HomeMy WebLinkAboutPR 16063: HURRICANE IKE FLOOD DAMAGE SETTLEMENT (SABINE PASS WASTEWATER PLANT) CITY OF PORT ARTHUR
SAFETY & RISK MANAGEMENT
MEMORANDUM
TO: Stephen B. Fitzgibbons, City Manager
FROM: Lisa Colten, Safety & Risk Management Coordinator
DATE: August 25, 2010
SUBJECT: A Resolution Approving Settlement in the Amount of $38,708.30 Made Against
Fidelity National Insurance Company as a result of Flood Damage to the Sabine
Pass Wastewater Plant due to Hurricane Ike (September 13, 2008)
COMMENTS
RECOMMENDATION:
I recommend approval of Proposed Resolution No. 16063 which authorizes settlement of the flood
damage claim in the amount of $38,708.30 made against Fidelity National Insurance Company (Fidelity)
as a result of flood damage to the Sabine Pass Wastewater Plant. Fidelity has offered a settlement in
the amount of $38,708.30, less the deductible of $500.00, making the final settlement $38,208.30.
This is considered a fair and reasonable settlement offer.
BACKGROUND:
On September 13, 2008, Hurricane Ike struck the City of Port Arthur. The Sabine Pass Wastewater
Plant suffered flood damage as a result. Fidelity has offered a settlement of Actual Cash Value (ACV)
in the amount of $38,708.30, less deductible, making the final settlement $38,208.30.
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:
I recommend approval of Proposed Resolution No. 16063 which authorizes settlement of the flood
damage claim in the amount of $38,708.30 made against Fidelity National Insurance Company (Fidelity)
as a result of flood damage to the Sabine Pass Wastewater Plant. Fidelity has offered a settlement in
the amount of $38,708.30, less the deductible of $500.00, making the final settlement $38,208.30.
This is considered a fair and reasonable settlement offer.
"REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR"
P.R. No. 16063
8/25/10 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 $38,708.30 MADE AGAINST
FIDELITY NATIONAL INSURANCE COMPANY AS A RESULT OF
FLOOD DAMAGE TO THE SABINE PASS WASTEWATER PLANT
WHEREAS, on September 13, 2008, Hurricane Ike struck the City of Port Arthur, resulting in flood damage to
the Sabine Pass Wastewater Plant; and,
WHEREAS, as a result of the damage, a claim was filed with Fidelity National Insurance Company; and,
WHEREAS, Fidelity National Insurance Company has offered to settle the claim for $38,708.30, less the
deductible of $500.00, making the final settlement $38,208.30; 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 in the
amount of $38,708.30, less the deductible of $500.00, making the final settlement $38,208.30 for the claim against
Fidelity National Insurance Company.
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, 2010, 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:
City Secretary
APPROVED A TO FORM:
City Attorney
APPROVED FOR ADMINISTRATION:
City Manager