Boise City Mayor’s Budget Team
Recommendation for the March 26, 2003 Meeting
TO: Members of the City Council Date: March 27, 2003 1. Library—Demolition of former Ridley Grocery Store building at Evergreen Plaza— Offer for $81,637. The Evergreen Partners, LLC are the owners of the Evergreen Plaza shopping center in West Boise where the City of Boise has purchased three acres for a future branch library facility at 3155 N. Cole Road. The Evergreen Partners are anxious to see the former Ridley Grocery Store building removed from the property. It is an eyesore, a target for vandalism, and a liability risk to the City of Boise. The Library Board and City Council members have been informed of the theft of copper electrical wiring from the building that was discovered some months ago. The thief could have been killed in the attempt to take the wiring, though very fortunately that was not the case. Weekly inspections by the Library’s Maintenance Mechanic reveal repeated attempts to break in through the roof, through doors that have been welded shut against illegal entry, etc., and is an ongoing expense to address those attempts. Mr. David Southers is a managing member of the Evergreen Partners and has submitted a proposal dated March 19, 2003 to “…furnish all materials, labor, insurance, EPA notification, license and dump fees to demolish and properly dispose of all of the debris from the store at the above mentioned site.” The price offered by Mr. Southers is $81,637.00 and includes removal of all asbestos roofing materials. BPL has contacted Mr. Southers after receiving his proposal. He is aware that the City of Boise will need to develop specifications and go out for a formal bid for demolition of the former Ridley grocery store building, and he has informed that he will submit a formal bid response if the City’s bid specifications for demolition of the Ridley building are issued. Mr. Southers has also been informed that there are PCBs in the light ballasts for the building that will need to be removed as well. Earlier, Ron Redmond, Assistant City Engineer in Public Works and currently project director for the branch library projects, had obtained a preliminary cost estimate for this demolition and hazardous materials work from CSHQA for somewhere between $300,000 to $400,000. Mr. Redmond advised that some involvement from an architect would need to occur because of structural issues that could negatively impact the end of the Joann’s Fabric store that connects to the Ridley building. That could certainly be addressed in the demolition bid specifications, if BPL can move forward. The Library recommends that the City bid the project, using specifications developed by Public Works. Mr. Southers has indicated that he will bid on the project. If the building could be demolished and the property could be prepared to eliminate liability issues and to enhance the site for the estimate by Mr. Southers, it would appear to be a good value for the City. Fiscal Impact: The demolition and site cleanup costs are one-time in nature and could appropriately be funded from one-time sources. The City contingent account has about $280 thousand available.
MBT recommended action: Approval of a project budget of $82,000 to facilitate a bid for demolition and site clean up of the Cole and Ustick branch library site, with funding from the City contingent account. The actual project budget may be approved by City Council if the bidding for demolition project proves to be feasible and financially viable. 2. (Routine – marker) Library – Request for a budget “marker” for $4,415 in R&M Building and Grounds. The warehouse property purchased by the City of Boise on October 31, 2002, formerly known as “Shaver’s, Inc. Warehouse” at 705 S. Eighth Street has recently been discovered to contain an aboveground natural gas line that services the Orson Merrill property at 703 S. Eighth Street. This line originates at an unprotected meter at the south end of the warehouse and runs along the building foundation on the east side immediately in front of the staff parking places. Both the PDS inspector and the inspector from Intermountain Gas found this installation to be in violation of current Boise City Code although the line has been in place, unrecognized as a natural gas line by library staff, for many years. Both Kent Rock of Risk Management and Corey Pence of Safety have agreed that this is a liability issue for the City of Boise. Intermountain Gas has been scheduled to bring underground natural gas service to 703 S. Eighth Street from the 9th Street connection point and to relocate the meter to the Merrill property at the Library’s expense. The Library may be able to pursue shared liability with the seller of the property. However, that would be a task that may need to be pursued after the immediate need is addressed. Fiscal Impact: Library is requesting a “marker” for this unexpected cost, in the event that it cannot be accommodated within available library funds at FY03 year-end. MBT recommended action: Approval of a marker of $4,415 to the Library in order to allow immediate action to correct the above ground natural gas line at the “Shaver’s site”. 3. (Routine – marker) Library – Request for a budget “marker” for $4,824 in R&M Building and Grounds. On Saturday, March 1, 2003, for a still undetermined reason, the FM-200 fire suppression system installed in the Computer Room as part of the Building Systems and Safety Upgrades discharged. Through this experience we learned that KJ Construction and its subcontractor Doherty Electric had neglected to program the new fire system control panel to receive signals from the Computer Room system and automatically call the Fire Department. We also learned that the FM-200 actually does release first and had there been a fire, would have suppressed it before the automatic water sprinkler fire suppression system discharged ruining approximately $1 million or more of computer equipment in the Computer Room. Currently, the FM-200 tank is in Salt Lake City at the nearest U.L. approved re-charging location. Cost to recharge the tank is $4,824. This incident is very disturbing to library staff and to the architects and engineers associated with the building upgrade projects. The City’s Legal Department has been informed of BPL’s concerns in this matter. There may be liability for one or more of the vendors and the Library will pursue that issue, but the immediate task is to recharge the system. Fiscal Impact: Library is requesting a “marker” for this unexpected cost, in the event that it cannot be accommodated within available library funds at FY 03 year-end. MBT recommended action: Approval of a marker of $4,824 to the Library in order to allow immediate action to recharge the fire suppression system in the Library’s computer room. 2
4. (Informational) Library--Virtual Reference LSTA Grant—Match of $5,003. Boise Public Library, Ada Community Library, and Albertsons Library at Boise State University collaborated on a Library Services and Technology Act grant application for a pilot project in which live “on line” virtual reference service can be offered by each of the partner libraries over the Internet 24/7. BPL received notification that the grant application was approved on March 21, 2003. Each library will pay an equal share of the $15,009 grant match for the $60,037 LSTA grant. The libraries will select, license, and implement a virtual reference software application from a major vendor (LSSI, 24/7, or QuestionPoint) to allow use of tools like live chat, page push, live links, cobrowsing, and remote real-time training functions. Boise Public Library’s share of the grant match ($5003) will be paid in part through an undesignated donation from the Sylvan Creek Family Foundation received earlier this fiscal year. The Library will request the balance of the grant match support from the Friends of the Boise Public Library. If the Friends prefer to use their funds for other library needs, potential matching funds are available in the undesignated Gift Fund that can cover the balance of the grant match. Fiscal Impact: No impact for the pilot project for the balance of FY 03 through March of FY 04. There is a potential for a future fiscal impact if staff recommends continuation of the service and if that recommendation is presented as a budget option for Council consideration in the FY 05 budget process. The Library staff will study the usefulness of the services, recognizing the need to compete for funds if the program seems important beyond the end of the grant funding. MBT action: The MBT acknowledged the report. 5. (Informational) Library: Increase of $9,093 for Towne Square Library Lease increase. Boise Towne Square Mall was sold by JP Realty, Inc. to General Growth Properties, Inc. early last year, but the City of Boise’s lease for Towne Square Library did not expire until December 31, 2002. In line with the Library Board’s direction, the Library administration has been in contact with General Growth and has been making efforts to renew the TSL lease since last summer. However, Mr. Collier Reid, the individual who was working with us to keep costs in line with what had formerly been paid to JP Realty, left General Growth Properties, Inc. in January or February 2003. Boise has continued to pay General Growth on a month-to-month basis at the FY 02 payment level while continuing to seek a new lease. Mr. Reid’s replacement, Ms. Carin Pittinger, has provided BPL with a revised proposal as of March 17, 2003, that nearly triples the cost for the Towne Square Library space. This proposal has been forwarded to Jim Wickham in the Legal Department for his review, which is still pending. Currently, the library has $14,520 budgeted for Towne Square Library costs in FY 03 and has been paying $1,210 per month. The current proposal from General Growth is for a lease that would begin May 1, 2003, and extend through January 31, 2005, with payment on a month-to-month basis at $3,028.65 per month for May through December 2003. BPL staff thinks it is unlikely that an agreement on the proposed lease could be reached by the May 1st deadline. Ms. Pittinger is proposing Common Area Maintenance Fees at the equivalent of $14.18 per square foot. She estimates real estate taxes at $3.50 per square foot. However, the total she proposes is less than the sum of those two items, as she suggests $16.55 per square foot for the 2,196 square feet of the kiosk library plus the community room. Annualized, the cost would be $36, 343.80 or 3
$21,823.80 more than previously allocated for this cost. Ms. Pittinger notes that CAM fees would increase by 5% each January of the lease term, in January 2004 and in January 2005. In discussion with Ms. Pittinger, she stated that General Growth Properties, Inc. does not normally allow a clause in the lease to allow tenants to terminate lease agreements with adequate notice. That lease provision in itself, if firmly held, may force the City of Boise to relocate the small branch library. BPL suggests that a letter from Mayor Terteling-Payne might achieve a reduction in the space cost or less restrictive terms, but the Legal Department should be consulted for their advice on the matter. Any relocation of the small branch library to a different storefront would require some one-time moving and remodeling costs as well as an on-going lease payment to the owners. Depending upon the size of the location, some equipment—shelves, tables, and computers—might be required. Relocation would be disruptive to current users and a new location might or might not have equivalent foot traffic and use. Even at the increased cost of space, BPL staff believes that the Boise Towne Square is a good location for the kiosk library, if other lease terms from General Growth Properties, Inc., can be made to fit City of Boise requirements. This item relates to the longer-term strategy for branches. When the Cole/Ustick branch is built, the Towne Square branch would perhaps not be needed. Under current policy, that could be as little as 2 ½ years away. Resolution of the Towne Square issue is tied to the strategy on branches. The MBT suggested that analysis be completed of relative lease costs for mall space and of options to reduce the cost, including relinquishment of the community room space. Fiscal Impact: $9,093 added to library base budget in FY 03 assuming that a lease with General Growth Properties, Inc. is negotiated on their proposed financial terms. A future annualized increase to stay at Boise Towne Square Mall would impact future library budget requirements. MBT action: The Library Director and Legal will continue to negotiate toward a lease with General Growth Properties, Inc., for continued lease space in the Town Square Mall for the City’s branch library and community room. Approved:
__________________________________ Carolyn Terteling-Payne Mayor, City of Boise
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