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HomeMy WebLinkAboutPO 5867: POLICE UNIT #1551 - PROPERTY DAMAGE SETTLEMENTCITY OF PORT ARTHUR SAFETY 8~ RISK MANAGEMENT MEMORANDUM TO: Stephen B. Fitzgibbons, City Manager ~_; FROM: Lisa Cotten, Safety 8 Risk Management Coordinator ^'- G DATE: March 28, 2008 SUBJECT: An Ordinance Approving a Property Damage Settlement in the Amount of $10,425.00 for Damages to City of Port Arthur Police Unit #1551 COMMENTS RECOMMENDATION: I recommend approval of Proposed Ordinance No. 5867 authorizing the property damage settlement against Nicholas Usrey, Nancy Laurence, and Safeco Insurance for damage sustained to Police Unit #1551 (2005 Ford Crown Victoria). The amount of the proposed settlement is $10,425.00. It has been determined that damages sustained by Police Unit #1551 rendered the vehicle a total loss: The fair marlcetvalue of the vehicle totals $10,425.00; therefore, this is considered a fair and reasonable settlement. On February 15, 2008, City Police Unit #1551 was struck by a vehicle operated by Mr. Usrey and owned. by Ms: Laurence. The accldent investigation revealed that Mr. Usrey was responsible for the acddent A property damage claim was made against Safeco Insurance; Ms. Lawrence's liability insurance carrier, for the cost of damage expenses to the police vehicle. After review and inspection of Police Unit #1551, it was determined that damages were in excess of the fairmarket ' value of the police vehicle. Safeco Insurance has offered the City $10,425.00 to settle this property damage claim on behalf of Ms. Laurence, in exchange for transfer of title of Police Unit #1551 to Safeco Insurance (Attachment "A'~. Texas Munidpal League (TML) is pursuing reimbursement of the workers' compensation Gaim on the City's behalf. t3UDGETARY/FISCAL EFFECT: The funds received will be deposited in the account recommended by the Finance Director. STAFFINGIEMPLOYEE EFFECT: No effect on staffing levels: SUMMARY: I recommend approval of Proposed Ordinance No. 5867 authorizing the property damage settlement against Nicholas Usrey, Nancy Laurence, and Safety Insurance for damage sustained to Police Unit.#1551 (2005 Ford Crown Victoria). The amount of the proposed settlement is $10,425.00. It has been determined. that damages sustained by Police Unit #1551 rendered the vehicle a total loss. The fair marketvalue of the vehicle totals $10,425.00; therefore, this is considered a fair and reasonable settlement "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR" r ORDINANCE NO. P:O. No. 5867 3/28108 LJC AN ORDINANCE AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EXECUTE SETTLEMENT OF THE PROPERTY DAMAGE CLAIM IN THE AMOUNT OF $10,425.00 MADE AGAINST NICHOLAS USREY, NANCY LAURENCE, AND SAFECO INSURANCE WHEREAS, on February 15, 2008, City of Port Arthur Police Unit #1551 (2005 Ford Crown Victoria) was damaged when struck by an auto operated by Nicholas Usrey and owned by Nancy Laurence;' and, WHEREAS, as a result of said collision, the City of Port Arthur has filed a daim for property damage against Mr. Usrey, Ms. Laurence,. and Safeco Insurance for the cost of damages of Police Uriit #1551; and, WHEREAS, it has been determined that damages sustained by Police Unit #1551 were in excess of the fair market value of the vehicle; and, WHEREAS, Safeco Insurance has offered to settle the property damage daim for $10,425.00, which is considered a fair and reasonable settlement amount forthe damage sustained (Attachment "A'~. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. The fads and opinion in the preamble of this Ordinance are true and correct. Section 2. That the City Manager is hereby authorized to do all things necessary to accept $10,425.00 from Safeco Insurance in settlement of the City's property damage daim, iri exchange for transfer of title of Police Unit #1551 to Safeco Insurance. Section 3. That a copy of this Ordinance be spread upon the minutes of the City Councll. READ, ADOPTED, AND APPROVED this day of , AD, 2008, at a Meetirig of the City Coundl of the City of Port Arthur, Texas, by the following vote: AYES:. Mayor Coundlmembers NOES: Deloris "Bobbie° Prince, Mayor ATTEST: Tem Hanks, Acting City Secretary APPROrV~~D~AS T~ ~M: j Mark T. Sokolow, City Attorney APPROVED FOR ADMINISTRATION: ~, Stephen B. Fitzgibbons, City Manager Safeco Insurance Company of Illinois 22425 Appleway Floor 2. liberty Lake, WA 99019-8571 ATTACHMENT "A" March 11; 2008 City Of Port Arthur Attn L Cotten Po Box 1089 Port Arthur; TX 77640 Insured Name: Nancy Lawrence Susan Birge Policv Number: Y7349564 Loss Date: February 15; 2008 Claim Number:' 792508063007 Dear Ms. Cotten: Mailing Address: PO Box 3838 SpoF:ane, WA99220.3838 Phone: (800)332-3226 (800)332-3226 Faz: (888)268-8840 Please take. a moment to read this entire letter as it will fully explain how your total loss and the sale of the salvage will be handled. It is important that you understand this process so that we are able to pay your claim as quickly as possible. Thank you for taking the time to discuss your loss with us. The value of your 2005 FORD CROWN VICTORIA 2FAFP71W95X129709 was determined based on similar vehicles for sale in your local market, considering pre-accident condition, accessories, options, and mileage. Per our conversation, we discussed the following: Safeco Retains You Retain Actual Cash Value: $10,425.00 $10,425.00 Less Salvage Value: N/A - $2,84622 Total Payout for Total Loss:. $10,425.00 $7,578.78 We understand atthis time [flat you have not yet decided whether you intend to retain [he salvage of your 2005 FORD CROWN VICTORIA. , If you decide to keep the vehicle: • Please contact us before March 26, 2008. • If we do not hear from you by this date, we will assume you wish to retain and will handle accordingly. L`you decide you do not want to keen the vehicle:. ____ • Please contact us and we will make arrangements to have the vehicle picked up. • Please send us yow signed title. Please send the properly signed title documents to: Safeco Claims U2059 11A6 9akco aM tln Sakes logo ate i•pkEenW ba0eman:a of Sakeso earyo2tlan Page 2 Nancy Laurence Susan Birge March 11, 2008 Attn jandie PO Box 3838 Spokane WA 99220-3838 If you wish to send the documents via Fed Ex or UPS use the following address Safeco claims At[n JANDIE 22425 EAppleway Liberty Lake WA 99019-8571 Please contact yow agent to discuss the availability of coverage for salvaged vehicles. Or if Safeco retains, please contact yow agent to discuss the removal of this vehicle from your policy. Yow agent is yow best resowce for polic}' issues. They can answer yow questions about how this claim may affect your policy. In order to orocess the salvage of vow vehicle we need the following from vou: Title: Please sign title and send in the enclosed envelope. Please make swe if a "Lien Holder' is listed on the title that they have released their interest to the vehicle either on the title itself or on a sepazate document. Please forwazd any such documents with yow title. Please remember that a title is a legal document and the state will not process a title that has been altered in any way. This means r1o scratch-outs, no "white-out^ and do not write any unnecessary information anywhere else on the title. Please read this information carefully as your payment will be delayed if this legal document is not signed properly. Titles not signed correctly will only delay the process a~ in most instances, delay the processing of yow payment. If you have any questions prior to signing the title, please call and I will be happy to help you out. Sincerely, Jane Diehl Safeco hiswance Company of Illinois (800)332-3226 Ext:522826 Fax: (888)268-8840 jandie@safeco.com i cnaoss +aae