DEPARTMENT: Pre-K 4 SA
DEPARTMENT HEAD: Sarah Baray, Ph.D.
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
East Center Hail Damage Renovation Project
SUMMARY:
This item appropriates approximately $1,362,021 for the East Center Hail Damage Renovation Project, authorizes the acceptance of an insurance claim payment from Markel Insurance Company totaling approximately $1,249,561 for hail damages to the East Education Center, and a construction contract with Straight Line Management, LLC totaling approximately $1,249,561 for repairs to the air conditioning units, metal pergola, metal breezeway cover, and roof at the East Education Center. The remaining funds of approximately $112,461 is for Construction Project Management services provided by the City of San Antonio’s Transportation and Capital Improvements Department and funded by unencumbered funds remaining within the Pre-K 4 SA Education Center Expansion Project.
BACKGROUND INFORMATION:
During the week of April 18, 2016, hail damage was observed at the East, West, and North Education Centers. An insurance adjuster set reserve limits for the properties at $1.4 million, $2,000, and $10,000 respectively. No visible storm-related damage was observed at the South Education Center.
The East Education Center had the most significant amount of damage to the building and structures. The East Education Center roof, metal structure, and canopies were all severely damaged. The West and North Education Centers sustained minimal damage to the metal fascia located at the main entry and to the aluminum casing protecting the coolant lines to the roof mounted AC units, skylight, and roof vents, respectively.
Markel assigned insurance adjusters with Provencher Claims and MKA. The insurance adjusters and engineers visited the three properties during the weeks of May 23 and May 30, 2016 to provide estimated costs of repair. Pre-K 4 SA insurance broker McGriff, Seibels & Williams met with the adjusters at the East Education Center on June 29, 2016 to identify damaged areas and coordinate a review and scope of damages.
On August 5, 2016, Pre-K 4 SA staff along with insurance broker McGriff, Seibels & Williams met with Markel Insurance to discuss the insurance claims process. Markel Insurance explained that Pre-K staff would need to competitively bid-out the project based upon the architectural designs completed by Markel Insurance Company’s contracted architect Madsen, Kneppers and Associates.
On August 8, 2016, Pre-K staff met with the City’s Transportation and Capital Improvements Department (TCI) to discuss the scope, details, and technical expertise needed to both efficiently and effectively manage an East Education Center Hail Damage Renovation Project; during this meeting, it was determined to be beneficial to have TCI help manage the East Education Center Hail Damage Renovation Project due to the large and technical project scope. For TCI Construction Project Management services, Pre-K 4 SA will be charged a flat rate fee of 9% of the total project construction cost.
On September 21, 2016, Pre-K 4 SA and TCI staff released a competitive Invitation-for-Bids for the East Center Hail Damage Renovation Project. On Tuesday, October 25, 2016 the Invitation-for-Bids closed and resulted in two competitive bids; of which, one bid was deemed nonresponsive due to the company not being certified in the requested scope of work.
On November 11, 2016, Pre-K staff and Markel Insurance Company agreed upon an insurance claim of approximately $1,249,561 for hail damages to the East Education Center.
ISSUE:
This item appropriates approximately $1,362,021 for the East Center Hail Damage Renovation Project, authorizes the acceptance of an insurance claim payment from Markel Insurance Company totaling approximately $1,249,561 for hail damages to the East Education Center and awards a construction contract with Straight Line Management, LLC totaling approximately $1,249,561 for repairs to the air conditioning units, metal pergola, metal breezeway cover, and roof at the East Education Center as well as a payment to TCI for approximately $112,461 for Construction Project Management services.
Hail damage renovations are scheduled to occur in two phases. Phase one includes repairs to the AC units, metal pergolas, and metal breezeway cover and is scheduled to commence during the winter break December 17, 2016 - January 1, 2017. Phase two includes the replacement of the roof. Phase two is scheduled to commence while school is not in session during Summer 2017.
ALTERNATIVES:
The Board can choose to not approve the contract; however, this would substantially delay the project.
FISCAL IMPACT:
Approval of this item will appropriate approximately $1,362,021 with the City’s Capital Project Fund. Funding is provided by the acceptance of the insurance claim payment from Markel Insurance Company for approximately $1,249,561 as well as approximately $112,461 budgeted and available in the Pre-K 4 SA Education Center Expansion Project as approved by the Corporation’s Board of Directors.
RECOMMENDATION:
Staff recommends the Board appropriate approximately $1,362,021 for the East Center Hail Damage Renovation Project, approve for Pre-K 4 SA to accept an insurance claim payment from Markel Insurance Company for approximately $1,249,561 for hail damages to the East Education Center, to award a construction contract with Straight Line Management, LLC in the amount of $1,249,561 for repairs to the air conditioning units, metal pergola, metal breezeway cover, and roof at the East Education Center, and award TCI payment in the amount of approximately $112,461 for Construction Project Management services.