Title
Consider a memorandum/resolution ratifying the Letter of Agreement with TRSI, LLC dba Target Solutions for repairs to 1 Santa Fe Plaza, Killeen Texas due to a structure fire that occurred on December 6, 2022, in the amount of $87,891.17.
Summary
DATE: March 21, 2023
TO: Kent Cagle, City Manager
FROM: Leslie Hinkle, Executive Director of Community Development
SUBJECT: Emergency Repairs related to 1 Santa Fe Plaza, Killeen Texas
BACKGROUND AND FINDINGS:
On December 6, 2022, there was a fire at 1 Santa Fe Plaza. The building is occupied by the Greater Killeen Chamber of Commerce and the building is a city asset. There was damage to the interior and the exterior of the historic structure (Santa Fe Railroad Depot). The City Manager authorized emergency repairs to take place effective December 7, 2022. The City’s insurance carrier (TML) authorized and approved the scope of work to begin on the interior and that work has been completed. TML insurance approved the scope of work on the exterior of the building to also be completed. This work is under a separate scope since most of the exterior work that is required to be done in order to restore the historic features of the building.
TRSI, LLC dba Target Solutions has been contracted to perform the exterior work on the building and TML has approved the work to be completed. Target Solutions started the work in early February 2023 and the work is expected to take up to 120 days due to availability of building products that need to be milled and reproduced. TML has authorized the work to be completed in the amount of $87,891.17. City will receive insurance proceeds in this amount minus the city’s $10,000 deductible.
THE ALTERNATIVES CONSIDERED:
1. Do not approve the ratification of Letter of Agreement for expenditures with Target Solutions for the emergency repairs to the building at 1 Santa Fe Plaza (Chamber of Commerce).
2. Approve the ratification of Letter of Agreement for expenditures with Target Solutions for the emergency repairs to the building at 1 Santa Fe Plaza (Chamber of Commerce).
Which alternative is recommended? Why?
Approve the ratification of the Letter of Agreement for expenditures with Target Solutions for the emergency repairs to the building at 1 Santa Fe Plaza (Chamber of Commerce) so the repairs can be completed as quickly as possible to restore the integrity of the historic structure.
CONFORMITY TO CITY POLICY:
Yes, Target Solutions is on the TIPPS purchasing cooperative contract. Purchases made through a cooperative contract are exempt from the competitive bidding process as stated in the Texas Local Government Code 9 TLGC) section 271.102, subchapter F, a local government that purchases goods or services under this subchapter satisfies any state law requiring the local government to seek competitive bids for the purchase of goods or services.
FINANCIAL IMPACT:
What is the amount of the expenditure in the current fiscal year? For future years?
The estimated expenditure for FY 2023 is $87,891.17.
Is this a one-time or recurring expenditure?
One-time
Is this expenditure budgeted?
Yes, claims and damages are budgeted in each fund with offsetting insurance proceeds. Funds are available in the General Fund Non-Departmental account 010-9501-491.44-85.
If not, where will the money come from?
N/A
Is there a sufficient amount in the budgeted line-item for this expenditure?
Yes
RECOMMENDATION:
City Council ratify the Letter of Agreement with Target Solutions to complete the emergency repairs to 1 Santa Fe Plaza due to structural fire damage on December 6, 2022, in the amount of $87,891.17.
DEPARTMENTAL CLEARANCES:
Purchasing
Finance
Legal
ATTACHED SUPPORTING DOCUMENTS:
Letter of Agreement
Certificate of Interested Parties
Presentation