City council will look at making sure the city is financially protected from natural disasters.
Council is due to consider Tuesday the first reading of an ordinance that would let city officials increase its existing insurance coverage for revenues that would be lost if the city were hit by a large tornado or other natural disaster.
“If something like that were to happen and take out a major area, then it would supplement the city for the loss of sales tax and other revenues,” said Mayor Philip Craighead. “A lot of cities are doing this now.”
According to Robert Springer, the city’s commissioner of finance and revenues, the city’s exposure for revenue losses from potential losses of net utility annual sales is almost $4.4 million, while the city is only covered for up to $500,000.
If the city’s 18 largest gas customers were not able to buy gas – such as if they were damaged by a tornado – the city could lose more than $1.6 million. The city is only covered for up to $250,000.
The city, however, has received a quote of $4,678 to increase coverage on both policies to $4.3 million and $1.6 million, respectively.
“It’s cheaper and better and wiser to put a policy in place to take care of that if that issue were to arise,” said Craighead.
Also during Tuesday’s meeting, council will consider entering into an agreement with the Tennessee Department of Transportation to install a traffic signal at Bluebird Road and East Baddour Parkway.
“It’s so hard getting out with those extra lanes right now,” said Craighead. “We put it out to a safety survey by the state, and they found that it would qualify in the safety needs, so we’re getting this project done at 100 percent through safety dollars from TDOT.”
In other business, council is due to consider the following items:
• Incorporating the new $10,000 purchasing limit into the accounting policies and procedures manual.
• Approving a contract with Nashville and Eastern Railroad Corporation for flood mitigation and drainage improvements.
• Buying fireworks for various city-sponsored events, including the July 4 celebration, CABA World Series and Veterans Day.
• Approving a new City of Lebanon logo.
• Approving bids for the resurfacing, restoration and rehabilitation improvements of various roads in Lebanon.
• Entering into an agreement for construction engineering inspection for resurfacing, restoration and rehabilitation improvements of various city roads.
• Approving a 2014 natural gas leak survey.
• Approving AMEC Environment & Infrastructure, Inc. for engineering services for a flood study at the wastewater treatment plant.
• Applying for a State Industrial Access grant for the construction of an industrial access road to serve the expansion of L & W Engineering Company, located at 712 Briskin Lane.
Lebanon City Council will meet Tuesday at 6 p.m. at the Town Meeting Hall, located at 200 N. Castle Heights Ave.