Council approves $574,198 payout to cover damaged contents of the Public Works garage
SMITHS FALLS — Smiths Falls council has approved a $574,198.87 insurance settlement to cover damaged contents lost in the February 2025 fire at the town’s Public Works garage.
The decision was made at the Jan. 5 committee of the whole meeting following a report from Paul McMunn, director of public works and utilities, outlining negotiations with Intact Public Entities over non salvageable contents damaged in the fire. It was later ratified at the council meeting.
“As council will recall, council did approve for the clerk to sign the proof of loss settlement for the garage itself,” McMunn said. “The next step was to settle on the contents that were damaged to being non salvageable.”
McMunn said the assessment resulted in a 73-page inventory of damaged tools, equipment, supplies, electronics, appliances and staff clothing compiled by insurance adjusters working with town staff.
“They went through everything with a fine-tooth comb to make sure nothing was overlooked,” he said.
Council was presented with two standard insurance options: full replacement cost, valued at $633,348.99, or actual cash value, which applied depreciation to older items and totalled $515,048.75. McMunn said replacing every item was neither practical nor necessary.
“Seventy-three pages of contents would be a very laboursome task to go through,” he said. “There are items we simply would not replace.”
Instead, staff proposed a hybrid settlement, averaging the replacement cost and actual cash value.
“I’m going to work for the town. That’s my job, to try to get the best value I can,” McMunn said. “It’s a win win. They win, the town wins.”
The hybrid approach resulted in the $574,198.87 settlement, which McMunn confirmed has been approved by the insurer and is ready for execution by the clerk.
When council asked whether any remaining funds could eventually be applied toward a future replacement Public Works building, McMunn said it was possible, but too early to determine.
“My interest would be to keep those funds in a reserve account for the town,” he said. “There are items we will replace and items we will not replace.”
McMunn also clarified that a small number of items classified as antiques by the insurer were considered antiquated due to age, not historically significant or personal items.
Council supported the recommendation to direct the clerk to sign the contents proof of loss form, authorizing the release of settlement funds to the town.
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