REPORT TO COUNCIL
SUBJECT
Title
Discussion and Action on Contracting with the Current Downtown Precise Plan Consultant, WRT, to Prepare a Financial Analysis for Moving City Hall to a Location within the Eight Blocks of the Original Downtown (Lafayette, Benton, Monroe, Homestead)
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency, and Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
At the April 19, 2022 City Council hearing, a written petition was submitted by resident Mary Grizzle on behalf of the members of Reclaiming our Downtown (Attachment 1) requesting that the Council agendize a discussion and action for contracting with the current Downtown Precise Plan consultant, WRT, to study the four following financial benefits of moving City Hall to a location within the eight blocks of the original Downtown (Lafayette, Benton, Monroe, Homestead):
1. The financial benefits and construction savings of moving City Hall to an 8+ story mixed-use (offices) building;
2. An updated and complete analysis of the advantages of selling the acreage used by City Hall on its current location on Warburton Avenue;
3. The substantial increase in private investment after a City Hall has been brought back to Downtown as evidenced by several other American cities studied by Reclaiming our Downtown; and
4. Financial benefit of a “completed Downtown” to the tax revenue of Santa Clara.
The City Council approved placing the item on a subsequent agenda for further study and discussion.
DISCUSSION
At the December 16, 2021 Downtown Community Task Force (DCTF) meeting, the DCTF asked a similar question of the City’s consultant assisting with the preparation of the Downtown Precise Plan (WRT). WRT provided the following information on scope and schedule to the DCTF along with a potential cost of $258,000 - $334,000.
Potential Study Scope:
• Land Use Layout Options
• City Hall floorplans, and floor plates are specific to that type of use (council chambers, permit center, etc.)
• Economic Analysis, which should include:
o Look at existing City Hall property and land value, as well as, the land value of the property downtown. What would be more beneficial to the city cost wise?
o Analyze other uses on the existing City Hall site.
o How to pay for the move? (bond, sell existing city hall property?)
o Possibility of a public/private partnership (selling city owned land)
o Consider prevailing wage and construction costs in the analysis
o Review the example sites mentioned by the DCTF, how did they move their city halls, how does Santa Clara compare to them, and what constraints Santa Clara may have that these cities in other states may not have had.
Potential Process and Timeline (six months +/-)
• Program Confirmation
• Concept Development and test-fitting
• Financial Evaluation
• Additional Concept Refinement
• Final Options Report
• Assume three meetings with the Downtown Community Task Force and other necessary team and city coordination meetings.
This information provided to the DCTF by WRT was preliminary and further refinement and detail would be needed to define a scope of work to study the financial implications of moving City Hall to a location within the Downtown Precise Plan boundary. There is currently no budget associated with this request and a funding source would need to be identified.
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(b)(5) in that it is an administrative activity that will not result in direct or indirect physical changes to the environment.
FISCAL IMPACT
There is no fiscal impact associated with this report except for staff time. Should the City Council direct staff to work with WRT on a contract amendment with a scope of work to study the financial implications of moving City Hall Downtown, an item will be placed on a future City Council agenda with a budget action to fund the contract amendment for up to approximately $334,000. If direction is provided to fund the contract amendment, the use of General Fund Land Sale Reserve funds would be needed to fund the study. It should be noted that the potential use of these funds shall be made within the context of ongoing General Fund budget constraints and other unfunded Council priorities.
COORDINATION
This report has been coordinated with 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.
ALTERNATIVES
1. Direct staff to work with WRT on a contract amendment with a scope of work to study the financial implications of moving City Hall Downtown and the associated cost for action on a future agenda.
2. Take no action.
3. Any other City Council Action, as determined by the City Council.
RECOMMENDATION
Recommendation
Staff makes no recommendation.
Staff
Reviewed by: Andrew Crabtree, Director, Community Development Department
Approved by: Rajeev Batra, City Manager
ATTACHMENTS
1. Written petition submitted by Mary Grizzle