CC Minutes - 05/22/02 Work Session

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Ms. Bettman suggested that the lease costs prepared by staff were inflated. Recalling that the difference between the costs of an office space and the lab space were estimated by staff to be approximately $175,000, she suggested that the City purchase an office building and invest $175,000 in improvements. The building could be sold once it had filled its purpose. The remainder of the reserves could be held to offset the eventual cost of bond levy going to the voters for a downtown police station. She said that if the City saved money for that use, it would be leverage for getting a measure passed. Ms. Bettman suggested alternatively, the City could buy a parcel of land and install modular units on it. Ms. Bettman said that for the April 25, 2001, work session on the same item, the council agenda item summary indicated that locating the facility on City-owned property would require additional property acquisition. She asked what happened to the idea that the City would save money by using the site because it already owned the property. She also asked the status of the disposal of several City properties. Regarding Ms. Bettman's statement the facility was for a temporary use, Mr. Carlson reiterated that staff was proposing to use the structure in the future for Special Operations, which was a specific facility identified in the Downtown Space Plan. Mr. Svendsen clarified that the $175,000 referred to by Ms. Bettman was the incremental cost of constructing a new office building and accommodating the lab. There would be retrofit costs for an existing space. There were similar conversion issues with modular units. Regarding the status of City-owned property to be disposed, Mr. Svendsen indicated that Lane Transit District had expressed interest in Fire Station 6 on Coburg Road. The City was still working to clear some old railroad easements on Fire Station 4, and was ready to proceed with disposal of Fire Station 2. There were several land use issues related to the Kaufman Annex because the two properties were developed under a conditional use permit as a senior center, and the new code required housing replacement in the remaining center if the annex was to be sold. He said that disposal of the Lincoln Yards was dependent on the eventual move of Special Operations. Peter Roberts of RCS Associates, Inc., said that he reviewed the lease costs and did not consider them inflated. He said that the issue was how the space had been programmed. He had interviewed City staff extensively to determine the programming that had been done, and it appeared to him that an thorough effort had gone into the programming, with considerable involvement from the end users of the facility and outside professionals. Mr. Roberts said that what he saw in terms of costs was commensurate with his experience and the market. The differences between the standard office costs and lab costs in the lease proposal took into account the additional HVAC requirements and requirements for mill work, which can dramatically drive up the costs. Regarding modular units, Mr. Roberts said that they were very expensive, particularly in Oregon, because of the State codes governing modular units. In addition, the market was not competitive and the wait for units could be long. He did not think the use of modular units would be a cost-effective solution. Mr. Pap8 determined from Mr. Carlson that there was one months' difference in the time line for the lease approach versus build approach. He further determined from Mr. Carlson that the proceeds of the sales of City property would be placed in the Facilities Reserve Fund. He expressed hope that the City would be able to put funds aside in the future to address other public safety-related deficits the organization faced. MINUTES--Eugene City Council May 22, 2002 Page 7 Work Session