CITY COU NC IL
Staff Report
Meeting Date:
To:
From :
Staff Contact:
March 22, 2022
Mayo r and City Council
Scott Chadwick, City Manager
Paz Gomez, Deputy City Manager, Public Works
[email protected], 442-339-2751
John Maashoff, Public Works Manager
joh [email protected], 442-339-2856
CA Review AF
Subject : Authorization of Additional Appropriation for the Temporary Fire Station No. 7 Project
District : 2
Recommended Action
Adopt a resolution authorizing an appropriation of $922,000 from the Public Facility Fee Fund for the Temporary Fire Station No. 7 Project, Capital Improvement Project, No. 4091.
Executive Summary
On May 11, 2021, the City Council adopted Resolution No. 2021-111, approving the work plan to achieve the City Council goal of "Bring the Fire Department into conformance with standards of cover evaluation."
Objective #2 of the work plan states:
Staff a temporary Fire Station, or FS, No. 7 in the area of Cannon Road west of lnterstate-5, or 1-5, with an estimated completion date of January 2023 and procure a new fire engine with an estimated completion date of January 2023.
On June 8, 2021, the City Council approved this project, CIP Project No. 4091, and appropria ted $900,000 to build temporary Fire Station 7. This work includes preparing the selected site and moving two city-owned temporary structures from the temporary Fire Station 2 site, next to the City Library on Dove Lane, to the chosen site west of 1-5.
Due to various reasons, including a change of location from the original proposed sites, unanticipated utility costs, material cost increases due to inflation, additional operational needs, more granularity on consultant fees, and license costs, the estimated total project cost is now $1,821,614. To date, $37,844 has been expended or encumbered for permit applications and consultant support, leaving an estimated tota l remaining project cost of $1,783,770 .
Staff request the City Council authorize the appropriation of $922,000 from the Public Facility Fee Fund to the project to cover this difference. City Council authorization is required to appropriate additional funds to the Capital Improvement Program project budgets.
March 22, 2022 Item #7 Page 1 of 10
Discussion
Identifying a site
Before staff's May 11, 2021, presentation to the City Council, staff had identified two potential sites for the temporary Fire Station 7:
1. A city-owned future park site property
west of the railroad tracks, south of
(::annon Road
2. A triangular parking lot east of Carlsbad
Boulevard, north of Cannon Road and
just north of Cannon Park owned by San
Diego Gas & Electric
However, for a combination of reasons,
including environmental concerns and the
uncerta inty of timel ines associated with the
SDG&E site, staff determined those sites could
not be made ready to accommodate a
temporary fire station by the January 2023
target, as outlined in the Council goal.
Staff then identified a third site, on the NRG
property around the power plant. The site is at
4600 Carlsbad Blvd., east of Carlsbad Boulevard and just south of the Agua Hedionda Lagoon, as shown in the map in Exhibit 2.
Staff considered a warehouse and an administrative building that NRG intended to demolish as possible temporary homes for the fire station. However, because of the high cost of alterat ions and additional costs associated with demolition of other buildings that would be required, this plan was also abandoned.
Staff now plan to create a temporary fire station
by using the city-owned structures currently
being used for temporary Fire Station 2. These
structures, a trailer and a Sprung structure -
Sprung is the brand name for a type of movable
building made of fabric tautly stretched over a
frame - are now in the parking lot next to the
City Library. They would be relocated onto the
concrete pad left after the recent demolition of
the NRG warehouse building. The site of the
administrat ion building, which has yet to be torn
down, is to serve as the yard to lay down fire
hoses. The Sprung structure will be expanded in
size from 1,600 square feet to 3,200 square feet,
A second trailer for sleeping quarters of
approximate ly 1,404 square feet will be procured
and placed next to the city-owned trailer.
March 22, 2022 Item #7 Page 2 of 10
City staff are currently working with NRG's staff to reach agreement on the terms of and to draft a license agreement for the city's use of the site, the adjacent pavement, ingress, egress to the site and access to a rescue watercraft area. This proposed agreement will be presented for the City Council's consideration in a future staff report.
Permitting requirements
The Community Development Department determ ined that the anticipated fire and lifeguard services is a condit ionally permitted use under the current zoning on the property. That means placing the tra ilers and Sprung structure on the site requires approval of an administrative conditional use permit for mobile build ings issued by the city as well as a coastal development permit issued by the California Coastal Commission.
Community Development issued the conditional use permit Dec. 20, 2021, a month after the application was filed. The coastal development permit application, however, which was submitted Jan. 21, 2022, and was deemed complete on Feb. 22, 2022, {application 6-22-0071) is still being reviewed by Coastal Commission staff and has yet to be_ scheduled for a hearing for the commission's consideration.
While the city had control over the permit processing time for the conditiona l use permit, the city has no control over the Coastal Commission's review schedule. To help expedite the Coastal Commission's review, city st aff have held preliminary meet ings with the comm ission's staff and intend to continue those discussions until the perm it is approved.
Estimated costs and timelines
Staff estimate a design and construct ion cost of approximate ly $1.5 million to relocate the structures from temporary Fire Station 2, expand the Sprung structure, procure a second housing trailer and repair and/or relocate the utilities .
Additionally, an estimated cost of $200,000 in current dollars has been identified for the future removal of the temporary Fire Station 7 structures . This is required by the proposed license agreement with NRG and is expected to occur in 96 months or less, dependent on whet her any or all options are exercised. Because the removal of the temporary structures is not expected to occur for at least six years and potentially longer, this $200,000 estimate has been escalated using a 7% escalation factor per year to an estimate of $345,000 in 96 months. Staff are not requesting the City Council appropriate this estimated $345,000 now, but staff identified it as a cost the city must fund in the future as part of the construction costs of the permanent Fire Station 7.
The draft license agreement currently includes an annual license fee payment of $30,000, subject to 3% annual increases -which would total $266,770 over eight yea rs - as well as the costs of connecting all necessary utilities and subsequent annual operational utility expenses.
However, the license agreement is still in draft form and the final terms of the license agreement, including the annual license fee amount, may be somewhat different. (As noted above, the license agreement will be presented to the City Council for its consideration in a future staff report.)
If the City Council authorizes the license agreement with NRG, staff will then begin developing the plans, specifications and contract documen ts for relocating the tempora ry structu res from temporary Fire Station 2, expanding the Sprung structure, procuring a second trailer and March 22, 2022 Item #7 Page 3 of 10
connecting the needed util ities . This work has a target comple t ion date of January 2023, in accorda nce with Objective #2 of the work plan.
This timeline is dependent on the city receiving the cond itional development permit from the Coastal Commission at least before late summe r 2022. If the comm ission does not approve t he permit by then, this timeline will need to be adjusted.
This timeline might also need to be adjusted if there are any delays to the ongoing constructio n project of Fire Stat ion 2, which would delay t he availability of the temporary Sprung st ructure and trailer.
Reasons for cost increases
In spring 2021, when staff prov ided an estimate of $900,000, t here were many unknowns t hat influenced the estimate and many assumptions did not come to fru ition.
Staff were initial ly consider ing two sites, includi ng a city-owne d parcel. After closer review of the two original proposed sites, it became clear that they were not viable options. The proposed NRG site became the lead site, but estimated lease costs of $266,770 over a period of 96 months were not antic ipated in spring 2021. The selected site also has some water , sewer and electrical ut ility issues including a need to reconstruct a lift stat ion, which were not previously anticipated.
The additional lift stat ion costs for design and construction are estimate d to be $211,000.
Additionally, material costs increased substantially for the additional temporary structures.
Initially, t he temporary structures at temporary FS No. 2 were to be relocated at minimal cost.
The increase in costs for t he additional temporary structures is approximately $111,000 and can be attributed to inflation, material cost increases, supply chain issues and more granularity of the specifi c needs.
The origina l estimate also did not include a 10% construction contingency estimate. Now that staff have more certainty in the proposed site location, more granular ity in the design and const ruction scope of work and actual quotes from consultants and vendors , a more realist ic cost est imate has been developed .
The original estimate of $900,000 also did not include the cost of removing the tempora ry structures at the end of the license term, as required by the terms of the license. Therefore, staff identified an estimate of $200,000 in current year dollars for demoli t ion, wh ich is estimated to be $345,000 in 96 months at the end of the license agreement if all options are exercised. Fut ure appropriat ion will be require d for t he removal of the temporary structures at the end of t he license term, which will be included as part of the costs of construc t ing t he perma nent FS No. 7.
Staff request authorization of an appropr iation of $922,000 from the Public Facility Fee Fund to t he project.
Proposition H consideration
Proposition H, a citizen-led initiative approved by voters in 1982 and codified as Chapter 1.24 of the Carlsbad Munic ipal Code, established certa in limits on city spending from its General Fund.
Section 1.24.030 of the code states:
March 22, 2022 Item #7 Page 4 of 10
The city shall make no real property acquisition and/or no improvements to real property, the cost of which exceeds one mill ion doll ars in city funds, unless the proposed acquisition and/or improvemen t project and the cost in city fu nds is first placed upon the ballot and approved by a majority of the vote rs voting thereon at an election.
The Proposition H guidelines specificall y state that public faci lities fees are not cons idered "city funds" for the purposes of Proposition H. The guidelines state:
"City funds " shall mean City of Carlsbad general f und monies; federal general revenue sharing monies and all other mon ies similar to t hose funds. In essence, "City Funds" are TAX MON IES, col lecte d City-wide , which are subject to t he limitations of Propo sition 13 and t he Gann Initiat ive. In general, fees which are received from new development to provide addit ional facilities, shou ld be exempt. For example, t he followi ng fees would not be subject to t he ordi nance:
C. Public facili t ies fees
Because the total General Fund expenditure will be less than $1 million and public facil ity fees are not subject to Propo sition H, a public vote is not required for this action under t he term s of Proposition H.
Options
Staff provide the followin g options for the City Council's consideration:
1. Ado pt a resolu t ion authorizing an appropriation of $922,000 from the Public Facility Fee Fund for the Temporary FS No. 7 Project, CIP Project No. 4091 Pros
• The NRG site is the most viabl e locat ion for the tem porary fire stat ion • Will advance the City Council goal by placing a fire station west of 1-5 to accommodate necessary emergen cy response
• Will assist in having t he temporary fire station completed by the City Council goa l target date of January 2023 .
• Const ruction costs are currently increasing, and moving forward with t he project now will likely cost less t han if the project were del ayed to a later date Cons
• Public facility fee funds in the amount of $922,000 will not be available for other City Counci l-priority proj ects
2. Do not adopt a resolution authorizi ng an appropr iat ion of $922,000 from the Public Facility Fee Fund for the Temporary FS No. 7 Project , CIP Project No. 4091 Pros
• Public Facility Fee funds in t he amount of $922,000 will be available for other City Council -prior ity projects
Cons
• Delays much needed fire and rescue services west of 1-5 March 22, 2022 Item #7 Page 5 of 10
• The City Council goal of establishing temporary FS No. 7 by January 2023 will not be met
• Authorizing this scope of work at a future date will likely require a greater expenditure of fund ing
Staff recommend Option 1 for the City Council's approval.
Fiscal Analysis
The total remaining project cost for the Temporary Fire Station No. 7 Project is projected to be $1,783,770, including estimated license agreement costs of $266,770, design costs of $362,000 and a 10% construction contingency of $105,000. Funding from the general capital construc tion funds in the amount of $900,000 have been previously appropr iated for the project, as shown below:
Temporary Fire Station No. 7 Project,
Capital Improvement Program Project No. 4091
Total appropriation to date $900,000
Total expenditures/encumbrances to date $37,844
--Total available balance $86J,156
Design costs $362,000
Construction costs $1,050,000
Construction contingency (10%} $105,000
License costs for 96 months (current estimate) $266,770 T<>talremaining project costs \; ·
' . _.,,,
$1,783,770 z., .. .,,., ... . '>: ,,.:-. .
Additional appropriation neec!ed
' $921,614
Additional appropriation requested $922,000
The .Public Facility Fee Fund balance is sufficient to support the requested $922,000 appropriation related to the project. The fund balances are shown in the chart below.
Public Facility Fee Fund
Fund balance at June 30, 2021 $30,801,681
Total commitments to existing projects through FY 2021-22 $3,571,110 Totafavailable f1.mding $27,230,571
Temporary Fire Station No. 7, CIP Project No. 4091 $922,000 Remaining avai1able funding after appropriation $26,308,571 Next Steps
The license agreement will be presented to the City Council for consideration in a future staff report. If the City Council authorizes the license agreement with NRG, staff will proceed with developing design documents for the project.
March 22, 2022 Item #7 Page 6 of 10
Over the next several months, staff will return with the actions that will be required to construct temporary Fire Station 7 for City Council approval when appropriate. The California Coastal Commission's approval of the coastal development permit, which is anticipated by late summer 2022, will be required before the City Council can approve the award of a construction contract.
The temporary structures near the Dove Library will be available for relocation once the ongoing construction of permanent Fire Station 2 is completed, which is expected in October 2022.
Construction of the temporary Fire Station 7 is expected to occur from October 2022 to January 2023.
Separately, staff will also be working to find a permanent site for Fire Station 7, which is Objective #3 of the work plan.
Environmental Evaluation
The City Planner has determined that the project belongs to a class of projects that the State Secretary for Natural Resources has found do not have a significant impact on the environment, and it is therefore categorically exempt from the requirement for the preparation of environmental documents in accordance with to CEQA Guidelines Section 15301 (b) - Existing facilities; Section 15303 (c) - Construction or conversion of small structures; and Section 15304 (f) -Minor alterations to land.
In making this determination, the City Planner has found that the exceptions listed in Section 15300.2 of the CEQA Guidelines do not apply to this project. The project is consistent with 15301 (b) because it is located on a developed site with existing parking and utilities such as gas, sewer, water, and electrical amenities. The project is consistent with Section 15303 (c) because the two temporary buildings would house a maximum of seven staff members and contain two offices that are each less than 2,000 square feet and, combined, are less than 6,000 square feet. The project is consistent with Section 15304 (f) because there will be minor trenching conducted to connect to existing underground utilities and the surface would be restored.
Public Notification and Outreach
Staff will continue to keep the public informed by posting updates on the project at ca rls bad ca .gov/ de pa rtme nts/fi re/fire-de pa rtme nt-i m prove me nts This item was noticed in accordance with the Ralph M. Brown Act and available for viewing at least 72 hours prior to the meeting.
Exhibits
1. City Council resolution
2. Location map
March 22, 2022 Item #7 Page 7 of 10
RESOLUTION NO. 2022-079
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING ADDITIONAL APPROPRIATION FOR THE TEMPORARY FIRE STATION NO. 7 PROJECT
Exhibit 1
WHEREAS, on May 11, 2021, the City Council adopted Resolution No. 2021-111, approving the work plan to achieve the City Council goal of "Bring the Fire Department into conformance with standards of cover evaluation"; and
WHEREAS, on June 8, 2021, the City Council approved Temporary Fire Station No. 7, Capital Improvement Program, or CIP, Project No. 4091 and appropriated $900,000 for the project; and WHEREAS, staff identified a site located on the NRG property for Temporary Fire Station No. 7, which is located east of Carlsbad Boulevard, immediate ly south of the Agua Hedionda Lagoon, located at 4600 Carlsbad Boulevard; and
WHEREAS, due to various reasons including a change of location from the original proposed sites, unanticipated utility costs, material cost increases due to inflation, additional operational needs, more granularity on consultant fees, and license costs, the current estimated cost is $1,783,770; and WHEREAS, additional appropriation of $922,000 is requested to complete the project; and WHEREAS, sufficient funding of $922,000 in the Public Facility Fee Fund is available; and WHEREAS, the City Planner has determined that the project belongs to a class of projects that the State Secretary for Resources has found do not have a significant impact on the environm ent, and it is therefore categorically exempt from the requirement for the preparation of environmental documents pursuant to Section 15301 (b) - "existing facilities"; 15303 (c) - "construction or conversion of small structures"; and 15304 (f) - "minor alterations to land" of the CEQA Guidelines. In making this determination, the City P lanner has found that the exceptions listed in Section 15300.2 of the state CEQA Guidelines do not app ly to th is project. The project is consistent with 15301 (b) because it is located on a developed site with existing parking and utilities such as gas, sewer, water, and electrical amenities. The project is consistent with Section 15303 (c) because the two temporary buildings that would house a maximum of seven staff members and would contain two offices are each less than 2,000 square feet and combined are less than 6,000 square feet. The project is consistent with Section 15304 (f) because there will be minor trenching conducted in order to connect to existing underground utilities and the surface would be restored.
March 22, 2022 Item #7 Page 8 of 10
Exhibit 1
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
l. That the above recitations are true and correct.
2. That the Deputy City Manager, Administrative Services, is authorized to appropriate $922,000 from the Public Facility Fee Fund to the Temporary Fire Station No. 7, CIP Project No. 4091.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 22nd day of March, 2022, by the following vote, to wit :
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Acosta, Norby.
None.
None.
VV FAYIOLA MEDINA, City Clerk Services Manager
{SEAL)
March 22, 2022 Item #7
LOCATION MAP
LAYDOWN AREA
PROJECT NAME
TEMPORARY FIRE STATION 7
Exhibit 2
PROJECT
NUMBER
4091
EXHIBIT
2 Item #7 Page 10 o 10
Additional Appropriation for the
Temporary Fire Station 7 Project
Paz Gomez, Deputy City Manager, Public Works
Nick Ordille, Assistant Fire Chief
John Maashoff, Public Works Manager
March 22, 2022
1 RECOMMENDED ACTION
Adopt a resolution authorizing an appropriation of $922,000 from the Public Facility Fee Fund for the temporary Fire Station 7 ITEM 7 – TEMPORARY FIRE STATION 7
2 • March 11, 2021 – City Council set goal to “Bring the Fire Department into conformance with standards of cover
evaluation.”
• June 8, 2021 – Work plan approved by the City Council during the annual budget adoption
ITEM 7 – TEMPORARY FIRE STATION 7
BACKGROUND
Improve Fire Station 6 and procure two new ambulances
• Complete
OBJECTIVES
ITEM 7 – TEMPORARY FIRE STATION 7
1 3
2 Construct and staff a temporary Fire Station 7 and
procure new fire engine by January 2023
• Engine to be ordered July 2022
Establish permanent Fire Station 7
• 2026 - 2028
5 BACKGROUND 1
2 3
4 5
6 7
• Call volumes
• Station locations
• Infrastructure
• Temporary Fire Station 7 CIP Project 4091 with
appropriation of $900,000 approved with annual budget
• Fire Station 4 CIP transferred $5.1 million to general fund ITEM 7 – TEMPORARY FIRE STATION 7
BACKGROUND
7 • Two residential modular buildings
• Sprung structure (garage)
• Laydown yard
• Staff parking
• Direct access to Carlsbad Boulevard
• Direct access to Agua Hedionda Lagoon
PROJECT DESCRIPTION
ITEM 7 – TEMPORARY FIRE STATION 7
PREFERRED
LOCATION
PROJECT STATUS
Conditional Use Permit issued
Coastal Development Permit, or CDP ,
application submitted to the
California Coastal Commission
CDP application deemed complete
ITEM 7 – TEMPORARY FIRE STATION 7
10 Dec. 20, 2021
Jan. 21, 2022
Feb. 22, 2022
PROPOSED LICENSE AGREEMENT
• Negotiations with NRG are ongoing
• License agreement is in draft form, subject to change based on final license agreement
• City Council consideration of license agreement in the future
• Proposed terms – 6 years + 2 1-year extensions
• $30,000 per year + 3% annual increases (or $266,770
for 8 years)
• Concrete pad, rescue watercraft access, ingress/egress ITEM 7 – TEMPORARY FIRE STATION 7
11 ORIGINAL ESTIMATE
ITEM 7 – TEMPORARY FIRE STATION 7
12 Temporary structures – new and relocated $600,000
Design $300,000
Total $900,000
WHAT HAS CHANGED
Different location, not at Cannon Lake Park
or SDG&E sites, lease costs
Additional lift station costs
Material cost increases (inflation)
More granularity on consultant costs
We know more about needs
ITEM 7 – TEMPORARY FIRE STATION 7
COSTS
ITEM 7 – TEMPORARY FIRE STATION 7
14 Original Updated
Temporary structures – new and relocated $600,000 $565,000 Lift station design and construction $211,000
Electrical, generator, plumbing, ADA ramps $281,000
Fire systems for preemption, exhaust control $16,000
Plus 7% escalator and 10% contingency $190,000
Design and preliminary planning $300,000 $291,844
Lease for 8 years *$266,770
TOTALS $900,000 $1,821,614
*license agreement is in draft form, subject to change
COSTS
ITEM 7 – TEMPORARY FIRE STATION 7
15 Original Cost Estimate $900,000
Updated Cost Estimate $1,821,614
Additional Funding Required
Additional Funding Requested
$921,614
$922,000
• Proposition H/CMC 1.24.030 – The city shall make no real property acquisition and/or no improvement to real property exceeding $1M in city funds unless approved by the voters • Public Facility Fee Funds – fees charged to developers to fund civic facilities • PFF funds are not considered “city funds” for the purposes of Proposition H and therefore the project is not required to be placed on a ballot for voter approval.
TIMELINE
2022
March
Council approves
additional
appropriation
July
Council approves
design and
authorizes bid for
construction
ITEM 7 – TEMPORARY FIRE STATION 7
January 2023
Temp FS 7
operational
2023
October
Sprung structure
delivery and
temporary FS 2
relocation
September
Coastal Commission
issues CDP; Council
awards construction
December
Trailer delivery
Construction
April/May
Council authorizes
license agreement
with NRG and
purchase of Sprung
structure and
trailer
VARIABLES
• Timeline contingent on Coastal Commission
issuance of CDP by late summer
• Timeline contingent on Fire Station 2
completion in October
• Supply chain issues
• Utility services – electric, water, sewer
ITEM 7 – TEMPORARY FIRE STATION 7
17 NEXT STEPS
• City Council authorization of sprung structure
and trailer purchase
• City Council approval of license agreement
• Coastal Commission issuance of CDP
• Relocation of trailers upon completion of Fire
Station 2 construction
• Construction of temporary Fire Station 7
ITEM 7 – TEMPORARY FIRE STATION 7
18 RECOMMENDED ACTION
Adopt a resolution authorizing an appropriation of $922,000 from the Public Facility Fee Fund for the temporary Fire Station 7 ITEM 7 – TEMPORARY FIRE STATION 7
19 QUESTIONS?
21 COSTS
Cost estimate
Temporary structures – new and relocated $565,000
Lift station design and construction $211,000
Electrical, generator, plumbing, ADA ramps $281,000
Opticom, Plymovent $16,000
Plus 7% escalator and 10% contingency $190,000
Design $254,000
Lease for 8 years $266,770
TOTAL $1,783,770
22 ITEM 7 – TEMPORARY FIRE STATION 7
1 2
3