HomeMy WebLinkAbout108-25 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 108-25 File Number: 2025-521 SURFCO RESTORATION & CONSTRUCTION, LLC. (PAYMENT / INSURANCE PROCEEDS): A RESOLUTION TO AUTHORIZE PAYMENT TO SURFCO RESTORATION & CONSTRUCTION IN THE AMOUNT OF $147,010.18 FOR THE REMEDIATION WORK ASSOCIATED WITH THE CITY HALL FIRE SPRINKLER CLAIM, AND TO APPROVE A BUDGET ADJUSTMENT RECOGNIZING INSURANCE PROCEEDS IN THE AMOUNT OF $147,882.00 WHEREAS, on January 12, 2025, a vendor painting in City Hall accidently struck a fire sprinkler with a rolling scaffold releasing an estimated 4,454 gallons of water; and WHEREAS, Surfco Restoration & Construction immediately began remediation that included removing all the water out of the building and placing drying equipment for the carpets and walls to prevent mold growth; and WHEREAS, damaged ceilings, carpets, wall -bases, light fixtures and painted surfaces had to be replaced and testing was done to assure all the spaces were dry and without mold upon completion of each space. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes payment to Surfco Restoration & Construction in the amount of $147,010.18 for the remediation work associated with the City Hall fire sprinkler claim. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, recognizing insurance proceeds in the amount of $147,882.00. PASSED and APPROVED on May 6, 2025 Approved: Molly Rawn, Mayor Attest: Kara Paxton, City Clerk Treasurer Page 1 CITY OF CITY COUNCIL MEMO FAYETTEVILLE ARKANSAS 2025-521 MEETING OF MAY 6, 2025 TO: Mayor Rawn and City Council THRU: Steven Dotson, Chief Financial Officer FROM: Waylon Abernathy, Bond Projects & Construction Dir SUBJECT: SURFCO RESTORATION & CONSTRUCTION, LLC. (PAYMENT / INSURANCE PROCEEDS): RECOMMENDATION: Authorize payment to Surfco Restoration & Construction for the remediation work in the amount of $147,010.18 associated with the City Hall Fire Sprinkler Claim, recognize insurance proceeds from International Programs Group in trust for Great Lakes Insurance in the amount of $147,881.95, and approval of a budget adjustment. BACKGROUND: On Sunday afternoon of January 12th this year, a vendor painting in City Hall accidently struck a fire sprinkler with a rolling scaffold, causing it to activate. The Fire Department responded quickly, and had the system shut down within 15 minutes of getting the call. Their response time was critical. However, the pipe was flowing up to 262 gallons per minute. An estimated 4454 gallons was discharged. This occurance fell into the definition of an emergency procurement item. Surfco was contacted by Facilities Staff within 18 minutes of the alarm. They arrived on site with 39 staff and equipment to begin the remediation within the hour. DISCUSSION: When Surfco arrived at the site, they began remediation. The scope included removing all the water out of the building, and drying equipment for the carpets and walls to prevent mold growth. Damaged ceilings, carpets, wall -bases, light fixtures and painted surfaces had to be replaced. Testing was done to assure all the spaces were dry and without mold upon completion of each space. As Surfco was remediating the damage in the basement, evidence of mold behind the wall paneling was discovered. This was caused by a previous isolated water incident, and not a part of this claim. As Construction Director, I instructed Surfco to treat the molded area for safe air quality, and then remove the framing and drywall of those affected surfaces. The additional scope was added to Surfco's invoicing for a total of $147,010.18. This total was under the insurance proceeds in the amount of $147,881.95. BUDGET/STAFF IMPACT: GLACCOUNT: 4470.140.8900-4900.00 - Miscellaneous Revenue Project: 23003.3 - Downtown Campus Renovation, Water Damages ATTACHMENTS: SRF (#3) , BA (#4), Surfco Invoices (#5) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2025-521 SURFCO RESTORATION & CONSTRUCTION, LLC. (PAYMENT / INSURANCE PROCEEDS): A RESOLUTION TO AUTHORIZE PAYMENT TO SURFCO RESTORATION & CONSTRUCTION IN THE AMOUNT OF $147,010.18 FOR THE REMEDIATION WORK ASSOCIATED WITH THE CITY HALL FIRE SPRINKLER CLAIM, AND TO APPROVE A BUDGET ADJUSTMENT RECOGNIZING INSURANCE PROCEEDS IN THE AMOUNT OF $147,882.00 WHEREAS, on January 12, 2025, a vendor painting in City Hall accidently struck a fire sprinkler with a rolling scaffold releasing an estimated 4,454 gallons of water; and WHEREAS, Surfco Restoration & Construction immediately began remediation that included removing all the water out of the building and placing drying equipment for the carpets and walls to prevent mold growth; and WHEREAS, damaged ceilings, carpets, wall -bases, light fixtures and painted surfaces had to be replaced and testing was done to assure all the spaces were dry and without mold upon completion of each space. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes payment to Surfco Restoration & Construction in the amount of $147,010.18 for the remediation work associated with the City Hall fire sprinkler claim. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution, recognizing insurance proceeds in the amount of $147,882.00. Page 1 Wade Abernathy Submitted By City of Fayetteville Staff Review Form 2025-521 Item ID 5/6/2025 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 4/14/2024 FACILITIES MANAGEMENT (140) Submitted Date Division / Department Action Recommendation: Authorize payment to Surfco Restoration & Construction for the remediation work in the amount of $147,010.18 associated with the City Hall Fire Sprinkler Claim, recognize insurance proceeds from International Programs Group in trust for Great Lakes Insurance in the amount of $147,882.00, and approve a budget adjustment. Budget Impact: 4470.140.8900-5400.00 Sales Tax Capital Account Number Fund 23003.3 Downtown Campus Renovation - Water Damages Project Number Budgeted Item? Yes Does item have a direct cost? Yes Is a Budget Adjustment attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Project Title $ 298,561.00 $ 251,505.70 Is 47,055.30 $ 147,010.18 $ 147,882.00 47,927.12 Previous Ordinance or Resolution # Approval Date: V20221130 City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number FACILITIES MANAGEMENT (140) /Org2 2025 Requestor: Wade Abernathy BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Authorize payment to Surfco Restoration & Construction for the remediation work in the amount of $147,010.18 associated with the City Hall Fire Sprinkler Claim, recognize insurance proceeds from International Programs Group in trust for Great Lakes Insurance in the amount of $147,882.00, and approve a budget adjustment. COUNCIL DATE: 5/6/2025 ITEM ID#: 2025-521 Holly Black q/16/2025 7.31 ANI RESOLUTION/ORDINANCE Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL Account Number 147,882 147,882 Increase / (Decrease) Expense Revenue Project.Sub# Project Sub.Detl AT v.2025311 Account Name 4470.140.8900-5400.00 147,882 - 23003 3 EX Building & Grounds - Maintenance 4470.140.8900-4900.00 - 147,882 23003 3 RE Miscellaneous Revenue - base I of 1 Surfco Restoration & Construction Invoice #: 4500 S School Ave Project #: Fayetteville, AR, 72701 479-287-6205 Invoice Type: Progress Invoice Date: 2/7/2025 PROJECT DETAILS Project Type Attention: Client Name: Project Name: Fayetteville City Hall Project Address: 103 W Mountain St Fayetteville, AR BILLING TOTAL TOTAL: $34,587.00 Bill Processed by T&M Pro TM - www.timeandmaterial.com - ©2024 ©I SURFCO Restoration 8e Construction LLC INVOICE BILL TO City of Fayetteville 100 West Rock Street Fayetteville, AR 72701 DESCRIPTION City Hall 113 W Mountain Street Fayetteville, AR 72701 Basement Surfco Restoration & Construction, LLC PO Box 1305 Fayetteville, AR 72702 US +14792876205 contact@teamsurfco.com www.surfcorestoration.com INVOICE # 3277 DATE 03/31/2025 DUE DATE 03/31/2025 TERMS Due on receipt QTY RATE BALANCE DUE 1 17,319.46 AMOUNT 17, 319.46 $17,319.46 Surfco Restoration & Construction 4500 S School Ave Fayetteville, AR, 72701 479-287-6205 Invoice #: Project #: Invoice Type: Final Invoice Date: 1/23/2025 PROJECT DETAILS Project Type: Water Mitigation Attention: Client Name: Fayetteville City Hall Project Name: Fayetteville City Hall 113 W Mountain St Project Address: 113 W Mountain St Fayetteville, AR 72701 Fayetteville, AR 72701 BILLING TOTAL TOTAL: $95,103.72 Bill Processed by T&M Pro TM - www.timeandmaterial.com - ©2024