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HomeMy WebLinkAboutAGENDA REPORT 2024 1106 CCSA REG ITEM 09ACITY OF MOORPARK, CALIFORNIA City Council Meeting of November 6, 2024 ACTION CONSENSUS OF THE CITY COUNCIL TO TAKE NO ACTION AND DIRECTED STAFF TO RETURN TO THE NOVEMBER 20, 2024, MEETING WITH ADDITIONAL INFORMATION FOR CONSIDERATION BY THE FULL COUNCIL. BY A. Hurtado. A. Consider 1) Short-Term Options for the Building and Parcel at 18 East High Street and 2) Identify Process to Determine its Long-Term Use. Staff Recommendation: 1) Discussion 1: Provide staff direction on short-term use of the building; and 2) Discussion 2: Provide staff direction on the process to discuss the option for future long-term use of the site. (Staff: PJ Gagajena, Assistant City Manager) Item: 9.A. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: PJ Gagajena, Assistant City Manager DATE: 11/06/2024 Regular Meeting SUBJECT: Consider 1) Short-Term Options for the Building and Parcel at 18 East High Street and 2) Identify Process to Determine its Long-Term Use BACKGROUND The City owns a parcel (“site”), approximately 17,207 square feet in size, located at 18 East High Street. There is a 250 square foot area of the parcel, located on the southeast portion of the site, that is contaminated with lead. A building exists on the site, approximately 1,700 square feet in size, that includes a large open area for offices and meeting spaces, two restrooms, a storage area, and maintenance closet. The building is a modular building that was relocated from Garden Grove, California and installed at 18 East High Street in 1979 by the Savings and Loan Bank, who had a ground lease with the Southern Pacific Railroad, who originally owned the parcel. The former Redevelopment Agency of the City of Moorpark purchased the entire five- acre property, which included all the land from the north Metrolink parcel to the Post Office site, including all the buildings and underlying leases in 1992. The Savings and Loan building was no longer operational at the time of the purchase and the City repurposed the building to be used as the Building and Safety and City Engineering office in 1994. When the Building and Safety operation moved up to City Hall, the Moorpark Chamber of Commerce (“Chamber”) began leasing the site in 2007. The former Redevelopment Agency of the City of Moorpark leased the site to the Chamber and under terms of an agreement beginning on September 19, 2011, the Chamber renewed the lease on an annual basis. The City’s current lease agreement with the Chamber is for a period of five years beginning on September 21, 2022 , and the Chamber can opt to extend for two additional two-year terms after the initial five-year term. The terms of the lease between the City and Chamber requires the Chamber to maintain open office hours at a minimum of four days per week , at least four hours per day. The Chamber currently operates Monday through Thursday between the hours of 9:00 a.m. Item: 9.A. 1 Honorable City Council 11/06/2024 Regular Meeting Page 2 and 3:00 p.m. and is closed every Friday. The Chamber employs one full -time Chief Executive Officer and recently hired an Administrative Assistant. Under the lease terms, parking on site is required to be public parking on weekends and weekdays after bus iness hours and is regularly used as such for patrons of the High Street Arts Center and local businesses. Since 1992, the City has maintained the building and parcel. Other than a roofing project completed in 1993, the building remains largely as it did in 1992. Maintenance on the building has traditionally occurred in a reactive posture, versus implementing preventative maintenance over time. Repairs were made when problems occurred as there has been some expectation among City staff that the Chamber property would be repurposed for some other use in the future. For example, roofing repairs were made when it was damaged in a windstorm, ceiling tile and insulation was replaced during a rodent infestation, and minor electrical and plumbing repairs have been completed as needed. Recently, the Chamber renovated the interior of the space at their own expense, to provide a more updated and fresh appearance to the office interior of the building. In December 2023, the City discovered a lateral sewer line servicing the building was damaged and the restrooms and water line inside the building were immediately shut down. The damage to the sewer line was caused during construction of the High Street Depot Project located east of the site. Apparently, the sewer lateral connection between 18 East High Street and the former Maria’s Restaurant located at 104 East High Street, where the High Street Depot Project is now being constructed, was not shown on utility maps and the line was inadvertently broken. After several months working with the developer of the High Street Depot Project and Ventura County Waterworks District No. 1, in August 2024, the City decided to construct the lateral sewer line to move the project forward since the lack of water and use of restrooms at the Chamber have impacted its operations. At the City Council meeting on October 2, 2024, staff presented to the City Council a proposal to design and construct a new sewer lateral connection through the parking lot at 18 East High Street to an existing sewer main line located on High Street just north of the property and in front of the High Street Arts Center. The total not-to-exceed amount for the project was $162,602, including contingency. PART 1 DISCUSSION – SHORT-TERM OPTIONS On October 2, 2024, the City Council rejected staff’s recommendation to repair the sewer line at 18 East High Street. The City Council subsequently directed staff to consider short- term options for the site as an alternative to repairing the sewer line. Below are options for the City Council to consider, with potential positive and negative impacts to each option. The impacts listed are non-exhaustive and only offered to enrich the decision making process. 2 Honorable City Council 11/06/2024 Regular Meeting Page 3 Short-Term Options 1. Vacate and Board Up Building with Maintenance Costs: $1,000 - $2,000 If the building is to be vacated and fully abandoned, the cost to board up the building is approximately $1,000 - $2,000 based on the cost to board up other City facilities such as the former granary and other vacant buildings. This includes labor and material costs for the actual boarding up of the building as well as annual repair of boarding materials, break-ins by transients or thieves, and graffiti removal. The existing parking lot could remain open and available for public parking with no improvements to the parking area. In the short term, implementing this option relieves the City of the capital outlay required to repair the sewer line estimated at $162,602. Vacating the building also saves the City in future anticipated maintenance costs of $732,000 over the next 10 years as numerous repairs will be needed to maintain occupancy of the building. The building and site improvements that must be made in the next 10 years to meet building code requirements and make the building habitable include the following: Item Estimated Cost Roof Replacement $175,000 Sewer Line Repair $162,602 HVAC Replacement $125,000 Parking Lot ADA $125,000 Restrooms ADA $75,000 Electrical Upgrades $45,000 Termite Fumigation $8,000 Exterior Painting $7,500 Exterior Wood Repair $5,000 Window Waterproofing $4,500 Total $732,602 Further, not occupying the site will facilitate a reimagination of the parcel to adaptively reuse it sooner rather than later with no active tenants occupying the building. The Chamber of Commerce would be impacted as they would be required to relocate out of the building which has no functioning sewer line for wastewater. 3 Honorable City Council 11/06/2024 Regular Meeting Page 4 2A. Demolition of Building with the Addition of Fencing and Landscaping and Restricting Access of the Property: $65,000 - $75,000 The estimated costs for the demolition of the building, installation of a tubular steel fence surrounding the property, and addition of enhanced landscaping is approximately $65,000 - $75,000. This is based on the demolition cost estimates of other City facilities such as the existing Moorpark Library building once the new Library facility is built. A tubular steel fence around the property is recommended to be installed since the parking lot will most likely not survive demolition activities and will not be usable for parking or any other use unless substantial improvements are made. Therefore, the entire site will be closed to the public. Since the corner property is highly visible from Moorpark Avenue and High Street, staff recommends the installation of a tubular steel fence as opposed to a standard chain link fence, and the addition of enhanced landscaping in and around the property so the corner maintains an aesthetically pleasing appearance until the property can be repurposed or disposed. The cost of the fence and enhanced landscaping is approximately $25,000, which is included in the overall cost for this option. Demolition of the site would increase the marketability of the site to prospective buyers. Due to the lead contamination, and soil conditions which need to be remediated for liquefaction and demolition of the existing structure, any improvements made by the City to prepare the site for sale would en hance the overall buildability of the site. Under this option, the Chamber of Commerce would be impacted as they would be required to relocate out of the building. 2B. Demolition of Building with the Minor Site Improvements to Allow Limited Public Access to Site (addition of Landscaping and Repaving of Parking Lot): $180,000 - $190,000 Costs to demolish the building, add landscaping, and also repave the current parking area and utilize the site for ongoing passive uses, total approximately $125,000. This amount is in addition to the demolition costs defined in option 1. Approving this option allows for any improvements required by the Americans with Disabilities Act (ADA) for public accessibility. In addition, stormwater upgrades would occur in the parking lot if parking was going to be a primary use of the site . The footprint of the parking area would remain essentially the same with a landscape buffer around the area where the building once stood, which cannot be repaved and used for parking because no additional parking spaces can be added under various reconfigured parking scenarios. Enhanced landscaping would be installed to maintain an aesthetically pleasing appearance. The costs for building demolition and landscaping is between 4 Honorable City Council 11/06/2024 Regular Meeting Page 5 $55,000 to $65,000. Adding the repaving cost of the parking lot results in a total cost of $180,000 - $190,000. Demolition of the site would increase the marketability of the site to prospective buyers. Due to the lead contamination, and soil conditions which need to be remediated for liquefaction and demolition of the existing structure, any improvements made by the City to prepare the site for sale would enhance the overall buildability of the site. Repaving the parking lot would allow for continued public uses at the site and the ADA improvements would bring the City into compliance and make it safer for the public. Under this option, the Chamber of Commerce would be impacted as they would be required to relocate out of the building. 3A. Sewer Line Repair Only: $162,602 The design and construction of the sewer line, including contingencies, from the parking lot on 18 East High Street to an existing sewer main line located on High Street just north of the property and in front of the High Street Arts Center costs approximately $162,602. The total cost for design is $30,074 and the total cost for construction is $132,528. Project design will take approximately four to six weeks and the bid process and actual construction may take between four to six months. Making this repair will keep the building occupied by the Chamber under terms of the lease agreement with the City, however, it does not include any additional upgrades or improvements to the parking lot or building. The Chamber of Commerce could remain in the building providing a presence on this strategic corner of High Street and Moorpark Avenue. The activity created by having a tenant brings businesses and visitors into the downtown to conduct business associated with Chamber functions. Not having an abandoned building benefits the City in several ways: Economic Growth: Occupied buildings boost surrounding businesses and increase tax revenue. Improved Safety: Abandoned properties can attract transient and criminal activities while occupied spaces foster a safe environment. Enhanced Property Values: Well-maintained areas with active buildings help preserve and increase property values, preventing urban blight. Visual Aesthetics: Vibrant, occupied spaces improve the visual appeal of neighborhoods and commercial districts for residents and visitors. 5 Honorable City Council 11/06/2024 Regular Meeting Page 6 There are potential negative impacts as well. The structure sited on the parcel was not intended to serve the long-term needs of the Chamber or the City. As such, significant investments have not been made to ensure the long -term viability of the building. A substantial investment will need to occur in the coming years as several repairs and improvements will need to undertaken given the age and existing condition of the building. Those repairs are listed below in option 3B and total approximately $732,602 in funds to keep the building habitable. The current lease amount for use by the Chamber of Commerce is $1.00 annually, therefore all costs for ongoing maintenance and future repairs will be borne by the City. 3B. Sewer Line Repair with Building and Site Improvements: $732,602 The cost to repair the sewer line and complete required improvements and deferred maintenance operations over the next 10 years is approximately $732,602. This is based on the costs of similar improvements at other City facilities, such as the recent roofing project at 45 East High Street (High Street Arts Center), and unit costs obtained through the construction and tenant improvement project at 323 Science Drive (New City Hall). Note that these improvements may trigger other building code requirements such as seismic renovations and ADA upgrades, which may ultimately increase project costs. Additionally, these repairs and costs are based on staff’s experiences maintaining the building. It is likely there are other issues that will need to be addressed once a professional is hired to evaluate and complete the improvements. Time and material costs in the next five to 10 years are also expected to increase. The building and site improvements that must be made in the next 10 years to meet building code requirements and make the building habitable include the following: Item Estimated Cost Roof Replacement $175,000 Sewer Line Repair $162,602 HVAC Replacement $125,000 Parking Lot ADA $125,000 Restrooms ADA $75,000 Electrical Upgrades $45,000 Termite Fumigation $8,000 Exterior Painting $7,500 Exterior Wood Repair $5,000 Window Waterproofing $4,500 Total 732,602 6 Honorable City Council 11/06/2024 Regular Meeting Page 7 As with the previous option 3A, the Chamber of Commerce could remain in the building providing a presence on this strategic corner of High Street and Moorpark Avenue. The Chamber would stay at this location for a longer period of time with implementation of the long-term building and site improvements. The activity created by having a tenant brings businesses and visitors into the downtown to conduct business associated with Chamber functions. Not having an abandoned building benefits the City in several ways: Economic Growth: Occupied buildings boost surrounding businesses and increase tax revenue. Improved Safety: Abandoned properties can attract transient and criminal activities while occupied spaces foster a safe environment. Enhanced Property Values: Well-maintained areas with active buildings help preserve and increase property values, preventing urban blight. Visual Aesthetics: Vibrant, occupied spaces improve the visual appeal of neighborhoods and commercial districts for residents and visitors. The potential negative impact is the City would need to make significant investments to ensure the long-term viability of the building. The current lease amount for use by the Chamber of Commerce is $1.00 annually, therefore all costs for ongoing maintenance and future repairs will be borne by the City. PART 2 DISCUSSION – PROCESS TO DETERMINE LONG-TERM USE The purpose of the previous discussion regarding the building and site at 18 East High Street is to identify its short-term use on whether the building will continue to be occupied by the Chamber or completely abandoned. If a decision is made that involves the potential relocation of the Chamber of Commerce, staff seeks further direction from the City Council on what options it wishes to pursue to determine long -term usage of a potential vacant City-owned site at 18 East High Street. The long-term use of the site will require a separate and more in-depth discussion among the City Council and/or community. Staff is seeking direction from the City Council on what process to pursue with the long- term use of the building and site at 18 East High Street. The City Council will only be deciding on what type of process and/or meeting format it desires to take at this time. There will be no discussion about the long-term use of the site, which will be reserved for the process and/or meeting format the City Council decides on. Staff recommends the City Council consider one of these processes to determine the future use of the building and/or property. 7 Honorable City Council 11/06/2024 Regular Meeting Page 8 Process to Determine Long-Term Use 1. Special City Council Meeting The City Council may consider scheduling a Special City Council meeting at a future date to discuss and decide on the long-term use of the site, including any disposition requirements that might have to be followed should the City Council want to consider sale of the parcel. Members of the public will be encouraged to attend and make public comment as with all City Council meetings. 2. Community Outreach Workshop City staff can organize one or more community outreach workshops with the downtown area residents and businesses and/or the community at large to discuss the preferred long-term use of the site. The feedback from residents and businesses will then be shared with the City Council at a Council meeting and the City Council may discuss and decide on the long-term use of the site. 3. Downtown Specific Plan The public will have the opportunity to discuss the long-term use of the site during community engagement workshops as part of the Downtown Specific Plan (DTSP) process. The comprehensive update to the DTSP will include a new form -based code with enhanced architectural and design standards that emphasize high - quality pedestrian scale development; standards for streets, lighting, and public spaces; outdoor seating; and streamlined permitting requirements. The DTSP may also consider design standards for entryways and signage that could impact the use and development of 18 East High Street. The DTSP process is expected to begin in March 2025 and submitted to the City Council for approval by June 2026. Staff requests City Council direction on two separate items: 1) the short-term use of the site and 2) the process to discuss the options for future long-term use of the site. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no environmental review is required. FISCAL IMPACT The fiscal impact is based on the short-term option decided by the City Council and outlined in the staff report. 8 Honorable City Council 11/06/2024 Regular Meeting Page 9 COUNCIL GOAL COMPLIANCE This action does not support a current strategic objective as identified in the Fiscal Year 2024/25 City Council Goals and Objectives, however the action is consistent with Goal 2: Strategic Economic Development: Moorpark will develop a local economy that has unique business centers, attracts vested business leaders and visitors, and serves a wide spectrum of shopping, entertainment, and employment needs for its current and future residents, with a continued emphasis on High Street. STAFF RECOMMENDATION 1. Discussion 1: Provide staff direction on short-term use of the building; and 2. Discussion 2: Provide staff direction on the process to discuss the option for future long-term use of the site. 9