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Home My WebLink AboutPR 20226: DAMAGE CLAIM (TMLIRP) CITY HALL ANNEX BUILDING City of ort rt 17.1777 INTEROFFICE MEMORANDUM Office of Safety & Risk Management Date: April 25, 2018 To: Harvey L. Robinson, Interim City Manager From: Trameka A. Williams, Safety & Risk Mana k r RE: A Resolution Approving a Property Damage Settlement in the Amount of$50,223.24 for Damages to City of Port Arthur Annex Building (January 4, 2018) Nature of the request: On January 4, 2018, the City of Port Arthur annex building sustained water damage when a sloan valve in the first-floor women's restroom ruptured causing flooding. Staff Analysis, Considerations: The City has Property Damage insurance coverage through Texas Municipal League Intergovernmental Risk Pool (TML) with a $5,000.00 deductible. TML has offered the City a settlement of $50,223.24, less the $5,000.00 deductible and a holdback amount of$4,760.16, making the settlement offer $40,473.08 (Exhibit "A" attached). This amount is sufficient to cover the estimated property damages for repairs to the annex building. Once the repairs are complete, the holdback amount will be issued by TML. If additional damages are discovered, TML may issue a supplemental payment. Recommendation: I recommend approval of Proposed Resolution No. 20226 authorizing the property damage settlement against TML for damage sustained the first-floor annex building. TML has offered to settle the claim for $50,223.24, less the $5,000.00 deductible and a holdback amount of $4,760.16, making the settlement offer $40,473.08. Once the repairs are complete, the holdback amount will be issued by TML. This is considered a fair and reasonable settlement. Budjet Considerations: The funds received will be deposited in the Insurance Proceeds Account#001-000-369.85-00. "Remember we are here to serve the Citizens of Port Arthur" P.R. NO. 20226 04/22/18 TAW RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE SETTLEMENT OF A PHYSICAL DAMAGE CLAIM IN THE AMOUNT OF $50,223.24 MADE AGAINST TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML) AS A RESULT OF PROPERTY DAMAGE TO CITY HALL ANNEX BUILDING WHEREAS, on January 4, 2018, the City of Port Arthur annex building sustained water damage when a sloan valve in the first-floor women's restroom ruptured causing flooding; 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 $50,223.24, less the physical damage deductible amount of $5,000.00 and a holdback amount of $4,760.16, making the settlement offer $40,473.08, which is considered a fair and reasonable settlement. Once the repairs are complete, the holdback amount will be issued by TML. 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 $50,223.24, less the physical damage deductible amount of $5,000.00 and a holdback amount of $4,760.16, making the settlement $40,473.08, which is considered P.R. NO. 20226 4/22/18 TAW a fair and reasonable settlement. Once the repairs are complete, the holdback amount will be issued by TML. 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, 2018, 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: /aye ()Ai Val Tizeno, City Attabrney APPROVED FOR ADMINISTRATION: Harvey Robinson, Interim City Manager ATTACHMENT " A" TML INTERGOVERNMENTAL RISK POOL Workers' Compensation • Property • Liability April 04, 2018 City of Port Arthur Attn: Monique LeFlore PO Box 1089 Port Arthur, TX 77641-1089 RE: Fund Member: City of Port Arthur Date of Loss: January 04, 2018 TMLIRP Claim No: PR0000000074530 Loss Location: City hall annex Dear Ms. LeFlore: Attached please find TMLIRP's check in the amount of $40,473.08 ($50,223.24 - $4,760.16 holdback = $45,473.08 - $5,000.00 deductible), as the initial Actual Cash Value payment for the above-referenced claim. Please sign and return the enclosed Proof of Loss in the envelope provided. Port Arthur has Real and Personal Property Coverage with the Replacement Cost Option. Under the coverage provisions, an initial Actual Cash Value payment is made until the loss or damaged property is actually repaired or replaced. To file a claim for the recoverable depreciation, the repairs or replacements should be made as soon as reasonably possible after the loss or within two years from the date of occurrence. Please provide a timeline summarizing the anticipated dates that the repairs or replacements are scheduled to begin and the anticipated completion date. Once the repairs are completed and the cost exceeds the Actual Cash Value payment and deductible, the final receipts should be submitted directly to TMLIRP for review of any supplemental payments due under the Replacement Cost Coverage. Should you have any questions or concerns, please feel free to contact me. Sincerely, Melanie Fn •e Claims Specialist Texas Municipal League Intergovernmental Risk Pool Enclosures: TMLIRP Check, Copy of Repair Estimate, Proof of Loss, Return Envelope Texas Municipal League Intergovernmental Risk Pool 1821 Rutherford Lane, First Floor • Austin, Texas 78754 • (512)491-2300 • (800)537-6655 Texas Only P.O. Box 149194 • Austin, Texas 78714-9194 SWORN STATEMENT IN PROOF OF LOSS $ 193,335,221.72 75S7 AMOUNT OF COVERAGE AT TIME OF LOSS CONTRACT NUMBER October 01,2017 PR0000000074530 COVERAGE EFFECTIVE DATE TML CLAIM NUMBER October 01,2018 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 water damage 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 property loss occurred about the hour of 5 o'clock p m.on the 4th day of January,2018 . The cause and origin of the said loss were: water valve on toilet caused major leak in city hall annex 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 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 $ 6,775,537.90 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 . . . $50,223.24 7. The Actual Cash Value Of Claim . $45.223.34 8. Recoverable Depreciation pending repairs $ 4,760.16 Less Amount of Deductible . . $ 5,000.00 9. The Amount Claimed under the above numbered contract is . $40,473.08 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