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HomeMy WebLinkAboutStaff Report 8231City of Palo Alto (ID # 8231) City Council Staff Report Report Type: Action Items Meeting Date: 8/28/2017 City of Palo Alto Page 1 Summary Title: Finding Palo Alto Fire Station No.3 Substantially Complex Title: PUBLIC HEARING: Adoption of Finding That the Fire Station No. 3 Replacement Project (CIP PE-15003) is "Substantially Complex" Under Public Contract Code Section 7201 and Direction to Increase the Retention Schedule From 5 Percent to 10 Percent From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council consider the following motions: 1.Find the proposed Fire Station No.3 Replacement Project “substantially complex” under Public Contract Code Section 7201 based on the reasons set forth in the staff report, and 2.Allow this project to be advertised for bid with a retention amount of ten percent. Executive Summary State law limits the City to five percent retention on public works projects unless City Council makes a formal finding that the project is “substantially complex.” This finding must be made before the project can be advertised for bid. Staff is preparing to issue the formal Invitation for Bids (IFB) for the Fire Station No.3 Replacement Project. The IFB is expected to be released in September 2017. Background Public Contract Code Section 7201 requires public agencies to limit contract retention on public works projects to 5%, unless the project is found to be a “substantially complex project”. Retention is a contractual withholding of money by the City to cover any unexpected expenses, such as liens or poor workmanship, City of Palo Alto Page 2 that may occur before the project is completed and accepted. The standard procedure is to return the retention once the following occurs: work is completed, the contractor provides the maintenance bond, the City accepts the project, and the lien period expires. Public Contract Code Section 7201(b) states, “retention proceeds withheld from any payment by a public entity from the original contractor…shall not exceed 5 percent of the payment” and “…in no event shall the total retention proceeds withheld exceed 5 percent of the contract price.” However, Section 7201(b)(4) provides that an awarding agency may withhold in excess of five percent (5%) on specific projects where the governing body has approved a finding during a properly noticed and normally scheduled public hearing and prior to bid that the project is substantially complex and therefore requires a higher retention amount than 5 percent. Section 7201(5) further provides that any finding by a public entity that a project is substantially complex “shall include a description of …why it is a unique project that is not regularly, customarily, or routinely performed by the agency or licensed contractors.” The awarding entity must include both this finding and the actual retention amount in the bid documents. Discussion The Fire Station No. 3 Replacement Project is part of the Council Infrastructure Plan.Funding for the Project was approved in Fiscal Year 2017 Adopted Capital Budget, and is available in the Capital Improvement Program project PE-15003 in the amount of $7.2 million. The existing Fire Station No.3, located at 799 Embarcadero Road in Palo Alto is a one-story,wood-framed structure built in 1958 and has had minimal improvements over the past 59 years. The new Fire Station No.3 will replace the aging station and be built as an Essential Services Facility in accordance with the Essential Service Building Seismic Safety Act. The new two-story, 6,663 square foot fire station will meet current California Building Codes, Americans with Disabilities Act, National Fire Protection Association codes and standards,follow Environmental, Health, Safety guidelines,and comply with OSHA laws and regulations. City of Palo Alto Page 3 The Architectural Review Board recommended approval of this project, and the Director of Planning and Community Environment approved the project in March 2017. The plans include site integration features that relate with the surrounding environment. The main materials to be used on the project are a red/orange terra cotta and zinc metal paneling which will be installed using rain screen application to maximize energy performance as well as indoor air quality. The roof will contain a photovoltaic array and be screened with high parapets. The station will be a wood-framed structure with supporting steel elements on a structural mat foundation.The station will include a pedestrian plaza, a bicycle queuing area, public art, landscaping that will incorporate protected trees, new regional indigenous drought resistant plant material,and a stormwater collection system integrated with a cobblestone dry steam bed. All these features and more will allow for a Silver Certification in Leadership in Energy and Environmental Design (LEED).Additionally the new station will incorporate an alarm and communication system essential for fire and medic response to the neighborhood served by Fire Station No. 3. The construction of New Fire Station No. 3 will require the station to be relocated to an interim facility located at 2000 Geng Road. The temporary facility will accommodate the station’s three on-duty personnel and two apparatus (the engine, and medic car) for a span of approximately 18 months while the existing site is demolished and the new fire station is constructed. The construction cost is estimated to be $5.5 million and is expected to be completed at the end of 2018. The contractor will be required to subcontract for numerous specialties including abatement of asbestos-containing material, building envelope, fire alarm and communication systems. The project will require the coordination of multiple construction disciplines while maintaining right-of- way access within a heavily used intersection of Newell and Embarcadero Roads. City staff has determined and recommends that Council find the Fire Station No. 3 Replacement Project to be “substantially complex”based on the large amount of work required, the various disciplines and trades involved in the construction,the measures to obtain LEED certification, and the work associated with Essential Services construction.The Essential Services Buildings Seismic Safety Act requires the facility be “constructed to minimize fire hazards and to resist…the forces generated by earthquakes, gravity, and winds.” The City Clerk has published the City of Palo Alto Page 4 required notice of this hearing in the Palo Alto Weekly starting on August 18, 2017. The retention will be released as described in the City of Palo Alto’s standard contract General Conditions Section 9.8.1 which states, “Upon receipt of notice from Contractor that the Work is ready for final inspection, City will make such inspection. The City will file a Notice of Completion (NOC) with the County Clerk within ten (10) days after Acceptance by the City. Thirty-five (35) Days after filing the NOC, the City may release the final retention provided the requirements in this paragraph are met.” Timeline Staff plans to issue an IFB for the project in September. Fire Station No. 3 will be relocated to the temporary site at 2000 Geng Road in October 2017. Demolition and construction of Fire Station No. 3 is expected to begin shortly after relocation to Geng Road and completion anticipated in early 2019. Resource Impact There are no resource impacts associated with finding the project “substantially complex”.Funding for the Fire Station No.3 Replacement Project including the temporary station is available in Capital Improvement Program (CIP) Project PE- 15003. Policy Implications The proposed action is consistent with City policy. Environmental Review This project is categorically exempt from the provisions of the California Environmental Quality Act (CEQA) under Section 15302 of the CEQA Guidelines as “Replacement or Reconstruction of Existing Structures”and no further Environmental review is necessary. A notice of CEQA exemption was filed in early March 2017.