HomeMy WebLinkAbout2006 02 27 Consent 406 Walters Sewer System Back Up
COMMISSION AGENDA
February 27, 2006
Regular Meeting
Consent X
MGR/DEPT
Authorization
ITEM 406
REQUEST:
City Manager requesting the City Commission to approve settlement with
Mark & Elizabeth Walters resulting from sewer system back-ups during
Hurricane Charley and approval a supplemental appropriation from Utility
Fund Reserves for funding of the City portion of this settlement.
PURPOSE:
To obtain City Commission approval of settlement with Mark & Elizabeth
Walters resulting from sewer system back-ups during Hurricane Charley and
approve a supplemental appropriation from Utility Fund Reserves for funding of
the City portion of this settlement.
CONSIDERATIONS:
On December 14, 2005 the City Commission approved settlement with seven homeowners in
regards to sewer system back-ups during Hurricane Charley. Terms of the settlement included:
1. 10% of approved losses, plus
2. $2,500, plus
3. A pro rata share of $17,500 ($2,500 x 7) based on the proportion of individual's approved
losses to the whole.
On recommendation from the City's insurance company (Florida League of Cities), three cases
(Smith, Camarano & Walters) were not settled at that time as these parties had pending claims
with their respective insurance companies.
During the December 14,2005 meeting, Mr. Walters addressed the Commission in regards to his
case. He indicated he was awaiting final determination from his insurance carrier, State Farm,
and would transmit such to the City Manager when available. Subsequently, Mr. Walters has
received final determination from State Farm and has delivered such to the City. The City has
transmitted same to our insurance carrier and has received approval for payment.
Mr. Walters initially requested settlement terms commensurate with the December 14
Commission action. This calculation would be difficult if not impossible, however, in that the
final loss calculations for Camarano and Smith have not yet been completed (further, it is unsure
as to when this will occur). Therefore, "part 3" of the December 14 calculation would not be
possible to obtain in that the total loss denominator is not yet available.
As an alternative and in an effort to meet Mr. Walters' request for an immediate settlement rather
than wait for data from the Camarano and Smith cases, Mr. Walters was offered and accepted the
following settlement:
1. 10% oflosses per private carrier State Farm = $3,919.20, plus
2. $2,500
For a total settlement of $6,419.20.
This offer is contingent upon Commission approval and Mr. and Mrs. Walters' execution of a
full release within 15 days after receipt of this settlement agreement.
FUNDING:
Funding will be as follows:
1. $3,919.20 paid by the City's insurance carrier (Florida League of Cities).
2. $2,500.00 paid by City via a supplemental appropriation from Utility Fund Reserves.
RECOMMENDATION:
The City Manager recommends the Commission take the following actions:
1. Approval final settlement with Mark & Elizabeth Walters resulting from sewer system
back -ups during Hurricane Charley in the amount of $6,419.20, contingent upon
execution of a full release within 15 days after their receipt of the settlement agreement.
2. Approve a supplemental appropriation from Utility Fund Reserves in the total amount of
$2,500 to fund the City portion of the settlement with Mr. and Mrs. Walters. .
ATTACHMENTS:
1. Fax from Mr. Walters
2. Letter to Mr. and Mrs. Walters from State Farm Insurance Co.
COMMISSION ACTION:
ATTACHMENT 1
FACSIMILE TRANSMITTAL SHEET
TO,
Mr. Rooald McLemore
COMPANY:
City of Winter Springs
FAX NUMBER 407~327-6686
PHONE NUMBER 407-327-1800
FROM;
Mark Walters
DATE:
01/11/2006
TOTAL NO. OF PAGES INCLUDING COVER:
3
SENDERS PHONE NUMBER:
407-921-4191
RE:
Sewer Overflow
URGENT, FOR REVIEW, PLEASE COMMENT, PLEASE REPLY, PLEASE RECYCLE
Hello Mr. McLemore,
Please find attached a letter dated December 13, 2005 from State Farm Insurance
Companies Claim Representative, Jack Wilson. This is in reference to claim number 59-
P145-455, date of loss August 13th, 2004. Mr. Wilson indicates that the file is closed and
subrogation is not being pursued. Also attached is a letter from Mr. Wilson, dated January
6th, 2006, indicating a total expense for this claim of $39,191.97.
Per your December 14th, 2005 at Commission Special meeting Agenda, I would like to
request final determination and settlement in accordance with the motion as passed that
evening.
I appreciate your Concern and benevolence in handling this matter. Thank you for your
consideration and I look forward to your response in the form of a settlement agreement.
ATTACHMENT 2
State Farm Insurance Companies
January 6, 2006
Florida Office
Fire Centralized Subrogation
7401 Cypress Gardens Blvd.
P.O. Box 9605
Winter Haven, Fl 33883-9605
Mark E & Elizabeth V Walters
1605 Little Sparrow Ct
Winter Springs FI 327085506
Re: Claim N\lmber:
Date of Loss:
59-PI45-455
08-13w04
Dear Mr. and Mrs. Walters;
I have reviewed your file at your request to determine the final amount of the claim. The
information is as follows:
Coverage A: $31,556.89 (Building Damages)
Coverage B: $ 7,135.08 (Personal Property)
Deductible: $ 500.00
Total: $39,191.97
Please let me know if you have any questions conceming these amounts.
Sincerely.
Jack Wilson
Claim Representative
State Farm Florida Insurance Company
(863) 318-3266