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Home My WebLink AboutPR 20905: TML FOR FLOOD DAMGED LIFT STATIONS AS A RESULT OF HURRICANE HARVEY (AUGUST 30, 2017) • City of 7487 tkil nrt rtlrrcr texas INTEROFFICE MEMORANDUM Office of Safety & Risk Management Date: June 19, 2019 To: Rebecca Underhill, Interim City Manager From: Trameka A. Williams, Asst. Director of Human Reso . 1 RE: A Resolution Approving a Settlement in the Amount of$900,000.00 Made Against Texas Municipal League (TML) for Flood Damaged Lift Stations as a Result of Hurricane Harvey (August 30, 2017) Nature of the request: On August 30, 2017, various lift stations throughout the City sustained flood related damages. Staff Analysis, Considerations: The City filed a claim with Texas Municipal League as a result of the damages. TML has offered to settle the claim in the amount of$900,000.00, which has been determined to be a fair and reasonable settlement. Recommendation: I recommend approval of Proposed Resolution No. 20905 authorizing the property damage settlement against TML for damage sustained to various lift stations throughout the City. TML has offered to settle the claim for $900,000.00. This is considered a fair and reasonable settlement. Budget Considerations: The funds received will be deposited in the Insurance Proceeds Account#147-0000-369.85-00, Project#082617. "Remember we are here to serve the Citizens of Port Arthur" P.R. No. 20905 06/19/19 TAW RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE SETTLEMENT OF A CLAIM IN THE AMOUNT OF $900,000.00 MADE AGAINST TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML) AS A RESULT OF THE FLOOD DAMAGES TO CITY LIFT STATIONS DUE TO HURRICANE HARVEY (AUGUST 30, 2017) WHEREAS, on August 30, 2017, Hurricane Harvey struck the City of Port Arthur, resulting in flood damage to the city lift stations; 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 these claims in the amount of $900,000.00, which has been determined to be 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 $900,000.00 for the claim against Texas Municipal League Intergovernmental Risk Pool (TML). This amount is based on an estimated cost for flood-related repairs. Section 3. That, a copy of this Resolution be spread upon the minutes of the City Council. P.R. No. 20905 06/19/19 TAW 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: rVal izeno, City Attar ey, APPROVED FOR ADMINISTRATION: Rebecca Underhill, Interim City Manager EXHIBIT " A " COMPROMISE AND RELEASE OF SETTLEMENT AGREEMENT 1. The Parties to this Agreement and Settlement of Self-Insurance Benefits (the "Agreement") are Texas Municipal League Intergovernmental Risk Pool ("Risk Pool") and the City of Port Arthur("Port Arthur") (collectively,the "Parties"). 2. The Parties have reached agreement on the cost and scope of covered damages to twelve lift stations damaged during Hurricane Harvey as further identified in Exhibit A. 3. For the mutual consideration expressed in this Agreement, and subject to the approval of the Port Arthur City Council,the Parties have agreed to the following terms: a. The Risk Pool agrees to pay to Port Arthur the total net sum of$900,000 (Nine Hundred Thousand and no/l00 Dollars)(which is in addition to prior payments, chargebacks, deductibles, or any other potentially applicable reduction), in full and complete settlement of any and all self-insurance benefits that Port Arthur has asserted, or could assert, against the Risk Pool or any of its public officials, adjusters, agents, employees, servants, attorneys, officers, successors in interest, insurers, and reinsurers, arising out,but not limited to all claims for self-insurance benefits regarding the properties listed on Exhibit A to this Agreement. Port Arthur acknowledges and stipulates that the payment described in this Paragraph constitutes full and complete payment of all self- insurance benefits sought by Port Arthur regarding the properties identified in Exhibit A to this Agreement. b. Port Arthur acknowledges and agrees that it is solely responsible for any and all tax consequences that may result from its characterization of the sums received under this Agreement for tax purposes. c. Port Arthur acknowledges that the properties identified in Exhibit A are excluded from Property Coverage until the properties have been fully repaired and inspected by the Risk Pool. 4. For the mutual consideration expressed in this Agreement, Port Arthur hereby covenants not to sue and hereby releases, acquits, forever discharges, and holds harmless the Risk Pool, and all of the Risk Pool's public officials, whether elected or appointed, adjusters, agents, employees, servants, attorneys, officers, successors in interest, insurers,reinsurers, and all of their respective heirs, executors, administrators, successors and assigns (the "Risk Pool Released Parties")of and from any and all causes of action, claims, liabilities,demands,or whatever nature, known or unknown, past, present, or future, whether contractual, statutory or in tort, including extra-contractual claims and first-party claims, or otherwise, arising out of or connected in any manner to the request for self-insurance benefits described in this Agreement, including but not limited to all claims that have been or that could be asserted in litigation by Port Arthur,regarding the properties identified in Exhibit A. 5. The Parties represent that they have been fully advised regarding the meaning and effect of this Agreement, that they rely wholly upon their own judgment, belief and knowledge of the nature and extent of the damages alleged to have occurred the properties listed in Exhibit A, and covenant that they have not been influenced to any extent whatsoever or induced to enter into this Agreement in reliance upon any statement,promise,or representation of the other party or any of the other parties hereby released. By the signature of their authorized agents, the Parties acknowledge that they have read this Agreement, that they fully understand it, and that they have executed it of their own free will and accord. Port Arthur further represents and warrants that it has not conveyed,transferred, assigned,pledged or otherwise encumbered any of its rights to self- insurance benefits and that no other person has any interest in those rights. 6. It is further expressly understood that by entering into this Agreement, the Parties make no admission of any liability of any sort, which liability is expressly denied. Instead, this Agreement represents a full and complete settlement of any and all disputes among the Parties,to resolve once and for all every disputed claim that the Parties have asserted or could assert against one another of any of the released parties up through and including the date of this Agreement with respect to self-insurance benefits for the properties described in Exhibit A. Because the Parties intend for this Agreement to bring complete peace and end any disputes now existing between them, they intend for the covenants and releases contained in Paragraphs 3 and 4 to be read as broadly as the language will therein reasonably permit, and in the event any ambiguities are later found to exist, the Parties intend for them to be resolved, by court or jury, in favor of peace and settlement. 7. This Agreement and its exhibits represent the complete agreement of the Parties and the Parties have not agreed to do or omit to do anything not expressly set forth in this Agreement. The Parties agree that this Agreement may not be varied in its terms by an oral agreement or representation otherwise, except by an instrument in writing of subsequent date hereof executed by the Parties. This Agreement is the result of negotiation and, as such, shall be deemed to have been jointly prepared by the Parties. Each Party represents and warrants that it has had an opportunity to review fully the provisions of the Agreement with attorneys of its own choice, as a result of which the Parties hereby acknowledge and agree that any rule of law that provides that ambiguities are to be construed against the drafting party shall not be employed in the interpretation of the Agreement. 8. For the convenience of the Parties, any number of counterparts of this Agreement may be executed by one or more of the parties hereto and each such executed counterpart shall be deemed to be an original instrument binding the Parties upon execution by at least one counterpart by each party. Telecopied or emailed PDF signature pages shall be treated as original signatures. 9. This Agreement shall be governed by the laws of the State of Texas and shall be only enforceable in Travis County. Effective as of the later of the date the Agreement is approved by the governing body of Port Arthur or the Executive Director of the Risk Pool. THE CITY OF TEXAS MUNICIPAL LEAGUE PORT ARTHUR, TEXAS INTERGOVERNMENTAL RISK POOL By: By: Jeffrey R. Thompson, Name: Executive Director Title: Date: Date: EXHIBIT A PR65172 Port Arthur Lift Station Damage ID Address Flood Zone TMLIRP Payment 38 5448 Terrace Ave AH $ 114,611.00 74 4201 46th St B $ 148,758.00 78 8530 Wilson Ave AH $ 131,499.00 127 6400 Blk W Pt Arthur B $ 145,229.00 338 3328 3rd Ave B $ 28,350.00 339 58th St. B $ 4,050.00 342 74th St. AH $ 130,406.00 344 9500 BIk Hwy 69 B $ 59,502.00 352 Highland Heights B $ 30,019.00 357 2105 Cambridge AH $ 6,885.00 362 4850 Houston Ave B $ 45,830.00 369 5929 Roosevelt Ave B $ 54,861.00 Total $ 900,000.00 Page 3 of 3