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HomeMy WebLinkAboutItem A: Next Steps on Facility Reserve ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Next Steps on Facility Reserve Meeting Date: April 22, 2009 Agenda Item Number: A 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 acquisition of a Police Facility, and to establish policy direction for next steps in addressing the deficiencies of the existing Eugene City Hall. BACKGROUND At the February 11, 2009, work session, the council unanimously passed a four-part motion seeking additional analysis and information related to a potential Police Facility and next steps on City Hall. Following is a recap of each of the four council directives followed by a summary of the information subsequently gathered by staff. See Attachment A for a summary of project costs related to City Hall upgrades and Police Facility options on City-owned sites. 1.Develop a conceptual plan and estimate for (a) making seismic upgrades to City Hall to meet the life safety standard, and (b) expanding Municipal Court’s space to meet the court’s needs a.Several options were studied as possible upgrade strategies including steel-braced frames, concrete shear walls, steel moment frames, and energy dissipating damping devices. Concrete shear walls appeared to be the most appropriate solution because they are cost- effective, they would be compatible with the existing concrete materials and construction at City Hall, and they have excellent strength and stiffness properties proportional to their length. See Attachment B for a more complete conceptual seismic upgrade narrative. The estimated total project cost for a seismic upgrade to meet the life safety standard at City Hall is approximately $6.0 million. b.An expansion of Municipal Court space to meet its short-term needs (approximately five years) could be accomplished by moving Human Resources to a new location and remodeling the vacated space to create a third courtroom and adjacent attorney/client meeting rooms. The existing conference room could be utilized as an additional jury room when needed. The estimated total project cost for such a remodel is approximately $1 million, not including relocation costs associated with moving Human Resources. 2.Complete an analysis of potential sites owned by the City but limited to downtown, to determine the most suitable site for a Police Facility and return to the council with a final recommendation on that location th The analysis of potential sites was limited to the half-block south of City Hall across 8 Avenue, and the former Agripac cannery site to the east of the Federal Courthouse. Z:\CMO\2009 Council Agendas\M090422\S090422A.doc Although the cannery site is actually owned by the Urban Renewal Agency, it was considered essentially a City-owned site for purposes of this analysis since the council has decision-making authority over the site acting as the board of the URA. The only other City- owned downtown site potentially suitable for a Police Facility is the former Sears site. But since this site is part of an active development proposal, it was not included for analysis with the other two sites. As shown on the diagrams in Attachment C, a phased Police Facility could be accommodated on both the south of City Hall site and the cannery site. The south of City Hall site has the advantage of being closer to City Hall while the cannery site has the advantage of being a larger site which offers more flexibility in layout and better vehicular access to surrounding streets. A Police Facility on the cannery site would probably be less disruptive to adjacent uses than on the south of City Hall site. 3.Develop a cost estimate for a phased Police Facility, rather than a Patrol Facility, with the first phase consisting of space for the patrol function – but designed so that it can be expanded into a building for the entire police department The estimated total project costs for a phased Police Facility are very similar for both the south of City Hall site and the cannery site, and the Phase 1 costs for patrol are consistent with previous estimates presented to the council. The estimated Phase 1 project costs range from approximately $15.8 million for the cannery site to approximately $17.0 million for the south of City Hall site. The Phase 2 expansion costs to accommodate the rest of the police functions from City Hall range from an estimated project cost of $17.3 million for the south of City Hall site to $18.7 million for the cannery site. The estimated total project cost for the completed Police Facility in today’s dollars is a little under $34.5 million at either site. The actual cost would likely be much higher factoring in construction cost escalation between the construction of the two project phases. 4.Investigate the willingness of EWEB to eventually sell its administration building to the City for use as a city hall, and if there is such a willingness, undertake and bring back to council a preliminary analysis of the pros and cons of using that building for city hall EWEB’s current position can be characterized as being willing to sell their administration building and associated parking for fair market value. Staff has a significant degree of interest in the potential opportunity of the EWEB facility as a future city hall, and will continue to be in ongoing dialogue with EWEB about the long-term financial and operational possibilities inherent in this site. The EWEB facility would not be available for 5-7 years. Given this time horizon, staff believes it is in the community’s best interests for EWEB to continue the current master planning process so that all parties will have a clear and full understanding of the property’s potential. Consolidated Police Facility Option Subsequent to the February 11, work session, City staff were contacted about an available property located at 300 Country Club Road with potential suitability as a consolidated Police Facility. Further investigation revealed that the property consists of a 66,000 square foot two- story building with 70-75 secure covered parking spaces below and over 250 on-grade parking Z:\CMO\2009 Council Agendas\M090422\S090422A.doc spaces, all situated on a four-acre site. The property meets current space and parking requirements for all police functions currently housed at City Hall and has future expansion capabilities that would allow at least a doubling of current building area under existing planning and zoning regulations. The building was constructed in 1982 to house Pacific Northwest Bell, the precursor to what is now Qwest. Because the building was designed to accommodate an emergency call center, it was built to a higher seismic standard than was required by code at the time. A recent seismic analysis performed by a licensed structural engineer determined that the building can be upgraded to meet essential facility seismic requirements for approximately $500,000 in total project costs. In addition, the building has a largely open floor plan with a multi-zone variable air volume HVAC system making it relatively easy to remodel for use as a Police Facility. Acquisition of the property plus remodeling and seismic upgrades to meet police requirements is estimated to not exceed $16 million in total project costs. Facility Reserve funds could be used for this purpose. Based on current costs at City Hall, ongoing annual operations, maintenance, and utility costs for a Police Facility in this larger building would be approximately $876,000 in 2009 dollars, an increase of $368,000 over current police O&M costs at City Hall. However, the building at 300 Country Club Road was upgraded in 1997-98 to be much more energy-efficient than the current state of City Hall so utility costs on a per-square-foot basis should be reduced significantly. Next Steps for City Hall If all police functions currently in City Hall were to move to a consolidated Police Facility on Country Club Road, relocating the remaining City Hall functions becomes a viable option. One way to accomplish this is for the City to leverage our interests in the Beam Development—and possibly the WG Development as well—to move remaining existing functions in City Hall to leased space in one or both of these developments. In the Purchase and Sale Agreement between Beam Development and the Urban Renewal Agency, the City committed to lease up to 50,000 square feet in the building to be constructed on the vacant parcel adjacent to the Centre Court building. The City's commitment is subject to Beam's demonstrating that they have used their best efforts to secure tenants for the new building. The remaining $6+ million in the Facility Reserve could be used to “buy down” the City’s cost of occupancy. This could allow the City to control the ongoing costs of occupancy while avoiding the tens of millions of dollars in capital costs that would be needed over the next 5-10 years to refurbish and update City Hall for continued use. In this option, we would want to assure that any buildings occupied by City functions have a civic presence appropriate to municipal government buildings. A downtown public safety station could also be included in order to maintain a police presence downtown. Relocating City Hall functions to these developments would help create a municipal government district focused th between the Beam Development at Broadway and Willamette and the Library at 10 and Charnelton. This would be an improvement over the current dispersion of City offices that stretches from the Library to City Hall. Z:\CMO\2009 Council Agendas\M090422\S090422A.doc Options need to be assessed for the existing City Hall, but the site should be retained either as the future home of a new consolidated City Hall or as a valuable site for future development. In addition, the option should be retained to move some City offices to the EWEB administration building at some future date when EWEB is ready to consolidate all operations on its west Eugene site. RELATED CITY POLICIES Addressing the deficiencies of the existing City Hall and providing safe, adequate space for the Police Department relates to the council values of effective, accountable municipal government, a safe community, and sustainable development. The council has maintained a continuing goal to adopt an implementation plan for resolving the issues related to City Hall and a police facility. The City Hall Complex Action Plan identified key issues that must be addressed as work toward the goal progresses. COUNCIL OPTIONS The following best outcomes are repeated from the memo to the Mayor and the council for the February 11 work session. ? Best Outcome: a police facility located downtown that meets essential service seismic requirements Although 300 Country Club Road is not immediately downtown, it is less than 5 minutes from downtown via the Ferry Street bridge and would allow consolidation of all police functions in safe, adequate space for the same or lower cost than a new Patrol Facility. A downtown police presence would be maintained with a downtown public safety station as well as regular patrols. ? Best Outcome: appropriate space for the Municipal Court Options for Municipal Court include space in the Beam Development, the WG Development, or even the Atrium Building if the Permit & Information Center were moved to the Beam Development. All options would be studied and the most appropriate location selected. ? Best Outcome: new construction that reflects council’s goal for sustainable buildings and services Could readily be accomplished through our involvement in the downtown developments as well as in the remodeling of 300 Country Club Road. ? Best Outcome: enhanced customer service for the public Would be accomplished for police by placing them in a safe, adequate building that has ready access to major transportation routes. Would also be accomplished through creation of a municipal government district between the Beam Development and the Library that would reduce some of the current dispersion of City services. Council Options 1.The council can choose to dedicate up to $16 million of the Facility Reserve for the acquisition and remodeling of an appropriate building to serve as a consolidated Police Z:\CMO\2009 Council Agendas\M090422\S090422A.doc Facility. To this end, the council can direct that negotiations with the owners of 300 Country Club Road should commence as soon as possible. The council can also direct that up to $6 million in Facility Reserve funds be used for relocation of the remaining functions at City Hall—along with any with other functions currently in leased space—to space in the Beam Development, the WG Development, and/or City-owned facilities (e.g. the Atrium). 2.Relocate Police Patrol Division to a new building, seismically upgrade City Hall, and remodel a portion of City Hall for Municipal Court. 3.The council can choose to direct other actions with regard to the Police Facility and City Hall or prioritize other uses for the Facility Reserve. CITY MANAGER’S RECOMMENDATION The City Manager recommends option 1. SUGGESTED MOTIONS A.Move to direct the City Manager to dedicate up to $16 million in Facility Reserve funds for the acquisition, planning, and remodeling of an appropriate building to serve as a consolidated Police Facility. To that end, commence negotiations with the owners of 300 Country Club Road for the acquisition of the property and improvements at that address. B.Move to direct the City Manager to use up to $6 million in Facility Reserve funds for planning, relocation, and occupancy costs associated with moving the remaining City Hall functions into space that supports new downtown developments, and continue with the analysis to evaluate the long-term viability of the EWEB property. ATTACHMENTS A. Summary of Costs for New Police Building and City Hall Remodels B. Conceptual Seismic Upgrade Narrative C. Police Facility Options for City-Owned Sites D. Facility Reserve History 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\M090422\S090422A.doc New Police Building and City Hall Remodel for Seismic Bracing & Third Courtroom City of Eugene - Central Services - Facility Management 3/31/2009 Predesign cost and Budget Estimate3 Feasibilty analysis and construction cost estimating provided by Berry Architects PC, KPFF Consulting Engineers and Construction Focus, Inc. City Hall Upgrades 2 Total Project Construction 1 Install seismic bracing $4,452,119$6,010,361 Remodel to add third Courtroom$730,738$986,496 City Hall Upgrades Total$6,996,857 $5,182,857 Police Building in 2 phases South of City Hall SiteFormer Agripac Cannery Site 22 Total ProjectTotal Project ConstructionConstruction Phase 1 - Patrol Facility$12,627,913$17,047,683$11,667,848$15,751,595 Phase 2 - EPD Admin, Investigations, Records etc.$12,800,069$17,280,093$13,854,743$18,703,903 Police Building Total $34,327,776$34,455,498 - including Ph 1 & 2 $25,427,982$25,522,591 City Hall Remodel Sub-Total $5,182,857$6,996,857$5,182,857$6,996,857 (from above) Total for Police Building & City Hall Projects $41,324,633$41,452,355 $30,610,839$30,705,448 notes: 1) Seismic bracing to be conventional occupancy standard. 2) Soft Costs are estimated at 26% of total project costs. 3) Estimates are in 2009 dollars. ATTACHMENT C Footer goes here ATTACHMENT C Footer goes here ATTACHMENT D 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).