CITY OF UMATILLA AGENDA ITEM STAFF REPORT

Transcription

1 CITY OF UMATILLA AGENDA ITEM STAFF REPORT DATE: June 26, 2014 MEETING DATE: June 30, 2014 SUBJECT: ISSUE: City Hall Interior Repair Direction to Staff BACKGROUND SUMMARY: During March and April 2014 the city received a great deal of rain at the same time the roof of city hall was being replaced. The contractor believed it necessary to open the roof in places to visually see load bearing points to which the new truss system would attach. Said openings allowed rainwater to enter the building damaging ceiling tile, insulation, paint, carpet and possibly electrical wiring. Although city crews continually mopped up water every time it rained and the air conditioner was left on at very low temperatures, mold and mildew are now present in the south side of the building. On May 2, 2014 staff issued a letter to the contractor giving him notice that the contract between his company and the city holds them responsible for damages caused by construction. A copy of this letter follows for your review. While the contractor apparently accepts responsibility [see following letter/ from the contractor], they have done nothing to remediate damage. They were able to finally stop the leaking. Staff is concerned that when the contractor begins work on the northern part of the building he will again open the roof to elements and thus cause more interior damage that will result in necessary remediation. Furthermore, the north end of the building houses documents and records that cannot be replaced as well as very expensive computer equipment that rainwater will ruin. Staff believes the solution is to cause remediation of the south end of the building s interior and temporarily relocate the daily operations of city hall there. To that end, following for your review are two quotes for interior renovation. The first would return the room to its previous condition prior to rainwater damage. The second would completely remodel the room to include furring, insulating and sheet rocking the walls, rerouting and relocating the air vents, carpeting the entire room and replacing the current window treatments. Of course, the latter is more expensive. On the morning of the date of this meeting, City Attorney Kevin Stone and City Manager Glenn 1 U:\2014 AG AND MINS\06 JUNE\06.30 SPECIAL MEETING\ Direction Repair Interior City Hall.doc

2 Irby plan to travel to Ocala to meet with the contractor and his attorney. Staff attempted to hold this meeting in Umatilla, but the best counter offer from the contractor was to have a phone conference because he cannot afford to pay his attorney to come to Umatilla. The purpose of this meeting is an attempt to determine what if anything the contractor intends to do to remediate the damage caused. Meeting with the contractor on this date is believed to be timely since we will be able to report the outcome at this special meeting. It is important to note the contractor s liability insurance carrier was notified by city staff and on April 4, 2014 an adjuster met and reviewed the damage. He indicated that there should not be a problem with the company paying for all damage and costs of remediation done to date. However, subsequent efforts to contact the adjuster have failed, but staff does know the insurance company has told the contractor what it is willing to pay and the contractor is apparently balking. At this point it is unknown whether the contractor believes the amount is too high or too low. Hopefully this will be a part of what is determined during the morning meeting on June 30, STAFF RECOMMENDATIONS: This special meeting has been called to discuss options available to the city and for the Council to give direction to staff on how it wishes to proceed. The city recently closed on a line of credit that can be used to remediate the damaged area and go beyond this and remodel the room for both aesthetics and much improved acoustics. FISCAL IMPACTS: To be determined. COUNCIL ACTION: Reviewed by City Attorney Yes No N/A Reviewed by City Engineer Yes No N/A 2 U:\2014 AG AND MINS\06 JUNE\06.30 SPECIAL MEETING\ Direction Repair Interior City Hall.doc

3 To: City of Umatilla Dear Mr. Irby and Staff, Southway Building Corporation 3225 NE 14 th Street, Ocala, FL Office Number: (352) Fax Number: (352) Licensed General Contractor CGC / Licensed Roofing Contractor CCC Serving Florida Since 1985 Glenn I am truly sorry for any inconvenience and or damage the weather has caused in the recent horrific rains storms and wind. Please be assured that any damage to your building caused by Southway Building Corporation will be corrected or repaired. I take full responsibility for any damage caused by Southway Building Corporation. Glenn I am and will continue to work on protecting your building while we complete this project. Please except my apology for any inconvenience. Truly and Sincerely Peter Zarcone and the SBC Staff

4 March 19, 2014 Sent via Certified Mail Southway Building Corporation Attn: Mr. Peter Zarcone 3225 NE 14 th Street Ocala, Florida Re: Owner: City of Umatilla, Florida Contract Date: November 22, 2013 Project: City of Umatilla Building Improvements City Hall (the Project ) Bond #: Mr. Zarcone: This letter is being sent to you in regards to the above-referenced project in my capacity as City Manager of the City of Umatilla. As you are aware, Southway Building Corporation ( Southway ) is currently engaged as the contractor for the Project. Southway has neglected to carry out the Work, as defined in the Contract, in accordance with the Contract Documents. Further, Southway is, pursuant to Section 14 of the Contract, responsible for promptly remedying any damage and loss to property caused in whole or in part by the contractor. Southway has caused significant damage to the City Hall building and personal property located within the building as set forth in more detail on the attached Exhibit A, incorporated herein by reference. Pursuant to Section 8.3 of the Contract, if Southway has failed within a seven day period after receipt of this letter to commence and continue correction of the damage referenced herein with diligence and promptness, please be aware that the City may, without prejudice to other remedies, correct such deficiencies. In the event the City does so, the Contract Sum as provided in the Contract shall be adjusted to deduct the full cost of correction from any payments that may be due to you. If you should have any questions, please do not hesitate to contact me. Sincerely, Glenn A. Irby City Manager cc: American Safety Casualty Insurance Company PO Box S Central Ave. Umatilla, FL Fax

5 March 19, 2014 Sent via Certified Mail Southway Building Corporation Attn: Mr. Peter Zarcone 3225 NE 14 th Street Ocala, Florida Dear Mr. Zarcone: Damage to the interior and partial contents of City Hall from work done by your company on the existing roof has caused me to contact our insurance company, Public Risk Management of Florida. In turn, they have instructed me to inform you that you must contact your own insurance company and have them come to city hall and view the damage you are ultimately responsible to remedy. Accordingly, should you choose to do otherwise and the city s carrier pays for repair, replacement or cleaning of the interior or contents, our carrier will look to subrogate with yours. I urge you to make this contact with your carrier and have them view the damage within seven business days of receipt of this letter. An appointment with a city representative to escort them will be necessary. Please let me know of questions you may have regarding this issue. Sincerely, Glenn A. Irby City Manager C: Katrina Stone, Esquire American Safety Casualty Insurance Company PO Box S Central Ave. Umatilla, FL Fax

6 CITY OF UMATILLA "NATURE S HOMETOWN" May 2, 2014 Mr. Pete Zarcone Southway Building Corporation 3225 NE 14th Street Ocala, FL RE: Reroof of Umatilla City Hall, 1 South Central Avenue, Umatilla, FL Dear Mr. Zarcone: As you know, the southern part of City Hall has been reroofed and this portion of the building has seen exterior stucco applied. You are also aware that during construction the building s interior was open to the elements and is currently damaged beyond use. There is the presence of mold, mildew and asbestos that must be dealt with. It is our intention to relocate City Hall s operations to the remodeled area as soon as practical. The following is a proposal to you to make this move possibly faster. According to the contract between Southway Building Corporation and the City of Umatilla, your company is responsible for repair of any damage created by reroofing the building. I believe we both agree that a substantial portion of the damage caused is a direct result of your company s effort to reroof this area. You have indicated verbally that you accept responsibility and will make necessary repairs. We are willing to accept this offer; however, the mold, mildew and asbestos remediation/removal must be accomplished first. It is my understanding that remediation is a three-step process involving a minimum of two separate companies. The first company must identify the areas affected and offer suggestions on how to remediate. The second company must be engaged to perform the actual remediation. All companies must be certified and licensed by the State of Florida. The city has contracted with a company to seek out and detect affected areas and they have submitted a report with recommendations. We are now in the process of taking quotes from approved companies to perform the remediation. The third and final step is for the original company to reenter the building after remediation to sample air quality and ensure the affected areas have been properly remediated. There is a waiting period of a few days between remediation and final air quality testing. As a government, we have a fiduciary responsibility to our taxpayers to ensure the best and lowest cost when having work performed. This includes remediation companies. However, if your company would like to assume the responsibility of selecting, hiring and overseeing the work of remediation, we will gladly submit all reports of findings. We will also supply you with remediation company contact information that have viewed the areas affected and submitted quotes to do the work. This is a slow process for a government and you may be able to accomplish this sooner as a private entity. Once remediation and necessary repairs are complete, it is my belief that operations of city hall can be relocated in no more than two days. You must understand that we also will need to hire an electrician to install additional wiring and plugs for electronics. We will need to move the phone system and computers as P.O. Box S. Central Ave. Umatilla, FL (352) fax (352)

7 Southway Builders Remediation Offer May 2, 2014 Page 2 of 2 well. These steps must be accomplished prior to a move. This time is not included in the estimated two day move. In closing, I want to make you aware that Southway s liability insurance company sent an adjuster to review the damage and needs on April 4, I am not sure where this claim is in process and I did not receive a claim number. The adjuster has had no further contact with the city. It may be in your best interest to contact your insurance agent and inquire as to what they are willing to offer because any payment will be used to offset costs incurred for mitigation and repair. Please understand that this situation is becoming unbearable for staff but all are willing to continue working knowing that the outcome will be a very nice looking City Hall. However, this morning a new leak occurred in a main supply closet in the operational section of City Hall. It goes without saying this is the only location we have to conduct business and it will be disastrous should we have to abandon this area. I look forward to your response. Sincerely, Glenn A. Irby City Manager C: Katrina Stone, Esq. Kevin Stone, Esq. Mayor and Council Members

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10 1 Totura and Company PO BOX 9117 Ft. Lauderdale, Fl Richard Taylor Insured: SOUTHWAY BUILDING CORP. Business: (352) Property: 1 South Central Ave. Umatilla, FL Claim Rep.: RICHARD TAYLOR Cellular: (407) Position: Business: (407) Company: TOTURA and COMPANY rtaylor@totura.com Claimant: City of Umatilla Business: (352) Business: 1 South Central Ave. Umitilla, FL Estimator: Position: Company: RICHARD TAYLOR TOTURA and COMPANY Cellular: (407) rtaylor@totura.com Reference: Marc Lowy Business: (201) Company: Arch Insurance Group - NJ mlowy@archinsurance.com Business: 300 Plaza 3 3rd Floor Jersey City, NJ Claim Number: Policy Number: AGL Type of Loss: Other Date Contacted: 4/3/2014 Date of Loss: 3/19/2014 Date Received: 4/3/2014 Date Inspected: 4/4/2014 Date Entered: 4/9/2014 8:15 PM Price List: Estimate: FLLE7X5MAR14 Restoration/Service/Remodel SOUTHWAY-BUILDING Notice: This is a repair estimate only. The insurance policy may contain provisions that will reduce any payments that might be made. This is not an authorization to repair. Authorization to repair or guarantee of payment must come from the owner of the property. No adjuster or appraiser has the authority to authorize repair or guarantee payment.

11 2 Totura and Company PO BOX 9117 Ft. Lauderdale, Fl Richard Taylor SOUTHWAY-BUILDING Main Level Hallway Height: 8' SF Walls SF Walls & Ceiling SY Flooring LF Ceil. Perimeter SF Ceiling SF Floor LF Floor Perimeter DESCRIPTION QUANTITY UNIT COST RCV DEPREC. ACV R&R Acoustic ceiling tile SF , <380.29> 1, R&R Blown-in insulation - 6" depth SF <76.06> R13 Detach & Reset Light fixture EA <0.00> Standard grade Exit sign - Detach & reset 1.00 EA <0.00> Drywall/PLASTER Repair - Minimum 1.00 EA <0.00> Charge - Labor and Material FOR BOTH ROOMS AS NEEDED* Clean suspended ceiling grid SF <0.00> Prime & paint DUCT WORK 1.00 EA <20.72> CASEMENT* Clean ductwork - Interior - Heavy 1.00 EA <60.25> clean HALLWAY* DOUBLE DOOR Repair - Min EA <0.00> Charge - Labor and Material* INCLUDES STRIP. SEAL AND PAINT TO MATCH TWO DOORS TO ASSEMBLY AREA Totals: Hallway 3, , ASSEMBLY ROOM Height: 8' SF Walls SF Walls & Ceiling SY Flooring LF Ceil. Perimeter SF Ceiling SF Floor LF Floor Perimeter DESCRIPTION QUANTITY UNIT COST RCV DEPREC. ACV SOUTHWAY-BUILDING 5/14/2014 Page: 2

12 3 Totura and Company PO BOX 9117 Ft. Lauderdale, Fl Richard Taylor CONTINUED - ASSEMBLY ROOM DESCRIPTION QUANTITY UNIT COST RCV DEPREC. ACV R&R Acoustic ceiling tile SF , <275.43> 1, R&R Blown-in insulation - 6" depth SF <55.08> R13 Prime & paint DUCT WORK 1.00 EA <70.72> CASEMENT* Clean ductwork - Interior - Heavy 1.00 EA <110.25> clean HALLWAY* Totals: ASSEMBLY ROOM 2, , STAGE Height: 8' SF Walls SF Walls & Ceiling SY Flooring LF Ceil. Perimeter SF Ceiling SF Floor LF Floor Perimeter DESCRIPTION QUANTITY UNIT COST RCV DEPREC. ACV R&R Carpet pad SF <19.57> Remove Carpet - Standard grade SF <0.00> Carpet - Standard grade SF <86.33> % waste added for Carpet - Standard grade. NO DAMAGES TO THE WOOD STAGE ACTUAL Totals: STAGE SOUTHWAY-BUILDING 5/14/2014 Page: 3

13 4 Totura and Company PO BOX 9117 Ft. Lauderdale, Fl Richard Taylor LADIES ROOM Height: 8' SF Walls SF Walls & Ceiling SY Flooring LF Ceil. Perimeter SF Ceiling SF Floor LF Floor Perimeter DESCRIPTION QUANTITY UNIT COST RCV DEPREC. ACV R&R 1/2" drywall - hung, taped, ready SF <30.52> for texture Texture drywall - machine SF <6.89> Paint the walls and ceiling - two coats SF <68.00> Mask or cover per square foot SF <0.00> Mask and prep for paint - paper and LF <0.00> tape (per LF) Totals: LADIES ROOM MITIGATION DESCRIPTION QUANTITY UNIT COST RCV DEPREC. ACV Dehumidifier (per 24 hour period) EA <0.00> XLarge - No monitoring Air mover (per 24 hour period) - No EA <0.00> monitoring Clean chair - Heavy clean EA 2, , <0.00> 2, CHAIRS- DECONTAMINATION/WATER REMOVAL* Clean table cloth - Full service 3.00 EA <0.00> Cleaning Technician - incl. cleaning 1.00 EA <0.00> MATERIALS* Contents Cleaning Technician - per HR <0.00> hour- EMPLOYEE* Totals: MITIGATION 5, , Total: Main Level 12, , , SOUTHWAY-BUILDING 5/14/2014 Page: 4

14 5 Totura and Company PO BOX 9117 Ft. Lauderdale, Fl Richard Taylor GENERAL ITEMS DESCRIPTION QUANTITY UNIT COST RCV DEPREC. ACV Megohmmeter check electrical circuits EA <0.00> average COMMERICAL BUILDING* Dumpster load - Approx. 12 yards, EA <0.00> tons of debris Totals: GENERAL ITEMS Line Item Totals: SOUTHWAY-BUILDING 13, , , Grand Total Areas: 3, SF Walls 2, SF Ceiling 6, SF Walls and Ceiling 2, SF Floor SY Flooring LF Floor Perimeter 0.00 SF Long Wall 0.00 SF Short Wall LF Ceil. Perimeter 2, Floor Area 3, Total Area 3, Interior Wall Area 2, Exterior Wall Area Exterior Perimeter of Walls 0.00 Surface Area 0.00 Number of Squares 0.00 Total Perimeter Length 0.00 Total Ridge Length 0.00 Total Hip Length SOUTHWAY-BUILDING 5/14/2014 Page: 5

15 6 Totura and Company PO BOX 9117 Ft. Lauderdale, Fl Richard Taylor Summary for OTHER LIABILITY Line Item Total 13, % % Replacement Cost Value $14, Less Non-recoverable Depreciation <1,260.11> Actual Cash Value $13, Net Claim $13, RICHARD TAYLOR SOUTHWAY-BUILDING 5/14/2014 Page: 6