HomeMy WebLinkAboutPO 6807: APPROVING A PROPERTY DAMAGE SETTLEMENT IN THE AMOUNT OF $138,663.00 FOR DAMAGES TO CITY OF PORT ARTHUR 2018 FREIGHTLINER TRASH TRUCK #2280 ' 1
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INTEROFFICE MEMORANDUM
Office of Safety & Risk Management
Date: November 6, 2019
To: Ron Burton, Interim City Manager
From: Elizabeth Diaz,Assistant Director of Human Resources
Trameka A. Williams, Director of Human Resources
RE: An Ordinance Approving a Property Damage Settlement in the Amount of$138,663.00 for
Damages to City of Port Arthur 2018 Freightliner Trash Truck#2280
Nature of the re1uest: On June 27, 2019, Trash Truck #2280 (2018 Freightliner) was
damaged when the operator was taking the boom out of the unit to dump trash and the operator
failed to unlock the back door causing the rear frame to crack due to weight. As a result of the
action, Trash Truck#2280 was a total loss.
Staff Analysis, Considerations: The City has Physical Damage insurance coverage through
Texas Municipal League Intergovernmental Risk Pool (TML) with a $2,500.00 deductible.
TML has offered the City a settlement of$141,163.00 less the $2,500.00 deductible, making the
final settlement offer$138,663.00(Exhibit"A"attached).
Recommendation: I recommend approval of Proposed Ordinance No. 6807 authorizing the
property damage settlement against TML for damage sustained to Trash Truck #2280 (2018
Freightliner). TML has offered to settle the claim for$141,163.00, less the $2,500.00 deductible
making the final settlement offer $138,663.00. This is considered a fair and reasonable
settlement.
Bud.et Considerations: The funds received will be deposited in Account #403-0000-
369.85-00.
"Remember we are here to serve the Citizens of Port Arthur"
P.O. No. 6807
11/6/19 ed/taw
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE CITY MANAGER
TO EXECUTE THE SETTLEMENT OF AN AUTOMOBILE PHYSICAL DAMAGE CLAIM
IN THE AMOUNT OF $141 ,163.00 MADE AGAINST
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML)
AS A RESULT OF PROPERTY DAMAGE TO TRASH TRUCK #2280
WHEREAS, on June 27, 2019, Trash Truck #2280 (2018 Freightliner), was
damaged when the operator was taking the boom out of the unit to dump trash and failed
to unlock the back door causing the rear frame to crack due to weight; 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 $141 ,163.00, less the
Automobile Physical Damage deductible amount of $2,500.00, making the final settlement
offer $138,663.00, which is considered a fair and reasonable settlement; and,
WHEREAS, the Director of Human Resources recommends that the City Manager be
authorized to accept and execute the settlement agreement from TML as stated above.
NOW, THEREFORE, BE IT ORDAINED 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.
P.R. No. 6807
11/6/19 ed/taw
Page 2 of 2
Section 2. That, the City Manager is hereby authorized to execute settlement in the
amount of $141 ,163.00, less the Automobile Physical Damage deductible amount of
$2,500.00, making the final settlement offer $138,663.00 for the claim against TML in
substantially the same form as delineated in Exhibit "A".
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, 2019, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following
vote: AYES: Mayor , Councilmembers
NOES:
Thurman "Bill" Bartie, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
rn ,DeG� l �
Va eno, ity Attorney
APPROVED FOR ADMINISTRATION:
Ron Burton, Interim City Manager
EXHIBIT " A "
SWORN STATEMENT PROOF OF LOSS (Automobile)
Policy No. 7 587 Ctf.No.
Policy Coverage at Time of Loss Automobile Physical Damage Company Claim No. A00000000104664
Date Issued October 01,2018 Agent Texas Municipal League Intergovernmental Risk Pool
Date Expires October 01,2019 Agency At Austin,Texas
To the Texas Municipal League Intergovernmental Risk Pool
Of Austin,Texas By your policy of insurance described above,
you insured Port Arthur
(HEREINAFTER CALLED THE MEMBER)AGAINST LOSS OF OR DAMAGE TO THE AUTOMOBILE DESCRIBED AS FOLLOWS:
TRADE NAME TYPE OF BODY MODEL MODEL
DESCRIPTION (IF TRUCK STATE TONNAGE) (YEAR) VEHICLE IDENTIFICATION NUMBER
•
OF Freightliner Truck-Garbage 108SD 2018 3ALHG5FE4JDKA1374
AUTOMOBILE g g
TIME AND A loss caused by Damage in loading or unloading occurred on the 271h day of June, 2019 ,about the hour of .M.,the full
ORIGIN particulars of which are as follows: (State where and how it occurred)
Member driver was taking the boom out o the unit to dump trash and failed to unlock the back door causing the frame tc
crack due to weight.
TITLE AND The insured was the sole owner of the automobile at the time of the loss or damage and no other person had any interest therein,by
INTEREST bailment lease,condition sale,mortgage or other encumberance or otherwise,except
OTHER At the time of this loss,there was no other insurance on said automobile covering the same perils except:
INSURANCE
USE At the time of this loss,the said automobile was being used for
(PLEASURE,BUSINESS OR COMMERCIAL PURPOSE)
and was not being used to carry passengers for compensation or rental or leased of for any illegal purpose except:
THE ACTUAL of the property described,the actual loss and damage sustained,and the amount claimed under this Policy are as follows:
CASH VALUE CASH VALUE WHOLE LOSS AMOUNT DEDUCTIBLE AMOUNT CLAIMED UNDER THIS POLICY
$141,163.00 $2,500.00 $138,663.00
SUBROGATION To the extent of the payment made or advanced under this policy,the insured hereby assigns,transfers and sets over to the insurance company all rights,claims or interests that he has
against any person,firm or corporation liable for the loss or damage to the property for which payment is made or advanced. He also hereby authorizes the insurance company to sue
any such third party in his name.
The insured hereby warrants that no release has been given or will be given or settlement or compromise made or agreed upon with any third party who may be liable in damages to the
insured with respect to the claim being made herein.
The said loss or damage did not originate by any act,design or procurement on my/our part nor on the part of anyone having interest in the property insured,or in the said policy of Insurance;nor in consequence of
any fraud or evil practice done or suffered by me/us and that no property saved has in any manner been concealed.
It is expressly understood and agreed that the furnishing of this blank or the preparation of proof by a representative of the above insurance company is not a waiver of any of its rights.
State of X
County of
INSURED.
Subscribed and sworn to before me this day of
PAYMENT AUTHORIZATION NOTARY PUBLIC.
•
Insurance Company,
is hereby requested,authorized and empowered to pay,at its option,as follows:
To The sum of$
To The sum of 3
To The sum of 3
Amount Claimed Under Policy 3
Nhtness: Insured
Address: By
TITLE
Witness. Insured
Address: __ _ By _ _