Title
Recommendation to Ratify an Agreement with Silverado Construction, Inc. for the Required Abatement and Demolition Project at Building 78 for an Amount Not-to-Exceed $747,500, Including Contingency; and
Adoption of Resolution Appropriating $1,000,000 from the Alameda Point Fund (Fund 290) Available Fund Balance to Alameda Point Fund (Fund 290) Available Fund Balance Project C75400, Alameda Point Fiscal Year 2026-27 Capital Improvement Budget. [Requires four affirmative votes]
In accordance with California Environmental Quality Act (CEQA), this project is statutorily exempt from further environmental review pursuant to Public Resources Code Section 21080(b)(4) and CEQA Guidelines Section 15269(c) relating to actions necessary to prevent or mitigate an emergency. (Base Reuse and Economic Development C75400)
Body
To: Honorable Mayor and Members of the City Council
From: Gerry Beaudin, City Manager
EXECUTIVE SUMMARY
On September 17, 2026, the City of Alameda’s (City) Chief Building Official issued a Declaration of Unsafe Building and Notice to Vacate (case number VB26-0009) for the City-owned building located at 2301 Sunrise Court, Alameda, California (known as Building 78 at Alameda Point) based on a structure fire that occurred early morning of September 17. City staff acted under the emergency powers granted to the City Manager pursuant to Alameda City Charter Section 3-15.2 to address the imminent public safety hazard. The City Manager executed an agreement on September 22, 2026, with Silverado Construction, Inc. (Silverado), in an amount not-to-exceed $747,500, including contingency, to provide services required to demolish the building in response to the emergency (Agreement). City Council is now asked to ratify the Agreement and adopt a Resolution amending the Fiscal Year (FY) 2026-27 Alameda Point Capital Improvement Budget for Project C75400, appropriating $1,000,000 from Alameda Point (Fund 290) available fund balance to cover the cost of the abatement and demolition.
BACKGROUND
Building 78 is an approximately 17,724 square foot, H-shaped building located at 2301 Sunrise Court (near the intersection with Rainbow Court) at Alameda Point and depicted in Exhibit 1 (Site Plan). It was originally built in 1942 to serve as military barracks, and used for the Women Accepted for Volunteer Emergency Service (WAVES) program during World War II. The structure is a two-story wood frame building on a concrete foundation with a cross-gable roof. It is not a contributing feature of the Alameda Point Historic District and is located outside of the boundary of the NAS Alameda Historic District. The building, however, is located within the footprint of the approved West Midway Development Project, the second phase of RESHAP (Project), and is scheduled for demolition in a future phase. Demolition of Building 78 and other buildings within the Project's footprint was discussed during the Planning Board, Historic Advisory Board, and City Council reviews of the Project. The project’s developers, Catellus and Brookfield (Developers), under the Disposition and Development Agreement (DDA) for the Project, were to undertake the demolition upon commencement of the third phase of market-rate housing construction.
In the early morning of September 17, 2026, the Alameda Fire Department extinguished a significant fire that damaged the entirety of Building 78. Following inspections later that day, the City’s Chief Building Official issued a Declaration of Unsafe Building and Notice to Vacate, and the Investigation Inspection Report (Notice and Inspection Report) included as Exhibit 2. The notice declared Building 78 an unsafe building in accordance with Section 116 of the California Building Code.
The Notice and Inspection Report determined that the structure of Building 78 had sustained damage that significantly compromised its structural integrity and stability, presenting an imminent danger of partial or immediate collapse. Attempting to structurally stabilize and abate the hazardous materials on site, to then hold it vacant for future demolition in a future phase of the development Project is not considered a safe or reasonable means of addressing the immediate threat. Therefore, the structure must be demolished, and City staff will address this action and its costs and implications with the Developers in alignment with the terms of the DDA.
The Notice and Inspection Report lists specific Required Actions that the City, as the property owner, must take in a timely manner, including immediately securing the site retaining a properly licensed contractor and obtaining all necessary permits for demolition within 10 days; and completing the demolition within 30 days.
DISCUSSION
Compliance with Notice and Inspection Report
Below is the current status of completion of the required actions in the Notice and Inspection Report:
1. Secure the site against unauthorized entry. Staff promptly installed permanent fencing around the property's perimeter as well as closed a portion of Sunrise Court temporarily until a building wall identified as structurally unsound can be demolished. Alameda Point contracted security firm, Citiguard, has increased security monitoring. Staff continue to inspect the fence and gates to ensure the building is secure.
2. Retain a properly licensed contractor and permits for demolition within 10 days. On September 22, 2026, the City Manager executed a contract with Silverado Construction, Inc., in an amount not to exceed $747,500. Silverado was selected based on its successful, timely, and under-budget completion of the demolition of several prior buildings at Alameda Point. The City Manager also executed a contract with Terraphase Engineering, Inc. to conduct environmental monitoring and support with permit applications and compliance in an amount not to exceed $70,000. Terraphase is the City’s environmental consultant with extensive familiarity with Alameda Point and, in this role, has overseen the demolition of at least four buildings and the removal of contaminants from the West Midway development site.
3. Secure permits for all work. Permit applications are in process.
4. Complete Demolition within 30 days. Demolition was scheduled to commence on September 23, 2026, and the contractor anticipates completion within a two-week period. Only the structure will be demolished; Catellus and Brookfield will remove foundations and finalize site work as part of the planned development schedule.
Demolition Contract
To meet the schedule of the Required Actions from the Chief Building Official, the City Manager has taken immediate action to address the hazard to public safety by executing an Agreement with Silverado Construction, Inc. (Silverado) for an amount not to exceed $747,500, including contingency (Exhibit 3), under the emergency authority granted to the City Manager, per Alameda City Charter Section 3-15.2. The final demolition plan for the structure is subject to approval by the Chief Building Official. In compliance with the Alameda City Charter and the California Uniform Public Construction Cost Accounting Act (Pub. Contract Code, Sections 22000-22045 [CUPCCAA]), Staff is requesting that City Council take action to ratify the Silverado Agreement.
Given the emergency nature of this demolition, staff was unable to complete a full publicly advertised procurement for this work per CUPCCAA requirements and the City’s standard public procurement process. Silverado, or its subcontractors, as required, will hold all certifications for demolition, abatement, and disposal, and perform work in compliance with all City requirements. Silverado has performed similar emergency demolition work in the past in a satisfactory manner for the City. Additionally, Silverado was the lowest responsive and responsible bidder for the Building 116 demolition work completed last year and can begin work immediately.
In accordance with Alameda City Charter 3-15.2 and CUPCCAA (specifically, Government Code section 22050), staff will return to each regularly scheduled City Council meeting to provide an updated report on ongoing efforts to address the emergency until the work is completed to the satisfaction of the Chief Building Official.
Demolition-Related Service Provider Agreements and Estimated Costs
|
Service Provider |
Services |
Costs |
|
Silverado Construction, Inc |
Demolition Contract, including contingency |
$747,500 |
|
Terraphase Engineering |
Environmental Consulting Services |
$70,000 |
|
Balfour Inc. |
Exterior Security Fencing |
$8,500 |
|
Citiguard Inc. |
24-hour security |
$10,000 (estimated) |
|
Various |
Permit Application & Inspection Fees |
$20,000 (estimated) |
|
Department of Toxic Substances Control |
Generation and Handling Fees |
$20,000 (estimated) |
|
Temporary Utilities Costs |
Water usage, temporary power, etc. |
$10,000 (estimated) |
|
Contingency |
Estimated contingency for unexpected costs |
$100,000 |
|
|
Total Estimated Additional Expenses |
$ 1,000,000 |
ALTERNATIVES
• Modify the scope of work and/or adjust the approved construction agreement authorized amount. In this case, the agreement should account for expended funds and City Council should recommend an alternative plan for compliance with the Notice to Vacate and Inspection Report to ensure the safety of the general public.
FINANCIAL IMPACT
The Alameda Point fund (Fund 290) has sufficient unencumbered available fund balance to fund the $1,000,000 appropriation to the Alameda Point Capital Project (Fund 301), Project C75400.
|
Budget Request |
Revenue/ Expenditure |
Fund Number |
Fund Description |
Project Number |
Project Name |
Budget Amount |
|
New Appropriation Request |
Increase Expenditure Budget |
290 |
Alameda Point Fund |
C75400 |
Alameda Point Capital Improvement Fund |
$1,000,000 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code (AMC), and Alameda City Charter Sec. 3-15.2.
This project supports the City Strategic Plan priority to Invest in Transportation, Infrastructure, Economic Opportunities & Historic Resources.
This project supports the City Housing Element, contributing to planned demolition necessary for the delivery of new supportive housing.
AMC section 13-21.5 provides for emergency action by the Chief Building Official, in coordination with the Secretary to the Historical Advisory Board, to abate hazardous conditions.
This action is subject to the Levine Act.
ENVIRONMENTAL REVIEW
In accordance with CEQA, this project is statutorily exempt from further environmental review pursuant to Public Resources Code section 21080(b)(4) which applies to “specific actions necessary to prevent an emergency.” Public Resources Code section 21060.3 defines “Emergency” as “a sudden, unexpected occurrence, involving a clear and imminent danger, demanding immediate action to prevent or mitigate loss of, or damage to, life, health, property, or essential public services. ‘Emergency’ includes such occurrences as fire, flood, earthquake, or other soil or geologic movements, as well as such occurrences as riot, accident, or sabotage.”
For purposes of CEQA, the emergency determination that triggers Public Resources Code section 21080(b)(4) is based on the Chief Building Official’s September 17, 2026 Notice and Inspection Report which declares Building 78 unsafe and dangerous. The Notice and Inspection Report further requires the City to immediately secure the site from unauthorized access, retain a properly licensed contractor and obtain all permits necessary for demolition within 10 days; and complete the demolition within 30 days.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Ratify an agreement with Silverado Construction, Inc. for the required abatement and demolition project at Building 78 for an amount not-to-exceed $747,500; and
Adopt a resolution to appropriate $1,000,000 from the Alameda Point Fund (Fund 290) Available Fund Balance to Alameda Capital Project Fund (Fund 301) Project #C75400, Alameda Point Fiscal Year 2025-2026 Capital Improvement Budget.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Alesia Strauch, Base Reuse Manager
Financial Impact section reviewed,
Ross McCarthy, Finance Director
Exhibits:
1. Site Plan
2. Notice and Inspection Report
3. Silverado Contract