Riverside Public Utilities Long Range Space Plan. Board of Public Utilities 12/07/12
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1 Riverside Public Utilities Long Range Space Plan Board of Public Utilities 12/07/12
2 Long Term Goals Centralize staff location(s) for 650 positions Increase security for critical 24/7 operations Optimize management oversight Enhance customer service Improve RPU emergency response capabilities Plan for the future
3 RPU Facility Locations LOCATIONS Flight Road Airport
4 Mission Square May RD, 4 TH AND (1/2) 5 TH floors 5 years Employees Administration Engineering Water Resources Marketing and Public Benefits Finance still to relocate 3,000 sq. ft. unfinished Completely full Offices too big, cubicles too small Needs TIs
5 Benefits of potential lease renegotiation
6 Utilities Operations Center Built in 1993 (Lincoln & Adams) RPU owns land and buildings 260 Employees Capacity exceeded Staff in trailers and makeshift warehouse office space Water and Electric field operations Equipment parking at maximum Expansion potential
7 Orange Square Occupied by RPU in 2006 Long-term lease with City Parking Authority $3.5 Million in TIs and furniture Adequate parking (9 th and Orange Street) Room for 150
8 Utilities Plaza Customer service since 1994 (5 th and Orange) Built in fifties/sixties RPU & 311 call center, payment, billing, collections Leased from City since Employees Needs TI investment Lobby Back office Parking challenges Customer Convention Center event parking issues Limited public transportation access
9 Poe Building Built in 1959 as substation Meter Reading/Connections 55 Employees Parking challenges Security issues Basement has live cables Cannot reconfigure Does not meet ADA requirements Retain as emergency overflow space
10 Gateway Facility RPU purchased in 2009 for $3 million Power Resources and Scheduling 35 Employees Potential federal site Anticipated Western Electricity Coordinating Council (WECC)/ North American Electric Reliability Corporation (NERC) security issues
11 Flight Road Leased in 2008 (Airport) Anticipation was to move Plaza 311/CS phone staff $3,000,000 in anticipated TI/furniture costs Lease terminates in 2019 Stop gap in lieu of long term plan Relocation put on hold in 2009
12 Other Staff Locations Current staff locations Casa Blanca Customer Service Center RERC Clearwater Prior staff location Market Street
13 Planning Ahead Strategic space planning keeps rates lower Current office locations do not: Include all vacant positions Allow for future growth Long term need for: Utility Operation Center (UOC) Annex and, Utility-specific Emergency Operation Center (EOC) Need 20,000 sq. ft. to meet needs
14 Utility Space Costs As Planned LOCATION SQ. FEET ANNUAL COST. Mission Square 57,784 $ 1,665,629 Gateway 11, ,000* Flight Road 10, ,584** Poe Relocation and Parking (unknown loc.) 7, ,000 Downtown Payment Center (unknown loc.) 4, ,000 Totals 90,221 $ 2,667,213 * Purchase price and improvements amortized over 10 years **$3 million of required costs and TIs amortized over 10 years Annual cost per square foot $29.56
15 Mission Square Cost Savings $1,733,186 in savings $2.49 sq. ft. with 2.5% rate escalation Duration from 5 year + 5 to 10 year + 5 Reset base year for O & M saves $739K Base rent increase delay saves $44k Rent credit starting 11/14 saves $425k T/I rent credit of $425k HVAC repairs of $100k
16 Proposal For Orange Square Consolidate other downtown locations to OS Retain $3.5 million investment in TIs and furniture Two downtown locations: Provides location for separate downtown payment center Adjacent to City Hall city government campus More customer parking and Bus Routes Avoid $3 Million. in TIs at Flight Road Allows room for all positions + 10% growth factor
17 Proposal For UOC Annex Build adjacent to existing structure Approximately 22,000 square feet Requires parking lot lease from City Staff: Resources and Scheduling (Gateway) Dispatch Field Services (Poe) IT Systems Backup Facility Eliminates trailers
18
19 Proposal For UOC Annex RPU Emergency Operation Center (EOC) RPU location not constructed to EOC standards Initial disaster and Extended Event response Design & security for all 24/7 operations WECC/NERC security requirements Vacate POE as staffing location 4 year planning and build out
20 Utility Space Costs - Recommended LOCATION SQ. FEET ANNUAL COST Mission Square (BB&K) 57,784 $1,492,629 -Net Lease Cost Incl. $173,000 /Year Savings Orange Square 33, ,239 Orange Square TIs 30,000 -$300,000 Of TIs /10 Years UOC Annex (New Building) 22, ,000 cc-$6.3 Mill Building Cost / 30 4% cc-$1.8 Mill TIs / 15 Years cc-$100k Per Year Parking Lot Lease -Savings on modular trailer lease (12,000) Total 112,904 $ 2,874,868 Annual Cost Per Square Foot $25.46
21 Benefits Summary Cost Comparison Existing $29.56 sq. ft. $2,667,213/yr. 90,221 sq. ft. Recommended $25.46 sq. ft. -$4.10 sq. ft. 14% reduction $2,874,868/yr. +$207,665/yr. 112,904 sq. ft. +22,683 sq. ft. Incremental cost =$9.15 sq. ft.
22 Benefits Summary Addresses long term space needs Current plus room for growth Centralized/Concentrated Locations Downtown Mission Square & Orange Square UOC and UOC Annex Long-term leases and ownership Enhances emergency response capability Meets anticipated WECC/NERC security requirements
23 Rate Impacts Rate Revenues of $350 million Incremental cost to meet growth = 1/20 th of 1 percent Analysis does not include proceeds from sale of Gateway No rate impact
24 Water Rate Comparison 2012 $100 $80 $60 $40 $80.59 $76.10 $70.94 $72.97 $75.52 $79.84 $20 $49.74 $45.43 $- Pasadena Glendale Corona Burbank Anaheim Eastern MWD Riverside Western MWD *Rates as of July 2012 for average residential customer using 23 ccf
25 Electric Rate Comparison 2012 $160 $140 $120 $100 $80 $60 $ $ $ $ $ $ $40 $20 $- Pasadena Corona Anaheim SCE Riverside SDG & E *Rates as of July 2012 for average residential customer using 750 kwh
26 Staff Recommendation - Short Term Retain Orange Square Vacate Utilities Plaza Relocate Utilities Plaza Customer Service to OS Counter, call center, billing and back office Begin Orange Square TIs and furniture reconfiguration Specialized lobby needs, restrooms, phones, call center design Up to one year to complete Allow Flight Road lease to terminate in 2019 Sub-lease or utilize for storage Lease parking lot space adjacent to UOC from City Initiate planning process for UOC Annex
27 Staff Recommendation - Long Term Construct UOC Annex Construct an RPU - EOC within the UOC Annex Relocate Poe and Gateway to UOC Annex Consider long-term ownership of Mission Square and Orange Square Sell or Lease Gateway
28 Recommendation That the Board of Public Utilities recommend that the City Council approve the Riverside Public Utilities long-range plan.
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