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HomeMy WebLinkAboutPR 15496: TML PROPERTY LOSS SETTLEMENT BUS #1577CITY OF PORT ARTHUR SAFETY 8< RISK MANAGEMENT MEMORANDUM TO: Stephen B. Fitrgibbons, City Manager FROM: Lisa Cotten, Safety 8< Risk Management Coordinator DATE: September 10, 2009 SUBJECT: A Resolution Approving a Property Loss Settlement in the Amount of $126,833.52 for Damages to City of Port Arthur Bus #1577 COMMENTS RECOMMENDATION: I recommend approval of Proposed Resolution No. 15496 authorizing the property damage settlement against Texas Municipal League fntergovemmental Risk Pool (TML) for damage sustained to City of Port Arthur Bus #1577 (2005 Daimler/Chrysler Orion SLF Bus). TML has offered to settle the claim for $126,833.52, less the City's Automobile Physical Damage deductible of $2,500.00, making the final settlement offer $124,333.52 (Exhibit "A" attached). BACKGROUND: On April 9, 2008, City Bus #1577 (2005 Daimler/Chrysler Orion SLF Bus) was damaged when it was involved in a collision in the 700 block of Procter St. at Beaumont Ave. The other driver was determined to be at fault, however, his liability insurance was insufficient to cover all damages. Therefore, a claim was submitted to TML which provides Automobile Physical Damage insurance to the City with a $2,500.00 deductible. Payment has been received by TML in the amount of $124,333.52. This amount is based on actual repair costs and wrecker service fees. The vehicle has been repaired and is back in use. BUDGETARY/FISCAL EFFECT: The funds received will be deposited in the appropriate account designated by the Finance Director. STAFFING/EMPLOYEE EFFECT: No effect on staffing levels. SUMMARY: 1 recommend approval of Proposed Resolution No. 15496 authorizing the property damage settlement against Texas Municipal League Intergovernmental Risk Pool (TML) for damage sustained to City of Port Arthur Bus #1577 (2005 Daimler/Chrysler Orion SLF Bus). TML has offered to settle the claim for $126,833.52, less the City's Automobile Physical Damage deductible of $2,500.00, making the final settlement offer $124,333.52 (Exhibit "A" attached). Attachment "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR" P.R. No. 15496 9/10/09 LJC RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EXECUTE THE SETTLEMENT OF A CLAIM IN THE AMOUNT OF $126,833.52 MADE AGAINST TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML) AS A RESULT OF THE PROPERTY DAMAGE TO CITY BUS #1577 WHEREAS, on April 9, 2008, City of Port Arthur Bus #1577 (2005 Daimler/Chrysler Orion SLF Bus) was damaged when it was involved in a collision in the 700 block of Procter St. at Beaumont Ave.; and, WHEREAS, as a result of the damage, a claim was filed with Texas Municipal League Intergovernmenta) Risk Pool (TML); and, WHEREAS, TML has offered to settle the claim for $126,833.52, which represents actual repair costs and wrecker service fees, less the Automobile Physical Damage deductible amount of $2,500.00, making the final settlement $124,333.52; and, WHEREAS, this 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 do all things necessary to execute settlement in the amount of $124,333.52 for the claim against TML 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. P.R. No. 15496 9/10/09 LJC 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: Deloris "Bobbie" Prince, Mayor ATTEST: Terri Hanks, City Secretary APPROVED AS TO FORM: Mark Sokolow, Ci rney (fit U ~) APPROVED FOR ADMINISTRATION: Stephen .Fitzgibbons, City Manager ctQ» SW,pRN STATEMENT P R L~55 (Automobile) Policy No. 7557 CN. No. Policy Coverage at Time of Loss $164,007 Company Claim No. 0800144803 Date Issued 10/1/07 Date Expires 10/1/08 Agent Texas Municipal League Intergovernmental League Agency At Austin, Texas To the Texas Municipal League Intergovernmental League of Austin, Texas By your policy of insurance described above, you insured City of Port Arthur (HEREINAFTER CALLED THE MEMBER) AGAINST LOSS OF OR DAMAGE TO THE AUTOMOBILE DESCRIBED AS FOLLOWS: TRADE NAME TYPE OF BODY MODEL MODEL VEHICLE IDENTIFICATION NUMBER DESCRIPTION IF TRUCK STATE TONNAGE YEAR of Orion Bus SLF200 2005 5DF232PA55JA70093 AUTOMOBILE TIME AND A loss caused by COLLISION occurred on the 9TH day of APRIL ,about the hour of 6:20 P .M., the full ORIGIN particulars of which are es follows: (State where and how it occurred) COLLISION OCCURRED AT INTERSECTION OF PROCTER ST AND BEAUMONT AVE IN PORT ARTHUR, TEXAS. OTHER PARTY FAILED TO YIELD THE RIGHT OF WAY AND COLLIDED WITH ORION BUS TITLE AND The insured was the sole owner of the automobile at the time of the loss or damage and no other person had any interest therein, by INTEREST bailment tease, condition sale, mortgage or other encumberance ar otherwise, except N/A OTHER At the time of this loss, there was no other insurance on said automobile covering the same perils except: INSURANCE N/A USE At the time of this loss, the said automobile was being used for BUSINESS (PLEASURE, BUSINESS OR COMMERCIAL PURPOSE) and was not being used to carry passengers for compensation or rental or leased of for any illegal purpose except: BUSINESS THE ACTUAL of the property described, the actual loss and damage sustained, and the amount claimed under this Policy are as follows: CASH VALUE CASH VALUE WHOLE LOSS AMOUNT DEDUCTIBLE AMOUNT CLAIMED UNDER THIS POLICY $126,833.52 $2,500 $124 333.52 SUBROGATION To the extent of the payment made or advanced under this policy, the insured hereby assigns, transfers end sets over to tha insurance company all rights, Gaims or interests that he h< against any person, firm or corporation liable for the loss or damage to the property for which payment is made ar advanced. He also hereby authorizes the insurance company to sue any such third party in his name. The insured hereby warrants that no release has been given or will be given or settlement or compromise made or agreed upon with any third party who may be liable in damages to tf insured with respect to the claim being made herein. The said loss or damage did not originate by any act, design or procurement on my /our pert nor on the part of anyone having interest in the properly insured, or in the said policy of Insurance; nor in mnsequence of any fraud or evil practice done or suffered by me / us and that no property saved has in any manner been concealed. !t is expressly understcod and agreed shot the fu: Wishing of [hs L•;ank or the preparation of proof by a representative of the above insurance company is not a waiver of any of its rights. State of X County of Subscribed and sworn to before me this INSURED. PAYMENT AUTHORIZATION of NOTARY PUBLIC. Insurance Company, is hereby requested, authorized and empowered to pay, al its option, as follows: To The sum of S To The sum of $ To The sum of $ Amount Claimed Under Policy $ Witness: Insured Address: By Witness: Insured Address: By TITLE