HomeMy WebLinkAboutStaff Report 453-07City of Palo Alto
City Manager’s Report
TO:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL
CITY MANAGER
DECEMBER 10, 2007
DEPARTMENT: PUBLIC WORKS
CM_R:453:07
PUBLIC SAFETY BUILDING DESIGN AND FINANCING STATUS
REPORT
This is an informational report and no Council action is required.
BACKGROUND
On April 3, 2006, the City Council reviewed revised milestones for their FY2006-07 "Top 3"
priorities, including the Public Safety Building and Mitchell Park Library and Community
Center. At the meeting the Council approved a milestone schedule for both projects and directed
staff to pursue a June 2008 bond election for them.
On September 25, 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 for a new Public Safety
Building (PSB) to be !ocated at a Park Boulevard site recommended by the Public Safety
Building Blue Ribbon Task Force.
On October 1, 2007, the Lew Edwards Group, retained by the City to conduct community
outreach and solicit community input on the PSB and library/community center improvement
projects, updated the City Council on public outreach, preliminary polling and focus group
research to-date. At that meeting, the Lew Edwards Group informed the Council that:
¯Much work still needs to be done to educate the public on the needs for a new PSB, Mitchell
Park Library and Community Center, and library improvements at the Main and Downtown
Libraries
A June 2008 bond measure would not likely be approved and significant additional public
education and outreach would be required for passage of general obli:c ation (GO) bonds for
one or both projects. A super majority (66 2/3% + 1) of yes votes is needed to pass a GO
bond
¯A potential bond election in November 2008 should include only one of lhe projects
¯A bond for a new Mitchell Park Library- and Community Center and improvements at the
Main and Downtown Libraries was more likely to be approved by P~do Alto voters than a
bond for a new PSB
CMR:453:07 Page 1 of 3
On November 19, 2007, the City- Council adopted a resolution certifying the final EIR for the
Palo Alto Public Safety Building project. At the same meeting, the Council approved a purchase
option agreement with Essex Park Boulevard, LLC to acquire real property located at 2785 Park
Boulevard for the PSB. Also, at that meeting, the Council directed staff to study alternative
financing methods for funding the project.
DISCUSSION
Staff is currently looking at alternative financing methods that would allow the City to self-fund
most, if not all of the costs to build a new PSB at the Park Boulevard site. Alternative financing
may include issuance of certificates of participation (COPs) and identification of general fund
operating budget revenue sources that could be used to cover the debt service that would be
associated with a COPs issuance. Staff is planning to return to the Council Finance Committee
on January 15, 2008, with recommendations for Council consideration on February 4, 2008 that
may allow for funding of a new PSB without a GO bond election.
Prior to the November 19 Council meeting, staff was planning to return to Council on December
10 with an amendment to the RDC contract to provide additional services to bring the PSB to a
35% design level with cost estimates to support a June 2008 GO bond election. With staff
efforts focused on determining potential alternative financing methods, a June 2008 bond
election for a new PSB is no longer practical. At this point in time, due to Council’s direction to
identify and evaluate potentia! alternative financing strategies, staff is not recommending
amending the RDC design contract to carry the PSB design and cost estimating effort beyond its
current 25% conceptual level. If Council were to direct staff to proceed with a November 2008
bond election on the PSB, staff would need to come back to the City Council with an amendment
to the RDC contract to provide a schematic 35% design and updated cost estimates for the new
PSB to support a November 2008 bond. In the meantime, assuming that the Council is
successful in identifying a suitable self-funded financing strategy for the PSB, staff is evaluating
alternative approaches for completing the PSB design and construction of the new building with
the goal of reducing overall project costs. Staff will be prepared to present the results of this
effort as early as March 2008 after the Council decision on PSB fmancing.
If Council is not in accord with the staff’s workplan, it can direct that this item be agendized as
soon as possible to provide alternative direction.
RESOURCE IMPACT
This report is a status report to Council and has no resource impact
ENVIRONMENTAL REVIEW
This report is an information item and is not subject to California Environmental Quality Act
(CEQA).
PREPARED BY:
J£ ~/~I CHAEsgistant Pu~l~cARwoTrOk sRDirect or
CMR:453:07 Page 2 of 3
DEPARTMENT HEAD:
GLENN ROBERTS
Public Works Director
CITY MANAGER APPROVAL
EMILY Ih_4RRISON
Assistant City Manager
CMR:453:07 Page 3 of 3