PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.C
SUBJECT/TITLE:
PUBLIC SAFETY FACILITY PROJECT BUDGET
RECOMMENDATION:
Adopt a Resolution appropriating revenue and expenditures for the Public Safety Facility construction and construction-related costs and for the temporary relocation of resources and business continuity of services in Fiscal Years 2024 and 2025.
BACKGROUND:
The City Council set one of the City’s Goals as Maintain a Focus on Public Safety. One of the priorities under this goal is to build a state-of-the-art Public Safety Facility and enhance Police presence in the downtown area. On July 18, 2023, the City Council adopted Resolution R-2023-049 awarding a design-build agreement with F&H Construction for the design and construction of the Public Safety Facility. The full amount of this agreement has not yet been budgeted. In addition, during the estimated 18 to 24 months of construction of the Facility, both the Police Department and Fire Department staff will need to temporarily relocate. In order to keep Police and Fire staff in the downtown area where their services are most needed and still maintain current operations and services to the public, several other City staff, services, and related equipment and infrastructure will need to be relocated as well. The Resolution provided as Attachment 1 appropriates the full amount of the Public Safety Facility construction and construction- related costs, including pay-as-you-go support and bond proceeds; and appropriates the estimated relocation/business continuity costs associated with the temporary relocation of staff, services, and related equipment and infrastructure.
Public Safety Facility Construction and Construction-Related Costs and Budget The estimated Public Safety Facility construction and construction-related costs are expected to cost $50,396,809 starting in Fiscal Year (FY) 2024, as shown in Table 1.
Table 1: Estimated Public Safety Facility Construction and Related Costs Soft Costs FY 2024
Contingency 3,000,000
Permitting Connection Fees 1,500,000
Construction Management 1,038,462
IT Equipment 750,000
Hazmat/Survey/Abatement 250,000
Plan Check 491,897
Inspection/Special Inspection 1,000,000
Total Soft Costs 8,030,359$
Construction Cost 42,366,450
Total Estimated Project cost 50,396,809$
12.C-1Council Agenda 10-17-2023
The estimated temporary relocation/business continuity budget is $2,226,912.66. This includes $2,153,912.66 of FY 2024 one-time costs and an ongoing cost of $24,000 in FY 2024 and FY 2025. It also includes $25,000 for the Request for Proposal (RFP) stipend that is given to the firm that was not selected to design and construct the Facility, for their efforts on putting together a design-build proposal for the Public Safety Facility. These estimated temporary relocation/business continuity costs are illustrated in Table 2. The largest components of the temporary relocation costs include:
Professional services, which includes plan check and review, IT project management, and engineering professional services totaling $665,130. Capital outlay for building costs, which includes purchasing storage containers; infrastructure improvements to City Hall Suite A-1 for Police administrative and support staff; and improvements and trailers at 320 and 330 Main Street. Equipment rentals, which includes the rentals for three modulars/trailers at 330 Main Street.
Capital outlay for radio, servers, and security, which includes security cameras, installation, and wiring; radio consolidation and migration; Police network and server equipment; and wi-fi.
Table 2: Estimated Temporary Relocation/Business Continuity Costs and Stipend The total estimated expenditures, including both the construction and construction-related costs and the relocation/business continuity and stipend costs, are $52,575,721.85 in FY 2024, and $52,623,721.85 over three years.
FY 2024 Current Public Safety Facility Budget
The FY 2024 Current Public Safety Facility Budget includes $17,741,746.48 of revenues and corresponding expenditures, as shown in Table 3. As such, there is a budget shortfall of $34,833,975.37 in FY 2024, and $24,000 in both FY 2024 and FY 2025, as shown in Table 4.
RFP Stipend 25,000.00$
Estimated Relocation/Business
Continuity Costs FY 2024 FY 2025 FY 2026 Total
Professional Services 665,130.00$ -$ -$
Internet 31,200.00 24,000.00 24,000.00
Operating Supp & Maint.115,680.00 - -
Equipment Rental 318,156.18 - -
Cap Outlay - Radio, Servers, Security 282,000.00 - - Capital outlay - building 507,623.00 - -
Capital outlay - building contingency 234,123.48
Total Relocation Costs 2,153,912.66$ 24,000.00$ 24,000.00$ Subtotal Estimated Stipend and
Relocation/Business Continuity costs 2,178,912.66$ 24,000.00$ 24,000.00$ 2,226,912.66$
12.C-2Council Agenda 10-17-2023
Table 3: FY 2024 Current Public Safety Facility Budget
Table 4: Estimated Budget Shortfall
In order to close the budget shortfall, staff recommends appropriating the following additional sources and uses in the Capital Projects Fund for all costs except the internet costs, which would be appropriated in the Technology Services Fund, with transfers from other funds, in FY 2024 and FY 2025 as shown in Table 5. The additional sources include $24,117,775.37 of bond proceeds, $4,435,000 from the General Fund from the TOT 1% set-aside for FY 2023 to FY 2025; $2.0 million from the General Fund Reserve; $4.0 million from the Parking Enterprise Fund, and $250,000 from the Development Impact Fee fund. FY 2026 appropriations will need to be included in the next two-year budget.
Budget FY 2024
Sources
Bond Proceeds 17,000,000.00$
PAYG - General Fund Fund balance transfer 741,746.48
Total Current Budgeted Sources 17,741,746.48$
Uses
Construction 17,000,000.00$
Relocation 56004 account 741,746.48
Total Current Budgeted Expenditures 17,741,746.48$
Expenditure Budget Shortfall FY 2024 FY 2025 FY 2026
Construction (33,396,809.19)$
RFP Stipend (25,000.00)
Professional Services (665,130.00)
Internet (31,200.00) (24,000.00) (24,000.00) Operating Supp & Maint.(115,680.00)
Equipment Rental (318,156.18)
Cap Outlay - Radio, Servers, Security (282,000.00)
Capital outlay - building -
(34,833,975.37)$ (24,000.00)$ (24,000.00)$
12.C-3Council Agenda 10-17-2023
Table 5: Proposed Incremental Funding Plan and Appropriations Conclusion and Recommendation
Staff recommends that Council adopt a Resolution (Attachment 1) appropriating revenues and expenditures for the Public Safety Facility construction and construction- related costs and for the temporary relocation/business continuity of staff in Fiscal Years 2024 and 2025.
FISCAL IMPACT:
The fiscal impact of approving the attached Resolution is an additional $34,833,975.37 of revenues and expenditures in FY 2024, with $34,802,775.37 in the Capital Projects Fund and $31,000 in the Technology Services Fund. This is supported by:
$24,117,775.37 of bond proceeds,
$4,435,000 from the General Fund;
$2,000,000 from the General Fund Reserve;
$4,000,000 from the Parking Enterprise Fund; and
$250,000 from the Development Impact Fee Fund.
In FY 2025, the fiscal impact is $24,000 and would be budgeted in the Technology Services Fund, supported by the General Fund.
Funding Plan
Sources FY 2024 FY 2025 FY 2026
Bond proceeds 24,117,775.37$
Set-Aside TOT 1% in FY 2023 to FY 2025 4,435,000.00
General Fund Reserve 2,000,000.00
Parking Enterprise Fund 4,000,000.00
Development Impact Fees 250,000.00
General Fund unassigned fund balance 31,200.00 24,000.00 24,000.00 Total Revenue Appropriations 34,833,975.37$ 24,000.00$ 24,000.00$ Uses FY 2024 FY 2025 FY 2026
Construction 33,396,809.19$
RFP Stipend 25,000.00
Professional Services 665,130.00
Internet 31,200.00 24,000.00 24,000.00
Operating Supp & Maint.115,680.00
Equipment Rental 318,156.18
Cap Outlay - Radio, Servers, Security 282,000.00
Total Expenditure Appropriations 34,833,975.37$ 24,000.00$ 24,000.00$
12.C-4Council Agenda 10-17-2023
ALTERNATIVES:
1. Do not adopt the Resolution.
2. Provide staff with alternative direction.
ATTACHMENTS:
1. Resolution
1.A Exhibit A: Budget Detail
Submitted by: Meeting Date: October 17, 2023
Nadia Feeser, Administrative Services Director
City Manager Approval:
12.C-5Council Agenda 10-17-2023
RESOLUTION NO. R-2023-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA APPROPRIATING REVENUE AND EXPENDITURES FOR THE
PUBLIC SAFETY FACILITY CONSTRUCTION AND CONSTRUCTION-RELATED
COSTS AND FOR THE TEMPORARY RELOCATION OF RESOURCES AND BUSINESS CONTINUITY OF SERVICES IN FISCAL YEARS 2024 AND 2025 WHEREAS, the City Council has exemplified its commitment to the safety of the public by creating the City Goal: "Maintain a Focus on Public Safety"; within the purview of this goal, one of the foremost priorities is to build a state-of-the-art Public Safety Facility and enhance Police presence in the downtown area; and
WHEREAS, in pursuit of this goal, on July 18, 2023, the City Council adopted Resolution R-2023-049 awarding a design-build agreement with F&H Construction for the design and construction of a new Public Safety Facility, the full amount of which agreement has not yet been budgeted; and
WHEREAS, the construction phase of the Facility, spanning an estimated 18 to 24 months, necessitates the temporary relocation of both Police and Fire Department personnel; and
WHEREAS, to maintain current service levels to the public and ensure Police continued presence in the downtown area and, where their services are most vital, this entails the relocation of various other City personnel, services, equipment, and infrastructure.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby appropriates the following revenues and expenditures by fiscal year and fund, and appropriates any related transfers between funds, and detailed in Exhibit A to support the full amount of the Public Safety Facility construction and construction-related costs and the temporary relocation/business continuity of operations of the City:
Fund Sources FY 2024 FY 2025
Capital Projects Fund Bond proceeds 24,117,775.37$
Capital Projects Fund Set-Aside TOT 1% in FY 2023 to FY 2025 4,435,000.00 Capital Projects Fund General Fund Reserve 2,000,000.00 Capital Projects Fund Parking Enterprise Fund 4,000,000.00 Capital Projects Fund Development Impact Fees 250,000.00 Technology Services Fund General Fund unassigned fund balance 31,200.00 24,000.00 Total Revenue Appropriations 34,833,975.37$ 24,000.00$ Attachment 1
12.C-6Council Agenda 10-17-2023
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 17th day of October 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Fund Uses FY 2024 FY 2025
Capital Projects Fund Construction 33,396,809.19$
Capital Projects Fund RFP Stipend 25,000.00
Capital Projects Fund Professional Services 665,130.00
Technology Services Fund Internet 31,200.00 24,000.00 Capital Projects Fund Operating Supp & Maint.115,680.00 Capital Projects Fund Equipment Rental 318,156.18
Capital Projects Fund Cap Outlay - Radio, Servers, Security 282,000.00 Total Expenditure Appropriations 34,833,975.37$ 24,000.00$ Attachment 1
12.C-7Council Agenda 10-17-2023
Fund Account Description FY 2024 FY 2025
General Fund 1001-30-301-3022-59301-181026 Transfer Out Cap Project 4,435,000.00 General Fund 1001-30-301-3022-59301-181026 Transfer Out Cap Project 2,000,000.00 Development Impact Fee Fund 3201-30-301-3022-59301-181026 Transfer Out Cap Project 4,000,000.00 Parking Enterprise Fund 6501-30-301-3022-59301-181026 Transfer Out Cap Project 250,000.00 Capital Projects Fund 3001-30-301-3022-49001-181026 Bond Proceeds 24,117,775.37 Capital Projects Fund 3001-30-301-3022-49101-181026 Transfer In General Fund 4,435,000 Capital Projects Fund 3001-30-301-3022-49101-181026 Transfer In General Fund 2,000,000 Capital Projects Fund 3001-30-301-3022-49651-181026 Transfer In Parking Enterpris 4,000,000 Capital Projects Fund 3001-30-301-3022-49321-181026 Transfer In DIF 250,000 Capital Projects Fund 3001-30-301-3022-56004-181026 Capital Outlay-Building 33,396,809.19 Capital Projects Fund 3001-30-301-3022-52101-181026 Professional Services 690,130.00 Technology Services Fund 7101-15-153-1531-52219-000000 Internet 31,200.00 24,000.00 Capital Projects Fund 3001-30-301-3022-52306-181026 Operating Supp & Maint. 115,680.00 Capital Projects Fund 3001-30-301-3022-52315-181026 Equipment Rental 318,156.18 Capital Projects Fund 3001-30-301-3022-56002-181026 Cap Outlay Computers 282,000.00 Technology Services Fund 7101-10-101-1011-46401-000000 IT Service Charges 31,200.00 24,000.00 General Fund 1001-21-211-2111-52412-000000 Technology Costs 31,200.00 24,000.00 Attachment 1.A
12.C-8Council Agenda 10-17-2023