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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1995-06-06 - Special1 06/06/95 City Council, Special Meeting City Council Chambers 1313 California Street Redding, California June 6, 1995 3:00 p.m. The joint meeting of the Redding City Council and the Civic Center Committee was called to order by Mayor Kehoe with the following Council Members present: P. Anderson, R. Anderson, McGeorge, Murray and Kehoe. The following Civic Center Committee members were present: Gary Anthis, J. Kent Dagg, Randy Denham, Eihnard Diaz, Dr. Lee Fulton, H. Ward Gandy, Fran Jenkins, Dr. Allen Krohn, John Mancasola, Jack McAuliffe, Mary Jane Ogden, Jim Pope, Bob Renard, Gary Rogers, Dave Rutledge, George Santilena, Dave Scott, Tom Spade, Bruce Swanston, and Sally Wells. Also present were City Manager Warren, Assistant City Manager Perry, Director of Public Works Galusha, Acting Planning Director Keaney, Director of Administrative Services Starman, Management Assistant to the City Manager Bachman, City Clerk Strohmayer, and Secretary to the City Council Rudolph. CIVIC CENTER COMMITTEE REPORT (C-050-025) Mayor Kehoe related that the Civic Center Committee Report to Redding City Council, dated June 6, 1995, incorporated herein by reference, represents the culmination of a substantial amount of community goodwill, industry and tenacity of purpose. He noted the committee members would be available following the meeting to answer questions from the media. Council Member R. Anderson recalled the Civic Center Committee began its process approximately three months ago when the City Council decided to discuss the need for a new Civic Center. He stated each Council Member selected five individuals to serve on the board-based citizens committee commissioned with deciding whether the City needed a Civic Center, and if so, determine the type and cost. He complimented the Committee for its quality report given the short timeline and the objectives set forth. Ward Gandy, Committee Chair, thanked the City Council for allowing the community to participate in this important process. He thanked staff for their assistance, particularly City Manager Warren, Assistant City Manager Perry, Administrative Services Director Starman, Management Assistant to the City Manager Bachman, and Assistant City Engineer Aasen. He explained that each Committee Member was requested to speak at the first meeting and there was unanimous agreement on two issues: 1) There was a definite need for a Civic Center complex; and 2) The cost of the complex should be reasonable for long term buildings within the City. The Committee was then divided into the following five subcommittees which reported back to the entire Committee each Monday: 1) Space Needs; 2) Building Costs/Environmental Issues; 3) Building Location, Site Design/Planning; 4) Financing/Legal and 5) Public Information. Gary Rogers, Chair of the Public Information Subcommittee, stated the following individuals served on the subcommittee: Fran Jenkins, Kent Dagg and George Santilena. He explained the primary function of the subcommittee was to relay the Committee's work to the media and he complimented the media on its coverage. Sally Wells, representing the Space Needs Subcommittee, noted the following individuals who served on the subcommittee: Frank Meehan, Chair, Bill Woodward, Dr. Allen Krohn, Sally Wells and Eihnard Diaz. She explained the subcommittee was charged with determining the amount of square footage required to meet the City's needs for the next 50 years. She provided an overview of the subcommittee's report and finding as depicted in Appendix 2 of the Committee's report. She explained that in order to arrive at the final space required, the 2 06/06/95 number of employees was multiplied by 178 square feet to ascertain the work and storage needs of each employee and space was then added for the City Council chambers and conference rooms. In order to determine the total square footage required, this number was then increased by 12.5 percent to allow for hallways, waiting areas, restrooms, foyers, etc. Bob Renard, Chair of the Building Location, Site Design/Planning Subcommittee, noted the following members who served on the subcommittee: Dr. Lee D. Fulton, Dave Sandrock, Eihnard Diaz, Mary Jane Ogden, Jim Pope, Bill Woodward, Gary Anthis, John Mancasola, and George Santilena. He provided an overview of the subcommittee's report and findings as depicted in Appendix 4 of the Committee's Report. He stated the subcommittee concluded that the 45-acre site provided sufficient land, therefore, it would not be necessary to relocate the existing City Hall operation during construction. The subcommittee recommended that the Phase I City Administration Building be located on the existing softball fields south of the California Department of Forestry (CDF) property and west of Akard Avenue. He explained the subcommittee concluded that any existing or new streets running through the site would be detrimental to its long-term development as a Civic Center. To negate any problems these street closures might create, it is recommended that the Athens/Cypress/Park Marina intersection be upgraded and signaled. It was further recommended that the City replace any needed facilities that would be encroached upon by new construction. He conveyed the new City Council Chambers should be designed for multiple use as a conference center for other government and non-government groups. He related the subcommittee further recommended that Phase II, construction of a Police building and possibly additional City offices and a Fire Station, be located between Akard Avenue and the Anderson- Cottonwood Irrigation District (A.C.I.D.) Canal. He noted the existing 17,000-square-foot City Hall provides cost-effective office space for the short and intermediate term. He indicated the Phase III Conceptual Plan does a good job of bridging the two approaches and illustrates how the entire site might be developed in the next 50 years or beyond, as funds become available. Tom Spade, Chair of the Building Costs/Environmental Issues Subcommittee, thanked the following individuals for serving on the subcommittee: Kent Dagg, Dave Scott, Jack McAuliffe, and Bruce Swanston. He also conveyed appreciation to Assistant City Engineer Aasen for his assistance and input. He reviewed the subcommittee's report and findings as outlined in Appendix 3 of the Committee's Report. He explained the subcommittee addressed the issue of potential contaminated soil and other unknown soil problems on the 45-acre site. He stated the subcommittee concluded the softball fields between Grape Street and Akard Avenue, and Parkview Avenue and the southern boundary of the CDF property, would be the most appropriate site for Phase I of the project. He noted the site appears to be free of any known contaminated soil problems. He explained the subcommittee further recommended the City conduct the necessary environmental studies on all property lying west of Akard Avenue in order to appropriately assess the environmental issues on the Phase I building site. Assuming no significant problems result from the study, the subcommittee recommended that efforts be made to pursue acquisition of the CDF facility and to demolish the older Fire Cache structure. He noted the subcommittee's prime concern is that the contaminated soil issues be fully understood before pursuing any major expenditures of money leading to the construction of the Civic Center project. Mr. Spade related the subcommittee also identified the following structures to serve as a guideline for the expected cost of Phase I: CH2M Hill building on Airpark Drive, the Moss & Enochian building on Park Marina Drive, and the Simpson & Maire building on Park Marina Drive. Based on discussions with four major general contractors, it was concluded the facilities could be constructed at a cost of approximately $100 per square foot. Given the fact that the City would be required to pay prevailing wage, the subcommittee adjusted the estimate of $100.00 to $112.50 per square foot for the 51,000-square-foot facility for a total cost of $5,738,000. He stated the subcommittee further determined the following would be required: a) hire a construction manager at an estimated cost of $120,000; b) demolish structures at an estimated cost 3 06/06/95 of $15 per square foot; c) add an additional contingency factor of five percent to cover unknown items; and d) remodel and upgrade existing 17,000-square-foot City Hall at an estimated cost of $350,000. The subcommittee estimated the total project cost to be $7,806,000 or $153.06 per square foot. He cautioned that the costs referenced are based on current construction estimates and should be increased at the rate of approximately $2 to $3 per square foot per year if this project is built at some point in the future. He explained the subcommittee was unable to establish an amount for school fees and soil cleanup costs. Mr. Spade summarized that the subcommittee's recommendation to build a 51,000-square-foot Civic Center and remodel the existing 17,000-square- foot City Hall building for the short term, for a total of 68,000 square feet, would provide adequate space through the year 2005 for administrative personnel, plus allow for the relocation of administrative employees in Customer Service, Electric Utility, and Fire Departments. John Mancasola, representing the Financing/Legal Subcommittee, noted the following individuals who served on the subcommittee: Jack McAuliffe, Chair, Don Kennedy, Randy Denham, Linda Carpenter, Dave Scott, and John Mancasola. He reviewed the subcommittee's report and findings as outlined in Appendix 5 of the Committee's Report. He stated the subcommittee examined the proposed Ten-Year General Fund Financial Plan and determined that Lease Revenue Bonds were the most appropriate means of financing debt connected with Phase I. He explained the subcommittee also determined that the General Fund would be responsible for approximately 63 percent of the project funding. The debt service burden on the General Fund, however, would vary depending on its contribution toward initial funding. He related the following sources were identified as potential sources for the initial funding: General Fund, Redevelopment Agency funds, surplus real property proceeds, surplus cash above the required reserve, Capital Projects Fund, and Civic Center set-aside funds. He explained the subcommittee did not believe it was within its province to determine the amount of initial funding available from each source. Mr. Mancasola summarized the subcommittee's recommendations as follows: 1) That the City not proceed with the development of the new Civic Center until such time as the City's 10-year General Fund Financial Plan indicates that the debt associated with the project can be serviced without reducing the General Fund reserve below five percent in any given year; 2) That the City not resort to General Fund reserve enhancement devices as a means to finance the Civic Center, but rather concentrate on expenditure reductions; 3) That the City liquidate surplus property, utilize Redevelopment Agency funds for infrastructure costs and off-site improvements, and apply such other funds as are available to maximize the initial funding and minimize the debt service required; and 4) That the City build a new 51,000-square-foot City Administration Building and utilize the existing 17,000-square-foot City Hall for as long as deemed practical. He explained the renovation of the existing City Hall is fiscally motivated. He stated the cost savings is approximately $25.00 per square foot, equating to $150,000 per year, thereby offsetting the estimated $350,000 cost of renovation. Mr. Mancasola noted the Finance Subcommittee did not believe the City's support of the museums will terminate in 1999-2000. He stated the full Committee did not consider it appropriate to take a position on whether the support should be continued, but wanted the City Council to be aware of the fiscal implications of the assumption. He also pointed out that the General Fund's Ten-Year Financial Plan, by necessity, contained a number of assumptions, each of which should be closely examined by the City Council before proceeding with any decision relative to the project. Mr. Gandy entered the Civic Center's recommendations into the record as follows: a) Do not proceed with the development of the new Civic Center until such time as the City's Ten-Year General Fund Financial Plan indicates that the debt associated with the project can be serviced without reducing the General Fund reserve below five percent in any given year; b) Do not resort to General Fund revenue enhancement 4 06/06/95 devices as a means to finance the Civic Center, but rather concentrate on expenditure reductions; c) Build a new 51,000-square-foot, two- or three-story City Administration Building west of Akard Avenue just south of the CDF parcel; d) Complete minor remodeling to the existing 17,000- square-foot City Hall and utilize this facility until such time as growth warrants further expansion and the facility is no longer considered an asset; e) Develop Phase I for construction cost not to exceed $7,800,000, including building and ancillary costs, but exclusive of the cost of financing and furnishings; f) Liquidate surplus property, utilize Redevelopment Agency funds for infrastructure costs and off-site improvements, and apply such other funds as are available to maximize the initial funding and minimize the debt service required; g) Development of Phase I should not proceed until the existing fastpitch softball field that will be encroached upon is relocated; h) That this Committee is willing to reconvene to consider and advise Council at any time should some substantial change to the Committee's recommendation be contemplated and if the Committee's name is to be associated with the project. Mr. Ward clarified that General Fund revenue enhancement devices include taxes, franchise fees, assessments, etc. In response to Council Member P. Anderson, Ms. Wells related the figure utilized for employee growth was obtained from the City Manager's Ten- Year General Fund Financial Plan. The square footage ratio of 178- square-feet per employee was utilized after reviewing other buildings and consulting with the architect on the committee. The assumption behind this figure is that the structure would have movable office structures. She concurred this is probably the most subjective figure contained in the report, however, the subcommittee wanted to be conservative. In response to Council Member Murray, Dave Scott explained that the Committee utilized $20 per square foot to reasonably upgrade the existing City Hall. He related that costs relative to sidewalks, etc. are included in the site work. He stated that the Committee did not address the need to remodel the existing City Council Chambers. In response to Council Member Murray, Mr. Spade clarified that the construction cost figure of $112.50 per square foot is a not-to-exceed cost. Council Member R. Anderson complimented Mr. Warren on the Ten-Year Financial Plan and the ability to make adjustments as circumstances change. He opined the timeline depicting debt service commencing in 1997-98 is too aggressive. He concurred with the Committee's recommendation that the reserves not drop below five percent, therefore, he recommended delaying debt service for six months, thereby achieving the recommended reserve. In response to Council Member Murray, Mr. Gandy explained the short timeline to acquire the CDF property resulted from staff advising the Committee that negotiations had begun to acquire the CDF property. Mr. Scott added the Committee was informed the property could probably be acquired on an exchange basis without requiring the outlay of cash. In response to Council Member P. Anderson, Dave Rutledge explained that Exhibit B is a conceptual plan intended to depict the amount of surplus property available on the site. Mayor Kehoe recommended that the City Council accept the Committee's report and spend further time studying it. Council Member R. Anderson asked staff to prepare a list of the required tasks from project start to finish and the associated timelines. He suggested having that information available prior to the City Council's study session on the Civic Center. Mr. Warren concurred that delaying debt service for six months achieves the desired five percent reserve. He added that if support for the museum were to continue for the next ten years, the reserve would not 5 06/06/95 drop lower than 4.7 percent. He explained the ten-year plan is contingent upon the City Council's action regarding the 1995-96 fiscal year budget. It was the consensus of the City Council to hold a special workshop to consider the Committee's report the second week in July. In response to Council Member Murray, Mr. McAuliffe related that conversations with individuals within the community indicate that the museums will not be self-sufficient in 1999 to enable them to continue the obligations they will have without General Fund support. Council Member McGeorge complimented both staff and the Committee members for working together and providing a beneficial report which will assist the City in moving forward with the Civic Center project. Council Member Murray stated the community will win because of the Committee's ability to develop a consensus report. He conveyed his appreciation to the Committee for their efforts. Council Member P. Anderson thanked the Committee for its time and the analysis put into the development of the report. Council Member R. Anderson thanked the Committee for a job well done. Mr. Warren stated it was a pleasure working with the Committee. He related that staff could not be prouder of the 25 individuals who stepped forward and saved the City thousands of dollars. He explained that the community will make this project happen. On behalf of all the City's employees, he thanked the Committee Members for their time and effort. Mr. Rutledge expressed appreciation to the City Council for looking out for the best interests of the residents of the community and allowing a group of concerned citizens to assist with the project. He emphasized that the main points, as read into the record by Mr. Gandy, were unanimously agreed upon by the Committee. Mr. Gandy expressed special thanks to the Committee Members for being able to present a report for the City Council's consideration which does not contain minority opinions. Mayor Kehoe requested the Committee members to stand and the City Council applauded their efforts. ADJOURNMENT There being no further business, at the hour of 4:17 p.m., Mayor Kehoe declared the meeting adjourned. APPROVED: ________________________________ Mayor ATTEST: ______________________________ City Clerk