HomeMy WebLinkAboutPR 17541: SETTLEMENT AGAINST FRED HUDSON, JR. AND FARMERS INSURANCE GROUP CITY OF PORT ARTHUR SAFETY & RISK MANAGEMENT MEMORANDUM TO: Floyd T. Johnson, City Manager FROM: Lisa Cotten, Safety & Risk Management Coordinator DATE: February 7, 2013 SUBJECT: A Resolution Approving a Property Damage Settlement in the Amount of $11,891.92 for Damages to the City of Port Arthur Transit Bus Shelter at 3401 Gulfway Drive (near the HEB Grocery Store) COMMENTS RECOMMENDATION: I recommend approval of Proposed Resolution No. 17541 authorizing the property damage settlement against Fred Hudson, Jr. and his insurer, Farmers Insurance Group, for damage sustained to the City of Port Arthur Transit Bus Shelter at 3401 Gulfway Drive (near the HEB Grocery Store). The amount of the proposed settlement is $11,891.92. The proposed settlement amount represents the full estimated replacement cost; therefore, this is considered a fair and reasonable settlement. BACKGROUND: On December 30, 2012, the City of Port Arthur Transit Bus Shelter located at 3401 Gulfway Drive (near the HEB Grocery Store) was stuck and heavily damaged when a legally parked vehicle was pushed into it by another vehicle driven by Mr. Fred Hudson, Jr. The investigation revealed that Mr. Hudson was responsible for the accident, so a property damage claim was made against his insurer, Farmers Insurance Group. Farmers Insurance Group has offered the City $11,891.92 to settle this claim based on estimated costs. If additional costs are incurred, a supplemental payment may be made (Exhibit "A" attached). BUDGETARY /FISCAL EFFECT: The funds received will be deposited in the Transit Department Account #401 - 1502 - 561.29 -00 (Supplies for Repair of Bus Shelters). STAFFING /EMPLOYEE EFFECT: No effect on staffing levels: SUMMARY: I recommend approval of Proposed Resolution No. 17541 authorizing the property damage settlement against Fred Hudson, Jr. and his insurer, Farmers Insurance Group, for damage sustained to the City of Port Arthur Transit Bus Shelter at 3401 Gulfway Drive (near the HEB Grocery Store). The amount of the proposed settlement is $11,891.92. "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR" SUMMARY (CONTINUED): The proposed settlement amount represents the full estimated replacement cost; therefore, this is considered a fair and reasonable settlement. Attachment "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR" P.R. No. 17541 02/07/13 LJC RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO DO ALL THINGS NECESSARY TO EXECUTE SETTLEMENT OF THE PROPERTY DAMAGE SUBROGATION CLAIM IN THE AMOUNT OF $11,891.92 MADE AGAINST FRED HUDSON, JR. AND FARMERS INSURANCE GROUP WHEREAS, on December 30, 2012, the City of Port Arthur Transit Bus Shelter located at 3401 Gulfway Drive (near the HEB Grocery Store) was stuck and heavily damaged when a legally parked vehicle was pushed into it by another vehicle driven by Mr. Fred Hudson, Jr.; and, WHEREAS, as a result of the damage, the City of Port Arthur has filed a claim for property damage against Mr. Hudson's insurer, Farmers Insurance Group; and, WHEREAS, Farmers Insurance Group has offered to settle the claim for $11,891.92, which is considered a fair and reasonable settlement. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That, the facts and opinion in the preamble of this resolution are true and correct. Section 2. That, the City Manager is hereby authorized to do all things necessary to accept $11,891.92 from Farmers Insurance Group in settlement of the City's subrogation claim. Section 3. That, a copy of this Resolution be spread upon the minutes of the City Council. 1 P.R. No. 17541 2/07/13 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: al Tiz o, ity Att ney APPROVED FOR ADMINISTRATION: Floyd T. Jo nson, City Manager 1 r Dr. Albe T. igpen, Direct oo uman Resources Exhibit "A" FARMERS Send all correspondence to: IN SURANCES Farmers National Document Center kR1 % #., FARMERS P.O. Box 268994 Oklahoma City, OK 73126 -8994 Fax: (877) 217 -1389 February 1, 2013 Email: claimsdocuments @6rmersinsurance.com ° 0 09 005690 1 11 111 1111 1 1 .111 1111' 411 City Of Port Arthur o �, Po Box 1089 n 0 Port Arthur, TX 77641 -1089 0 O O N RE: Insured: Fred Hudson g Claim Number: 1022845670 -1 -4 Policy Number: 0044345042 Loss Date: 12/30/2012 Dear Lisa Colten: Thank you for allowing me to assist you with your claim. I am pleased to provide you with the enclosed claim payment check, in the amount of 411,891.92, which represents the amount we are not disputing on the above referenced claim. Accepting, cashing or depositing this payment does not represent an acknowledgement or agreement with the settlement of this claim. Additionally, this payment, or any acceptance of this payment, is not a release of future liabilities. If additional damages or injuries are determined and agreed to be owed, they will be addressed and paid accordingly. By the writing of this letter, we do not waive any of our rights or any of the terms, conditions, or provisions of the insurance policy, all of which are expressly retained and reserved. Further, any activity on our part by way of investigation, determination of damage, or emergency advance payments to you, does not constitute a waiver of our rights. We understand you are retaining your rights as well. If after reviewing this letter, you believe there is additional information that would apply to your claim, please provide us with those facts for consideration. I am closing your file at this time. Per Texas state statute, you have 2 years from the date of the accident to pursue a claim for damages regarding this accident. I am committed to providing my customers with excellent service and I trust that I have done so. I understand you may have questions regarding your claim. Please do not hesitate to call me to discuss any questions you may have at (913) 827 -5566. $6XHSR371 1 0 N Sincerely, ° Farmers Texas County Mutual Insurance Company 0 Josh P Oakes N HelpPoint Claims Representative 0 0 Enclosures: Check 5271004903, Estimate or Invoice