HomeMy WebLinkAboutPR 15421: TML SETTLEMENT (MOBILE EQUIPMENT AT LANDFILL)CITY OF PORT ARTHUR
SAFETY 8 RISK MANAGEMENT
MEMORANDUM
TO: Stephen B. Fitzgibbons, City Manager
FROM: Lisa Cotten, Safety 8 Risk Management Coordinator ~~
DATE: August 3, 2009
SUBJECT: A Resolution Approving Settlement of a Flood Damage Claim in the Amount
of $728,749.99 due to Hurricane Ike (Mobile Equipment at the City Landfill)
COMMENTS
RECOMMENDATION:
I recommend approval of Proposed Resolution No. 15421 which authorizes settlement of the flood
damage claim in the amount of $128,749.99 made against the Texas Municipal League
Intergovernmental Risk Pool (TML) for property damages to Mobile Equipment at the City Landfill
due to Hurricane Ike. TML has offered a settlement in the amount of $128,749.99. This amount
represents the estimated cost for flood-related damages. The deductible will be waived as the
National Flood Insurance Program (NFIP) full loss exceeded the TML flood deductible
(Attachment "C").
Four (4) pieces of Mobile Equipment sustained some degree of damage (Attachment "B°) as
follows:
• Equipment #1297 (1998 Caterpillar Loader)
• Equipment #1401 (2000 Ford New Holland Tractor with Rhino Batwing Mower)
• Equipment #1179 (1996 Gorman Water Pump)
• Equipment #1274 (1995 Vermeer Tub Grinder)
Of these, Equipment #1179 (1996 Gorman Water Pump) was determined to be a total loss. If
additional costs are incurred, the City has up to rivo years from the date of the hurricane to
request supplemental payment. Therefore, this is considered a fair and reasonable settlement.
BACKGROUND:
On September 13, 2008, Hurricane Ike struck the City of Port Arthur. As a result, Landfill Mobile
Equipment #1179 (1996 Gonnan Water Pump) was determined to be a total loss, and three (3)
other pieces of Landfill Mobile Equipmerrt sustained lesser damages. The TML has offered a
settlement in the amount of $128,749.99.
BUDGETARYIFISCAL EFFECT:
The funds received will be deposited in the appropriate account designated by the Finance
Director.
STAFFING/EMPLOYEE EFFECT:
No effect on staffing levels:
"REMEMBER, VJE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR"
Stephen B. Fitzgibbons, City Manager
Proposed Resolution No. 15421
August 3, 2009
Page 2 of 2
SUMMARY:
I recommend approval of Proposed Resolution No. 15421 which authorizes settlement of the flood
damage claim in the amount of $128,749.99 made against the Texas Municipal League
Intergovernmental Risk Pool (TML) for property damages to Mobile Equipment at the City Landfill
due to Hurricane Ike. TML has offered a settlement in the amount of $128,749.99. This amount
represents the estimated cost for flood-related damages. The deductible will be waived as the
National Flood Insurance Program (NFIP) full loss exceeded the TML flood deductible
(Attachment "C").
Four (4) pieces of Mobile Equipment sustained some degree of damage (Attachment "B") as
follows:
• Equipment #1297 (1998 Caterpillar Loader)
• Equipment #1401 (2000 Ford New Holland Tractor with Rhino Batwing Mower)
• Equipment #1179 (1996 Gorman Water Pump)
• Equipment #1274 (1995 Vermeer Tub Grinder)
Of these, Equipment #1179 (1996 Gorman Water Pump) was determined to be a total loss. If
additional costs are incurred, the City has up to two years from the date of the hurricane to
request supplemental payment. Therefore, this is considered a fair and reasonable settlement.
"REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OP PORT ARTHUR"
P.R. No. 15421
8/03/09 LJC
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER
• TO DO ALL THINGS NECESSARY TO EXECUTE THE SETTLEMENT
OF CLAIMS IN THE AMOUNT OF $128,749.99 MADE AGAINST
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML)
AS A RESULT OF FLOOD DAMAGES TO MOBILE EQUIPMENT AT THE CITY LANDFILL
DUE TO HURRICANE IKE (SEPTEMBER 13, 2008)
WHEREAS, on September 13, 2008, Hurricane Ike struck the City of Port Arthur, resulting in flood damages to Mobile
Equipment at the City Landfill as listed in Attachments "A" and "B" (attached); and,
WHEREAS, as a resuR of the flood damages, a claim was filed with Texas Municipal League Intergovemmental Risk
Pool (TML); and,
WHEREAS, TML has offered to settle these claims in the amount of $128,749.99. The deductible vrill be waived as the
National Flood Insurance Program (NFIP) full loss exceeded the TML flood deductible (Attachment "C"); and,
WHEREAS, this has been determined to be 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 do all things necessary to execute settlement, as denoted in
Attachment "D, in the amount of $128,749.99 for the claim against Texas Municipal League Intergovernmental Risk Pool (TML).
Section 3. That, a copy of this Resolution be spread upon the minutes of the City Council.
READ, ADOPTED, AND APPROVED this _ day of , AD, 2009, at a Meeting of the City
Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers
NOES:
"Bobbie" Prince, Mayor
ATTEST
Terri Hanks, City Secretary
APPR V D AS TO Ff~R~I~~
~•s'/,u
Mark' okolow, City Attorney
APPROVED FOR ADMINISTRATION:
Stephen Fitzgibbons, City Manager
?004-08-04 10:40 TML IRP 15124912356 »
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ATTACHMENT "A"
City a+ Port Arlr~ur
,4ttn' F?5ecra Undefrnll. Finance Lirectcr
CA4 4Ni St
Dorf r"+.rthu~ TX 7'~4G-E4t35
RE_ FML•f RP Claire k: 0$UC! 15U308?0142
Gate cf Loss. 5fI31p8
Damages tram Hurricane Ike
G~eal Eels Undarhiii~
409 983 8282 P 2/2
Please fmd enclase~J [wo :;becks fUr this than: the check for $i50,000.U0 is an advance payment
tolvards fhc Real and Personal Property damages and the check for $128,749.39 is for the Mobile
Equipment damaged at iha landfill. ~Ve are currently standing by for ycu ail to provide us with the repair
invoices for the various locaucns rot eligible for coverage ihrpugh NF!D and other item; insured through
tMv Frisk Peal so that we may reimburse t!3e City fcr those costs
I al+: also er~clesing ~vn PI'O('if5 of LGSS that I will need fcr you to sign, nciarize, and return to me in
exchange for our payments.
Fi;;alPq. 1 vsiU need far you to send the title tc me for the '1985 GGrman water pump. Mobile Equipment
setleduled Itam number 15~ as the RisF: Pool has deemed this to be a total loss. Please note the
remaining nieces of MGt~i1e Equipment are Doing to be lef[ with you all to dispose of as you see fit. Vt+hiie
tQnnrelly the UndS are tofaled and we a;w paying the Nctual Cash Value of the amts, ter ACV cf the
tmifs Jiffy not exceed the sciieduied value. As sari,, the City is entitled to recover any salvage value for
those remaining. Por your convenience. I am enclosing a list o` the mobile equipment damaged.
ShQl: i±i '~rOu ha`Jc an'y gFir.SflGnS, }ilea5e feci free tC ro riiaLt rTie at eXte nSlGn 4?2.
Lisa Kutch
Senior Claims Spcciaiist
Texas Municipal League - i€2P
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ri5(:'„i Ibf ur; u'!es~ L>~_:;vzr L: t>::;icxn~ z:~t+Iw e~rr:,u, {Zl~?; '~Or:~r
!82f Ku[}IerihedLrif~yrirsfFldrc • A;>cae;Tezxv'7$7,'.4 • ~i?lnrt. v --__,
(- .. .l 23L:t • (80G; Sl /-hG5? 7ccns Unh
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ATTACHMENT "B"
CITY OF PORT ARTHUR
MOBILE EQUIPMENT DAMAGES
CLAIM #0800150308/01-02
HURRICANE IKE
Item #86-98 Cat Loader
Item #127-2000 New Hol
& Rhino Batwing Mower
Item #152-Water Pump
Item #84-95 Tub Grinder
Repl value
Rep Est of Unit
$51,172.17 $37,833.33
land$21,125.87 $21,000
$5,580.00 $4,333.33
$20,050.00 $14,750.00
$52,568.30 $50,833.33
Salvage Value Scheduled Value
$5,000 $113,611
$2,100 $49,380
$600 (included)
$500.00 $16,969.00
$5,000.00 $95,000.00
Total Claim $128 749 99
Page 1 of 1
Lisa Colten
ATTACHMENT "C"
From: <LKutch@tmlirp.org>
To: "Lisa Colten" <Icolten@portarthur.neb
Sent: Monday, August 03, 2009 2:44 PM
Subject: Hurricane Ike Claim #0800150308/01-02
Dear Lisa:
Per our conversation, as I advised, the Risk Pool will not be applying any deductibles to the Risk Pool
portion of the loss as the NFIP full loss exceeded the TML-IRP flood deductible. NFIP paid $183,969.87
for building and $54,366.08 for contents at Fire Station number 4. The Risk Pool deductible is
$25,000.00.
Please let me know if you have any further questions.
Lisa Kutch
Sr. Claims Specialist
(800) 537655, ext.412
8/3/2009
SWORN STATEMENT IN PROOF OF LOSS
$ 6,265,035.00 ATTACHMENT "D j587
AMOUNT OF COVERAGE AT TIME OF LOSS CONTRACT NUMBER
10-01-07
COVERAGE EFFECTIVE DATE
10-01-08
COVERAGE EXPIRATION DATE
To the Texas Municipal League Intergovernmental Risk Pool of Austin, Texas.
0800150308
TML CLAIM NUMBER
At time' of loss, the TML-IRP provided self-insurance coverage through the Interlocal Agreement to:
City of Port Arthur
loss
conditions of said contract and all forms, endorsements,
1. Time and Origin: A hurricane
of September 2008
2. Occupancy: The building described, or
other purpose whatever: N/A
to
assignments attached thereto.
to [he terms
loss occurred about the hour of o'clock m. on the 13th day
e cause and origin of the said loss were: Hurricane Ike
property described, was occupied at the time of the loss as follows, and for no
3. Title and Interest: At the time of the loss, the interest of your member in the property described therein was
N/A No other person or persons had any interest
therein or encumbrance thereon, except. N/A
4. Changes: Since the said contract was issued, there has been no assignment thereof, or change of interest, use, occupancy, possession,
location or exposure of the property described, except: N/A
5. Total Insurance: The total amount of coverage upon the property described by this contract was, at the time of the loss
$ 6,265,035.00 as more particularly specified in the apportionment attached, besides which there was no policy or other contract of
insurance, written or oral, valid or invalid.
6. The Actual Cash Value of said property at the time of the loss was $ TBD
7. The Whole Loss and Damage was $ 128,749.99
8. Less Amount of Deductible $ 8
9. The Amount Claimed under the above numbered contract is . $ 128,749.99
The said loss did not originate by any act, design or procurement on the part of your member, or this affiant; nothing has been done by or
with the privity or consent of your member or this affiant, to violate the conditions of the contract, or render it void; no articles aze mentioned
herein or in annexed schedule but such as were destroyed or damaged et [he time of said loss; no property saved has in any manner been
concealed, and no attempt to deceive the said TML-IRP, as [o [he extent of said loss, has in any manner been made. Any other information [ha[
may be required will be famished and considered a part of this proof.
The famishing of this blank or the preparation of proofs by a representative of the above self-insurance fund is not a waiver of any of its
rights.
State of
County of Authorized Representative of
Subscribed and sworn to before me this day of , 20
Notary Public