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HomeMy WebLinkAboutMINUTES - 12152009 - SD.11RECOMMENDATION(S): Accept the Report from the Finance Committee on the re-use of the 30 and 40 Muir Road building complex to reduce by over 50% the estimated costs from the $45 million previously approved development at the Summit Center site located on Arnold Drive down to $18 million which includes $15 million for the remodel, $1.2 million for the County debt service on the buildings, and approximately $1.5 million for energy efficiency, other green construction measures and information technology improvements; Approve the re-use and remodel of the 30-40 Muir Road building complex for occupancy by the Department of Conservation and Development (DCD) as a means to support the consolidation of DCD’s four Martinez office sites in order to further the streamlining of municipal services directed by the Board with the merger of the Building Inspection (BI) and Community Development (CDD) Departments; Authorize the General Services Department (GSD) to carry out the necessary processes to expedite the remodel and re-use of the 30-40 Muir Road building complex including improvements for energy efficiency and other “green” construction in collaboration with the Department of Conservation and Development and to provide the Board APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/15/2009 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Catherine Kutsuris (925) 335-1221 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: December 15, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: SD.11 To:Board of Supervisors From:Finance Committee Date:December 15, 2009 Contra Costa County Subject:Report on 30-40 Muir Road Building and Approve Remodel for Use by the Department of Conservation and Development RECOMMENDATION(S): (CONT'D) with status reports on the project at six month intervals. FISCAL IMPACT: Re-use of the 30-40 Muir Road building complex by the Conservation and Development Department relieves the County General Fund of a $1.2 million debt service liability as well as the annual maintenance costs for this building complex. No General Fund money will be used for the renovation. Costs will be covered by that portion of the land development fees determined in the 1991 Cost/Revenue analysis completed by Management Services Institute, Incorporated (MSI) and approved by the Board of Supervisors as necessary for facility requirements and operations. Additionally, the improved energy efficiency will assist in reducing overall County energy costs. BACKGROUND: In 2006, the Board authorized GSD to work with the then Building Inspection (BI) and Community Development Departments (CDD) in obtaining consulting services and completing a needs assessment and site comparison for a new building to be used by the two departments. Based upon a previous review of county facilities conducted by GSD, the Board recognized the increasing deterioration of the North Wing of the 651 Pine Street, Martinez building occupied by BI and CDD and the increasing costs to maintain this facility. Over the next 20 years, the cost to maintain the North Wing facility was projected to be $15 million. This projected cost did not include renovations to the Application and Permit Center to accommodate customers and the public or any other renovations to support streamlining of services between and within various work groups. Moreover, the $15 million did not include the increased facilities costs resulting from the need to relocate both the Redevelopment Agency staff and the Business and Information Services staff to other sites within the Martinez area. The building needs assessment and site comparison resulted in a recommendation for use of a vacant site on the Summit Center property along Arnold Drive in Martinez. Construction of a new building and the needed site improvements to accommodate the building and customers were estimated to cost from $45 million to $48 million. Use of this site was approved by the Board in late 2007 with direction that GSD, BI and CDD return to the Board with report on design and build processes to be used. The merger of Building Inspection and Community Development Department in 2008 combined with the severe economic downturn prompted the Department of Conservation and Development to initiate discussions with the General Services Department regarding possible alternative buildings already owned by the County that would meet the Development's needs and would reduce the overall costs. A review of available existing County facilities resulted in a more detailed consideration of the 30-40 Muir Road building complex for use by the Department. Based upon the review with GSD, the Department of Conservation and Development has RECOMMENDATION(S): (CONT'D) with status reports on the project at six month intervals. FISCAL IMPACT: Re-use of the 30-40 Muir Road building complex by the Conservation and Development Department relieves the County General Fund of a $1.2 million debt service liability as well as the annual maintenance costs for this building complex. No General Fund money will be used for the renovation. Costs will be covered by that portion of the land development fees determined in the 1991 Cost/Revenue analysis completed by Management Services Institute, Incorporated (MSI) and approved by the Board of Supervisors as necessary for facility requirements and operations. Additionally, the improved energy efficiency will assist in reducing overall County energy costs. BACKGROUND: In 2006, the Board authorized GSD to work with the then Building Inspection (BI) and Community Development Departments (CDD) in obtaining consulting services and completing a needs assessment and site comparison for a new building to be used by the two departments. Based upon a previous review of county facilities conducted by GSD, the Board recognized the increasing deterioration of the North Wing of the 651 Pine Street, Martinez building occupied by BI and CDD and the increasing costs to maintain this facility. Over the next 20 years, the cost to maintain the North Wing facility was projected to be $15 million. This projected cost did not include renovations to the Application and Permit Center to accommodate customers and the public or any other renovations to support streamlining of services between and within various work groups. Moreover, the $15 million did not include the increased facilities costs resulting from the need to relocate both the Redevelopment Agency staff and the Business and Information Services staff to other sites within the Martinez area. The building needs assessment and site comparison resulted in a recommendation for use of a vacant site on the Summit Center property along Arnold Drive in Martinez. Construction of a new building and the needed site improvements to accommodate the building and customers were estimated to cost from $45 million to $48 million. Use of this site was approved by the Board in late 2007 with direction that GSD, BI and CDD return to the Board with report on design and build processes to be used. The merger of Building Inspection and Community Development Department in 2008 combined with the severe economic downturn prompted the Department of Conservation and Development to initiate discussions with the General Services Department regarding possible alternative buildings already owned by the County that would meet the Development's needs and would reduce the overall costs. A review of available existing County facilities resulted in a more detailed consideration of the 30-40 Muir Road building complex for use by the Department. Based upon the review with GSD, the Department of Conservation and Development has concluded that the 30 & 40 Muir Road facility will meet their needs in terms of location and parking, and will provide greater program integration and work efficiencies intended with the Board’s merging of the two departments. Currently DCD is using, or will be using in the next few months, approximately 62,000 square feet of space at four different locations in the Martinez area. DCD occupies 37,500 square feet in the North Wing and Main Administration Building at 651 Pine Street. An additional 5,000 square feet is rented office space at 600 Main Street. The Redevelopment staff occupies 7,500 square feet at the Summit Center on Arnold Drive. The Weatherization Program currently occupies another 7,500 square feet on Glacier Drive at the Probation/Juvenile Hall complex which is used both by staff and for storage of equipment and supplies used for weatherization of homes; it is anticipated that expansion of the weatherization program will require another 1,000 feet of materials storage. Additionally, DCD has recently vacated public storage facilities and relocated files and other land use documents into 3,500 square feet located on the Probation/Juvenile Hall site. Use of the 30-40 Muir Road site by DCD would allow consolidation of all department operations and storage into one facility. The DCD operations would take up the entire square footage available in the Muir Road buildings. COST CONSIDERATION The estimated cost of building a new 64,000 square foot building located at the Summit Center on Arnold Drive is $45 million to $48 million. The estimated cost of improvements for both Muir Road buildings with 63,000 square feet is approximately $15 million with an additional $1.5 million for energy efficiency measures and technology upgrades to the buildings and $1.2 million in existing County debt service on the two buildings. Moreover, the monthly occupancy cost for DCD in its current locations averages out to be $0.75 per square foot. The monthly occupancy cost at 30 & 40 Muir Road would be approximately $0.72 per square foot. Occupancy costs include utilities, insurance, custodial, grounds, garbage pickup, and ongoing building maintenance and repairs. GSD has estimated that over the next 20 years, maintenance costs for DCD at 651 Pine Street will be $15 million. DCD would also have to cover an additional $1.9 million in rent costs over the next 20 years for the space at 600 Main Street and for the 3500 square feet of file storage on Glacier Drive based upon the current rental charges. The combined costs of $16.9 million for maintenance and rent on existing space not only fully cover the costs for the improvements to the Muir Road buildings but also provides DCD with space that can be used to more efficiently serve customers and the general public. 20-YEAR COST COMPARISON TO RENOVATE AND RE-USE 30/40 MUIR ROAD FOR DCD concluded that the 30 & 40 Muir Road facility will meet their needs in terms of location and parking, and will provide greater program integration and work efficiencies intended with the Board’s merging of the two departments. Currently DCD is using, or will be using in the next few months, approximately 62,000 square feet of space at four different locations in the Martinez area. DCD occupies 37,500 square feet in the North Wing and Main Administration Building at 651 Pine Street. An additional 5,000 square feet is rented office space at 600 Main Street. The Redevelopment staff occupies 7,500 square feet at the Summit Center on Arnold Drive. The Weatherization Program currently occupies another 7,500 square feet on Glacier Drive at the Probation/Juvenile Hall complex which is used both by staff and for storage of equipment and supplies used for weatherization of homes; it is anticipated that expansion of the weatherization program will require another 1,000 feet of materials storage. Additionally, DCD has recently vacated public storage facilities and relocated files and other land use documents into 3,500 square feet located on the Probation/Juvenile Hall site. Use of the 30-40 Muir Road site by DCD would allow consolidation of all department operations and storage into one facility. The DCD operations would take up the entire square footage available in the Muir Road buildings. COST CONSIDERATION The estimated cost of building a new 64,000 square foot building located at the Summit Center on Arnold Drive is $45 million to $48 million. The estimated cost of improvements for both Muir Road buildings with 63,000 square feet is approximately $15 million with an additional $1.5 million for energy efficiency measures and technology upgrades to the buildings and $1.2 million in existing County debt service on the two buildings. Moreover, the monthly occupancy cost for DCD in its current locations averages out to be $0.75 per square foot. The monthly occupancy cost at 30 & 40 Muir Road would be approximately $0.72 per square foot. Occupancy costs include utilities, insurance, custodial, grounds, garbage pickup, and ongoing building maintenance and repairs. GSD has estimated that over the next 20 years, maintenance costs for DCD at 651 Pine Street will be $15 million. DCD would also have to cover an additional $1.9 million in rent costs over the next 20 years for the space at 600 Main Street and for the 3500 square feet of file storage on Glacier Drive based upon the current rental charges. The combined costs of $16.9 million for maintenance and rent on existing space not only fully cover the costs for the improvements to the Muir Road buildings but also provides DCD with space that can be used to more efficiently serve customers and the general public. 20-YEAR COST COMPARISON TO RENOVATE AND RE-USE 30/40 MUIR ROAD FOR DCD Estimated Cost to Renovate Occupancy Expenses (20-Yr.) Maintenance Cost Rent Costs Energy Efficient and IT Improvements Re-Use/ Repair Base Cost Total 20-Year Cost 20-Year Occupancy 30/40 Muir Road $15m $10.8m $1.5m $16.5m $27.3m Remain in Existing Space $10.2m $15m $1.9m $16.9m $27.1m Cost Savings <$400,000>$200,000 *Costs do not include $1.2 million in existing County debt service that will be covered by DCD BENEFITS As noted, DCD is currently located in four separate sites in the Martinez area. Within the 651 Pine Street buildings, DCD is located on 4 floors within the North Wing and one floor of the Main Administration Building. Relocation of DCD into the 30-40 Muir Road buildings would both eliminate delays in work processing due to travel times between the buildings as well as allow more effective location of various staff groups to better serve the public. For example, proximity of Transportation Planning, Conservation, Solid Waste and Recycling programs to Current and Advance Planning, the Application and Permit Center, Redevelopment, New Construction, Neighborhood Preservation, Weatherization and Code Enforcement would provide opportunities for greater integration of these services. Improving the awareness of the broad spectrum of programs and resources available within DCD on the part of all DCD staff will assure that they are able to better assist customers and members of the general public in accessing programs. CONSEQUENCE OF NEGATIVE ACTION: DCD will continue to struggle with the inefficiencies caused by work in multiple locations. The County $1.2 million debt service on 30 – 40 Muir Road will not be retired. Full integration of DCD programs will be hindered by fragmentation inherent in multiple work locations. Total 20-Year Cost $27.3m $27.1m $200,000 *Costs do not include $1.2 million in existing County debt service that will be covered by DCD BENEFITS As noted, DCD is currently located in four separate sites in the Martinez area. Within the 651 Pine Street buildings, DCD is located on 4 floors within the North Wing and one floor of the Main Administration Building. Relocation of DCD into the 30-40 Muir Road buildings would both eliminate delays in work processing due to travel times between the buildings as well as allow more effective location of various staff groups to better serve the public. For example, proximity of Transportation Planning, Conservation, Solid Waste and Recycling programs to Current and Advance Planning, the Application and Permit Center, Redevelopment, New Construction, Neighborhood Preservation, Weatherization and Code Enforcement would provide opportunities for greater integration of these services. Improving the awareness of the broad spectrum of programs and resources available within DCD on the part of all DCD staff will assure that they are able to better assist customers and members of the general public in accessing programs. CONSEQUENCE OF NEGATIVE ACTION: DCD will continue to struggle with the inefficiencies caused by work in multiple locations. The County $1.2 million debt service on 30 – 40 Muir Road will not be retired. Full integration of DCD programs will be hindered by fragmentation inherent in multiple work locations.