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• <br />• <br />• <br />AGENDA ITEM 1C <br />STAFF ORIGINATOR: Linda Waite Smith, City Administrator <br />MEETING DATE: October 14, 2002 <br />TOPIC: Consider Authorizing Payment to Centennial School <br />District for Items Damaged by Mold <br />VOTE REQUIRED: 3/5 <br />BACKGROUND: <br />Several weeks ago we discovered a problem with the Heating/Air Conditioning/ <br />Ventilation system had resulted in the growth of mold throughout the Civic Center <br />Complex. The problem was most severe in the Early Childhood Center which is leased <br />by Centennial School District from the City of Lino Lakes. <br />We have received an itemized list of carpeting, toys and other things the school district <br />had to replace due to mold damage. We also received an itemized list of staff time and <br />cost involved in clean-up of the Early Childhood Center. <br />Neither the school district's insurance carrier nor the city's insurance carrier covers these <br />costs. Superintendent John Christiansen and I have agreed that if the school district <br />absorbs the cost of staff time ($2,985.00), the city will pay for replacement of the <br />damaged items ($3,943.00). <br />Per the recommendation of the Finance Director, the reimbursement should be taken from <br />the insurance line item 4361 in Government Buildings budget. <br />OPTIONS: <br />1. Approve reimbursement of $3,943 to Centennial School District for replacing <br />items damaged by mold caused by malfunction of the city's HVAC system. <br />2. Decline to approve reimbursement of $3,943 to Centennial School District for <br />replacing items damaged by mold caused by malfunction of the city's HVAC <br />system. <br />3. Return to staff for further review and/or action. <br />RECOMMENDATION: <br />1. Option #1 <br />