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Home My WebLink About2001-06-25 City Council (8)City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS 4 DATE:JUNE 25, 2001 CMR:264:01 SUBJECT:APPROVAL OF BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF $250,000 TO CREATE CAPITAL IMPROVEMENT PROGRAM PROJECT .10125, , ROTH BUILDING WINGS DEMOLITION AND SEISMIC BRACING PROJECT RECOMMENDATION Approve a Budget Amendment Ordinance (BAO) to create and fund Capital Improvement Program Project 10125, Roth Building Wings Demolition and Seismic Bracing, in the amount of $250,000 from a transfer of funds from CIP Project 18508, Public Buildings Structural Improvements. BACKGROUND The City recently entered into a development agreement with the Palo Alto Medical Foundation (PAMF) in which the City acquired certain land formerly owned by PAMF in the South of Forest Area. One of the parcels the City acquired is located on the comer of Bryant and Homer Streets and includes the historic Roth Building. The Roth Building consists of an original, historic 2-story medical office building built around 1931 and two non-historic 2-story wings with a basement added around 1947. DISCUSSION Per the conditions of the development agreement, the City will consider various community uses for the historic portion of the Roth Building, but must demolish the non- historic wings. To accomplish the demolition, it is necessary to first remove the hazardous materials contained in the wings, consisting of asbestos-containing building materials and lead-based paint. Staff feels that it is appropriate to remove hazardous materials from the original Roth Building as well in anticipation of its reuse. Accordingly, the City has entered into an agreement with ProTech Consulting and Engineering to conduct testing of building materials and to produce plans, specifications and an estimate for the abatement of asbestos and lead paint in the Roth Building. ProTech has performed this work and p~ovided a preliminary estimate of $125,000 for the abatement work. CMR:264:01 Page 1 of 4 The development agreement does not require the City to demolish the basement under the wings of the RothoBuilding, but the City may decide that this is appropriate. In that regard, the City has entered into an agreement with Stoecker and Northway Architects to analyze the basement to see if it is structurally and architecturally suitable for reuse. Stoecker and Northway have performed this analysis and have determined that the basement can be reused, but, depending upon what will be placed on top of the basement, such as a park, landscaping, a plaza, or a parking lot, extensive and costly renovation may be required. The next steps will be to: 1.Put plans and specifications for the hazardous materials abatement of the Roth Building out to public bid and enter into a construction contract. Amend the agreement with ProTech to enable it to provide construction support services during the abatement work. o Develop plans and specifications for the demolition of the non-historic wings (and potentially the basement). Design the bracing and enclosure structures to maintain structural integrity and protect the original Roth Building from weather. o Enter into a construction contract to demolish~ the non-historic wings (and potentially the basement) and provide the bracing and enclosure of the original Roth Building. The cost of this work will be estimatcd upon completion of design. Staff will request a Budget Amendment Ordinancc at that time to fund construction work. Concurrent or subsequent to the above actions and per the conditions of the development agreement, it will be necessary for the Cit\’ to determine if there is a financially feasible community use for the Roth Building. If so. the City will proceed with the design and construction of the necessary improvements to make the building suitable for the chosen use. If not, the City may elect to sell the building for private purposes. RESOURCE IMPACT The attached BAO requests an appropriation of $250,000 for CIP Project 10125. This expense will be fully offset as the result of transferring funds from CIP Project 18508, Public Buildings Structural Improvements. This project has a remaining balance of $442,094, of which $250,000 can be transferred to CIP Project 10125~ The purpose of project 18508 is to design and construct structural improvements to public buildings on an as-needed basis. Staff has assessed the conditions of City buildings and has determined that the Roth Building work described above is the most appropriate use of these funds at this time. Staff further recommends the creation of CIP Project 10125 to capture the expenses associated with the Roth Building. CMR:264:01 Page 2 of 4 Staff has further determined that there is no immediate need for the remaining $192,094 in CIP Project 18508, and recommends that this amount be returned to the General Fund. There are ongoing future year resource needs anticipated as a result of this BAOI These future year costs are unknown at this time. There are also future one-time costs, some of which are identified below and some of which will be identified when Council approves the preferred alternative for the use of the building. Construction contract to abate hazardous materials Amendment to ProTech agreement Design of demolition and temporary bracing plans Contingency TOTAL $125,000 5,000 75,000 45,000* $25O,O0O *A higher than typical contingency is being requested as final estimates for the hazardous materials abatement and design of the demolition and temporary bracing will not be prepared until later. No money was budgeted for this project during the last budget cycle because the City acquired the building after the 2000-01 Budget was adopted. Since demolition of the non-historic wings is dictated by the development agreement with PAMF, .it is necessary to start demolition efforts as soon as possible. POLICY IMPLICATIONS This recommendation does not represent any change to existing City policies. TIMELINE Staff intends to proceed with the design and construction of the hazardous materials abatement of the Roth Building this summer. Plans and demolition of the non-historic wings of the Roth Building will occur before July 2003 as required by the development agreement with PAMF. ENVIRONMENTAL REVIEW The hazardous materials abatement work at the Roth Building as well as the demolition of the non-historic wings are covered in the South of Forest Area Coordinated Area Plan Environmental Impact Report. ATTACHMENTS Attachment A: Budget Amendment Ordinance Attachment B: Capital Project Description BOB MORRIS Senior Project Manager CMR:264:01 Page 3 of 4 DEPARTMENT HEAD: GLENN S. ROBERTS Director of Public Works CITY MANAGER APPROVAL: EMILY HARRISON Assistant City Manager CMR:264:01 Page 4 of 4 ORDINANCE NO. ATTACHMENT A ORDINANCE OF THE COUNCIL OF THE .CITY OF PALO ALTO AMENDING THE BUDGET FOR ,THE FISCAL YEAR 2000-01 TO APPROVE A TRANSFER OF $250,000 FROM THE PUBLIC BUILDINGS STRUCTURAL IMPROVEMENTS CAPITAL PROJECT, NUMBER 18508, TO THE ROTH BUILDING WINGS DEMOLITION AND SEISMIC BRACING. CAPITAL PROJECT, NUMBER 10125 WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 19, 2000 did adopt a budget for fiscal year 2000-01; and WHEREAS,pursuant to the development agreement with the Palo Alto Medical Foundation (PAMF), the City must develop plans to demolish the non-historic wings of the Roth building; and WHEREAS, to accomplish the demolition, it is first necessary to remove the hazardous materials contained within the wings; and .WHEREAS, staff has determined that to maintain the structural integrity of the Roth building, it is also necessary to design and construct bracing and enclosure structures; and WHEREAS, CIP Project 18508, Public Buildings Structural Improvements was .created to design and construct structural improvements to public buildings~on an as-needed basis and staff has determined that the Roth Building work is the most appropriate use of these funds at this time; and WHEREAS, the budget needs to be amended to create a capital improvement project to abate the hazardous materials and design the bracing and enclosure structures in the Roth Building; and WHEREAS, the additional appropriation of funds will derive from a transfer of funds from CIP Project 18508, Public Buildings Structural Improvements, which has a remaining balance of $442,094; and WHEREAS, this is a one-time cost and no future year ongoing costs are anticipated; and WHEREAS, City Council authorization is needed to amend the 2000-01 budget as hereinafter set forth. NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. Capital Improvement Project (CIP) 10125, Roth Building Wings Demolition and Seismic Bracing, is hereby created. SECTION 2. The sum of Two Hundred Fifty Thousand Dollars ($250,000) is hereby transferred from Capital Improvement Project Number 18508 to the appropriation for Capital Improvement Project Number 10125. SECTION 3. This transaction will reduce the amount appropriated to CIP Project 18508 from $442,094 to $192,09.4. SECTION 4. As specified in Section 2.28,080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 5. This project was included within the scope of the South of Forest Area Coordinated Area Plan, which was certified by the City Council by adoption of Resolution No. 7950 on March 27, 2000. SECTION 6. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM:City Manager Senior Asst. City Attorney Director of Services Administrative Director of Public Works ATTACHMENT B PROJECT DESCRIPTION This project will provide for the testing of building materials, the production of plans and specifications, and an estimate for the abatement of asbestos and lead paint in the Roth Building, This project will also develop plans and specificationsfor the demolition of the non,historic wings and design the bracing and enclosure structures to maintain the structura! integrity of the original Roth Building. Upon the completion of hazardous materials abatement, the City will then design and construct the demolition of the .wings as well as the temporary bracing and enclosure where the wings, connect to the original Roth Building. Eventually, the City may design and construct the remodeling of the Roth Building for use as a community facility. PROJECT JUSTIFICATION The City recently purchased the historic Roth Building at the comer of Homer and Bryant Streets per a development agreement between the City and the Palo Alto Medical Foundation. One of the conditions of the ¯ agreement is that the City must demolish the non-historic wings of the Roth Building. In order for the City to demolish the Roth Building wings, the City must first remove the hazardous materials (asbestos-containing building materials and lead-based paint) in the building. FUTURE FINANCIAL REQUIREMENTS¯ FISCAL YEAR PY Budget 2000-01 2001-02 2002-03 2003-04 2004-05 AMOUNT $250,000 TBD TBD TBD TBD COMPONENTS Hazardous materials abatement, design of bracing and enclosure Design demolition of wings, bracing and enclosure Demolish wings, construct bracing and enclosure Potential design of Roth Building remodel Potential design/construction of Roth Building remodel Sources of Funding: General Fund IMPACT AND SUPPORT ANALYSIS Environmental:This project was included within the scope of the South of Forest Area Coordinated Area Plan, which- was certified by the City Council by adoption of Resolution No. 7950 on March 27, 2000. *Design Elements:None *Operating:None ¯Telecommunications:None COMPREHENSIVE PLAN The Comprehensive Plan contains no policies or programs directly related to this project. 451