HomeMy WebLinkAboutAgenda Bill 06.A 01/06/2003�
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CITY OF PETALUMA, CALIFORNIA
AGENDA B ILL
; Agen'da `Title ; Resolution Approving Proposed Budget Amendment
Meeting Date January 6, 2003
Authorizing, Expe" nditure of $103,000 from the Capital Facilities
Fund'for'the'Renovation of 22 Bassett Street.
Department
Director
tontact Person
Phone Number 778 -4301
Community Development
Mike Moor _
ke Moore
Department; Finance
Bill Thomas
Cost of Proposal $103,000
Account Number N/A
Amount Budgeted $0
Name of Fund Capital Facilities
Attachments to Agenda Packet Item
Resolution Approving Proposed Budget Amendment
Summary Statement
In 2001, Public Facilities and. Services; moved out:of'22 Bassett Street to its present location on McDowell
Blvd. (the former Mosquito Abatement District Building). Shortly before Public Facilities vacated the
'building, Assistant City Manager Gene Beatty put together a committee of management staff to
recommend the most appropriate uses for the mostly vacant building given the overall shortage of office
space in the City Hall complex. Presently, 22 Bassett is being used by Community Development staff (City
Engineer, Associate -Civil Engineer and 2 Public Works Inspectors). It is also used on part time basis by 2
water conservation specialists under contract to the Water Resources Department. The interior of the
building is in poor condition and is in need of new paint, carpeting and lighting fixtures. The committee
originally made a recommendation to former City Manager Fred Stouder to use the space for Information
Services, the Fire Marshal and Community Development staff. 'That recommendation was recently
modified by the Interim City Manager. However, a formal budget, appropriation to renovate the building
was not included in the FY 2002 -03 budget. The proposed budget authorization would allow the City to
proceed with the renovation of 22 Bassett Street, as well ;as related renovation work in City Hall resulting
from the shifting of affected functions and staffing.
Council Priority THIS AGENDA ITEM IS CONSIDERED TO BE PART OF, OR NECESSARY T O, ONE OR
MORE OF THE 2001 PRIORITIES ESTABLISHED BY THE CITY COUNCIL ON JULY 21, 2001.
Priority(s): N/A
Recommended City Council Action /Suggested Motion
Adopt the attached resolution.
Reviewe by Finance' Director:
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Date:
T'odaf s Date ` Revision # and Date Revised:
December 4, 2002 #
CITY OF PETALUMA CALIFORNIA
JANUARY 6, 2003
AGENDA REPORT
FOR .
RESOLUTION APPROVING PROPOSED BUDGET AMENDMENT AUTHORIZING
EXPENDITURE OF $103,000 FROM THE CAPITAL FACILITIES FUND FOR THE
RENOVATION OF 22 BASSETT STREET
ExwurwE SummARY
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In 2001, Public Facilities and, Services moved out of _22 Bassett Street to its present location on
McDowell Blvd. (the former Mosquito Abatement District Building). Shortly before Public
Facilities vacated the building, Assistant City,Manager Gene Beatty put together a committee of
management staff to recommend ",the most appropriate uses .for the mostly vacant building given
the overall shortage of office space in the City Hall complex. Presently, 22 Bassett is being used
by Community Development "staff (City Engineer, Associate Civil Engineer and 2 Public Works
Inspectors). It is also used on part time basis by 2 water conservation specialists under contract to
the Water Resources Department. The interior of the building is in poor condition and is in need
of new paint, carpeting and lighting fixtures. The. committee originally made a recommendation
to former City Manager Fred Stouder to use the space for Information Services, Fire Marshal and
Community Development staff That recommendation was recently modified by the Interim City
Manager to address space nee& for Economic Development and Redevelopment staff. However,
a formal budget appropriation to - renovate the building was not included in the FY 2002 -03
budget. The proposed budget amendment would allow the City to proceed with the renovation of
22 Bassett Street, as well as related minor renovation work in City Hall resulting from the
shifting of affected functions and staffing.
2. BACKGROUND
22 Bassett Street was originallyl built as the City's police building_ . Since the police department
moved to its present location on Petaluma Blvd. in the mid- 1980's, the building had been used as
the location of the former Engineering Department and, subsequent to the Citywide
reorganization implemented under form_ er'City ManagerTred Stouder was used jointly by
Public Facilities and Services, Community Development and Water Resources. The building is
in need of renovation in order to provide a cleanand functional work environment for City staff
and the space,is needed to address shortages of office space in the City Hall complex and the
functional;needs of particular City departments. The proposed renovation work affects various
City departments, as follows:
)Fire !Marshal's Office:
The proposed renovation wih allow the Fire Marshal, 2 Fire Inspectors, l part-time Fire Plans
Examiner and the,Fire, Marshal's secretary to relocate their offices from their present location in
Community Development to 22 Bassett.
Community,: Development:
A portion,ofthe renovated 22 Bassett will be)used by Community Developmenfa Inspection
staff (3 Building Inspectors and 2 Public'Works Inspectors). This is being done to. implement
part of Community Development's reorganization program, which includes greater integration
ofpublic works,and building inspection services. The proximity of Community Development's
inspectors with the Fire Marshal's Office at 22 Bassett wild also produce:some efficiencies in
sharing :information, and services. The.relocation of the Fire Marshal's Office will also open up
P g Y g g i, Community
office space, in the west win of Cit Half for existin and'. new bud et- authorized
Development staff (City Engineer, Associate Civil Engineer Permit Processing, Technician and
Office Assistant''I). A portion of the requested funds will',be used to'finish the renovation of
Community - Development's offices.
Economic Development and Redevelopment:
A portion of,22.Bassett will by used by the recently authorized positions for Economic
Development and 'Redevelopment. .
Human Resources-
When the Assistant City committee on space needs met to review the use of.22
Bassett thel. committee alsa considered the need ,of the Human Resources staff to have private
offices because of the confidential nature of their work (benefits administration; recruitments,
eta.). The committee ,agreed that.as part -of the relocation effort, discus se'd above, Human
Resources would move into the office, immediately adjacentto their, existing, offices (now
occupied by the GIBS Manager and General Plan Administration's Associate Planner). Although
not directly related to the renovation of 22 Bassett; some of .the funds requested would be.used
to pay the costs of incidental items such as phone and computer relocations:
City Manager's Office /General Plan Administration:
The Managerand General PlanAdministration's Associate Planner would relocate from
their existing office in the east wing of City Hall, across-the hall and into What is now
Conference Room. 2. Again, this is not directly related to the renovation of 22 ,Bassett but some
of the funds requested, would be used to pay the costs of incidental items; such as phone and
computer relocations.
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3. ALTERNATIVES
The Council could decide not to authorize the expenditure of Capital Facilities funds at this time.
Without the appropriation, the space at 22'Bassett Street will remain underutilized and it will
have an impact on the effectiveness of the departments needing that space.
4. FINANCIAL IMPACTS
This project is proposing to use Community Facilities Fees (a development impact fee) to
provide the funding. At June 30, 2002'this fund had an unreserved balance of $2,188,270. In
fiscal year 2002, the City collected $351,585 in development impact fees, which was $300,365
less and represented a decrease of 541%o from fiscal year 2001.. Current projects that are funded
out of this resource in fiscal year 2002 -2003 total $945,000 including $75,000 for the remainder
of the Animal Shelter project; $313,000 for Soundwalls; $282,000 for the Library project and
$275,000 for the Polly Klass Center. In addition to these budgeted items, another $666,000 is
planned for projects in fiscal year 2004. These include an additional. $52,000 for the Library
project, $55,000 for the Polly Klass Center and $559,000 for additional Soundwalls. If all of
these projects are completed and within budget and assuming a modest revenue stream for this
fund it is projected to have a fund balance of approximately $1.5 million at the end of fiscal year
2004. Following is a synopsis of this fund for the next two years:
Beginning Balance 7 -1 -2002
$ 2,188,270
Estimated Revenues FY 2003
460,000
Budgeted Expenditures
945,000
Estimated Balance 6 -30 -2003
1,703,270
Estimated Revenues FY 2004
460,000
Planned Expenditures
666.000
Estimated Balance 6 -30 -2005
1.497.270
Through December 4 a total of $190,829 in these fees has been collected. This represents
41.5% of the total estimated revenue.
There has been discussion that a portion of this fund (or the entire balance) be designated for
paying off the bonds that will be due on the Community Center debt in 2005. This would free up
the remaining funds in the Park Development fund (June 30, 2002 balance is $1,220,245) for
development of Gatti Park. As you are aware, the Council approved an expenditure of $150,000
for the design of the Gatti Park, which is not reflective in the above fund balance. Assuming no
other expenditures, that would leave the Park Development fund at $1,070,245. In fiscal year
2002, the City collected $79,032 in park fees compared to $465,062 that was collected in fiscal
year 2001. Due to the permits associated with Park Central project, this fund has collected
$311,000 in fees in fiscal year 2003, which has increased its fund balance to $1,531,000. Two
projects 'are budgeted that will use this fund. The first is the Gatti Park design and the second is
the Senior Center renovation ($90,000). Assuming both of these are within budget, there would
be approximately $1.29 million remaining for use either to pay off the Community Center debt
and/or develop additional park areas.
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The debt service for the Community Center is made out of the debt service Funds are
transferred from the Community Facilities Fund to the Debt Service fund each year to provide:
sufficient. funds to pay the annual debt service payment. During the past three years, funds in
excess of the annual debt service payment have been transferred to the Debt Service fund, which
has provided a "pre- funding" of this debt: At June 30, 2003 the City will have accumulated
$1,211,083 for this purpose (assuming the `contribution of $661,250 is made from the Park
.Development fund as budgeted). The total debt service requirement to pay off these bonds in
2005 is as follows:
FY 2003 Principal and Interest Payments $ 314,868
FY 2004 Principal and Interest Payments 324,124
August 2005 Principal and Interest Payment 1,901,585
Total Required $ 2540.577
Amount Reserved as of 6 -30 -2002 $ 904,133
Amount. Appropriated for FY 2003 651,250
Sub -Total 1,555,383
Amount Required in FY 2004 and 2005 $ 03-19A
The remaining funds in the Park Development fund, assuming no further uses of the existing
;funds would be sufficient to pay off the debt service in 2005.
In summary, the Council by funding this project will decrease their ability to use these funds to
pay.debt service on the Community Center. However, at the present time, there are sufficient
funds to cover both . this project as well as the other projects that have been approved in both the
Community Services fund and the Park Developmeni fund. Based on cuirent projections there is
not sufficient funding for all of the projects that are budgeted, the renovation of 22 Basset Street
and the build out of Gatti Park with the two fund sources,
CONCLUSION
The budget appropriation ismecessary to fully utilize needed office space in °the City Hall
complex and is an appropriate use of Capital Facilities funds.
6. OUTCOMES OR- PERFORMANCE',MEASUREMENTs THAT WILL IDENTIFY SUCCESS OR
COMPLETION•
Once the budget amendment is authorized, work will proceed in accordance with applicable City
policies and procedures.
7. RECOMMENDATION
Adopt the attached Resolution approving the proposed budget amendment.
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I A`RESOLUTION OF THE CITY COUNCIL OF THE CITY.OF PETALUMA
2 '' APPROVING ANAMENDMENT TO THE FY 2002 -2003 BUDGET TO
3' AUTHORIZE THE EXPENDITURE OF $103,0001OR THE RENOVATION OF
4 22 BASSETT STREET
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6 WHEREAS, the renovation of 22 Bassett is necessary to provide a clean and
7 functional work environment for City staff and the currently underutilized space at 22
8 Bassett is needed to address shortages of office space in the City Hall complex and the
9 functional needs of particular City departments; and
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11 WHEREAS, the adopted City budget for fiscal year 2002 -2003 does not include
12 the expenditure of Capital Facilities funds for the proposed renovation work.
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14 NOW, THEREFORE, BE IT RESOLVED that the City Council hereby
15 amends the adopted FY 2002 -2003 budget and authorizes the expenditure of $103,000 of
16 Capital Facilities funds for the renovation of the City -owned building at 22 Bassett Street
17 and related renovation work in City Hall.
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