HomeMy WebLinkAbout2022-03-03; City Council Goal on Fire Department Conformance with Standards of Cover Evaluation's Work Plan Objective #2 Update (District 2); Gomez, PazTo the members of the:
CITY COUNCIL
Date 3/3/ A vCC
CM DCM (3)�
March 3, 2022
Council Memorandum
To: Honorable Mayor Hall and Members of the City Council
From: Paz Gomez, Deputy City Manager, Public Works
Via: Geoff Patnoe, Assistant City Manager � {city ofCarlsbad
Memo ID #2022026
Re: City Council Goal on Fire Department Conformance with Standards of Cover
Evaluation's Work Plan Objective #2 Update (District 2)
This memorandum provides an update on the previous Council Memorandum dated
Nov. 18, 2021, provided as Attachment A, on the City Council goal on Fire Department
Conformance with the Standards of Cover Evaluation's Work Plan Objective #2, which involves
establishment of a temporary Fire Station, or FS, No. 7.
Background
On June 8, 2021, the City Council approved Capital Improvement Program, or CIP, Project No.
4091 and appropriated $900,000 for the temporary FS No. 7 project. The scope of the CIP Project
No. 4091 is to identify and prepare a site in the vicinity ofCannon Road and Avenida Encinas for
the purpose of siting temporary FS No. 7.
On Nov. 18, 2021, staff provided Attachment A to the City Council with an update that the lead
site for temporary FS No. 7 is located on NRG property east of Carlsbad Boulevard, immediately
south of the Agua Hedionda Lagoon, at 4600 Carlsbad Boulevard. Development of temporary
FS No. 7 on the NRG property requires approval of an administrative Conditional Use Permit, or
CUP, for "mobile buildings" issued by the city and a Coastal Development Permit, or CDP, issued
by the California Coastal Commission.
Discussion
Permitting Requirements
The CUP was filed with the Community Development Department in November 2021 and was
processed and issued the following month on Dec. 20, 2021. Because the property is listed as a
"Deferred Certification" site under the city's Local Coastal Program, the CDP must be submitted
to and approved by the California Coastal Commission. The CDP was submitted on Jan. 21, 2022.
The California Coastal Commission staff deemed the CDP application (6-22-0071) as complete on
Feb. 22, 2022, and they indicated they would inform city staff of the anticipated hearing date as
they proceed with review of the proposal.
Public Works Branch
Fleet and Facilities Department
405 Oak Avenue I Carlsbad, CA 92008 I 442-339-2980 t
"ACM
Council Memo -City Council Goal on Fire Dept. Conformance with SOC Update (District 2)
March 3, 2022
Page 2
While the city had control over the permit processing time for the CUP review, the city does not
have control over the California Coastal Commission's CDP review times. As such, to help
expedite California Coastal Commission staff review, city staff held preliminary meetings with
California Coastal Commission staff and intend to continue those discussions until the permit is
issued.
License Agreement
City staff are working with the NRG staff to draft a license agreement for the concrete pad site
where the NRG administration and warehouse buildings currently exist and are scheduled to be
demolished, or were recently demolished, ingress/egress access and other adjacent areas. Staff
anticipate presenting the license agreement to the City Council for approval in early April.
Estimated Costs and Timelines
The total project cost for the Temporary FS No. 7 Project is projected to be approximately $1. 78
million, including license agreement costs, design and construction costs, and a 10% construction
contingency. Therefore, staff intend to return to the City Council later in March to request an
additional appropriation in the amount of $922,000 from the Public Facilities Fee Fund.
Additionally, an estimate of $200,000 in current dollars has been identified for future removal of
temporary FS No. 7 structures, which is required in the proposed license agreement with NRG
and is expected to occur in 96 months or less, dependent on if any or all license agreement
options are exercised. Since the removal of structures is not expected to occur for at least 72
months and potentially longer, the estimate of $200,000 has been escalated using a 7%
escalation factor per year to an estimate of $345,000 in 96 months. Appropriation for the
estimated $345,000 is being identified as a need that the city must fund in the future as part of
the construction costs of the permanent FS No. 7, which will be pursued separately as part of
Objective #3 of the Work Plan for the City Council goal.
The license agreement is currently being negotiated, but city staff anticipate the agreement will
require an annual rent payment of $30,000, subject to 3% annual increases, or $266,770 over
eight years. The city will also be required to pay for the costs of connecting all necessary utilities,
and subsequent annual operational utility expenses. The license agreement will be presented to
the City Council for consideration in a future staff report in early April.
If the City Council authorizes the license agreement with NRG, staff will initiate plans,
specifications and contract documents for relocating the temporary structures from temporary
FS No. 2, expanding the Sprung structure, procuring a second trailer and connecting needed
utilities; with a target completion date of January 2023.
Council Memo -City Council Goal on Fire Dept. Conformance with SOC Update (District 2)
March 3, 2022
Page 3
This timeline is dependent on timing of the California Coastal Commission CDP. If the California
Coastal Commission does not approve the CDP before late summer 2022, this timeline will need
to be adjusted to accommodate any delays. Additionally, if there are any delays to the ongoing
permanent FS No. 2 construction project, availability of the temporary Sprung structure and
trailer could be impacted, and the timeline will need to be adjusted.
Reasons for Cost Increases
In spring 2021, when staff provided an estimate of $900,000, there were many unknowns that
influenced the estimate and many assumptions did not come to fruition.
City 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 for
constructing a temporary FS No. 7 by January 2023. The proposed NRG site became the lead site,
representing the only option for meeting the January 2023 timeline. However, the license
agreement costs of $266,770 for eight years (rent) were not anticipated in spring 2021. The
selected site also has some water, sewer and electrical utilities 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 temporary structures. Initially, the
temporary structures at temporary FS No. 2 were to be relocated at minimal cost. The increase in
costs 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
city 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 realistic cost
estimate has been developed.
Funding Availability
The current budget of $900,000 in CIP Project No. 4091 is insufficient to cover the estimated
relocation costs of temporary structures, expansion of the Sprung structure, installation of a
second trailer at the site and utility repairs, as well as the costs associated with the license
agreement with NRG for eight years. City staff plan to return to the City Council later this month
to request an additional appropriation from the Public Facilities Fee Fund to complete the
project.
Amounts in excess of $1 million are anticipated to be funded from the Public Facilities Fee Fund,
which are expressly excluded from the definition of "city funds" under the Guidelines for
Council Memo - City Council Goal on Fire Dept. Conformance with SOC Update (District 2)
March 3, 2022
Page 4
Proposition H. Therefore, a Proposition H vote is not required for the funding model presented
because less than $1 million of General Fund money will be expended on the project.
Public Updates
To keep the public informed, updates can be found at the following website:
https://www.carlsbadca.gov/departments/fire/fire-department-improvements
Next Steps
Staff plan to request additional appropriation for CIP Project No. 4091 from the City Council later
this month. Staff also plan to present the draft license agreement for the NRG site to the City
Council for approval in early April.
Attachment: A. Council Memorandum dated Nov. 18, 2021
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Gary Barberio, Deputy City Manager, Community Services
Laura Rocha, Deputy City Manager, Administrative Services
Michael Calderwood, Fire Chief
Nick Ordille, Assistant Fire Chief
Jeff Murphy, Community Development Director
Kristina Ray, Community & Engagement Director
Roxanne Muhlmeister, Assistant Finance Director
John Maashoff, Public Works Manager
Don Neu, City Planner
Allegra Frost, Deputy City Attorney
Curtis Jackson, Real Estate Manager
·,.1
To the members of the:
{city of
Carlsbad
CITY COUNCIL
DatsJfilµ.l CA ~c --lL''
CM --¥'.''ACM ____u'DCM {3) k
ATTACHMENT A
Memo ID# 2021213
Council Memorandum
Nov.18,2021
To:
. From:
Via:
Re:
Honorable Mayor Hall and Members of the City Coundl
Paz Gomez, Deputy City Manager, Public Works
Geoff Patnoe, Assistant City Manager @
City Council Goal on Fire Department Conformance with Standards of Cover
Evaluation's Work Plan Objective #2 Update (District 2)
This memorandum provides an update on the City Council goal on Fire Department conformance
with the Standards of Cover evaluation's Work Plan Objective #2, which involves establishment
of a temporary Fire Station No. 7.
Background
Oh May 11, 2021, the City Council adopted Resolution No. 2021-111, approving the Work Plan to
achieve the City Council ,goal to "Bring the Fire Department into conformance with standards of
cover evaluation."
Objective #2 of the Work Plan states:
Staff a temporary Fire Station (FS) No. 7 in the area of Cannon Road west of lnterstate-5 (1-5)
with an estimated completion date of January 2023 and procure a new fire engine with an
estimated completion d?te of January 2023. Tasks include:
• Identify location and secure land use (if needed) for temporary FS No. 7
• Obtain discretionary approvals for temporary FS No. 7 (assumption voter approval
not required) ($300,000), includes community outreach ($50,000)
o Request for Proposals (RFP) for architectural and engineering s(;!rvices (July
2021)
o Award design contracts (October 2021)
o Design (November 2021-March 2022)
o Discretionary permits (April 2022-July 2022)
• Bid/construct temporary FS No. 7 ($600,000) (July 2022-January 2023)
• Relocate structure from temporary FS No. 2 and staff temporary FS No. 7 (January
2023)
• Procure new fire engine ($806,000) (order July 2022, receive January 2023)
Public Works Branch
Fleet and Facilities Department
405 Oak Avenue I Carlsbad, CA 92008 I 760-434-2980 t
Council (Vlemo -Council Goal on Fire Department Conformance with' SOC Update (District 2)
Nov. 18,2021
Page 2
On June 8, 2021, the City Council approved Capital Improvement Program (CIP) Project No. 4091
and appr_opriated $900,000 for the temporary FS No. 7 project. The scope of the CIP is to prepare
the selected site and relocate existing city-owned temporary structures (sprnng structure and
trailer) currently at temporary FS No. 2 (adjacent to the City Library near Dove Lane) to a site
west of 1-5.
Discussion
Early staff efforts focused on two sites: (1) the city-owned Cannon Lake future park site property
(farm site), west of the railroad tracks, south of Cannon Road, and (2) the San Diego Gas and
Electric (SDG&E) site east of Carlsbad Boul~vard, north of Cannon Road, specifically the parking
lot triangle north of Cannon Park. However, for a combination of reasons, it was determined that
those sites could not be ready to accommodate a temporary fire station by the January 2023
target.
As such, staff identified a third site located on NRG property, which soon became the lead site.
Specifically, the site is located east of Carlsbad Boulevard, immediately south of the Agua
Hedionda Lagoon. After initial discussions with NRG, staff plan to create a temporary fire station
by placing the city-owned trailer and sprung structure currently located at temporary FS No. 2
(near the Dove Library) on existing pavement and the concrete pad of the NRG admioistration
building, as the administration building is identified for demolition per the 2014 Power Plant
Agreement with the city, NRG and SDG&E.
The sprung structure will be expanded in size from 40' x 40' to 40' x 80', and another temporary
trailer approximately 10' x 30' in size will be procured and placed adjacent to the city-owned 27'
x 66' trailer.
Permitting Reg'uirements
The Community Development Department has determined that the anticipated fire and lifeguard
services is an allowed use under the current zoning on the property. The placement of the
temporary trailers and sprung structure, however, require approval of art administrative
Conditional Use Permit (CUP) for "mobile buildings" issued by the city and a Coastal
Development Permit (CDP), issued by the California Coastal Commission.
Because the property is listed as a "Deferred Certification" site under the city's Local Coastal
Program, the CDP must be approved by the Coastal Commission. While the city has control over
the permit processing time for its portion of the CUP review, the city does not have control over
the Coastal Commission's CDP review times. As such, there is concern that the permit processing
timelines typically taken by Coastal Commission staff may make permitting and construction by
January 2023 challenging.
J Council Memo -Council Goal on Fire Department Conformance with SOC Update (District 2)
Nov. 18,2021
Page 3
A formal application will be filed with the Community Development Department for a CUP in
November 2021, and an application for a CDP to the Coastal Commission by end of 2021. In an
effort to expedite the CDP review process, staff have had preliminary meetings with Coastal
Commission staff to discuss the possible project.
Lease Agreement
The City Attorney's Office is working with NRG counsel to draft a ground lease agreement for the
concrete pad site where the NRG administration building currently exists, which is scheduled for
demolition, and adjacent pavement. Staff plan to present the proposed ground lease agreement
for the City Council's approval in January 2022.
Estimated Costs and Timelines
Staff estimate a cost of approximately $600,000 to relocate the temporary structures from
temporary FS No. 2, expand the sprung structure and procure a second housing trailer.
NRG has indicated that the ground lease agreement to use the proposed site would cost in the
range of approximately $2,000 per month for 60 months, or approximately $120,000.
If the City Council authorizes the ground lease agreement with NRG in January 2022, staff will
initiate plans, specific~tions and contract documents for relocating the temporary structures
from temporary FS No. 2, expanding the sprung structure and procuring a second trailer. Staff
will then return to the City Council for authorization to bid in Spring 2022 and authorization to
award the contract in Summer 2022. Relocation of structures from temporary FS No. 2,
expansion of sprung structure and installation of a second trailer will occur in Fall 2022, with a
target completion date of January 2023.
This timeline is dependent on timing of the Coastal Commission-issued CDP. If the Coastal
Commission does not issue the CDP before late Summer 2022, this timeline will need to be
adjusted to accommodate any delays. Additionally, if there are any delays to the ongoing
permanent FS No. 2 construction project, availability of the temporary sprung structure and
trailer could be impacted.
Funding Availability
The current budget of $900,000 in CIP Project No. 40Q1 is sufficient to cover the estimated
relocation costs of temporary structures, expansion of the sprung structure and installation of a
second trailer at the site as well as the costs associated with the ground lease agreement with
NRG for five years. If additional appropriation is needed, staff plan to return to the City Council
with a proposal to use public facility fee funds.
Council Memo - Council Goal on Fire Department Conformance with SOC Update (District 2)
Nov.18,2021
Page 4
Since the total General Fund expenditure is expected to be less than $1 million, Proposition H
does not apply.
Public Updates
To keep the public informed, updates can be found at the following website:
https://www.carlsbadca.gov/departments/fire/fire-department-improvements.
Next Steps
Staff will continue negotiations with NRG and are tentatively planning to present the draft
ground lease agreement to the City Council for approval in January 2022.
cc: Scott Chadwick, City Manager
Celia Brewer, City Attorney
Gary Barberio, Deputy City Manager, Community Services
Laura Rocha, Deputy City Manager, Administrative Services
Michael Calderwood, Fire Chief
Nick Ordille, Assistant Fire Chief
Jeff Murphy, Community Development Director
Ryan Green, Finance Director
Kristina Ray, Community & Engagement Director
John Maashoff, Public Works Manager
Don Neu, City Planner
Allegra Frost, Deputy City Attorney
Curtis Jackson, Real Estate Manager