HomeMy WebLinkAboutPR 19772: PROPERTY DAMAGE SETTLEMENT, TML CITY OF PORT ARTHUR LANDFILL COMPACTOR #1636 Energy
City of Ctry
1r\
rt rt ti r
Texas
INTEROFFICE MEMORANDUM
Office of Safety & Risk Management
Date: May 30, 2017
To: Brian McDougal, City Manager
From: Trameka A. Williams, Interim Safety&Risk Management Coordinator
RE: A Resolution Approving a Property Damage Settlement in the Amount of$32,492.56 for
Damages to City of Port Arthur Landfill Compactor#1636
Nature of the request: On December 22, 2016, Landfill Compactor #1636 (2007 Cat
Compactor)was damaged when the manifold in the engine cracked, blew up and caught on fire.
Staff Analysis, Considerations: The City has Physical Damage insurance coverage through
Texas Municipal League Intergovernmental Risk Pool (TML) with a $10,000.00 deductible.
TML has offered the City a settlement of$42,492.56, less the $10,000.00 deductible, making the
final settlement offer $32,492.56 (Exhibit "A" attached). This amount is sufficient to cover all
estimated property damages for Equipment #1636. If additional damages are discovered, TML
may issue a supplemental payment.
Recommendation: I recommend approval of Proposed Resolution No. 19772 authorizing the
property damage settlement against TML for damage sustained to Landfill Compactor #1636
(2007 Cat Compactor). TML has offered to settle the claim for $42,492.56, less the $10,000.00
deductible, making the final settlement offer $32,492.56. This is considered a fair and
reasonable settlement.
Budget Considerations: The funds received will be deposited in the Solid Waste —
Motor Vehicle Maintenance Account#403-1274-533.43-00.
"Remember we are here to serve the Citizens of Port Arthur"
P.R. No. 19772
05/30/17 TAW
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO EXECUTE SETTLEMENT OF A PHYSICAL DAMAGE CLAIM
IN THE AMOUNT OF $32,492.56 MADE AGAINST
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML)
AS A RESULT OF PROPERTY DAMAGE TO LANDFILL COMPACTOR #1636
WHEREAS, on December 22, 2016, Landfill Compactor #1636 (2007 Cat
Compactor) was damaged when the manifold in the engine cracked, blew up and caught
on fire; and,
WHEREAS, as a result of the damage, a claim was filed with Texas Municipal
League Intergovernmental Risk Pool (TML); and,
WHEREAS, TML has offered to settle the claim for $42,492.56, less the Physical
Damage deductible amount of $10,000.00, making the final settlement offer $32,492.56,
which is considered a fair and reasonable settlement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PORT ARTHUR, TEXAS:
Section 1 . That, the facts and opinions in the preamble are true and correct.
Section 2. That, the City Manager is hereby authorized to execute settlement in the
amount of $42,492.56, less the Physical Damage deductible amount of $10,000.00,
making the final settlement offer $32,492.56, for the claim against TML in substantially
the same form as delineated in Exhibit "A".
P.R. No. 19772
05/30/17 TAW
Page 2 of 2
Section 3. That, a copy of this Resolution be spread upon the minutes of the City
Council.
READ, ADOPTED, AND APPROVED this day of , AD, 2017, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor , Councilmembers
NOES:
Derrick Ford Freeman, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
\100 _ (pi.)
Val Tizenoity ttor ey
APPROVED FOR ADMINISTRATION:
Brian McDougal, City Manager
EXHIBIT " A"
SWORN STATEMENT IN PROOF OF LOSS
$ 7,908,256 7587
AMOUNT OF COVERAGE AT TIME OF LOSS CONTRACT NUMBER
October 01.2016 PR0000000056471
COVERAGE EFFECTIVE DATE TML CLAIM NUMBER
October 01,2017
COVERAGE EXPIRATION DATE
To the Texas Municipal League Intergovernmental Risk Pool of Austin,Texas.
At time of loss,the TMLIRP provided self-insurance coverage through the Interlocal Agreement to:
Port Arthur
against loss by fire to the property described according to the terms and
conditions of said contract and all forms,endorsements,transfers and assignments attached thereto.
1. Time and Origin: A fire loss occurred about the hour of o'clock m.on the 22nd day
of December,2016 . The cause and origin of the said loss were: fire damage to 2007 Cat compactor
SN0404,Sched ID 172
2. Occupancy: The building described, or containing the property described, was occupied at the time of the loss as follows, and for no
other purpose whatever: n/a-Mobile Equipment
3. Title and Interest: At the time of the loss, the interest of your member in the property described therein was
n/a . No other person or persons had any interest
therein or encumbrance thereon,except: n/a
4. Changes: Since the said contract was issued, there has been no assignment thereof, or change of interest, use,occupancy, possession,
location or exposure of the property described,except: n/a
5. Total Insurance: The total amount of coverage upon the property described by this contract was,at the time of the loss
$ 7,908,256 as more particularly specified in the apportionment attached,besides which there was no policy or other contract of
insurance,written or oral,valid or invalid.
6. The Whole Loss and Damage . . . . . . . . . . . . $42,492.56
7. The Actual Cash Value Of Claim . . . . . . . . . . . . $
8. Recoverable Depreciation pending repairs . . . . . . . . . . . $
Less Amount of Deductible . . . . . . . . . . . . . . $ 10,000.00
9. The Amount Claimed under the above numbered contract is . . . . . . . . . $32,492.56
The said loss did not originate by any act,design or procurement on the part of your member,or this affiant;nothing has been done by or
with the privity or consent of your member or this affiant,to violate the conditions of the contract,or render it void;no articles are mentioned
herein or in annexed schedule but such as were destroyed or damaged at the time of said loss; no property saved has in any manner been
concealed,and no attempt to deceive the said TMLIRP,as to the extent of said loss,has in any manner been made. Any other information that
may be required will be furnished and considered a part of this proof.
The furnishing of this blank or the preparation of proofs by a representative of the above self-insurance fund is not a waiver of any of its rights.
State of
County of Authorized Representative of
Subscribed and sworn to before me this day of ,20 .
Notary Public