The URL can be used to link to this page

Home My WebLink About05/18/1993, C-6 - SPRINKLER RETRO-FIT COMPENSATION FOR PROPERTY OWNERS IN THE ""DOWNTOWN CORE.""" IIINN�b��IIIIII�I� llulll city of san luis oBispo MEETINU DATE: May 18, 1993 =IgoU COUNCIL AGENDA REPORT e-6 FROM: Bob Neumann" John Mosnec BY: Ken McCool4';r` Gary Henderson Fire Chief Utilities Dir Fire Marshal Utilities Eng. SUBJECT: Sprinkler retro-fit compensation for property owners in the "Downtown Core." CAO RECOMMENDATION: Adopt a Resolution authorizing compensation of property owners in the commercial fire zone for underground waterline connections that are required for fire-sprinkler retro-fit. Direct staff to develop a program for fund disbursement for actual costs up to $150 per foot linear foot for required waterlines. DISCUSSION: On June 6, 1990, the City Council adopted Ordinance No. 1170 amending the San Luis Obispo Municipal Code which adopts the 1988 Uniform Fire Code (UFC). This action established a sprinkler retro-fit program for the downtown core. Council directed staff to bring back a Capital Improvement Program over a nine-year period to help compensate property owners for the cost associated with underground fire-sprinkler connections in the "downtown core" for buildings requiring a retro-fit fire-sprinkler system. The UFC requires "existing buildings that are in the commercial fire zone shall have an automatic sprinkler system installed and operational throughout by January 1, 2000," with the exception that: "Buildings of un-reinforced masonry construction shall have an automatic sprinkler system installed and operational by the deadline set forth in the Building Code for compliance with seismic retro-fit standards." The "commercial fire zone" encompasses an area of approximately 26 square blocks in the central downtown core (see Attachment 1). It includes 183 structures, approximately half of which are required to have fire-sprinkler retro-fits in place by January 1, 2000. This is the timeline for which it is recommended that unreinforced masonry (URM) buildings in the downtown core be seismically retro-fitted to state standards. The URM and sprinkler retro-fit were tied together to lessen the cost and disruption to building owners. In an effort to ease the financial burden to property owners in the commercial fire zone, the Council agreed to a Capital Improvement expenditure over a nine-year period (7-1/2 years remaining) to be used for the installation of the fire-sprinkler underground waterline connections. Downtown property owners participating in the sprinkler retro-fit program will be sharing with the City, the costs of protecting the downtown core against fire and loss of life. This long-term investment will greatly reduce future fire-protection costs incurred by the City. In order to be as equitable as possible with the allocation of funds to property owners, staff recommends that the actual cost up to $150 per linear foot for underground water connections, be 1 ��N�i�►►IIVIIIIIIWI�III�III city Of San tins OBI SPO mm COUNCIL AGENDA REPORT paid to each property owner. In addition, each property owner would be responsible for hiring a private contractor of their choice to do the work. The actual cost of waterline connections up to $150 per linear foot would be paid upon completion of the work and would be calculated based on the actual length of pipe installed from the property line to the point of connection with the City's water system. Compilation of 3 bids and documentation of actual costs shall be the responsibility of the property owner. Data will be submitted to the Fire Department for verification prior to any payment to the property owner. The Fire Department will administer the program and coordinate with Utilities and Finance. In no instance shall the City pay more than $150 per foot for installation in calendar year 1993. In order to compensate for inflation, an annual adjustment shall be made on January 1 of each year, based upon the "Engineering News Record" (ENR) publication, "20 Cities Construction Cost Index" (CCI), from the prior December issue, beginning at the base of April, 1993 of 5166.79. The calculation shall be made as follows: Current year CCI X $ _ $ New rate each January 5166.79 Staff feels that actual cost with a "per foot" cap is the most equitable method of compensation. Streets in the commercial fire zone often have water mains located closer to one side of the street than the other. A property,owner whose building happens to be located further away from the existing waterline would incur a different expense to install the underground pipe than one that is T— closer. By providing a reimbursement based on the lineal feet of pipe actually installed, property owners will more equally be compensated for their costs. The compensation should be retro-active to June 6, 1990 so that property owners who have already complied with the amended fire code are not penalized for their quick actions. CONCURRENCES: Both the Utilities and Fire Department concur that the $150 per-foot rate is the best course of action to takeb based on research of actual costs of waterline installation in the downtown core. The Chamber of Commerce has been consulted and feels that the CAO recommendation is equitable and fair. FISCAL EMPACT: This program would provide funding for property owners to seek reimbursement for fire sprinkler lateral connections to buildings in the downtown core. A request for funding for this program has been prepared as part of the Water Fund's capital improvement plan in the.preliminary 1993-95 Financial Plan (Attachment 2). If approved, the request would provide $50,000 for reimbursements from the Water Fund in fiscal years 1993-94, 1994-95, and 1995-96, and increase to $100,000 in 1996-97. Funding for this program has been included in the May 1993 Water Fund analysis. �70 �uH�►�iuullllifl�pn ��8►II city of san Luis ose spo Ologe COUNCIL AGENDA REPORT �- PROS AND CONS OF ALTERNATIVES: Alternative #1 City pays each property owner the actual costs upon the completion of underground waterline installation for fire-sprinkler retro-fit. The installation would be done by a private contractor of the property owner's choice. Pro - The City would meet its financial commitment for the downtown sprinkler retro-fit. Responsibility for all construction would lie with the property owner. Impact to City water crews would be minimal. Con - This type of program would have no built-in safeguards or caps on costs and may invite abuses. Validation of costs would be cumbersome and excessive staff time would be needed for administration of the program. Alternative #2 The City does all the installation of underground waterline connections for fire-sprinkler retro-fit in one large project. Pro - The City could coordinate work with replacement of old water mains. In addition, more control of costs could be realized. Con - Many buildings may be ready for underground connections before the City can install them. Existing staff levels are inadequate to handle this size of project. The locations for the connection to the interior fire systems would have to be assumed. If in the future, location needs change, additional work would be necessary and a portion of piping may have to be abandoned. By doing the work, the City would assume liability for all underground waterline installation. A major extended disruption to the downtown business district would occur. Some downtown water-main replacement has already taken place. Fiscal impact to the water fund would be more significant because the project would have to be funded all at one time rather than being spread out over the next 7-1/2 years. Alternative #3 The City hires a private contractor to do all the underground waterline connections for the fire-sprinkler retro-fit. Pro - City could bid on the job and thus control costs somewhat. City crews would not be over- burdened with the additional work load. Con - Many buildings may be ready for underground connection before scheduled work can be completed (as the prcject would be spread out over a 7-year period). The locations for the connection to the interior fire systems would have to be assumed. If in the future, the location needs to be changed, additional work would be necessary and a portion of piping may have to be abandoned. Major extended disruption to the downtown business district would occur. Some downtown water-main replacement has already occurred. ATTACEM1ENTS: 1. Map of Commercial Fire Zone 2. Capital Improvement Plan (C.I.P.) 3. Resolution ATTACHMENT 1 J F N y r r ►• H y N y W Z J_ J Z a a a - • s = _ •ls b3dd5d 001 —7 0 o v N0 s%0 i LM l Ci is omol 0 10-L Oe m VSOa V1NV5 r i i� - — — ; IVS04 V1NVS Be -is soso ooz � oos� •ls soso - - , ❑pal ® 0e •ls MOW aou m �- - ,-- i • � j i I as 'IS aaaoHO I o I N30nv9 1S OvOi! I - j ❑o J W Do J 2 . a•�- �I c`t �— �py� uOdtN ` Is HOV38 y y F� ~ a �i e ATTACHMENT 2 1993-95 Financial Plan hdquest CAPITAL IMPROVEMENT PLAN PROGRAM: Water Distribution ' REQUEST TITLE: Downtown Fire Sprinkler Lateral Reimbursements Project Description Provide reimbursement for fire sprinkler lateral connections to buildings in the downtown core as directed by council with adoption of the City's downtown sprinkler retrofit ordinance number 1170 (1990 series). Project Objectives ■ By the year 2000, provide underground fire sprinkler lateral connections for all buildings in the downtown core which are required to retrofit fire sprinkler systems. Existing Situation Ordinance No. 1170 (1990 series), in part, requires buildings in the downtown core to retrofit with fire sprinkler systems by the year 2000. Council directed staff to bring back a multi-year capital improvement program to provide reimbursement for building owners affected by the ordinance for underground fire sprinkler laterals during that time period. To date, only one building has undergone sprinkler retrofit and no funds have been directed toward reimbursement for installing sprinkler laterals. Itis anticipated that as the final date for sprinkler retrofit grows closer, the annual amount of the City's expenditure will increase. Goal and Policy Links ■ Adoption of City Ordinance No. 1170 (1990 series), amending the municipal.code to adopt the latest editions of the Uniform Building Code and Plumbing Code. ■ Adoption of City Ordinance No. 1214 (1992 series), adopting findings of fact establishing requirement of automatic fire sprinklers. Project Work Completed Definition of the downtown core and the identification of the buildings in the downtown core requiring sprinkler retro-fit has been completed. Adoption of the sprinkler retrofit ordinance is.final. Schedule and Project Costs 1993-94 1994-95 1995-96 1996-97 Phasing: Lateral installation reimbursement $ 50,000 $ 50,000 $ 50,000 $100,000 Recommended Funding Sources: Water Fund $ 50,000 $ 50,000 $ 50,000 $100,000 Alternatives ■ Defer the project. Deferral of this multi-year program could only be on a short term basis, as one building has already been retrofitted and compensation is currently due the building owner. Future retrofitting will soon become more frequent and delay in compensation to building owners would not be in keeping with Council direction. Project Effect on the Operating Budget The multi-year program of providing reimbursement for underground sprinkler laterals will have no appreciable effect on the operating budget. Some Fire Department administrative time will be required, but will be absorbed into the daily work schedule. 1 RESOLUTION NO. (1993 Series) COMPENSATION OF PROPERTY OWNERS IN THE COMMERCIAL FIRE ZONE FOR UNDERGROUND WATERLINE CONNECTIONS THAT ARE REQUIRED FOR FIRE SPRINKLER RETRO-FIT WHEREAS, on June 6, 1990, the City Council adopted Ordinance No. 1170 amending the San Luis Obispo Municipal Code Chapter 15, Section 15.08.010, adopting the 1988 Uniform Fire Code (UFC) and repealing Sections 15.08.040 through 15.08.350, and WHEREAS, the 1988 UFC, Section 10.306(c) requires "existing buildings that are in the `commercial fire zone,' as established in Section 10.501 of the UFC as amended by the City of San Luis Obispo, shall have an automatic sprinkler system installed and operational throughout, by January 1, 2000," and WHEREAS, Ordinance 1205 (1992) Series amended the 1988 Uniform Fire Code Section 10.306(c) to add the exception that "Buildings of un-reinforced masonry construction shall have an automatic fire-sprinkler system installed and operational by the deadline set forth in the Building Code for compliance with seismic retro-fit standards", and WHEREAS, Council directed staff to bring back a Capital Improvement Program over a nine- yeai period to help compensate property owners for the cost associated with the waterline connections in the "downtown core" for buildings requiring a retro-fit sprinkler system. NOW, THEREFORE, BE IT RESOLVED, the City Council authorize the compensation of each property owner in the commercial fire zone (Attachment 1), who is required to sprinkler retro-fit, actual costs up to the amount of$150 per foot for underground waterline connections from the property line to the point of connection with the City's water system. An annual adjustment for inflation shall be made to the $150 per foot rate, on January 1 of each year, based upon the "Engineering News Record" (ENR) publication, "20 Cities Construction Cost Index" (CCI), from the prior December issue, beginning at the base of April, 1993 of 5166.79. �Yo_� Upon motion of , seconded by and on the following roll can vote: AYES: NOES: ABSENT: the foregoing resolution was adopted this day of 1993.. Mayor Peg Pinard ATTEST: Diane Gladwell, City Clerk APPROVED: f" City Astrative Officer Fire Chief i A ey ties Director r Finance Director 1 \ 1