Title
Recommendation to Provide Direction to Staff on a Facility Improvement Plan for the Veterans’ Memorial Building.
This action is exempt from environmental review pursuant to California Environmental Quality Act Guidelines Section 15331 (Historical Resource Restoration/Rehabilitation). (Public Works 31041520)
Body
To: Honorable Mayor and Members of the City Council
From: Jennifer Ott, City Manager
EXECUTIVE SUMMARY
On January 29, 1996, the City of Alameda (City) City Council adopted Resolution No. 12737 transferring ownership of the historic Veterans’ Memorial Building from the County of Alameda (County) to the City. The Veterans’ Memorial Building is currently used by veterans groups, Alameda Recreation and Parks Department (ARPD), and the Alameda Free Library. Building expenses are supported by two Internal Service Funds (ISFs): Building Maintenance and Building Replacement. 96.25% of facility costs assessed through the ISFs are funded through ARPD (General Fund) and the remaining 3.75% from the Library Fund. Building maintenance costs total $173,000 per year. The City’s existing 10-year capital plan was designed and based on building preservation and ongoing support of existing uses at the building.
Since 2017, the City has invested over $800,000 in building improvements including, but not limited to, roof repairs, lead abatement, front façade restoration and new flagpole installation. The veterans are advocating for specific additional improvements. Some of these improvements are already complete (e.g., Wi-Fi installation), others are included in the existing 10-year capital plan (e.g., carpet replacement), and still others are large-scale investments, not otherwise planned, to restore portions of the building currently not in use (kitchen and bar).
During the Fiscal Year (FY) 2023-25 budget adoption process, City Council appropriated an additional $100,000 of General Fund monies in FY 2023-24 and directed staff to add the heating system replacement project, which was one of the projects advocated for by the veterans. City Council also directed staff to consider and report back on how a project to install hot water in the Veterans’ Memorial Building bathrooms could be incorporated into the capital plan.
Staff recommends using the City’s allocation of federal funds from the Energy Efficiency and Conservation Block Grant Program (EECBG) to install on-demand electric hot water heaters in each of the building bathrooms and also support the heater replacement project. This aligns with the City’s Climate Action and Resiliency Goals to reduce carbon emissions from buildings. Staff also considered and analyzed each of the projects requested by the veterans and seeks City Council direction on an overall facility improvement plan for the Veterans’ Memorial Building. The plan includes a baseline of projects totaling $1,934,050 in the Veterans’ Memorial Building over the next eight (8) years and includes many, but not all, projects requested by the veterans. The baseline plan requires no new additional appropriations of General Fund monies as the projects are funded through the ISF and other previous appropriations to the Capital Budget (e.g., ADA improvements). The baseline plan does not include restoration of the kitchen and bar. Options for the kitchen are presented below in facility improvement plan options 1 and 2, along with the additional required funding from the General Fund. The bar restoration is discussed as an alternative and is not recommended by staff. Staff seeks direction on the overall facility improvement plan for the Veterans Memorial Building. Based on City Council’s direction, any required budget adjustment will be executed as part of the FY2023-24 mid-year budget adjustment.
BACKGROUND
Beginning December 5, 1928, the City leased two parcels on the northeast corner of Central and Walnut to the County. The County constructed the Veterans’ Memorial Building in 1929 and maintained the building with input from a Building Commission, which included representatives of chartered veterans’ organizations. When operating the building, the County did not charge the veterans’ organizations rental fees when they were performing official duties; all other functions and organizations were charged a fee for using the building. Income from rental fees supported 30-50% of the County’s operating costs for the Veterans’ Memorial Building.
In 1982, the City Council designated the Veterans’ Memorial Building as Alameda Historical Monument #17; the building was later added to the National Register of Historic Places in 2007.
On January 29, 1996, City Council adopted Resolution No. 12737 transferring ownership of the historic Veterans’ Memorial Building from the County to the City. Resolution No. 12737 assigned to the City the County’s obligation to provide a meeting place for the veterans, pursuant to the State Veterans Code. The resolution further committed the City to maintain the building and convene a Veterans’ Memorial Building Advisory Committee (Committee) to advise the City on such maintenance. The resolution states that the City’s use of the building should not interfere with the veterans’ continued and reasonable access to the facility. Records indicate that the Committee was active from the time of transfer to approximately 2001. Following a request from the veterans’ groups in January 2022 to reconvene the advising body, the Committee has met quarterly with a City representative.
The Veterans’ Memorial Building is currently used by the veterans’ groups, ARPD and the Library. The veterans have their own wing on the east side of the building, ARPD utilizes the ballroom and basement for summer and afterschool youth programs, and the Library operates the adult literacy program upstairs. Public Works provides building maintenance and capital improvements with funding from two ISFs: City Building Maintenance and City Building Replacement. 96.25% of facility costs assessed through the ISFs are funded through ARPD (General Fund) and 3.75% from the Library Fund.
Routine building maintenance includes service request response, janitorial, elevator, alarm, pump station, pest and fire safety services, which total $173,000 annually. The 10-year capital planning period for the City Building Replacement ISF is FY 2021-22 through FY 2031-32. Capital projects for the Veterans’ Memorial Building, and other City buildings in the ISF, are based on a 2014 facility condition assessment report, site inspections, and department programming requests. Project costs over the 10-year planning period are totaled and then annualized, with each department assessed their proportionate share based on occupancy. For the Veterans’ Memorial Building, ARPD is assessed the entire square footage of the building, including that occupied by the veteran’s groups, except the small portion occupied by the Library.
Prior to City Council’s consideration and adoption of the FY 2023-25 budget, the Veterans’ Memorial Building Capital Plan included the following projects:
• FY 2023-24 - Exterior Paint Project
• FY 2023-24 - Parking Lot Repave & Restripe Project
• FY 2024-25 - Paint Exterior Steel Stairs
• FY 2024-25 - Re-Carpet Veterans Meeting Room
• FY 2029-30 - Roofing Project
• FY 2029-30 - Window Repair Project
• FY 2031-32 - Interior Paint Project
• FY 2031-32 - Heating and Air Upgrade
Since 2017, the City has invested over $800,000 in capital improvements at the Veterans’ Memorial Building. Projects include:
• Electrical Upgrade
• ADA Ramp Design & Installation
• Wi-Fi Installation
• Front Façade Restoration
• Elevator Modernization
• Elevator Pit Relining
• Roof Repair & Sealing
• Women’s Restroom Renovation
• New Flag Pole Installation
• Replacement of Pumping Facilities
• Stairwell & Cafeteria Lead Abatement Project
• Check Valve Installation Project
• Tile Floor Cleaning
The veterans are advocating for the following specific improvements to the building:
• Hot Water in bathrooms (in process)
• Heater replacement
• Wi-Fi Installation (just completed)
• Carpet replacement in Veterans area/Room 260
• Restroom Upgrades
• Hardwood Floor Restoration (Auditorium, Billiard Room & Auxiliary Auditorium Room)
• Interior Lighting & Switch Upgrade-Facility Wide
• Clean & Restore Furniture
• Interior Paint (building wide)
• Kitchen Remodel to Commercial Kitchen Standards
• Bar Restoration (requires lead & asbestos abatement)
While some of these requests support existing uses (paint, heating upgrade, etc.), others are large-scale investments to restore portions of the building currently not in use (kitchen and bar). The City’s 10-year capital plan was designed and based on building preservation and ongoing support of existing uses at the building.
DISCUSSION
The following describes various improvements proposed for the Veterans’ Memorial Building. All of the proposed improvements are either restoration or rehabilitation work focused on preserving and prolonging the life of the historic building. No exterior alterations are proposed that would materially alter the historical design or appearance of building, and therefore, Historical Advisory Board approval is not required pursuant to Alameda Municipal Code (AMC) section 13-21.
Hot Water in Bathrooms and Heater Replacement
During the FY 2023-25 budget adoption process, City Council appropriated an additional $100,000 of General Funds in FY 2023-24 and directed staff to add the heating system replacement project at the Veterans’ Memorial Building. City Council also directed staff to consider and report back how a project to install hot water in the Veterans’ Memorial Building bathrooms could be incorporated into the capital plan.
Records show the building has not had domestic hot water for over 10 years. A gas meter serves the building, however there is no existing hot water heater and the associated plumbing pipes are in disrepair and encased in concrete walls. Instead of repairing existing pipes, staff recommends taking advantage of this opportunity to replace gas appliances at the building with electric appliances. This will reduce methane emissions from natural gas, which is 86 times stronger than carbon dioxide’s impact on climate change.
Staff identified EECBG that will support the installation of on-demand electric hot water heaters in each of the building bathrooms and also support the heater replacement project. The City’s allocation of $133,250 in federal funds is offered through either a traditional EECBG grant process or a streamlined voucher program. Vouchers can be used for two purposes: technical assistance and/or rebates for the purchase and installation of energy efficiency or clean energy equipment. Both the heater replacement and hot water installation projects will install energy efficient equipment eligible for rebate through the voucher program. The heater project will replace over 30 convector heaters with more efficient and effective units and at least 6 on demand electric hot water heaters will be used for the various bathrooms. The $100,000 that City Council already appropriated for the heating project can be used for the installation costs for both projects. Based on these findings, staff recommends pursuing the EECBG voucher and incorporating the hot water installation project into the capital plan for FY 2023-24. No additional appropriation is needed to address hot water in the building bathrooms and the replacement of building heating units. Both of these projects are included in the Baseline Plan in the facility improvement plan options noted below.
The 10-year capital plan under the ISF included installation of a Heating Ventilation and Air Conditioning (HVAC) system in FY 2031-32 at $690,000 in today’s dollars. This recommendation was from a 2014 facilities assessment report. Following City Council’s direction to address heat in the building, staff determined that replacement of the convector heaters with more efficient, modern equipment is a more appropriate investment. Construction of the building makes a centralized air handling system difficult to install. The 10-year capital plan includes an allocation of $195,000 in the ISF for the FY 2031-32 heating project, as the convector heaters are significantly less expensive to install than a centralized system.
Room 260 Carpet Replacement
Room 260 is exclusively used by the veteran’s groups and located in their designated wing. The room is used as a meeting space for many Bay Area veteran’s organizations. In line with the request, staff agrees that the carpet in room 260 needs replacement. This task was previously identified and included in the capital plan for the FY 2024-25 cycle.
Restroom Upgrades, Fixtures and Stalls
Staff has been in ongoing discussions with the veterans regarding the scope and approach to restoring the six restrooms in the building. Staff and the veterans agree on the fixtures and stalls that can be restored versus those that require replacement given their condition. Staff recommends proceeding with this work and refreshing the paint in the bathrooms as this would be the opportune time to do so. This renovation work is estimated to cost $32,000. This project is included in the Baseline Plan in the facility improvement plan options noted below.
Hardwood Floor Restoration - Auditorium, Billiard Room & Auxiliary Auditorium Room
Restoring the hardwood floors in the building was not originally included in the capital plan for two primary reasons: (1) the existing condition, though worn, is not a risk to its overall integrity, and (2) the upgrade did not benefit existing programming within the building. Restoring the floors will, however, improve the aesthetics and overall appeal of the rooms. The auditorium room is the showcase room in the building and is currently used for ARPD programming, such as karate and other after school programs. The veterans have expressed interest in using this room in tandem with the kitchen restoration. The auditorium could also increase the rental marketability of the kitchen, if restored; however, the auditorium is on the ground floor of the building and the kitchen is downstairs in the basement, making use of the elevator necessary to move food between the kitchen and auditorium. The small size of the elevator would present challenges for catering carts. The auditorium has maximum capacity of 400 people.
The billiard and ceremony rooms are exclusively used by the veteran’s groups. The auxiliary auditorium is used for ceremonies for Sea Cadets and other veteran’s groups. Costs for each room’s floor are as follows: auditorium $67,000, billiard room $21,000, auxiliary auditorium $42,000. Total cost for all floors is $130,000.
Given the multi-use benefit of restoring the hardwood floor in the main Auditorium, this project is included in the Baseline Plan in the options noted below. Restoration of the floors in the auxiliary auditorium and billiard room are included in Option 2.
Interior Lighting & Switch Upgrade - Facility Wide
The lighting needs throughout the building vary between needing repair, replacement and cleaning. Staff does not recommend a facility wide lighting upgrade, but does suggest that the historic auditorium lights be restored and that the billiard and ceremony room lights be replaced with brighter fixtures. The remaining cleaning needs and switch upgrades can be completed by maintenance staff. The estimated cost is $50,000. This project is included in the Baseline Plan in the options noted below.
Clean & Restore Furniture
After further conversation with the veterans, they agreed that they are able to clean and restore the furniture in their area of the building. No appropriation of City funds is needed.
Interior Paint - Facility Wide
The interior paint of the facility is primarily in good condition. Staff recently completed a lead and paint restoration project in the stairwell and cafeteria, which addressed some areas of concern. If City Council authorizes the funds for the bathroom renovation work, that includes interior painting of the six bathrooms. A facility wide interior paint is currently scheduled in the ISF capital plan for FY 2031-32. Staff does not recommend changing this schedule.
Kitchen Restoration
The more significant requests from the veterans is the restoration of the building’s kitchen and bar. The existing kitchen, located adjacent to the below ground cafeteria, is non-operational. It requires new plumbing, properly graded flooring, fire insulation and sealing, and an electrical upgrade. Additionally, the kitchen will require all new commercial code compliant appliances and equipment, such as sinks, dishwashers, exhaust systems, fire suppression systems, stove, griddle, fryer, grill, refrigerator, and freezer. Records show the kitchen has not been in use since around 2000, shortly after the building transferred from the County to the City. The veterans are eager to begin using the kitchen for pancake breakfasts and other community events. They believe that a commercial kitchen will be a marketable commodity and could be rented as a source of revenue to offset the upfront investment cost. ARPD acknowledges that a commercial kitchen could be used for new programming (e.g., cooking classes) and may have marketable value; however, ARPD staff have concerns about the location’s ability to accommodate large events given the limited parking in and around the facility as well as limitations noted previously with the kitchen on a different floor from the auditorium and a limited elevator size. ARPD suggests a more suitable site for City Council to invest in a commercial kitchen upgrade is the O’Club at Alameda Point. Although the renovation at the O’Club would be costlier given the kitchen’s size and complexity, the facility is a popular rental facility with currently only a staging kitchen. The O’Club is booked every week and generates between $50,000 and $75,000 annually, hosts 20-30 annual trainings and workshops, and is used for annual events such as Book Fair, Holiday Boutique, Spring Shindig, and the ARPD Summer Staff Training. With a commercial kitchen, additional revenue could be generated from fees from the existing customer base. ARPD could also explore renting the commercial kitchen to food vendors weekdays, which the O’Club cannot currently support.
The estimated cost to install a commercial kitchen at the Veterans’ Memorial Building is $500,000. Staff recommends this be an all-electric kitchen, which combined with the electric hot water heaters in the bathroom, will make the building entirely electric. Renovation of the kitchen area and installation of a staging kitchen only (refrigeration, sink, counter top, etc.) is estimated at $100,000. A staging kitchen does not allow onsite cooking but provides space for catering trays with heating devices. Renovating the O’Club kitchen to a commercial kitchen has not specifically been scoped; however, a planning level estimate would be $800,000-$1,000,000.
The veterans’ preference of restoring the kitchen to commercial grade is not included in the Baseline Plan in the options noted below; however, it is included in Option 2. Option 1 includes a staging kitchen versus commercial kitchen.
Bar Restoration
The building has a bar located on the basement level near the entrance to ARPD’s after school teen program. The room is currently out of operations, used as storage and requires lead and asbestos abatement prior to any occupancy. The proposed restoration scope has not been identified in detail, but would require new plumbing, fixtures, refrigeration, water stations and lighting. The veterans are still exploring options for how they would use this restored room. Depending on the specifics of the restoration, the project could cost anywhere from $500,000 - $750,000. ARPD does not have any programming needs for a bar. Staff does not recommend moving forward with this project at this time.
Accessibility
Staff recently finished a comprehensive evaluation of City facilities, programs and policies for compliance with Title II of the Americans with Disabilities Act (ADA) and applicable state and local codes and regulations. Staff is working with the Commission on Persons with Disabilities and the general public to bring forward an ADA Transition Plan for City Council consideration. The Transition Plan will identify a prioritized plan for addressing accessibility barriers. With the plan on the horizon, City Council appropriated $1,250,000 in the FY 2023-25 budget to address accessibility barriers.
The site evaluation at the Veterans’ Memorial Building identified approximately $420,000 in repairs/renovations to remove accessibility barriers. The barriers vary in priority level with an estimated $213,000 designated as high priority. Although staff is still gathering input from the public and specifically the community of individuals with disabilities on how to prioritize addressing barriers across all City facilities, the Department of Justice Guidelines state, “people with disabilities should be able to arrive on the site, approach the building or facility and its amenities, and enter as freely as everyone else.” It is likely that parking and accessible paths of travel to and from the Veterans Memorial Building will be prioritized. In addition, interior accessible routes to the building’s amenities will also likely be part of the first phase of work completed under the ADA Transition Plan. Projects include installation of van accessible parking in the parking lot, adjusting sidewalk and ramps that exceed ADA slope standards, installing compliant handrails on exterior stairs and doorway clearances. Staff recommends removing the high priority barriers identified in the forthcoming ADA Transition Plan. Funds to support this work will either come from the $1,250,000 in the FY 2023-25 budget specifically for ADA compliance or from capital project budgets already planned for at the building (e.g., parking lot paving).
Facility Plan Options
Staff seeks direction from City Council on the Veterans’ Memorial Building Facility Improvement Plan. Following City Council’s input and direction, staff will return to make any required budget adjustments with the FY 2023-24 Mid-Year Budget Update.
Each option below includes a set of projects that are already planned as part of the 10-year capital plan under the ISF such as the heating replacement and hot water installation project, the restroom upgrades, ADA upgrades and lighting upgrades. Option 1 details the costs of the baseline set of projects. Subsequent options build upon Option 1 with additional investments requested by the veterans. All project cost estimates in the table below are in today’s dollars.
Baseline Plan. Veterans’ Memorial Building Facility Improvement Plan
|
Fiscal Year |
Project |
Estimated Project Cost |
Funding Source |
|
2023-24 |
Exterior Paint Project |
$442,000 |
Internal Service Fund |
|
2023-24 |
Parking Lot Repave & Restripe Project, addressing ADA issues |
$86,000 |
Internal Service Fund |
|
2023-24 |
Estimated ADA Improvements |
$75,000 |
FY 2023-25 Capital Improvement Budget |
|
2023-24 |
* Heater replacement and hot water installation in bathrooms |
$233,250 |
EECBG grant funds and $100,000 in General Funds already appropriated as part of FY 2023-25 budget adoption |
|
2023-24 |
* Restroom Upgrades, Fixtures and Stalls |
$32,000 |
Repurposed funds from the FY 2031-32 HVAC project |
|
2023-24 |
Hardwood Floor Restoration - Auditorium |
$67,000 |
Repurposed funds from the FY 2031-32 HVAC project |
|
2024-25 |
* Interior Lighting & Switch Upgrade - Facility Wide |
$50,000 |
Repurposed funds from the FY 2031-32 HVAC project |
|
2024-25 |
Paint exterior steel stairs, addressing ADA issues |
$7,800 |
Internal Service Fund |
|
2024-25 |
* Re-Carpet Veterans Meeting Room, addressing ADA issues |
$28,000 |
Internal Service Fund |
|
2029-30 |
Roofing Project |
$393,000 |
Internal Service Fund |
|
2029-30 |
Window Repair Project |
$279,000 |
Internal Service Fund |
|
2031-32 |
Interior Paint |
$257,000 |
Internal Service Fund |
|
Total Proposed Investment: |
$1,950,050 |
|
|
Proposed New General Fund Appropriations |
$0 |
|
*Projects specifically requested by the Veterans
Baseline Plan + Option 1. Veterans’ Memorial Building Facility Improvement Plan
|
Fiscal Year |
Project |
Estimated Project Cost |
Funding Source |
|
Baseline Projects |
$1,934,050 |
See Baseline table |
|
2023-24 |
Staging Kitchen Renovation/Installation |
$100,000 |
New appropriation of General Funds |
|
Total Proposed Investment: |
$2,034,050 |
|
|
Proposed Additional General Fund Appropriations |
$100,000 |
General Fund |
*Projects specifically requested by the Veterans
Baseline Plan + Option 2. Veterans’ Memorial Building Facility Improvement Plan
|
Fiscal Year |
Project |
Estimated Project Cost |
Funding Source |
|
Baseline Projects |
$1,934,050 |
See Baseline table |
|
2023-24 |
* Commercial Kitchen Renovation/Installation |
$500,000 |
New appropriation of General Funds |
|
2023-24 |
* Hardwood Floor Restoration -Billiard Room |
$21,000 |
New appropriation of General Funds |
|
2023-24 |
* Hardwood Floor Restoration - Auxiliary Auditorium |
$42,000 |
New appropriation of General Funds |
|
Total Proposed Investment: |
$2,497,050 |
|
|
Proposed Additional General Fund Appropriations |
$547,000 |
General Fund |
*Projects specifically requested by the Veterans
ALTERNATIVES
• Provide direction to staff on which of the identified projects to prioritize as detailed in the baseline plan, option 1 and option 2.
• Add the bar restoration to any of the facility plan options noted above. Since the project is not currently scoped, the high end of the estimated range should be assumed until a design and engineering cost estimate is determined. This alternative would add $750,000 in new General Fund appropriations to the option directed by City Council.
• Direct the facility wide interior paint project be completed sooner than FY 2031-32. This will require an additional $200,000 in upfront General Funds since to date, $57,000 was deposited to the ISF. If the work is done sooner and the General Fund pays the remainder of the cost now, the annual amount collected will reduce by approximately $20,000 per year.
• Remove any project assumed in the baseline plan.
FINANCIAL IMPACT
The financial impact of the Veterans’ Memorial Building Facility Plan will be dependent on City Council direction. The three options presented note the new General Fund impact. Based on City Council’s direction, any required budget adjustment will return to the City Council for appropriations approval as part of the FY 2023-24 Mid-Year Budget Update.
As part of Resolution No. 16060, which adopted the operating and capital budget for FYs 2023-2025, the City Manager or their designee was authorized to carry-over into FY 2023-24 the remaining General Fund expenditure budget from FY 2022-23 at year-end, up to a not-to-exceed amount of $3,000,000, for the purchase of police radios and a fire engine. Funding for the police radios was allocated prior to the end of FY 2022-23 and $434,990 of the carry-over funds is expected to be needed for the fire engines. Council can consider providing direction to staff to use remaining carry-over funds to support the Veterans’ Memorial Building Facility Plan, as needed.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
This action is consistent with the Alameda Municipal Code and with the following policies and actions in the Alameda General Plan:
General Plan cc-14 Energy Efficiency and Conservation. Promote efficient use of energy and conservation of available resources in the design, construction, maintenance and operation of public and private facilities, infrastructure and equipment.
a. Public Facilities. Incorporate renewable energy, electrification, and energy efficiency into public facility capital improvements.
ENVIRONMENTAL REVIEW
This action is exempt from environmental review pursuant to California Environmental Quality Act (CEQA) Guidelines Section 15331 (Historical Resource Restoration/Rehabilitation). None of the exceptions in Section 15300.2 of the CEQA Guidelines apply.
CLIMATE IMPACTS
The heater replacement and hot water installation projects will install energy efficient appliances. This assists the City meet its greenhouse gas emissions (GHG) goal to 50 percent below 2005 levels by 2030 and achieve net zero GHG emissions as soon as possible.
RECOMMENDATION
Provide direction to staff on a Facility Improvement Plan for the Veterans’ Memorial Building.
Respectfully submitted,
Erin Smith, Public Works Director
By,
Mike Billington, Facilities Manager
Financial Impact section reviewed,
Margaret O’Brien, Finance Director