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HomeMy WebLinkAbout2008-07-14 Ordinance 5012---.. -..... ~ ORDINANCE NO. 5012 ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 2008-09 TO PROVIDE AN ADDITIONAL APPROPRIATION OF $3,436,981 TO CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT PE-98020, PUBLIC SAFETY BUILDING The Council of the City of Palo Alto does ordain as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 9, 2008 did adopt a budget for fiscal year 2008-09; and ---:8-. -Tn-rrsca-l-year-zGG6-=-07-, -the-Ci-ty-Cotlne-il---appr-opri-ated--.. -~-. $1,000,000 for CIP Project PE-98020, Public Safety Building (project) to cover the costs of the preliminary design 6fa-- public safety building and its associated parking garage, and an Environmental Impact Report (EIR) certification; and C. In September 2006, the City Council approved a consultant services contract with RossDrulisCusenbery Architecture, Inc. (RDC) for an environmental impact report (EIR) , preliminary engineering and architectural design and cost estimates to a 25% level of effort for a new Public Safety Building (PSB) proposed on the Park Boulevard site (CMR:374:06); and D. In fiscal year 2007-08, the City Council approved another appropriation of $1,036,00,000 for the design costs of the Project and for an option payment to Essex Park Boulevard, LLC to acquire real property located at 2785 Park Boulevard (CMR420:07) i and E. In November 2007, City Council certified the Environmental Impact Report analyzing various site and building configurations located at Park Boulevard and approved a purchase option agreement with Essex Park Boulevard, LLC to acquire the 2785 Park Boulevard property (CMR:420:07); and F. In February 2008, City Council reviewed the financing options and authorized funding for the proj ect design and construction using Certificates of Participation (COPs), and staff was directed to return to Council as soon as possible with a consultant scope of services to continue design and construction documents of the reduced site Option B for the Public Safety Building project (CMR: 144:08); and G. The consultant contract with RDC needs to be amended to complete the design, construction documents and estimates of Public Safety Building project. Details of the construction cost scope of work are listed in CMR:290:08i and H. In May 2008, the City received an offer from Brown Fairchild-Park Investment Company, L. P. to enter into an option to purchase agreement with the City for a property located at 2747 Park Boulevard. This parcel is adjacent to the 2785 Park Boulevard identified in Section Ei and is also identified as another parcel for the planned Proj ect. The agreement proposed a purchase price of $2,732,000i an initial payment of $109,280 upon execution of the Option to Purchasei and a monthly payment of $9,106 to commence in July 2009; and I. Constructing the Proj ect on two lots will reduce overall project costs by eliminating design constraints -........ --.. ~ --~aS"see-i-a-eed~w~th-e.fle-redueed--s-i-z.e~eptien-. -'I'-he-twele~ep1:;-ien:------ will also enhanced security for operationsi and J. Additional costs such as real estate fees, outside legal ceunsel and printing and mailing are needed for the Project to be on track with the established timeline. There were no appropriations to cover the cost of these expendi tures. The existing appropriation balance of this Project is $580,100 and is not sufficient to cover the additional costs of $4,017,081. Details are' broken down as followSi and Description Amount RDC contract $3,807,801 Brown Fairchild-Park Investment $ 109,280 Company, L.P. -initial payment for option to purchase (2747 Park Boulevard) Real Estate fees and outside $ 40,000 .. 6eUE:Se-;l.-E-ee-s -eseFew aeeeUFFC--.- and title insurance Printing and Mailing costs $ 60,000 Total $4,017,081 Existing ~ppropriation balance $ 580,100 Amount needed $3,436,981 K. City Council authorization is needed to amend the 2008-09 budget to make available the funds needed for CIP Project PE-98020, Public Safety Building. SECTION 2. The General Fund Budget Stabilization Reserve is hereby decreased by Three Million Four Hundred Thirty Six Thousand Nine Hundred Eighty One Dollars ($3,436,981) with a remaining balance of Twenty Two Million Two Thousand Nineteen Dollars ($22,002,019) as shown in Exhibit A. SECTION 3. The sum of Three Million Four Hundred Thirty Six Thousand Nine Hundred Eighty One Dollars ($3,436/981) is hereby appropriated to CIP Project PE-98020, Public Safety Building. SECTION 4. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. SECTION 5. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. SECTION 6. A Draft EIR relating to the proposed Public Safety Building was circulated on July 31/ 2007 and the Final EIR was released on October 31, 2007. On November 19, 2007/ the City council certified the Environmental Impact Report. INTRODUCED AND PASSED: July 14, 2008 AYES: NOES: ABSTENTIONS: ABSENT: BARTON, BURT, DREKMEIER, ESPINOSA, KISHIMOTO, KLEIN, SCHMID, YEH MORTON APPROVED: Attorney • July 1, 2008 (unaudited balance) Net change to reservc-adopted budget Projected ending balance before BAO's BSR Balance After BAO's City of Palo Alto ExbibitA $25,176,000 $263,000 $25,439,000 $22,002,019 1