REPORT TO COUNCIL
SUBJECT
Title
Approve Budget Modification No. 8 to Appropriate $25,000 to Fund Consultant Services Related to the Civic Center Modernization Project with Funding from the Future Infrastructure Projects Set Aside in the Infrastructure Fund
Report
BACKGROUND
On October 28, 2014 Council appropriated $400,000 for consulting services and expenses related to the Civic Center Modernization Project (RTC 14-0746). The City Manager was authorized to enter into and amend individual service agreements exceeding $100,000, up to the budgeted amount. The City subsequently awarded a contract to Anderson Brule Architects in the amount of $374,660 to provide services in three key areas - community outreach, market analysis, and space planning. Work in these areas is progressing well and scheduled to be completed by the end of 2015.
ENVIRONMENTAL REVIEW
This action is not a project within the meaning of CEQA because it involves funding for outreach, organizational, and administrative activities that will not result in direct physical changes to the environment (CEQA Guidelines 15378(b)(5)).
DISCUSSION
The current scope of the market analysis for the Civic Center project is limited to the existing City-owned property located at the Civic Center. The market analysis will evaluate current market conditions for alternative land uses at the Civic Center such as housing, hotel, retail, or office and estimate an approximate value of land if sold or leased for private uses. This is one way the City could potentially offset the cost of improvements needed at the Civic Center.
During the community outreach process numerous concerns were raised about the impacts of converting land at the Civic Center to private uses. It has been suggested that the City consider other City-owned properties, not currently being used to deliver City services. Staff has identified two properties owned by the City that have never been used to provide City services: 1) Parcels D and E located at the former Onizuka Air Force Station (4.6 acres); and 2) 1455 Kifer Road, a property that has been leased to a private party for many years but is now vacant (4.7 acres).
Additional consulting services would be needed to perform appraisals and incorporate the findings in the Civic Center market analysis work. This would provide a broader range of alternatives to consider as options for financing the Civic Center project are being developed for Council consideration.
Additional funding is also needed to augment community outreach efforts for an upcoming community workshop. Two community workshops on the Civic Center have already been held with 60 to 80 community members participating in each workshop. A third workshop is planned for early October. The next workshop will feature a site planning exercise that requires facilitators for small groups that will develop alternatives site plans. In order to accommodate as many participants as possible, several staff members will be trained to facilitate the exercise. This will require a modest amount of additional consulting services for training and materials for the workshop.
FISCAL IMPACT
Since FY 2012/13, the City’s General Fund reflects an annual transfer of $1.5 million for investment in the City’s administrative infrastructure. Through FY 2014/15, the Infrastructure Fund accumulated $6 million for future infrastructure projects. $400,000 was appropriated in FY 2014/15 for the Civic Center Modernization Project.
Budget Modification No. 8 has been prepared to appropriate an additional $25,000 to the Civic Center Modernization project to fund the additional appraisals and augment the community outreach efforts. The funding source for this additional appropriation would be the same source used in the initial appropriation. To date, $5.6 million is set aside and available.
Budget Modification No. 8
FY 2015/16
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Infrastructure Fund Expenditures |
|
|
|
|
831340 - Civic Center Modernization |
$400,000 |
$25,000 |
$425,000 |
|
|
|
|
|
|
FY 2016/17 - Future Infrastructure Projects |
$5,600,000 |
($25,000) |
$5,575,000 |
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
ALTERNATIVES
1. Approve Budget Modification No. 8 to Appropriate $25,000 to Fund Consultant Services Related to the Civic Center Modernization Project with Funding from the General Fund Capital Program Reserve.
2. Authorize the City Manager to amend the service agreement with Anderson Brule Architects, up to the new appropriation limit.
3. Other action as directed by Council.
STAFF RECOMMENDATION
Recommendation
Alternatives 1 and 2: 1) Approve Budget Modification No. 8 to appropriate $25,000 to fund consultant services related to the Civic Center Modernization Project with funding from the Future Infrastructure Projects Set Aside in the Infrastructure Fund; and 2) Authorize the City Manager to amend the service agreement with Anderson Brule Architects, up to the new appropriation limit.
Additional funding for the Civic Center project will provide for a broader range of options to be analyzed as part of the market analysis. This will give the City more flexibility in developing a range of financing alternatives for the Civic Center project.
Staff
Prepared by: Kent Steffens, Assistant City Manager
Reviewed by: Grace Leung, Director, Finance Department
Reviewed by: Jane Chambers, Interim Assistant City Manager
Approved by: Deanna J. Santana, City Manager