Campbell: No word on miscalculation claim

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Appraisal district board renews contracts with Thomas Y. Pickett

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No word has been received on the progress of an insurance claim from Thomas Y. Pickett for a miscalculation in setting mineral values.
Stephen Campbell, president of Thomas Y. Pickett, told the Scurry County Appraisal District board of directors, as well as officials from Cogdell Memorial Hospital and Western Texas College, that the errors and omissions claim has been filed and he was scheduled to hear from the adjuster last week. However, Campbell said he did not receive any update prior to today’s board meeting.
A miscalculation in entering mineral values for Occidential Permian cost the hospital district a $245,000 loss in projected revenue. The college could lose up to $277,000 in projected revenue.
“I am staying in touch with the insurance company,” Campbell said. “As soon as I receive feedback, I let (Scurry County Chief Appraiser) Larry (Crooks) know.”
County Attorney Mike Hartman asked Campbell at what point should the hospital and college have their attorneys get involved to help “press the issue.”
Campbell said if he does not receive an update by Friday, he would have his attorneys contact Hartman to see what the next step would be.
“This was far and away the biggest mistake I have ever made,” Campbell said. “I am embarrassed about it.”
Campbell said the entities may need to discuss the revenue loss with the insurance company.
“It will be easier for you to convey that message more than me,” he said.
Campbell said his company has set up preventive measures to prevent that type of mistake from happening again. But Campbell said he could not guarantee a mistake would not happen.
The board, after a lengthy discussion, approved a contract with Pickett for 2017. Hartman suggested looking into including the appraisal district and taxing entities as third parties on the errors and omissions policy. The policy Pickett has is for the company and Hartman said taxing entities and the appraisal district are “on the outside looking in” during the claim process.
Campbell said he would have his attorneys look at that and had no problem amending the contract after being approved by the board.
Prior to the contract vote, board member Jerry Boyd said it would be hard to consider it without knowing what the insurance company was going to do and if the changes can be made after it is approved.
Campbell said the current situation with the miscalculation is a separate issue than renewing the contract. He said if the district did not renew the contract, which includes a 30-day out by either party, Pickett would work with the taxing entities until the claim is complete.
Crooks recommended approving the contract for 2017 because Pickett employees are currently working on values for the upcoming year.
Board member Jana Young said if the district went with a different company, it would have a “snowball effect.”
“We would be sending out (tax) statements late, they (taxing entities) would be getting values late,” she said.
WTC President Dr. Barbara Beebe said if the district went with another company, it does not prevent mistakes from happening.
“You can get someone else, but they could make an error as well,” she said.
Board chairman Fred Cross said Pickett has “always done us a good job.”
Following a closed session to perform the annual evaluation of Crooks, the board took no action.