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HomeMy WebLinkAboutAGENDA REPORT 2000 0517 CC REG ITEM 10AnE_M___ IQ. C TV OF I- 10ORPARI<, CALTFORNTA City Cie inch ?Meeting of _ Lt7, 'R&6-U-4 tl. • I WWI =* �*� Z MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable Mayor and City Council From: Hugh R. Riley, Interim Deputy City Manager` DATE: May 3, 2000 (Meeting of 5/17/00) SUBJECT: Submittal and approval of final report for the Civic Facilities Space Needs Study. (Continued from April 19, 2000) BACKGROUND: At the regular meeting of April 19, 2000 the City Council received the final report for the Civic Facilities Space Needs Study. The Council decided to continue the matter to the meeting of May 17 to allow additional time for the Council to review the report. The Council also requested staff to fully evaluate if leasing space for the city offices might be a feasible option. An informal evaluation of the leasing option had already been done but the option was not pursued due to the probable high cost and because it would not meet the goal of staying in the downtown area. Staff was also asked to determine reuse opportunities for the modular office units being proposed and other possible alternatives available to the City. DISCUSSION: LEASING A BUILDING - Listings of all commercial and industrial property currently available in the City were obtained and a number of properties that could be converted to provide the necessary space were visited. A five -year lease period was used for the evaluation. Staff examined 000012 Space Needs Study Meeting of May 17, 2000 Page 2 area, parking and tenant improvement costs. Conservative cost factors and typical moving costs were used. 1. AREA To centralize the city's facilities and accommodate all of the offices, services and functions including the police department, a minimum of 15,000 square feet would be required. The minimum area needed to accommodate present functions without the police department would be 12,000 square feet. There are no commercial office properties available in the City that provide sufficient space for the city's combined needs. Most of the industrial buildings examined were either small units in multiple -unit complexes or very large buildings with a significant portion of space devoted to open, non -HVAC served, warehouse -type space. Several of these buildings offer the opportunity to lease smaller segments. Buildings in the Poindexter Road (Commerce and Tech Dr.) , Condor Road and Freeway Business Park (Science Dr.) were visited. Suitable space could be leased for between $.50 and $.60 per square foot. 2. PARKING To provide the required parking for employees and visitors to combined city offices staff estimates that between 110 and 130 spaces including handicapped reserved spaces would be required for a short term. None of the available buildings provide that quantity of adjacent parking. The suitable industrial properties are not required to provide this number of parking spaces. While parking agreements with neighboring properties are a possibility, non - adjacent parking for the city's use would be a problem. 3. TENANT IMPROVEMENTS The cost to convert any of the available buildings to office use for the city's needs is relatively expensive. Even using conservative estimates of $ 20.00 to $30.00 per square foot for basic offices and modular work stations the cost for such improvements would be in excess of $375,000 (@ $25 /Sq. Ft.) In addition, none of these buildings are suitably equipped with electrical, plumbing, heating and 000010— Space Needs Study Meeting of May 17, 2000 Page 3 air conditioning facilities for such use. It is estimated that providing these facilities would cost an additional $20.00 per square foot or an additional $ 300,000. A summary of the leasing costs compared to the Short Term, Option B provided in the previous report is as follows: SHORT TERM OPTION B as presented (Adds 6,000 Sq. ft to existing space) Modular units and Office Reconfiguration - $ 540,538 Contingencies (5 %) - $ 7,026 General Fund Savings /Earnings (5- year)* ($ 90,000) FIVE -YEAR COST ($79.60/ sq. ft. -new space) $ 477,564 COST PER YEAR $ 95,512 *Building Safety & Engineering lease revenue now going to the Redevelopment Agency The concern for the appearance of the modular units would need to be addressed at an additional cost. TYPICAL LEASE OF PROPERTY /MOVING & TENANT IMPROVEMENT COSTS WITH ALL FUNCTIONS CONSOLIDATED (15,000 sq. ft.): Annual Lease cost for building @ $.55 /Ft. Lease cost for five -year period - Tenant Improvements - @ $25.00 /Ft. Electrical,Plumbing, HVAC Moving costs - SUBTOTAL Contingencies - (5%) SUBTOTAL General Fund Savings /Earnings -* FIVE -YEAR COST ($139.80/ sq. ft.- new space) COST PER YEAR $ 99,000 $ 495,000 $ 375,000 $ 300,000 $ 25,000 $1,195,000 $ 59,750 $1,254,750 ($ 101,800) $1,093,200 218,640 *Combined savings /earnings by consolidating all functions including Building Safety & Engineering and Police Department. (Not including CHP) 000®1.4 Space Needs Study Meeting of May 17, 2000 Page 4 WITHOUT THE POLICE DEPARTMENT (CITY HALL ONLY- 12,000 sq. ft.) . Annual Lease cost for building @ $.55 /Ft. Lease cost for five -year period - Tenant Improvements - @ $25.00 /Ft. Electrical,Plumbing, HVAC Moving costs - SUBTOTAL Contingencies - (5 %) SUBTOTAL General Fund Savings /Earnings -* FIVE -YEAR COST ($191.33/sq. ft. -new space) COST PER YEAR $ 79,200 $ 396,000 $ 300,000 $ 250,000 $ 18,000 $ 964,000 $ 48,200 $1,012,200 ($ 90,000) $ 922,200 $ 184,440 *Savings /earnings by consolidating Building Safety & Engineering without the Police Department. If a period longer than five years is utilized, the amortized construction cost per square foot improves as a function of time. However with leasing, there is less advantage because the lease expense continues and escalates. For example, the cost of leasing 12,000 square feet for a ten -year period would be approximately $792,000 and a ten -year cost of $1,270,000 or a cost per year of $127,000. Amortizing the cost of the new modular units for a ten -year period results in a cost per year of $47,756. RECAP: TOTAL COST PER YEAR ACTION FIVE -YEAR TEN -YEAR Modular Expansion Option B $ 95,512 $ 47,756 All City Functions Including Police Dept. (15,000 sq. ft.) 218,640 109,320 City Functions Excluding Police Dept. (12,000 sq. ft.) 184,440 127,000 00001's Space Needs Study Meeting of May 17, 2000 Page 5 CONCLUSION: The lease option is not financially feasible given what is available even with an extended lease term. The costs are almost twice the cost to implement Option B. A lack of sufficient parking combined with the high costs rules out the option of leasing property. The location of city offices in a business park setting, away from the downtown area does not conform to this objective. The opportunity for salvage /and or reuse value of the modular units is minimal. Generally, these units are prepared (wired, plumbed and fitted) for specific uses. Relocation and remodeling costs usually come close to or exceed resale values. The use of the suggested modular units at the same site for alternate functions after the occupancy of a new city hall complex is an option. An additional option that could be examined is the phased new construction of the city facilities on the existing Civic Center Site with multi -level parking. However, this would not address the current and critical shortage of space. Staff has discussed this possibility only on a conceptual basis. To explore this option a comprehensive site survey of the existing property would be needed. Although not examined, another option would be to further decentralize city functions by combining the community development function with building, safety and engineering at another location. This would require approximately 8,500 square feet of space and the costs for leasing space provided in this report would also apply. While this alternative would bring the community development, building, safety and engineering functions together under one roof, the cost for leasing additional space would still be high relative to the modular expansion. SUMMARY: The leasing of space for all or a part the functions currently provided at the city hall complex is relatively expensive compared to the on -site, modular expansion option (Short -term Option B) and would move city hall away from the downtown area at a critical time. The adding of additional modular units, while not the most aesthetically appealing prospect, offers the least expensive and most timely solution to the pressing need for additional space. It also gives the City Council time to 000®"9 G Space Needs Study Meeting of May 17, 2000 Page 6 explore alternative sites and related options (ie. Combining City Hall and Police or separate locations) and adequate time to explore financing options, design and construct a permanent facility. STAFF RECOMMENDATION: Based on current conditions and needs, staff recommends the City Council: 1. Direct staff to implement the Short Term Plan, Option B as provided in the report, without the existing building expansion, to accommodate moving the building, safety and engineering functions to the city hall complex and modify lease arrangements with Abbott for this space accordingly. 2. Direct staff to begin the identification of suitable alternative sites for a new city hall complex. ATTACHMENT: April 19, 2000 Council Staff Report 0000:1'i TO: From: DATE: SUBJECT: MOORPARK CITY COUNCIL AGENDA REPORT Honorable Mayor and City Council ITEM-10- L Of CITY OF MOORPARK, CALIFORNIA A City Council Meeting CITY 0-I 'MOORPARK, CALIFORNIA C- Coundl''rlee� rg of T rt 1 1�1 LV ) AC T1'0';'-4: 1A_/i'n 4 !r ,t .Er a u ri CA . f "Fi ! f� J 000 BY: Hugh R. Riley, Interim Deputy City Manager April 12, 2000 (Meeting of 4/19/00) Submittal and approval of final report for the Civic Facilities Space Needs Study. BACKGROUND: In March 1998 the City awarded a contract to Leach Mounce Architects to conduct a short and long -term space needs study for city hall. It was intended to examine the current and future space requirements based on projections for staffing requirements in the various city departments and service functions. DISCUSSION: In March 1998 the City Council approved a contract with Leach Mounce Architects to conduct a short and long -term space needs study for the City. The original contract was for $43,620 to be paid from the City Hall Improvement Fund. In October 1999 a budget amendment for an additional $16,600 was requested and authorized for additional work on the study made necessary because of changes in the original scope of work as follows: 1. . Added ten (10) staff to long -term projections. 2. Added five (5) positions to short -term projections (City Clerk, Community Development, Community Services, Public Works Departments) 3. Added restroom and employee lounge to new annex structure. 000018 Space Needs Study Meeting of April 19, 2000 Page 02 4. Added employee restrooms and small kitchenette area to existing city hall building to short term option. 5. Added provision for CHP office with police facility. 6. Added option for stand -alone Police %CHP facility. 7. Added staffing areas to police services - clerical and volunteers. 8. Revised all work - stations to include computer work area, short and long -term. 9. Revised maintenance area to include vector control operations for long -term. The short -term plan covers a five to ten year period and includes three options. Option A provides for new modular units for Community Development and some breathing room for existing staff. This option would only partially correct crowded conditions created by the current use of corridor space for file cabinets for community development, public works and community services. However, this option would provide no real expansion opportunity and would not accommodate moving the Building and Safety division to the main City Hall Complex. The estimated design and construction cost to implement Option A is $512,272. However the expansion to the existing building is not needed producing a savings of $100,000 making the est' _ cost for this option $412,272 providing a total , square feet of space. Occupancy under this option wil approximately nine months from the date of Council approval /o, to proceed with design plans. The time -line includes 30 to gy`'`p 45 days to prepare plans; 30 to 45 days for bidding and 60 to 90 days for construction. Option B would fulfill the desire to bring all services to one location however, with that move, the plan would not accommodate the expansion needs identified for all departments. With the prospect of a proposed new or expanded permanent city hall facility within five years, a decision is needed as to whether the additional cost of option B can be justified. The design and construction cost for Option B less the cost for existing building expansion 000019 Space Needs Study Meeting of April 19, 2000 l3�I$ 0 Page 03 is $540,538 providing a total of square feet of space. While this option costs $128, e than Option A, it also provides flexibility for the inclusion of City Council Office space as well as the necessary space for the Building and Safety functions. The City currently leases 2,000 square feet of space for these services to Charles Abbott Associates in Redevelopment Agency -owned property on High Street. The lease generates $1,500 per month or $18,000 per year. If space at City Hall is provided at a rate that would generate the same revenue, the income would accrue to the city instead of the agency and recover a portion of the additional cost for Option B over a five - year period ($90,000). The remaining difference of $38,266 can be considered the cost of the added convenience to the public for the consolidated service functions. An Option C as presented, although the least expensive option, is not considered feasible because it provides insufficient file space for the Community Development Department. The long -term plan concludes that a suitable site to accommodate new facilities for city hall, police and highway patrol and the city yard should contain 7.78 acres allocated as follows: City Hall 3.62 Police 1.98 CHP 0.54 SUBTOTAL 2.52 2.52 City Yard 1.64 TOTAL 7.78 Acres All work on the Space Needs Study has now been completed. The Council has received a copy of the final report document and Howard Leach, Leach Monuce Architects will be present at the City Council Meeting to provide a brief presentation on the findings. Some important factors to consider are: 1) The use of site space for modular units which would interfere with an alternative of expanding the existing city hall building to this area of the current site. O000�() Space Needs Study Meeting of April 19, 2000 Page 04 2) The projected costs do not include adding parking and two spaces would be lost. 3) The cost estimates for Options A and B do not include possible modifications to sanitary sewer service to the site. These costs, if any, will need to be considered. 4) Following completion of new facilities, the modular units and the existing main building may be used for other city purposes. In the new modular units, only the corner offices, restroom and lounge will be hard - walled by the manufacturer. All other walls would be of modular (moveable) design providing a highly flexible floor plan. 5) The current balance in the City Hall Improvement Fund of $ 420,000 will be fully depleted for the short -term option. RECOMMENDATION: Based on current conditions and needs, staff recommends the City Council: 1. Direct staff to implement the Short Term Plan, Option B as provided in the report, without the existing building expansion, to accommodate moving the building, safety and engineering functions to the city hall complex and modify lease arrangements with Abbott for this space accordingly. 2. Direct staff to begin the identification of suitable alternative sites for a new or expanded city hall complex.