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Home My WebLink About2003-04-14 City Council (10)TO: FROM: DATE: SUBJECT: CITY MANAGER DEPARTMENT: PUBLIC WORKS APRIL 14, 2003 CMR:228:03 APPROVAL OF A BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF $245,000 TO SUPPLEMENT CAPITAL IMPROVEMENT PROGRAMPROJECT 10304, ROTH BUILDING WINGS DEMOLITION 4 Staff is forwarding, at Council direction, a Budget Amendment Ordinance (BAO) to supplement Capital Improvement Pro~am (CIP) Project 10304, Roth Building Wings Demolition, in the amount of $245,000, to provide the necessary funding to complete the project. BACKGROUND In April 2000, the City Council approved the purchase of the Roth Building for potential use as a public facility in the proposed South of Forest Area park. The Roth Building consists of the original, historic 1931 building and a 1947 addition that includes a spine and two wings. In acquiring the Roth Building, the City entered into a development ageement with Palo Alto Medical Foundation which, amongst other conditions, stipulates that the City must complete demolition of the non-historic Roth Building wings by July !9, 2003. In 2001, staff estimated the demolition of the Roth Building wings at $930,000 using unit costs as no design had been prepared. This fi~re included the design, the asbestos abatement, the building demolition, the structural bracing and enclosure of the spine, and the dirt backfill of the hole left by the removal of the wings. Accordingly, staff proposed and Council approved the creation of CIP#10304, Roth Building Wings Demolition, in the amount of $930,000 for Fiscal Year (FY) 2002/03. In October 2002, the City Manager and SummerHill Homes entered into an a~eement in which SummerHill Homes will provide the design; contract for the asbestos abatement, demolition and construction; and provide the project management of the Roth Building Wings Demolition project. In return, the City will reimburse SummerHill Homes for all of the design and contract costs and allow SummerHill Homes to use the resulting site as a staging area for its adjacent residential project. As part of that ageement, SummerHill Homes provided the City with a check for $30,350. This amount represents the savings CMR:228:03 Page 1 of 3 SummerHill Homes realized by not having to export and dispose of the dirt that had been excavated from its residential project site. The dirt was instead stockpiled across Bryant Street on the future Palo Alto Housing project site and will be used to fill the hole left after the Roth Building wings demolition. As part of the FY 2002/03 Mid-Year BAO, the City will appropriate the $30,350 amount into CIP#10304, increasing that budget to $960,350. SummerHill Homes contracted for the design of the demolition project in October 2002 and for the asbestos abatement in December 2002. SummerHill Homes completed the design of the demolition project in January 2003 and then bid it to local contractors. The bids came in at $967,272, but when added to the design, asbestos abatement, and construction contingency costs, the total was about $!.185,000, or about $225,000 over budget. The reason the bids came in over budget was the substantial amount of structural work required to enable the spine to withstand earthquake forces. In an effort to lower the project costs to below the budget amount, staff determined there would be considerably less structural work and an approximate $440,000 savings to the project if the spine of the addition to the Roth Building was demolished along with the wings. Consequently, on March 17, 2003, staff recommended to Council demolishing the spine of the Roth Building in addition to the wings (CMR:176:03). However, Council did not approve staff’s recommendation and instead directed staff to take the additional funds required to proceed with the current project from General Fund reserves. DISCUSSION Staff has prepared the attached BAO in the amount of $245,000 to supplement CIP#10304, Roth Building Wings Demolition. Of this additional budget, $225,000 is necessary to complete the demolition and construction. Another $20,000 is requested by staff as a design contingency to allow a preservationist architect to review the plans and make recommendations for the protection of the historic building, the spine, and their features during demolition. Staff is currently reviewing a proposal from Garavagtia Architecture to provide this service. Garavaglia is familiar with the Roth Building, having reviewed the building and the demolition project for a non-profit ~oup interested in leasing the building, and has previously provided historic and preservationist architectural services for the City’s Planning Department. When this BAO and the Mid-Year BAO are processed~ the new budget for the project will be: Original budget SummerHill Homes contribution!Mid-Yr BAO BAO 04/21/03 TOTAL $930.000 ~0.3~0 245.000 $1,205,350 CMR:228:03 Page 2 of 3 RESOURCE IMPACT The attached BAO requests an increase in expenditures of $245,000 from the.General Fund Budget Stabilization Reserve for CIP Project 10304. This is a one-time expense and no future year resource needs are anticipated as a result of this BAO. Attachment B summarizes the BAO’s approved to date in FY 2002-03 that impact reserves. POLICY IMPLICATIONS This recommendation does not represent any change to existing Ciu~" policies. ENVIRONMENTAL REVIEW The City approved a Final Environmental Impact Report for the Council adoption of the SOFA CAP Phase I and approval of the Development Ageement with PAMF. Both actions included the retention of the historic Roth Building, demolition of the 1947 wings, and development of a two-acre park. The final design, use andrehabilitation of the Roth Building will include a historic analysis for conformance with the Secreta~; of the Interior’s Standards for Rehabilitation 0f Historic Structures. ATTACHMENTS Attachment A: Budget Amendment Ordinance Attachment B: Budget Amendment Ordinances Impacting the General Fund Reserves Approved-To-Date in 2002-03 PREPARED BY: DEPARTMENT HEAD: Senior Project Manager GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager CMR:228:03 Page 3 of 3 ATTACHMENT A ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2002-03 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $245,000 FOR SUPPLEMENTAL FUNDING TO COMPLETE THE DEMOLITION PROJECT OF CAPITAL IMPROVEMENT PROG~ PROJECT 10304,ROTH BUILDING WINGS DEMOLITION The Council of the City of Palo Alto does ORDAIN as follows: SECTION i. The Council of the City of Pa!o Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article iii of the Charter of the City of Palo Alto, the Counci! on June 17, 2002 did adopt a budget for fisca! year 2002-03; and B. In April 2000, City Council approved the purchase of the Roth Building for potential use as a public facility in the proposed South of Forest Area park; and C. In acquiring the Roth Building, the City entered into a deve!opment agreement with Pa!o Alto Medical Foundation which, amongst other conditions, stipulates that the City must complete demolition of the non-historic Roth Building wings by July 19,2003; and D. In 2001, staff estimated the demolition of the Roth Building Wings at $930,000 using unit costs as no design had been prepared; and E. The $930,000 amount included the design., the asbestos abatement, the building demolition, the structura! bracing and enclosure of the spine, and the dirt backfill of the hole left by the removal of the wings; and F. in FY 2002-03, the City Counci! approved the creation of CIP 10304, Roth Building Wings Demolition, with an appropriation of $930,000; and G. in January 2003, the bids came in higher for the demolition project because there is a substantial amount of structural work required to enable the spine to withstand earthquake forces; and H. This project requires an additiona~= appropriation of $225,000 for retrofit work plus another $20,000 as a design contingency to allow a preservationist architect to review the plans and make recommendations; and i. The total additional appropriation to capital improvement program project 10304 is $245,000; and J. The additional appropriation of funds from the General Fund Budget Stabilization Reserve is a one-time cost and no future _~ i ~ ;v-ear Genera! Fund ongoing costs are anL_c_paLed and K. City Council authorization is needed <o amend the 2002-03 budget as hereinafter set forth. SECTION 2. The sum of Two Hundred Forty-Five Thousand Dollars ($245,000) is hereby appropriated to Capital improvement Project No. 10304, and the Genera! Fund Budget Stabilization Reserve is correspondingly reduced. SECTION 3. This transaction wil! reduce the Genera! Fund Budget StabilizaLlon~’ Reserve __from $21,376,867 to S2~,~37. _ _ _, 867. SECTION 4. As specified in Section 2.28.080(a) of :he Pa!o Alto Hunicipa! Code, a two-thirds vote of the City Council is remuired to adopt this ordinance. SECTION 5. The City approved a Fina! Environmental impact Report for the Counci! adoption of the SOFA CAP Phase i and approva! of the Deve!opment Agreement with PAMF. Bonh actions included the retention of the historic Roth Building, demolition of the 1947 wings, and development of a two-acre park. // // // / / // SECTION 6. Municipal Code, adoption. INTRODUCED: PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: City Clerk APPROVED AS TO FORM: As provided in Section 2.04.350 of the Pa!o Alto this ordinance shal! become effective upon Mayor APPROVED: City Attorney City Manager Director o{ Public Works Director of Administrative Services 3 City of Palo Alto A’ffACHMENT B ATTACHMENT B Budget Amendment Ordinances Impacting General Fund Reserves Approved-To-Date in 2002-03 BAO Description Cost Revenue Placeholdere Already in t~e Impact on t~e Estimated General Fund Future Year2002-03 Adopted BSR Ongoing CostsBudget Balance Adopted Budget Projected Changes to BSR City’s Contribution to the Cost of the Sound Wall for the Tennis Facility at 3005 Middlefield Road Reimbursement for Je~Tsh Community Center for refurbishing costs to Cubberley Community Center Title Insurance for Terman and Cubberley Mid.Year BAO Roth Building Wings Demolition BAO (S60,000) ($50,000) ($37,000) ($36,332) ($1,203,801) ($MS,000) $22,764,000 ($60,000) ($50,000) ($37,000) ($36,332) ($1,203,801) ($245,000) BSR Balance After BAO’s [ $21,131,867 ]