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HomeMy WebLinkAboutPO 6052: PROPERTY DAMAGE SETTLEMENT TO VEHICLE #1217CITY OF PORT ARTHUR SAFETY 8~ RISK MANAGEMENT MEMORANDUM TO: Stephen B. Fitzgibbons, City Manager FROM: Lisa Cotten, Safety & Risk Management Coordinator DATE: ,November 19, 2009 SUBJECT: An Ordinance Approving a Property Damage Settlement in the Amount of $2,802.94 for Damages to City of Port Arthur Vehicle #1217 COMMENT RECOMMENDATION: I recommend approval of Proposed Ordinance No. 6052 authorizing the property damage settlement against Equity General Agency, Inc. for damage sustained to Vehicle #1217 (1996 Jeep Cherokee). Settlement in the amount of $2,802.94 has been offered. It has been determined that damages sustained by Vehicle #1217 rendered the vehicle a total loss. Since the damages are in excess of the fair market value of the vehicle, this is considered a fair and reasonable settlement. BACKGROUND: On February 23, 2009, City employee Jerry Nichols was driving Vehicle #1217 in the 600 block of Procter Street and was struck by a vehicle owned by Ms. Gwen Dekerlegand. The Police Accident Report indicated Ms. Dekerlegand's vehicle to be at fault; subsequently, a claim was filed with her liability insurance company, Equity General Agency, Inc. An inspection of Vehicle #1217 determined that damages were in excess of the fair market value. Equity General Agency, Inc. dffered a settlement of $2,802.94 BUDGETARY/FISCAL EFFECT: The funds received will be deposited in the account recommended by the Finance Director. STAFFING/EMPLOYEE EFFECT: No effect on staffing levels. SUMMARY: I recommend approval of Proposed Ordinance No. 6052 authorizing the property damage settlement against Equity General Agency, Inc. for damage sustained.. to Vehicle #1217 (1996 Jeep Cherokee). Settlement in the amount of $2,802.94 has been offered. It has been determined that damages sustained by Vehicle #1217 rendered the vehicle a total loss. Since the damages are in excess of the fair market value of the vehicle, this is considered a fair and reasonable settlement. "REMEMBER, WE ARE HERETO SERVE THE CITIZENS OF PORT ARTHUR" P.O. No. 6052 11/19/09 LJC ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EXECUTE THE SETTLEMENT OF A CLAIM IN THE AMOUNT OF $2,802.94 WITH EQUITY GENERAL AGENCY, INC. AS A RESULT OF THE PROPERTY DAMAGE TO CITY OF PORT ARTHUR VEHICLE #1217 WHEREAS, on February 23, 2009, Vehicle #1217 (1996 Jeep Cherokee) was involved in an accident with another vehicle; and, WHEREAS, the insurance company of the vehicle at faun is Equity General Agency; and, WHEREAS, it has been determined that the cost of repair will exceed the fair market value of the vehicle, and Equity General Agency, Inc. has offered $2,802.94 to settle the property damage claim; and, WHEREAS, Equity General Agency, Inc. has offered to settle the claim for $2,802.94, which is considered a fair and reasonable settlement. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That, the facts 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 $2,802.94 from Equity General Agency, Inc. in settlement of the City's property damage claim, in exchange fortransfer of title to Vehicle #1217. Section 3. That a copy of this Ordinance be spread upon the minutes of the City Council. P.O. No. 6052. 11/19/09 LJC Page 2 of 2 READ, ADOPTED and APPROVED this the 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 Deloris "Bobbie" Prince, Mayor ATTEST: City Secretary APPROVE AS TO FORM: Acting ity A rney APPROVE~D/FOR A~DM~INISTRATION City anager 9