Title
SUBJECT: Study Session to Allow for Council Direction on the Proposed Police Headquarters and Fire Facility Including, but not Limited to, Sizing and Configuration, Financing Structure, and Funding Requirements
REPORT IN BRIEF
Study Session to allow Council direction on the Proposed Police Headquarters and Fire facility including, but not limited to, sizing and configuration, financing structure and funding requirements.
RECOMMENDATION
Provide staff direction on next steps for the proposed Police and Fire facility sizing and configuration, financing structure, and funding requirements.
Body
ALTERNATIVES
None.
AUTHORITY
City of Merced Charter, Section 200
CITY COUNCIL PRIORITIES
FY 2019/20 City Council Priorities
DISCUSSION
Over the past year, several steps have been taken to continue the discussion on Public Facility Improvements, including hiring LPA, Inc., in partnership with MWL, Inc., to perform a Needs Assessment related to a Police Headquarters. A draft report of the space needs for a Police Headquarters was provided to the City this past June. The draft report is included for Council’s consideration. LPA, Inc., and MWL, Inc., will be presenting their preliminary findings to finalize the report. Once the Needs Assessment is complete, LPA, Inc., can then begin the initial design and cost estimations needed to evaluate funding for this project.
While the Needs Assessment was taking place, staff also worked to negotiate the sale of the Mansionette Ave. property to Valley Children’s Hospital. Direction was provided to the Office of Economic Development to issue a Development Opportunity Request for Proposal (RFP) for the former Sun-Star facility. The RFP will be issued on September 30, 2019. Proposals are due November 8, 2019, to allow for the selection of a developer for the re-use opportunity by late December 2019. Proceeds received related to the sale of these properties are to be returned to the Police Headquarters Project Fund, adding to the already accumulated PFFP funding.
In addition to evaluating properties, staff have also been taking the necessary steps to prepare the agency financially, should the Council choose to exercise bonding options. The City has a retainer agreement with Fieldman Rolapp & Associates to provide financial advice related to such matters. As a result of their efforts, the Finance Department has updated several policies, is increasing the City’s capacity to better manage its Treasury Pool, and continues to seek out options that will provide the greatest financial flexibility for the Council on a go-forward basis. Fieldman Rolapp & Associates will also attend the Study Session to provide input on available resources, Assessed Value growth rates, and financing options. LAP, Inc., has offered to bring a subject-matter expert that specializes in public-private partnerships to add to the financial options discussion.
Staff are seeking direction on all aspects of the project in order to take the next steps for design and financing.
IMPACT ON CITY RESOURCES
No appropriation of funding is needed at this time.
ATTACHMENTS
1. Police Headquarters Presentation (from the August 5, 2019, Council meeting for background information)
2. Draft Needs Assessment