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SR-01-27-2015-8DAgenda Item: '6D To: Mayor and City Council From: Martin Pastucha, Director of Public Works Gigi Decavalles- Hughes, Director of Finance Subject: Feasibility analysis and Design -Build Agreement for the City Services Building Project Recommended Action Staff recommends that the City Council: 1. Review and comment on the feasibility analysis, concept design and financial options for the City Services Building project. 2. Authorize the City Manager to negotiate a Guaranteed Maximum Price (GMP) with design -build contractor Hathaway Dinwiddie Construction Company, a California -based company, for design services (including schematic, design development and construction documents), for the proposed City Services Building. Executive Summary On April 4, 2014 Council authorized staff to negotiate and execute a professional services agreement with Hathaway Dinwiddie Construction Company for the feasibility analysis, concept design and cost estimates for the City Services Building. Staff recommends that Council review and comment on the feasibility analysis and financial options and authorize staff to enter into negotiations for a Guaranteed Maximum Price (GMP) for a design -build agreement to initiate the design phase of the project. Staff would return to Council for approval of the GMP for the design phase. Background City Hall was constructed in 1938 when the city population was 53,500. The approximately 60,000 square foot building was designed to consolidate staff offices, services and activities of three separate municipal structures including: City Hall, a fire station and police station /jail. Santa Monica's population has grown to 92,400 and City services and staffing levels have evolved and increased to serve the needs of an active community and commercial 1 hub. In addition to the 243 staff located in the historic City Hall building, approximately 200 city employees are housed in leased spaces throughout Santa Monica at a cost of almost $2 million per year. Current lease agreements stipulate increases as high as 5 percent annually, based on the consumer price index (CPI). Given the strengthening economy and real estate recovery, these increases could be much higher once leases expire and must be renegotiated with lease and utilities payments expected to increase to $2.4 million by 2020. On July 24, 2001, Council awarded a contract to Sares Regis Group of Northern California to conduct a feasibility study to determine the City's space requirements, assess department locations and adjacencies, prepare seismic upgrade and rehabilitation options for City Hall and explore options for a new City Services Building. The feasibility study was completed in April 2002, with the following recommendations: ® Construction of a new City Services Building spanning Main Street on a site northwest of City Hall with 111,245 square feet of office space and 147,170 square feet of below -grade parking for 300 spaces. • Reorganization /rehabilitation of City Hall, including interior, exterior and grounds. • Demolition of the Police Annex building, located in the City Hall courtyard. `a Illustration from Sares Regis Group of Northern California Feasibility Study 2002 The July 2002 estimated cost for all of the recommended improvements was over $70 million. On June 28, 2005, Council adopted an update to the 1993 Civic Center Specific Plan (CCSP). The 1993 and 2005 updated CCSP recommended that: • A City Services Building be built on the "North Slope" between City Hall's north parking lot and the 1 -10 Freeway. • The historic City Hall be seismically upgraded, restored and enhanced (completed). • Construction of a new Public Safety Facility (completed). • The Police Annex building located in the City Hall courtyard be demolished (completed). • A new Civic Center Parking Structure /Garage be constructed (completed). 3 The Civic Core Special Use District — (M[CeMe�Ganye • AN +wain M1iWhf6(6RMrl . et..rwm!mv.on twayrmrtwwYtM.niw,v • rMa ..�.mnaww.Maw.�.nva,.twuw.r.v,m IM1OrmMrtnin' MnlxYnlM1nMrye4n9 Mun Nwvi Illustration from Civic Center Specific Plan 2005 On January 9, 2007, in an effort to expedite the consolidation of City Hall staff, Council was presented with a report to select Natoma Architects, Inc. to prepare initial design for a proposed "Temporary Office Building" east of City Hall until a permanent space could be identified. The proposed "Temporary Office Building" was envisioned to be two or three floors to house a one -stop public permit counter, including planning, building and safety, public works, parking and finance operations. The existing public counter space on the first floor of City Hall would be transformed into office space. Upon further review of the cost benefit of this "Temporary Office Building," Council did not consider this plan and directed staff to look at other alternatives. 0 Illustration from Stanley Saitowitz / Natoma Architects, Inc. On October 13 2007, staff presented a City office space needs analysis to Council at a special meeting, which included five alternatives: Council expressed a preference for the option of an enhanced Civic Center. With this approach the city would construct or purchase and rehabilitate a 90,000 square foot building and would also offer art galleries and community meeting space. On July 8, 2008, Council endorsed the short term strategies identified in a February 11, 2008, Information Item. Strategies included reducing leases and moving staff closer to City Hall, developing office space in the former jail and on Fourth Street within the Civic Center Parking Structure. On September 16 2008, Council approved a contract with Gensler Architects, Inc. to complete a space needs analysis for City administrative space as an update to the April 2002 Sares Regis Group of Northern California's feasibility study. The completed analysis report recommended the implementation of: • A "one stop shop" model for public counter functions. • Optimize the effective use of the historic City Hall building. 9 ® Implement specific departmental office space designs to support and enhance the variety of work processes required within the City's administrative functions. ® Construct an administrative services building on the City Hall campus On March 27 2012, Council authorized staff to seek proposals for initial design and cost estimates for a City Services Building located on the site just east of City Hall Civic Center Specific Plan: North Slope Site The "North Slope" site identified in the Civic Center Specific Plan has certain difficulties due to freeway adjacency and non - contiguity with City Hall. Additionally, a report submitted and reviewed on September 20, 2011, by the Landmarks Commission characterized the "North Slope" site as "original terraces and retaining walls" circa 1956 which are character defining features of the City Hall landscape. For these reasons, staff is no longer considering use of the "North Slope" site. Proposed Alternative Location: East of City Hall Site Staff studied the site immediately east of City Hall as a potential alternative location for a City Services Building. A new building could be constructed parallel to Avenida Mazatlan and to the Public Safety Facility across the rear of City Hall enclosing the City Hall courtyard. This is a variation of the 2007 proposal by Natoma Architects to add a temporary office building. This location could accommodate 40,000 square feet of office space on three levels with optimal adjacency to City Hall. Limiting the size and height would aid compliance with the National Register of Historic Places /Secretary of the Interior Standards. This new building would provide sufficient space to accommodate off -site staff requiring City Hall adjacency currently located in leased spaces. Advantages of utilizing this proposed site • Furthers the efficiency and functionality of a City Hall campus byr centralizing of municipal activities utilized by the public. • Increased employee productivity due to centralized municipal staffing and eliminating travel time from various offsite locations. h u • Could be incorporated with a detailed City Hall Master Plan, to ensure that phased improvements meet the long term goal of a functional and restored historic City Hall. • Provides the opportunity to include the recommended "One Stop Shop" (a localized first floor public counter area and central cashier for financial transactions). • Would minimally disrupt the historic City Hall massing and front fagade. • Would be able to relocate off -site staff, currently in lease spaces, back to City Hall including Finance, the Office of Sustainability and the Environment, Housing and Economic Development, Civil Engineering, Architecture Services and Cultural Affairs, increasing efficiencies conducting City business by eliminating travel time. Challenges of utilizing this proposed site: • Delicacy of designing and constructing an addition, particularly immediately adjacent to historic City Hall, will require using The Secretary of the Interior's Standards and Guidelines for Preservation Planning. • Sensitivity to the light and views of Public Safety Facility and City Hall inhabitants. • Necessity of careful planning of both the proposed new structure and historic City Hall structure with respect to locations of underground utilities and obstructions, including possible expensive relocations. • Future expansion of City Hall and the new building may be limited. None of the listed challenges are insurmountable. This proposed site has the strongest functional relationship to City Hall while still creating minimal impact to the Civic Center. Additionally, the City currently spends approximately $2 million per fiscal year to lease space to accommodate City staff. It is anticipated that lease and utility savings of approximately $2 million per year would be redirected to fund a portion of the debt service for the financing of this construction. The remaining payment of debt service would come from the General Fund. On October 8, 2013, staff issued an Information Item detailing the proposed design build delivery method for the design and construction of the City Services Building. This approach offers phased implementation, starting with a feasibility analysis, concept design and cost estimation. 7 On April 8, 2014, Council authorized the City Manager to negotiate and execute a professional services agreement with Hathaway Dinwiddie Construction Company for the initial concept design, cost estimation services and feasibility analysis for the City Services Building. This agreement is the first of three phases in the design -build process. The project design and construction phases would follow under a design -build contract subsequent to Council approval for each phase. Staff recommends continuation of the City Services Building project with the initiation of a design -build agreement for design. Additionally, staff explored approaches that would make this building the most sustainable City facility yet built. Staff recommends a City Services Building constructed to Living Building Certification (LBC) as the most prudent solution for the long term needs of the city. A building built to LBC standards would cost approximately $8 million more than a LEED Platinum building with composting toilets. However, the LBD building would increase operational savings through Net Zero Energy and Net Zero Water requirements. The differences between LEED and LBC are described in further detail in Attachment A. Staff would return to Council for approval and authorization of two guaranteed maximum prices: one for the design services this spring and a second guaranteed maximum price for construction in winter 2016. The design -build team led by Hathaway Dinwiddie Construction Company (HDCC) working with Frederick Fisher Partners Architects conducted a feasibility analysis and created a concept design for a state -of- the -art, sustainable, civic office building attached to the east of City Hall. The City Services Building would house the City's permit center, staff and ancillary spaces currently located in leased offices throughout the city. The feasibility analysis report is included in Attachment B. Employee and customer parking would be located in the Civic Center Parking Structure or on the Civic Auditorium Lot as prescribed in the Civic Center Site Specific Plan (CCSP) and the Environmental Impact Report. This feasibility analysis resulted in a number of findings, a proposed concept design with a corresponding cost estimate for the City Council's review and input (stressing scale, massing and location). rte' � ✓ `�- J�- >- �-�... � i a ' 61 IT, Feasibility Analysis - City Services Building, Frederick Fisher + partners, 2014 Iwnosemr The proposed building would be 50,000 square feet (including a basement) and pursue LBC certification. The feasibility analysis found that a building conforming to these standards could be constructed on this site for a total project cost of $56,385,130. Within this LBC budget of $56,385,130, the proposed structure would be a cutting edge building reflecting the community commitment to sustainability and customer service. The City Services Building would exceed the current sustainability standards and serve as a regional example and a compelling vision for the future of the built environment in California. The team conducted a cost - benefit analysis of the overall project cost to determine whether a building housing staff in this location could be funded through savings from the elimination of leased spaces. The cost - benefit analysis indicated that savings from future rents would exceed the annual debt service cost of the building starting in FY 2034 -35. There would be a period of approximately 16 years where the General Fund would need to pay the difference between rent and debt service. we ,� / CNY SERVICES BNLDING ® VEHICULAR CIRCULATION 1� f PEDESTRIAN ^' CIRCULATION 1 � _ PUBLIC SAFETY i VEHICLE CIRCULATION PUBLIC /STAFF ENTRY POINT / .:.� LOADING ENTRY � A EMERGENCY EXIT Ya VEHICULAR ENTRANCE TO PARKING GARAGE OUTDOOR AREA L WITHIN PROJECT SCOPE 61 IT, Feasibility Analysis - City Services Building, Frederick Fisher + partners, 2014 Iwnosemr The proposed building would be 50,000 square feet (including a basement) and pursue LBC certification. The feasibility analysis found that a building conforming to these standards could be constructed on this site for a total project cost of $56,385,130. Within this LBC budget of $56,385,130, the proposed structure would be a cutting edge building reflecting the community commitment to sustainability and customer service. The City Services Building would exceed the current sustainability standards and serve as a regional example and a compelling vision for the future of the built environment in California. The team conducted a cost - benefit analysis of the overall project cost to determine whether a building housing staff in this location could be funded through savings from the elimination of leased spaces. The cost - benefit analysis indicated that savings from future rents would exceed the annual debt service cost of the building starting in FY 2034 -35. There would be a period of approximately 16 years where the General Fund would need to pay the difference between rent and debt service. we Concept design and occupancV / programmatic analysis A concept design of the proposed structure was completed, focused on the determination of the building massing, scale and location on the site. Concept design excludes consideration of the structure fagade and appearance (this would be developed as part of the design phase). A three story building on the proposed site could accommodate both a state of the art public permit center and accommodate staff from lease spaces located throughout Santa Monica. The study shows that sufficient space can be constructed in this location to house both a one stop Permit Center and eliminate five City leases totaling approximately 43,500 square feet. Operating groups identified for relocation to the City Services Building include: Housing and Economic Development, Finance and Risk Management, the Office of Sustainability and the Environment, Architecture Services, Civil Engineering and Cultural Affairs. These groups currently occupy leased office space at sites throughout Santa Monica. Co- locating the staff and the permit center would improve the efficiency of the City Hall campus for the public benefit. A second floor south wing internal connection to the City Hall building would be supported to increase staff synergy and enhance the productivity and functionality of the overall City Hall campus. Customer Service A "One Stop Shop" (public permit services and payment center) would be located on the first floor of the proposed building. Santa Monica permitting and public counter functions are now spread across various locations. The public must visit two to three locations to complete a single business transaction. For example, business licenses are distributed in the first floor leased space at 1717 Fourth Street a few blocks from City Hall. A number of the permit functions are located in an area of City Hall that is crowded and outdated. The permit counter is inadequate to meet demand and meeting space is at a premium. 10 A new permit center in the City Services Building would improve customer service by co- locating staff members from Planning and Community Development, Public Works and Finance to provide a comprehensive, one -stop shop. A reception and public waiting area would be located adjacent to the counter and project meeting spaces. Business license processing would be served by a central cashier for the collection of fees (including potential collection of utility bills and traffic citations) with increased security in one convenient location. FIRST FLOOR: ONE -STOP PERMIT CENTER: 10,670 GSF Feasibility Analysis -City Services Building, Frederick Fisher+ Partners, 2014 NOTTOSCAIE u Additional benefits would include increased productivity of employees as staff would eliminate the travel time associated with coming to City Hall for meetings and services. In addition, the central campus atmosphere would provide greater interaction and cooperation among staff. Historic Preservation The proposed design requires sensitivity in design and historic preservation. The 1939 City Hall Building was designed by prominent Los Angeles architects, Donald B. Parkinson and Joseph M. Estep. An outstanding example of the PWA Moderne/ Streamline Moderne style of architecture, City Hall is eligible for listing in the National 11 PUBLIC FACINIES rl PUBLIC /SFAFf INTERFACE ® PRIVATEOFfICB/ CONFERENCE ROOMS OPENWORKAREAS CORE a VERTICAL CIRCULATION ® PUBLIC /STAFF ENTRY LOADING/TRASH CONVENIENCE CONNECTION BETWEEN a+ EXISTING CITY HALL & NEW ADDITION (S'aU Only EMERGENCY EXIT Feasibility Analysis -City Services Building, Frederick Fisher+ Partners, 2014 NOTTOSCAIE u Additional benefits would include increased productivity of employees as staff would eliminate the travel time associated with coming to City Hall for meetings and services. In addition, the central campus atmosphere would provide greater interaction and cooperation among staff. Historic Preservation The proposed design requires sensitivity in design and historic preservation. The 1939 City Hall Building was designed by prominent Los Angeles architects, Donald B. Parkinson and Joseph M. Estep. An outstanding example of the PWA Moderne/ Streamline Moderne style of architecture, City Hall is eligible for listing in the National 11 Register of Historic Places and is included in the California Register of Historical Resources. The structure was also designated as a Santa Monica Landmark in 1979. The design build team utilized an integrated process to explore the feasibility of utilizing the space behind City Hall by investigating the historic preservation aspects, the existing conditions underground, and the available sustainability opportunities. The team focused on the massing and arrangement of the existing structures and their relationship to the placement, size, scale, and massing of a proposed addition in conformance with the preservation guidelines. The Historic Preservation Report included in Attachment C and developed as part of the feasibility analysis demonstrates an addition to the historic City Hall could maintain the City Hall's State and Local Landmark status so that the building retains eligibility for listing in the National Register of Historic Places. Once the heights and proximities of City Hall and the Public Safety Facility were established, three approaches were explored in the presentation to landmarks in Attachment D to locate an approximately 45,000 square foot building between the two existing buildings: 1. Approach one: Incorporates the former equipment bay into the project. This entails a footprint of approximately 6,830 square feet on the remaining site, requiring a five story building in order to accommodate the needed square footage for the addition. Considering the historic preservation of the City Hall, this was considered to be aggressively tall adjacent to the City Hall. Additionally, the floor plate size is not very efficient. 2. Approach two: Captures the equipment bay into the new facility. This allows for a footprint of approximately 8,750 square feet which becomes a four story building in order to create the needed square footage. This has functional issues as it bifurcates the new building and creates a less efficient structure. 3. Approach three: Removes the equipment bay. A footprint of approximately 12,900 square feet becomes a three story building. This scheme is the most efficient of the three, overall being smaller in scale and massing and is the proposed approach. MA A three story building placed at the rear (secondary) elevation of the building would minimally disrupt the historic City Hall massing and front fagade. A subordinate, modern harmonious building in this location can be sensitively designed to be compatible with the historic City Hall. These three options were reviewed with the Landmarks Commission at their December 8, 2014 meeting and they expressed support of proposed approach number three for its size, scale, massing and position G10093Y. 9290,.i11111'"MR&IfSAM Feasibility Analysis - City Services Building, Frederick Fisher + Partners, 2014 Sustainability The team sought to maximize the sustainability of the City Services Building and examined a number of emerging, high performance technologies and rating systems (including LEED and the Living Building Challenge) to reduce the ecological footprint of the building. Leadership in Energy and Environmental Design (LEED) was developed in 1993 by the U.S. Green Building Council. Most newly constructed municipal buildings in Santa Monica are LEED Gold or Platinum. Parking Structure 6 is LEED Gold, with Pico Library on track to earn LEED Platinum. The Living Building Challenge (LBC), developed by the International Living Future Institute (ILFI) in 2006, is a newer certification program that 13 promotes the most advanced measurement of sustainability in the built environment; exceeding even LEED Platinum standards. The monthly water budget for the City Services Building would be approximately 34,000 gallons. With composting toilets, the monthly water usage drops to 15,000 gallons which could be sourced with a combination of water sources including collected rainwater, grey water from air conditioning condensation, kitchen dishwater and the use of a ground well. Composting toilets on the market have been NSF -41 certified since 1994. NSF certification is an internationally recognized standard for public health protection. These micro -flush toilets use 3 oz. of water along with a foaming biodegradable alcohol to flush waste into a compost area. Additional details regarding composting toilets are included in Attachment F. Components of the LBC include Net Zero Energy (NZE) and Net Zero Water (NZW). These components would be pursued with a full LBC certification. Net Zero Energy and Net Zero Water are separate certifications awarded by ILFI. In order to achieve NZE, a building must be designed to create the same amount of energy that it consumes. NZW aims to relieve buildings from dependence on city water with a `closed loop' supply, which will decrease strain on water treatment facilities. A computerized energy model was utilized to determine if it is technically feasible for the three -story proposed concept to achieve a full LBC certification on the site that could be NZE and NZW. The feasibility analysis demonstrated that the proposed City Services Building in this location may technically achieve a full LBC certification that is both NZE and NZW compliant that is comfortable, environmentally friendly and demonstrates sustainable City values in order to serve as a replicable model for the community. An executive summary of the sustainability report is included in Attachment F. These opportunities come at an added cost to the baseline building cost, which may be slightly offset by the cost of energy savings which is discussed in the cost - benefit analysis of the project. 14 Site Preparation The preparation and construction of the City Services Building presents challenges that impact the project cost including: ® Rerouting of existing utilities including electrical conduits and a major electrical service closet. ® Removal and remediation of the subterranean, encapsulated firing range including the concrete perimeter walls (from the former demolished police addition.) ® Preparation of the south site to accommodate a building entrance in this area. ® Construction to the rigorous standards of an Essential Services Building to ensure the building would be operable after a seismic event. VIEW FROM CIVIC CENTER PARKING Feasibility Analysis - City Services Building, Frederick Fisher + Partners, 2014 Otherlssues The Feasibility Analysis has identified the following challenges of utilizing this potential site with offered solutions: ® Existing City Hall Campus inhabitant's views and light can be both managed and enhanced by the addition. The concept design demonstrates that the existing city offices located in the former jail may retain some of these windows. Some views ip from the Public Safety Facility will be impacted by the construction of a three story addition, the same height as City Hall. Cost Benefit Analysis In FY 2014 -15, staff anticipates the City will spend approximately $2 million on rental fees for approximately 43,500 square feet of offsite office space for 200 employees. Utilities are an additional cost and are averaging approximately 10% of rental fees at some offsite locations. Should Council direct staff to move forward with the City Services Building, staff anticipates the building could be fully occupied by these employees in FY 2019 -20, resulting in an annual, ongoing rental and utilities savings of approximately $2.5 million starting in the first year of operations, assuming a 4% annual increase in rent from the current fiscal year based on current lease terms and anticipated growth in the local real estate market. It is the City's fiscal policy to consider both pay as you go and debt financing for capital projects, depending on the availability of funds in the former case, or the ability to use annual revenues to fund annual debt service, in the latter case. Because capital expenditures produce long -term benefits, they can appropriately be funded by debt, which can lead to a more equitable cost burden across generations. Staff recommends funding the City Services Building through a lease revenue bond with a thirty year final maturity. The amount financed may depend on the approach determined by Council but the rates would not vary significantly. Staff has identified $4 million in capital reserves that could be used as an equity contribution that would lower annual debt service costs. To calculate the payback period of this project, staff analyzed financing options for two construction scenarios: • Option 1. Living Building Challenge (LBD) certification at an estimated cost of $56,385,130 (resulting in close to zero utility cost). • Option 2. LEED Platinum with composting toilets at an estimated cost of $48,218,880. MV There is a third option to construct a LEED Platinum building with standard low -flush toilets at an estimated cost of $47,535,000. The debt service payments would be negligibly lower than payments outlined for the LEED Platinum building with composting toilets, but the difference would be insignificant with a total project cost difference of less than $1 million. The table below highlights the differences in financing Option 1 and Option 2. Both scenarios assume a $4 million equity contribution and a 4% annual increase in rental costs over a thirty year debt service period. Initially, debt service and other costs related to building ownership would exceed rent and utilities savings. This cost would steadily decrease under either scenario until the rent vs. debt service break -even year, after which point projected rent and utilities savings would exceed debt service payments and result in savings to the City going forward. During the initial years when debt service payments will exceed anticipated rent and utilities savings, funds would need to be diverted from the Capital Improvement Program (CIP) budget to accommodate the net cost of debt service. Current financial forecasts assume an annual amount from the General Fund for the CIP budget of $21 million annually, and available funds would be reduced by the amounts listed below. The CIP budget contributions would decline over time until the rent vs. debt service break -even point, at which point the projected cost savings achieved by not renting would be sufficient to cover the debt service payments. The table below shows the projected reductions to the CIP budget in year 1, 5, 10, and 15 of building operations. Option 1 Living Building Challenge Option 2 LEED Platinum Average annual debt service payment $4.2 million $3.5 million Rent vs. debt service breakeven year FY 2034 -2035 FY 2031 -32 CIP budget contribution in year 1 $2.0 million $1.4 million CIP budget contribution in year 5 $1.6 million $1.0 million CIP budget contribution in year 10 $1.0 million $0.5 million CIP budget contribution in year 15 $0.3 million (stops in yr 16) N/A (stops in yr 14) Recommendation Staff recommends development of a 50,000 square foot City Services Building as outlined in scenario 1 with LBC rating. Achieving the LBC certification would be a long- term investment in the City's wellbeing. This project is representative of the community values to build sustainable structures and minimize the impact on energy and water resources. It would also serve as a sustainable regional model for future development. This would require the dedication of approximately $2 million reduction in the amount available CIP projects beginning in FY 2019 -20, which would then be reduced annually based on the difference between rental /utilities savings and annual debt service. CITY HALL COMPLEX Feasibility Analysis - City Services Building, Frederick Fisher+ Partners, 2014 Next Steps Dependent upon Council action and approval of the recommended action, staff anticipates the following project timelines: ® Return to Council for authorization of a Guaranteed Maximum Price for design — Spring 2015 ® Schematic design — Spring 2015 through Summer 2015 • Design development— Summer 2015 through Spring 2016 • Complete construction documentation phases — Spring through Fall 2016 iff • Return to Council for authorization of a Guaranteed Maximum Price for construction and to issue lease revenue bonds — Winter 2016 • Start of construction / site preparation — Spring 2017 • Complete construction — Summer 2019 Additionally, upon Council approval of the recommended action, staff would return to Council to amend the Civic Center Specific Plan to allow for the use of the proposed site. Alternatives to Staff Recommended Options Council could direct staff to pursue a City Services Building but with fewer sustainability features including: • LEED Platinum certification with composting toilets for a savings of approximately $8.16 million in construction costs compared to LBC certification • LEED Platinum certification with standard low -flow toilets for a savings of approximately $8.85 million in construction costs compared to LBC certification Council could decline to pursue construction of a City Services Building and direct staff to continue to lease necessary office space Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of recommended action. If Council authorizes staff to negotiate a Guaranteed Maximum Price (GMP) for a design -build contract with Hathaway Dinwiddie Construction Company, staff would return to Council for approval of the negotiated GMP for design and would recommend budget actions at that time. Staff would also return to Council with debt service financing plans at a later date. The debt service for the LBC building would be approximately $4.2 million per year Assuming a $4 million equity contribution and a 4% annual increase in rental costs over a thirty year horizon of debt service, this project would generate lease savings that, along with utility savings, would eventually exceed the cost of annual debt service in FY 19 2034 -35. Initially, debt service and other costs related to building ownership would exceed savings by approximately $2 million a year. This cost would steadily decrease until FY 2034 -35. Funds would need to be diverted from available General Fund CIP allocation annually during this time to accommodate the net cost of debt service. Prepared by: Miriam Mulder, City Architect Homa Mojtabai, Senior Administrative Analyst Brooke Sween - McGloin, CIP Project Manager Approved: Forwarded to Council: Martin Pastucha Rod Gould Director of Public Works City Manager Approved: GigPDecavalle"ug'hes Director of Finance Attachments: A — LEED and LBC Background Information B — Feasibility Analysis C — Historic Preservation Report D — Landmarks Presentation E — Composting Toilets F — Executive summary of the sustainability report P7i] UA& 91;-:� GigPDecavalle"ug'hes Director of Finance Attachments: A — LEED and LBC Background Information B — Feasibility Analysis C — Historic Preservation Report D — Landmarks Presentation E — Composting Toilets F — Executive summary of the sustainability report P7i] Attachment A — LEED and LBC The City of Santa Monica is an internationally recognized a leader in sustainable city planning. In 1994, it was one of the first cities in the world to publish a Sustainable City Plan. The City continues to pursue long -term environmental goals outlined in its Climate Action Plan. Current City codes mandate enough sustainable features to almost guarantee a minimum LEED Gold rating for new building projects. LEED Platinum, the highest LEED standard, is becoming increasingly common. The Pico Library, completed in 2014, is on track to achieve LEED Platinum certification. LEED Certification In 1993, LEED, Leadership in Energy and Environmental Design (LEED), was developed as a program of the U.S. Green Building Council. LEED certification has been recognized across the globe as the premier mark of achievement in green building. Buildings are rated LEED Certified, Silver, Gold and Platinum based on increasingly rigorous measurements. For more information on LEED, see http://www.usqbc.org/leed. The Living Building Challenge In 2006, an even more rigorous international rating standard for sustainability, the Living Building Challenge, was developed by the International Living Future Institute (ILFI). The Living Building Challenge is a philosophy, advocacy tool, and certification program that promotes the most advanced measurement of sustainability in the built environment. Similar to LEED, the LBC offers three levels of recognition: Living Building Certification, Petal Recognition or Net Zero Energy Building Certification, the most challenging level is full Living Building Certification. A full Living Building Certified (LBC) project achieves net -zero energy, net -zero water and contains no cancer - causing chemicals. Since 2006, only 5 projects in the world have met the standard, each of which was two - stories or less and developed by a foundation or private school. LBC differs from LEED in that it is performance based. A building project seeking LBC certification is monitored during the operational phase to determine if LBC certification is warranted whereas building performance is not a factor after a LEED rating is achieved. During the design phase of an LBC building, substantial attention is paid to how the building will be operated and occupied. A conservative design approach is used so that the designed building will produce at least as much energy and water than it consumes over the course of a year. A sixth building built to LBC standards and expected to achieve LBC certification in 2015 is the Bullitt Center, a six story, 50,000 commercial office building in Seattle, Washington. The building is occupied and currently in the operational monitoring / commissioning stage. Because the Bullitt Center is similar in size and use to the proposed City Services Building, it was studied by the project team in the Feasibility Analysis as a benchmark and aspirational model facility. More information regarding the Living Building Challenge can be found at http: / /living- future.org /Ibc /certification. More information regarding the Bullitt Center can be found at http://ww.builittcenter.org/. Sustainability Approach As part of the feasibility analysis, the City Services Building was registered with the ILFI for the Living Building Challenge (LBC) to explore the impact and applicability of LBC, Petal or Net Zero certification. The project team, driven by the City's commitment to sustainability, conducted the feasibility analysis to maximize sustainable design, construction and operation of the proposed facility within funding constraints. The project team utilized an integrated design process to identify available technical opportunities for sustainable solutions. Baseline energy and water budgets for a proposed building on this site were established and solutions were identified to provide enough energy and water to achieve Net Zero Energy and Net Zero Water Certification. Energy or water budgets are calculations of energy or water requirements necessary to serve the needs of building occupants. Budgets are designed to be both functional and conservative in their measurement of natural resources. Early -stage energy modeling simulations, utilizing the industry's most advanced software tools, were employed to maximize energy efficiency opportunities using quantifiable data. The feasibility analysis demonstrated that the proposed City Services Building in this location is technically able to achieve full ABC with both a Net Zero Water (NZE) and Net Zero Energy (NZW) status. Net Zero Energy (NZE) A NZE building must create at least as much energy as it consumes. By definition a NZE building should have zero or near zero energy utility costs. A number of design variables including local climate, building size, location and orientation relative to daily and seasonal position of the sun, insulation requirements, daylighting, window to wall ratio, and overhang depth must be studied and understood to determine if NZE is feasible. Additionally, the use of natural ventilation, daylighting, high efficiency windows, heating, cooling, lighting equipment and office equipment must be studied and analyzed. Energy model simulations help predict building performance prior to construction. The first step in an energy model is the creation of an energy budget. A baseline energy use study calculates the energy needed by building occupants based on the best data predictions available at the time (including occupancy numbers, thermal comfort levels, lighting and daylighting, equipment plug load requirements). Building power must be generated on -site and can be provided by a combination of renewable energy sources including, but not limited to: solar photovoltaic panels (PV panels), wind, solar thermal and geothermal. The proposed generated power must be equal to or greater than the annual energy budget in order to achieve Net Zero Energy. During the City Services Building Feasibility Analysis the team identified that solar photovoltaic panels (PV panels) would be the most effective power generation source on the proposed site. Important elements of the proposed NZE strategy for the City Services Building include energy savings through the use of: Building Envelope — use of high performance glazing and shading devices to control solar heat gain. ® Daylighting — strategic placement of windows and project spaces and the use of daylighting sensors and automated shades to provide natural lighting levels needed for interiors while controlling glare. ® Natural ventilation — reduce dependency on HVAC systems through natural ventilation. Modern designs can incorporate natural ventilation as a systematic function to manage building thermal comfort and healthy air. A building 'weather station' monitors weather conditions and automatically operates high efficiency windows based on temperature and pressure differential between the building and outside environment. Mechanical cooling and heating are utilized only when natural ventilation is unavailable or not suitable. In climates like Santa Monica, natural ventilation can meet all of a building's heating and cooling needs for most of the year. Occupants would need to take an active role in order for the proposed building to achieve NZE by responding to the seasons through the use of layered clothing and adjusting clothing levels to maintain thermal comfort. Energy efficiency — all equipment in the building must be industry rated as energy efficient, which will reduce the energy load from plugged -in appliances. Net Zero Water (NZW) NZW recognizes buildings that capture and harvest all water to achieve water independence from municipal sources. This achievement is sometimes referred to as 'closing the loop' on water usage. A building water budget is calculated by determining the number of building occupants and visitors and calculating a total of their daily water use. Once the budget is established, design opportunities are evaluated to determine whether a proposed structure can be designed and constructed to achieve NZW. One affordable water conservation method with a low energy footprint is the use of composting toilets. It is estimated compost toilets would reduce the CSB water usage by over 55 %. During the City Services Building Feasibility Analysis, the design team evaluated multiple technologies in order to achieve NZW. These included the use of a living machine (an ecological wastewater treatment designed to mimic the cleansing functions of wetlands), sewer mining (capturing water from the sewer and processing it on site) and dew harvesting (capturing moisture from the air on site) none of which are recommended because of the size of the building site or the low water yield. A 50,000 gross square foot commercial office building such as the proposed City Services Building would have a water budget of approximately 34,000 gallons of water a month. The use of composting toilets would reduce water use in the building by 19,000 gallons per month. The remaining required 15,000 gallons a month would then be able to be supplied using the following combination of recommended strategies: • Rain /Stormwater harvest with on -site treatment. • Graywater and process water capture and reuse for irrigation. • Groundwater well with on -site reverse osmosis (RO) to be used in extreme drought conditions. Reference: Attachment B Feasibility Analysis Is available at the City Clerk's Office Filed with Staff Report 01/27/2015, Item 8D Within Legislative File Attachment C INTRODUCTION This report is a response to our assigned portion of the work plan for the project noted below. References include the Santa Monica City Hall Historic Structure Report, Volumes I and 11, dated April 10, 2003 (HSR), observations of existing conditions on August 1, 2014, and review of renderings prepared by Frederick Fisher and Partners Architects in November 2014. The HSR includes data on the development chronology and significance of the property, spaces, and features. With the exception of the intervening removal of the police department addition on the east side of the original structure and alteration of the yards and setting on the west and south, there are no features or conditions that are significantly different relative to the historic structure. OWNER'S PROJECT REQUIREMENTS: E. PRESERVATION The proposed new structure is an addition that is adjacent to and will connect to the 1939 Santa Monica City Hall, a historically significant structure, and will require design sensitivity. Designed by prominent Los Angeles architect Donald B. Parkinson, and Joseph M. Estep, the historic City Hall was constructed by Campbell and Kelly Construction and dedicated into community service on November 24, 1939. A local architectural treasure and an outstanding example of the PWA Moderne /Streamline Modern style of architecture, Santa Monica's City Hall building was formally determined to be eligible for listing in the National Register of Historic Places in 1996 by consensus determination, and was therefore listed in the California Register of Historical Resources. City Hall was designated as a Santa Monica City Landmark in 1979. SUMMARY OF CULTURAL RESOURCES STATUS AND REGULATORY ENVIRONMENT City of Santa Monica: Designated Landmark The Santa Monica City Hall was formally determined eligible for listing in the National Register of Historic Places in April, 1996. By virtue of this determination of eligibility, the building was placed on the California Register of Historical Resources. In addition, the City Hall was designated Santa Monica City Landmark # 12 on October 16, 1979. The Santa Monica City Council adopted the Landmarks Ordinance (#I 028CCS) to recognize local landmarks, structures of merit, and historic districts in 1976, as amended in 1991. The Ordinance created a Landmarks Commission and criteria for designating local landmarks. Once a property has been designated a City of Santa Monica Landmark, the Commission reviews permits for alteration, relocation, or demolition and issues certificates of appropriateness for any such changes. As a city landmark, the Santa Monica City Hall is subject to this review process upon the proposal of any alterations. The City s criteria for a certificate of appropriateness under the Landmark ordinance include the following. • "In the case of any proposed alteration, restoration, removal or relocation, in whole or in part, of or to a Landmark or to a Landmark Parcel, the proposed work would not detrimentally change, destroy or adversely affect any exterior feature of the Landmark or Landmark Parcel upon which such work is to be done." • "In the case of any proposed construction of a new improvement upon a Landmark Parcel, the exterior features of such new improvement would not adversely affect and not be disharmonious with the exterior features of other existing improvements situated upon such Landmark Parcel," • '7n the case of any proposed alteration, restoration, removal or relocation, in whole or in part, to interior public space incorporated in a Landmark designation pursuant to Section 9.36.1 10, the proposed work would not detrimentally change, destroy or adversely affect any interior feature of the Landmark structure." • "The Secretary of Interiors Standards shall be used by the Landmarks Commission in evaluating any proposed alteration, restoration, or construction, in whole or in part, of or to a Landmark, Landmark Parcel, or to a Contributing Building or Structure within a Historic District" PROJECT SITE & PROJECT CONCEPT HISTORIC ASSESSMENT Santa Monica City Services Building Phase I Feasibility Study HISTORIC RESOURCES GROUP 12 S. Fair Oaks Avenue, Suite 200, Pasadena, CA 91105 -1915 Telephone 626 793 2400, Facsimile 626 793 2401 historiclaxom level of CEQA review is an Environmental Impact Report (EIR), then it is generally considered that impacts to historic resources are less than significant when the property retains its eligibility as a historic resource (e.g., City Landmark, California Register, and National Register). CONSOLIDATION OF OWNER'S MANDATORY REQUIREMENTS & FRED FISHER PARTNERS ARCHITECTS EXISTING FACILITIES ANALYSIS TASKS FOR FRIG: 1. The proposed alterations to City Hall will be designed so that the building retains eligibility for listing in the National Register of Historic Places 2. The proposed alterations to City Hall will meet the Secretary of the Interior's Standards for Rehabilitation 3. The proposed additions to City Hall will follow the recommendations of Preservation Brief Number 14, New Exterior Additions to Historic Buildings: Preservation Concerns 4. Study the demolition and removal or incorporation of the historic fire station vehicle bay into a building addition on the east (rear) side of the extant structure 5. Create an addition that is designed to be compatible with the historic City Hall 6. Outline the project issues with respect to potential benefits and impacts 7. The project budget will keep in mind that: where new work intersects historic finishes, the replacement; repair and /or preservation of the historic finishes has priority; historic finishes shall be protected during construction; identify historic finishes or other elements; and materials used for repair of existing finishes should meet or exceed the same quality as the existing finishes. BUILDING AND PROJECT DESCRIPTIONS We understand that the basic project intent is to construct a multi -story addition that is a long bar shape that closes the open, east (rear) side of the existing City Hall courtyard. The addition would provide 40,000 square feet of new office space to consolidate city services into a "one stop' city hall complex. We have adequate information at this stage to discuss broad directions and guidelines, and potential impacts measured against historic preservation criteria that are given by the owner and regulatory environment. As the project planning and design proceeds, the project description and historic assessment will proceed in an iterative process. PROJECT SITE & PROJECT CONCEPT HISTORIC ASSESSMENT Santa Monica City Services Building Phase I Feasibility Study HISTORIC RESOURCES GROUP n S. Fair Oaks Avenue, Suite zoo, Pasadena, CA 91105 -1915 Telephone 626 793 2400, Facsimile 626 793 2401 historiclaxom Service defines seven aspects of integrity: location, design, setting, materials, workmanship, feeling, and association. These qualities are defined as follows: • Location is the place where the historic property was constructed or the place where the historic event occurred. • Design is the combination of elements that create the form, plan, space, structure, and style of a property. • Setting is the physical environment of a historic property. • Materials are the physical elements that were combined or deposited during a particular period of time and in a particular pattern or configuration to form a historic property. • Workmanship is the physical evidence of the crafts of a particular culture or people during any given period in history or prehistory. • Feelingis a property's expression of the aesthetic or historic sense of a particular period of time. • Association is the direct link between an important historic event or person and a historic property.' If the original fire station apparatus room were demolished and a low -rise addition were made on the east side, the City Hall would remain on its original site and therefore would retain integrity of location. It would retain most of its essential original form, architecture, materials, finishes, and features, and therefore would retain integrity of design, materials, and workmanship. Because of this, the City Hall would still be visually identifiable as a civic building, in its current setting in a civic center, and would retain its important association with the government of Santa Monica; it would therefore retain integrity of feelingand association. The integrity of settingis retained, as the yards and elevations that are most visible and used by the public are not changed; the rear area of the addition is spaced closely to a new structure to the east and is in an area occupied for decades by the 1955 police department addition. 2 National Register Bulletin 15. How to Apply the National Register 0kena for Evaluation. Washington D.C.: National Park Service, U.S. Department of Interior, 1995. PROJECT SITE & PROJECT CONCEPT HISTORIC ASSESSMENT Santa Monica City Services Building Phase 1 Feasibility Study HISTORIC RESOURCES GROUP 12 S. Fair Oaks Avenue, Suite zoo, Pasadena, CA 91105 -1915 Telephone 626 993 2400, Facsimile 626 793 2401 historicla.com Provided that an addition to the project can be visually distinguished from the original building by most observers, the project can meet Standard 3, Standard 4: Changes to a property that have acquired historic significance in their own right will be retained and preserved No removals of later additions are proposed. The project can meet Standard 4. Standard S. Distinctive materials, features, finishes, and construction techniques or examples of craftsmanship that characterize a property will be preserved. Features such as murals, decorative glazed tile, wood paneling, and poured -in -place concrete would be largely retained and preserved. The project can meet Standard S. Standard 6: Deteriorated historic features will be repaired rather than replaced Where the severity of deterioration requires replacement of distinctive feature, the new feature will match the old in design, color, texture, and where possible, materials. Replacement of missing features will be substantiated by documentary and physical evidence. There does not appear to be any need for replacement, and appropriate methods can be used for repairs where needed. The project can meet Standard 6. Standard 7• Chemical and physical treatments, if appropriate, will be undertaken using the gentlest means possible. Treatments that cause damage to historic materials will not be used. If such treatments are undertaken, they can be specified so as to not cause damage to historic materials. The project can meet Standard 7. Standard 8: Archeological resources will be protected and preserved in place. If such resources must be disturbed, mitigation measures will be undertaken. it is not expected that archeological resources will be found on the Project site because the area of potential construction has been repeatedly disturbed and may have already been documented. Appropriate mitigation measures should be adopted for any proposed work. The project can meet Standard 8. 3. The proposed additions to City Hall will follow the recommendations of Preservation Brief Number 14, New ExteriorAd&dons to Historic Buildings: Preservation Concerns PROJECT SITE& PROJECT CONCEPT HISTORIC ASSESSMENT Santa Monica City Services Building Phase 1 Feasibility Study HISTORIC RESOURCES GROUP 12 S. Fair Oaks Avenue, Suite 200, Pasadena, CA 9uo5 -1915 Telephone 626 993 2400, Facsimile 626 793 2401 historiclaxom Secretary of the Interior's Guidelines for Rehabilitating Historic Buildings 3 Alterations /Additions for the New Use The construction of an exterior addition on a historic building may seem to be essential for the new use, but it is emphasized in the Rehabilitation guidelines that such new additions should be avoided, ifpossible, and considered only after it is determined that those needs cannot be met by altering secondary, i.e., non - character - defining interior spaces. If, after a thorough evaluation of interior solutions, an exterior addition is still judged to be the only viable alternative, it should be designed and constructed to be clearly differentiated from the historic building and so that the character - defining features are not radically changed, obscured, damaged, or destroyed The proposed addition accommodates new uses and functions, and can be designed to be differentiated and compatible. Building Site Recommended. Identifying, retaining and preserving buildings and their features as well as features of the site that are important in defining its overall historic character. Retaining the historic relationship between buildings and the landscape. The project retains the relationship between the existing building and its relationship to the street and district. The project conforms to the guideline. Designing new onsite parking loading docks, or ramps when required by the new use so that they are as unobtrusive as possible and assure the preservation of the historic relationship between the building or buildings and the landscape. Any new onsite parking and docks can be located so as to be unobtrusive. Designing new exterior additions to historic buildings or adjacent new construction which is compatible with the historic character of the site and which preserves the historic relationship between the building or buildings and the landscape. An addition to the historic building on the east side would not change the relationship to the existing landscape at the north, south, and west. The proposed design conforms. 3 [bid., pp. 63 -115. PROJECT SITE & PROJECT CONCEPT HISTORIC ASSESSMENT Santa Monica Services Building Phase Feasibili Study Ity HISTORIC RESOURCES GROUP 12 S. Fair Oaks Avenue, Suite 20o, Pasadena, CA 91105 -1915 Telephone 626 993 2400, Facsimile 626 793 2401 historicla.com 11 Setting (District /Neighborhood) Recommended' Retaining the historic relationship between buildings and landscape features of the setting For example, preserving the relationship between a town common and its adjacent historic houses, municipal buildings, historic roads, and landscape features. Alterations /Additions for the New Use Designing and constructing new additions to historic buildings when required by the new use. New work should be compatible with the historic character of the setting in terms of size, scale design, material, color and texture. Refer to the comments above. Not recommended' Removing or radically changing those features of the setting which are important in defining the historic character. Refer to the comments above. Destroying the relationship between the buildings and landscape features within the setting by widening existing streets, changing landscape materials, or constructing inappropriately located new streets or parking No streets are widened; no significant landscape materials are changed, and no new streets are proposed. The project can conform to the guideline. Introducing a new building or landscape feature that is out of scale or otherwise inappropriate to the setting's historic character, eg, replacing picket fencing with chain link fencing Refer to the comments above. The project can conform to the guideline. Introducing new construction into historic districts that is visually incompatible or that destroys historic relationships within the setting Does not apply. Preservation Brief 14 In addition to the Standards and Guidelines for Rehabilitation, the National Park Service publishes a series of briefs that includes Preservation Brief 14, New Exterior Additions to PROJECT SITE & PROJECT CONCEPT HISTORIC ASSESSMENT Santa • Services } • Phase Feasibility HISTORIC RESOURCES GROUP 12 S. Fair Oaks Avenue, Suite Zoo, Pasadena, CA 9uo5 -1915 Telephone 626 793 2400, Facsimile 626 793 2401 historicia.com 13 Potential benefits. a. Comprehensive preservation plan for the retention and treatment of remaining character - defining spaces and features b. Removal of non - significant and incompatible additions to the building c. Sustainability through continued use and operation of an existing building and its infrastructure, rather than replacement and /or relocation (ideally through life -cycle metrics to provide comprehensive comparisons between the use of embodied energy /carbon, operating use, maintenance, and cyclical rehabilitation, versus the same parameters for new replacement construction). Potential impacts: a. Loss of historic fabric by demolition of historic fire station apparatus room b. Change of visual character of the historic City Hall building caused by an incompatible addition 7. The project budget will keep in mind that: where new work intersects historic finishes, the replacement; repair and /or preservation of the historic finishes has priority; historic finishes shall be protected during construction; identify historic finishes or other elements; and materials used for repair of existing finishes should meet or exceed the same quality as the existing finishes. Assist FFP in identifying significant materials and finishes, and providing model specifications and /or referrals for protection and treatment. PROJECT SITE & PROJECT CONCEPT HISTORIC ASSESSMENT r , M141 !' HISTORIC RESOURCES GROUP 12 S. Fair Oaks Avenue, Suite 200, Pasadena, CA 9no5 -s915 Telephone 626 793 2400, Facsimile 626 793 2401 historiclaxom 15 V) �n J Q Z Q Z V) V) Q U w 0 CL n C- a) E U Q MQ W F— z 5W IL.L �� V W LU N O J U z W N u, LLI V) i �i �i �i E! N ! � I cl ^+ � I a 0 j d C: . 0 cI c CDLL! h 0 LO L W I 0 � I x w J L 0 U J J Q H I u F- LU LU ry F- V) Z SQ SL L O ry LL O rV r OL Q 0 0 N C N C_ O E O L U O O O CL Q Attachment E - Composting Toilets Standard low flow toilets require 1.28 gallons of water per flush and are the primary driver of water usage in commercial buildings. Due to advancements in technology many facility owners around the world are considering commercial -scale composting toilets. Internationally, there are real -world applications of compost toilets in commercial office buildings, a university and several environmental non - profit buildings. The Codes The Green Plumbing & Mechanical Code Supplement ( GPMCS) to the 2015 Uniform Plumbing Code (UPC) includes the approved use of composting toilets. Typically, information published in the GPMCS is integrated in the next adopted code. Staff anticipates that composting toilets will be allowed by the Uniform Plumbing Code by 2018. If approved to move forward, the City Services Building would go into service in 2019. Staff is working with the LA County Health Department to help ensure that composting toilets will be allowable by the time the building would be constructed. Benchmark Precedent The project team visited the Bullitt Center in Seattle, a building that has been using foam -flush composting toilets for almost two years. The Bullitt Center is a 50,000 square foot, 6 story office building that is considered one of the most sustainable buildings ever built. The International Living Future Institute (ILFI) is one of its most notable tenants. The project team inspected the composting toilets at the center and discussed implementation with King County and State Department of Health regulators, Seattle planners, the project managers and maintenance staff responsible for keeping the toilets operational. Bullitt Center staff and occupants fully endorse the use of composting toilets as an acceptable water savings technology for use in a city building. Each toilet is negatively pressured at all times; air is directly ventilated through the composters and then exhausted out of the building. Occupants cite that the bathrooms with compost toilets are more pleasant due to fewer odors than standard toilet rooms. For more information on the Bullitt Center: http: /Iwww.bullittcenter.org /. Composting Toilet Details The composting toilet technology implemented successfully in the Bullitt Center and proposed for use in the City Services Building is a foam -flush toilet that only uses 3 tablespoons of water per flush. The foam -flush technology mixes 3 tablespoons of water with Neponol, a foaming biodegradable alcoholic surfactant, to provide sanitation and the lubrication necessary to carry waste down vertical chutes that replace conventional pipes. The waste is collected in composters located in the basement of the structure. The composters are designed for passive aerobic digestion (a process performed by microorganisms under the influence of oxygen) with assistance from vermicomposting, or composting with worms. Aerobic conditions are introduced with minimal manual maintenance. Each unit requires churning (or mixing) once a week with an easy -to -use external lever to supply oxygen. Additionally, — 1 gallon of bulking agent (wood chips or sawdust) must be added per 100 flushes to maintain the necessary chemical balance. In approximately 18 months, solid waste will be converted to compost. The maintenance staff arranges for a permitted hauler to pick up the compost and deliver to a biosolids recycling facility. Testing requirements for the biosolid by- product would be coordinated with the Los Angeles County Health Department. Subsequent to Health Department verification, the compost will be available for mulching and distribution. More information and a demonstration of foam -flush toilets can be found on YouTube — Neptune Foam Flush Toilet: httns: / /www,voutube.com /watch ?v= ofFpVddwfO4. Proposed Project Approach For the proposed City Services Building, the water budget is 34,000 gallons of water required per month. With the proposed use of composting toilets, the water required reduces to 15,000 gallons per month. (This represents a water savings of 19,000 gallons per month or 228,000 gallons of water per year.) The project team has calculated that the needed remaining 15,000 gallons per month could be supplied from a combination of captured rainwater, graywater and groundwater well in order to produce a net -zero water building. The proposed City Services Building would serve as a regional model of sustainability. Attachment F �. 2mw= Copyright 0 1976 - 2015 Buroldappold Engineering. All Rights Reserved. Revision Description Attachment F BUROHAPPOLD ENGINEERING Issued by Date Checked 02 Concept report Gideon 05/01/2015 Julian Parsley Susman This report has been prepared for the sole benefit, use and information of City of Santa Monica for the purposes set out in the report or instructions commissioning it. The liability of BuroHappold Consulting Engineers Inc. in respect of the information contained in the report will not extend to any third party. author Gideon Susman date 05/01/2015 approved Julian Parsley date 05/01/2015 Santa Monica City Services Building Revision 02 Concept Report 5 January 2015 Copyright 0 1976 - 2015 BuroHappold Engineering. All Rights Reserved. Page 3 Attachment F BUROHAPPOLD ENGINEERING This report details the sustainability strategies that will allow the building to achieve one of three possible aims (in order of difficulty to achieve): 1. Living Building Challenge (LBC) full certification (aspirational goal) 2. Leadership in Energy and Environmental Design (LEED) version 4 Platinum certification 3. LEED version 4 Gold certification (minimum goal) As the content of this report outlines, these three goals are all technically possible, but the certification that the project team will ultimately pursue depends on the financial resources available to the project. Pairing the information in this report with the cost information, the team can more realistically narrow the sustainability goal of the project to what best suits the aspirations of the City of Santa Monica. This report and the sustainability matrix and LEED scorecards in the appendix set out the roadmap to achieving each of these three sustainability project targets. Finally, this report specifically assesses the (non - financial) feasibility of the Owner's Project Requirements (OPR) for sustainability. 1.1 Feasibility of Living Building Challenge Full Certification The Living Building Challenge is the highest recognized standard of accreditation for sustainable buildings. Of the 20 Imperatives required to meet full certification, those pertaining to energy, water and materials present particular challenges for this project. However, with advanced water and energy systems design and diligent selection of materials, these challenges can be met. 1.1.1 Materials Selection of materials will require dedicated collaboration between the design team, suppliers and sub - contractors in order to select only materials that meet the stringent LBC requirements. If LBC is pursued this will become a prominent on -going feature of the design process and will necessarily drive the selection of all products, materials and finishes. The following must be incorporated into the design to comply: • Eliminating all materials listed in the Red List • Purchase of a one -time carbon offset tied to the project construction • Processing main project materials within 310 miles of project site • 100% FSC certified wood with no formaldehyde and within appropriate distance • Appropriate resourcing of materials within the designated radii (refer to section 7 for diagrams depicting radii) • Development of a Material and Conservation Management Plan Santa Monica City Services Building Revision 02 Concept Report 5January 2015 Copyright 0 1976 - 2015 BuroHappold Engineering. All Rights Reserved. Page 5 Attachment F BUROIJAPPOLD ENGINEERING Lighting: Daylighting • Solar film or light shelves • Daylight sensors and controls Efficient lighting design • LED fixtures • Task lights • Occupancy sensors and controls Mechanical design: • Low energy heating and cooling • Exposed ceiling slab with embedded PEX water piping in open plan office areas, private offices, and public access areas • Ceiling- mounted radiant heating and cooling panels in meeting rooms • Dedicated outdoor air supply The graph below displays baseline and proposed annual energy performance. The proposed building model's performance indicates that a net zero energy building is technically feasible. 45.0 40.0 35.0 LL 30.0 a 25.0 Y m 20.0 5 15.0 10.0 5.0 0.0 Baseline (Code Proposed (LBC, NZE compliant) compliant) , IT and communications M Water treatment 1, Kitchen H Service hot water rm Elevators M Exterior lighting FA Lighting ® Office equipment N Fans ® Heating ® Cooling Net Zero Energy is an alternative certification path offered by ILFI and can be pursued independently of LBC accreditation. This path certifies that on annual basis, the CSB is a net zero energy (or better) building and does not rely on combustion to produce its energy. Additionally, Imperative 01: Limits to Growth, Imperative 18: Rights to Nature, Imperative 19: Beauty and Spirit, and Imperative 20: Inspiration and Education must be achieved. If the project meets the energy petal and these imperative, as outlined above, it will be a Net Zero Energy certified project. Santa Monica City Services Building Revision 02 Concept Report 5January 2015 Copyright 0 1976 - 2015 BuroHappold Engineering. All Rights Reserved. Page 7 Attachment F BUROHAPPOLD ENGINEERING • Imperative 20: Inspiration + Education 1.2 Feasibility of LEED version 4 Platinum and Gold certification Leadership in Energy and Environmental Design (LEED) is a cohort of rating systems developed by the US. Green Building Council (USGBC). In the LEED New Construction version 4 rating system there are 110 possible points distributed across eight credit categories: Location and transportation, sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, innovation in design, and regional priority. In order to achieve Gold or Platinum LEED certification, an energy use intensity (EUI) rating of 35 kBtu /SF should be targeted, this is considered an aggressive but realistic target that could be achieved with a number of different mechanical system approaches. To achieve LEED platinum, it is currently assumed PV would need to generate between 30 to 38% of the building energy cost. If renewables are less aggressively pursued as part of a private purchase agreement by the City, it will be necessary to more aggressively pursue materials credits or to achieve a higher level of performance from the building systems. See both LEED Gold and LEED Platinum project scorecards in the Appendix to understand the calculus of reaching these goals for the project. 1.3 Recommendations There is a significant gap, in terms of sustainable design measures required, between achieving LEED platinum and achieving LBC compliance. If LBC certification, net zero energy (NZE) or water independence are not pursued, specific elements are recommended to be retained or implemented as part of the design, due to their relatively high savings impact and relatively low capital cost. Low energy design elements recommended to be retained if NZE not pursued: • Natural ventilation, with elements maintained as operable within open plan areas and the use of night flush for pre- cooling • Optimized glazing area and location, with strategies maintained to limit peak loads • Exposed thermal mass: Concrete ceiling and floor, where practicable, and possible strategic use of phase change material • Low U- factor fa4ade • Relaxed cooling set point to extend the operation of natural ventilation • Light redirecting films to optimize day light use and improve the quality of light within the space As well as these measures, low energy workstations, as described by the client, should be pursued for the double benefit of reduced electricity and cooling load. LBC strategies recommended to be further studied as the project is pursued include: • If full certification is not pursued, the design team could still look to many concepts for inspiration, particularly in the Site, Health, Equity categories and consider • Where possible, select and specify materials from the declare program and look to responsibly source materials Water elements recommended to be retained or further studied if water independence is not pursued: Santa Monica City Services Building Revision 02 Concept Report 5 January 2015 Copyright 0 1976 - 2015 BuroHappold Engineering. All Rights Reserved. Page 9 Attachment F Gideon Susman BuroHappold Consulting Engineers Inc. 800 Wilshire Boulevard 16th floor Los Angeles, CA 90017 USA P. +1310 945 4800 F: +1310 558 9697 Email: gideon.susman @burohappold.com