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May 23, 2023 <br /> <br />Background: <br /> <br /> The Neighborhood Facility Recreation Center was identified as an eligible facility <br />for the expenditure of Community Block Grant Funds (CDBG). <br /> <br /> The current project consists of roof replacement, HVAC upgrades, and other <br />exterior improvements for the Neighborhood Facility. <br /> <br /> The project was publicly bid in 2022 and the low bidder was Conrad Brothers, Inc. <br /> <br />Discussion: <br /> <br /> <br /> After demolishing the roof, significant interior damage and previous failing repairs <br />were discovered inside the building. <br /> <br /> Potential environmental concerns were also discovered. <br /> <br /> The contractor has been working with City staff and the City’s consultant team to <br />evaluate the building condition, determine the required repairs, and provide pricing to <br />address the issues discovered to ensure that the entire facility can be returned to service <br />when the current project is finished. <br /> <br /> It has been determined that approximately $544,000 of additional repairs will be <br />necessary to address the issues uncovered by the roof demolition. Since the original <br />contract price was $1,376,000 the additional repairs will increase the price by <br />approximately 40 percent. <br /> <br /> Under Section 12-183 of the City Code, Council approval is required for change <br />orders that increase the contract price by over 25% or $50,000, whichever is greater. <br /> <br /> <br />Financial Impact: <br /> <br /> <br /> The initial contract was $1,376,000. <br /> <br /> The additional cost to the contract is anticipated to be approximately $544,000. <br /> <br /> CDBG and CIP funds are available to address the additional costs. <br /> <br />Recommended Action: <br /> <br /> Adoption of the Resolution. <br /> <br />Next Steps Following Council Action: <br /> <br /> The City Manager will authorize the proposed change order. <br /> <br /> The contractor will proceed with the repairs. <br /> <br />Motion by Mr. Moody, and seconded by Mr. Hugel, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br /> Councilman Hugel asked Interim City Manager Terry to provide an update on the <br /> <br />Churchland Bridge and Court Street construction. <br /> <br />“RESOLUTION AUTHORIZING THE CITY MANAGER TO APPROVE A CHANGE <br />ORDER TOTALING MORE THAN 25% OF THE CONTRACT PRICE OF THE <br />CONSTRUCTION CONTRACT WITH CONRAD BROTHERS, INC. FOR EXTERIOR <br />RENOVATIONS AND HVAC IMPROVEMENTS TO THE ELM AVENUE <br />NEIGHBORHOOD FACILITY. <br /> <br />WHEREAS, <br /> in 2022 the City solicited bids for exterior renovations (including roof <br />replacement) and HVAC improvements to the Elm Avenue Neighborhood Facility (the <br />“Work”); and <br /> <br />WHEREAS, <br /> Conrad Brothers, Inc. (the “Contractor”) submitted the low bid; and <br /> <br />WHEREAS, <br /> the City entered into a contract dated May 5, 2022 with the Contractor <br />for the performance of the Work; and <br /> <br />WHEREAS, <br /> after demolition of the existing roof was completed, the City <br />determined that the interior deterioration in the facility was worse than anticipated and <br />new environmental concerns were discovered; and <br /> <br />WHEREAS, <br /> the City has worked with its consultant and the Contractor to <br />determine the preliminary scope of the repairs required to address these issues; and <br /> <br /> <br /> <br /> <br />