HomeMy WebLinkAboutPR 17710: SETTLEMENT OF CLAIM AGAINST TML AS A RESULT OF DAMAGE TO AMOS EVANS GYM CITY OF PORT ARTHUR
SAFETY & RISK MANAGEMENT
MEMORANDUM
TO: Floyd T. Johnson, City Manager
FROM: Lisa Cotten, Safety & Risk Management Coordinator
DATE: June 5, 2013 •
SUBJECT: A Resolution Approving a Property Damage Settlement in the Amount of
$22,563.00 for Damages to the Amos Evans Gym /Multipurpose Building at 1308B
9 Avenue
COMMENTS
RECOMMENDATION:
I recommend approval of Proposed Resolution No. 17710 authorizing the property damage settlement
against Texas Municipal League Intergovernmental Risk Pool (TML) for damage sustained to the City of
Port Arthur Amos Evans Gym /Multipurpose Building located at 1308B 9 Avenue. TML has offered to
settle the claim for $22,563.00, less the City's Real and Personal Property deductible of $5,000.00, plus
Profit and Overhead of $4,512.60 (as quoted by G &G Enterprises), plus a pro rata portion of the City's
deductible recovered through subrogation by TML of approximately $4,000.00, for a total final
settlement of approximately $26,075.60 (see Exhibit "A" attached). This is considered a fair and
reasonable settlement.
BACKGROUND:
On March 6, 2013, a vehicle remote - started by Alberto Barajas (owned by Jorge Eduardo Barajas)
struck the City of Port Arthur Amos Evans Gym /Multipurpose Building located at 1308B 9 Avenue
causing damages. The City has Real and Personal Property insurance coverage through TML with a
$5,000 deductible. Initial payment has been offered from TML in the amount of $17,563.00. If Profit
and Overhead are incurred (as quoted by G & G Enterprises at $4,512.60), that amount would be paid
to the City at the completion of repairs and submittal of final invoice. After subrogation, TML will also
return to the City a pro rata portion (approximately $4,000.00) of the City's deductible paid. This amount
is sufficient to cover all estimated property damages.
BUDGETARY /FISCAL EFFECT:
The funds received will be deposited in the Parks & Recreation Building Maintenance Account: 001-
1402- 551.32 -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
June 5, 2013
Page 2 of 2
SUMMARY:
I recommend approval of Proposed Resolution No. 17710 authorizing the property damage settlement
against Texas Municipal League Intergovernmental Risk Pool (TML) for damage sustained to the City of
Port Arthur Amos Evans Gym /Multipurpose Building located at 1308B 9 Avenue. TML has offered to
settle the claim for $22,563.00, less the City's Real and Personal Property deductible of $5,000.00, plus
Profit and Overhead of $4,512.60 (as quoted by G &G Enterprises), plus a pro rata portion of the City's
deductible recovered through subrogation by TML) of approximately $4,000.00, for a total final
settlement of approximately $26,075.60 (see Exhibit "A" attached). This is considered a fair and
reasonable settlement.
Attachment
"REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR"
P.R. No. 17710
6/05/13 LJC
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE SETTLEMENT
OF A CLAIM IN THE AMOUNT OF $22,563.00 MADE AGAINST
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML)
AS A RESULT OF DAMAGE TO THE AMOS EVANS GYM /MULTIPURPOSE BUILDING
WHEREAS, on March 6, 2013, a vehicle was remote - started by Mr. Alberto Barajas, striking the
Amos Evans Gym /Multipurpose Building at 1308B 9th Avenue, causing damage to the outside of the
building; and,
WHEREAS, as a result of the loss, a claim was filed with Texas Municipal League
Intergovernmental Risk Pool (TML); and,
WHEREAS, TML has offered to settle the claim for $22,563.00, less the Real and Personal
Property deductible amount of $5,000.00, plus Profit and Overhead of $4,512.60 (as quoted by G &G
Enterprises), plus a pro rata portion of the City's deductible recovered through subrogation by TML of
approximately $4,000.00, for a total final settlement of approximately $26,075.60, which is considered
a fair and reasonable settlement (see Exhibit "A" attached).
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 settlement in the amount of
$22,563.00 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.
P.R. NO. 17710
6/05/13
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:
Val izen , City ttor ey
APPROVED FOR ADMINISTRATION:
Floyd T. Johnson, City Manager
/ / /j/ frit, 1,
Dr. Alberti . igpen, Direct f . an Resources
ATTACHMENT "A"
Lisa Cotten
From: LKutch @tmlirp.org
Sent: Thursday, June 06, 2013 8:45 AM
To: Lisa Colten
Subject: Claim #1300202401 - Damage to building at 13086 9th Ave
Attachments: 13202401- POL- 060513fr.doc
Dear Lisa:
Please see attached Proof of Loss form that I will be sending along with payment of the claim. The Risk Pool will make
payment based on the quote from G &G Enterprises in the amount of $22,563 less the $5K deductible for a net
$17,563.00. State sales tax does not apply. If profit and overhead are incurred (as quoted by G &G at $4,512.60) that
amount will be paid to the City at the completion of repairs. I'll need for you to send the final invoice to me to document
completion. The Risk Pool will then pursue subrogation against the other carrier to recover our payment, including the
deductible. We understand the other carrier has a $25K limit. As such, the City's deductible will be returned on a pro rata
share of the total recovered.
Please give me a call should you have any questions.
Lisa Kutch
Sr. Claims Specialist
(800) 537 -6655, ext. 412
1
ATTACHMENT "A" (continued)
I N PROOF OF LOSS PRO
SWORN STATEMENT O
$ 159,388,084.00 7587
AMOUNT OF COVERAGE AT TIME OF LOSS CONTRACT NUMBER
10/01/12 1300202401
COVERAGE EFFECTIVE DATE TML CLAIM NUMBER
10/01/13
COVERAGE EXPIRATION DATE
To the Texas Municipal League Intergovernmental Risk Pool of Austin, Texas.
At time of loss, the TML -IRP provided self - insurance coverage through the Interlocal Agreement to:
City of Port Arthur -
against loss by vehicle collision to the property described according to the terms and
conditions of said contract and all forms, endorsements, transfers and assignments attached thereto.
1. Time and Origin: A vehicle collision loss occurred about the hour of o'clock . m. on the 6th day
of March 2013 . The cause and origin of the said loss were: vehicle collision
2. Occupancy: The building described, or containing the property described, was occupied at the time of the loss as follows, and for no
other purpose whatever: N/A
3. Title and Interest: At the time of the loss, the interest of your member in the property described therein was
N/A . No other person or persons had any interest
therein or encumbrance thereon, except. N/A
4. Changes: Since the said contract was issued, there has been no assignment thereof, or change of interest, use, occupancy, possession,
location or exposure of the property described, except: N/A
5. Total Insurance: The total amount of coverage upon the property described by this contract was, at the time of the loss
$ 159,388,084 as more particularly specified in the apportionment attached, besides which there was no policy or other contract of
insurance, written or oral, valid or invalid.
6. The Actual Cash Value of said property at 22,563.00
,
the time of the loss was $
7. The Whole Loss and Damage was $ TBD
8. Less Amount of Deductible $ 5,000.00
9. The Amount Claimed under the above numbered contract is . . $ 17,563.00
The said loss did not originate by any act, design or procurement on the part of your member, or this affiant; nothing has been done by or
with the privity or consent of your member or this affiant, to violate the conditions of the contract, or render it void; no articles are mentioned
herein or in annexed schedule but such as were destroyed or damaged at the time of said loss; no property saved has in any manner been
concealed, and no attempt to deceive the said TML -IRP, as to the extent of said loss, has in any manner been made. Any other information that
may be required will be furnished and considered a part of this proof.
The furnishing of this blank or the preparation of proofs by a representative of the above self - insurance fund is not a waiver of any of its
rights.
State of
County of Authorized Representative of
Subscribed and sworn to before me this day of , 20
Notary Public