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Home My WebLink AboutPR 18201: SETTLEMENT CLAIM IN THE AMOUNT OF $15,129.44 (TML) CITY OF PORT ARTHUR SAFETY & RISK MANAGEMENT MEMORANDUM TO: John A. Comeaux, P.E., Interim City Manager FROM: Lisa Cotten, Safety & Risk Management Coordinator DATE: February 12, 2014 SUBJECT: A Resolution Approving Settlement of a Property Damage Claim in the Amount of $15,129.44 as a Result of Damage to the Pleasure Island Cart Barn (1901 T B Ellison Parkway) COMMENTS RECOMMENDATION: recommend approval of Proposed Resolution No. 18201 which authorizes the settlement of a property damage claim in the amount of $15,129.44 made against Texas Municipal League Intergovernmental Risk Pool (TML) as a result of property damage to the Pleasure Island Cart Barn (1901 T B Ellison Parkway) on or about October 4, 2013. TML has offered to settle the claim for $15,129.44, less the City's Real and Personal Property deductible of $5,000.00, making the final settlement offer $10,129.44 (Exhibit "A" attached). This is considered a fair and reasonable settlement. BACKGROUND: On or about October 4, 2013, the Pleasure Island Cart Barn, located at 1901 T B Ellison Parkway, was broken into by unknown person(s), resulting in extensive damages (vandalism /theft). The City has Real and Personal Property insurance coverage through TML with a $5,000.00 deductible. Payment has been received from TML in the amount of $15,129.44, less the City's Real and Personal Property deductible of $5,000, for a final payment of $10,129.44. The Recoverable Depreciation of $2,549.61 may be paid to the City at the completion of repairs and submittal of final invoices. This amount is sufficient to cover all estimated property damages. If additional damages are discovered, TML may issue a supplemental payment. BUDGETARY /FISCAL EFFECT: The funds received will be deposited in the Pleasure Island Building Maintenance Account #450 -1291- 549.32 -00. STAFFING /EMPLOYEE EFFECT: No effect on staffing levels: SUMMARY: I recommend approval of Proposed Resolution No. 18201 which authorizes the settlement of a property damage claim in the amount of $15,129.44 made against Texas Municipal League Intergovernmental Risk Pool (TML) as a result of property damage to the Pleasure Island Cart Barn (1901 T B Ellison Parkway) on or about October 4, 2013. TML has offered to settle the claim for $15,129.44, less the City's Real and Personal Property deductible of $5,000.00, making the final settlement offer $10,129.44 (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. 18201 2/12/14 LJC RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE SETTLEMENT OF A PROPERTY DAMAGE CLAIM IN THE AMOUNT OF $15,129.44 MADE AGAINST TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML) AS A RESULT OF DAMAGE TO THE PLEASURE ISLAND CART BARN (1901 T B ELLISON PARKWAY) WHEREAS, on or about October 4, 2013, the Pleasure Island Cart Barn (1901 T B Ellison Parkway) was broken into by unknown person(s) resulting in extensive damages (vandalism /theft); 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 $15,129.44, less the Real and Personal Property deductible amount of $5,000.00, making the final settlement $10,129.44, 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 execute settlement in the amount of $15,129.44 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. READ, ADOPTED, AND APPROVED this day of , AD, 2014, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers NOES: P.R. #18201 2/12/14 Page 2 of 2 Deloris "Bobbie" Prince, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED AS TO FORM: al Tizen•, City ttorney �-� ear APPROVED FOR ADMINISTRATION: John A. Comeaux, P.E., Interim City Manager O / / I!f!i • ,, _fi Dr. Albe T. i• pen, Director of i an Resources Exhibit "A" SWORN STATEMENT IN PROOF OF LOSS $2,696,000 7587 AMOUNT OF COVERAGE AT TIME OF LOSS CONTRACT NUMBER 10/1/2013 1400204720 COVERAGE EFFECTIVE DATE TML CLAIM NUMBER 1 0/1/2014 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 Toss by Vandalism 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 vandalism loss occurred about the . hour on the 4th day of October, 2013. The cause and origin of the said loss were damages to property due to vandalism damage 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: _Cart Barn 3. Title and Interest: At the time of the loss, the interest of your member in the property described therein was Owner /Trustee. No other person or persons had any interest therein or encumbrance thereon, except: _No Exceptions 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: No Exceptions 5. Total Insurance: The total amount of coverage upon the property described by this contract was, at the time of the loss, $286,400, besides which there was no policy or other contract of insurance, written or oral, valid or invalid. 6. The Actual Cash Value valued by TML -IRP of said property at the time of the loss was . .. $ 7. TheWhole Loss and Damage known at this time.. $ 15,129.44 8. Less Amount of Deductible $ 5000.00 9. The Amount Claimed under the above numbered contract is . . $ 10,129.44 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