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Clayton adopts modernized damage reimbursement policy to standardize cost recovery
Summary
Council approved Resolution 2025-129 to update the town’s damage reimbursement policy with FEMA equipment rates, a 130% labor multiplier, materials billed at actual cost plus 10% handling, and a mobilization fee of 10% of total cost; staff reported about $75,000 recovered and $155,000 outstanding.
The Town of Clayton adopted Resolution 2025-129 on Dec. 11 to modernize its damage reimbursement policy, updating billing, notification and recovery procedures that were last revised in 1998.
Operations Manager Travis Jessup said the update aligns equipment charges with FEMA equipment rates, sets labor charges at 130% of actual hourly cost (including wages, benefits and overhead), changes material billing from a flat 20% to actual cost plus 10% handling, and converts the mobilization fee from a $500 flat rate to 10% of the total cost. Notification requirements will now include a written notice within 30 days of a utility strike, and invoicing procedures will provide a standardized package across departments. Jessup said contractor-performed repairs are addressed in the new policy and governance language will allow the town manager or designee to modify the policy as needed.
Jessup also reported the town had recovered approximately $75,000 to date and was pursuing roughly $155,000 outstanding in damage-reimbursement claims related in part to recent fiber installations.
A council member moved to adopt Resolution 2025-129 and the council approved it by voice vote.
