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 rele...
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