HomeMy WebLinkAboutPO 6710: PROPERTY DAMAGE SETTLEMENT IN THE AMOUNT OF $9,930.00FOR DAMAGE TO CITY OF PORT ARHTUR CECIL REYNOLDS PARK STORAGE BUILDING (4100 36TH STREET) City of
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INTEROFFICE MEMORANDUM
Office of Safety & Risk Management
Date: June 25, 2018
To: Harvey L. Robinson, Interim City Manager
From: Trameka A. Williams, Safety&Risk Manager
RE: An Ordinance Approving a Property Damage Settlement in the Amount of$9,930.00 for
Damages to City of Port Arthur Cecil Reynolds Park Storage Building(4100 36th Street)
Nature of the request: On April 14, 2018, Cecil Reynolds Park storage building sustained
fire damages from an unknown source and was deemed a total loss.
Staff Analysis, Considerations: The City has Physical 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$9,930.00, waiving the $5,000.00 deductible, making
the final settlement offer $9,930.00 (Exhibit "A" attached). The storage building was grossly
underinsured at $6,620.96. This amount is not sufficient to cover all estimated property damages
to the storage building as the adjuster's report states the cost to repair will be approximately
$67,000.00.
Recommendation: I recommend approval of Proposed Ordinance No. 6710 authorizing the
property damage settlement against TML for damage sustained to Cecil Reynolds Park storage
building (4100 36th Street). TML has offered to settle the claim for $9,930.00, waiving the
$5,000.00 deductible, making the final settlement offer $9,930.00. This is considered a fair and
reasonable settlement.
Budget Considerations: The funds received will be deposited in the General Fund
Insurance Proceeds Account#001-0000-369.85-00.
"Remember we are here to serve the Citizens of Port Arthur"
P.O. No. 6710
06/25/18 TAW
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE CITY MANAGER
TO EXECUTE SETTLEMENT OF A PHYSICAL DAMAGE CLAIM
IN THE AMOUNT OF $9,930.00 MADE AGAINST
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML)
AS A RESULT OF PROPERTY DAMAGE TO CECIL REYNOLDS PARK STORAGE
BUILDING (4100 36TH STREET)
WHEREAS, on April 14, 2018, Cecil Reynolds Park storage building sustained fire
damages from an unknown source and was deemed a total loss; 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 $9,930.00, waiving the Physical
damage deductible amount of $5,000.00, making the final settlement offer $9,930.00, 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 $9,930.00, waiving the Physical Damage deductible amount of $5,000.00, making
the final settlement offer $9,930.00, for the claim against TML in substantially the same form as
delineated in Exhibit "A".
P.O. No. 6710
06/25/18 TAW
Page 2 of 2
Section 3. That, a copy of this Ordinance 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:
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Val Tizeno, Cit ttorney
APPROVED FOR ADMINISTRATION:
Harvey L. Robinson, Interim City Manager
EXHIBIT "A"
TML
INTERGOVERNMENTAL RISK POOL
Workers' Compensation • Property • Liability
June 19, 2018
City of Port Arthur
Attn: Monique LeFlore
PO Box 1089
Port Arthur, TX 77641
RE: TMLIRP Fund Member: City of Port Arthur
Date of Loss: April 14, 2018
TMLIRP Claim No: PR0000000078667
Loss Location: 4100 36th Street
Dear Monique LeFlore:
Attached please find TMLIRP's checks in the amount of $9,930.00 for the total loss storage
building and $750.00 for the port-a-john. This amount represents the final payment under the
Replacement Cost Coverage on this loss.
Should you have any questions or concerns, please feel free to contact me.
Sincerely,
VOIIAL
Melanie Friske
Claims Specialist
Texas Municipal League Intergovernmental Risk Pool
Enclosure: TMLIRP Checks
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