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Home My WebLink About07/02/1996, 8 - CHANGE ORDER FOR ASBESTOS REMOVAL CITY HALL SEISMIC SAFETY AND HVAC IMPROVEMENTS PROJECT SPECIFICATION NO. 9101-540-553 , council " - ° ) j acenba RepoiA C I T Y OF SAN LU IS O B I S P O FROM: Michael D. McCluskey, Public Works Director Prepared By: David Elliott, Administrative Analystl� SUBJECT: Change Order for Asbestos Removal City Hall Seismic Safety and HVAC Improvements Project Specification No. 9101-540-553 CAO RECOMMENDATIONS 1) Appropriate an additional $550,000 to the project construction account 2) If change order details have been successfully negotiated and a change order document has been prepared, approve Change Order No. 2 for removal of roof panels containing asbestos 3) If change order details have not been successfully negotiated and a change order document has not been prepared, authorize the city administrative officer to approve Change Order No. 2 for removal of roof panels containing asbestos DISCUSSION Background One primary objective of this project was to remove and dispose of existing cementious roof panels which contain high concentrations of asbestos. In 1990 H.G. Degenkolb Associates, a structural engineering firm, surveyed all city buildings to evaluate their ability to survive seismic forces. This firm found that certain structural elements of the City Hall building might not withstand a major earthquake because of various deficiencies, including the unanchored cementious roof panels. The entire sloped area of the roof is formed by these panels (each measuring 30 inches by 18 inches by three inches thick and weighing about 40 pounds) lying in L-shaped steel channels. A major earthquake could dislodge or break these panels, which could in turn cause the roof system to collapse, release harmful asbestos fibers, and expose employees on the upper floor to the danger of falling roof material. In 1992 Howard F. Stup & Associates, another structural engineering firm, analyzed the structural deficiencies and recommended the current project. During schematic design, the structural engineer from Stup & Associates observed that a panel near the rooftop access hatch could be pushed up away from the steel framework with very little effort. From this observation, the engineer apparently concluded that the panels could be removed without breaking them and without creating a hazardous condition. Council Agenda Report - Change Order for Asbestos Removal Page 2 Construction started on May 28, 1996, with R.P. Richards, Inc. as the prime contractor. On June 18, 1996 Lee Construction, the state-certified asbestos abatement subcontractor, tried to remove a roof panel and found that the panel could not be dislodged as easily as the construction documents implied without creating an asbestos hazard. Evidently, when the panels were originally installed in the early 1950s, the contractor filled the gaps between them with a mortar that produced a strong bond between the panels and the steel channels. After alternative removal techniques were tested unsuccessfully, Ecosystems Technologies, the City's state-certified asbestos consultant, determined that the panels would have to be removed and disposed of as a hazardous material using full asbestos containment safeguards, including: 0 full tenting of the roof and attic 0 separate electrical service for the containment area 0 negative air pressure for the containment area 0 fully enclosed suits for abatement workers 0 elaborate decontamination areas 0 24-hour air quality monitoring throughout the building 0 extensive documentation of all work and conditions At that point the City notified the County Air Pollution Control District and the State Department of Occupational Safety and Health about the situation. Those two agencies will be monitoring the project until completion of the asbestos abatement. Change Order Negotiation To estimate the time needed for panel removal, Lee Construction built a small containment area and had asbestos abatement workers take out 15 panels under the identical circumstances they would face in removing all of panels under the change order. Based on this information and the mandatory containment procedures dictated by state regulations, the contractor submitted a preliminary change order cost proposal in the amount of $530,000. Richard Fisher and David Elliott from Public Works and Marcia Walther, the City's contracted resident inspector, formed a team to review this cost proposal. The team first consulted with Remtech, the certified asbestos abatement contractor which performed much of the previous abatement work at City Hall (including encapsulation of the roof panels). From a contractor's perspective, Remtech reviewed the proposal and found it reasonable, without any apparent padding. The team then brought in American Environmental Specialists, a second, independent, state-certified asbestos consultant, to examine in detail the supporting documentation for the change order. From a certified inspector's perspective, American Environmental determined the proposed scope of work and cost to be fair and typical. Although the team and the consulted firms concluded that the proposal accounted for a high level of financial risk, they could find no unwarranted cost items. What contributed most to the high cost was the unconventional use of asbestos in the cementious roof panels. No one from the consulted firms had ever seen or heard of a similar installation. Consequently, it is O '� Council Agenda Report - Change Order for Asbestos Removal Page 3 not surprising that the cost estimates included contingencies for unanticipated problems. When this agenda report was completed, Public Works was still negotiating details of the final change order document with a goal of having a completed document available for distribution and discussion at the Council meeting. If that document is completed, Public Works recommends Council approval of the change order. If the document is not completed, Public Works recommends Council authorization for approval by the city administrative officer to avoid construction delays. Building Safety During Construction Lee Construction is a state-certified asbestos abatement contractor. Overseeing Lee Construction is Ecosystems Technologies, a state-certified asbestos consultant. And overseeing the entire operation are the County Air Pollution Control District and the State Department of Occupational Safety and Health. With all the containment and monitoring procedures required by law, the safety risk entailed with removing the roof panels is virtually nil, and certainly far less than the potential risk during and after an earthquake. FISCAL IMPACT The estimated cost of Change Order No. 2 is $530,000, and there will be other associated costs for independent consultation and monitoring. Public Works recommends appropriating an additional $550,000 to the project account from the unappropriated balance of the general fund. The balance of the general fund is currently projected to be $4,261,800 at the end of 1996-97. (See page G-6 of the Approved 1996-97 Budget.) This amount is sufficient to maintain a reserve equal to 20 percent of operating expenditures as required by the City's general budget policies. (See page B-10 of the 1995-97 Financial Plan.) Appropriating $550,000 from this projected balance would reduce the reserve to 17 percent of operating expenditures. But this temporary reduction would be justified by one of the stated purposes for the reserve, which is to cover unforeseen operating or capital needs. A reasonable goal would be restoration to the 20 percent level by the end of 1998-99. ALTERNATIVES The only alternative to removing the roof panels would be closing the roof back up and terminating all work on the roof and in the attic. Although this alternative might be feasible, it would create three major problems: 1) None of the heating, ventilating, and cooling (HVAC) equipment for the upstairs areas could be installed, because state law would prohibit continuing this work with the roof O �� Council Agenda Report- Change Order for Asbestos Removal Page 4 panels in place. There is currently no HVAC equipment serving the upstairs areas. 2) State law would prohibit any future construction or repair work on the roof or in the attic with the roof panels in place. 3) The potential seismic hazard would go uncorrected, and City Hall would remain vulnerable to a major earthquake. This situation would not:only jeopardize continuation of essential services, but could also hamper future enforcement of seismic safety correction ordinances in cases where property owners might encounter unexpected and costly complications. hAbuilding\chhvac\asbestos.agp