HomeMy WebLinkAboutPO 6388: AUTO DAMAGE CLAIM (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: June 26, 2014
SUBJECT: An Ordinance Approving a Property Damage Settlement in the Amount of $6,118.00 for
Damages to City of Port Arthur Water Distribution Vehicle#1673
COMMENT
RECOMMENDATION:
I recommend approval of Proposed Ordinance No. 6388 authorizing the property damage settlement against
Texas Municipal League Intergovernmental Risk Pool (TML) for damage sustained to Water Distribution
Vehicle #1673 (2008 Ford F150). TML has offered to settle the claim for $6,118.00, less the City's Automobile
Physical Damage deductible of$2,500.00, making the final settlement offer$3,618.00.
It has been determined that damages sustained by Water Distribution Vehicle #1673 rendered the vehicle a
total loss. Since the damages are in excess of the fair market value of the vehicle, this is considered a fair
and reasonable settlement.
BACKGROUND:
On May 31, 2014, Water Distribution Vehicle #1673, operated by Mr. Cornelius Collins, Equipment Operator II,
was rear-ended by Mr. Rickey Polidore, in the 1200 Block of SH 73 near the 4800 Block of Savannah. The City
has Automobile Physical Damage insurance coverage through TML with a $2,500.00 deductible. After review
and inspection of Water Distribution Vehicle #1673, it was determined that damages were in excess of the fair
market value. TML has offered the City a settlement of $6,118.00, less the $2,500.00 deductible, making the
final settlement offer$3,618.00, in exchange for transfer of title of Vehicle#1673 to TML (Exhibit "A" attached). If
TML is successful in subrogation recovery, the City will be reimbursed the $2,500.00 deductible.
BUDGETARY/FISCAL EFFECT:
The funds received will be deposited in the Water Distribution Motor Vehicle Maintenance Account #410-1253-
532.43-00.
STAFFING/EMPLOYEE EFFECT:
No effect on staffing levels:
SUMMARY:
I recommend approval of Proposed Ordinance No. 6388 authorizing the property damage settlement against
Texas Municipal League Intergovernmental Risk Pool (TML) for damage sustained to Water Distribution
Vehicle #1673 (2008 Ford F150). TML has offered to settle the claim for $6,118.00, less the City's Automobile
Physical Damage deductible of $2,500.00, making the final settlement offer$3,618.00.
It has been determined that damages sustained by Water Distribution Vehicle #1673 rendered the vehicle a
total loss. Since the damages are in excess of the fair market value of the vehicle, this is considered a fair
and reasonable settlement.
Attachment
"REMEMBER,WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR"
P.O. No. 6388
6/26/14 LJC
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE CITY MANAGER
TO EXECUTE SETTLEMENT OF AN AUTOMOBILE PHYSICAL DAMAGE CLAIM
IN THE AMOUNT OF $6,118.00 MADE AGAINST
TEXAS MUNICIPAL LEAGUE INTERGOVERNMENTAL RISK POOL (TML)
AS A RESULT OF THE PROPERTY DAMAGE TO WATER DISTRIBUTION VEHICLE #1673
WHEREAS, on May 31, 2014, City of Port Arthur Water Distribution Vehicle#1673 (2008 Ford F150) was
damaged when it was involved in a rear-end collision; and,
WHEREAS, as a result of the damage, a claim was filed with the Texas Municipal League
Intergovernmental Risk Pool (TML); and,
WHEREAS, it has been determined that damages sustained by Water Distribution Vehicle #1673 were in
excess of the fair market value of the vehicle; and,
WHEREAS, the TML has offered to settle the claim for $6,118.00, less the Automobile Physical Damage
deductible amount of $2,500.00, making the final settlement $3,618.00, which is considered a fair and
reasonable settlement.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR:
Section 1. That, the facts and opinion in the preamble of this Ordinance are true and correct.
Section 2. That, the City Manager is hereby authorized to execute settlement in the amount of
$6,118.00, less the Automobile Physical Damage deductible amount of$2,500.00, making
the final settlement $3,618.00, for the claim against TML in substantially the same form as
delineated in Exhibit "A", in exchange for transfer of title of Vehicle#1673 to TML.
Section 3. That a copy of this Ordinance be spread upon the minutes of the City Council.
P.O. No. 6388
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6/26/14 LJC
Page 2 of 2
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:
Deloris "Bobbie" Prince, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
Val Tizeno, '' Attar -
APPROVED FOR ADMINISTRATION:
John A. Comeaux, P.E., Interim City MMa_•cr
Dr. Albe T. pen, Director of Human Resources
Exhibit "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. 1400213035
Date Issued 10-01-13 Agent Texas Municipal League Intergovernmental Risk Pool
Date Expires 10-01-14 Agency At Austin,Texas
To the Texas Municipal League Intergovernmental Risk Pool
Of Austin,Texas By your coverage document described above,
you Member City of Port Arthur
(HEREINAFTER CALLED THE MEMBER)AGAINST LOSS OF OR DAMAGE TO THE AUTOMOBILE DESCRIBED AS FOLLOWS:
TRADE NAME TYPE OF BODY MODEL MODEL VEHICLE IDENTIFICATION NUMBER
DESCRIPTION (IF TRUCK STATE TONNAGE) (YEAR)
OF Ford Truck F150 2008 1FTNF20568EC38770
AUTOMOBILE
TIME AND A loss caused by occurred on the 31 day of May 2014 ,about the hour of .M.,the full
ORIGIN particulars of which are as follows: (State where and how it occurred)
Mbr driver was sitting at a red light when he noticed a driver approaching at a high rate of speed.The other driver never slowed down an
rear ended the mbr truck
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
$ $6,118.00 $2,500.00 $3,618.00
SUBROGATION To the extent of the payment made or advanced under this policy,the Member hereby assigns,transfers and sets over to the Texas Municipal League Intergovernmental Risk Pool all
rights,claims or interests that he has against any person,firm or corporation liable for the loss or damage to the property for which payment is made or advanced. He also hereby
authorizes the Texas Municipal League Intergovernmental Risk Pool to sue any such third party in his name.
The Member hereby warrants that no release has been given or will be given or settlement or compromise made or agreed upon with any third party who may be liable in damages to t
Member with respect to the claim being made herein.
The said loss or damage did not originate by any act,design or procurement on my/our part nor on the part of anyone having interest in the property covered,or in the said coverage document;nor in consequence
of any fraud or evil practice done or suffered by me/us and that no property saved has in any manner been concealed.
It is expressly understood and agreed that the furnishing of this blank or the preparation of proof by a representative of the Texas Municipal League Intergovernmental Risk Pool is not a waiver of any of its rights.
State of X
County of
Member.
Subscribed and sworn to before me this day of
PAYMENT AUTHORIZATION NOTARY PUBLIC.
is hereby requested,authorized and empowered to pay,at its option,as follows:
To The sum of$
To The sum of$
To The sum of$
Amount Claimed Under Coverage Document $
Witness: Insured
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Address: By
TITLE