AGENDA ITEMS #13 & 14 February 24,2015 Public Hearing MEMORANDUM. February 20, County Council (}b Glenn Orlin, Deputy Council Staff Director

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1 AGENDA ITEMS #13 & 14 February 24,215 Public Hearing MEMORANDUM February 2, 215 TO: FROM: SUBJECT: County Council (}b Glenn Orlin, Deputy Council Staff Director Public Hearing-special appropriations and amendments to the FY15-2 Capital Improvements Program, Montgomery County Government: Council Office Building Renovations, $296, (G.O. bonds) and Grey Courthouse and Red Brick Courthouse Renovations, $75, (G.O. bonds) For many years the heating, ventilation, and air conditioning in the Council Office Building (COB) have functioned poorly, and most of the restrooms are not compliant with current ADA standards. The Council Office and Office of Legislative Oversight (OLO) have far outgrown their space since it was last reconfigured more than 25 years ago. Over the past year the Council Office has worked with the Department of General Services (DGS) to develop conceptual plans for two options that would address these needs: Council Office Building Renovations ( 1-3). One option would be renovate the interior of the Council Office Building, which houses not just the Council, but several other Executive and Legislative Branch departments and offices. The project would replace the HV AC, lighting, and windows in the Council Office Building, and upgrade restrooms-particularly those used primarily by the public-to current ADA standards. The cost estimate for this work is $19 million. An energy services corporation has conducted an energy audit of the COB and has determined that nearly a third of this cost ($6 million) can be funded by long-term financing to be paid by the energy savings that would be effected during the next 2 years. This option also includes expansion of space for the Council Office and the OLO, each of which have far outgrown its current space. It assumes that the Department of Housing and Community Affairs would be relocated to other space, and that the Council and OLO would expand to include the 4th Floor of the COB wing that fronts Maryland Avenue. The cost to reconfigure and modernize this space is estimated to be about $11.5 million. Finally, this option includes the renovation of the COB's 1 st Floor Auditorium. This room is used regularly by the County Government for training, and frequently by civic organizations and other groups as meeting space (leased through the Office of Community Use of Public Facilities). It is in extremely poor shape. The cost ofthis renovation is approximately $7,.

2 Therefore, the cost of this option is estimated to be about $31.2 million, of which $25.2 million would be funded with General Obligation (G.O.) bond proceeds. Nearly $3 million ofthe appropriation would be provided by a transfer from the Montgomery County Government Complex project, which has that much remaining appropriation that is unencumbered, as well as a small amount remaining from Phase 1 of this project (the renovation of the COB's 3 rd Floor Hearing and Conference Rooms, which were completed in 29). Therefore, this option would use about $22 million of G.O. bond capacity under the spending affordability guidelines. The project would be completed by early 217. Grey Courthouse and Red Brick Courthouse Renovations ( 4-6). The other option, proposed by Councilmembers Hucker and Riemer, is to renovate the Grey and Red Brick Courthouses and to relocate the Council Office and OLO there. The project would replace the HV AC, lighting, and windows in the Council Office Building, and upgrade restrooms-particularly those used primarily by the public-to current ADA standards. The scope that has been developed to date would demolish most of the 196s addition to the Grey Courthouse and construct a 53-space surface parking lot there. It would also construct an annex south of the initial 193s wing of the Grey Courthouse to replicate the current 3 rd Floor Hearing Room. The cost of this option, following this scope of work, is about $36 million. With the transfer from the Montgomery County Government Complex project, this option would use about $33 million of G.O. bond capacity under the spending affordability guidelines. It would be completed by late spring of 218. Over the next few weeks the sponsors of this option wish to explore variants of this scope, such as the retention of the 196s addition and the ability to relocate other County offices from leased space to the complex. Most variants would result in a different cost estimate and, perhaps, a different schedule for completion. There may be some variants developed to the scope of the Council Office Building Renovations project as well. Review schedule. The Government Operations and Fiscal Policy (GO) Committee has a worksession scheduled for March 5, and Council action is tentatively scheduled for March 1. f;\orlin\fy ls\admin\cob rehab\ls224hearing.doc 2

3 Resolution: Introduced: Adopted: COUNTY COUNCIL FOR MONTGOMERY COUNTY, MARYLAND By: Council President SUBJECT: Amendment to the FY15-2 Capital Improvements Program and Special Appropriation to the FY15 Capital Budget Montgomery County Government Department ofgeneral Services Council Office Building Renovations (No. 11), $296, Background 1. Section 38 of the Montgomery County Charter provides for a special appropriation which states that it is necessary to meet an unforeseen disaster or other emergency, or to act without delay in the public interest. Each special appropriation shall be approved by not less than six Councilmembers. The Council may approve a special appropriation at any time after public notice by news release. Each special appropriation shall specify the source offunds to finance it. 2. Section 32 ofthe Montgomery County Charter provides that the Council may amend an approved capital improvements program at any time by an affirmative vote ofno fewer than six members ofthe Council. The County Council recommends the following capital project appropriation increase: Cost Source Name Number Element Amount offunds Council Office Building Renovations 11 PDS $296, TOTAL $296, 3. This special appropriation is required to begin design ofneeded renovations to the Council Office Building during the winter and spring of Notice ofpublic hearing was given and a public hearing was held. )

4 Amendment to the FY15-2 Capital Improvements Program and Special Appropriation Council Office Building Renovations (No. 11) Action The County CoUncil for Montgomery County, Maryland, approves the following action: The FY15-2 Capital Improvements Program ofthe Montgomery County Government is amended as reflected on the attached project description form and a special appropriation is approved as follows: Name Council Office Building Renovations Number 11 Cost Element PDS Amount $296, Source of Funds TOTAL $296, This is a correct copy of Council action. Linda M. Lauer, Clerk of the Council

5 Council Office Building Renovations (P1 1 ) Category General Govemment Date Last Modified February 3,215 Subcategory County Offices and Other Improvements Required Adequate Public Facility No Administering Agency General Services Relocation Impact None Planning Area Rockville Status Preliminary Design Stage Total Cost Element 16 b.i~o 12 15,398 FY17 FY18 FYI9 1, , ,329 FY2 Beyond 6 Years Long Tenn Financing Cable TV Total Fundinl Schedule (SOOO) 28,196 3,48 25,148 1,473 15,398 6, 6, ,148 3,948 I 3J,2 1,473 15,398 8,277 6, 52 14,329 DESCRIPTION The project is in two phases. The first phase renovated the hearing room, conference room, and anterroom on the third floor of the Council Office Building (COB), which had not been renovated in more than 3 years. The first phase was completed in 29. The second phase replaces the HVAC, lighting, and windows in the rest of the COB, upgrades restrooms to ADA standards, renovates the auditorium on the first floor, and reconfigures space on the fourth, fifth, and sixth floors for the Council Office and the Office of Legislative Oversight (OLO). ESTIMATED SCHEDULE Preliminary Design is complete. Design will begin in March 215, construction will begin in September 215, and the project is scheduled for completion in February 217. COST CHANGE: New second phase. JUSTIFICATION Heating, ventilation, and air conditioning in the COB function poorly, and most of the restrooms are not compliant with updated ADA standards or high perfonnance building standards. The Council Office and OLO have far outgrown their space since it was last reconfigured more than 25 years ago. The I st Floor Auditorium, which is used regularly for County Govemernnt staff training and as a meeting place by civic organizations, is extremely substandard. FISCAL NOTE: The second phase of the project is partially funded with a $184, unencumbered balance from the first phase and a transfer of$2,993, from the Montgomery County Government Complex project. An audit by an Energy Service Company (ESCO) has been conducted, and it has detennined that $6,, in savings can be anticipated from this project. An Energy Savings Perfonnance Contract (ESPC) will allow for third-party funding to cover this portion of the contract, so that no General Obligation bonds are required for it. A financing mechanism is initiated to cover the cost of the contract and the repayment ofdebt is guaranteed through the energy savings. Appropriation and Expenditure Data Coordination Map Date First Appropriation FYI5 ($) Legislative Branch Offices First Cost Estimate Current Scope (FY 15) Last FY's Cost Estimate 35,148 Department oftechnology Services Office of Consumer Protection,Appropriation Request FYI5 Department of Housing and Community Affairs!Appropriation Request Est FY16 24,78 Ethics Commission " ental Approp. Request FYI5 296 Transfer 2,993! Cumulative Appropriation 4132 : Expendituresl:Encumbrances 3948 Unencumbered Balance 184 Partial FYI3 New Partial Closeout FY14 Total Partial Closeout

6 Resolution: Introduced: Adopted: COUNTY COUNCIL FOR MONTGOMERY COUNTY, MARYLAND By: Councilmembers Hucker and Riemer SUBJECT: Amendment to the FY15-2 Capital Improvements Program and Special Appropriation to the FY15 Capital Budget Montgomery County Government Department ofgeneral Services Grey Courthouse and Red Brick Courthouse Renovations (No. XXI5XX), $75, Background 1. Section 38 ofthe Montgomery County Charter provides for a special appropriation which states that it is necessary to meet an unforeseen disaster or other emergency, or to act without delay in the public interest. Each special appropriation shall be approved by not less than six Councilmembers. The Council may approve a special appropriation at any time after public notice by news release. Each special appropriation shall specify the source offunds to fmance it. 2. Section 32 ofthe Montgomery County Charter provides that the Council may amend an approved capital improvements program at any time by an affirmative vote ofno fewer than six members ofthe Council. The County Council recommends the following capital project appropriation increase: Name Grey Courthouse and Red Brick Courthouse Renovations Number XX15XX Cost Element PDS Amount $75, Source offunds TOTAL $75, 3. This special appropriation is required to begin design ofneeded renovations to Grey Courthouse and the Red Brick Courthouse during the winter and spring of Notice ofpublic hearing was given and a public hearing was held.

7 Amendment to the FY15-2 Capital Improvements Program and Special Appropriation Grey Courthouse and Red Brick Courthouse Renovations (No. XXlSXX) Page Two Action The County Council for Montgomery County, Maryland, approves the following action: The FY15-2 Capital Improvements Program ofthe Montgomery County Government is amended as reflected on the attached project description form and a special appropriation is approved as follows: Name Grey Courthouse and Red Brick Courthouse Renovations Number XXlSXX Cost Element PDS Amount $75, Source offunds This is a correct copy ofcouncil action. TOTAL $75, Linda M. Lauer, Clerk ofthe Council

8 Grey Courthouse and Red Brick Courthouse Renovations (PXX15XX) Category General Govemment Date Last MOdified February 3, 215 Subcategory County Offices and Other Improvements Required Adequate Public Facility No Administering Agency General Services Relocation Impact None Planning Area Rockville Status Conceptual planning Expenditure Schedule ($) Thru Est Total Cost Element Total FY13 FY14 6 Years FY15 FY16 Planning, Desjgn, and Supef\'~Q!I 5,376 ~,37~ _.1~ Land --- f::-:c----'_ ~mprovements and Ut~!!i~ ~----~ Construction. 23,~.2. 23,49 Other ,68 --6,68 Total 35,959 35, ,11 Beyond FY17 FY18 FY19 FY2 6 Years 1,395 1, ,36 2,969 3,711 14,673 18,468 -], ,---, f o. Total DESCRIPTION The project provides for the renovation of the Grey Courthouse and the Red Brick Courthouse for use by the County Council, the Council Office, and the Office of Legislative Oversight. The project also includes construction of parking, and replacement ofthe Council Office Building's 3rd Floor Hearing Room. ESTIMATED SCHEDULE Concept plans have been developed. Historic review will begin in April 215. Final design is expected to start in October 215, construction is scheduled to begin in November 216, and the project is anticipated for completion in May 218. COST CHANGE: New project. JUSTIFICATION Heating, ventilation, and air conditioning in the COB function poorly, and most of the restrooms are not compliant with updated ADA standards or high performance building standards. The Council Office and OLO have far outgrown their space since it was last reconfigured more than 25 years ago. FISCAL NOTE: The project will be partly funded with a transfer of $2,993, from the Montgomery County Government Complex project. Appropriation and Expenditure Data Coordination Map Date First Appropriation FY15 ($ Office of the County Council First Cost Estimate Current Scope (FY15) 35,959 Office of Legislative Oversight Last FY's Cost Estimate City of Rockville Peerless Rockville Appropriation Request FY15 Appropriation Request Est. FY16 Supplemental Approp. Request FY15 75 Transfer 2,993 Cumulative Appropriation ExpenditureslEncumbrances Unencumbered Balance Partial FY13 New Partial Closeout FY14 Total Partial Closeout