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City of Tukwila <br />Thomas McLeod, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Finance and Governance Committee <br />FROM: Brandon J. Miles, Strategic Initiatives Director <br />CC: Thomas McLeod <br />DATE: April 18, 2025 <br />SUBJECT: Restorical Research, LLC Contract <br />ISSUE <br />Authorize the Mayor to execute a professional services agreement in an amount not to exceed <br />$300,000 for insurance archaeology, forensic accounting, and claims management with <br />Restorical Research, LLC. <br />BACKGROUND <br />Prior to the late 1980s/early 1990s, commercial general liability insurance policies covered <br />environmental cleanup for insured properties and parties. Once the cost of these clean ups <br />became known, insurance companies limited their coverage to exclude environmental cleanup <br />costs. However, if environmental contamination occurred while the property was covered by the <br />insurance policy, a claimant, such as new property owner, could pursue reimbursement against <br />the past insurance policy. These policies can be old and with mergers between insurance <br />companies, it can be difficult to determine which company still holds the policy. <br />Restorical Research provides insurance investigation, forensic accounting, and claims <br />management services to investigate old insurance policies. Restorical receives a small amount <br />of compensation for expenses and receives a ten percent contingency in the event the City can <br />collect against an old policy. <br />DISCUSSION <br />The City has incurred cleanup costs associated with the construction of the Justice Center. The <br />City would like to have Restorical research past insurance policies to determine if the City might <br />be able to pursue a claim against an old insurance policy. Additionally, the City would like to <br />have the consultant under contract in the event similar work needs to be done on other city <br />owned property or rights of way. <br />FINANCIAL IMPACT <br />The City will provide up to $600 per site/project to cover the consultant's costs. Additionally, the <br />consultant will also receive a ten percent contingency fee in the event the City is able to <br />successfully receive funds from a claim. For example, if the City were to receive an insurance <br />settlement of $500,000, the consultant would get $50,000. <br />RECOMMENDATION <br />Forward to the May 5, 2025 consent agenda. <br />ATTACHMENTS <br />• Draft Agreement. <br />1 <br />