Report Prepared by: Joe Cardoso, P.L.S., Engineering Department
Title
SUBJECT: Lease Agreement with Williams Scotsman, Inc. to Provide a Temporary Portable Building for the Stephen Leonard Park Building Rehabilitation Structural Repairs, Project Number CP230052, in the Amount of $87,236.68, Increasing Revenue in the Amount of $108,237, and Appropriating the Same
REPORT IN BRIEF
Considers approving a Lease Agreement with Williams Scotsman, Inc., for a temporary portable building at Stephen Leonard Park to provide office space for the current tenant or any future tenant while the Stephen Leonard Building is being repaired, increasing revenue in the amount of $108,237, and appropriating the same.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Lease Agreement with Williams Scotsman, Inc. in the amount of $87,236.68 to provide a temporary portal building at Stephen Leonard Park for the Stephen Leonard Park Building Rehabilitation Structural Repairs; and,
B. Approving an increase to cost recovery revenue in Fund 5000-Parks and Community Services in the amount of $108,237, appropriating the same in Fund 5000-Parks and Community Services CIP Project Number CP230052-Stephen Leonard Building Repairs and allowing the use of pooled cash until reimbursement is received from the insurance company; and,
C. Authorizing the City Manager or Deputy City Manager to execute the necessary documents; and,
D. Authorizing the Finance Officer to make necessary budget adjustments for the for the Lease Agreement, building hook-up costs, and essentials.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Charter of the City of Merced, Article XI, Fiscal Administration.
CITY COUNCIL PRIORITIES
As provided for in the 2022-23 Adopted Budget.
DISCUSSION
The Stephen Leonard Park Community Center, located at 640 T Street, Merced, was severely 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. Partial payments totaling $527,538.24 has been received and accepted by City.
Under the direction of City Staff, Teter, LLP, in collaboration with North Star Engineering Group, Inc., prepared plans and specifications for the structural repairs. On November 21, 2022, City Council awarded the construction contract to Harris Builders, Inc., in the amount of $252,550 for the structural repairs.
With all the delays in repairing the building, it was necessary to provide a temporary building for our tenants. Staff contacted Williams Scotsman Inc., regarding the availability of leasing a temporary portable building. The building will be a 60’x 24’ modular building which includes four office spaces, a meeting room, and a unisex restroom.
The following is the proposed budget for the portable building and essentials for 10 months:
• Building rental $57,176.30
• Sanitation services $6,711.50
• Set-up delivery, installation and return $23,348.88
Total Lease Amount $87,236.68
• Set-up water and power to building $21,000
The total budget for the temporary building is approximately $108,236.68 for 10 months. Each additional month will be billed at $5,717.63 for the building rental and $649.50 for sanitation services, plus utilities. If the portable building is needed after 10 months we will come back to Council for additional approvals.
IMPACT ON CITY RESOURCES
The City will need to increase revenue and appropriate funding in the amount of $108,237 in Fund 5000-Parks and Community Services CIP in Project CP230052-Stephen Leonard Building Repairs as well as using pooled cash until reimbursement funds are received from the insurance company.
ATTACHMENTS
1. Lease Agreement