The Arizona City Council Committee on Ways and Means on June 2 voted to forward to the full council an order to appropriate $216,664 from the insurance recovery fund to cover initial costs tied to water damage at the Vine Street School administration building.

City Solicitor Colleen Mejia told the committee the city has already deposited insurance checks and that one installment corresponds to an invoice for cleanup services by Servpro. “We’ve already received two checks that we deposited,” Mejia said. “I believe this first installment is for an invoice that the school department received, to pay Servpro.”

The committee’s approval sends the appropriation to the full council for final action. The request drew follow-up questions from council members about where the funds live and how they move between city and school accounts. Mejia said insurance proceeds are deposited to a city insurance revenue account and payments for claims — whether on the city or school side — are made from that account.

Mejia described the damage as extensive: “I think 30% of the building is uninhabitable at the moment. They had to rip up the floors,” she said, and staff will need to hire an architect to prepare specifications and put repairs out to bid. She said the insurer’s figure is an initial appraisal and that costs may exceed that amount. On amounts discussed at the meeting, Mejia referenced checks and estimates including a deposit for about $247,873 and a separate estimate of $102,532 with an initial check of $69,340.87.

Council members pressed for clearer backup documentation. The chair asked staff to include the Servpro invoice and related emails in the next meeting packet so members can see what the appropriation covers. Mejia also warned that most construction costs will require payment of prevailing wages and that repair and bidding processes — including architecture, specifications and procurement — could mean the school remains displaced and leasing temporary office space for close to a year.

Discussion items the committee flagged for follow-up included: the detailed invoices supporting the appropriation; whether the city should engage a public adjuster or independent appraisal (Mejia said staff had debated that but had concerns about the additional cost); and whether additional appropriations would be required if final costs exceed the insurer’s initial appraisal.

The committee approved favorable action to the full council by voice vote. Members asked staff to provide the Servpro invoice and a clearer accounting of the checks and estimated costs in the next packet.