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RESOLUTION NO. R-1314-103: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, APPROPRIATING $160,000 FROM THE RISK MANAGEMENT FUND BALANCE TO BE USED TO REPAIR HAIL DAMAGE TO CITY VEHICLES CAUSED BY THE 2013 STORM EVENT TO BE REIMBURSED BY FEDERAL EMERGENCY MANAGEMENT AGENCY.
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BACKGROUND: During the severe weather outbreak event May 18 - June 2, 2013, Norman experienced severe storms, flooding and tornados that caused widespread damage throughout the City of Norman. During this time, there was an immediate threat to lives, property and public health and safety and FEMA Declaration OK-DR-4117 was approved. City of Norman vehicles and equipment were damaged by hail during this period.
DISCUSSION: The City of Norman is self-insured against damage to vehicles and equipment. The Federal Emergency Management Agency (FEMA) has agreed to reimburse hail damages to City vehicles and equipment. If such damage is above $5,000 per unit, however, FEMA requires the City purchase outside insurance to cover future losses before reimbursement will be made. As such, the City will only request reimbursement for damages below the $5,000 individual unit amount. The Fleet Management Division has developed a listing of such vehicles and equipment (see attached listing). The total estimate for this damage is approximately $160,000. Repairs need to be completed within 18 months to be eligible for FEMA reimbursement.
Uninsured losses are covered by the Risk Management Fund (account 043-3004-415.47-98). The unencumbered balance of this account is $15,320.90 as of January 31, 2014 and said funds are needed to complete the fiscal year. It is not known at this time when reimbursement funds will be received from FEMA once repairs are completed and request for reimbursement is made.
RECOMMENDATION: It is recommended that City Council appropriate $160,000 from Risk Management Fund Balance (account 043-0000-253.20-00) to Uninsured Losses (account 04...
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