AudiForums.com - Police Cruiser Hit My Car

I'm not sure if anyone has had to deal with something like this. I never have so I was hoping someone could give me some good advice.

A city police cruiser hit my Nissan 300ZX in the middle of the night while it was parked along the curb with no one in it. My car was sitting about 200 feet from the intersection the police car was coming from and it is a straight, slightly downhill street. I was the only car parked on the street. It wasn't raining and the road was dry. My car was hit in the front driver's corner. It turned my front wheel sideways, snapped the inner tie-rod, bent most of the suspension, drove my car backwards about 3 feet and sideways up onto the curb about a foot, and did some other damage to the car. I contacted the city to start a claim that said it would take 6 to 8 weeks minimum to receive a decision. They said I needed to get two estimates. The car wasn't able to be driven so they said I would have to pay for the tow bills (without even knowing if the city was going to give me anything for the car). I got the police report, as I was required, and according to the officer that hit my car, his lunch fell in his lap when he made the turn at the intersection and he was picking it up which caused him to hit my car. He also stated he was only going 15 mph (which I don't believe at all). I got everything they needed and turned in the paperwork and 8 weeks later to the day I received a settlement offer from the city. They used edmunds.com to find the value of my car and that is what they offered me. The offer is drastically lower than what KBB, NADA, and Hagerty say my car is worth. The offer is not enough to repair or replace my car. The amount they offered would only cover about half of the price of parts in the estimate I got. So at the moment I'm stuck with one less car and an offer that isn't enough to get another car or repair mine all because supposedly an officer's lunch fell in his lap. Any advice?