Report Prepared by: Maggie Lemos, Risk Analyst, Human Resources Department
Title
SUBJECT: Approval to Accept, Increase Revenue, and Appropriate Partial Payment for the Stephen Leonard Park Community Center in the Amount of $115,525.93
REPORT IN BRIEF
Considers approving a partial payment from McLarens Property Insurance Company for the claim submitted to Alliant Property Insurance for damages caused by the May 17, 2022, fire to the Stephen Leonard Park Community Center.
RECOMMENDATION
City Council - Adopt a motion:
A. Accepting a partial payment; increasing the revenue to Cost Recovery account in Fund 5000 - Parks & Community Services CIP in the amount of $115,526; and,
B. Appropriating the same in Fund 5000 - Parks & Community Services CIP to Project CP230052-Stephen Leonard Park Community Center; and,
C. Authorizing the Finance Officer to make the necessary budget adjustments for any future partial payments associated with Project CP230052-Stephen Leonard Park Community Center Repairs.
Body
ALTERNATIVES
None.
AUTHORITY
Article XI - Fiscal Administration.
CITY COUNCIL PRIORITIES
As provided for in the 2022-23 Adopted Budget.
DISCUSSION
The Stephen Leonard Park Community Center was damaged by a fire on the evening of May 17, 2022. The damage was extensive, and a claim was submitted to our property insurance broker, Alliant (APIP). Alliant submitted the claim to McLarens Property Insurance Company to contract hazardous material clean up, work with the City and contractors to develop a scope of work for repairs, and payment of the claim.
On March 9, 2023, McLarens requested to process a partial payment to the City of Merced for work that has been completed. The amount of the payment is $115,525.93. We are expecting to receive future payments from McLarens for this project as work is completed.
IMPACT ON CITY RESOURCES
The Council allocated $100,000 to the project during the adoption of the FY 22-23 budget. McLarens Property Insurance Company submitted a partial payment of $412,012.31 which Council accepted in November 2022. Staff recommends the Council accept and appropriate the $115,525.93 received from McLarens Property Insurance Company to the revenue and expenditure accounts in Fund 5000 - Parks & Community Service CIP to cover the cost of Stephen Leonard Park Community Center Repairs. The recommendation also allows for the Finance Officer to accept and appropriate any future insurance payments for this project.
ATTACHMENTS
None.