City councilors OK expenditures from emergency funds - Insurance News | InsuranceNewsNet

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July 25, 2019 Newswires
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City councilors OK expenditures from emergency funds

Muskogee Phoenix (OK)

Jul. 25--Councilors authorized expenditures from the city's emergency reserves to fund disaster recovery projects as the scope of those efforts continue to evolve.

City Manager Mike Miller said use of the funds will allow projects at the city's water and wastewater treatment plants to move forward as the assessment to determine eligibility for disaster assistance continues. While the latter has yet to be determined, it is believed the flooding that occurred in late May and early June "was of sufficient severity and magnitude" that disaster aid will be made available.

"We don't know for sure -- we have to go into this with our eyes open that the reserve may not be fully replenished," Miller said. "But we have to do the work now to get everything back online."

Miller told city councilors he anticipates the costs of repairing public infrastructure damaged by near-record flooding will be reimbursed by insurance and disaster aid available through the Federal Emergency Management Agency. Expenditures tied to repair of public infrastructure damaged by a declared disaster typically are reimbursed by FEMA at a rate of 75 percent.

The city's emergency reserves, or stabilization fund, consists of a certain percentage of the budgeted operating revenue that is set aside and available only for designated purposes. In addition to eliminating a financial liability, the funds can be tapped for emergencies involving life, health and public safety issues, unforeseen situations that are non-recurring, and a few other instances specifically set out by city ordinance.

Expenditures approved this week included $42,700 for a contract with Tonto Construction Inc., which city councilors ratified after the fact pursuant to a resolution that authorized emergency expenditures pursuant to a disaster declaration. Public Works Director Greg Riley said Tonto "had the only earth-moving truck with the height to drive in and out" of the Port of Muskogee when berms were built around the water plant to save it from a rising Arkansas River.

"The issue was getting in and out of the plant ..., so they mobilized within an hour and we were able to save our high service pump area and dry that area out," Riley said, describing the efforts required to maintain municipal water service. "That was a saving act as we built up the berms and then we added one that night."

Expenditures totaling $88,250 were approved with the ratification of two contracts with L&L Construction Inc., which helped restore operations at the city's wastewater treatment plant. The facility was inundated by floodwaters, which made the plant inoperable for several days.

"The water was 31 inches over a 10-foot wall, so it wasn't something we could save on short notice," Riley said. "As the water receded -- and we pumped out water from behind the wall -- we had a huge mess and ... a lot of issues that needed corrected."

Riley described L&L's contribution to those efforts as "monumental." While much of the work is done and the plant is treating sewage, Riley said the focus is shifting toward engineered solutions and replacing the equipment damaged by flooding.

Miller said there will be no extension of an emergency declaration approved by resolution in May and subsequently extended so there will be a return to routine purchasing procedures. Going forward, Miller said disaster-related expenditures of $25,000 or greater will go through the bidding process.

___

(c)2019 the Muskogee Phoenix (Muskogee, Okla.)

Visit the Muskogee Phoenix (Muskogee, Okla.) at muskogeephoenix.com

Distributed by Tribune Content Agency, LLC.

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