03-13-2017 BPU RPT 09 - Laserfiche WebLink

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W A I= R E N E R U Y I I F F PUBLIC UTILITIES BOARD OF PUBLIC UTILITIES RIVERSIDE PUBLIC UTILITIES Board Memorandum DATE: MARCH 13, 2017 ITEM NO: 9 SUBJECT: UPDATE ON BUILDING IMPROVEMENT PROJECTS AT MISSION SQUARE LOCATED AT 3750 UNIVERSITY AVENUE AND CONCEPTUAL APPROVAL OF ADDITIONAL BUILDING EXPENDITURES FOR ACCESSIBILITY IMPROVEMENTS AND ELEVATOR SYSTEM REPLACEMENTS IN THE ESTIMATED AMOUNT OF $1,700,000 ISSUE: Receive an update on building improvement projects at Mission Square at 3750 University Avenue in the estimated amount of $1,700,000. RECOMMENDATIONS: That the Board of Public Utilities: Receive an update on building improvement projects at Mission Square at 3750 University Avenue; and 2. Provide conceptual approval to staff to proceed with the replacement of the elevator mechanical systems and passenger cab refurbishment in the amount and the replacement of the entry doors to meet Americans with Disabilities Act standards, in the estimated amount of $1,700,000. BACKGROUND: On October 13, 2015, the City acquired the Mission Square Office Building at 3750 University Avenue (Property), which was funded by Riverside Public Utilities (RPU). As such, the City is now the landlord of the Property. The Property consists of approximately 127,533 square feet of rentable office and retail space in a six -story building, plus a basement level and a 490 stall parking garage situated on approximately 2.5 acres of land. DISCUSSION: As part of the Fiscal Year 2016/17 budget, $500,000 in building improvement funds were approved by the Board and Council. However, the current budget was completed prior to a new property management company being retained and without the benefit of a comprehensive review of building systems and priorities. One of the first actions taken by the new property management company was to complete a site assessment and identify needs and priorities. Following the completion of that review, staff determined that additional urgent building improvements are necessary. The total additional cost necessary is approximately $1,700,000 and is available within the Public Utilities Building Occupancy Division budget. While no additional fund appropriation is necessary at this time for these building improvements projects, a budget transfer will be internally processed to move the identified available funds from the Building Occupancy Division budget to an account assigned by the Finance Department to the Mission Square Building Occupancy Division budget. However, authorization for this additional work is required.