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Council MIN 06-11-2003 Special FEDERAL WAY CITY COUNCIL Special Meeting Council Chambers - City Hall June 11, 2003 - 3:00 p.m. Minutes I. CALL MEETING TO ORDER Mayor Burbidge called the special meeting of the Federal Way City Council to order at the hour of 3:02 p.m., for the purpose of hearing a presentation by David A. Clark Architects on the city's future municipal facility. Councilmembers present: Mayor Jeanne Burbidge, Deputy Mayor Dean McColgan, and Councilmembers Jack Dovey, Mary Gates, Eric Faison, Linda Kochmar and Mike Park. City staff present: City Manager David Moseley, City Attorney Pat Richardson and City Clerk Chris Green. II. MUNICIPAL FACILITY a. Financing and Due Diligence for New City Hall David Clark Architects' staff provided an evaluation of the existing Paragon Trades building for the use of the new Federal Way City Hall building and two adjacent parcels for off site parking. A copy of their executive summary is attached hereto and marked as Exhibit "A". The architect also responded to a variety of inquiries from Councilmembers, and Management Services Director Iwen Wang provided answers to financing questions. b. Council Bill #323/Municipal Facility Acquisition Enactment Ordinance - Approved Ordinance No. 03-444 COUNCILMEMBER FAISON MOVED APPROV AL OF COUNCIL BILL #323/ MUNICIPAL FACILITY ACQUISITION; DEPUTY MAYOR MCCOLGAN SECOND. The motion passed as follows: Burbidge Dovey Gates Faison yes yes yes yes Kochmar McColgan Park yes yes yes (C(Q)f1f Federal Way City Council Special Meeting Minutes June 11, 2003 - Page 2 of 2 Councilmember Faison's subsequent motion regarding replacement reserves was withdrawn; staff determined it to be inappropriate at this time since the content of his motion was not advertised as part of this special meeting agenda. III. ADJOURNMENT There being no further business to come before the Federal Way City Council, Mayor Burbidge adjourned the special meeting at the hour of 4:04 p.m. )¡(~~ ~ N. Christine Green, CMC City Clerk ~#r(a) .:. Executive Summary This report evaluates the existing Paragon Trades building for use as the new Federal Way City Hall building and two adjacent parcels for off site parking. This executive summary offers an overview by answering three essential questions. .:. Summary Questions 1. Are the Paragon Building, Paragon land, and Quadrant land in good enough condition for the city to move forward with the purchase? The evaluations indicate the building is in good condition with no observed or known environmental issues. The building is considered to be a Class' A' office building and has been well maintained. Tenant improvements would be required to make the building useful for the City's needs. The Unifonn Building Code (UBC) does require that a police station be designed as an "Essential Facility". However, the Building Official has detennined that under the provisions of chapter 34 of the UBC, an existing building is not required to meet that standard. The building was apparently used as a research and development facility for diapers and as well as office space for an insurance company on the second floor. Certain chemicals were used in the building and are discussed in the Environmental Site Analysis (ESA) section of this report. While odors are evident in portions of the facility, no environmental pollution was discovered during this limited report and no evidence of chemicals was discovered during air sampling tests. Some minor mold was discovered and is being removed by the Owner. The Paragon land and Quadrant land have been evaluated for wetlands and for civil engineering design issues to estimate the number of parking stalls that could be built. The evaluation indicates that parking in excess of the City's parking needs study could be constructed. No other environmental evaluations were made. 2. Can the Paragon Building accommodate current and future space needs? The Paragon building has a gross square footage totaling 88,085, with 81,585 net square feet. During the course of the study, the City's previous space planning study was reviewed and updated. The new study indicates a current need for 70,071 square feet. As such, the building will meet the city's current needs. lID Public Spaces, . Public Works, 10,892 sf . City Manager 5,432 sf 1,879 sf lID Police, 27,425 sf Expected growth of the City by means of annexation will require additional city staff. This report did not analyze the impact of that growth on building space needs. As the building will only 86% occupied at move in, greater than 11,000 square feet is available for future expansion. The offsite parking needs would provide enough parking for the additional space. Federal Way City Hall David A. Clark Architects, PLLC EXH{B IT /t~ Due Diligence Study 3. Can a $14-15M budget accommodate purchase, design, construction, furnishing, moving, and other project related costs for the Paragon Building and Quadrant land? A new cost estimate was developed, analyzing current costs as well as costs obtained for neighboring cities that have moved into existing buildings as City Halls. As no design currently exists, the costs developed are on a "per square foot basis" and may vary once the final design is developed. Based on this method of evaluation, the construction costs for the tenant improvements are estimated to be $53.84 per square foot, or $4,238,500. The cost to construct the minimum number of offsite parking stalls on the Paragon and Quadrant land is estimated at $240,000. The cost to improve the onsite parking to meet facility needs is estimated at $225,500. Project costs, including sales taxes, Am costs, furniture costs, 2% for the Arts, moving and other costs are estimated at $2,375,000. These costs combine for a total of $6,613,000 or $94.38 per square foot. Adding in the $8,026,000 cost of property acquisition, the total project budget (including a ten percent contingency on the construction amount) is $15,300,000. The cost estimate also identifies items that could be added to the project, including additional parking and new furniture. This square foot table offers a quick comparison of costs for other city halls in the area. The Cities of Renton and SeaTac both bought an existing building and completed interior renovations to suit their needs. The Lakewood numbers reflect a completely new building. Renton's costs per SF numbers are smaller as they reflect 1998 dollars and a newer building that reused most all of the existing offices, reducing construction cost. Renton was also able to reuse the existing demountable partitions to construct any new walls to further cut costs. Further, the costs for the secure police functions (booking, sally port, holding cells, intake) were incorporated into a separate jail budget and is not reflected in this SF price. SeaTac City Hall was completed in late 2002 and was also a renovation of an existing building, very similar to this project. Cost per Square Foot 250.00 200.00 150.00 100.00 50.00 Federal Way Renton SeaTac lakewood Federal Way City Hal! David A. Clark Architects, PLLC Due Diligence Study DAVID A. CLARK ARCHITECTS, PLLC Prepared OJ-Mar-OJ Revised 05-Jun-03 Areas Previous Study Current Change "'Public Spaces 0.0 0.0 16,705 10,892 .. City Manager's Office 20.0 13.0 2,912 1,879 .. Community Development 24.0 36.0 3,523 5,685 .. Law 8.0 15.0 1,833 2,524 .. Management Services 22.0 28.0 2,951 4,366 .. Municipal Court 14.0 21.0 8,060 10,656 .. Parks & Recreation 9.0 5.0 1,274 1,212 .. Police 145.0 155.0 26,052 27,425 Volunteers 22.0 .. Public Works 28.0 38.0 3,445 5,432 Totals 270 333 66,755 70,071 David A. Clark Architects, PLLC FW Space Plan 06090J 06/09/2003,2:49 PM DAVID A. CLARK ARCHITECTS, PLLC New Federal Way City Hall Pre-Design Stage Statement of Probable Cost .Final.SuirJmary '. Building Related Construction MACC Tfs Hooring Mechanical Electrical Technology .r~tja..ø.uiIdÍlig lJup.rrivett!nf~ Ç~st5 . . ::':'.: Site Improvements Off Site Parking On Site Improvements .T~tld Stte Jlilprovemenf.s Co."its:.": ..::: . . . . Created Revised 26-May-O3 04-100-03 70,071 SF : I. : :,,:~ 5~.8". '$ISF $ 1,994,205 $ 264,778 $ 372,634 $ 771,970 $ 369,345 . I .. . . . . . .". ........' . .'.' $::'. . ,. 3;7?2;93~ .. .. ... ..... ... . . .. . $ 240,130 $ 225,488 . . ;:.::;:..::'~::..:A65,(JlS l ~~:.~~,~.~~ ~::~~,;i;~;~liulI Ù;;;¡~~'.. . ::~'-_: -~~~= ::~.....: .i:!~8:5~i"1 Soft Costs Furniture, Including WSST $ 451,846 Hub Relocation Costs $ 100,000 Moving Costs $ 80,000 WSST 8.8% $ 4,238,551 $ 372,993 NE (Off Site Parking included) 13.4% $ 4,238,551 $ 567,966 Phone System $ Project Manager $ 100,000 Advertising, Bidding Costs 0.2% $ 4,238,551 $ 6,358 Exterior Building Sign, Incl Tax $ 30,464 Printing, Reimbursables 0.6% $ 4,238,551 $ 25,431 Testing 0.1% $ 4,238,551 $ 4,239 2% for the Arts 2.0% $ 11,599,571 $ 231,991 Startup 0.2% $ 4,238,551 $ 6,358 Police Generator $ 98,000 $ 23,961 $ 121,961 Broadcast, including soft costs $ 100,000 $ $ 100,000 PBx, including soft costs $ 175,000 $ $ 175,000 :Sub T()tall~"jC!d Rt'Jati':CI{Soft) Costs : .. " .... .': S.. . 2,374,(¡~2.. Il~Þh~ ~h~~I~I~II~ ~~~~IWd ~~~I~I:~ "'" .. J Property and Building Acqsition costs Total Expenditures Recommended Owner's Contingency Total Project Expenditures Budget Amount under budget ).t~1I S¡~W L.-=~=~..". .~ _.~---~~..~~.~~~.I.~~ I $ 8,026,099 $ 14,639,257 .....-................."""'."" ::$:::::r~:rr::t~l@.ï~} .:.~:':':-:':':':':~~::;¡¡:n¡:;;;:;¡:",:if:;.; :~~t:;~~~t~~;i.Ä~~Þl;;i~ $ 15,301,051 $ 478 Construction Soft Total Possible Cost Increases to project scope Cost Costs Cost A Additional Off Site Parking (95 Stalls) $ 175,750 $ 42,971 $ 218,721 B. Fabric Wall System $ 10,500 $ 2,567 $ 13,067 C. Critical Furniture $ 201,822 $ 48,841 $ 250,662 D. Additional Furniture $ 158,603 $ 38,382 $ 196,985 David A Clark Architects, PLLC Pre-design CE FWCH 060903: Sununary Page Printed 06/09f2003, 2:52 PM City Hal. .L' unding Sources ;;:;:;;:::::: ::: ::::::::::::::::::::; ;::::::: ::::::Xt~y:î~w~~r:ti-y:Mf':A.C:::::: :::': ::;:::;: :;::: :;:; :;:: ::;:::::: ::;:;:: ::' ,:;;: :;;:;:::::::: ::::::::::: ::: ;:::::::;: :A.ç~Qal $:~4phig:S9ur:~~~;: ::::;;;::::;;:;:; ::::::;:;::::: :::::::::: (Develop a lO9k sf building) Funding Sources: Existing Cash on Hand Bond Existing Lease Payment Existing City Hall Equity Sublease Income (assuming 39k sf additional space for future growth) Extend 0.5% PS facility utility Tax -- Bond Additional General Source Total Sources Amount $ 7,500 3,500 2,600 3,986 6,000 824 $ 24,410 Amount $ 7&78 (Purchase/Improvement of an 88k sf building) Dèsctiption Cash on hand and projected interest earning Assume existing Joan from seHer RepJacement Reserves, GAC and EQC Generator Total Sources .6,129 1,294 $ 15,301