Honorable Mayor and Members of the Hermosa Beach City Council
Study Session of October 2, 2019
Title
PUBLIC-PRIVATE PARTNERSHIPS (P3)
(City Manager Suja Lowenthal)
Body
Executive Summary
In anticipation of future discussions regarding civic facilities and other significant infrastructure projects throughout the City, this Study Session is intended as an introductory informational workshop on the structure, principles and benefits of public-private partnerships (P3).
The Study Session format will allow staff and industry professionals to cover the elements of public-private partnership financing, provide examples of successful models elsewhere in the region toward the development of comprehensive civic facility projects, and an opportunity for Councilmembers to consider and ask questions regarding potential P3 project options moving forward.
Background:
In addition to streets, sewers and stormwater systems, civic facilities are an important component of the City’s infrastructure. Unfortunately, the City’s facilities have been aging and their replacement has been deferred for many years. The current City Council has demonstrated a commitment to addressing these needs by making long-term financial planning and review of City infrastructure and facilities a top priority in its capital improvement program and strategic planning efforts.
Toward this end, over the past few years, facility studies have been commissioned to assess the structural/seismic conditions (CivilSource Study, 2015) and space/operational needs of city buildings (Mary McGrath Architects Assessment, 2016). In parallel with these studies, a facilities workgroup was established comprising of representatives from the departments of Police, Fire, Public Works, Finance and the City Manager. The workgroup enlisted the services of Mary McGrath Architects to assist in developing a City Facilities Strategic Plan. This high-level plan looked at: 1) Space Needs; 2) Facility Improvement/Development Scenarios, and; 3) Preliminary Order of Magnitude Costs (range of costs) for the Police and Fire Stations, City Hall and Public Works Yards facility. The draft plan and development scenarios were presented to City Council for consideration and discussion at a facilities study session on May 4th, 2016, with the goal of guiding the community toward a long-term vision for core facilities and helping the City Council prioritize and inform capital improvement decisions and potential funding alternatives.
Following Council direction, in March 2016, the City issued a Request for Proposals to identify a team qualified to perform a community wide library services needs assessment in two phases. The first phase of work included conducting a space needs assessment with supporting community outreach, and the second phase of work would include using the identified space needs to develop conceptual plans and related budgets. Griffin Structures, Inc. was selected to perform the work and began Phase 1 in the fall of 2016. The final Library Needs Assessment report was submitted to the City in July 2017. Following completion of a Phase 1 in 2017, Griffin Structures, Inc. and City staff proceeded with development of conceptual site plan options and related budget estimates, which were presented to City Council for consideration at a study session in October 2017. Ultimately, City Council and the City Manager’s Department opted to hold off on further investment of consultant time until funding opportunities were fleshed out, and placed the project on hold.
Since 2017, the City Council has made important decisions related to the City’s Fire services, the future of our Fire station and the closure of Bard Street, as well as the prioritization of the City’s Corporate Yard Facilities renovation project (CIP 615). Each of these decisions has significant impacts on the City’s budget and strategic planning of future civic facility improvements.
As a basis for future discussions regarding the funding and prioritization of replacement or renovation of civic facilities, outlined below is a very general summary of current building conditions.
Facilities Analysis
City Hall
The existing City Hall was built in the 1960’s and then renovated in 2000. Of the existing facilities studied, this building could serve the City for another 50 years if renovated and either reorganized or expanded to meet current staffing and service levels. Parking for staff and the public is one of the biggest challenges in expanding City Hall in its current location.
Fire Station Remodel
Following the transition of fire services to the Los Angeles County Fire Department, the City entered into a contract with the County to remodel the existing Fire Station per County standards. Demolition began in early October and the renovation will include a complete demolition of the second story, installation of a new roof, reconfiguration of the interior, including various other upgrades. The project is scheduled to be completed in March 2020.
Public Works (Corporate) Yard
The facilities at the Public Works Corporate Yard are obsolete. The oldest building, the maintenance shop, was constructed in the 19th century and the second oldest building has been in use for over 40 years. Per the CivilSource Condition Assessment Survey completed in June 2015, the site lacks basic storm water management systems and considerable maintenance and repair costs are anticipated in the years ahead. The replacement of this facility is necessary to providing a modern and safer work environment for public works staff. The FY2019-20 Adopted Budget (CIP 615) has funds set aside for the first of two phases toward the design and construction of a new City yard. Design plans for new corporate yard facilities are currently being developed.
Police Station
Similar to City Hall, this facility was built in the 1960’s and then renovated in 2000. However, the facility does not currently support modern policing requirements as its operational needs have outgrown the existing footprint. Furthermore, the existing police station was not built to the heightened structural criteria required for an essential facility. Renovating/relocating the Police Department has been a key element considered in previous facility strategic planning efforts by the City.
Library
The existing Library facility was built in the 1960’s and then refurbished in 2000. In 2015, the library was equipped with a new HVAC system. The facility is overcrowded, does not meet most current codes for accessibility, and its current footprint presents major service limitations for the community’s evolving needs. Although the building is owned and operated by the Los Angeles County Library system, the land is owned by the City of Hermosa Beach. This partnership presents an opportunity for creative funding scenarios with the County and through State grants.
Community Center and Clark Building
Although outdated and in need of major repairs, the Community Center and Clark Building were excluded from the draft City Facilities Strategic Plan scenarios presented to Council in May 2016 because the CivilSource study identified these buildings as being seismically sound, whereas other facilities presented more urgent action in this regard. However, if adequately rehabilitated, these facilities present significant potential for community programs and increased revenue-generating opportunities for the City.
Policy Considerations:
1) Is City Council interested in pursuing public-private partnership (P3) options for comprehensive civic center improvements?
2) Shall the City prioritize key civic facility improvements beyond those already listed in the Capital Improvement Program? If so, would Council be more comfortable with renovations or rebuilding of specific facilities?
3) Following today’s discussion, City Council may decide to bring this item back as a formal agendized Council matter in order to provide specific direction for staff regarding next steps.
Attachments:
1. SUPPLEMENTAL Introduction Slides (added 9-30-19)
2. SUPPLEMENTAL P3 Overview from Katherine Aguilar Perez (added 9-30-19)
3. Successful Public/Private Partnerships - from Principles to Practices by Urban Land Institute
4. Long Beach Civic Center Presentation
5. Link to October 4, 2017 Civic Facilities Study Session
Respectfully Submitted by: Nico De Anda-Scaia, Assistant to the City Manager
Approved: Suja Lowenthal, City Manager