HomeMy WebLinkAboutPR 21289: SETTLEMENT OF SUBROGATION PROCEEDS FROM TMLIRP FOR DAMAGES TO EXCAVATOR #1990 //.
City of Er
letas
INTEROFFICE MEMORANDUM
Office of Safety & Risk Management
Date: February 25, 2020
To: Ronald Burton, City Manager
From: Trameka A. Williams, Director of Human Resources
RE: A Resolution Authorizing the City Manager to Execute Settlement of Subrogation Proceeds
from TML-IRP for Damages to Excavator#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, Texas
Municipal League Intergovernmental Risk Pool (TML-IRP) was tasked with recovering the
deductible and subrogation proceeds from Liberty Mutual Insurance Company, the insurance
company used by Johnny's Towing & Recovery, Inc., who damaged the unit during towing.
TML-IRP has recovered the deductible paid by the City in the amount of$10,000.00. TML-IRP
paid the City of Port Arthur's claim in the total amount of$94,309.06
Recommendation: I recommend approval of Proposed Resolution No. 21289 authorizing the
City Manager to execute the settlement of the recovered deductible in the amount of
$10,000.00 made against TML-IRP as a result of Property Damage to Unit#1990.
Budget Considerations: No budgetary impact.
"Remember we are here to serve the Citizens of Port Arthur"
P.R. No. 21289
02/25/20 TAW
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER
TO EXECUTE SETTLEMENT OF SUBROGATION PROCEEDS
MADE AGAINST LIBERTY MUTUAL INSURANCE 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, as a result of the damages, a claim was filed with Texas Municipal
League Intergovernmental Risk Pool (TML-IRP); and,
WHEREAS, a claim was filed against Liberty Mutual Insurance, Inc., by Texas
Municipal League Intergovernmental Risk Pool Intergovernmental Risk Pool (TML-IRP) to
recover the cost associated with rental, replacement and deductibles; and,
WHEREAS, Texas Municipal League Intergovernmental Risk Pool (TML-IRP) has
issued payment for the recovered deductible in the amount of $10,000.00.
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 $10,000.00 for the claim against Liberty Mutual Insurance in substantially the
same form as delineated in Exhibit "A".
READ, ADOPTED, AND APPROVED this day of , AD, 2020, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor , Councilmembers
NOES:
Thurman "Bill" Bartle, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Vii (IA)
Val Tizeno, Ci Attorney
APPROVED FOR ADMINISTRATION:
Ron Burton, City Manager
EXHIBIT " A "
TML
I1111 0%1I1'\SI VI'I HILI: t'tk0L
Workers' Compensation • Property • Liability
November 21, 2019
Subrogation Final Report
Elizabeth Diaz, HR Director VIA REGULAR MAIL
City of Port Arthur
P.O. Box 1089
Port Arthur, TX 77641-1089
Re: TMLIRP Claim No.: PR-87876
Date of Loss: 06/24/2018
Amount Paid by TMLIRP: $95,330.70
Member Property Deductible: $10,000.00
Amount Recovered: $94,309.06
Dear Ms. Diaz:
The above-referenced file was referred to the Subrogation Department of the Texas
Municipal League Intergovernmental Risk Pool for investigation into the facts of the accident, in
order to determine the potential for possible reimbursement of the property damage paid on
behalf of the City of Port Arthur. The net reimbursement we are able to credit to the City of Port
Arthur may impact the loss ratio pursuant to the coverage agreement.
This accident pertains to damage caused by Johnny's Towing & Recovery, Inc. to the City
of Port Arthur's 2013 Komatsu Excavator. Third-Party Insurance has paid TMLIRP to settle its lien.
Settlement funds have been received by TMLIRP; and we are enclosing your full deductible of
$10,000.00. In addition to the Personal Property damage recovered, we were also able to recover
a portion of the loss of use paid to you for the rental of equipment during the repair of your
Excavator. We recovered $29,123.31 of the $40,144.95 paid to you.
We have appreciated the opportunity to be of service to the City of Port Arthur in this
matter. Please do not hesitate to contact us with any questions that may arise regarding the
subrogation of this claim.
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
Elizabeth Diaz, HR Director
City of Port Arthur
November 21,2019
Page 2
Very truly yours,
li ' AkegoLt.,
Rochelle D. Lewis
Pre Litigation Specialist
Subrogation Department
/rdl
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