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Consideration of approval of August 2025 flood-related emergency purchases and fund transfers and update on initial assessment of public sector damage
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Submitted by:
John Ruggini
Department:
Finance
A. Issue
City staff responded with emergency measures with our initial response and on-going recovery efforts to the August floods. As such, approval of emergency purchases and interim fund transfers are required.
B. Background/Options
Nearly 14 inches of rain fell over a 12-hour period from August 9-10th causing the Menomonee River to overflow its banks resulting in overland flooding. The Mayor declared an emergency and the Fire Chief activated the City’s Emergency Operations Center which convened at 9:00am on Sunday, August 10th. Public Works Fire and Police departments responded to rescue residents and their pets and secure and protect public infrastructure. In accordance with emergency operation procedures, purchasing and expenditure control procedures were waived where necessary and subsequent approval is requested.
The following emergency purchases were made without competitive solicitations and require approval:
Table 1
It should be noted that the ATI Restoration company was on the state contract, so it was competitively solicited but since it is over $25,000 would have otherwise required Council approval.
In addition, fund transfers are needed in multiple departments. Initially, we are projecting the following to cover costs incurred and near future costs:
Table 2
We propose covering the General Fund and Parks costs from the General Fund Unassigned Reserve and the other funds from their own fund balances. These amounts could be reimbursed in the future when a FEMA determination has been made. In the meantime, we are expecting the following insurance reimbursements and recommend fund transfers to recognize the revenue (* indicates estimates not yet approved):
Table 3
The City was also fortunate to receive a $1,000,000 donation from the Tosa Foundation and requests a fund transfer to recognize this revenue in the Parks Fund.
Finally, we have submitted the following cost estimates to the Federal Emergency Management Agency for potential reimbursement:
Table 4
Detail is attached. These figures are net insurance recoveries but include reimbursement of deductibles and costs not covered by insurance.
C. Strategic Plan (Area of Focus)
Priority Area One: Economic Development & Financial Resilience
Priority Area Two: Public Safety
Priority Area Three: Infrastructure
Priority Area Five: Quality of Life
D. Fiscal Impact
Expenditures across all funds would increase $1,220,600. At this time, it would be offset by $530,531 in insurance proceeds and $1,000,000 in donations. However, we anticipate an estimated $2,994,653 in additional expenditures resulting in a net reduction of fund balance of $1,994,653 assuming no FEMA reimbursements.
E. Recommendation
I recommend the approval of $575,556 of emergency purchases detailed in table 1. I recommend approval of $1,220,600 of increased expenditures as detailed in table 2 and $562,361 in insurance proceeds revenue and $1,000,000 in donations.