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Item 4DCITY OF SOUTHLAKE MEMORANDUM (February 21, 2012) To: Shana Yelverton, City Manager From: Robert H. Price, P.E., Director of Public Works Subject: Approve ratification of emergency expenditures related to Southlake Town Hall water leak in the amount of $521,483.92 Action Requested: Approve ratification of emergency expenditures related to Southlake Town Hall water leak in the amount of $521,483.92. Background Information: On Saturday, December 3, 2012, Southlake Town Hall experienced a water leak that flooded the first floor of the building. County Tax and Clerk offices as well as the City's Public Library were the major services which were adversely impacted by the flood. The leak was caused by a blowout in the water service line to the facility's fire protection system. This type of leak has been experienced in several other buildings around Town Square. It is estimated that approximately 100,000 gallons of water flowed into the building. Also located on the first floor of the building is the city's primary computer server room as well as records of several departments. As a result of the damage to the building, services on the first floor were immediately impacted and ceased operation until the damage could be remediated. In accordance with the city's policy, an "emergency" was declared in order to take the necessary steps to address the water leak and to repair the damage to the building. A number of expenditures ensued, some greater than the standard authorization limit for City staff were exceeded in order to address the emergency in a timely manner. County Offices reopened for service to the public on Monday, December 12,2012 and the city's public library reopened on Friday, December 16, 2011. The purpose of this item is to present for Council's ratification the expenditures in excess of the standard authorization limit of $50,000. There were a total of four (4) expenditures over $50,000 that were necessary to return the first floor to full operation. Financial Considerations: Total expenditures known to date sum to $ 521,483.92. A few invoices still remain outstanding; however, staff believes that the remainder of the outstanding invoices are within the City Manager's signatory approval authority. City staff has met and filed a claim with the city's insurance carrier, Texas Municipal League Intergovernmental Risk Pool. It is expected that a large number of the costs associated with the repairs to the building will be covered under the city's insurance policy. The city's deductible is $5,000. The exact financial impact to the city has not yet been determined as the insurance carrier is still reviewing the claim. The four expenditures that exceeded the $50,000 purchasing authority of the City Manager included the following: Business Flooring Specialists $ 79,842.91 Davidson Reconstruction 137,100.06 Wright Construction 62,587.00 ServPro 181,884.10 Total (invoices greater than $50K) $ 461,414.07 Strategic Link: The ratification of these emergency expenditures link to the City's strategy map relative to the focus areas of Safety and Security and Performance Management and Service Delivery. The specific corporate objectives that are met by these expenditures and construction project include: adhering to financial management principles and budget and investing to provide and maintain high quality public assets. Citizen Input/ Board Review: N/A Legal Review: None Alternatives: The City Council may ratify or deny the expenditures. Supporting Documents: Contract/Invoice List Staff Recommendation: Approve ratification of emergency expenditures related to Southlake Town Hall water leak in the amount of $521,483.92. Staff Contact: Robert H. Price, P.E., Public Works Director Chuck Kendrick, Deputy Director of Public Works /Operations Jeff Parrack, Facility Services Manager Kurt Ackerman, Facility Services Manager 3 Q Q. E 3 CL 1 F L o Q) W m u a O N (Yi O d' if)- 4/} {/} V'? i/T L U a � a c bA O N W G) CL a 4J cj tl7 G — co 4 u � a > u E L a Q tA C E +� N 4- O C u a +� t0 O a- W O a C u LO iG S ` L U ++ L m L a n m C L o � L L ca C_ otf L Y Cll CL 0 n m '� Q co a O ° Q u m u m C- 4. Q U C _ J � DO cr m no m m ro ro m m m m m u u u a a a d o I'D LJn E U a u s u a u a u a u a u a U a lD LU W O o i L' Q V) Ln o ° a o a s 0 0 m a V a a o o I Ln Qj li 00 + 4 O m 1 h Ln +� rl Oo F- Ln lO N Ln N L a C( Ui N Lh O N of +! 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