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10.a. Police Station ProjectMEMORANDUM CITY COUNCIL TO: FROM: TERESA MCCLISH, DIRECTOR OF COMMUNITY DEVELOPMENT STEVEN ANNIBALI, POLICE CHIEF SUBJECT: CONSIDERATION OF STATUS REPORT FOR POLICE STATION PROJECT DATE: AUGUST 14,2012 RECOMMENDATION: It is recommended the City Council direct staff to; 1) proceed with preparation of a feasibility study on the listed alternatives; and 2) authorize $25,000 for the study. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The estimated cost for further study for a replacement building is $25,000. An existing contract with the architect is in place. There is currently $1 11,000 remaining in the balance of tax increment funds budgeted for the Police Building project architectural services. However, the State has taken these revenues and whether they will be returned is unknown at this time pending efforts to resolve the issue. Therefore, the study may need to be funded from existing Local Sales Tax funds. 'There is currently a balance of approximately $678,000 in the Capital Improvement Program from Local Sales Tax funds for this project. Staff has prepared a preliminary analysis on funding that could be generated for the project from existing sources with no bond measure. The current 5-Year Plan for Local Sales Tax funds has programmed an average of $166,000 annually for this project. Staff is basing projected revenue on an assumption that funding could be generated through the United States Department of Agriculture (USDA) community facilities loan program based on a 30-year term for a new facility and 20-year term for upgrade of the existing facility. There are no restrictions on the term, but staff would not recommended a 30-year term for a renovation project because the improvements may not meet the City's needs for over a 20-year period. At this time, the future availability of USDA funding is unclear. Therefore, funding projections would be impacted if alternative financing with a higher interest rate becomes necessary. It is also assumed that revenue from the sale of three lots on Old Ranch Road would be used toward the Police Station upgrade. This would be a policy decision by the City Council if the Recreation Center project proceeds. The original intent was for the revenue to go towards that project, but no formal decision or commitment was ever Item 10.a. - Page 1 CITY COLlNClL CONSIDERATION OF STATUS REPORT FOR THE POI-ICE STATION PROJECT AUGUST 14,2012 PAGE 2 made. Revenues are conservatively estimated. Actual revenue could be higher for these lots, as well as sale of the existing station, if appraised value is obtained through the sale. Estimates on sale of the existing station property are very conservative because little is known on the ability to find a buyer. The following are preliminary revenue projections for options proposed for study: Immediate Repairs Existing Local Sales Tax Funds Upgrade and Expansion of Existing Buildinq Existing Local Sales Tax Funds USDA 20-Year Financing Sale of Land Total Joint Development on Proposed West Branch Street Site Existing Local Sales Tax Funds $678,000 USDA 30-Year Financing $3,000,000 Sale of Land $2,800,000 Total $6,478,000 The project will result in substantial staff time. However, it is identified as a priority in the City's Critical Needs Action Plan. BACKGROUND: The Police Department does not have adequate space for all personnel to perform necessary functions. The Police Station on North Halcyon Road was acquired from the phone company in 1973 and was last expanded in 1989. Staffing has grown to 36 full-time and 20 part-time employees from 12 full-time and 6 part-time since the facility began use as the Police Station and from 28 full-time and 15 part-time since the facility was last expanded. Key needs include space for the detective unit, the addition of an emergency operations center to coordinate citywide incident response activities in the event of a disaster, evidence storage, an adequate area to house computer equipment, and expansion of the dispatch center. The City placed a bond measure on the June 2010 and June 2012 ballots to help fund a new station at West Branch Street and Rodeo Drive, and West Branch and Old Ranch Road, which were both narrowly defeated. 'The Rodeo property has subsequently been determined as necessary to accommodate the proposed Brisco Interchange improvements. The Old Ranch Road property is still an alternative with different funding implications. Item 10.a. - Page 2 ClN COUNCIL CONSIDERATION OF STATUS REPORT FOR THE POLICE STATION PROJECT AUGUST 14,2012 PAGE 3 Staff has previously reviewed strategies for remodeling the existing station, as well as constructing a replacement building. Sites for a replacement building were reviewed by the City Council at the May 24,201 1 and January 24lFebruary 14,2012 meetings. Sites have included: 1) an existing office building at 1303 East Grand Avenue; 2) a portion of the NKT vacant property at Courtland Street and East Grand Avenue; 3) the City-owned West Branch Street and Old Ranch Road property; and 4) a joint operation with the City's corporation yard at 4375 Ash Street. ANALYSIS OF ISSUES: Given budget constraints and lack of support to refinance existing bonds, staff has identified available alternatives for further study. Staff is seeking direction on alternatives to include in the feasibility study, as well as other potential ideas the Council would like included. Alternative A: Immediate Repairs. This alternative would allow staff to proceed with immediate repairs to the existing Police Station Building, while working on plans to address long-term needs. Some of the deficiencies of the existing station are due to the age of the structure and need for repairs. The most urgent issue is the need to replace the roof and wall section of the south side of the building prior to this winter season. The existing roof leaks to the extent that it may impact structure safety. Additionally, in response to recent Grand Jury findings regarding the provision of area for evidence storage, Police staff has identified a potential area for secure and sufficient evidence storage space by converting existing holding cell space that is rarely used. Suspects are currently transferred to a San Luis Obispo County Facility for holding, and continuation of this practice is anticipated which would allow permanent conversion of the holding-cell space to accommodate evidence storage. This alternative provides the minimal amount of work in order to provide necessary maintenance of the building. If directed, design and work could begin immediately. It is recommended to delay improvements until completion of the study because the roof and HVAC design may be impacted by some of the alternatives. ~lterilative B: Remodel for short to mid-term improvements at existing site. 'This alternative would require additional study prior to bringing forward any cost estimates. This alternative would include all the work in Alternative A, but also include other interior modifications including enclosure of sally-port to create storage or add some additional room for emergency operation center expansion, electrical upgrades and area for secure computer equipment, an addition at the north side of the existing site to provide area to house detectives and administrative staff, remodeled locker rooms and outside storage containers. While this alternative does not meet all identified needs, it would provide opportunity for significant operational improvements for the near term. Costs for this alternative would depend on final design and could vary substantially. Design would begin immediately; however, Item 10.a. - Page 3 CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE POLICE STATION PROJECT AUGUST 14,2012 PAGE 4 roofing would be delayed so that it could be completed in conjunction with the remodel. Alternative C. Purchase adjacent land and expand the Police Station at the existing location. The original cost estimate of expansion of the existing-station was $7.5 million so any plan would have to be substantially downscaled and will not address all needs. This alternative would also require additional study prior to bringing forward any cost estimates. This Alternative would likely include most components of Alternative B, but would allow expansion to meet longer term needs, including parking. There are four different potential expansion variations: Expand to include the VCA property to the north and work around the existing grove of eucalyptus trees onsite. The existing acreage for the City owned property is approximately 0.6 acres. The VCA property would add approximately 0.3 acres, but only a portion (approximately .22 acres) would be available if the existing grove of trees is preserved. Since the north end of the VCA property is triangular in shape and narrow, staff recorr~mends that a portion of this area be designed as a pocket park with use of Park Funds. Expand to include the VCA property to the north and remove some, or all, of the existing grove of eucalyptus trees onsite, which would allow more efficient use of the interior portion of the parcel. An additional variation for this alternative would be to abandon a portion of Rena Street to add approximately 0.15 acres. This would bring the total available acreage to just under 1 acre. The portion of Rena Street that would be converted to a drive alley fronts three residential lots. However, only the lot in the interior of the block would be accessed by the drive alley. Therefore, it may need to be acquired. Expansion of the property to the south would add an additional half acre. This scenario would provide 1.1 acres. Both expansion areas have odd lot configurations that make it more challenging and more expensive to design for a Police Station that would serve for the long term. It would be challenging but not impossible to accommodate any future police consolidation potential in this Alternative. Alternative D. Construction of a new station on a portion of the Old Ranch RoadMI. Branch St. site in conjunction with a privatelpublic partnership. This alternative would require additional study for feasibility only prior to bringing forward any cost estimates. This is the site of the previously approved 53,000 sq. ft. Recreation Center. The City Council previously approved a lease and development agreement with the Five Cities Community Services Foundation ("Foundation") to construct a recreation center to be funded through their private fundraising efforts. A feasibility study prepared by the Foundation has raised questions regarding the Item 10.a. - Page 4 CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE POLICE STATION PROJECT AUGUST 14,2012 PAGE 5 ability to fund the scale of project proposed. To address and increase the feasibility of both projects, the concept included a joint police building and scaled down recreation facility which was the concept placed on the June 2012 ballot. The City Council also approved an amendment to the lease to modify the area provided for the recreation center, as well as the MOU to amend the development agreement. However, the bond measl-ire failed and if the City does not approve other funding for the project to proceed by December 31, 2012, the development agreement and lease will revert back to the existing terms for the Foundation to continue pursuit of the recreation center project as currently entitled. The 5-acre property is currently vacant and it is zoned Public Facility (PF), which allows police facility uses with approval of a conditional use permit (CUP). The bulk of the property is relatively flat. This is conducive to development of a single-story Police Station and all required parking (both public and secured) that would provide the Police Department with a new facility that addresses identified deficiencies of the current facility. The Police Station would utilize approximately half of the site for a 1-story 14,500 s.f. building. Should the Foundation choose not to pursue any facility at this site, Alternative D would include the sale of the other half of the site for commercial development. The site is proximate to the freeway and would offer good visibility for commercial retail or visitor-serving uses. This scenario would potentially allow construction of a police facility through a privatelpublic partnership that would facilitate rezoningland a project with reduced construction costs. However, this alternative would be dependent on the County of San Luis Obispo lifting or moving all or a portion of the existing deed restriction on the property that restricts it to public facility use. Staff met with representatives of the Five Cities Foundation to discuss status of the .property. They are still studying ways in which to proceed with the Recreation Center, but were not opposed to the City studying other alternatives for the site involving development of a police station. Alternative E. Sell the Old Ranch RoadMI. Branch St. site and use the revenue to develop a police station on an alternative site. This could involve purchaselremodel of an existing building or construction at an alternative site, such as the 1375 Ash Street site, which is currently used exclusively as the City's corporation yard. This alternative would require additional study prior to bringing forward any cost estimates. The construction cost estimates for a new station at the Ash Street site were higher than W. Branch and Old Ranch Road. There are three existing structures and various site improvements that would need to be removed as required for new construction and some existing corporation yard facilities will have to be rebuilt in order to accommodate both corporation yard and police facility uses on the property. The project description included: Item 10.a. - Page 5 CITY COUNCIL CONSIDERA'I'ION OF STATUS REPORT FOR THE POLICE STATION PROJECT AUGUST 14,2012 PAGE 6 1. Maintenance Building (approx. 10,500 square feet.), 2-Story 2: Police Station Facility (approx. 15,000 square feet), 2-Story 3. Storage Building (approx. 8,000 square feet), 2-Story 4. Hazmat Storage Building (approx. 1,200 square feet), I-Story 5. Parks & Recreation Covered Storage (approx. 3,000 square feet), I -story 6. Associated site improvements. -. The Ash Street site proposal would have to be reduced in scope in order to be a viable alternative within the identified budget. It also does not provide a centralized location. The current real estate market has a low inventory of properties available and staff has not identified any other available buildings that would provide for the needs of the Police Station within the available budget. However, this alternative remains a viable option should a building become available in the near future. Lease options in addition to land purchase may be an option to pursue for this alternative. The County's removal of the deed restriction may be more difficult under this scenario since there would be no public use of the property. There also may be neighborhood opposition due to a private use. On the other hand, it could provide an opportunity for increased sales tax generators. ALTERNATIVES: The following alternatives are presented for consideration: Approve staffs recommendation to authorize study for identified alternatives; Select Alternative A and authorize study of other of other Alternatives; Exclude Alternative E given issues identified; Exclude other alternatives; Delay any further study; Identify other alternatives; Provide other direction. ADVANTAGES: Moving forward with the feasibility study would provide analysis for mid-long term options to address critical operational needs of the Police Department within available budget. DISADVANTAGES: Proceeding with the feasibility study to remodel and potentially expand the existing station may result in deferring urgent repairs and the money spent would likely not be fully recovered should other alternatives become feasible. Item 10.a. - Page 6 CITY COUNCIL CONSIDERATION OF STATUS REPORT FOR THE POLICE STA'I'ION PROJECT AUGUST 14,2012 PAGE 7 ENVIRONMENTAL REVIEW: Environmental review will be performed at the time a formal land use permit application is made. - PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted in front of City Hall on Thursday, August 9, 2012. "The . . Agenda and report were posted on the City's website on Friday, August 10, 2012. No public comments were received. Item 10.a. - Page 7 THIS PAGE INTENTIO NALLY LEFT BLANK Item 10.a. - Page 8