Report Prepared by: Sierra Omlin, Economic Development Associate
Title
SUBJECT: Approval of a Supplemental Appropriation from the Unencumbered, Unreserved Fund Balance of Fund 3002-Bell Station in the Amount of $11,600 and Unencumbered, Unreserved Fund Balance of Fund 1000-General Fund in the Amount of $38,400, for Mold and Asbestos Remediation, and Other Expenditures at the Bell Station Located at 415 W. 18th Street
REPORT IN BRIEF
Considers approving a Supplemental Appropriation from the unencumbered, unreserved fund balance of Fund 3002-Bell Station and unencumbered, unreserved fund balance of Fund 1000-General Fund in the amount of $38,400 for a total of $50,000, for Mold and Asbestos Remediation, and Other Expenditures at the Bell Station located at 415 W. 18th Street.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a supplemental appropriation from the unencumbered, unreserved fund balance of Fund 3002-Bell Station in the amount of $11,600, for mold and asbestos remediation, and other expenditures at the Bell Station located at 415 W. 18th Street; and,
B. Approving a supplemental appropriation from the unencumbered, unreserved fund balance of Fund 1000-General Fund in the amount of $38,400, transferring to Fund 3002-Bell Station and appropriating the same for mold and asbestos remediation, and other expenditures at the Bell Station located at 415 W 18th Street; and,
C. Authorizing the City Manager and Deputy City Manager to execute the necessary documents; and,
D. Authorizing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommend by Staff; or,
2. Approve, subject to other than recommended by Staff; or,
3. Deny; or,
4. Refer to Staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2023/2024 Adopted Budget.
DISCUSSION
In July 2007, the City of Merced took ownership of the Federal Bell Station located at 415 W. 18th Street. Upon ownership, all maintenance and repair became the City’s responsibility, and a Bell Station fund was established under the purview of the Economic Development office.
In February 2022, a water pipe broke causing water damage in an office and closet area in the basement. The water pipe was repaired, and water remediation occurred; however, mold still developed.
Economic Development staff contacted vendors for quotes on mold remediation. Service Master was selected, and a contract was started in the amount of $15,840, which includes a 10% contingency. Before the contract could be executed, Service Master raised a concern about asbestos due to the age of the building. Bovee Environmental was hired to conduct asbestos and lead testing of the office and closet areas. A nominal amount of asbestos was found in the office floor beneath the carpet. Due to these results, asbestos remediation will need to be performed by P.W. Stephens Environmental in the amount of $16,400, which includes a 10% contingency.
During fiscal year 2022/2023 mid-budget review, $25,000 was transferred from general fund to the Bell Station Professional Services account line to cover the Service Master contract for mold remediation. However, due to unexpected staff vacancies in the Economic Development office and the January 2023 and March 2023 storms, some funds were not encumbered before the end of fiscal year 2022/2023 and some funding was used for maintenance items such as the air conditioner.
Staff is requesting Council approval for a supplemental appropriation in the amount of $50,000; $11,600 from the unencumbered, unreserved fund balance of the Bell Station fund and $38,400 from the unencumbered, unreserved fund balance of the General Fund, transferring to the Bel Station fund and appropriating to the Professional Services account. After covering the mold and asbestos remediation, the remaining funds will go towards the increase in utilities, HVAC chemical costs, alarm system costs, and fire inspection costs in the current fiscal year 2023/2024.
IMPACT ON CITY RESOURCES
A supplemental appropriation of $11,600 is needed from Fund 3002-Bell Station and $38,400 is needed from Fund 1000-General Fund to cover the expenditures for Mold and Asbestos Remediation, and Other Expenditures at the Bell Station located at 415 W. 18th Street.
ATTACHMENTS
1. Bovee Environmental Asbestos and Lead Testing Report
2. Service Master Quote for Mold Remediation
3. P.W. Stephens Environmental Quote for Asbestos Remediation