SUBJECT/RECOMMENDATION:
Title
Approve a purchase order to Arthur J. Gallagher Risk Management Services, Inc., of Orlando, FL, for a Builder’s Risk policy for the New City Hall project (22-0019-EN) for a not to exceed amount of $275,000 pursuant to Clearwater Code of Ordinances Section 2.563(1)(i), Insurance, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The project consists of the construction of a new two-story City Hall on an approximately 1.68-acre site in downtown Clearwater. The two-story building is approximately 40,303 square feet modern facility to accommodate multiple City departments including the City Council, City Manager and City Attorney. The building will also house the new City Council Chambers. The building structure will be a composite steel system, metal framed exterior walls, cast-in-place shear walls and elevator shafts, and a metal panel exterior skin. The site development includes all hardscape including pervious concrete paving, park elements, storm draining to water gardens (ponds), and all associate MEP site elements. The project will be seeking LEED Silver Certification form the US Green Building Council.
Arthur J. Gallagher, the City’s insurance broker, is assisting the City in marketing this project for a Builder’s Risk policy. The exact premium is still being negotiated, and finalized, but Gallagher estimates a not-to-exceed premium in the amount of $275,000. The City is getting quotes from Ajax Builders to purchase their own builders risk insurance. Ajax also works with Arthur J. Gallagher. This approach necessitates the City obtain insurance coverage for material purchased though the owner Direct Purchase (ODP) program, thereby realizing tax savings.
This agenda item is being presented to Council now, even though the final price may fluctuate slightly, as it is needed to cover work the CMAR, Ajax, will commence shortly and will avoid potential delays. The total cost of the Builder’s Risk policy will not exceed $275,000.
The City Hall project budget included an early estimate for this insurance and has available funds to cover this cost.
APPROPRIATION CODE AND AMOUNT:
ENGF220001-CONS-MISC $275,000
Funding is available in Capital Improvement Project ENGF220001, New City Hall to fund the insurance. This is funded by General Fund and Penny for Pinellas Revenues.
STRATEGIC PRIORITY:
1.2 - Maintain public infrastructure through systematic management efforts.
f