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Home My WebLink AboutPR 25114 AUTHORIZING THE CITY MANAGER TO EXECUTE SETTLEMENT OF A PHYSICAL DAMAGEw City of o r t rth rrY� liwas INTEROFFICE MEMORANDUM Office of Safety & Risk Management Date: August 20, 2026 To: Ronald Burton, CPM, City Manager From: Trameka Williams, CPM, Assistant Director of Human Resold 3j) RE: A Resolution Approving a Property Damage Settlement in the Amount of$22,928.20 Less the $5,000.00 Deductible for Water Damage to City of Port Arthur Annex Building — First Floor Making the Final Settlement Offer $17,928.20 Nature of the request: On June 8, 2026, a pipe burst in the first-floor bathroom in the annex building causing significant damage to the annex first floor area. Staff Analysis, Considerations: As a result of the damage a claim was filed with Texas Municipal League Intergovernmental Risk Pool (TMLIRP). Texas Municipal League Intergovernmental Risk Pool has offered the City a settlement of $22,928.20 (Exhibit "A" attached) less the $5,000.00 deductible per occurrence making the final settlement amount $17,928.20. Recommendation: I recommend approval of Proposed Resolution No. 25114 authorizing the property damage settlement against Texas Municipal League Intergovernmental Risk Pool (TMLIRP) for water damage sustained to the first-floor annex building of City Hall. Texas Municipal League Intergovernmental Risk Pool has offered to settle the claim for $22,928.20 less the $5,000.00 deductible per occurrence making the final settlement amount $17,928.20. This is considered a fair and reasonable settlement. Budget Considerations: The funds received will be deposited in HINGF. "Remember we are here to serve the Citizens of Port Arthur." P.R. No. 25114 08/20/2026 taw RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE SETTLEMENT OF A PHYSICAL DAMAGE CLAIM IN THE AMOUNT OF $22,928.20 LESS THE DEDUCTIBLE ($5,000.00). THE CLAIM IS MADE AGAINST TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TMLIRP). THE CLAIM IS A RESULT OF PROPERTY DAMAGE TO THE CITY HALL ANNEX, FIRST FLOOR, MAKING FINAL SETTLEMENT $17,928.20. WHEREAS, on June 8, 2026, water damage occurred in the City Hall annex building due to a damaged pipe in the restroom; and, WHEREAS, as a result of the damage, a claim was filed with Texas Municipal League Intergovernmental Risk Pool (TMLIRP); and, WHEREAS, Texas Municipal League Intergovernmental Risk Pool (TMLIRP) has offered to settle the claim for $22,928.20, less the $5,000.00 deductible per occurrence, resulting in a final settlement amount of $17,928.20, 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 a settlement in the amount of $22,928.20, less the $5,000.00 deductible per occurrence, making the final settlement amount $17,928.20, 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, 2026, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor , Councilmembers NOES: Charlotte M. Moses, Mayor ATTEST: Christe Whitley-Ned, City Secretary APPROVED AS TO FORM: ---s Roxann Cotroneo, City Attorney APPROVED FOR ADMINISTRAT • Ronald Burton, CP , City Manager J!. EXHIBIT " A " Mission Risk Consulting Group,LLC MRCG,LLC 1601 Westheimer Road Houston,Texas 77006 Insured: City of Port Arthur Property: 444 4th Street Port Arthur,TX 77640 Claim Rep.: Mike Myers Billing: PO Box 149194 Austin,TX 78714-9194 Position: Senior Claims Specialist Business: (512)491-2464 Company: TML-IRP E-mail: mike.myers@tmlirp.org Estimator: Paul Tierce Business: (713)956-5255 Position: President E-mail: ptierce@missiongrp.com Company: MRCG,LLC Business: 1601 Westheimer Rd Houston,TX 77006 Claim Number: TX264474 Policy Number: 7587 Type of Loss: Water Damage Date Contacted: 6/8/2026 5:46 PM Date of Loss: 6/8/2026 8:00 AM Date Received: 6/8/2026 5:14 PM Date Inspected: 6/12/2026 10:00 AM Date Entered: 6/12/2026 8:00 AM Price List: TXBM8X_JUN26 Restoration/Service/Remodel Estimate: 2026-06-24-0800 This is an estimate only. This estimate in present format is based on information that has been made available to me and collected by me at this time. Should additional information be presented or discovered,I reserve the right to determine the impact of any new information on my opinions and conclusions. I also reserve the right to revise my opinions and conclusions if necessary or warranted by the discovery or review of any additional new information. This estimate is subject to the review and approval of TML-IRP. Date Submitted to TMLIRP:07/28/2026 03:45 PM Mission Risk Consulting Group,LLC MRCG,LLC 1601 Westheimer Road Houston,Texas 77006 2026-06-24-0800 ID 20-City Hall Annex Main Level 1---8 2'-I Women's Room Height: 9' 6„ 351.00 SF Walls 90.00 SF Ceiling , 441.00 SF Walls&Ceiling 90.00 SF Floor Women's Room" - 10.00 SY Flooring 39.00 LF Floor Perimeter 39.00 LF Ceil.Perimeter DESCRIPTION QUANTITY UNIT PRICE TAX RCV DEPREC. ACV Remove Toilet partition(plastic laminate or baked 1.00 EA 174.22 0.00 174.22 (0.00) 174.22 enamel steel) Replace Toilet partition(plastic laminate or baked 1.00 EA 780.90 0.00 780.90 (224.00) 556.90 enamel steel) Totals: Women's Room 0.00 955.12 224.00 731.12 Total: Main Level 0.00 955.12 224.00 731.12 Painting DESCRIPTION QUANTITY UNIT PRICE TAX RCV DEPREC. ACV Painter-per hour 12.00 BR 85.33 0.00 1,023.96 (0.00) 1,023.96 Miscellaneous painting Seal and paint various effected areas PAINTING 1.00 EA 225.00 0.00 225.00 (0.00) 225.00 Miscellaneous paint materials Totals: Painting 0.00 1,248.96 0.00 1,248.96 Millwork DESCRIPTION QUANTITY UNIT PRICE TAX RCV DEPREC. ACV Install Finish Carpenter-per hour 16.00 HR 77.15 0.00 1,234.40 (0.00) 1,234.40 Remove/reinstall doors Repairs as necessary Totals: Millwork 0.00 1,234.40 0.00 1,234.40 2026-06-24-0800 7/28/2026 Page:2 Date Submitted to TMLIRP:07/28/2026 03:45 PM Mission Risk Consulting Group,LLC MRCG,LLC 1601 Westheimer Road Houston,Texas 77006 Debris Removal DESCRIPTION QUANTITY UNIT PRICE TAX RCV DEPREC. ACV Tandem axle dump trailer-per load-including dump 1.00 EA 223.89 0.00 223.89 (0.00) 223.89 fees Totals: Debris Removal 0.00 223.89 0.00 223.89 Mitigation DESCRIPTION QUANTITY UNIT PRICE TAX RCV DEPREC. ACV WATER EXTRACTION&REMEDIATION 1.00 EA 19,265.83 0.00 19,265.83 (0.00) 19,265.83 Water extraction and drying services Action Restoration Totals: Mitigation 0.00 19,265.83 0.00 19,265.83 Total: ID 20-City Hall Annex 0.00 22,928.20 224.00 22,704.20 Line Item Totals: 2026-06-24-0800 0.00 22,928.20 224.00 22,704.20 Grand Total Areas: 351.00 SF Walls 90.00 SF Ceiling 441.00 SF Walls and Ceiling 90.00 SF Floor 10.00 SY Flooring 39.00 LF Floor Perimeter 0.00 SF Long Wall 0.00 SF Short Wall 39.00 LF Ceil.Perimeter 90.00 Floor Area 103.44 Total Area 351.00 Interior Wall Area 416.67 Exterior Wall Area 41.67 Exterior Perimeter of Walls 0.00 Surface Area 0.00 Number of Squares 0.00 Total Perimeter Length 0.00 Total Ridge Length 0.00 Total Hip Length 2026-06-24-0800 7/28/2026 Page: 3 Date Submitted to TMLIRP:07/28/2026 03:45 PM Mission Risk Consulting Group, LLC MRCG,LLC 1601 Westheimer Road Houston,Texas 77006 Summary for Structure Line Item Total 22,928.20 Replacement Cost Value $22,928.20 Less Depreciation (224.00) Actual Cash Value $22,704.20 Less Deductible (5,000.00) Net Claim $17,704.20 Total Recoverable Depreciation 224.00 Net Claim if Depreciation is Recovered $17,928.20 Paul Tierce President 2026-06-24-0800 7/28/2026 Page:4 Date Submitted to TMLIRP:07/28/2026 03:45 PM