Report Prepared by: Maggie Lemos, Risk Analyst, Human Resources Department
Title
SUBJECT: Approval to Accept Revenue from an Insurance Claim and Appropriate $1,401,256.94 for the Sun Star Building and Approve a Statement of Service with CVE Demolition for $211,775 Plus 20% Contingency
REPORT IN BRIEF
Considers approving a partial proof of loss payment from McLarens Property Insurance Company for the claim submitted to Alliant Property Insurance for damages caused by the August 27, 2024, structure fire to the Merced Sun Star Building.
RECOMMENDATION
City Council - Adopt a motion:
A. Ratifying the Emergency Declaration due to the fire of the Sun Star Building; and,
B. Approving the Partial Proof of Loss Sworn Statement; and,
C. Accepting, Increasing Revenue in the amount of $1,401,256.94 and appropriating the same in Fund 5004 Public Safety CIP; and,
D. Ratifying Waiving Competitive Bidding due to the Emergency Declaration and approving a Statement of Services with CVE Demolition to demolish the Merced Sun Star building for $211,775 plus 20% contingency for a not to exceed amount of $254,130; and,
E. Approving the use of pooled cash until reimbursement from the insurance claim has been received; and,
F. Authorizing the City Manager to execute and sign the necessary documents; and,
G. Allowing the Finance Officer to accept and appropriate future funds received from the insurance claim.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff; or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Article XI - Fiscal Administration and Municipal Code Section 3.04.210 - Exemptions from competitive bidding.
CITY COUNCIL PRIORITIES
As provided for in the 2024-25 Adopted Budget.
DISCUSSION
The Sun Star Building was damaged by a structure fire on the evening of August 27, 2024. The damage was extensive, an...
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