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HomeMy WebLinkAbout01/04/2011, C6 - LA LOMA ADOBE STABILIZATION, SPECIFICATION NO. 90658 counat 'a°Jan.4,2011 j ac Enda Report I�N"-C 6 CITY OF SAN LUIS O B I S P O FROM: Jay D. Walter, Director of Public Works Sow Prepared By: Michael J. McGuire, Engineer III MIM SUBJECT: LA LOMA ADOBE STABILIZATION,SPECIFICATION No.90658 RECOMMENDATIONS 1. Reject the bid and authorize staff to re-advertise the "La Loma Adobe Stabilization, Specification No. 90658". 2. Approve revised plans and specifications. 3. Amend the project scope of work and amend contract indemnification provisions to limit contractor liability in the event of structural failure in the course of performing the project. 4. Authorize the City Manager to award a construction contract if the lowest responsible bid is less than the Engineer's Estimate of$95,000. DISCUSSION On July 28, 2010, the City Manager authorized inviting bids for the La Loma Adobe Stabilization, Specification Number 90658. Only one bid from Maino Construction of San Luis Obispo was received and opened on September 16, 2010, although several bidders attended a site walk through in advance of the bid. Maino Construction provided a proposal of$345,000, which was $250,000 more than the Engineer's Estimate of$95,000 (Attachment 1). The Contractor's high bid reflects an amount calculated to account for their liability for replacement costs should some or all of the extremely deteriorated adobe walls fail and collapse. Maino Construction finther contends that attempting to stabilize these walls as indicated in the Contract Documents is not feasible and a revised scope of work is required in order to achieve stabilization of the structure. Bob Vessely of Vessely Engineering, who generously donated his design services in preparation of the plans and specifications for the La Loma Adobe, has revised the plans to indicate a reduced scope of work that excludes the areas of the adobe with the most deteriorated walls and concentrates the stabilization on the core two-story portion of the adobe. The deteriorated walls excluded from the new project scope of work will most likely need to be dismantled and rebuilt, which requires approval from the Cultural Heritage Commission. Since time is of the essence in stabilizing the core of the adobe from further deterioration and vandalism,these excluded walls will be stabilized,or dismantled and rebuilt, at a later date. While the most precarious portions of the adobe are not included in the revised scope of work, the La Loma Adobe is a fragile structure with severe deterioration and the liability for damages to the Contractor during construction still remain. Staff recommends that the Contractor's liability for damage to the Adobe be reduced. It is conceded that a majority of potential bidders may have ultimately decided not to bid on this project due to the likelihood of wall failure during stabilization work which would have resulted in the Contractor being held responsible for wall repair or replacement costs. Even with the least structurally sound walls omitted from the stabilization work, C6_1 La Loma Adobe Stabilization (90658) Page 2 there is still the potential for partial or full wall collapse during the work. Staff has worked with the City Attorney's office to develop revised liability language for the contract. Typically, the City cannot dictate the Contractor's means and methods of construction. With the delicacy of the La Loma Adobe, the stabilization methods of the Contractor will be reviewed and approved by the consulting engineer and the City. If a portion of, or an entire adobe wall collapses while the Contractor is acting in good faith and due diligence implementing the approved method of wall stabilization, the Contractor will not be held liable for that damage under the terms of the specifications. CONCURRENCES This project has the concurrence of the Community Development Department. FISCAL IMPACT A Federal Community Development Block Grant (CDBG) was obtained to fund construction of this project in the amount of$110,198. This project has no Measure Y or General Fund funding. The bid amount from the only bidder, Maino Construction, does not accurately reflect the construction cost for this project. Construction: $ 345,000 Budget Amount: $ 110,198 Construction Contingencies: $ 10,500 Engineer's Estimate: $ 95,000 Total for Construction: $ 355,500 Bid Amount (lowest bidder): $ 345,000 Printing. $ 360 Adobe Brick Purchase: $ 4,000 Total for other costs: $ 4,360 Total Cost of Project: $ 3599860 Additional Funding Needed: $ (249,662) See attached Bid Summary. ALTERNATIVES Award Contract This alternative would retain the current liability provisions, award the contract, and would allocate $250,000 of General Fund resources to complete the project in its original scope of work. Staff does not recommend this alternative as it is not a cost-effective approach to stabilization of the adobe. Retain current liability upon the Contractor. This alternative would maintain the City's standard liability provisions, imposing liability on the Contractor for any damages to City property arising from the performance of the contract. Staff does not recommend this alternative as it likely would result in the City receiving no bids for the project or receiving bids grossly in excess of the Engineer's Estimate and available funding for the project. Inability to proceed with any aspect of the project will result in continuing exposure of the building to deterioration. C6-2 I La Loma Adobe Stabilization (90658) Page ATTACHMENTS 1. Bid Summary 2. City Manager Report, authorizing advertising AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE Plans and Specifications. T:\Council Agenda Reports\Public Works CAR\2010\CIP\90658 LaLoma Adobe\90658 CAR Reject.doc C6-3 �— Attachment 1 i0000 o IQ owi = o y nv)10 z � e » w eo Kc K `c° m E o o 0 U o U � c � o � o 0 r o U x y j u� c mJ �O W 0 m m St d fO Dm 0 o C CD 0 0 0 o c 0 0 vi c d io Ui z � ae, m E Y W G W u o 4 0 m � O c c W w 3 � o � � m N m g � E e a a m c a O `, O_ N y m m J O W � m y UID c Q rn a II V E Q U C p eo i s a t 9 y O J ; O mz A .0 .0m m m m H M J C6-4 Attachment 2 acy of 111196 san Luis omspo MANAGERCITY REPORT■ • Final City Mana er Approval Approver Name Date Approved City Administration Michael Codron for July 28,2010 Reviewer Routing List Reviewer Name Date Reviewed_' City Attorney Andrea Visveshwara July 26, 2010 City Engineer Barbara Lynch July 23,2010 Community Development him Murry Julv 27,2010 Finance& Information Technology Debbie Malicoat July 26, 2010 July 23,2010 FROM: Jay D. Walter, Director of Public Works JPV July 26. 2010 PREPARED BY: Michael J. McGuire, Engineer III SUBJECT: LA LOMA ADOBE STABILIZATION, SPECIFICATION No. 90658 RECOMMENDATION 1. Approve plans and specifications for "La Loma Adobe Stabilization, Specification No. 90658". 2. Authorize staff to advertise for bids. DISCUSSION The La Loma de Napolera (La Loma) Adobe, located at 1590 Lizzie Street, is a rare two-story adobe structure originally built around 1850. The property was gifted to the City in 1995 from the Bowden family. Since 1953, the adobe house has remained unoccupied and over the course of nearly sixty years has fallen into a dire state of disrepair. The elements have taken a toll on the integrity of the adobe walls and the adobe house has long been a target of vandalism. Numerous efforts have been made to protect this cultural resource but with limited success. The disrepair to the adobe is such that it is structurally unsound. In the current economic climate, restoration or rehabilitation of the adobe is unfeasible. In an effort to protect the La Loma adobe from further damage and stabilize the adobe walls, Robert Vessely, a local structural engineer and a member of the non-profit organization, Friends of Las Casas de Adobe (FOCA), has generously prepared stabilization plans and specifications for the La Loma Adobe at no cost to the City. The stabilization will consist of repairing destroyed and damaged adobe walls with new adobe bricks recently purchased by the City, structural supports through the adobe to stabilize the existing walls and installation of security barriers at building C6-5 - Attachment 2 La Loma Adobe Stabilization (90658) Page 2 openings and around the site perimeter. This work will provide long-term structural stabilization of the adobe that will facilitate its future renovation should funding become available. FISCAL IMPACT Federal Community Development Block Grants (CDBG) were obtained to fund construction of this project in the amount of$110;198. This project has no Measure Y funding. Construction: $ 95,0001 Construction Contingencies: $ 10,500 Total for Construction: $105 500 # 3 1 Printing/advertisitmg $ 698 ; Adobe Brick Purchase: $ 4,000 Total for other costs: $4,698 i Total Cost of Project $110,198 CONCURRENCE This project is categorically exempt under CEQA, has obtained NEPA clearance, received approval from the CHC and a building permit has been issued for construction. ALTERNATIVE Deny advertising the project The City Manager could choose to deny or defer advertising this project. Staff does not recommend this option. Should advertising be denied or deferred, the La Loma Adobe will continue to be subject to deterioration and vandalism. The possibility of personal injury to authorized personnel or vandals will continue to increase. Also,the CDBG funding for the project would most likely be lost. ATTACIMENT Plans and Specifications TACity Manager Reports\Public Works\ZO10\CIP\90658 LaLoma Adobe\90658 eCM Advertise.doc C6-6 RED FILE RECEIVED MEETING AGE,_JA DATE 1L ITEM #—M _ PIAN 0 4 .20111 COu1 cit 11 cmoRA1 Null oCITYCLERK JMgm 0 DATE: January 3,.2011 000UNCD. aCM= 0 MY MGR O FrrDM 0 AWCM 0 FMCHM 0 ATIDRM 0 PWDnt TO: City Council a aiRimo 0 MUCECEW 0 PM 0 PARBSRRECDIR 0 TRIBUNE 0 UMDIR VIA: Katie Lichtig, City Manageef Manage0 NEWTn[M a HR DDI 0 SWCrrrNM 0 COUNCIL gcc qwmw O FROM: John Mandeville,.Community Development Direct ot��h Cum Jay Walter, Public Works Director BY: Kim Murry, Deputy Director of Community Development HA Michael McGuire, Engineer, Public Works KIM SUBJECT: La Loma Adobe Stabilization Project Council member Carpenter raised the following question: In light of recent discussions and adoption of the Historic Preservation Ordinance and Guidelines, are we treating this City owned Historic Resource in the same manner we would if it were privately owned? I raise this question because of the public's concern about 'financial hardship" and concessions that are allowed because of it. If this were to come before the CHC and eventually the City Council from a private owner because of neglect, would we be willing to forgo the most sensitive part of the adobe to protect the major part of the resource based on financial constraints? I'm not suggesting that we would treat it differently, I just think we need to address it publicly so there is no misunderstanding as to why we are not requiring the entire stabilization to proceed. I just want to make sure we are consistent with the 'process"in dealing with neglected resources, as it could quite possibly set a precedent on how we deal in the future with other similar situations. In reference to the release of liability should the entire adobe wall collapse, would we willing to support this forgiveness in a privately owned stabilization project that would come before us? I certainly understand that time is of the essence, however this has come from years of neglect because of lack of prioritization. Would we be as equally understanding if it weren't City owned? Responses: Funding prioritization for repair work: Community Development Block Grant (CDBG) funds were earmarked for repairs to both the Rosa Butron Adobe on Dana Street and the La Loma Adobe on Lizzie Street. Before the funds were released, the City needed to make immediate repairs to the Butron Adobe in order to address a leaking roof and other site concerns. These repairs had been anticipated to be paid for by the CDBG grant but since the work preceded the award it was not eligible for reimbursement. Therefore, all of the $110,400 in CDBG funds was re-designated for repair of the La Loma Adobe. This triggered the need to develop a new project description, conduct additional environmental review which involved State Historic Preservation Office review, and finally i County concurrence before actual construction and bid documents could be developed and reviewed through the City's architectural review process. As part of the Financial Planning process for 2009-2011, Administration Department staff conducted outreach in the neighborhoods surrounding the three City-owned adobes: the Rodriguez Adobe in the Edna-Islay area; the La Loma Adobe on Lizzie Street; and the Rosa Butron Adobe on Dana Street. Public input regarding potential uses of the adobes was sought and the report was presented to Council for consideration during the goal-setting process. Ultimately restoration of the adobes was not identified as a Council goal or other important objective however Council endorsed the use of CDBG grant funds to be used to stabilize the La Loma Adobe. As discussed during hearings on the Historic Preservation Ordinance, the City prioritizes funding through a public goal-setting process every two years as the budget is developed. Complete restoration of the adobes has not been identified as a City goal. Liability release and economic hardship consideration for work on City-owned adobes: Every aspect of a City project including construction bid documents and contractor responses are conducted within the public realm so that any interested citizen can understand the project being undertaken, how it will be constructed, how much it will cost, and the source of the funding. In this particular case, the bid returned and the potential bidder comments made clear that the contract provision requiring complete rebuild of the adobe in the event of wall failure during construction created a liability for potential costs that exceeded the grant amount available for the project. Public Works staff worked with the Engineer who developed the plans for the adobe repair to develop a revision to the project scope that would fit within the grant budget. The work being done in conjunction with this grant-funded project does not preclude the City from conducting additional work on the structure when funding is available. The newly-adopted historic preservation ordinance does contain an economic hardship provision. This provision allows an applicant who has requested to demolish a listed historic resource and been denied to demonstrate that denial of the request poses an economic hardship. In this instance, the City has not applied to demolish the La Loma Adobe but instead is seeking ways to stabilize and repair the structure with the grant funds available. The decision to modify the liability provision is occurring as part of a Council agenda item subject to review and input from the public. This same approach to a privately-owned historic structure stabilization project would be used where a request for condition modification to accommodate specific circumstances was submitted. If a project came forward for consideration as part of an enforcement action, staff would evaluate the project with the same focus: to save the most historic portions of the structure with the funds available. The current effort to stabilize the La Loma Adobe is focusing on the core of the adobe structure in order to ensure.the most significant portion of the historic structure is addressed. In the opinion of the contractors inspecting the job site, concerns were expressed regarding the risk of wall failure of the deteriorated walls during a stabilization procedure. Using the grant funds to address the most deteriorated portion of the structure would not cover the estimated bid amount due to concerns of the condition of the wall. Council can direct staff to revise the project description to address this portion of the structure only however additional funding may be required to cover the cost of the work or the project may need to be revised to comprise a f i demolition and reconstruction effort rather than a stabilization effort. Neither of these options would address the need to stabilize the core of the structure. G:\CD-PLAN\IKMURRY\City Council Reports\RedFiles\CarpenterAdobeRedFile.doc