Title
Resolution to Amend the Fiscal Year 2020 Council Approved Budget and Appropriate $1,315,283 from the Risk Management Fund Unrestricted Net Position to Fund the Cost of Repairs to the James T. Wilson Fishing Pier and House and Observation Pier
Purpose
PURPOSE/BACKGROUND:
A barge, owned by Coastal Design & Construction, Inc., struck the James T. Wilson Fishing Pier and the Buckroe Beach Observation Pier on November 17, 2019, causing considerable damage to the Wilson Fishing Pier and House (“Fishing Pier”) and the loss of one piling to the Observation Pier (“Pier 1”).
In order to expedite the emergency repair process of these two piers, Risk Management accepted the responsibility for funding the emergency repairs from the Risk Management Operating Fund. This is an unplanned expenditure for the Risk Management Fund and will require a transfer of funds from the Risk Management Fund Unrestricted Net Position to the Risk Management Operating Budget. The current estimate of repairs and other related expenses is $1,315,283. Proceeds from settlement of the claim with the barge owner’s insurance company will be used to replenish the Risk Management Fund Unrestricted Net Position.
The considerable damage to the Fishing Pier and Pier 1 pose a serious threat of irreparable harm to persons and/or property if not repaired in an expeditious manner. The anticipated start of the summer swimming season as well as the start of the hurricane season in the coming months create a condition in which the current state of significant disrepair could cause injury to persons and/or property. Furtherance of this project is vital to ensure the health and safety of citizens who frequent the beach area and live within in its proximity.
Discussion:
The Risk Management Fund (the “Fund”) was established to manage and account for various insured and uninsured risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to empl...
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