HomeMy WebLinkAbout9 Church of the Mountains Property Damage ClaimAGENDA ITEM #9
TRUCKEE DONNER
Public Utility District
MEETING DATE: October 6, 2021
TO: Board of Directors
FROM: Michael Salmon, CFO
SUBJECT: Consideration for Approval of Property Damage Claim from Church
of the Mountains
APPROVED BY
Brian Wright, General Manager
RECOMMENDATION: Authorize the General Manager to reimburse Church of the
Mountains for property damages in an amount not to exceed $52,740.70; payment made
post -receipt of a signed standard waiver of any future liability regarding subject claim
incident, approved as to form by District Counsel.
DISCUSSION: On the morning of July 16, 2021 the District experienced a rupture in a 10"
diameter steel water pipeline located at the intersection of Church St. and School St. The
location of the water main rupture was in close proximity to Church of the Mountains
located at 10077 Church St. District water utility staff were notified shortly after the rupture
occurred and worked quickly to isolate the water pipelines. Unfortunately, the heavy water
flow created by the water pipeline rupture found a pathway into the interior (lower floor) of
the Church of the Mountains structure.
District staff and Town of Truckee public works crews were able to close down the
intersection, make the repairs to the ruptured pipeline, and re-establish water service to all
impacted customers before 12:00 noon.
Staff met with Church of the Mountains representatives to conduct an inspection of the
flooded lower floor of the structure. Preliminary findings were that due to the location of the
pipeline rupture, water flows took a direct path through the front entry of the church facility
and collected throughout the lower floor, causing water damage to existing carpets and
walls.
Church of the Mountains representatives were advised to call a flood restoration contractor
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to quickly mitigate further damage and to assist in moving furniture and equipment. Church
of the Mountains representatives indicated that the lower level of the church was primarily
utilized as a shelter and sustenance facility for local homeless community and would
require some temporary shelter for the displaced occupants. Staff coordinated with
vendors to provide temporary shelter and restroom facilities until the damage to the facility
could be appropriately assessed and repaired.
Following the damage assessment and repairs, the Church of the Mountains
representatives have submitted a claim for reimbursement for the following items.
Item
Description
Cost
1
Emergency Flood Restoration
$13,119.04
2
Damage Repairs (doors, walls, painting, flooring; materials and
installation
$31,856.10
3
Temporary Shelter and Restroom Rental
$ 5,265.56
Total Claim
$50,240.70
4
Add by TDPUD Contingency
$ 2,500.00
Total Claim including contingency
$52,740.70
Staff has reviewed the property damage claims and associated repair invoices for accuracy
and is recommending for the Board of Directors approve reimbursement.
GOALS AND OBJECTIVES:
2021-2024 Strategic Plan Goal#1: Manage for Financial Stability and Resiliency
1.05.030 Goals: 1. Responsibly serve the public. 1.1. Conduct the District's business in a
legal, ethical, open, and transparent manner.
1.05.020 Objectives: 1. Responsibly serve the public
FISCAL IMPACT:
This expenditure was not included in the Board approved FY2021 Electric and Water
Operating Budgets. The District does carry liability insurance for property damage of this
nature. The District's liability insurance carries a $25,000 deductible. Based on the
amount of the claim for damages as compared to the District's deductible and potential
impact on insurance rating, staff recommends water operating expense incur the full claim
cost, in lieu of an insurance claim for a portion of the amount. Water utility operating
expenses for the year 2021 were forecasted mid -year to be 2.6% under -budget, and
updated current forecast including this claim is for operating expenses to be under -budget
in the 1.5%-2.0% range for 2021.
ATTACHMENTS:
NONE
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