HomeMy WebLinkAboutPO 5615: PROPERTY DAMAGE CLAIM CITY OF PORT ARTHUR
SAFETY & RISK MANAGEMENT
MEMORANDUM
TO: Stephen B. Fitzgibbons, City Manager
FROM: Usa Colten, Safety & Risk Management Coordinator ~
DATE: May 16, 2006
SUBJECT: An Ordinance Approving a Property Damage Settlement in the Amount of $10,366.87 for
Damages to City of Port Arthur Police Unit #1462
COMMENTS
RECOMMENDATION:
I recommend approval of Proposed Ordinance No. 5615 authorizing the prope~j damage subrogation seffiement
against Silvia Ramirez and Farmers Insurance Group for damage sustained to Police Unit #1462 (2002 Ford
Crown Victoria). The amount of the proposed settlement is $10,366.87.
It has been determined that damages sustained by Police Unit #1462 rendered the vehicle a total loss. The fair
market value of the vehicle, plus the unit transfer cost, totals $10,366.87; therefore, this is considered a fair and
reasonable settlement.
BACKGROUND:
On Februanj 2, 2006, City Police Unit #1462 was struck by a vehicle owned and operated by Ms. Ramimz. The
accident investigation revealed that Ms. Ramirez was responsible for the accident. A property damage claim was
made against Farmers Insurance Group, Ms. Ramirez's liability insurance carrier, for the cost of damage expenses
to the police vehicle. There were no injudes in the accident.
After review and inspection of Police Unit #1462, itwas determined that damages were in excess of the fair market
value of the police vehicle. Farmers Insurance Group has offered the City $10,366.87 to settle this claim on behalf
of Ms. Ramirez, in exchange for transfer of ti'de of Police Unit #1462 to Farmers Insurance Group (Attachment "A').
BUDGETARY/FI.~CAL EFFECT:
The funds received will be deposited in the account recommended by the Finance Director.
~TAFRNG/EMPLOYEE EFFECT:
No effect on staffing levels:
SUMMARY:
I recommend approval of Proposed Ordinance No. 5615 authorizing the property damage subrogation settlement
against Silvia Ramirez and Farmers Insurance Group for damage sustained to Police Unit #1462 (2002 Ford
Crown Victoria). The amount of the proposed set'dement is $10,366.87.
It has been determined that damages sustained by Police Unit #1462 rendered the veh~e a totel loss. The fair
market value of the vehicle, plus the unit transfer cost, totals $10,366.87; therefore, this is considered a fair and
reasonable settlement.
"REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR'
ATTACHMENT "A'
Dear City of Port Arthur
After reviewing the file m~d inspecting the velficle, we have determh~ed that Ihe fare
market value of this vehicle cm~e to the anaomu of $9091.87.1 then contacted the dealer
that the City 'of Port Arthur i~ses to install all items'to thc police cra' to make it field ready
and they gave a unit transfer cost of $1275.00. To transfer items from one car to another.
After ~x ailing lbr these items to be removed from the totaled vehicle We then set up
salvage to be removed from the location offof highway 73 where these items where
being removed. ]'his was done after 1 had talked to Mr. Eddie Roberts, who was my
contact person on this claim. 1 had verbally submitted the settlement amount to him and
he had told me that this price was' acceptable.
I then had check issued for settle'm~at and proceeded to bring it to Mr. Roberts to
receive title and have some papers signed, assuming Mr. ROberts had the auth6rization to
give me the title to the vehicle so that we could process the salvage.
Wheu getting to the lo~;ation where the title was to be located, the office cnuld not
come up wi[th the title and was reluctant to sign the necessary forms that I had to finalize
claim, because they were not sure if they had the atahorizatioa to do so. They then said
the3' would call me back. They ca/led back the ri~xt day and said that fl~ey had lbund it, so
I told them I would be out the'next day to gel it.'Belbre getting there I received a phone
call saying that I now have to submit a letter to the City Council for approval of
settlement. 1'here is a full settlement amount of $t 0366,87 andl am still holding on to
this check written out to the City of Por(Arthur and would like to conclude this
trmlsaction.
Please approve '~nd fill out all papers provided with this letter and have signed by mt
authorized mpreFentative of the City of Port Arthur arid returned to me as soon as
possible.
Thank You
John Criswell
Fam~ers Insurance Co.
Please Mall to
Farmer Insurance Co.
Attn. John Crlswell
545 IH-I0
Beaumont. Tx 77701
P.O. No. 5615
5/16/06 LJC
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE CITY MANAGER
TO DO ALL THINGS NECESSARY TO EXECUTE SETTLEMENT
OF THE PROPERTY DAMAGE SUBROGATION CLAIM
IN THE AMOUNT OF $10,366.87 MADE AGAINST
SILVIA RAMIREZ AND FARMERS INSURANCE GROUP
WHEREAS, on February 6, 2006, City of Port Arthur Police Unit #1462 (2002 Ford Crown
Victoria) was damaged when struck by an auto owned and operated by Silvia Ramirez; and,
WHEREAS, as a result of said collision, the City of Port Arthur has filed a claim for property
damage against Ms. Ramirez and Farmers Insurance Group for the cost of damages of Police Unit
#1462; and,
WHEREAS, it has been determined that damages sustained by Police Unit #1462 were in
excess of the fair market value of the vehicle, and therefore $10,366.87 is considered a fair and
reasonable settlement amount for the damage sustained.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT
ARTHUR:
Section 1. The facts and opinion in the preamble of this Ordinance are tree and comect.
Section 2. That the City Manager is hereby authorized to do all things necessary to
accept $10,366.87 from Farmers Insurance Group in settlement of the City's
property damage subrogation claim in this litigation, in exchange for transfer
of rifle of Police Unit #1462 to Farmers Insurance Group.
Section 3. That a copy of this Ordinance be spread upon the minutes of the City
Council.
P.O. No. 561.5
5/16/06 LJC
Page2 of 2
READ, ADOPTED, AND APPROVED this ~ day of , AD, 2006, at a
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote:
AYES: Mayor , Councilmembers
NOES:
Oscar G. Odiz, Mayor
Al-rEST:
Evangeline Green, City Secretary
APPROVED ,~,S TO FORM:
Mark T. Sok-olo~,~ity Attorney
APPROVED FOR ADMINISTRATION:
Stephen B. Fitzgibbons, City Manager