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HomeMy WebLinkAboutRes2016-044Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2016-044 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING A SOLE SOURCE CONTRACT IN THE AMOUNT OF $270,000 PLUS A 25% CONTINGENCY TO HARMON CONSTRUCTION FOR ASBESTOS ABATEMENT AND FLOORING REPLACEMENT FOR THE CITY HALL BUILDING, AND APPROPRIATING FUNDS WHEREAS, the City Hall municipal building was constructed in 1966 and has been found to contain asbestos within the floor tile mastic necessitating special handling to mitigate asbestos exposure during demolition; and WHEREAS, the City of Seward periodically participates in voluntary OSHA inspections in order to promote a safe work environment and to demonstrate our commitment to safety, and OSHA inspections have identified the need to remove asbestos -containing materials to prevent potential contamination; and WHEREAS, the flooring at City Hall is in need of immediate replacement due to tripping hazards and multiple carpet -related incidents; staff research indicates that the most cost- effective approach is to remove the asbestos -containing floor tiles so as to eliminate the future need to repeatedly mitigate asbestos hazards when dealing with flooring issues; and WHEREAS, Harmon Construction has managed multiple asbestos -mitigation projects at City Hall including the replacement of the basement boiler, replacement of flooring in the Seward Court, and replacement of flooring in the DMV offices, and have partnered with sub- contractors with specific expertise in the area of asbestos mitigation, and have recently submitted the lowest -cost proposal by a substantial margin, for asbestos -related demolition demonstrating the reasonableness of their competitiveness for projects of a similar nature; and WHEREAS, replacing carpet in much of the City Hall building has the potential to have an adverse impact on workflow and a local contractor could most effectively mobilize and demobilize to minimize disruption; the contractor's projected cost includes removal and disposal of floor tiles, installation of new flooring, furniture and fixtures removal and replacement as needed, and clean-up; and WHEREAS, due to the extensive costs of this project, phase one of the project intends to replace up to 6,000 sq. ft. of flooring in the areas in most need of repair, namely the first floor of City Hall, plus the MIS office on the second floor of City Hall. Funding for replacement of carpet was included in the list of 2016/2017 capital budget needs but without a specific appropriation. CITY OF SEWARD, ALASKA RESOLUTION 2016-044 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The City Manager is hereby authorized to enter into a time and materials contract with Harmon Construction for the replacement of approximately 6,000 sq. ft. of flooring at City Hall, to include removal of asbestos -containing materials, for an amount not to exceed $270,000. Section 2. The City Manager is further authorized to exercise a contract amendment in an amount not to exceed $67,500 -- representing a 25% contingency to account for the nature of the work and the potential for work that is not discoverable without destructive testing -- to be authorized only after written approval in advance by the city manager. Section 3. The City Council hereby finds, in accordance with Seward City Code §6.10.130 (Where competitive bid proposals not in public interest) that the public interest would be best served by not requiring competitive bids, in accordance with the recitals above which are incorporated herein. Section 4. Funding in an amount not to exceed $337,500 is hereby appropriated as follows: $168,750 from the General Fund reserves account no. 01000-0000-3710-80010 and $168,750 from the Capital Acquisition Fund reserves account no. 80010-0000-3400 to the Buildings account no. 80010-0000-8102. Section 5. This resolution shall take effect immediately. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 251h day of July 2016. THE CITY OF SEWARD, ALASKA can Bardarson, Mayor AYES: Casagranda, Keil, Squires, McClure, Altermatt, Bardarson NOES: None ABSENT: Butts ABSTAIN: None AT ST: rnd ea Ball , CMC Acting City Clerk (City Seal) 1 1 Meeting Date: To: Through: From: Agenda Item: Agenda Statement July 25, 2016 City Council James Hunt, City Manager Kristin Erchinger, Finance Director City Hall Flooring Replacement and Asbestos Mitigation BACKGROUND & JUSTIFICATION: The City Hall municipal building was constructed in 1966 and contains asbestos within the floor tile mastic. OSHA inspections have identified the need to remove asbestos -containing materials to prevent potential contamination. The flooring at City Hall is in dire need of replacement and presents a tripping hazard, with more than one incident involving the faulty carpet. Staff members have considered a number of options for flooring replacement to minimize the cost, including a floating floor, flooring over the existing carpet, etc. However, these shorter - term solutions continue to push the asbestos problem into the future, resulting in significantly higher costs in the long-term. Once the asbestos -containing tiles are removed, future flooring projects will be less costly and will require no mitigation. The City's former project manager fully investigated options to replace carpet and recommended that the asbestos -containing tiles be removed to prevent the need to continue mitigating asbestos exposure in the future. In the past ten years, the City has hired Harmon Construction (Harmon) to manage asbestos - mitigation projects to replace flooring in the DMV office and in the Court, and to replace the boiler in the basement. Harmon works with a sub -contractor with specific expertise in asbestos mitigation and containment, and also works with flooring sub -contractors. Harmon was the recent apparent low bidder by a substantial margin, on the City's competitive bid process to demolish two structures with asbestos -containing materials. Harmon's asbestos mitigation work has been excellent, on time, and within budget, and the firm has demonstrated significant flexibility in establishing work schedules which minimize the disruption of services to the public. The administration recommends sole sourcing the replacement of City Hall flooring to Harmon Construction for an estimated cost of $45 per square foot, to address up to 6,000 sq. ft. of flooring replacement. This phase of the project proposes to replace flooring on the entire first floor of City Hall (excluding the restrooms and Council Chambers) plus the MIS office on the second floor of City Hall. It will not replace any flooring in the basement of City Hall, nor replace flooring in the State offices on the second floor (DFYS, F&G and Court), nor the upstairs hallway and restrooms. This phase of the project will replace approximately 50% of the asbestos -containing floor tiles in City Hall. To complete the entire first and second floors (with the exception of Council Chambers and Court -related offices) comes at an estimated cost of $460,000; thus the project is being scaled -back. The scope of work for this project includes hiring certified asbestos abatement workers, third -party air quality monitoring, appropriate handling and disposal of asbestos -containing materials, installing new flooring, and removing and replacing furniture and fixtures as needed. The contractor will endeavor to phase the project to minimize the disruption of service to the public, as well as to minimize the impact on department productivity. INTENT: To award a sole source contract to Harmon Construction to replace the flooring on the entire first floor of City Hall excluding the restrooms and the City Council chambers, plus the MIS offices on the second floor of City Hall. CONSISTENCY CHECKLIST: Yes No N/A 1. Comprehensive Plan (document source here): X 2. Strategic Plan (document source here): X 3. Other (list): X FISCAL NOTE: The 2016/2017 Budget was prepared under the assumption that flooring would be installed over existing carpet, to avoid the need for disposal of asbestos -containing materials, at an estimated cost of $90,000. However, the long-term costs and impacts of this strategy — including the continuing need to mitigate asbestos -related health and safety issues in the future — have led the administration to consider this strategy to be more costly and less appropriate. No funding was appropriated for this project in the budget. Funding is proposed to be split 50150 between the Capital Acquisition Fund and the General Fund. Approved by Finance Department: X u't. D JJZ=� ATTORNEY REVIEW: Yes No X Not Applicable, RECOMMENDATION: 4- City Council approve Resolution 2016- D authorizing a sole source contract with Harmon Construction for asbestos mitigation and flooring replacement at City Hall, and appropriating funds.