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CHANGE ORDER NO. ONE TO CONTRACT K-1718-107: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND PHOENIX CONSTRUCTION SERVICES INCREASING THE CONTRACT AMOUNT BY $10,563.48 FOR A REVISED CONTRACT AMOUNT OF $90,649.50 FOR REPAIRS TO THE PARK MAINTENANCE BUILDING DAMAGED BY FIRE; FINAL ACCEPTANCE OF THE PROJECT AND BUDGET APPROPRIATION FROM THE RISK MANAGEMENT FUND BALANCE.
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BACKGROUND: In the early morning hours of November 27, 2017, the City experienced a fire at the main Griffin Park maintenance building. The Norman Fire Department was called and they extinguished the fire quickly. The fire did extensive damage to the facility as well as destroying most of the contents within the building.
Bid 1718-37 for repairs to the building was awarded by City Council on February 13, 2018 to Phoenix Constriction in the amount of $80,086.02. On March 13, 2018 the City Council appropriated General Fund balance to provide advanced funding to pay for these repairs, in advance of the receipt of insurance proceeds.
The damaged building includes wood shelving that needs replacing due to smoke damage. Also, Parks staff maintained files in the building that received smoke damage and are in need of cleaning.
The City buys insurance to cover building and contents losses from FM Global.
DISCUSSION: Phoenix Construction discovered additional damage to roof panels that was not included in the original bid. Change Order #1 is proposed in the amount of $10,563.48 to repair these panels and clean the damaged files. An appropriation of this amount is requested from the Risk Management Fund balance (account 043-0000-253.20-00).
Phoenix Construction can also clean files that have been damaged from smoke for a cost of $5,230.00. An appropriation of this amount is requested from the Risk Management Fund balance (account 043-0000-253.20-00).
Parks staff requests to replace the wooden shelving at a cost of $3,000. An appropriation of this amount is requested from the Risk Management Fund balance (account 043-0000-253.20-00).
The City’s insurance policy with FM Global includes deductibles in varying amounts for different types of losses. For fire damage, the City’s deductible is $10,000. FM Global delivered a check to the City in the amount of $147,552.02 on April 11, 2018.
RECOMMENDATION NO. 1: Staff recommends approval of Change Order #1 to Contract K-1718-107 in the amount of $10,563.48 to repair the additional roof damage and clean the damaged files.
RECOMMENDATION NO. 2: Staff also recommends an appropriation of $18,794 ($10,564 for Change Order #1, $5,230 for file cleaning and $3,000 for shelving replacement) from Risk Management Fund Balance (043-0000-253.20-00) to Risk Management Fund, Uninsured Losses (account 043-3004-415.47-98).
RECOMMENDATION NO. 3: Staff also recommends acceptance of $147,552.02 from FM Global representing insurance proceeds and deposit into General Fund Insurance Reimbursement (010-0000-367.12-42) as the General Fund up-fronted the repair costs initially to expedite repair to the facility before receipt of any insurance proceeds.
RECOMMENDATION NO. 4: Staff also recommends final payment of $15,793.48 to Phoenix Construction and acceptance of the project as complete.