REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 4 with Wallace Roberts and Todd, LLC (WRT) to Add Two Study Cities to the City Hall Relocation Study and Related Budget Amendment
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing, and Transportation Development
BACKGROUND
The City is nearing the completion of a planning effort to prepare a Downtown Precise Plan and Form Based Code to guide the redevelopment of the City’s former Downtown area. The scope of work for the Downtown Precise Plan was expanded in response to a petition from Reclaiming our Downtown (ROD) to include a financial analysis of the costs and benefits (City Hall Relocation Study) associated with moving the City Hall to the Downtown. The City Council made this addition to the scope of work for the City’s consultant, WRT, at the May 24, 2022 Council meeting, following Council consideration of a written petition submitted by resident Mary Grizzle on behalf of ROD. In June 2022, the City Council subsequently approved the allocation of funds for the requested Study through the budget process, and then on October 18, 2022, the City Council took actions to allow for the commencement of the scope of work by WRT on the City Hall Relocation Study.
The City Hall Relocation Study scope included an evaluation of six other cities as a comparative case study. WRT, in conjunction with subconsultants, analyzed 18 example sites and recommended six sites (Long Beach Civic Center, Watsonville City’s Hall, Sonoma County Government Center, Malden Massachusetts’ City Hall, Redwood City’s City Hall, and Mountain View’s City Hall) for further analysis to provide insight into the potential costs and benefits of locating a city hall in a similar Downtown context. Staff reviewed the proposed sites and WRT presented the six sites to the Downtown Community Task Force (DCTF) on March 14, 2023.
A second written petition submitted by resident Mary Grizzle on behalf of the members of ROD was heard at the May 23, 2023 City Council meeting. The petition stated that while ROD agreed with four of the cities presented at the March 14, 2023 Downtown Community Task Force meeting, they are deeply concerned that two of the cities (Watsonville and Sonoma) do not meet ROD’s criteria nor the spirit of the study, and should be replaced with Winter Garden, Florida and Sandusky, Ohio.
DISCUSSION
As of the date of this staff report, the City Hall Relocation Study is approximately 50% complete. The full scope of work is attached to this report as Attachment 2 for reference. Listed below are the tasks from the approved scope of work with the status of each task indicated.
• Project Initiation - (task completed)
o conduct targeted background research and mapping needed to understand the existing Civic Center site and previous studies.
• Program Confirmation - (task completed)
o review of provided documentation related to projected civic center spatial needs and document a high-level spatial program organized by department according to data provided.
• Economic Assessment - (task completed)
o identify up to six examples of City Hall relocation projects across the United States to serve as case studies. The Team will seek examples (successful and otherwise) that are comparable to Santa Clara and/or the downtown site (e.g., similar City population; site adjacency to transit, university, or historic neighborhood) that have a range of outcomes, including examples with more and less resulting investment. For each case study, the Team will conduct research to understand each city hall project including contacting each city to seek an interview with staff about the project, including benefits, challenges, and lessons learned, and report on outcomes, including the degree to which private investment has followed public investment.
o Complete an illustrative economic impact analysis that considers potential localized spending effects on downtown from a new City Hall, as compared to the baseline site use (a comparably sized future office building).
• Criteria and Site Comparison - (task completed)
o conduct a criteria-based process for evaluating potential Downtown sites for a relocated City Hall. The outcome of this process will be the creation of a qualitative evaluation matrix followed by City Staff and Task Force confirmation of a preferred downtown site for a relocated City Hall.
• Concept Testing and Test-Fitting - (task in progress)
o develop up to three conceptual approaches to relocating city hall downtown on the preferred downtown site. And, for the existing civic center site, WRT will estimate development capacity based on density formulas and informed by typical building forms, which will inform the economic evaluation of potential relocation.
• Financial Evaluation - (task in progress)
o perform a financial analysis to assess the concepts for relocating City Hall and offices to downtown.
• Concept Refinement - (task upcoming)
o based on City and DCTF feedback, and informed by the financial analysis, the Team will refine land use and building block concepts for Downtown and the existing Civic Center site.
• Final Options Report - (task upcoming)
o document the final site concepts and economic analysis in a concise report, with narrative, graphics, and relevant tables.
While a substantive portion of the City Hall Relocation Study scope has been completed, the site comparison analysis has not been finalized and it would be possible to add two additional sites for the full analysis without significant cost or additional time required. It should also be noted that approximately $10,000 of contingency remains within the original WRT contract for preparation of the Precise Plan and Form-Based Code. However, this contingency needs to be maintained in case there are additional costs to completion the CEQA analysis or other elements of the original scope of work.
Staff is accordingly requesting that the City Council grant approval to the City Manager to amend the City’s contract with WRT to add two study cities, Winter Garden, Florida and Sandusky, Ohio, to the approved scope, which would fall under the Economic Assessment task. The cost for the added study cities is $16,000. This would be Amendment No. 4 to the contract and will maintain the three-year term extension option provided in the Original Agreement, with a termination date of December 31, 2024.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
The original scope of work for the City Hall relocation study was estimated at $353,360. This project was established in the General Government Capital Fund and was funded as part of the FY 2022/23 and FY 2023/24 Capital Improvement Program budget adoption, with $325,000 appropriated from the General Fund. The remaining $28,360 was transferred by Silicon Valley Power’s Electric Yard Buildings and Grounds project budget for facility assessment of buildings occupied by SVP, which was approved by the City Council on October 18, 2022.
The current proposed scope of work has a cost of $16,000 which is recommended to be funded from the General Fund’s Budget Stabilization Reserve. The table below summarizes the budget action for FY 2023/24, which is subject to the approval of the FY 2023/24 and FY 2024/25 operating budget.
Budget Amendment
FY 2023/24
|
|
Current |
Increase/ (Decrease) |
Revised |
|
General Fund |
|
|
|
|
Expenditure |
|
|
|
|
Transfer to the General Government Capital Fund |
$90,283 |
$16,000 |
$106,283 |
|
|
|
|
|
|
Fund Balance |
|
|
|
|
Budget Stabilization Reserve |
$45,847,152 |
($16,000) |
$45,831,152 |
|
|
|
|
|
|
General Government Capital Fund |
|
|
|
|
Revenue |
|
|
|
|
Transfer from the General Fund |
$90,283 |
$16,000 |
$106,283 |
|
|
|
|
|
|
Expenditure |
|
|
|
|
Precise Plan for Downtown |
$0 |
$16,000 |
$16,000 |
COORDINATION
This report has been coordinated with the City Manager’s Office, the Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Authorize the City Manager to execute Amendment No. 4 to the Agreement with Wallace Roberts and Todd, LLC (WRT) for the City Hall Relocation Study, in a final form approved by the City Attorney, at a total cost not to exceed $16,000, funded by the General Fund; and
2. Approve the following FY 2023/24 budget amendment, subject to approval of the FY 2023/24 and FY 2024/25 operating budget:
A. In the General Fund, increase the transfer to the General Government Capital Fund by $16,000 and reduce the Budget Stabilization Reserve by $16,000 (five affirmative Council votes required for the use of unused balances); and
B. In the General Government Capital Fund, recognize a transfer of $16,000 from the General Fund Budget Stabilization Reserve and increase the Precise Plan for Downtown project by $16,000 (five affirmative Council votes required to appropriate additional revenue).
Staff
Reviewed by: Andrew Crabtree, Director, Community Development Department
Approved by: Jōvan Grogan, City Manager
ATTACHMENTS
1. Amendment No. 4 with Wallace Roberts and Todd, LLC (WRT)
2. Scope of Work - City Hall Relocation Study
3. Original Agreement and RTC19-1006
4. Amendment No. 1 and RTC 21-667
5. Amendment No. 2
6. Amendment No. 3 and RTC 22-1204