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sr-112409-8aCity Council Meeting: November 24, 2009 Agenda Item: 8 To: Mayor and City Council From: P. Lamont Ewell, City Manager Subject: Exposition Light Rail Phase 2 Maintenance Facility Update -Expo Construction Authority Consideration of Verizon Site and Santa Monica College parking lot as the Hybrid Site within the City of Santa Monica Recommended Action Staff recommends that the City Council: Authorize the City Manager to negotiate an agreement with the Exposition Construction Authority (Expo) regarding mitigations to be implemented for the proposed Phase 2 Exposition Light Rail maintenance facility, including the proposed alternative concept "hybrid" maintenance facility site which consists of the Verizon property and the Santa Monica College (SMC) parking lot as the location for the maintenance facility (Attachment A). This facility will not include a paint and body shop in keeping with Council direction on October 27, 2009. It will include a tightly configured storage and maintenance facility on the Verizon/SMC site adjacent to the railroad right of way, and a linear buffer of 100 - 110 feet for most of the frontage facing residents on Exposition Boulevard. 2. Request Expo to continue working with the City and community to ensure that, if the alternative hybrid concept is accepted by Expo, all environmental impacts associated with the maintenance yard are fully mitigated and that good neighbor provisions by Council are secured. Direct staff to work with Expo to minimize the visual and environmental impacts of the maintenance facility and enhance its aesthetic interface with the community. 3. Direct City staff to work with Expo and other agencies on layout and financial issues associated with the proposed hybrid alternative. Efforts will include discussion with Los Angeles County Metropolitan Transportation Authority (Metro), the California Public Utilities Commission (CPUC) and SMC. 4. Direct City staff to explore with SMC and Expo the practical and legal options for land and lease swaps to create the linear. buffer in exchange for comparable property for the SMC parking lot, which will be relocated on City property on Airport Residual land and further refine the terms and conditions with Expo, SMC and the City. 5. Direct staff to work with Expo and Metro to develop any additional necessary agreements regarding development and operation of the hybrid site if it is adopted by the Expo Board as the recommended site and adjust the final budget for the Expo Phase 2 project as appropriate to include all required City mitigations and recommended improvements for the maintenance facility. Executive Summary Expo will make decisions on the maintenance facility in consultation with the Operations group at Metro. The Expo Authority Board of Directors is responsible for deciding on the final project, not the City Council, which can only make recommendations. The project budget in the Phase 2 DEIR currently assumes that Expo will acquire only the Verizon site. The City is requesting that the Expo Phase 2 budget be adjusted, as necessary, for the hybrid alternative if it is selected by the Expo Board. The DEIR, issued in January 2009, summarizes the review of a number of candidate sites for a Phase 2 maintenance facility, and concludes that the Verizon site is the only viable alternative. The City Council and neighbors expressed concern about locating the proposed maintenance yard adjacent to a residential area and requested Expo to continue to look for an alternative location. The City hired real estate and design consultants to evaluate options. Several sites were analyzed and reports were provided at the August 11 and October 27 Council meeting showing no other site alternatives. Several alternatives were also explored including a "split alternative" using Verizon, SMC and 1800 Stewart Street with the facility spanning across Stewart Street. Since this split alternative involved significant cost to acquire the site from an unwilling leaseholder, garnered no support from the adjacent neighbors and generated new opposition, Expo concluded that the split alternative would not be a preferred or recommended option for a maintenance facility. Following direction to explore a site between 9th and 11th Streets, Expo concluded that this site would not be considered as a recommended alternative for the maintenance facility. This site creates additional safety and environmental impacts, including socioeconomic impacts and dislocation as well as costs ranging from $152 million - $203 million. In addition, a hybrid utilizing Verizon, SMC parking lot and a portion of the.City yards for a joint parking structure was also eliminated. Council gave direction on October 27, 2009 to continue to explore the hybrid alterative utilizing the Verizon site and the SMC College parking lot for the maintenance facility. Redesign of the facility accomplished a number of mitigations such as importantly providing a 100 - 110 foot buffer for most of the frontage facing residents on Exposition Boulevard. The. redesign also included elimination of track loops with their associated noise, as well as the mitigation of other operational concerns in response to residents, 2 who toured the Green Line maintenance facility with Expo/Metro. The hybrid alternative included a number of design and operational changes that now have been addressed to further alleviate community concerns. These changes include elimination of the paint shop. This is the alternative presented for consideration in this staff report. Use of the SMC property, a 2.35 acre site at Stewart and Exposition, allows for the creation of a 100 - 110 foot buffer area along Exposition Boulevard across from the residential area opposite the Verizon property. The buffer could be used for possible open space, housing and/or community uses which would be defined through a separate City-run community process. City staff is proposing a CIP for a park on the buffer if requested by the community. The estimated cost is $2 million and would be programmed through the 2010 budget process for next year. Expo, SMC and the City will enter into a term sheet agreement, including a land swap for the SMC property that would make the project feasible and secure the buffer of 100 - 110 feet. Appraisals will be conducted to determine the value of the properties. Both the City and Expo will continue to work with the community and the College to ensure that concerns are addressed and any impacts are fully mitigated in accordance with CEQA requirements. Further, Expo has pledged to host a workshop and meet with the community to receive additional design input for the maintenance facility. Background In January 2009, Expo issued a DEIR for the Expo Light Rail Phase 2 project.. The DEIR included the proposed maintenance yard just east of Stewart Street between the right of way and Exposition Boulevard on property currently owned by Verizon and used for their telecommunications fleet maintenance yard. Expo has explained that they are required to have a yard for maintenance within the Phase 2 project and the location within Santa Monica was the only viable site they could identify. As shown in the aerial photo below, there is a residential neighborhood just south of the proposed site. The City Council submitted comments on the DEIR expressing concern about locating the proposed maintenance yard adjacent to a residential area and requested Expo to continue looking for a more suitable location elsewhere. The Authority and its environmentallengineering consultant had examined potential locations within reasonable proximity to the alignment and narrowed the possibilities to 20 different locations. Most of the potential sites were eliminated due to inadequate size. The remaining locations were then analyzed to greater detail based on criteria including location, shape, topography, access, ownership and potential environmental impacts. Six sites were eliminated due to various reasons such as engineering 3 challenges, multiple parcel owners, and project development by others of the site. The last site, the Verizon property located in Santa Monica, was screened down to the preferred location based upon the established criteria. The City also hired both real estate and design professionals to perform an independent review of possible sites. On July 14, 2009 Council considered a "split" maintenance facility alternative cooperatively developed by the City and Expo. The "split alternative" site failed to win community support and was opposed by the long-term lessee, Lionstone, who threatened legal proceedings that would potentially delay the project. Thus, the "spilt alternative" did not mitigate community concerns, generated additional opposition and could have resulted in additional impacts. In addition, Metro Real Estate staff determined that the full cost of the "split alternative" was prohibitive since it included at least a $30 million lease-hold investment, as well as the value of current site improvements and a potential substantial sub-lessee investment. Given these factors, Expo informed City staff that this split alternative was not a preferred option that they could recommend. At the August 11 meeting staff redoubled its efforts to review sites, including sites with multiple ownerships. The City's evaluation process included information about ownership, size of site existing uses, description of existing improvements, zoning and 4 Proposed Maintenance Facility in the DEIR description of surrounding neighborhoods. The Maxima Group analysis confirmed the lack of feasible sites within the Phase 2 area that met Expo's relevant criteria, particularly with respect to safety, size and operational considerations. Council directed further reexamination of the site between 9th and 11th street. as well as further exploration of a hybrid alternative that utilized Verizon, SMC and a portion of the City Yards for ajoint-use parking structure for the maintenance facility and the yards. Expo initiated outreach with the adjacent residential community and held a series of meetings to explore ways to mitigate noise, vibration and air quality concerns as well as solicit input regarding the aesthetic interface with the surrounding neighborhood. Several tours were conducted by Expo and Metro of the Green and Gold- Line maintenance facilities. The community identified several concerns when touring these maintenance facilities on August 24, September 29 and September 30, 2009. On October 27 (SupplementaD, staff presented an update on the hybrid alternative and reported that the 9-11th Street site was not a recommended alternative because of safety, and economic dislocation and costs. Expo has told us that access to the site would require a turn into eastbound traffic, raising safety concerns. The site is home to 27 businesses ranging from auto service, manufacturing, media, and wholesale businesses. Dislocation as well as costs range from $152 million - $203 million. Staff reviewed changes to the hybrid that ameliorated some resident concerns regarding mitigating "wheel squeal" by elimination of track loops and reviewed commitments from Expo on other aspects of the facility. Staff also reviewed a number of outstanding issues that must be addressed: elimination of the paint shop; maintenance building design elements that will muffle noise; access to the facility restricted to Stewart Street; directional lighting; landscaping to soften building fagade; and mitigating horn testing. Council authorized the City Manager to further explore and mitigate the effects of the proposed Exposition Light Rail maintenance facility; requested that the Exposition Construction Authority (Expo) work with the City to ensure that any environmental impacts associated with the hybrid concept are fully mitigated; work with Expo and other agencies on layout and financial issues associated with the newly proposed hybrid 5 alternative; work with SMC on the identification of property on Airport residual land as replacement parking and possible terms for a land swap; and work with Expo to develop any necessary agreements regarding the hybrid site, if adopted by the Expo Board, and adjust the final budget for the Expo Phase 2 project as appropriate. In addition Council directed further work as follows: 1) staff work diligently to ensure that the Paint & Body shop will not be located on the site; 2) staff develop a process with Expo that allows community input into the design of the maintenance facility prior to the matter being considered by the Expo Board; 3) the two staffs agree on standards and effectiveness of mitigations prior to the Expo Board review; 4) Expo staff research noise concerns from Lantana tenants; 5) staff compare uses at the original Verizon site to those included in the proposed hybrid maintenance facility site; 6) staff ensure that the values of the proposed land swaps are equivalent; 7) staff ensure the Expo Authority is committing sufficient resources to actually complete the mitigations to the levels in which they are being designed and negotiated. Discussion "Hybrid Alternative" Currently Beinq Developed Given the results of the first, second and third property surveys that failed to identify another possible maintenance facility site within the Phase 2 area, the approach has been to explore whether it is possible to develop a maintenance facility while providing a substantial buffer for the residential neighborhood, and also to move some maintenance facility components as far away as possible from the residential neighborhood. Expo has modified the facility as follows: • The storage tracks and traction power station are located behind a 100 - 110 foot linear buffer. In addition, some facilities have been placed on the right-of-way, moving functions away from the residential neighborhood. For example, the car wash is now located on the Expo right-of way rather than in the Verizon. yard. The cleaning platform is on the right-of-way further east of the Verizon site. • Office space and shop areas would be located in a fully enclosed structure in the area currently occupied by SMC parking. The City has requested a buffer area in this location as well but Expo cannot fit one into the site. Walls and building treatments will be discussed with the community in a design workshop. The paint 6 and body shop has been eliminated, although there would be a light duty repair shop in the enclosed building. The paint and body shop will be handled at the Green Line facility. • The 100 - 110 foot linear buffer facing most of the residential neighborhood could be used for open space, housing and/or neighborhood serving uses defined through an extensive community process with recommendations for Council consideration since the property would be controlled by the City. Staff is proposing that $2 million would be set aside in the 2010-2011 CIP budget for a park at that location if the community so desires. • Expo will construct a sound wall prior to any major construction on the site and -will cooperate with City and neighbors on design, scale and locations. • The bikepath has also been included on the north side of the right-of way, providing 12 feet and in response to Lantana's request. • Loop Tracks have been eliminated to eliminate wheel squeal and Expo/Metro have agreed to consider additional noise mitigation treatments on any curved tracks. • Alarm for vehicle lift: Metro is willing to look into reducing the volume, making it directional, or other such measures to the audible alarm in order to accommodate the community. • Muffle the air conditioning (AC) unit noise for the traction power substation (TPSS). Expo has stated that the FEIR will assess the potential impacts related to the TPSS, including the AC unit, for both of the. Expo Line maintenance facility layouts. Mitigations to address the impacts will be included in the FEIR. • Blowers for carwash: Expo has stated that the FEIR will assess the potential impacts related to the carwash, including blowers, for both the Expo Line maintenance facility layouts. As needed mitigations will be addressed during final design. Note that the carwash is .proposed to be located along the Expo right- of- way north of the Verizon property for both layouts and the blowers will be located within the carwash building. • Elimination of the paint and body shop: Metro has agreed to eliminate the paint and body shop, although a "light repair" shop will be included in the enclosed building. • Noise attenuation: Expo and Metro have agreed to incorporate design elements into the maintenance building that will muffle noise. 7 • Access to the facility is being reviewed to see if access to Stewart Street can be restricted. Expo has further committed to review truck deliveries to minimize the size and possibly restrict delivery to certain hours during the day. During construction, access will be restricted to Stewart Street via Olympic Boulevard to the extent possible with the goal of minimizing disruption to the neighbors. Expo has agreed to have project manager work with residents to give advance notice when access to Exposition Boulevard can not be avoided. • Use of only directional lighting is being explored in good faith to minimize any impacts. • Sufficient landscaping and design to soften the building fagade will be included. • Mitigation for horn testing through directional or other noise attenuation methods is under discussion and will be addressed during design. • Expo has agreed to pursue LEED certification for the facility. Responses to address these issues are still being evaluated by the agencies. Some of the solutions/mitigations will depend upon the forthcoming environmental analysis specific to the site and detailed design to be undertaken in the future. In an effort to retain a sizable residential buffer, City staff and SMC have discussed the possibility of a land exchange among Expo, SMC and the City, which allows for using the SMC parking lot as part of this new hybrid alternative. SMC and its Board of Trustees are willing to consider relocating their Exposition parking facility on the condition that SMC will be made whole with a replacement site acceptable to SMC. To this end there have been exploratory discussions between City and SMC staffs about whether it is possible to provide SMC with suitable land for replacement parking adjacent to SMC's Airport Bundy Campus. Under this approach, Expo would obtain SMC's current Exposition parking site, with SMC obtaining the land identified as the potential maintenance facility buffer. SMC and the City would then enter into a swap, with the City obtaining control over the buffer land, and subject to applicable law, with SMC obtaining control over land owned by the City at the Airport where SMC can relocate its parking facility. If this all is to happen, public hearings, Council approval and CEQA compliance would need to occur. Agreements for the land swap could then be authorized by the SMC Board and Santa Monica City Council, under mutually agreed to 8 terms and conditions and in accordance with state and federal law. The City and SMC will need to determine which party is responsible to perform the environmental assessment and which. party will be responsible for satisfying any potential environmental mitigations. Budget/Financial Impact The City's appraiser has found the SMC parking lot, proposed buffer and Airport residual land to be of equivalent value on a per square foot basis. If the appraisals being conducted by SMC and Expo contain similar valuations, staff believes that the land swap might be accomplished without additional investment of City funds, but this is subject to review of Airport revenue and applicable law. Should the Council and community desire a park to be developed on the buffer, staff will set aside CIP funding up to $2 million through the regular budget process. Prepared by Kathryn Vernez, Assistant to the City Manager, Community and Government Relations Ellen Gelbard, Assistant Director, Planning and Community Development Department Approved: Forwarded to Council: Assistant to the City Manager for Community and Government Relations Ewell Attachment A: Conceptual Plan: Hybrid Verizon-SMC-City Yards Alternative for Expo Maintenance Yard Facility 9 Item 8-A Attachmerot e4 Attachment A Reference Contract No. 9153 (CCS).