HomeMy WebLinkAboutPR 20605: SETTLEMENT OF REPAIR DAMAGES AND RENTAL FEES FOR AN EXCAVATOR DAMAGED BY JOHNNY'S TOWING AND RECOVERY (TMLIRP) c«yos =- --
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Texas
INTEROFFICE MEMORANDUM
Office of Safety & Risk Management
Date: December 20, 2018
To: Harvey L. Robinson, Interim City Manager
From: Trameka A. Williams, Asst. Director of Human R:.:A 4.
RE: A Resolution Authorizing the City Manager to Execute Settlement of Repair Damages and
Rental Fees for an Excavator Damaged by Johnny's Towing and Recovery in the Amount of
$81,802.00 Made Against Texas Municipal League (TML) as a Result of Property Damage
to Streets Unit#1990
Nature of the request: On June 24, 2018, Johnny's Towing and Recovery hauler struck an
underpass at Memorial Blvd. and Bluebonnet Ave. damaging Streets Unit#1990.
Staff Analysis, Considerations: As a result of the damages to Streets Unit #1990, a rental
excavator was needed to proceed with projects in the department. The equipment was rented
from Golden Triangle Industries, Inc., on a monthly basis. The monthly rental fees are to be paid
through TML and will be subrogated from Johnny's Towing and Recovery's insurance company,
Liberty Mutual Insurance Company. TML had Waukesha-Pearce Industries, LLC assess the
damages to the excavator and determined the estimated repairs to be approximately $65,185.75.
TML has issued payment for the monthly rental and repair estimates for the excavator in the
amount of $81,802.00, less the Physical Damage deductible amount of $10,000 and the
recoverable depreciation pending repairs amount, making the settlement offer $66,263.25. The
recoverable depreciation amount is not known at this time. Once the repairs are complete, the
recoverable depreciation amount will be issued by TML.
Recommendation: I recommend approval of Proposed Resolution No. 20605 authorizing the
City Manager to execute settlement of repair damages and rental fees for an excavator damaged
by Johnny's Towing and Recovery in the amount of$81,802.00 made against TML as a result of
property damage to Streets Unit #1990.
Budget Considerations: No budgetary impact.
P.R. No. 20605
12/19/18 TAW
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO EXECUTE SETTLEMENT OF A CLAIM FOR REPAIRS IN THE AMOUNT OF $81 ,802.00 MADE
AGAINST TEXAS MUNICIPAL LEAGUE AS A RESULT OF PROPERTY DAMAGE TO STREETS
UNIT #1990
WHEREAS, on June 24, 2018, Johnny's Towing and Recovery hauler struck an underpass at
Memorial Blvd. and Bluebonnet Ave., damaging Streets Unit #1990; and,
WHEREAS, Texas Municipal League (TML) had Waukesha-Pearce Industries, LLC assess the
damages to the excavator and determined the estimated repair damages to be approximately
$81;802.00, and:
WHEREAS, as a result of the damage, a claim was filed with Texas Municipal League (TML);
and,
WHEREAS, Texas Municipal League (TML) has issued payment for the monthly rental and
repair estimates for the excavator in the amount of $81,802.00, less the Physical Damage deductible
amount of $10,000 and the recoverable depreciation pending repairs amount, making the settlement
offer $66,263.25. Once the repairs are complete, the recoverable depreciation amount of $5,538.75 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 the monthly rental
and repair estimates for the excavator in the amount of 581 ,802.00, less the Physical Damage
deductible amount of $10,000 and the recoverable depreciation pending repairs amount, making the
settlement offer $66,263.25. Once the repairs are complete, the recoverable depreciation 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, 2019, 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:
��.
Val Tizeno, it Attorney
Y
APPROVED FOR ADMINISTRATION:
Harvey L. Robinson, Interim City Manager
EXHIBIT " A"
SWORN STATEMENT IN PROOF OF LOSS
$ 9,340,066 7587
AMOUNT OF COVERAGE AT TIME OF LOSS CONTRACT NUMBER
October 01,2017 PR0000000087876
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 collision 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 collision loss occurred about the hour of o'clock _ m.on the 24th day
of June,2018 . The cause and origin of the said loss were: City's 2014 Komatsu PC160LC-8
Excavator S/N 25979 dmgd by Johnny's Towing&Recovery when they hit an overpass with the excavator
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
$ 9,340,066 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 •
•
•
$TBD
7. The Actual Cash Value Of Claim . . . . . . . . . . $81,802.00
8. Recoverable Depreciation pending repairs . . . $TBD-rental/hidden
Less Amount of Deductible . . . $ 10,000.00
9. The Amount Claimed under the above numbered contract is . . . . . . $71,802.00
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