HomeMy WebLinkAbout4F - Contingency Expenditures
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
DISCUSSION:
4F
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF CONTINGENCY EXPENDITURES
SEPTEMBER 16, 1996
The purpose for this agenda item is to receive final City Council
approval for various emergency Contingency expenditures that have
occurred to date, For each expenditure the Council either gave
preliminary approval to expend from the Contingent Reserve and
that insurance would cover the partial cost of the specific loss( es),
These replacement expenditures have now been virtually 100%
finalized and all insurance settlements agreed to.
The specific events/items that required appropriations from the
Contingent Reserve were the following:
Date of Occurrencel Amount
AccidentllncidentlPurpose Council Consideration Authorized
1. Lakefront Master Plan
2. Squad car accident
3. Ice storm
4. City Hall/Library roofs
5. Wind storm
6. Building inspection services
7. Smoke house purchase
$16,000.00
Out-of-pocket
Out-of-pocket
S33,542.00
SIO,OOO.OO
S30,000.00
S4,229.00
December 4, 1995
January 8, 1996
January 18, 1996
March 13, 1996
May 20, 1996
July 15, 1996
August 5, 1996
Outlined below is a recap of the total expenditures incurred for each
of the above items, insurance recovery (if any) and net expenditure
result.
Expense Item Total Cost Insurance Payment Net Cost
Lakefront Master Plan SI6,000.00 N/A $16,000.00
Squad car accident S26,950.91 S 9,622.25 SI7,328.66
Ice storm S33,434.26 S24,818.20 S8,616.06
City HalllLibrary roofs $33,542.00 N/A $33,542.00
Wind storm S8,493.08 N/A $8,493.08
Bldg. inspection services S30,000.00 N/A $30,000.00
Smoke house purchase $3 229 00 WA $3 229 00
$151,649.25 S34,440.45 5117,208.80
The Contingency account provides the necessary funding for such
emergency expenses and also serves as a reserve for occasional
projects deemed important by the Councilor for fairly large scale
repair projects which come up unexpectedly and cannot be delayed,
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16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
The costs associated with the squad car incident were higher because
a power pole with a transformer was struck, Damage reimbursement
to Minnesota Valley Electric amounted to nearly $6,300 which
added to the replacement cost of the new vehicle, The combined
storm damage cost exceeded $40,000 however we were able to
recover almost $25,000 under our LMCIT (League of Minnesota
Cities Insurance Trust) policy.
Because the Lakefront Master Plan preparation, wind storm resident
debris drop-off service, building inspection staffing level increase
and a fire safety house allocation have all been previously approved,
only the expenses attributed to the squad car accident and ice storm
need formal Council approval.
ALTERNATIVES:
1, Adopt a motion and second approvmg not-to-exceed
expenditure amounts of:
a.) $18,000 for squad car replacement costs.
b.) $ 9,000 for ice storm damages,
2, Take no action at this time and direct the staff to provide
additional information,
FINANCIAL IMPACT: The remaining balance in the Contingent Reserve will be
approximately $22,791 out of an original amount of $140,000 as
provided within the context of the 1996 General Operating Budget.
RECOMMENDATION: Alternative 1. Staff has rounded the amounts up slightly to cover any
minor additional billings that may not have occurred at this point in
time.
ACTION REQUIRED: Motion and a second to approve a maximum of $18,000 for squad
replacement costs and an additional not-to-exceed amount of $9,000
for ice storm related expenditures from the Contingent reserve.
IJ
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