REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
December 5, 2023
FROM
DON DAY, Director, Project and Facilities Management Department
VICTOR TORDESILLAS, Director, Department of Risk Management
SUBJECT
Title
Termination of Emergency Related to Recovery from Fire at 172 W. 3rd Street in San Bernardino
EndEnd
RECOMMENDATION(S)
Recommendation
Terminate the finding originally made by the Board of Supervisors on June 28, 2022 (Item No. 63) that there was substantial evidence that the fire at 172 W. 3rd Street on June 19, 2022, created an emergency pursuant to Public Contract Code section 22050, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property and essential public services, necessitating fire remediation activities at 172 W. 3rd Street, and remodel/renovations of portions of 268 W. Hospitality Lane, San Bernardino, to allow staff to provide services and preventing the delay resulting from a formal competitive solicitation of bids to procure remediation and construction services.
(Presenter: Don Day, Director, 387-5000)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
The action to terminate this emergency will not require the use of additional Discretionary General Funding (Net County Cost).
The Project and Facilities Management Department (PFMD) closely monitored and evaluated construction costs associated with the accommodation of employees displaced by the fire, which occurred on June 19, 2022, at 172 W. 3rd Street (Premises). The costs associated with addressing or preventing the effects of the fire were applied to the Capital Improvement Program (CIP) Project for 268 W. Hospitality Lane renovations (WBSE 10.10.1290), as well as to the 172 W. 3rd Street Fire Damage CIP Project (WBSE 10.10.1312) established to track remediation costs. No budget adjustments are required, and PFMD is proceeding with the termination of the emergency without any financial modifications.
BACKGROUND INFORMATION
On June 19, 2022, the County experienced severe property loss from a major fire that swept through the Premises in San Bernardino. This building is County-owned, which provided workspace for various County departments, including Land Use Services - Code Enforcement (Code Enforcement). Code Enforcement occupied space on the 4th floor of the building where the fire inflicted the most damage. The County required office space for Code Enforcement employees to safely work and continue to provide essential public services.
On June 28, 2022 (Item No. 63), the Board found that there was substantial evidence that the fire at the Premises on June 19, 2022, created an emergency pursuant to Public Contract Code section 22050, requiring immediate action to prevent or mitigate the loss or impairment of life, health, property and essential public services, necessitating fire remediation activities at the Premises, and remodel/renovations of portions of 268 W. Hospitality Lane in San Bernardino, to allow for the relocation of staff from Code Enforcement to continue to provide services. The Board found that the emergency must not be further delayed by a formal competitive solicitation of bids to procure remediation and construction services. The Board also approved Resolution No. 2022-131 authorizing the Chief Executive Officer (CEO) to direct the Purchasing Agent (Purchasing) to issue purchase orders and/or execute contracts, in a total amount not-to-exceed $5,000,000, for any remediation, construction, and modifications related to the fire. As long as the issuance of these purchase orders and/or contracts was necessary to respond to the emergency pursuant to Public Contract Code sections 22035 and 22050, the Director of PFMD was authorized to accept the work when 100% complete and execute and file the Notice of Completion.
On September 13, 2022 (Item No. 44), the Board approved Resolution No. 2022-180 to increase the not-to-exceed original project budget from $5,000,000 to $8,000,000 for any remediation, construction, and modifications related to the fire.
On January 10, 2023 (Item No. 31), the Board approved a modified recommendation to continue the emergency, removing the delegation language authorizing the CEO and Purchasing to approve new contracts, in order to allow the Board additional time to evaluate the status of the emergency and action taken to date.
On January 24, 2023 (Item No. 37), the Board approved a recommendation to continue the emergency and reinstated the delegation language authorizing the CEO and Purchasing to issue purchase orders and/or execute contracts, in a total amount not-to-exceed $8,000,000, for any remediation, construction, and modifications related to the fire.
On July 25, 2023 (Item No. 39), the Board approved Resolution No. 2023-144 to increase the not-to-exceed budget by $2,123,681, from $8,000,000 to $10,123,681, for any remediation, construction, and modifications related to the fire. To reach 100% building remediation, Belfor USA Group Inc. (Belfor) was directed to proceed with necessary additional abatement work that was discovered at the conclusion of work associated with the scope of services under Amendment No. 2 of Belfor’s contract.
On August 31, 2023, the scope of work for construction Contract No. CAE-074 with Belfor was completed, along with the environmental monitoring services from Pacific EH&S Services, Inc. (Pacific).
The PFMD has determined that emergency conditions no longer exist and therefore continuation of the Emergency Proclamation pertaining to the 172 W. 3rd St. is no longer needed. As a result, it is recommended that the Board terminate the existence of this emergency in accordance with Government Code section 22050.
PROCUREMENT
To facilitate the remodel/renovations of portions of 268 W. Hospitality Lane in San Bernardino and allow for the relocation of staff from Code Enforcement, PFMD contacted Angeles Contractor Inc. (Angeles) and requested a scope of work, overview of construction, pricing, and schedule (Proposal). On July 14, 2022, Angeles submitted the requested Proposal to PFMD. PFMD reviewed the Proposal, and recommended proceeding. On July 21, 2022, PFMD submitted the Proposal and construction contract to the CEO for approval and authorization for the Purchasing to execute the contract and issue a purchase order. PFMD received the executed Interoffice Memo and Delegated Authority approving the scope of work by the CEO on July 26, 2022. Purchasing executed Contract No. CAE-071 in the amount of $1,182,000, for the term of 60 calendar days on July 27, 2022. The remodeling project located at 268 W. Hospitality Lane was not part of the $10,123,681 insurance claim proceeds fund; however, the cost to accelerate the remodel project was paid from the final insurance claim settlement.
On August 24, 2022, the Purchasing Department (Purchasing), under the direction of the CEO, approved Contract No. CAE-073 with SafeworkCM to provide consultant services for the remediation of the Premises in the amount of $126,300. SafeworkCM was approved to collect, organize, and file all relevant project files for historical record as well as participate in daily coordination meetings with the various contractors and internal stakeholders. SafeworkCM also managed the compilation of contract documents and supported the County in its execution of various additional contracts. The original contract with SafeworkCM expired, however, there was a need for continued consulting services while work was still in process for this project. Accordingly on April 4, 2023, Purchasing executed a subsequent contract (Contract No. CAE-078) with SafeworkCM, in the amount of $72,150 for the period March 1, 2023, through August 31, 2023, as authorized by the County Code.
On November 2, 2022, Purchasing, under the direction of the CEO, approved Contract No. CAE-074 with Belfor to provide remediation, abatement, clean up and demolition services at the Premises in the amount not-to-exceed $4,126,860. Belfor shored the existing concrete structure, performed demolition work associated with the abatement and remediation scope, cleaned, stored, and returned all fire-damaged contents, office equipment and cataloging salvageable assets.
On November 23, 2022, Purchasing approved Contract No. CAE-075 with Degenkolb for design services to provide a scope narrative to restore the Premises to its pre-loss event condition, in an amount not-to-exceed $89,280.
On December 6, 2022, Purchasing approved Contract No. CAE-077 with Pacific to provide environmental monitoring services for the removal of hazardous materials.
On January 5, 2023, the CEO directed Purchasing to execute Amendment No. 1 to Contract No. CAE-074-A1 with Belfor in the amount of $2,988,000, from $4,126,860 to a total revised contract amount of $7,114,860, to provide additional remediation services. Purchasing executed Amendment No. 1 with Belfor on January 11, 2023.
On February 16, 2023, Purchasing approved Amendment No. 1 to Contract No. CAE-077-A1 with Pacific, in the amount of $159,960, from $125,000 to a total revised contract amount of $284,960, for additional environmental monitoring services required to ensure precautions for health and safety, as well as compliance with air quality regulations are met in conjunction with additional remediation services currently in process. On April 25, 2023 (Item No. 46), the Board ratified Purchasing’s approval of Amendment No. 1 with Pacific pursuant to County Code Section 14.0106, as the consulting contract was signed on an emergency basis and the amount exceeds the amount authorized by Government Code Section 25502.5 (currently set at $200,000). Pacific completed these environmental monitoring services as of August 31, 2023.
On April 6, 2023, the CEO directed Purchasing to execute Amendment No. 2 to Contract No. CAE-074-A2 with Belfor, with no change in the contract amount of $7,114,860, and an increase in the contract duration from 247 calendar days to 360 calendar days to complete additional remediation services. Purchasing executed Amendment No. 2 with Belfor on April 18, 2023.
On May 4, 2023, Purchasing, under the direction of the CEO, approved Amendment No. 1 to Contract No. CAE-071 with Angeles in the amount of $45,625, from $1,182,000 to a total of $1,227,625. The amendment included an extension to the contract term from 60 calendar days to 298 calendar days and approved a Change Order in the amount of $61,006, from $1,227,625 to a total of $1,288,631, for the additional scope of work. Due to unforeseen conditions specific to the flooring, electrical and plumbing of the building, additional work with Angeles was necessary. Contract No. CAE-071 and Amendment No. 1 with Angeles are not part of the $10,123,681 insurance claim proceeds fund; however, the cost to accelerate overtime pay will be paid from the final insurance claim settlement.
On May 19, 2023, the scope of work for construction Contract No. CAE-071 with Angeles was completed, and the Notice of Completion was filed with the San Bernardino County Assessor-Recorder-County Clerk on May 24, 2023
On July 5, 2023, the CEO directed Purchasing to execute Amendment No. 3 to Contract No. CAE-074-A3 with Belfor, with no change in the total contract amount of $7,114,860, increasing the contract duration from 360 calendar days to 420 calendar days to complete additional abatement work as discovered at the conclusion of work associated with Amendment No. 2. The Director of Purchasing executed Amendment No. 3 with Belfor on July 25, 2023.
On August 16, 2023, Purchasing approved an additional noncompetitive contract (Contract No. CAE-075) with Degenkolb for additional design services and a scope of narrative to restore the Premises to its pre-loss event condition in an amount not-to-exceed $15,000. The combined total of both contracts awarded to Degenkolb was $104,280.
On August 31, 2023, the scope of work for construction Contract No. CAE-074 with Belfor was completed. The Notice of Completion was filed with the San Bernardino County Assessor-Recorder-County Clerk after all of the remaining contractual items are completed.
On November 1, 2023, the CEO directed Purchasing to execute Amendment No. 4 to Contract No. CAE-074-A4 with Belfor in the amount of $2,034,190, from $7,114,860 to a total revised contract amount of $9,149,050, to complete additional remediation services. Purchasing executed Amendment No. 4 with Belfor on November 8, 2023.
No further projects are necessary to address the effects of the emergency due to the recommended termination of this emergency.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Julie Surber, Principal Assistant County Counsel, 387-5455) on November 14, 2023; Risk Management (Victor Tordesillas, Director, 386-8623) on November 16, 2023; Purchasing (Leo Gomez, Purchasing Manager, 387-2063) on November 14, 2023; Project and Facilities Management (Robert Gilliam, Chief of Project Management, 387-5000) on November 16, 2023; Finance (Yael Verduzco, Principal Administrative Analyst, 387-5285) on November 15, 2023; and County Finance and Administration (Valerie Clay, Deputy Executive Officer, 387-5423) November 15, 2023.