For City Council Meeting June 11, 2024
TO: Honorable Mayor and City Council
APPROVAL: G. Michael Milhiser, Interim City Manager
FROM: Tim Sullivan, Maintenance and Facilities Director
Title
Request City Council to: 1) Ratify the Emergency Proclamation Following the Incident on May 11, 2024, at Fire Station 201; 2) Approve Emergency Remediation of Fire Station 201 and the Procurement of Temporary Housing Needs for Fire/EMS Operations; 3) Rescind the Emergency Proclamation; 4) Delegate Authority to the City Manager to Process All Reimbursable Expenses Related to the Fire Station 201 Reconstruction Pursuant to Insurance Claim Proceed; and 5) Authorize the City Manager or their Designee to Execute All Related Documents.
(ACTION)
Body
RECOMMENDATION:
Staff recommends that the City Council:
1. Approve the actions taken under the emergency proclamation following the incident on May 11, 2024.
2. Authorize the remediation and immediate restoration actions taken at the temporary facility.
3. Rescind the emergency proclamation.
4. Delegate Authority to the City Manager to process all reimbursable expenses related to the Fire Station 201 reconstruction pursuant to insurance claim proceeds.
5. Authorize the City Manager or their Designee to execute all related documents.
BACKGROUND:
On the evening of May 11, 2024, at approximately 9:30 p.m., a suspected drunk driver collided with the west side of the Fire Station located at 131 S. Willow Avenue, Rialto, CA. This collision caused significant structural damage, particularly to the roof, and ruptured several fire sprinkler lines, flooding a portion of the station. The vehicle also ignited, further exacerbating the damage.
Following the incident, the Director of Maintenance and Facilities promptly requested an emergency declaration, which the Acting City Manager concurred with. This request was made to expedite repair services necessary to maintain Fire Department services essential to public health, safety, and welfare. The Fire Department, Risk Management, Engineering Services, Maintenance and Facilities, and Procurement departments collaborated efficiently to secure abatement and restoration services and materials, including a temporary housing facility for Fire Department personnel.
Temporary shoring of the building has been constructed, thus reducing the possibility of a roof collapse, and a temporary living facility was obtained to continue public services from Fire Station 201.
City staff is currently coordinating with the City’s insurance provider to restore the building.
ANALYSIS/DISCUSSION:
Following the vehicle incident, it was determined by the City’s Chief Building Official and the Fire Marshall that the living quarters, locker rooms, kitchen area, and apparatus bays at Fire Station 201 were inhabitable. Immediately following this determination, Fire personnel were temporarily relocated to other Rialto Fire Stations. Although this action allowed for Fire staff to respond to service calls, it does impact response times and is a threat to public health, safety, and welfare.
The Rialto Municipal Code (RMC), Section 2.28.020, defines an emergency as “…the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this city caused by such conditions as, but not limited to, air pollution, fire, flood, storm, epidemic, riot, or earthquake, or other conditions, including conditions resulting from war or imminent threat of war, but other than conditions resulting from a labor controversy, which conditions are or are likely to be beyond the control of the services, personnel, equipment, and facilities of this city, requiring the combined forces of other political subdivisions to combat.”
RMC 2.28.060 grants the City Manager the authority to proclaim the existence or threatened existence of a "local emergency" if the City Council is not in session at the time of an event. Further outlined within the RMC, the City Council shall take action to ratify the Emergency Proclamation. Any expenditures in connection with emergency activities, including mutual aid activities, are conclusively for the direct protection and benefit of the inhabitants and property of the City of Rialto.
Insurance Claim
The City has filed a claim with its insurer and met with the Insurance Adjuster onsite. The Adjuster has authorized the City to proceed with the removal, repair, and rehabilitation of the building. A copy of the claim is included as Attachment 1. The building itself is insured up to the declared value of $3,859,603. The initial claim estimate and extra expenses related to the modular facility are still being determined.
Staff is recommending the City Council delegate authority to the City Manager to approve various actions that may be needed for the remediation of the building and continuing operations of Fire Department services. Those services are as follows:
• Retaining engineers and architects needed to develop plans for the repair and reconstruction.
• Proceeding to bid and award contracts related to demolition, restoration, remediation, and repair of the building as required.
• Approving the purchase agreement for the modular living quarters to temporarily relocate staff with all needed utilities and accessibility to continue to serve the public effectively.
• Selecting and approving consultants and temporary staffing as required to archive the critical Public Works / Engineering documents, including engineering plans/maps and other important documents, through scanning, indexing, and electronic storage in coordination with the Director of Management Services.
These costs will be coordinated with the City’s Insurance Company, which will review, verify, and reimburse the costs associated with the damage caused by the vehicle to the building.
The final extent of the required remediation and repair to the station is unknown. To ensure expediency in this endeavor, Staff recommends that the City Council delegate authority to the City Manager to incur reimbursable expenses related to the Fire Station 201 reconstruction pursuant to Insurance Claim Proceeds.
Fire and Flood Restoration
The Maintenance and Facilities Department performed board-up services at the Station following the incident and contacted Servpro to perform cleaning and restoration services. Servpro arrived on the scene and performed emergency water reclamation and the installation of dehumidifiers to start the drying process. Lead and Asbestos testing was also performed, and the results were negative. Servpro’s actions were paused due to the unsafe conditions of the building; however, Servpro continued its abatement efforts once the shoring was completed and continued removing contents, carpet, and drywall, if needed, to further dry the building.
Temporary Housing
After a comprehensive and exhaustive search, suitable temporary housing was procured on May 20, 2024, for $270,000 to serve as the interim Fire Station. The facility manufacturer was the only supplier that could expedite the delivery of a facility that met the needs of the Fire/EMS operations. The temporary facility is now fully operational, ensuring adequate Fire/EMS response times in the downtown Rialto area. The actions taken to restore Fire/EMS services included stabilizing the damaged building, which allows using two (2) of the four (4) apparatus bays and procuring a temporary facility for Fire personnel. These measures were critical to maintain essential Fire/EMS services following the incident.
A portion of the expense to purchase the modular home will be offset through the insurance claim process. The City’s insurance policy provides language related to “extra expenses” and is in the process of negotiating with the City’s carrier to determine a reimbursable figure.
The City’s insurance policy describes extra expense as the excess (if any) of the total cost incurred during the period of restoration chargeable to the operation of the covered party’s business over and above the total cost that would normally have been incurred to conduct the business during the same period had no damage or destruction occurred. Any salvage value of property obtained for temporary use during the period of restoration which remains after the resumption of normal operations, shall be taken into consideration in the adjustment of any loss hereunder.
PRISM shall be liable for such necessary extra expense incurred for only such length of time as would be required with the exercise of due diligence and dispatch to rebuild, repair, or replace such part of the property as has been damaged or destroyed, commencing with the date of damage or destruction and not limited by the date of expiration of this Memorandum.
Rescinding the Emergency Proclamation
The Fire Station and operations have been stabilized at this time, and staff is requesting that the Declaration of Emergency be rescinded. A detailed final report will follow, including assessments from structural engineers and insurance adjusters, which will provide a comprehensive analysis of the damage and outline further actions needed to permanently repair the Fire Station.
Staff will continue to work with the City’s insurance carrier through the next steps of the restoration and reimbursement process. All future procurement needs will be conducted through non-emergency means and brought to the Council as the RMC dictates.
ENVIRONMENTAL IMPACT:
The repair of the vehicle damage damaged Fire Station is considered statutorily exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15269 Emergency Projects, (b) defined as “Emergency repairs to publicly or privately owned service facilities necessary to maintain service essential to the public health, safety, and welfare.”
GENERAL PLAN CONSISTENCY:
This action is consistent with Guiding Principle 3A in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW:
The City Attorney’s Office has reviewed this report, and the actions taken under the emergency proclamation are consistent with all applicable laws and regulations.
FINANCIAL IMPACT:
Funding for this emergency was unanticipated. Pursuant to the City’s insurance coverage, the insurer will provide an initial claim figure, which is subject to a deductible of $25,000. The insurer is preparing to advance the City insurance proceeds to commence the planning for and remediation/repair of the insured building.
The insurance proceeds will budgeted in the General Liability Fund in Account No. 67302148-47710 for the revenues and 67302148-52011 for the expenditures related to the Fire Station 201 reconstruction.
The emergency declaration provisions allowed for procuring the temporary housing facility and initial remediation and stabilization actions under RMC 2.48.300. Once all assessments and insurance processes are concluded, detailed financial reporting will be included in a subsequent City Council report.