DATE: September 25, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Development Services Department
TITLE: APPROVAL OF EMERGENCY DEMOLITION WORK FOR THE HAMMERHEAD SECTION OF THE OCEANSIDE PIER, RESTAURANT BUILDING, AND FOOD KIOSK
RECOMMENDATION
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Staff recommends that the City Council take the following actions with respect to emergency demolition work related to the hammerhead portion of the Oceanside Pier, including the removal of the existing restaurant building and food kiosk: approve a Public Works Agreement with Jilk Heavy Construction, Inc. (“Jilk”) in the amount of $1,141,493 (which includes costs for monthly best management practices (BMP) maintenance needed for structural damage assessment, as-needed stringer replacement, fire investigator access during demolition, evidence preservation, stand-by delays for planned events, and name plate salvage) for demolition and debris removal work; authorize the City Engineer to approve Change Orders up to a total of $135,000 for a total not to exceed amount of $1,276,493; approve structural assessment work by Moffatt & Nichols for a not-to-exceed amount of $75,000; approve $3,000 for agency emergency permit applications; appropriate $354,493 from Infrastructure Reserves; and authorize the City Manager to execute the agreements upon receipt of all supporting documents.
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BACKGROUND AND ANALYSIS
Constructed in 1987, the Oceanside Pier (“Pier”) is a 1,954-foot long wooden structure situated at the western terminus of Pier View Way. The Pier offers recreational opportunities like public fishing, walking and sightseeing while offering vast ocean views. The westernmost section (“hammerhead portion”) of the Pier was occupied by the former Ruby’s Diner restaurant building and Brine Box food kiosk. The Pier also contains a number of engraved boards on the side railings. The names on the boards represent those families who donated money for the City’s Centennial Celebration.
On April 25, 2024, a fire occurred on the hammerhead portion of the Pier that destroyed the restaurant building, the Brine Box food kiosk, a significant portion of the pier safety railing (including the engraved boards), and a large percentage of the deck planking. In an effort to protect Pier infrastructure (water, sewer, and electrical) and prevent further shoreward movement of the fire underneath the Pier that day, City Fire crews removed a 5-foot wide section of the decking located approximately 35-feet east of hammerhead section of the Pier.
On May 22, 2024, the City Council approved reconstruction of the hammerhead section of the Pier, as well as reconstruction of the restaurant building and kiosk at the tenants’ cost. The first phase of the reconstruction effort includes demolition of the hammerhead section of the Pier, restaurant building, and kiosk; it is considered as emergency demolition work necessary to avoid impact(s) to public health and safety, the environment and marine life.
Following the fire, demolition work could not begin until the City’s and tenant’s insurance carriers completed their respective fire investigations. Therefore, while investigations were underway, staff concurrently began the emergency permitting process for the demolition work. Due to the Pier’s location over water and along the coast, permits from the following agencies are required: California Coastal Commission, Regional Water Quality Control Board, US Army Corp of Engineers (“ACOE”), State Land Commission, California Department of Fish and Wildlife, and U.S. Fish and Wildlife Service.
Per City Code Section 28A.24 and the City’s Procurement of Goods and Services Directive AD-21, emergency purchases do not always provide the City an opportunity to obtain competitive quotes; however, in this situation sound judgement has, and shall continue to be used in keeping such orders to the minimum extent feasible. Emergency repairs can be completed and later brought to Council for acceptance.
On July 1, 2024, staff reached out to seven (7) different contractors through direct solicitation in accordance with the City’s Procurement of Goods and Services Directive AD-21. Two non-mandatory pre-bid meetings were held on July 11, 2024 and July 22, 2024. Several contractors attended both meetings.
Bids were due by August 1, 2024. Two responses were received: one from Jilk and the other from Manson Construction Company. Manson Construction Company subsequently provided a letter declining the City’s bid offer due to the lack of necessary resources to perform the demolition work. Jilk submitted a bid in the amount of $880,971 for demolition and debris removal work. In addition to that flat cost, Jilk’s scope of work requires an additional $15,000 per month for BMP maintenance for structural damage assessment, and $90 per linear foot for as-needed stringer replacement.
The contractor’s proposed scope of work includes costs for addressing issues that have arisen since bids were received. For example, one of the involved insurance companies demanded that elements of the Pier, buildings, and utilities be preserved for further investigation. Staff requested the contractor provide costs to preserve evidence as demanded and to provide site access during demolition work to that company at certain points of the demolition work. In order to accommodate site needs from several previously-scheduled special events, the proposed scope of work includes additional costs associated with modifying work during the demolition process. In addition, staff requested the contractor provide costs on a per day basis to add double or triple shifts as needed in order to make up time, should it be necessary, to meet the permitting deadlines.
To date, the following items have been, or will be, completed in order to begin demolition activities:
1. Staff acquired all emergency regulatory permits from the California Coastal Commission, Regional Water Quality Control Board, and ACOE.
a. The ACOE permit states all work must be completed by December 1, 2024, unless written authorization is obtained to extend the completion date.
b. Staff is prepared to request a permit extension to cover any additional work needed to complete the demolition process.
2. The Notice to Proceed was issued to Jilk on September 9, 2024; the contractor began the submittal process that same day.
a. A marine mammal study will be conducted prior to the demolition work as required by the wildlife agencies.
b. A scaffolding submittal will be prepared for review and approval prior to the installation of protective measures (i.e., BMPs) to keep debris from falling into the ocean.
3. Staff has received emails from individuals wishing to retrieve pier railing boards with the engraved names.
a. Staff will soon begin reviewing the requests and comparing them to what is accessible or salvageable
b. Individuals wishing to retain the name plates will be required to sign a liability waiver acknowledging the California Prop 65 chemical warnings related to chemicals known to be present in the nameplate wood and additional chemicals that may be present as a result of the fire.
Some preliminary demolition work may occur out of sequence related to capping of Pier utilities, the removal of the safety guardrails which contain family names, etc.; all work that can be completed without the need to have BMPs installed prior to work, or work that will not require a contractor storage yard, will be completed to the extent practical. As such, some of the requested additional costs may not apply.
Once demolition work has been completed, and prior to scaffolding removal, Moffatt and Nichols will perform a structural assessment of the pier pilings and substructure and will develop a repair plan based on the physical analysis completed.
FISCAL IMPACT
The estimated cost of completing the project is $1,354,493 and broken down as follows:
• Contractor (Jilk) - $1,141,493
o Assumed 4 months of BMP Maintenance
o Assumed 1,000 linear feet of stringer replacement
o Changed Condition costs
§ Fire investigator access during demolition work
§ Preservation of evidence - underdeck electrical system
§ Stand-by day rate due to planned events
§ Salvage Safety Railing Name Plates
• Contingency - $135,000
• Moffatt & Nichol (sub-contractor) - $75,000
• Agency Permits - $3,000
Additional costs may be incurred depending on the extent of the damage once demolition work begins; therefore, staff is requesting that the City Council authorize the City Engineer to approve Change Orders up to a total of $135,000.
So far, the City has received $1,000,000 of insurance proceeds from the City’s insurance pool, Public Risk Innovation, Solutions, and Management (PRISM). Staff is requesting to appropriate this $1,000,000 to the Pier Fire Recovery project (907194624501.5305.10600) to partially fund the demolition work. Staff is requesting to use infrastructure reserves for the remaining $354,493 and to appropriate the funds to the Pier Fire Recovery project (907194624501.5305.10600). The infrastructure assigned account (101.3020.0054) has an available balance of $23.4M; therefore, sufficient funds are available. It’s expected that the Infrastructure Reserve account will be replenished from Insurance Company reimbursements. A transfer of $354,493 from 1101.6900.0501 to 907194624501.6800.0101 will be made if appropriation is approved.
This project was identified as part of the City’s project list as a result of the April 29, 2024 Emergency Declaration. It is possible that a significant portion of the unreimbursed costs incurred for this work will be reimbursed by the State of California Office of Emergency Services.
COMMISSION OR COMMITTEE REPORT
Does not apply.
CITY ATTORNEY’S ANALYSIS
Emergency procurements are authorized according to the provisions of Section 28A.24(a) of the Oceanside City Code. Because it was necessary to begin the emergency work without giving notice inviting bids for the work, City Council should review this emergency action at every regularly scheduled meeting until the action is terminated to determine, by a four-fifths vote, that there is a need to continue the action, pursuant to City Code Subsection 28A.24(a)(3) and Public Contract Code section 22050.
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Prepared by: Brian K. Thomas, City Engineer
Reviewed by: Darlene Nicandro, Development Services Director
Submitted by: Jonathan Borrego, City Manager
ATTACHMENTS:
1. Staff Report
2. PWA
3. Change Order