HomeMy WebLinkAboutPR 22230: APPROVING A PROPERTY DAMAGE SETTLEMENT IN THE AMOUNT OF $465,634.00 FOR DAMAGES TO CITY OF PORT ARTHUR LANDFILL COMPACTOR #1636 Y _ J City of Cfty �4 )4) ort rtltu — Texas INTEROFFICE MEMORANDUM Office of Safety & Risk Management Date: November 1, 2021 To: Ron Burton, City Manager From: Trameka A. Williams, Director of Human Resources RE: A Resolution Approving a Property Damage Settlement in the Amount of$465,634.00 for Damages to City of Port Arthur Landfill Compactor#1636 Nature of the request: On October 4, 2021, Landfill Compactor #1636 (2007 CAT Compactor) was damaged when the unit caught on fire. The unit was on standby to have the radiator and AC condenser cleaned but would not start after the cleaning. The master switch was cut-off; however, the machine began to smoke, and a massive fire incurred. Staff Analysis, Considerations: The City has Physical Damage insurance coverage through Texas Municipal League Intergovernmental Risk Pool (TMLIRP). TMLIRP has offered the City a settlement of $465,634.00 which is a fair and considerate offer (Exhibit "A" attached). If additional damages are discovered, TMLIRP may issue a supplemental payment. Recommendation: I recommend approval of Proposed Resolution No. 22230 authorizing the property damage settlement against TML for damage sustained to Landfill Compactor #1636 (2007 CAT Compactor). TMLIRP has offered to settle the claim for $465,634.00, which is considered a fair and reasonable settlement. Budget Considerations: The funds received will be deposited in account number 001- 00-000-4744-00-00-000,HINGF. "Remember we are here to serve the Citizens of Port Arthur" P.R. No. 22230 1 1/01/21 TAW RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE SETTLEMENT OF A PHYSICAL DAMAGE CLAIM IN THE AMOUNT OF $465,634.00 MADE AGAINST TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TMLIRP) AS A RESULT OF PROPERTY DAMAGE TO LANDFILL COMPACTOR #1636 WHEREAS, on October 4, 2021 , Landfill Compactor #1636 (2007 CAT Compactor) was damaged when the unit caught fire; and, WHEREAS, as a result of the damage, a claim was filed with Texas Municipal League Intergovernmental Risk Pool (TMLIRP); and, WHEREAS, TMLIRP has offered to settle the claim for $465,634, which is considered 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 $465,634 for the claim against Texas Municipal League Intergovernmental Risk Pool (TMLIRP) in substantially the same form as delineated in Exhibit "A". 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, 2021, 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: %/I Val Tizen , C. Attorney APPROVED FOR ADMINISTRATION: Ron Burton, Interim City Manager EXHIBIT " A " TML INTERGOVERNMENTAL RISK POOL WORKERS'COMPENSATION • PROPERTY • LIABILITY October 27, 2021 Port Arthur Attn: Trameka Williams, HR Director 444 4th St. Port Arthur, TX 77640 RE: TMLIRP Fund Member: Port Arthur Date of Loss: October 04, 2021 TMLIRPClaim No: PR0000000153794 Fire damage to 2007 Cat Compactor ME ID #30 (Landfill) Dear Trameka: Please find enclosed TMLIRP's check in the amount of$465,634.00 for replacement cost payment of the claim. The file will remain open pending the invoice for reasonable rental costs for the rental unit. Please don't hesitate to give me a call should you have any questions. Sincerely, L ijuirl\___ Lisa Kutch Senior Claims Specialist Texas Municipal League Intergovernmental Risk Pool (800) 537-6655, ext. 2412 Ikutch@tmlirp.org Ends: TMLIRP Check TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL P.O. Box 149194 • Austin,Texas 78714-9194 • www.tmlirp.org