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SR-904-005 F:\CMANAGER\Staff Reports\Police Building Disposition.doc Council Meeting: December 16, 2003 Santa Monica, CA TO: Mayor and City Council FROM: City Staff SUBJECT: A design/build contract with SKS Construction for the pre-construction services for the demolition of the old police building. Introduction This report recommends authorization to proceed with demolition of the vacant former Police Building at the rear of City Hall. The recommendation is based on studies that evaluated the historical status and preservation possibilities of the building in relation to City Hall, and the cost of renovating the building to address seismic and accessibility deficiencies. The pre-construction contract will be to SKS Construction in an amount not to exceed $46,600 and a contingency of $4,660. Background On November 24, 1939, the newly constructed Santa Monica City Hall was dedicated. The original U-shaped structure consisted of a three-story central pavilion flanked by two two- and-a-half-story wings and a courtyard at the rear of the central pavilion between the two wings of the structure. City administrative, police and fire operations were housed in the th structure. Fire operations would later move to headquarters on 7 Street. 1 To provide space for the expansion of the police department, in 1958 a three-story structure was added to the east, connecting to the north and south wings of City Hall and enclosing the central courtyard. As noted in the City Hall Historic Structure Report, recently prepared by Historic Resources Group: ?Placement of the building addition at the rear of City Hall was not the original plan. Initial plans were to erect the structure on Fourth Street near Olympic Boulevard. However, the Santa Monica City Council and Planning Commission rejected that site proposal because of the possible future expansion of the Santa Monica Freeway west of Lincoln Boulevard along Olympic Boulevard. Placing the police department in the path of the freeway would interfere with the freeway expansion plans. Lacking other viable options, the council and planning commission approved the connection of the new building to the east side of the City Hall between the north and south wings.? Since 1958, there have been additional expansions and remodels to the southern wing of City Hall. With respect to the building alterations, the Historic Structure Report concluded: ?Based on the date of original construction and National Register requirements, the Santa Monica City Hall?s period of significance is defined as 1938-1951. ?All later additions and alterations, including the 1958 structure attached to the rear of City Hall, are deemed insignificant.? The Police Department moved into the new Public Safety Facility in September 2003, vacating the later additions. Discussion Vacation of the structure presents challenges and liabilities with respect to the building?s maintenance and security. The JCM Group has evaluated the cost and construction 2 implications of reusing or demolishing the former police building. They concluded that in order to effectively reuse the structure and complete ADA, structural, seismic and tenant improvements, major portions of the interior would need to be gutted. The adaptive reuse of the building would cost approximately $9.6 million, create approximately 28,700 gross square feet of office space, and require about 22 months to complete. The cost of demolition of the building and replacement with a landscaped courtyard was estimated to be $2.7 million. Using all available funds for the former Police building would reduce their availability for seismic retrofit work to City Hall, which has been estimated at $2.5 million. The City Hall retrofit project has been deferred pending decisions regarding the disposition of the former Police building, opportunities for relocation of existing staff and availability of funding. As discussed at the Council study session in June 2003, the former police building could house some of the City?s services that are currently located off site in private office buildings. The City currently pays nearly $1.5 million annually to lease approximately 40,000 sq. ft. of private office space, of which approximately 70 percent is occupied by General Fund services. The availability of the police wing for these services could reduce the City?s annual off-site rents by approximately $1 million. However, rehabilitation and reuse of the former police building is not recommended for the following financial and policy reasons: ? In order for the investment in rehabilitating the former police building to represent a net savings, City services would need to occupy the building for a minimum of 10 years; 3 ? The CIP funds available for rehabilitation/seismic improvements to City Hall are insufficient to cover the estimated cost; ? Other options discussed at the Council study session in June (temporarily occupying the RAND Z Building or temporarily locating modular buildings on the RAND site) are less costly to the City; ? The estimated per-square-foot rehabilitation cost of approximately $333 is comparable to the cost of new construction, yet the former police building does not have the architectural distinction or integrity that would be expected from new construction; ? As discussed above, the former police building lacks the historic integrity of the original City Hall building. The Civic Center Plan update, which was developed through an 18-month community process, calls for the demolition of the former police wing in order to allow for the eventual restoration of City Hall and the creation of an important visual and public relationship between City Hall, the Public Safety Building and the proposed Civic Center Parking Structure. The plan also provides for a new City Services Facility, to be located northwest of the City Hall, to provide for consolidation of local services in the Civic Center. Staff recommends demolition of the 1958 three-story addition with retention of portions of the later additions to the south wing of City Hall, as they house other City operations that cannot reasonably be relocated. Retention of these elements will not significantly diminish the open space benefits identified in the CCSP. Staff recommends that interim landscape and hardscape improvements be installed until a permanent courtyard, as called for in the CCSP, can be designed and developed as part of the future rehabilitation of City Hall. Based on two design-build proposals received for the project, staff recommends authorizing the City Manager to execute a design/build contract with SKS Construction in an amount not to exceed $46,600, for pre-construction services for the demolition of the old police building. The design/build contractor will be required to complete the demolition 4 of the old Police Building and provide a courtyard with basic landscaping and hardscape with a screening element along Avenida Mazatlan. In addition, the contractor will be required to engage a historic consultant to help ensure that the treatment of the post- demolition exposed facades maintain the historic integrity of City Hall. Ultimately, a public input process will have to be undertaken to determine the appropriate courtyard improvements, which is expected to be completed in concert with the seismic retrofit and rehabilitation of City Hall Next Steps If Council authorizes demolition of the former police building, design documents for building demolition and interim courtyard improvements will be prepared. As City Hall is a designated Santa Monica Landmark, the Landmarks Commission will review the proposed demolition and consider a Certificate of Appropriateness. Staff will continue to study options for bringing off-site City services back to the Civic Center area. Budget/Financial Impact A $3.3 million balance sheet set-aside is available for renovation/seismic work to City Hall. As a result of the bond issuance for the new Public Safety Facility, hazard mitigation funds previously identified for seismic work to City Hall ($1 million) and the existing Police building ($335,700) are also available. In total, $4.6 million is available for the demolition and courtyard improvements. Funds required: 5 Pre-construction Services $46,600 10% Contingency $4,660 TOTAL $51,260 Funds are available in Account Number C01202000.589000. Recommendation It is recommended that the City Council authorize the City Manager to negotiate and execute a design/build contract with SKS Construction in an amount not to exceed $46,600, for pre-construction services and a contingency of $4,660 for the demolition of the old police building. Prepared By: Gordon R. Anderson, Assistant City Manager Suzanne Frick, Director of Planning and Community Development Craig Perkins, Director of Environmental and Public Works Management Andrew Agle, Assistant Director of Planning and Community Development Lauren Friedman, City Architect, Environmental and Public Works Mgt. 6