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HomeMy WebLinkAboutItem B: Next Steps on Facility Reserve ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Next Steps on Facility Reserve Meeting Date: May 11, 2009 Agenda Item Number: B 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 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 April 22, 2009, work session regarding the use of facility reserve funds, council was presented with information about an available property at 300 Country Club Road with potential suitability as a consolidated Police Facility, and a concept for creating a civic center by moving all other City Hall functions to development projects near the Atrium and Library. For the past 10 years, the council has grappled with the issue of how best to resolve the life safety, space, functional, and condition deficiencies of City Hall. One of the primary factors in this ongoing discussion is that the existing building—even if all the structural deficiencies and deferred maintenance were corrected—is much too small to consolidate all downtown City services. Currently, the City occupies 10 different locations downtown and space for the two biggest functions in City Hall—Police and Municipal Court—is significantly undersized. Another significant factor is the higher seismic standards required for police facilities by today’s code standards coupled with the fact that City Hall is vulnerable to extensive damage in even a moderate earthquake. As long as Police remains in City Hall the building does not have to be upgraded to meet current seismic requirements because it met codes in place at the time it was built and is “grandfathered” in. However, any building built or purchased to house police functions must meet current “essential facility” seismic requirements intended to ensure operation of the building after an earthquake when first responders are most needed. As a result, other functions have been moved out of City Hall over the years—including other essential services such as the 911 call center and the fire station—while Police has remained in one of the most seismically vulnerable buildings in all of Lane County. The seismic condition of City Hall together with the worsening space crunch Police has experienced over the past decade makes solving the Police piece of the City Hall puzzle a high priority and the first step in solving the downtown City space issue as a whole. Currently, the Police Department occupies about half the space needed for current staffing and service levels according to several independent analyses. The lack of available funding for building new space for Police has been an obstacle to progress even as the council has responsibly set aside funds in the Facility Reserve for the purpose of addressing City building needs. The lack of available buildings that meet Police’s unique structural, space, and security needs has also been a barrier to finding affordable solutions to Police’s facility needs. Consolidated Police Facility The facility located at 300 Country Club Road is the first viable option for an existing property meeting Police’s requirements that has come along in 10 years. 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 spaces, 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. A recent seismic analysis 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 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 costs. Lane County tax records for the two tax lots that comprise this property list the Real Market Value at $10.1 million. Sales of comparable buildings in the area indicate that this may be a reasonable approximation of the property’s value, though no recent appraisals have been completed. It is well known that many areas of Eugene are within the 100-year flood plain of the Willamette River. For example the Downtown Fire Station, wastewater treatment plant, and EWEB Administration Building, all critical and essential community services, are within the flood plain boundary. To mitigate the potential impact of a flood, the first floor level of each was constructed at least one foot above the flood plain. The 300 Country Club Road site is also located within the northern boundary of the flood plain for Willamette River. This building was also designed so the first floor level is one foot above the flood plain. The only area that would be affected as a result of a 100-year flood event is parking. A contingency plan would be developed to assure the continuation of police services in such an event. Since construction of the building in 1982, the Country Club Road site has never flooded including in 1996 when the Willamette and McKenzie Rivers experienced some of their worst flooding in decades. One potential concern is that moving the police headquarters to Country Club Road might reduce police coverage downtown. Although 300 Country Club Road is not immediately downtown, it is just minutes away by car or bike via the Ferry Street Bridge. A prominent downtown police presence would continue to be maintained via an enhanced Downtown Public Safety Station as well as regular patrols. The Downtown Public Safety Station could incorporate bicycle officers, downtown guides, community service officers, and other functions to provide front counter services and community outreach efforts. Also, it is important to note that the Country Club Road building is the right size to meet the Police Department’s current space needs. When additional space is needed in 10 – 15 years, this could be accomplished by adding a smaller precinct building on the south side of the river in or near downtown. During the April 22 work session, the council directed the City Manager to bring back to council the costs and necessary steps to secure an option on the Country Club building to ensure a good price on that building now as we discuss its potential as a patrol building. The following steps to determine the cost and options available to secure a purchase option for the 300 Country Club Road site are: 1. Initiate conversation with the property owner to inform them the council has approved the City pursuing the purchase of the building upon completion of an appraisal of the property. 2. Obtain agreement with the property owner that they will not enter into negotiations with anyone else to lease or sell until after the City has time to complete an appraisal and has tried and failed to negotiate a purchase and sale agreement. At the work session, staff will update the council on the status of conversations related to securing an exclusive right to purchase. 3. Complete appraisal process to determine fair market value. 4. Upon completion of appraisal finalize the terms of the purchase and sale agreement with the property owner before returning to council for final approval. Creating a Civic Center If all police functions currently in City Hall were to move to a consolidated Police Facility, relocating the remaining City Hall functions and planning for the future use of the City Hall site becomes a viable option. Numerous studies over the past decade have identified the problems associated with City Hall as well as the costs to address those problems. The lack of structural elements to resist the forces of an earthquake has been well documented. The building also has outdated mechanical and electrical systems that are many years past scheduled renewal dates. In addition, the lack of insulation in the walls, floors, and ceilings—together with single glazed windows and inefficient HVAC equipment—make the building an energy sieve. By comparison, the Eugene Public Library is about four times more energy-efficient per square foot than City Hall. Current estimates for addressing all deferred maintenance, capital renewal needs, and structural deficiencies are in the $40-50 million range. As noted above, even if all these problems were addressed, the building is still much too small to consolidate downtown City services. One option for vacating City Hall is for the City to leverage its 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. 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, staff would want to ensure that any buildings occupied by City functions would have architectural elements designed to create a civic presence appropriate to municipal government buildings. Relocating City Hall or other City functions to these developments would create a civic center 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. The Downtown Public Safety Station would also be included in this area to further reinforce the civic center. Options need to be assessed for the existing City Hall site including selling the property for development by others and retaining ownership of the property for future use while demolishing the building. This second option could include using the site to provide parking for the east side of downtown while other options are fleshed out. Keeping the property and leasing the building to others is another option, though it would require seismic and mechanical upgrades as well as significant ongoing investment to keep the building operational. Long-term options also need to be explored including the phased construction of a new City Hall complex, either at the existing City Hall site or elsewhere. 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. This could be the first phase of a consolidated City Hall complex along the river. 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 Best Outcomes ? Best Outcome: a consolidated police facility located downtown that meets essential service seismic requirements along with current space and parking needs, and can be funded from existing reserves Although 300 Country Club Road is not immediately downtown, it is minutes from downtown via the Ferry Street bridge and would allow consolidation of all police functions in safe, adequate space for about the same cost as a newly constructed Patrol Facility. A downtown police presence would be maintained with a Downtown Public Safety Station as well as regular patrols. When additional space is needed for police functions in 10 – 15 years, a precinct building could be built on the south side of the river in or near downtown. The south precinct building could also include an emergency command center to mitigate the floodplain issue at the Country Club Road site as well as providing a second base of operations after a major earthquake. ? Best Outcome: appropriate space for Municipal Court and other functions currently in the existing City Hall Options for relocating existing City Hall functions include space in the Beam Development, the WG Development, or even the Atrium Building if Planning and Development were relocated to the Beam Development. All options would be studied and the most appropriate location selected with the goal of creating a civic center for greater operational efficiency and improved customer service. ? Best Outcome: new construction that reflects the council’s goal for sustainable buildings and services This could readily be accomplished through involvement in the downtown developments as well as in the remodeling of 300 Country Club Road. Unlike City Hall, the exterior of the Country Club Road building is well-insulated and the windows are thermal-paned with gas-filled tinted glazing to reduce both heating and cooling loads. The heating, ventilating, and air conditioning (HVAC) equipment at is at the end of its useful life which would need to be accounted for in the purchase price. This would give the City the opportunity to upgrade the HVAC system to high-efficiency equipment and direct digital controls for maximum energy efficiency. ? Best Outcome: enhanced customer service for the public This would be accomplished for police by placing them in a safe, adequate building that has ready access to major transportation routes. Enhanced customer service would also be accomplished through creation of a civic center between the Beam Development and the Library—including a Downtown Public Safety Station—that would reduce much of the current dispersion of City services downtown. ? Best Outcome: the community has an opportunity to provide input on City Hall options Relocation of existing services from City Hall provides a new opportunity for public involvement to determine the best options for the vacated space in the future. The community could consider a range of options over the next 60 days and help inform the council’s decision in moving forward. Council Options 1. a. The council can direct the City Manager to attempt to negotiate a purchase and sale agreement (PSA) for the property at 300 Country Club Road for a price to be determined following completion of an appraisal, and additional analysis of remodeling, relocation and other costs to ensure that the Police could move into the remodeled and refurbished building for a complete cost not to exceed $16 million. Final approval of the PSA would be contingent on City Council approval of the purchase price. Before beginning such negotiations, the property owner would need to satisfy the manager that for a set period of time, the owner would not enter into negotiations for the lease or sale of all or a portion of the property with any other entity or person. b. If the council wants to secure exclusive rights to the property without entering into a PSA, the council can direct the City Manager to seek a purchase option on the property, a process which would likely require an option fee to be paid by the city for an established period of time. The owner could still seek to lease out space in the building subject to the City deciding whether or not to enter into a PSA. The amount of the purchase option may or may not be applicable to the purchase price of the building. c. The council can choose to not enter into any agreement with the property owner while the City explores its options. 2. The council can choose to direct that a public involvement process be initiated to seek community input on options for City Hall and bring back the results to council prior to council break which begins August 13. 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 options 1a and 2. SUGGESTED MOTIONS A. Move to direct the City Manager to attempt to negotiate a purchase and sale agreement (PSA) for the property at 300 Country Club Road for a price to be determined following completion of an appraisal, and to make the PSA contingent upon council approval of the purchase price. B. Move to direct the City Manager to initiate a public involvement process for the purpose of seeking community input on options for City Hall and bring back the results to council prior to council break on August 13. ATTACHMENTS None. 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