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Cq<<FORN,P CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 19, 2014 NEW BUSINESS
SUBJECT: DISCUSSION OF A MULTI-YEAR STRATEGIC ACTION PLAN FOR
CITY CAPITAL IMPROVEMENTS AND QUALITY OF LIFE
ENHANCEMENTS RELATED TO MEASURE J FUNDING AND OTHER
POTENTIAL FUNDING OPTIONS.
FROM: David H. Ready, City Manager
SUMMARY
This is a discussion item for the City Council to consider and give initial direction to the
Measure J Commission and Staff regarding a possible multi-year strategic action plan
for City capital improvements. Ultimately, levels of funding (e.g. miles of streets paved,
scope of Library remodel, etc.), funding sources (e.g. Measure J, Measure A, Library
Trust Fund, General Fund, fund raising) and funding types (bonding, leasing, "pay as
you go") are policy decisions for the City Council to consider in developing a multi-year
capital improvement budget.
RECOMMENDATION:
Direct the City Council Subcommittee, Measure J Commission and Staff as appropriate.
STAFF ANALYSIS:
Background
The City of Palm Springs voters approved Measure J in November, 2011 — a 25 year
1% Sales Tax. As a general policy matter, the City Council determined that these new
tax revenues would support the City's efforts to revitalize the former Downtown Fashion
Plaza site, and provide revenues for citywide capital improvements and quality of life
projects. To date, the City Council has approved over 60 Measure J projects
(approximately $22 million) that are in various stages of implementation (see attached;
Exhibit A).
City Council Staff Report
February 19, 2014-- Page 2
Discussion of Multi-Year Capital Improvement Budget
As part of an outreach initiative to the community in determining a range of capital
improvement projects important to residents, City Council tasked the Measure J
Commission to create a "request for ideas" application process. Subsequently, from
input received, the Measure J Commission was able to make a set of
recommendations, to the City Council, that resulted in approved projects as noted
above.
Several of the larger capital projects such as street resurfacing and repairs, the Library
renovation project and land acquisition for parks/recreation improvements, etc., require
a longer term strategy to Implement. Hence, the City Council appointed an Ad Hoc
Sub-Committee (Hutcheson/Lewin) to meet with a Sub-Committee of the Measure J
Commission to explore a process going forward that would address these types of
multi-year strategic planning and funding projects.
The two Sub-Committees have met formally — and with staff - resulting in this discussion
item coming before the City Council. The general conclusion was the importance of
City Council's direction on the level of funding to be provided for several of the larger
projects — from a multi-year perspective — which would be instructive for the Measure J
Commission and Staff to provide City Council with the next round of project
implementation recommendations. For example, City Council policy direction on the
scope of the Library remodel would ultimately impact the funds available toward the
number of miles of streets to be resurfaced over the next several years. Moreover, a
multi-year strategic planning approach could include various funding options and
mechanisms to achieve a wider range of the City Council's project goals for the City.
Projects
The nature of certain types of capital improvement projects requires a strategic planning
approach to match funding levels and organizational capacity to successfully implement
the desired result. Several of the planned projects (City Council approved, Measure J
recommended, and community suggestions) fall into this category. A primary example
being the citywide need for street resurfacing which impacts every neighborhood
resident, tourist and visitor to Palm Springs. This year, $1 million in Measure J funds
have been recommended and approved to resurface approximately 2 miles of streets.
However, with a multi-year strategic budget plan, the City Council may choose between
several potential options which could result in resurfacing approximately 30-35 miles of
city streets over a three year time period utilizing a Measure A Street Fund bonding
program in conjunction with Measure J funds.
With regard to the Library renovation project, the consulting firm Group 4 Architecture,
Research and Planning, Inc., outlined at a recent City Council meeting their remodel
project scope and cost of approximately $15 million. The City Council requested
additional information of alternate scope and cost remodel scenarios. The consulting
firm is finalizing their subsequent review and will have additional options for Council's
consideration at your meeting.
City Council Staff Report
February 19, 2014-- Page 3
Discussion of Multi-Year Capital Improvement Budget
Additionally, there is a range of other projects that will be affected — in terms of funding
priority and timing — depending upon how a multi-year budget is implemented.
Examples include the Non-Motorized Transportation Plan (with a significantly expanded
bicycle lane program); a new Soccer Park, public safety buildings (new Fire Station and
Police Station renovations); acquisition of land for economic development/
preservation/expanded park locations; trolley transportation program; Convention
Center improvements; the new Downtown Event Center, etc.
FISCAL IMPACT:
The Finance Director has estimated the current fiscal year Measure J revenue at
$11 million, with 2% increases in growth annually. The City's debt obligation for the
new Downtown Palm Springs project and property maintenance/operating expenses of
public areas (e.g. parking structures) is approximately $3.6 million annually. Based
upon currently approved projects (for years 2012-2014) and debt obligations, the
Finance Director is projecting approximately $7.2 million in 2015 and $8.1 million in
2018 available for new projects.
In addition to Measure J funds, other sources of revenue for projects could include
bonding/debt opportunities, Measure A Street Funds, General Fund and the Library
Trust Fund (for Library use only, and at the discretion of the Library Commission).
Suzanne Harrell, the City's bonding and financial advisor will be at the meeting to
present information on the possibilities and limitations of debt borrowing, specifically as
it relates to street resurfacing (in conjunction with Measure A Street Funds) and the
Library, which are potential candidates for longer term debt consideration.
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As outlined above, there is a level of funding complexity to achieve the City's capital
improvement goals, both short and long term. This initial City Council discussion and
policy direction on a multi-year strategic capital budget plan will allow the Measure J
Commission and Staff to plan accordingly and provide additional information to the City
Council as we move into the new 2014-2015 Fiscal Year budget process.
DAVID H. READY
City Manager
Attachments:
Summary of Available Measure J Funds
2013 Approved Capital Projects
2014 Approved Capital Projects
t
Multi-Year Summary of Available Measure J Funds
City of Palm Springs
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Beginning Balance $9,788,824
Projected Sales Tax Revenue $11,000,000 $11,200,000 $11,400,000 $11,600,000 $11,800,000
+2% +2% +2% +2%
Reserves:
Project Contingency Reserve $1,007,998
Projects Under Discussion/Study 770,000
Unscheduled Capital Projects 650,000
Net Reserves (2,427.998)
Total Available Funds $18,360,826 $11,200,000 $11,400,000 $11,600,000 $11,800,000
Existing Budget Obligations:
Debt Service $3,200,000 $3,200,000 $3,200,000 $3,200,000 $3,200,000
Downtown Prop Maint&Other Expenses 328,443 350,000 375,000 400,000 425,000
Multi-Year Projects:
iHub Accelerator Campus $500,000 $250,000 $250,000
Architecture and Design h m -Museum 283,334 283,333 283,333 0 0
PSHS Auditorium Remodel 291,000 291,000 0 0 0
Property Acquisition(near Chino Cone) 1,000,000 1,000,000 1.000.000 0 0
Tahquitz Median 1,030,000 1,030,000 0 0 0
Total Multi-Year Projects $3,104,334 $2,854,333 $1,533.333 $0 $o
2012-2013&2013-2014 Single-Year Projects $11,728,049 $0 $0 $0 $0
Total Existing Budget Obligations $18,360,826 $6.404,333 $5,108,333 $3,600,000 $3,625,000
Net New Funds Available for Budgeting $0 $4.795,667 $6,291,667 $8,000,000 $8,175,000
Add Back 2013-2014'Reserve"Holding Amounts 2,427,998
Total Funds Available for Budgeting $0 $7,223.665 $6,291,667 $8,000,000 $8,175,000
Note: The Director of Finance is assuming a 2%annual growth in revenues in the 2nd through the 5th year.
2/18/2014 Measure 2014-1015 Funding Projection(02-19-2014);Multi-Year Funds Availability 3:26 PM
Measure J Capital Projects Funding by Fiscal Year
City of Palm Springs
2013 Projects Bud et
1 Streets- Reconstruction, Overlay, Slurry Seal $3,000,000
2 Pavilion Kitchen Equipment Replacement 14,000
3 Desert Highland Light Poles/Fixture Replacement 80,000
4 Ruth Hardy Park Security Path Lighting 50,000
5 Desert Highland Small Parking Lot Repairs 40,000
6 Dog Park Improvements 10,000
7 Sidewalk Replacement in Parks Citywide 80,000
8 Demuth Park-Softball Field Wiring Replacement 40,000
9 Demuth Community Center-Gymnasium Floor Repairs 40,000
10 Sunrise Park Water Valve Replacement 50,000
11 Demuth and Ruth Hardy Parks-Parking Lot Repairs 165,000
12 Stadium Fencing Repairs 20,000
13 Replace 20 Trees-Palm Cyn, Indian Cyn, Sunrise Park 125,000
14 Village Green -Electric Meter Panel Replacement 25,000
15 Downtown/Uptown Crosswalks 150,000
16 Light Poles- Raise Footings-Citywide 150,000
17 Traffic Signal&Queing Study(Sunrise @ Ralph's Center) 10,000
18 Lighting- Replace Underground Electrical -Phase One 100,000
19 New Fire Station#6 Site Location and Design Study 50,000
20 Downtown PS Bond 3,000,000
21 Downtown Maintenance and Other Expenses 137,555
Total 2013 Project Expenses $7,336,555
2/18/2014 Measure 1 Approved Projects List(02-19-2014) 3:27 PM
Measure J Capital Projects Funding by Fiscal Year
City of Palm Springs
2014 Projects Budaet
22 Welwood Memorial Library Renovation Project $582,446
23 Uptown Crosswalk Project 126,000
24 iHUB Accelerator Campus 500,000
25 Architecture and Design Museum 283,334 *
26 Firefighting Support Unit 350,000
27 Downtown Palm Springs Development 365,000
28 Swim Center Deck 180,000
29 Swim Center Underwater Lights 12,000
30 Bike Crossing at Date Palm(50% paid for by Cathedral City) 15,000
31 Shade Cover at Mizell Senior Center 25,000
32 Trailhead Waste 5,000
33 Airport Back-up Generator(1/2 paid for by Airport) 62,500
34 Security Cameras at Park Restrooms 75,000
35 Baristo Sidewalk 25,000
36 Palm Springs High School Auditorium Remodel 291,000 *
37 Visitors'Center Landscaping 25,000
38 Library Computers 47,800
39 Library Planning 150,000
40 Property Acquisition (near Chino Cone) 1,000,000 *
41 JO Jessie DHUC-Gym Air Conditioning 175,000
42 Entry Way Signs 150,000
43 Police Training Center Upgrades 100,000
44 Building Department Microfilm to Internet 110,000
45 Veteran's Memorial 12,960
46 Police Records Area- Redesign and Renovate 250,000
47 NMTP/Biking Issues 1,004,544
48 Tahquitz Creek Master Plan 300,000
49 Police- Repave Rear and Front Parking Lots 300,000
50 Fire Station#4-Roof Replacement 32,500
51 Fire Station#4-Chiller Replacement 60,000
52 Police Department Initial Design-Remodel Building 100,000
53 Fire Stations Security Cameras 27,000
54 Fire Stations Keyless Entry System 50,000
55 Uptown Treewell Irrigation System 45,000
56 Village Green Improvements 50,000
57 Pavilion Gymnasium Floor Repair and Refinish 30,000
58 City Hall Security Design and Installation 100,000
59 Amico Tract Sewer Improvements($461 K 3-year total) 181,000
60 Street Repair 1,000,000
61 City Hall Parking Lot-Resurfacing 700,000 !,
62 Lighting (Replace underground electrical, Phase 2) 800,000
63 Downtown PS Bond 3,200,000
64 Downtown Maintenance and Other Expenses 275,000
65 Tahquitz Canyon Median 1,030,000
66 Trolley Study 25,000
Reserve Fund(10%target) 1,007,998
Total 2014 Project Expenses $15,236,082
Commission Recommended Set-Aside-Projects for Futher Study $1,420,000
(Palm Cyn-UptovmlDovmtovm lighting 8 street improvements,Cultural Center,Ruth Hardy Pavilion,
Trolley Shuttle,South Palm Springs Gateway Entry,South Desert Park,Informational IQosks,Northern Trail)
*Multi-Year Project
2/18/2014 Measure J Approved Projects List(02-19-2014) 3:27 PM
2
Measure A Bonds
7 Year 11 Year
Pledge Pledge
Par Amount $6,515,000 $9,620,000
Reserve Fund $ 625,000 $ 920,000
costs $ 190,000 $ 220,000
Net Project Funds $5,700,000 $8,500,000
Debt Service $1,100,000 $1,100,000
Total Payments(Net of Reserve) $6,850,000 $11,355,000
Effective Rate 3.00% 3.85%
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Library Funding Options
Project Cost Project Cost Project Cost Project Cost Project Cost
Par Amount $5,885,000 $11,040,000 $12,700,000 $14,465,000 $17,675,000
Reserve/Capitalized Int $ 725,000 $ 1,620,000 $ 2,870,000 $ 2,125,000 $ 2,595,000
Costs $ 160,000 $ 220,000 $ 230,000 $ 240,000 $ 260,000
Debt Service(2037) $ 440,000 $ 830,000 $ 960,000 $ 1,090,000 $ 1,330,000
Total (Net of Reserve/Cap $9,240,000 $17,160,000 $19,725,000 $22,480,000 $24,480,000
Int)
Effective Rate 4.95% 4.95% 4.95% 4.95% 4.95%
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LIBRARY RENOVATION
PROJECT COST ALTERNATIVES
Recently Group 4 Architecture Research and Planning, Inc., presented to the City
Council a project for the renovation of the City of Palm Springs Library and a cost
estimate of approximately $15 million.
Below, for illustration purposes only, are presented some value engineering alternatives
regarding the project, to illustrate a project with different costing models. Decisions
regarding the specific elements would be a part of the project approvals by the City
Council.
$12.1 M BUDGET— OPTION 1
• Reduced parking expansion
• Eliminate skylight in Children's area
• Eliminate green screen / art fence at courtyard
• Eliminate tensile shade structure in Children's courtyard
• Replace sliding glass wall with fixed glazed wall between meeting room/gallery
• Eliminate Koi Pond
• Eliminate sliding glass wall at teen entry
• Eliminate storefront at friends store
• Eliminate group study rooms
• Replace sliding glass wall with fixed glazed wall between children's and courtyard
• Eliminate sliding panels at children's story area
• Eliminate aluminum framing to support lighting and signage
• Reduce glazed entry canopy to fabric structure
• Reduce casework/millwork by 25%
• Reduce lighting allowance to $8/SF (20% reduction)
• Afterhours roll down grill at lobby
$10.6M BUDGET— OPTION 2
• All items listed above
• Eliminate expanded and added parking, no upgrades to courtyard or terraces,
eliminate north entry— only providing ADA improvements and site utilities
• Keep existing windows and storefront
• Alternate meeting room/restroom layout (BH to send link to download)
• Alternate teen room layout (BH to send link to download)
• Alternate children's room layout (BH to send link to download)
• Reduced technology budget (20% reduction)
• Reduced signage budget (20% reduction)
• Reduced furniture budget (20% reduction)
$9.2M BUDGET— OPTION 3
• All items listed for option 1 and 2
• See attached floor plan indicating minimal amounts of walls to be removed and
new walls to be built — still include all system upgrade (lighting, HVAC, plumbing,
electrical) and finishes (wall, floor, ceiling as indicated) and ADA upgrades to
restrooms and drinking fountains (BH to send link to download), parking lot curb
cut ramps, signage and striping, door hardware and new signage.
r ' 1 1LIBRA Group 4 Architenure,Research+Planning,Inc
rrrCost Model 9. t ,
Project Data Land Costs
Net SF(75%gst) 25,440 NSF N!C
Gross SF 33,920 GSF
Fawpnn 33,920 sr Hard and Soft Costs
SFArea Unit Cost Project Cost
Construction 2 Stow Construction Costa
New Conetry 'co - Building Renovation 33,920 GSF $190/GSF $6,443,443
Renmv n 33,920 GSF Sitework 98,974 GSF $12/GSF $1165177
%New (N Subtotal-Construction Hard Cost $7,608,621
%Renovation 100%
Furniture,Technology,and Public Art Costs
Parking 157 Spaces Signage 33,920 GSF $3/GSF $101,760
FF&E 33,920 GSF $251 GSF $848.000
Ex"M spews 127space. Technology 33,920 GSF $10/GSF $339,200
New spews 3oswws Automated Materials Handling 33,920 GSF $01 GSF $0
Public Art not required
Site Area 98,974 at Subtotal-Fumiture, Technology, and Public Art Cost $1,288,960
Lanye,w,e% 37%
Parking% 0% Hard Cost Contingency 10% $889,758
Total Hard Cost Budget $9,787,339
Professional Fees
Engineering and Design Fees 15% $1,468,101
Construction Management 35% $342 557
Subtotal-Pmtesslonal Fees $1,810,668
Other Owner Costs
Project Management(admin/city staff) 1.5% $146,810
Permit Fees,Inspections, Material Testing,etc. 1% $97,873
LEED commissioning 0% $0
Library Materials Costs NIC
CEQA-MND NIC
Utility Connection Fees NIC
Hazmat Mitigation inc.above
Temporary Facilities NIC
Opening Day Celebration/Public Relations NIC
Moving Costs 33,920 GSF $31 GSF $101 760
Subtotal-Other Owner Costs $346,443
Soft Cost Contingency 10% $215,710
Total Soft Cost Budget $2,372,811
Project Budget(Includes escalation to 0312015) $12,180,158
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Group Ard iteoun,Research+Planning,Inc
rrCost Model Data r
Project Data Land Casts
Net SF(75%g50 25,440 NSF NIC
Gross SF 33,920 GSF
Foofpmnf 33,920 SF Hard and Soft Costs
SF Area unit Cost Project Cost
Construction 2 Story Construction Costs
Naw cbnsrrusban Building Renovation 33,920 GSF $179/GSF $6,084,730
neonfinn 33,920 GSF Sitework 98,974 GSF $7/GSF $693196
%New 0% Subtotal-Construction Hard Cost $6,777,926
%pem,n 100%
Fumaum,Technology,and Pubic Art Costs
Parking 127 Spaces Signage 33,920 GSF $2.4/GSF $81,408
FF&E 33,920 GSF $20/GSF $678,400
Er/sfup Saeees 127 aParxa Technology 33,920 GSF $8/GSF $271,360
N.Spams, - Automated Materials Handling 33,920 GSF $0/GSF $0
Public Art not required
Site area 113,475 sf Subtotal-Furniture, Technology, and Public Art Cost $1,031,168
Leasnpe% 55%
P@MV% 45% _ Hard Cost Contingency 10% $780,909
Total Hard Cost Budget $8,690,004
Professional Fees
Engineering and Design Fees 15% $1.288,501
Construction Management 3.5% $300650
Subtotal-Professional Fees $1,589,151
Other Owner Costs
Project Management(adminicity staff) 1.5% $128,850
Permit Fees,Inspections, Material Testing,etc. 1% $85,900
LEED commissioning 0% $0
Library Materials Costs NIC
CEQA-MND NIC
Utility Connection Fees NIC
Hazmat Mitigation inc. above
Temporary Facilities NIC
Opening Day Celebration/Public Relations NIC
Moving Costs 33,920 GSF $3/GSF $101 760
Subtotal-Other Owner Costs $316,510
Soft Cost Contingency 10% $190.566
Total Soft Cost Budget $2,096,227
Project Budget(includes escalation to 0312015) $10,686,231
Ga1M4 41 Palm Spnngs Libory,OEstmetesNSL VE Cost MOaels_2014_02_13
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Group 4 firrhi nnure,Research+Planning,Inc
Cost Moiaei Data—
Project Data Land Costs
Net SF(75%gsf) 25.440 NSF NIC
Gross SF 33,920 GSF
F°atpnnf 33,920 SF Hard and Soft Costs
SF Area Unit Cost Project Cost
Construction 2 Story Construction Costs
New ccnshucaon Building Renovation 33,920 GSF $152/GSF $5,156,398
Ren°wrron 33,920 GSF Sitevrork 98,974 GSF $7/GSF $693,196
%new 0% Subtotal-Construction Hard Cost $5,849,594
%Rammari°n 100%
Furniture,Technology,and Public Art Costs
Parking 220 Spaces Signage 33.920 GSF $2.2/GSF $74,624
FF&E 33,920 GSF $18!GSF $610,560
E mg spaces 127space. Technology 33.920 GSF $6/GSF $203,520
New Spawn 93spa°as Automated Materials Handling 33,920 GSF $0/GSF $0
Public Art not required
Site Area 113,475 of Subtotal-Fumiture, Technology,and Public Art Cost $888,704
Lan P&% 22%
Parking% 78% Hard Cost Contingency 10% $673,830
Total Hard Cost Budget $7,412,128
Professional Fees
Engineering and Design Fees 15% $1,111,819
Construction Management 3.5% $259,424
Subtotal-Professional Fees $1,371,244
Other Owner Costs
Project Management(admin/city staff) 1.5% $111,182
Permit Fees,Inspections,Material Testing,etc. 1% $74,121
LEED commissioning 0% $0
Library Materials Costs NIC
CECA-MND NIC
Utility Connection Fees NIC
Hazmat Mitigation inc.above
Temporary Facilities NIC
Opening Day Celebration/Public Relations NIC
Moving Costs 33,920 GSF $3!GSF $101,760
Subtotal-Other Owner Costs $287,063
Soft Cost Contingency 10°h $165,831
Total Soft Cost Budget $1,824,138
Project Budget(includes escalation to 032015) $9,236,285
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