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SR 06-27-2017 8A Ci ty Council Report City Council Meeting : June 27, 2017 Agenda Item: 8.A 1 of 18 To: Mayor and City Council From: Karen Ginsberg, Director , Community & Cultural Services David Martin, Director, Planning and Community Development, Susan Cline, Director, Public Works Department, Gigi Decavalles -Hughes, Director, Finance Department Subj ect: Civic Center Multipurpose Sports Field Feasibility Study and Economic Analysis Findings and Options for Next Steps Recommended Action Staff r ecommends that the City Council:  Review and comment on feasibility study and economic analysis findings for the temporary and permanent multipurpose sports field with a softball field overlay; and  Consider options and alternatives and provide direction to staff on next steps. Executive Summary Staff has continued working to advance a multipurpose sports field a t the Civic Center per Council’s direction, including exploring a potential partnership project with the Santa Monica -Malibu School District (SMMUSD) that would develop a permanent multipurpose sports field with a softball field overlay and two levels of s ubterranean parking. City and District staff have come to an initial agreement on proposed terms for a joint use parking and field agreement and an economic analysis was conducted to determine what each agency’s equitable pro rata financial contribution to the project would be , as well as immediate and long -term financial impacts s hould the project move forward. Given the financial impacts identified by the economic analysis, staff recommends Council consider several options and alternatives and provide dir ection accordingly. The Recreation and Parks Commission considered the temporary and permanent multipurpose Civic Center sports field options at its June 15, 2017 meeting and approved a motion to recommend to Council that it direct staff to move forward w ith development of the temporary field option. Background On February 9, 2016 (Attachment A), staff presented the Civic Working Group Final Report and proposed next steps to Council. Council directed staff to explore the 2 of 18 possibility of placing a tempora ry field at the corner of 4 th St reet and Pico B oulevard , to work with partners such as SMMUSD and Santa Monica College on funding options and to return to Council in May 2016 with cost estimates. At the May 24, 2016 Council budget study session (Attachment B), funding totaling $200,000 was identified in FY 2016 -17 as part of the FY 2016 -18 Capital Improvement Program (CIP) for design of the field. Following considerable discussion and in response to public testimony, Council adopted a motion directing staff to earmark funds for the construction of the Civic Center multi -purpose sports field as identified in the adopted 2005 Civic Center Specific Plan and to provide quarterly updates to Council on the status of the project to ensure it moves forward as quickl y as possible. In addition to the aforementioned $200,000 budgeted in FY 2016 -17 for the design of the t emporary Civic Center sports field , the five -year CIP budget plan for FY 2016 -21 also includes the use of $3.25 million in reserve funds for constructio n of the Civic Center sports field in FY 2018 -19. On October 25, 2016 (Attachment C), staff presented a quarterly update on the project at a Council study session. Following the presentation, Council directed staff to initiate a discussion with Coastal C ommission staff regarding the temporary sports field project on the Civic Center parking lot and its resulting removal of approximately 600 spaces of surface parking; continue discussions with SMMUSD staff regarding a potential partnership project in the C ivic Center to include subterranean parking and a permanent multi -purpose sports field with associated permanent amenities; and to reissue the Request for Proposals (RFP) to a wider range of potential firms for the design of the temporary field in an effor t to identify a fee proposal that was aligned with the $200,000 budget in the FY 2016 -17 CIP budget. Staff proceeded per Council’s direction and issued an Information Item on January 17, 2017 to provide Council with an interim progress update (Attachment D). S taff returned to Council on February 28, 2017 to deliver an update on discussions with Coastal Commission staff, ongoing negotiations with SMMUSD, and a plan to award the feasibility and concept portion of the design contract to RJM Design Group Inc. (Attachment E). Council directed staff to continue negotiations with SMMUSD regarding the partnership project and set a definitive deadline of June 2017 to either reach an agreement or end negotiations and proceed with advancing the temporary multipurpose sports field without subterranean parking. Council also directed staff to develop a 3 of 18 comprehensive plan for the sports field to ensure future needs of the Civic Auditorium were considered and the field would not impede its rehabilitation. Discussion Feasi bility Analysis and Design Concepts An interdepartmental team of City and SMMUSD staff conducted intensive discussions and collaborated with consultants from RJM Design to determine the feasibility of two options for a multipurpose sports field at the Civi c Center: a temporary field with no new parking spaces added and a permanent field with subterranean parking. Option 1: Temporary Multipurpose Sports Field at the Civic Center The temporary field option (Exhibit 1) would feature a regulation size multipur pose sports field at grade with dimensions comparable to the existing field at Airport Park (225’ x 360’). The feasibility analysis determined a softball field overlay could be accommodated on the site with a 225’ centerfield line and a 200’ foul line. Due to site constraints, the softball infield would be composed of synthetic turf rather than the traditional clay material to allow soccer and other sports to be played on the field. Other amenities would include lighting, fencing and containment netting aro und the perimeter of the field (approximate combined height of 26’), a portable restroom trailer, temporary storage space, temporary spectator seating, a moveable homerun fence, and chain -link dugouts and bullpens. Access to the temporary field site would be provided through the existing Civic Center Drive and Main Street parking lot entrances. The existing emergency ingress and egress at Pico Boulevard would be retained. 4 of 18 Exhibit 1: Temporary multipurpose sports field This option would present significa nt challenges due to the amount of surface parking displaced. A comprehensive parking study of the area surrounding the Civic Center, including the Downtown, would be needed to demonstrate that the loss of parking would not impede coastal access in order t o secure approval of a Coastal Development Permit from the California Coastal Commission . Additionally, City staff , Santa Monica High School (Samohi) faculty and students , and visitors to the Civic C enter who currently park in the lot would be displaced an d alternative arrangements would need to be considered. The Courthouse would also be affected by the displacement of parking and its administration has expressed serious concerns with the project as proposed as well as with other upcoming development proj e cts within the Civic Center (further detailed below ), citing the need for employee parking and accessible parking for patrons visiting the court to serve jury duty and seek legal assistance . Furthermore, the significant parking loss could likely impact fut ure reuse of the Civic Auditorium as prospective 5 of 18 private partners may consider the venue to be an unfavorable investment without sufficient convenient parking . Based on the feasibility study and concept design, it is estimated the temporary multipurpose s ports field would cost approximately $8.6 million. This estimate includes the aforementioned amenities, projected future cost escalation, and an allowance for hazardous material removal and remediation. The estimate is considerably higher than previous est imates as it includes costs associated with adding the softball field overlay, contingency for design development, and site constraint construction cost premiums that were not originally included in earl ier project cost estimates. Additionally, the constru ction market has experienced a period of inflated costs due to a surge in demand and a shortage of labor , resulting in increased escalation projections . If this option were selected, next steps would include:  Environmental review pursuant to the Califor nia Environmental Quality Act (CEQA), amending the Civic Center Specific Plan (CCSP) as needed, c ompleting design and construction documents with RJM Design to definitively determine funding needs for the FY 2018 -2020 CIP budget . Staff would return to Coun cil as necessary to award a contract for this work.  Conducting the aforementioned parking study in preparation for Coastal Commission review at an estimated cost of $250,000 (currently unbudgeted ). Undertaking and managing this unanticipated step would req uire a considerable amount of staff time and would divert staff resources from other efforts. Staff would return to Council as necessary to identify funds and award a contract to a parking consultant following a competitive selection process.  Discussions w ith SMMUSD to determine whether they would participate in the development of the temporary field and provide funding to support the softball overlay for Samohi use (a SMMUSD priority ).  Discussions with Courthouse staff to address alternatives to lost surfa ce parking both during and following construction. 6 of 18 Construction of the temporary field w ould potentially begin in March 2020 with the field opening in March 2021 . Given the need for a comprehensive parking study, Coastal Commission review and approval, ap propriate environmental review , and amendment of the CCSP to address the field setback along Pico Boulevard , the timeline is a realistic estimate but could be subject to change if any unforeseen circumstances are encountered . Additionally, the timeline pre sents challenges given the schedules of other construction projects planned in the Civic Center, with projects overlapping at times from September 2017 through March 202 1 (see chart below). If these projects were constructed simultaneously, special attenti on would need to be pa id to ensure there is sufficient and safe workspace for each project zone and contractor laydown and storage areas would need to be accommodated on site and/or off site . It is important to note excessive site constraints typically resul t in substantially higher construction costs and could result in project delays. Furthermore, with overlapping construction schedules, the Civic Center surface parking lot would be largely unavailable for an extended period . Projects Estimated Start Estim ated Finish City Services Building (CSB) September 2017 Spring 2020 Early Childhood Education Lab School (ECLS) Late 2017 / early 2018 Summer 2019 Sustainable Water Infrastructure Project (SWIP) April 2019 October 2020 Temporary Multipurpose Sports Fie ld March 2020 March 202 1 Option 2: Permanent Multipurpose Sports Field at the Civic Center with Two Levels of Subterranean Parking The permanent sports field option (Exhibit 2) would also feature a regulation size soccer/multipurpose sports field at gr ade with dimensions comparable to the existing field at Airport Park and a softball field overlay with a 225’ centerfield line and a 200’ foul line. Similar to the temporary field option, the permanent softball infield would be composed of synthetic turf r ather than the traditional clay material. Other amenities would include lighting, containment fencing and netting around the perimeter of the field 7 of 18 (approximate combined height of 26’), a permanent structure with restrooms and storage space, spectator seat ing, a moveable homerun fence, dugouts , and bullpens. Exhibit 2: Permanent multipurpose sports field with two levels of subterranean parking Most notably, the permanent sports field option would provide approximately 700 – 725 spaces of subterranean parking on two levels. The parking structure would be accessed by a ramp adjacent to the westerly edge of the Early Childhood Lab School site (ECLS; formerly named the ECEC). To accommodate access to the parking structure ramp, Civic Center Drive would be extended through the parking lot to Main Street and the existing Main Street driveway would be permanently closed as contemplated by the CCSP. A bike connection from Pico Boulevard to Civic Center Drive would be included and would run between the westerly edge of the field and the Civic Auditorium. The permanent field and parking structure has been estimated to cost approximately $95.4 million including escalation to the midpoint of construction and would include the 8 of 18 aforementioned amenities and site impro vements as well as earthwork and underground utility relocation to allow for two levels of subterranean parking. This estimate is higher than the previous estimate of $80 – 84 million and is attributed to recent marked inflation in the construction industr y and inclusion of costs associated with the softball field overlay, contingency for design development, projected future cost escalation, site constraint construction cost premiums , and a higher allocation for relocation of underground utilities. The cost to construct the parking garage is estimated to be approximately 91% of the total project cost. Given the Council’s commitment to constructing additional sports fields as part of the Airport Park expansion and the City’s other capital project obligations , the City’s financial contribution of nearly $48 million towards construction of a permanent field with subterranean parking would need to come from passage of a potential local general obligation bond i n November 2018. This would require two -thirds vote r approval and this project alone would constitute a large portion of the proposed citywide park funding measure . On April 25, 2017 , Council directed staff to pursue the concept of a park funding measure , including conducting polling (Attachment F). A deci sion by Council whether to put a measure on the November 2018 ballot would be required by August 2018. If this option were selected, next steps would include completing the environmental analysis, ending RJM Design’s contract , and issuing an RFP for full design and engineering services for the permanent field and parking facility . The RFP would incorporate the need for cost estimating services to more definitively estimate costs commensurate with design development. C onstruction of the permanent field cou ld potentially begin in September 2020 and would be completed in approximately 24 months. Given the need for a comprehensive parking study, Coastal Commission review and approval, appropriate environmental review, and amendment of the CCSP to address the l ocation of the sports field and subterranean parking (both are proposed for locations that differ from what was contemplated in the CCSP), the timeline is a realistic estimate but could be subject to change if any unforeseen circumstances are encountered . 9 of 18 Moreover , as described below in the proposed partnership with SMMUSD, the Board of Education would need to determine if the permitting process would necessitate the involvement of the Division of the State Architect (DSA) since students may use the multi purpose sports field for physical education during school hours. It is important to note that DSA approval commonly takes 12 months from plan submittal to permit issuance , and could delay the project schedule as well as add further costs. Similar to the te mporary field, the construction of the permanent field would take place during a time when the City Services Building an d the SWIP project are also under construction in the Civic Center area (see chart below). Projects Estimated Start Estimated Finish City Services Building (CSB) September 2017 Spring 2020 Early Childhood Education Lab School (ECLS) Late 2017 / early 2018 Summer 2019 Sustainable Water Infrastructure Project (SWIP) April 2019 October 2020 Permanent Multipurpose Sports Field with Parki ng September 2020 September 2022 Given that these projects are proposed concurrently and wo uld entail the temporary elimination of surface parking during overlapping construction periods, alternatives for replacement parking would need to be addressed fo r current Civic Center parking users. Proposed Partnership with SMMUSD Since receiving direction from Council at the October 25, 2016 meeting, City staff have met regularly with SMMUSD staff to discuss and negotiate proposed terms that would be included i n a joint use agreement for the permanent multipurpose sports field and subterranean parking structure. Should Council choose to move forward with th is option, proposed terms would be as follows:  The joint use a greement term would be 55 -years with a possib le 45 -year option to extend for use of the sports field . 10 of 18  To expedite the project SMMUSD would advance up to $4 million for design and pre -construction costs with the expectation that the City would reimburse SMMUSD for the City’s pro rata share of these c osts as determined by the economic analysis (discussed in the next section of the report ), regardless of whether the City obtains local voter approval for bond financing .  The City and SMMUSD would each pay its pro rata share of construction costs with the understanding that construction of the project would be contingent upon local voter approval of the parks bond measure .  City would oversee and manage all aspects of the design and construction of the project through a collaborative process with SMMUSD par ticipation. If DSA approval were determined to be a necessary component of the project, a DSA inspector would need to be hired to be on site during construction.  City would retain land ownership and would own the sports field and subterranean parking struct ure.  City would oversee all operations and maintenance functions of the field and the subterranean parking structure.  SMMUSD would have exclusive use of the sports field Monday through Friday from 2:30 pm to 6:00 pm on operational school days.  SMMUSD would have exclusive rights to use a specified number of guaranteed parking spaces (anticipated need being 300 or fewer spaces) on Monday through Friday, reserved until 10:00 am, during the regular academic year (from the first day of instruction in August to t he last day of instruction in June). After 10:00 am, the spaces not occupied would be made available to the general public; this would require additional management by staff and/or with technology. The number of guaranteed parking spaces needed outside of the regular academic year would be far fewer. SMMUSD would not comp ensate the City for use of the guaranteed parking spaces.  SMMUSD would receive an allocation of parking validation s for up to 25 special events, the exact amount of which has yet to be nego tiated. 11 of 18  SMMUSD would agree to comply with the City's Transportation Demand Management Ordinance (SMMC Chapter 9.53) terms as a condition of exclusive use of the reserved parking spaces. Economic Analysis The proposed terms for use of the permanent field and parking were considered in an economic analysis conducted by a team of consultants from Allan D. Kotin & Associates and Economic & Planning Systems (EPS). The economic analysis was commissioned to determine the overall financial feasibility of the perm anent field project and an equitable basis for the City and SMMUSD to share costs associated with the project’s development (Attachment G ). The analysis examined the net cash flow of the existing condition and projected net cash flow of the temporary field for comparison. In addition to proposed field and parking usage plans , the economic analysis studied capital costs, projected maintenance , operational parking and field costs, projected revenues, and projected savings SMMUSD would achieve by avoiding buil ding parking and a softball field on the Samohi campus. Given these considerations, the analysis recommended the City and SMMUSD each contribute 50% of the total project costs , based upon the following assumptions: 1. The City would realize all potential p arking revenues by the e nd of the 55 -year lease term; 2. SMMUSD would complete its master plan to construct permanent parking on the Samohi campus by 2044; and 3. SMMUSD would not be required to pay for use of any guaranteed parking spaces in the Civic Center pa rking lot until its debt to finance the project is retired (anticipated to occur by 2045 ). Given th e pro rata share, initial calculations, and current project cost estimates, development of a permanent field at the Civic Center would cost SMMUSD and the City approximately $47.7 million each. As noted previously, the City’s contribution would be dependent upon passage of a local bond measure. While it is premature to identify the 12 of 18 ultimate size of such a local bond measure , it is clear that a sizable portio n of a future funding measure would be required to realize a project of this magnitude. Other priority park ne eds identified by the community such as the construction of the 12 -acre expansion of Airport Park, the expansion of Memorial Park, and land acquis ition for new parks, could potentially be deferred if sufficient funding is not available. If voters do not approve such a bond measure, the City would still need to reimburse SMMUSD for 50% of the design costs expended. The economic analysis used the afo rementioned pro rata share to determine the projected net cash flow for each party for the proposed 55 -year term of the joint use agreement (2020 through 2075 ) for a comparative analysis of existing conditions, a temporary sports field, and a permanent fie ld with subterranean parking. The financial impacts of constructing either a temporary field or the permanent multipurpose sports field with subterranean parking on the Civic Center parking lot would be significant . If a permanent field were built, it is e stimated the City’s net cash flow , assuming present value rates, would be -$43.9 million over the full 55 -year joint use agreement term. SMMUSD’s net cash flow would be -$4.8 million over the 55 -year term of the agreement. If a temporary field were built , it is estimated the City’s net cash flow would be -$16.7 million over a 55 -year term. To ensure consistency, the economic analysis calculated SMMUSD’s net cash flow for the temporary field as well (-$6.1 million over a 55 -year term), with the assumption the City would finance 100% of the temporary project. However, it is important to note the City and SMMUSD staff have not discussed a potential partnership for the temporary field. Furthermore, because the temporary project eliminates most of the surface p arking on the Civic Center lot , the project would not provide SMMUSD with guaranteed access to a predetermined number of parking spaces, which is arguably the most valuable financial benefit to SMMUSD of the proposed permanent field and parking partnership . Alternatives 13 of 18 The economic analysis illustrates the immediate and long -term financial impacts that both the permanent and temporary multipurpose sports field options would have on the City and SMMUSD. Given the significant investment and risk that would be required by both agencies, staff recommends Council consider the benefits and costs of each of the aforementioned scenarios as well as the following possible alternatives : Alternative 1: Permanent Multipurpose Sports Field at the Civic Center with One Level of Subterranean Parking One alternative is a permanent multipurpose sports field with the softball field overlay and one level (approximately 325 spaces) of subterranean parking. The preliminary estimated capital cost of this alternative is $60 mill ion and the project timeline would be similar to that of the permanent field with two levels of parking. While the total capital cost is significantly lower than the permanent field with two levels of parking, there would also be fewer benefits. W ith only 325 parking spaces, the City would likely not be in a position to grant Samohi exclusive access to the number of spaces required to meet the needs of its faculty and staff, making this option less viable as a partnership with SMMUSD. Furthermore, fewer par king spaces would result in less parking availability for City and Courthouse staff and visitors. Alternative 2: Temporary Multipurpose Sports Field at the Civic Center with Offsite Parking Another alternative for consideration is the development of a te mporary multipurpose sports field on the Civic Center site with parking leased offsite at a nearby location to accommodate parking needs of the Civic Center, Courthouse, Civic Auditorium, sports field, and Samohi. Staff would proceed with development of a field at the Civic Center and concurrently undertake a process to identify offsite parking, preferably within walk ing distance of the Civic Center. This alternative would provide parking for the sports field and could meet the parking needs of the City, Co urthouse, Samohi, and the Civic Auditorium and possibly, wholly or partially , address the Coastal Commission’s requirements. While this alternative could eliminate the need to build new subterranean parking and thereby save capital costs, the lease costs w ould need to be negotiated 14 of 18 and incurred at least in part by the variety of entities that would utilize the spaces . This option assumes proximate alternative parking sites could be identified within the dyna mic development environment and in consideration o f future public and private projects near the Civic Center and the Downtown . Alternative 3 : Defer Development of the Multipurpose Sports Field at the Civic Center, Develop a Temporary Multipurpose Sports Field at Memorial Park, and Issue RFP for Civic Au ditorium Operator The FY 2017 -18 CIP Budget includes funding in the amount of $1.35 million for the development of a Master Plan for Memorial Park, which would include both the existing park and the 2.91 -acre parcel that currently houses the Colorado Yards (also known as the f ormer Fisher Lumber site). C ouncil could consider directing staff to delay the master planning process and instead proceed with utilizing a portion of the Colorado Yards , combined with reconfiguring some of the existing park facilities and amenities , to design and construct a temporary multipurpose sports field at Memorial Park. This multipurpose sports field would be used by Samohi and the community instead of developing the Civic Center field at this time (see Exhibit 3 below). Samo hi spor ts teams currently utilize Memorial P ark’s baseball and softball fields as well as the indoor basketball courts. While this alternative would provide an additional multipurpose field centrally located in the City, it would not be adjacent to Samohi thereby requiring students to continue to travel to Memorial Park for practice and games. Should this alternative be constructed, C ity staff would commit to assis t SMMUSD with identifying safe modes of transportation for student s from Samohi to the park , i ncluding exploring a possible direct shuttle option . Following the design process and appropriate environmental review, c onstruction of the field at Memorial Park could potentially begin in July 2019 with the field opening in July 2020. The estimated proj ect timeline would be a faster option than building the proposed temporary field at the Civic Center as a field at Memorial Park would not require a comprehensive parking study or an amendment to the CCSP, and would not require a Coastal Development Permit since it would not be in the coastal zone. 15 of 18 Staff would proceed concurrently with issuing an RFP for a field design consultant and an RFP for an operator of the Civic Auditorium, per Council’s directi on to staff on February 9, 2016 when the Civic Working Group’s Final Report was presented to Council (Attachment A). At that time, staff recommended Council focus on the Civic Auditorium by issuing an RFP for an operator and deferring decisions about the rest of the site until other planning processes had bee n completed and more information was available (e.g. Samohi Campus Plan, Downtown Community Specific Plan, Airport Park Expansion, and the possible exploration of ways to finance sports fields such as through public -private partnerships). Council directed staff to issue an RFP for an operator with the stipulation that proposals must be consistent with the ECLS as designed and the sports field as represented in the 2005 CCSP. The RFP has not been issued, pending information related to the design and ultimate direction of the sports field. 16 of 18 Exhibit 3: Temporary Multipurpose Sports Field at Memorial Park Alternative 4: Defer Development of the Multipurpose Sports Field at the Civic Center and Issue RFP for Civic Auditorium Operator As mentioned above, Co uncil previously directed staff to issue an RFP for an operator with the stipulation that proposals must be consistent with the ECLS as designed and the sports field as represented in the 2005 CCSP. A decision to issue the RFP now and defer the field would likely be supported by Civic Auditorium advocates and preservationists , but strongly opposed by the Samohi advocates and broader community that voiced an immediate need for a multipurpose sports field in close proximity to the high school, as well as a ne ed to implement the plan as contemplated in 17 of 18 the 2005 CCSP. This alternative would also not address the need for a softball field near Samohi. Commission Action The Recreation and Parks Commission considered the temporary and permanent multipurpose Civic C enter sports field options at its June 15, 2017 meeting and approved a motion to recommend to Council that it direct staff to move forward with development of the temporary field option. The economic analysi s had not been finalized at the time of the meeti ng and, therefore, the Commission’s decision was based upon the timeline and capital cost considerations. The Commission cited concerns with the permanent field’s overall capital cost as well as dissatisfaction with the possibility of utilizing a large per centage of a potential future parks bond to finance it. Summary There are opportunities, challenges, and risks associated with each option and alternative considered in this report. Several options and alternatives provide field space in an ideal locatio n but at great financial costs and with significant risks. Considering all factors, the least costly , least risky , and fastest alternative would be to develop a temporary multipurpose sports field at Memorial Park. However, this approach would not meet the desires of the Samohi community who have advocated for a multipurpose sports field with a softball field overlay adjacent to the high school campus. Staff recommends Council consider all costs, risks, and benefits associated with each option and alternati ve and provide direction to staff on how to proceed. For Council’s reference, a summary of options and alternatives is provided in Attachment H . Financial Impacts and Budget Actions There would be no immediate financial impacts or budget actions required but there would be future impacts associated with each option and alternatives as described in previous sections of this report. 18 of 18 Prepared By: Melissa Spagnuolo, Principal Administrative Analyst Approved Forwarded to Council Attachments: A. February 9, 2016 Staff Report (Web Link) B. May 24, 2016 Staff Report (Web Link) C. October 25, 2016 Staff Report (Web Lin k) D. January 17, 2017 Information Item (Web Link) E. February 28, 2017 Staff Report (Web Link) F. April 25, 2017 Staff Report (Web Link) G. Civic Field Economic Ana lysis Summary H. Summary of Options & Alternatives I. Written Comments ADK &A 2 13.623.3841 Cell 213.369.3841 Fax 866.685.1377 Allan D. Kotin & Associates Real Estate Consulting for Public Private Joint Ventures 6801 Las Olas Way, Malibu , CA 90 26 5 akotin@adkotin.com www.adkotin.com Memorandum TO : Susan Cola, City Attorney’s Office, City of Santa Monica DATE : June 19 , 2017 CC : Santa Monica Unified School District FROM : Allan D. Kotin and Andrew E. Kaplan RE : S ANTA M ONICA C IVIC L OT P ARKING AND S PORTS F IELD J OINT F INANCING A NALYSI S The City of Santa Monica (City) and the Santa Monica Malibu U nified S chool District (District) currently share use of City -owned and operated parking facilities located on the west side of F ourth Street between Olympic and P ico Boulevards in the City of Santa Monica. The District contracts with the City to use approximately 200 spaces in either the Civic Center Parking Lot (Civic Lot) or adjacent Civic Center Park ing Structure for 11 months out of the year and, on 25 special event floater days , up to 750 spaces. In response to re -designation of the Civic L ot for use as a s ports field in the City’s adopted Civic Center Specific Plan, the City and school District have engaged in a conversation about construction on the Civic Lot site of a sports field at grade combined with a major subterranean garage below it. The two agencies retain ed the team of Allan D Kotin & Associates (ADK&A) and E conomic & P lanning S ystems (EPS) to undertake an analysis of the financial consequences of this development and to provide a recommendation about an equitable basis for sharing the costs of the project. The guiding question underl ying project work was: Through analysis of different cash flow scenarios, what is an acceptable and equitable basis for the City and District to share financing and use of a proposed facility to be located in place of the current Civic lot? Allan Kotin of ADK&A served as project manager for this assignment , and Andrew Kaplan of EPS served as the principal analyst. The authors would like to tha nk the staff of both the City and the District for their extensive cooperation in providing input and reviewing draft results. CONCLUSION AND RECOMMENDATIONS T he Consulting Team arrived at a two -part recommendation, together with some important key assump tions , which are summarized below: 1. Split Cost of Propos ed Permanent Facility evenly “50 /50”: If City and District proceed with the project, the District maintains its current master plan, and there are no material changes in assumptions, a 50/50 cost split, combined with monthly parking cost relief to the District , represents a fair and balanced allocation of cost and usage. 2. Consider an Alternative : The extraordinary cost of the proposed parking and imperative for sports use at grade suggest that lower -cost offsite parking alternatives be explored. While there are numerous specific assumptions discussed in the body of the report, a few key assumptions sh ould be noted at the summary level. It is assumed that the facility will cost $95 ADK &A Memorandum Re: S ANTA M ONICA C IVIC L OT P ARKING AND S PORTS F IELD J OINT F INANCING A NALYSIS ADK&A / EPS Page 2 June 19, 2017 million and that each of the two agencies will independently finance it through the issuance of debt on terms that each consider s appropriate. The measured benefits to the Ci ty primarily include operating revenues, while benefits to the District include parking credits and substantial avoided costs associated with future scheduled on -campus construction of a major parking facility and softball field. BACKGROUND T he existing C ivic Lot abuts a City -owned parking structure and the Santa Monica C ivic Auditorium and provid es 96 0 parking s paces. A planned Early Childhood Lab School (ECLS) will occupy the southern side of the Civic Lot and reduce available parking spaces to 730 . The adopted Civic Center Specific Plan requires that the Civic Lot become a sports field. B oth the City and the District are heavily dependent on the Civic Lot for ongoing parking need s —the District even more so in coming years as build -out of its campus master plan will temporarily reduce on -campus parking. Consequently, the City and District have engaged in negotiation to jointly finance a potential subterranean parking fa cility that would be located below the designated sports field. POLICY FRAMEWORK The framework for the analysis and a potential future negotiation is informed by both City and District needs. T he City ’s primary need is to accommodate Civic Center Specifi c Plan designation of the Civic Lot as a sports field . For this , two options are considered : a “Permanent” scenario with a sports field at grade and subterranean parking beneath ; and a “Temporary” scenario with a field at grade but no parking 1 . A conceptual land use plan for the “Permanent” scenario with associated adjacencies is shown on the right. The District ’s need mainly concern s parking , which include s scheduled demand through 2044 for u p to 300 daytime off -campus spaces each year (August through June, Monday through Friday); and up to 7 5 0 off -campus spaces for 25 annual event days. In addition , the District could avoid construction costs contemplated in its campus master plan by renting parking and ballfield faciliti es off campus rather than bu ilding them on campus . B ecause the “Permanent” scenario could potentially address these needs, the District is will ing to consider sharing financing for its development. 1 As noted later, the Consultant Team was directed to analyze financial consequences over a 55 -year timeframe. No information was provided about what might happen at the termination of the "Temporary" scenario. For sake of comparison with other scenarios, the analysis thus assumes the "Temporary” operates for the full 55 -year term and is re - surfaced at 10 -year intervals. ADK &A Memorandum Re: S ANTA M ONICA C IVIC L OT P ARKING AND S PORTS F IELD J OINT F INANCING A NALYSIS ADK&A / EPS Page 3 June 19, 2017 METHOD OF APPROACH The analysis focuses on three separate scenario outcomes for the Civic Lot site. The main scenario is for the “Permanent” facility. In addition, scenarios for the Existing facility and a Temporary facility option are also considered to provide a basis of comparison with the Permanent scenario. All scenario program parameters were provided by the City of Santa Monica. Scenario Descriptions of the three scenarios are shown in the table below. T hree Scenarios Analyzed Permanent (the focus of this effort) Existing (for reference and comparison) Temporary (f or reference and comparison ) • New 725 -space facility built at estimated cost of $95 million • Cost shared equally between District and City • No charge to District for monthly parking during financing term • Continued operation by City after debt retired • Projected current Civic Lot operations less 230 spaces (to 730 total) to be replaced by the Early Child hood Lab School (EC L S ). • Playing field replaces existing surface Civic lot parking at estimated cost of $8.6 million financed 100% by City • Facility renovated every 10 years and not replaced Analysis of the three scenarios is based on an estimate of cash flows that each scenario generates for the City and the District over a 55 -year term. All assumptions for this cash flow analysis are based on data provided and reviewed by the City and District. For example, in the Permanent facility scenario, the City ’s cash flow sources include revenue from operating the ballfield and parking , and its uses include construction financing and operating costs. In addition, the City will incur anot her cash flow use by granting the District a parking credit. For the District in the Permanent facility scenario , cash flow sources include a parking rent credit and, in the later years of the term, credit for avoided construction cost that it otherwise wo uld incur (for on - campus parking and an on -campus softball field scheduled as part of the District campus master plan ) if the Permanent facility is not built. District uses for the Permanent facility only include financing costs. T he table on the following page break s down all sources and uses considered in the cash flow analysis for each scenario. The time period for analysis is set at 55 years. The timing of uses incurred and sources realized is based on current construction schedules f or the Permanent and/or Temporary facilities and for the District campus master plan. ADK &A Memorandum Re: S ANTA M ONICA C IVIC L OT P ARKING AND S PORTS F IELD J OINT F INANCING A NALYSIS ADK&A / EPS Page 4 June 19, 2017 Cash Flow Analysis Assumptions Permanent Scenario Existing Scenario Temporary Scenario City District City District City District So u r c e s • Parking revenue from 725 spaces • Operating revenue from ballfield use • Facility residual value calculated in the final year of the term. • Rent credit for off - campus parking • Avoided cost by exchanging 760 on -campus subterranean with 200 surface spaces in 2041 • Avoided cost by not bui lding on - campus softball field in 2043 • Civic Lot parking revenue from 730 spaces • No Cash flow benefit • Ballfield operating revenue • Avoided cost by not building on -campus softball field in 2043 Us e s • District parking credit (lost revenue ) • Parking and ballfield operating costs • Financing 50% of $95m total cost over 20 years • Financing 50% of $95 m total cost over 25 years • Civic Lot operating costs • Rent for off -campus parking through 2044 • Ballfield operating costs • Financing 100% of $8.6m cost • Rent for off -campus parking through 2044 For both the City and District, m ost of the cash flow expenditure is incurred during the initial financing term (20 years for the City and 25 years for the District), while most of the benefits are realized in the later years . Because of this long gap between expenditure and benefit, the time value of money must be considered in the analysis .2 The mechanism for recognizing time value of money is net present value , a technique in which future revenues and costs a re discounted at a n interest rate that reflects the estimated risk of future values compared to present (today’s) value. Thus, cash flows occurring at different periods of time can be adjusted and summed to into a “net present value ,” which allows them to be compared directly . KEY ANALYTIC ASSUMPTIONS The key assumptions used in the analysis are: 2 T ime value of money (TVM) is the idea that money available in the future is worth less than the same amount in the present. ADK &A Memorandum Re: S ANTA M ONICA C IVIC L OT P ARKING AND S PORTS F IELD J OINT F INANCING A NALYSIS ADK&A / EPS Page 5 June 19, 2017 • Term: 55 years, 2020 -2074 from estimated 2020 construction start (e ncompasses : District Master Plan schedule ending 2044 , potential 20 - and 25 -year bond financing periods , 55 -year ground lease first option interval ) • Inflation: 3% revenue and cost (for both facility construction and operation) • Scarcity premium : 30% applied to parking rates during construction of Permanent Facility and dur ing full duration of Temp Facility operation • Terminal value to City for Permanent Facility calculated in year 55 using 8% cap rate FINANCIAL CONSEQUENCES OF THE PROPOSED PERMANENT FACILITY The chart on the following page shows the net cash flow to the Cit y and District in association with the Permanent facility scenario. Over the 55 -year term, the City will collect approximately $150 million in revenue from parking and $7 million in sports park revenues while foregoing $15 million in parking credits to th e District for a total revenue flow of $141 million. Normal operating expenses of $108 million offset this revenue and yield an operating net of $33 million. To this must be added an estimated $22 million in residual asset value, because the facility is as sumed to become the sole property of the City at the end of the 55 -year term. Financing costs of $77 million, reflecting the City’s 50% share of the total $95 million cost 3 , offset the $55 million in total revenue, yielding a net cash flow loss of $22 mill ion. This loss does not accrue consistently over time, however. In the first 20 years from 2020 to 2039, the City will lose a net $79 million, which will be offset in the final 35 years by a gain of $57 million. The inconsistency of this cash flow is at tributable to financing costs and District parking credits that act as a drain on revenue in the early years of the term followed by a large residual value benefit realized in the term’s final year. The cash flow pattern for the District differs markedly from the City’s, reflecting the different nature of its realized costs and benefits. Over the 55 -year period, the District accrues $136 million in benefit from parking credits and avoided construction costs for its master planned on -campus parking facilit y and softball field. Offsetting this is financing cost of $72 million (lower than the City’s due to the different financing terms 4 ), resulting in a net cash flow gain of $64 million. The contrast between early - and late -occurring cash flow events is eve n more striking for the District, as the only benefit received in the first 25 years during project financing is some relief from parking costs. From 2020 to 2039, the District loses $47 million, which is offset in the final 35 years by a gain of $111 mill ion from avoiding on -campus parking and ball field construction. Compared to 3 Financing charges consist of $47.5 million in principle and approximately $29.5 million in financing costs for the assumed 20 -year bond. 4 Financing charges consist of $47.5 million in principle and approximately $24.5 million in financing costs for the assumed 25 -year bond. ADK &A Memorandum Re: S ANTA M ONICA C IVIC L OT P ARKING AND S PORTS F IELD J OINT F INANCING A NALYSIS ADK&A / EPS Page 6 June 19, 2017 the City, this District benefit is more uncertain because in the future on -campus parking demand may differ greatly from what is predicted now. COMPARATIVE RESULTS OF ALTERNATIVE SCENARIOS I n the chart that follows, the estimated Permanent facility cash flow s are compared with estimated cash flows from the E xisting facility and the Temporary facility alternative. For the City, the $22 million loss from the Permanent fa cility, as measured in whole dollar terms, is equivalent to a $44 million loss in present value. As discussed earlier, because most Permanent facility costs are incurred in the beginning and most gains come at the end, the later gain values are more heavil y discounted, thus reducing their contribution in present -value terms. 2020 to 2030 to 2040 to 2050 to 2020 to 2029 2039 2049 2074 2074 CITY Operating Revenues Parking $10,533 $17,202 $23,118 $98,810 $149,664 Sports Park $462 $754 $1,014 $4,334 $6,564 (District Parking Credit)($6,112)($4,749)($4,124)$0 ($14,985) Subtotal $4,883 $13,207 $20,008 $103,144 $141,243 Expenses Parking $4,833 $7,892 $10,606 $45,332 $68,663 Sports Park $2,787 $4,552 $6,118 $26,148 $39,606 Subtotal $7,620 $12,444 $16,724 $71,481 $108,269 Subtotal Operating ($2,737)$763 $3,284 $31,663 $32,974 2074 Terminal Value $0 $0 $0 $22,067 $22,067 Total Operating ($2,737)$763 $3,284 $53,731 $55,042 Financing ($38,500)($38,500)$0 $0 ($77,000) Net Cashflow ($41,236)($37,737)$3,284 $53,731 ($21,958) DISTRICT Avoided Costs Off-Site Parking Rent $6,112 $4,749 $4,124 $0 $14,985 On-Site Constructed Parking $0 $0 $111,519 $0 $111,519 On-Site Softball Field $0 $0 $9,812 $0 $9,812 Total Avoided $6,112 $4,749 $125,456 $0 $136,317 Financing ($28,820)($28,820)($14,410)$0 ($72,050) Net Cashflow ($22,708)($24,071)$111,046 $0 $64,266 Net Cashflow ($000) ADK &A Memorandum Re: S ANTA M ONICA C IVIC L OT P ARKING AND S PORTS F IELD J OINT F INANCING A NALYSIS ADK&A / EPS Page 7 June 19, 2017 In comparison, the Existing facility for the City yields a positive $43 million in whole dollar terms and a positive $10 million in present -value terms. The variance between Permanent and Existing is therefore $64 million in whole dollar terms and $54 million in present -value terms. The Temporary facility for the City generates a negative whole dollar value o f $47 million, which is equivalent to negative $17 million a s a present valu e . Compared to the Permanent facility, the Temporary generates less revenue but also costs less to finance. The variance between Temporary and Existing facilities for the City is a variance of $90 million in whole dollars and $26 million in present -value dollars. Turning to the District , the Perm anent facility produces a positive $6 4 million whole dollar gain that in present -value terms is actually negative $4.4 million ; as discussed earlier, the late -occurring benefit contributes far less to net present value when discounted to present -value terms and is insufficient to fully offset the present value of early -occurring costs. The Existing scenario for the District, in which costs consist mainly of off -site parking rent and benefits include avoided parking construction costs, generates a positive $96 million whole dollar benefit , which is equivalent to a present value of $11 million . Item 2020 -2030 -2040 -2050 -2020 -2020 -2030 -2040 -2050 -2020 - 2029 2039 2049 2074 2074 2029 2039 2049 2074 2074 Years 1-10 Years 11-20 Years 21-30 Years 31-55 1,2 Years 1-55 Years 1-10 Years 11-20 Years 21-30 Years 31-55 Years 1-55 Existing Facility Operating $3,593 $4,829 $6,490 $27,738 $42,651 ($5,761)($4,749)$107,395 $0 $96,885 Financing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Cashflow $3,593 $4,829 $6,490 $27,738 $42,651 ($5,761)($4,749)$107,395 $0 $96,885 City NPV at 5%, District at 9%$10,230 $11,115 Permanent Facility Operating ($2,737)$763 $3,284 $53,731 $55,042 $6,112 $4,749 $125,456 $0 $136,317 Financing ($38,500)($38,500)$0 $0 ($77,000)($28,820)($28,820)($14,410)$0 ($72,050) Net Cashflow ($41,236)($37,737)$3,284 $53,731 ($21,958)($22,708)($24,071)$111,046 $0 $64,266 City NPV at 5%, District at 9%($43,902)($4,379) Temporary Facility Operating ($2,826)($3,798)($5,104)($21,815)($33,542)($7,489)($6,174)$4,451 $0 ($9,211) Financing ($6,937)($6,937)$0 $0 ($13,873)$0 $0 $0 $0 $0 Net Cashflow ($9,762)($10,734)($5,104)($21,815)($47,415)($7,489)($6,174)$4,451 $0 ($9,211) City NPV at 5%, District at 9%($16,690)($6,082) Variance: Permanent from Existing Operating ($6,330)($4,066)($3,206)$25,992 $12,391 $11,872 $9,498 $18,061 $0 $39,431 Financing ($38,500)($38,500)$0 $0 ($77,000)($28,820)($28,820)($14,410)$0 ($72,050) Net Variance ($44,830)($42,565.75)($3,206)$25,992 ($64,609)($16,948)($19,322)$3,650 $0 ($32,619) City NPV at 5%, District at 9%($54,132)($15,494) Variance: Temporary from Existing Operating ($6,419)($8,627)($11,594)($49,553)($76,193)($1,728)($1,425)($102,944)$0 ($106,097) Financing ($6,937)($6,937)$0 $0 ($13,873)$0 $0 $0 $0 $0 Net Variance ($13,356)($15,563)($11,594)($49,553)($90,066)($1,728)($1,425)($102,944)$0 ($106,097) City NPV at 5%, District at 9%($26,920)($17,198) (1) In City Permanent scenario, the final year of the cashflow term includes total residual value (2) In City Temporary scenario, analysis assumes operation for full 55-year term with re-surfacing at 10-year intervals for the sake of comparision with other scenarios CITY Net Cashflow ($000)DISTRICT Net Cashflow ($000) ADK &A Memorandum Re: S ANTA M ONICA C IVIC L OT P ARKING AND S PORTS F IELD J OINT F INANCING A NALYSIS ADK&A / EPS Page 8 June 19, 2017 DETERMIN ING A N EQUITABLE BASIS FOR PROJECT FUNDING A rational basis for sharing funding responsibilities between the two agencies is a mechanism that balances the projected share of usage with estimated share of project cash flow. Parking revenue is a useful measure of shared parking usage because —more so than utilization percentage —it reflects the market value of the services provided. S pecifically, the share of estimated total revenue the City may realize from parking operations (consisting of both projected parking revenue and District parking credit ) represents the total pool of parking value , and the credit to the District represents its share of that total pool. To allocate share of cash flow, it is appropriate to use the net present value , which compared to whole dollar value, adjusts cash flow to better reflect the time value of money. In this analysis, the net present value discount rate for the District is assumed to be 9%, and for the City it is 5%. The variance in discount rates is in tended to reflect the high uncertainty associated with the District’s projected avoided construction costs, as discussed earlier. As shown in the table below, projected City usage over the 5 5 -year term accounts for 91% of total revenues, co mpared to 9% for the District. At the assumed 9% and 5% discount rates for the District and City respectively, the net present values of the 55 -year project cash flows are negative $4.4 million for the District and negative $44 million for the City, which represent 9% and 91% percent shares of total net project cash flow. Note that in this analysis, the City experiences a $22 million cumulative whole dollar loss while the District experiences a $64 million cumulative whole dollar gain. However, because these net gain s and losses occur over such a wide time frame, the net present value of the City’s $22 million loss is actually greater at negative $44 million, while the District’s yield falls to a negative $4.4 million. Item City District Total Usage Share by Revenue Whole Dollar Parking Revenue ($m) 2020-2074 1 $149.7 $15.0 $164.6 Parking Revenue Share 91%9%100% Cost Share by Net Cash Flow Whole Dollar Net Cash Flow ($m) 2020-2074 2 ($22.0)$64.3 $42.3 Discount Rate 5.0%9.0% NPV of Net Cash Flow ($m) 2020-2074 ($43.90)($4.38)($48.28) NPV Net Cash Flow Share 91%9% (1) Revenue for the District consists of parking rent credits (2) Net Cash Flow = Revenue - operating cost - financing cost ADK &A Memorandum Re: S ANTA M ONICA C IVIC L OT P ARKING AND S PORTS F IELD J OINT F INANCING A NALYSIS ADK&A / EPS Page 9 June 19, 2017 The two graphs below show ing estimated proje ct cash flows for both the City and District help illustrate the inconsistency in timing of Permanent project cash flow . Particularly noticeable is the extreme fluctuation for the District due to huge avoided cost credits in 2041 and 2044. . ($15,000,000) ($5,000,000) $5,000,000 $15,000,000 $25,000,000 $35,000,000 $45,000,000 $55,000,000 $65,000,000 20 2 0 20 2 2 20 2 4 20 2 6 20 2 8 20 3 0 20 3 2 20 3 4 20 3 6 20 3 8 20 4 0 20 4 2 20 4 4 20 4 6 20 4 8 20 5 0 20 5 2 20 5 4 20 5 6 20 5 8 20 6 0 20 6 2 20 6 4 20 6 6 20 6 8 20 7 0 20 7 2 20 7 4 An n u a l N e t C a s h f l o w City Cashflows: Permanent Facility vs. Existing Civic Lot Existing Facility Permanent Facility City’s 20 - year bond paid off District parking credit increase District parking credit ends Revenue operation begins Year 55 terminal value ($15,000,000) ($5,000,000) $5,000,000 $15,000,000 $25,000,000 $35,000,000 $45,000,000 $55,000,000 $65,000,000 20 2 0 20 2 2 20 2 4 20 2 6 20 2 8 20 3 0 20 3 2 20 3 4 20 3 6 20 3 8 20 4 0 20 4 2 20 4 4 20 4 6 20 4 8 20 5 0 20 5 2 20 5 4 20 5 6 20 5 8 20 6 0 20 6 2 20 6 4 20 6 6 20 6 8 20 7 0 20 7 2 20 7 4 An n u a l N e t C a s h f l o w District Cashflows: Permanent Facility vs. Existing Civic Lot Existing Facility Permanent Facility Avoided cost of on - campus sub - terranean parking for both Permanent and Existing scenarios ($111m ) Avoided cost of on -campus softball field $0 cash flow after 2044 for both Permanent and Existing scenarios Ci v i c C e n t e r M u l t i - U s e S p o r t s F i e l d : S u m m a r y o f O p t i o n s a n d A l t e r n a t i v e s Es t i m a t e d C o s t E s t i m a t e d C o n s t r u c t i o n T i m e l i n e O p p o r t u n i t i e s C h a l l e n g e s Op t i o n 1 : T e m p o r a r y F i e l d , n o n e w pa r k i n g $8 . 6 m i l l i o n i n e s t i m a t e d c a p i t a l p r o j e c t co s t s ; u n k n o w n i f S M M U S D w o u l d e n t e r in t o a j o i n t u s e a g r e e m e n t a n d s h a r e a n y co s t s . Ne t c a s h f l o w f o r C i t y o v e r 5 5 y e a r t e r m o f ag r e e m e n t w o u l d b e -$ 1 6 . 7 m i l l i o n (a s s u m e s C i t y w o u l d f i n a n c e 1 0 0 % o f t h e te m p o r a r y p r o j e c t c a p i t a l c o s t s ) . Co m p r e h e n s i v e p a r k i n g s t u d y a t a c o s t o f $2 5 0 , 0 0 0 ( w i l l t a k e a p p r o x i m a t e l y 9 - 1 2 mo n t h s t o c o m p l e t e ) . Ma r c h 2 0 2 0 - M a r c h 2 0 2 1 A d j a c e n t t o S a m o h i . S i g n i f i c a n t n e g a t i v e n e t c a s h f l o w ov e r 5 5 y e a r t e r m . Pa r k i n g d i s p l a c e m e n t p r o b l e m a t i c ; co m p r e h e n s i v e p a r k i n g s t u d y n e e d e d to d e m o n s t r a t e s u f f i c i e n t p a r k i n g ex i s t s i n t h e i m m e d i a t e a r e a t o e n s u r e co a s t a l a c c e s s . Co u r t h o u s e , C i t y , a n d S a m o h i w o u l d be n e g a t i v e l y i m p a c t e d b y l o s s o f pa r k i n g . Pr o j e c t c o u l d r e s t r i c t f u t u r e o p e r a t i o n s of t h e C i v i c A u d i t o r i u m . Wo u l d o v e r l a p w i t h t h e c o n s t r u c t i o n sc h e d u l e s o f t h e C i t y S e r v i c e s Bu i l d i n g ( C S B ; S e p t e m b e r 2 0 1 7 - Ma r c h 2 0 2 0 ) a n d t h e S u s t a i n a b l e Wa t e r I n f r a s t r u c t u r e P r o j e c t ( S W I P ; Ap r i l 2 0 1 9 - O c t o b e r 2 0 2 0 ) . Op t i o n 2 : P e r m a n e n t f i e l d , 2 l e v e l s o f pa r k i n g ( a p p r o x i m a t e l y 7 2 5 s p a c e s ) $9 5 . 4 m i l l i o n i n e s t i m a te d c a p i t a l p r o j e c t co s t s ; 5 0 % p a i d b y b o t h C i t y & S M M U S D . Ne t c a s h f l o w f o r C i t y o v e r 5 5 y e a r t e r m o f ag r e e m e n t w o u l d b e -$ 4 3 . 9 m i l l i o n . Ne t c a s h f l o w f o r S M M U S D o v e r 5 5 y e a r te r m o f a g r e e m e n t w o u l d b e - $ 4 . 4 m i l l i o n . Se p t e m b e r 2 0 2 0 - S e p t e m b e r 2 0 2 2 A d j a c e n t t o S a m o h i . Wo u l d p r o v i d e p a r k i n g t o r e p l a c e Ci v i c l o t s u r f a c e s p a c e s d i s p l a c e d b y th e p r o j e c t . Wo u l d p r o v i d e p a r k i n g f o r f u t u r e C i v i c Au d i t o r i u m o p e r a t i o n s . Hi g h o v e r a l l p r o j e c t c o s t a n d si g n i f i c a n t n e g a t i v e c a s h f l o w o v e r 5 5 ye a r t e r m . Co n s t r u c t i o n c o n t i n g e n t u p o n a l o c a l bo n d m e a s u r e b e i n g a d d e d t o t h e No v e m b e r 2 0 1 8 b a l l o t a n d r e c e i v i n g tw o - t h i r d s v o t e r a p p r o v a l . Wo u l d o v e r l a p w i t h t h e c o n s t r u c t i o n sc h e d u l e s o f t h e C S B ( S e p t e m b e r 20 1 7 - M a r c h 2 0 2 0 ) a n d t h e S W I P (A p r i l 2 0 1 9 - O c t o b e r 2 0 2 0 ) . Revised 06/20/2017 Page 1 of 3 Ci v i c C e n t e r M u l t i - U s e S p o r t s F i e l d : S u m m a r y o f O p t i o n s a n d A l t e r n a t i v e s Es t i m a t e d C o s t E s t i m a t e d C o n s t r u c t i o n T i m e l i n e O p p o r t u n i t i e s C h a l l e n g e s Al t e r n a t i v e 1 : P e r m a n e n t f i e l d , 1 l e v e l o f pa r k i n g ( a p p r o x i m a t e l y 3 2 5 s p a c e s ) Ap p r o x i m a t e l y $ 6 0 m i l l i o n i n e s t i m a t e d ca p i t a l p r o j e c t c o s t s ; u n k n o w n i f S M M U S D wo u l d e n t e r i n t o a j o i n t u s e a g r e e m e n t a n d sh a r e c o s t s . Se p t e m b e r 2 0 2 0 - S e p t e m b e r 2 0 2 2 A d j a c e n t t o S a m o h i . Wo u l d p r o v i d e p a r k i n g t o r e p l a c e ap p r o x i m a t e l y h a l f o f t h e C i v i c l o t sp a c e s d i s p l a c e d b y t h e p r o j e c t . Wo u l d p r o v i d e s o m e p a r k i n g f o r f u t u r e Ci v i c A u d i t o r i u m o p e r a t i o n s . Hi g h o v e r a l l p r o j e c t c o s t . Pa r k i n g d i s p l a c e m e n t p r o b l e m a t i c ; co m p r e h e n s i v e p a r k i n g s t u d y n e e d e d to d e m o n s t r a t e s u f f i c i e n t p a r k i n g ex i s t s i n t h e i m m e d i a t e a r e a t o e n s u r e co a s t a l a c c e s s . Co u r t h o u s e , C i t y , a n d S a m o h i w o u l d be n e g a t i v e l y i m p a c t e d b y l o s s o f pa r k i n g . Co n s t r u c t i o n c o n t i n g e n t u p o n a l o c a l bo n d m e a s u r e b e i n g a d d e d t o t h e No v e m b e r 2 0 1 8 b a l l o t a n d r e c e i v i n g 2/ 3 v o t e r a p p r o v a l . Co n s t r u c t i o n o f s e v e r a l p r o j e c t s i n t h e Ci v i c C e n t e r d u r i n g t h e s a m e ti m e f r a m e . Al t e r n a t i v e 2 : T e m p o r a r y f i e l d a t C i v i c , le a s e p a r k i n g o f f s i t e $8 . 6 m i l l i o n i n e s t i m a t e d c a p i t a l p r o j e c t co s t s ; u n k n o w n i f S M M U S D w o u l d e n t e r in t o a j o i n t u s e a g r e e m e n t a n d s h a r e a n y co s t s . Ne t c a s h f l o w f o r C i t y o v e r 5 5 y e a r t e r m o f ag r e e m e n t w o u l d b e - $ 1 6 . 7 m i l l i o n (a s s u m e s C i t y w o u l d f i n a n c e 1 0 0 % o f t h e te m p o r a r y p r o j e c t c a p i t a l c o s t s ; d o e s n o t in c l u d e C i t y e x p e n d i t u r e s f o r l e a s i n g o f f s i t e pa r k i n g ) . Co m p r e h e n s i v e p a r k i n g s t u d y a t a c o s t o f $2 5 0 , 0 0 0 ( w i l l t a k e a p p r o x i m a t e l y 6 m o n t h s to c o m p l e t e ) . Ma r c h 2 0 2 0 - M a r c h 2 0 2 1 A d j a c e n t t o S a m o h i . Pa r k i n g n e e d s o f t h e C o u r t h o u s e , Ci t y , S a m o h i , a n d C i v i c A u d i t o r i u m wo u l d b e m e t . Pr o j e c t w o u l d c o s t c o n s i d e r a b l y l e s s th a n a p e r m a n e n t f i e l d w i t h su b t e r r a n e a n p a r k i n g . De c r e a s e i n p a r k i n g r e v e n u e f o r di s p l a c e d s p a c e s ; c o n s i d e r a b l e c o s t s as s o c i a t e d w i t h l e a s i n g p a r k i n g of f s i t e . Pa r k i n g d i s p l a c e m e n t p r o b l e m a t i c ; co m p r e h e n s i v e p a r k i n g s t u d y n e e d e d to d e m o n s t r a t e s u f f i c i e n t p a r k i n g ex i s t s i n t h e i m m e d i a t e a r e a t o e n s u r e co a s t a l a c c e s s . Co n s t r u c t i o n o f s e v e r a l p r o j e c t s i n t h e Ci v i c C e n t e r d u r i n g t h e s a m e ti m e f r a m e . Le a s e d p a r k i n g w o u l d n e e d t o b e id e n t i f i e d a n d l e a s e r a t e s n e g o t i a t e d . Revised 06/20/2017 Page 2 of 3 Ci v i c C e n t e r M u l t i - U s e S p o r t s F i e l d : S u m m a r y o f O p t i o n s a n d A l t e r n a t i v e s Es t i m a t e d C o s t E s t i m a t e d C o n s t r u c t i o n T i m e l i n e O p p o r t u n i t i e s C h a l l e n g e s Al t e r n a t i v e 3 : T e m p o r a r y f i e l d a t Me m o r i a l P a r k ; i s s u e R F P f o r C i v i c Au d i t o r i u m o p e r a t o r To t a l f i e l d c o s t s w o u l d b e d e t e r m i n e d b y de s i g n R F P p r o c e s s a n d f i n a l d e s i g n o f t h e fi e l d . Pr o j e c t c o u l d p o s s i b l y b e f u n d e d w i t h S M C Me a s u r e V m o n i e s . Ju l y 2 0 1 9 - J u l y 2 0 2 0 C o u l d p o t e n t i a l l y b e f u n d e d b y S M C Me a s u r e V b o n d m o n i e s . Co u n c i l ' s d i r e c t i o n t o s t a f f c o u l d ad v a n c e t h e C i v i c W o r k i n g G r o u p ' s re c o m m e n d a t i o n s t o i s s u e a n R F P f o r an o p e r a t o r f o r t h e C i v i c A u d i t o r i u m , co n s i s t e n t w i t h C o u n c i l ' s d i r e c t i o n o n Fe b r u a r y 9 , 2 0 1 6 . Wo u l d n o t d i s p l a c e e x i s t i n g p a r k i n g ; ne g a t i v e i m p a c t s o f p a r k i n g l o s s o n Co u r t h o u s e , C i t y , a n d S a m o h i w o u l d be a v o i d e d . Lo c a t i o n n o t s u b j e c t t o t h e C o a s t a l Ac t ; c o u l d s a v e t i m e a n d c o s t s . No t a d j a c e n t t o S a m o h i . Wo u l d d e f e r t h e M e m o r i a l P a r k Ma s t e r P l a n p r o c e s s . Al t e r n a t i v e 4 : D e f e r f i e l d d e v e l o p m e n t ; is s u e R F P f o r C i v i c A u d i t o r i u m o p e r a t o r No a d d i t i o n a l f i e l d c o s t s w o u l d b e i n c u r r e d at t h i s t i m e . Fi e l d c o n s t r u c t i o n a n d d e c i s i o n s ab o u t t h e r e s t o f t h e C i v i c C e n t e r wo u l d b e d e f e r r e d u n t i l a n R F P f o r a n op e r a t o r h a s b e e n i s s u e d , o t h e r pl a n n i n g p r o c e s s e s h a v e b e e n co m p l e t e d , a n d m o r e i n f o r m a t i o n i s av a i l a b l e . Co u n c i l ' s d i r e c t i o n t o s t a f f c o u l d ad v a n c e t h e C i v i c W o r k i n g G r o u p ' s re c o m m e n d a t i o n s t o i s s u e a n R F P f o r an o p e r a t o r f o r t h e C i v i c A u d i t o r i u m , co n s i s t e n t w i t h C o u n c i l ' s d i r e c t i o n o n Fe b r u a r y 9 , 2 0 1 6 . Wo u l d n o t m e e t t h e n e e d s o f S a m o h i fo r a m u l t i p u r p o s e s p o r t s f i e l d w i t h a so f t b a l l o v e r l a y a d j a c e n t t o t h e ca m p u s . Wo u l d d e f e r f i e l d c o n s t r u c t i o n u n t i l fu r t h e r p l a n n i n g f o r t h e o v e r a l l C i v i c Ce n t e r s i t e h a s b e e n c o m p l e t e d a n d fu r t h e r d e c i s i o n s h a v e b e e n m a d e (i . e . C i v i c A u d i t o r i u m o p e r a t i o n s ) . Revised 06/20/2017 Page 3 of 3 BOARD OF SUPERVISORS COUNTY OF LOS ANGELES 821 KENNETH HAHN HALL OF ADMINISTRATION / LOS ANGELES, CALIFORNIA 90012 Tel: 213-974-3333 Fax: 213-625-7360 Sheila@bos.lacounty.gov June 22, 2017 Santa Monica City Council Members Santa Monica City Hall 1685 Main Street, Room 209 Santa Monica, California 90401 Re: Santa Monica Courthouse Parking Dear Santa Monica City Council Members: SHEILA KUEHL SUPERVISOR, THIRD DISTRICT I understand the Council will be considering a proposal on June 27 to reduce or possibly eliminate essential public parking for the Santa Monica Civic Center and possibly replace it with another smaller underground structure or a multipurpose sports field. While recognizing the benefits of a sports field in Santa Monica, on balance, when weighed against the needs of hund reds of thousands of citizens who regularly must access the Santa Monica Courthouse, I wanted to weigh in and ask that you reconsider the plan. As you know, there are 15 civil courtrooms in the Courthouse that conduct, among other things, civil jury trials, unlawful detainer hearings, traffic matters, small claims, family law cases and vital services for those who require assistance with child custody, evictions, elder abuse and restraining orders for domestic violence. Creating barriers by precluding parking at the courthouse can have the unintended consequence of preventing and impinging on the public's ability to exercise their rights as litigants and defendants and civic duties as jurors. Often transportation options are not an easy answer. How will a domestic violence victim take public transportation with her children to the Courthouse when she/he is in hiding from their abuser? Is it fair to ask people to do their civic duty and serve on a jury when it will cost them time and money to find a place to park? What guarantees are there that Santa Monica Courts will have a sufficient pool of jurors when they could easily request reassignment to other courthouses where parking is provided. This action could also have a negative and discriminatory impact on those persons who are disabled or those unable to make their way from the Metro station blocks away. I ask you to be mindful of the Constitutional protections that mandate the public's access to our courts and direct us to eliminate barriers that prevent people from exercising their rights. I am concerned that the absence of adequate and convenient parking close to the Courthouse, will inadvertently deny the fundamental right of access to justice to our most important as well as vulnerable population. I have reviewed the letters provided to you by Presiding Judge Buckley and the Court's Executive Officer and find the statistical information compelling. This Courthouse serves over 1,200 people daily from all locations within the West District of the Court. Last year the Courts handled over 6,500 unlawful detainer actions and over 1,000 restraining orders where over half were for potential domestic violence incidents. Each year almost 75,000 traffic citations are handled within this courthouse. In 2016, 33,687 jurors were ·�· Item 8-A 06/27/2017 1 of 337 Item 8-A 06/27/2017 Item 8-A 06/27/2017 2 of 337 Item 8-A 06/27/2017 It e m 8- A 06 / 2 7 / 2 0 1 7 3 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 4 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 5 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 6 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 7 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 8 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 9 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 10 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 11 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 12 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 13 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 14 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 It e m 8- A 06 / 2 7 / 2 0 1 7 15 of 33 7 It e m 8- A 06 / 2 7 / 2 0 1 7 1 Vernice Hankins From:Levin, Amy C <amy.levin@csun.edu> Sent:Friday, June 23, 2017 10:06 AM To:councilmtgitems; Rick Cole; fieldatcivic@gmail.com Cc:Molly Munoz; rob@arocd.com Subject:6/27/17 Council Meeting Item 8.A. Civi c Center Multipurpose Sport Field Dear City Council Members and City Manager Cole - We are tired of waiting for this field - it's been over 12 years - and we wa nt it built at the Civic Center, not Memorial Park or anywhere else. We are tired of shell games and of bait & switch. Please agree on 6/27/17 to partner with the school dist rict to build the permanent field and permanent parking at the Civic Center ASAP. Don't make us wait any more for this field that will be of such benefit to our high school students and our entire community. Thank you – Amy Levin Santa Monica resident for 15 Years     *******************  Amy  Levin, MSW, PhD   AVP  Graduate  Studies   Professor, Social  Work   CSU, Northridge   (818) 677 ‐2138     Item 8-A 06/27/2017 16 of 337 Item 8-A 06/27/2017 1 Vernice Hankins From:Sloca, Beck <Beck.Sloca@aenetworks.com> Sent:Friday, June 23, 2017 10:06 AM To:councilmtgitems Cc:Rick Cole; fieldatcivic@gmail.com Subject:6/27/17 Council Meeting Item 8.A. Civi c Center Multipurpose Sport Field Dear City Council Member s and City Manager Cole - We do not want a soccer / lacrosse fi eld built at Memorial Park. Those fields spaces are already over committed to other sports and the parking is terrible. Any new field space developed at Memorial Park should be devoted to additional ba seball and softball fields. We want the soccer / lacrosse fi eld built at the Civic Center. Thank you - Beck Sloca Santa Monica resident for 16 Years Property owner and parent.   Item 8-A 06/27/2017 17 of 337 Item 8-A 06/27/2017 1 Vernice Hankins From:Jennifer Raymond <jenniferanneraymond@gmail.com> Sent:Friday, June 23, 2017 10:07 AM To:councilmtgitems Cc:Rick Cole; fieldatcivic@gmail.com Subject:6/27/17 Council Meeting Item 8.A. Civi c Center Multipurpose Sport Field Dear City Council Members and City Manager Cole - We are tired of waiting for this field - it's been over 12 years - and we wa nt it built at the Civic Center, not Memorial Park or anywhere else. Please agree on 6/27/17 to partner with the schoo l district to build the permanent field and permanent parking at the Civic Cent er ASAP. My sons are entering high school this fall, and it would be nice for them to have at least a little bit of time on this long over due field. Don't make us wait any more for this field that will be of such benefit to all of our high school student s and our entire community. Thank you - Jennifer Raymond Santa Monica resident for 12 years Item 8-A 06/27/2017 18 of 337 Item 8-A 06/27/2017 1 Vernice Hankins From:Levin, Amy C <amy.levin@csun.edu> Sent:Friday, June 23, 2017 10:08 AM To:councilmtgitems; Rick Cole; fieldatcivic@gmail.com Subject:NO soccer/lax at Memorial Park Dear City Council Members and City Manager Cole - As the parents of three boys in SMMUSD who play both soccer and baseball, we do not want a soccer / lacrosse field built at Memorial Park - any new field space deve loped at Memorial Park shoul d be devoted to additional baseball and softball fields. We want the soccer / lacrosse field built at the Civic Center. Thank you – Amy Levin Santa Monica resident for 15 Years     *******************  Amy  Levin, MSW, PhD   AVP  Graduate  Studies   Professor, Social  Work   CSU, Northridge   (818) 677 ‐2138     Item 8-A 06/27/2017 19 of 337 Item 8-A 06/27/2017 1 Vernice Hankins From:Jill Boberg <jill.boberg@gmail.com> Sent:Friday, June 23, 2017 10:08 AM To:councilmtgitems Cc:Rick Cole; CIVIC FIELD Subject:6/27/17 Council Meeting Item 8.A. Civi c Center Multipurpose Sport Field Dear City Council Members and City Manager Cole - We are tired of waiting for this field - it's been over 12 years - and we wa nt it built at the Civic Center, not Memorial Park or anywhere else. Please agree on 6/27/17 to partner with the sc hool district to build the permanent field and permanent parking at the Civic Cent er ASAP. My kids are recently out of SAMOHI, but there are many more community kids to come. Don't make us wait any longer for this field that will be of such benef it to our high school students and our entire community. Thank you - Jill Boberg Santa Monica resident for 19 years -- jill Item 8-A 06/27/2017 20 of 337 Item 8-A 06/27/2017 1 Vernice Hankins From:Pietro Martini <tpcmartini@gmail.com> Sent:Friday, June 23, 2017 10:09 AM To:councilmtgitems; Rick Cole Subject:6/27/17 Council Meeting Item 8.A. Civi c Center Multipurpose Sport Field Dear City Council Members and City Manager Cole - We do not want a soccer / lacrosse field built at Memori al Park - any new field space developed at Memorial Park should be devoted to additional ba seball and softball fields. We want the soccer / lacrosse field built at the Civic Center. Thank you - Pietro Martini Los Angeles resident for 14 years Item 8-A 06/27/2017 21 of 337 Item 8-A 06/27/2017 1 Vernice Hankins From:Jane Giess <janegiess007@gmail.com> Sent:Friday, June 23, 2017 10:09 AM To:councilmtgitems Cc:Mum Cell; Rick Cole; fieldatcivic@gmail.com Subject:Permanent Field and Parking at Civic Centre Dear City Council Members and City Manager Cole - We are tired of waiting for this field - it's been over 12 years - and we wa nt it built at the Civic Center, not Memorial Park or anywhere else. We are tired of shell games and of bait & switch. Please agree on 6/27/17 to partner with the school dist rict to build the permanent field and permanent parking at the Civic Center ASAP. Don't make us wait any more for this field that will be of such benefit to our high school students and our entire community. Thank you - Jane Giess Santa Monica resident for 16 Years Item 8-A 06/27/2017 22 of 337 Item 8-A 06/27/2017