To: Board of Supervisors
From: Karen Caoile, Director of Risk Management
Report Title: Release of Interest in Smothers Insurance Proceeds
?Recommendation of the County Administrator ? Recommendation of Board Committee
RECOMMENDATIONS:
AUTHORIZE the Director of Risk Management, on behalf of the County, to sign a release of County's interest in $174,259.16 in insurance proceeds payment to a property owner relating to damage to the property in which the County is named as an additional insured.
FISCAL IMPACT:
None.
BACKGROUND:
On October 22, 2021, the Superior Court of California in the County of Contra Costa entered an order approving a property bond ("Property Bond") secured by the property commonly referred to as 5128 Westbury Circle, Granite Bay, California ("Property") in the matter of The People v. Sherill Lynn Smothers (Contra Costa County Superior Court Case No. 5-161318-1) for the release of defendant Sherrill Lynn Smothers. The Property Bond, pledges $500,000 of the Property's value to Contra Costa County as a guarantee that defendant will appear in court. As a condition of approving the Property Bond in lieu of cash bail, the owner of the Property is required to maintain a homeowners insurance policy ("Policy") on the Property and to name Contra Costa County ("County") as an additional insured. The owner purchased a homeowners insurance policy from Liberty Mutual Insurance and named the County as an additional insured.
The owner of the Property submitted a claim (Claim No. 052357075-01) against the Policy for damage to a structure on the Property and was issued a check from Liberty Mutual Insurance in the amount of $174,259.16. As an additional insured under the Policy, the County is listed as a co-payee on the check. To release the funds to the owner of the Property to repair the damage, Liberty Mutual Insurance requires that the County disclaim and release, in writing, its interest in the insurance payment.
The owners of the Property provided a...
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