HomeMy WebLinkAboutE-8 Staff Report - Authorization of Capital Reserve Fund Expenditure for Damages Related to Library Sewer SpillCONSENT ITEM
E-8
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: DANIEL BOBADILLA, P.E., DIRECTOR OF PUBLIC WORKS/CITY ENGINEER
DATE: MARCH 4, 2019
SUBJECT: AUTHORIZATION OF EXPENSE FROM CAPITAL RESERVE FUND FOR ITEMS
RELATING TO LIBRARY SEWER SPILL
BACKGROUND:
On October 3, 2018, the Azusa Library experienced a large sewer back-up, resulting in contaminated
water spreading throughout the staff area as well as the Auditorium. The carpet in these areas will need
to be removed and replaced. The California Joint Powers Insurance Authority (CJPIA) is covering the
damages above the deductible amount, replacing like for like materials. Based on the heavy public usage
and in an attempt to mitigate expenses should an event of this magnitude take place again, the carpet is
being replaced with durable, water resistant vinyl plank. The City is responsible for funding the
difference between carpet and the vinyl plank. Additionally, Staff took this opportunity to upgrade some
electrical wiring and lighting to improve efficiency in the area. The City Manager has previously signed
the Authorization to Proceed under his emergency authority. This action would approve an expenditure
from the Capital Reserve Fund to cover the total cost of the project with reimbursement from the CJPIA
for the covered costs.
RECOMMENDATION:
Staff recommends the City Council take the following actions:
1)Authorize a Capital Reserve Fund expenditure equal to $329,733.04 for the total amount of the
project with a reimbursement of $173,746.00 from the CJPIA.
ANALYSIS:
On October 3, 2018, the Azusa Library experienced a large sewer back-up. The back-up resulted in
contaminated water spreading throughout the staff area as well as the Auditorium. Due to the presence
of hazardous contaminants in some of the materials that needed to be removed, the affected area was
essentially uninhabitable. The contaminants in the area have been remediated and reconstruction is now
underway.
APPROVED
CITY COUNCIL
3/4/2019
Library Sewer Spill
March 4, 2019
Page 2
The CJPIA is covering the damages above the deductible amount for replacement of like for like
materials. The carpet is one of the items that need to be removed and replaced. Based on the heavy
public usage and in an attempt to mitigate expenses should an event of this magnitude take place again,
the carpet is being replaced with durable, water resistant vinyl plank. Since the carpet could not be
seamed together unnoticeably, the CJPIA approved replacement of flooring throughout the Library.
Staff also took this opportunity to upgrade some electrical wiring and lighting to improve efficiency in
the area.
Coordination of contractors was handled by the CJPIA’s insurance adjuster with final Authorization to
Proceed being issued by the City of Azusa. The initial bid was rejected by the adjuster. The second bid
was consistent with industry costs and standards, and was ultimately approved by City Staff and the
insurance adjuster.
The City Manager previously signed the Authorization to Proceed under his emergency authority. This
action would approve an expenditure from the Capital Reserve Fund to cover the total cost of the project
with a reimbursement from the CJPIA for the costs covered by the insurance policy.
FISCAL IMPACT:
The recommended action authorizes an expenditure to S&T Construction from the Capital Reserve Fund
in the amount of $329,733.04 with a reimbursement of $173,746.00 from the CJPIA.
Prepared by: Reviewed by:
Nikki Rosales Daniel Bobadilla, P.E.
Senior Management Analyst Director of Public Works/City Engineer
Reviewed and Approved:
Sergio Gonzalez
City Manager