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y1il is1I1:C*71Ai'i144if1Crls7_ 1111 A <br />MARCH 15, 2016 <br />TITLE: <br />PAYMENT AUTHORIZATION TO <br />AMERICAL CONSTRUCTION <br />MANAGEMENT GROUP FOR <br />TERMITE DAMAGE REPAIRS <br />(SPEC. NO. 16 -028) <br />(STRATE � P 6,2) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERIC OF COUNCIL USE ONLY: <br />Iu]];m c <br />❑ As Recommended <br />❑ As Amended <br />El Ordinance on 1e' Reading <br />❑ Ordinance on 2nd Reading <br />M Implementing Resolution <br />® Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize payment to Americal Construction Management Group in the amount of $12,190 for <br />repairs to remediate termite damage to the log cabin at Santiago Park, subject to nonsubstantive <br />changes approved by the City Manager and City Attorney. <br />DISCUSSION <br />On April 4, 2015 the roof and exterior of the log cabin at Santiago Park was damaged by a fire, <br />which required the replacement of the roof shingles. During the replacement of the roof shingles, <br />City inspectors discovered termite damage to the wood supporting the roof shingles. Competitive <br />quotes to repair the termite damage were obtained and a purchase order was issued to the <br />lowest bidder, Americal Construction Management Group, in the amount of $20,810.50 on <br />1/12/16. <br />During these repairs, more extensive termite damage was encountered concealed in the roof <br />substructure. Additional expenses in the amount of $12,190.00 were necessary to complete the <br />roof substructure repairs. Total amount of expenses for termite damage are $33,000.50. See the <br />illustration below: <br />Initial Cost Estimate $20,810.50 —purchase order issued 1/12/16 <br />Additional Damage $12,190.00 — request for Council Approval (3/15/16) <br />Total Termite Damage costs $33,000.50 <br />While the expenses directly attributable to the fire will be covered by the City's property insurance <br />carrier, the termite damage is considered pre- existing and therefore, not covered by the City's <br />insurance policy. <br />22C -1 <br />