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HomeMy WebLinkAboutPR 22456: AUTHORIZING THE EXECUTION OF A SETTLEMENT OF A PHYSICAL DAMAGE CLAIM OF DAMAGE TO PUBLIC WORKS UNIT #2110 , 1 City Of s <� , J urt rthrri�`�� INTEROFFICE MEMORANDUM Office of Safety & Risk Management Date: March 22,2022 TO: Ronald Burton, City Manager FROM: Trameka Williams,Director of Human Re e RE: A Resolution Approving a Property Damage Settlement in the Amount of$74,671.92 for Damages to City of Port Arthur Public Works Department Unit#2110 Nature of the request: On February 18, 2022, Public Works — Streets Division equipment was damaged when water contaminated the hydraulic system. Staff Analysis, Consideration: City has Mobile Equipment Physical Damage insurance coverage through Texas Municipal League Intergovernmental Risk Pool (TML-IRP) with a $10,000.00 deductible. TML-IRP has offered the City of Port Arthur a settlement of $74,671.92 less the $10,000.00 deductible, making the final settlement offer $64,671.92 (Exhibit "A" attached) which is considered a fair and reasonable settlement for Unit #2110. If additional damages are discovered,TML-IRP may issue a supplemental payment. Recommendation: I recommend approval of Proposed Resolution No. 22456 authorizing the mobile equipment property damage settlement against TML-IRP for damage sustained to Public Works Department unit #2110 (Caterpillar 938M). TML-IRP has offered to settle the claim for $74,671.92.00, less the $10,000.00 deductible,making the final settlement offer$64,671.92. This is considered a fair and reasonable settlement. Bucket Considerations: The funds received will be deposited in the Insurance Proceeds Account#147-00-000-4744-00-00-000, HR— Ins Proceeds General FS 001. "Remember,we are here to serve the citizens of Port Arthur." P.R. No. 22456 03/22/22 TAW RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE SETTLEMENT OF A PHYSICAL DAMAGE CLAIM IN THE AMOUNT OF $74,671.92 MADE AGAINST TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML-IRP) AS A RESULT OF PROPERTY DAMAGE TO PUBLIC WORKS UNIT #2110 WHEREAS. on February 18, 2022, the City of Port Arthur Public Works Streets unit, #2110 (Caterpillar 938M), was damaged when water contaminated the hydraulic system, and; WHEREAS, as a result of the damage, a claim was filed with Texas Municipal League Intergovernmental Risk Pool (TML-IRP), and; WHEREAS, Texas Municipal League Intergovernmental Risk Pool (TML-IRP) has offered to settle the claim for $74.671.92 less the mobile equipment physical damage deductible amount of $10,000.00, making the final settlement offer $64,671.92, 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 $74,671.92, less the physical damage deductible amount of $10,000.00. making the final settlement $64,671.92, which is considered a fair and reasonable settlement as delineated in "Exhibit A". P.R. No. 22456 03/22/2022 TAW 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. 2022. at a Meeting of the City Council of the City of Port Arthur. Texas, by the following vote: AYES: Mayor , Councilmembers NOES: Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: 4 U . / % I i_ Val Tizeno, ity Attorney APPROVED FOR ADMINISTRATION: Ronald Burton, City Manager EXHIBIT " A " TML INTERGOVERNMENTAL RISK POOL WORKERS'COMPENSATION • PROPERTY • LIABILITY March 10, 2022 Trameka Williams City of Port Arthur PO Box 1089 Port Arthur, TX 77641-1089 RE: TMLIRP Fund Member: Port Arthur Date of Loss: February 14, 2022 TMLIRP Claim No: PR0000000164155 Dear Trameka Williams: A TMLIRP check in the amount of $64,671.92 will follow separately. This amount represents payment under the Replacement Cost Coverage on this loss. Should you have any questions or concerns, please feel free to contact me at (512) 491-2359. Sincerely, Jennifer Bolger Claims Specialist Texas Municipal League Intergovernmental Risk Pool jennifer.bolger@tmlirp.org TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL P.O. Box 149194 • Austin,Texas 78714-9194 • www.tmlirp.org --.10100""-- PUr1 Property Damage Appraisers, Beaumont, TX IOW 100 Energy Way,Suite 1900 __ •- Fort Worth,TX 76102 Phone:(888)626-0624 Fax:(800)866-4732 Equipment&Condition Report Owner: City of Port Arthur File#: 082-203-0001 Claim #: PR164155 Vehicle: 2016/Caterpiller/938M/FRONT END Date Of Loss: 2/14/2022 Identification&Mileage Condition Serial #: CAT0938MH33R01733 Color: YELLOW Paint Condition: Good Plate/State: NONE/TX Hub Meter: Interior Condition: Good Odometer: 1975 Paint Code: Overall Condition: Good HazMat Spec: Chassis Construction Engine Engine: Cat Cylinders: 6 Manufacture Date: 2016 Horsepower: 188 Turbo: False Bumper: Fuel: Diesel Hot Shutdown: False Hood Const: Oil Level: Engine Brake: False Frame Const: Coolant Level: Engine Liters: Cab Type: Blower: NO APU: NO Cab Construction: Cab Size: Transmission Aerodynamics: Trans: HYDROSTATIC Speeds: Hydrostatic Aux Trans: Aux Speeds: Trans Make: Trans Model: Wheels Chassis Mechanical Front Wheels: Brakes: PTO: Rear Wheels: Steering: Wet Kit: False Fuel Tanks: Fifth Wheel: Tank Capacity: 5th Wheel Type: # of Tanks: Exhaust: Wheelbase: Suspension&Tires Front Axle Capacity: Interaxle: False Rear Axle Capacity: #of Axles: Front Suspension Type: #of Speeds: Tank Capaciity: Rear Axle Ratio: #of Tanks: Wheelbase: Date Submitted to TMLIRP 03/10/2022 08.15 AM AdjustRiter^ Copyright©2021 PPG Industries.All rights reserved. Page 1 of 1 pop l-- Property Damage Appraisers, Beaumont, TX IlaiTh 100 Energy Way,Suite 1900 , Fort Worth,TX 76102 Phone:(888)626-0624 Fax:(800)866-4732 Email:pdabeaumont@pdaorg.net Date: 3/9/2022 Year: 2016 Reference #: 040910000153 Make: Caterpiller Estimated By: David Fuller Model: 938M Name: City of Port Arthur Unit#: 2110 Address: 103 HENRY 0 MILLS BLVD VIN: CAT0938MHJ3R01733 City/State/Zip: PORT ARTHUR,TX 77640 Style: FRONT END LOADER Phone: 409-983-8539 Plate/State: NONE-TX Inspected Date: WMI: FIN: Claimant: Anthony Grogan Odometer: 1975 Date of Loss: 2/14/2022 Color: YELLOW Claim Contact: Jennifer Bolger Date Of Loss: 2/14/2022 Contact Title: Inspected At: Contact Phone: (512)491-2359 x Claim Number: PR164155 Contact Email: anthony.grogan@portarthurtx.gov File Number: 082-203-0001 Operation Description Part# Type Labor Paint Parts Misc Cooling 1 * Replace Fan Hub Motor(Cat) New M 5.00 1 @ $1,639.00 $1,639.00 2 ^ Repair Purge Cylinders M 10.00 3 ^ Replace Clean Hydraulic Tank NM M 3.00 1 @ $954.00 $954.00 Charge Air Cooler 4 Replace Charge Air Cooler New M 1.30 1 @ $1,321.07 $1,321.07 5 Replace Rear Hose(Right) New M 0.60 1 @ $66.88 $66.88 6 Replace Rear Hose(Left) New M 0.60 1 @ $64.97 $64.97 7 ^ Replace Clean Oil Cooler NM M 2.00 1 @ $850.00 $850.00 Front Steering a * Replace Power Steering Pump New M 12.00 1 @ $3,762.00 $3,762.00 9 ^ R&I Hydraulic Pumps M 14.00 1 @ $250.00 $250.00 10 ^ R&I Control Valves M 8.00 11 ^ R&I Lift Cylinders M 10.50 1 @ $150.00 $150.00 12 ^ R&I New Part M 9.00 1 @ $125.00 $125.00 Engine (Caterpillar) 13 * Replace Implement Pump A/M M 8.00 1 @ $5,071.00 $5,071.00 14 * Replace Hydrostastic Motor A/M M 10.00 1 @ $7,782.00 $7,782.00 15 * R&I Hydraulic Tank M 4.00 16 * Replace Control Valves A/M M 18.00 1 @ $5,783.00 $5,783.00 17 * Replace Hydraulic Lines NM M 24.00 1 @ $9,499.00 $9,499.00 18 ^ Replace Hydraulic Oil Cooler and Fan Motor M 15.00 1 @ $400.00 $400.00 19 ^ R&I Tilt Cylinder M 3.00 1 0 $100.00 $100.00 Day Cab Exterior 20 R&I Day Cab Assembly 12.00 1 @ $300.00 $300.00 21 ^ R&I Hydraulic Tank M 5.00 1 @ $100.00 $100.00 Freight&Delivery 22 Replace Freight&Delivery Charges New 1 @ $1,250.00 $1,250.00 23 ^ Repair Lift and Block Machine M 4.50 24 ^ Replace Field Service Charge and NM M 6.00 1 @ $250.00 $250.00 Troubleshooting AdjustRite"' Copyright C 2021 PPG Industries.All rights reserved. Page 1 of 4 Date Submitted to TMLIRP:03/10/2022 08.15 AM Property Damage Appraisers, Beaumont, TX + ' 100 Energy Way, Suite 1900 _,1111"w. Fort Worth,TX 76102 Phone:(888)626-0624 Fax:(800)866-4732 Email:pdabeaumont@pdaorg,net Date: 3/9/2022 Year: 2016 Reference#: 040910000153 Make: Caterpiller Estimated By: David Fuller Model: 938M Name: City of Port Arthur Unit #: 2110 Operation Description Part# Type Labor Paint Parts Misc Maintenance &Service 25 * Repair Check All Fluid Levels&Lamps 3.00 26 * Repair Pressure Wash Unit 5.00 27 * Repair Road Test 1.50 28 ^ Replace Drain and Refill Hydraulic System A/M M 6.50 1 @ $549.00 $549.00 Calculated Values 29 ^ Shop Supplies Mtrls $150.00 An '*' indicates user change of database part and 'A' indicates manually entered or custom database rows. Estimate Notes: WATER WAS FOUND IN FUEL AND OIL SYSTEM AND CONTAMINATED THE LINES AND ALLOWED THE FILTERS TO BECOME CLOGGED AND STOPPED UP AND CAUSED DAMAGE TO THE HYDRAULIC PUMPS AND LINES AND FRONT END LOADER STOPPED RUNNING AND OPERATING PROPERLY.THE SYSTEM AND FILTERS WERE CHECKED AND FOUND THE SYSTEM WAS CONTAMINATED WITH WATER AND OVER A PERIOD OF TIME DAMAGE THE HYDRAULICS AND CYLINDERS.PUMPS AND LINES NEED TO BE REPLACED AND CLEANED AND RESET. Summary Amount Rate Disc Total Body Labor 21.5 $170.00 0.00% $3,655.00 Paint Labor 0.0 $170.00 0.00% $0.00 Mechanical 180.0 $170.00 0.00% $30,600.00 Frame 0.0 $170.00 0.00% $0.00 Misc. Labor 0.0 $170.00 0.00% $0.00 Parts $40,266.92 0.00% $40,266.92 Misc. $150.00 Sub-total $74,671.92 Sales Tax 0.00 Total $74,671.92 Betterment $0.00 Deductible $0.00 Grand Total $74,671.92 AdjustRite'" Copyright©2021 PPG Industries.All rights reserved. Page 2 of 4 Date Submitted to TMLIRP:03/10/2022 08:15 AM Pon Property Damage Appraisers, Beaumont, TX 100 Energy Way,Suite 1900 ,1 1 Fort Worth,TX 76102 Phone:(888)626-0624 Fax:(800)866-4732 Email:pdabeaumont©pdaorg.net Date: 3/9/2022 Year: 2016 Reference #: 040910000153 Make: Caterpiller Estimated By: David Fuller Model: 938M Name: City of Port Arthur Unit#: 2110 Repair Facility: Appraised By: David Fuller Address: License#1: License#2: Phone: () - Phone: 409-273-4854 Email: dlfuller3143@gmail.com Email: Agreed With: License 1: License 2: Fed Tax ID: AdjustRite'" Copyright©2021 PPG Industries.All rights reserved. Page 3 of 4 Date Submitted to TMLIRP:03/10/202208:15 AM 1� Property Damage Appraisers, Beaumont, TX 100 Energy Way, Suite 1900 41111 Fort Worth,TX 76102 Phone:(888)626-0624 Fax:(800)866-4732 Email:pdabeaumonttpdaorg.net Date: 3/9/2022 Year: 2016 Reference #: 040910000153 Make: Caterpiller Estimated By: David Fuller Model: 938M Name: City of Port Arthur Unit#: 2110 TERMS&CONDITIONS THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF REPLACEMENT PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THESE PARTS RATHER THAN THE MANUFACTURER OF YOUR VEHICLE. Notice-This is not an authorization for repair. All costs of repairs are the sole responsibility of the vehicle owner, who must authorize all repairs. Failure to deliver a copy of this appraisal to the repair shop by the vehicle owner may result in out of pocket expense to the vehicle owner. Providing a copy of this appraisal is not an acceptance of coverage or liability and all issues of coverage or liability are to be determined by the insurance carrier. Notice - Deductibles may or may not be addressed or included in this appraisal. If applicable, the repairer should collect the deductible from the vehicle owner prior to the release of the repaired vehicle. Supplement Procedure Notice - It is the repairer's responsibility to send notification of the supplement via fax or email including a statement whether repairs have been halted on the vehicle. PDA will respond to your request within 24 hours. Please allow 48 hour to complete supplement processing from the date of request to ensure timely release of the vehicle. Notice -This appraisal is subject to the complete review and approval by the assigning insurance company to assure accuracy,cost effectiveness, and that accepted industry repair standards are met.The insurance company listed has the right to accept or reject any part or all of this appraisal or make any changes they feel necessary. Any person who knowingly presents a false or fraudulent claim for the payment of a loss is guilty of a crime and may be subject to fines and confinement in state prison. Profile ID: Beaumont Texas Default Signed Date AdjustRite'" Copyright©2021 PPG Industries.All rights reserved. Page 4 of 4 Date Submitted to TMI.IRP 03/10/2022 08:15 AM v7ilen ,L 4,r a iiai,.r, Cal 4. 1 Mme-l F l a z /45g3cc5 �>� -1 ... - -1. ,_ - • L-A .�r MUSTANG CAT - • ,a• ., . t __ _... - '--- . --� LET'S WORK TOGETHER Customer Name: CITY OF PORT ARTHUR ; Estimate#: 55233 Customer#: 0588741 1 ! Estimate Date: 2/14/22 Contact Name: Anthony Grogan Job/WO #: B043450 anthony.grogan@portarthurtx.gov 1 Model/Serial 938M/J3R01733 t:409-728-4540 i Sales Rep: Koby Box KBox@mustangcat.com I Customer PO# t:713-452-7338 m:936-336-0046 Current Hours: Mr. Mceroy Thank you for considering Mustang CAT and the opportunity to provide Product Support for your machine. Our recommended solution is based on our current understanding of your requirements and is summarized below. Please contact me if your requirements have changed or if you have any questions about the products and services we are recommending. When you are ready to move forward, please sign and date on the bottom of the page and return it to me. We look forward to working with you! DESCRIPTION PARTS LABOR MISC EXTENDED Field Service Travel &Troubleshooting $ 569.00 $ 262.50 $831.50 Machine Wash & Inspect $ 850.00 $850.00 Lift& Block Machine $ 683.00 $ 683.00 Remove & Install Cab $ 300.00 $2,407.00 $2,707.00 R&I Pumps $ 275.00 $2,407.00 $2,682.00 R&I Control Valves $ 150.00 $1,366.00 $1,516.00 R&I Hydraulic Oil Cooler& Fan Motor $ 275.00 $2,553.00 $ 500.00 $3,328.00 R&I Hydraulic Tank $ 100.00 $ 857.00 $957.00 R&I Lift Cylinders $ 150.00 $1,706.00 $1,856.00 R&I Steering Cylinders $ 150.00 $1,366.00 $1,516.00 R&I Tilt Cylinder $ 150.00 $ 510.00 $ 660.00 Disassemble&Assemble Implement Pump $5,071.00 $1,851.00 $6,922.00 D&A Steering Pump $3,762.00 $1,851.00 $5,613.00 D&A Hydrostatic Motor $7,782.00 $1,623.00 $9,405.00 D&A Control Valves $5,783.00 $6,800.00 $12,583.00 D&A Fan Motor $1,639.00 $ 857.00 $2,496.00 Clean Oil Cooler $ 170.00 $ 875.00 $1,045.00 Clean Hydraulic Tank $ 340.00 $1,000.00 $1,340.00 Remove & Replace Lines $9,499.00 $8,500.00 $17,999.00 Purge Cylinders $1,700.00 $1,700.00 Drain & Refill Hydraulic System $ 597.00 $1,366.00 $ 735.00 $2,698.00 Estimated Parts Freight $1,275.00 $1,275.00 Customer Loyalty Discount -$3,850.00 -$3,850.00 am — MIMI RIM NM MACHINERY RENTAL USED EQUIPMENT PARTS&SERVICE 888.NEXT.CATI888.639.8228 MUSTANGCAT.COM ESCRIPTION PARTS LABOR MISC EXTENDED SUBTOTALS: $35,683.00 $40,332.00 $ 797.50 $76,812.50 'SUPPLY CHARGE IS 2%OF INVOICE TOTAL-MAXIMUM CHARGE OF 510000 SUPPLY CHARGE: $ 100.00 'ENVIRONMENTAL FEE IS 3%OF INVOICE TOTAL-MAXIMUM CHARGE OFS120.00 ENVIRONMENTAL FEE: $ 120.00 SALES TAX: $ .00 **Subject to additional parts/labor upon disassembly *Parts pricing above does not include freight charges and will be added to the final invoice. TOTAL: $77,032.50 Accepted by: Printed Name Date Customer Signature