FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
MEETING DATE October 7, 2026
PREPARED FOR Mayor and Town Council
PREPARED BY Kristin Arnold, PE - Public Works Director
SUBJECT Adopt Two Resolutions (1) Authorizing the Town Manager to Continue the Lease Agreement on a Month-to-month Basis Between the Town and the Property Owners of 21 Park Road, and (2) a Contingency Increase for the Fire Station 21 Remodel Project. The total project cost now exceeds the original $1.6 million budget by $14,530, or less than 1%
RECOMMENDATION
Adopt Two Resolutions (1) Authorizing the Town Manager to extend a Lease Agreement between the Town and the property owners of 21 Park Road and (2) authorize a contingency increase for the Fire Station 21 Remodel Project.
BACKGROUND
The Town of Fairfax owns and maintains Fire Station 21 (Station 21), located at 10 Park Road, Fairfax, which is used by the Ross Valley Fire Department (RVFD). Station 21, built in 1974, requires significant updates to meet modern safety and operational standards. Below is a brief timeline for the project:
• December 2023 – The Council authorized the Town Manager to execute a professional services agreement with Fairchild Broms Design (FBD) to prepare construction documents and specifications for the project.
• September 2024 – The Council reviewed options for upgrading Station 21 and selected Option 1:
Comprehensive Remodel of the Upstairs Portion of the Station. This option addresses longstanding operational improvements and accommodates additional fire personnel required under the Ross Valley Fire Department Joint Powers Agreement (RVFD JPA). The estimated cost for this option is approximately $1.5 million.
• February 2025 – The Council authorized the Town Manager to execute the first amendment to add necessary additional documentation to the project to address code related upgrades required by the improvements. This meeting also provided a detailed update on the status of the project. • August 2025 – The Council authorized the Town Manager to execute the second amendment with Fairchild Broms Design to prepare a cost estimate based on the design development drawings.
• October 2025 – The Council authorized the Town Manager to execute a $1,600,000 loan agreement with Marin County to complete the remodel project. • December 2025 – Council authorized the Town Manager to execute a third design amendment with the architect to include assistance during construction and to lease temporary office space at 21 Park Road.
• February 2026 – The Council authorized the Town Manager to Execute an Agreement with O’Neill Built Construction to remodel the Community Center into Temporary Living Quarters for fire personnel.
• March 2026 – The Council authorized the Town Manager to execute the fourth amendment with Fairchild Broms Design for construction management services. • April 2026 – The Council authorized the Town Manager to execute the construction contract with Argo Construction for an amount not to exceed $1,036,000, and a contingency of $98,953.19. • June 2026 – The council authorized the Town Manager to execute a first amendment ratifying the agreement with Red Cloud to furnish and install the alerting system in the Fire Station 21 for a total not to exceed amount of $33,624.76.
• September 2026 - The Council authorized the Town Manager to execute a second amendment ratifying the agreement with Red Cloud to furnish and install the alerting system in the Fire Station 21 for a total not to exceed amount of $36,627.76 with a $10,000 contingency. RVFD will reimburse the Town for $29,735.47 for this work.
DISCUSSION
Lease Agreement – Temporary Office Space
The Town is leasing 21 Park Road for the Finance and Recreation Departments while Fire Station 21 personnel use the Community Center as temporary living quarters. The lease began February 1, 2026. Its initial term ends November 30, 2026, after which it may continue month to month at $3,500 per month, including utilities.
Council previously authorized the lease for up to $35,000, based on an estimated ten months of occupancy. This estimate preceded bidding for the Station 21 remodel. The overall project cost estimate included an allowance for a longer lease, but the anticipated duration could not be refined until construction progressed.
Staff expects to need the space for approximately four more months, through March 2027. Fire personnel are expected to return to Station 21 in December 2026, after which the Community Center must be restored for Town office use before the Finance and Recreation Departments can move back. The additional rent is estimated at $14,000, bringing the total estimated lease cost to $49,000.
The estimated schedule for remained of the project is shown below:
DATE ACTIVITY
DECEMBER 2026 Station 21 Remodel Completion and Move in JANUARY - FEBRUARY 2027 Restore Community Center and playground restroom MARCH 2027 Community Center Move in
Staff recommends that Council authorize the Town Manager to continue the lease on a month-to-month basis until the Community Center is ready and Town staff can return, allowing for schedule changes without further Council action. The $49,000 total reflects estimated occupancy through March 2027; each additional month would cost $3,500.
Contingency Increase
Construction has revealed unforeseen conditions and required changes during the Station 21 remodel.
Council’s original authorization for the Argo Construction contract included a contingency of $98,953.
Approved change orders total $88,377, leaving $10,576 available. The table below summarizes the approved changes.
Table 1 – Change Order Summary
Number Amount Details
1 $15,797.52 Required blocking to support second-floor restroom ceilings; additional slab saw cutting; framing changes.
2 $54,316.20 Removal of asbestos-wrapped HVAC ducts and installation of new ducts serving the second floor; related drywall work; a new electrical subpanel for 911 closet clearances to meet code; subfloor infill. Includes a credit for deleted plumbing work.
3 $(64,683.60) Credit for deleting roof Alternate #1 and related work, plus a plumbing credit. Also includes wall shimming and covering openings in the deck plywood.
4 $37,244.64 Additional required framing in the PPE room and a 60-mil coating on the existing roof that comes with a 15-year warranty.
5 $45,702.45 Required floor buildup in the upstairs restroom, hallway, and two sleeping rooms to meet ADA codes; high-temperature sprinkler heads in the 911 and IT closets; additional conduits for Alerting System and the IT network.
Total = $88,377.21
Additional work is expected to exceed the remaining contingency. The existing fire alarm system requires upgrades to meet current code requirements, including a new panel, at an estimated cost of $19,000.
This work must be completed before fire personnel can return to the station.
Paint is also peeling in several areas on the first floor, where repainting was not included in the original contract. The initial estimate was $11,500. Staff is refining the scope to identify surfaces requiring preparation and repainting and distinguish existing deterioration from construction damage before determining the final cost. Smaller changes totaling approximately $6,798 include insulation between a downstairs room without air conditioning and the upstairs living space, and material to enclose an opening above the cabinets around a fire suppression line.
With construction progressing into finishes, the project team expects further changes to be minor. Staff recommends increasing the construction contingency by $45,000, from $98,953 to $143,953. Based on current estimates, this would cover the identified work and leave approximately $18,278 for remaining changes, reducing the risk of delays as construction concludes.
The overall project estimate also includes specialized asbestos abatement oversight that was not originally budgeted. This work protected workers and building occupants and independently verified that
affected areas were safe for re-occupancy through monitoring of abatement procedures and containment, clearance inspections, and air testing.
Including the proposed contingency increase, additional rent for 21 Park Road through March 2027, and reimbursements, estimated total project spending is $1,614,530. This is $14,530, or 0.91%, above the original $1.6 million budget. The estimate also includes relocating fire personnel to Station 21, restoring the Community Center for Town offices and the playground restroom, and moving Town staff back. The following table summarizes estimated project costs.
Table 2 – Fire Station 21 Remodel Project Expenditure Estimates Expenditure Categories: Estimated Total Project Spending Design and Construction Management $228,231
Temporary Living Quarters $211,683
Construction $1,219,626
Reimbursements* ($45,010)
Total $1,614,530
*Ross Valley Fire Department is reimbursing the Town for costs related to station alerting. Ross Valley Sanitary District reimbursed the Town through its sewer lateral grant replacement program, as two sewer laterals were replaced as part of this project.
Staff recommends Council approve the $45,000 contingency increase to complete the remaining work and reduce the risk of construction delays.
FISCAL IMPACT
The proposed $45,000 increase would bring the construction contingency to $143,953. Four additional months of rent at 21 Park Road would add $14,000, bringing estimated lease costs to $49,000. Including these costs and anticipated reimbursements, estimated total project spending is $1,614,530, exceeding the $1.6 million Marin County loan by $14,530 (0.91%). The $14,530 difference will be funded by the General Fund.
ATTACHMENTS
A. Resolution Extending Lease Agreement
B. Resolution Increasing Contingency
Town of Fairfax ATTACHMENT A
Resolution No.
RESOLUTION
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX AUTHORIZING THE TOWN MANAGER TO CONTINE THE LEASE AGREEMENT FOR 21 PARK ROAD ON A MONTH-TO-MONTH BASIS DURING THE FIRE STATION 21 REMODEL PROJECT.
WHEREAS, the Town is leasing 21 Park Road from property owners Christine and Steven Pummill for the Finance and Recreation Departments offices while the Ross Valley Fire Department personnel occupy the Community Center during the station remodel; and WHEREAS, the lease began February 1, 2026, and its initial ten-month term ends November 30, 2026, with provisions for continued occupancy on a month-to-month basis at $3,500 per month, including utilities; and
WHEREAS, the Town Council previously authorized lease expenditures not to exceed $35,000; and WHEREAS, fire personnel are expected to return to Station 21 in December 2026, after which the Community Center must be restored before Town staff can return; and WHEREAS, staff anticipates approximately four additional months of occupancy through March 2027, at an additional estimated cost of $14,000, bringing the estimated total lease cost to $49,000; WHEREAS, continued month-to-month occupancy will accommodate schedule changes until the Community Center is ready for Town staff to return.
NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Fairfax DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
1. Authorizes the Town Manager to continue the lease agreement for 21 Park Road on a month-tomonth basis beginning December 1, 2026, at $3,500 per month, including utilities, until the Community Center is ready and the Finance and Recreation Departments can return.
2. Authorizes the Town Manager to execute any documents necessary to implement the lease extension and terminate the lease in accordance with its notice requirements when the temporary office space is no longer needed.
3. Authorizes lease expenditures beyond the previously approved $35,000, estimated at $14,000 through March 2027, and continued payments of $3,500 per month thereafter if needed until Town staff can return to the Community Center, without further Council action.
PASSED, APPROVED, AND ADOPTED by the Town Council of the Town of Fairfax on this 7th day of October 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
STEPHANIE HELLMAN
MAYOR
Town of Fairfax ATTACHMENT A
Resolution No.
ATTEST:
_________________________________________
CHRISTINE FOSTER
DEPUTY TOWN CLERK
Town of Fairfax ATTACHMENT B
Resolution No.
RESOLUTION
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX AUTHORIZING AN INCREASE IN CONSTRUCTION CONTINGENCY FOR THE FIRE STATION 21
REMODEL PROJECT
WHEREAS, the Town owns and maintains Fire Station 21, located at 10 Park Road, which serves the Ross Valley Fire Department; and
WHEREAS, the Town Council authorized a construction contract with Argo Construction for the Fire Station 21 Remodel Project, including a contingency of $98,953.19; and WHEREAS, approved change orders total $88,377.21, leaving an available contingency balance of $10,575.98; and
WHEREAS, additional work includes required fire alarm upgrades, preparation and repainting of affected first-floor surfaces, insulation, and other construction modifications that are expected to exceed the remaining contingency; and
WHEREAS, staff recommends increasing the construction contingency by $45,000 to cover the identified work and provide an allowance for remaining changes needed to complete the project; and WHEREAS, including the proposed contingency increase, temporary office lease extension, and anticipated reimbursements, estimated total project spending is $1,614,530, exceeding the $1.6 million Marin County loan by $14,530, which will be funded by the General Fund.
NOW, THEREFORE, BE IT RESOLVED that the Town Council of the Town of Fairfax DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:
1. Approves a $45,000 increase in the construction contingency for the Fire Station 21 Remodel Project, increasing the total authorized contingency from $98,953.19 to $143,953.19.
2. Authorizes the Town Manager to approve and execute change orders to the Argo Construction contract necessary to complete the project, provided the cumulative net amount of change orders does not exceed the revised contingency of $143,953.19.
PASSED, APPROVED, AND ADOPTED by the Town Council of the Town of Fairfax on this 7th day of October 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
STEPHANIE HELLMAN
MAYOR
ATTEST:
Town of Fairfax ATTACHMENT B
Resolution No.
_________________________________________
CHRISTINE FOSTER
DEPUTY TOWN CLERK