Broken Arrow City Council
Meeting of: 02-19-2018
Title:
title
Approval of and authorization to accept State Farm Insurance Company’s offer to settle a claim for vehicle loss, declaring the vehicle surplus and releasing it to State Farm Insurance Company
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Background:
A Police Department vehicle was involved in a collision on October 6, 2018. The vehicle, unit number 1264, a Chevrolet Tahoe, was purchased on October 11, 2012 for $26,153.00. The unit was in good to fair condition with 93,338 miles accumulated at the time of the accident. Replacement of this vehicle is undetermined at this time.
State Farm Insurance Company has determined the vehicle is totaled and made an offer to settle the vehicle loss at 75% liability for $10,302.00. Based on the accident investigation, Risk Management feels this percentage is appropriate.
State Farm’s assessed value of the vehicle is $1,000 less than our Fleet Division’s assessment based on the National Automobile Dealers Association (NADA) price and value guide. State Farm based their calculations on market value rather than book value. The Fleet Maintenance Division is satisfied that the settlement offer by State Farm is appropriate compensation for the vehicle based on NADA book values.
Funds from this settlement will go into the Sales Tax Capital Improvement Fund.
Cost: None
Funding Source: Not applicable
Requested By: Lee Zirk, General Services Director
Approved By: Michael L. Spurgeon, City Manager
Attachments: Settlement offer for unit 1264, State Farm
Recommendation:
recommend
Approve and accept the offer from State Farm Insurance Company to settle the claim for vehicle loss, declare the totaled vehicle surplus and release it to State Farm Insurance Company.
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