CITY OF SIMI VALLEY
MEMORANDUM
J
une 13, 2022
TO
: City Council
F
ROM: Office of the City Manager
S
UBJECT: ESTABLISHMENT OF BUDGET FOR PROFESSIONAL SERVICES FOR
BUILDING IMPROVEMENT S AT THE DEPART MENT OF MOTOR
VEHICLES FACILITY, APPROPRIATE $200,000 FROM THE GENERAL FUND TO THE PUBLIC FACILITIES IMPROVEMENT FUND 655, AND
APPROVE A SUPPLEMENTAL BUDGET REQUEST
STAFF RECOMMENDATION
I
t is recommended the City Council establish a budget of $200,000 for professional services related to the building improvements to the Simi Valley DMV facility through the appropriation of $200,000 from the General Fund to the Public Facilities Improvement Fund 655, and approve a Supplemental Budget Request.
BACKGROUND AND OVERVIEW
In 198
7, the City constructed the Department of Motor Vehicles (DMV) building and subsequently entered into a lease agreement with the State for the operations of a DMV facility. Having this facility provides an amenity for the Simi Valley community and businesses. Since 1988, the City has entered into lease agreements with the State, with the current lease agreement expiring in 2016 however at the State’s request has been extended on a year -to-year basis. In May 2022, the State requested a new lease agreement between the parties be prepared . As part of a new lease, the State has requested a number of building improvements for their long-term occupancy with such improvement s completed prior to the commencement of the new lease agreement. The City’s cost for the improvements will be amortized into the new lease terms.
I
n order to begin the building improvement process, staff is requesting the City Council approve an initial budget of $200,000 for architectural costs and project management costs which requires the appropriation of $200,000 from the General Fund to the Public Facilities Improvement Fund 655, and the approval of a Supplemental Budget Request.
AGENDA ITEM NO.
Consent (6)
2 FINDINGS AND ALTERNATIVES
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ince 1988, the City and the State have entered into lease agreements for the operation of a DMV in the community. The current 10-year lease agreement was executed in 2006 and has been extended annually. In May 2022, the State requested to negotiate a new 10-year lease agreement for continued occupation of the building. As part of considering a new lease agreement, the State inspected the facility and developed a list of building improvements to be constructed by the City as landlord. Once the building improvements are completed, the City’s actual cost will be amortized into the new lease terms.
T
he State’s list of building improvements needs to be refined and developed into construction drawings and a bid package. For this work, the services of an architect will be required to develop these documents and to monitor the construction of the improvements. Once a bid package is developed, staff will put the project out to bid, returning to the City Council for an award of bid.
A
dditionally, the City will require the services of a Project Manager to work with City staff, acting as owner representative, to assist the architect in the development of the drawings and bid package, and to work with the contractor, keeping them on schedule and task.
A
t this time, staff recommends the City Council establish an initial budget of $200,000 for professional services related to this project. This amount will cover the scope of work of a Project Manager and architect throughout the project however additional funds will be needed for construction. At the time a construction contract is awarded, staff will recommend an adjust ment to the budget as necessary as part of the City Council’s consideration. The request for a new lease and building improvements arrived after the preparation of the FY 2022-23 Budget. Therefore, funding for this project is not included in the FY 2022 -23 Budget document and is therefore recommended the City Council appropriate the funding from the General Fund.
T
he following alternatives are available to the City Council:
1. E
stablish a budget of $200,000 for pro fessional services related to the building improvements to the Simi Valley DMV facility;
2. A
ppropriate $200,000 from the General Fund to the Public Facilities Improvement Fund 655, and approve a Supplemental Budget Request;
2. Establish a budget of a different amount for profes sional services related to the building improvements to the Simi Valley DMV facility;
3. Provide further direction to staff.
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taff recommends the City Council approve Alternative Nos. 1 and 2. 3 SUGGESTED CITY COUNCIL MOTION
I move to
establish a budget of $200,000 for professional services related to the building improvements to the Simi Valley DMV facility through the appropriation of $200,000 from the General Fund to the Public Facilities Improvement Fund 655, and approve a Supplemental Budget Request.
SUMMARY
In 1
988, the City constructed the Department of Motor Vehicles (DMV) building and entered into a lease agreement with the State for the operations of a DMV facility. In May 2022, the State requested to enter into a new lease agreement for the building. As part of a new lease, the State has requested a number of building improvements for their long- term occupancy with such improvement completed prior to the commencement of the new lease agreement. Once the building im provements are completed, the City’s actual cost will be amortized into the new lease terms. In order to begin the building improvement process, staff is requesting the City Council approve an initial budget of $200,000 for architectural costs and project management costs, approve the appropriation of $200,000 from the General Fund to the Public Facilities Improvement Fund 655, and approve a Supplemental Budget Request.
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Brian Paul Gabler
City Manager