Broken Arrow City Council
Meeting of: 04-16-2019
Title:
title
Approval of and authorization to accept Traders Insurance Company’s offer to settle a claim for vehicle loss
End
Background:
A Fire Department vehicle was involved in a collision on February 25, 2019. The vehicle, unit number 1850, a 2018 Chevrolet Silverado 2500 pickup, was purchased on April 4, 2018 for $29,912.00. The unit was in excellent condition with 10,340 miles accumulated at the time of the accident. Replacement of this vehicle is undetermined at this time.
The tortfeasor is a 22 year old female resident of Broken Arrow and is covered by a policy of insurance with Traders Insurance Company with a $25,000 property damage limit. Repair estimates secured by the City for the truck range from $25,581 to $34,562. Traders Insurance Company has made an offer to settle the vehicle loss for the tortfeasor’s $25,000 policy limits, subject to negotiation of the terms of a release, with the City retaining the truck to recover any salvage value. The Legal Department has advised that proceeding to litigation and attempting to collect on a judgment in excess of the $25,000 policy limits from the tortfeasor personally would not be advantageous and would not likely result in actually recovering an amount in excess of the $25,000 policy limits. The Legal Department has recommended accepting the policy limits for settlement. The totaled truck will receive a salvage title and will be added to the next surplus auction and be declared surplus at a future Council meeting.
Funds from this settlement will go into the Public Safety Sales Tax-Fire Fund.
Cost: None
Funding Source: Not applicable
Requested By: Lee Zirk, General Services Director
Approved By: Michael L. Spurgeon, City Manager
Attachments: None
Recommendation:
recommend
Approve and accept the offer from Traders Insurance Company and authorize the Legal Department to negotiate terms of, sign, and notarize any release forms required from Traders Insurance Company.
end