HomeMy WebLinkAboutPO 6547: DAMAGE CLAIM $81458.00 TML •
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INTEROFFICE MEMORANDUM
Human Resources Department
Date: April 7, 2016
To: Brian McDougal, City Manager
From: Lisa Colten, Acting Assistant Director of Human Resources
RE: An Ordinance Approving a Property Damage Settlement in the Amount of$81,458 for
Damages to City Commercial Container Truck#1533
Nature of the request: On November 24, 2015, Commercial Container Truck #1533
(2004 Mack Truck), operated by Kelvin Harris, Equipment Operator II, was at the City Landfill
to dump its load, when the hydraulic line leaked on the muffler, and caused a fire. The fire
rendered the truck a total loss.
Staff Analysis, Considerations: The City has Automobile Physical Damage insurance
coverage through Texas Municipal League Intergovernmental Risk Pool (TML) with a $2,500
deductible. TML has offered the City a settlement of $81,458, less the $2,500 deductible,
making the final settlement offer$78,958 (Exhibit"A" attached).
Recommendation: I recommend approval of Proposed Ordinance No. 6547 authorizing the
property damage settlement against TML for damage sustained to Commercial Container Truck
#1533 (2004 Mack Truck). TML has offered to settle the claim for $81,458, less the $2,500
deductible, making the final settlement offer $78,958. This is considered a fair and reasonable
settlement.
Budget Considerations: The funds received will be deposited in the Water &
Sewer/Equipment Replacement Account#410-1251-532.98-00.
"Remember we are here to serve the Citizens of Port Arthur"
P.O. No. 6547
4/07/16 LJC
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE CITY MANAGER
TO EXECUTE SETTLEMENT OF A PROPERTY DAMAGE CLAIM
IN THE AMOUNT OF $81,458 MADE AGAINST
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML)
AS A RESULT OF PROPERTY DAMAGE TO CITY COMMERCIAL CONTAINER TRUCK#1533
WHEREAS, on November 24, 2015, City of Port Arthur Commercial Container Truck #1533
(2004 Mack Truck) sustained fire damage at the City Landfill when the hydraulic line leaked on the
muffler causing a fire; and,
WHEREAS, as a result of the damage, a claim was filed with the Texas Municipal League
Intergovernmental Risk Pool (TML); and,
WHEREAS, it has been determined that damages sustained by Vehicle#1533 were in excess of
the fair market value of the vehicle; and,
WHEREAS, TML has offered to settle the claim for $81,458, less the Automobile Physical
Damage deductible amount of $2,500, making the final settlement $78,958, which is considered a fair
and reasonable settlement.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT
ARTHUR:
Section 1. That, the facts and opinion in the preamble of this Ordinance are true and
correct.
Section 2. That, the City Manager is hereby authorized to execute settlement in the amount
of $81,458, less the Automobile Physical Damage deductible amount of $2,500,
making the final settlement $78,958 for the claim against TML in substantially the
same form as delineated in Exhibit "A", in exchange for transfer of title to Vehicle
#1533 to TML.
Section 3. That a copy of this Ordinance be spread upon the minutes of the City Council.
P.O. No. 6547
4/07/16 LJC
Page 2 of 2
READ, ADOPTED, AND APPROVED this day of , AD, 2016, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor
, Councilmembers
NOES:
Deloris "Bobbie" Prince, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROV, D TO FORM:
• L)
Val Tizen., ity `ttorney
APPROVED FOR ADMINISTRATION:
Brian McDougal, City Manager
Exhibit "A" �"°" lis y 1
SWORN STATEMENT PROOF OF LOSS (Automobile)
Policy No. 7587 Ctf.No.
Policy Coverage at Time of Loss Automobile Physical Damage Company Claim No. A00000000026825
Date Issued October 01,2015 Agent Texas Municipal League Intergovernmental Risk Pool
Date Expires October 01,2016 Agency At Austin,Texas
To the Texas Municipal League Intergovernmental Risk Pool
Of Austin,Texas By your policy of insurance described above,
you insured Port Arthur
(HEREINAFTER CALLED THE MEMBER)AGAINST LOSS OF OR DAMAGE TO THE AUTOMOBILE DESCRIBED AS FOLLOWS:
TRADE NAME TYPE OF BODY MODEL MODEL
DESCRIPTION (IF TRUCK STATE TONNAGE) (YEAR) VEHICLE IDENTIFICATION NUMBER
OF
AUTOMOBILE Mack Truck-Garbage MR690S 2004 1 M2K195C34M023604
TIME AND A loss caused by Fire occurred on the 24e day of November,2015 ,about the hour of .M.,the full
ORIGIN particulars of which are as follows: (State where and how it occurred)
The hydraulic line leaked on muffler and caused fire
TITLE AND The insured was the sole owner of the automobile at the time of the loss or damage and no other person had any interest therein,by
INTEREST bailment lease,condition sale,mortgage or other encumberance or otherwise,except None
OTHER At the time of this loss,there was no other insurance on said automobile covering the same perils except:
INSURANCE None
USE At the time of this loss,the said automobile was being used for Business
(PLEASURE,BUSINESS OR COMMERCIAL PURPOSE)
and was not being used to carry passengers for compensation or rental or leased of for any illegal purpose except:
None
THE ACTUAL of the property described,the actual loss and damage sustained,and the amount claimed under this Policy are as follows:
CASH VALUE CASH VALUE WHOLE LOSS AMOUNT DEDUCTIBLE AMOUNT CLAIMED UNDER THIS POLICY
$81,458 $2,500.00 $78,958
SUBROGATION To the extent of the payment made or advanced under this policy,the Insured hereby assigns,transfers and sets over to the insurance company all rights,claims or interests that he has
against any person,firm or corporation liable for the loss or damage to the property for which payment is made or advanced. He also hereby authorizes the insurance company to sue
any such third party in his name.
The insured hereby warrants that no release has been given or will be given or settlement or compromise made or agreed upon with any third party who may be liable In damages to the
insured with respect to the claim being made herein.
The said loss or damage did not originate by any act,design or procurement on my/our part no on the part of anyone having interest in the property insured,or in the said policy of Insurance;nor in consequence of
any fraud or evil practice done or suffered by me/us and that no property saved has in any ma?lner been concealed.
It is expressly understood and agreed that the furnishing of this blank or the preparation of proof by a representative of the above insurance company is not a waiver of any of its rights.
State of X
County of
INSURED.
Subscribed and sworn to before me this day of
PAYMENT AUTHORIZATION NOTARY PUBLIC.
Insurance Company,
is hereby requested,authorized and empowered to pay,at its option,as follows:
To The sum of$
To The sum of$
To The sum of$
Amount Claimed Under Policy$
Witness: Insured
Address: By
TITLE
Witness: Insured
Address: By
TITLE