HomeMy WebLinkAboutMinutes - October 15, 2002 SSCITY OF LODI
INFORMAL INFORMATIONAL MEETING
"SHIRTSLEEVE" SESSION
CARNEGIE FORUM, 305 WEST PINE STREET
TUESDAY, OCTOBER 15, 2002
An Informal Informational Meeting ("Shirtsleeve" Session) of the Lodi City Council was held Tuesday,
October 15, 2002 commencing at 7:02 a.m.
A. ROLL CALL
Present: Council Members — Hitchcock, Howard, Land, Nakanishi (arrived at 7:05), and
Mayor Pennino
Absent: Council Members — None
Also Present: City Manager Flynn, City Attorney Hays, and City Clerk Blackston
B. CITY COUNCIL CALENDAR UPDATE
City Clerk Blackston reviewed the weekly calendar (filed).
C. TOPIC(S)
C-1 "Office Space Needs"
City Manager Flynn introduced the topic explaining that it is driven by the following issues:
➢ The new police station is being constructed;
➢ The old public safety building will be renovated and utilized for staff;
➢ The original lease on the annex building, in which the Finance Department operates,
expired in August 2002 and the City is currently utilizing the building on a month to
month lease basis;
➢ A number of health related complaints h ave been expressed by employees of the
Finance Department, for which they attribute to environmental conditions of the annex
building.
Public Works Director Prima recalled that Council previously directed staff to make
arrangements to move Finance out of the annex building by spring 2003. He reported
that the new police building should be completed by early 2004. It is planned that Fire
Administration, Fire Station #1, Public Works, and Community Development will move to
the old public safety building when the remodel has been completed in 2005-06. At that
time City Hall would house the Finance Department, Human Resources, and
Administration (i.e. the offices of the City Manager, City Attorney, and City Clerk).
Mr. Prima stated that it is staffs goal not to have employee workstations in the basement
of City Hall, and to that end, conference rooms, storage, and work rooms are planned for
the area. The Information Systems Division would be moved to the Carnegie Forum
basement. He stated that the County is currently considering the cost of having the court
operate in the 6,000 square feet of space, which will be available on the west side of the
second floor of the new police building. The former Sak's building adjacent to the annex
has been leased by Envision Law Group for the public document repository related to the
PCEITCE investigation. The lease expires next year. There is additional space in the
building, which would allow for six work stations.
Mr. Prima outlined six scenarios for the City's space needs as follows:
1. Move the Finance and Human Resources Departments to retail office space at the
parking structure, Information Systems to the old Sak's building, and Community
Development w ould a xpand i nto the vacated Human Resources office area in City
Hall. He estimated the cost to add walls and a portable air conditioning unit to the
Sak's building at $75,000. A concrete floor and bathrooms would need to be installed
at the retail office space in the parking structure.
1
Continued October 15, 2002
2. Similar to scenario one, except Human Resources would be moved to trailers on the
Civic Center campus.
3. Move the Finance Department into City Hall and relocate the Departments of Public
Works and Community Development to retail office space at the parking structure.
The copy and break rooms at City Hall would be moved to the basement and the
vacant space used by Human Resources for an interview room and additional work
space.
4. Move the Departments of Public Works and Community Development into temporary
quarters off site and bring Finance and Information Systems into City Hall. He
estimated the cost to accommodate this scenario at $400,000. Possible off site
locations include Lockeford Street between Stockton and Washington Streets; Roget
Park; Hutchins Street Square; industrial property where the proposed new Electric
Utility building is planned to be built; or the Fairmont Science building, which offers
office space for lease at $1.05 per square foot.
5. Move the Finance Department into City Hall and move Public Works Administration
and Community Development into the annex building.
6. Clean the vents, attic, and office space area of the annex building to allay the
concerns expressed by Finance Department staff.
Mr. Prima stated that an earlier suggestion to house the Finance Department in mobile
offices in the Civic Center campus would impact the Veterans Plaza area and make the
parking situation worse. He acknowledged that the 6,000 square feet of lease space in
the new police building would accommodate the Finance Department; however, Mr. Prima
indicated that a commitment had already been made to the County.
Council Member Land preferred that the 7,400 square feet of space at the north end of
the parking structure be left open for lease.
Mayor Pro Tempore Hitchcock stated that the simplest thing to do would be to move
Finance to a portable setting until the new police building is complete and old public safety
building is remodeled.
Mr. Prima explained that the amount of room required to house the Finance Department
in trailers would occupy all of the space behind the Carnegie Forum or take up an entire
parking lot on the Civic Center campus. In addition the lease payments for trailers over a
three- or four-year period would be as high as purchasing them and the cost for decking
and utilities would be significant.
Council Member Nakanishi believed that the retail office space at the parking structure
would be a good long-term location for the Finance Department due to the inexpensive
cost to the City, ease of access, and availability of parking.
Mayor Pennino advocated the permanent location of the Finance Department on the first
floor of City Hall.
In reference to scenario six, Mr. Prima stated that based on testing that has been done to
date, staff believes that modifications to the HVAC system, as well as attic, air ducts, and
office cleaning, can deal with the issues adequately. He estimated the cost at $10,000.
City Attorney Hays explained that Proposition 65 has a low threshold reporting
requirement, whereas the Occupational Safety and Health Administration has a high
industrial standard. The California Department of Toxic Substances Control is trying to
arrive at some standard that is between the two. He anticipated that a decision would be
made in the next three months.
City Manager Flynn commented that the least expensive alternative is to clean areas of
the annex building and not relocate departments. The second least costly alternative
would be to switch locations of the Finance Department with Public Works Administration
2
Continued October 15, 2002
and Community Development; however, he noted that there have been requests by some
employees that the City have environmental studies done on the City Hall building as well.
Council Member Howard stated that it is not good planning to locate departments in the
annex building due to the instability of a month to month lease.
Mayor Pro Tempore Hitchcock stated that if there are health issues caused by the
environmental conditions in the annex then it should not be considered as an adequate
location for any departments to work in. If cleaning it is a solution, then it should have
already been done. If the Finance Department must relocate, the retail office space at the
parking structure is a good location due to its accessibility and ease of parking. She did
not see the necessity for moving other departments until the new police station is
completed and the old public safety building is remodeled. If the 6,000 square feet of
lease space at the new police building is needed for City departments, it should be used
for that purpose rather than leasing it to the County.
Mayor Pennino concurred that the lease space in the new police building should be used
for City departments if needed.
Mr. Prima reviewed the Cost Summary (filed).
Mayor Pro Tempore Hitchcock commented that she had initially thought today's
Shirtsleeve Session would be on the topic of the General Fund and revenue concerns.
City Manager Flynn replied that discussion about the General Fund is tentatively
scheduled for next Tuesday. Due to changes i n t he a conomy t here i s c oncern a bout
sales tax revenue, and additionally there may be State reductions next year. He recalled
that under similar circumstances ten years ago the City lost $1.2 million in one year and
$1.5 million in another. The Lowe's shopping center has been delayed at least one year.
Increased costs are associated with adding paramedics to the Fire Department. Medical
insurance costs are expected to increase 26% this year and PERS will be increasing next
year. Requests have recently been received by the City from the Downtown Lodi
Business Partnership for an additional $30,000; Lodi Adopt -A -Child for a $100,000 loan;
the Salvation Army for $50,000; and an additional $2,000 for the annual New Years Eve
event. Currently the City is negotiating with two of the bargaining groups regarding
compensation. In summary, he stated that there is a great deal of uncertainty in the
future. According to figures he has been given, the General Fund is in a downward trend.
A major concern is with Electric Utility. Eighteen months ago the Utility had $25 million in
cash reserves and now it has $2 million, due to increased power costs.
In answer to Mayor Pennino, as an option to not relocate departments, Mr. Prima reported
that cleaning the annex building attic and air ducts would cost less than $6,000. The cost
to utilize space at the old Sak's building is $12,000, and modifications needed at City Hall
are anticipated to cost $40,000.
Mr. Flynn added that the employees of the Finance Department have stated that there is
dust build up in the annex building and have asked that it be cleaned.
PUBLIC COMMENTS:
Nancy Schmer, Finance Department Field Services Supervisor, asked Council to
implement scenario one, or scenario two as a second option. She believed either of
them to be the most time efficient in moving the Finance Department employees out
of the annex building. She stated that the health concerns of the employees should
be the focus, and the space needs of other departments should not be considered as
part of the discussion on this matter. In reference to scenario six, Ms. Schmer asked
that if the cleaning of the annex building is to be pursued, that it be done either on a
weekend or during non -working hours. She reported that according to her count
there are 29 staff members currently working on the first floor of City Hall. In the
annex building (excluding IS staff) there are 35 employees. She questioned the logic
Continued October 15, 2002
of moving 35 employees into a space that 29 people are now complaining is too small
to work in.
In reply to Mayor Pro Tempore Hitchcock, Ms. Schmer stated that she is open to the
idea of cleaning the annex building as a possible solution. She reported that eight
years ago it was known that pigeon droppings were in the attic space. In addition, a
number of years ago results from a study indicated that there was suspect growth on
the back wall and that ceiling tiles damaged from water should be removed. These
issues have never been resolved.
Finance Director McAthie objected to the intimation by others that the employees of the
Finance Department are excessively and baselessly complaining about conditions of the
annex building, which appeared to be evident by the offer to trade spaces with other
departments. Ailments such as asthma can be exacerbated by certain building
conditions. She concurred with Ms. Schmer that any attempts to clean the building
should be done after hours. She favored locating the Finance Department in the retail
office space at the parking structure, noting that inadequate parking space has been a
problem at their current location and was when the Department was located in City Hall.
Her main concern was to do something to alleviate some of the symptoms that staff has,
so that they can get back to concentrating on their work instead of health issues.
Council Member Howard emphasized the importance of considering where final
placements of departments are planned and to make relocation suggestions based on
those long-term placements.
Council Member Land was opposed to moving the Finance Department twice. Based on
the financial concerns of the City he favored leaving departments in their current locations
until the new police building is constructed and the old public safety building has been
remodeled. He preferred scenario six as an interim solution.
Mayor Pennino surmised that the number of customers going to the Finance Department
would decrease over time with the use of Internet banking techniques, and consequently
he did not believe parking would be an issue if Finance were located in City Hall.
D. COMMENTS BY THE PUBLIC ON NON -AGENDA ITEMS
None.
E. ADJOURNMENT
No action was taken by the City Council. The meeting was adjourned at 8:17 a.m.
ATTEST:
Susan J. Blackston
City Clerk
4
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WEEK OF OCTOBER 15, 2002
Tuesday, October 15, 2002
Reminder Shirtsleeve Session
1. Office Space Needs (PW)
6:30 p.m. Pennino. Lodi Business and Professional Women's
Organization Annual dinner, Richmaid Restaurant,
100 South Cherokee Lane, Lodi. Mayor to present presentation.
Wednesday, October 16, 2002
8:00 a.m. Ambassadors Committee Meeting, Lodi Chamber of
Commerce Conference room.
11:00 - 12:00 noon Land. Concilio's Lodi Coalition Meeting, Salem Methodist
Church, 345 East Elm Street, Lodi. Keith Land will speak at
11:10 - 11:35 a.m.
7:00 p.m. Regular Council Meeting
(Closed Session at 6:15 p.m.)
Thursday, October 17, 2002
5:30 p.m. Pennino and Land. "Leaving and Coming Home" the
Sandhill Crane dedication ceremony at the Lodi Multi -
Modal Station, corner of Pine and Sacramento Streets,
Downtown Lodi. Mayor Pennino will be speaking.
Friday, October 18, 2002
11:45 -1:30 p.m. Pennino, Howard, and Land. State of the City Address and
Luncheon, Hutchins Street Square - Crete Hall, Lodi.
Saturday, October 19, 2002
Sunday, October 20, 2002
Monday, October 21, 2002
9:00 a.m. Land. Lodi Unified School District Groundbreaking
Ceremony for the New Elementary School in Southeast Lodi
on Culbertson Street and Blue Way, Lodi.
6:30 p.m. San Joaquin Regional Rail Commission Groundbreaking,
Southern Pacific Railroad, 949 East Channel Street,
Downtown Stockton,
Disclaimer. This calendar contains only information that was provided to the City Clerk's office
councii\mis6mcalndr.doc
CITY OF LODI COUNCIL COMMUNICATION
AGENDA TITLE: Office Space
MEETING DATE: October 15, 2002 (Shirtsleeve Session)
PREPARED BY: Public Works Director
RECOMMENDED ACTION: None
BACKGROUND INFORMATION: The Finance Department has been located in leased space in the
City Hall Annex, 212 West Pine Street (The Beckman Building), for
approximately eight years. The lease expired on August 31, 2002.
The owners of the building, Beckman Investment Securities, have
been working with the City on a new month-to-month rental arrangement
Given the issues surrounding air -borne PCE/TCE contamination relating to this facility, staff was directed
by the City Council last Spring to develop alternatives for moving the Finance Department to other office
space. This work has been done in conjunction with current planning studies for the remodel of the old
Public Safety Building once the Police Department moves to their new building in early 2004.
The attached presentation handouts will be presented at the Shirtsleeve Session in more detail.
Staff will be seeking Council direction on what, if any, additional information will be needed to make a
decision at one of the November Council meetings, in order to plan and implement moves by
Spring 2003.
FUNDING: None at this time.
RCP/DJC/pmf
Attachment
cc: Randy Hays, City Attorney
Vicky McAthie, Finance Director
Rad Bartlam, Community Development Director
Mike Pretz, Fire Chief
Gary Wiman, Construction Project Manager
Larry Wenell, WMB
APPROVED:
CCOfficeSpace
Richard C. Prima, Jr.
Public Works Director
Susan Blackston, City Clerk
Joanne Narloch, Human Resources Director
Jerry Adams, Police Chief
Steve Mann, Information Systems Manager
Dennis Callahan, Fleet and Facilities Manager
H. Dixon Flynn -- City Manager
Civic Center Space
Planning
Interim Relocations Pending Public Safety Building Remodel
City Council Shirtsleeve Presentation — October 15, 2002
Decisions/Assumptions to Date
o Council Directed that Finance Dept. vacate Annex by
Spring 2003.
0 New Police Bldg. to House Police Dept. in 2004
p Information Systems to occupy Carnegie Forum
basement following Police move to new building (2004).
8 Fire Station Administration, Station 1, Public Works and
Community Development to occupy old PSB in 2005/06
following remodel.
0 City Administration, Finance and Human Resources to
occupy City Hall (2005/06).
0 Police Bldg. includes 6,370 SF open space on second
floor for lease; future Police use after 30+/- years.
v
City Hall Space Current Issues
❑ Inadequate space for current Community
Development Dept. staff.
❑ Inadequate space for current Human
Resources Dept. staff.
❑ Inadequate space for growth in other
Departments.
❑ Goal to move full-time office staff from
basement.
Other Constraints & Issues
❑ Parking — for both public and employees.
❑ Concern over vibration adjacent to RR tracks
on AS/400 disk array (IS).
❑ Prefer to avoid moving computers twice (IS).
❑ Adjacency/interaction among City Depts.
❑ City has planned to use portion of old Saks
Building for interim staff needs
2
Disclaimers ! !
❑ Given the rough level of the planning for the scenarios, cost
estimates are preliminary and need to be refined. However,
they should be adequate for comparison purposes.
❑ Potential lease terms may also affect costs or feasibility of the
scenarios.
❑ Space layouts are also preliminary and are done to enough
detail only to determine feasibility. They will need to be
refined as we work with the individual departments.
❑ Scenario numbers are for identification only, they do not
indicate any suggested priority.
Interim Space Scenarios
i) Finance & HR to Parking Structure, IS to old Saks
Building, CDD expands to HR area in City Hall.
2) Finance to Parking Structure, HR to mobile office,
IS to old Saks Building, CDD expands to HR area.
3) CDD & Public Works to Parking Structure, IS to
old Saks Building, Finance to City Hall, City Hall
modifications to allow HR expansion.
a) CDD & Public Works to offsite mobile office,
Finance & IS to City Hall, HR expansion per 3).
s) Finance to City Hall, CDD & Public Works Admin
to Annex, HR expansion per 3).
3
Other Scenarios Not Developed
0 Rent finished office space
• Insufficient space Downtown
Costs would vary depending on location/state of building
Generally problematic for public/city staff
If Scenario 4) is preferred, we should reconsider this possibility
0 Mobile offices within Civic Center
Severe parking impacts
Previously dismissed by City Council
0 Lease space in Police Building
No parking improvement
Cost for TI's approximately $390,000
Space identified for San Joaquin County
Space could accommodate Finance Dept. only
cenario Details - 1) Nin. & HK to
Parking Structure, IS to Saks Bldg.
D Saks Bldg. — currently leased for PCE/TCE Public
Document archive. Lease would need to be
extended.
❑ Small portion planned for some City staff.
0 Unused storage space could be converted for IS with
some additional walls, electrical & data line work.
0 Costs include:
$75,000 for tenant improvements
$36,000 for lease (assumed 18 months)
4
Scenario Details - 1) Fin. & HR to
Parking Str., IS to Saks Bldg. (cont'd)
0 Parking Str. — planned for lease to private developer.
p Finance & HR would need 7,400 SF at north end
(leaves 2,725 SF for lease).
p Helps solve Civic Center parking and loss of Annex
parking lot on Oak.
0 Costs include:
• $452,000 for tenant improvements
• Slightly over half reusable by future developer
Scenario Details - 1) r'in. & HR to
Parking Structure... (cont' d)
4
77.
I1
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o.
j„
Finance & HR Avail. For Lease
5
Scenario Details - 1) Fin. & HR to
Parking Structure, ... (cont' d)
Scenario Details - 1) ...IS to
Bldg. (cont'd)
n.
scenario "eians - L) r in. in rarxing
Str., HR in mobiles, IS in Saks Bldg.
0 Leaves major restaurant space at north end available
0 Helps solve Civic Center parking and loss of Annex
parking lot on Oak.
0 Costs include:
• $324,000 for tenant improvements
• Slightly over half reusable by future developer
• Mobile office costs approx. $130,000
• Assumed located in grass next to parking lot north of
Carnegie Forum away from Vet's Fountain
• Saks same as Scenario 1)
Scenario Details - 2) Finance to
Parking Structure... (cont'd).
1
_-J1
Lease •� �� Y' l_. ° ! ,
SpaceFinance
se Space
7
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Scenario Details - 2)
Mobiles... (cont)d)
Mobilo
18_
to
E.,
Scenario Details - 3) UDD c'Sii Y W to
Parking Str., Fin. to CH, IS to Saks.
❑ CDD & PW would need 8,000 SF at north end
(leaves 2,725 SF for lease).
❑ Helps solve Civic Center parking and loss of Annex
parking lot on Oak.
❑ Costs include:
• $467,000 for tenant improvements
• Slightly over half reusable by future developer
Some work in City Hall, compatible with long-term plan
Saks same as Scenario 1)
Scenario Details - 3) UDD &
Parking Structure.... (cont' d)
y1.1 L.1.
.�:jr
CDD & PW Avail. For Lease
R
Scenario Details - 3) CDD & PW to
Parking Structure... (cont'd)
- 1 ��...
L
10
Scenario Details
- 3) ... Finance to City
Hall (cont' d)
i
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10
Scenario Details - 3) ...City Hall
Modifications for HR expansion.
_
Scenario Details - 4) (all & PW to
mobiles, Finance/IS to City Hall
o Offsite City -owned locations include:
• N. side Lockeford btwn. Stockton & Washington
• Roget Park site
• Hutchins Street Square
• Guild Ave./Thurman St. property
o Cost is approximately $400,000 and up depending
on site work needed.
a Public convenience & other issues with moving
outside Downtown
11
12
13
scenario ijetans - D) Llili & rw
Admin to Annex, Finance to City Hall
❑ Minimal improvements needed in Annex
❑ Mostly puts Finance & HR in final places
❑ Some minor improvements in City Hall to
accommodate HR & Finance similar to 3)
❑ PW Engineering to remain in City Hall basement
until other space available
❑ Main cost is continued Annex rent (no current
lease, on month-to-month basis)
❑ Parking as -is
14
Cost Summary
Civic Center Interim Space Needs Costs
Scenario:
1) Finance & HR in
Parking Structure, IS
in old Saks Building.
Item
Tenant Improvements
Parking Structure (permanent)
Parking Structure (interim)
Saks Bldg (interim)
Mobile Office Lease (42 mos)
Saks Rent ( 18 mos )
Parking Structure "Rent"
City Hall Minor Modifications
Annex Rent (42 months)
Mobile Office site work, misc
Moving expenses incl. data (2002/03)
Total:
"Permanent' subtotal:
Net (total - permanent):
Increased cost over renting annex:
2) Finance in Parking 3) CDD & Public 4) CDD & Public 5) CDD & Public
Structure, HR in mobile Works in Parking Works in offsite Works Admin to
office, IS in old Saks Structure, IS in old mobile office; Finance Annex; IS stays in
Building. Saks Building, Finance .& IS to City Hall Annex, Finance to
to City Hall City Hall
$255,000
$146,000
$266,000
$0
$0
$197,000
$178,000
$201,000
$0
$0
$75,000
$75,000.
$75,000
$0
$0
$0
$68,040:
$0
$246,000
$0
$36,000
$36,000
$36,000
$0
$0
$20,000
$20,000
$20,000
$0
$0
$0
$0
$108,000
$128,000
$108,000
$0
$0
$0
$0
$281,000
$0
$62,000
$0
$110,000
$0
$53,000
$53,000
$100,000
$105,000
$72,000
$636,000
$638,040
$806,000
$589,000
$461,000
$255,000
$146,000.
$374,000
$128,000
$108,000
$381,000
$492,040
$432,000
$461,000
$353,000
$100,000
$211,040
$151,000
$180,000
$72,000
Notes:
(permanent) means expenses that would likely be recouped through future lease or use of City property that would otherwise need to be done
(interim) means expenses that would likely be retained by owner or redone by future tenant and of no long-term benefit to City
Parking Structure rent based on estimated lost income from potential lease to private developer
Does not include office systems furniture for any planned staff additions nor any parking improvements
Figures in italics very preliminary estimates still to be confirmed