CA Review __AF__
Meeting Date: Dec. 6, 2022
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: John Maashoff, Public Works Manager
[email protected], 442-339-2856
Subject: Authorizing an Additional Appropriation from the Public Facility Fee Fund and Authorizing the City Manager to Approve Change Orders to the Ace Electric Inc. Contract for the Temporary Fire Station 7 Project
District: 2
Recommended Action
Adopt a resolution authorizing an additional appropriation of $200,000 from the Public Facility Fee Fund and authorizing the City Manager to approve change orders to the Ace Electric Inc. construction contract in an amount not to exceed $25,000 for construction of the electrical system for the Temporary Fire Station 7 Project, Capital Improvement Program Project No. 4091.
Executive Summary
The city is building a temporary fire station at 4600 Carlsbad Boulevard while a permanent site is obtained and developed (Capital Improvement Program Project No. 4091). Temporary Fire Station 7 will consist of two modular residential buildings and a movable high-tensioned fabric structure that will serve as the station’s garage.
Design of the project has been completed, building permits have been issued and construction of Temporary Fire Station 7 is underway. However, during the final design process, staff identified the need for additional funding due to unforeseen scope adjustments, material cost increases and increases in the cost of construction.
In order to complete construction of the project and occupy Temporary Fire Station 7 prior to Jan. 9, 2023, staff are requesting that the City Council authorize an additional appropriation of $200,000 from the Public Facility Fee Fund, and authorize the City Manager to execute change orders to the Ace Electric, Inc. contract in an amount not to exceed $25,000. City Council authorization is required to appropriate additional funds to the Capital Improvement Program project budgets and authorize the City Manager to approve change orders by Carlsbad Municipal Code Section 3.28.090, which applies to purchasing in construction contracts.
Discussion
Background
The Temporary Fire Station 7is project will advance the City Council’s goal to “bring the Fire Department into conformance with the standards of cover evaluation.” This refers to the Standards of Coverage, a document that determines the level of protection that best fits a fire department’s needs.
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Item #6 Page 1 of 9
The City Council approved the plans, specifications and contract documents and authorized the City Clerk to advertise for bids for the construction of a temporary garage on July 26, 2022, with Resolution No. 2022-188.
The project
The station is being built on the former power
plant site at 4600 Carlsbad Blvd. It will consist of
two modular residential buildings and the high-
tensioned fabric structure that will be used as a
garage to store Fire Department vehicles and
equipment. In keeping with the terms of the
license agreement, on Oct. 19, 2022, staff notified
NRG, the property owner, that the city intended
to begin construction on Nov. 1, 2022.
During the final design process, staff identified
the need for additional funding due to
unforeseen scope, material cost increases and
increases in the cost of construction due to
inflation and supply chain issues, which are being
experienced nationwide.
Elements of construction that significantly exceeded the budgeted amounts include the electrical system, vehicle exhaust system and vehicle access preemption system. The table below shows the updated cost estimates as compared to the March 2022 funding request:
Due to the higher-than-anticipated construction costs, staff request that the City Council authorize an additional appropriation of $200,000 from the Public Facility Fee Fund to CIP Project No. 4091.
The temporary garage is being constructed.
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COSTS
March 2022 Dec 2022 Increase
Temporary structure s - new and relocatedl $565,000 $622,059 $57,059 Uh station design and construction $211,000 $193,000 ($18,000) Electrical, generator, plumb ing, ADA ramps $281,000 $582,111 $301,111 Fire systems for preemption, exhaust control $16,000 $108,460 $92,460 Plus 7% escalator and 10% contingency $190,000 $16,771 (173,229) Design and preliminary planning $291,844 $220,500 ($71,344) Lease for 8 years $266,770 $266,770 $0
TOTALS $1,821,614 $2,009,671 $188,057
Award of electrical contract
On Aug. 29, 2022, the Temporary Fire Station 7 site and building electrical system contract documents were advertised using the formal bidding procedures. On Oct. 12, 2022, staff received two bids and determined the lowest responsive and responsible bidder to be Ace Electric, Inc., with a bid in an amount of $199,700.
The City Manager is authorized to award construction project contracts less than the formal bidding threshold established by the Uniform Public Construction Cost Accounting Act, or $200,000, in accordance with the Carlsbad Municipal Code, or CMC, Section 3.28.040(C)(3). On Nov. 2, 2022, the City Manager awarded a contract to Ace Electric Inc. in the amount of $199,700.
However, pursuant to CMC Section 3.28.040(C)(6), the City Manager may only authorize construction-related change orders, amendments or extensions to an existing contract that do not exceed $200,000. Since the contract amount, plus potential change orders, will exceed this threshold, staff request the City Council’s approval to authorize the City Manager to approve change orders to the Ace Electric Inc. contract in an amount not to exceed $25,000, consistent with Carlsbad Municipal Code Section 3.28.090(B).
Options
Staff provide the following options for the City Council’s consideration:
1. Adopt a resolution authorizing an additional appropriation of $200,000 from the Public Facility Fee Fund and authorizing the City Manager to approve change orders to the Ace Electric Inc. contract in an amount not to exceed $25,000 Pros
• Allows completion of the temporary fire station project by the City Council goal target date of January 2023
• Construction costs are currently increasing, and moving forward with the project now will likely cost less than if the project were delayed to a later date Cons
• Public facility fee funds in the amount of $200,000 will not be available for other City Council-priority projects
2. Do not adopt a resolution authorizing an additional appropriation of $200,000 from the Public Facility Fee Fund and authorizing the City Manager to approve change orders to the Ace Electric Inc., contract in an amount not to exceed $25,000 Pros
• Public facility fee funds in the amount of $200,000 will be available for other City Council-priority projects
Cons
• The City Council goal of establishing Temporary Fire Station 7 by January 2023 will not be met
• Authorizing this scope of work at a future date will likely require a greater expenditure of funding
Staff recommend Option 1.
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Fiscal Analysis
The total remaining project cost for the Temporary Fire Station 7 Project is projected to be $821,614, including estimated license agreement costs of $266,770. Staff request that the City Council authorize an additional appropriation of $200,000 from the Public Facility Fee Fund to complete construction of the project.
Temporary Fire Station No. 7 Project,
CIP Project No. 4091
Total appropriation to date $1,822,000
Total expenditures/encumbrances to date $1,538,973
Total available balance $283,027
Site and building electrical work contingency (Ace Electric Inc.) (estimated) $25,000
Remaining construction expenditures (estimated) $191,257 License agreement costs for 96 months (current estimate) $266,770 Total remaining project costs $483,027
Additional appropriation needed $200,000
The Public Facility Fee Fund balance is sufficient to support the requested $200,000 appropriation related to the project. The fund balances are shown in the chart below.
Public Facility Fee Fund
Fund balance as of June 30, 2022 $33,477,000
Total commitments to existing projects through FY 2022-23 $5,140,000 Total available funding $28,337,000
Additional appropriation Temp. Fire Station 7, CIP Project No. 4091 $200,000 Remaining available funding after appropriation $28,137,000
Next Steps
With the approval of the City Council, staff will schedule a pre-construction meeting with Ace Electric Inc. and issue a notice to proceed for construction of the project. Construction will begin immediately and is estimated to be completed by Jan. 9, 2023.
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 the California Environmental Quality Act, or 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 Dec. 6, 2022
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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
This item was noticed in accordance with the Ralph M. Brown Act and available for viewing at least 72 hours prior to the meeting.
Staff will continue to keep the public informed by posting updates on the city website Exhibits
1. City Council resolution
2. Location map
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RESOLUTION NO. 2022-272
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING AN ADDITIONAL APPROPRIATION OF FUNDS
AND AUTHORIZING THE CITY MANAGER TO APPROVE CHANGE ORDERS TO THE CONTRACT WITH ACE ELECTRIC, INC. FOR THE TEMPORARY FIRE STATION 7 PROJECT
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 7, Capital Improvement Program, or CIP, Project No. 4091 and appropriated $900,000 for the project; and WHEREAS, on March 22, 2022, staff presented a conceptual design for Temporary Fire Station 7 on property located at 4600 Carlsbad Boulevard and the City Council adopted Resolution No. 2022- 079, appropriating an additional $922,000 to construct the temporary fire station in accordance with the conceptual design; and
WHEREAS, on June 21, 2022, the City Council authorized entering into a license agreement with Cabrillo Power I, LLC, a subsidiary of NRG West Coast LLC, or NRG, to locate Temporary Fire Station 7 on property owned by NRG at 4600 Carlsbad Boulevard; and WHEREAS, on Aug. 29, 2022, the Temporary Fire Station 7 site and building electrical system contract documents were advertised for bids using the formal bidding procedures; and WHEREAS on Oct. 12, 2022, staff received and evaluated two bids for construction of the site and building electrical system project; and
WHEREAS, Ace Electric, Inc., submitted the lowest responsive and responsible bid in an amount of $199,700; and
WHEREAS, on Nov. 2, 2022, the City Manager awarded the contract to Ace Electric, Inc. pursuant to Carlsbad Municipal Code Section 3.28.040(C)(3}; and WHEREAS, staff are requesting City Council authorization for the City Manager to issue change orders to the contract, if needed, up to $25,000, pursuant to Carlsbad Municipal Code Section
3.28.090(B); and
WHEREAS, during final design and permitting of Temporary Fire Station 7, it was determined that an additional appropriation of $200,000 would be required to construct the project due to Exhibit 1
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..
unforeseen scope, material cost increases and increases in construction costs due to nationwide inflation and supply chain issues; and
WHEREAS, sufficient funding of $200,000 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 environment, 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 California Environmental Quality Act, or CEQA, Guidelines. In making this determination, the City Planner has found that the exceptions listed in Section 15300.2 of the state CEQA Guidelines do not apply to this project. The City Planner determined that 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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the Deputy City Manager, Administrative Services, is authorized to appropriate $200,000 from the Public Facility Fee Fund to the Temporary Fire Station 7, CIP Project No. 4091.
3. That the City Manager is hereby authorized to approve construction change orders to the contract with Ace Electric, Inc for the Temporary Fire Station 7 Building and Site Electrical project in an amount not to exceed $25,000.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 6th day of December. 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Norby.
None.
Hall.
for
FAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
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SPRUNG STRUCTURE
TRAILER #1
TRAILER #2
PLOTTED BY: Andy Chang PLOT DATE: 2/24/2022 PATH: Z:\John_Maashoff\FS7_Temp_Exhibit\FS7_Temp_Exhibit_Revised_01-26-22.mxd
PROJECT NAME EXHIBITPROJECT
NUMBER
4091 2TEMPORARY FIRE STATION 7
LOCATION MAP
CARLSBAD
VISTA
ENCINITAS
SAN MARCOS
OCEANSIDE
Legend
PARKING
DRIVE AISLE
LAYDOWN AREA
BUILDINGS
Vicinity
Exhibit 2
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