Rancho Palos Verdes City Council
   

SEPTEMBER 5, 2006 RANCHO PALOS VERDES CITY COUNCIL - PALOS VERDES ON THE NET MODULAR BUILDING UTILITIES AND MAINTENANCE PROGRAM SEPTEMBER 5, 2006 RANCHO PALOS VERDES CITY COUNCIL - PALOS VERDES ON THE NET MODULAR BUILDING UTILITIES AND MAINTENANCE PROGRAM SEPTEMBER 5, 2006 RANCHO PALOS VERDES CITY COUNCIL - PALOS VERDES ON THE NET MODULAR BUILDING UTILITIES AND MAINTENANCE PROGRAM



TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS

FROM: ASSISTANT TO THE CITY MANAGER

DATE: SEPTEMBER 5, 2006

SUBJECT: PALOS VERDES ON THE NET MODULAR BUILDING UTILITIES AND MAINTENANCE PROGRAM

RECOMMENDATION

Adopt Resolution No. 2006-XX, amending Resolution No. 2006-41, the Budget Appropriation for FY 06-07, to increase the Public Works Building Maintenance Budget in the amount of $41,950.

BACKGROUND

On November 15, 2005 the City Council approved the project, site plan and budget for establishing a designated City Disaster Communications Center in a modular office building that would be installed in the unimproved area behind the Cable TV Studio. The Council also granted permission to Palos Verdes on the Net (PVN) to install a 24’x40’ modular building at its own expense next to the City’s new modular building. The informal agreement between the City and PVN was to split 50/50 shared expenses, such as the cost of the ADA ramp and electrical line installation.

During the spring of 2006, the City purchased its modular building and postponed installation until PVN had purchased its modular building, because the electrical, security system and phone lines were to be installed after both buildings were anchored in place. Staff preferred to synchronize the City’s delivery and installation schedule with PVN, because staff was concerned that an unsecured building on the premises for a length of time would attract vandalism.

On June 20, 2006 a new Lease Agreement was entered between the City and Palos Verdes on the Net. The new Lease Agreement stated that in exchange for the remaining two-year Cable TV Studio lease and $100,000 worth of Studio Equipment, the City agreed to:

1. Allow PVN to place a larger modular building on City property, and
2. Provide all the utilities, building maintenance and repairs for PV on the Net’s new modular trailer at no charge to Palos Verdes on the Net.

To accommodate the new Lease Agreement provisions, staff revised the original site plan and the scope of work for utility installation associated with the City’s Disaster Communications Center and PVN’s modular building. Staff considered the following factors:

1. Power Supply.

Staff originally planned to connect electrical power from the Cable TV Studio transformer to the modular buildings, so the modular trailers were positioned in a way to minimize the City’s costs by maintaining the shortest distance necessary for trenching and installing electrical lines. When the City granted a larger modular building for PVN, the City’s electrician determined the Cable TV Studio transformer would not sustain the increased power demand and recommended installing a separate transformer for the two modular buildings. Fortunately, the City has a used transformer in storage that will be installed as close to PVN’s utility box. However, the new scope of work for the electrical connection and installation has significantly increased the project cost.

2. ADA (Americans with Disabilities Act) Compliance.

The unimproved location for the two new modular buildings is bordered on three sides by an access road to the public works yard. To maximize usable land area, the City and PVN informally agreed to share an ADA ramp, so the entrances of both buildings are located on the same short side of the buildings. PVN’s increased building dimension from 24’x40’ to 24’x60’ necessitated reconfiguring the site plan for reasonable ADA accommodation. Under the original site plan, the longer building length would have pushed the ADA ramp 20 feet to the north, further away from the existing sidewalk that connected the Cable TV Studio parking lot to the modular buildings. Staff had limited options to accommodate PVN’s larger building with minimal impact upon other logistical details as well as the City’s finances. Therefore, staff revised the site plan (Attachment Three) by relocating the ADA ramp to the south end of the modular buildings to provide safe and reasonable ADA access at a minimal cost.

3. Plumbing Needs.

The modular building for Palos Verdes on the Net includes a restroom; the City’s Disaster Communications Center does not. Upon learning that the City agreed to provide all the utilities for PVN, staff began asking questions about the plumbing specifications. Staff discussed various options with the City’s plumber to determine how to best accommodate PVN’s water and sewer installation requirement in relation to the intricate web of utility lines and connections around the Cable TV Studio. Staff and the City’s plumber determined that the most economical and practical plan is to strategically stack the electrical, telecommunications, water and sewer pipelines into one trench from the utility connections by the Cable TV Studio to PVN’s restroom facility, which is also near the utility panels.

4. Telecommunications.
Prior to the new Lease Agreement with Palos Verdes on the Net, PVN agreed to be responsible for the telecommunications installation for both modular office buildings, so the City’s Disaster Communications Center’s budget only covered the phone equipment cost, not the installation. Under the new Lease Agreement, the City is responsible for providing telecommunications and staff incorporated the cost into the new budget as well as the new scope of work for utility installation.

DISCUSSION

As a follow up to the City Council approved Lease Agreement with Palos Verdes on the Net (June 20, 2006), staff has prepared a comprehensive budget of the City’s responsibilities to provide Palos Verdes on the Net (PVN) with telephone, utilities, connection to the City’s alarm system, building maintenance, including plumbing and electrical repair work, and janitorial service for PVN’s new modular building. Despite the changes to the scope of work and challenging site limitations, staff was able to accommodate the modifications within a modest budget. Staff is requesting a budget adjustment of $41,950.

The budget is based upon cost estimates received from the City’s regular contractors and from historical expenditures associated with the temporary PVIC modular office and Cable TV Studio. Staff has divided the budget into two sections: A) One time Utility Installation Costs and B) Annual Utility Service and Maintenance Costs.

A. One-Time Utility Installation and Connection Costs

Utility

Cost Estimate

Sewer/Water

$8,600

Electrical

$18,900

Telecommunication and VOIP phone equipment

$7,500

Security Alarm System

$700

Sidewalk repair and removal for utility undergrounding and ADA compliance

$600

One-Time Expenditure Subtotal

$36,300

Budget Allocation from

Emergency Preparedness Budget

-$9,500

Total Installation Cost

$26,800

B. Annual Utility Service and Maintenance Budget

Type of Service

Annual Cost Estimate

Water

$500

Electrical (24-hr A/C and PC’s)

$8,500

Telecommunication and VOIP phone equipment

$500

Security Alarm System

$500

Verizon analog phone line service (dedicated line for alarm system)

$150

Custodial Service and supplies

$6,500

General Building Maintenance

$3,500

Subtotal

$20,150

Existing PW Bldg Mt Budget Allocation for

PV on the Net

-$5,000

Total Annual Maintenance Cost

$15,150

Staff identified an additional $6000 from the City’s Emergency Preparedness budget to supplement the original $3500 allocation for electrical work associated with the City’s Disaster Communications Center. Hence, a total of $9500 from the Emergency Preparedness Budget will partially cover the increased electrical installation cost.

Therefore, the total budget adjustment requested to execute the provisions granted in the new Lease Agreement with Palos Verdes on the Net is $41,950.

FISCAL IMPACT

Palos Verdes on the Net donated the Cable TV Studio Equipment valued at approximately $100,000 and the remainder of his two year lease to the City in exchange for a new Lease Agreement to locate a modular building on City property with utilities installed and serviced at the City’s expense.

The installation of utilities for Palos Verdes on the Net modular office building is an unbudgeted item and the on-going utility service and building maintenance expenditures were underestimated in the June 20, 2006 staff report. Staff requests Council’s approval for a budget appropriation of $41,950 from the General Fund Reserves to the Public Works Building Maintenance FY06-07 Budget. Attached to this staff report is the Statement of Estimated General Fund Reserves.

PREPARED BY

Gina Park
Assistant to the City Manager

APPROVED BY

Les Evans
City Manager

Attachments:
A. FY 06-07 Statement of Estimated General Fund Reserves
B. Draft RESO 2006-XX
C. Revised Site Plan
D. Original Site Plan
ATTACHMENT “B”

RESOLUTION NO. 2006- XX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS
VERDES, AMENDING RESOLUTION 2006-41, THE BUDGET APPROPRIATION FOR FY06-07, TO INCREASE THE PUBLIC WORKS BUDGET FOR BUILDING MAINTENANCE SERVICES

WHEREAS, Section 3.32 of the Rancho Palos Verdes Municipal Code provides that all expenditures in excess of budgeted allocations must be by supplemental appropriation of the City Council;

WHEREAS, on June 6, 2006, the City Council of the City of Rancho Palos Verdes adopted Resolution 2006-41, approving a spending plan and authorizing a budget appropriation for FY06-07; and

WHEREAS, on June 20, 2006 the City Council agreed to provide Palos Verdes on the Net with telephone, utilities, connection to the City’s alarm system, building maintenance, including plumbing and electrical repair work, and janitorial service at no charge during the term of the lease for the new Animation Studio; and

WHEREAS, City Council approves the budget adjustment of $41,950 for said utility and maintenance expenditures.

BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES:

The following adjustments be made to the FY06-07 budget from General Fund Reserves:

Increase the General Fund budget as follows:
Public Works Program #101-3008-431-43-00 Building Maintenance $41,950

PASSED, APPROVED, AND ADOPTED THE 5th DAY OF SEPTEMBER 2006.

___________________________
MAYOR

ATTEST:

______________________
CITY CLERK

State of California )
County of Los Angeles )ss
City of Rancho Palos Verdes )

I, Carolynn Petru, City Clerk of The City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2006- was duly and regularly passed and adopted by the said City Council at regular meeting thereof held on September 5, 2006.

______________________________
CITY CLERK