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06/09/1992 - Specialc;?y c ommission F 9cq i f?\ sj :-1 7 k r AGENDA Clearwater City Commission Special Meeting F- 1 y5? Ail"W ti, Clearwater City Commission Agenda Cover Memorandum Item N Meeting Date: _06/49/92 SUBJECT: PURCHASE THE SUN BANK BUILDING, 601 Cleveland Street RECOMMENDATION/MOTION: Approve the purchase of the sun Bank Building for $9.8 million plus closing costs and authorize the City Manager to bring back a final contract at the June 18, 1992 City Commission meeting. ® and that the appropriate officials be authorized to execute same. BACKGROUND: Supporting documentation is in the attached staff report. If this purchase is approved, a 3rd quarter budget review will include an amendment providing the funds as outlined in this report and establish a capital improvement project #315--1-4415 -- City Ball relocation. Reviewed Ley: Driginating Dept: Costs: $9.8 million Commission Action: ___ ?A r Legal N Administration Total ? Approved ? Budget N/A Purchasin S 9 8 million ? Approved w/conditions g Risk Mgmt. N/A User Dept: . Current fiscal Yr. ? Denied cis NSA ? Continued to: ACM Fundincd source: Other (3 Copitat Imp. Advertised: ? Operating Attaehrments; Date: Q Paper: Staff Report uired A Not R 5t#sn eq Affected Parties Appropriation Code; ? None ? Notified € A Not Required 31.5-1-4415 Cit Manag r V f ! ' MEMORANDUM TO: City Commission FROM: Michael Wri lit, 'ty Manager SUBJECT: Staff.Report Regarding Reconimelided Purchase of the Sets Batik Building DATE: June 2, 1992 /, There are, a number of specific reasons that led to the recommendation to purchase the property commonly known as the Sun Bank building. Those reasons, as we]] as answers to the often-asked questions, are detailed in the attached staff report. A synopsis of the report conclusions are listed below: o The building is of sufficient size to meet City space needs in the foreseeable future. It consolidates employees from four outlying sites into one structure. o It is located in the core of the downtown, adjacent to the Police and Fire Departments, with ample parking for employees and the general public. o It can be purchased for $9.8 million, which is $6 million less than the outstanding mortgage, $1.6 million less than the appraised price, and almost $300,000 less than its taxable value. o After paying 100 per cent of operating costs and for necessary renovations during the next four and a half years, the City can expect an additional return of between $1.7 million on a conservative basis and $2.7 million on a best-case basis, thus reducing the true acquisition cost of the building to between $7.1 million and $8,1 million. That equates to an approximate cost between $52 and $59 per square foot. o In addition, if the building is purchased, the City will avoid more than $900,000 in one-time building repair costs plus it will save more than $200,000 a year in operating costs once all the outlying departments are consolidated. i 4 o It will allow for the immediate development of the annex property because the employees currently located here can be relocated to the Sun Bank building. o The purchase can be made using iden`ified cash resources. The desire for a consolidated, centrally located City Hall has been discussed by the City Commission for a number of years. In my opinion, the acquisition of the Sun Bank building is the most cost effective, common sense decision the City can make to achieve that goal. 1 do not believe it will ever receive a better proposal. Attachment } Acquisition of the Sun Bank Building Overview and Background .. . .... . ........... ........ 2 Customer Service Benefits .. ........ ..... .. 7 Annual Operating Savings Gained by Consolidation to one Location ........... ........ 8 Authorized Full Time Equivalent Positions ................ . 9 Adjusted Space Needs Summary for New City Hall ....... . 10 Cash Flow Projections ................... . ........... 1.1 Parking .............................. . '...... , . 13 ! Financing Alternatives ............. ..... ....... . ... ... 14 Taxable Values and Community Redevelopment Agency Considerations .. 17 1 Alternative Uses of Funds' Available for Acquisition of the Sun Bank Building .......... ,......... 18 . j 1 k 51 ' 1 1 ? K ?4. t? ) f. •1 .j ¦ it OvervieNs, Md Thickground Does the City of. Clearwater absolutely need a new city hall? The answer is no. Are there significant economic and other reasons for acquiring a new city hall? Tile answer is yes. The concept of a consolidated city hall facility has been discusser) by the City Commission at a number of meetings for the past six years. In 1986, Commissioner Regulski outlined a general plan to "stimulate downtown redevelopment and to increase efficiency by consolidating City Hall," according to the June 16, 1986 work session minutes. That plan suggested the city would need to issue a $10 million bond issue that would cost the city approximately $850,000 a year in debt service. The ci;.y would repay the debt with money it received from "selling, leasing or renting" the major portion of the city hall annex property. In January 1989, the City Commission approved funding for a project to provide preliminary consulting for a City Hall complex. One month later, the City Commission, acting in its capacity as the Community Redevelopment Agency (CRA), questioned whether or not the main library should be included in the City Hall complex. The consensus was that a series of decisions needed to be made regarding the options for a City Hall before actually proceeding with the marketing of the annex property. In March 1989, the CRA again discussed the concept of a consolidated city hall when it entertained and subsequently rejected an offer from a developer to purchase the city hall annex site at a purchase price of between $4.50 and $5.50 per square foot. Quoting from the minutes, "the City is not yet prepared to make a decision regarding a new City Hall or City Annex Building. Before any sale of the property (City Hall Annex), there should be an extensive marketing effort to make sure the City receives an optimum price. Over the next eighteen (18) to twenty four (24) months the City should begin a systematic approach to develop a new City Hall building.' Once the Willingham study is complete, the staff can begin developing the options for consideration by the City Commission. At the same time, and on a parallel track, staff can develop a methodology to pay for the building and to identify any expenses that might be eliminated through the discontinuance of existing leases, consolidation of employee functions and other related expenditures." Recommendation The recommendation to buy the structure commonly known as the Sun Bank building and located at 601,Cleveland Street in downtown Clearwater is a culmination `of the efforts outlined above. It is believed the price of the building, coupled with net cash proceeds over the next four and a half years and the obvious locational advantages, make the purchase the most prudent, cost effective decision the City can make. Two nationally known, reputable developers, both with local ties, are expected to be asked to submit development proposals for the City Hail annex property. However, the results of thflse presentations will not 'be known for several months and any subsequent development of the property will not occur for at least one and possibly two years. Development on the Annex property cannot occur until such time as the approximately 150 employees are relocated to another site. The City has several options it can pursue with regard to where the employees are to be located, including the leasing of existing space, the purchase ,, -2- of an existing building or the constriction of a new structure, All these options were considered and the most feasible action appears to be to purchase the Sun Bank building. Throughout the remainder of this report, each aspect of the decision making process will be discussed. However, it should be clearly pointed out, the City Commission also has the ability to make no decision and let all matters remain status quo. The decision to do nothing will cost the city the $907,000 in one time capital costs as well as continuing the $213,790 of annual operating costs identified as potential savings. Space Needs Study In 1988 the City Commission determined that it was necessary to systematically review their space requirements with reference to a consolidated City Hail. A competitive negotiation process was initiated to retain the services of a space planning consultant to assist the staff in determining space requirements and a utilization plan through the year 2000. The result of the competitive review process was the award of a contract to Willingham & Associates on August 3, 1989 for a fe6. of $72,000, The Willingham Study proposed the consolidation of four separate buildings into one structure. Those buildings and their respective sizes are as follows: City Hall Annex, 71,951 square feet; City Hall, 23,981 square feet; Utility Customer Support Building, 12,518 square feet; and the Graphics and Purchasing Building, 9718 square feet, or a combined total of 118,168 square feet. It should be noted the City Hail Annex contains a large community room and a Building and Maintenance area that would not be included in the consolidated City Hall. When you subtract this combined space of about 30,000 square feet from the gross area of the four buildings, it leaves 87,518 square feet of space currently in use by the employees that would be housed in the new building. The scope of the project was divided into five phases: Identification of current needs; forecasting growth; analysis of locational requirements and recommendations of a building occupancy plan; site evaluation; and, construction costs and final report. f Study Conclusions The report concluded that in 1990, 273 employees would need 106,705 square feet; in 1995, 322 employees would utilize 126,650 sq. ft; and, in 2000, 341 employees would require 130,684 sq. ft. These gross building areas include appropriate conference. and support areas and public meeting rooms. Since the report was completed in January 1991, the assumptions about the City and the growth in staff have been reviewed. The original decisions about the departments and services to be included in a consolidated building have also been reviewed and revised downward. The chart on page 9 provides an analysis of all authorized City employees (per the 1992 Budget) and indicates the departments to be included in the consolidated location and which services will be provided from remote locations outside the consolidated building. Using the Willingham methodology, the most recent staff analysis concludes that 281 employees and the appropriate ancillary and public meeting space would occupy a building area of -3- approximately 97,576 sq. ft, This occupied area is then multiplied by a 25% "grossing" factor to allow for external circulation between department boundaries for public use, area for stairs, elevators, public restrooms, mechanical and maintenance rooms, resulting in a gross building area of 121,970 sq. ft. The report was careful to point out that when designing public buildings the accepted norm is to apply a "grossing" factor of 25% to accommodate public and commonly shared facilities. Due to the public nature of these facilities, this factor is higher than the 11-15% factor in general use in private sector office buildings. The chart on page 10 provides the most recent analysis of space needs for each department to be eventually relocated into the consolidated building. 11 The study paid particular attention to the space requirements fused not just on current configurations, but on accepted space planning standards. The study includes detailed analysis and calculations for each employee in each Department. Examples of space allocations: Department Director's Office Senior Planner Senior staff assistants (secretaries) File Cabinet 256 sq. ft. 196 sq. ft. 120 sq. ft. 13 sq. ft. An additional consideration is the currently overcrowded conditions in the Police Department. The transfer of the 46.6 Full Time Equivalent (FTE) positions in the Police Communications Center wpuld serve to relieve the space concerns in the Police building as well as make the Communications facility accessible to the handicapped. The 16,000 sq. ft. area requirement for this function would increase the total need to approximately 137,970 sq. ft. Site Evaluation and Construction Costs The Sun Bank Building recommended to be acquired by the City has an outstanding mortgage of approximately $16 million. Its appraised value is approximately $11.4 million, according to the current owner and it is listed on the tax roles at gust under $10.2 million. It can be purchased for $9.8 million, including land and parking. That equates to $72 per square foot including land or $64 per square foot when the $1,117,700 value of the land, as estimated by the property appraise;, is factored out. It should be recognized that some renovation costs will be needed to accommodate departmental needs if the building is purchased. It is estimated those costs should be less than $10 per square foot, or a maximum of approximately $1.36 million. Those renovations are recommended to be paid out of the positive cash from existing tenants over the next four years. On a conservative basis, that net income amounts to $3 million and on a best case scenario, would slightly exceed $4 million. Refer to the chart on page 12 for a complete analysis. If the Sun Bank Building is purchased, it would be recommended that two of the four properties discussed earlier, the City Hall Annex and the Utility Customer Support building, be sold. The Annex property contains just under one million square feet of, land with an estimated value of between $7 and $10 per square foot and the utilities property has an estimated value of at least $558,004, according to the county tax roles. It has been suggested the existing City Hall could possibly be used as an administrative support -4- building for the new library, which could easily save as much as $1 million in new construction costs. If the library is not expanded on the current City Hall site, Calvary Baptist Church has expressed interest in buying the property and there may he interest in Pinellas County acquiring the site. It is recommended the graphics and purchasing building be retained and incorporated into traffic engineering and gas utility operations. How does the cost of acquiring the building compare to other alternatives such as building a new facility, leasing existing space or purchasing other buildings? Those alternatives will be discussed separately beginning with the concept of new construction. New Construction The State of Florida recently completed the construction of the State Regional Services Center in Largo. That building is 165,759 square feet in size and built at a cost of $15,333,375, including the value of land, architectural/engineering fees and impact fees. That equates to $92.50 per square foot. Without factoring in the cost of the land, the building cost almost $69 per square foot. Construction took 19 months and was completed in March 1992. The State used a "grossing factor" of 21 percent in its design. In the space needs study, Willingham and Associates estimated the cost for a consolidated City Hall to range from $12,§60,412 using the Campbell Property on North Hercules Avenue, to $12,962,162 at the existing City Hall site and $14,015,200 at the City Hall annex site. All of these estimates were made assuming no cost for the land, which in the majority of cases, is currently owned debt free by the City. On a per square foot basis, without factoring in land costs, the range for new construction is from $97 for the Campbell site, to $99 for the existing City Hall site to $107 for the Annex site. Other Existing Buildings In addition to the Sun Bank building, the city staff investigated the potential acquisition of four other buildings in the downtown area. Inquiries were made to the Redevelopment Trust Corporation as to the availability of other suitable buildings anywhere in the City of Clearwater and none were found. Brief discussions were held with the owners of the Clearwater Towers building in the downtown area along with its sister facility next door at 600 North Cleveland Street. It was quickly concluded the owners were not interested in selling at any price less than $90 per square foot. The Pioneer Bank Building, located one block east of the Annex on Cleveland Street, was ruled out because it was too small to meet the needs of the Annex employees. The building has slightly more than 41,000 square feet, not including a former gas station facility on the property that was built in 1953 and the drive in bank facility. The building would have needed significant renovations. There is currently a $3.2 million mortgage on the building but no asking price has been established. The building sits on a three acre site of which 1.8 acres is owned fee simple and the other 1.2 acres is under a 100 year lease. There are 170 parking spaces associated with the building. -5- /1 The Coachman Partners Building, commonly known as the NCNB building and located at the intersection of Cleveland Street and South Fort Harrison Avenue, is a property that is actually three interconnected buildings with only 23 paved parking spaces on site. It has an estimated useable building area of approximately 51,000 square feet. Tile City Commission and the Community Redevelopment Agency recently approved an agreement that allowed the building to be refinanced for slightly more than $5.1 million, or about $100 per square foot. According to Building Inspector Tom Chaplinsky, one of the major buildings containing almost one half of the total space was built in 1920 with a common brick finish over what is apparently a hollow tile frame. Even after substantial renovation is 1986, Chaplinsky believes the building to be marginally habitable because of deterioration of the brick facing and wood throughout the building. The 1100 Building, located at the intersection of Cleveland Street and Greenwood Avenue, is a 15 story structure containing 150,000 gross square feet and 141,480 rentable square feet. The building was constructed in 1972. A new roof was added in 1987 and $200,000 in elevator work was completed in 1989. The asking price for the building is $8 million, or slightly more than $53 per square foot. There are just over 400 parking spaces, located in five different lots within one block of the building. While: the building price is attractive, it was ruled out from further consideration for several reasons. The first significant reason was the age of the structure, which is 20 years old, and its general, near windowless design. It would require additional construction to accommodate the utilities drive through requirements and would also require renovations much like those needed at the Sun Bank building. Finally, the location of the building is outside the preferred core area of the downtown. The Maas Brothers building was considered but ruled out because of the high cost of complete interior renovation, a need to replace all heating and cooling systems as well as a new roof. The building is in worse condition than the current Annex building and it was generally believed the Maas Brothers site could be better used for an expansion of Coachman Park or for use by others. Renting The final option that was considered for housing only the employees from the Annex was renting of existing space in the downtown area. Again, the 1100 Building was considered because of space currently available and it was generally believed this building would offer the most competitive prices. .,No specific price was quoted. Instead, a range of $10 to $12 per square foot was discussed as a minimum price, or about $400,000 to $500,000 per year. -6- Custottier Service Benefits There are some spccilic cost savings for consolidating city business to one location. These include annual savings of $213,790. As the City's growth slows and other demands for operating monies increase, it becomes necessary to look at ways to reduce operating cost while keeping service at a high level. Therefore, services must be continually reviewed to provide better and more efficient ways of doing business. The consolidation savings in annual operating expenses resulting from consolidation and the avoided capital costs of $907,000 are part of this efficiency review. These quantifiable savings will help maintain the current tax rate without reducing services. The nonquantifiable benefits are not to be ignored and include: (1) The ability of the Clearwater citizen to conduct business at one location; (2) The increase in employee productivity due to improved working conditions; (3) Improved communications between departments; (4) The ability to reorganize can help consolidate tasks, i.e. central cashiering; and (5) The ability for a handicapped worker to easily access city work sites. In this age'of customer service where citizens expect excellent service, the one-stop City Hail that is handicapped accessible, covered parking, and insulated walls for privacy, when needed, will add to our overall commitment to quality service for Clearwater residents. One-Time Capital Requirements There are a number of identifiable one time costs that can be avoided if the Sun Bank building is acquired. Those savings are detailed below. Immediate. City Hall Annex Roof $238,000 City Hall A/C control replacement 165,000 City Hall Annex A/C replacement 285,000 Utilities A/C replacement 62.D00 Sub-Total $750,000 Intermediate: Utilities Building Roof replacement $ 57,000 Network Link Phase I and 11 CIS 100.000 (A one time capital cost will be avoided if departments are consolidated in one building) Sub-Tata1 $157,000 POTENTIAL CAPITAL. SAVINGS 907 } -7- ;i Annual Op erating Savings G.iined By Consolidation To One Location If operations and employees in the City Hall, City Hall Annex, Utility Customer Support and the Graphics and Purchasing facilities are consolidated into one building, there are some specific operational costs could be saved on an annual basis and are detailed below, Telecommunications: Data Lines $ 5,200 Fire and Burglar Alarms r 1,200 Telephone Lines 8,900 Car Pool (reduction of 3 sedans) 7,240 *Electric Power Billing: 52,000 A consolidated City Nall would allow the city to take advantage of the interruptible. service rate. A gas driven 1200 KVA generator costs ;approximately $270,000 and generates $70,000 in Savings. Using 15 years for the generator life, annual savings would be $70,000 - $18,000 = 52,000. Net Operations Savings from Utilities Building, City Hall and City Hall Annex Copy Costs: Use of high speed duplicator in lieu of smaller, departmental copiers. Utility Costs: Reduction in lawn watering Reduction in Solid Waste Pickup CIS Reduction: Modem Maintenance Use of E Mail (Reduction of 2 mail deliveries per day) TOTAL ANNUAL SAVINGS ., f ' i i 5 i f i e 53,870 40;004 18,000 9,000 2,520 15,965 ?41?i1 J!+ AUTHORIZED FULL=I'INIE EQUIVALENT POSI'T'IONS Current Facility/Department Authorized Consolidated Other Starr City Hall rucilities City 11alt: City Manager 7.0 7.0 Administrative Svc & Internal Audit 26.0 26.0 PIO & Economic Development 5.5 5.5 Legal & City Clerk 18.0 18.0 Human Resources & Affirmative Action L I6.S Subtotal 73.0 73.0 Annex: Public Works & Traffic 81.0 52.0. 29.0 Planning & Development 53.0 53.0 Parks & Recreation Administration 23.5 23.5 Administrative Svc - CIS 15.0 15.0 Payroll & Risk Mgmt 9.0 9.0 Building & Maintenance 2_.0 2_7,,Q Subtotal 208.5 152.5 56.0 All Other Departments: Community Relations 8.0 8.0 Parks & Recreation Operations 168.9 1.0 167.9 Utilities Customer Support (Chestnut St.) 42.0 32.0 10.0 Purchasing & Graphics (Maple St.) 12.0 11.0 1.0 Grand Ave (Fleet, Radio, Admin) 49.0 49.0 Marina, Pier 60, Bridge, Beachguards 54.8 54.8 Gas (North Myrtle) 67.5 67.5 Infrastructure Complex 147.0 147.0 Solid Waste (Marshall St & 107.0 107.0 Transfer Station) Polio (Main, Countryside, Beach, 376.2 376.2 N Greenwood, Condon Gardens) Fire (6 Stations) 172.0 172.0 Library (Main & 4 Branches) 63.3 63.3 Water Pollution Control (3 plants) {12.0 ___. --62,Q Subtotal 1329.7 52.0 1277.7 Adjustments for Ecluivalctit Positions: Affirmative Action .5 Internal Audit - Volunteers -2-Q Subtotal 3.5 TOTALS 1611.2 281.0 1333.7 -9- ADJUSTED SPACE NEEDS SUINIMARY FOR NEW CITY HALL Department Number of Employees Square rootage Administrative Services 56 18,158 City Clerk Records Center 10 2,574 3,655 Affirmative Action 3 519 City Commission 0 4;786 City Manager 7 2,621 Economic Development 2 698 Internal Audit 6 849 Legal 8 2,962 Parks & Recreation (includes some recreation employees not included in original study. 24,5 8,801 Human',Resources 14 5)366 Planning & Development 61 14,650 Public Information 3.5. 1,794 Public Works 52 14,847 Utilities 34 7,138 Ancillary Rooms 6,658 EOC ('T'raining Room) 1,500 SUBTOTAL 281 97,576 25 °l Grossing factor 121,970 Police Communications or Vice: & Intelligence, 46.6 16,000 TOTAL 327.6 137,970 ?N I`) -la- 'M Cash Flow Projections in Sun Bank f Building is Acquired The chart on page 12 provides the cash flow projections through fiscal 1996. The basic assumptions include: 1. Existing leases will be honored through expiration dates. City Departments would incrementally occupy the building as space becomes available; 2. Ad valorem property taxes would be assessed and paid on the property on a pro-rata share until the City is the sole occupant of the premises; 3. Building maintenance and custodial services would continue to be provided in keeping with the "Class A" character of the building; 4. Contracted property management services would continue to provide professional leasing and building management services. The cash flow from the leases net of all expenses, including the space occupied by the City for the period, is $2,503,797. Projected savings from the elimination of the cost of operation and maintenance of the City Hall Annex provides an additional cash flow of $1,590,653 for a maximum net flow of r $4,094,450. , r i. -11- r? (r i .. co c } rr,c -- ny C IL ? ? U 3 a (D U U cts r E c U o d U- 4 J• 7. m ° l ` ° d N m m C to t D m o u r T- O tD r r O to o to ti t r) co LO V 0 m cr) N O O C \f O sf m ca o _ t t it O h O tD m (? M O rn m N 1? t?3 C? r r m h M LO O CD r r M N r ?t to o r rn (D OD 0) m m co .- O to r r N P? 1- r CD r O to tr O to to (? v co 0) to C9 pmj a C r N C r c; v tt 4 rn C%j N m to m N to co U) 0) r - m t o m tt to G M O N 0) r !? rn m n co O N P- CO t` (D tD a) tD b tD O h t) CD tD co 4m n m +-: O i m r t t!) O tD t7) (6 O) r tD O V co N m m V4 to co r CO N w C9 m tD h 0 CD .- tD r m t~ O O d cn Q M r- N tt) IT tD to M CD V* co o CO at r W) N In N m CV cs3 0) O Oo o) O ND N ( ? co N '" C D M C ` V v r r m N ? n to W m to v to r CO CO .- N M m to O h o) to C) m v r co v m r O th "It d: r m co m m co C) tq O ED rn m r'. CO tf t7 N CV r m CO CO t> M N (- r co M r OD r CV N CD CD co r r ?- w co O O O tD CO r tD "Cr co cq 0) V- am r y CV a m ti a) C ) 03 C7 t0 a td a h m N co a N c m cd m O m m r- r CO C) tt tt) O J co r r tY ,- to (D C) c c CD 3 `D ° cm ¢ tc o > CD o ` 3 0) t E to Q b- CL, m o O 0 0 LO a " V) cu N O C to - v tm ` co J cc 0 a p Ln cc E C a m CL cm >t? a, 0 . - c . Z , E ° 5 . m E . cm LL c N in cc% I •- N w a m a r d C ._ O (D 3 -0 0 ? y c W ? b 0) I-¢ cn tu 7L ) (n CD Cp r 4) (D co ra ?D ?. cG U N W V O «, •? .? N p io i7 V i i •t I I i Parking The availability of public and employee parking was a significant concern in the decision process. All consolidated City Hall parking needs can be met in the Park Street garage with almost IOU spaces remaining. In addition, there are an additional 378 spaces in the Garden Avenue garage and three nearby surface parking lots. 'I'liese facilities are currently occupied at a 42 percent rate, leaving more than 200 additional spaces available to the public plus all on street parking. Ilia fallowing table details currently available public and employee parking spaces at various city buildinjes. Fria or Lot Location Metered Spaces City Hall: Lot #10 (Front of Building) Metered 59 Lot #15 (Lower Level Behind Building) Metered 62 Reserved for Employers Reserved 62 SUBTOTAL 183 City HMI Annex: Front Lot: Public Parking Free 57 City Vehicles Only Free 32 South Lot: Public and Employees Free 309 SUBTOTAL 398 Combined Total City Hall And Annex 581 Other Facilities: Utilities Customer Service Reserved for Employees Reserved .57 Public Free 17 Purchasing/Graphics Reserved for Employees Reserved 10 Public Free 9 TOTAL ALL SPACES AT CURRENT FACILITIES 674 The following chart details parking spaces available in the vicinity of the Sun Bank Building. Lot Location Metered/ Attendant Spaces Park Street Garage Attendant 409 Kravas Lot Metered 74 Lot #28 (Behind Sun Bank Building) Metered 25 On Street Parking Metered 27 SUBTOTAL 535 Garden Avenue Garage Attendant 270 Lot /14 (North Garden Ave.) Metered 9 Less: Average N of Parking spaces uses&by local businesses ( 80) SUBTOTAL', 199, Combined Total 734 Financittg Alternatives Cash Purchase On April 28, 1992 the City Manager presented his comprehensive plan for the Downtown Clearwater area. An integral component of this plan is the cash purchase of the Sun Bank Building for a new consolidated services City Hall facility. A summary of the sources of funds to be used is detailed below. Funding Source Available' Restricted Unrestricted General Fund Surplus, $23779,170' 2,779,170 Amount Over 10% Penny for Pinellas 4,900,000 4,900,000 Special Development Fund 644,763 644,763** Capital Improvement Program: 161,920 1611920 Penny for Pinellas 1,287,884 1,287,884** Special Development Fund Bond Interest Fund 227,311 227,311 TOTAL AVAILABLE 10,001,048 6,994,567 31006,481 FUNDS * Restricted to capital, infrastructure expenditures by State Statutes. ** Restricted to capital expenditures by City Commission Policy. Debt Financing ..IN, The City Charter, Article IX, Fiscal Management Procedure requires that "...revenue bonds for projects in excess of one million dollars shall be put to public referendum with tine exception of revenue bonds for public health, safety or industrial development and revenue bonds for refunding." Our Bond Counsel Bryant, Miller and Olive has researched the issue and concluded that the City Hall project (whether purchase of an existing building or the construction of a new building) meets the criteria and is not subject to the referendum requirement. By investing the cash and using the principle and interest to pay off the bonds over the life of the Penny for Pinellas funds, the City could receive a present value savings of approximately a quarter of a million dollars. A detail of the analysis is contained in the next chart. In the course of investigating options for acquisition or construction of a new City Hall, City staff asked our financial advisor, Raymond James and Associates, to provide us with their recommendation for the most feasible and cost effective means of financing this project. Their suggestion was to issue City revenue bonds secured by the "Penny for Pinellas" infrastructure tax. -14- i As the following schedule shows, they estimated required annual debt service at approximately $1,550,000 through 1999, when the infrastructure tax is scheduled to expire. Since bonding would replace the need to reappropriate existing City funds, we have estimated the interest earnings on the $10,000,000 of City funds which would otherwise be reappropriated, assuming investment at current rates until needed for future debt service. Because of the differential between taxable investment yields and tax exempt borrowing yields, the schedule shows estimated excess earnings of $400,674 which would remain in 1999 after the bonds, including all issuance expenses, have been paid off. This amount, which has a present value of approximately $249,776 represents the primary advantage of financing this project versus reappropriating existing City funds. E Disadvantages to financing include the administrative burden it imposes on City staff and the Commission, an increase in our current low City debt and debt per capita statistics, and the added difficulty in issuing subsequent debt secured by the same revenue source. { ?. y t 1} i , f t1 , -i -15- 1 E } {i!1 I 1 1 ¦ ? 1 II N Cl 1 L. > Ot.-rto NNNN m cm 4) 1 4) L+ C'7 w C71 co N v co CD I C) ? w 1 9-1 •°• a) M tap 00 W t- o • to i Cd In CD I < I to r-i V' T-4 N C) C*3 c :E: •• C7 t4 I 4.3 r ti a) d'M -t- D- MQ I r-4 C) 0) v v ?t;to<rwWtr t- TH ca i 1 N p A I CO t- to to +7• M r-1 1 ert .ta I .-I off 1 . a) I cd 4-r A I C70 f+ 1 O E 1 lw l w+ 1 .0 O l iC t..t 4) 1 at 4) I C3 tr N to C) O C7 N I m 11 f3 'C! 1 en -0 1 O co +3• N ?v t Ch C) I to 11 4-) 4) I • ed r C) Cl +a+ -Y CD. t- (D N 1 O 11 M 1t7 I to A r •• - •• - " •. - - - 1 •• It as 4) 4) I @} I to O W W cm CO w m I C? II Ca 4) I •W 1 Nt+CD Mto co COrH I N It Z 4-1 r- I M to to +Y• M N N r-1 1 00 I () I 1 -1 I I t17 --? I 4) a ! 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F) • r1 r-1 N N M Cl kv 1 N I I 41 ?• c. a '0 . , I" .. .. .. - .. .. .. 1 11 41 44 1- 4 0 I O 11 41 41 . r-l It ? 44 0 w U 7 O a: CV U) 0 ar al ark bit 0 aY a: aQ '+1 W IN " C>a (.) I CQ C) O to c CD o o t;! W 43 W 4j 1 r•'1 t- b• t- ? N .4:r to ? a L) ? I ? • U a L+7 t"7 v" •d? 1n, to to to ? ' ? ?' "Ci T] t+ 4) i t,. 47 4) O t} Q) I N M V to W L- M m 4J 4J" O 1n 0 td +?' W MCAal MM(M O d m 'm O C td 1 \\\\\\\'\ 13 4) :>b 04.0 0) A 1 r-•1 r-1 r--I r-1 rl w r1 r^1 H VI d-) O M -1 \ ?. \ \ \ \ \ \ + •i•) 43 A t4 (1) -e-1 1-4 w r-1 w .-1 w r-4 4^i V) to 04 A Cis r r-1 r-1 rl r^1 r•t ra r-1 w ja4 -?G- Taxable Values And Community Redevelopment Agency Considerations The Community Redevelopment Agency (CRA) and the Redevelopment Trust Fund were created in 1981 in accord with Chapter 163 of the Florida Statutes by resolution No. 81-466 and 81-795 of the Board of County Commissioners of Pinellas County and by Resolution 81-67 and Ordinance 2779-82 of the City of Clearwater, as a tax increment financing district. Funding for the. CRA comes from the increased district property values that have occurred since the base year. The ad valorem property tax millage (excluding any General Obligation Bond debt service millage) of the City of Clearwater and Pinellas County is applied to the calculated increment value. This . Tax Increment Financing (TIF) mechanism allows the Redevelopment Agency to leverage both City and County tax dollars for redevelopment projects. A history of the taxable values, the tax increment and tax increment revenues are detailed below. FISCAL YEAR FINAL TAXABLE VALUE TAXABLE VALUE INCREMENT OVER BASE YEAR TOTAL INCREMENT REVENUES Base Year 1982 $84,658,490 1983 91,093,130 6,434,640 49,450 1984 93,888,410 9,229,920 55,335 1985 104,126,274 19,467,784 102,103 1986 119,363,020 34,704,530 297,281 1987 143,738,950 59,080,460 482,868 1988 155,771,600 71,113,110 670,261 1989 161,405,820 76,7471330 716,517 1990 158,802,070 74,143,580 725,880 1991 159,216,500 74,558,010 736,449 1992 138,333,100 53,674,610 -T -539,741 *Total Increment Revenues includes funds received from the City of Clearwater, Pinellas County and a small payment from the Downtown Development Board. When the Sun Bank building is completely removed from the tax roles, tl}e CRA will lose approximately $100,000 in revenues. There will be virtually no negative impact on the General Fund due to the structure of the tax increment financing district. However, the General Fund would significantly gain from the value of the Annex property being returned to the tax role from its current tax exempt status. -17- Alternative Uses of Funds Availnble for Acquisition of the Sun Bank Building Recently several suggestions have been presented proposing alternative uses of the $10 million identified for acquisition of the Sun Bank building: An analysis of the funds identified for purchase on page 14 of this report indicates that $4,900,000 in Penny for-Pinellas Funds and $162,000 of the Capital Improvement Program balance are restricted as to use by Florida Statutes Section 212.055. The relevant portion of 212.055 requires these funds to be used, "... to finance, plan and construct infrastructure and to acquire land for public recreation or conservation or protection of natural resources. Neither the proceeds nor any interest accrued thereto shall be used for operational expenses of any infrastructure." The statute defines infrastructure as, "any fixed capital expenditure or fixed capital costs associated with the construction, reconstruction, or improvement of public facilities which have a life expectancy of 5 or more years, and any land acquisition, land improvement, design, and engineering costs related thereto," and then goes on to say, "Counties and municipalities shall not use the surtax proceeds to supplant or replace user fees or to reduce ad valorem taxes existing prior to the levy of the surtax authorized by this subsection." This last restriction either prohibits use of tax proceeds to reduce an user fees, or it prohibits use of tax proceeds to reduce user fees existing prior to 1990 (when the infrastructure tax was first levied). The following analysis assumes that these proceeds can be legally used to reduce user fees imposed or increased after 1990, although a stricter interpretation would prohibit the reduction of any user fees. In addition to this restriction imposed by Florida Statutes, the remainder of the Capital Improvement Program balance ($1,287,884) and the Special Development Fund balance ($644,763) consisting primarily of interest earned on road and drain millage collections, have been restricted for capital use by City Commission policy. The $2,779,170 of General Fund surplus and the $227,311 from the bond interest fiend are truly unrestricted and can be appropriated by the City Commission for any lawful purpose. A summary of these spending restrictions is as follows: Restricted for Infrastructure by Florida Statutes Restricted for Infrastructure by City Commission Policy Unrestricted $ 5,062,000 1,932,567 41 $10,001,048 1t Within the parameters of these restrictions, we have examined the possibility of using these funds to reduce or mitigate increases to several of the City's utility funds, specifically the Solid Waste, Sewer, and Stormwatcr utility funds. These utilities were considered because of their city-wide nature. Neither the gas nor the water utilities cover as wide an area within the city limits. Solid Waste - The Solid Waste rate study currently in progress by Camp, Dresser and McKee projects revenue requirements for 1993, 94 and 95 of about $12,650,000 per year. Of this amount, approximately $200,000 is for debt service on . the new Solid Waste complex being proposed for the Campbell property, and approximately $350,000 is for ongoing capital iraprovements. Both of these items would qualify for funding by the restricted funds identified above. Using the restricted funds in lieu of Solid Waste revenues would reduce revenue requirements by $550,000, or approximately 4.3% of the total. Given -18- the current rate structure of $15.42 per month, this would equate to a potential savings of about 67 cents per residential customer per month. Since rates may need to be increased in the near future, this would really result in a reduction of the proposed increase rather than an actual rate reduction. Wastewater To determine the potential impact on wastewater utility rates, we used data included in the December 1991 study, also prepared by Camp, Dresser and McKee. For 1992, 93 and 94, they estimate Sewer revenue requirements of approximately $18,000,000 per year, of which $5,400,000 is debt service on the outstanding bonds, and $1,400,000 is for continuing capital improvements. Assuming the entire amount of available restricted funds is allocated ratably over the next five years, this would reduce annual revenue requirements by about $1,400,000 per year, or 7.8%. Applying the 7.8% reduction to current estimated monthly rate of $17.76 for an average residential customer produces a potential rate decrease of approximately $1.38 per month over the next five years. After five years, the restricted funds would be exhausted, and Sewer rates would need to be increased again or an alternate funding source would need to be identified. Stormwater The potential impact on Stormwater rates was estimated based on the 1992 budget, which shows approximately $1,046,420 of capital expenditures, or 32.7% of the total $3,200,000 budget. Applying 32.7% to the existing $3 per month Stormwater utility fee would yield a potential rate reduction of 98 cents per month. These estimates can be summarized in the following table. It should be noted that the options shown are mutually exclusive, that is rate relief for more than one utility at the same time would result in smaller savings for each utility. Table 1: Impact on rates of allocating funds restricted for infrastructure, to the maximum extent possible. Duration of Current Rate for Potential Rate e stimated Rate Relief if Typical Relief for Typical Duration of Rate Penny for Residential Residential Relief Pinellas Funds Customer Customer Are Not Eligible Solid Waste Utility S 15.42/month $ .67/month 10 Years 4 Years Sewer Utility $17.76/month $1.38/month 5 Years 1.5 Years Stormwater Utility $ 3.00/month $ .98/montli 7 Years T 2 Years -19- The above estimates relate only to the use of the restricted funds identified as available for the Sun Bank purchase. In addition, the Commission could appropriate the $3,006,481 of unrestricted funds to reduce the . utility rates but this would be contrary to the City's longstanding philosophy of having the utility funds subsidize the general fund, and also contrary to the basic philosophy of enterprise funds, namely that all costs of operation are born by the users of the enterprise. For purposes of analysis, however, we have estimated the potential impact of allocating the unrestricted funds to each of the three utility funds evenly over a three year and five year time frame, as follows. As before, all options shown are mutually exclusive. Table 2: Impact on rates of allocating $3,006,481 of unrestricted funds. Rate Relief Over 3 Years Rate Relief Over 5 Years Solid Waste Utility $1.22/month $ .73/month Sewer Utility $ .99/month $ .59/month Stormwater Utility $ .94/month $ .56/month ?r f r J -20- i 4 ? ., ERGONOMICS DIVISION 0F.',"J . r _. alA - - OFFICE b SHdWROOM IROI ULMERTON RD, SUITE ,!, VIRGO, FLA. 34641 %Too PHONE W6-5383 C E N I E R C O R E DEALER r Clearwater Beach Association S Mr. Fred Thomas 14480 62nd Street N. Clearwater, Florida 34520 June 8, 1992 RE: SPACE REQUIREMENTS, SUN BANK BUILDING. To whom it may concern: We at Pioneer Ergonomics have been asked by you to comment on the proposed acquisition of the Sun Bank Building, by the City of Clearwater as an appropriate site for the new Clearwater City Hall. We respond as follows: Pioneer Ergonomics, Division of Charger Enterprises, Inc. and its predecessor, Pioneer Concepts, Inc. have been involved in the design of efficient office space since 1984. II Among projects completed, were government offices for a variety of departments in Pinellas, Hillsborough, Pasco and Polk County as well as well as Federal projects for HUD, FBI, Mac Dill Air Force Base and the Veterans Administration. Additionally we have worked with a number of commercial accounts that include Mental Health Providers, Metropolitan Life Insurance Co. and General Motors Corporation. Though our experience is broad in scope, we do not claim to have the ability to accomplish by design and space planning alone, the bottom line results that dedicated, resourceful office managers can create through motivation, planning, simplification and monitoring results. Those who create the success stories understand objectives, and the human factors that must be managed to achieve them. Good space planning requires that space be put to productive use. No outside consultant knows as much about the running of departments and how. to simplify things, than the people who work at all levels within an organization, not just management. "PIONEERS IN THE EFFICIENT USE OF SPACE AND PEOPLE" 9 e w s50 5 At err, -UN 0 overcomg_ the old--attitude- _th..at big is good. bigger J6 better-and -the biggest Is the best. T_he_v are _811R_o forcing us to Jes n e ea _teamwork._ _P_eople _. working, tether in -a-h- environment .that e cou s es nt racy s „Ji_me!_ And the_ duality of -their work la much better-as el ! Our ?4u40 il?dus _ry has _hed L2 i"rn this _the herd &A ,E..:_ In the field of office planning and design, over the years, -,thee size of one's desk or work station became a symbol of stratus. rather than a tool for accomplishment. This mind set still perme- ates a large sector of American business and government. But the current recession and the budget constraints of government at all levels will not be denied. Down sizing is today's buzz-word. But right sizing is more mean- ingful. To illustrate; A junior clerk collating numerous multi page legal documents, may well need more working space than a director of asset management. If a clerk needs BO square feet of file space to do his or her work, that should be the determining factor. But most clerks will need much less to do their jobs productively. Thus well managed agencies within the federal government now must live with the constraint of total space per employee. How that space is divided among departments and employees will determine the overall efficiency and morale of each department. With that background, what is our view of the proposed use of space as outlined in the reports recommending the purchase of the Sun Bank Building? Having reviewed both the Staff Report and the voluminous Willingham Report a few things jump out at us. h The total need for space per em to ee is far-greater tan that now dictated for federa overnment s encies by federa_1 re ul a t.i on . Federal_Pno_p_e?t?? Haag emen_t e ulations contained in he edera a iste Vol.- 0 Section 101-1-7.200 dated August 20., 1991, proscribes-an allocation of 125 SQ.-Et. per m In ee ccu ant. t explains "The 125 Square feet reflects the amount --o f space occu led b employees In GSA office ace -- clerical, administrative ara ofessional in g! n a g - and xecutive -- using the o vent a a 'cure or furniture- s stems. he 25 uare eet a son 's the thEeshold utilization rate for Jhy_ PriApa_ry_ area for new as-s1onments der this a a . " Additionally provision is made of for support areas. This provi- sion of up to 229 additional space is for specific needs. It explains: "Space for Secondary or shared work stations is provid- ed in the Support area. In addition to secondary/shared worksta- tions the Support Area, the Support area consists of reception 2 areas, conference rooms, storage areas, processing areas, Ii. braries, file areas, and extraordinary circulation." As one looks at the "Adjusted Space Needs Summary For Now City Hall" on page 10 of the Staff Report the need for space by var-- ious departments is hard to justify. Perhaps something in miss- ing? For example, Administrative Services with 66 employees requires 18,158 Square Feet of space or 324 Square Feet per employee. That is about the size of a family room 14' x 231. The 14 employees in Human Resources needing 5366 square feet are to receive 383 square feet per employee. That's about half the size of many mobile homes in Clearwater. According to Don Harwig, Facilities Manager for Hillsborough County, even the liberal numbers generally recommended by Peat Marwick to the county are not as high as those included in the Willingham Report. For future planning including growth factors, they recommended 195 Square Ft. Per Employee, including all supplemental areas. Carl Barron, Director of General Services for Pinellas County feels that the federal standard is too generous. He requires that county departments justify space requirements by functional need. Thus the county uses less space per employee than the federal standard. That directive from his office applies to all levels of work and management. In the March 1989 issue of Government Executive Magazine the comment was made regarding the earlier 135 Sq. Ft. Federal Stand- ard: "Aside from saving leasing and administrative costs, efforts across the country to consolidate federal offices are giving a boost to GSA's three-year old plan to reduce the size of individ- ual offices to a maximum of 135 Square Ft." Some agencies at first ignored the space edict convinced that pushing employees into 135 Sq. Feet was nearly impossible, and that up front costs of systems furniture wouldn't fit their budgets. Yet today the average office workstation has dropped from 159 square feet to 149 square feet, GSA reports, Moreover, in many refurbished offices or newly leased facilities, individu- al workstations are averaging about 122 square feet. 2. While the economic Justification for the move, is the apparent intent of the reports, the efficient use of space and people seems to have been given low priority. We would ask why? Who determined that workstation assignments C;, D or E are related to function, need or the efficient performance of work. These eight- hour-a--day offices are larger than the bedrooms"in which many residents of Clearwater, spend similar time. And many of those are shared by two! What is needed to turn each type of workstation into a more efficient tool? How mach file space is required? What provision j is made for VDT accommodation? What essentials can be placed i? within the primary work zone? That is the 36" radius from the 3 worker's head. Will new facilities be designed for maximum functidn and produc- tivity at minimum risk to workers? ?Wiil ergonomic chairs replace some of the dangerous four prong monsters that'-fill many city offices today? WM a both ourselves and the Willingham Group have been forced by space availability to design work stations as small as 30 square feet, this is not recommended. Payroll is a large part of the cost of operating an office, and too little space wastes that investment. Conversely, poorly designed oversize offices and work stations not only detract from the performance of work but they require more time walking between them. Psychologically this interferes with needed interaction and communication. 3. According to the Staff Report Study's Conclusions on page 3, something again seems to be missing from the text, It projects that in 1995, 322 employees will occupy 126,550 Square Feet of Space. (According to the Willingham Report on page 11, the build- ing contains 130,684 Square Ft.) .That emounts__t_o393._3 ,kgvare_feet__Pe_r_em_gU_o_Y ee. That is More than 2- 2 'mes the space al loco t ion-threshold 'n the fede to lord in_cludin,c__sup2_art- areas! Under normal circumstances the new federal standard would allow no more than 49,105 Square Ft. for 322 employees projected for 1995. (The current report indicates 281 current employees require 121,970 Sq. Ft. with the grossing factor. (97,676 Sq. Ft. with a 26% grossing factor = 121,970 square feet.) That works out to 434 square feet per employee using the Willingham study.) If each of the current 281 employees were given a workstation the size of an "A" office with 280 square feet it would add up to a total of only 78,680 square feet. Add in a 25% grossing factor and only 98,350 square feet would be required. At a conservative rental rate of $15.00 a Square Ft., even if the city purchased the Sun Bank Building, it could probably rent this prime downtown office space for $1,153,175.00 as the economy improves. While much diligent research has gone into creating the mathemat- ical basis for projecting future employee growth, this area needs the least justification, Anyone who has,lived here for five years or more can feel it. lJowever. ro 'ected ace rrqui1:e_we_n s greeip to be the want a t JUstiLied mpre floor s ace use ma be a nt to stgrt et it seems to be__used as the basisfor future v3annJ12A.__ There are many tools that federal agencies and commercial offices are using to reduce floor space needs. High density filing sys- tems, electronic data storage, cluster work stations will all play important factors in reducing floor space needs. (Cluster 4 workstations allow placing five or six people into the apace normally occupied by 4 desks. The Federal Government has spent hundreds of millions of dollars on this space reduction tool.) The inclusion of more storage in workstation componentry will also tend to reduce floor space needs. One' other final observation: Many federal and commercial offices are now designed with low wall acoustic panels. The reason why fewer offices are built with studs and drywall, is fourfold. 1. Frame and drywall offices waste space. 2. They create ventilation and air conditioning problems. 3. Offices interfere wiih the ability to supervise, and productivity decreases overall. (Obvi- ously there are some, justifiable needs for private offices, but in most cases they are status symbols, provided at taxpayer expense.) And 4. They reduce flexibility in office design and reconfiguration. The often used argument that certain size work stations are needed to compete with the private sector is not necessarily the case. The recession 'has caused many corporations to reduce the size of work stations where possible. Some have even turned departments into profit centers, and charge rent for space usage. Thus standards developed in New York City or Chicago now have little influence on companies like Raymond James, Critikon, Silor Optical or Home Shopping Network in the Tampa Bay Area. Function and profit generation are becoming the deciding factors in space allocation, rather than position, demand or wish. Thus we see a lot of clerical work stations that occupy 36 to 80 square feet, supervisors offices that occupy 64 to 80 square feet and middle managers offices that occupy less than 200 square feet. We do not intend thial, comment to be accusatory. There may be missing information that has not been made available to us and the public. We are therefore using this as a means for generating further questioning and discussion so that the ultimate decision will not be made on partial or distorted assumptions. Our observation is that there seems to be opportun',Ay for better use of office space, currently and in any proposed new facility. This will provide the opportunity to reduce the cost of mainte- nance, depreciation, heating and cooling and risk exposure in any decisions the City's elected officials may make on behalf of their constituency. S i nce.re_),y , Charles Wolfersberger, President Pioneer Ergonomics Division Charger Enterprises, Inc. 5 pccCts 419/f zt, (YL9 -?? Prepared For Clearwater Beach Association Fred A. Thomas, President . i REVIEW AND EVALUATION of ".CLEARWATER CITY HALL SPACE REQUIREMENT AND UTILIZATION PLAN: FINAL REPORT 19911, and "STAFF REPORT: PURCHASE OF SUN BANK BUILDING' 601/CLEVELAND STREET" f ' f F? Prepared By Mudano Associates,Architects, Inc. 4625 East Bay Drive - Suite x`221 c:iearwater, Florida 34624 Phone 813/539-8737 r. I INTRODUCTION/SCOPE OF SERVICES i On May 29, 1992 Fred A. Thomas, President of the Clearwater Beach Association, contacted Mudano Associates Architects, Inc. and requested that we.conduct a complete study and evaluation of the "Clearwater City Hall Space Requirement and Utilization Plan Final Reportt, January, 1991", prepared by Willingham and Associates Architects, Inc. This study was to be completed in a total of nine (9) calendar days, with delivery of.the final product no later than 12:00 noon on June 8,' 1992. On June 3, 1992, Mr. Thomas added to the original agreement a request for our.firm to review and evaluate the "Staff Report: Purchase of Sun Bank Building at 601 Cleveland Street", and include our findings in the final June 8th report. With a radically compressed time frame, and without the luxury of being able to interview various municipal department heads, it was necessary to assume that the existing statistics compiled by,Willingham and Associates were.correct.t Current available data relating to, the number of staff and square footage being utilized at various locations was also taken as fact. Portions of ;"Space Utilization Studies: Municipal Office Space Consolidation City of St. - Petersburg, Florida 1991" by the Architects Design Group, Inc. of Winter Park, Florida were utilized in our analysis for comparison purposes. It was felt that this study, conducted during the same time span, for a city located in the same county with similar limited ability for continued growth, a population two and a half times larger than Clearwater's and with municipal services scattered in eight separate locations would provide an excellent yardstick. In addition, information obtained from the Bureau of Economic and Business Research at the University of Florida was taken into consideration to confirm existing population figures and projected growth for the City of Clearwater. Like the City of St. Petersburg, Clearwater has limited land remaining for new development, which will severely limit future population growth. With reduced development and restricted potential for future growth, it should follow that governmental requirements will stabilize and eventually begin to get smaller rather than continuing to grow. The introduction of computers on a city-wide scale for data processing, storage, retrieval and interconnection of departments should also logically reduce the amount of building area required to conduct the day to day business of the municipality. Consolidation of departments under one roof will further increase the efficiency of Clearwater's government. With consolidation, duplication of typical physical space needs will be reduced, so that a "fluffing factor" will occur naturally, rather than one needing to be artifi'c'.'ially added to the actual space needs. Utilization of open space planning concepts, reduction in size of 2 }F ? ?? 1 II SUMMARY OF WILLINGHAM STUDY The Willingham Study Appendix B, page 1 indicates five "Forecast 'r Methods" used in the study that are based on projections of historical data to estimate future growth and needs. These methods blatantly ignore some important factors, such as t}e rapidly shrinking amount of developable land area remaining within Clearwater's boundaries, planning trends that continue to control attainable densities, the unsolved burden of our inadequate road systems while we continue to depend on the automobile for population mobility, and other key factors that impact on { future growth. Projected growth in the'study far exceeds that of the St. Petersburg study, which indicates an increase in staff area requirements of 6.3% by the year 2001 and a further increa>e of 1.8% in personnel to handle staff increases through the year 2011. ' i The revised staffing table included in the "Purchase of Sun Bank for a",Consol.idated City Hall" supports the fact that minimal future growth can be?expected by the City of Clearwater. The limited time available did not permit us to verify the 281 employees by category. A conservative approach was taken to confirm the total square footage required to meet the needs of the city. It was assumed that the Willingham Work Station sizes are correct, and that a Work Station F of 344 square''feet is more than adequate as an average s i ze'. The 144 square foot Work Station was increased by 25% for "fluff", ? ? 4 and then increased an additional 25% for the addition of separate conference rooms, council chambers, storage rooms, and other sundry spaces, both ceremonial and utilitarian. To this total was added 12% for walls, stairs, elevators; rest rooms, equipment rooms and other miscellaneous small areas, leaving us with a final figure of 70,912 square feet. a ?l Work Station f 25% "fluffI, •f Sub Total Staff Sub Total 25% increase for related uses Sub Total 12% for fixed elements GRAND TOTAL 144 square feet ,36 s uare feet 180 square feet 281 50,580'square feet 12,645 63,225 square feet 7.587 sauare feet 70,912 square feet It is our opinion that building area requirements listed in the Dillingham Report and Revised Staffing Table included in the "Purchase of ,- Sun Bank" are greatly overstated. Our analysis indicates a total space needs requirement of 70,912 square feet, compared to the 121,970 square feet listed on page 10 of the "Purchase of Sun Bank" document. It should be noted that no area was budgeted for relocation of the Police Ummunications Department. ' 5 1 E I N, III ANALYSIS - "STAFF REPORT: PURCHASE OF SU14 BA14K BUILDING" The asking price of $72.00 per square foot for the Sun Bank building , is a good value. The $10.00 per square foot being suggested for renovations is extremely low. Conversion of the building to a City Hall facility will require numerous modifications: • Air Conditioning • Electrical • Plumbing • Americans with Disabilities Act Conformance • Partitioning • Ceilings • Decorating • Floor Covering , • Demolition of Existing Facilities a Installation of New Communications Systems • Computer Networking • Audio-Visual Systems • Addition of Private Toilet Facilities (in some areas) • New Furnishings • Equipment That Cannot be_Easily Relocated Fees for Various Design Professionals The cost for this work should be•budgeted at $45.00 per square foot, rather than the $10.00 per square foot listed in the staff report. 6 At $45.00 per square foot, the additional costs for conversion of The Sun Bank Building are $6,120,000 or a total cost for the new City hall of $15,920,000.00 (This amount is based an the City's space need requirements). The Sun Bank-building has not been surveyed by professionals to , determine its useability, adaptability, and feasabil ity. as a City Hall. Until such a study has been conducted, a decision to purchase should not be considered. The suggestion that 9.8 million dollars should be committed to the purchase of the Sun Bank Building without conducting a proper study appears highly frivolous. The building area required is available, the City Hall will remain downtown, and a parking structure is conveniently located pd connected to the Sun Bank building. All of these features are positive, attractive traits that need to be considered, but when all is said and done, do we really know the costs of converting the building into a City Hail? The 545.00 per square foot for renovation takes into account written suggestions of the city's Energy Officer, who implies that the Sun Bank building is the most energy inefficient building in V earwater. (Memo attached). Unless suggested changes are made, energy costs are projected to be double the amount of money per square foot when compared to energy efficient buildings. No mention is made of this fact in the Manager's f iemo . In 1989, the city received an offer of 54.50 to 55.00 per square v ; foot to purchase the City Hall Annex property. Since 1989, the commercial markets in the community have suffered more than any other segment of the development industry. 4Shopp 6('---Centers continue to lose tenants, 7 foreclosures continue at a staggering rate, the RTC continues to sell developed properties for 30 to 40 cents on the dollar and there appears to be no end in sight. Why would any developer in his right mind pay the city between $7.00 and $10.00 per square foot in a depressed market, when 4 $4.50 to $5.00 was offered in an "up" market? i a? -. i IV CONCLUSIONS • The Willingham Space Needs study far exceeds the actual needs of the City • 70,012 square feet versus 121,970 sugare feet. • The cost of conversion of the Sun Bank Building to a City Hall is understated - 510.00 per square foot versus $45.00 per square foot. • The 136,000 square foot Sun Bank Building versus an actual need of 70,912 square feet forces the City of Clearwater into a developer's role, placing the city in direct competition with the local developers. • The value of the City Annex property is greatly inflated at $7.00 to $10.00 per square foot,.taking into consideration the urgency to. vacate it. • The Sun Bank Building has not been surveyed and-studied by professionals to confirm its viability as the City Hall. • The urgency expressed in the "Staff Report, Purchase of Sun Bank Building", when a 9.8 million dollar expenditure is being requested is questionable. • With so many options available for a new City Hall, have all possibilities been properly and adequately explored? "1 9 l V EXHIBITS I) Adjusted Space Needs Summary for New'C.ity Hall 2) Memo Jahn T. Peddy, Energy Manager re: Sun Bank Building' 3) Excerpts -","Space Utilization Study, Municipal 'Office Space Consolidation" City 'of St. Petersburg, Florida'(4 pages) 4) Description of Firm - Mudano Associates Architects, Inc.. (2 pages) • r 5, • E i r?k i (? AD,TUSTED SPACE NEEDS SUTADtURY FOR NEW CITY I-L LL f. bep: rtrrfe.?t 1um, ber or 1rmployefs Squpre FooU e :tNmive 5:??cec 56 18,158 Ci:v Cie-.I: r.ecor cs Center 10 2,574 3,655 a.1ve Ac'.icn 3 519 Ci:y Ce w?ris?ien 0 4,756 City'.;-.Gper 7 2,6?1 f Ecv-,,-mic 1,Jev"Oopmen't .2 698 Auc'ft 6 649 LegJ 8 2,962 '2rl•s & Recre-ation (includes some Ze:re:ctlon efifrlo`'ees not inctvded in oricinal s,adN, 24,5 8,801 Furn ) 1?C5111TC?5 14 5,366 Plmni,g & Development 61 14,650 N,blic In forma-Jon 3.5 1,794 F,:blic Wc-, s 52 14,8;7 'utilities 34 7,13$ [-Ancil!an- Rooms 6,658 EOC (Training Room) 1,500 5U TOT4L 281 P7,576 25% Grassing Factor 121,970 Police Caf,.r,I'micGtions or trice Intelli-Enfce 46.6 16,QDJ F TOTAL 327.6 ? 137,970 11 f C 1 T1'' or CLEAit14AT ER interdepartment Correspondence Shce-f' 10: Floyd G.- Carte!', General Services Director FR0f-ti: Jchn T. Pedc'y, Encr'gy IEanager- !% iV' SUBJECT: Sun Lank Building DATE: hiay 19. 1992 The Sun Banc; 91da. is a very eneroy inefficient structure. This is due to poor thermal efficiency and inefficient mechanical and electrical systenrs. A tv,,6-year history (5/90 through 4/92) of the electrical consumption was obtained from Florida Pov;er Cerp. (FPC). fhese records show for the latest 12-month period the subject building used 3,610,500 KwR and an average monthly demand of 920.41 kW. The cost of electrical po-•;er° for the subject building for this 12-moth period was $235,720.73. Eased on 67% occupancy makes the electrical cost $2.23/ft /yr. With full occupancy, it is estimated the subject building's electrical cost will be $316,240.00 or X2.41/f t2/yr. The ENERGY NEWS repots indicate that the average office building for the geographical area has, an electrical cost of $1.47/ft2 /yr. The City Nall Annex, v.hich is an old and eneroy inefficient structure, operates at an electrical cost of $1.65/ft2/yr. The City has several new eneroy efficient buildings whose electrical cost range from S.85 to 41.04/ft2/yr. The air conditioning system installed in the Sun Bank Building is the lov,est first-cost type of equipment that could have been used for this structure. It is also the most costly to operate. The eneroy consumption for the A.C. system installed in the subject building is 1.51 kti.h per delivered ton. The energy consumption for a chill water system similar to the one installed in the Annex is 1.12 kWh per delivered ton. The longevity of the type of air conditioning equipment installed in the subject building is i5 to 16 years. The existing air conditioning s steer introduces 8904 cfm of outside air into the building, This is one-third (1/3? the amount of outside air that i-muld be required to meet recommended requirements for proper indoor air quality, To increase the outside air to recommended quantities %%,ould require the installation of seventy-five (75) more tens of air conditioning equipment. The capital cost 5f this retrofit is estimated to ' be $50,000.00. More important, it v;ould add {0.19/ft /yr. to the electrical bill. The- plans indicate that there is a 45 k1'a step-down transformer on floors 3 through 9. This transfcr'r.er service`s the 200/110 requirements for a Given floor. With only 45,000 v:atts of pcvrer available per floor for FC's, typev.riters, word processors, calculators, ccpy r-achir,es, tall: liahtina, etc., the full utilization of the space will M.p c?YEI-el j' ,`.rcir'f:.1. 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H ^; ' U J W ?Z r U Mai U C.a J Yt r W ? J ? 'J C C/f O to .d Cn _? J C U ?A C • ? ? Gn ? r w i1 , C rJ y G r1ry :.1 • C .+ ? ? w+ N ` r u ., x `. CO) Q Z: a da , ? ? ^Cl', • ?. .--. "ZI • ° ?" tn ?U °' V U U Li C: o .. u _ o L7 ' t 1 J -' -? ca. , C . . v 4n o V1 C U v. G ? tQ Q mo' h w C I ., •-- U ° o C: C- tj DG !ti "' A ci ? lz? w o a3A? t' ? r. Li ? _ CT fn =13 [ U 1= C IONA "W c: Y O W • t! ^I J U 9T t i. i MEMEMMEM roes '?/.A.I® r IBEX 11 11 MUDANO ASSOCIATES ARCHITECTS, INCORPORATED Description of Firm Mudano Associates Architects, Inc. celebrates over twenty-seven years of 'a thriving, successful architectural practice. During this time we have designed and built more than 60 million square feet of buildings, 'ranging in type' from commercial shopping centers and corporate office buildings to recreation centers and educational facilities. Over the last thirty-five years, Frank R. Mudano, FAIA has been responsible for the design of more than $300 million dollars worth of projects. Mudano Associates offers our clients the following services: Site Analysis Land Use Planning Space Planning Master Planning/Site Design Landscape Design Construction Administration Architectural Design Construction Documents and Specifications CADD Technology Cost Estimating Building Systems Analysis/Studies PHILOSOPHY: The management framework of Mudano Associates Architects, Inc. is developed ,around the concept of the design team, where individuals from within the firm are selected for a particular job because of their specific expertise. Frank R. Mudano, FAIA, as Principal-In-Charge, retains responsibility for coordination of the design team and client. Mudano Associates also believes that longevity of personnel has a noticeable effect on overall client satisfaction. Over the past five years, we have averaged a total of twenty-two employees, maint;i-ining a minimum of three project teams at any one time. The current breakdown of staff consists of seven registered architects, one intern architect, one specifications writer, one CADD system manager, three draftsmen, three administrative personnel, and two contract administrators. Complementing our regular staff is a diverse and experienced pool of engineering consultants. From this impressive array, we are able to select-those firms who have the expertise required to solve specific client programs and building requirements. Mudano Associates' unswerving commitment to providing the highest quality architectural services available has,been its own reward, returning to us several awards for our work and a long list of satisfied clients, most of whom have returned to us with repeat business. 17 IF ./Ask I WENEEMEN FRANK R. MUDANO, FAIR President } RESPONSIBILITY: Mr. Mudano is the Senior Principal and founder of the firm. Frank directs the activities of the team including planning, budgeting, scheduling, documentation and personnel. He also participates in presentations and negotiations and obtains necessary project data and assists in establishing program requirements. Frank maintains a positive working relationship with the clients and consultants. Frank was honored in 1979 when the AIA elected him to the College of Fellows for his service to the profession. He is also a recipient of Florida Association/AIA Gold Medal, its highest honor. EDUCATION: Graduate - The Gilbert School, Winsted, Connecticut Georgia Institute of Technology - Bachelor of Science Bachelor of Architecture - 1952 Registered Architect - Florida 1958 - #2531 MARITAL STATUS: Married, 5 children EXPERIENCE-: Mudano Associates Architects, Inc. Southeastern Engineering Company, General Manager PARTIAL LIST OF Clearwater YMCA, Clearwater, Florida rMAJOR PROJECTS: Belleview Biltmore Spa, Belleair, Florida Countryside Mail, Clean;pater, Florida Barnett Bank, Clearwater, Florida The Long Center, Clearwater, Florida Florida Sheriff's Youth Ranch, Safety Harbor, FL Cypress Trace Condominitcros, Safety Harbor, Florida 18 % June 0, 1'392 RPHEN SALIGA CASL R AR. -' RWATERJI,34t;m TO*. Mayor and ComminoJor:uru, City of Oloarvin:or Vlorida. FROM: Staphun A. SuIiCa, Citizen/Tnxpayor. SUBJECT*. Oun Bank Building as a City Hall. (?t??altf??i? I u6geo vilth 13111 Jonson, Coalition of Cluurrrratur Homomincru l Associations, with my own personal obsu.,?vutioiirr and mwicnta. Th profoasianal P03.lstura idulltify tau as "...n ropru:3entativo aumplo of residents..." bocuuse, till the tuxpayoru I poraosrall.y know uro AGAIIIS'T nponding 410-1.1ILLIM for a Tu j L:uhal City hull. Thosa I know, would rather give our overworked Comaissioners and City start' a raise, to prune the local oconomy, instuad of "padding the packets" of sa rev) stockholders (out-of-townurs ?) of the sun bank "Group". The "t30STO14 TFA P1U=11 sweeping the country is u s OKOUS Tux;3uyers Revolt aguinat wasteful spending and Special. Interests' influence on our elected officials. :,U%aTIONS L EM ASkal*., 1. V1hy the SUDDEN emergency to r7ovo 150 City or;rployees to Sun Bunk? 2. Is sun'13ank losing money? In the City buying to "save" an S & L crisis? 3. ?'' 1hy only OIZ OPTIOII offered to you for a YES or 110 decision? 1.1here are alternative proposals...liko the Mans building, the IZ11171 COMITY OmQ;D building acroso the stroet from prosant City 11a11, or a plan to build on-to the present City hall. over the parking lot? 4. Ho-a can "Smart People" make outlandish claims that 1110 more City Employees will "revitalize Downtovrn", when 1.3-dIILLIOJ tourists visit Cleanriatar each year, and spend at the rate of 42-MILLION per day has failed to "revitalize" ovor these past yearns? 3. iao o:ia accepts the ";?oL- Pot,er-To-l'cxy-Yuul" deceptive accounting plea. ,t . t . Is.T'S I10T FORCIET: The US.t is -4-TRILLI0I? in debt--•3obo uro decli.nint, ut the rate of 400 000 pur weak--buying Tourists are duclininj; due to dapreio:3cd econciny---Proporty values are declining; with the Tux j ruse--All iadicators prodict u serious decline Taft;,r till elect ion--tiyinr, tourists will U1301111d, oocuping; the Cold Ilorth_.hursgary ,.rid iio Jobs. `].'he Jdl Gl?iiSS City Holl viould be very vu iumblo to resentful, hungary, no Joou 'Tourists" Let's take off otir liooo Colored Gltrs: e:r:..Iook rat what im havc...be thankful..,and hove r.LIRCY on the IF'E3TM flENERAT1011s.... I;0 hDRE DEBT- ----112DUCE TlZtX'Ji RoUt?crctfzilly, ,A c;anon J?. ,5u1 i??a E C rte! G L lFG /[ f •J r F 3. Caoverremertt needs feedback from the people - Have you ever met an elected official who thinks she is out of touch with her constituency? If anything, most elected officials, and even gov- ernment administrators, think that they're in touch too well: If the ACLU or the NRA isn't on their case, then Parents Against Hormones or the Committee for Five-Week Months is phoning them at midnight. Claiming to know what the communit wants is the most popular lyric in a hundred song of policy advocacy heard every week in City Hall. Yet these debates, in which advocates claim to represent the point of view of thousands of people they have never met,rtend to take place a t?_he bigi it &e, where a few new 1 rggamsxompete forlimitednew funding. Meanwhile, no one is asking what welfare recipients think about the quality of their job counseling, or how well Medicaid patients feel they have been treated by their doctors. No one is asking residents to evaluate the quality of such bread-and-butter services as street repair or trash collection. As we in government become swept up in the joy P of innovation, we overlook the central questions that politicians and administrators should be asking: Ha good a job are we doing already? How well do our "customers" ?--• the people who use olir services and pay for them -- think we are perforating? 41 Not all administrators or politicians are eager for the reply. If attorneys are loath to ask questions whose answers they don't already know, man politi- cians and public administrators ' et downri tit sic at t e t-ou TT" But what t "ubl'ic thinks about Po, quality of government -- focusing on outcomes, noinputs may be as close as we'll ever come to the bottom line 4 L a non-profit npII1y. Around tltfcountry, those /cit-mans ers,, ounci members ano county commis- San`rs w to arbor an eittrepren curial spirt are i pn aside to bring the typical wi ??'governuient --- no dust ar interest groups, such as the of Commerce or theleague of representative sam Ie of resi- My colleagues and I have collected and integrated surveys done in more that??ities and counties. In the surveys, residents were ask d to evaluate city 'services -- to quantify ho wellolice protected the community, the value of library services, the quality of 'arks. More than a _ uarter of a iliion eo le e?spsRd.?t4..t1 outcome surve s, The result is a mt of solid enchma s of service quality. Now any local government can compare its own bottom line to the bottom line of others. Govern- ments can discover if a "gpod" evaluation of local police service is better than the average police rating. Administrators can learn whether a "fair" rating is all that can be expected of a street repair service, Surveying citizens is not difficult. Simple precepts and assistance (ram a college extension program can provide the basics. Lspecially useful, even for those jurisdictions that already have conducted their own surveys, is a template fo u iform sur% uestfor?s which is.. -vai a e ram the Center ar urv ? W, I ns; in t its way, resuf s ease y catt?c it into a na ojla] debase for jaterjurisdictional c Lseon . - Comparisons among locales can provi ee heightened motivation to improve, just as comparable data about educational quality drives school districts to shoot for higher goals. .The '90s are shaping up to be a decade running j all of reaft , `materially unllke the uff-and-puff 'SOs. ' is is t e time for local and state goverrunents, and even the feds, 14.Vt seririous_abouto rin i ub . o inion into sincere o -- to.dare tolls w al ye e rea??ak clco tot ye the result! wtth natt? oan?tirtg as we develop standards o excellence-fo? pttblic.trust, a Thomas I. Miller, director of research and evaluation for the city of Boulder, Colo., Is founder of the Center 4--- He - k Is also co-author, svith Michallo A. Miller, of Citizen Surveys; How to Do Them, How to Use Thom, What.Thoy Moan, published !7y the latemational CIWCounty Management Association, a .40 GavernkV Mbg&A e; d10rlbuled by 6uippi Wwai d Now Servke? P,&. I ??J)-- gez eBQz P .L (( Notes for the Clearwater City Commission Meeting June 9, 1992 Reference: Sun Bank Building. Good evening. I would like to bring up, three points of order regar- ding the proposed building purchase.' They deal with: 1. Recorded position of the City Commission regarding the future of Clearwater's existing city hall building; 0 2. Legal and/or appropriate use of budgeted funds; and 3. Need for a general referendum for a decision of such magnitude, in terms of dollars spent and in' terms"'of relinquishing our existing city hall. 1 1. Recorded position of the City Commission , regarding the future of this city hall building. 0 It is any opinion and desire as a voter and taxpayer, that the city commission go on record officially, as to its position regarding the future of our existing city hall. Until the commission establishes its position and demonstrates a need for another city hall, it should not be procuring a building such as the Sun Bank Building for a new city hall. 0 When the city commission jumps at every possible opportunity to procure or build a new city hall with out first having set some sort of policy, voters such as myself view the city commission as functioning in a vacuum and some what at a loss of control over its own destiny. • If the city indeed wants and can justify a new or different city hall, it should plan and bud- get for it just like other budget item. !k • . 2. Legal and/or appropriate use of budgeted funds. 0 If the city commission is going to spend $10 million of city resources, it should be done in a planned and organized manner, such as through the budget process. A procurement of this magnitude should be made only after thorough and open planning and budgeting. To take money that has been set; aside for other purposes, without going through the budget process, deprives citizens such as my- self, a fair and due process. 0 Within the federal government it is a felony to spend money for procurement not general- ly designated for such procurement. If it is a felony to misdirect appropriated money with- in the federal government, why should Clear- water voters tolerate it within the city govern- ment? If it is not illegal for Clearwater to misappropriate money, it certainly is immoral. 0 Going around doling out money for unbudge- ted items to the tune of $ 10 million makes a mockery out of our budget process. e 3. Need for a general referendum for a decision of such magnitude, in terms of dollars spent and in terms of relinquishing our existing city hall. ® I don't know what the guidelines are for putting issues to general referendum. But, I do know that when you talk about replacing our city hall,, every Clearwater citizen should have a right to participate in approving. 0 Our existing Clearwater City Hall has a beau- tiful view and a unique location. It belongs to the citizens of Clearwater. Any attempt to remove or replace it should be approved by its owners, the citizens of Clearwater, a process commonly referred to as a general referen- dum.