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HomeMy WebLinkAboutPR 18936: SETTLEMENT OF PROPERTY DAMAGE CLAIM IN THE AMOUNT OF $5,694.75 MADE AGAINST STRIKE, LLC CITY OF PORT ARTHUR SAFETY & RISK MANAGEMENT MEMORANDUM TO: Brian McDougal, City Manager FROM: Lisa Cotten, Safety & Risk Management Coordinator DATE: March 27, 2015 SUBJECT: A Resolution Approving a Property Damage Settlement in the Amount of $5,694.75 for Damages to a Water Line (3401-3801 Redbud Avenue) COMMENTS RECOMMENDATION: I recommend approval of Proposed Resolution No.18936 authorizing the property damage settlement against Strike, LLC for damage sustained to a water line (3401-3801 Redbud Avenue). The amount of the proposed settlement is $5,694.75. This is considered a fair and reasonable settlement. BACKGROUND: On June 19, 2014, Strike, LLC contractors were laying a pipeline when they exposed and broke a City water line (3401-3801 Redbud Avenue). The investigation revealed that Strike, LLC was responsible for the incident, so a property damage claim was made against them. Strike, LLC has offered the City $5,694.75 to settle this property damage claim. This amount is sufficient to repair all damages. BUDGETARY/FISCAL EFFECT: The funds received will be deposited in the Water & Sewer Accounts (Regular Wages Account#410- 1253-532.11-00, Water System Maintenance Account #410-1253-532.35-00, and Motor Vehicle Maintenance Account#410-1253-532.43-00). STAFFING/EMPLOYEE EFFECT: No effect on staffing levels: SUMMARY: I recommend approval of Proposed Resolution No.18936 authorizing the property damage settlement against Strike, LLC for damage sustained to a water line (3401-3801 Redbud Avenue). The amount of the proposed settlement is $5,694.75. This is considered a fair and reasonable settlement. "REMEMBER, WE ARE HERE TO SERVE THE CITIZENS OF PORT ARTHUR" P.R. No. 18936 3/27/15 LJC RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE SETTLEMENT OF THE PROPERTY DAMAGE CLAIM IN THE AMOUNT OF $5,694.75 MADE AGAINST STRIKE, LLC AS A RESULT OF PROPERTY DAMAGE TO A WATER LINE (3401-3801 REDBUD AVENUE) WHEREAS, on or about June 19, 2014, a water line (3401-3801 Redbud Avenue) was broken by Strike, LLC; and, WHEREAS, as a result of the damage, the City of Port Arthur has filed a claim for property damage against Strike, LLC; and, WHEREAS, Strike, LLC has offered to settle the claim for $5,694.75, as shown in Exhibit "A" (attached), 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 accept $5,694.75 from Strike, LLC in settlement of the City's property damage claim, and execute the Conditional Waiver and Release of Final Payment, in substantially the same form as attached hereto as Exhibit "A". Section 3. That, a copy of this Resolution be spread upon the minutes of the City Council. P.R. No. 18936 3/27/15 LJC Page 2 of 2 READ, ADOPTED, AND APPROVED this day of , AD, 2015, 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 APPROVE AS TO FORM: 1 I Val Tizeno, City -rney APPROVED FOR ADMINISTRATION: Brian McDougal, City M-nager Dr. -rt`T. Thigpen, Dirtri r of ' man Resources And Parks & Recreation Exhibit "A" CONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT Project: City of Port Arthur Damage Claim—Broken Water Line Purchase Order No.: N/A Job No.:H33606 On receipt by the signer of this document of a check from Strike, LLC in the sum of$5,694.75 payable to CITY OF PORT ARTHUR and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanic's lien right, any right arising from a payment bond that complies with a state or federal statute, any common law payment bond right, any claim for payment, and any rights under any similar ordinance, rule, or statute related to claim or payment rights for persons in the signer's position that the signer has on the property of the CITY OF PORT ARTHUR located at or around 3401-3801 REDBUD AVE, PORT ARTHUR, TX to the extent signer provided labor, materials, and equipment for REPAIR TO A BROKEN WATER LINE . This release covers the final payment to the signer for all labor, services, equipment, or materials furnished to the property or to Strike, LLC, Sunoco Pipeline L.P. and/or Sunoco Partners Marketing & Terminals L.P. in connection with the City of Port Arthur's damage claim relating to an incident occurring on or about June 19, 2014 involving damage to a water line. Before any recipient of this document relies on this document, the recipient should verify evidence of payment to the signer. The signer warrants that the signer has already paid or will use the funds received from this final payment to promptly pay in full all of the signer's laborers, subcontractors, material men, and suppliers for all work, materials, equipment, or services provided for or to the above referenced project up to the date of this waiver and release. Date: On Behalf of the City of Port Arthur By: Signature Print: Title: SUBSCRIBED AND SWORN TO BEFORE ME this the day of , 2015. NOTARY PUBLIC, in and for the state of Texas My commission expires: