05-12-14 Regular Meeting of La Porte City Council

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REQUEST FOR CITY COUNCIL AGENDA ITEMREQUEST FOR CITY COUNCIL AGENDA ITEM May 12, 2014May 12, 2014AppropriationAppropriation Agenda Date Requested:Agenda Date Requested: N/A N/A Jeff Suggs Jeff Suggs Source of Funds:Source of Funds: Requested By: Account Number:Account Number: Administration Administration Department: Amount Budgeted:Amount Budgeted: Report:Resolution:Resolution:Ordinance:Ordinance: Amount Requested:Amount Requested: Other: Budgeted Item:Budgeted Item:YESYESNONO Attachments :Attachments : SUMMARY & RECOMMENDATIONSSUMMARY & RECOMMENDATIONS There are two Whelen towers that are in need of repair at this time. One tower was struck by lightning and There are two Whelen towers that are in need of repair at this time. One tower was struck by lightning and another had its controller box components eaten by ants. The LEPC has agreed to fund the repair of one tower. another had its controller box components eaten by ants. The LEPC has agreed to fund the repair of one tower. The total requested for these emergency repairs is $15,000 from the General Fund contingency amount, which will The total requested for these emergency repairs is $15,000 from the General Fund contingency amount, which will cover the repair of the remaining tower and leave funds available to address any other maintenance issues this cover the repair of the remaining tower and leave funds available to address any other maintenance issues this summer. The Council initially considered this request as part of the Quarterly Budget amendment on April 28, summer. The Council initially considered this request as part of the Quarterly Budget amendment on April 28, 2014. Additional information was requested regarding the insurance coverage for the towers. 2014. Additional information was requested regarding the insurance coverage for the towers. After confirming with Human Resources, the coverage for the towers is as follows: After confirming with Human Resources, the coverage for the towers is as follows: The towers are covered as real property under the CityThe towers are covered as real property under the Citys TML coverage and each tower shows a s TML coverage and each tower shows a replacement cost of $33,000. replacement cost of $33,000. replacement cost of $33,000. replacement cost of $33,000. There is a $25,000 deductible per occurrence for the towers. There is a $25,000 deductible per occurrence for the towers. The City has additional coverage for flood and earthquake and that deductible is $25,000 per occurrence as The City has additional coverage for flood and earthquake and that deductible is $25,000 per occurrence as well. The City has additional named storm coverage for flood only with a 1% deductible for each covered unit. The City has additional named storm coverage for flood only with a 1% deductible for each covered unit. Staff also inquired as to what it would cost to pull the towers from the overall City coverage and carry them as a Staff also inquired as to what it would cost to pull the towers from the overall City coverage and carry them as a stand alone policy. The cost, as estimated by TML, could be as much as 50% of the current premium for the stand alone policy. The cost, as estimated by TML, could be as much as 50% of the current premium for the towers, or approximately $40,000. towers, or approximately $40,000. Staff recommends approving this expenditure as part of the quarterly budget amendment. Staff recommends approving this expenditure as part of the quarterly budget amendment. Action Required of Council:Action Required of Council: Consider approval or other action to amend the budget to include an expenditure of $15,000 for Whelen tower Consider approval or other action to amend the budget to include an expenditure of $15,000 for Whelen tower repair and maintenance. repair and maintenance.