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
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CONSIDERATION OF STATUS REPORT FOR THE POI-ICE STATION PROJECT
AUGUST 14,2012
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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.
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CONSIDERATION OF STATUS REPORT FOR THE POLICE STATION PROJECT
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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,
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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
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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:
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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.
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CONSIDERATION OF STATUS REPORT FOR THE POLICE STA'I'ION PROJECT
AUGUST 14,2012
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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.
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