title
Request for a Level Three fund transfer for $205,000 to cover repairs for a fire truck involved in an accident and recognize insurance revenue proceeds.
body
Submitted by:
John Ruggini
Department:
Finance Director
A. Issue
A ladder truck was involved in a traffic accident and incurred significant damage. A fund transfer is required to increase the repair account and recognize insurance proceeds.
B. Background/Options
On November 25, a City of Wauwatosa Ladder Truck was driving north on Mayfair Road with its lights and sirens activated when a car pulled out in front causing an accident. All four Firefighters were uninjured and able to provide emergency medical services to the driver of the car. The ladder truck incurred significant damages estimated at $162,000 in addition to approximately $2,500 in towing charges. The City's automobile insurance, through Cities and Villages Insurance Mutual Company, will cover the damage on a reimbursement basis less a $25,000 deductible. They will pursue subrogation with the driver at fault and if successful the City would also have it's deductible reimbursed. However, in the meantime, a fund transfer is needed to increase the equipment repair budget and recognize the insurance proceeds revenue. In addition, the repair account is already over budget by $31,989 in part due to outsourcing repairs while the mechanic position was vacant.
C. Strategic Plan (Area of Focus)
Priority Area Two: Public Safety
D. Fiscal Impact
Depending on whether or not we are successful in recovering our deductible, reserves could be reduced by $65,000 through the use of contingency funds.
E. Recommendation
I recommend a level three fund transfer be approved increasing the Fire Departments equipment repair account by $165,000 for the repair and towing of the ladder track and $40,000 for other overages. This is offset by increasing insurance proceeds by $140,000. The $65,000 remaining is recommended to come from conti...
Click here for full text