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Home My WebLink About2022-03-22; City Council; ; Authorization of Additional Appropriation for the Temporary Fire Station No. 7 ProjectCITY COU NC IL Staff Report Meeting Date: To: From: Staff Contact: March 22, 2022 Mayor and City Council Scott Chadwick, City Manager Paz Gomez, Deputy City Manager, Public Works paz.gomez@carlsbadca.gov, 442-339-2751 John Maashoff, Public Works Manager joh n.maashoff@carlsbadca.gov, 442-339-2856 CA Review AF Subject: Authorization of Additional Appropriation for the Temporary Fire Station No. 7 Project District: 2 Recommended Action Adopt a resolution authorizing an appropriation of $922,000 from the Public Facility Fee Fund for the Temporary Fire Station No. 7 Project, Capital Improvement Project, No. 4091. Executive Summary On May 11, 2021, the City Council adopted Resolution No. 2021-111, approving the work plan to achieve the City Council goal of "Bring the Fire Department into conformance with standards of cover evaluation." Objective #2 of the work plan states: Staff a temporary Fire Station, or FS, No. 7 in the area of Cannon Road west of lnterstate-5, or 1-5, with an estimated completion date of January 2023 and procure a new fire engine with an estimated completion date of January 2023. On June 8, 2021, the City Council approved this project, CIP Project No. 4091, and appropriated $900,000 to build temporary Fire Station 7. This work includes preparing the selected site and moving two city-owned temporary structures from the temporary Fire Station 2 site, next to the City Library on Dove Lane, to the chosen site west of 1-5. Due to various reasons, including a change of location from the original proposed sites, unanticipated utility costs, material cost increases due to inflation, additional operational needs, more granularity on consultant fees, and license costs, the estimated total project cost is now $1,821,614. To date, $37,844 has been expended or encumbered for permit applications and consultant support, leaving an estimated total remaining project cost of $1,783,770. Staff request the City Council authorize the appropriation of $922,000 from the Public Facility Fee Fund to the project to cover this difference. City Council authorization is required to appropriate additional funds to the Capital Improvement Program project budgets. March 22, 2022 Item #7 Page 1 of 10 Discussion Identifying a site Before staff's May 11, 2021, presentation to the City Council, staff had identified two potential sites for the temporary Fire Station 7: 1. A city-owned future park site property west of the railroad tracks, south of (::annon Road 2. A triangular parking lot east of Carlsbad Boulevard, north of Cannon Road and just north of Cannon Park owned by San Diego Gas & Electric However, for a combination of reasons, including environmental concerns and the uncertainty of timelines associated w ith the SDG&E site, staff determined those sites could not be made rea dy to accommodate a temporary fire station by the January 2023 target, as outlined in the Council goal. Staff then identified a third site, on the NRG property around the power plant. The site is at 4600 Carlsbad Blvd., east of Carlsbad Boulevard and just south of the Agua Hedionda Lagoon, as shown in the map in Exhibit 2. Staff considered a warehouse and an administrative building that NRG intended to demolish as possible temporary homes for the fire station. However, because of the high cost of alterations and additional costs associated with demolition of other buildings that would be required, this plan was also abandoned. Staff now plan to create a temporary fire station by using the city-owned structures currently being used for temporary Fire Station 2. These structures, a t railer and a Sprung structure - Sprung is the brand name for a type of movable building made of fabric tautly stretched over a frame -are now in the parking lot next to the City Library. They would be re located onto the concrete pad left after the recent demolition of the NRG warehouse building. The site of the administration building, which has yet to be torn down, is to serve as the yard to lay down fire hoses. The Sprung structure will be expanded in size from 1,600 square feet to 3,200 square feet, A second trailer for sleeping quarters of approximately 1,404 square feet will be procured and placed next to the city-owned trailer. March 22, 2022 Item #7 Page 2 of 10 City staff are currently working with NRG's staff to reach agreement on the terms of and to draft a license agreement for the city's use of the site, the adjacent pavement, ingress, egress to the site and access to a rescue watercraft area. This proposed agreement will be presented for the City Council's consideration in a future staff report. Permitting requirements The Community Development Department determined that the anticipated fire and lifeguard services is a conditionally permitted use under the current zoning on the property. That means placing the trailers and Sprung structure on the site requires approval of an administrative conditional use permit for mobile buildings issued by the city as well as a coastal development permit issued by the California Coastal Commission. Community Development issued the conditional use permit Dec. 20, 2021, a month after the application was filed. The coastal development permit application, however, which was submitted Jan. 21, 2022, and was deemed complete on Feb. 22, 2022, {application 6-22-0071) is still being reviewed by Coastal Commission staff and has yet to be_ scheduled for a hearing for the commission's considerat ion. While the city had control over the permit processing time for the conditional use permit, the city has no control over the Coastal Commission's review schedule. To help expedite the Coastal Commission's review, city st aff have held preliminary meetings with the commission's staff and intend to continue those discussions until the permit is approved. Estimated costs and timelines Staff estimate a design and construction cost of approximately $1.5 million to relocate the structures from temporary Fire Station 2, expand the Sprung structure, procure a second housing trailer and repair and/or relocate the utilities. Additionally, an estimated cost of $200,000 in current dollars has been identified for the future removal of the temporary Fire Station 7 structures. This is required by the proposed license agreement with NRG and is expected to occur in 96 months or less, dependent on whether any or all options are exercised. Because the removal of the temporary structures is not expected to occur for at least six years and potentially longer, this $200,000 estimate has been escalated using a 7% escalation factor per year to an estimate of $345,000 in 96 months. Staff are not requesting the City Council appropriate this est imated $345,000 now, but staff identified it as a cost the city must fund in t he future as part of the construction costs of the permanent Fire Station 7. The draft license agreement currently includes an annual license fee payment of $30,000, subject to 3% annual increases -which would total $266,770 over eight yea rs -as well as the costs of connect ing all necessary utilities and subsequent annual operational utility expenses. However, the license agreement is still in draft form and the final terms of the license agreement, including the annual license fee amount, may be somewhat different. (As noted above, the license agreement will be presented to the City Council for its considerat ion in a future staff report.) If the City Council authorizes the license agreement with NRG, staff will then begin developing the plans, specifications and contract documents for relocating the temporary structures from temporary Fire Station 2, expanding the Sprung structure, procuring a second trailer and March 22, 2022 Item #7 Page 3 of 10 connecting the needed utilities. This work has a target complet ion date of January 2023, in accordance with Objective #2 of the work plan. This timeline is dependent on the city receiving the conditional development permit from the Coastal Commission at least before late summer 2022. If the commission does not approve t he permit by then, this timeline will need to be adjust ed. This timeline might also need to be adjusted if there are any delays to the ongoing construction project of Fire Stat ion 2, which would delay t he availability of the temporary Sprung st ructure and trailer. Reasons for cost increases In spring 2021, when staff provided an estimate of $900,000, there were many unknowns t hat influenced the estimate and many assumptions did not come to fruition. Staff were initially considering two sites, including a city-owned parcel. After closer review of the two original proposed sites, it became clear that they were not viable options. The proposed NRG site became the lead site, but estimated lease costs of $266,770 over a period of 96 months were not anticipated in spring 2021. The selected site also has some water, sewer and electrical utility issues including a need to reconstruct a lift station, which were not previously anticipated. The additional lift station costs for design and construction are estimated to be $211,000. Additionally, material costs increased substantially for the additional temporary structures. Initially, the temporary structures at temporary FS No. 2 were to be relocated at minimal cost. The increase in costs for the additional temporary structures is approximately $111,000 and can be attributed to inflation, material cost increases, supply chain issues and more granularity of the specific needs. The original estimate also did not include a 10% construction contingency estimate. Now that staff have more certainty in the proposed site location, more granularity in the design and construction scope of work and actual quotes from consultants and vendors, a more realist ic cost est imate has been developed. The original estimate of $900,000 also did not include the cost of removing the temporary structures at the end of the license term, as required by the terms of the license. Therefore, staff identified an estimate of $200,000 in current year dollars for demolit ion, which is estimated to be $345,000 in 96 months at the end of the license agreement if all options are exercised. Future appropriation will be required for t he removal of the temporary structures at the end of the license term, which will be included as part of the costs of constructing t he permanent FS No. 7. Staff request authorization of an appropriation of $922,000 from the Public Facility Fee Fund to the project. Proposition H consideration Proposition H, a citizen-led initiative approved by voters in 1982 and codified as Chapter 1.24 of the Carlsbad Municipal Code, established certain limits on city spending from its General Fund. Section 1.24.030 of the code states: March 22, 2022 Item #7 Page 4 of 10 The city shall make no real property acquisition and/or no improvements to real property, the cost of which exceeds one million dollars in city funds, unless the proposed acquisition and/or improvement project and the cost in city funds is first placed upon the ballot and approved by a majority of the voters voting thereon at an election. The Proposition H guidelines specifically state that public facilities fees are not considered "city funds" for the purposes of Proposition H. The guidelines state: "City funds" shall mean City of Carlsbad general fund monies; federal general revenue sharing monies and all other monies similar to t hose funds. In essence, "City Funds" are TAX MONIES, collected City-wide, which are subject to the limitations of Proposition 13 and the Gann Initiat ive. In general, fees which are received from new development to provide additional facilities, should be exempt. For example, the following fees would not be subject to t he ordinance: C. Public facilit ies fees Because the total General Fund expenditure will be less than $1 million and public facility fees are not su bject to Proposition H, a public vote is not required for this action under t he terms of Proposition H. Options Staff provide the following options for the City Council's consideration: 1. Adopt a resolution authorizing an appropriation of $922,000 from the Public Facility Fee Fund for the Temporary FS No. 7 Project, CIP Project No. 4091 Pros • The NRG site is the most viable location for the temporary fire stat ion • Will advance the City Council goal by placing a fire station west of 1-5 to accommodate necessary emergency response • Will assist in having t he temporary fire station completed by the City Council goal target date of January 2023. • Construction costs are currently increasing, and moving forward with the project now will likely cost less than if the project were delayed to a later date Cons • Public facility fee funds in the amount of $922,000 will not be available for other City Council-priority projects 2. Do not adopt a resolution authorizing an appropriation of $922,000 from the Public Facility Fee Fund for the Temporary FS No. 7 Project, CIP Project No. 4091 Pros • Public Facility Fee funds in the amount of $922,000 will be available for other City Council-priority projects Cons • Delays much needed fire and rescue services west of 1-5 March 22, 2022 Item #7 Page 5 of 10 • The City Council goal of establishing temporary FS No. 7 by January 2023 will not be met • Authorizing this scope of work at a future date will likely require a greater expenditure of funding Staff recommend Option 1 for the City Council's approval. Fiscal Analysis The total remaining project cost for the Temporary Fire Station No. 7 Project is projected to be $1,783,770, including estimated license agreement costs of $266,770, design costs of $362,000 and a 10% construction contingency of $105,000. Funding from the general capital construction funds in the amount of $900,000 have been previously appropriated for the project, as shown below: Temporary Fire Station No. 7 Project, Capital Improvement Program Project No. 4091 Total appropriation to date $900,000 Total expenditures/encumbrances to date $37,844 --Total available balance $86J,156 Design costs $362,000 Construction costs $1,050,000 Construction contingency (10%} $105,000 License costs for 96 months (current estimate) $266,770 T<>talremaining project costs \; · ' . _.,,, $1,783,770 z., .. .,,., ... . '>: ,,.:-. . Additional appropriation neec!ed ' $921,614 Additional appropriation requested $922,000 The.Public Facility Fee Fund balance is sufficient to support the requested $922,000 appropriation related to the project. The fund balances are shown in the chart below. Public Facility Fee Fund Fund balance at June 30, 2021 $30,801,681 Total commitments to existing projects through FY 2021-22 $3,571,110 Totafavailable f1.mding $27,230,571 Temporary Fire Station No. 7, CIP Project No. 4091 $922,000 Remaining avai1able funding after appropriation $26,308,571 Next Steps The license agreement will be presented to t he City Council for consideration in a future staff report. If the City Council authorizes the license agreement with NRG, staff will proceed with developing design documents for the project. March 22, 2022 Item #7 Page 6 of 10 Over the next several months, staff will return with the actions t hat will be required to construct temporary Fire Station 7 for City Council approval when appropriate. The California Coastal Commission's approval of the coastal development permit, which is anticipated by late summer 2022, w ill be required before the City Council can approve the award of a construct ion contract. The temporary structures near the Dove Library will ,be available for relocation once t he ongoing construction of permanent Fire Station 2 is completed, which is expected in October 2022. Construction of the temporary Fire Station 7 is expected to occur from October 2022 to January 2023. Separately, staff will also be working to find a permanent site for Fire Station 7, which is Objective #3 of the work plan. Environmental Evaluation The City Planner has determined that the project belongs to a class of projects that the State Secretary for Natural Resources has found do not have a significant impact on the environment, and it is therefore categorically exempt from the requirement for the preparation of environmental documents in accordance with to CEQA Guidelines Section 15301 (b) -Existing facilities; Sect ion 15303 (c) -Construction or conversion of small structures; and Section 15304 (f) -Minor alterations to land. In making t his determination, the City Planner has found that the exceptions listed in Section 15300.2 of the CEQA Guidelines do not apply to this project. The project is consistent with 15301 (b) because it is located on a developed site with existing parking and utilities such as gas, sewer, water, and electrical amenities. The project is consistent with Section 15303 (c} because the two temporary bui ldings would house a maximum of seven staff members and contain two offices that are each less than 2,000 square feet and, combined, are less than 6,000 square feet. The project is consistent with Section 15304 (f) because there will be minor t renching conducted to connect to existing underground utilities and the surface would be restored. Public Notification and Outreach Staff will continue to keep the public informed by posting updates on the project at carlsbadca .gov/ de partments/fi re/fire-de pa rtme nt-i mprovements This item was noticed in accordance with the Ralph M. Brown Act and available for viewing at least 72 hours prior to the meeting. Exhibits 1. City Council resolution 2. Location map March 22, 2022 Item #7 Page 7 of 10 RESOLUTION NO. 2022-079 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING ADDITIONAL APPROPRIATION FOR THE TEMPORARY FIRE STATION NO. 7 PROJECT Exhibit 1 WHEREAS, on May 11, 2021, the City Council adopted Resolution No. 2021-111, approving the work plan to achieve the City Council goal of "Bring the Fire Department into conformance with standards of cover evaluation"; and WHEREAS, on June 8, 2021, the City Council approved Temporary Fire Station No. 7, Capital Improvement Program, or CIP, Project No. 4091 and appropriated $900,000 for the project; and WHEREAS, staff identified a site located on the NRG property for Temporary Fire Station No. 7, which is located east of Carlsbad Boulevard, immediately south of the Agua Hedionda Lagoon, located at 4600 Carlsbad Boulevard; and WHEREAS, due to various reasons including a change of location from the original proposed sites, unanticipated utility costs, material cost increases due to inflation, additional operational needs, more granularity on consultant fees, and license costs, the current estimated cost is $1,783,770; and WHEREAS, additional appropriation of $922,000 is requested to complete the project; and WHEREAS, sufficient funding of $922,000 in the Public Facility Fee Fund is available; and WHEREAS, the City Planner has determined that the project belongs to a class of projects that the State Secretary for Resources has found do not have a significant impact on the environment, and it is therefore categorically exempt from the requirement for the preparation of environmental documents pursuant to Section 15301 (b) -"existing facilities"; 15303 (c} -"construction or conversion of small structures"; and 15304 (f)-"minor alterations to land" of the CEQA Guidelines. In making this determination, the City Planner has found that the exceptions listed in Section 15300.2 of the state CEQA Guidelines do not apply to this project. The project is consistent with 15301 (b) because it is located on a developed site with existing parking and utilities such as gas, sewer, water, and electrical amenities. The project is consistent with Section 15303 (c) because the two temporary buildings that would house a maximum of seven staff members and would contain two offices are each less than 2,000 square feet and combined are less than 6,000 square feet. The project is consistent with Section 15304 (f) because there will be minor trenching conducted in order to connect to existing underground utilities and the surface would be restored. Exhibit 1 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the Deputy City Manager, Administrative Services, is authorized to appropriate $922,000 from the Public Facility Fee Fund to the Temporary Fire Station No. 7, CIP Project No. 4091. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 22nd day of March, 2022, by the following vote, to wit: AYES: NAYS: ABSENT: Hall, Blackburn, Bhat-Patel, Acosta, Norby. None. None. MATT HALCMayor -t"nV' FAVIOLA MEDINA, City Clerk Services Manager (SEAL) LOCATION MAP LAYDOWN AREA PROJECT NAME TEMPORARY FIRE STATION 7 Exhibit 2 PROJECT NUMBER 4091 EXHIBIT 2 Item #7 Page 10 o 10 Additional Appropriation for the Temporary Fire Station 7 Project Paz Gomez, Deputy City Manager, Public Works Nick Ordille, Assistant Fire Chief John Maashoff, Public Works Manager March 22, 2022 1 RECOMMENDED ACTION Adopt a resolution authorizing an appropriation of $922,000 from the Public Facility Fee Fund for the temporary Fire Station 7 ITEM 7 –TEMPORARY FIRE STATION 7 2 •March 11, 2021 –City Council set goal to “Bring the Fire Department into conformance with standards of cover evaluation.” •June 8, 2021 –Work plan approved by the City Council during the annual budget adoption ITEM 7 –TEMPORARY FIRE STATION 7 BACKGROUND Improve Fire Station 6 and procure two new ambulances •Complete OBJECTIVES ITEM 7 –TEMPORARY FIRE STATION 7 1 3 2 Construct and staff a temporary Fire Station 7 and procure new fire engine by January 2023 •Engine to be ordered July 2022 Establish permanent Fire Station 7 •2026 -2028 5 BACKGROUND 1 2 3 4 5 6 7•Call volumes •Station locations •Infrastructure •Temporary Fire Station 7 CIP Project 4091 with appropriation of $900,000 approved with annual budget •Fire Station 4 CIP transferred $5.1 million to general fund ITEM 7 –TEMPORARY FIRE STATION 7 BACKGROUND 7 •Two residential modular buildings •Sprung structure (garage) •Laydown yard •Staff parking •Direct access to Carlsbad Boulevard •Direct access to Agua Hedionda Lagoon PROJECT DESCRIPTION ITEM 7 –TEMPORARY FIRE STATION 7 PREFERRED LOCATION PROJECT STATUS Conditional Use Permit issued Coastal Development Permit, or CDP, application submitted to the California Coastal Commission CDP application deemed complete ITEM 7 –TEMPORARY FIRE STATION 7 10 Dec. 20, 2021 Jan. 21, 2022 Feb. 22, 2022 PROPOSED LICENSE AGREEMENT •Negotiations with NRG are ongoing •License agreement is in draft form, subject to change based on final license agreement •City Council consideration of license agreement in the future •Proposed terms –6 years + 2 1-year extensions •$30,000 per year + 3% annual increases (or $266,770 for 8 years) •Concrete pad, rescue watercraft access, ingress/egress ITEM 7 –TEMPORARY FIRE STATION 7 11 ORIGINAL ESTIMATE ITEM 7 –TEMPORARY FIRE STATION 7 12 Temporary structures –new and relocated $600,000 Design $300,000 Total $900,000 WHAT HAS CHANGED Different location, not at Cannon Lake Park or SDG&E sites, lease costs Additional lift station costs Material cost increases (inflation) More granularity on consultant costs We know more about needs ITEM 7 –TEMPORARY FIRE STATION 7 COSTS ITEM 7 –TEMPORARY FIRE STATION 7 14 Original Updated Temporary structures –new and relocated $600,000 $565,000 Lift station design and construction $211,000 Electrical, generator, plumbing, ADA ramps $281,000 Fire systems for preemption, exhaust control $16,000 Plus 7% escalator and 10% contingency $190,000 Design and preliminary planning $300,000 $291,844 Lease for 8 years *$266,770 TOTALS $900,000 $1,821,614 *license agreement is in draft form, subject to change COSTS ITEM 7 –TEMPORARY FIRE STATION 7 15 Original Cost Estimate $900,000 Updated Cost Estimate $1,821,614 Additional Funding Required Additional Funding Requested $921,614 $922,000 •Proposition H/CMC 1.24.030 –The city shall make no real property acquisition and/or no improvement to real property exceeding $1M in city funds unless approved by the voters •Public Facility Fee Funds –fees charged to developers to fund civic facilities •PFF funds are not considered “city funds” for the purposes of Proposition H and therefore the project is not required to be placed on a ballot for voter approval. TIMELINE 2022 March Council approves additional appropriation July Council approves design and authorizes bid for construction ITEM 7 –TEMPORARY FIRE STATION 7 January 2023 Temp FS 7 operational 2023 October Sprung structure delivery and temporary FS 2 relocation September Coastal Commission issues CDP; Council awards construction December Trailer delivery ConstructionApril/May Council authorizes license agreement with NRG and purchase of Sprung structure and trailer VARIABLES •Timeline contingent on Coastal Commission issuance of CDP by late summer •Timeline contingent on Fire Station 2 completion in October •Supply chain issues •Utility services –electric, water, sewer ITEM 7 –TEMPORARY FIRE STATION 7 17 NEXT STEPS •City Council authorization of sprung structure and trailer purchase •City Council approval of license agreement •Coastal Commission issuance of CDP •Relocation of trailers upon completion of Fire Station 2 construction •Construction of temporary Fire Station 7 ITEM 7 –TEMPORARY FIRE STATION 7 18 RECOMMENDED ACTION Adopt a resolution authorizing an appropriation of $922,000 from the Public Facility Fee Fund for the temporary Fire Station 7 ITEM 7 –TEMPORARY FIRE STATION 7 19 QUESTIONS? 21 COSTS Cost estimate Temporary structures –new and relocated $565,000 Lift station design and construction $211,000 Electrical, generator, plumbing, ADA ramps $281,000 Opticom, Plymovent $16,000 Plus 7% escalator and 10% contingency $190,000 Design $254,000 Lease for 8 years $266,770 TOTAL $1,783,770 22 ITEM 7 –TEMPORARY FIRE STATION 7 1 2 3