City of Rialto - File #: 21-0598

Date	Ver.	Action By	Action	Result	Action Details	Meeting Details	Video
9/14/2021	1	City Council			Not available	Meeting details	Not available

For City Council Meeting [September 14, 2021]

TO: Honorable Mayor and City Council

APPROVAL: Marcus Fuller, City Manager

FROM: Michael Tahan, Interim Public Works Director

Title

Request City Council to Delegate Authority to the City Manager to Approve Necessary Services for the Remediation and Reconstruction of the Damaged Public Works Building Located at 335 W. Rialto Avenue up to the Initial Claim Value of $250,000.

(ACTION)

Body

BACKGROUND:

On Friday, August 20, 2021, the Public Works, Engineering and Administration Department was alerted that the building located at 335 W. Rialto Avenue was on fire. The Fire Department was dispatched and responded to the fire. All City staff and any members of the public that were in the building at the time were safely evacuated from the area. The fire caused extensive damages to the structure of the building in addition to water and smoke damage. The building was boarded up and secured that evening.

ANALYSIS/DISCUSSION:

Over the weekend and on Monday, August 23, 2021, all Public Works staff were relocated to the HR Meeting Room/Public Works Breakroom. Staff worked closely with IT and Facilities Maintenance staff to ensure all services were maintained and fully operational to the public and developers/businesses.

On August 26, 2021, City staff met with the City’s Insurance Adjuster and McLarens and Padgett’s Fire & Flood Restoration company to discuss the actions needed to repair and reconstruct the damages and the need for modular buildings to temporarily house Public Works & Engineering staff during this process.

Padgett’s Fire & Flood Restoration

The Rialto Fire Department contacted 1800-BOARD-UP to secure the building once the fire was extinguished. Padgett’s Fire & Flood Restoration arrived on scene and proceeded to board up the roof and glass doors, securing the building.

On August 21, 2021, Padgett’s performed emergency water reclamation and installed dehumidifiers to start the drying process.

On August 25, 2021, Padgett’s contacted Charles Taylor Environmental to perform Lead and Asbestos testing. The test results returned with only Lead in the green colored tiles in the men’s restroom. Surprisingly, the test results confirmed no presence of asbestos, despite Staff’s assumption asbestos would be present given the age of the building.

Lack of asbestos will allow Staff to proceed with cleaning and clearing the building for work to continue.

On August 27, 2021 Padgett’s electrician tested and connected electrical power to the building so more dehumidifiers may be installed. Subsequently, Padgett continued with removal off contents, carpet and drywall to further dry the building. Padgett’s will acquire all necessary building permits to perform their work.

Fire Investigation

A Fire Investigation was performed, and the initial determination is that the fire was likely caused by faulty electrical wiring within the attic space, and is considered an undetermined electrical fire. The investigation did conclude that the fire was not caused by human error or activities occurring in the building. Given the age of the building and electrical wiring, it will likely be necessary to completely remove and replace all electrical systems to avoid a future electrical fire in the building.

Insurance Claim

The City has filed a claim with its insurer, and has met with the Insurance Adjuster onsite. The Adjuster has authorized the City to proceed with removal, repair and rehabilitation of the building which will require the City to solicit proposals and select various consultants and contractors. A copy of the claim is included as Attachment 1. The building itself is insured up to the declared value of $12,914,920. The initial claim estimate was submitted for building repairs at $220,000; lost business personal property at $15,000; and extra expenses related to modular trailers of $20,000 for a total initial claim of $255,000. On August 26, 2021 the City’s Insurer provided a Claims Report included as Attachment 2.

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 Public Works, Engineering and Administration, services:

• 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 agreements for leasing of modular buildings to temporarily relocate staff (approximately 20 staff members), with all needed utilities and accessibility, to continue to serve the public and developers/businesses 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, electronic storage in coordination with the Director of Management Services

These costs will be coordinated with the City’s Insurance Company who will review, verify, and reimburse the costs associated with the fire.

It is unknown the final extent of the required remediation and repair to the Public Works Department building. At this time in order to ensure expediency in this endeavor, Staff recommends the City Council delegate authority to the City Manager to incur costs not to exceed $250,000 in accordance with the initial claim.

ENVIRONMENTAL IMPACT:

The repair of the fire damaged Public Works Department administrative building 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 has reviewed and supports the staff report.

FINANCIAL IMPACT:

Funding for this emergency was unanticipated and pursuant to the City’s insurance coverage the insurer has approved an initial claim of $255,000 which is subject to a deductible of $5,000. The insurer is preparing to advance the City insurance proceeds of $250,000 to commence the planning for and remediation/repair of the insured building.

RECOMMENDATION:

Staff recommends that the City Council delegate authority to the City Manager to proceed with the remediation and repair of the Public Works Department administration building, requiring the solicitation of various consultants for preparation of studies and plans, and the solicitation of bids and award of contracts related to the remediation and repair, at a total cost not to exceed $250,000.