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The replacement of City Hall has been the next project priority. In July 2007, the council directed that the existing site be used for the construction of a new City Hall. Since that time, the council has made a couple of other key decisions to address space issues at City Hall. Specifically, on July 29, 2009, the council authorized the City Manager to:  Negotiate and sign a Purchase and Sale Agreement for the acquisition, design, and construction and move-in of police services at the 300 Country Club site. The City Manager completed this negotiation and purchase in June 2010.  Plan for a future work session with the council to address moving remaining non-police services out of City Hall. Because the Police Department was the most difficult piece of the City Hall puzzle to solve, and because EPD occupies over half the useable area in the building, relocating all police functions to the Country Club Road facility makes it much easier to plan for relocating the remaining functions from City Hall either temporarily or on a longer-term basis. Simultaneously, there are opportunities to partner with new downtown development projects (as in the City’s commitment to lease space in the Bennett building on Willamette Street) and to benefit from vacant office space downtown. This provides for a variety of potential options for planning and phasing of a new City Hall. Although the council previously decided that a new City Hall should be built on the existing site, the council also subsequently expressed interest in considering the current EWEB Headquarters as the new location for City Hall. In May 2009, the council directed staff to send a letter to EWEB to notify them that City officials wish to have first right of refusal for this site if EWEB decides to sell. To date the City has not received any notification from EWEB regarding their intent to sell the facility. In September 2010, the council directed that City staff work with EWEB staff to evaluate the feasibility of relocating City Hall functions to the EWEB headquarters property. EWEB and City staff met four times—including a tour of the site—and shared information on space needs and functional requirements. In considering the viability of this site, staff evaluated the physical layout of the buildings, costs to address building deficiencies and necessary tenant improvements, public accessibility to the facility, and proximity to other City facilities. A summary analysis is included as Attachment A and a summary construction cost estimate as Attachment B. The cost for acquiring and renovating the EWEB headquarters site to accommodate City Hall functions is estimated to be at least $30 million. Resources and Timing The functional, structural, and safety issues at City Hall have been well-documented over the past dozen years. In addition to the seismic vulnerability and deteriorating state of the facility, the approaching deadline for termination of EWEB steam heat requires the development of a short-term plan and timeline to address these problems. The City could have approximately $8 - 10 million available in one-time resources to accommodate relocation of services currently located at City Hall and building the first phase of a new City Hall. Staff has begun preliminary planning to vacate City Hall and relocate in temporary space until a permanent City Hall solution is approved and built. This would address safety and cost concerns \\Cesrv500\cc support\CMO\2011 Council Agendas\M110316\S110316A.doc