HomeMy WebLinkAboutPW Increase Construction Contingency on Fire Stations 54 & 55 Essential Facilities Projects____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: October 17, 2022
Disposition: Resolution 15141
Agenda Item No: 4.h
Meeting Date: October 17, 2022
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Public Works
Prepared by: April Miller,
Director of Public Works
City Manager Approval: ___________
File No.: 06.01.243 & 06.01.245
TOPIC: INCREASE CONSTRUCTION CONTINGENCY ON FIRE STATIONS 54 & 55
ESSENTIAL FACILITIES PROJECTS
SUBJECT: RESOLUTION AUTHORIZING ADDITIONAL CONSTRUCTION CONTINGENCY
FUNDS FOR PHASE 2 ESSENTIAL FACILITIES PROJECTS - FIRE STATIONS
54 AND 55, IN AN AMOUNT NOT TO EXCEED $450,000, FOR A TOTAL
CONSTRUCTION CONTINGENCY AMOUNT OF $1,330,900
RECOMMENDATION:
Adopt the resolution authorizing additional construction contingency funds due to unforeseen
conditions for the City of San Rafael Essential Facilities Construction Project – Fire Stations 54
and 55, in the not to exceed amount of $450,000, for a total construction contingency amount of
$1,330,900; and
BACKGROUND:
On November 5, 2013, the voters approved Measure E extending the existing one-half percent
local sales tax and increasing the rate by one-quarter percent to provide funding to preserve
essential city services. The City has since used those resources to plan, design, construct and
manage two new stand-alone fire stations, 52 and 57, and a new Public Safety Center (PSC)
that incorporates Fire Station 51. These three projects are collectively referred to as “Phase 1”
of the City’s Essential Facilities Program. They have all been successfully completed, occupied
and are operational. The Essential Facilities program also includes the design, construction, and
management of Fire Stations 54 and 55, referred to as “Phase 2”.
Fire Stations 54 and 55 were designed and built in the mid-1960s and are now beyond their
useful life.
Fire Station 54 is located at 46 Castro Avenue in the Canal neighborhood. It contains an
apparatus bay composed of a steel-framed structure that houses one engine and the City’s
ladder truck. The apparatus bay is salvageable but requires seismic upgrades. The living
quarters consist of a single-story wood-framed structure which has become obsolete due to age
and deterioration. The living quarters include a living area, kitchen, sleeping quarters, and a
restroom. The living quarters do not meet current standards for seismic, the Americans with
Disabilities Act (ADA), or flood protection, and do not provide separate sleeping and restroom
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
space for male and female firefighters. The living quarters will be demolished, and a new code-
compliant structure will be constructed in its place.
Fire Station 55 is located at 955 Point San Pedro Road between Knight Drive and Peacock
Drive. This station was also built in the 1960s and is mostly a wood-frame structure. The
apparatus bay is a wood-frame structure supporting a steel girder roof system. The apparatus
bay requires significant seismic improvements but is salvageable. The living quarters, kitchen
and sleeping quarters are almost identical to Station 54, with the same issues, and are also
beyond their useful life. Like Fire Station 54, the living quarters at Fire Station 55 will be
demolished and a new code-compliant structure will be constructed in its place.
The Department of Public Works issued a request for bids for the renovation of the two fire
stations in May of 2021. The City received two bids. The contractors who submitted bids were
Build Group, Inc., and F&H Construction. The apparent low bidder, Build Group, Inc., withdrew
its bid due to a clerical error. The only responsive bidder left was F&H Construction with a total
bid amount of approximately $10.6M. The City decided to reject the bid and rebid the projects.
On September 1, 2021, the project was re-advertised in accordance with San Rafael’s Municipal
Code. On September 30, 2021, bids were received. The lowest responsible bidder was
Wickman Development and Construction with a total bid amount of $8,809,000.
This rebid process successfully realized a $1.7M in savings compared to the first bid results.
On October 18, 2021, the City Council adopted Resolution 14988 awarding and authorizing the
City Manager to execute a construction agreement for the Fire Station 54 and 55 Project to
Wickman Development and Construction in the amount of $8,809,000 and authorizing
contingency funds in the amount of $880,900, for a total appropriated amount of $9,689,900.
On January 10, 2022, the City issued Notice to Proceed with Construction of the Essential
Facilities Phase 2, Fire Station 54 and 55, to Wickman Development and Construction.
Construction of the project began shortly after the Notice to Proceed.
ANALYSIS:
The Fire Station 54 & 55 basis of design was to salvage and reuse the apparatus bays and
rebuild the living quarters. Although this approach resulted in considerable savings, the
construction team has also encountered a number of unforeseen conditions that are above and
beyond industry standards, which has nearly exhausted the construction contingency funds.
For example, at Fire Station 54 the entire apparatus bay structure had an extraordinary level of
settlement due to the unstable soil conditions. During demolition, the contractor discovered
concrete slab and column settlement on the north side of the building of as much as eight
inches. This amount of building settlement could only be overcome by demolishing, reinforcing,
and replacing the apparatus bay concrete floor in full. In addition, structural beams members
had to be added and a column to roof heavy gate metal had to be designed, fabricated, and
installed.
At Fire Station 55, several instances exceeded expectations of unforeseen conditions typical of
a project of this size. The construction team discovered an underground fuel storage tank that
had to be removed. Rules and regulations associated with underground fuel storage tank
removal are intricate and time consuming as various agencies, CUPA & BAAQMD, have to be
involved and supervise the process from beginning to end. This process caused the project to
expend additional resources to complete construction elements around the tank excavation until
it was removed and fully closed.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Also, at Fire Station 55, the existing sanitary sewer piping under the building had been
compromised beyond repair and couldn’t be reused as planned. Instead in had to be fully
replaced.
The original budget for Phase 2 was in place before the onset of the pandemic. The disruptive
nature of the pandemic, along with the Shelter-in Place Order that began in March of 2020,
caused a worldwide break in supply chains, and in turn instigated a radical shift in market
conditions which resulted in greatly increased building supply and construction costs.
Unfortunately, this trend of overinflated materials and labor costs has continued through the
duration of construction of the two fire stations.
Extraordinary unforeseen conditions and rising materials and labor costs have caused a much
faster use of contingency funds by the project team.
PUBLIC OUTREACH:
City staff from Community Development, Public Works, the Fire Department, and the City
Manager’s Office have participated in extensive public outreach to neighbors and other
interested parties regarding the two projects. Both projects were reviewed by the Design Review
Board and the Planning Commission. The City Council conducted public meetings and
ultimately approved these two Fire Station projects as part of Phase 2 of the Essential Facilities
Strategic Plan. The public was also be contacted prior to demolition and noticed prior to the start
of construction activities. For more information on public outreach, please see the Essential
Facilities Public Input webpage.
During construction, City staff continues to communicate with homeowner associations,
neighborhood leaders, and the general public to provide them with construction updates and
any potential impacts to the community.
FISCAL IMPACT:
Staff recommends the City Council approve an additional project contingency amount of
$450,000 to complete the construction of the Project, detailed in the below table.
Original Bid Total $ 8,809,000
10% Original Contingency $ 880,900
Contingency Increase $ 450,000
Total Construction Contingency
(approx. 15%)
$ 1,330,900
This will be appropriated from the Essential Facilities Capital Projects Fund #420 (Project
numbers 11394 and 11395). This fund has been accumulating a portion of Measure E tax
dollars for the purpose of these projects and has a sufficient balance set aside to support the
total project budget amount.
OPTIONS:
1. Adopt the resolution as presented.
2. Do not adopt the resolution and provide direction to staff. If this option is chosen,
construction will likely need to be delayed indefinitely until a new source of funds is
identified.
ATTACHMENTS:
1. Resolution authorizing additional contingency funds for the Fire Station 54 and 55
Project in the amount of $450,000
RESOLUTION NO. 15141
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING
ADDITIONAL CONSTRUCTION CONTINGENCY FUNDS FOR PHASE 2 ESSENTIAL
FACILITIES PROJECTS – FIRE STATIONS 54 AND 55, IN AN AMOUNT NOT TO EXCEED
$450,000, FOR A TOTAL CONSTRUCTION CONTINGENCY AMOUNT OF $1,330,900
WHEREAS, on the 1ST day of September 2021, City staff solicited contractor bids for the
Essential Facilities Construction Project – Fire Stations 54 and 55, City Projects No. 11394 and
11395 respectively; and
WHEREAS, having advertised and solicited construction bids in accordance with the
City’s Municipal Code, sealed bids were received on the 30th day of September 2021 for the
project entitled “FIRE STATION 54 AND 55” City Project Numbers 11394 and 11395, in
accordance with the plans and specifications therefore on file in the office of the Department of
Public Works; and
WHEREAS, on the 18th day of October 2021, the City Council adopted resolution 14988
for the construction contract award to the lowest responsible bidder, Wickman Development and
Construction, in the bid amount of $8,809,000 and authorized a construction contingency in the
amount of $880,900; and
WHEREAS, on the 10th day of January 2022, a Notice to Proceed with construction was
issued to Wickman Development and Construction; and
WHEREAS, the basis for design accounted to fully salvage the apparatus bays and
rebuilding the living quarters; and
WHEREAS, during construction, the construction team encountered out of the ordinary,
unforeseen conditions that nearly exhausted the originally authorized construction contingency;
and
WHEREAS, City staff recommends an additional $450,000 of construction
contingencies; and
WHEREAS, there are sufficient funds in the Essential Facilities Capital Projects Fund to
support the additional construction contingencies.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
RESOLVES as follows:
1. An additional amount of $450,000 shall be available as a supplemental construction
contingency for the Essential Facilities Construction Project – Fire Station 54 and
55, and the Public Works Director is authorized to use such contingency funds to
authorize change orders to address unforeseen conditions during construction.
2. Additional funds totaling $450,000 will be appropriated for City Projects No. 11394
and 11395 from the Essential Facilities Capital Projects Fund (#420).
3. The Public Works Director is hereby authorized to take any and all such actions and
make changes as may be necessary to accomplish the purpose of this resolution.
I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing
resolution was duly and regularly introduced and adopted at a regular meeting of the
Council of said City on the 17th day of October 2022, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
