October 3, 2023
Public Works
DATE: October 3, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Dave Aleshire, City Attorney
Daniel Chavarria, Director of Public Works
Subject:
Contract Amendment with Wiss, Janney, Elstner
Associates, Inc. to provide architectural and engineering consulting services during the construction phase to repair of roofs and structures in the Winehaven Historic District FINANCIAL IMPACT: There is an existing design contract for historic preservations with WJE that was approved by Council for $247,000. The City Council is requested to authorize the City Attorney to negotiate a contract amendment for an
additional $438,000 to provide architectural and
engineering consulting services in connection with repair and tarping scope. Alternatively, the City Council would authorize the City Attorney to negotiate a Contract
Amendment for an additional $250,000 to provide
architectural and engineering consulting services in
connection with the tarping only scope. The funds for the contract will be paid using account string 20136031-
400650.
PREVIOUS COUNCIL
ACTION:
On May 16, 2023
AGENDA
REPORT
October 3, 2023
STATEMENT OF THE
ISSUE:
The Winehaven Historic District have several vacant
structures, including damaged and deteriorated structural and enclosure components. City staff retained Wiss,
Janney, Elstner Associates, Inc., (WJE) an architectural and structural consultant, to evaluate and stabilize the cottages at the Winehaven Historical District. Staff is requesting a contract amendment with WJE to continue
these services.
RECOMMENDED ACTION:
DIRECT the City Attorney to negotiate and finalize a
contract amendment with Wiss, Janney, Elstner
Associates, Inc. (“WJE”) to allow WJE to retain a
contractor and to provide architectural and engineering consulting services during the build phase to support the roof repair, rehabilitation, and temporary preservation of certain cottages located in the Winehaven Historic
District; and PROVIDE DIRECTION regarding two
proposed scopes (1) $250,000 to tarp buildings that
require immediate protection from rain for a total contract amount of $497,000; or (2) $438,000 to repair certain
cottages and tarping other cottages so they may be
preserved for work expected to commence
October/November 2023. For scope 2, the architect
estimates the need for an additional $75,000 for the
original contract for the architectural and supervisory services for a total contract amount of $760,000. – Public Works Department (Dave Aleshire 510-620-6509/Daniel
Chavarria 510-620-5478).
DISCUSSION:
The Winehaven Historic District (“Winehaven”) has several vacant structures and cottages. City staff has observed damage d and deteriorated structural and enclosure components to the structures at Winehaven. Roof repairs to 28 cottages were the highest priority due to water intrusion during rain. To repair these issues, City staff sought and obtained approval of a sole-source contract with Wis s, Janney, Elstner Associates, Inc. (“WJE”) to continue their work previously done at Winehaven. On May 16, 2023, the City Council authorized entry and execution of a contract with WJE for an amount not to exceed $ 247,000, with a term beginning May 24, 202 3 through June 30, 2024 (the
October 3, 2023
“Original Contract”). (See Attachment 1.) Based on conversations with the consultant team at WJE, approximately $180,000 was reserved for work related to Winehaven and the remaining balance of $67,000 on an unrelated building ( Shipyard No. 3 Historic District).
WJE conducted an onsite inspection of the structures at Winehaven and determined that four (4) cottages required total roof replacement, six (6) cottages required roof patching, and 24 cottages required roof maintenance, including repairing structural roof joists. A large amount of the expense was due to remediating hazardous waste (lead based paint, etc.) of the Site (3x cost of roof repair on average). Given the approaching rainy season, the City asked WJE to provide options for scope of work to apply tarps to the roofs of the cottages to prevent water entry during the rainy season or repair the more easily repairable structures and apply preventative tarps to the cottages requiring more extensive repairs in order to star t repairs in 2024, after the rainy season ends. On September 8, 2023, WJE provided a proposal.
WJE provided four (4) proposed scopes of work. Two of the options are designed to provide immediate temporary preventative tarping, but no permanent repairs. Th e costs preventative tarping range from $250,000 to $520,000. While the two other scope options are designed to patch and repair the less damaged cottages while providing temporary protection to the cottages requiring extensive repairs. The estimated costs for repairs and localized tarping range from $450,000 to $564,000. These figures are a rough estimate for the cost of materials, labor, and WJE’s consulting services during the scope of work called for in the proposed scope selected by the City Council.
Prior Councils have been reluctant to complete full restoration because costs are in the millions. It is unclear how the historic area would be integrated with the future development. The future developer would pay for the restoration out of their project. Due to the onset of the rainy season, it is desirable that some emergency prevention work be done as soon as possible. However, we would simplify the Council’s choices to Scopes 1 or 2.
To date, WJE has incurred a total of $84,500 in costs to prepare design documents. WJE expects to perform an additional $5,000 in work to complete the design work. This leaves a total of $80,000 remaining in WJE’s Original Contract which can be applied to the additional work contemplated under the proposed Scopes 1 or 2.
Project Objectives
WJE identified that the Structures at Winehaven are generally deteriorated and are damaged in numerous locations, allowing water and animal intrusion and continued deterioration of historic buildings.
The overall goals of this project can be facilitated through an amendment to the WJE contract to accomplish the following:
Assist in the selection of contractors and perform Construction Administration during the installation of the repairs to stabilize the buildings and mitigate further deterioration at least over the next six months.
October 3, 2023
Oversee selected contractor in completing the work called for by the Scope ultimately selected by the City Council to workmanlike standards. Identify two preservation scenarios, Option 1 with a price of app roximately $250,000 and emphasizing tarping and a certain amount of patch and repairing and a more aggressive Option 2 with a cost of approximately $400,000 where more extensive repairs would be accomplished through the winter. Of the remaining $147,000 i n the existing WJE Contract (i) the allocation of $67,000 for the shipyard will remain, and (ii) the remaining $80,000 will be used to pay WJE fees for the Amendment.
Additional Background
Threats and litigation have had much to do with the fate of the Winehaven Historic District, registered under the National Register as well as the Richmond Historic Preservation Ordinance. Federal litigation with Upstream and the Tribe resulted in an Amen ded Federal Judgment which gave first the City five years to find a developer, and then five years for the Upstream/Tribe entity. When the City’s efforts ended with litigation with the then developer (Winehaven, LLC), per the Amended Judgment, the development parcels were transferred to the Upstream/Tribe entity, but the City retained the obligation to maintain the property under the Amended Judgment. The development plan had incorporated the restoration and rehabilitation of the structures in the Histori c District by the developer, and the development entities the Upstream/Tribe has been talking to, still plan on this as a part of the projects they are considering. The City, assuming that the future developer would deal with the long-term issues, has put minimal effort into the repair and updating of the structures.
The condition of the structures has been assessed at various times including by WJE in 2010, but no restoration work was common pursuant to these studies. The structures continued to deteri orate. City staff previously contacted WJE, a qualified consultant in the field with previous experience in assessing the site. As previously stated, in May 2023 a contract was awarded for $247,000 to do design work and develop estimates.
Preliminary wor k yielded cost estimates in excess of $2,000,000, which exceeded available funding. With the rainy season, it became imperative (i) to study a project phasing approach including protective measures, and (ii) to look at emergency contract award procedures.
The City recently requested that WJE update their proposal to phase the project, and to include flexibility to establish and revise the scope of services for future phases as the project progresses and evolves. A primary goal of this approach is to accel erate the schedule for the first phase (which is to address the cottage reroofing) , so that construction can begin on some of the highest priority items while further investigation of other conditions and buildings continues. The first phase will be followed by subsequent phases that continue to address conditions in a manner that will offer the greatest value in stabilizing the buildings and protecting them from further deterioration and damage.
Due to the uncertainty associated with the overall project s cope and phasing, amendments to this contract may be necessary as the project progresses.
October 3, 2023
On September 8, 2023, WJE provided an updated proposal for the first phase (address cottage reroofing) per the City’s request and provided four (4) proposed Scopes wh ich affords the City to how to best utilize its resources given the short window to perform the repairs. On September 26, 2023, WJE provided an Updated Cost Estimate which has not been completed.
Proposed First Phase Scopes
WJE initially presented four (4) proposed Scopes to address the reroofing of the cottages located at Winehaven. However, in consultation with WJE, the City Attorney determined only two (2) of the four (4) proposed Scopes were viable.
Scope 1 provides the application of tarps to provide temporary protection during the winter months.
Scope 2 provides for localized repairs to cottage roofs with moderate damage to reduce or eliminate the need to tarp, while other more damaged roofs would be tarped to prevent damage during the winter months. This is WJE’s cost for construction and consulting costs are provided on the following page:
October 3, 2023
Scope 1: Localized Tarping
This approach recognizes the limited funds available and the urgent need to protect the buildings during the upcoming winter.
This scope includes:
o Survey all of the building interiors and exteriors to identify those with damaged conditions requiring tarping to become weathertight. o Repair damaged framing, and/or install temporary shoring in portions of, or entire buildings, as required to access the roofs to install the tarps. o Install tarps in localized areas, as required to prevent water intrusion through damaged roofs.
o Monitor and maintain the tarps so that they remain weathertight throughout the winter.
WJE estimates costs for its architectural and engineering services to complete the tarp project will cost $100,000. Therefore, taking into account WJE’s consulting fee will cause the total cost for Scope 1 to be $233,209.
Given that $80,000 of the initial $180,000 allocated to the Winehaven project remains unspent and may be applied to the project, the financial impact for Scope 1 is an additional $160,000 allocated to the Winehaven Project.
Scope 2: Localized Repairs and Limited Tarping
This approach recognizes the efficiency of installing localized repairs to roofs with moderate damage to reduce or eliminate the need to tarp them. This scope includes:
o Survey all of the building interiors and exteriors to identify those with damaged conditions of a localized nature that could be easily repaired. o Repair damaged framing, and/or install temporary shoring in portions of, or entire buildings, as required to access the roofs to install the repairs and tarps. (same as Scope 1)
o Install tarps on buildings with more extensive damage that will be deferred until a later time. (same as Scope 1, but fewer buildings) o Install localized roof repairs (patches) where these patches will address damaged conditions, and tarping will no longer be needed. o Additionally, these repairs will be more permanent in nature as opposed to tarps.
o Monitor and maintain the tarps so that they remain weathertight throughout the winter. (same as Scope 1, but fewer buildings)
Scope 2 provides for proactive maintenance and repair for the cottages requiring the least labor intensive repairs while applying tarps to the cottage requiring the most labor intensive repairs to prevent water entry during the rainy season. Shoring and some preparatory work is necessary for both roof patching and tarping.
October 3, 2023
WJE estimates costs for its architectural and engineering services for Scope 2 will be roughly $150,000. Therefore, the total estimated cost for Scope 2 is $383,454.
Given that $80,000 of the initial $180,000 allocat ed to the Winehaven project remains unspent, the financial impact for Scope 2 is an additional $320,000 allocated to the Winehaven Project.
Analysis of Options
Scope 1 is the least costly of WJE’s proposed Scopes. However, the work to prepare relevant cottages for tarping and applying the tarps does not advance the City’s goal of repairing the roofs of the cottages. Although Scope 2 presents higher upfront costs than Scope 1, Scope 1 may be more costly in the long run since tarping cottages which could have been repaired upfront results in additional costs which could have been avoided if Scope 2 initially.
Given the potential long term cost savings associated with Scope 2, the Public Works Department recommends that the City Council elect Scope 2. (See Attachment 1.)
Alternatively, it is recommended that the City Council elect Scope 1.
Regardless of the scope selected by the City Council, the City Council should allow for flexibility in case the scope changes or contingencies occur in the middle of the project.
The estimates above are approximations based upon information currently known.
Additionally, WJE’s estimated consulting fees may increase based upon the selected contractor’s pace of work. Many factors may impact the cost estimates, including factors affecting the materials and labor market.
LITIGATION AND URGENCY:
In the midst of this effort, a nonpr ofit, the Winehaven Trust prepared a lawsuit for violations of the Richmond Municipal Code and an injunction to be sought against the Upstream/Tribe entity and the City. Discussion with the City Attorney has led to the litigation being held in abeyance if the City could prioritize and proceed with some of the critical restoration and preservation work, including the first phase involving the roofs of the cottages. The Richmond Historic Preservation Ordinance makes the demolition of an historic resource by action or failure to act (demolition by neglect) a misdemeanor and provides the further remedy of obtaining an injunction ordering the owner or any responsible party to restore the property.
While the City’s desire to have the future developer take on this responsibility was not unreasonable—given the lengthening time frame for Upstream/Tribe to find a developer, the City Attorney has opined that the continuing deterioration of the historic resources
October 3, 2023
makes it incumbent on the City to enact a program to begin restoration and arrest the “demolition by neglect” claim in the lawsuit. If City resources are to be devoted to this, it is better they be spent on the historic resources rather than litigation.
Counsel for the Winehaven Trust advised the City Atto rney that Winehaven Trust would initiate further litigation, including requesting the Court for an order requiring that the City begin efforts to restore the property on a phased basis as set forth in WJE’s proposals.
However, Counsel for Winehaven Trust a dvised that Winehaven Trust would agree to stay or dismiss the current lawsuit if the City initiated repairs at Winehaven.
Additional urgency is due to the rapid approach of the rainy season and predictions of another El Nino. Accordingly, it was necessary to move quickly to engage contractors for the work. Although WJE was reluctant to actually engage the contractors, this proved to the the quickest approach and is justified by the emergency situation. WJE will work with the Public Works Department to o btain multiple informal bids from contractors experienced with historic rehabilitation work.
CONCLUSION:
The requested amended contract and scope of services will assist the City in executing a repair plan for these historic structures to mitigate the further deterioration of these buildings and ensure there is no significant loss of integrity of these historic structures while rehabilitation of these structures can take place.
DOCUMENTS ATTACHED:
Attachment 1 – Original Executed Contract Between the City and WJE