Title
Resolution to Approve a Construction Agreement with A. Z. SHMINA, INC. for Fire Station 1 - Flood Restoration ($210,835.00) and Appropriate Funding (8 Votes Required)
Memorandum
On August 28, 2024, the second floor of Fire Station 1 suffered significant water damage due to a roof leak during heavy rainfall. This incident occurred while a new roof was being installed, and we believe contractor negligence is responsible for the damage. The City Attorney's Office is currently working with Hylant and Chubb Insurance on subrogation against the contractor.
The repairs outlined in this construction agreement have been approved by and already paid for by Chubb, the City’s insurance provider. The damaged area was renovated in 2022 as part of an RFP process. Given this recent renovation, we are requesting that this repair contract be awarded to AZ Shmina on a "best source" basis. AZ Shmina was the contractor awarded the 2022 renovation project, will be the most conversant to make the repairs allowing operations to resume quicker, and we were very satisfied with their work.
The attached quote from AZ Shmina is listed as $234,875.00. Chubb did not pro-actively cover the $20,000.00 contingency nor $4,040.00 for plumbing repair of a drainpipe, and these items are excluded from the project scope. Thus, the requested amount is $210,835.00. We do have the ability to go back to Chubb and request coverage of items not previously approved.
We are requesting a ten (10) percent contingency as part of this project.
Budget/Fiscal Impact: The funding for this repair will be a reimbursement from insurance in the amount of $130,882. The additional funding needed of $103,993 is requested to be appropriated from the General Fund fund balance for this project.
Staff
Prepared by: Chantel Jackson, Safety Services Administrative Manager
Reviewed by: Mike Kennedy, Fire Chief
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, Fire Station 1 suffered significant water damage due to a roof leak during heavy rainfall on August 28, 2024;
Whereas, Chubb, the City’s insurance provider, has approved and paid for necessary repairs as outlined in the Construction Agreement; and,
Whereas, We request this construction agreement be awarded on a best source basis due to AZ Shmina’s recent award of RFP #22-16 that renovated the areas now in need of repairs, their knowledge of the space and quality of work performed during the recent renovation;
RESOLVED, That City Council approves a Construction Agreement with A. Z. SHMINA, INC. in the amount of $210,835.00 on a best source basis;
RESOLVED, That City Council approves a contingency of $21,084.00 to fund additional services under this agreement at the discretion of the City Administrator, who is authorized to execute change orders or amendments for this purpose;
RESOLVED, That City Council appropriates $130,882.00 to the FY 2025 Fire Department General Fund expenditure budget with the source of revenue being the insurance payment for the loss;
RESOLVED, That City Council appropriates $103,993.00 to the FY 2025 Fire Department General Fund expenditure budget from the General Fund fund balance;
RESOLVED, That City Council appropriates $21,084.00 to the FY 2025 Fire Department General Fund expenditure budget from the General Fund fund balance as contingency for this project, subject to City Administrator approval;
RESOLVED, That the Mayor and City Clerk are authorized to sign the agreement after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
Resolved, That the City Administrator is authorized to take all appropriate actions to implement this resolution, including signing all necessary documents and sub-agreements.