Special City Council Meeting - November 21, 2023
View Agenda - Watch Entire Meeting
Land Acknowledgement
The land that Eureka rests on is known in the Wiyot language as Jaroujiji. Past actions by local, State and Federal governments removed the Wiyot and other indigenous peoples from the land and threatened to destroy their cultural practices. The City of Eureka acknowledge the Wiyot community, their elders both past and present, as well as future generations. This acknowledgement demonstrates the City’s commitment to dismantle the ongoing legacies of settler colonialism.
Roll Call
Mayor Bergel presiding; Councilmember Castellano, Councilmember Moulton, Councilmember Bauer, and Councilmember Contreras-DeLoach present in chambers. Absent: Councilmember Fernandez
Ocean View Acquisition and Operations Complex Development CEQA
Attachment 1 - City Council Resolution
Attachment 2 - Initial Study and Proposed Mitigated Negative Declaration
Attachment 3 - Response to Comments and Errata
Attachment 4 - Mitigation Monitoring and Reporting Program
Attachment 5 - Planning Commission Resolution
Presented by Public Works Director Gerving, Development Services Director Kenyon, and Project Manager Marsolan
Director Gerving presenting two agenda items today, one is a Public Hearing as part of the CEQA process with the acquisition of the property. The second is a report about the conceptual design process and what comes next with the development. Staff is requesting direction from Council on that second item.
The Project site is in the southwest quadrant of the City, located above Broadway, north of Sunset, east of Weiler Road. It is unused cemetery land, and the proposal is to acquire 5.6 acres from Ocean View Cemetery to develop Eureka Operations. Under the California Environmental Quality Act (CEQA), the City needs to analyze the environmental impacts of developing this site.
Planning Commission held a meeting on October 23rd to review the draft environmental document, the Initial Study/Mitigated Negative Declaration (IS/MND) document, and reviewed conformance with the 2040 General Plan. Comments received at that meeting are included in the Agenda Summary.
Council will hold a public hearing, and staff is recommending Council adopt the Mitigated Negative Declaration (MND), Mitigated Monitoring and Reporting Plan (MMRP), and Response to Comments and Errata; and authorize the property acquisition.
Project description encompasses the largest build-out that could potentially be constructed over the lifespan of the facility, which currently is projected to be 50 years and beyond. The existing corporation yard on West 14th Street has buildings that have been in use since the 1950s, largest building was built in 1980s. It has exceeded it's useful life. Another building sustained significant damage in the 2010 earthquake. The current corp yard site is in a Tsunami Hazard Zone, and in an area subject to liquefaction. No buildings meet current structural standards, and are subject to impacts from sea level rise. The current site does not have enough space for employees, has duplicative spaces, and does not have enough covered storage.
The new site will serve as the City's new corporation yard, with administrative offices, and serve as the City's emergency operations center. Full development would include operations building, warehouse, fleet maintenance shop, and surrounding amenities. Will be able to house 66 staff members that currently work out of the existing corporation yard and City Hall: field operations staff, including wastewater collections, water distribution, fleet maintenance, and street maintenance, and administrative staff, including Director of Public Works engineering, GIS, and code enforcement.
The Operations Complex features include high efficiency building design, parking for employees, visitors, and fleet parking, bulk soil de-watering facility, bulk materials storage, vehicle wash station, solid waste and recycling storage, a telecommunications tower and backup generator, solar panels and electric vehicle charging.
The IS/MND process involved technical studies and analysis of the impact of developing this site, which resulted in proposed mitigation measures and informed the design process. The IS/MND covers the proposed development of 4.8 acres with a facility lifespan of 50 years. Further design efforts and funding parameters may reduce or modify the design to include smaller buildings or propose phases and sequences to allow for growth and development over time.
Recommended action to Council is to adopt a resolution adopting the IS/MND, the MMRP, Response to Comments and Errata, and authorize the acquisition of land from Ocean View Cemetery.
Council Questions
No questions from Council at this time.
Public comment for this item
Public comment asked for clarification on which parcel is being purchased, and asked if there will be access to this property coming from the Pine Hill area.
Public comment raised concerns about increased noise from construction, and regular use of site, disturbing the patrons of the cemetery. Commenter also wanted to know about the exact price, as the what was quoted in the paper was not an exact figure. Heard that Costco was interested in utilizing the current corporation yard, wanted to know if that was happening. Wanted to know where the money, and what limit was for council to spend before needing decision to go to voters.
Council Questions & Comments
Councilmember Moulton asked for the map to be displayed to clarify the parcel in question. Asked how the property would be accessed. Answer: The main access point would be from Ocean View Cemetery Rd, off of Broadway.
Councilmember Moulton asked about noise mitigation and timing during the construction process and continued operations going forward. Answer: the IS/MND document looks at noise in two parts; what would be occurring during construction, what would the hours of construction be, and what types of equipment would be at the site. What are the allowable noises, what are the noise codes, rules, and regulations in that area. The document covers buffering sounds during regular use of the site, with trucks being utilized during regular business hours. Reviewed an enclosure
Also looks at short term impacts, construction is typically m-f, would be ongoing. Director Gerving has communicated with Ocean View Cemetery, sent them the IS/MND in addition to the other radius notification that other nearby property owners received, to invite them to comment and ask questions. Did not receive questions or comments from Ocean View.
Councilmember Moulton asked if there were notice from the Cemetery about rituals and ceremonies being held, barring natural disaster, is that something that could be honored. Director Gerving said that the City wants to be a good neighbor, and wants to be sensitive to the cemetery as an organization, but also to the people burying loved ones.
Councilmember Moulton asked for Director Gerving to speak to the approach taken with the planning of the corporation yard being built in a more residential area. Answer: Director Gerving noted that this is being planned intentionally from the outset, and not evolved over the past 70 years, it will function more smoothly. In the documents and in the upcoming presentation, the City has made a commitment to the cemetery to shield the operations from view of the cemetery by orienting buildings away from the cemetery, and that will help to buffer sound. Selection of this site was a last-ditch effort, no other suitable sites in or near the City were identified, and moving the corporation yard out of the tsunami hazard area and liquefaction area are of utmost importance.
Councilmember Moulton asked for clarification on the cost of the property. Answer: the agreed-upon price for the parcel is $1,402,500.
Councilmember Moulton asked if there was a limit to what Council could spend. Answer: City Manager Slattery clarified there is not a limit, and Council can decide to go against the recommendations of staff. Department heads have limits to their spending, and require Council approval to exceed those limits.
Councilmember Bauer asked what would the effect be on critical infrastructure if there were a tsunami at the current corporation yard site. Answer: Director Gerving noted that this will be covered in greater detail in the upcoming presentation. If there were an earthquake in the Cascadia Subduction Zone, where a tsunami came onshore within 10-15 minutes after a magnitude 8 or 9 earthquake, in addition to the buildings at the site being damaged significantly, a tsunami would likely render all equipment and fleet vehicles, as well as police and fire vehicles that may be on the site for storage or repair. That would have a significant impact on the City's ability to respond to a significant natural disaster.
Mayor Bergel asked if there is anybody interested in purchasing the current corporation yard site. Answer: City Manager Slattery said that there have been discussions with Costco, but the City has not received a letter of interest or anything similar.
Motion to council
Council voted to adopt the resolution, authorize the acquisition of the property and approve appropriation of funds; 4 yes votes, motion passed.
Reports and Action Items - Watch
Eureka Operations Complex Development
Presented by Public Works Director Gerving, Project Manager Marsolan, Sid Scott, Principal, Scott Edwards Architecture, Brandon Dole, Associate Principal, Scott Edwards Architecture
Relocation of the corporation yard has been a long-standing goal of the City; it has been in the Hazard Mitigation Plan for some time. The City has looked at various sites within and without the City limits.
City Operations Complex Concept Phase - City retained Scott Edwards Architecture, a firm that has experience with public works facilities, presentation from Scott Edwards Architecture has worked with 50 plus cities.
Began project in May of 2023. Came to observe the Public Works department to determine how the department works, to take a right-sizing approach to working up the concept. Determine how big the space needs to be as determined by the roles of the employees within the department. Developed preliminary building concepts as informed by current and future needs. Began early PG&E coordination to
Site is within the high tsunami risk and high liquefaction risk zones. In the event of a major earthquake or tsunami, all fleet vehicles and equipment would be lost, as would any fire and police vehicles and equipment stored at the site, significantly reducing the City's ability to respond to such event.
Current site has one ingress and egress point, and requires vehicles to reverse through for maneuvering, which adds to noise pollution. Ideal space would have vehicles pull through, with little to no reverse maneuvers. Current site has lots of duplicate spaces. Equipment has to be stored uncovered outside. Crew spaces serve double and triple duty, and work spaces are not efficient.
The development site is located outside the tsunami and liquefaction zones, allows for multiple points of access, and allows for ideal positioning of buildings. The concept development was driven by considering the effect of the elements on the site, as well as the impact of the site on the neighbors, including view and noise.
Proposed site has specific ares for the public to park, away from the work of the site. Limits where vehicles need to reverse, and positions office and admin building as the most visible from the cemetery. Buildings are also positioned to best mitigate prevailing winds. Utilized the topography to manage the amount of material that would need to be removed from the site for the workflow, as well as managing stormwater.
Comparing existing versus proposed facilities meets the needs of the current site and allows for growth.
Estimated concept budget, is cost per square foot, not necessarily specific budgets. Can give specific costs for items that have been identified, such as a truck wash.
Council Questions
Councilmember Contreras-DeLoach asked for clarification of acronym FFE. Answer: that stands for Fixtures, Furniture, and Equipment.
Councilmember Castellano asked if a warehouse building that was noted as an item for the future was included in this cost estimate. Answer: that items is not included in this cost estimate. Future growth is built in, but not captured in the cost. The truck wash is included in the cost.
Councilmember Bauer asked if there was stormwater treatment included in this concept. Answer: everything in the site flows to the southwest, where there is a stormwater facility, and there is an area to the east of the visitor parking that could also be utilized for stormwater.
Councilmember Bauer asked about the building orientation for solar panels. Answer: there is ample roof area for solar panels.
Councilmember Contreras-DeLoach asked about solar panel installation requires for this type of facility. Answer: there will be some requirements for solar panels and battery backups in the green building code requirements, but beyond that the City has sustainability and climate action goals to meet. Will try to offset as much of the electrical use as possible with solar panels for the project.
Councilmember Castellano asked for some detail about what the cost drivers for this concept. Answer: Facilities that are deemed critical are built to a higher standard, a higher seismic resiliency, which does cost more. facilities are designed to withstand larger seismic events. The office building will be finished out similar to City Hall, with a lens of durability and maintenance in terms of material selection. That is the highest cost building, with the most finishes required. The warehouse buildings can be done out of pre-engineered metal, and that costs less to build.
Councilmember Castellano asked for clarification in conceptualizing the size of the office building, is it comparable to City Hall. Answer: Director Gerving said that City Hall is about 6500 square feet per floor, with three floors and a basement, that puts City Hall at about 50% larger than the 1600 office building. Associate Principal Dole said that the key takeaway is that the proposed site plan is informed by the use of the current corporation yard, moving key pieces of equipment from open air storage to covered or indoor storage. In the existing versus proposed comparison, the proposed warehouse is much bigger than the current corporation yard warehouse because of the need to house the currently owned assets that are in need of indoor or covered storage. The big difference is building that enclosed space. Principal Scott mentioned that the costs per square foot reflect the cost of developing the site, and has seen that actual cost reflected in numerous other projects.
The cost level of the concept is based on limited information, but does help to illustrate and advise the City on the magnitude of the potential cost. The estimate is higher than what City staff expected, and the Eureka Operations Complex is only one project that will require funding over the next ten years; there are other projects identified in the City of Eureka Facilities Master Plan. Funding other large capital projects, such as City Hall, should be considered now to plan for budgeting and financing options. To reach the target budget, the project team will get a schematic design that will provide more detailed cost estimates, reviewing the City Facilities Master Plan for other City-wide projects, and then outlining potential financing and funding options for various large City projects, and then determining a maximum budget for the Eureka Operations Complex.
The proposed planning and sequence of the project. Reviewing the traditional hard-bid approach, this method requires that the City retain a design firm to produce construction documents, and then the project goes out to bid and is awarded to the lowest responsive, responsible bidder. Hard-bid does not allow contractors to have input during the design process and does not permit the City to consider the bidders qualifications for experience. Often a bid effort will result in receiving bids that are above available funds, then the project must be value-engineered and re-bid.
Project staff are recommending the Construction Manager At Risk (CMAR) method. This is a method that is used by other larger California cities and public utility districts. With the CMAR method, the City would issue an RFP for CMAR services, and the City would evaluate the responses through their past experience, through past budget management and through past projects. The early stage of the agreement is for preconstruction services, then the CM can act on the City's behalf and engage in the design process, produce constructablility reports, and cost estimates. They become a team member working with the City and the architect and engineer. Reach 100% design, then the CM offers a Guaranteed Maximum Price (GMP) proposal. The City can then do a cost reasonability study and determine if the City wants to accept the GMP. City then may award the construction to the CM for the GMP, or terminate the services and carry forward. If the CM is awarded the protect, they then carry the financial liability to deliver the completed project within the GMP. Benefits of this method with this project are reduced delivery time, enhanced design quality from the input of the CM, greater cost certainty, fewer change orders, fewer claims, lower project costs.
Schematic Design (SD) will get to real-time design development. Begin with a call for proposals for architect and engineering services. Schematics for PG&E new service, will allow for understanding of costs. Schematics for each new utility, source location, service size, meter size, all mechanical, electrical, plumbing systems, all structures, materials, construction methods.
After the schematic plans and SD cost estimates and CMAR is selected, then analyze the existing budget allocation and distribution of the costs for existing corporation yard and how costs would be distributed. Review available sources of funds, and quantify required funding or financing for City-wide capital projects, review Facility Master Plan. Then exploring financing options and debt service payment plans, and return to City Council with a proposed project funding package.
Target budget drives the final design. The CM would then propose a GMP, and that would come back to City Council with a recommended award for construction contract.
Council Questions
Councilmember Contreras-Deloach asked for clarification from staff about how much more this project turned out to be at this stage from what staff's initial expectations were. Answer: City Manager Slattery explained that the intention at the outset was to fund both the new operations complex and many years of deferred maintenance over many of the City's facilities that needs to be remedied over the next ten years. Finance Director Millar had initially anticipated for $27,000,000. That was without checking the market what the City's ratings are and what could be actually secured. This can fluctuate and change, and the City can locate other funding sources outside of this one. This initial number was based on what the annual payment from the general fund could be. The idea was to utilize $875,000 annually, allocated in the facilities policy for a portion of this debt. Of that amount, $650,000 of that would be going to the repayment of general fund's portion of the $27,000,000 amount. This can change, and the City can look at different ratios and other funding sources. The reasoning behind this is that CEQA requires what the build-out will look like over the next 50 years. This is also a Cadillac, and the design can be reduced to a reliable Toyota.
Councilmember Contreras-DeLoach asked why the relocation of staff from City Hall to the operations complex, and if that could not be included as a cost-saving measure. Answer: the reasoning behind that choice is to have everybody at one facility, but it is not a requirement. This an area to look at for cutting back if needing, but keeping in mind the current space constraints at City Hall and other things like that. All of those things will be on the table when we look at it.
Councilmember Moulton asked how the project could be broken up into stages and how that would be useful from the get-go. Answer: Director Gerving explained that a certain amount of the build would be required to make it operational and function-able. If, for instance, there were a decision to pull out the administrative and engineering functions from the facility due to costs, would still want to develop the remainder of the site in such a way that this Council or a future Council would want to add that function or another function years down the road, that opportunity is provided. The CEQA document covers the maximum build-out, and would not need to be visited again for this site in the future.
Councilmember Castellano asked if there are concerns about beginning the CMAR process before there is a budget set. Answer: Project Manager Marsolan explained that part of the reasoning behind bringing this forward now is that engaging in the preconstruction services does not have a financial risk for the City. This is a good chance to bring the CM to the conversation. The project does need to be through the SD phase before requests for proposals can go out, to be clear about what the project would entail. Project team would release the RFP when the SD is at about 50%, and would be working on many aspects concurrently. Project team wants Council to be familiar with the whole of the project now as the team is working on different parts. City Manager Slattery added that the City wants to avoid a situation where the project would go out to bid and the respondents are millions of dollars over what the City had estimated to costs to be. The benefit to having the CMAR method is there's a CM to hold accountable to the numbers submitted to the City, and the City has an idea of what will happen before getting to the end of the process. Project Manager Marsolan added that the City cannot choose to go to bid and then switch to CMAR, but can start with CMAR to develop the project, the City would own all of the design documents, and could take the project back and bid with other means.
Councilmember Bauer stated this is an opportunity to build something that's going to last, that will handle expansion, and does not want to say to just throw something up. Councilmember Bauer asked if the City needs space for administrative work like has done in the past considering the capabilities of remote work, and if Council is setting a ceiling for spending at this meeting. Answer: City Manager Slattery responded that the decision today is not about any amount of money, but about the process today.
Public comment for this item
Mayor Bergel noted that due to time constraints, Council may not be able ask questions based on public comment, but staff will be able to respond outside of the meeting.
Public commenter asked when Scott Edwards was retained, asked how it was determined that the site is outside of the tsunami zone, how is the elevation at the proposed site different from the current site.
Public commenter asked for further clarification on the site location, and asked that two distinctive trees are not removed from the site.
Motion to council
Council voted to approved the recommended action items; 4 yes votes, motion passed.
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