HomeMy WebLinkAboutPO 6690: PROPERTY DAMAGE SETTLEMENT FOR THE CITY OF PORT ARTHUR LANDFILL CAMPACTOR, UNIT #1636 City of cro
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INTEROFFICE MEMORANDUM
Office of Safety & Risk Management
Date: April 25, 2018
To: Harvey L. Robinson, Interim City Manager
From: Trameka A. Williams, Safety & Risk Manager
RE: A Ordinance Approving a Property Damage Settlement in the Amount of$275,000.00 for
Damages to City of Port Arthur Landfill Compactor, Unit#1636
Nature of the request: On December 29, 2017, Landfill Compactor, Unit #1636, caught
on fire at the landfill while being operated by an employee.
Staff Analysis, Considerations: The City has Automobile 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 $275,000.00, less the
$10,000.00 deductible, making the final settlement offer $265,000.00 (Exhibit "A" attached).
This amount is sufficient and reasonable as it relates to property damages to Unit#1636.
Recommendation: I recommend approval of Proposed Ordinance No. 6690 authorizing the
property damage settlement against TML for damage sustained to Landfill Compactor #1636
(2007 Caterpillar Compactor). TML has offered to settle the claim for $275,000.00, less the
$10,000.00 deductible, making the final settlement offer $265,000.00. This is considered a fair
and reasonable settlement.
Budiet Considerations: The funds received will be deposited in the Insurance Proceeds
Account#403-0000-369.85-00.
"Remember we are here to serve the Citizens of Port Arthur"
P.O. NO. 6690
04/22/18 TAW
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE CITY MANAGER
TO EXECUTE THE SETTLEMENT OF MOBILE EQUIPMENT PHYSICAL DAMAGE IN THE
AMOUNT OF $275,000.00 MADE AGAINST TEXAS MUNICIPAL LEAGUE
INTERGOVERNMENTAL RISK POOL (TML) AS A RESULT OF PROPERTY DAMAGE TO
LANDFILL COMPACTOR #1636
WHEREAS. on December 29, 2017, City of Port Arthur Landfill Compactor #1636
(2007 Cat 826H Compactor) was damaged when it was being operated at the landfill 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, it has been determined that damages sustained to Landfill Compactor
#1636 were in excess of the fair market value of the mobile equipment; and,
WHEREAS, TML has offered to settle the claim for $275,000.00, less the physical
damage deductible amount of $10,000, making the final settlement $265,000.00, 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 $275,000.00, less the physical damage deductible amount of $10,000.00, making
the final settlement $265,000.00, which is considered a fair and reasonable settlement.
P.O. NO. 6690
04/22/18 TAW
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:
14.1:
Val Tiieno, City 'ttorn-y'
APPROVED FOR ADMINISTRATION:
Harvey Robinson, Interim City Manager
ATTACHMENT " A"
TML
INTERGOVIiRNMEN'I';\L RISK POOL
Workers' Compensation • Property • Liability
April 05, 2018
Monique LeFlore
Port Arthur
PO Box 1089
Port Arthur, TX 77641-1089
RE: TMLIRP Fund Member: Port Arthur
Date of Loss: December 29, 2017
TMLIRP Claim No: PR0000000073658
Dear Monique:
Enclosed is TMLIRP check in the amount of $265,000.00 ($275,000.00 less $10,000.00
deductible).
Should you have any questions or concerns, please feel free to contact me.
Sincerely,
David Goldston
Claims Specialist
Texas Municipal League Intergovernmental Risk Pool
Encls: Check, Estimate
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