DATE:
December 17, 2024
CATEGORY:
Unfinished Business
DEPT.:
Public Works
TITLE: Public Safety Building, Project 20-49—
Project Scope Revisions
RECOMMENDATION
1. Approve the revised project scope which reduces the size of the parking garage and shooting range and incorporates a phased approach for the shooting range.
2. Approve a Public Art Budget decrease from $1 million to $500,000.
BACKGROUND
The existing Police and Fire Administration
facility opened in 1980 and houses fixed
Police Department operations, Emergency
Dispatch, the Fire Chief and Deputy Fire Chief,
support staff, and the Emergency Operations
Center. The building was designed prior to
the Essential Service Seismic Safety Act of
1986 and does not meet current seismic
standards for such structures.
The project would replace the existing facility
with a completely new one on the same site.
The proposed Public Safety Building Project
would be located at 1000 Villa Street , at the
corner of Villa Street and Franklin Street , in
the Public Facility Z oning District ( see
Figure 1). The 4.3-acre site is occupied by the
City’s current approximately 44,000 square
foot Police/Fire Administration Building and
associated site improvements.
“CITY
LOT 11”
Figure 1: Location Map
Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
On June 27, 2023 Council reviewed the Public Safety Building’s conceptual design and directed staff to bring the project back to Council with information on:
1. Accommodating the expected population for the building 40 to 50 years from now, and, if needed, provide more building space through the addition of another floor, another building on the remnant parcel, or other alternative.
2. Adding a second egress from the garage.
3. Adding a shooting range on the parcel.
4. Maintaining the corner of Villa Street and Franklin Street as a welcoming space for community activities.
5. Ensuring the building engages with the street.
6. Architectural changes that provide for natural light and is welcoming but also emulate the permanence and presence of the City Hall and Center for the Performing Arts buildings.
Additionally, Council also included that staff be granted discretion to recommend elements that would not substantially delay the project or increase its cost.
On December 5, 2023
, Council approved the following (see Figure 2):
• Increasing the Public Safety Building size to approximately 75,000 square feet, providing sufficient capacity for future growth;
• Adding a second egress from the garage;
• Adding a fully enclosed shooting range to the top of the parking structure;
• Increasing the expanded outdoor event space outside the auditorium; and
• Increasing the number of public parking spaces to 33.
Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
Project Elements:
1. 75,000 square foot building
2. Corner public entry plaza
3. Public event plaza
4. Public parking
5. Second public safety vehicle
access
6. Secure staff parking structure
7. 15-lane shooting range (top
level)
8. Secure staff surface parking
9. K9 training area
10. Future City use (0.6 acre)
The cost to design and construct
the above scope was estimated to
be approximately $204 million ,
assuming that construction
commenced by fall 2025.
Council also selected Civic-Americana as the architectural design for the building (see Figure 3) and approved an increase of the public art budget from $400,000 to $1 million.
Staff indicated they would return to Council for consideration of the recommended architectural concept design of the parking garage, California Environmental Quality Act (CEQA) clearance, and Heritage tree removals and mitigation plan.
Figure 2: Conceptual Site Plan
Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
Figure 3: Civic-Americana Architectural Style
On June 25, 2024, Council adopted Resolution No. 18908 to place a revenue measure (Measure G) on the November 2024 ballot and other related actions to secure additional funding for the Public Safety Building project as well as other Citywide priority funding needs, if approved by voters.
On September 10, 2024
, Council adopted Resolution No. 18924 establishing programmatic goals and spending priorities , among other related elements, for general tax revenue generated by Measure G funds with the following allocation:
• 35% to 40% of the revenue for public safety facilities;
• 30% to 35% for parks, open space, and biodiversity;
• 20% to 25% for affordable housing; and
• 5% to 15% for other government services (road maintenance, small business support, homelessness prevention, active transportation, and work force development).
On November 5, 2024, the voters overwhelmingly passed Measure G , with over 72% voting in favor of creating an additional tier to the existing property transfer tax for transactions over $6.0 million.
Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
ANALYSIS
Initial Funding Plan
With the passage of Measure G, an additional important revenue source has been secured for the Public Safety Building Project. The estimated additional annual revenue generated by Measure G is approximately $9.5 million, on average, of which approximately $4.0 million can be dedicated toward debt service annually.
Additional funding for this project includes revenue from a long -term ground lease for 750 Moffett Boulevard, commonly referred to as the Ameswell Hotel project, and earmarked by Council in 2018, along with Transient Occupancy Tax, property tax, and sales tax generated from the hotel property. These revenue sources from the Ameswell project currently provide approximately $4.1 million in annual revenue , with the potential for nominal increases in the future. Since inception of the partnership in 2018, the revenue has been maintained in a reserve and has a current fund balance of approximately $19.5 million and is anticipated to be $23.5 million as of June 30, 2025.
By allocating $4.0 million in potential Measure G annual revenue and the $4.1 million in annual revenue from the Ameswell project, a total amount of $8.1 million annually is potentially available to finance this project.
In consultation with the City’s Municipal Financial Advisor (Urban Futures) , it is estimated that approximately $8.1 million in annual revenue could service approximately $135.0 million in bond proceeds, at current market rates. It is important to note that the actual bond proceeds will be a function of market conditions at the time of issuance . The estimated bond proceeds in conjunction with the anticipated Ameswell reserve fund balance provide an initial project fund balance of $1 58.5 million . In conjunction with those proceeds , $2.0 million in Construction/Conveyance Tax ha s already been appropriated in Project 20 -49, bringing total initial project proceeds to $160.5 million, as illustrated in Table 1.
Table 1: Initial Project Funding Plan
Annual
Revenue Totals
Measure G and Ameswell Revenue $8.1 M $135.0 M
Public Safety Building Accumulated Reserve 23.5 M
Construction/Conveyance Tax 2.0 M
Initial Project Funding $160.5 M
In addition to this initial funding, staff will explore additional funding sources, such as Construction/Conveyance Tax and CIP Reserve Funds, to supplement the funding by Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
approximately an additional $ 28.5 million. With the two dedicated revenue source s, accumulated reserves to date , additional funding sources, and recommended revised project scope identified below, staff believes a suitable financing plan can now be achieved with minimal anticipated impact to the General Fund. Staff is currently working with the financial advisor to assemble a financing team ( Bond Counsel, Disclosure Counsel, Underwriter, Trustee) and anticipate returning to Council in May/June 2025 with a final debt issuance and project financing plan for Council’s consideration.
Recommended Revised Project Scope
The original project scope includes a 75,000 square foot Public Safety Building, a four- story parking structure, and a fully operational shooting range on top of the parking structure at an estimated cost of $210 million . The projected budget for this project will be insufficient to construct the project without changes to the approved project scope. Staff has evaluated various alternatives to maintain a majority of the existing scope while identifying reductions to reduce costs, along with continuing to meet Police and Fire Departments’ public safety operational needs. No changes are proposed to the scope or specifications of the Public Safety Building , including meeting LEED building requirements . This element of the project will proceed as originally approved by Council. A djustments to the parking structure and shooting range will allow the project to remain within budget while allowing for a phased completion in the future.
Parking Structure
The revised scope reduces the parking structure from four stories to three stories. The three stories provide 168 parking spaces and storage/utility rooms. This configuration will meet all essential needs, including a period of growth, while controlling costs. The total project parking count with the reduced scope will be at least 244 spaces (original scope was 320 spaces), 87 more than the existing facility (see Figure 4).
Shooting Range
The shooting range will be constructed as a “cold shell” on top of the parking structure and reduced to accommodate between eight and 10 shooting lanes. A cold shell means that only the structural framework and external weatherproofing will be completed at this time ; effectively, just the exterior walls and the roof of the shooting range . Interior build-out, including heating, ventilation, and air conditioning (HVAC), electrical, interior finishes, and operational systems , would be completed as a future Capital Improvement Program (CIP) project . The timing of the project would be dependent on available funding and is currently uncertain. The cold shell would not be operational or available for use due to the missing interior improvements needed. While the future interior project would result in higher final costs than if constructed with the initial phase, this allows the shooting range to be designed and substantially constructed with the main structural elements and provides for intent to complete the project at a future date.
Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
Figure 4: Revised Project Scope
PARKING COUNT
Secure Parking—Staff Area 1 42
Secure Parking—Staff Area 2 168
Total Staff Parking 210
Public Parking 34
Total On-Site Parking 244
Franklin Street
Villa Street
Oak Street
Shoreline Blvd.
W. Evelyn Avenue
PUBLIC
SAFETY
BUILDING
SHOOTING RANGE
8-10 LANES
Public Parking
34 Staff Area 2
168
FUTURE
CITY USE
Staff Area 1
42 PARKING STRUCTURE
Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
If Council approves the recommended scope reductions , the total project costs will be reduced by as much as $21 million, bringing it line with the funding plan.
Table 2: Revised Total Project Cost
Project Estimate $210 M
Cost Reduction 1: Three-Story Parking Structure (7 M) Cost Reduction 2: Cold Shell Shooting Range (14 M)
Revised Project Estimate $189 M
The revised scope for the parking structure, with a reduced capacity and an unfinished (cold shell) shooting range, provides significant cost savings in the short term. Staff will return to Council with updated estimates and funding options as part of the next design stage and project development process.
Alternate Scope Revision
Staff also evaluated an alternative scope that phases construction of both the parking structure and shooting range as part of a future phase. While this further reduces the initial project costs, this is not recommended due to the staff- recommended revised scope meeting the operational needs of the Police and Fire Departments . In addition, a full-phased approach would result in higher future costs due to cost escalation.
Public Art
At the December 5, 2023 Council meeting, staff identified public art would be installed between the sidewalk and building along Villa Street and would be in addition to public art inside the building and a possible focal art piece in the corner public entry plaza and/or outdoor public event plaza. The public art budget for the building based on Council Policy K -5 is $400,000, and to provide for the scale of art previously outlined, Council approved staff’s recommendation to increase the public art budget to $1 million for the project.
Due to the revisions to the scope needed to align with the funding plan , a reduced public art budget of $500,000 is recommended. This amount is higher than the amount identified in Council Policy K-5 while providing for additional reductions to the overall project budget. The $500,000 is incorporated into the $189 million project costs previously outlined. Staff will review art options with the Visual Arts Committee to identify art elements to prioritize for the project. Staff will return to Council for consideration of the recommended art.
Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
NEXT STEPS
Upon approval of the revised project scope, the design team will commence design development and final design to further develop the architectural and engineering designs as well as more detailed landscape and site development.
Given the complexity of the phasing and scale of this project, specialized construction management is required at all phases of the project life cycle. Staff will return to Council in early 2025 to seek Council’s approval to engage a qualified Construction Management (CM) firm to provide essential preconstruction, construction management, LEED, and commissioning services.
Staff will also return to Council in early 2025 for Council’s consideration of the parking garage’s architectural concept design and at the end of 2025 for CEQA clearance, public art, and approval of recommended Heritage tree removals and mitigations.
FISCAL IMPACT
Public Safety Building, Design, Project 20 -49, is funded with $2 million from the Construction/Conveyance Tax Fund.
At the completion of schematic design, staff will return to Council to request an appropriation for the final design and for approval to amend the design agreement with the architect to add funding for final design. No additional appropriation is being requested at this time.
Construction of the project is not currently funded but is included as a Fiscal Year 2025-26 project with a placeholder budget of $132 million of unidentified funding in the planned Five-Year (Fiscal Year 2023-24 through 2027-28) CIP. A comprehensive funding plan will be further developed and brought back to Council in May/June 2025 for approval.
The revised scope for the Parking Structure, with a reduced capacity and an unfinished (cold shell) shooting range, provides significant cost savings for the project.
If the project is approved for $189.0 million project scope, an additional amount of $28.5 million in new funding will need to be appropriated prior to entering into a construction agreement.
LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $250 from a party, participant, or agent of a party or participant in the proceeding within the last 12 months. A city official is similarly prohibited from accepting, soliciting, or directing a campaign contribution exceeding $250 from a party, particip ant, or agent of a party or participant to any proceeding involving a Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
license, permit, or other entitlement for use for 12 months after a final decision is rendered in said proceeding.
Please refer to the “X” in the checklist below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.
SUBJECT TO THE LEVINE ACT
___ Land development entitlements
___ Other permit, license, or entitlement for use
___ Contract or franchise
EXEMPT FROM THE LEVINE ACT
___ Competitively bid contract
___ Labor or personal employment contract
_x_ General policy and legislative actions
For more information about the Levine Act, please see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to-play-limits-and-prohibitions.html .
CONCLUSION
The project costs exceed the available funding expected, and staff has identified scope revisions reducing the overall project costs. These revisions include a reduced parking structure and a “cold shell ” shooting range on top of the garage. In addition, a reduced public art budget provides for additional cost savings while still exceeding the amount set forth in Council Policy K-5. The recommended revisions to the project scope meet the functional requirements of the project and operational needs of the Police and Fire Departments.
Approval of the revised
scope allows the project to proceed with a $189 million total project cost limit while maintaining for future build-out and outfitting of the shooting range. This approach ensures essential public safety services components are in place with flexibility for completing the s hooting range at a future date.
ALTERNATIVES
1. Do not approve the revised project scope or public a rt budget and direct staff to revise other project scope elements.
2. Provide other direction.
Public Safety Building, Project 20-49—Project Scope Revisions December 17, 2024
PUBLIC NOTICING
Agenda posting and mailers to residents and property owners within a 750’ radius of the project boundaries. This item was also shared on the City’s website.
Prepared by:
Naveen Govind
Senior Project Manager
David O. Printy
Principal Project Manager
Reviewed by:
Edward Arango
Assistant Public Works Director/
City Engineer
Approved by:
Jennifer Ng
Public Works Director
Arn Andrews
Assistant City Manager
Michael Canfield
Police Chief
Juan F. Diaz
Fire Chief
Kimbra McCarthy
City Manager
NG-DOP/LL/6/CAM
933-12-17-24CR
203967