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HomeMy WebLinkAbout1998-07-13 City Council (15)City of Palo Alto City Manager’s Report TO:HONORABLE CITY COUNCIL 8 FROM:CITY MANAGER DEPARTMENT:CITY MANAGER’S OFFICE DATE:JULY 13, 1998 CMR:307:98 SUBJECT:REQUEST FOR COUNCIL APPROVAL FOR STAFF TO ACQUIRE LEASED SPACE FOR THE RELOCATION OF THE UTILITIES ENGINEERING DIVISION TO 1007 ELWELL COURT ON EAST BAYSHORE ROAD; APPROVAL OF A BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF $231,700 FROM THE GENERAL FUND AND $385,775 FROM VARIOUS UTILITIES FUND RESERVES TO ACQUIRE THIS SPACE AND CONVERT CIVIC CENTER A LEVEL SPACE TO ACCESSIBLE RECORDS STORAGE; AND AUTHORIZATION FOR STAFF TO PURSUE LEASING SPACE TO ACCOMMODATE THE CREATION OF A ONE-STOP PERMIT CENTER REPORT IN BRIEF This report provides information on the space needs in the Civic Center tower complex and requests that Council approve staff’s recommendation to acquire leased space for the Utilities Engineering Division at ’1007 Elwell Court. on East Bayshore Road for a specified term and per square foot cost. The term of the lease is related to the estimated time required to analyze and provide a recommendation to the Council on the long,term viability of the Municipal Services Center (MSC) buildings and to incorporate the needs of the Utilities Department into the long-term construction of MSC facilities. Staff is also requesting Council approval of a Budget Amendment Ordinance (BAO) to acquire this space and convert the archival storage area on Level A of the Civic Center to a readily accessible storage and record area. Finally, staff is requesting authority to pursue leasing space to accommodate the creation of a one-stop permitting center in the Downtown or at an appropriate alternative location elsewhere in the City of Palo Alto, should an appropriate leased facility become available within the range of prices and lease terms discussed in the report. CMR:307:98 Page 1 of 12 RECOMMENDATION Staff recommends that the City Council: Authorize the Mayor to execute the lease of 9,202 square feet at 1007 Elwell Court, for a term not to exceed 10 years and a rental cost of $2.35 per square foot triple net (NNN), plus $0.55 per square foot for support costs (taxes, insurance, janitorial, etc.) for a total annual cost of $320,250. Approve a Budget Amendment Ordinance to: acquire leased space for Utilities Engineering in the amount of $385,775 to cover $303,100 in one-time relocation expenses and $82,675 in rent payments in excess of rent currently paid by Utilities Engineering to the General Fund; to create a new capital improvement project to relocate Level A archival storage at a cost of $47,500 to cover $32,500 in one-time renovation and relocation expenses and $15,000 in first year remote storage fees; and to reduce General Fund reserves by $184,200 due to a reduction in rental income paid to the General Fund by Utilities Engineering. Direct staff to pursue leasing of space for the creation of a one-stop permit center subject to the parameters set forth in the following two options: a) up to 7,000 square feet in the Downtown at a per square foot lease cost not to exceed $4.50 NNN plus $0.40-$0.60 per square foot for support costs; or b) up to 14,000 square feet in an area of Pal. Alto other than Downtown at a per square foot lease cost not to exceed $3.60 NNN, plus $0.40 ’ $0.60.per square foot for support costs. BACKGROUND Staff has been working since February 1998 to prepare a comprehensive-space planning proposal to alleviate severe overcrowding conditions in City facilities over the next five years, after which additional long-term space solutions will be explored in conjunction with the construction of a Public Safety facility. Priority is being given to space that can be occupied in the next 6 to 12 months by staff currently occupying the Civic Center complex, due to the critical nature of the overcrowding there. A plan for Community Services staff located at the three community centers (Mitchell, Lucie Stem and Cubberley) will be the focus of concentrated effort as soon as the space deficit in the Civic Center is eased somewhat. Staff provided a summary of efforts to-date in developing a plan as part of the request for approval of a Budget Amendment Ordinance in order to provide funding to convert the Downtown Library Community Room to office space for Planning Division staff (CMR:204:98). In that report, staff indicated that the two most promising avenues for additional space appeared to be the relocation of Utilities Engineering staff to leased office space on East Bayshore Road, proximate to the Municipal Services Center (MSC); and the CMR:307:98 Page 2 of 12 conversion of Level A archival storage to storage space for records that need to be accessed on a regular basis but which are not required to be located immediately adjacent to the staff using them. DISCUSSION Current Space Inventory/Identification of Deficit Staff performed an inventory of all space currently occupied in the Civic Center tower in order to prioritize the need for additional space. The square footage occupied by workgroups on each floor was measured, in addition to filing, storage, conference rooms and special equipment areas. Each department was asked to submit its space needs for prioritization on a workgroup basis. Attachment 1 is the Space Needs Prioritization Request Form used by departments. In addition to square footage information, departments were asked to provide information on the following, in order to evaluate their requests for additional space: O O O O Customer service needs Safety requirements and related issues Work group dependencies and the need for physical proximity Unique space/equipment requirements In order to priodtize objectively, staff acquired information from building industry sources about standard square footages per employee for various types of occupational classifications and used these guidelines to compare current occupancy. Departments were asked to use these industry standhrds in preparing a justification for prioritization of their space needs. It should be noted that, with the exception of the Planning Division of the Departmentof Planning and Community Environment, no allowance was made for any staff growth for the five year time frame projected for the space planning effort. (In the case of the Planning Division, staff is in the process of developing a resource request that will be reviewed by the Finance Committee on July 21, 1998, that will include the staffing projected in this analysis.) The space inventory also does not include any contingency for additional square footage that may be required due to changes in technology or ergonomic requirements. Staff felt that, because the industry guidelines appeared to be somewhat liberal compared to the conditions under which staff is currently operating, such subsequent needs for space could be accommodated during the five year time frame which the space plan is intended to address. Attachment 2 summarizes the inventory of square footage currently occupied by the workgroups that submitied space needs requests, and compares it to the required square footage per the industry guidelines. The square footage shown should not be construed to have the accuracy of engineering estimates; It was intended only to establish relative priorities for additional space between workgroups, and to provide a working estimate of the overall space deficit in the Civic Center. This analysis shows a "space deficit" in the Civic Center of approximately 21,000 square feet, if space was allocated to employees according CMR:307:98 Page 3 of 12 to industry guidelines. Some of the most egregious problems with the current Civic Center space allocation that were documented as part of this review include the following: o o O O O The City Attomey’s law library currently serves quadruple duty as a library, hourly office space, typing area and conference room. A small closet is filled with files and space is rented offsite for files and records. Yet file storage still extends into work areas making them extremely congested. In Information Technology, crowded space in the computer room has, in some cases, prohibited access to the equipment for repair and service needs. Accidental contact with computers and peripherals is dangerous, and the equipment’s performance is threatened by close proximity and the resultant excess heat. Also in Information Technology on the second floor, offices for the Systems Analysts (the management employees responsible for applications definition and development) currently average only 52 square feet, with two cubicles measuring 42 square feet. The area used by the Network Engineer (48 square feet), Intemet Coordinator (48 square feet) and NT Systems Administrator (36 square feet) are housed within a single cubicle. Consequently, the Internet Coordinator must stand up and move aside to allow the Systems Administrator to gain access to his desk. Each of these positions work closely with customers who must also fit into the cramped space. In Revenue Collections~ there is only 53 square feet of useable space per employee. Because this area is purposely secured behind a locked door, a separate fax, copier and printer are located together in a crowded central area. If a staff member is using any piece of office equipment, other employees cannot move around the office until this employee is done. As mentioned previously, the Planning Division will be proposing the addition of up to 10 new staff members in one to two years to implement the organizational evaluation recommendations, new Historic Ordinance and proposed residential neighborhoods program. Even with the recent move of Planning staff to the downtown library, the 5th floor is already seriously overcrowded, and the addition of work spaces for these employees is not possible. Pro_r_o_p_~_ o ed Strateg~ Staff is proposing that the current Civic Center space deficit could be addressed through a combination of: acquisition of leased space for Utilities Engineering; re-use of the Level A archival storage as accessible storage for all departments; and the creation of a one-stop permitting center outside of the Civic Center office tower through leased space either as a "mini"center in the downtown or as a larger "full-service" center in another area of Palo CMR:307:98 Page 4 of 12 Alto. Staff believes that these three strategies will ease overcrowding in the Civic Center for the five year time frame covered by this space plan. By the end of this five year period, it is expected that a Public Safety facility will be completed. This facility has the potential to flee up significant space within the Civic Center that might be used to bring the one-stop permit center back on-site or to address other space needs. Should Council decide to build additional floors above the current Police wing, rather than construct a new Public Safety Building, staff believes a one-stop permit center will only be possible using leased space, either in the Downtown or another location in the city. In addition, during the five years addressed by the space planning recommendations in this report, staff expects to develop a long-term plan for the MSC which is anticipated to include space for Utilities Engineering, thus bringing this division back into a City facility. The retrofit of the A level archive space for more active filing and storage needs is considered to have long-term value and is expected to be retained as a permanent improvement to Civic Center space usage. Staffhas been actively looking for possible sites for leased space, both in the East Bayshore area and in the Downtown. Below is a survey of comparable leased: iLocation Size (Sq. Ft)"$ Rent/Sq. Ft/Mo.Lease Date Term Downtown 525 University Ave.8,932 4.70 NNN*12/31/97 60 120 months 530 Lytton Ave.6,780 4.33 NNN 2/27/98 60 months 530 Lytton Ave.10,000 4.00 NNN Avail. 124 University Ave.’6,579 3.69 FS 3/10/98 48 months East Bayshore ~ ~9-- __ 1007 Elwell Court 9,202 2.35 NNN Avail 84 months 1001 Elwell Court 10,531 2.10 NNN 1/5/98 60 months 1005 Elwell Court 5,692 2.35 NNN 6/1/98 60 months 3500 Bayshore Road 8,544 2.43 NNN 2/9/98 60 months 1731 Embarcadero 6,231 3.70 FS 3/6/98 56 months 1816 Embarcadero 9,446 2.95 NNN ’ Avail. 1870 Embarcadero 8,400 3.75 FS 4/2/98 12 months 2370 Watson Court 5,666 3.61 FS 4/28/98 28 months *NNN ("triple net) leases are defmed as rent exclusive of all expenses; the City would therefore be responsible for taxes msurance, utilities and janitorial expenses, estimated at an additional $0.40 to $0.60 per square foot per month. FS, ("full service") leases .include the costs of the above items. Relocation of Utilities Engineering Division to East Bayshore Road Utilities Engineering currently.rents the third floor of the Civic Center office tower at a cost CMR:307:98 .....Page 5 of 12 of approximately $3.00 per square foot. The space survey showed that Engineering presently occupies 5,430 square feet, but requires 8,940 according to industry standards and is therefore approximately 3,500 square feet short for the size and type of its operation. It is currently operating with bookshelves in the aisle.s, mapping printers stuffed into cubicles accessed from the aisles, and a number 0fEngineering personnel working in small, cramped spaces. There is no additional room to add another employee or temporary staff member to help with the current workload. Relocating this group will provide adequate space for all the reference material, drawings and books that are a part of the Engineering Division; and will provide space for the individual employees and their sophisticated computer dratting and design computers, printers and plotters. Relocating Engineering to the leased space proposed at 1007 Elwell Court on East Bayshore Road has severaladvantages for the Utilities Department. First, the cost of leased space on East Bayshore is less than the rent charged for Civic Center space. Relocation will provide the Engineering Division with a significant increase in space with a relatively small increase in space rental costs due to the difference in rates between the Downtown and East Bayshore. Second, six inspectors are stationed at the MSC, while the engineers they work with and the managers they report to are located at City Hall. Consequently, the inspectors must drive each day to the Civic Center to discuss projects with their co-workers and receive direction from their supervisors. Finally, relocating Enginee ’~ring to East Bayshore will greatly enhance the communications between Utilities Engineering and the Utilities Operations Division, which is located at the MSC. It will be much easier and faster for members of both groups to get together and discuss projects and problems, attend joint meetings and generally have more interaction. This will provide better project coordination, decrease field problems and provide better customer response. A suitable facility has been located at 1007 Elwell Court, less than a half-mile from the MSC and within 100 yards of the City fiber optic fing~ This 9,202 square foot facility is currently vacant, and the owners, McCandless, Ltd., would remodel the space to meet the needs of the Utilities Department. Rent for the facility would be based on a per square foot cost of $2.35 NNN. McCandless, Ltd. will construct all of the tenant improvements at its expense~ The City will be responsible for its share of the pro-rated taxes, and will provide for janitorial, electrical, telephone and maintenance (including the heating, ventilating and air conditioning system) services, as well as pay a pro-rated share for all common area maintenance, at a total additional per square foot cost of $0.55 per month. A refundable security deposit of $23,115 and the first month’s rent will be required upon execution of the lease. (See Attachment 3 for a summary of the lease conditions.) The estimated commencement date of the lease is September 1, 1998. During the term of the lease, the annual rent will increase by three percent per year. The term of the lease would be for 10 years, and the City would be able to sublease the space in the event the City constructed a new facility at the MSC for the Engineering Division within the ten-year time frame. The rent for 1007 Elwell Court is considered to be market value for the immediate area and significantly less expensive than comparable space in the Downtown. CMR:307:98 Page 6 of 12 Build-out of Civic Center Level A Storage Area The Level A space is currently used for inactive records storage. These records are accessed on an infrequent basis (an average of 75 times annually). Staff recommends that these records be moved to an outside facility so that the area can be utilized to address the storage of files or other active records requiring frequent access. Staff is currently in the process of prioritizing the uses of the area. For example, staff is exploring the relocation of the City Attorney’s law library to the area. Other possible uses of the area include the storage of Planning Division project files, the relocation of optical scanning equipment and associated records, and the storage of parking citations and utility bill payment stubs. There are a number of benefits that can be obtained by relocating the City’s inactive records. One of the primary benefits is the ability to consolidate all such records storage at one location. Currently, the City utilizes a number of facilities for inactive records storage. This is both costly and administratively cumbersome. By moving all of the City’s inactive records off-site, the City can contract with a facility that provides access to City records 24 hours per day. These facilities ensure the records are preserved by maintaining temperatures and humidity at constant prescribed levels. They also provide enhanced security systems to protect records from theft and vandalism. The one-time costs for moving the Level A records to an off-site location are $2,500, with the annual operating costs for storing the records offsite totaling $15,000. After the records are moved, some remodeling of the area would be needed. A wall would need to be constructed to make utility equipment housed on one side of the area inaccessible to the public. In addition, ceiling tiles, lighting, doors, minor electrical modifications and flooring would need to be installed. The costs for retrofitting Level A tatal$30,000. One-stop Permit Center The purpose of a one-stop permit center is to provide a single point of contact for members of the public seeking a development entitlement or permits to complete a regulated construction-related project. Objectives of a one-stop center include: O O o o o CIVIR:307:98 Increase convenience to the public by having plans checked and permits issued at one location rather than multiple locations in City Hall. Make more efficient use of staff resources by providing close proximity of all staff involved in plan checking, permit issuance and inspections. Provide the public with a clear process for acquiring various types of permits~ Improve communication among staff from different departments involved in the plan check and permitting process by providing a physical arrangement where staff can be in close proximity. Improve communications between City staff and the public on matters related Page 7 of 12 to development regulations and procedures. Increase productivity by consolidating records management functions and information processing procedures. Given the "donut" shaped layout of the Civic Center-and the building’s current crowded conditions, it is not feasible to create a one-stop permit center in the space presently available in the Civic Center. One possible long-term solution is to use the space currently occupied by the Police Department for a permit center, if the new Public Safety Building results in a vacation of that space. While this long-term solution will be fully evaluated, staff feels it is of critical importance to pursue a more immediate course of action to establish a one-stop permit center. Action is required now in order to achieve the customer service and staff efficiency goals outlined above and alleviate the Civic Center’s significant overcrowding described throughout this staff report. At this point, staff is currently exploring two alternatives to create a one-stop permit center in a site outside of the Civic Center in the next 18 months. These two alternatives - a full- service center and a mini center - are described briefly below. The space estimates for the full-service and mini one-stop permit centers are based on standardized office square footage for various types of occupational classifications and guidelines for space needs of similar one-stop centers. In addition, staff completed several site visits to recently created one-stop permit centers in San Mateo and Santa Clara Counties. Full-Service One-Stop Permit Center A full-service one-stop permit center is one that would include all staff who are part of the development permit process. Such a facility is estimated to require approximately 14,000 square feet. It would provide adequate space for approximately 80 personnel, as well as a public waiting area, public counter, conference room, plan storage area~nd self-help area (access to computerized building records, microfiche, block books, Assessor records, etc.). The full-service center would house all personnel in the Inspection Services and Planning Divisions (approximately 5.0 positions), as well as key development review and inspection personnel from the Fire (10 positions), Public Works (8 positions) and Utilities Departments (2 positions) with related support staff from all departments (10 positions). This full service facility could be located in the Downtown, or in another area of Palo Alto as long as it is convenient to customers (e.g. adequate parking and access) and has adequate telecommunications linkage to the Civic Center. Mini One-Stop Permit Center Staff has developed an alternative "mini center" concept that could improve customer service for permit-related functions with fairly minimal disruption to staff relationships until a full- service center can be built, presumably in conjunction with implementation of the Public Safety Building. The mini center is not an optimal solution, but will be explored if appropriate space for a full-service center is not located, since staff is committed to implementation of some version of the one-stop center as expeditiously as possible. Staff CMR:307:98 Page 8 of 12 estimates approximately 7,000 square feet is needed to adequately house a "mini"one-stop ¯ permit center. The 7,000 square feet will accommodate approximately 30 personnel who are involved in the development review and permitting functions of the City. This includes key personnel from the Inspection Services and Planning Divisions, and Fire, Public Works and Utilities Departmentsl This space allocation only includes those individuals who need to be available to the general public and carry out the functions necessary for the operations of the center. It does not include all personnel, such as managers or supervisors, nor would it include the building or hazardous materials inspectors. There would be challenges to be met from the perspective of location of central records, since many files, maps and plans are not accessible electronically at the present time. Hearings for the Architectural Review Board and Historic Resources Board would have to continue to be held in the Civic Center, necessitating transporting voluminous files and large displays from the off-site one-stop center to the Civic Center. For these reasons, and to ensure customer service is not decreased in separating this function from support services in City Hall such as Revenue Collections, staff believes it is critical that a mini center be located in leased space as close to City Hall as possible. However, staff feels that the inconveniences to staff are outweighed by the improved customer service that the mini center would make possible. While a full-service center will better achieve the City’s customer service and efficiency goals, in the short-term, it may be necessary to implement a mini-center. While it is premature at this point to make such decisions, the choice between the full-service and mini- center will likely depend, on the square footage, location, and cost of the space that is available. RESOURCE IMPACT Relocation of Utilities Engineering Ongoing Costs Relocation of the Utilities Engineering Division to 1007 Elwell Court will result in an annual rental cost of $320,250, including janitorial, utilities, and other support expenses. This represents an increase of $99,210 over the $221,040 that Utilities Engineering currently pays the General Fund annually for rent in the Civic Center. It is anticipated that the Elwell lease will commence in September 1998, resulting in 10 months of lease cost in the 1998-99 budget totaling $266,875. This represents an $82,675 increase over the $184,200 that Utilities Engineering would have paid to the General Fund during this 10 month time frame. Thus the Budget Amendment Ordinance (BAO) reflects a reduction in the various Utilities Funds Rate Stabilization Reserves of $82,675 for increased rent payments and a reduction in the General Fund Budget Stabilization Reserve of $184,220 (the amount of rent that the Utilities Department will now be paying for commercial space rather than to the General Fund). Rental costs will be part of the Utilities Department operating budget and the General Fund revenue budget will be reduced accordingly in subsequent years. CMR:307:98 Page 9 of 12 One-time Costs Staff estimates the one-time costs for moving Utilities Engineering to 1007 Elwell Court to be $11,100. The third floor of the Civic Center is currently all hard wall offices, so 32 workstations will have to be purchased for the leased space, plus conference and lunch room furniture, for a total cost of $152,000. Finally, telecommunication costs and the link to the fiber optic ring will cost $140,000. One-time costs therefore total $303,100, and will come from the various Utilities Rate Stabilization Reserves. Build-out of Civic Center Level A Storagg__Ar~ Ongoing Costs It will cost approximately $15,000 annually for the maintenance of off-site archival records once they are relocated from the Civic Center A level. One-time Costs Transformation of the archival storage on Civic Center Level A will require approximately $32,500 in one-time costs, including $2,500 to move archived files and $30,000 to renovate the space. Funding will be from the General Fund Budget Stabilization Reserve. FIRST YEAR COSTS (1998-99) Utilities Engineering Relocation Renovation ofLevel A Storage COSTS TO UTILITIES FUNDS One-Time Costs Ongoing Costs Sub-Totah First Year Costs to Utilities Funds $303,100 (relocation expenses) $82,675 (incremental rent above current payment to General fund) $385,775 $0 $0 $0 COSTS TO THE GENERAL FUND One-Time Costs Ongoing Costs Sub-Totah First Year Costs to General Fund Total $0 $184,220 (loss of Utilities rent payment to the General Fund) $184,220 $32,500 (Level A re~ofitand filerelocation) $15,000 (off-sitefilestorage ~es) .$47,500 $569,975 .$47,500 Total $303,100 $99,210 $385,775 $32,500 $199,200 $231,700 $617,475 CMR:307:98 Page 10 of 12 One-Stop Permit Center Ongoing Costs The cost of leasing space for a one-stop permit center will depend on whether the mini or full-service alternative is pursued and whether space is located Downtown or elsewhere in Palo Alto. The larger, full-service center alternative is more viable in space outside of the Downtown area, given the limited quantity and high cost of Downtown space~ The mini center alternative is more viable in the Downtown area, since proximity to City Hall will be necessary if located space does not permit managers and support staff to be relocated to the permit center. If appropriate Downtown space is located, staffis proposing an amount not to exceed $4.50 NNN per square foot per month, plus support costs of $0.40 to $0.60 per square foot, or an annual cost for 7,000 square feet of between $411,600 and $428,400. Ifa full-service facility of up to 14,000 square feet can be located outside the Downtown, staffwill ask for authority to negotiate a lease at a per square foot cost not to exceed $3.50 NNN, plus support costs of $0.40 to $0.60, or an annual lease cost of up to $655,200 to $688,800 per month. Funding for either option would be from the General Fund Budget Stabilization Reserve and Utilities Rate Stabilization Reserves for the balance of the 1998-99 fiscal year and would be included in operating budgets in subsequent years. Permit revenues, which support the functions that would be housed in the one-stop center, are sufficient to support this level of rental charge, in addition to the salaries and non-salary costs of the permit functions: If staff is able to locate appropriate space, it will report back and provide additional information on both the one-stop concept and the specific configuration, location and cost of the center. One-time Costs The one-time costs for creating either a mini or full service one-stop center will be prepared and brought to the Council with a lease, should space be located. Renovation of Vacated Civic Center Space One-time Costs Space vacated by Utilities Engineering and those personnel moved to an off-site permit center will need to be reconfigured to accommodate the needs of overcrowded workgroups that remain in the Civic Center. The first step, retrofitting the third floor of the Civic Center to an open office environment, is estimated to cost approximately $135,000 for demolition and remodeling, as well as changes to the telecommunications and computer linkages. Depending on which workgroups are moved, additional workstations may be required. Costs for furniture and equipment will be identified when a final relocation plan is determined. Funding for the retrofit of the third floor and the purchase of workstations was set aside in CMR:307:98 Page 11 of 12 the 1998-99 budget in the General Fund Non-Salary Contingent Account. POLICY IMPLICATIONS This recommendation is not inconsistent with any existing City policies. TIMELINE Considerable work remains to ensure that the best use is made of the space freed up by implementation of the space planning strategy proposed. Staff feels it is important to move expeditiously to acquire leased space, with allocation of vacated space occun’ing on a parallel track. If leased space is acquired, it will take approximately 11 months, for example, to renovate the vacated third floor space in the Civic Center to accommodate relocation of a workgroup or workgroups. Obviously, renovation of vacated and newly occupied space will occur sequentially as workgroups relocate. Staff will use the time between Council approval of the space planning strategy and the time the space is physically vacated in City Hall to review the priorities of various workgroups and allocate the available space. ENVIRONMENTAL REVIEW Leasing of office space and the associated interior renovations are exempt from California Environmental Quality Act. ATTACHMENTS Budget Amendment Ordinance Attachment 1: Space Needs Prioritization Request Form Attachment 2: Civic Center Space Deficit Attachment 3: Summary of Lease Conditions for Space at 1007 Elwell Court Space Planning Committee: Melissa Cavallo, Roland Ekstrand, Bill Fellman,_Fred Herman, Lynne Johnson, Ed Mrizek, Eric Riel, Audrey Seymour, Karen Smith, Larry Starr, Paul Thiltgen PROJECT COORDINATOR: " ~~~. "~MILY HARRISON CITY MANAGER APPROVAL.~ CMR:307:98 Page 12 of 12 ORDINANCE NO. ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE BUDGET FOR THE FISCAL YEAR 1998-99 TO PROVIDE ADDITIONAL APPROPRIATION TO: ACQUIRE LEASED SPACE FOR UTILITIES ENGINEERING IN THE AMOUNT OF $385,775; TO CREATE A NEW CAPITAL IMPROVEMENT PROGRAM PROJECT, NUMBER 19921, RELOCATION/CONSOLIDATION OF LEVEL A ARCHIVAL STORAGE, AT A COST OF $47,500; AND REDUCE GENERAL FUND RESERVES BY $184,200 DUE TO REDUCTION IN RENTAL INCOME FROM UTILITIES WHEREAS, pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 22, 1998, did adopt a budget for fiscal year 1998-99; and WHEREAS, staff performed an inventory of all space currently occupied in the Civic Center and documented considerable space allocation deficits throughout the complex, and concluded that the relocation of certain staff and records to leased space will need to occur; and WHEREAS, staff has recommended the relocation of the Utilities Engineering Division to leased space on East Bayshore Road, in order to provide adequate space for employees and their design equipment and improve coordination with the Operation Division of the Municipal Service Center .(MSC). This recommended relocation will result in an additional cost of $385,775 ($82,675 additional rental costs, $303,100 one-time moving costs); and WHEREAS, the Utilities Engineering Division currently pays rent to the General Fund for Civic Center space and will, pursuant to this ordinance, pay rent to a leased facility on EastBayshore Road beginning in September, 1998; and WHEREAS, staff has recommended that the City’s inactive records currently stored in the Civic Center Level A space be relocated to an outside facility] for a total cost of $17,500, and WHEREAS, staff has further recommended that after the inactive records are.moved, the Civic Center Level A space be retrofitted to allow for storage of active records requiring frequent access, for a total cost of $30,000; and WHEREAS, the budget needs to be amended to create and fund a capita! improvement program project number 19921, Relocation/Consolidation of Level A Archival Storage; and WHEREAS, City Council authorization is needed to amend the 1998-99 budget; and NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as follows: SECTION i. Capital Improvement Program Project (CIP) Number 19921, Relocation/Consolidation of Level A Archival Storage, is hereby created. A description of the CIP is shown on Exhibit "A" attached hereto and made a part of this ordinance. SECTION 2. The sum of Forty Seven Thousand Five Hundred Dollars ($47,500)is hereby appropriated to Capital Improvement Project No. 19921, Relocation/Consolidation of Level-A Archival .Storage, and the General Fund Budget Stabilization Reserve is correspondingly reduced. SECTION 3. The relocation of the Utilities Engineering Division to East Bayshore Road will hereby reduce the General Fund interfund revenues for facilities rent by the sum of One Hundred Eighty Four Thousand Two Hundred Dollars ($184,200), and the General Fund Budget Stabilization Reserve is correspondingly reduced. SECTION 4. The transactions authorizedin Section 2 and 3 will reduce the General Fund Budget. Stabilization Reserve from $17,166,000 to $16,934,300. SECTION 5. The sum of Three Hundred Eighty Five Thousand. Seven Hundred Seventy Five Dollars(S385,775) is hereby appropriated to the following Utility Funds, and the Rate Stabilization Reserves are correspondingly reduced: Electric Fund Gas Fund Water Fund Wastewater Collection Fund $179,000 $86,028 $72,140 " 8,6o8 SECTION 5. The appropriation authorized by Section 5 will reduce the following Rate Stabilization Reserves (RSR): Electric RSR Gas RSR Water RSR Wastewater Collection RSR From: $23,210,000 $11,022,000 $6,316,000 $6,759,000 To: $23,031,000 $10,935,972 $6,243,860 $6,710,392 SECTION 6. 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 7. This project has been determined to be categorically exempt under Section 15302 of the California Environmental Quality Act. SECTION 8. As provided in Section 2.04.350 of the Palo Alto Municipal Code, this ordinance shall become effective, upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST:APPROVED: City Clerk Mayor APPROVED AS TO FORM: Senior Asst. City Attorney Director, Administrative Services Department City Manager PROJECT DESCRIPTION This project will fund the relocation and consolidation of the City’s inactive records from City Hall and other City locations to an outside facility and will allow for the use of A-Level storage space to store active records requiring frequent accessl After the removal of the inactive records from the A-Level storage space, various retrofitting will need to occur including: the construction of a wall, and the installation of ceiling tiles, lighting, doors, minor electrical modifications, and flooring. PROJECT JUSTIFICATION By consolidating all of the City’s inactive records off-site, the City can contract with a facility that can provide 24- hour access, ensure record preservation, and enhance security. Additionally, the removal of inactive records from A-level will ease the Civic Center space deficit by allowing for the storage of active records, project files, or other materials that are not required to be located immediately adjacent to staff using them. FISCAL YEAR AMOUNT PY Budget 1998-99 $47,500 1999-00 2000-01 2001-02 2002-03 Source of Funding: General Fund COMPONENTS To renovate A-Level space, move records offsite, and pay for the first year costs of rental space for offsite storage. IMPACT AND SUPPORT’ ANALYSIS Environmental:Categorically exempt under section 15301 of CEQA, minor change to existing facili- ties. Design Elements:None. Operating:$15,000 a year starting in 1999-00 for rental of storage space. Telecommunications:None. COMPREHENSIVE PLAN The Comprehensive Plan contains no polices or procedures directly related to this project. ATTACHMENT 1 SPACE NEEDS PRIORITIZATION REQUEST FORM Requests for space apply only to work groups located in the Civic Center and the 3 community centers - Lucie Stern, Cubberley and Mitchell Park. This form is to be filled out on a work group basis. Each department is required to prioritize requests from work groups on a department basis. To be considered, request forms are due to Emily Harrisoh in the City Manager’s Office by May 8, 1998. Department:Department Priority" Work Group:Number of Staff in Work Group: Current Sq. Footage *Sq. Footage Per Guidelines * Please see attached information; for more detailed information on specific, work groups is required, please contact Karen Smith, Public Works Facilities, X6973. Please describe your space needs. Attach additional pages, drawings, or other information as required to ensure that the Space Planning Committee evaluating. your request has as much information as possible to use in prioritization. Please refer to the criteria established for evaluating and prioritizing space requests,. including: O Square footage required on a per employee basis (note: calculate based on guidelines set by Public Works Facilities: Department head Support staff Management/supervisory Professional Engineer/Planner/Design Conference room CAD workstation 180-200 square feet 90-100 square feet 140-160 square feet 100-120 square feet 150-180 square feet 6 person - 120 sq. ft.; 8 person - 220 sq. ft; 16 person - 450 sq. ft. 190-200 square feet ATTACHMENT 1 (page 2) Temp/Intern/Field 50 square feet 0 0 0 0 Customer service needs. (includes such things as average daily number of customer visits, public waiting space needs, etc.; if there are unusual one-day public space needs, please discuss) Safety requirements and issues (includes ventilation, earthquake safety, fire access, etc.) Work group dependencies and need for physical proximity (please be sure to indicate, if there are work group dependencies that are significant, whether the dependent work groiaps can be relocated as well) Unique space/equipment requirements,(this can be either for individual work stations or shared work areas, and includes such things as need for storage space, computers, other special equipment, need for confidential meeting space, need for group meeting space, requirements for quiet office space due to proximity to public counter area, vaults, engineering drafting tables, etcr) 2 ATTACHMENT 2 CIVIC CENTER SPACE DEFICIT Department Square Footage Per Guidelines Current Square Footage Estimated Deficit Attorney 2588 1433 1155 ASD Information Tech IT- Computer Rm Revenue Collections Purchasing Accounting 2346 1043 1300 1553 3082 1856 818 810 1208 2047 490 225 490 345 1035 Planning Administration Planning Div Building Transportation 575 7906 4594 1576 260 2449 2930 929 315 5457 1664 6~7 PW Admin/Eng Utilities Info Systems Engineering Marketing Serv Competitive Assess Resource Mgmt Meter Read/Field 4393 1587 10281 1150 1513 3111 805 3188 670 5431 812 836 2373 277 1205 917 4850 338 677 738 528 TOTAL 49402 28327 21075 ATTACHMENT 3 Lease Summary 1007 Elwell Court Lessor:McCandless Limited Tenant: Premises: TelTn: Rent and Common Area fee: Build Out: Repair, Maintenance and Janitorial: Taxes: Utilities: Subletting: Holdover: City of Palo Alto 1007 Elwell Court, 9,202 square feet Ten years Base rent of $21,624.70 NNN per month with an annual 3% increase. Tenant to pay an additional $1,490 per month its pro-rated share (28.44%) of the common area charge. Owner to remodel premises at its expense to Tenant requirements prior to occupancy. (Four additional enclosed offices, ADA rest rooms facilities, drop ceiling, glass to replace roll-up doors, new paint and carpet.) Tenant to provide janitorial and all repair, maintenance including maintenance of the Heating, Ventilating and Air Conditioning System. Tenant to pay its pro-ra~ed share (28.44%) of any assessments and taxes. Tenant to pay for all its utilities. Tenant must have Lessor’s permission to sublet any portion of the premises. If Landlord authorizes a holdover period, Tenant and Landlord will negotiate the terms of the hold-over period. If Landlord does not authorize a hold-over period, .Tenant will pay double the then daily amount of the rental then in effect. 8 TO: City of Palo Alto MEMORANDUM City Council Members July 13, 1998 SUBJECT:AGENDA ITEM NO. 8 - REQUEST FOR COUNCIL APPROVAL FOR STAFF TO ACQUIRE LEASED SPACE FOR THE RELOCATION OF THE UTILITIES ENGINEERING DIVISION TO 1007 ELWELL COURT ON EAST BAYSHORE ROAD; APPROVAL OF A BUDGET AMENDMENT ORDINANCE IN THE AMOUNT OF $231,700 FROM THE GENERAL FUND AND $385,775 FROM VARIOUS UTILITIES FUND RESERVES TO ACQUIRE THIS SPACE AND CONVERT CIVIC CENTER A LEVEL SPACE TO ACCESSIBLE RECORDS STORAGE; AND AUTHORIZATION FOR STAFF TO PURSUE LEASING SPACE TO ACCOMMODATE THE CREATION OF A ONE-STOP PERMIT CENTER The attached photographs illustrate Civic Center space usage as described in CMR:307:98. Assistant City Manager REVENUE COLLECTIONS First Floor Work stations are small and close together, leaving limited space for storage and circulation. REVENUE COLLECTIONS First Floor When staff members use office equipment, the area’s main aisle is obstructed. UTILITIES INFORMATION SYSTEMS Mezzanine Boxes, documents and files crowd offices and aisles, making access more difficult. INFORMATION TECHNOLOGY Second Floor Small stations, crowded with equipment, make it difficult for staff members to work in tandem. INFORMATION TECHNOLOGY Second Floor Tight quarters raise the risk to computer equipment fi’om bumping and excess heat. INFORMATION TECHNOLOGY Second Floor This cubicle houses three staff members, making client visits and even access to individual desks difficult. UTILITIES ENGINEERING Third Floor Current space is insufficient to allow easy access to, and efficient use of, office equipment. UTILITIES ENGINEERING Third Floor A small work space is made more cramped by plans and other documents. PURCHASING Fourth Floor This small area houses four work stations which are further crowded with files and documents, ACCOUNTING Fourth Floor This storage closet is filled to capacity, making access to filing cabinets difficult. ACCOUNTING Fourth Floor Due to a lack of storage space, boxes are kept under desks, leaving very little leg room. ACCOUNTING Fourth Floor Small work stations make it difficult for staff members to work with their internal clients. ACCOUNTING Fourth Floor Several staff members share a small space to process paper work. BUILDING INSPECTION Fifth Floor A relatively small space has been subdivided into numerous work stations. BUILDING INSPECTION Fifth Floor Small work stations and inadequate storage space make it difficult to review and store plans and maps. BUILDING INSPECTION Fifth Floor This area is used for storage,, electronic data retrieval and other functions. Space in this area is so limited that staff has been unable to install new plotting equipment that remains in its box. FIRE DEPARTMENT Sixth Floor Limited work space in small work stations is further encroached upon by files and documents. PUBLIC WORKS Sixth Floor Multiple staff members crowd into shared work spaces. ATTORNEY’S OFFICE Seventh Floor The Law Library serves as a reference center, storage area and office space for hourly staff. ATTORNEY’S OFFICE Seventh Floor A small closet is filled to capacity with files. PLANNING AND BUILDING DIVISION COUNTER Space needs monitored on July 7, 1998 Photos show’croxvded lobby, uncomfortable waiting room and a typical 10- 30 minute wait prior to being .served. There are 16 people with multiple sets of plans waiting within a 6 foot wide area.