On September 15, 2017, Ladder 4 was damaged after completing a call for service, the under-carriage made contact with the concrete because of an incline at the exit point of the commercial parking lot. The impact caused extensive damage to the under-carriage, structural braces, ladder mounts, in addition to damage to other body components. The extent of the damages required Ladder 4 to be transported to the manufacturer, Spartan Motors, in South Dakota.

A repair estimate was received on Friday, December 1, 2017, from Spartan Motors in the amount of $126,760.00. The City insures all of its fleet with Texas Municipal League Intergovernmental Risk Pool (TMLIRP). TMLIRP approved the repairs and issued a check to the City in the amount of $125,760.00 (estimated costs less the City’s $1,000 deductible) which was received by the City on December 11, 2017. The funds were deposited in the Insurance Revenue Account for the purpose of funding the contracted repair costs. The Insurance Expenditure Account is funded annually through the budget process based on historic activity and large claims such as this sometimes occur requiring an appropriation of funds and the recognition of revenue from the insurance carrier.

Staff recommends the City Council approve a budget amendment appropriating $125,760.00 to the General Fund’s Insurance Revenue Account and appropriating a budget increase to the General Fund’s Insurance Expenditure Account, and authorize the contract with Spartan Motors in the amount of $126,760.00 for the repairs to Ladder 4.