued interest, to the insured or insurers as identified in the communication from the insurance company or companies. Such return shall be accomplished within thirty forty-five (3045) days of the receipt of the moneys from the insurance company or companies.

SECTION 3. Chapter 8, Article 3, Section 8-305 of the Code of the City of Lawrence, Kansas, 2015 Edition, and amendments thereto, is hereby amended to read as follows:

8-305              REMOVAL OF STRUCTURE; EXCESS MONEYS.

If the Codes Enforcement Manager enforcing officer, as defined in Section 5-301 of this Code, and amendments thereto, has proceeded under the provisions of K.S.A. 12-1750 et seq., as amended, all moneys 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.

SECTION 4. Chapter 8, Article 3, Section 8-306 of the Code of the City of Lawrence, Kansas, 2015 Edition, and amendments thereto, is hereby amended to read as follows:

8-306               SAME; DISPOSITION OF FUNDS. 

If the Codes Enforcement Manager, enforcing officer, as defined in Section 5-301 of this Code and amendments thereto, with regard to a building or other structure damaged by a covered claim, by fire, explosion, or windstorm determines that it is necessary to act under K.S.A. 12-1756, any proceeds received by the City Treasurer under the authority of Section 8-302(A) relating to that building or other structure shall be used to reimburse the City for any expenses incurred by the City in proceeding under K.S.A. 12-1756. Upon reimbursement from the insurance proceeds, the Codes Enforcement Manager shall immediately affect 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 Section 8-302(A), the Codes Enforcement Manager shall publish a new lien as authorized by K.S.A. 12-1756, in an amount equal to such excess expenses incurred.

SECTION 5. Chapter 8, Article 3, Section 8-309 of the Code of the City of Lawrence, Kansas, 2015 Edition, and amendments thereto, is hereby amended to read as follows: 

8-309               LIEN CREATED. 

The Governing Body of the City hereby creates a lien in favor of the City on the proceeds of any insurance policy based upon a covered claim payment made for damage or loss to a building or other structure located within the City, caused by or arising out of any fire explosion, where the amount recoverable for all the loss or damage to the building or other structure under all policies is in excess of seventy-five percent (75%) of the face value of the policy(s) covering such building or other insured structure. The lien arises upon any unpaid tax, special ad valorem levy, or any other charge imposed upon real property by or on behalf of the City which is an encumbrance on real property, whether or not evidenced by written instrument, or such tax, levy, assessment, expense or other charge that has remained undischarged for at least one year prior to the filing of a proof of loss. 

SECTION 6. Existing Sections 8-301, 8-304, 8-305, 8-306, and 8-309 of the Code of the City of Lawrence, Kansas, 2015 Edition, and amendments thereto, are hereby repealed, it being the intent of the Governing Body that the provisions of this Ordinance supersede them.

SECTION 7. If any section, sentence, clause, or phrase of this ordinance is found to be unconstitutional or is otherwise held invalid by any court of competent jurisdiction, it shall not affect the validity of any remaining part of this ordinance.

SECTION 8. This ordinance shall be in full force and effect from and after its passage and publication as provided by law.

PASSED by the Governing Body of the City of Lawrence, Kansas, this ____ day of June, 2016.

APPROVED:

___________________________________

Mike Amyx

Mayor

ATTEST:

__________________________________

Sherri Riedemann

City Clerk

APPROVED AS TO FORM:                   

__________________________________

Toni R. Wheeler

City Attorney

*****

NOTICE TO PUBLISHER

Publish once and return one Proof of Publication to the City Clerk and to the City Attorney.