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HomeMy WebLinkAboutPR 17536: SETTLEMENT WITH TML FOR DAMAGE TO LADDER FIRE TRUCK CITY OF PORT ARTHUR SAFETY & RISK MANAGEMENT MEMORANDUM I I TO: Floyd T. Johnson, City Manager FROM: Lisa Colten, Safety & Risk Management Coordinator DATE: January 31, 2013 SUBJECT: A Resolution Approving a Property Loss Settlement in the Amount of $8,698.65 for Damages to Aerial Ladder Fire Truck #1590 COMMENTS RECOMMENDATION: I recommend approval of Proposed Resolution No. 17536 authorizing the property damage settlement against Texas Municipal League Intergovernmental Risk Pool (TML) for damage sustained to Aerial Ladder Fire Truck #1590 (2006 Pierce Ladder Truck). TML has offered to settle the claim for $8,698.65, less the City's Automobile Physical Damage deductible of $2,500.00, making the final settlement offer $6,198.65 (Exhibit "A" attached). This amount represents the total property loss; therefore, this is considered a fair and reasonable settlement. BACKGROUND: On November 16, 2012, Aerial Ladder Fire Truck #1590 (2006 Pierce Ladder Truck) was damaged when one of the Firefighters filled it with regular gasoline, instead of the required diesel. The City has Auto Physical Damage insurance coverage through TML with a $2,500.00 deductible. Payment has been received from TML in the amount of $6,198.65. This amount is based on the final cost for repairs. The vehicle has been repaired and is back in use. BUDGETARY /FISCAL EFFECT: The funds received will be deposited in the Fire Department Vehicle Maintenance Account #001 -1121- 522.43 -00. STAFFING /EMPLOYEE EFFECT: No effect on staffing levels: "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR" Floyd T. Johnson, City Manager January 31, 2013 Page 2 of 2 SUMMARY: I recommend approval of Proposed Resolution No. 17536 authorizing the property damage settlement against Texas Municipal League Intergovernmental Risk Pool (TML) for damage sustained to Aerial Ladder Fire Truck #1590 (2006 Pierce Ladder Truck). TML has offered to settle the claim for $8,698.65, less the City's Automobile Physical Damage deductible of $2,500.00, making the final settlement offer $6,198.65 (Exhibit "A" attached). This amount represents the total property loss; therefore, this is considered a fair and reasonable settlement. Attachment "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR" P.R. No. 17536 1/31/13 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 $8,698.65 MADE AGAINST TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML) AS A RESULT OF THE PROPERTY DAMAGE TO AERIAL LADDER FIRE TRUCK #1590 WHEREAS, on November 16, 2012, Aerial Ladder Fire Truck #1590 (2006 Pierce Ladder Truck) was damaged due to one of the Firefighters filling it with regular gasoline, instead of the required diesel; and, WHEREAS, as a result of the damage, a claim was filed with Texas Municipal League Intergovernmental Risk Pool (TML); and, WHEREAS, TML has offered to settle the claim for $8,698.65, less the Automobile Physical Damage deductible amount of $2,500.00, making the final settlement $6,198.65, 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 do all things necessary to execute settlement in the amount of $8,698.65, 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. f 1 P.R. No. 17536 1/31/13 LJC Page 2 of 2 READ, ADOPTED, AND APPROVED this day of , AD, 2013, 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: Sherri Bellard, City Secretary APPROVED AS TO FORM: - 7: ) 0 /,_ Va Tizen , City ttor y D APPROVED FOR ADMINISTRATION: Floyd T. Johnson, City Manager l 4,-hD • JIWl' Dr. Albert T. Thigpen, Director of Human Resources LXnlblt •• A" SWORN STATEMENT PROOF OF LOSS (Automobile) Contract No. 7587 Ctf. No. Contract Coverage at Time of Loss Auto Physical Damage TML -IRP Claim No. 1300196964 Date Issued 10 -01 -12 Agent Texas Municipal League Intergovernmental Risk Pool Date Expires 10 -01 -13 Agency At Austin, Texas To the Texas Municipal League Intergovernmental Risk Pool Of Austin, Texas By your coverage document described above, you Member Port Arthur (HEREINAFTER CALLED THE MEMBER) AGAINST LOSS OF OR DAMAGE TO THE AUTOMOBILE DESCRIBED AS FOLLOWS: DESCRIPTION TRADE NAME TYPE OF BODY (IF TRUCK STATE TONNAGE) MODEL MODEL (YEAR) VEHICLE IDENTIFICATION NUMBER OF AUTOMOBILE Pierce Truck- Ladder Dash 60 2006 4P1 CDO1 HX6A005819 TIME AND A loss caused by occurred on the 16 day of November 2012 , about the hour of .M., the full ORIGIN particulars of which are as follows: (State where and how it occurred) Member employee went to fill up fire truck and used the wrong kind of gas. TITLE AND The Member 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 lease, condition sale, mortgage or other encumberance or otherwise, except OTHER At the time of this loss, there was no other insurance on said automobile covering the same perils except: INSURANCE 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: THE ACTUAL of the property described, the actual loss and damage sustained, and the amount claimed under this Contract are as follows: CASH VALUE CASH VALUE WHOLE LOSS AMOUNT DEDUCTIBLE AMOUNT CLAIMED UNDER THIS POLICY $ $8,698.65 $2,500.00 $6,198.65 SUBROGATION To the extent of the payment made or advanced under this policy, the Member hereby assigns, transfers and sets over to the Texas Municipal League Intergovernmental Risk Pool all rights, claims or interests that he has against any person, firm or corporation liable for the loss or damage to the property for which payment is made or advanced. He also hereby authorizes the Texas Municipal League Intergovernmental Risk Pool to sue any such third party in his name. The Member 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 t Member 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 part nor on the part of anyone having interest in the property covered, or in the said coverage document; nor in consequence of any fraud or evil practice done or suffered by me / us and that no property saved has in any manner been concealed. It is expressly understood and agreed that the furnishing of this blank or the preparation of proof by a representative of the Texas Municipal League Intergovernmental Risk Pool is not a waiver of any of its rights. State of X County of Member. Subscribed and sworn to before me this day of PAYMENT AUTHORIZATION NOTARY PUBLIC. is hereby requested, authorized and empowered to pay, at its option, as follows: To The sum of $ To The sum of $ To The sum of $ Amount Claimed Under Coverage Document $ Witness: Insured Address: By TITLE Witness: Insured Address: By TITLE