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Home My WebLink AboutCity Facility Capital Project Update 1147'70AJ Td Expcoe THE DE96N &UV> FWit OC- DPEY-Aft 14,41tiTA7Nl18F4AO City of Huntington Beach PWJEcT'):�FvELOAL4 r<,'-F �CAlCE7�'T— �'1�ROYE� (�- o- I l PETO 50AI— Aa(�F-Z5 File #: 21 -227 MEETING DATE: 3/15/2021 City Facility Capital Project Update Printed on 3/10/2021 oO.eea br Leava," City Councill ACTION AGENDA March 15, 2021 Public Financing Authority 4:00 PM VIRTUAL ZOOM MEETING CALLED TO ORDER - 4:02 PM ROLL CALL Present Kalmick, Ortiz, Carr. Posey. Moser. Delgleize Absent Peterson (excused) City Attorney Michael Gates requested and received permission to be absent pursuant to City Charter Section 309(d) ANNOUNCEMENT OF SUPPLEMENTAL COMMUNICATIONS - SS #1 (1); SS#2 (1); Closed Session #3 (2) PUBLIC COMMENTS PERTAINING TO STUDY SESSION / CLOSED SESSION ITEMS (3 Minute Time Limit) - None STUDY SESSION 1. 21-184 Mid-Year Joint Meeting of the Citizen Participation Advisory Board (CPAB) and City Council to review Community Development Block Grant (CDBG) Recommendations 2021-22 - Staff and CPAB Committee ROLL CALL - CITIZEN PARTICIPATION ADVISORY BOARD: Present: Massie Andres. Jackson, Ghosh. Lachman Absent: None 2. 21-227 City Facility Capital Project Update Motion by Posey, second Delgleize to explore the Design Build Finance Operate Maintain (DBFOM) project development concept Approved 6-0-1 (Peterson-Absent) RECESSED TO CLOSED SESSION - 5:16 PM CLOSED SESSION 3. 21-244 CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION. Initiation of Litigation Pursuant to Paragraph (4) of Subdivision (d) of Section 54956.9 (Deciding Whether to Initiate Litigation): Number of cases, one (1) - File lawsuit re Appeal of Southern California Association of Governments (SCAG) Final Regional Housing Needs Assessment (RHNA) Methodology for the Sixth Housing Element Cycle. Major City Facility Upgrade Options Public Private Partnership Options City Council Meeting March 15, 2021 • HUNTINGTON BEACH SUPPLEMENTAL COMMUNICATION meftv Dew ,vsrbe nem Na.: Overview of Existing City Facilities • City currently operates and maintains Y 1.75 million sq. ft. of facilities — city Hall — Police Stations — Fire Stations ' — Community Centers — Libraries — Parking Structure — Public Restrooms — Maintenance Facilities • Average age of our City facility _ 1 buildings is between 30 — 40 years old Managing And Maintaining Our City Facilities • The City's facility maintenance group currently includes 8 employees, with an annual operating budget of $2.55 million • Focus of the facility maintenance team is to handle higher profile tasks / projects, emergency functions, and support City events — Daily and routine maintenance functions (janitorial, HVAC, electrical, elevator, plumbing, etc.) are handled via maintenance contracts with outside vendors • Annually, the City allocates -$3 - $4 million for facility capital improvements — Funding allocations are made through the annual CIP process based on existing planning documents — Projects approved for inclusion in the annual CIP proceed through a traditional design-bid-build process as follows > Desipn: procure design firm, solicit public input, complete environmental assessment, complete design > Bid: bid packets are issued, and the services of a contractor and construction manager (if necessary) are procured > Build: selected contractor coordinates improvements and turns over completed project to the City City Currently Has Several Major Facility Needs • The City has identified several major facility capital improvement needs — City Hall — Police Station — Lake Fire Station — Public Works Corporate Yard — Lifeguard Headquarters • A Facility Condition Index (FCI) assessment of key facilities is currently underway, and preliminary reviews indicate approximately $60 million in facility improvement needs — Given the age and current condition of certain existing facilities, it may make more sense in certain instances to rebuild rather than rehabilitate 4 City Hall Facility Overview • Key City Hall building details: — Address: 2000 Main Street 'N — Year Built: 1972 IVX-00 — Building Size: 107,000 square feet — Departments: Administrative Services, s Vi — few Finance, Public Works, City on�� ` Clerk, Community Development, Fire, Community Services, City — Manager — Employee Count: 350 �r y — Critical Features: Also houses the Council Chambers and EOC City Hall Facility Overview 4-------- City Hall Facility Overview TEE • Other City Hall update r considerations include: I PMC + — Creation of a one-stop-shop I � permit counter to improve public interface at City Hall O .^mREs I — Instituting requisite ADA I••� I FMCWOM I - improvements i..� — Implementing various %+ building upgrades, including I F- security, IT, mechanical systems, and back-up power ]� i — F 7 Police Station Facility Overview • Key Police Station building details: -� i - Address: 2000 Main Street -y r - Year Built: 1972 - BuildinQ Size: 79,000 square feet - Departments: Police ' - Employee Count: 375 - Critical Features: 84-person jail, dispatch center, armory f' Police StationOverview r r�.rrr Lake Fire Station Facility Overview • Key Lake Fire Station building details: — Address: 530 Lake Street — Year Built: 1980 — Building Size: 15,000 square feet — Departments: Fire — Employee Count: 36 — Critical Features: Station supports a Fire Engine �� and Fire Truck, and needs . -` '�' �► additional space to add an ` emergency ambulance. , Additional adjustments include need to modernize facility to meet current operational Lake Fire Station Facility Overview aim ` J p s U Public Works Corporate Yard Facility Overview • Key Public Works Corporate Yard details: — Address: 17371 Gothard Street to — Year Built: 1975 eo!. — Lot Size: 14.4 acres v � N — Departments: Public Works — Employee Count: 40 a M: — Critical Features: Facility houses PW Administration, Traffic Signal a Operations, Building Maintenance, Landscape '' . CA Maintenance, Tree Trimming, two and material storage Public Works • • • • Facility Overview ' I { r , � •. eK'.• '•� _ � 7e �� III I � • 1 Lifeguard HQ Facility Overview • Key Lifeguard HQ building details: — Address: 103 Pacific Coast Highway r — Year Built: 1970 ' q� — Building Size: 5,816 square feet — Departments: Fire Department, Marine Safety04 — Employee Count: 20 � Il ' `�► ' — Critical Features: Marine safety dispatch operation, apparatus floor for all rescue vehicles, first-aid — treatment area, and parking ' pass sale all occur out of this facility Lifeguard • Facility Overview 1 � Major Facility Rehabilitation Cost Estimates • Preliminary major facility rehabilitation cost estimates total $61M — Outside of partial funding for the Lake Fire Station Rehabilitation plan, the City has not yet been able to identify a funding plan to complete the identified facility improvements Facility Facility Needs City Hall $20 M Police Station Rehab $25 M Lake Fire Station Rehab $3 M Public Works Corporate Yard $3 M Lifeguard HQ Upgrades $10 M TOTAL $61 M 16 Project Funding Options • Traditional financing for large-scale public facilities involves some type of financing mechanisms — During the past 30 years, the City has taken on debt to finance various major facility improvements > Downtown Parking Structure - $15.0 M financing in 1989 > Pier Plaza - $3.1 M in 1997 > Sports Complex - $18.4 M financing in 2001 > Senior Center - $15.0 M financing in 2014 — Traditional financing options exist for our current major facility improvement needs • However, given the costs and scale of our current facility needs, staff has also assessed utilization of a Performance Guaranteed Facility (PGF) public-private partnership effort to fund needed upgrades — Under the PGF model, the City can engage with a developer to coordinate a Design-Build-Fin once-Opera te-Maintain DBFOM project model 17 DBFOM Project Model — Long Beach Case Study • The City of Long Beach used the DBFOM process to coordinate development of a brand new $531 M civic center facility... which was developed at no net new cost for Long Beach — The project developer is responsible for maintaining the new facilities for a 35 year period • Through DBFOM, Long Beach agreed to the following — Maintain their existing maintenance contribution levels prior to the new facilities being constructed — Allowed the project developer to develop City-owned properties DBFOM Project Model Assessment • DBFOM project model opportunities — Capitalize on private developer expertise — Leverage value from existing City assets — Escape clauses are built into DBFOM project contracts to minimize risk — Maintenance of new facilities is guaranteed through the project term — Required City capital outlays are minimal • DBFOM project challenges — City loses some flexibility with the facilities through the term of the agreement — Developer is involved in all future facility upgrades through the agreement term 19 Viability — DBFOM Project Model Feasible In HB Given Existing Assets • One reason that the DBFOM project model could work in HB is because of existing City real-property assets • Civic Center facility is large enough to accommodate possible private development, while also housing other public uses — Lake Fire station located at the Civic Center? — If parking structure is developed at the Civic Center, additional housing / retail development could be feasible • Lake Fire Station is an approximately %-acre site that could facilitate development opportunities • The City's Public Works Yard, at 14.4 acres, is a sizable piece of property that could also be developed 20 DBFOM Process Next Steps • Obtain feedback from City Council on overall DBFOM project development concept • If the City Council is supportive of further exploring this concept, staff would recommend moving forward as follows — Issue a RFQ in March 2021 to procure services of a DBFCM development partner — Complete City building facility assessments — Bring overall issue back with all of our findings in Fall 2021 21 Questions? 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