SCOTTSDALE, Ariz. — From the June floods wreaking havoc on rivercities in Iowa to the devastation brought by Hurricane Ike onGalveston, Texas, and the entire southeast Texas coast, 2008 willgo down as the year the people helping people mission weathered oneof its most severe tests.
“Hurricane Ike may have destroyed whole communities in southeastTexas, but the commitment of credit union employees and therebuilding of facilities shows we never wavered in servingmembers,” commented Richard Ensweiler, president/CEO of the TexasCredit Union League in a look-back on CU recovery steps followingIke.
CUNA Mutual Group in Madison, Wis., estimated total CU damage fromIke topped $10.2 million, which while significant was still dwarfedby the $22 million in insurance claims from Hurricane Katrina in2005.
Still, lessons should now be learned by CU managers in upgradingdisaster preparation planning as too many relied heavily uponvendors, other CUs or state leagues to restore service, maintainedMichael Retelle, manager of CMG's property and casualty claimsunit.
Complacency still reigns, warned Retelle. “Now is the time, notwhen the next storm hits, to ensure disaster planning has beentaken care of.”
Both in Iowa and in Texas, there were countless tales of CUmanagers and employees overcoming personal danger to rescue memberswho found themselves stranded in Cedar Rapids flood waters ordisplaced from destroyed Bridge City, Texas, homes.
“Let me tell you. We managed to continue serving our members, thebrave firemen and police of Galveston because of some fantasticemployees of mine who, while the city was shut down, stayedovernight in an emergency shelter in the San Luis Hotel,” recalledCarol Purdy, CEO of the $35 million Coastal Community CU ofGalveston. She also described the transportation of emergency cashshipments and makeshift satellite operations.
“I also ended up running this credit union from my dining roomtable,” said Purdy, who like other CEOs of Texas coast CUs arestill struggling to restore full service in branches; some continueto operate out of vans and trailers on CU parking lots.
In Cedar Rapids, Iowa, Richard Benhart, the president/CEO of the58,000-member Collins Community CU said damage to CU property wasnever a major issue. However, he remarked, “The personal tragedy toemployees and members who lost homes and their livelihoods has beenoverwhelming,” which led the CU to continue offering freecounseling and mental health services.
Without faulting both federal and state agencies entirely, Benhartsaid “the frustrations are tremendous” for people trying to dealwith the complex bureaucracy at FEMA or state insurance claims.“This has taken a huge toll on our employees, and they haveperformed in extraordinary fashion,” said Benhart.
In each situation, the Iowa and Texas credit union foundationsdistributed emergency grants to a wide spectrum ofrecipients.
The Texas foundation said it dispensed 968 emergency grantstotaling almost $467,000, while the Iowa foundation distributedmore than $553,000 for flood and tornado victims in thatstate.
As part of holiday help for victims, the Texas league said it hasreceived commitments from CUs in the state to adopt 18 familiesfrom coastal areas that were displaced by the storm.
“There are just incredible people, so selfless,” said a leaguespokesperson. “It's wonderful to know that there are so manycompassionate people serving in the credit union community that areso willing to help out our families who have gone through somuch.”
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