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Council updates: $2.67 million Rule 20 award for underground utilities, hospital demolition underway; library expansion moves forward

2651543 · February 13, 2025
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Summary

Councilmembers reported a $2.67 million Rule 20 award for burying overhead utilities tied to the Lake Street reconstruction, an ongoing old hospital demolition with receivership activity, and progress on a library expansion including NEPA work and design options.

City council and staff provided multiple project updates, including a Rule 20 award to bury overhead utilities on part of the Lake Street reconstruction, progress on an old hospital demolition and receivership process, and advancing plans for a library expansion.

Councilmember Todd reported the city was awarded about $2,670,000 in Rule 20 funds from the county to bury utility infrastructure. He said the city will need to form a public utility district, pass a resolution and hold a public hearing as part of the required steps before work proceeds. Todd said the undergrounding effort ties to the Lake Street reconstruction so that when the roadway work is complete, new lines will go underground rather than overhead.

Todd also told the council that demolition of the old hospital began on the 20th and is proceeding. He said staff hopes the site will be deemed clean within the month so the Bay Area Receivership Group can start its receivership process and solicit qualified developers; he noted the receivership group will prioritize qualified proposals rather than the highest bidder.

On environmental restoration, Todd said the daylighting of Castle Creek remains pending until Tom Hesseldens completes a cost estimate and a list of grant sources; an ad hoc committee will reconvene in early February.

Staff reported momentum on library expansion planning. The council has direction to have a Berkeley architectural firm produce near‑complete design drawings suitable to use in an RFP for a general contractor. Nolan Tam and staff are updating earlier NEPA documents and have submitted a new footprint for a categorical exclusion request. Council members discussed whether to pay for fully engineered construction drawings now or to proceed to 100% design and rely on a qualified general contractor to finalize construction disciplines to control costs.

Councilmember Jeff Mitchell and staff are also working with departments to cost out services and develop a revised master fee schedule to improve cost recovery; that process will return to council for public hearing once staff brings final recommendations.

No formal council action was taken on these project updates during the meeting.