Title
Recommendation to Ratify a Construction Agreement with Silverado Construction, Inc. for the Required Abatement and Demolition Project at Building 114 for an Amount Not-to-Exceed $1,648,525; and
Adoption of Resolution Appropriating $2,000,000 from the Alameda Point Fund (Fund 290) Available Fund Balance to Alameda Capital Project Fund (Fund 301) Project #C75400, Alameda Point Fiscal Year 2024-25 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 Section15269(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: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On September 27, 2024, the City of Alameda’s (City) Chief Building Official issued a Declaration of Unsafe Building and Notice to Vacate (case number X24-0470) for the City-owned building located at 2450 Saratoga Street, Alameda, California (Building 114 at Alameda Point), based on a series of events described in more detail below. In response, City staff acted immediately under the emergency powers granted to the City Manager pursuant to Alameda City Charter Section 3-15.2 to address the public safety hazard. The City Manager executed a Construction Agreement (Agreement) with Silverado Construction, Inc., in an amount not-to-exceed $1,648,525 to provide services required to respond to the emergency. City Council is now asked to ratify the Agreement and adopt a Resolution amending the Fiscal Year (FY) 2024-25 Alameda Point Capital Improvement Budget, Project C75400, appropriating $2,000,000 from Alameda Point (Fund 290) available fund balance to fund the Agreement including funds for anticipated additional services related to this project as further described in the Discussion section. Staff is also providing an update to City Council in compliance with Government Code section 22050.
BACKGROUND
Building 114 is an approximately 76,895-square-foot, U-shaped building located at 2450 Saratoga Street at Alameda Point and depicted in Exhibit 1, “Site Plan.” It was originally built in 1944 to serve as a public works and maintenance shop during World War II. The structure includes a two-story office section located at the west end of the building facing Saratoga Street, and single story high-bay maintenance shops located in two wings to the east, referenced as the northeast and southeast wings. In the center of the U-shaped building is a separate open-sided materials storage barn, identified as Building 191.
Building 114 is a contributing feature of the Alameda Point historic district; Building 191 is not. The Historic Preservation Ordinance (Alameda Municipal Code [AMC] section 13-21.5) provides that in emergency situations the Chief Building Official, in consultation with the Secretary to the Historical Advisory Board, may order the abatement of the hazard “which will have the least detrimental effect on the affected historical resource” without obtaining a Certificate of Approval from the Historical Advisory Board. Pursuant to this section, the Historical Advisory Board was properly notified of this action when it was taken. (Exhibit 7.) City staff is providing an update to the Historical Advisory Board on November 7, 2024.
During the summer of 2022, the structure of the southeast wing of Building 114 along W. Ranger Avenue was impacted from a structure fire with further water damage from a major storm season that also affected the roof of the northwest wing along W. Midway.
On September 21, 2024, the Alameda Fire Department extinguished a fire in the courtyard of Building 114 and on September 27, 2024, 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, “Notice and Inspection Report”, declared Building 114 as an unsafe building in accordance with Section 116 of the California Building Code.
The Notice and Inspection Report determined the structure of Building 114 to be damaged by fire and decay causing the structural integrity to be severely compromised at several areas creating an immediate hazard with portions of the structure to likely be beyond repair. Further, the wall of the northeast wing facing W. Midway Avenue was noted to be no longer supported by the roof diaphragm. The Chief Building Official surmised that the building’s original design appeared to have deficiencies that may have also caused the rapid deflection and failure, and the mechanical, electrical and plumbing systems are severely compromised. The Chief Building Official also expressed concerns about the presence of hazardous materials (asbestos and lead).
The Notice and Inspection Report lists specific Required Actions the City, as owner, must take in a timely manner, which includes direction to obtain a demolition building permit within 30 days to address the hazardous condition, and to submit plans within 60 days for plan check to restore the building to a safe condition or complete the demolition as deemed necessary to ensure safety.
In response to the Required Actions, staff engaged Tipping Structural Engineers (Tipping), who had previously inspected the building in 2022 and 2023, to inspect the premises, and on October 3, 2024, received a detailed report (Structural Engineer Memo), which is attached as Exhibit 3. The Structural Engineer Memo confirms the Chief Building Official’s observations in the Notice and Inspection Report. Further, it notes that the extent of the roof collapse and damage at the northeast wing has visibly increased since previous visits made by the same engineering firm in 2022 and 2023. Staff asked Tipping to provide a limited rough order of magnitude cost for potential structural repairs, if it were feasible to rehabilitate the entire Building 114. The resulting estimate totaled over $4.7 million and is essentially a full reconstruction. The estimate does not include costs to remediate any hazardous materials, or rehabilitate non-structural or architectural elements, including demolition necessary to install new required structural elements, or soft costs for design, management and permitting. Lastly, it is known from prior inspections and historical data that Building 114 contains asbestos and the City’s environmental consultant, recently collected paint samples for testing and confirmed that lead is also present in the building’s primer and paint.
Staff is still gathering information and evaluating the feasibility of retaining a portion of Building 114. Page & Turnbull have been engaged to consult on the demolition. Staff, with the expertise of Page & Turnbull, will also evaluate whether any historically contributing features or materials could be preserved offsite for use in future development of the property. There is a high likelihood that these features will contain hazardous materials such as asbestos and lead, which will need to be considered in their removal, storage and potential reuse.
DISCUSSION
Compliance with Notice and Inspection Report
As discussed above, the Chief Building Official’s Notice and Inspection Report identified Required Actions the City, as owner of the building, must complete and Base Reuse staff are actively working to address these. Following is a list of the steps and the current status of completion:
1. Perform a structural assessment and shoring plan to support the structure to prevent further damage and a hazardous condition to the public. The Structural Engineer Memo provided an initial structural assessment, and further assessment is underway. If necessary, a shoring plan will be developed as the demolition project evolves.
2. Secure the structure against unauthorized entry. Staff recently installed permanent fencing around the perimeter of the property and have increased security monitoring. Staff are regularly inspecting the fence and gates to ensure the building is secured. While the recently improved portion of W. Midway Avenue may soon be reopened to vehicle traffic, the area adjacent to the northeast wing of Building 114 will remain closed until the hazards presented by Building 114 have been addressed.
3. Implement a method to ensure that any contaminants created by the fire or dilapidation do not leave the site or can enter the storm drain system and or public ways. Staff have hired a contractor who has installed drain socks to prevent contaminants for entering the storm drain system and public ways.
4. Obtain a J Permit from the Bay Area Air Quality Management District (BAAQMD) and a demolition building permit to remove the areas compromised beyond repair. The Chief Building Official further recommends demolition as the fastest path to safety. Staff requested, and been granted, an extension to the initial 30-day period provided, as these permits are typically secured by the demolition contractor which is included in the scope of the Construction Agreement with Silverado Construction, Inc.
5. Submit plans for plan check to restore the building or complete demolition as deemed necessary to ensure safety. Similar to Item 4, staff requested, and been granted, an extension to the initial 60-day period provided to submit plans, as these plans are typically submitted by the demolition contractor and is also included in the scope of work with Silverado Construction, Inc.
6. All utilities shall remain off until authorized by the Chief Building Official. Staff ensured utility services are off to the building. In addition, a temporary, non-functioning utility pole which was located adjacent to the structure on W. Midway Avenue in a compromising position has been removed.
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 a Construction Agreement on November 6, 2024 with Silverado Construction, Inc. (Silverado) for an amount not to exceed $1,648.525 attached as Exhibit 4 “Silverado Agreement,” under the emergency authority granted to the City Manager, per Alameda City Charter Section 3-15.2. The final demolition plan is subject to approval by the Chief Building Official. In compliance with the Charter and the California Uniform Public Construction Cost Accounting Act (Pub. Contract Code, §§ 22000-22045 [CUPCCAA]), Staff is requesting that City Council take action to ratify the Silverado Agreement.
Given the emergency nature of this demolition, staff were unable to complete a full publicly advertised procurement for this work per CUPCCAA and the City’s typical non-emergency process. However, staff consulted with three potential contractors to secure cost estimates for demolition scope: Silverado, A&B Construction, and Eleven Engineering. Silverado and Eleven were able to provide estimates in the timely manner required to advance emergency demolition. Silverado provided the lower cost estimate, had the required certifications for the hazardous materials abatement and utilizes union labor.
In addition, Kitchell Corporation is providing project management services in support of staff under an existing service provider agreement, as well as Page & Turnbull, attached as Exhibits 5 and 6. These services are separate from the Silverado Agreement signed by the City Manager, and the contract amounts for the Kitchell and Page & Turnbull contracts are below the $75,000 threshold requiring City Council approval. Kitchell Corporation has been the City’s project manager for the Building 24 roof replacement contract.
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 the ongoing efforts to address the emergency until the work has been completed to the satisfaction of the Chief Building Official.
Additional Demolition-Related Service Provider Agreements and Estimated Costs
|
Service Provider |
Services |
Costs |
|
Page & Turnbull |
Demolition and Stabilization Services |
$47,450 |
|
Kitchell |
Project Management |
$70,943 |
|
Tipping Structural Engineers |
Initial Structural Analysis |
$4,400 |
|
Stephen Schafer Photography |
HABS mitigation photography of Building 114 |
$1,700 |
|
A&B Construction |
Installation and Maintenance of BMPs for Stormwater (estimated) |
$4,982 |
|
Bailey Fencing |
Exterior Security Fencing (estimated) |
$12,000 |
|
Permitting Agencies |
Permit Application Fees (estimated) |
$10,000 |
|
Contingency |
Estimated contingency for unexpected costs |
$200,000 |
|
|
Total Estimated Additional Expenses |
$351,475 |
ALTERNATIVES
• Ratify the construction agreement with Silverado Construction, Inc. as executed by the City Manager.
• Modify the scope of work and/or adjust the approved construction agreement authorized amount.
• Do not ratify the construction agreement and provide direction to staff. Not ratifying the contract will delay demolition of Building 114 by several months, placing the City out of compliance with the directive of the Chief Building Official and extending the time that the community is exposed to the safety and environmental hazards posed by the building.
FINANCIAL IMPACT
The Alameda Point fund (Fund 290) has sufficient unencumbered, available fund balance to fund the appropriation of $2 million to 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 |
$2,000,000 |
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code, 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.
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 “[s]pecific 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 27, 2024 Notice and Inspection Report which declares Building 114 unsafe and unfit for continued human occupancy. The Notice and Inspection Report further requires the City to, within short time-frames, obtain a J permit from BAAQMD and a demolition building permit to remove the areas compromised beyond repair; and to submit plans for plan check to restore the building to a safe condition or complete the demolition as necessary to ensure safety.
Additionally, prior to demolition, the City will comply with Alameda Point EIR Mitigation Measure 4.D-1c (page 4-D-36-37) requirement to prepare an Historic American Building Survey (HABS) Level II documentation standards of the National Park Service.
CLIMATE IMPACT
There are no identifiable climate impacts or climate action opportunities associated with the subject of this report.
RECOMMENDATION
Ratify a construction agreement with Silverado Construction, Inc. for the required abatement and demolition project at building 114 for an amount not-to-exceed $1,608,045; and
Adopt a resolution to appropriate $2,000,000 from the Alameda Point Fund (Fund 290) Available Fund Balance to Alameda Capital Project Fund (Fund 301) Project #C75400, Alameda Point Fiscal Year 2024-25 Capital Improvement Budget.
Respectfully submitted,
Abigail Thorne-Lyman, Base Reuse and Economic Development Director
By,
Alesia Strauch, Base Reuse Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director
Exhibits:
1. Site Plan
2. Notice and Inspection Report
3. Structural Engineer Memo
4. Silverado Contract
5. Kitchell Contract
6. Page & Turnbull Contract
7. Notice to Historical Advisory Board