HomeMy WebLinkAbout2003-05-12 City Council (2)TO:
FROM:CITY MANAGER
City of 7alo Alto
City a ager Report
DEPARTMENT: PUBLIC WORKS
DATE:MAY 12, 2003 CMR:279:03
SUBJECT:APPROVAL OF A BUDGET AMENDMENT ORDINANCE IN THE
AMOUNT OF $275,000 TO SUPPLEMENT CAPITAL
IMPROVEMENT PROGRAMPROJECT 10304, ROTH BUILDING
WINGS DEMOLITION ANDAPPROVE USING CURRENTLY
AVAILABLE FUNDS TO CONSTRUCT AN INTERIM SOUTH OF
FOREST AVENUE PARK
RECOMMENDATION
Staff is forwarding for approval, 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 $275,000, to provide the necessary funding to
complete the demolition project; and requesting approval of the use of funding currently
available in CIP Project 10218, South of Forest Avenue (SOFA) Park, to construct an
interina SOFA Park.
BACKGROUND
In April 2000, the City Council approved the purchase of the Roth Building for potential
use as a public facility in the proposed SOFA Park. The Roth Building consists of the
original, historic 1931 building and a 1947 addition. In acquiring the Roth Building, the
City entered into a development a~eement with Palo Alto Medical Foundation. A
provision of this ageement stipulates that the City will acquire 2.41 acres of land
adjacent to and including the Roth Building for use as a neighborhood park. Another
provision stipulates that the City must complete demolition of the "non-historic Roth
Building wings" by July 19, 2003. See Attachment C for a site plan of the Roth Building
and the proposed SOFA Park.
Roth Buildin~ Win~s Demolition
In 2001, staff estimated the demolition of the Roth Building wings at $930,000. This
figure included the design, asbestos abatement, building demolition, structural bracing
and enclosure of the spine, and dirt backfill of the hole left by the removal of the wings.
Accordingly, staff proposed and Council approved the creation o~: CIP #10304, Roth
Building Wings Demolition, in the amount of $930,000 for FY 2002/03.
CMR:279:03 Page 1 of 5
In October 2002, the City Manager and Sunm~erHill Homes entered into an ageement in
which SummerHill Homes will provide the design, contract for the asbestos abatement,
demolition and construction, and provide the general contracting and project management
of the Roth Building Wings Demolition project. In return, the City will reimburse
Sunm~erHi!l Homes for all of the design and contract costs and allow SummerHill Homes
to extend the use of its staging area for its adjacent residential project until December 31,
2003. As part of this ageement, SunnnerHill Homes provided the Ci~; with a check for
$30,350. This amount represents the savings 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 passed on April 21, 2003, the City
appropriated 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. Professional consultants working for
SummerHill Homes completed the desiN~ of the demolition project in January 2003 and
SummerHill Homes then bid the project to local contractors. SummerHill Homes
received multiple bids in most of the major trades and selected the lowest bid in all of the
trades except one (Lawson Roofing was chosen even though its bid was slightly higher
($50,718 vs. $49,148) than the low bidder’s because it possessed better qualifications).
The low bids totaled $967,272, but when added to the design, asbestos abatement, and
construction contingency costs, the total is about $1,185,000, or about $225,000 over
budget. The reason the bids came in over budget was the substantial amount of structural
work, about $600,000, required to retrofit the spine to the current code requirements. See
Attachment D, Bid Summary of Roth Building Wings Demolition Project.
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 were 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 reconm~endation and instead directed staff to take the additiona!
funds required to proceed with the cmTent project from Genera! Fund reserves.
On April I4, 2003, staff presented a BAO to Council in the amount of $245,000 to
supplement CIP #10304, Roth Building Wings Demolition. Of this additional budget,
$225,000 was requested to complete the demolition and construction. Another $20,000
was requested by staff as a contingency to allow a preservationist architect to review the
plans and make recommendations for the protection of the remaining building and its
features during demolition. The BAO did not garner enough votes to pass.
CMR:279:03 Page 2 of 5
On April 21 and May 5, 2003, Council held closed sessions to discuss the Roth Building
Wings Demolition project.
SOFA Park
In Fiscal Year (FY) 2001/02, CIP #10218, Palo Alto SOFA Park, was approved for
$111,000 for landscape architectural services and exterior painting and securit), of the
Roth Building. In the Adopted 2002-07 CIP, this budget was supplemented with
$125,000 for park design in 2002/03. Of the $236,000 that has been budgeted the last
two fiscal years, approximately $15,000 has been spent on maintaining and mothballing
the Roth Building, leaving a current balance of about $221,000.
DISCUSSION
Roth Buildin~ Win~s Demolition
The proposed BAO would pay for demolition of the Roth Building wings and retention of
the spine. Staff recently entered into a contract for $4,600 with Garavaglia Architecture
to provide architectural presetwationist services for the Roth Building Demolition Project.
Garavaglia is familiar with the Roth Building and has previously provided historic and
prese~wationist architectural sexwices for the City’s Planning Depamnent. Garavaglia has
provided a list of character defining features of the Roth Building and has recommend
protection measures for these features to be incorporated into the plans. Staff has not had
time to review the protection measures nor to estimate their costs, however, it is apparent
that the protection measure will most likely exceed the $20,000 contingency staff had
previously anticipated for this work. Accordingly, staff now requests another $30,000 to
allow for protection measures and project contingencies.
The demolition project is now scheduled to be completed in October 2003.
Interim SOFA Park
Staff has held discussions with representatives from the SOFA neighborhood and
informed them of the City’s intent, due to the City’s current budget problems, to postpone
construction of the permanent SOFA Park. The neighborhood goup expressed its desire
to have a park constructed soon. Accordingly, staff recommends redirecting the balance
of the budget in CIP #10218, about $221,000, for the design and construction of an
interim SOFA park.
The interim SOFA park would be constructed in the Spring of 2004. The project will
involve the removal of the asphalt parking lot, ~ading the site level, and installing an
irrigation system and lawn. Existing trees would be kept. The park would provide users
with a large recreation field. The interim park would be used until the permanent park
can be budgeted, desi~ed and constructed at a later date.
CMR:279:03 Page 3 of 5
RESOURCE IMPACT
When this BAO is processed, the new budget for the project will be:
Original budget $930,000
SunmaerHill Homes contribution/Mid-Yr BAO $30,350
BAO- amount needed to complete current project $275.000
TOTAL $1,235,350
The attached BAO (Attachment A) requests an increase in expenditures of $275,000 from
the Infrastructure 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. Staff has deleted the
Terman Library and Wing 30 Improvements project, estimated at $402,000, from the 10-
year IMP to allow for the Infrastructure Reserve funding of this BAO. It is important to
note that the Infrastructure Reserve wil! have a $9.6 million drawdown in FY’s 2003-05.
Completion of the demolition of the Roth Building wings cannot meet the July 19, 2003,
deadline in the Development AN’cement. The current schedule indicates completion of
the project will occur in October 2003. SunvnerHill Homes will most likely request
compensation from the Cit3~ for this delay. Staff is currently negotiating this potential
compensation with SummerHill Homes and will report to Council the outcome of these
discussions.
Attachment B summarizes the BAO’s approved to date in FY 2002-03 that impact the
General Fund Infrastructure Reserve.
POLICY IMPLICATIONS
This reconvnendation does not represent any change to existing City policies.
ENVIRONMENTAL REVIEW
The Ciu approved a Final Environmental Impact Report forthe 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
addition (including the spine), and development of a two-acre park.
The final design, use and rehabilitation of the original Roth Building will include a
historic analysis for conformance with the Secretary of the Interior’s Standards for
Rehabilitation of Historic Structures.
ATTACHMENTS
Attachment A:Budget Amendment Ordinance
Attachment B:Budget Amendment Ordinances Impacting the
Infrastructure Reserve Approved-To-Date in 2002-03
Attachment C: Site Plan of Roth Building and .Proposed SOFA Park
General Fund
CMR:279:03 Page 4 of 5
Attachment D: Bid Sunm~ary of Roth Building Wings Demolition Project
Attachment E: Options Regarding Spine of the Roth Building
PREPARJED BY:
DEPARTMENT HEAD:
Senior Project Manager
GLENN S.
Director of Public Works
CITY MANAGER APPROVAL:
HARRISON
Assistant City Manager
CMR:279:03 Page 5 of 5
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 $275,000 FOR
SUPPLEMENTAL FUNDING TO COMPLETE THE DEMOLITION PROJECT
OF CAPITAL IMPROVEMENT PROGRAH PROJECT 10304,ROTH
BUILDING WINGS DEMOLITION
The Council of the City of Palo Alto does ORDAIN as follows:
SECTION !. 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 fiscal year 2002-03; and
B. In Apri! 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 Palo 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 remova! of the wings; and
F. In FY 2002-03, the City Council 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 $50,000 as a design
contingency to allow a preservationist architect to review the
plans and make recommendations; and
i. The tota! additiona! appropriation to capita! improvement
program project 10304 is $275,000; and
J. The additional appropriation of funds from the General
Fund infrastructure Reserge is a one-time cost and no future year
General Fund ongoing costs are ant_clparea; and
K. City Counci! authorization is needed to amend the 2002-03
budget as hereinafter set forth.
SECTION 2. The sum of Two Hundred Seventy-Five Thousand
Dollars ($275,000) is hereby appropriated to Capita! improvement
Project No. 10304, and the Genera! Fund infrastructure Reserve is
correspondingly reduced.
SECTION 3. This transaction will reduce the General Fund
infrastructure Reserve from $31,294,700 to $31,019,700.
SECTION 4. As specified in Section 2.28.080(a) of the Ra!o
Alto Hunicipa! Code, a two-thirds vote of the City Council is
required to adopt this ordinance.
SECTION 5. The City approved a Final Environmental impact
Report for the Counci! adoption of the SOFA CAP Phase i and
approval of the Deve!opment Agreement with P~]~F. 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 and rehabilitation of the original Roth
Building wil! include a historic analysis for conformance with the
Secretary of the Interior’s Standards for Rehabilitation of
Historic Structures.
//
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SECTION 6.
Hunicipal Code,
adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:
City Clerk
~PROVED AS TO FORM:
As provided in Section 2.04.350 of the Pa!o Alto
this ordinance shall become effective upon
Mayor
APPROVED:
City Attorney City Manager
Director of Public Works
Director of Administr=~!ve~’--
Services
ATTACHMENT B
Budget Amendment Ordinances Impacting Infrastructure Reserve Approved-To-Date in 2002-03
Balance
Mid-Year BAO
Roth Building Wings Demolition BAO
$30,189,000
$1,105,700
($275,000)
Reserve Balance After BAO’s [ $31,019,700
ATTACHMENT C
ATTACHMENT D
ROTH BUILDING WINGS DEMOLITION
BID AND PROJECT COST SUMMARY
NO. OF
TRADE SUBCONTRACTOR BIDS LOW BID ALLOW TOTAL
ASBESTOS ABATEMENT
Monitoring Consultant Protech Consulting, Redwood City $9,805!$9,805
Coordination SummerHill Homes, Palo Alto $2,800 $2,800
Abatement Contractor i Restec Contractors, Hayward 1 $66.320i $66.320
Subtotall $76,125! $2,800i $78,925
DESIGN
Architect (incl. structural engineer)
Structural Engineer (for shoring)
Soils Engineer
INSPECTION
Special Inspection
Roofing Inspection
Waterproofing Inspection
Hazardous Materials Inspection
Soils Monitoring
DEMOLITION & BACKFILL
Concrete Sawcutting
Salvage
Demolition
Backfill & Grading
STRUCTURAL
Concrete Caissons
Concrete/Shotcrete
Structural Steel
Carpentry
ENCLOSURE & MISC
Scaffolding
Stucco
Caulking
Roofing
Painting
Elevator
Plumbing
1
1
4
3
Stoecker & Northway, Palo Alto
Rinne & Peterson, Palo Alto
i Lowney Associates, Mt. View
Subtota!l
I Smith-Emery, San Francisco
tHirsch, Wright & Assoc, Oakland
iSimpson Gumpertz & Heger, SF
i Levine Fricke, Emeryville
I Lowney Associates, Mt. View
Subtotal
3
2
2
1
Mechanical, Sheet Metal 1
General Conditions
Jamco, Redwood City
i Restec Contractors, Hayward
Ferma Corp, Mt. View
IO.C. Jones & Sons, Berkeley
Subtotal!
!Malcolm Drilling, Hayward
’,Palo Alto Ooncrete, Palo Alto
Summit Steel Works, Mt. View
IVance Brown Builders, Mt. View
Subtotal
iAdvanced Scaffold, Menlo Park
iAnning-Johnson, Hayward
iSummerHill Homes
’,Lawson Roofing, SF
iRMC Painting, Burlingame
’[Otis
iSummerHill Homes
! Lefco, Sunnyvale
SummerHill Homes
Subtotal
S81,040t
$19,000!
S2.95ot
$102,99ol
$3o,0571
s8,o6o!
SlO,O0Oi
CONTINGENCIES
Construction Contingency
Protection Measures
$13.4001
$61,517i
s16,50oi
$20,540
$89,350!
$56.315I
$182,7051
SlO3,8oo!
$275,000!
$93,690i
$79.085i
s551,575i
1 $4,250i
1 $25,374!
2
1
1
S50,718i
$4,560]
$10,798i
$18.6051
$114,305!
$5.000
S5,000i
$5.000
s5,ooot
s2,5oo1
s2,oool
S3.300i
$7,800
$60,000
$30.000
$90,000
$81,040
$19,000
$2.950
$102,990
$30,057
$8,060
$10,000
$5,000
$13.400
$66,517
$16,500
$20,540
$89,350
$56.315
$182,705
$103,800
$275,000
$98,690
$79.085
$556,575
$4,250
$25,3741
$2,500!
$50,718
$4,560:
$2,000i
$3,300
$10,798
$18.605
$122,105
$60,000
$30.000
$90,000Subtotal
DESIGN & CONSTRUCTION TOTAL ’:SummerHitl Homes $1,089,217i $110,600i $1,199,817
CITY COSTS i t ~ $36,000
PROJECT TOTAL i ! $1,235,817’
S:Morris\Roth Bldg\Bid summary, Last updated 5/6/03
ATTACHMENT E
ROTH BUILDING SPINE OPTIONS
OPTION 1
COST ESTIMATES
Current plan, structurally reinforce spine to Code
Ori.qinal bld.ql Spine { Win.qs
n/a n/a ’ $600,000i
n/a $600.000i n/a
!$600,000’, $600,0001
$2,000,000i $800,000i n/a
$3.000.000i $2,100,000i n/a
$5,000,000i $2,900,000~
$5,000,000!$3,500,0001 $600,000
Current Project
Demolition
Seismic upgrade
Subtotal
Future Proiect
Seismic, MEP, exterior upgrades
I Interior renovation, FF&E
Subtotal
TOTAL
$600,000
$600.00___O
$1,200,000
$2,800,000
$5.100.000
$7,900,000
$9,100,000TOTALi
17,000 sf
$535/sf
OPTION 2
Current proiect
Demolition (& temporary stairs)
Seismic upgrade
Subtotal
Future Proiect
Seismic, MEP, exterior upgrades
Interior renovation, FF&E
Subtotali
TOTALI
Spine
$150,000
n/a
$150,000
Ori.qinal bld,q i
n/a I
n/a t
$2,000,000]
$3.000.000i
$5 000,000i
$5,ooo,ooo!
Demolish spine and wings
I Win.qs i TOTAL
15600,000 $.750,000
t n/a !nla
i $600,000i $750,000
n/a n/a!$2,000,000
n/a!n/ai $3.000,000
i $5,000,000
$150,0001 $600,000i $5,750,000
10,000 sf
$575/sf
OPTION 3
Current Project
Demolition
Temporary reinforcement
Subtotal
Future Project
Seismic, MEP, exterior upgrades j
Interior renovation, FF&E
Subtotal
TOTALi
! Ori.qinal bld.q i
n/a
I n/a
Temporary reinforcement of spine
Spine Win.qs i TOTAL
n/a i $600,000!$600,000
$300.000
$900,000
s3oo,oooi
$300,000,
$2,ooo,oooi $1,5oo,oooi
S3.000,000! S2.100,000!
S5000,000i S3,600,000
$5,000,000i $3,900,000i
n/a
$6oo,ooo!
nta
n/a
S6OO,OOOl
$3,500,000~
$5.100,000
$8,600,000
$9,500,000
17,000 sf
$559/sf
OPTION 4 i Demolish spine and wings;
Current project i Ori.qinal bld.q ! Spine/Add’q. { Winqs
Demolition (& temporary stairs)n/a :$150,000i $600,000i
Seismic upgrade n/a n/a n/a
Subtotal i $150,0001 $600,000i
Future Project.~~1 I I~
Seismic, MFP, exterior upgrades i $2,000,000!n/al
Interior renovation, FF&E $3,000,000i nla !
7,000 sf addition {n/a.’,n/a!
Subtotal $5.000,000i
$5,000,000~
n/ai
$2.8oo,ooQ.!
$2,800,0001
build addition
TOTAL
$750,000
n/a
$750,000
$2,000,000
$3,000,000
$2.800.000
$7,800,000
17,000 s~
TOTAL{$2,950,000 $600,0001 $8,550,000! $503/sf
S:Morris\Roth Bldg\Options estimates, Last updated 5/5/03