HomeMy WebLinkAboutIR 7585 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7585
�g4FOar 0 01-Ttst,0 To the Mayor and Members of the City Council March 3, 1992
X Subject: Subrogation Policy and Statistical Detail :FY 90-91
Reports of losses, most of which are for vehicle damage, are received routinely
in the claims office in the Risk Management Department. When it is determined
that a party other than the City is responsible for damage incurred to City
property, the subrogation section of the claims office pursues recovery.
The money collected for damages is deposited into the Insurance Fund (FE71) .
Then, on a quarterly basis, M&Cs are included on the City Council agenda for
authorization to return the money as revenues to the respective funds that sus-
tained the damages recovered.
Subrogation collections are tabulated on a quarterly basis. Total amounts re-
covered during FY 90-91 are listed on Table A, attached to M&C G-9526.
In FY 90-91, 123 collections were documented for the total $164,388.46 col-
lected.
Vehicle damage: 115 of the 123 with $140,773.46 collected;
Miscellaneous damage' 8 of the 123, for which $23,615.00 collected
Forestry, tree damaged by vehicle
H. 6 H. S. building hit by vehicle
Auto Pound parking lot, pavement damage
?OIL Cellular phone stolen
Bicycle lost in fire
Fence damage
Garage struck by vehicle
Streets, fuel. leak damage
Additionally, the Risk Management Department operates a self-insurance program
within its property and casualty section with coverages comparable to those com-
mercially insured. During FY 1990-91, departments sustained losses covered
within the City's self-insurance program totalling $63,282 . Most of this
($56,558) related to property damage occurring to property covered by the City's
commercial fire and extended coverage policy, but within the $100,000 per occur-
rence deductible that the City has with the commercial insurer.
As stated above, the funds, whether received from third parties or transferred
from the City's self-insurance program, are recorded as revenues in the funds
which sustained the loss. In the case of the General Fund, receipt of this rev-
enue is anticipated as part of estimated budgeted revenues to meet current ex-
penditure requirements .
Any expenditure of these funds of more than $5,000 will require Council action
per established procedures.
Please let me know if you require additional information.
David Ivory
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS