This staff report is to request authorization for:

1. Professional Services Agreement (PSA) with Cleveland Wrecking Company to demolish and dispose of the Magnolia 1 & 2 building superstructure and Magnolia 3 & 4 ductwork with asbestos and lead abatement for a total cost not to exceed $775,192.
2. PSA with Industrial Hygiene Management to manage the industrial and safety concerns involving the asbestos and lead abatement activities for a cost not to exceed $30,000.

The Southern California Public Power Authority (SCPPA) has agreed to reimburse Burbank for its costs associated with the above two (2) items. The intent of these authorizations is to allow SCPPA to reimburse BWP for timely work required to clear the Magnolia Power Project site for construction.

An amendment to the BWP Fiscal Year 2002-03 Budget would clarify that sufficient budget authority exists.

BWP, as the Project Manager of the Magnolia Power Project (MPP or the "Project"), is demolishing the superstructure of Magnolia 1 & 2 and a large portion of the ductwork in Magnolia 3 & 4. This work is being accomplished to prepare the site for timely construction of the MPP. The existing powerhouse, built in 1941, is being converted to a service building for the Project that will have workspace and storage at ground level, offices and a control room on the second floor, with a third floor for BWP�s use. The new service building will be characterized with the same overall appearance as the existing structure.

This demolition scope includes shoring the front entry section of the building while demolishing the structure to ground level in the area of Magnolia 1 & 2 and removing the boiler exhaust ductwork from the rear of the Magnolia 3 & 4 area. Removal of the superstructure in the area of Magnolia 1 & 2 will allow the footprint of the new Magnolia Service and Control Building to be superimposed on the basement and foundation of the existing structure. Electrical improvements will be made to support the new building requirements. The contract specification includes a complete and clear depiction of the asbestos and lead mitigation work requirements that will ensure proper management and disposal of the hazardous materials.

The Magnolia 1 & 2 foundation would be costly to remove and is strong enough to support the Project�s service building. As the new service building would use the old foundation, the new building would have the same "footprint" as the old. In addition, serving as an entrance to the Magnolia 1 & 2 powerhouse, an entry section that houses electrical distribution control and monitoring equipment must be kept intact and undisturbed during MPP construction. Since the building would have the same outline and use the same entry section as the original building, it was decided to retain the same height and general shape as the original structure.

The abatement of asbestos and lead is necessary to reduce the risk of hazardous exposure in the areas in and adjacent to the new construction. Industrial hygiene and safety concerns necessitate removal of the rear portion of the abandoned ducting in Magnolia 3 & 4, and the plan calls for this work to be accomplished prior to start of construction of the MPP in June 2003.

Three bids were received by SCPPA in response to an RFP for the combined scope of work. Union labor was required in order to conform with the intent of the MPP Labor Agreements, a project that will be constructed with union labor. All three bids were technically qualified, and the bid results were as follows:

• Cleveland Wrecking $766,000
• Fox Construction $950,550
• Gonzales Construction $987,989

BWP, as Project Manager for the MPP, has received approval from SCPPA to secure a contract with Cleveland Wrecking to perform the work. While SCPPA will directly fund and perform the construction of the MPP, pre-construction work under the Planning and Pre-Construction phase of the Project is conducted by Burbank at SCPPA expense. As this work is pre-construction work, SCPPA will reimburse BWP for the work. In order to perform such work, BWP requires approval of the PSAs and corresponding spending authority from the Burbank City Council. This resolution approves those PSA�s and that spending authority.

There are two areas addressed in this site preparation work:

1. Demolish and dispose of the Magnolia 1 & 2 building superstructure.
2. Remove the Magnolia 3 & 4 boiler exhaust stack ducting and asbestos that may breech into the MPP construction area.

The target completion schedule for all this demolition work is to be finished in June 2003.

Item 1: Magnolia 1 & 2 Demolition Work

Major components of the Magnolia Station Unit 1 & 2 project are as follows:

• Lead abatement and mitigation
• Electrical transformer installations and disconnections, and new HVAC ducting
• Service outage (for load transfer)
• Structural bracing
• Isolation work � sawing and selective removals to separate the electrical room, control room, and station roof associated with the entry section
• Demolition of the turbine deck and turbine/generator pedestals
• Demolition of station building
• Haul off of resulting debris and cleanup of area
• Erect temporary edge protection as required by OSHA

This item will be broken into three segments: Segment 1 � Isolate utilities, remove lead paint, and install bracing. Segment 2 � Isolate entry section from Magnolia 1 & 2 powerhouse and demolish the powerhouse. Segment 3 � Install new electrical service for the entry section and transfer the load to the new service. At the completion of this work, the site will be left in a broom clean condition.

Note that the contact price has been adjusted by adding $9,192 to cover the cost of requiring Cleveland Wrecking to obtain a payment bond. This requirement had been omitted by SCPPA during its bid process. This brings the total cost of the demolition work to be performed by Cleveland Wrecking to $775,192.

Major components of the Magnolia Station Unit 3 & 4 project are as follows:

• Abate or remove asbestos
• Install scaffolding as required for abatement of asbestos and removal of ducting
• Pre-cut ducting to enable crane lifting
• Remove ducting in large section, and remove other equipment near to grade
• Cut and dispose of ducting scrap
• Remove loose and flaking lead-based paint on structural iron
• Clean-up general area.

This item will be broken into three segments: Segment 1 � Scaffold and remove asbestos containing materials. Segment 2 � Pre-cut and remove ducting. Segment 3 � Abate lead based paints. At completion the site will be left in broom clean condition.

SCPPA has agreed to reimburse Burbank for its payments made to contractors and vendors who supply the equipment and perform this work, as well as the efforts of BWP required to manage this work. There is no unfavorable fiscal impact upon Burbank regarding this action.

Staff recommends that the City Council approve the Professional Services Agreements with Cleveland Wrecking Company and Industrial Hygiene Management, and further that it authorize the General Manager of BWP to execute the agreements and the City Clerk to attest.

If the Council concurs, the appropriate action would be a motion adopting the following resolution:

A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING RESOLUTION NO. 26,377 RELATIVE TO RECEIPT AND EXPENDITURE OF FUNDS FROM THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY FOR MAGNOLIA POWER PROJECT SITE PREPARATION ACTIVITIES; AND APPROVING AND AUTHORIZING THE EXECUTION OF: (1) A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF BURBANK AND CLEVELAND WRECKING COMPANY FOR DEMOLITION AND DISPOSAL OF THE MAGNOLIA 1 & 2 BUILDING SUPERSTRUCTURE AND THE MAGNOLIA 3 & 4 DUCTWORK; AND (2) A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF BURBANK AND INDUSTRIAL HYGIENE MANAGEMENT FOR SERVICES RELATED TO SAID DEMOLITION WORK.

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