REPORT TO COUNCIL
SUBJECT
Title
Authorize the City Manager to Negotiate and Execute Amendment No. 3 to the Agreement for Design Services with Bellecci & Associates, Inc. and Associated Budget Amendment for the Loyalton Property
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
Per 030 Council Policy action, staff brought to Council the discussion on the consideration of the sale of the Loyalton Property. The item was initially scheduled for Council consideration on March 16, 2021, but due to the length and complexity of Council Agendas, the item was continued multiple times. Ultimately the discussion occurred on August 17, 2021 (RTC 21-715), and at the August 17, 2021, Council meeting the item was continued to a future meeting for additional input from the City Attorney.
On September 7, 2021 (RTC 21-530), staff brought forth for Council consideration a contract amendment with Bellecci and Associates, Inc. (Bellecci) to revise demolition plans and to include an evaluation of the Loyalton Property fence which was damaged in the Loyalton Wildfire. Demolition of the buildings on Loyalton had already been planned and the design was underway. However, during the 2020 Loyalton Wildfire the existing buildings and a majority of the exterior Loyalton Property fencing were destroyed, necessitating a revision to the plans. The revised scope includes development of specifications for public works bid, civil support during the bid process and construction / demolition activity, and project and construction management services for structure demolition.
As stated in the September 7, 2021, Report to Council, staff has delayed the request to proceed with the contract amendment to allow for Council discussion on the possible sale of the property:
The City Council is actively having discussions regarding the long-term plan for the Loyalton property, including possible consideration of a sale. Staff has delayed the execution of this agreement to incorporate any needed changes that might occur per the Council discussion. However, at this time, staff believes it is appropriate to move forward with the design to identify needed improvements and complete an engineering construction estimate for the project.
The contract amendment to include the staff recommendation to survey the damage to the fencing and site remediation was not approved by Council.
The discussion of the Loyalton Property sale was agendized for Council consideration on October 26, 2021, and it was continued to the December 14, 2021, Council meeting. At the December 14, 2021, Council meeting the Council directed staff to develop the strategy and next steps for the sale of the property. The next steps and strategy were note and filed by Council on March 8, 2022 (RTC 22-316). On June 7, 2022 (RTC 22-768), Council declared the property surplus and also directed staff to return with the cost for the design and construction estimate for the fencing and demolition/remediation of the Loyalton Property
DISCUSSION
Per the June 7, 2022, Council direction, staff requested updated estimates from Bellecci to perform the work at the Loyalton Property. The revised scope of work includes the aerial assessment of the fencing, fire damage site review and engineering construction cost estimates for the repair of fencing and site remediation. The new costs are as follows:
• Preliminary aerial survey and cost estimate for fence at Loyalton - $41,557
• Fire damage site review for remediation and demolition - $18,458
• Preparation of bid documents and specifications for Loyalton fence and site remediation project - $70,604
• Contingency for additional services - $42,962
• Total Cost - $173,581
As discussed in September 2021, if Council approves the amendment, staff shall only proceed with the design portion of the contract. Any future construction and/or demolition contract may require Council approval. If it does not require Council approval, staff will inform the Council prior to proceeding. Staff will take into consideration future Council discussion regarding sale of the property prior to making a recommendation on any construction contract. At this time, it is highly unlikely any actual construction/demolition shall proceed prior to the upcoming winter.
The discussion of the sale of the Loyalton Property may continue for many months. The Notice of Availability was mailed out on June 21, 2022, and will require a period of 60-days to determine if any offers are received. If offers are received, a 90-day period is required for negotiation. If no offers are received, staff will need to complete a selection process for a realtor and bring forward a contract for Council consideration to start the sale process in the open market. Additionally, staff has responded to the California Department of Fish and Wildlife email which expressed interest on purchasing the Loyalton Property with the information that the Council took action declaring the Loyalton Property as surplus land.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b)(4) in that it is a fiscal activity that does not involve commitment to a specific project which may result in potential significant impact on the environment.
FISCAL IMPACT
Staff recommends a budget amendment to add funding to the Capital Outlay Budget of the SVP Operating Budget in the amount of $173,581 for the proposed Amendment No. 3. This funding will be transferred from Electric Utility Operating Fund Balance and will have no impact on the General Fund.
Budget Amendment
FY 2022/23
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Electric Utility Operating Fund (091) |
|
|
|
|
Expenditure |
|
|
|
|
Capital Outlay |
$1,544,038 |
$173,581 |
$1,717,619 |
|
|
|
|
|
|
Ending Fund Balance |
|
|
|
|
Unrestricted Ending Fund Balance |
$33,219,856 |
($173,581) |
$33,046,275 |
COORDINATION
This report has been coordinated with the Finance Department and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any report to Council may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
ALTERNATIVES
1. Authorize the City Manager to negotiate and execute Amendment No. 3 to the Agreement for Design Services with Bellecci & Associates, Inc. for engineering design services for the Loyalton Property fence and site remediation project in Loyalton, California, to increase the maximum compensation from $170,000 to $343,581;
2. Authorize the City Manager to add or delete services consistent with the scope of the agreement, and allow future rate adjustments subject to request and justification by contractor, approval by the City, and the appropriation of funds.
3. Approve the following FY 2022/23 budget amendment in the Electric Utility Operating Fund to increase the Electric Utility Department budget by $173,581 and decrease the unrestricted ending fund balance by $173,581 (five affirmative Council votes required for the use of unused balances).
4. Do not authorize the City Manager to negotiate and execute Amendment No. 3 to the Agreement for Design Services with Bellecci & Associates, Inc. for engineering design services for the demolition located in Loyalton, California.
5. Any other alternative as approved by Council.
RECOMMENDATION
Recommendation
Alternatives
1. Authorize the City Manager to negotiate and execute Amendment No. 3 to the Agreement for Design Services with Bellecci & Associates, Inc. for engineering design services for the Loyalton fence and site remediation project at Loyalton, California, to increase the maximum compensation from $170,000 to $343,581;
2. Authorize the City Manager to add or delete services consistent with the scope of the agreement, and allow future rate adjustments subject to request and justification by contractor, approval by the City, and the appropriation of funds; and
3. Approve the following FY 2022/23 budget amendment in the Electric Utility Operating Fund to increase the Electric Utility Department budget by $173,581 and decrease the unrestricted ending fund balance by $173,581 (five affirmative Council votes required for the use of unused balances).
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Original Agreement for Design Professional Services
2. Amendment No. 1
3. Amendment No. 2
4. Attachment 1: Quote for Amendment No. 3