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Road commission insurance exploring lawsuit over 2013 fire

LINCOLN – The Michigan County Road Commission Self-Insurance Pool could file a lawsuit for negligence against a roofing company that used equipment that may have contributed to the fire at the Alcona County Road Commission building in 2013.

The fire, which MCRSIP Administrator Gayle Cummings said resulted in a multi-million dollar insurance claim to rebuild the facility, could have been caused by a heating gun that was known to cause fires and was being used by an unnamed contractor.

The issue was discussed, among other aspects of the road commission’s new building, during a meeting held Wednesday.

Cummings said video of the fire shows the flames spreading from the roof area, where the heating gun was utilized to install a rubber roof repair.

She said the insurance pool could sue the contractor’s insurance company to recoup some of the insurance payout to the road commission.

“We have collected the information and we’ve met with forensic accountants,” she said. “We have a very short window right now to decide whether we’re going to file a suit, and that is about all they are going to let me say about it.”

Cummings said MCRSIP’s insurance company is on board with a possible lawsuit and it has hired an attorney to look at the case.

“I think we’re in good hands, if it goes forward it is going to be a good reason,” she said.

Cummings said part of her visit Wednesday was to see how the new road commission building had turned out and the progress.

Chairman Alfred Scully said the building was mostly done and officials owed a debt of gratitude to MCRSIP.

Trustee Harry Harvey said he was pleased with how the situation worked out, and he was not expecting the company to provide so much support for the reconstruction.

“Thanks because nowadays you don’t see insurance companies work like that,” he said.

After the fire, road commission officials asked the county for a millage to help defray the cost of building the building, but none of the money has been spent, Scully said.

Scully expressed concerns with asking the county for a millage, which generated $375,000 after the fire. He said the board believed there were unknown costs that would have to be paid, and the funding would be used to put up the new building.

“We’re all concerned because we have been questioned about that millage money,” he said. “Whatever it is it has to be transparent and we have to spend it on what we asked for.”

Cummings said at the time there were many unknowns about the fire and insurance payout and board members did not know what the financial costs would be in the new construction.

She said one thing the insurance pool does not pay for is environmental cleanup. She said there was a great chance there were unknown pollutants under the concrete slab that once held the old road commission building.

“Asking for the millage was responsible on your part,” she said. “I don’t see a problem with it right now. I think you can work with your communities to figure out how to spend it.”

Pratt said although the insurance payout was generous, there are funding areas where money is almost running out, and millage funds could be spent in that area.

Managing Director Jesse Campbell said although there is not a way to spend the entire fund generated from the millage there are several projects money could be utilized for, including the installation of a new fencing system around the facility.

Jason Ogden can be reached via email at jogden@thealpenanews.com or by phone at 358-5693. Follow Jason on Twitter @jo_alpenanews. Read his blog, Sunny side up, with Jason at www.thealpenanews.com.

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