SR-8A (27)PCb:PPA:SF:PC
f:~ppd~share~ccreport\police2
Council Meeting: August 2, 1994
TO: Mayar and City Council
FROM: City Staff
AUG 2
Santa Monica, California
SUBJECT: Recommendation to Adopt an Ordinance Ordering the
Submission of a Proposition of Incurring Banded Debt far
the Purpase of the Acquisition, Construction and
Completian of a Po~ice, Fire and Emergency Operations
Center to the Qualified Voters of the City af Santa
Monica
INTRODUCTION
This report recommends adoptlon of an ordinance submitting a bond
measure to fund the construction of a new Palice, Fire and
Emergency Operatians Center to the voters on the Navember 8, 1994
ballot. The proposed ordinance reflects the cost and bond
assessment as presented by staff at the July 26, 1994 meeting.
Staff has provided a supplemental staff report responding to issues
raised at the July 26, 1994 Council meeting.
BACKGROUND
At the Ju~y 26, 1994 City Council meeting, the City Counci~ adopted
a Resaluti~n stating the necESSity for placing a$33 mill~on bond
measure before the voters to fund a new 114, 454 square faat Police,
Fire and Emergency Operations Center behind the ex~stzng City Hall.
Adoption of an ardinance ordering the submission of the bond to the
voters is required a~ this time to place th~ measure on the
Navember S, 1994 ballot. If the Council chooses to lawer the
~ AUG q 2 '~
amaunt of ~he bond praposal, that change can be made at the August
2, 1994 meeting.
BUDGET/FINANCIAL IMPACT
There is a budget/financial impact to p~ac~ng the bond measure on
the November, 8, 1994 ballot. The cast to the City of placing the
measure on the November ba].lot is appraximately $20, 000 and will be
paid through general fund revenues.
RECDMMENDATION
It is recommended that the City Council adapt the following
ordinance in order ta place a bond on the November 8, 1994 general
election to fund construction of a new Police, Fire and Emergency
Operations Center:
o Ordinance of the City Council Drdering The Submission Of
A Proposition Of Incurring Bonded Debt For The Purpose Of
The Acquisit~on, Construction And Completion Of A Police,
Fire And Emergency Operations Center To The Qualified
Voters of The City Of Santa Manica
Attachments: A) Ordinance of the City Council Ordering The
Submission Of A Propositian Of Incurring
Bonded Debt For The Purpose Of The
Acquisitian, Construction And Campletion Of A
Police, Fire And Emergency Ope~ations Center
To The Qualified Voters Of The City Of Santa
Monica
Prepared by: Lynne Barrette, Assistant Czty Manager
Suzanne Frick, Planning and Community Development
Dir~ctor
James T. Butts Jr., Chief of Police
Richard Bridges~ Fire Chief
Paul Casey, Actinq Senior Planner
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ATTACHRIENT A
CA:MJM:f:~atty~muni\laws\mox~band.ord
City Council Meeting: 8-2-94 Santa Monica, California
DRDINANCE NO. (CC8)
{CITY COUNCIL BERIE3)
AN ORDINANCE OF THE CITY C~UNCIL ~F TH~
CITY OF SANTA MONICA ORDERING THE SUBMISSION OF
A PROPOSITION OF INCURRING HONDED DEBT FOR THE PURPOSE
OF THE AGQUIBITION, CONSTRUCTION AND COMPLETION OF C~RTAIN
MUNICIPAL IMPROVEMENTS TO THE QUALIFIED VOTERS
OF THE CITY OF BANTA MONICA AT AN ELECTION
TO BE HELD FOR THAT PURP03E
WHEREAS, the City Council (the "City Council") of the City of
Santa Monica (the City") has heretofore adopted, by a two-thirds
vote of all the members of the City Council, Resalution No.
(CCS} entitled "A Resalution of the City Council of the City of
Santa Monica Determining That the Public Interest and Necessity
Demand the Acquisition, Construction and Campletion of Certain
Municipal Improvements and Their Financing Through the Issuance of
General Obligation Bonds" (the "R~solU~lOI1~~);
WHEREAS, in order to provide for the issuance by the City of
its general obligatian bonds to finance the improvements described
in the Resolu~i~n, it is necessary for the City Council to pass an
ordinance vrdering the submission of the propositian of incurring
bonded indebtedness for such purpose ta the qualified voters of the
City at an election held for that purpase;
Z
WHEREAS, in accordance with the provisions of the Charter of
the City and the laws of the State of California, a General
Municipal Election has been called by the City Council and ordered
by the City Council to be he~d in the City on Ntivember, 8, 1994
(the "Municipal Election"); and
WHEREAS, the City Council desires to submit said proposition
to the qualified votezs af the City at the Municipal Electian;
NOW, THEREFORE, THE CITY COUNCIL ~F THE CITY ~F SANTA MDNICA
DOES ORDAIN AS F~LLOWS:
SECTIDN 1. It is hereby ordered that there be submitted to
the qualified voters of the City, at the Municipal Election, the
propnsition set forth below in substantially the following form:
PROPOSITION " ". Shaii the
City of Santa Monica incur YES
general obligation bonded
indebtedness in the principal
amount af not to exceed $33
Miliion for the acquisitian and
construction of a Police, Fire NO
and Emergency Operations Center
and parking for afficial
vehicles?
The propasition submitted by this Ordinance shall be designated on
each ballot by a letter printed on the left margin af the square
containing the description of the proposition, as provided in
Section 10219 of the California Elections Code.
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SECTION 2. Tha object and purpose af incurring the
indebtedness is the acquisition and constructian of a public safety
building, including police and fire administration and emergency
operations center, jail areas, and related parking, to be lacated
east of the existing City Hail (the "Impravements").
SECTION 3. The estimated cost of the Impravements is Thirty-
Three Million Dollars {$33,000,000.04), The estimated cost
includes J.egal and other fees and the cost of printing the bonds
and ather costs and expenses incidental to ar cannected with the
issuance and sale of the bonds.
SECTION 4. The amount of the principal of the indebtedness to
be incurred is not ta exceed Thirty-Three Million Dollars
($33,004,Q~0.00).
SECTION 5. The maximum rate of interest on the indebtedness
shall be twelve percent (12~} per annum, or such higher rate as may
hereaft~r b~ established for general obligation bonds of the City
by the Legislature of the State of Califarnia.
SECTION 6. The date of the election for the propositian
submitted by this Ordinance shall be November 8, 1994, the date of
the Municipal Election.
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SECTION 7. Except as fltherwise pravided in this Ordinance,
the manner of holding the electian shal~ be as provided by law for
municipal elections. Ballots far the election shall be provided in
the form and in the number provided by law. On said ballots, in
addition ta any other printed matter which may be required by law,
two voting squares shali be set off to the right of the proposition
submitted at the eiection, in the manner provided by law, ane
having the word "YES" printed b~fore it, and the other having the
word "NO" printed before it. Each voter to vote for the proposition
and for the incurring of said indebtedness shall stamp or write a
cross, or indicate by hole punch or other means, in the blank space
oppasite the word "YES" on the ballot to the right of the
propasitian; and each voter to vote against the proposition and
against the i.ncurring of the indebtedness shall stamp or write a
crass, or indicate by hole punch or ather means, in the blank space
oppasite the word "NO" on the ba~~at to the right of the
propositian.
SECTION 8. This Ordinance shall be adopted upon a vote of no
less than twa-thirds of all members of the City Council.
SECTION 9. This Ordinance shall take effect upon adoption, as
provided in Sectian 619(a) of the City Charter.
SECTION 10. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The City C~erk shall cause
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the same to be published in full once a day for at least seven (7}
days in The Outldok, the newspaper of genera~ circu~atian for the
City. The first af said publications shall be within fifteen {15}
days after adaption of this ordinance.
APPROVED AS TO FORM:
,
:; fl-G~L -~'~-~..Sr -~~/1 ~~,C~i.{~
MARSHA J~NE~ MOUTRIE
City Attorney
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PCD:PPA:SF:PC
f:~ppd\share~ccreport\polsupp
Council Mee~ing: August 2, 1994
Santa Manica, California
TO: Mayar and City Council
FR4M: City Staff
SUBJECT: Supp~emental Staff Report on the Proposed Police, Fire
and Emergency Operations Center
INTRODUCTION
This suppZemental s~aff repart pravides informatian re7.ating to the
praposal for placing a bond measure on the November 8, 1994 ballat
to fund construction af a new Police, Fire and Emergency Operations
Center. At the July 26, 1994 meeting, Council requested
infarmation on optians ~.o reduce the bond amount and alternatives
to placing the bond measure on the Na~amber ballot withou~.
impacting the construction schedule.
COST SAVINGS
The original 1990 space study recammended a building of I21,325
square feet ~or j~st a Police Department Headquarters. The
praposed facility has been reduced substantially by revising the
projected 2D10 s~affing Ievels to account for more accurate
population forecasts, and through savings and effzciencies in the
design af the building. A Palice-only facility under the current
praposed programming would b~ approximately 105,000 square feet,
With the addition of F~re Administration and an Emergency
Operations Center, the facility is approximately 114,000 square
feet, still smaller than the 1990 proposed Police Headquarters.
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The proposed cost for the faczlity is consistent with other
recently constructed palice/publ~c safety buildings, considering
inflat~on casts to the point of construction. The following is a
comparisan of the proposed fac~lity with other recently constructed
facilities:
EST. CONST.
CITY BLDG SIZE COST~ COST/SQ/FT
Santa Monica 114,454 $23.5 M $202
Pasadena 94,~~0 $17.5 M $194
Concard 72,O~Q $13 M $180
Santa Ana 468,000 $86.5 M $184
* Far comparison purposes, daes not inc~ude cost of parking,
architectural and eng~neering fees, and cantingencies.
In addition, when considering possYble cast saving scenarios, the
Counc~l should be aware that the following project-related items
are nat included in the band proposal:
o Furniture and fixtures far the building, which would cost
approximately $1.4 million.
o Cost far a 1,00~ space parking structure behind the
County Courthouse~ which wi~l cost approximately $8.9
million and could be paid through revenue bonds, user
fees or other revenues.
o Extension af olympic Drive, which wi11 cost approximately
$2 millian. This wili be funded through transportation
revenues.
o Recanstruction or remodeling of the existing pal~ce
facility. The ex~sting east wing cauld be remodeled ar
demalished and reconstructed to accommodate City
functions maving from off-site locatians back to the
building. Potential cost for this reconstruction would be
$4.8 miilion.
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o Direct underground connection to the County Courthouse
for custody transfers.
Hawever, from the propased $33 million bond propasal, there are a
few areas af potential cost savings. These include:
o Reduction of the square foot canstruction cost from $202
to $190. Other recently constructed police and emergency
services faciZities have been built in this price range.
However, a reduction in this amount would limit design
flexibility by e~iminating options far building
materials, exterior appearance, and ather design
features. Cost savings would be $1.4 million.
o The proposed cost of the Pico-Kenter storm drain
mitigation is $1.5 million. This is a conservative
estimate, and could be reduced to $750,040 by considering
reinforcement rather than recanstruction of the county
drain wh~ch runs belaw the buxld~ng site.
o Funding of architectural and engineering costs from other
sources. Architectural and engineering costs up through
the construction bidd~ng pracess are estimat~d at
approximately $2.3 million. These costs could be removed
from the bond measure and coverEd through other ~unding
sources.
Total savings from these measures combined wouZd be approximately
$4.5 million, A bond measure refl~cting these cost savings would
total approximat~ly $28.5 million. The cost to the owner of a
median assessed value residential property would be $38 per year.
FUNDING SOURCES
The current proposal is to finance the project with a 30-y~ar
General obligation bond issue. These bond5, backed by property tax
revenues, are considered very secure, have the highest bond rating
and lowest long-term interest payments.
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Alternative sources of funding were analyzed far payment af
construction costs.
Cash Financinq
o General Fund Revenues -- would require significant budget
cuts or revenue increases to fund the fu~l construction
and design costs over a four year period. An advantage
to the "pay as you go" method is the elimination of
approximate].y $47 milZion in interest payments that would
be requzred with a 30-year General obligation bond.
o Earthquake Recovery Redevelopment Revenues -- these funds
could be used to help construct the facility, but wauld
come at the expense of earthquake recovery programs for
multi-farnily and commercial praperties damaged lay the
January 17, 1994 earthquake and are not immediately
available.
o Praposition C Funds -- These funds are limited to
transportation and transit impro~ements and are already
earmarked for construction of the Olympic Drive
improvements. No other construction costs are eligible
uses of these funds.
o Co~mun~ty Deve~opment Block Grants (CDBG) -- the City has
received approximately $2.7 mi~lion of CDBG funds to pay
for earthquake recovery programs. The emergency
operatians center qualifies for use of these funds, but
use on this faci~ity would preclude addressing other
earthquake needs.
o There is also the possibility of generating future
revenues from the neGr facility by providing jail space to
the County.
Bflnd Financinq Options
o Certificates of Participation -- This financing
mechanism requires that the full faith and eredit of the
City be used to pay the certificates' annual debt
service. Th~s means that some anqoing existing or new
revenue sourees ather than property tax levy would be
earmarked for paying the annual debt service. This is a
commonly used financinq mechanism in the state, and anly
requires City Council approval. Certificates of
Participation bonds have a lower bond rating, and
therefore a higher ~nterest rate than general obligation
bands rnust b~ pa~d.
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A cambination of these sources cauld be used to finance the
facilities.
As mentioned, General Obligatian bonds are the least expensive
financing alternative. If the construction were financed by
Certificates of Participation the issue would increase from $33
million to a maximum af $41 million due to establishment of a debt
service reserve (not r~quired by Genera~ Obligation bonds) and the
financing of approximately twa y~ars af debt service interest until
the facility is completed.
PROJECT TIMING
Before construction of the new building, architec~ural des~gn,
engineering, and environmental review must take place. The
approximate length of time far each of these components is as
follows:
o Program Campletion,
Pre-design, and 5 months
Community Meetings
o Schematic Design 6 months
o Design De~elopm~nt 5 months
o Construction Documents 7 months
o En~ironmental Review 9 to 12 months
o Construction 18 months
Environmental review can occur simultaneously with Design
Development and Construction Documents. Therefore, it is
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approximately on~ year for pre-design, community process and
schematic design, and another year for design development,
constructian documents, and environmental review. Construction
would then take approximately ~8 months.
If the community process, full design and environmental review is
completed in the next two years, a bond measure on the November,
1996 ballot would not delay the project. This would cost
appraximate~y $2.3 million and require funds fram the City that
wauld be reimbursed from bond proceeds if the bond measure passed
in 1996.
However, if only community process, schematic design and
environmental review are comple~ed, at a cost of $740,000 before a
bond measure in November~ 1996, there would be a one year delay in
the construction of the building. There would sti~l be
approximately one year af work for design develapment and
eonstruction documents after the election before construction could
begin.
ALTERNATIVES
1) Proceed with adoption of ardinance to place a$33 million bond
issue before the voters on November 8, 1994.
2) Proceed with adaption of vrdinance ta place a smaller bond
issue before the voters an November 8, 1994 and develop an
alternative funding scenario for the remaining costs.
3) Proceed ~rith preparation of community process; sche~natic
design; construction drawings; environmental review; and
teehnical studies priar ta placement of a bond measure on the
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November, 1996 ballot. Supplemental appropriations of
$740~000 would be required in 1994~95 and $1.6 million in
1995-96 to pursue this aptian.
Prepared by: Lynne Barrette, Assistant City Manager
Suzanne Frick, Planning and Cammunity Development
Director
James T. Butts Jr., Chief of Police
Richard Bridges, Fire Chief
Mike Dennis, Director of Finance
Paul Casey, Acting 5enior Planner
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