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HomeMy WebLinkAboutItem C: Use of Facility Reserve-Next Steps on Police Patrol Facility ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Use of Facility Reserve - Next Steps on Police Patrol Facility Meeting Date: February 9, 2009 Agenda Item Number: C Department: Central Services Staff Contact: Mike Penwell www.eugene-or.gov Contact Telephone Number: 682-5547 ISSUE STATEMENT The purpose of this work session is to establish policy direction for using a portion of the Facility Reserve for the design and construction of a Police Patrol Facility as the next step in addressing the deficiencies of the existing Eugene City Hall. BACKGROUND 2009 marks ten years that the council has actively addressed the issue of expansion or replace- ment of the Eugene City Hall. In 1999, the Council Committee on City Hall Alternatives was formed to consider—and ultimately reject—the possibility of selling City Hall to the Federal government as a site for the new Federal Courthouse. In 2001, council adopted a policy state- ment that called for the replacement of City Hall with one or more new buildings by 2010. At that same time, council also adopted a policy to reduce the level of reinvestment in City Hall and the Public Works Building, assuming an expected 8 to 10 years of remaining use. A number of projects have been undertaken as part of the Downtown Space Plan to achieve the goal of replacing City Hall: ? Prior to the official start of the Downtown Space Plan, the 9-1-1 Center was relocated from City Hall to a new building at the 2nd and Chambers Emergency Services Complex. ? In September 2001, the council directed that relocation of EPD personnel from the basement of City Hall and relocation of Fire Station #1 should be the first priority projects in the Downtown Space Plan. ? The new Police property and forensics building was completed in 2004. ? The new Downtown Fire Station, which was funded with General Obligation bonds approved by voters in May of 2002, was occupied in 2005. The construction of a new Police Building and City Hall were the next project priorities, with design for the Police Building originally projected to begin in FY05, and a replacement of City Hall targeted to begin design in FY08. See Attachment A for the history of council action on the Downtown Space Plan. Also in 2001, the Facility Reserve was created as a mechanism for partially funding the goals of the Downtown Space Plan. See Attachment C for a history of the Facility Reserve including major deposits into and major expenditures from this reserve fund. Z:\CMO\2009 Council Agendas\M090209\S090209C.doc In February 2005, the council established eight strategic priorities for the community, one of which was to “conclude the discussion on the City Hall/Police Building.” Subsequently, on May 25, 2005, the council approved the City Hall Complex Action Plan which identified the major policy issues to be addressed, the overall description of project phasing, the nature of work to be accomplished, resource needs and proposed project outcomes. The first three phases of this action plan became the City Hall Complex Master Plan, a planning process that spanned 2½ years and produced various policy directions from the council as well as specific next step recommendations from the City Hall Complex design team. See Attachment B for the history of council action on the City Hall Complex Master Plan. Also visit the project website, http://www.eugenecityhall.com/, for detailed information related to the City Hall Com- plex Master Plan including: ? Phase 1 Report (http://www.eugenecityhall.com/pdf/ECH_phase_one_report.pdf) ? Phase 2 Report Executive Summary (http://www.eugenecityhall.com/pdf/ech_phase_two_Executive_summary.pdf) ? Phase 3 Report Executive Summary (http://www.eugenecityhall.com/pdf/ech_phase_3_Executive_summary.pdf) The master plan resulted in a vision for a new City Hall reflective of the values and priorities of Eugene, and a flexible design that allows for incrementally moving forward when the City is ready and funding is available. In the meantime, the number one recommendation from the City Hall Complex design team was to build the Police Patrol Facility, completing the relocation of all primary emergency response functions out of City Hall and into Essential Facility structures. At the October 17, 2007, council work session, the direction was to proceed with development of a Patrol Facility concept design for a portion of the existing LTD RideSource site on Garfield Street and continue to explore the acquisition of potential sites in the immediate area. This site preference recognized certain operational efficiencies that could be realized by locating the Patrol Facility close to the gas pumps at Fleet Maintenance and close to the Police Services Building where the Forensics Evidence and Property Control Units are located. Since that time, certain advantages have been identified with locating the Patrol Facility in or near downtown including the potential for better response to downtown public safety issues, better support for downtown development by the addition of a newly constructed building, and better connection between the Police Patrol Division and the rest of the Police Department in City Hall. Several potential sites were identified during the City Hall Complex Master Plan process that could be analyzed further to determine the most suitable site for a Police Patrol Facility. This analysis could be accomplished using a portion of the fund balance remaining from the City Hall Complex Master Plan project with the results brought back to the council at a later date. The Police Patrol Facility is also listed as a placeholder project for $20 million in the 2010-2015 Capital Improvement Program draft approved by the Budget Committee on January 28, 2009, with capital funding estimated to occur in 2012. The cost estimate represents a total project cost including construction costs, soft costs, site acquisition costs, and construction cost escalation. The cost estimate was based on work done by the City Hall Complex design team in 2008. Since that time, construction costs have dropped somewhat reflecting both a reduction in material costs Z:\CMO\2009 Council Agendas\M090209\S090209C.doc and a more competitive bidding environment. By using a City-owned site (thus eliminating site acquisition costs), reducing contingencies, and eliminating two years of cost escalation, it may be possible to reduce the cost of the Patrol Facility to approximately $16 million. Moving forward with the project now would result in savings for the City compared to waiting until 2012, and it would pump millions of dollars into the local economy over the next 18-24 months while sup- porting the council goal of contributing to downtown development. The incremental cost for ongoing operations and maintenance for the Police Patrol Facility in the General Fund was estimated in the CIP at $235,000 annually beginning in 2013. Moving ahead with design and construction now would require funding for operations and maintenance to begin in the second half of FY11 or the start of FY12. Funding for the Police Patrol Facility Funding for a new Police Patrol Facility could come from the Facility Reserve, which was origi- nally created to fund projects related to City Hall, with the intention of reducing the amount asked from voters to pay for a portion of the projects. The Facility Reserve is expected to have a balance of about $22 million in FY10, after taking into account a $1 million transfer for street operations and maintenance projects as directed by the Budget Committee last year. Funds remaining in the Facility Reserve could be retained for future improvements to space for Municipal Court, emergency and necessary repairs to City Hall in keeping with the council’s 2001 policy, and related uses supporting the City Hall Master Plan. Specific appropriations for use of the remainder of the Facility Reserve will be brought to the council and the Budget Committee as future decisions are made on these topics. During the FY09 budget process, the Budget Committee adopted recommendations to the coun- cil for potential alternate uses for the Facility Reserve. The Budget Committee recommenda- tions, included in Attachment D, diverged from previous council direction to minimize reinvest- ment in the existing City Hall and maintain the Facility Reserve for the purpose of funding Downtown Space Plan (i.e., City Hall Complex Master Plan) projects. The council did not take any action on the Budget Committee recommendations. The staff recommendation is that the council continue with the previous direction given as a result of the City Hall Complex Master Plan discussions. RELATED CITY POLICIES The City Hall Complex Master Plan relates to the council values of effective, accountable municipal government; a safe community; and sustainable development. The council identified a continuing goal in 2007 to adopt an implementation plan for a parallel process for the con- struction of a new City Hall and police facility. The approved City Hall Complex Action Plan identifies key issues that must be addressed as work toward the goal progresses. COUNCIL OPTIONS 1.The council can choose to include an appropriation of $16 million from the Facility Reserve in the FY10 budget to fund the design and construction of a new Police Patrol Facility. The council can also direct that existing City Hall Complex Master Plan funds be used for Z:\CMO\2009 Council Agendas\M090209\S090209C.doc analysis of potential sites in or near downtown to determine the most suitable site for the patrol facility. 2.The council can choose to direct other actions with regard to the Police Patrol Facility or to prioritize other uses for the Facility Reserve. CITY MANAGER’S RECOMMENDATION The City Manager recommends option 1, including an appropriation of $16 million from the Facility Reserve in the FY10 budget to fund the design and construction of a new Police Patrol Facility as the next step in addressing the deficiencies of the existing Eugene City Hall. The City Manager also recommends using already appropriated and unspent City Hall Complex Master Plan funds for analysis of potential sites in or near downtown to determine the most suitable site for the Patrol Facility. SUGGESTED MOTIONS A.Move to direct the City Manager to include an appropriation of $16 million from the Facility Reserve in the FY10 budget to fund the design and construction of a Police Patrol Facility. B.Move to direct the City Manager to use already appropriated and unspent City Hall Complex Master Plan funds to complete an analysis of potential sites in or near downtown to deter- mine the most suitable site for the Patrol Facility and return to the council with a final recom- mendation on location for the Police Patrol Facility. ATTACHMENTS A. Council Action History on Downtown Space Plan B. Council Action History on City Hall Complex Master Plan C. Facility Reserve History D. FY09 Budget Committee Recommendations for the Facility Reserve FOR MORE INFORMATION Staff Contact: Mike Penwell, Facility Management Division Manager (AIC) Telephone: 682-5547 Staff E-Mail: michael.j.penwell@ci.eugene.or.us Z:\CMO\2009 Council Agendas\M090209\S090209C.doc ATTACHMENT A COUNCIL ACTION HISTORY ON DOWNTOWN SPACE PLAN On April 11, 2001, council was presented with the concept of developing a long-range plan for re- placing downtown office space. The plan included both potential short-term and long-term actions. Council directed staff to research a variety of ways to procure City buildings, including design- build, and report back to council before the planning phase begins for the next new City building. On April 25, 2001, council was offered several potential short-term actions to create a safer, more efficient environment for staff located in City Hall. Council directed the City Manager to (i) develop programming, space needs, and site requirements for relocating certain police functions; (ii) develop a long-term master plan for future use of the property in Roosevelt Yards by the Police and Public Works Departments and a financial plan for implementation, including consideration of redevelopment options for more efficient land use; (iii) dedicate the proceeds from the sale of four surplus properties to the Facility Replacement Reserve; and (iv) identify and recommend an appro- priate downtown site for purchase for Fire Station #1, with a report back to council with final site selection prior to purchase. On May 16, 2001, council directed the City Manager to develop a financial strategy and implemen- tation plan for replacing City Hall and other downtown City office space with new buildings. The council’s direction included: consideration of possible joint development with other agencies; th consolidation; locations along 8 Avenue from Oak Street to the river as well as possible sites for joint development with other agencies; and, potential for use of some of the warehouse and historic structures east of Mill. The 2001-2002 Council Goals included an action priority to “Develop a strategy and implementa- tion plan for City downtown office and public safety facilities.” One of the three work items was to adopt a policy framework for long range plans to help guide decisions on reinvestment in existing City buildings downtown. A policy for the maintenance and preservation of City Hall and the Public Works Building was presented to council on July 5, 2001. This policy reduced the level of reinvestment to provide for an expected 8 to 10 years of continued use. On September 19, 2001, council addressed near-term and long-term projects by directing that relocation of Special Operations and EPD personnel in the basement of City Hall, and relocation of Fire Station #1 should be the first priority of projects in the Downtown Space Plan. Construction of a new Police Services building and City Hall were the next projects, with design for the Police Services building projected to begin in FY05, and a replacement of City Hall was targeted to begin design in FY08. The September 19, 2001 council item on the Downtown Space Plan included a description of internal and external funding sources to implement the eventual replacement of City Hall with new buildings. Council approved the staff recommendation that the projected funding gap be met with a combination of the dedication of additional General Fund resources and General Obligation Bonds. One of the proposed internal mechanisms, the payment of market based “rent” by services that would be located in new downtown buildings, was the topic of a work session on November 26, 2001. The “market rent” concept was incorporated as an on-going City practice beginning in the adopted FY03 Budget. On February 25, 2002, council approved a resolution to fund the construction of the new Fire Station #1 through General Obligation Bonds, with City resources funding non-bond eligible capital costs. At a May 22, 2002, work session, council approved the location of the Roosevelt Police Facility, a financing plan over two fiscal years using City resources from the Facility Reserve, and the use of a Construction Manager/General Contractor (CM/GC) form of construction management. Council adopted funding for the Roosevelt Police Facility on FY02 SB #3 and on FY03 SB #1. On October 29, 2003, council held a work session on the Downtown Space Plan, focusing specif- ically on the need for a new Police services building. Council directed staff to bring recommenda- tions back on the preliminary planning, cost and financing of a new Police Services building. Several councilors asked for more information on how a new Police building would fit with future plans to replace City Hall, and for development of a more general “civic center” concept. On November 17, 2003, staff presented the Multi-Year Financial Plan to the Budget Committee. This plan identified both the capital and operating needs for the entire organization over a six-year period. The police building was listed as a high priority need in the MYFP, and replacement of City Hall was also included as a future project. On November 19, 2003, council held a work session on sequencing of financial measures to be presented to the voters. The staff materials indicated that a bond measure for a police building would be the next potential item to be presented to voters in November 2004. Council discussed the materials, but did not provide any direction or make any decisions at the work session. On February 25, 2004, council held an informational work session on the Civic Center Design Charrette and the Mayor’s Civic Facilities Visioning Committee. On April 28, 2004, a work session was held to update council on the Mayor’s Civic Facilities Visioning Committee and on financing plan options, borrowing methods and construction methods that could be applied to a new police facility. On June 16, 2004, council reviewed the report of the Mayor’s committee and asked that a public hearing be held on the proposed policy principles that would guide future Civic Center development. A public information session was held on July 8 and the public hearing on July 12. On July 14, 2004, council held a work session on the Civic Facilities Visioning Committee Report and adopted a revised set of Civic Center policy principles. They also determined that a City Hall th and Police Building would be located on City-owned property on 8 Avenue. On July 21, 2004, council continued discussion of a potential bond measure for the November 2004 ballot. The council directed the City Manager to develop a resolution to place a measure on the ballot based on an option that would combine near-term space needs with modest Civic Center amenities. On July 26, 2004 council placed a $6.79 million bond measure on the November 2004 ballot. The measure was to fund social service agency space, police expansion space, improve- th ments to the parks blocks, and improvements to make 8 Avenue a “Civic Street”. On November 2, 2004, voters rejected ballot measure 20-88 by a margin of 60% to 40%. On November 22, council approved the transfer of $15.4 million into the Facility Replacement Reserve and agreed, in concept, to move forward with a master planning and public participation process for the purpose of informing future decisions related to City Hall and/or a Public Safety Building. On SB#1 on December 8, council approved the budget actions to make these transfers. ATTACHMENT B City Hall Complex Master Plan Council Action History Council Actions On May 25, 2005, the council approved the City Hall/Police Building Action Plan (subsequently renamed the City Hall Complex Action Plan) which identifies the major policy issues to be addressed, the overall description of project phasing, the nature of work to be accomplished, resource needs and proposed project outcomes associated with the City Hall Complex Master Plan. On October 19, 2005, a consultant team led by Thomas Hacker Architects facilitated a council workshop for the purpose of identifying and providing direction on policy issues relevant to the City Hall Complex. Based on pre-workshop interviews with the mayor and council, six project values were presented by the consultant team to which three additional project values were pro- posed by council members during the workshop. In addition, eight key issues and five sub- issues emerged from pre-workshop interviews with the mayor and council, and were presented during the workshop. At the November 23, 2005 work session, the council adopted the following project values to serve as a basis for future decision making: 1.Exercise fiscal responsibility 2.Produce government efficiency 3.Be user-friendly 4.Embody environmental stewardship 5.Enhance downtown 6.Inspire civic pride 7.Maximize use of City Hall public spaces by the public and access to government and its representatives 8.Strive for simplicity 9.Plan for the future In addition, position statements on the four issues with the highest degree of consensus were adopted as follows: 1.Incorporate meaningful sustainable design goals. 2.Utilize a long-term planning horizon of 25 years. 3.Consolidate City services to the greatest practical extent. 4.Develop the project in consideration of the Downtown Plan while not limiting location th choices to 8 Avenue. At the December 14, 2005 work session, the council directed the City Manager to proceed with phase 2—the Development Plan Phase—of the City Hall Complex Action Plan for $1,135,000. This phase includes the technical work and public input required to generate an overall develop- ment plan for the City Hall Complex. This phase will also resolve the remaining policy issues from phase 1 and result in a concept plan for the City Hall Complex. On March 8, 2006, the consultant team facilitated a council workshop marking the beginning of the Development Plan Phase of this project. The purpose of the workshop was to discuss pre- liminary space needs assumptions, facility implications relative to police service delivery options, proposed site evaluation criteria, and emerging issues from citizen interviews, as well as to preview the first Community Forum. Results from this workshop provided the basis for the Forum. At the April 26, 2006 work session, the council adopted three different Police consolidation options for use in ongoing planning efforts related to the City Hall Complex: Option B that con- solidates all Police functions with the rest of City Hall on a single site; Option C that consoli- dates all Police functions except patrol with the rest of City Hall and provides for a separate patrol facility nearby; and Option D that consolidates all Police functions except patrol with the rest of City Hall and provides for a separate patrol facility in a more remote location outside the downtown area. On May 10, 2006, the consultant team facilitated a council workshop that introduced the City Hall Space Requirements Program, presented Renovate, Hybrid, and New options for City Hall, and previewed the second Community Forum which took place on May 25, 2006. Results from this workshop provided the basis for the Forum. At the July 19, 2006 work session, the council adopted new construction as the preferred option for future planning and design of the City Hall Complex rather than renovating the existing city hall building or doing a hybrid of renovation and new construction. This action reflected a majority of support at the Community Forum for construction of a new City Hall. On August 9, 2006, the consultant team facilitated a council workshop to discuss and refine the site evaluation criteria for potential sites related to a new City Hall Complex and then apply the criteria to specific sites. The consultant team also received direction from the council on elicit- ing public input during the third Community Forum held on August 24, 2006. Results from this workshop provided the basis for the Forum. At the September 20, 2006 work session, the narrowed down to two the number of sites to be carried forward for use in developing concept designs for a new City Hall. The two sites selected were the existing City Hall site and the Butterfly Lot/Rock N Rodeo sites. This action reflected a majority of support for these two sites at the Community Forum, while also acknowl- edging that a third preferred site—the former Sears—might be a viable site if development plans for that site do not move forward. On October 18, 2006, the consultant team facilitated a council workshop to introduce to the council principles of architectural design and urban planning that will guide the concept design options for City Hall, discuss factors that will influence decisions about police consolidation and site, and preview the fourth and final community forum. Results from the workshop provided the basis for the Forum. At the November 20, 2006 work session, the council voted to proceed with planning for a new city hall with police patrol in a separate facility. Then at the December 11, 2006 work session, the council selected the Butterfly Lot/Rock N Rodeo site for use in schematic design and other planning for a new city hall. This marked the completion of Phase 2, the Development Plan Phase, of the City Hall Complex Master Plan. Both of these council actions reflected the major- ity opinion from the Community Forum. At the February 14, 2007 work session, the council requested the Design Team to perform statistical public opinion research to inform future work. The research was intended to understand what elements of a new city hall mattered most to voters and test the initial level of voter support. At the June 20, 2007 workshop, the Project Team introduced public opinion research, consolidation options, and a conceptual scope of work for the remainder of the Implementation Plan Phase. At that time the council requested additional information on the costs of the police patrol facility, escalated relocation and leasing costs, comparison costs for leasing and purchasing space in the Federal Building, potential City Hall sites other than the existing City Hall and the Rock N’ Rodeo/Butterfly sites, deed restrictions related to the Butterfly Lot site, and costs for the remaining Implementation Plan Phase scope of work. At the July 20, 2007 work session, the council decided to continue master planning efforts for a new City Hall. At the September 26, 2007 workshop, the project team introduced the Police Patrol Facility site selection analysis, City Hall design progress showing concept options with and without patrol functions, and cost models for police patrol facilities on generic sites downtown, out of down- town, and at a new City Hall. Council requested additional information on site ownership, availability, and owners’ willingness to sell. At the October 17, 2007 work session the council voted to proceed with development of a Police Patrol Facility concept design for site E, a portion of Land Transit District’s RideSource site, lo- nd cated near the intersection of Garfield Street and West 2 Avenue. The council also voted to continue to explore acquisition of sites E and F. The council will receive an update on the status of acquisition efforts at the December 12 workshop. At the November 28, 2007 work session, council voted to proceed with planning for a City Hall/Police Patrol Facility based tentatively on a 2010 ballot measure. At the December 12, 2007 workshop the council reviewed multiple options on City Hall concept designs and provided feedback that shaped the development of a single concept design. The council also reviewed Police Patrol Facility plans and costs and requested more refined cost analysis. ATTACHMENT C FACILITY RESERVE HISTORY The Facility Reserve was created in FY01 as a way for the organization to save for the City Hall Complex master plan projects. The intention was that the organization could reduce the amount asked from voters to pay for the City Hall projects by saving money in the Facility Reserve. Overall, the amount in the Facility Reserve in FY10 is estimated to be $23 million, with $1 million of that total dedicated towards the second year of pothole patching. Below are brief descriptions of some of the major revenues and expenditures transactions that have occurred in the Facility Reserve since its creation in FY01. Major Deposits into the Facility Reserve Excess EWEB Wholesale CILT: During FY01, $7.3 million was earned from one-time CILT payments on wholesale electric sales to California. These funds were deposited into the Facility Reserve during FY01and FY02. Settlement of Telecommunications Lawsuits: In FY05, the City deposited $15.4 million into the Facility Reserve from the General Fund and the Telecommunications Fund. The revenues were a result of additional licenses and permits from Qwest and other telecom providers. Assessment Bond Fund Residual Assets: In FY03, council reviewed the residual assets contained in the assessment bond fund reserves and determined how to use the excess funds. At that time, $2.3 million of the residual assets were deposited into the Facility Reserve to be used for City Hall complex master plan projects. Capitalization Component of Facilities Charge: During FY02, a new component was added to the Facilities Charge for certain downtown facilities. This charge was developed as a way to systematically set aside funds for a new City Hall. Both General Fund and Non-General Fund services have contributed to the Facility Reserve through Facility Capitalization Charges. In FY09, the charge for all funds is about $900,000. Other Miscellaneous Revenues: The City deposited other one-time funds into the Facility Reserve from time to time. Examples are proceeds from sale of the Olive Street parking lot ($350,000), the library asbestos settlement ($227,000), and return of excess budget for Library construction project ($100,000). Major Expenditures from the Facility Reserve Roosevelt Police Building: In FY02 and FY03, $3.9 million was transferred from the Facility Reserve to pay for construction of the Forensic Evidence Unit/Property Control Unit facility at Roosevelt, which allowed police to discontinue using the basement space at City Hall as regular working areas. City Hall Master Plan: Council dedicated approximately $3 million to the City Hall Master Plan from the Facility Reserve in fiscal years 2006 through 2009. Lane County Revenue Swap: In FY09, $4.5 million was transferred to Lane County, so that the funds could be used to pay for jail beds, prosecution services and other high-priority services. In return, the County sent $4.5 million from their Road Fund to the City to pay for road maintenance, repair and construction. Transportation Utility Fund Transfer: In FY09, the City transferred $1 million from the Facility Reserve to the Transportation Utility Fund to pay for street maintenance, including pothole patching. The City also expects to make a similar transfer in the FY10 budget. Fire Station #1 Costs: As part of the financing plan for construction of a new Fire Station #1, $270,000 was transferred out of the Facility Reserve in FY03 to pay for furnishings, fixtures and equipment (FF&E). The bulk of the fire station was built with General Obligation bond funds approved by voters, but the FF&E costs are not eligible for General Obligation Bond funding. General Fund Budget Gap: In FY04, $900,000 was transferred from the Facility Reserve to fill a budget gap in the General Fund. Other Miscellaneous Expenditures : Facility Reserve contributions were also used to pay for the LRCS Master Plan ($130,000), the EPD PERF Study ($35,000), and homeless prevention services ($150,000). ATTACHMENT D FY09 BUDGET COMMITTEE MOTIONS 1.Allocate up to $25 million of the Facility Reserve to upgrade, rehab, and maintain City Hall for the purpose of extending its useful life at least 15 years. 2.Should Council decide not to proceed with a new City Hall after other Budget Committee action regarding the Facility Reserve, transfer the balance of the Facility Reserve, or up to $8 million, into a fund or trust that shall be managed for the sole purpose of incrementally increasing Patrol FTE's over the next 10 years. Use the principal and earnings over 10 years to optimize Patrol FTE’s so that after 10 years the balance of the fund is zero. 3.Direct staff to investigate the possibility of directing up to $3 million of reserves to the business loan program for a one-time transfer to be reimbursed after 5 years with interest less administrative cost and, if the staff and Council feels that this is a good use of the money, bring it back to Council in a supplemental budget or the FY10 budget.