Consideration and Approval of Contract:  Siler Homes Roof Replacement due to Hail Damage (Approve contract with Sky Construction & Engineering, Inc. in the amount of $506,749.00)

1) Approve the construction contract with Sky Construction & Engineering, Inc. in the amount of $506,749.00 and a contract time of 90 calendar days;
2) Authorize the City Manager to execute the necessary documents.

Approval of the contract will authorize the replacement of all roofs in the Siler Homes Public Housing Development that were damaged by hail on July 25, 2014. HAI Group, insurance carrier for the Flagstaff Housing Authority, is paying for the cost of the damage.

Except for the $2,500.00 deductible being paid by the Flagstaff Housing Authority, HAI Group, the housing authority insurance carrier, is paying $504,249.00. The total contract amount is $506,749.00.

No, there has not been a previous Council decision on this.

1. Approve the award as recommended. This option will allow work to commence immediately as monsoon season will soon be upon us. The roofs are going to be stripped down to bare sheeting and will be susceptible to leaking.
2. Reject bids as submitted and not approve the award. Since this is an insurance case, a rejection of the award could jeopardize the amount that they will pay. If the project has to be rebid prices are subject to increase which will not be covered by insurance. Also, if there is any additional damage due to delays the insurance company will not cover the additional cost.

On July 25, 2014 the roofs on all 70 buildings, consisting of 100 units of public housing, were damaged by a hail storm. HAI Group, the housing authority insurance company, was notified of the damage on October 10, 2014. On October 21, 2014 the adjustor inspected all roofs and determined that they needed to be replaced. The bid specifications were given to the City's procurement staff who put together and advertised a formal Invitation for Bids. Three bids were received from the following:

Sky Engineering          $506,769.00
Flynn Southwest          $515,243.00
Titan Roofing               $539,444.73

All bids were within the insurance company estimate, were submitted to the insurance company for review and authorization was given from HAI Group, the using authority insurance company to recommend award to Sky Engineering as the lowest responsive, responsible, Bidder.

The contractor will remove and dispose of all existing shingles and replace with architectural shingles made by Malarky, Tamko or equal, with minimum weight of 235 pounds; 15 pound felt; ice & water shield; drip edge; exhaust caps and flashing. Fortunately, no leaks have been detected.

Without approval to authorize a contract with Sky Construction & Engineering, the properties are at risk of further damage that will not be covered by insurance. There are no General Fund monies involved in the roof replacement.

The community benefits of this project is to protect the pubic housing units and provide a safe, sanitary and comfortable living environment for the residents. 

There was no community involvement as the contract is to repair hail damaged property as an insurance claim.

1. Approve the award as recommended. This would allow work to begin immediately so that the work would be completed by mid-summer.

2. Reject approval of the award. This would jeopardize the insurance claim as they will not cover any additional costs.